COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON LAW AND GOVERNMENT - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, June 12, 2007 2:10 p.m. - - - PRESENT: COUNCILMAN WILLIAM GREENLEE, CHAIR COUNCILWOMAN CAROL ANN CAMPBELL COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JACK KELLY COUNCILMAN JAMES F. KENNEY COUNCILMAN FRANK RIZZO COUNCILMAN DANIEL SAVAGE BILL 070459 - An ordinance providing for the submission to the qualified electors of the City of Philadelphia of an amendment to the Philadelphia Home Rule Charter creating the office of the Inspector General... RESOLUTION 070474 - Resolution proposing an amendment to the Philadelphia Home Rule Charter to create the office of the Inspector General... - - - 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 afternoon, everybody. This is the Committee on Law and Government. For the record, we have a quorum. We have Councilman Kenney, Vice-Chair of the Committee; Councilwoman Campbell; Councilman Kelly; Councilman Goode; and Councilman Rizzo will be right back. He promised. So we have more than enough for a quorum. If Mr. Boyle, the Clerk of the Committee, could read Bill No. 070459 and Resolution 070474, please.
Ordinance 070459, an ordinance providing for the submission to the qualified electors of the City of Philadelphia of an amendment to the Philadelphia Home Rule Charter creating the office of the Inspector General, as approved by Resolution of the City Council; fixing the date of a special election for such purpose; prescribing the form of ballot questions to be voted on; and authorizing the appropriate 3 6/12/07 - LAW & GOV'T - BILL 070459, ETC. officers to publish notice and to make arrangements for the special election. Resolution 070474, resolution 5 proposing an amendment to the Philadelphia Home Rule Charter to create the office of the Inspector General, and providing for the submission of the amendment to the electors of Philadelphia.
Thank you. We have a number of people to testify. I'd like to suggest first the Administration, Ms. Wilkerson, and then the City Controller's Office. Good afternoon again, Ms. Wilkerson. Could you identify yourself. You know the procedure here.
Good afternoon. My name is Joyce Wilkerson. I'm Chief of Staff to Mayor John Street. I'm here today to offer testimony regarding Resolution 070474 and Bill No. 070459, which, if enacted, would place on the 4 6/12/07 - LAW & GOV'T - BILL 070459, ETC. ballot the question, if approved by the voters, would amend the Home Rule Charter to create an independent office of Inspector General to provide for terms, salary and removal procedure, and to specify the power and duties of the Inspector General. The Administration has general and specific concerns about the proposed change to the Home Rule Charter. First, I want to offer a brief comment. I made the same observations last week. I'll make the same observations later on this week. We have a Charter that was enacted in '51. For 39 years, we didn't make any changes in the Charter. From 2002 to 2007, there have been changes 20 to the Home Rule Charter. A lot of the changes that are proposed are appropriate. I think that it may be time for us to consider a more dramatic change or revisiting of the Home Rule Charter so that the changes are comprehensive and 5 6/12/07 - LAW & GOV'T - BILL 070459, ETC. not piecemeal. The Administration has supported the Inspector General function within the City government. As you know, there is currently an Inspector General in City government created by Executive Order serving in the Mayor's Office and serving at the pleasure of the Mayor. To strengthen that function, the Administration has increased substantially the resources devoted to the Inspector General. There, however, are limitations because the position is created by Executive Order. For example, the current Inspector General does not have the authority to investigate matters outside the administrative and executive branch of government. Activities of City Council, City Commissioners, for instance, are beyond his reach. This Charter change would create a separate official appointed by the Mayor and confirmed by Council who would have authority to investigate throughout the 6 6/12/07 - LAW & GOV'T - BILL 070459, ETC. government and could only be removed for cause. This is a needed change. I, however, urge Council to delay the passage of this amendment to address its substantial shortcomings. The appointment and removal process for the Inspector General as well as the scope of responsibilities for the office must be rationalized with positions already existing in the Home Rule Charter. I will offer just a few examples. The Inspector General under this Charter change would be empowered to investigate criminal and/or serious integrity-related complaints of fraud, corruption and abuse involving City employees or officials and contractors, vendors or consultants doing business with the City and concerning inefficiency and waste within programs and operations of City government. The Inspector General would also be tasked with recommending policies and procedures to 7 6/12/07 - LAW & GOV'T - BILL 070459, ETC. City Council. To effectuate these responsibilities, the Charter amendment gives the Inspector General the ability to issue subpoenas, conduct public hearings and staff the office with limited opportunity for budgetary review. Other entities also have investigatory powers as to some of these areas, along with other powers. For example, Council recently established the Board of Ethics to administer and enforce all provisions of this Charter and ordinances pertaining to ethical matters, which for purposes of this Charter shall include conflicts of interest, financial disclosure, standards of governmental conduct, campaign finance reports, prohibited political activity and such additional matters as Council may from time to time assign. It's not clear where the responsibilities of the Ethics Board end and the Inspector General begin. The same is true with responsibilities for investigation and 8 6/12/07 - LAW & GOV'T - BILL 070459, ETC.
law enforcement assigned to the Law Department under the Charter. The responsibilities assigned to the Inspector General also overlap those of the City Controller who, under the Charter, is tasked with conducting audits of the affairs of any officer, department, board, commission or agency. Like the proposed Inspector General position, the Controller is from time to time to make recommendations to the several officers, departments, boards, commissions or other agencies receiving appropriations from the City for the improved efficiency and economy of their operations involving the expenditure of City funds. Similar areas of overlap exist with the Human Relations Commission, the Police Department and the District Attorney. Because independence and integrity are critical to the operation of the Ethics Board, the Charter provisions with respect to appointment 9 6/12/07 - LAW & GOV'T - BILL 070459, ETC. and removal were structured to assure independence. Provisions also were incorporated to eliminate even the hint of politics. Section 3-806 regarding Post Service and Employment Restrictions was added preventing Board members, directors and counsel from seeking elective office within two years after expiration of a term of service or termination of employment. Some thought should be given to applying the same restrictions or a similar form of restriction to all integrity positions in the Charter. Given the similar charge of these two entities, it may be less confusing for the public if appointment, removal and qualifications for these positions are handled in the same way. It will also provide a more consistent way of interpreting the Charter. Again, I urge you to delay final passage of this proposed Charter amendment. Throughout government at every level, offices of the Inspector 10 6/12/07 - LAW & GOV'T - BILL 070459, ETC. General perform critical functions. I urge Council to consider carefully the difficult approaches and to adopt a Charter amendment that is not just a best practice, but fits with the City's Home Rule scheme.
Thank you, Ms. Wilkerson. Just a couple of questions, and probably other members of the Committee have questions. We got copies of proposed amendments. Are these the Administration's proposals?
No. Those are some -- I'm aware of them. The Law Department worked on them. I think we have, as an Administration, more fundamental concerns about working to align the various places in government where we're going to have investigations conducted. There needs to be some rationale for how those responsibilities are assigned. I think the proposed changes 11 6/12/07 - LAW & GOV'T - BILL 070459, ETC. would clean up some of the more obvious problems, but I think we probably ought to spend more time thinking it through.
When you're saying the proposed changes, what, these amendments that were given --
They're just part of what you might be talking about?
As far as the issue of overlap -- and I'm just being a devil's advocate here. I'm not saying this is necessarily my feeling. What's wrong with another entity also looking at some of the same thing?
I just think at some point it just gets to be a really inefficient way of operating government. One of the ironies is, the Inspector General is supposed to be increasing efficiency in government, and when you 12 6/12/07 - LAW & GOV'T - BILL 070459, ETC. have investigations going on by a number of bodies, you end up spending a lot of time responding to -- and sometimes on the same issue -- to different authorized bodies. The Administration is responding not just to local authorities, but we have federal Inspector Generals that are investigating federal funds. At some point, it would be helpful to have this streamlined. I've seen Inspector Generals operate effectively. I'm thinking of the Housing Authority, for example, that has an Inspector General. They come up with a plan of -- a plan for the entire year of what it is they're going to be looking at. It's something that's negotiated between the Housing Authority and its Inspector General that's also fairly autonomous. It can be a function that serves well, but I think without tailoring it, with having it as broad-ranging as it is in this instance, 13 6/12/07 - LAW & GOV'T - BILL 070459, ETC. you're almost assured of having an inefficient process.
Thank you. Are there other questions? Councilman Goode.
I agree with most of your testimony, although I don't necessarily agree with the conclusion that we can't necessarily move forward today. My particular concern with your testimony is, you talk about not just providing an example of best practices, but making it fit within the Home Rule scheme. Clearly, we can't change the powers and duties that are already within the Home Rule Charter related to those other offices. So, clearly, what we're discussing here is how we not broadly define but more specifically define the 14 6/12/07 - LAW & GOV'T - BILL 070459, ETC. duties and responsibilities of the Inspector General through this legislation, and so we in fact can just more specifically define those powers and duties so that they would not conflict with the other powers and duties within the Charter; is that correct?
You could do that. I mean, that's one approach. I think that at some point we probably need to look at it all, but I think you could more narrowly define these responsibilities and avoid some of the areas of overlap and confusion.
