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Minutes

Committee Hearing, October 31, 2000

Philadelphia City Council Committee HearingsOct 31, 2000

People mentioned

Names our system found in this transcript. Automatically extracted, so it can include anyone named in the record, not only officials or parties.

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING BEFORE COUNCIL COMMITTEE ON RULES - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, October 31, 2000 10:15 a.m. - - - BILL 000397 - an ordinance adopting and amendment to the Articles of Incorporation of the Germantown Special Services District ... BILL 000536 - an ordinance amending Title ... 9 BILL 000541 - an ordinance adopting an amendment to the Articles of Incorporation of the Frankford 10 Special Services District ... Bill 000544 - an ordinance to amend the Philadelphia 11 Zoning Maps ... BILL 000601 - an ordinance amending an ordinance 12 approved December 15, 1969 ... BILL 000607 - an ordinance amending an ordinance 13 approved June 13, 1997 ... BILL 000608 - an ordinance amending an ordinance 14 approved September 2, 1964 ... 15 16 PRESENT: COUNCIL PRESIDENT ANNA C. VERNA, Chair 17 COUNCILMAN JAMES F. KENNEY, Vice Chair COUNCILMAN DARRELL L. CLARKE 18 COUNCILMAN DAVID COHEN COUNCILMAN FRANK DICICCO 19 COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL 20 - - - 21 22 VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 I N D E X BILL NO. 000608 PAGE HERBERT WETZEL, Phila. Redevelopment Authority ................................ WILLIAM F. KELLER, State Representative .. ELLEN HOVEL, Presbyterian Homes and Services ............................. BILL NO. 000601 HERBERT WETZEL, Phila. Redevelopment Authority ............................... JOHN EDELSTEIN, Brownfield Development .. MICHAEL MAGRO, PHDC ..................... BILL NO. 000607 HERBERT WETZEL, Phila. Redevelopment Authority ............................... 29 SANDY SALTZMAN, New Kensington Community Development Corporation ................. 31 BILL 000397 CLORISE WYNN, Commerce Department ....... 33 MICHAEL MOORE, Germantown Special Services District ....................... 34 LEROY SIMMONS, Central Germantown Council ................................. 39 MR. VAUGHN .............................. 45 BILL NO. 000541 CLORISE WYNN, Commerce Department ....... 49 SLOAN FOLKS, Frankford Group Ministries . 50 MR. ALLEN, Councilman Mariano's office .. 54 JIM NULTY, Frankford Special Services District ................................ 55 GEORGE TEMPLES .......................... 57 KATE CLARK, Frankford United Neighbors .. 61 STEVE CULBERTSON, Frankford Group Ministries .............................. 62 GILBERT SCHOBERT ......................... 63 BILL NO. 000536 JOE HERKNESS, Board of Pensions and Retirement ............................... 65 BILL NO. 000544 RICHARD LOMBARDO, Planning Commission .... 92 STEVEN POLLOCK, ESQUIRE .................. 94 3 P R O C E E D I N G S

Council President Verna

Good morning, everyone. I apologize for the delay. This is the public hearing of the Committee on Rules. I would ask Mr. Mezzaroba to please read the title of Bill 7 No. 000608.

Mr. Mezzaroba

An ordinance amending an ordinance approved September 2, 1964, as amended, which approved the amended redevelopment proposal of the amended urban renewal plan, and amended relocation plan of the Redevelopment Authority of the City of Philadelphia for the redevelopment of Whitman Urban Renewal Area, by approving the eighth amendment of the redevelopment proposal and of the urban renewal plan which provide, inter alia, for certain changes, namely: acquisition of approximately eight additional properties for future redevelopment; certain land use changes for commercial to residential in the vicinity of Fifth Street and Jackson Street, from residential to commercial at 333 through 357 Cantrell Street and from residential/semi-public to semi-public in the block bounded by Porter Street, Galloway Street, Shunk Street and South Fourth Street; updating the 4 10/31/00 - RULES - BILL NO. 000608 Property Rehabilitation Standards; and certain expressly designated and provided for imminence of condemnation; all as contained in the eighth amended redevelopment proposal and amended urban renewal plan.

Council President Verna

Hopefully, the Administration will be testifying. Mr. Wetzel. (Witness comes forward.)

Council President Verna

Good morning. Kindly identify yourself for the record and proceed with your testimony.

Mr. Wetzel

Good morning. My name is Herbert Wetzel, and I'm Executive Director of the Philadelphia Redevelopment Authority. Madam President and Members of the Committee on Rules, I am Herbert Wetzel and I am the Executive Director of the Redevelopment Authority. I am here to testify today in favor of Bill 000608, which includes the eighth amended Whitman Redevelopment proposal and eighth amended Whitman Urban Renewal Plan. These amendments provide the City with an opportunity to eliminate a long-term blighting influence in the Whitman 5 10/31/00 - RULES - BILL NO. 000608 neighborhood and provide public support for the development of senior citizens apartment complex. State Representative William F. Keller has requested the Redevelopment Authority acquire seven long-term vacant and blighted lots and one vacant building on the northwest corner of Fifth and Jackson Streets and to convey them along with a Redevelopment Authority owned lot, to a nonprofit redeveloper who will construct a new senior citizens' facility utilizing Federal Section 202 Supportive Housing for the Elderly funds. This development will require a land use change from commercial to residential for one small parcel on the northwest corner of Fifth and Jackson Streets. In addition, since the Whitman Urban Renewal Plan has not been updated for decades, the Redevelopment Authority in conjunction with the City Planning Commission has updated the Whitman Urban Renewal Plan, the Boundary and Activity Map, the Proposed Land Use Map, and the Property Rehabilitation Standards to make them consistent with current conditions, regulations, laws an ordinances. 6 10/31/00 - RULES - BILL NO. 000608 The Redevelopment Authority believes that the development of this senior citizens' apartment complex and the updating of the Urban Renewal Plan, the maps and the Property Rehabilitation Standards all support a comprehensive plan already underway for the revitalization of the Whitman Urban Renewal Area. On behalf of the Redevelopment Authority, I ask favorable consideration of this matter and respectfully request that Bill No. 12 000608 be added to the First Reading Calendar for your Stated Meeting of November 2nd. Thank you.

Council President Verna

Thank you. State Representative Keller, would you like to add to the testimony? STATE REPRESENTATIVE KELLER: Thank you, Madam President. I would just like to add that as long as I can remember, at least 20, 21 years, the property at Fifth and Jackson had been 22 vacant and it's been an eyesore to the 23 neighborhood. With the cooperation of Mr. Wetzel 24 and the RDA and Alan Hussey and Presbyterian 25 Homes, we now have the ability to take that 7 10/31/00 - RULES - BILL NO. 000608 neighborhood and start redeveloping it. I believe that Section 202 housing at Fifth and Jackson will be the centerpiece of revitalizing the whole neighborhood. That coupled with the ability to take down close to 150 abandoned houses will change that neighborhood within a year, I believe.

Council President Verna

Thank you. Can you tell me if the apartments will be subsidized?

Mr. Wetzel

Yes. I'll let the representative from Presbyterian Homes who will be the nonprofit developer respond to that.

