Committee Hearing, April 2, 2008

COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE OF THE WHOLE - BUDGET - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, April 2, 2008 10:25 a.m. - - - PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN BILL GREEN COUNCILMAN WILLIAM GREENLEE COUNCILMAN CURTIS JONES, JR. COUNCILMAN JACK KELLY COUNCILMAN JAMES F. KENNEY COUNCILWOMAN MARIA QUINONES-SANCHEZ COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN B. TASCO BILLS 080022, 080157, 080160, 080164 and 080165 - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2

Good morning, everyone. This is a continued public hearing of the Committee of the Whole regarding Bills Nos. 080022, 080157, 080160, 080164 and 080165. The first department to testify will be Public Property. (Witnesses approached witness table.)

Good morning. COMMISSIONER SCHLOTTERBECK: Good morning.

Please identify yourself for the record and proceed with your testimony. COMMISSIONER SCHLOTTERBECK: Yes. Good morning, Madam President, members of City Council. I am Joan Schlotterbeck, Commissioner of Public Property. It is my pleasure to appear before City Council today in support of Public Property's budget request for FY09. I would like to briefly outline 3 4/2/08 - WHOLE - BILL 080022, etc. the role of Public Property, detail some of our accomplishments during '08 and discuss our initiatives for '09. 2 percent over our FY08 estimated obligations. 2 percent from FY08. This is due to the transfer of the Riverview Nursing Home positions from the Office of Supportive Housing. The Department is budgeted for 178 positions. 3 percent from FY08. The net increase is primarily due to increased costs for our major contracts, leases, utilities and telecommunications. In Class 300, we are requesting 4 4/2/08 - WHOLE - BILL 080022, etc. 6 percent from FY08, due to the -- this increase is due to the transfer of the Riverview Nursing Home maintenance responsibilities, again, from the Office of Supportive Housing. In Class 400, we are requesting 104,000, an increase of $50,000 from FY08. 6 increase from FY08. 9 million for core departmental operations. 7 percent from FY08 estimated obligations. In the Grants Revenue Fund, we 5 4/2/08 - WHOLE - BILL 080022, etc. 5 million. 3 percent from FY08 estimated obligations. 7 percent from our estimated FY08 obligations. The Department of Public Property's mission is to efficiently maintain the infrastructure that supports government operations, including City-owned buildings, leased space and telecommunication systems. Our current initiatives will produce results in the core service areas of public safety, healthy and sustainable communities, and customer service. As part of the Department's efforts to improve the management of our facilities, we are continuing our citywide maintenance consolidation initiative to better serve the various facilities and user agencies. This initiative involves the separation of 6 4/2/08 - WHOLE - BILL 080022, etc. maintenance staff, materials and contracts from other departments and the absorption into DPP, or Department of Public Property, in an effort to allow other departments to focus on their own core missions. After successfully integrating the maintenance responsibilities of the Police Department, the Fire Department and most recently Riverview, we have identified DHS as the next department for absorption in FY09. A number of efficiencies will be realized from our planned upgrade, such as HVAC and light control systems in the Municipal Services Building, the Criminal Justice Center and the One Parkway facility, which we refer to as our triplex, as well as the replacement of the absorption chillers at the Criminal Justice Center. The Department is also planning to upgrade the controls and systems of the newer buildings, as well as creating an open architecture 7 4/2/08 - WHOLE - BILL 080022, etc. providing for the off-site monitoring of these facilities. Public Property is continuing to identify new opportunities for lease savings as existing leases expire, as well as monitoring the City-owned space to ensure efficiency allocation. The Department is also expected to generate efficiencies from our City as lessor leases. As part of the Administration's efforts to implement an enhanced 3-1-1 communications system, the Department of Public Property upgraded the call center equipment to accommodate the increase in calls. The Department will deliver and install the required software and additional hardware necessary for the system to be up and running by the end of the year. I now close my testimony and would like to take this opportunity to thank you for your continued support of the Department of Public Property. I'd 8 4/2/08 - WHOLE - BILL 080022, etc. like to also state for the record that on my left is Deputy Commissioner of Communications Frank Punzo.

On my right is our Facilities Director, Jim Lewis, and I have other staff members available to answer any questions you may have.

Thank you very much, Commissioner. I would like to simply make a comment, and, that is, that I publicly applaud you and your staff for doing an absolutely fabulous job. COMMISSIONER SCHLOTTERBECK: Thank you.

I know that in past years you've been losing many employees who were very seasoned. COMMISSIONER SCHLOTTERBECK: Yes. That's true.

And, as I said, I don't know how you and your department have been able to carry on the way you have, but I really admire the 9 4/2/08 - WHOLE - BILL 080022, etc. work that you've been doing. COMMISSIONER SCHLOTTERBECK: Thank you, Madam President.

Looking at your budget, on -49, you're requesting to increase your security contract from $228,000 in FY08 to $548,000 in FY09. Can you explain, please. COMMISSIONER SCHLOTTERBECK: Madam President, as you are all well aware, we are changing the way we deal with security in City Hall, and hopefully in the next several months, we will be implementing a plan which will shift the clearance from the Council floor down to the main floor. There will no longer be a need to go through the metal detectors up here. We have been increasing our guard services to supplement requirements that we currently don't have staff to provide. In other words, we have more hours of work than we have staff. So in 10 4/2/08 - WHOLE - BILL 080022, etc. addition to the contract employees that do the screening on Council floors, we have added some down to the main floor as well. We have a plan in for Finance to request staffing, which would eliminate -- full-time staff, which would eliminate the heavy need for contract services.

Now, are we going to have security on all four corners of City Hall, our entrances? Can you explain what the new security will be like? COMMISSIONER SCHLOTTERBECK: Yes. We're going to have the northeast corner and the northwest corner, we're going to implement security clearing. You're going to have to go through metal detectors coming in those spaces. It no 22 longer will be sign in and tell your name and walk through. We also are going to have clearance down the corridors inside the 11 4/2/08 - WHOLE - BILL 080022, etc. courtyard, if you will. So you will come through the doors, you will be able to come and get cued up to enter in that way as well.

So will all of the employees in City Hall have to go through that process or would they just be able to show their ID card and be able to pass through? Because I know that someone had an appointment with me and had to wait 45 minutes before being able to even get the elevator on the first floor. COMMISSIONER SCHLOTTERBECK: Well, we're hoping that when we institute the screening not just on the northeast corner but northwest -- and, again, when you come in through the courtyard, those corridors are going to be open to the public and they'll be screening at the end of those corridors before those double doors. And we are assuming at this point that all employees and all visitors will be screened. But we feel 12 4/2/08 - WHOLE - BILL 080022, etc. that with the numerous ways in and the available screening processes, it should go faster than it does currently. So, in other words, everyone does not have to go to the northeast corner if they're a visitor.

I'm talking about our employees. I mean, our employees were complaining with the security on the fourth floor. If their offices were on the fifth floor and they had for some reason the occasion to come down to the fourth floor, they would have to go through the detector again and they'd have to remove whatever keys they had or glasses or whatever. And I think we agreed that if it were a City Council employee, that they would merely have to show their ID card. I think it could be very chaotic if all of the employees now are going to have to go through that, whether it be on the fourth floor or the first floor. I can see employees saying, the 13 4/2/08 - WHOLE - BILL 080022, etc. officials too, I can see employees coming in saying, Oh, I'm a half hour late because I had to wait in line downstairs on the first floor to be able to come into the building. COMMISSIONER SCHLOTTERBECK: Well, I do want to make it clear that we had a meeting, Jim and I, about a week ago with Chief of Staff and we presented a drawing and a plan. He was going to take it to the Mayor, and it was not going to be activated before and until it was explained to you in your -- I believe you meet weekly with them.

Yes. COMMISSIONER SCHLOTTERBECK: So what I'm telling you is, our recommendation at this point is that all people do get screened, but we know that it's on us as a department to -- I don't want to use the word "direct" traffic, but to be aware when people are coming into the building, ask where -- if they're only looking to use the first 14 4/2/08 - WHOLE - BILL 080022, etc. floor, they do not have to be screened. That is going to remain completely open for services to the public, but we were going to try and be helpful at the beginning. We were going to increase signage. So the plan is a little bit more evolved, but it has not yet been completely vetted through the Mayor's Office at this point.

Councilman Greenlee, I think that you may be agreeing with me. Do you agree with -- I know you were nodding your head. I think you were having trouble, were you not, with the security issue?

Well, I was. Thank you, Madam President. I guess I don't get the idea of employees being screened all the time. Now, maybe as an employee for years 23 I'm sensitive to that, but I don't get 24 it, and I never have understood that. I 25 don't -- are there other buildings where 15 4/2/08 - WHOLE - BILL 080022, etc. employees constantly are screened? COMMISSIONER SCHLOTTERBECK: Yes.

Where? COMMISSIONER SCHLOTTERBECK: In the Criminal Justice Center, for instance. I have to tell you, I went down to federal courthouse about a month ago and I had to take my jewelry off. I was astounded.

I understand that, but you're not an employee of the federal courthouse. COMMISSIONER SCHLOTTERBECK: But from what I understand, even down there they do indeed do it. I went up to Boston to the City Hall in Boston, and everyone went through screening. I was with their equivalent Managing Director, and he had to go through the screening.

I mean, I just don't agree -- COMMISSIONER SCHLOTTERBECK: 16 4/2/08 - WHOLE - BILL 080022, etc. It's our recommendation. I'm not saying that -- this is our recommendation as a department being asked. We met with the Emergency Management staff. We have met with the Police Department, and by and large, based on incidents around this country, specifically the incident up in New York, the recommendation for increased security at base level is to make folks --

I know everybody uses the New York as an example. That person was not an employee. He was brought in by a Councilmember. Now, that's different. I just -- I've never understood the idea. I mean, if we can't trust the employees, then we're in trouble anyway. If they want to get us, they're going to get us.

Don't say that again.

I repeat, if they want, they can get us. I mean, I think it's -- all it 17 4/2/08 - WHOLE - BILL 080022, etc. takes is -- it's a waste of time and it's the appearance of doing something, and I don't think it solves anything. I've always thought this idea down here was plain silly, to have an employee go through that five, six times a day. That was stupid. I don't know another word to use. COMMISSIONER SCHLOTTERBECK: Well, that has been lifted.

I know. I know. But I just --

I don't want to belabor this issue. It's an issue for another day, and if you're working on a plan, it's something that we probably have to talk about at that time. COMMISSIONER SCHLOTTERBECK: And, of course, I'll make sure that I relay this to the Chief of Staff --

Thank you. COMMISSIONER SCHLOTTERBECK: -- so he understands your concerns. 18 4/2/08 - WHOLE - BILL 080022, etc.

Commissioner, how many vacancies do you currently have? COMMISSIONER SCHLOTTERBECK: Good question. Twenty-two.

How long have you had those vacancies? 9 COMMISSIONER SCHLOTTERBECK: 10 Madam President, my department for -- I'm 11 sure I'm not alone. We fluctuate. Often 12 times I hire people and they don't pass 13 through probation. I'm really very 14 supportive of my staff. I tell them the 15 beauty of the probation period. 16 So I have a lot of in and out 17 staffing issues. I also often times find 18 myself wanting -- a position opens up, so 19 someone suddenly retires. It's not the 20 position that I want to fill, so I find 21 myself working with Personnel to get the 22 right title for the right use. It often is a combination of a lot of reasons why I am never fully staffed, and it's not for lack of trying 19 4/2/08 - WHOLE - BILL 080022, etc. or even funding from Finance. It's a function of the system. I've been working with Personnel and I'm doing better at trying to make sure whatever I ask for, I ask for the exams in advance so that the list is created, but it's a work in progress, I have to tell you. So I would say I can't tell you that it's been for 12 months. I could 12 have gotten down to, you know, 15 and 13 then back up to 20 without -- I have a 14 lot of retirements. My department was, 15 when I first took over, one of the oldest 16 departments in terms of employees and 17 their ages. And the other thing that 18 happens to my department is, we tend to 19 recruit retired people from prior careers 20 that come into the City structure as a 21 retiree from federal government, some 22 other trade that they were in. So it's always been a challenge to have a fully complete staffing based on my budget. It's always been a 20 4/2/08 - WHOLE - BILL 080022, etc. challenge.