And, in fact, it's usually done in two different ways: Either that ordinance may accompany the other Charter change legislation or that ordinance may in fact come at a later point. So we could in fact amend this legislation that allows for a future ordinance that would specify in detail the powers and the duties of the Inspector General; is that correct? 15 6/12/07 - LAW & GOV'T - BILL 070459, ETC.
Yeah. I think that you probably could clean this up so that -- to address some of the problems. I think some time ought to be spent thinking it through. I was surprised at how many different places in the Charter you end up with overlap. But, yes, I think you could amend this legislation and have it simply empower Council to enact other legislation. I think that's what was done with some of the ethics legislation. It was a broad power created within the Charter, and that power was implemented through legislation of City Council.
So if that amendment was offered today and agreed upon by the sponsor, then most of the Administration's objections would be resolved?
The amendment would simply say that Council 16 6/12/07 - LAW & GOV'T - BILL 070459, ETC. has the authority to detail the powers and duties of the Inspector General's office through future ordinance.
Well, I think it would have to be consistent with the authorization in the Charter. I guess my concern is that in the Charter, it's set out so broadly that I don't know that you could then turn around and limit it through legislation, but the lawyers would have to opine on that.
I'd rather -- I don't want to opine on that. If you have a really -- if you have a lot of specific authorization within the Charter that talks about investigating anybody doing reports, I don't know that you can then turn around and limit it specifically through ordinance.
Well, if the ordinance and legislation which creates the Charter amendment also says that 17 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Council has the power to detail those powers and duties, then basically as it's becoming effective, it's becoming effective with the understanding that Council has the power to amend it.
Okay. The only other question related to this, particularly since the Administration in some way seems to be looking toward a delay, it is not the position of this Administration that they would be looking to appoint an Inspector General if this legislation were approved?
If the legislation were approved, I don't recall a provision that gives an implementation date. If it's an implementation date that falls during the term of this Mayor, we would appoint an Inspector General. I'm not looking for delay as much as I am -- as much as the Administration is a piece of legislation 18 6/12/07 - LAW & GOV'T - BILL 070459, ETC. that actually works that has appointment and removal provisions that are consistent within the Charter and that also doesn't create overlap with other departments in the Charter. I think that it is an effective office to have within government. I have seen it -- I have used Inspector Generals to have areas investigated, to get guidance on some of the systems within government. So I think there's a lot that can be gained. I think it's probably worthwhile to spend time looking at the kinds of things -- the kinds of benefits that an Inspector General can bring to government. It's not all investigating for fraud and corruption. What I found most advantageous is where you just want a second set of eyes to take a look at what's happened, how did we get to this point, what kind of practices and procedures do we need to have in place in order to avoid those kinds of problems. That's what the big 19 6/12/07 - LAW & GOV'T - BILL 070459, ETC. benefit of an Inspector General. It's not somebody else running around investigating, issuing subpoenas.
As I say, I agree with most of your testimony, and so it's my assumption that the Administration and as a representative of the Administration, that you have no 10 problem with Council deciding that it would try to in some later point amend this legislation to further detail the powers and duties of the Inspector General and setting an implementation date into the next Administration?
As long as it's a function that fits within the whole system of government, we would support that.
Ms. Wilkerson, are you aware of any City employee, from the legislative branch to 20 6/12/07 - LAW & GOV'T - BILL 070459, ETC. the executive branch, that's exempt from being investigated by the Inspector General?
Under the current -- currently, the Executive Order just applies to the executive branch of government. The Inspector General that we have has no authority to investigate Council, the other elected officials within government. It's simply the people who report to the Mayor.
I think that as long as it's an appointee of the Mayor, I think that's a good thing. I think if it's a Charter-created position, it is appropriate to have somebody authorized to investigate throughout the entire government. I think that's appropriate.
I'm asking you. I guess maybe you're not the right person to ask the question to, and I'm not sure who to. In this pending 21 6/12/07 - LAW & GOV'T - BILL 070459, ETC. legislation, would it just be the executive branch of government or would it include all employees that receive a paycheck from the City of Philadelphia?
It would apply to everyone, every department throughout government, not just the executive branch.
Thank you, Councilman. Any other questions of this witness? (No response.)
The next witnesses or witness is Harvey Rice, City Controller's Office, and after that will be a representative of the Committee of Seventy. Good afternoon, Mr. Rice.
Please identify yourself for the record and proceed.
I'm Harvey Rice, First Deputy City Controller, Office of City Controller. The City Controller couldn't be here today. He asked me to present and read his letter. He's accepting an award from a national organization for our police facilities report and audit. It is my understanding that a proposed resolution and corresponding ordinance to amend the Philadelphia Home Rule Charter to make certain changes to the City's Office of the Inspector General will be considered today at the City Council's Law and Government Committee. As I am sure you realize, any proposed change to the Home Rule Charter should always be approached with the utmost caution and should only occur if and when the change or changes in 23 6/12/07 - LAW & GOV'T - BILL 070459, ETC. question have been carefully and fully examined. As currently designed, the Office of the Inspector General already plays a crucial role investigating fraud and abuse in municipal government. While I suspect that the intent of the proposed amendment to the Home Rule Charter, hereinafter referred to as "amendment," is aimed at making the Office of the Inspector General more independent from the appointing Mayor, it fails to include specific detailed provisions which would guarantee certain protections and ensure the very independence the ordinance seeks to create. In addition to not ensuring the hope for mayoral independence, the proposed amendment also does not provide sufficient specificity of definitions in a number of crucial areas. The amendment states that the Inspector General may be removed by the Mayor only for cause, yet the term "cause" is not clearly defined, 24 6/12/07 - LAW & GOV'T - BILL 070459, ETC. nor is it outlined in the proposed amendment. While the ordinance states that the Mayor shall appoint the Inspector General, there is no timeline requirement outlined in the amendment for the actual appointment, nor is there any stated requirement that the position and office must be fully funded. The goal of an independent Inspector General is not fully achieved when the Inspector General serves at the pleasure of the Mayor and is dependent upon the Mayor for his or her funding. Also, whereas there are no 17 specific qualifications outlined for the City's Inspector General in the amendment in question, all federal Inspector Generals are required to possess certain qualification as outlined in the Inspector General Act of 1978. Additionally, the amendment, Section K, calls for the Inspector General to appoint an unspecified number 25 6/12/07 - LAW & GOV'T - BILL 070459, ETC. of staff, with no guidelines for compensation, as well as no specific job descriptions and required qualifications for each staff position. All key staff positions in all offices of federal Inspector Generals are clearly defined in the law. In the area of hiring and compensation, there is no mention of existing civil service rules under regulations which govern the hiring, placement, promotion and compensation for the overwhelming majority of personnel employed by the City of Philadelphia. The amendment would also grant a mayoral appointed official as opposed to an elected official the power to appoint an unspecified number of employees and determine each employee's compensation, without approval of any other City official or office. This level of empowerment of an appointed official would be a radical departure from existing standards and procedures. 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Members of City Council and other City elected officials do not have such unlimited power to hire and determine compensation primarily because the potential for abuse and related risk concerning patronage.
In the case of the City Controller's Office and newly created Board of Ethics, the City Home Rule Charter ensures that each entity have adequate funding resources to perform their respective independent Charter-mandated duties by providing a process whereby each entity can petition the Court of Common Pleas for a mandamus action to compel City Council to provide sufficient and adequate funding. In the Home Rule Charter, Section 2-300 with the annual operating budget ordinance is included this language: In every annual operating budget ordinance regarding the City Controller, the amount appropriated to the auditing department shall be adequate 27 6/12/07 - LAW & GOV'T - BILL 070459, ETC. to enable the City Controller to perform the duties of his office and of the auditing department. Should the Council fail to make an adequate appropriation to the auditing department, the City Controller may petition any Court of Common Pleas of Philadelphia County for a mandamus to the Council to perform its duties under this section. "Regarding the Board of Ethics, for the first two fiscal years immediately following the elective date of this subsection, at least one million; and for all subsequent fiscal years, an amount adequate to enable the Board to perform the functions assigned to it by this Charter, shall be appropriated for the work of the Board of Ethics. " 28 6/12/07 - LAW & GOV'T - BILL 070459, ETC. The amendment as currently drafted fails to provide any possibility of mandamus action for funding from City Council, should the appointing Mayor and/or City Council wish to suspend funding for the Office of the Inspector General, thus severely hampering any independent ability to function. Additionally, whereas federal departmental Inspector Generals are all required to submit two semi-annual reports each year, there is no provision in the proposed amendment for the City Inspector General to file any such reports over any stated time period. In the federal Inspector General's Act, each Inspector General is required to submit a semi-annual report to the President, Congress and department head outlining their activities, investigations, open matters and recommendations for the preceding six-month period. The City Inspector General should also be mandated to report his or her actions to the 29 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Mayor, City Council and to the public to ensure greater transparency and accountability. Should the City Inspector General find criminal wrongdoing in the course of his or her investigation, there is no provision in the proposed amendment for reference of its findings to the appropriate law enforcement entity for prosecution, as in the case of the Philadelphia District Attorney's Office. Both the federal and Pennsylvania Inspector Generals are required to notify the appropriate law enforcement and/or legal authority of any criminal wrongdoing it uncovers. Additionally, unlike the federal statute, the Inspector General Act of 1978, which provides for oversight of all federal departmental Inspector Generals, there is no such oversight provision in the proposed amendment as currently drafted. Under the federal statute, an Integrity Committee exists 30 6/12/07 - LAW & GOV'T - BILL 070459, ETC. for oversight purposes, which consists of an officer of the FBI, the Special Counsel of the Office of Special Counsel, the Director of the Office of Government Ethics, three or more Inspector Generals from other federal departments, a representative from the President's Council on Integrity and Efficiency, as well as the Executive Council on Integrity and Efficiency. This guarantees that the Inspector General is conducting him or herself in a professional and legal manner and does not overstep its duties, responsibilities and authority. The resolution and the corresponding amendment also failed to outline clearly defined standards and procedures for conducting an investigation.