Council President Verna

Fine. Please identify yourself for the record.

Ms. Hovel

I'm Ellen Hovel, Director of Housing for Presbyterian Homes and Services. In answer to your question, there will be 66 one-bedroom apartments for elderly people 62 years of age and older.

Council President Verna

I'm sorry, I didn't hear you.

Ms. Hovel

There will be 66 8 10/31/00 - RULES - BILL NO. 000608 apartments for very low-income elderly people. All the apartments will be one bedroom. And there will be a subsidy. The residents will pay 30 percent of their monthly income for rent and utilities.

Council President Verna

And what age did you say they would be?

Ms. Hovel

Sixty-two years of age and older. Ten percent of the units will be modified for persons with disabilities, and those people must also be 62 years of age or older.

Council President Verna

When is it anticipated that construction would start?

Ms. Hovel

We will need to apply for construction funding. We will apply to HUD in the funding round beginning in 2001. We expect the amount in approximately February. We will apply or reapply. If we are selected, we would hope to have announcement of our selection by September and construction would start approximately eight to ten months later.

Council President Verna

How long do you anticipate construction would be?

Ms. Hovel

Construction would be 9 10/31/00 - RULES - BILL NO. 000608 approximately a year, although T.M. Ward, our contractor, is noted for bringing things in in approximately months. 5

Council President Verna

Well, I 6 know Presbyterian does a fabulous job and I know 7 that this would be a great asset to that entire 8 community. 9

Ms. Hovel

Thank you. 10

Council President Verna

Any questions from members of the committee? The Chair recognizes Councilman Kenney.

Councilman Kenney

Thank you, Madam Chair. For the record, I'd just like to state a word of thanks to State Representative Keller. During the course of this, Councilman DiCicco and I attended a community meeting. During the course of this project or the process for approval in the neighborhood, it was a very contentious and very misunderstood project. We had a long night in the basement of Our Lady of Mount Carmel School. The three of us, we felt like we were going to be carried out on a rail. But I think as time went on, people in the 10 10/31/00 - RULES - BILL NO. 000608 neighborhood began to understand that at some point in time they're going to be elderly and they're going to perhaps be up against it financially and that having this kind of opportunity for them to move into a secure, nice facility in their neighborhood really makes a difference. And I think that the cultural and racial mix of this development will be a model for all of the South Philadelphia and all of the City. So I would like to thank State Representative Keller for shepherding this through because, as in the past, some of elected officials would simply go with the will of the hoard and kill a project like this, but he really saw through along with Councilman DiCicco, and I'd like to thank them both. Thank you. STATE REPRESENTATIVE KELLER: I would just like to add that I really do appreciate it. I mean, that night will live in infamy. It was Alan's first encounter with an angry South Philadelphia community group, but without the help of Councilman Kenney and Councilman DiCicco, I don't believe we would have gotten out there that night with the vote that we needed. But the 11 10/31/00 - RULES - BILL NO. 000608 community did vote that night to approve this project, and with their help, it will make a difference in the neighborhood.

Council President Verna

Mr. Keller, I suggest that perhaps you could meet with my state representative and get him some input as to how we can do this in our community. STATE REPRESENTATIVE KELLER: I don't want to give too many secrets away, Madam President. (Laughter.)

Council President Verna

The Chair recognizes Councilman Cohen.

Councilman Cohen

Yes. I was wondering what was the nature of the objections? Because we have an empty building that we've been trying to move in that direction at the corner of 16th and Grange in the 17th Ward in Northwest Philadelphia, and the community there seems to feel that a senior citizen development of the kind that you're describing is very good. They point to the fact that that won't include a lot of children. It shouldn't include any children except visitors or maybe an adopted child here 12 10/31/00 - RULES - BILL NO. 000608 and there. STATE REPRESENTATIVE KELLER: Yes, just visitors.

Councilman Cohen

Well, what could have been the nature of the objection to that? STATE REPRESENTATIVE KELLER: The objection was just misunderstanding. They did not understand and they -- anything new is, you know, scary to people. I mean, for years it's 11 been an abandoned lot. So we had to take turns 12 because we couldn't do it all at once. 13 Councilman DiCicco was up for a half hour, then 14 Councilman Kenney, then I came in, but we finally 15 made sense. 16

Councilman Cohen

Congratulations to 17 the three of you. 18

Councilman Dicicco

I was reminded 19 that I had to live at Second Street quite a few 20 times that night, but I think one of the biggest 21 objection, like in anything we do, it was fear of 22 the unknown. And I think most people had in 23 their mind that it was some sort of a public 24 housing development that was taking place there, 25 and we all know the problems we've had with 13 10/31/00 - RULES - BILL NO. 000608 public housing and we're trying to change that throughout the City, and they didn't want that repeated in their neighborhood. And I think it was just a question of letting them understand what the project really was all about when the tempers were finally calmed down and they actually listened to what we were talking about, I think they realized that this was something that would be an asset to the neighborhood, getting rid of the vacant lot and providing, as Councilman Kenney said, opportunities for people who may not be of senior status yet but will be in the future and still want to live in the South Philadelphia community.

Councilman Cohen

If they had to pay market-rate rentals, what would the rentals be required?

Ms. Hovel

I'm not sure. That would be established by -- the actual rental for the property is a budget-driven figure.

Councilman Cohen

Could you speak right into the microphone?

Ms. Hovel

The actual rent for the property, the contract rent, is a budget-driven 14 10/31/00 - RULES - BILL NO. 000608 figure set by -- approved by HUD. I would suspect it would be to $600 per month for a 4 one-bedroom unit.

Councilman Cohen

Thank you.

Mr. Wetzel

I think the key here in terms of rents, as was previously mentioned, if you're on $400 a month Social Security, only 30 percent of that can be taken for the rent essential. So if you had $400 a month income with some adjusting factors for health care costs, etc., you'd pay 120 a month out of your pocket and the rest is made up with a federal subsidy. So these HUD 202 projects, which there are a number of them in the City, are really essential for seniors whose only income in many cases is not even Social Security, but a form of Social Security known as SSI which is the lowest payment that anyone can receive in the system. And in many cases, these individuals if it weren't for these 202s would be living in very poor conditions. STATE REPRESENTATIVE KELLER: Councilman, what we found is people are house-rich but cash-poor, and some of the people 15 10/31/00 - RULES - BILL NO. 000608 in the neighborhood, they don't have enough income to sustain the house they're in. If they go to a 202 housing project, they will be living in a brand-new apartment and it will be cheaper than living in their house and letting it fall down around them. And I think, just like everything else, it will take a while to catch on. But once people understand what this program will do and what this 202 housing project entails -- and they can take equity out of their house; it doesn't even count. They can sell their home and hold onto the equity in their home, give it to their grandchildren and do whatever they want with it and still qualify to move into the project. It is a great project and I think will go a long way in helping the neighborhood.

Council President Verna

So it really doesn't matter what a senior has in the bank, you merely go by their monthly income?

Ms. Hovel

We take into consideration the income from the assets in calculating the interest from the assets, in calculating the 30 percent. 16 10/31/00 - RULES - BILL NO. 000608

Council President Verna

Thank you.