What are your vacancy positions? If you don't have it -- COMMISSIONER SCHLOTTERBECK: I don't have it. We can get back to you.

If you don't have them handy, if you would send them over in writing, I'd appreciate it. COMMISSIONER SCHLOTTERBECK: I would assume the majority of them are trades.

On -49, you are requesting $132,000 for PIDC for management of economic development. What services does PIDC provide and how do they bill for their services? COMMISSIONER SCHLOTTERBECK: PIDC, I have a contract -- we have several ways we reimburse them, but primarily we have a contract with them for our sale of assets, our surplus 21 4/2/08 - WHOLE - BILL 080022, etc. assets. I'm not sure -- can you again tell me, Madam President, what page you were referring to?

Sure. 16-49. COMMISSIONER SCHLOTTERBECK: Actually, the reimbursement for that is actually salaries for consultants that I have that do my Public Art Program and also my Art in City Hall Program. When we transferred from Commerce to Public Property probably four years ago when I first became Commissioner, they were contracted in this manner and I continued the relationship. I had put in some paperwork to transfer them to Class 100 to create the positions and what-have-you, but it got stopped by the last Administration because they felt that wasn't really where they wanted to go, and I'm still working with the current Administration on what the new Public Art Office will look like. 22 4/2/08 - WHOLE - BILL 080022, etc. So those are reimbursements back to Commerce for their salaries. But we also do reimburse PIDC, Madam President, for services for marketing and the work they do for me on my surplus assets.

I'm rather curious, why can't these services be provided by the City? COMMISSIONER SCHLOTTERBECK: Which services?

The services that PIDC provides. COMMISSIONER SCHLOTTERBECK: Are you talking about the sale of assets?

Whatever services PIDC provides. Is it just sale of assets? COMMISSIONER SCHLOTTERBECK: No. That one contract, that one line item you referred to, is me reimbursing --

The 132,000. 23 4/2/08 - WHOLE - BILL 080022, etc. COMMISSIONER SCHLOTTERBECK: I reimburse them for my employees. I reimburse Commerce. Commerce has a contract with PIDC. I reimburse them. I give them money back for these two employees. But it ends this June. I have to contract directly with them if I'm going to continue their services or I will have them fold into the future Public Art Office that the Mayor is creating. And the sale of assets, I need them to do that for me. I can't sell directly.

I know that maybe four years ago Public Property was very gung-ho at the request of the Administration to sell any surplus property that we had. Was that program successful and do we still have surplus property that can be sold? COMMISSIONER SCHLOTTERBECK: Yes, it was successful, and, yes, we still have a continued list and a continued desire to sell assets. We had 24 4/2/08 - WHOLE - BILL 080022, etc. a few that have been brought back in to rethink our strategy with the new Administration. But, yes, we still have a list.

I'm sorry. I didn't hear you. COMMISSIONER SCHLOTTERBECK: We still have a list.

And have you provided that to the Administration? COMMISSIONER SCHLOTTERBECK: I have.

So they're looking into that? COMMISSIONER SCHLOTTERBECK: Yes.

Good. All right. The City is projecting to spend $16.5 million in FY09 for ground and building rentals. Are these rentals on a year-to-year basis? COMMISSIONER SCHLOTTERBECK: Some are. The majority of the dollars 25 4/2/08 - WHOLE - BILL 080022, etc. are long-term leases, and we have our eye on a few of our more expensive leases; for instance, Aramark Tower and 100 South Broad. We have certain leases that are long term that are coming to term and we are actively in negotiations with the owners to reduce costs. So some are long term. I can provide that to you, and some of them are year to year.

Can you give us an example of what rentals would be year to year? COMMISSIONER SCHLOTTERBECK: I actually have a very detailed list which I'd be happy to share with you.

Just give us an example, if you will. COMMISSIONER SCHLOTTERBECK: Okay. 1231 North Broad Street. That's 1231 North Broad Street. It's a small office for Mayor's Office of Community Services. It's been in existence for a very long time, and it's year to year. 4/2/08 - WHOLE - BILL 080022, etc. We have another Mini City Hall --

Excuse me. Would that be MOCS? COMMISSIONER SCHLOTTERBECK: Yes. We have a Mini City Hall at 2050 West Somerset. That's year to year. We have the Northeast Mini City Hall at Roosevelt Mall. That's also a year to year. 2000 Hamilton Street or the Rodin Place where the 9th Police District, that's a nominal year to year. 1341 North Delaware Avenue, Penn Treaty Park, that's a lease for the Police Department. It's Employees Services. It's separated for a reason from the other operations. The condos up at the Frankford Arsenal for police operations, narcotics and things like that, those are year to year. G Street, another narcotics police operation. I mean, I have a considerable number of them. Do you want me to continue or would you like me to -- 27 4/2/08 - WHOLE - BILL 080022, etc.

No. 3 I think that's fine. If you would supply us with a list -- COMMISSIONER SCHLOTTERBECK: Absolutely.

-- of what are the year-to-year contracts, I'd appreciate it. How often are the City's space requirements reviewed and is there an opportunity to consolidate space and save the City some money? COMMISSIONER SCHLOTTERBECK: The answer is that we do not do it as a group in an organized way. We haven't done it for a very long time, but we are working with the new Administration. The Space Committee's jurisdiction over all real estate matters was reiterated yesterday at our executive team meeting. We have found that folks often find themselves ready to just go about the business of finding out what's out there and then having discussions with people 28 4/2/08 - WHOLE - BILL 080022, etc. that they shouldn't. We are looking to reduce the overall -- it's one of the efficiencies that I have put on the table, both as the lessee and the lessor. We're working with Finance to drive down those costs, and the Law Department, and we really believe that there's additional space available. For instance, the building that comes to mind right now is the Municipal Services Building. Because we've all suffered a great deal of loss of staffing over the last five years, and we're looking to do a study where we can come back and say, You know what, if we reshuffle the deck, you've got a whole floor that we can terminate some rental space and backfill, but we're beginning to organize that whole plan.

That sounds good. On -- oh, is there any available space in City Hall? I know a number of my colleagues would like to -- 29 4/2/08 - WHOLE - BILL 080022, etc. COMMISSIONER SCHLOTTERBECK: It's getting hot in here. I'm getting hot. The answer is no. I very much expected you to ask me that. But if there are specific requests you wanted to make of the new Administration, by all means.

Okay. On -69 of your detail, you are requesting $385,000 for the Philadelphia Municipal Authority and $115,000 for PIDC for compensation agreements. Would you please explain these agreements? COMMISSIONER SCHLOTTERBECK: I think the 340,000 is the PMA, which that's in my budget. I reimburse for the administrative fees or costs, and they're Class 100 monies to run that operation. That's part of Public Property's budget detail. The 115 is --

How many people do they have, how many 30 4/2/08 - WHOLE - BILL 080022, etc. employees? COMMISSIONER SCHLOTTERBECK: They have an attorney. It's either three or four people. I can get you that. I can get you a copy of actually what their submittal is to me. Would that be --

Thanks. COMMISSIONER SCHLOTTERBECK: I can give you that detail.

Thank you. COMMISSIONER SCHLOTTERBECK: You're welcome.

And what is the agreement with PIDC? COMMISSIONER SCHLOTTERBECK: With PIDC?

The compensation agreement.

Point of information.

The Chair recognizes Councilman Green for a 31 4/2/08 - WHOLE - BILL 080022, etc. point of information.

Thank you. Good morning. What does the PMA, Philadelphia Municipal Authority, do? What is its mandate? I don't know that, so as you were talking about it, I wasn't sure. COMMISSIONER SCHLOTTERBECK: Can I get back to you on that? I honestly do not know the direct answer to that question. I mean, I think they do many things for many departments in the City. I don't have that answer, but I will give you the contract and I have the detail of what we're reimbursing them for on an annual basis.

If you could provide that to the Chair, that would be great. Thank you. Thank you, Madam President.

PIDC. COMMISSIONER SCHLOTTERBECK: The PIDC, I'm just told by my folks, is the counting of the same arts and culture 32 4/2/08 - WHOLE - BILL 080022, etc. reimbursement twice in the detail. I only reimburse once for that. It's just -- it's a mistake in the budget detail.

So can you tell me that we just found $115,000 that can be used elsewhere? COMMISSIONER SCHLOTTERBECK: Well, possibly, but I guarantee you I can spend that without batting an eye.

Well, we're certainly going to check into that. COMMISSIONER SCHLOTTERBECK: I'll look into that, but that's what I'm just told by my budget people.

Okay. Very well. I think just about every Councilperson here has his or her light on. So the first go-around will be five minutes, and at this time, the Chair recognizes Councilman Green.

Thank you, 33 4/2/08 - WHOLE - BILL 080022, etc. Madam President. What is the value of your surplus assets? COMMISSIONER SCHLOTTERBECK: We have a list and then we have surplus assets that I don't know the value. And I'm not trying to be smart. I think our overall figure on what we believe we own is 12,000 parcels, and our current asset list -- I'm cautious on giving out details, because these are appraised values and we are trying to sell. So I can supply information, but --

The Department of Public Property doesn't have a lot of confidence in appraised values? COMMISSIONER SCHLOTTERBECK: No, no. We do. I just don't like advertising them when I'm trying to have folks give me more than the appraised value. The value of our assets at this point is 58 million. 34 4/2/08 - WHOLE - BILL 080022, etc.

That's total assets? COMMISSIONER SCHLOTTERBECK: Just on my asset list, my surplus asset list.

Okay.

Is that surplus? COMMISSIONER SCHLOTTERBECK: Yes.

And when you say 12,000 parcels, how do you break that down? I mean, there's obviously buildings that the City is using for a municipal function. Then I guess surplus are things we're not using for a municipal function. What does that primarily consist of? COMMISSIONER SCHLOTTERBECK: All of it.

I mean, are they vacant lots? What's the -- COMMISSIONER SCHLOTTERBECK: Councilman, I'm going to ask my Deputy 35 4/2/08 - WHOLE - BILL 080022, etc. Commissioner, John Herzins, to answer that.

Thank you. COMMISSIONER SCHLOTTERBECK: He deals with assets. DEPUTY COMMISSIONER HERZINS: Out of the 12,000 parcels, roughly 2,000 are managed facilities. That would be anywhere from libraries, rec centers, even parks.

That we're selling, that are in our surplus assets list? DEPUTY COMMISSIONER HERZINS: No. No. This is out of the 12,000 inventory.

In the surplus assets, the ones not used for municipal function, I'm -- DEPUTY COMMISSIONER HERZINS: Our total inventory is 12,000. Two thousand is our managed facilities. So we have a remaining number of about 10,000 parcels. 36 4/2/08 - WHOLE - BILL 080022, etc.

How would you describe them?

The majority of them are lots and vacant houses that were acquired a lot of times through the sheriff's sale process.

Okay. Are you familiar with a program in Baltimore -- and I might get the name wrong -- it's called SCORE -- the SCOPE Program? COMMISSIONER SCHLOTTERBECK: No. 15

It's a program that permits real estate agents who qualify, they have to meet specific criteria for certain kinds of volume and other things, to actually have a link in their -- first of all, it lists all city-owned properties in the MLS that are for sale. It also allows real estate agents who meet this qualification and agree on fees with the city to sell them. That program has been extremely 37 4/2/08 - WHOLE - BILL 080022, etc. successful in moving properties off the public rolls and getting cash into the city, and I commend it to you to look at. Fifty-eight million dollars is a significant amount of property, and even if we could get 40 million for it, it's 40 million in infrastructure. We could invest in police stations so police have better working conditions. Our capital needs are extensive, so we should -- in my view, we shouldn't be holding properties longer than we have to. DEPUTY COMMISSIONER HERZINS: The Administration is currently working on not only putting together an inventory that the public can access to know what is available, but they're also going to be issuing a disposition policy that will help move these properties out of the City inventory.

I would suggest that -- DEPUTY COMMISSIONER HERZINS: 38 4/2/08 - WHOLE - BILL 080022, etc. We will look into that.