There is no mention of any internal procedures for oversight, supervision and quality control measures to ensure the integrity and legal durability of an investigation and any 31 6/12/07 - LAW & GOV'T - BILL 070459, ETC. and all evidence gathered. , PICA, the Pennsylvania Intergovernmental Cooperation Authority, the respective Executive Director, Board members and employees of PICA are prohibited from seeking political office for one year after employment and their Board service. There is no such prohibition in the amendment. Furthermore, Commonwealth statutes in the Philadelphia Home Rule Charter establish broad duties and functions for the Office of City Controller for financial oversight, supervision and control of all departments of the City government and of all other departments which are paid out of the City treasury. The proposed duties and powers outlined in the ordinance for the Inspector General would duplicate and cause substantial conflict with the existing state and local law as 32 6/12/07 - LAW & GOV'T - BILL 070459, ETC. it regards to mandated duties and responsibilities of the Office of City Controller. The amendment could also effectively create a situation where an appointed official would have greater oversight powers than a duly elected official, while at the same time duplicating the duties and responsibilities of the independently elected City Controller, all while causing a considerable amount of confusion and possible chaos. I would suggest the following recommendations to achieve the desired goal of creating a truly independent and effective Office of Inspector General, while eliminating any potential conflict with the existing provisions of the Home Rule Charter which govern and dictates the duties and responsibilities of the Office of City Controller: One, a comprehensive review of the proposed drafted resolution be 33 6/12/07 - LAW & GOV'T - BILL 070459, ETC. conducted to provide detailed definitions of all terms; a specific timeline for the appointment by the Mayor of the Inspector General; a list of qualifications for Inspector General, plus key staff and other staff within the office; an itemized list of all staff positions and corresponding guidelines; a provision for an independent oversight over the Inspector General; accountability clause should be added to the amendment to assure appropriate jurisdictional and oversight; a defined mechanism for funding for the Office of Inspector General if it should be cut by the Mayor or City Council; examination and analysis of existing civil service rules and regulations so that the positions in the Inspector General's Office coincide; the amendment should include a detailed list of reasons for the removal of an Inspector General by the Mayor; a provision which requires minimum of one annual report to both the Mayor and City 34 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Council; steps and procedures for conducting investigations; outline the necessary steps for involving any and all law enforcement agency notification; a one-year prohibition on the Inspector General and/or his or her key management personnel seeking elective office; and a third examination of all current and relevant Commonwealth statutes and the Philadelphia Home Rule Charter. The Office of the Inspector General plays an important role in the function of City government. In weeding out fraud, abuse and possible corruption, it works to ensure an open and honest municipal government in Philadelphia. While we need to strengthen the Inspector General's Office and provide it with the necessary tools to perform its duties, the proposed amendment, while well-intentioned, fails to address concerns which I have raised. If the amendment comes out of the Law and Government Committee as drafted, I 35 6/12/07 - LAW & GOV'T - BILL 070459, ETC. believe the objective which this Committee seeks will in the long run be unattainable.
If the goal is to provide additional powers to the Inspector General to assure its effective independence, we must carefully draft legislation that will ensure the independence, while safeguarding the integrity and strength of the Philadelphia Home Rule Charter and existing state and local statute governing the oversight jurisdiction and the independent authority elected Controller. Thank you for taking the time to consider the concerns and recommendations I have presented to you and members of City Council's Law and Government Committee. Any questions?
Thank you, Mr. Rice. Just a couple things, and some 36 6/12/07 - LAW & GOV'T - BILL 070459, ETC. of the Committee members may have questions, too. In the Controller's letter it says early on on , it says, "The goal of an independent Inspector General is not fully achieved when the Inspector General serves at the pleasure of the Mayor and is dependent upon the Mayor for his or her funding." But in this proposed legislation, City Council has a part in this, too, as far as approval, and obviously the suggestion of funding comes through City Council. What other entity should be involved? You may not know this. But if it's not the Mayor and City Council that gets involved in this, who does, in setting this up?
Well, one thing that could be established is that a committee be formed which would then -- and that committee could consist of the President of the Bar Association, the District Attorney, President Judge of Common Pleas Court and others, someone from the 37 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Committee of Seventy, who would then recommend three names to the Mayor, and the Mayor could choose from one of those three and then present that to City Council for their advice and consent.
By the way, if I could digress for a second. I'm sorry. I didn't recognize that Councilman Savage is here, as is Councilman Rizzo. Sorry about that. Do you know, the suggestions you made, is that something that other entities do, either municipalities or states in having their Inspector General appointed?
I'm not sure if it's the federal Inspector General, but I believe that the Independent Counsel is appointed by the judiciary, because they oversee the executive branch or the legislative branch. So I think maybe Council could look to something along those lines.
Point of 38 6/12/07 - LAW & GOV'T - BILL 070459, ETC. information.
He asked could you repeat your answer to the last question.
I'm not sure exactly. I think the federal Inspector Generals are appointed by the President --
Particularly I was thinking of municipalities, because obviously that's what we are, but I was willing to go a little broader, but I'm particularly thinking of what cities have them.
I'm not sure what -- how they all appoint their Inspector Generals. I don't think there's just one 39 6/12/07 - LAW & GOV'T - BILL 070459, ETC. cookie-cut format. What I will tell you that --
I believe the question was, are you aware of any other municipalities that do it the way you suggest it be done.
I have several questions, but that was a point of information. Councilman Rizzo.
Councilman Rizzo. 40 6/12/07 - LAW & GOV'T - BILL 070459, ETC.
This is just a short one. Could you tell us your office's policy on making Council aware or the public aware of cases involving fraud or in cases that lead to termination or indictment or whatever? What is your office's policy on making the public and Council aware of your successes or lack of?
Our office policy is, every report that we issue, City Council gets a copy of our report. If we find criminal wrongdoing, we will send that to the District Attorney's Office for prosecution. Such as if we found in a residency case that there was insurance fraud, then we would send that over to -- we would report that to the District Attorney's Office, and then when we release the residency case to City Council and the public, that would be part of the case. That's just an example. But everything that the office 41 6/12/07 - LAW & GOV'T - BILL 070459, ETC. completes, Council gets a copy of. I think it's actually even prior before we release it.
Is there an arrangement or is there any working relationship with the Inspector General? You heard the Chief of Staff talking about the problem with having overlapping investigations and progress, which we all know is not a good thing. Most of the cases that I believe have made the media at least have been worked from the Inspector General's Office. How aggressive is the Controller's Office on issues like you just described, residency and a myriad of potential violations that need to be addressed?
When they are reported to us, we investigate fully. I think a high profile one was the Deputy -- I forget the exact title -- in the Mayor's Office of Information Services which we found. And we have worked at some point with the Inspector 42 6/12/07 - LAW & GOV'T - BILL 070459, ETC. General's Office so that we weren't duplicating. When we had our Fraud Director, she was in more contact with the Inspector General's Office on issues that she was looking at so that we wouldn't run into each other.
Thank you. Thank you, Mr. Chairman. Thank you, Councilman Goode.
Thank you, Mr. Chairman. Mr. Rice, thank you for your testimony. I actually did agree with a lot of it. One question -- and I will probably return to a bunch of questions I asked the Mayor's Chief of Staff. The first question is, throughout your testimony you refer to the term the "amendment" and speak about what the amendment says and what the amendment should say. Which amendment are you 43 6/12/07 - LAW & GOV'T - BILL 070459, ETC. referring to?
The proposed resolution ordinance that will be the amendment to the Home Rule Charter.
So you're actually referring to the actual amendment to the Home Rule Charter?
And you would expect that the amendment to the Home Rule Charter would actually provide that much detail?
Well, we raised various concerns that we think should be considered in compiling.
But you are aware or you are not aware that the actual Charter provision would not be that detailed?
The way it is normally done is that there is a bill 24 setting the date of the election and proposing the question. There is a 44 6/12/07 - LAW & GOV'T - BILL 070459, ETC. resolution which actually contains the actual amendment to the Home Rule Charter. There is sometimes another bill 5 that then provides the detail that would go within The Philadelphia Code.
And/or the legislation will call for future ordinances that might provide further detail. So when you refer to the amendment, were you referring to the amendment to the Home Rule Charter or the amendment to The Philadelphia Code?