Councilman Cohen

Thank you, Madam Chair.

Council President Verna

Thank you. Are there any other questions from members of the committee? (No further questions.)

Council President Verna

Mr. Wetzel?

Mr. Wetzel

Just for the record, the map of the urban renewal area, Jeff Brown is the project manager with the Redevelopment Authority is there with the map that defines the boundaries. And the spot up in the corner there is the area inside the urban renewal area which will be condemned and conveyed for this project.

Council President Verna

Thank you.

Councilman Cohen

Madam President?

Council President Verna

The Chair recognizes Councilman Cohen.

Councilman Cohen

If I may just recommend to Mr. Wetzel that he look at that 16th and Grange Street. I understand there's been some initial contact with the Redevelopment Authority. It's an old building that has, I 17 10/31/00 - RULES - BILL NO. 000608 think, 22 apartments. But we understand for senior citizen purposes, it would be refashioned to 30. It's a building that we're -- it's a very important corner, 16th and Grange, the outside structure is excellent but it's been vacant for about years. Apparently, no private-venture 8 person has been able to put together a plan, and 9 this looks wonderful for senior citizens. We'd 10 like to follow up and maybe have a second model senior citizen development of this kind. STATE REPRESENTATIVE KELLER: Mr. Wetzel will get right on that as soon as we get this approved. (Laughter.)

Council President Verna

The Chair recognizes Councilman Clarke.

Councilman Clarke

Thank you, Madam Chair. Madam Chair, I wouldn't be properly representing the constituents of the Fifth District if I didn't ask Mr. Wetzel to also look at 15th and Susquehanna. We have a site there also.

Mr. Wetzel

15th and Susquehanna?

Councilman Clarke

15th and 18 10/31/00 - RULES - BILL NO. 000601 Susquehanna.

Mr. Wetzel

All right, 16th and Grange; 15th and Susquehanna.

Councilman Cohen

16th and Grange, G-R-A-N-G-E, two blocks north of Olney Avenue.

Council President Verna

Is this the time to put our bid in, because I have a location, too. (Laughter.)

Council President Verna

Is there anyone else to testify on this bill? (No response.)

Council President Verna

Thank you. Thank you very much for your testimony. I would ask Mr. Mezzaroba to please read the title of Bill No. 000601.

Mr. Mezzaroba

An ordinance amending an ordinance approved December 15, 1969, as amended, which approved the redevelopment proposal, the urban renewal plan and relocation plan of the Redevelopment Authority of the City of Philadelphia for the redevelopment of Grays Ferry Urban Renewal Area, by approving the tenth amendment of the redevelopment proposal and the 19 10/31/00 - RULES - BILL NO. 000601 urban renewal plan, which provide, inter alia, for certain changes, namely: the acquisition of approximately three additional properties as well as the former railroad rights-of-way on the south side of Grays Ferry Avenue between 34th Street and 36th Street as all contained in the 10th amendment of the redevelopment proposal and the 10th amendment to the urban renewal plan.

Council President Verna

Again, Mr. Wetzel?

Mr. Wetzel

Madam President and members of the Committee on Rules, I am Herbert Wetzel, Executive Director of the Redevelopment Authority of the City of Philadelphia. And I'm here today to testify in favor of Bill No. 17 000601, which includes the 10th amended Grays Ferry redevelopment proposal and the 10th amended Grays Ferry urban renewal plan. These amendments provide the City with a unique opportunity to retain a major industrial employer and a significant number of jobs in the City and to eliminate some blighted properties as well. The City's Commerce Department has 20 10/31/00 - RULES - BILL NO. 000601 requested the Redevelopment Authority acquire the blighted properties identified as 3600 Grays Ferry Avenue. Mr. Brown has a map, and on that map, the red area is the area that's under acquisition and has identified these properties as 3600 Grays Ferry Avenue, the former railroad right-of-way on the south side of Grays Ferry Avenue between 34th Street and 36th Street for future commercial and industrial reuse. The elimination of these blighted properties will help retain Philadelphia's DuPont's Marshall Laboratory facility which is located across Grays Ferry Avenue from these properties and has a work force of almost 400 employees. The Redevelopment Authority is not proposing to acquire any residential or occupied properties in this section of Grays Ferry. In addition, the Redevelopment Authority also intends to acquire the last two vacant buildings on the 2700 block of Sears Street, being 2725 and 2731 Sears Street, to be rehabilitated by the Philadelphia Housing Development Corporation for single-family home 21 10/31/00 - RULES - BILL NO. 000601 ownership. The Redevelopment Authority believes that the acquisition of all of these properties supports a comprehensive plan already underway for the revitalization of the Greys Ferry Urban Renewal Area. The Redevelopment Authority and OHCD thanks City Council for its support for these developments. And I'm prepared to answer any questions you may have regarding them.

Council President Verna

Mr. Wetzel, it's my understanding that there have been community meetings on this issue and there's no 15 objection; is that true?

Mr. Wetzel

I'm not aware of that myself. The Commerce Department is here and PHDC is here, and they can possibly answer those questions for you.

Council President Verna

All right.

Mr. Edelstein

Madam President and members of the Rules Committee, if I could just read some testimony and then I'd be more than happy to answer your question; is that appropriate? 22 10/31/00 - RULES - BILL NO. 000601

Council President Verna

Yes, that's fine. Do we have copies of your testimony?

Mr. Edelstein

We did provide them to Mr. Mezzaroba prior to the meeting.

Council President Verna

Please proceed.

Councilman Cohen

Madam, may I the Chair to ask all the witnesses to speak directly into the microphone.

Mr. Edelstein

Absolutely. I'm sorry, Councilman Cohen. My name is John Edelstein, a manager of Brownfield Development for the City of Philadelphia. I am testifying today in lieu of the Director of Commerce, James J. Curato. He is in a meeting and I know he does intend on coming. Unfortunately, he seems to be unavoidably detained. Madam President and Members of the Rules Committee, I am John Edelstein, manager of Brownfield Development for the City's Department of Commerce and I'm here to offer testimony on Bill No. 000601. This bill would authorize the Redevelopment Authority to act on behalf of the 23 10/31/00 - RULES - BILL NO. 000601 Commerce Department to condemn the property known as 3600 Grays Ferry Avenue along with its related rail rights. The condemnation of this property will serve three ends: One, 3600 Grays Ferry Avenue is contiguous to the sites known as Celotex and TOBAR, which the Department of Commerce has acquired through the auspices of PAID for the construction of a distribution facility by Federal Express employing approximately 170 people. The condemnation of 3600 Grays Ferry Avenue will complete the site assembled by the Commerce Department for this development. Two, the Schuylkill River front portion of 3600 Grays Ferry Avenue will be retained by the City. This stretch of the riverfront will link with the riverfront portion of the Celotex site, to which the City is retaining title, and the riverfront portion of another adjacent site, the former Oscar Meyer facility, to which the City is gaining title through a settlement with Waste Management. This linkage is a critical component in the development after recreational trail running 24 10/31/00 - RULES - BILL NO. 000601 along the east bank of the Schuylkill River. Three, this condemnation is a part of a retention strategy for the Marshall Labs Facility of the DuPont Corporation, which is located catty-corner from 3600 Grays Ferry Avenue. Actually, on that map it shows it directly across. The Department of Commerce is committed to cleaning up this stretch the Grays Ferry Avenue for the benefit of DuPont, its new neighbor Federal Express, and the residents of the Forgotten Bottom community of Grays Ferry. I respectfully request the approval of this bill, and thank you for your consideration of this request. Madam President, to answer your previous question, the Commerce Department has met with the members of the community several times. This is a very large and complicated project. It's going to bring significant change to this community, which we feel to be positive, but at the request of your office we did meet with members identified by your office and their support has been unequivocal. They're actually 25 10/31/00 - RULES - BILL NO. 000601 very excited about this development.