-- the cost of using private real estate agents and firms is far less than any other process we could put up, because it puts it in MLS. Everybody knows what's available. It's available to the public. It's available to people looking to develop in certain neighborhoods. It's all instantly there. That's what they do. That's what MLS is for and -- COMMISSIONER SCHLOTTERBECK: We'll look into it.

-- I commend that to you. Do you guys have a computerized work order management system? COMMISSIONER SCHLOTTERBECK: Yes, we do.

You do? COMMISSIONER SCHLOTTERBECK: Yes.

How much deferred maintenance is there in City 39 4/2/08 - WHOLE - BILL 080022, etc. buildings? COMMISSIONER SCHLOTTERBECK: I wish I could answer that. Clearly, we have a huge problem, and we have been -- as Commissioner for four years and Facilities Director, I don't know, ten years before that, it's something that I've been trying to get people to hear about, hear me and work with me. And I can tell you that people are hearing me now. We've been asked to put a plan together, Jim and I, to figure out how do you tackle this deferred problem that's been going on for or longer years. 16 So to me, the simple way is to 17 start to get the building; for instance, 18 one police facility, up to some standard, 19 and that's going to take a plan, which I 20 am working on with Jim. 21 (Bell rung.) 22 COMMISSIONER SCHLOTTERBECK: 23 Then when we get it to that level where 24 it's an acceptable condition to be 25 working in, we expect then to then 40 4/2/08 - WHOLE - BILL 080022, etc. reinvest and continue to keep it up to that standard. And we've been asked to identify what the appropriate staffing would be to maintain that building going forward. We're working on all that. So I'm hopeful. I've been heard and they are listening to us, but we have a lot of work to do yet.

If you could please provide that --

Councilman, I don't know if you heard.

Yes, ma'am, I did. I'm asking her to please provide that information related to my last question to the Chair, the dollar amount of deferred maintenance.

Very well.

Thank you. COMMISSIONER SCHLOTTERBECK: I will do my best to do that. Can I -- I just want to comment that I hope you 41 4/2/08 - WHOLE - BILL 080022, etc. understand, Councilman, that I am not the Commissioner responsible for all City facilities. So if you're asking me -- are you asking me specifically what's under the jurisdiction --

What you're responsible for, yes, ma'am. COMMISSIONER SCHLOTTERBECK: Got it. All right.

The Chair recognizes Councilman Jones.

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

First and foremost, my interaction with Public Property goes back a number of now decades to interaction with a Joe Petrone, who used to have disposition of publicly owned properties, and from that point forward, I have had nothing but a positive interaction with your 42 4/2/08 - WHOLE - BILL 080022, etc. department. More recently when we were sworn in, I did not -- also I had great assistance from the President's Office, but also in conjunction with your department to get us up and operating in a matter of about eight hours. So folk came in, they did what they had to do to accommodate us, and I wanted to put that on the record and thank you and your department for -- COMMISSIONER SCHLOTTERBECK: Thank you.

-- a number of decades of good cooperation in an area that has to be defined as difficult. COMMISSIONER SCHLOTTERBECK: Thank you.

A couple of questions. One, as we move forward in Public Property, is there a key component within your strategy that deals with greening? COMMISSIONER SCHLOTTERBECK: 43 4/2/08 - WHOLE - BILL 080022, etc. With? I'm sorry.

The greening of Philadelphia, being more efficient with energy. Is there a master plan that encompasses City-owned properties? COMMISSIONER SCHLOTTERBECK: Basically at this point our recommendation would be, for energy efficiencies, would be in the triplex, which incorporates the Criminal Justice Center, the Municipal Services building and the One Parkway. I did mention in my testimony that we're working on efficiencies in HVAC systems. I can ask Jim to elaborate further, if you'd like to hear more.

Yeah. I mean, as you may guess, I spend way too much time in this room right here in Council Chambers and there are approximately, as I counted, close to two hundred -- COMMISSIONER SCHLOTTERBECK: There's 400 light bulbs. 44 4/2/08 - WHOLE - BILL 080022, etc.

Four hundred? COMMISSIONER SCHLOTTERBECK: Yeah.

Four hundred light bulbs. I spend way too much time here. And as I look at them and think about energy consumption, we really can start to plan these things in a more cost-effective manner that over time will allow us to realize some savings and also set an example for the private sector and other sectors to really start to move Philadelphia Green forward. So I would like some detail on that. COMMISSIONER SCHLOTTERBECK: Councilman, I'm sorry. As Kent Miller from the Municipal Energy Office just reminded me, we have made some efforts in this building to lamp with compact fluorescents and we've had some issues with them failing, but it was more about the selection than it was the effort. So we have to revisit what we'd like to do, 45 4/2/08 - WHOLE - BILL 080022, etc. and Jim and I have actually been working with Councilman Kenney on this lovely 400-bulb problem right above our heads. And, Jim, do you want to elaborate a little bit on that?

Sure. Yes, Councilman. We've been really trying to attack this in a couple of different areas. As the Commissioner stated, we really have been trying to focus on the triplex and bringing full modernized controls, light controls, energy-efficient controls, to the facility to get energy efficiencies there, but in this building as well, we've been literally prototyping different types of bulbs and different fixtures. For example, the curly cues you see, if we deploy them in here, they tend to fail under heat. So we're trying to find an appropriate bulb for this room 24 that, one, will provide the energy savings that everyone would like to have; 46 4/2/08 - WHOLE - BILL 080022, etc. two, provide the correct color temperature for the cameras so that everyone in here still looks good, so you don't have that -- you know how fluorescent bulbs can be. They're not as attractive often as incandescents. But citywide we really would like to start with the triplex first, roll it to City Hall. We'd love to master plan the entire conditioning of the space in City Hall so we don't have to rely on inefficient window units on the perimeter, for example, for air conditioning. If we have the infrastructure in place up on the seventh floor to eventually extend to all the floors and roll out City Hall in a more energy-efficient way, and we want to, as we automate controls in the triplex and there to outlying facilities, extend that to newer police and fire stations -- (Bell rung.)

That was fast.

Come on. 47 4/2/08 - WHOLE - BILL 080022, etc. Charlie, you need to check that timer.

It's energy efficient.

Energy conservation, right, Councilman. Councilman, if you'd like, I'll be happy to sit down with you and go over some of our plans and how we really want to attack some energy initiatives.

Just real quick, Madam President, also -- all right. I'll wait for my turn.

The Chair recognizes Councilman Rizzo.

Thank you, Madam President. Commissioner, Camp William Penn, I heard you earlier say that you always would like to get more, good to hear that, for more than the appraised value of a particular facility. But I mentioned to the Administration yesterday, I think we really should try to work with the local community's 48 4/2/08 - WHOLE - BILL 080022, etc. elected officials to first see if there's any interest in them acquiring that space, because it possibly could allow things to come together a little better in that Monroe -- I think it's Monroe County, Pike County. I'm not sure exactly, but I think that we ought to really talk or at least suggest, which I have, to the Administration folks to talk to them first to see if we could do an appropriate transfer of that land to them if they're interested and for an appropriate price, but I'd just like you to keep that on your radar. COMMISSIONER SCHLOTTERBECK: Actually, Councilman, we're thinking the same way.

Great minds think alike. COMMISSIONER SCHLOTTERBECK: There you go.

The other issue, President Verna earlier said that she wants to commend you for the great 49 4/2/08 - WHOLE - BILL 080022, etc. job that you guys do, and you really do. You have a lot of balls in the air and you seem to always get it accomplished. And I also want to compliment -- as you know, we've been struggling for a lot of years with the radio system, the 800 megahertz radio system, and even though the system is working well at this point, that technology changes by the second, and I just want us to stay as current as we can, and if you need additional funding -- because I heard through a source at Motorola that there is some significant upgrades required to keep that system current, and if you need the money for it. We're talking about life and death. We're talking about fire. We're talking about so many departments that lives depend on that system to work. And, again, your communications people have done such an outstanding job to work through the various issues and have just 50 4/2/08 - WHOLE - BILL 080022, etc. done well. I know there are times when we have some issues with it, but let's try to avoid any issues, because, again, that system is starting to get old already even though we've been talking about it all these years, and I understand there could be upwards to $20 million needed or even more to bring that system into the next generation of communication systems. So, again, thanks for that. The Fire, the Police thank you because of the improvements. We just want to make sure that five years from now we are staying current with that system. So do you have any plans to look at what is needed for upgrades? Is my information correct that there are some upgrades required? COMMISSIONER SCHLOTTERBECK: You are correct, and I'm going to ask Deputy Commissioner Frank Punzo to come up. Frank and I are actually going up to Chicago in a couple of weeks for 3-1-1 51 4/2/08 - WHOLE - BILL 080022, etc. and also Motorola, but I'll let him explain where we are. DEPUTY COMMISSIONER PUNZO: Frank Punzo, Deputy Commissioner of Communications for Public Property. Councilman, you're correct in your assessment that upgrades are needed. The system will soon be approximately ten years old from the date that it was actually installed, and that $20 million figure might be slightly high in one area. However, from the perspective of if we combine that with the underground, it would be slightly low, probably in the area of around $26 to $27 million. We're trying to supplement that through grants that we have applied for, and have gotten good feedback that we will receive, one being the Public Safety Interoperable Communications Grant, which we hope to get about $8.8 million. So, again, bringing it back down into that $20 million range. So, yes, the plan is, as the 52 4/2/08 - WHOLE - BILL 080022, etc. Commissioner mentioned, we're going to go to Chicago. It's not that we haven't been discussing it, but to actually see the system. It is 7X. We are on currently Version 3.0. And we anticipate that this will provide us not only the new system for another ten-year period, but will also allow us some upgrades that we can't currently add to our current system, things like digital repeaters, which I know has been a big question mark out there as to what can occur with Fire Department or Police Department personnel, certainly the underground 700 megahertz, which is something coming down the pike from the federal government. So all of those things will be part of the ability with the new system. We don't necessarily have to implement them immediately, but they will be part of the new system.

And the funding to support that, is it in place? Is there something we need to do? Can 53 4/2/08 - WHOLE - BILL 080022, etc. Commissioner keep that money that President Verna found and transfer it over there to -- COMMISSIONER SCHLOTTERBECK: I already spent it.

-- pay for that? She already has your money spent, President Verna. DEPUTY COMMISSIONER PUNZO: I'd love that 115,000. The answer is, we anticipate that that money will be available through the 9-1-1 fund, so it would not hit, I'll call it, the General Fund. (Bell rung.)

Because I absolutely agree that if we don't stay current with this, it's so easy to fall behind, and probably we would spend more money trying to play catch-up than dealing with it in a very intelligent, planned way. DEPUTY COMMISSIONER PUNZO: I 54 4/2/08 - WHOLE - BILL 080022, etc. would agree a hundred percent.

Good. Good luck. Thank you. DEPUTY COMMISSIONER PUNZO: Thank you.

Thank you, Madam President.

You're welcome. The Chair recognizes Councilwoman Brown.

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

Let me start off first by saying thank you as well. My office has also been the beneficiary of the efficiencies and work product of your professional staff, and I thank you for that. COMMISSIONER SCHLOTTERBECK: Thank you. 55 4/2/08 - WHOLE - BILL 080022, etc.

On of your testimony at the top, you mention a number of departments that are going to be, as you put it, next department for absorption. Just share with me a few specifics about what that means. COMMISSIONER SCHLOTTERBECK: What it means is, clearly Public Property's responsibilities for maintenance are greater than its staffing abilities. We don't have the staffing to perform. That's not a unique situation. We have other departments in the same position. And what we've learned is that the Police Department was the first to -- former Commissioner Timoney agreed that he didn't need to be in the business of maintenance, but rather in the police business. So he turned over the maintenance to me. We did Fire next. We just recently took over Riverview and --

And I see DHS is on the document. COMMISSIONER SCHLOTTERBECK: 56 4/2/08 - WHOLE - BILL 080022, etc. DHS in the context that when we build the new Youth Detention Center, that will be a contracted services building, is the way we see it at this time. We may get there and evaluate and come up with a different plan, but we're looking at it in those terms. And those employees that are currently working there would be redeployed to Public Property's general maintenance team, and that's the way we see it. All of our facilities in the City are all clustered in the same areas, so you can have a library ten feet from a police station, and we have zones where we have teams of employees that are going delivering --

So they rotate based on need and request? COMMISSIONER SCHLOTTERBECK: Right. And you would get the benefit of people being familiar with the facilities, again, back to my idea of bringing up to a standard that's 57 4/2/08 - WHOLE - BILL 080022, etc. acceptable, that people can work in the conditions that are presented and it's not -- I mean, a lot of the -- it's less than acceptable working conditions out in the field.