So you do realize, as previously discussed within this hearing, that Council still can retain the authority to offer amendments through future ordinance? 45 6/12/07 - LAW & GOV'T - BILL 070459, ETC.
Well, I think you have that right. I would urge Council, though, that whatever is being put forth to the citizens of Philadelphia when they do vote on it, that all these issues are addressed, so going to the bill for The Philadelphia Code to the corresponding amendment --
Mr. Rice, I'm going to stop you, because at first you said the amendment should be to the Home Rule Charter, then you said that the amendment should be to The Philadelphia Code. Now you're saying the amendment should be to the Home Rule Charter, because, in essence, you're asking it to be put to the voters, which means that we should put everything you asked to be detailed in 75 words?
Councilman, maybe I misunderstood you. I thought you said that there would be a corresponding law in The Philadelphia Code that would be corresponding to the amendment of the 46 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Charter, which would outline what -- that's all I'm asking for.
Well, then we're asking that the corresponding bill in The Philadelphia Code to the amendment of the Charter consider these options, these concerns.
And I believe that they should and I believe that they can, and if Council chooses, this Committee in particular, chooses to amend the legislation before us to say that Council shall have the power by ordinance to further detail the powers and duties of the Inspector General in a manner not inconsistent with the provisions of the section, you have no 21 problem with that?
The only concern I would have is that if we leave it too vague and --
It's 47 6/12/07 - LAW & GOV'T - BILL 070459, ETC. going --
Mr. Rice, I'm going to be very specific with you so we don't keep going there. The Charter is going to remain general. It's not going to contain the type of specificity, the detail that you want. Furthermore, if you're going to get into a discussion of what the voters will or will not approve, the voters will approve a question that has 75 words. That's not going to change.
That's not going to change based upon any bill that we pass or when we pass it.
I totally agree with that. As long as those words go to the -- whatever you put in the corresponding bill -- that doesn't have to be on the ballot, but when they vote on that, that whatever that corresponding 48 6/12/07 - LAW & GOV'T - BILL 070459, ETC. code --
Seventy-five words are going to read the same either way.
Councilman, I agree with you. I just want to make sure that when they vote yes or no, that whatever the outcome of the vote is, that all the concerns that the Controller has proposed today are thought by City Council and when they consider the Code bill that will coincide with the amendment. We're not asking that all of this be put on the exact ballot, but when they vote on it, that these concerns are actually what will take place if that vote should succeed.
I'm a little bit confused now, because you're in a public hearing where you're presenting the Controller's concerns. The Committee is considering the public's concerns. The Committee will consider amending the legislation to say that we will, by 49 6/12/07 - LAW & GOV'T - BILL 070459, ETC. future ordinance, consider those concerns. What more do you want?
If that's the way you need to go before it gets put on, we totally agree with that, before it gets put on the Charter.
I guess just to further define that, you're saying, as Councilman Goode explained, as long as that wording that Councilman Goode talked about, the Controller -- and with the understanding that those concerns -- maybe not every single word, but the concerns of the Controller would be taken into consideration, you're okay with that? Is that what you said? I'm just trying to be clear, too.
Well, I'm not trying to repeat what Councilman Goode said, and if I say this wrong, Councilman, interrupt me, please. 50 6/12/07 - LAW & GOV'T - BILL 070459, ETC. But he said that there will be a bill subsequently submitted, correct, that addresses at least some of those concerns, maybe not every single one?
Takes into consideration, thank you. If that's the case, is the Controller's Office supportive then of the --
So are you saying that to consider the Controller's proposals, that you would make amendments to your bill and then vote it out of Committee and then go to the full Council and two-thirds and then it goes on the ballot?
We would amend the resolution. The resolution 25 would read, Council shall have the power, 51 6/12/07 - LAW & GOV'T - BILL 070459, ETC. by ordinance, to further detail the powers and duties of the Inspector General in a manner not inconsistent with the provisions of this section. The provisions of the section 7 would stay the same unless changed by Council. The matter will be voted on by Council and, if approved by Council, would go to the voters. Regardless of when the voters approve it, Council can at some later point further detail, by ordinance, the powers and duties of the Inspector General and take into full consideration all the concerns raised by the City Controller.
But if that occurred, couldn't then Council, if it was a different Council or a different IG, then decide to take away certain powers or certain duties or responsibilities and, thus, infringe upon the very independence that Council is trying to --
It read in a 52 6/12/07 - LAW & GOV'T - BILL 070459, ETC. manner not inconsistent with the provisions of this section. We can't take away. We can detail.
I would have to discuss it with the Controller and then he can give you a call or we can get back to you on that.
Actually, we're not going to let the Controller write the bill.
We will take into full consideration his concerns as we draft the future legislation.
Okay. Thank you. Any other questions from members of the Committee? 53 6/12/07 - LAW & GOV'T - BILL 070459, ETC. (No response.)
The next witness, Ellen Kaplan, the Committee of Seventy. Good afternoon.
I think we have copies of your testimony, but if you could state your name for the record and proceed, please.
For the record, my name is Ellen Mattleman Kaplan and I am the Vice-President and Policy Director of the Committee of Seventy. Thank you so much for allowing us to testify today. We greatly appreciate it. And as you know, the Committee of Seventy was established over 100 years ago and we were involved in the initial effort to create the Home Rule Charter and have been involved in every 54 6/12/07 - LAW & GOV'T - BILL 070459, ETC. effort to amend the Charter since that time. I want to make clear that the Committee of Seventy believes that creating a permanent and independent Office of the Inspector General is appropriate for a Charter amendment, and we're here today because it fits within our organizational mission to promote greater accountability and transparency in local government. And that's why we're pleased to testify today, and we commend Councilwoman Campbell for taking the initiative in introducing this legislation. What concerns the Committee of Seventy is not the importance of the Office of the Inspector General. We think that it is a very important office and, again, something that should be made a permanent part of City government by placing it within the Home Rule Charter, but rather the interrelationship between the office and that of the Mayor. As you 55 6/12/07 - LAW & GOV'T - BILL 070459, ETC. know, Philadelphia's Inspector General is not only appointed by but reports directly to the Mayor, and we believe that it is very important that the greatest possible distance should be placed between the Mayor and the person who is charged with routing out municipal waste and fraud. No clearer example of this was reported in Chicago just under two weeks ago. You may have read that a federal judge approved a $12 million settlement to compensate victims of politically based personnel decisions by Mayor Richard Daly's Administration. One of the conditions of the settlement was that Mayor Daly issue an Executive Order banning political hiring. And whose job is it to investigate alleged violations of that but that city's Inspector General. And when the federal judge talked about the need for adequate funding so the Inspector General could do that job, he pointed to the importance of 56 6/12/07 - LAW & GOV'T - BILL 070459, ETC. having independence between the Inspector General and the Mayor's Office. So we think that it's very important that our Inspector General have that same independence. Now, it was mentioned earlier the question of a mayoral appointment and what do other cities do. Again, we're not suggesting that the Mayor not be able to appoint the Inspector General going forward, along, of course, with the approval of City Council as in Councilwoman Campbell's proposed amendment, but let me just say that other cities do do it differently, just because you asked. Just, for example, in Miami, Dade County, the Inspector General used to be selected by that county's Commission on Ethics and Public Trust, and it was then decided by that city's legislative body that that wasn't enough to ensure the independence of the Inspector General, and since March of 2005, the Inspector General in Miami, 57 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Dade County has been chosen by a committee that's comprised of the State Attorney and Public Defender of the 11th Judicial Circuit for the county, the Chair of the county's Commission of Ethics and Public Trust, which again is their version of our Ethics Board, the President of the local Police Chief's Association and a special agent in charge of the Miami Field Office of the Florida Department of Law Enforcement. And, again, I'm not suggesting that we have a similar kind of selection process, but simply because the question was asked earlier what do other cities do, most cities do have a mayoral appointment, with the input of the legislative bodies to choose the Inspector General, but there are other ways of doing it.