Council President Verna

Thank you. And I do recall that several years ago there was some fear that DuPont would move if in fact the City did not address the blight problem across the street from 3600 Grays Ferry.

Mr. Edelstein

This is still the case, Madam President. One of the properties that is being acquired by the City through PAID is currently owned by a demolitions contractor. He has been allowed to store his waste on this property directly across from DuPont because the variance was grandfathered in when we acquired the property. This has been a serious sore spot for DuPont and they've been following this development with a great deal of interest. And I believe that once this development is successfully completed, which will be shortly, DuPont will be thrilled.

Council President Verna

When do you anticipate that FedEx would start construction?

Mr. Edelstein

I anticipate Federal Express is going to start construction in January. The slated opening for this facility is 10/31/00 - RULES - BILL NO. 000601 August 1, 2001. Federal Express understands that the hard construction season in the northeast usually starts in the beginning of March, so they have allowed themselves some time for permitting, but I know they want to start as quickly as possible. We anticipate closing with Federal Express on November 15th. I'd also like to make the point that these were seriously contaminated properties. The City of Philadelphia has been working to clean these properties up for the benefit of the community. We have done so and are in the midst of doing so and we've been keeping the community fully apprised of our progress.

Council President Verna

Thank you. Mr. Magro (ph.). Good morning.

Mr. Magro

Good morning, Madam President and Members of the Rules Committee. My name is Michael Magro, and I am the deputy director for construction and development at the Philadelphia Housing Development Corporation, and I am here this morning to testify on behalf Bill 24 000601, known as 10th amended redevelopment proposal for the Grays Ferry Urban Renewal Area. 27 10/31/00 - RULES - BILL NO. 000601 In 1998 PHDC in cooperation with the Kings Village Community Association rehabilitated 36 houses on the 2700 hundred block of Sears Street and the homes using funds provided by 6 the City's Office of Housing and Community 7 Development and administrated by the 8 Redevelopment Authority. As part of that 9 rehabilitation process, PHDC combined 32 10 properties into 16 double-wide homes. This 11 innovative construction technique was not the 12 first time PHDC used it, but on this scale it 13 earned PHDC, the architect, Colin Dawson; and the 14 contractor, Semniatic Construction, Incorporated, 15 the 1999 Preservation Award from the Preservation 16 Alliance for Greater Philadelphia. However, two 17 structures located at 2725 and 2731 Sears Street 18 were subsequently abandoned and one was 19 fire-damaged. Bill 000601 will permit the 20 Redevelopment Authority to complete condemnation 21 process for these two properties. PHDC will rehabilitate these properties to the same standard as the original project with funds provided and administered by OHCD and the Redevelopment Authority, respectively. 28 10/31/00 - RULES - BILL NO. 000601 PHDC is, therefore, respectfully requesting that the Rules Committee favorably consider Bill 000601 for Redevelopment Authority.

Council President Verna

When would you start the rehabilitation of the two properties on Sears Street?

Mr. Magro

We would probably not start -- we haven't begun the bid process yes, so we would probably start construction late spring, early summer of next year.

Council President Verna

Are they two-bedroom homes?

Mr. Magro

These are two-bedroom homes, Madam President. Now, one thing we did differently is that asked the architect to widen, if he could, the bedrooms and also we added a half bath on first floor to make them more attractive and marketable.

Council President Verna

Thank you. Any questions from members of the committee? (No questions.)

Council President Verna

Do we have 29 10/31/00 - RULES - BILL NO. 000607 anyone else to testify on this bill? (No response.)

Council President Verna

Thank you, gentlemen. Seeing no one else to testify on Bill 6 000601, I would ask Mr. Mezzaroba to please read Bill No. 000607. THE MEZZAROBA: An ordinance amending an ordinance approved June 13, 1997, as amended, which approved of the redevelopment proposal, the urban renewal plan and the relocation plan of the Redevelopment Authority of the City of Philadelphia for the redevelopment of the New Kensington-Fishtown Urban Renewal Area, by approving the second amendment of the redevelopment proposal, the second amendment to the urban renewal plan, and the second amendment of the relocation plan which provided, inter alia, for certain additional land acquisition of approximately 64 properties, and provision of certain relocations services, as required by law. (Witness comes forward.)

Council President Verna

Mr. Wetzel?

Mr. Wetzel

Madam President and members of the Committee on Rules, I'm Herbert 30 10/31/00 - RULES - BILL NO. 000607 Wetzel, Executive Director of the Redevelopment Authority of the City of Philadelphia. I am here today to speak in support of Bill No. 000607 which would authorize the second amended redevelopment proposal and the second amend urban renewal plan for the New Kensington and Fishtown Redevelopment Area. New Kensington and Fishtown Urban Renewal Area. The urban renewal plan would provide for the acquisition of a total of 64 vacant lots, no relocation or demolition activities are required. The parcels in this condemnation will be disposed as side yards, parking areas, recreation areas, and supplemental open space to neighboring property owners in the community. This is Phase 3 of the New Kensington Open Space Management Program. This bill is consistent with the plan for the New Kensington and Fishtown Urban Renewal Area. It would enhance community development in the area. On behalf of the Redevelopment Authority, I ask favorable consideration of this matter and respectfully request Bill No. 000607 be added to the First-Reading Calendar for your 31 10/31/00 - RULES - BILL NO. 000607 Stated Meeting on November 2nd.

Council President Verna

Thank you. Good morning. Please identify yourself for the record.

Ms. Saltzman

Good morning, Madam President and members of the Rules Committee. I'm Sandy Saltzman, I'm the executive director of New Kensington Community Development Corporation. I've brought with me today a number of residents who are in the process of trying to get this vacant land. This program has made a big difference in our community by taking what has been blighted, vacant, trash-strewn land, turned it over to the adjacent homeowner, put the land back on the tax rolls and have given the adjacent homeowner a place that they can expand their living conditions. So we would request that you pass this bill. Thank you.

Council President Verna

Thank you. And I would like the record to reflect that there are approximately 30 residents who are present. Would you say 30? 32 10/31/00 - RULES - BILL NO. 000397

Ms. Saltzman

Yes, exactly. All of them couldn't come because of work.

Council President Verna

Thank you so much and thank you all for coming in. Are there any questions from members of the committee on this bill? (No questions.)

Council President Verna

Do we have anyone else to testify? (No response.)