Okay. It's in many ways an attempt again for just government to work smarter. COMMISSIONER SCHLOTTERBECK: Exactly.

Got it. Okay. Briefly tell me, if you would, about your department's role or your role in the contracting process of any kind. Thank you for providing the detail in your testimony, but in speaking with department heads yesterday, I had some new discoveries. So tell me what you do as the leader of your department when it comes to any contracting of any kind, subcontracting with non-governmental entities. COMMISSIONER SCHLOTTERBECK: Well, over the years, in my roles -- I've 58 4/2/08 - WHOLE - BILL 080022, etc. been in Public Property years. When we -- back in the Rendell era when I was a facilities person, we talked about are we running City Hall, are we cleaning it the way we should be, how do we want to be looking at services we are providing in the future. I still think that way. I still think about, as I just said, with the maintenance consolidation, if I bring it into Public Property and I have to deliver these services; for instance, to Riverview, what would I do better. And then I look at a combination of the labor issue for the in-house staff and how I can complement their trade skills with complementary contracts. So I am actively in these discussions in these meetings. Do we go to a low-bid contract through Procurement? Do we do an RFP for some unusual service that we want to provide?

Okay. COMMISSIONER SCHLOTTERBECK: So as the Commissioner, I am very much 59 4/2/08 - WHOLE - BILL 080022, etc. involved in --

You're at the table. COMMISSIONER SCHLOTTERBECK: Yeah, I'm in all those discussions. I don't delegate responsibilities for spending money in my department down. They can come up, and I have to be in those discussions.

Okay. Well, I asked that question because there are a number of us doing these proceedings that pay close attention to MBE and WBE participation, and Councilman Goode, I lean on him for a report he has that actually shows by percentage how departments are doing. COMMISSIONER SCHLOTTERBECK: Right.

And I'm thrilled to see that your department is really one of the top three in government that is doing its fair share with regards to making sure that those who do business 60 4/2/08 - WHOLE - BILL 080022, etc. with the Department of Public Property look like Philadelphia. So that's my reasoning for raising the question, because we need to pay attention to that. So congratulations on that front. COMMISSIONER SCHLOTTERBECK: Thank you.

My last question is, tell us about the security guard contract. This is a follow-up to the question raised by President Verna around the security guard initiative. So just briefly speak more about that, who they are and the like. COMMISSIONER SCHLOTTERBECK: We have two huge contract needs for security services, City Hall being one and 63rd Street, combined Streets/Fleet facility. We provide guard services out there 24/7.

63rd and? COMMISSIONER SCHLOTTERBECK: 3033 63rd Street. It's our combined Fleet and Streets facility. 61 4/2/08 - WHOLE - BILL 080022, etc.

Okay. COMMISSIONER SCHLOTTERBECK: It's eight acres. (Bell rung.) COMMISSIONER SCHLOTTERBECK: It's in a part of the City that has very few neighbors other than car dealers, junk yards.

South 63rd Street, Southwest Philadelphia, Councilwoman Blackwell. COMMISSIONER SCHLOTTERBECK: So we have a lot of -- we keep guards there 24/7. It's actually worked very well since we've been in the business of owning that facility. And also City Hall, we've been given the responsibility for the increased security both at the ground level with the new cameras several years back and also with the requirement up here for Council hearings. And every year -- I mean, I think I'm up $300,000 this year in terms -- 62 4/2/08 - WHOLE - BILL 080022, etc.

For the contract or for the -- COMMISSIONER SCHLOTTERBECK: Yes.

For the actual contract. COMMISSIONER SCHLOTTERBECK: For the actual contract.

Okay. COMMISSIONER SCHLOTTERBECK: For guard services.

Yes.

Councilwoman, your time is up.

Yes. Thank you, Madam President.

Thank you. The Chair recognizes Councilwoman Blackwell.

Thank you, Madam President. I'll only mention this go-around two short issues, and one is, I 63 4/2/08 - WHOLE - BILL 080022, etc. know we're out of space, but that doesn't include the Mayor's Commission, correct? We have that space in line, the Mayor's Commission on African and Caribbean Immigrant Affairs for the last couple of years. COMMISSIONER SCHLOTTERBECK: The answer is, I actually have -- as you know, we've talked about it, and I actually talked to the Chief of Staff about that and where we can put those folks. But, Councilwoman, is it safe to assume that I should be calling Stanley Straughter?

That's fine. Stan Straughter is fine. COMMISSIONER SCHLOTTERBECK: I would like to get a letter from him. I think we're still talking about an office and a cubicle, but I'm not sure.

We'll have Stan send you a letter. COMMISSIONER SCHLOTTERBECK: And I need to make sure it goes through 64 4/2/08 - WHOLE - BILL 080022, etc. the Space Committee process as well.

All right. Whatever we need to do, we're fine. COMMISSIONER SCHLOTTERBECK: All right.

And the other thing is, we just wanted to check to see if there's a new process evolving to try to get some backlogged deeds processed, like through VPRC and there for various reasons, for sale, those that go through VPRC for side yards or whatever. COMMISSIONER SCHLOTTERBECK: Okay. I actually have a meeting, I believe it's, tomorrow with OHCD. We've been talking amongst ourselves for about three years now and it's high time I just went down, sat down. And often times what's presented to me for my signature is not detailed enough, and I just refuse to sign things without enough information in front of me. So I'm sitting with 65 4/2/08 - WHOLE - BILL 080022, etc. Debbie McColloch, with John Coates and with Mike Koonce tomorrow, and we're also working with the new Deputy, Joanne Jones, on a process. The papers travel through the government at a snail's pace and we have to figure out how to increase that process. So we're meeting tomorrow.

Oh, that's great. Could we have Herb Wetzel represent us, if that's okay with you? COMMISSIONER SCHLOTTERBECK: Well, at this point, I'd rather keep it to an internal discussion just with us, because I want to approve the process, and then I absolutely have no problems inviting folks in on what we're doing and explaining how we're going to fix it. But until then, I just want it to be RDA, OHCD, Public Property. I think it's better for now to do it that way.

Thank you. COMMISSIONER SCHLOTTERBECK: You know, I'll get in touch with Herb 66 4/2/08 - WHOLE - BILL 080022, etc. when we're ready to roll it out.

Okay. Thank you. COMMISSIONER SCHLOTTERBECK: You're welcome.

I just thought he might be helpful in -- he represents us, but obviously, as you know, he was over there some years. 11 Okay. Thank you. 12 COMMISSIONER SCHLOTTERBECK: 13 Yeah. I just want to get the process 14 fixed, and then I don't mind sharing it with anybody.

All right. Thank you, Madam President.

You're welcome. The Chair recognizes Councilman Kenney.

Thank you, Madam President. I just want to thank you, 67 4/2/08 - WHOLE - BILL 080022, etc. Commissioner, and all your people. This department is involved probably in every aspect of government that we deal with. So whether it's a festival or whether it's something going on in City Hall or anything in between, it's always your people that are on the ground making it happen. So I just want to thank you all for all your work. COMMISSIONER SCHLOTTERBECK: Thank you.

Because I think you guys do a terrific job. Most of the things that annoy us as we sit here today are annoyances from the last Administration or Administrations past and not necessarily this one that's been there about 12 weeks. So I just want to take the opportunity to thank you, wish you well. Thank you for all your hard work on 3-1-1. I know how you guys really sped up the process once the Managing Director gave you the go. You've been really at 68 4/2/08 - WHOLE - BILL 080022, etc. it. And, Frank, especially I want to thank you for that. So maybe this time next year we'll have some issues to discuss once you've fixed everything. Hopefully it will be an easy hearing. It will be an easy hearing again. So I have no questions. I just wanted to thank you for your work. COMMISSIONER SCHLOTTERBECK: Thank you so much. I appreciate it.

The Chair recognizes Councilman Greenlee.

Thank you, Madam President. Let me first join the chorus in praising the work your department does and everybody in it. Your responses are always prompt and efficient, and we appreciate that. COMMISSIONER SCHLOTTERBECK: Thank you.

I just have a question actually relayed through 69 4/2/08 - WHOLE - BILL 080022, etc. Councilwoman Tasco, so I hope I'm saying this right. She couldn't get here, but she had some concerns about particularly the lighting on the fifth floor. Is that something she's ever talked to you about? Have you looked at the lighting generally in the hallways to see if they're adequate? I think I understand what she means. COMMISSIONER SCHLOTTERBECK: Well, I think that it's safe to say for those who have noticed certain corridors in the building; for instance, in the northwest corner, first floor, outside of Register of Wills, that ceiling, that lighting is what we would love to continue. Same thing on the fourth floor. We would like to continue that throughout the building.

It makes such a difference.

Yeah. COMMISSIONER SCHLOTTERBECK: We have put that on our list, and the new 70 4/2/08 - WHOLE - BILL 080022, etc. Administration has asked. I'm putting everything but the kitchen sink in front of anybody that wants to hear, and that's where we would like to be. So, no, I don't believe she's -- she hasn't talked to me nor Jim directly about it, but that's the answer, that what you see in terms of ceiling and lighting is what we'd like to just roll out for the whole building.

And are there plans to do that, I mean, maybe long range? Because I know everything costs money. COMMISSIONER SCHLOTTERBECK: It's in the capital request.

And that would be all the hallways in City Hall? COMMISSIONER SCHLOTTERBECK: Yes.

Thank you. Thank you, Madam President.

That 71 4/2/08 - WHOLE - BILL 080022, etc. was easy. Councilman Goode.

Thank you, Madam President. Commissioner, I also have to thank you for a great job your department has done, particularly with my office. COMMISSIONER SCHLOTTERBECK: Thank you.

I have a question actually on behalf of Councilwoman Sanchez, who wants to know is there going to be any change in policy in terms of the fee for property transfers and whether non-profits under this Administration will be able to receive properties for a nominal fee rather than fair market value. COMMISSIONER SCHLOTTERBECK: Properties in the context of --

Property transfers for development, whether non-profit developers, like community development corporations, will be able to 72 4/2/08 - WHOLE - BILL 080022, etc. access properties again for less than fair market value. COMMISSIONER SCHLOTTERBECK: At this point, the past Administration had the same approach as the current one seems to be inclined to keep, which is to say, that it's my responsibility to identify surplus assets, to get them appraised, to, of course, work with the councilmanic district, wherever that is. But it's not my call whether or not someone would get consideration for less than market. Those kinds of things need to be vetted above my head straight to the Mayor's Office. I have not gotten a written policy yet from the Administration, but I think that's the way we will probably proceed. So, in other words, it's not going to be something, I don't believe, that we would carte blanche say that all non-profits can get access to City properties for less than --

Well, not 73 4/2/08 - WHOLE - BILL 080022, etc. carte blanche so much. I guess part of what she wanted to know is whether there are any discussions underway now in terms of a new policy, because essentially, particularly a lot of non-profit development, we're subsidizing on the other end anyway and so it doesn't necessarily make sense. COMMISSIONER SCHLOTTERBECK: The answer is yes, we are working on our whole policy, disposition, land bank. It's all being reevaluated by this current Administration.

Okay. Thank you. COMMISSIONER SCHLOTTERBECK: You're welcome.

Thank you, Madam President.

You're welcome. Commissioner, as we spoke about our assets, I know the last Administration was talking about the sale 74 4/2/08 - WHOLE - BILL 080022, etc. possibly of the underground garage at 15th Street. Are we still considering that? COMMISSIONER SCHLOTTERBECK: We are working as a committee and a team with the new Deputy Mayor for Transportation, Rina Cutler. That is being revisited. Budget Directors, Finance Director, everyone is interested in what we want to do with that asset. We're not necessarily inclined to --

It's in terrible, terrible condition, I'll tell you. COMMISSIONER SCHLOTTERBECK: Yes. There's no question.