Let me just say that the Committee of Seventy does believe that there are certain ways in which the independence and the effectiveness of the 58 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Office of the Inspector General should be strengthened. And to Councilman Goode's point, I think it is true that we need to pay careful attention to what belongs in a Charter amendment and what belongs in a code, because I don't think we want to have pages and pages of our Home Rule Charter devoted to the Inspector General or to any other office. For one thing, I think it makes good sense to appoint an Inspector General whose professional experience and deep knowledge base qualifies him or her to perform the duties of that office. That indeed would be consistent with the mandate in the Charter for other boards and commissions, including the City Planning Commission, which the voters approved just this past May, that the people who are appointed to that body should have their credentials relevant to the work of their respective organizations. And, again, we can look to Miami, Dade County that requires its 59 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Inspector General to have at least ten years' experience in one or more of the following: A federal, state or local law enforcement officer or government attorney; a federal or state court judge; a position with progressive supervisory experience in an investigative public agency similar to that of Inspector General's office. In New Orleans, their Inspector General must have at least five years' experience as a federal law enforcement officer; federal or state judge; senior level auditor; Inspector General; or a lawyer with experience in investigating fraud, corruption or abuse of power. And, by the way, this was also brought up earlier. No one who has been an elected or appointed official in New Orleans or in the state government in the past two years is eligible for the post of an Inspector General. We also would suggest that before removal for cause of an Inspector 60 6/12/07 - LAW & GOV'T - BILL 070459, ETC. General, that it shouldn't just be a hearing if the Inspector General requests a hearing. We'd prefer a more stringent test that applies to members of the City's Board of Ethics, which is removal for cause requires concurrence of two-thirds of Councilmembers, irrespective of whether there's been any request for a hearing by the person whose removal is sought. The Council amendment should also provide as much clarity as is possible and is appropriate for inclusion within the City Charter on the division of responsibilities between the Board of Ethics, the City Controller and the Inspector General. I'm not going to talk a lot about that, because we've heard a lot of testimony about that today, but, again, I think it ought to be clear what the Inspector General does, what the City Controller does and what the Board of Ethics does. As with the Charter amendment 61 6/12/07 - LAW & GOV'T - BILL 070459, ETC. creating the Board of Ethics, we recommend that there be a provision requiring full cooperation by all departments, offices, boards and commissions and their respective heads with the Inspector General. While that may be self-evident to some people, but we believe, again, like in the Board of Ethics amendment, that there ought to be specific language to this effect. Finally, people within City government who report information to the Inspector General must be completely protected against retaliation. Now, as we all know, whistle-blower protections are now accepted provisions in federal, state and local laws. In Baltimore, the Executive Order that creates the Inspector General's position prohibits any retaliation or threats of retaliation against any person for complaining to, submitting information to or cooperating with the Inspector General in any way. In Chicago, there is a penalty 62 6/12/07 - LAW & GOV'T - BILL 070459, ETC.
of between $300 and $500 for any person who violates their prohibition against any retaliation from people, again, complaining to or cooperating with or assisting that city's Inspector General. Again, let me be clear that we do fully support the intent of the proposed amendment to create and permanently embed in the City Charter the Office of an Inspector General and we would be happy to provide Councilwoman Campbell and this Committee with any of the research that we have about best practices in other cities, what other municipalities do with respect to their Office of Inspector General. And I just wanted to say something about a letter that we did send yesterday to President Verna with copies to other members of City Council, and that has to do with our growing concern about the proliferation of Charter amendments. As you know, there were eight proposed Charter amendments on the 63 6/12/07 - LAW & GOV'T - BILL 070459, ETC. May ballot, and of the last ballot questions have been proposed constitutional amendments. I don't have to tell anybody in this room that the City Charter is the basic governing document of the City of Philadelphia that defines the organization, the powers, functions and essential procedures of the City. Our concern is that there appears to be a growing trend to put items on the ballot that, in our view, are not appropriate for a Charter amendment. And let me just bring up one that just happened in May having to do with removing the troops from Iraq. Irrespective of whether anybody in this room or in the City believes that the troops should be removed from Iraq in 2007, our concern is putting it in the City Charter has no effect on what the federal government is going to do in that regard. There are other ways, we believe, to express the sentiments of the 64 6/12/07 - LAW & GOV'T - BILL 070459, ETC. citizens of Philadelphia. There are Executive Orders, City ordinances, City Council resolution, and we're really concerned that we have a growing number of City Charter amendments on the ballot. And, as you know, the Committee of Seventy does have volunteers that work all over the City on election day to monitor the polls, and what we heard repeatedly from voters was, Look at the ballot questions, there's so many of them, what do they mean, and I think that we really do need to be concerned about voter fatigue. They look at such a long ballot question. We don't want to turn them away from the polls. We want them to vote, and we particularly want them to vote on amendments to the City's basic governing document. So the Committee of Seventy respectfully asks that this Council, in reviewing issues that they are proposing for the Home Rule Charter, ask that whether the proposed amendment is either 65 6/12/07 - LAW & GOV'T - BILL 070459, ETC. required under the law to effect the proposed change or otherwise necessary or appropriate to achieve an effective and enduring change to the organization, powers, functions and essential procedures of City government. Thank you very much again for allowing the Committee of Seventy to testify today.
We went through a lot of conversation here in Council about the process when we want to put something before the voters that it's required by law to be treated like an amendment to the City Charter. It wasn't clear to me what you were trying to communicate. That you don't want to see so many ballot questions or the process of amending the City Charter to get it on the ballot?
What I'm trying to 66 6/12/07 - LAW & GOV'T - BILL 070459, ETC. say -- and I'm sorry that I wasn't clear --
Maybe I just didn't understand. Everybody else might have understood.
What we're trying to say is that we believe that there are amendments that have been proposed to the City Charter that are perhaps not appropriate for the City Charter, which is the basic governing document. For example, the example that I used is with regard to the war in Iraq, which doesn't have to do with municipal governance, that perhaps if Council wanted to state its views, the views of Philadelphia, perhaps that would have been more appropriate for a Council resolution than putting it to the voters by way of a proposed amendment to the Home Rule Charter. Another issue had to do with voters' feelings about real estate tax assessments. Again, it is perhaps 67 6/12/07 - LAW & GOV'T - BILL 070459, ETC. helpful to know what the voters think, but that, in our view, was not a question that belonged in the City Charter.
I think we'd like to do that, but the only mechanism to get it there is the process that we use. Matter of fact, we even asked, short of paying for a poll on particular issues, that there is no other mechanism to get the question on the ballot other than the way we do it.
Maybe we need to have an amendment to the Charter to change the way we do it.
We might have more questions on the ballot then. I don't know. Along those same lines, Ms. Kaplan, just so I'm clear, on this particular issue that we're talking about 68 6/12/07 - LAW & GOV'T - BILL 070459, ETC. with the Inspector General, the Committee of Seventy doesn't deny a Charter change is really the only way to do it, right? So you're not disputing the issue, this particular issue, as being appropriate --
No. This particular issue, the creation of a permanent Office of the Inspector General, is entirely appropriate for a Charter amendment.
All right. Just so I'm clear on that. And also to be clear, you raise some question -- I mean, what is the Committee of Seventy's position on this bill and resolution as of now? Do you have suggested amendments?
Yes. The Committee of Seventy supports placing on the ballot the question of Philadelphia creating a permanent Office of the Inspector General. Like other people today, we think that there are a number of improvements to be made. Whether it 69 6/12/07 - LAW & GOV'T - BILL 070459, ETC. happens in the Code, how that happens, that's what this body is all about, but what we're saying is, we think there needs to be things that are placed in the amendment or placed in the Code that relate to the qualifications of the person being chosen as Inspector General. Certainly we think the removal provision, which already is in the legislation, ought to be clarified so that City Council is absolutely involved in any removal for cause of the Inspector General. So there are some things that, yes, should be in the amendment that are not there now that we think should be added before it goes to the voters.
Or be put in the Code, as Councilman Goode suggested?
Okay. Any other questions? Councilman Savage. 70 6/12/07 - LAW & GOV'T - BILL 070459, ETC.
In the proposed resolution that you read and we're talking about today, is there anything in there that you feel -- we talked about possible amendments, but is there anything in there that you feel should be deleted?
Do you think that there's any discrepancies -- Joyce Wilkerson, the Chief of Staff to the Mayor, she spoke about some parallels that are happening between the City Controller's Office. Do you think that there's -- two offices doing the same job, do you think there's any discrepancies there that you can touch on?
Councilman, I don't pretend to be so knowledgeable about what the City Controller does to be able to comment on that. My only comment was that other people, of course, are 71 6/12/07 - LAW & GOV'T - BILL 070459, ETC. raising that who are more knowledgeable than I. I think what I'm just expressing is the Committee of Seventy's concern -- and, again, this is also a fiscal concern -- that we're not paying two different bodies to do the same exact thing, just to make sure that everybody knows what their precise role is. For example -- and I think I didn't mention this right now -- with respect to the -- with the Board of Ethics, in Chicago there is something specifically in their bill that -- excuse me; not Chicago. It's in Baltimore -- that specifies that Baltimore's Inspector General shall refer to that city's Board of Ethics any complaint that alleges a violation of the ethics provisions in the Baltimore City Code and shall investigate a complaint referred to that Board of Ethics only if the Board asks him or her to perform such an investigation, or the complaint has matters that are not within the jurisdiction of the Board of Ethics. 72 6/12/07 - LAW & GOV'T - BILL 070459, ETC. So I just think everybody needs to be very, very clear on what the responsibilities are so we don't have the Controller doing what the Inspector General is also doing.
Thank you, Councilman. Any other questions? (No response.)
On my list here -- Mr. Mandel, did you want to testify?
Yeah. Mark this date down. We have Seth Williams, the 73 6/12/07 - LAW & GOV'T - BILL 070459, ETC. current Inspector General. Now, I also have on my list Benjamin Redmonz, former Inspector General. Is he here? I don't think so.
Unfortunately, he could not be here. Mr. Benjamin Redmonz was the third Inspector General and he's currently in Harrisburg with the Committee of, I think, Delinquency and Crime Prevention or Juvenile Crime Control and he couldn't be here, but he supports the legislation that would make the Office of Inspector General a more permanent fixture in the Home Rule Charter.