Council President Verna

Thank you again for coming in. I appreciate it.

Ms. Saltzman

Thank you very much.

Mr. Wetzel

Thank you.

Council President Verna

Since there's no one else to testify on this bill, I suggest we go right down the list. Would you please read the title of 000397?

Mr. Mezzaroba

Bill 000397, an ordinance adopting an amendment to the Articles of Incorporation of the Germantown Special Services District of Philadelphia to extend the term of that Authority, all under certain terms 33 10/31/00 - RULES - BILL NO. 000397 and conditions. (Witnesses come forward.)

Council President Verna

Good morning.

Ms. Wynn

Good morning, Council President.

Council President Verna

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

Ms. Wynn

Good morning, Council President Verna. My name is --

Council President Verna

I'm sorry. Why don't you wait just a moment. If you're leaving, please leave so quietly. We're still in a public hearing. Please proceed.

Ms. Wynn

Good morning, Council President Verna.

Council President Verna

Good morning.

Ms. Wynn

My name is Clorise Wynn from the City of Philadelphia Commerce Department. With me I have Michael Moore who is the Executive Director of the Germantown Special 34 10/31/00 - RULES - BILL NO. 000397 Services District and I also have Leroy Simmons with me with me from Germantown Special Services. Council President Verna and fellow Councilmembers, my name is Clorise Wynn, and I represent the Commerce Department for the City of Philadelphia. I am here today to testify on Bill 8 000397, an ordinance adopting an amendment to the Articles of Incorporation of the Germantown Special Services District of Philadelphia to extend the term that authority. This bill will amend the Articles of Incorporation of the Germantown Special Services District of Philadelphia so that the term on the authority is extended until December 31, 2025. I have no objections to the passage of this bill. Thank you for your time, and I will answer any questions.

Council President Verna

Thank you, Mr. Moore, do you want to testify?

Mr. Moore

Yes, Madam President.

Council President Verna

Please do so.

Mr. Moore

Thank you. Good morning, 35 10/31/00 - RULES - BILL NO. 000397 Madam President and members of Council.

Councilman Kenney

Good morning.

Mr. Moore

Bear with me because I left my glasses in my car. Oh, thank you very much. In the late spring of 1996, the Germantown Special Services District was given the following charge by the Philadelphia City Council: Aid in redevelopment of the Central Germantown's Business Corridor. This call demonstrated a new spirit of cooperation between City government and the community. Through this endeavor, the objective was and still is to improve the overall economy of the City by improving the economic conditions in one of Philadelphia's many neighborhood business districts. The Germantown Special Services District was created to do produce a comprehensive program that would help rebuild the economic and physical fabric of the business community, thus creating an atmosphere which is conducive to the development of new and existing businesses. Since 1996, this has been 36 10/31/00 - RULES - BILL NO. 000397 accomplished by the implementation and management of our Sidewalk Maintenance Program and the mobilization of community-based organizations, businesses, property owners, residents and City government. In our first attempt at a complete analysis of the issues facing the GSSD, we were compelled to come to grips with the complexity of Central Germantown in itself. In the first year, GSSD presented few measurable objectives. Our main concern was the process of adjustment and initiation. It was not difficult, however, for us to initiate our primary task, which was to launch our Sidewalk Maintenance Program. But in the years that followed, we were able to zero in on the larger scope of what we were about, which is to evaluate and set up a host of service-oriented initiatives that would benefit both our property owners and merchants. In past decade, the Central Germantown Business District's only criterion for success appeared to be the quantity of businesses and consumers, without regard to other critical issues as a quality of such, that is the 37 10/31/00 - RULES - BILL NO. 000397 appearance of the district and whether those current businesses actually supported the many needs of the cultural and economically diverse community. If, as districts such as ours, a change of attitude and actions does not occur, then those businesses as well as the community may be hurt rather than be helped in the long run. Basically what I wanted to say is that the goal of GSSD is to make Germantown a favored place above others and a community where enterprises and people desire to relocate. We aim to prevent business from leaving this area, hence retain jobs. Furthermore, we aim to help existing businesses expand and grow. The GSSD would like to attract new enterprises and encourage entrepreneurs within the community. Furthermore, we have also enjoyed successes in the area of crime prevention by formulating an ongoing relationship with the 14th Police District to coordinate crime prevention tactics. One project in particular was to step up police patrol in the district by funding a bike patrol. Another was the closure of two 38 10/31/00 - RULES - BILL NO. 000397 abandoned properties which were in the district itself that were used as crack houses. Through our combined efforts, open air alcohol consumption, graffiti and truant loitering all have decreased significantly. And I'd also like to add that I've been attending the Commissioner's COMPSTAT meetings monthly and I'm proud to say that the 14th District had the lowest crime rate in the past three months citywide. The GSSD also acts as liaison between the business community and City government and have accepted responsibility as watchdog for business districts with respect to zoning issues. As stated previously, through hard work we have been successful to date in attempts to improve Central Germantown; however, this is not the time to celebrate. The GSSD has with the revitalization of the Central Germantown Business District is still in its infant stages and requires our full attention and nurturing.

Mr. Moore

Our successes can only come through time and with the increased involvement from City government and the property owners we serve. As we go into the 39 10/31/00 - RULES - BILL NO. 000397 future, we have in front of us many challenges and a great deal of hard work. We are committed to the successes of the GSSD and the business district and we look forward to taking on the responsibility of making Germantown a favored hub, the hub of the Northwest, and ultimately the gem of Philadelphia. Everyone must participate in the growth and development process of the Special Service District. We must do so by fully understanding all of the components of the process and the potential benefits to all of us. It will be this kind of a unified concerted and cooperative effort that will make Central Germantown realize its full potential, therefore, prospering in the coming decades. I strongly suggest City Council help us build a stronger Germantown by reauthorizing the GSSD and extending its life for the next 20 years. Thank you.

Council President Verna

Thank you. Would this gentleman also like to testify? I'm sorry, I didn't hear your name. Do you care to testify?