I wouldn't want to walk down there after 5:30. I wouldn't want to walk down there at any time, but after 5:30 it's a mess. It really is deplorable. So I think we've got to decide what we're doing with that, because it's just not fair to the users. 75 4/2/08 - WHOLE - BILL 080022, etc. One last question. How many City facilities does your department have the responsibility of maintaining? COMMISSIONER SCHLOTTERBECK: Approximately 140 that go from the largest, which is the high rises and City Hall, to small police and fire facilities.

Well, again I say, you're to be applauded. You have to be a miracle worker. I don't know how you do that with the amount of employees you have. However, with that, the Chair recognizes Councilwoman Miller.

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

How are you? COMMISSIONER SCHLOTTERBECK: I'm good. How are you?

I too 76 4/2/08 - WHOLE - BILL 080022, etc. just want to thank you, too. I think your department does a really good job. I have a question regarding appraisals. What is your review process when the appraisal that may be someone in your department or someone you've contracted with doesn't match the appraisal that someone else has done, whether it's either higher or lower? Because, you know, we just had that happen in our district. Maybe you can also figure out how we can do a new mike system here so we can hear. But anyway, do you have some type of review process when the appraisals don't match for a given area? We just went through this with the Broad and Erie area. COMMISSIONER SCHLOTTERBECK: Well, I think what happened there was, it was a case where Public Property had it appraised and, unbeknownst to us, someone else also had it appraised. And I can 77 4/2/08 - WHOLE - BILL 080022, etc. tell you that it's not uncommon to have two different appraisals come in, and depending on what you ask the appraiser to do, how you're asking them to look at the facility, highest and best use, if you limit what it is you plan to do with it, you can get two different answers. I think that it's one of the reasons why I want to meet with OHCD and RDA. I think we have to make sure that we all know who is marketing what property and what process a surplus piece of property that is owned by whatever City agency, where that's moving through the system, whether it be VPRC or Public Property or OHCD for development. We're a little bit disjointed right now, and that's the point of our meeting tomorrow.

Okay. All right. Well, that's good, because that's what I wanted to know, if at some point you guys were going to come together and figure out. Because we get information from one department, then 78 4/2/08 - WHOLE - BILL 080022, etc. another department comes, and it just throws us off. COMMISSIONER SCHLOTTERBECK: Right.

So that's really good. I'm glad to hear that you're going to meet tomorrow. So I guess once you meet and develop whatever or however you're going to do it, then we will know once it's finalized, correct? COMMISSIONER SCHLOTTERBECK: Yes.

Because we are still trying to market Erie Avenue and other places in the district that some people think have a high value and other people think have a low value, and it's just difficult. COMMISSIONER SCHLOTTERBECK: Okay.

And the other question I have, just one more question, have you done an assessment on 79 4/2/08 - WHOLE - BILL 080022, etc. all the facilities, like the police stations and fire stations and all of that, all of those types of facilities? COMMISSIONER SCHLOTTERBECK: We have the PICA report which we rely on for that.

I'm sorry. I can't hear you. COMMISSIONER SCHLOTTERBECK: The PICA report.

And that was for what year was that? COMMISSIONER SCHLOTTERBECK: I'm sorry?

How current is it? COMMISSIONER SCHLOTTERBECK: It was done last fall.

Okay. COMMISSIONER SCHLOTTERBECK: Fall of '08 -- I mean '07. I'm sorry. Fall of '07.

I think I do remember seeing that. I'll look at 80 4/2/08 - WHOLE - BILL 080022, etc. that, because I was just wondering what the conditions of the police stations and fire stations and whatnot that are in my district are in. Some I go in all the time and you're pretty aware of what's happening in those various those types of facilities, and also the fire stations. COMMISSIONER SCHLOTTERBECK: Well, I actually have a meeting scheduled with Police Commissioner Ramsey for April 21st, and the plan, if you will, on how I would like to standardize, the plan on how I would like to staff, that's all going to be something he wants to hear from me, and how we intend to deal with capital issues and reinvesting in our assets. So we're working on it.

I was at the 14th District on Saturday, and in the driveway when you go around to get gas, it's like a huge, huge sinkhole at this point or big hole. Do I need to -- COMMISSIONER SCHLOTTERBECK: Is that the one right connected to 81 4/2/08 - WHOLE - BILL 080022, etc. Germantown Town Hall?

No. This one is actually on the police district's property. Not the driveway. I know what you're talking about. COMMISSIONER SCHLOTTERBECK: We'll look into that. I'm not sure. We'll look into it. (Bell rung.)

Because it needs to be -- COMMISSIONER SCHLOTTERBECK: Filled in.

Filled in, yeah. COMMISSIONER SCHLOTTERBECK: We'll look into it and we'll let you know.

Okay. Thank you.

Point of information on this issue.

Yes. The Chair recognizes Councilman Rizzo. 82 4/2/08 - WHOLE - BILL 080022, etc.

Commissioner, you indicated that you're utilizing the PICA report. Why would Public Property not have their own evaluation? What value does the PICA report serve you, other than you don't want to reinvent the wheel necessarily? But it doesn't sound like I'd be using someone else's report for an evaluation. COMMISSIONER SCHLOTTERBECK: Councilman, no. Don't misunderstand what I meant. When I look at the PICA report, as you all know for having done this job for so long, it's a placeholder for me. Someone finally did a professional review of conditions of the buildings. That's huge for somebody like me who has responsibility for maintenance, because it makes the absolute needs known. It quantifies them. It helps me with my -- I'm going to have to have this supported, but in the meantime, I have to have maintenance staff to maintain. It's a great asset. It's a great thing for me 83 4/2/08 - WHOLE - BILL 080022, etc. to use. I'm not telling you that I'm going blindly into that, but it's not complete. It was meant for a specific reason, and Capital will have to work with Public Property, with the Police and Fire Department, with Public Property. We'll all be together at the table trying to figure out how to plan our future, not just with the capital investment, but to maintain it.

Honestly, I'd feel more comfortable -- and I think since Public Property, you just indicated you have that responsibility, I think you should launch your own report so you know what exactly you need to deal with. I just can't imagine, no disrespect, but that not already occurring. Public Property should know what conditions they're dealing with and have your own appraisal. COMMISSIONER SCHLOTTERBECK: Oh, okay. Well, make no mistake, I think 84 4/2/08 - WHOLE - BILL 080022, etc. we do know what our problems are out in the field. What we didn't have was the complementary requirement, capital.

Then I wouldn't have even asked the question if you told me that was your appraisal and not the PICA report. Thank you. COMMISSIONER SCHLOTTERBECK: You're welcome.

Thank you, Madam Chair.

You're welcome. Councilman Green.

Thank you. Beginning with a point of information following up on Councilman Rizzo's question. So don't touch the timer yet. I think that is a good question. Now, in the private sector, people in charge of managing facilities would do an annual facilities assessment 85 4/2/08 - WHOLE - BILL 080022, etc. and update it. What is the reason we're not doing that? COMMISSIONER SCHLOTTERBECK: Staffing, funding.

I would suggest that in the long term it would save money to have a facilities assessment -- COMMISSIONER SCHLOTTERBECK: Absolutely.

-- so that you could get the problems annually, so you could get the problems early before they become more expensive or even capital projects versus maintenance items. COMMISSIONER SCHLOTTERBECK: Absolutely. I'll ask Jim to take over in a second, but I absolutely agree with you, but we've never been there as a city. Jim, do you want to?

Councilman, what we try to do each year is, we really try to 86 4/2/08 - WHOLE - BILL 080022, etc. analyze the work orders and the hours that we spend on certain key systems in the buildings, specifically roofs, boilers, et cetera, in the outlying facilities. We analyze that and we take direct feedback from our group leaders and our maintenance guys that tell us, Listen, this boiler is ten years old, it's going to need to be replaced in three years, make sure it's on the capital request, the roofs, the windows, what-have-you. We do our best to really, building by building, understand and analyze what we're up against, and then we do what we can. We put it in the capital request. We fight for it with the Capital Planning Commission and our City Planning Commission and we do what we can.

Well, I mean, the City Planning Commission has recommended $185 million a year be spent on capital improvements and we're 87 4/2/08 - WHOLE - BILL 080022, etc. spending 120 this year and 80 in the out years of the Five-Year Plan. So we're way -- let me just suggest, if you could please provide to the Chair ideas for investments that we can make today that are going to have a long-term return for the City of Philadelphia, an IRR of, say, over ten or percent, including a 10 facilities assessment, et cetera, then I 11 certainly would be pushing for us to make 12 that investment today if we're going to 13 get a return in the future on that 14 investment. So, I mean -- 15

No. Understood, Councilman, yes, and we have been trying to think with that, and that's where the Commissioner was alluding to the PICA report, as helping us as an initial roadmap to that. We are preparing internally by building what we think probably should be spent in each building to bring to the standard that the Commissioner refers to, and then after 20 years, we start over. 88 4/2/08 - WHOLE - BILL 080022, etc.

What I'd like to say is, I think you should have your own facilities assessment and the kind of property management data systems that exist in the private sector for people who manage the number of facilities that you do and annually update it. And I think that if you look to the private sector for what it costs them using these systems versus the City's current system, you're going to find that we're going to get a payback of two or three years on our investment, in which case the rest is gravy. So if you could analyze those and provide to the Chair your recommendations, I would appreciate it. COMMISSIONER SCHLOTTERBECK: And I agree that that's the most professional approach. I just think we're five years from even being there. That's just -- being able to go out that professionally and start dealing with it. But we will certainly get back to you. 89 4/2/08 - WHOLE - BILL 080022, etc.

I mean, there are private companies that do property management. COMMISSIONER SCHLOTTERBECK: No. I totally understand.

I mean, would it make more sense for us to outsource property management to a private -- is that what you're suggesting? COMMISSIONER SCHLOTTERBECK: No, I'm not. I'm just suggesting that to be that up to date and that ready to even explore software or maintenance management, those kind of -- we're not there. We don't even have a standard of deliverables yet. I agree with you, in other words. I'm saying that we should go down that path, but we're a few years away from even being able to do that.

Well, there's private sector software that could do it. If we put property 90 4/2/08 - WHOLE - BILL 080022, etc. management out for bid, the private sector would come in and bid on management, maintenance upkeep, and with their efficiencies, I think what I hear you say is that would be far more efficient for the City to do than continue to have the Department of Public Property manage all our properties. COMMISSIONER SCHLOTTERBECK: We actually have a professional management contract for our three triplex -- the three buildings. That's a professional managed contract. So we have a, I believe, combination of both like professional service and certainly some in-house staff given our variety of assets and the geographic area that we're covering. So, no, I think we're already thinking down -- we're already thinking about it in those terms.

Okay. Well, if you could follow up with the Chair on my previous request, I'd appreciate it. 91 4/2/08 - WHOLE - BILL 080022, etc. You also mention you're responsible for maintenance for 140 properties, and before I think the Deputy Commissioner talked about the number of properties mentioned, that 2,000 properties are sort of performing a municipal function out of the 12,000. Who does maintenance on the other 860? COMMISSIONER SCHLOTTERBECK: Fairmount Park, Streets Department, libraries, Recreation, Airport, Water, Health.

And the continuing consolidation of that role is something that you previously discussed. Is there an estimate by Public Property as to what the efficiencies would be for one department providing maintenance across all facilities or a business plan for that? COMMISSIONER SCHLOTTERBECK: We have put together what we -- past Administrations, probably about 18 months old now -- about how we would like to 92 4/2/08 - WHOLE - BILL 080022, etc. approach it and what we believe will be the efficiencies, which is standardizing contracts, standardizing the request for services, bidding out a larger contract that would deliver across the board certain elevator needs to all facilities. So we have something, but it's pretty --

Is that information you provided to the Administration in connection with the preparation of this budget when they requested efficiencies? COMMISSIONER SCHLOTTERBECK: Yeah. We talked about it, yes.

Could you please provide a copy of that report to the Chair? COMMISSIONER SCHLOTTERBECK: Sure. It's not actually a report. It's a PowerPoint presentation, but, yeah, I can do that. Absolutely.