Okay. Mr. Williams, why don't you identify yourself officially for the record and proceed.
My pleasure. Good afternoon. For the record, my name is Rufus Seth Williams.
You just told me something I didn't know. 74 6/12/07 - LAW & GOV'T - BILL 070459, ETC.
There you go. It's hard going through grade school with that as a first name. If I can proceed. Good afternoon, Mr. Chairman, members of the Committee. It's a pleasure to be here. I'd like to thank you sincerely both personally and professionally for holding this hearing and taking public testimony about this very critical matter. I'd also like to thank personally and professionally Councilwoman Campbell for her initiative and strength of courage of introducing this legislation. I'd also like to thank her staff for working so diligently to prepare it in its original form and the amendments that have been made, most specifically Mr. Eubanks and Mr. Wright. I'd like to thank them for their hard work, because I recognize that. And in this day and age, when everyone is speaking and talking about addressing corruption, fraud and waste, I recognize the hard work of those that are 75 6/12/07 - LAW & GOV'T - BILL 070459, ETC. willing to roll up their sleeves and to actually work on it. So I'd like to thank Councilwoman Campbell and her staff. I'd also like to thank Ms. Wilkerson, Mr. Rice and Ms. Kaplan for testifying today. I think the public discourse needs this conversation, and I think that in the free marketplace of ideas, you'll hear all of the ideas and all of the different opinions, and I respect whatever outcome Council has in drafting the most appropriate legislation you see fit. But I would like to, if I could, read briefly some of my written testimony that I have presented to the Committee. I would then like to address some of the questions that I read in Mr. Butkovitz's letter that was presented to the Committee yesterday, and then I've also included in my packet for you a copy of a report that you can now read if you go online to the Office of the Inspector General's website. 76 6/12/07 - LAW & GOV'T - BILL 070459, ETC. We've tried in my tenure as the Inspector General to make our office as transparent as we believe the rest of government should be. So you can go to our website and review our most recent cases we've opened and how many we have opened and what their status is, and that is reflective of that. I'd also like to bring to your attention that I was only reminded yesterday that my testimony would be required today at 1:00. So along with my staff, we worked to prepare these documents for you. So whatever you see that's good, I attribute to my staff, and whatever errors you see or omissions or misspelling or grammatical errors, please attribute those to me. If I could with my letter. Dear Mr. Chairman, good afternoon. I'm Seth Williams, Inspector General for the City of Philadelphia. I was appointed by Mayor Street on November the 14th, 2005. Today, the future of 77 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Philadelphia is at a crossroads. The voices of our citizens were loud and clear on May 15th. They demanded an end to municipal corruption and an increase in the governmental accountability. Business as usual is over. You now have the opportunity to personally show your commitment to the people of Philadelphia. The Office of the Inspector General is not only an essential component to the enforcement of ethical governing, it is at the front line in the fight against municipal corruption. However, as it stands today, any future Mayor may terminate the Office of the Inspector General at his or her whim. Therefore, it is essential that the citizens be given the right to vote whether the Philadelphia Home Rule Charter shall be amended to make the Office of the Inspector General a permanent office in the City of Philadelphia. The history of the Office of the Inspector General in the City of 78 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Philadelphia began on May the 22nd, 1984 when Mayor W. Wilson Goode, Sr. signed Executive Order No. 1084 creating the Office of Performance Assessment.
The goal of that office was to prevent or correct fraud, abuse, waste and mismanagement in the programs and operations of the government of Philadelphia. Today, the Office of Performance Assessment is called the Office of Inspector General. The necessary expansion of the OIG has been exceedingly slow, but an otherwise naturally evolving process. Since 1984, two successive Executive Orders have been enacted in order to more effectively combat municipal fraud and corruption. On March 1, 1985, Mayor Goode amended Executive Order No. 1084 in order to change the name from the Office of Performance Assessment to the Office of Inspector General. That would have been a mouthful to have to answer the phone that way. 79 6/12/07 - LAW & GOV'T - BILL 070459, ETC. On November 28, 1994, Mayor Edward G. Rendell signed Executive Order No. 494, which more clearly defined the mission, jurisdiction and organization of the Office of Inspector General. In the past eight years, Mayor John F. Street has doubled the personnel in the office to and recently approved the hiring of 10 an attorney to handle legal affairs. 11 The proposed amendment before you is only an initial draft, I understand, yet a starting point. The language of the proposed amendment must be clear, concise and specific. It must establish and outline several components of the OIG, including the office's mission, permanency, independence, authority, jurisdiction, funding and staff qualifications. Therefore, I propose that the distinguished members of City Council refer to the Association of Inspectors General for guidance. The Association was created in 1996. It is the premiere organization for Inspectors 80 6/12/07 - LAW & GOV'T - BILL 070459, ETC. General throughout the United States. On October the 26th, 1999, the Association enacted the Principles and Standards for Offices of Inspectors General. Copies of relevant portions of the principles and standards have been provided to you today. So in the letter that was submitted to you by Mr. Butkovitz, he made reference to the federal Inspector General's Act of 1978, which is the governing legislation for all of the Inspector Generals in the federal government across our nation. And it's important for me to understand all this, because prior to being appointed Inspector General, I had never heard of the Office of the Inspector General in the City of Philadelphia. And I think that does a great disservice to the public and the mission of the office. So we have tried to expand our ability to meet with communities, to meet with legislators such as yourselves. I 81 6/12/07 - LAW & GOV'T - BILL 070459, ETC. see Councilman Kelly shaking his head. I met with him. He was one of the first people I went and talked to, as was City Controller Seidel when he was still the City Controller. So it was very important for me, I think, to move forward, because it's my finding as the Inspector General that people do what's inspected and not expected. People do what's inspected, not expected. So a famous Sister of St. Joseph that taught me in seventh and eighth grade said that the best judge of one's character is what you do when you're not being watched. Therefore, the inverse is true. People act right when they're being watched. So with that being said, it's very important for all municipal employees and the public to know what it is that Mayor Goode created, that Mayor Rendell strengthened, Mayor Street doubled and whatever future Mayors have, that there is a watchdog to ensure public 82 6/12/07 - LAW & GOV'T - BILL 070459, ETC. accountability. So that's why I'm very glad that there's a move afoot to make this a permanent fixture in the City government. As I stated earlier, at any time in the future a Mayor theoretically could be upset about our investigations or maybe it hits too close to home and by a mark of the pen, poof, could eliminate the Office of the Inspector General, and I think we don't want that to happen.
So while some of the comments made by Mr. Rice on behalf of Mr. Butkovitz are relevant and I think could be made part of whatever legislation or ordinance you have in the future, I would ask that you look to what we refer to in the world of Inspectors General as the Green Book and that it has many of the same issues that were brought up as questions today about the mandate for the Office of the Inspector General, qualifications, how we conduct our investigations, how we refer appropriate 83 6/12/07 - LAW & GOV'T - BILL 070459, ETC. criminal matters to whichever authority is most appropriate to handle that. So I just ask you to look to that. You can look to the federal Act for guidance, if you'd like, but there was questions that were posed to Ms. Kaplan and to Mr. Rice. I've gone to a conference -- we have two conferences every year for Inspectors General and I've learned an immense amount about the different ways different cities try to grapple with this, and the Green Book tries to show you what the general opinion is on the best way to do it. So in conclusion, the great cities of New York and Chicago have demonstrated a well-publicized commitment to holding all their employees and officials accountable for any fraudulent or unethical conduct, conduct that disproportionately discriminates against the quality of life of their citizens. The Department of Investigation for the City of New York with a budget of 84 6/12/07 - LAW & GOV'T - BILL 070459, ETC. $22 million employs 295 people. The Chicago Office of the Inspector General with a budget of million employs 61 5 people. On the other hand, the Philadelphia Office of Inspector General presently employs a total of 11 people to investigate and monitor over 27,000 municipal employees. Accordingly, the staff in New York City is 37 times larger and the office in Chicago is approximately eight times larger. 6 million in savings in the most recent fiscal year. " Sadly, this remains a prevailing opinion today both locally and nationally. Most City officials and employees follow the rules. They don't steal money. They don't rig bids. They don't commit fraud. Sometimes, however, 85 6/12/07 - LAW & GOV'T - BILL 070459, ETC. people don't do what is expected. They only do what is inspected. If Philadelphia is to become the next great city, it is essential that the Office of the Inspector General has the tools to find these violators and hold them accountable. Clearly, we cannot fully serve the rights of the people without giving them the power to vote to amend the Home Rule Charter to make the Office of the Inspector General a permanent institution of the City. Now is the time to enact the independence and autonomy that the OIG needs to more fully fulfill its mission. And as I've stated, I've included for you relevant portions of the Green Book. I also have for your reading pleasure what appears on our website. This page, this document, shows monthly data, and if you would like, I can go through that with you now or you can just have that. I've also included a breakdown that shows the complaints 86 6/12/07 - LAW & GOV'T - BILL 070459, ETC. received in Fiscal Year '07 by department and the complaints received in Fiscal Year '07 by category. I think you may find that helpful just in background, just in understanding what it is that we do and how we do it. I think the most important use of my time here today would be to answer any questions that you have related to anything you've heard earlier about overlap or how we do our job, so at this time, I'd like to answer your questions.