Mr. Simmons

Yes. My name is Leroy 40 10/31/00 - RULES - BILL NO. 000397 Simmons, Madam President and Committee on Rules. I am coming in support of this bill 000397 and I'm coming as a resident of the Germantown area and a business owner for the last years, and 6 I'm also the Executive Director of the Central 7 Germantown Council working with many other 8 neighbor organizations to help with the 9 revitalization of Central Germantown. 10 We really are very pleased with the 11 GSSD and the help that we've gotten from the GSSD 12 in growth and development of the businesses 13 district. In general, the businesses have been 14 very responsive. They've characterized the GSSD 15 as a help to them. The businesses asked that the 16 area be clean and safe, and the GSSD has acted 17 that way. 18 I have a representative letter or a 19 couple representative letters from business 20 owners in the area and I'd like to read them into the record. , a business in Germantown and it reads: "President Verna and honorable Councilmembers, this letter is in support of continuation of the Germantown Special Services 41 10/31/00 - RULES - BILL NO. 000397 District. Our company owns a large property at the corner of Germantown and Haines Street. Over the past several years, the GSSD contributed to the appearance and cleanliness of the area around our building through regular collection of street trash, cleaning sidewalks and buildings and general upgrading of the area. This part of Germantown is enjoying a small comeback, and as responsible property owners, we hope to see that continue. We believe that the GSSD has contributed greatly to the turnaround and hope to see their funding continue. " And this is from Marsha should I have let the managing partner of 5847 through you 71 Associates, Inc. Another one is coming from Midas Muffler Auto Service Experts. "As a business and property owner in Germantown for 20 years, I would like to express my feelings of the importance of GSSD. The presence of GSSD has made the business district a much cleaner and safer place for community to shop. My impression of GSSD workers is that they are dedicated, 42 10/31/00 - RULES - BILL NO. 000397 courteous, and hard working. "I as much as anyone would like to reduce business expense, but this is one expense that is necessary. I feel that the value of my business would deteriorate without the presence of the GSSD program. " I'll leave this letter for you. I just received one, and it's to the Members of Council from Larry Simmons, Administrative Assistant for State Representative John Meyers. He says, "President Ann Verna and Honorable Councilmembers: This letter is a request for the continuation of the Germantown Special Services District. "Our office has received numerous phone calls concerning the appreciation of the work being done by GSSD. Along with the general daily cleanings and trash collections, the addition of the power cleaning has enhanced the overall appearance of the Germantown Business District. Under the direction of Executive 43 10/31/00 - RULES - BILL NO. 000397 Director Michael Moore, these improvements has helped to turn around the Business District and reduced the number of vacant properties. "We support the GSSD and support them in their continuation here in Central Germantown. " Signed Larry Simmons, Administrative Assistant to Representative John Meyers. We also have -- there's a serendipity of the GSSD which many people don't factor in. The people who are actually doing the work that have contracts to clean the streets are people from the YMCA residential program, and this is a letter from Judith Jenkins, the program director of the residential program. And she says, "I'm writing on behalf of the Y residents who have greatly benefitted from the GSSD program. The Y residential program houses men in transition in their lives, including drug addicts and alcoholics in the recovery process.

Mr. Simmons

These are men who have lost way for whatever reason and need support to become productive again. Some of them are from places that most people are afraid 44 10/31/00 - RULES - BILL NO. 000397 to mention. The GSSD has given a large majority of these men the opportunity to develop work experience, earn a living and feel good about themselves again. One of the unseen benefits of GSSD street sweeping project for the residents is that they can go to their families now and say that they have a job. They want their families to begin to believe in them again, and they are very proud of their ability to show the level of responsibility that has been missing. Not a lot of employers would take the chance on these men. The community benefits through cleaner streets and more customers coming to the business corridor and our residents take pride in the fact that the GSSD has given them a chance. " Finally, I have a letter from the Germantown Friends School. On of the serendipities of this program is that it's a community building program. And it's just a thank you to Mr. Michael Moore from Germantown Friends School for hosting a group 10th graders who helped and participated in the cleaning of 45 10/31/00 - RULES - BILL NO. 000397 Kenyon Street and they are thankful to be able to be involved and they're thankful for the work that's being done by the GSSD and they hope that it continues in the future. We have others, but this is a representation of how people feel in the community. Thank you very much.

Council President Verna

Thank you. Leroy, may I request that we be given copies of the letters that you have just read?

Council President Verna

Thank you. Mr. Vaughn, you would like to testify?

Mr. Vaughn

Yes. Thank you, Council President. On behalf of Councilwoman Donna Reed Miller, as her Chief of Staff she asked that I come here today and put on the record her unconditional support of this bill, and I would like to say that we are very familiar with both GSSD as well as Central Germantown Council, the entity responsible for the target business area 46 10/31/00 - RULES - BILL NO. 000397 in our district. We are totally supportive of this amendment. The program there is quite well, is ran in a way that everyone here will be extremely proud of, and she wanted me in her absence to let you know and the committee know that we are unconditionally supportive of this amendment and thanks for this opportunity to talk to you today. Thank you.

Council President Verna

Thank you so much. May I just ask one question? When will the present contract expire?

Mr. Moore

The present contract?

Council President Verna

That you're working under.

Mr. Moore

Through the YMCA?

Council President Verna

Mm-hmm. For the entire district.

Mr. Moore

Our contract expires --

Council President Verna

I beg your pardon?

Mr. Moore

I believe May of 2000?

Council President Verna

2000?

Mr. Moore

No, 2001, excuse me. 47 10/31/00 - RULES - BILL NO. 000397

Council President Verna

Oh, thank you. Thank you very much.

Mr. Moore

Thank you.

Council President Verna

Are there any questions from members of the committee? The Chair recognizes Councilman Clarke.

Councilman Clarke

Thank you, Madam Chair. What are the boundaries of the district?

Mr. Moore

The boundaries of the district we have 14 square blocks from Chelten Avenue from west to east from Bacon Street to Morris Street. Germantown Avenue which is a small area smaller than Chelten Avenue, obviously, from Schoolhouse Lane to Haines. We also go from Wayne Avenue, which is from Rittenhouse to Maplewood Avenue. And we have the Maplewood Mall in that area. So we have about 14 square blocks.

Councilman Clarke

And you have a substantial number of residential properties in that district? 48 10/31/00 - RULES - BILL NO. 000397

Mr. Moore

Not really. I believe we have about five residential properties.

Councilman Clarke

In the entire district?

Mr. Moore

In the entire district, yes.

Councilman Clarke

And the residential properties do not have additional taxes added as a result?

Mr. Moore

No. Basically they're waived. If they pay, they pay on a voluntary basis.

Councilman Clarke

How many employees do you have?

Mr. Moore

We have ten employees.

Councilman Clarke

Thank you.

Mr. Moore

Thank you.

Council President Verna

Thank you. Any other questions from members of the committee? (No further questions.)

Council President Verna

Miss Wynn, why don't you stay at the table since you have another bill and we'll consider that next. 49 10/31/00 - RULES - BILL NO. 000541 Would Mr. Mezzaroba please read the title of 000541?

Mr. Mezzaroba

An ordinance adopting an amendment to the Articles of Incorporation of the Frankford Special Services District of Philadelphia to extend the term that have authority, all under certain terms and conditions. (Witness comes forward.)

Ms. Wynn

Council President Verna, fellow Councilmembers, I'm here today to testify on Bill 000541, an ordinance adopting an amendment to the Articles of Incorporation of the Frankford Special Services District of Philadelphia to extend the term of that authority. This bill will amend the Articles of Incorporation of the Frankford Special Services District of Philadelphia so that the term of the authority is extended until December 31, 2005. I have no objections to the passage of this bill. Thank you for your time. I'll answer any questions that you might have. We also have testifying Jim Nulty (ph.), who is the board president and property 50 10/31/00 - RULES - BILL NO. 000541 owner, George Temples who's the vice president and a property owner, Kate Clark is executive director of Frankford United Neighbors, Gilbert Schobert, a board member and a property owner, Steve Culbertson is executive director of Frankford Group Ministries, CDC. I also have here with me Sloan Folks, who's the director of Economic Development of Frankford Group Ministry, CDC.

Council President Verna

Thank you. Good morning.