Okay. Thank you. The Department of Budget 93 4/2/08 - WHOLE - BILL 080022, etc. includes $49,350, , for payment to Filsbury, Witten and Diamond for lobbyists for transportation issues. The same amount is in FY08. Can you explain that to us? COMMISSIONER SCHLOTTERBECK: There's a contract through the Mayor's Office and departments that utilize services. I have the SEPTA subsidy in my budget. They allocate certain portions of the overall consulting dollars for those services for lobbying to each department, and that happens to be my share, the 49.

Now, since it's in your budget and the Mayor's budget, I'm assuming this is in addition to the $400,000 that the Mayor's Office requested for lobbying in the Mayor's Office budget? COMMISSIONER SCHLOTTERBECK: I can't answer that. I would say it's safe to assume that it's above and beyond, but I don't know. I'd have to ask the 94 4/2/08 - WHOLE - BILL 080022, etc. Finance Department to answer that. I really don't know.

Do you know what services this lobbying firm performs? COMMISSIONER SCHLOTTERBECK: Whatever transportation issues that may come up for the City overall.

In Harrisburg? COMMISSIONER SCHLOTTERBECK: Harrisburg and I would assume down --

Washington. COMMISSIONER SCHLOTTERBECK: -- in Washington. Both, yes. So I don't know the relationship to the Mayor's budget in my request. I can take that and have that answered by Finance.

Thanks. There was a December 2007 article in the Inquirer and it proposed that the City could help attract tourists to Center City by installing sort of more 95 4/2/08 - WHOLE - BILL 080022, etc. dramatic lighting than we do during the holidays. The article noted that there are 158 giant snowflakes and stars placed on like JFK where there's nobody walking. Has the Department considered or worked with the Tourism Marketing Bureau focusing its holiday lighting displays in Center City where people walk, we can make it an attractive, fun place to come? (Bell rung.) COMMISSIONER SCHLOTTERBECK: Absolutely. I've been working with Center City District for years on this, and I think that a lot of times folks think that the lighting even on Market East is done by the City of Philadelphia. It's done by Center City District. Center City District worked with Public Property to get City Hall with the light projected onto the facade. We do work with them, and, again, it's always a matter -- I think I'm familiar with that article. I was 96 4/2/08 - WHOLE - BILL 080022, etc. interviewed. It's always a matter of discretionary dollars in my budget to do better every year, and I just -- it's not there. So we do the snowflakes on the poles down and around City Hall, some on North Broad Street. We do the flags along the Parkway. There are things that I do in my department. But I do work very closely with the tour office down at the Constitution Center as well as Paul Levy with Center City District.

Great. The bell rang, Madam President.

I heard it. I did hear it. And Councilman Jones would like to be recognized. So at this time, Councilman Jones.

Thank you, Madam President. Just on the last comments from my colleague, Councilman Green, I believe that the Public Property Department has 97 4/2/08 - WHOLE - BILL 080022, etc. two compelling interests at least. One is to look at what best practices are done by the private sector, but never ever relinquish its responsibilities primarily to what's in the best interest of the public and also the employees of the City of Philadelphia. And that is a delicate balancing act, because when you start to get too private sector, they do things for cost savings as opposed to safety sometimes. So I like the balance that currently exists within your department and would encourage you to continue that. Yes, let's look at energy efficiencies, but let's not cut costs to the point where we are more profit driven than we should be. So I like the balance that you maintain. COMMISSIONER SCHLOTTERBECK: Okay.

A couple of things. Has the private real estate market driven increase in inventory of 98 4/2/08 - WHOLE - BILL 080022, etc. property, decrease in inventory of publicly owned/acquired properties? And how has that private market affected it over the last couple of years, the values of properties, the demand? COMMISSIONER SCHLOTTERBECK: I can say that we were a little concerned that the market is getting soft and that we won't have people offering. People are offering above the appraised values. So if you're asking -- we are seeing that happening with our assets, but I'm not sure I understand the second question.

Well, I guess when we dispose of properties, are we -- how has property values' increase over the last couple years affected the demand on City-acquired parcels? COMMISSIONER SCHLOTTERBECK: I don't actually know that I'm the right --

Do you work with the Vacant Property Review Committee? COMMISSIONER SCHLOTTERBECK: Do 99 4/2/08 - WHOLE - BILL 080022, etc. I work with them? Actually, no. I have a person that sits on the Board that attends the meetings and represents me, and I sign off on all the final dispositions of all the properties that are recommended out of that committee.

You also have a requirement to make sure we get an appropriate reimbursement for properties. COMMISSIONER SCHLOTTERBECK: Absolutely.

So I'm saying, is there a market fluctuation by way of value? Are we getting -- COMMISSIONER SCHLOTTERBECK: Well, I think we can see that they're not as high valued anymore because of what's happening across the economy. So, in other words, something that would have been appraised at like, say, 500,000 could come in at 400. That's happening.

So I think -- COMMISSIONER SCHLOTTERBECK: 100 4/2/08 - WHOLE - BILL 080022, etc. But, I mean, in terms of acquiring at sheriff's sale, if you're asking me that, that's not a role that I -- I'm not involved in that part of it.

But as you hold properties and dispose of properties, I'm wondering if there is a fluctuation, but if it's not an appropriate question for your department, that's fine. I'll move to my next one, because I know the timer is on. COMMISSIONER SCHLOTTERBECK: Okay.

My next question would be, you are responsible for the Concourse on South Broad? COMMISSIONER SCHLOTTERBECK: At this point in time, it's contracted through the Center City District and we contribute to the lighting to SEPTA. So the City has a financial obligation, which we are meeting, but it's cared for, if you will, by others.

We do own 101 4/2/08 - WHOLE - BILL 080022, etc. it? COMMISSIONER SCHLOTTERBECK: Yes.

Has there been any plan -- there were a number of plans in prior Administrations, everything from a vendor's concourse to actually renovating it for retail space. Has there been any recent studies on what its ongoing disposition would be, and Part B of that is, aren't the SEPTA stations owned by us? COMMISSIONER SCHLOTTERBECK: Okay. Let me -- the first part of your question is, I just met, I think it was on Monday, with Deputy Mayor Rina Cutler, members of her staff, and Deputy Commissioner Herzins about concourses, what they mean to the whole City, the riders, the public, how we have to do a better job and work together, and she's actually going to start a little small working group. So we're working on how we want to develop and improve the 102 4/2/08 - WHOLE - BILL 080022, etc. overall condition of the concourses. I have a request from Mural Arts. They're coming up on their, I think it's, their 20th anniversary and they're interested in displaying their works down there. I have that on my list of things to do. So I'm interested in working with them. And as far as the SEPTA stations, that's all part of our overall relationship with SEPTA in our lease/leaseback with SEPTA. So, yes, we do own -- (Bell rung.)

And those leases -- and I'm closing -- those leases are coming of age and are expiring and we need to renegotiate with SEPTA. That's my understanding. COMMISSIONER SCHLOTTERBECK: Yes. The Law Department is working on that, yes.

I think this Council might want to be apprised of 103 4/2/08 - WHOLE - BILL 080022, etc. future development of those negotiations, A, and the possible development of the Concourse south of Broad. I've been to Atlanta, their underground and other places like that. I think it's time that we start to look at that as an asset as opposed to a liability, and anything that we can do to encourage development on that, I would be interested in as Chairman of Transportation for Council. COMMISSIONER SCHLOTTERBECK: And, for the record, you should know that Deputy Mayor Rina Cutler is in charge of transportation and utilities, so the response would come from her. I'm basically the owner of the asset, if you will, and I work with her, obviously, but she would be the point person on all negotiations.

Thank you, Madam President. Thank you, Commissioner.

104 4/2/08 - WHOLE - BILL 080022, etc. You're welcome. The Chair recognizes Councilman Green.

Your PowerPoint presentation notes that the -- excuse me. Thank you, Madam Chair. Your PowerPoint presentation notes that the Department's strategic plan includes increase of recycling participation in City-managed buildings. Is there some sort of ordinance or law or Executive Order that currently requires recycling in City buildings? COMMISSIONER SCHLOTTERBECK: Yes.

So I guess I don't understand that phrase "increase in participation" since it's required. COMMISSIONER SCHLOTTERBECK: Basically, the buildings, the privately managed or contracted buildings, do a much better job of recycling. City Hall needs to get a little better at how we're handling our recycling in this building, 105 4/2/08 - WHOLE - BILL 080022, etc. as well as our trash. It's an ongoing problem and concern I have. And then to be perfectly frank, I'm responsible for all police, fire facilities throughout the City, and we do not necessarily recycle in those buildings. So it's in that context that it's my responsibility as the maintenance and the facilities manager. My staff, we have to work with Streets, which we are, to do a better job of recycling in all of our facilities. That's what we're trying to say. We actually started a new program yesterday in the triplex.

Okay. We're required by law to recycle. COMMISSIONER SCHLOTTERBECK: Yes. And we do the best we can, but we need to do a better job, is what I'm saying.

Of the 160, I guess -- my notes say 160 plus. I think you said 140. Whatever the number is. Of those facilities, how many 106 4/2/08 - WHOLE - BILL 080022, etc. currently have recycling programs? COMMISSIONER SCHLOTTERBECK: I would say that the answer is, all of them have a recycling program. I would say that all of them don't necessarily do the best they can recycling. So, in other words, police know in those districts that there are cans earmarked for recycling for their soda can and their papers. They don't necessarily use them. So I have to reeducate -- not me. Streets Department will reeducate, and Public Property will do a better job of making sure that we work with the Police Department to make them comply with the law.

Who can we hold accountable if recycling is not happening in places where it's supposed to happen? COMMISSIONER SCHLOTTERBECK: I guess --

In other words, if it's not happening in a police 107 4/2/08 - WHOLE - BILL 080022, etc. district, if it's not happening -- COMMISSIONER SCHLOTTERBECK: I didn't say it wasn't happening. I just say we're not doing the best job we can.

Okay. But where do we look to try to make sure that the laws regarding recycling in this City are being enforced? COMMISSIONER SCHLOTTERBECK: I would say -- I guess I would say it's a combination of the Streets Commissioner and the Public Property Commissioner, because we each have a role.

Point of information, Madam President.

Yes.

Could you describe how recycling works in this building? Because someone that worked here told me that they believe that we go through this effort to have two trash cans, one for paper, one for other materials. At the end of the day, it all gets dumped into one bag. 108 4/2/08 - WHOLE - BILL 080022, etc. COMMISSIONER SCHLOTTERBECK: Not true.

Well, I've seen it happen. COMMISSIONER SCHLOTTERBECK: Pardon me?

I've seen it happen. COMMISSIONER SCHLOTTERBECK: Well, that's unfortunate, but it is -- I can tell you it's not true, because the Streets Department picks up the trash for City Hall. Their citywide group does it. And we have certain nights where we recycle and certain nights where we do others. Now, keep in mind, there are three distinct custodial operations in City Hall. You have City Council staff, you have First Judicial District contract services, and you have Public Property contract services. We are the largest organization providing these services because we have all the corridors' trash 109 4/2/08 - WHOLE - BILL 080022, etc. removal. We have the more complicated, larger footprint. So if you were to ask me -- if I found out that my contract employees were putting the trash in the regular stream, I would be upset. So, I mean, I will look into it.

You should be upset. COMMISSIONER SCHLOTTERBECK: All right.

This is only a point of information, so I'll go on my next go-around. COMMISSIONER SCHLOTTERBECK: No. I'll look into it.

But I'll just add to this. Are there any municipal buildings that do have two separate trash cans? A lot of people in public buildings have a soda can in their hand or something that should be recycled and it all gets thrown into the one container. 110 4/2/08 - WHOLE - BILL 080022, etc. COMMISSIONER SCHLOTTERBECK: No. 4

What happens to that -- outside the elevators on the northwest corner, there's one trash can. Everything goes in there, from cans to bottles to half-eaten sandwiches. We don't actually recycle other than in our office spaces, correct? COMMISSIONER SCHLOTTERBECK: The triplex just started the single-stream yesterday. So everything that can be recycled, they're doing it. That's our test case, is triplex.

Separate container? COMMISSIONER SCHLOTTERBECK: No; one stream.