Thank you, Mr. Williams, and I should note for the record the fine job you do do in your job.
Great. Since you brought it up, the first thing I was going to ask, I was going to ask generally, but you heard the other witnesses, particularly Mr. Rice and Mr. Butkovitz's comments, he makes a 87 6/12/07 - LAW & GOV'T - BILL 070459, ETC. lot of suggestions, but certainly one of the bigger concerns is the overlap. What are your thoughts on that? Do you think they're accurate criticisms? What would you change, that kind of thing?
Well, there's nothing that I see in the legislation as proposed that grants us any additional authority, with the exception of Councilman Rizzo's question of would we investigate other entities other than the executive branch, which I think is a good thing and should be done. But other than that, there's nothing that's expanding what we currently do. So is there overlap? There's some, but I don't think that is a bad thing. Having multiple people shine flashlights in the basement to see what's going wrong I don't think is a bad thing. But the same point, we're not out there bumping into each other while we're conducting these investigations that I've had a history of. 88 6/12/07 - LAW & GOV'T - BILL 070459, ETC. But it's true, the U.S. Attorney's Office, the Attorney General for the Commonwealth of Pennsylvania, the District Attorney, the Controller's Office, the Inspector General, the Housing Inspector General, SEPTA Inspector General all exist and they could sometimes come over the same type of information. For the most part, when that happens, if we do become aware of it and with the help of Councilman Goode, I was able to host a meeting for all of the regional Inspector Generals for all the various departments sometime in the summer of last year. That was very helpful for us just to get together, because it had never been done before. So it's helpful to know who is doing what, but sometimes that's a bad thing. Different people have different agendas and different reasons why they do what they do. So having some people investigating the same thing sometimes isn't a bad thing. I have tried to reach 89 6/12/07 - LAW & GOV'T - BILL 070459, ETC. out to -- the first person I met after I was appointed was Mr. Seidel, who was the Controller, to make sure we get on the same page at least about some things. When Mr. Butkovitz was elected and was sworn into office, I then reached out to him, and I had the courtesy of meeting with him and Mr. Rice. I've spoken with their staff. One of the greatest areas that there is overlap between the Controller's Office and the Office of the Inspector General relates to residency investigations, and I would hate to utilize duplicative resources in tracking down an employee that chooses to live in Lansdowne as opposed to West Philadelphia. So we're trying to work out where if we have concluded an investigation, if they have additional information or they conducted an investigation also, that we would use all of that information if the case were to be appealed to the Civil Service 90 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Commission. But in situations like that, the more evidence you have, the better. So it's not something where we would say, Don't do what you're investigating. So as it relates to overlap, that would be my expressed opinion.
Just one question and then I'll recognize Councilman Rizzo. Either with the former City Controller or the present one, in any of these overlaps, in your opinion -- I should have asked Mr. Rice this question. Maybe I'll call him back and ask him if he could answer it, too -- have the overlaps turned into conflicts at all that you have noticed? In other words, has that caused friction and then somehow maybe caused problems with your investigations, in your opinion?
No. I think I was quoted today in the Metro by saying that there could be 20 agencies investigating corruption, fraud and waste in the City and that might not be enough. 91 6/12/07 - LAW & GOV'T - BILL 070459, ETC. So there have not been, to my experience since November of 2005, any conflicts or tension between myself, my staff and the Office of the City Controller. To the contrary, we were both investigating various aspects of the use of public funds for Oracle and the Water Revenue Bureau and tracking who owes how much money to the City of Philadelphia, and when it came to my knowledge that Mr. Butkovitz had assigned Ellen Ceisler Green to conduct a similar investigation, I contacted her and we allowed her to come to our office and review every document that we had, and if there was anything that she thought she wanted a copy, she had full access to copy it and take it out the door with her. So that's my experience. If they have any other experience, they can speak for themselves, but it has not been my -- most of the investigators, they find somebody is looking into something, 92 6/12/07 - LAW & GOV'T - BILL 070459, ETC. they're happy.
I know Councilman Rizzo had a question, but while he's aside for a minute, but Mr. Butkovitz makes basically 7 suggestions here in his letter. Are 8 there ones -- you don't have to go over 9 each one, but are there ones particularly 10 that you think should be included or some 11 you particularly have a problem with? 12 Have you had a chance to read that? 13
No. I understand. I didn't know if something struck you one way or the other.
I think what was more appropriate was instead of me going tit for tat with whatever he stated was to put what I thought was appropriate, and that's why I included the Green Book and what Inspectors General live by, not by what City Controllers live by. So that's why I included what was written 93 6/12/07 - LAW & GOV'T - BILL 070459, ETC. here. I think what's important if you're talking about overlap, the City Controller, they have mandates from the state government, from the City government and the federal government to conduct annual audits, and I would say they probably do it very well. The audits that are conducted by the Office of the Inspector General are more forensic audits that come to us as a result of investigations we're doing or as a result of tips that we get or as a result of a mayoral or a departmental inquiry. So we're not out there counting the beans every year for every department as the Controller does, nor would we want to, but often we have investigators assigned to our office and we have auditors. The investigators conduct the "who done it." They might find that the Department of Recreation is losing a lot of resources at a warehouse. Ping pong 94 6/12/07 - LAW & GOV'T - BILL 070459, ETC. balls and basketballs are walking out the door. Our investigators would then find out the "who done it," who is stealing the items from the warehouse. Our auditors would then get involved with the integrity officer for the Department of Recreation and the Commissioner to correct the "how done it" so that they have better audit controls, so that two people have to sign to take the basketball hoops out or whatever it is. That type of mundane -- we handle everything from Fairmount Park employees that are stealing pick-up trucks to people that are taking pictures of the dead at the morgue and selling them on the Internet, everything in between. Those aren't the types of things where there would be overlap with the City Controller's Office. The Ethics Board, as you are well aware, handles primarily campaign and elections code violations. When we have an allegation -- because generally 95 6/12/07 - LAW & GOV'T - BILL 070459, ETC. when people make allegations about wrongdoing, they send a letter to us. It might be written in crayon, but they'll send courtesy copies to the Controller, the Ethics Board, the Pope, everyone. So when that happens, if it's something that we think is most appropriate for the Ethics Committee, I send a copy of that letter, a cover letter to Shane Creamer and say, If you need our assistance, contact us, and generally that's how we work together.
Mr. Williams, overlap is something I've been involved in in a long time, knowing people that work for the various federal agencies, et cetera. I mean, there's times when the criminal division of IRS or the FBI are both on the same case, and at some point they lock in and say, Look, this is your job or this is -- and I assume that you would work the same way, 96 6/12/07 - LAW & GOV'T - BILL 070459, ETC. if the Controller has more of it or further along, that you would work things out, I would assume, or either work together.
Because I know definitely the federal agencies, many times they don't even know each other are working on it until it gets to a certain point, and then that's where they separate it out. And, by the way, before you answer that, wasn't that case that the Controller's Office said that -- I thought I read that you --
Maybe they were investigating Michael Dean also. I didn't know it, but I was out sitting in front of his house in Havertown in a Ford Taurus that's assigned to me with tinted windows making sure that it was in fact Mr. Dean coming out of that house, getting on the light rail and riding into the City from Havertown.
It was your 97 6/12/07 - LAW & GOV'T - BILL 070459, ETC. organization? Okay.
Inspector General, I just want to say that even though you have limited resources and staff, I think you're doing an admirable job. You really are. I think you're to be commended. In saying that, I just want to say that would you have any problem -- because I know the City Controller has sent us a list of things that might be included to strengthen this bill or resolution. For instance, I am absolutely -- I'll go on record as saying we need a totally independent Inspector General. That's without a doubt. But what we also need, in my opinion, is that we need to protect that Inspector General 98 6/12/07 - LAW & GOV'T - BILL 070459, ETC. from all the political people around, so that the Mayor, City Council or whatever, if they don't like what you're doing, they can't really harm you in any way, because your job is to route out corruption, no matter where it is. And I just want to ask you, would you have any problems if we took some more time to look at some of these recommendations or proposals from various agencies such as the Controller's Office and see if we can make this a better bill than what it is today? Would you have any objections, for instance, if it doesn't go on the ballot in November, but perhaps it will go on in the spring of next year?
Again, it wouldn't be my place to tell you how to do your job. You should do whatever you think is most appropriate to ensure that the voters have the opportunity to make the Office of the Inspector General permanent. If that's in November, if that's in May, whatever you see fit I 99 6/12/07 - LAW & GOV'T - BILL 070459, ETC. believe is most appropriate. But I've spoken with several members, maybe almost all of you, about the Office of the Inspector General and I'd just like to credit again Councilwoman Campbell for asking me a couple questions, saying, What? It's like that? No. We have to fix that. So I commend her for that.