Mr. Folks

Good morning. My name is Sloan Folks. I am the director of economic development for the Community Development Corporation of Frankford Group Ministries. We manage the day-to-day operations of the Frankford Special Services District. I am going to be reading into the record a letter from a board member who was unable to attend the meeting today, and after that I'll be able to answer any questions that you have.

Council President Verna

Thank you.

Mr. Folks

"Testimony to the Council of the City of Philadelphia in favor of the 51 10/31/00 - RULES - BILL NO. 000541 Frankford Special Services District by Dr. Harry Kaplan. "Good morning members of the Philadelphia City Council Committee on Rules. My name is Dr. Harry Kaplan and I'm a property owner at 1550 Pratt Street. I'm a member of the Bridge/Pratt Business and Professional Association as well as a member of the Board of Directors of the Frankford Special Service District. I have been involved in the Frankford Special Services District since its inception five years ago. The following items are a summation of the direct benefits to the Frankford community through the creation and operation of the Frankford Special Service District. "Number one, Dramatic Improvement in Cleanliness and Appearance. Sidewalk cleaning is performed six days a week, ten hours a day, and 52 weeks a year. Cleaners focus on busy areas such as the Bridge/Pratt elevated terminal. All of the sidewalks within the district are pressure-washed and cleaned at least once a month. The high pressure cleaning technique removes embedded materials and facilitates 52 10/31/00 - RULES - BILL NO. 000541 improved sidewalk maintenance. The district has established a strong relationship with the Philadelphia Department of Streets. They assist us with the removal of litter and debris from receptacles at the end of the day. With our equipment, we have great flexibility in developing a systemic method for graffiti removal within the district. We have also been effective in large-scale cleaning efforts such as vacant lots and abandoned tire roundups. "Improvement in Public Safety and Security. The Frankford Safety Ambassador Program utilizes a uniformed staff of full and part-time personnel that patrol the area within the boundaries of the Frankford Special Services District. They are a visual presence only, and act as the eyes and the ears of the Philadelphia and SEPTA police. They also work to improve the communication and cooperation between these police departments and the business owners. The ambassadors work directly with the police through training at the police academy to develop strategies to reduce opportunity of crime in businesses within the Frankford Special Services 53 10/31/00 - RULES - BILL NO. 000541 District. The ambassadors offer information and assistance to pedestrians and shoppers along Frankford Avenue. The ambassadors are also trained in emergency first aid and CPR. They are equipped with two-way wireless radios which connect them directly with each other and emergency services. "Dramatic Reduction in Crime During Business Hours. The Frankford Special Services District has worked exceptionally hard to change the perception of the Frankford Business District as a dark, dirty and unsafe place, although in most situations, perception is not the reality. The Frankford Special Services District requested that a report be prepared by the Philadelphia Police Department's Crime Analysis and Mapping Section to track Part 1 crime statistics in 1998, 1999, and the first quarter of 2000. Part 1 major crimes include robberies, robberies with guns, residential burglaries, commercial burglaries, stolen vehicles, theft from vehicles, and homicides. This report illustrated an overall reduction in Part major crimes of 35 percent, with commercial burglaries down 60.71 54 10/31/00 - RULES - BILL NO. 000541 percent and robberies down 17.95 percent. Furthermore, this report which tracked crime statistics 100 yards beyond the boundaries of the district, approximately a block and a half, Part 1 major crimes were down an average of 19.43 percent. "For these stated reasons, we urge the Rules Committee of the City Council of Philadelphia to favorably support the legislation extending the life of the Frankford Special Services District. Thank you."

Councilwoman Verna

Thank you. The Chair recognizes Mr. Allen from Councilman Mariano's office.

Mr. Allen

Thank you, Madam President. We just have a brief statement that we're going to enter into the record. I'm just going to state briefly for the record that the Councilman supports unequivocally the Special Services District and looks forward to another five years.

Council President Verna

Thank you. Thank you so much.

Ms. Wynn

Council President, we have 55 10/31/00 - RULES - BILL NO. 000541 Mr. Nulty who's the Board president.

Council President Verna

Thank you. Good morning.

Mr. Nulty

Madam President and members of City Council, good morning. My name is Jim Nulty. I am the owner of the Nulty Funeral Home on the corner of Frankford Avenue and Church Street and presently serve as president of the Board of Directors of the Frankford Special Services District. My business was started in 1888 by my great-grandfather who later served as Democratic State Senator from that district. And no, I have never entertained any thought of following in his footsteps except as a funeral director. In 1993, 100 residents of Frankford with the help of the Frankford Group Ministry led by Reverend John Shull (ph.), all sharing a vision for the revitalization of the vibrant productive and historic neighborhood they had once known, composed a plan consisting of 48 different strategies which became known as the Frankford Plan. Twenty-seven of the these strategies have been implemented are now being 56 10/31/00 - RULES - BILL NO. 000541 utilized in Frankford. One of the most successful of these strategies has been the Special Services District begun in 1996 with the help of people like Dr. Irving Smiler, Dr. Harry Kaplan, Timothy J. Savage, Esquire, Paul Levy in the Center City Special Service District whose support in providing manpower and technical assistance was invaluable, and many others as well as corporate assistance provided by Frankford Hospital, without which, Frankford Safety Ambassador Program could not exist. The Frankford Special Service District represents a commitment by our neighborhood to maintain a clean and safe environment for our families and businesses. Since the district's inception, streets which were formerly strewn with litter are now cleaned every day by employees in uniforms. The appearance of Frankford Avenue has been greatly enhanced by the power washings performed by these men and women. Our safety ambassador program provides uniformed personnel prominently patrolling our streets, all equipped with radios who offer security and knowledgeable information 57 10/31/00 - RULES - BILL NO. 000541 to anyone who requests it. In short, the Frankford Special Services District has gone far in advancing the strategies formulated by the originators of the Frankford Plan. It is an integral part of the Frankford Plan which has in its relatively short existence proven what can be accomplished by a group of private citizens with the help of the City. It is vital to the survival of our neighborhood that the Frankford Special Services District be continued for an additional five-year term so that the work it has gun may not only continue, but progress further. It is respectfully requested that City Council recognize the achievements already effected and grant to us the legal authority to keep the Frankford Special Services District in operation for another five years. Thank you.

Ms. Wynn

Madam President, we also have Mr. George Temples, who is the vice president.