Then garbage goes in there, too? COMMISSIONER SCHLOTTERBECK: No, no, no. You don't put garbage in, no. I have actually statistics about the amount of recycling we do in those three 111 4/2/08 - WHOLE - BILL 080022, etc. buildings.

You don't think garbage goes into the trash cans outside the elevators here in this building? COMMISSIONER SCHLOTTERBECK: City Hall, Councilman, I admit, City Hall is a challenge. I have been meeting with and discussed with --

If you don't think garbage goes in there, just stand there for five minutes and see all the empty lunch bags, half-eaten soda -- or the big soda with ice. All trash goes in there. COMMISSIONER SCHLOTTERBECK: All right. Well, obviously we have to do a better job of putting out the container, signing the area so people don't use it for the wrong purpose. And City Hall, we need to reeducate everybody here.

The reason is, I saw even, with our good security, I 112 4/2/08 - WHOLE - BILL 080022, etc. saw a homeless person going through the trash getting some food out of the trash can. COMMISSIONER SCHLOTTERBECK: Okay.

Obviously not all cans and bottles are going into those trash cans. COMMISSIONER SCHLOTTERBECK: Okay.

Thanks, Commissioner. COMMISSIONER SCHLOTTERBECK: You're welcome.

I just want to clarify something on the record.

Yes, ma'am.

Do we have containers in City Hall that specifically specify recyclables? COMMISSIONER SCHLOTTERBECK: (Commissioner indicating.)

113 4/2/08 - WHOLE - BILL 080022, etc. Where? COMMISSIONER SCHLOTTERBECK: Right behind you.

I don't see it.

And everything goes in there. COMMISSIONER SCHLOTTERBECK: No. It's not meant -- again, a reeducation. It's not meant -- it's meant only to be for recycled materials, which up until yesterday in the triplex was newspapers and cans and bottles.

But I think Councilmembers are somewhat, as I am, confused with what we have in the corridors.

Right.

They're trash containers; are they not? They're not for recyclables. COMMISSIONER SCHLOTTERBECK: I will make it my business to look. If it's that color, it's meant to be only 114 4/2/08 - WHOLE - BILL 080022, etc. used for recycling.

Well, I have yet to see one --

It's one trash can. It's a big gray metal thing and you could have -- COMMISSIONER SCHLOTTERBECK: Where is it? Out here?

Every corner as you go out of the building. COMMISSIONER SCHLOTTERBECK: That's a trash can.

That's what I'm talking about. There's no recycling containers in public areas. I think somebody just took that bucket from there and put it there, because there's no 19 recycling effort in this room. See this trash can? Half-eaten hoagie goes in it, along with -- not your testimony, but other testimony. COMMISSIONER SCHLOTTERBECK: Councilman, the half-eaten hoagie is a conscious decision that someone makes to 115 4/2/08 - WHOLE - BILL 080022, etc. throw in there. That container is a recycling container. It's meant to be used in that way.

But I think, Commissioner, what's being said here -- COMMISSIONER SCHLOTTERBECK: We clearly do not have enough in the building. We need to reeducate the tenants.

I don't think we have any.

Any in public areas.

In the public areas. So I think that's where the confusion is. COMMISSIONER SCHLOTTERBECK: All right. We'll take care of it. I'll work with the Streets Commissioner, Councilman, Madam President, and we'll get it straight.

Very well. 116 4/2/08 - WHOLE - BILL 080022, etc. Councilman Green, I know that Councilman Rizzo had a point of information. We have saved your time.

Thank you, Madam President. I think I'm the last man standing, at any rate. I actually have just one more question, and, that is, in the space that we rent out, do we require as part of our leases that our tenants recycle in those spaces? COMMISSIONER SCHLOTTERBECK: Yes.

That's great. COMMISSIONER SCHLOTTERBECK: Yes.

That is all I have, Madam President. Thank you very much.

Wonderful. Thank you. COMMISSIONER SCHLOTTERBECK: 117 4/2/08 - WHOLE - BILL 080022, etc. That language is in the leases.

Commissioner, again, we thank you and your staff. You've been great. Thank you. COMMISSIONER SCHLOTTERBECK: Thank you.

Fleet Management is next. (Witnesses approached witness table.)

Good afternoon. Mr. Muller, we do have a copy of your testimony, if you would like to abbreviate it. I know you've been sitting very patiently for quite some time. We will make certain that a copy is given to the stenographer, and she will transcribe it in full.

Okay.

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

James Muller, 118 4/2/08 - WHOLE - BILL 080022, etc. Fleet Manager for the City of Philadelphia. President Verna and distinguished members of City Council, I am James Muller, Fleet Manager for the City of Philadelphia. Thank you for the opportunity to present testimony in support of the FY 2009 Operating Budget request for the Office of Fleet Management. OFM's FY 2009 General Fund budget request is 63,183,424, including 13,100,000 for the purchase of new equipment, of vehicles. The FY 2009 General Fund budget is approximately $5,400,000 less than FY 2008 estimated obligations. Budgetary variances in FY 2009 are the result of a variety of factors. While Classes 100 and 200 requests of 18,687,192 and 4,208,252, respectively, remained the same as FY08, the Class 300 request of 26,927,980 decreased by 500,000 due to a decrease in fuel usage 119 4/2/08 - WHOLE - BILL 080022, etc. resulting from an upcoming fleet reduction initiative. Class 400 request is 13,300,000, decreased by 4,900,000 for new vehicles because the FY 2008 budget included $4 million moved from out years of the Five-Year Plan. The Office of Fleet Management is coupled to public safety and customer service and promoting a healthy and sustainable environment, three of the Mayor's six key initiatives. OFM is responsible for the acquisition, repair and maintenance and disposal of all City-owned vehicles. OFM's goal is to increase availability and ensure the safety of the fleet. OFM provides the departments with quality service, in the most economical way, while facilitating departments' needs. OFM invests in new technology such as hybrid vehicles, which allow for a cleaner environment for all. Customer service and high-performing government: Research of all new technologies in order to choose 120 4/2/08 - WHOLE - BILL 080022, etc. the most efficient vehicles; provide a vehicle that is safe, clean and reliable; respond to road services within one hour it is reported; maintain all City fuel sites. Our environmental initiatives: OFM will continue to reduce the fleet size while increasing the number of hybrid vehicles. Over the last two years, 50 hybrid vehicles have been placed into service, with another 100 being acquired in 2008. Also, at least 75 sedans will be replaced with more fuel-efficient vehicles. In FY 2009, grant monies will allow us for a pilot program to purchase compressed natural gas-fueled vehicles. Measuring success: Fleet Management measures its success daily with a daily account of downtime of vehicles and the amount of vehicles each department is made available. Organizational success factors, we believe there's three: Qualified 121 4/2/08 - WHOLE - BILL 080022, etc. technicians, new vehicle funding and preventive maintenance. A large portion of OFM's resources are dedicated to buying, repairing and maintaining these vehicles in order to deliver safe, efficient and reliable vehicles at the lowest possible cost. There are three success factors: Quality technicians, sufficient funding for new vehicles and preventive maintenance. Issues and concerns of Fleet Management: The cost of unleaded and diesel fuel continues to rise, and there is little indication it will slow. And hedging the cost per gallon to create opportunities is influenced by so many situations that's difficult to employ. The Office of Fleet Management realizes that the vehicles account for 95 percent of all City services. OFM continues to commit to improve availability, safety and reliability of the City's fleet at the most economical 122 4/2/08 - WHOLE - BILL 080022, etc. cost in delivering City services. Thank you, Madam Chair. At this time, I will take any questions.

Thank you so much. Can you tell us how you're going to be able to reduce your overtime expenditures in FY09 by $515,000? Though I do see that the overtime is $3,127,502, I ask myself, is the overtime being incurred because you do not have ample personnel?

Correct.

How many employees would you be able to hire for -- I'm not saying you're not going to have any overtime at all, but say for two and a half million dollars. How many employees would you be able to hire?

To my left side is Robert Fox, my Administrative Services Director, and Bob is whispering 20 to 24 people that we could hire with that kind 25 of money. 123 4/2/08 - WHOLE - BILL 080022, etc.

And that would include their benefits, et cetera?

No, it would not.

Oh, it wouldn't. I think that's an awful lot of money in overtime.

We're starting to hire some people. Let me let Bob speak.

That would be great. And, Bob, if you could just tell us what your current vacancy rate is, I would appreciate it, and tell us what is the average time that it takes you to fill a vacancy.

Robert Fox, Fleet Management. To answer the question regarding the overtime and the hiring, which is an excellent question, one of our big obstacles has been the competition for the existing technicians 124 4/2/08 - WHOLE - BILL 080022, etc. that are in the field. Right now private industry exceeds us in salary and recently the School District and SEPTA have increased the salaries of their employees over and above ours. We have lost six employees since the start of the year to SEPTA, and that hurts us even when we do have the funding to fill the positions and it forces us to use more overtime. Our vacancy --

I'm sorry. Have you addressed this issue with Personnel?

Yes, we have, and we've increased our pay scale for technicians by two grades, an additional $3,500 per year for the employees, but that still has not made us competitive. The City used to be more competitive because of our benefit package exceeded, but the School District and SEPTA, after all, they fix buses. You know, they don't have near the complicated equipment 125 4/2/08 - WHOLE - BILL 080022, etc. that we have and they don't work the kind of shift work that we work. Our vacancy rate against the increment run was -- right now against the increment run is and against our 7 '09 budget it's 22. 8

So in 9 your '09 budget you will have 22 10 vacancies? 11

Yes. 12

And I 13 think I asked you how long it takes to 14 fill a vacant position.

I would say when you take into consideration the list and interviewing and the background checks, conservatively I'd say three, four months.

Okay. However, I think you have a problem and you have not resolved the problem, and I would suggest you go back to Personnel. Have you been back to them?

Yes. They've been 126 4/2/08 - WHOLE - BILL 080022, etc. very helpful to us and I know they've done more recruiting on our behalf. We've started a program to give our employees a stipend if they're able to recruit employees for us that remain.

It's been that difficult?

Yes, it has. It's a tech market right now.

It has to be resolved and I would suggest you go back to Personnel and try to resolve it. Also, on -4 of your detail, you are showing budget efficiencies, vehicle reduction of $500,000. What are the efficiencies that you have achieved that allows you to save these funds?

We were able to do a fleet reduction in FY04 that reduced 329 vehicles and produced savings of over a million dollars, and we did that strictly by looking at usage, fuel usage. If the 127 4/2/08 - WHOLE - BILL 080022, etc. fuel usage was insufficient, if people were filling up less than a month -- less than one time a month, we considered those vehicles underutilized and we recommended to the Managing Director's Office that those vehicles be retired. And we're going to follow that same program this year and try to eliminate the same amount of vehicles.

Can you tell me why these efficiencies aren't attainable in the Water and Aviation Fund?

That's a good question, and we definitely could pursue those other funds. We've never had a situation in those funds that mirror the General Fund, but it's a good suggestion and I'm sure we'll do it.

We'll look into that.

Thank you. Also, on -4 it reflects 128 4/2/08 - WHOLE - BILL 080022, etc. a saving of $4.5 million vehicle purchasing funding. Why are you reducing the account?

Last year in the FY08, the Budget Bureau moved $4 million from the out years, FY10, '11, '12. They moved it into FY08 to allow us to purchase an additional $5 million worth of equipment for the Fire Department. So while it looks like the budget has been reduced this year, it really has not. It's just that they moved money into FY --

From the later years.

From the out years in the Five-Year Plan.

Well, I hope some of them were for EMS.

Yes. Yes, they are.

Wonderful.

Yes.

Amen. 129 4/2/08 - WHOLE - BILL 080022, etc. What vehicles will you be purchasing in FY09 by department?

We'll be meeting with the departments throughout the spring and we'll get their list from them what they consider the most important. We'll give our suggestions to the Managing Director's Office and we'll have it settled by the end of this fiscal year.

Very well. In your testimony you state that, quote, "The cost of unleaded and diesel fuel continues to rise, and there is little indication it will slow," end of quote. Based on that statement, how do you plan to reduce your gasoline budget by $500,000 in FY09?