Thank you. Don't forget to tip your waitresses and bartenders. I'll be here 'til next Thursday. I think that what's important is, if the Inspector General is going to be independent and autonomous, there are several things that are critical that have to take place, and the devil, of course, is in the detail. You can work those things out, but the Inspector General needs to be appointed by the Mayor, with the advice and consent of the 100 6/12/07 - LAW & GOV'T - BILL 070459, ETC. legislative body. The Inspector General has to have a fixed term, because currently if we're conducting an investigation and somebody says, We don't like that, they could say, Seth, just go home. And while I would go back to working or delivering the newspaper or something, I'd be able to take care of myself, but I think for the autonomy of the office, there should be a fixed term. Also, that the Inspector General could only be removed for cause. And I didn't think we needed to define "cause" because in other places in the Home Rule Charter and the City's Code, it defines what "cause" is, but the Mayor could only remove or Council could only remove the Inspector General for just cause, not for a political whim or because they don't like where the investigation is going. And the reason, to answer a point that the Committee of Seventy had brought to your attention, the reason why 101 6/12/07 - LAW & GOV'T - BILL 070459, ETC. we said that there could be an alternative, the Mayor could say, I want you to resign. The Inspector General might then say, Okay, and just leave, but if the Inspector General was opposed to that, could request a hearing that would require then two-thirds of City Council to remove him or her from office. That's why we had -- oh, she's not here. That's why we had that wording, I thought. We suggested that. That's why I thought it was important. But, of course, you have to have an appointment, fixed term. The removal of office is important and also a separate and distinct independent budget. Whatever that budget is that the Mayor and Council agree on, the Inspector General needs to control that budget.
If the budget is approved, it would be approved by this Council; would it not? 102 6/12/07 - LAW & GOV'T - BILL 070459, ETC.
It would be approved by the Council of the City of Philadelphia, yes, sir.
Now, would that require you to come before this Council each year or something to ask for additional appropriations, as the Controller does, as everyone else does?
Again, I'm not an expert. My good friend, Mr. Goode, who I've known since high school, is, of course, an expert on this, but I would assume that the Mayor would set the budget, there would be a hearing before Council for Council then to approve or make adjustments to whatever they saw fit based upon testimony you might hear from the department head, the Inspector General or whomever. But I think that's important. But as it is currently, the way the Executive Order was created and the practice is in place, when we need more paper clips, if we need more paper, if we 103 6/12/07 - LAW & GOV'T - BILL 070459, ETC. need more business cards or training for our staff, it requires an e-mail or a letter or a memo from me to the Mayor's Office. And I'm sure they have many other things that may be on top of that pile or below that pile and sometimes things might not get to it as quickly as we might need and we might go without some things. So I say that even if the budget, that total number of X, will remain the same, it would be important for future Inspector Generals to have control of their own budget so that other people can't, if they don't like their investigation, say, No more paper for you.
If the Mayor doesn't like you, you'll have to use those No. 2 pencils all the way down, and then you'll have to go buy your own.
Point of information. 104 6/12/07 - LAW & GOV'T - BILL 070459, ETC. I'm a bit confused. You just said that the Mayor would set your budget. If the Mayor wanted to lowball your office and give you insufficient amount of money to do what you need, don't you think the Inspector General should develop a budget and present that to Council? Because if you get a Mayor that doesn't particularly want to be cooperative, they could not appropriately fund your office.
That's correct, and I believe in one of the most recent amendments presented or prepared by Councilwoman Campbell's staff, it includes language that would allow the Inspector General to petition the Court of Common Pleas for an adjustment if they thought that there was some sort of a political hoodwinking, if you were, to lowball the budget to eliminate the potential to conduct investigations appropriately.
Thank you. 105 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Thank you, Mr. Chairman, for that point of information.
I agree with the comments of the City Controller. I agree with the comments of the Mayor's Chief of Staff and I agree with the comments of my colleague, Jack Kelly. I'm just not sure how much that affects what decision we should make today, because what needs to be detailed needs to be detailed by future ordinance. It's not something that's going to change the Charter change question for November. It's not something that's going to change what generally goes into the City Charter. It's something that should be detailed by a separate ordinance that would go into The Philadelphia Code. So 106 6/12/07 - LAW & GOV'T - BILL 070459, ETC. I don't think it really affects the decision we need to make today.
Thank you very much. And, again, if any constituents call your offices and they make you aware of any corruption, fraud or waste, please call us at 686-1770. And, again, thank you for this opportunity and I'd like to thank Ms. Campbell.
Thank you, Mr. Williams. Is there anyone else here to testify on this bill and resolution? (No response.)
Seeing none, that will conclude our hearing. We're going to go into a public meeting, and I would ask everybody's indulgence for about two minutes while we confer for 107 6/12/07 - LAW & GOV'T - BILL 070459, ETC. a minute. Thank you. (Short recess.)
We're finally ready. This is the meeting of the Committee on Law and Government. First dealing with Resolution 8 No. 070474, first I recognize Councilman Goode for the purpose of an amendment. And maybe you could explain those amendments, Councilman.
No problem, Mr. Chairman. Mr. Chairman, I offer an amendment to Resolution No. 070474. It's been circulated to all members of the Committee and discussed. The resolution 17 reads on as amended, Letter L, "Council shall have the power by ordinance to further detail the powers and duties of the Inspector General in a manner not inconsistent with the provisions of this Section." Further down the page on of the amendment under Chapter A-4, under Inspector General, No. 1, it says, "The amendment 108 6/12/07 - LAW & GOV'T - BILL 070459, ETC. to the Charter creating the Office of the Inspector General shall become effective January 7, 2008." I move for the adoption of this amendment. (Duly seconded.)
All in favor of the adoption of Councilman Goode's amendment please say aye. (Aye.)
I now recognize Councilwoman Campbell for additional amendments to Resolution No. 17 070474.
This is proposed amendments to Resolution No. 20 070474. Proposed deletions and proposed additions in bold, and I can go ahead and I can read it. "Every ordinance shall, before it takes effect, be certified to the Mayor for his approval. The Mayor shall sign the ordinance if he approves 109 6/12/07 - LAW & GOV'T - BILL 070459, ETC. it, whereupon it shall become law. If he disapproves it, he shall return it to the Council with the reason for his disapproval at the first meeting thereof held not less than ten days after he receives it. If the Council shall pass the bill by a vote of two-thirds of all of its members within seven days after the bill has been returned with the Mayor's disapproval, it shall become law without his approval. If the Mayor does not return the ordinance within the time required, it shall become law without his approval. The Mayor may disapprove or reduce any item or items of any ordinance 17 making appropriations, except the items in the annual operating budget ordinance 19 making appropriations to the Auditing Department for the compensation of auditors regularly employed by it, and for the work of the Personnel Director and the Civil Service Commission."
Point of order, Councilwoman. Just one second. 110 6/12/07 - LAW & GOV'T - BILL 070459, ETC. (Off-the-record discussion.)
"And for the work of the Inspector General, which shall become law if any part of the ordinance is approved. Subject only to the foregoing exceptions, the approved part or parts of any ordinance making an appropriation shall become law, and the part or parts disapproved shall not become law unless passed by the Council over the Mayor's veto as provided therein." "For the first two fiscal years, immediately following the effective date of this subsection, at least $1 million; and for all subsequent fiscal years, an amount adequate to enable the Office of Inspector General to perform the functions assigned to it by this Charter, shall be appropriated for the work of the Inspector General. Should the Council fail to make an adequate appropriation to the Inspector General, the Inspector General may 111 6/12/07 - LAW & GOV'T - BILL 070459, ETC. petition any Court of Common Pleas of Philadelphia County for a mandamus to the Council to perform its duty under this section." Let me put on the record that we are deleting certain terms of office. I believe it's and . I move for the adoption. (Duly seconded.)
It's been moved and seconded that the amendments to Resolution 070474 as read by Councilwoman Campbell be adopted. All in favor please say aye. (Aye.)
The amendments are adopted. I now recognize Councilman Goode regarding Resolution No. 070474 as amended.
Thank you, Mr. Chairman. I move that Resolution No. 112 6/12/07 - LAW & GOV'T - BILL 070459, ETC. 070474 as amended by both amendments be reported out of Committee with a favorable recommendation. (Duly seconded.)
It's been moved and seconded that Resolution 070474 be reported out of this Committee with a favorable recommendation. All those in favor please say aye. (Aye.)
The Chair now recognizes Councilman Goode regarding Bill No. 070459.
Thank you, Mr. Chairman. I move that Bill No. 20 070459 be reported out of Committee with a favorable recommendation and that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.) 113 6/12/07 - LAW & GOV'T - BILL 070459, ETC.
It's been moved and seconded that Bill No. 070459 be reported out of this Committee with a favorable recommendation and that the rules of Council be suspended to allow for first reading at the next session of Council. All in favor please say aye. (Aye.)
The motion carries. Let me just add for the record that as it was talked about during the hearing, there will be an additional bill 18 introduced at some point by City Council to further define the roles and the rules of the Inspector General. Any other comments by any members of this Committee? (No response.)
Seeing none, that concludes the hearing of the 114 6/12/07 - LAW & GOV'T - BILL 070459, ETC. Committee on Law and Government. Thank you very much. (Committee on Law and Government adjourned at 4:05 p.m.) - - - 115 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on June 12, 2007, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)