We plan to do a fleet reduction to help that cost. Also we're looking at alternative fuels, hybrid vehicles. Also, on our diesel side, to switch over to purchase some 130 4/2/08 - WHOLE - BILL 080022, etc. compressed natural gas vehicles, which was an old -- that old saying, everything old is new again. Compressed natural gas is a lot cheaper than diesel fuel, so we're looking into that.

Okay. The Chair recognizes Councilman Rizzo.

Thank you, Madam Chair. It's interesting, Madam President, you brought that question up. I've encouraged a couple folks that I know to look at Fleet Management as an opportunity, and they called me back and said, Thanks, but no thanks, because the environment outside in the private sector, mechanics that work on cars and dealerships today, it's clean work today. It's not dirty. It's not lots of hydraulics. You see a technician with a laptop now rather than a wrench. And they work on commission. I didn't realize that. Many of these techs that work in the private sector make big, big 131 4/2/08 - WHOLE - BILL 080022, etc. money because they get a piece of the action. They get a commission on whatever the job is. So it's very tough to recruit mechanics, especially some winter morning you're out trying to get a compactor started that's got garbage that was stuck on it overnight. So it's not the greatest environment to work in. But I do want to add something that I discovered when we were talking about the paramedic issue with Commissioner Lloyd Ayers, that you're getting close in this fiscal year to spend $19 million on fuel, and the Commissioner didn't mention the fact that when we respond with ladders and engine companies, that we're sending probably the biggest gas guzzler or diesel guzzler that's in our fleet to make a run.

Yes. That's correct.

And one of the things that I learned -- because 132 4/2/08 - WHOLE - BILL 080022, etc. you're kind of the envy of other big fleets throughout the country. A friend of mine that works in another city is looking to do something that you've already done, and he mentioned the word diesel oxidation catalyst that you've placed on, I understand, 75 of our apparatus that has really made a significant impact. So obviously knowing that this equipment was going to be used for something that it really was not intended to be used for, daily runs to do hospital responses, that the fuel costs were very, very high. And so I'd like you to comment on this program, because I understand you're into some relationship with Public Health, and also talking about this grant that you got for biodiesel fuel. What exactly is biodiesel fuel, and talk about these diesel oxidation catalysts.

We had the Health Department Air Management Division and a 133 4/2/08 - WHOLE - BILL 080022, etc. woman named Allison Riley who has got us a $250,000 grant to purchase biodiesel and also to build a biodiesel facility down at 63rd Street. Also with the funding we received, we're going to replace -- we're going to add a diesel oxidation catalyst on 75 ladders and pumpers combined, and what it does, it lowers the emissions, the hydrocarbons by 70 percent, the carbon monoxide by 70 percent and particulate matter by 13 percent. But on top of that, we also 14 have money to do 170 compactors, which 15 will reduce the emissions, and this was 16 all done through Air Management. 17 Like I said, the other thing 18 we're doing, Councilman, is working with 19 hopefully PGW to obtain funding for a 20 CNG, compressed natural gas, facility so 21 we could do a pilot program with our 22 compactors. So we're looking to try to 23 save some money, because the fuel cost is 24 getting outrageous. 25

Well, that's 134 4/2/08 - WHOLE - BILL 080022, etc. good, because other than just fixing the trucks and keeping them running and -- matter of fact, again, thanks. I understand that you've got some of your people to really hustle and get the five additional medic units on the street.

Yes.

You pulled them from thin air, so --

We have medic 12 units on order, first one to come in in 13 May. 14

But you rehabbed or you got operational five almost immediately.

Correct. Correct.

That's great. Thank you, and thanks for looking down the road on some of these other biodiesel fuels and this diesel oxidation catalyst, because anything you can do to keep the air cleaner and get this equipment that really is being used in a way that it wasn't intended to, to 135 4/2/08 - WHOLE - BILL 080022, etc. squeeze a little more fuel economy out of it and keep it cleaner is really appreciated. Thanks for that foresight.

Thank you very much.

Thanks, Madam Chair.

You're welcome. The Chair recognizes Councilman Green.

Thank you, Madam Chair. I think it's still morning. Good morning. It's afternoon? Good afternoon. I think the Council President touched on the issue of your ability to hire people. I'm just wondering if you're working with any -- if you've considered working with any high schools or other people to try to interest people in this profession, start their training in high school, letting them do 136 4/2/08 - WHOLE - BILL 080022, etc. internships so they can then take the test when they leave high school and come in sort of interested in doing what you need done in your department.

Yes. We presently have a program for high school interns and we hire them through the summer. They go and they work hours a week 10 while they're going to school. And after 11 four years, they become an apprentice, 12 take a test. Matter of fact, our body 13 shop at 11th and Reed, I believe there's 14 like four or five guys there now raising 15 families, buying homes. All started 16 through that program. So, yes, we do 17 have that program. 18

And why 19 can't you use that program for these 20 positions that you're unable to fill?

We are, but I think it's like two or three people that we're hiring.

So two or three interns you get? 137 4/2/08 - WHOLE - BILL 080022, etc.

Yes.

So if we increased the number of interns that you are able to have, would you have the capacity to manage them so that you could have a more predictable --

Yeah. It would help, sure. Yeah. We'd be willing to try it.

Would you please provide a recommendation to that to the Chair so that we can perhaps, not in the immediate term but in the short term, try to address some of your hiring needs?

Yes. And I can tell you what our program is right now, give you a copy of what we do right now with Personnel.

Thank you.

I mean, it's a great program.

Excluding emergency vehicles, so Police and Fire, 138 4/2/08 - WHOLE - BILL 080022, etc. how many vehicles are in the fleet that you'd say are passenger cars, light trucks, SUVs?

About 1,500.

Out of a total of how many?

6,000. 5,900, 6,000.

Of the 6,000, how many are running, on the road?

A good 90 percent.

Ninety percent?

Yes. Police and Fire 24/7. Streets Department has eight hours, plus they have another sanitation shop that opens at night, and they have -- so they're working 16 hours.

So when you say 90 percent, what happens to the other 600 cars?

We are PM'ing some vehicles during -- so various departments, Health, Recreation. I mean, 139 4/2/08 - WHOLE - BILL 080022, etc. you know...

I'm not sure I follow that, but let's focus on the 1,500 vehicles. Of those 1,500 vehicles, how many are used by people who require them because they have to respond to things from home in the evening?

Take-home vehicles are a department and it goes through the Managing Director's Office. You have to submit that list to the Managing Director every month of who in your department are allowed to take vehicles home and why they're allowed to take vehicles home. Fleet, we don't have anything to do with that take-home policy.

Do you know the number?

Not off the top of my head. I would be guessing if I gave you a number. I don't know.

If you could provide that to the Chair. Do you know how many are not 140 4/2/08 - WHOLE - BILL 080022, etc. take-home?

No, I don't.

Okay. So I'm going to come back to the vehicles that people don't take home. PhillyCarShare, how many vehicles when we started the PhillyCarShare program did we get out of our fleet?

Three hundred twenty-nine vehicles.

Three hundred twenty-nine vehicles?

Yes, sir.

And they're primarily used for people who don't need to take a car home?

Reality, they were used for people just to drive back and forth to work. That's what we found.

PhillyCarShare cars?

No. The people whose cars we took away from -- when we 141 4/2/08 - WHOLE - BILL 080022, etc. did the fleet reduction.

Okay. Now what about people -- so you have not implemented PhillyCarShare for people who come to work and then use that car in the course of their daily duties?

Let me let Bob speak on that, because Bob was the one that did the PhillyCarShare.

Councilman, Bob Fox, Fleet Management. PhillyCarShare was instituted for the City for the expressed purpose of providing transportation for employees that needed it about an hour, two hours, two and a half hours a day. Once you get over that amount of time a day, it's more economical to buy. But we had a number of employees in the City that needed a car. (Bell rung.)

There was no question they needed a car. They just didn't need a whole car. They needed half a car. 142 4/2/08 - WHOLE - BILL 080022, etc. And so we had to give them a whole car. By putting PhillyCarShare in, we were able to eliminate those vehicles.

Are you familiar with -- I'm sorry.

You can come back.

I'll come back to this.

Thank you. The Chair recognizes Councilman Kelly.

Thank you, Madam President. Mr. Muller.

How are you?

How are you?

Good.

First of all, I just want to thank you and your efficient staff for any time that I've ever had a problem with cars, that you've taken care of very effectively, 143 4/2/08 - WHOLE - BILL 080022, etc. efficiently and professionally. Your staff does, I think, an excellent, excellent job down there, especially I think Joe Rosado that I have personal contacts with him, and I think he's a credit to your department. He really is.

Thank you. I am a little partial. I think I have a fantastic staff. That's why Fleet is so successful.

And I agree with you. I just want to touch upon something, and I think maybe the President has mentioned this, as well as Councilman Rizzo. It's about how many SUVs we presently have in the fleet, and I would like to know if there's any -- is there any plan to replace these vehicles with more fuel-efficient cars?

Yes. We are hoping that's going to be part of our reduction, yes. We're looking to get more efficient vehicles. 144 4/2/08 - WHOLE - BILL 080022, etc.

Do you have any idea how many SUVs you currently have?

Eight hundred eighty-four total.

And your definition of an SUV, just so we can get it on the record.

It's a four-by-four vehicle, sport utility.

And how many?

Eight hundred eighty-four.

Do you have any idea how many of these 884 would be replaced or would you --

Not at this time.

Okay. Is there any reason why a person would need an SUV?

Well, the Police Department for Traffic Division, they like the SUV because of the four-by-four 145 4/2/08 - WHOLE - BILL 080022, etc. and the availability of a front push bumper so they can actually push cars that are broken down out of the intersections. That's one. Fire Department because of the size of the vehicle, so they can put all this extra equipment that they carry in the back.

So it's safety concerns that --

Yes. Yes. And the mission for the department.

You don't have them broken down by any way, do you, from the Police Department --

I can get it for you. I don't have it here, but we can get it for you.

Could you submit it to the Chair?

Yes.

Okay. That's all I have for you at this time. Thank you, Madam President.

146 4/2/08 - WHOLE - BILL 080022, etc. You're welcome. The Chair recognizes Councilman Green.

Thank you, Madam Chair. I want to challenge something you said, which is that it costs less to buy, maintain and fill a car with gas if a car is going to be used more than, I think you said, an hour and a half a day.

If a vehicle -- if you consider PhillyCarShare to be like Yellow Cab and you know the employee is going to use it every day for about three hours, at the end of the year, the end of three years, you're better off having purchased the car if they're using it that much. It was never intended for that kind of purpose.

So you're saying that PhillyCarShare with a fleet-type rate where we could get something at like 4.90 an hour and for some of their cars 3.90 an hour, so -- 147 4/2/08 - WHOLE - BILL 080022, etc.

Plus mileage.

Plus mileage, but let's just -- we're talking the City of Philadelphia, so people aren't traveling great distances. But let's just say the average cost is, with mileage, six bucks an hour. So it costs less than $18 a day in gas?

Plus parking, facility parking down here. Most of the time the vehicles are parked in a facility, that you have to add that cost in. When all those factors were added in --

But we're paying for parking whether it's a PhillyCarShare car or whether it's a City car.

The direct answer to your question is, yes, it's more economical to purchase the car. Over a five-year period --

How much does it cost per day to have -- 148 4/2/08 - WHOLE - BILL 080022, etc.

Councilman, I think maybe respectfully what you're missing is that we would keep the car -- the car we would purchase, we would keep it more than one year.

I understand that.

So over a five-year period, at that kind of usage, it would be better to purchase.

So --

In one year, of course, it would not, because you'd have the capital cost of that first-year purchase.

Using rough numbers, times 250 is $5,000. That 19 includes gas, insurance. Well, you 20 self-insure anyway, but that includes gas, maintenance on a vehicle. So someone using a car three hours a day, it would be slightly less than that. Call it 4,200, just off the top of my head, to have that person rent a PhillyCarShare 149 4/2/08 - WHOLE - BILL 080022, etc. car for three hours every single day, 4,200 a year. How much does it cost to buy that car?

Right now about $9,000.

Nine thousand dollars is what we pay per car?

Yes, sir.

Really?

Yes, sir. Dodge Cobalt off the state contract -- Chevy Cobalt. I'm sorry.

Well, how many of our passenger vehicles are Chevy Cobalts?