Mr. Temples

Madam President and gentlemen Council, I am a relatively newcomer to 58 10/31/00 - RULES - BILL NO. 000541 the Frankford area. I bought a home there in 1993 and, of course, have lived there continuously since then. One of the attractions to the Frankford area for me was the architecture of some of the buildings there that date back for over a century, buildings that are not duplicated anywhere else. I spent years living in 9 Colonial Village, which is in Wayne, and I found 10 nothing this that would compare with what I have 11 found in Frankford. 12 The oldest Friends School in the 13 United States is in Frankford. It is 14 approximately four blocks from where I live. It 15 is three and a half blocks from Frankford Avenue. 16 The Historical Society of Frankford, 17 which is within walking distance, perhaps five 18 minutes of where I live, was a historical society 19 when Frankford was a borough before it became 20 part of the political being of the City of Philadelphia. One of the churches on Frankford Avenue today is celebrating its 190th anniversary. All of these things are now being brought back to life by meaningful, interested 59 10/31/00 - RULES - BILL NO. 000541 residents of Frankford who do not want to leave the area and who feel that all of this valuable history and background requires that it be sustained for future generations. When I bought my home in Frankford, there was a vacant building across the street. Young people expressing themselves would cover it with graffiti. Over the weekend, the neighborhoods would come out with fresh paint and paint over all of the graffiti. Citizens working on their own without civic support are limited in what they can do. The Frankford Special Services District has provided this support since 1996. As Mr. Nulty has already observed, the Frankford Special Services District is implementing many of the logistical objectives of the Frankford Plan, which was adopted in 1993. Frankford Avenue itself, which was rapidly becoming a place that nobody really cared about nor a place where anybody would want to be seen, has been slowly turning around now through new businesses, through completely new capital involvement, and as a matter of fact, the Special Services District has provided the opportunity to 60 10/31/00 - RULES - BILL NO. 000541 these business people to come in and repaint their stores in a conforming manner at the expense of the district. It's an outreach program which has had great success. It has rekindled the spirit of what used to be a very large industrial and financial area of our City. Even at this time, Frankford is by no 9 means an accomplished area in terms of those objectives. However, with the additional support by the reaffirmation of this authorization requested here, we believe that Frankford will continue to grow and improve and make contributions to the City of Philadelphia. I would like to observe, for example, that the Frankford Hospital which supports the Special Services District, we hold out of our meetings there, they contribute substantial sums of money to our well-being is now a part of the Thomas Jefferson Hospital System. And the very large Pratt Bridge terminus of the Frankford L is going to revitalize in a very different way and attract people to come into Frankford who will then come into the City of Philadelphia in a matter of 15 minutes, maybe 20 minutes at most. What is 61 10/31/00 - RULES - BILL NO. 000541 happening there is a mini revolution. In some ways, it's a neighborhood miracle. We need your help.

Council President Verna

Thank you very much.

Mr. Temples

And we would appreciate having it.

Council President Verna

Thank you so very much. Do we have anyone else to testify on this bill?

Ms. Wynn

Yes, Madam President. We have Kate Clark who is the executive director of Frankford United Neighbors.

Ms. Clark

Good morning, Madam President and members of the Rules Committee. My name is Kate Clark. I'm the executive director of Frankford United Neighbors Community Development Corporation, also the president of the Frankford Plan 2000. My testimony is short. When the Frankford Plan was established in 1993, the Frankford Special Service District became part of the Frankford Plan. As we enter the second phase of the 62 10/31/00 - RULES - BILL NO. 000541 Frankford Plan 2000, it is imperative that we keep the Frankford Special Service District as part of the Frankford Plan 2000. It has been wonderful in our community keeping our streets clean, safe. Our safety ambassadors have been doing a wonderful job, henceforth, giving Frankford the name that we like to claim that we are Frankford-friendly. So therefore, I am here today to ask the members of the Philadelphia City Council to support and reauthorize the Frankford Special Service District for another five years. Thank you.

Councilwoman Verna

Thank you. Do we have someone else to testify on this bill?

Ms. Wynn

Yes, Madam President. We have Steve Culbertson who is executive director of Frankford Group Ministries, CDC.

Mr. Culbertson

My name is Steve Culbertson. I'm the executive director of the Community Development Corporation of Frankford Group Ministry, and good things are happening in Frankford. We hope you authorize this bill and I'd love to have you come up visit us in 63 10/31/00 - RULES - BILL NO. 000541 Frankford. Things are changing there.

Council President Verna

Thank you so much.

Ms. Wynn

Madam President, lastly we have Mr. Gilbert Schobert who is a board member and property owner.

Mr. Schobert

Madam President and members of Council, it's a pleasure to be here this morning. I am a resident, born here in Philadelphia. I have a funeral home up in the Frankford section also, just a block away from Frankford Hospital, and I have been in business over 45 years. And Special Services District has improved Frankford Avenue very greatly. People coming into our funeral home mention the fact that Frankford has completely changed in the way that the streets are kept, and we appreciate your interest in this matter. Thank you.

Council President Verna

Thank you.

Ms. Wynn

Madam President, we're done. And members of Council, we thank you for your time. That's it.

Council President Verna

I just 64 10/31/00 - RULES - BILL NO. 000536 wanted to ask you one question. There is no need to suspend rules on the two bills that you testified on today?

Council President Verna

Thank you.

Council President Verna

Thank you all for coming in.

Ms. Wynn

Thank you.

Council President Verna

Mr. Mezzaroba, please read the title of Bill 13 No. 000536.

Mr. Mezzaroba

Bill 000536, an ordinance amending Title 22 of the Philadelphia Code entitled, "City of Philadelphia Public Employees Retirement Code," to provide that police officers injured as a result of performing heroic action in the line of duty are exempted from the earned income offset applied to members receiving service-connected disability benefits, and amending the amount of offset with respect to other police officers, all under certain terms and conditions. (Witnesses come forward.) 65 10/31/00 - RULES - BILL NO. 000536

Council President Verna

Mr. Herkness, before you start to testify, please do not leave the room until you see me.

Mr. Herkness

Sure, sure.

Council President Verna

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

Mr. Herkness

Good morning. My name is Joe Herkness the executive director of the Board of Pensions and Retirement, and with me is Phil Grob (ph.), who is director of the City of Philadelphia's Labor Relations Department. This is Council ordinance -- there's a typo in the testimony. We missed a zero. 000536. Good morning, Madam President and members of the Rules Committee. I'm appearing on behalf of Director of Finance, Miss Janice Davis, to offer testimony in support of Bill 000536.

Council President Verna

Excuse me. Before you continue, where is the typo?

Mr. Herkness

The typo is 000536, it's with two zeroes.

Council President Verna

Okay, thank you. 66 10/31/00 - RULES - BILL NO. 000536

Mr. Herkness

This legislation amends Section 22-401 of the Public Employees Retirement Code titled Service-Connected Disability Retirement Benefits. The bill 6 implements through ordinance of City Council certain sections of the Pennsylvania Act 111 Interest Arbitration Award between the City of Philadelphia and the Fraternal Order of Police Lodge 5 that was effective in July of 1996. The ordinance reduces the present outside income offset to a retired police officer's service-connected disability benefit from the present $1 for every $2 of gainful employment outside of the City of Philadelphia to $1 for every $3 of that gainful employment. In addition, Bill 000536 institutes a maximum age of 65 for the purposes of this section, after which this offset or reduction ceases. Bill 000536 also creates a new section titled Hero Exemption. This section is also in compliance with the same Act 111 Arbitration Award alluded to earlier. This paragraph allows the exemption from gainful employment awarded to a service-connected 67 10/31/00 - RULES - BILL NO. 000536 disability for a police officer awarded a service-connected disability where the Board of Pensions finds that the disability resulted from the violent conduct of a third party that was directed towards the officer or a member of the public or as an immediate result of performing other heroic actions in an emergency situation. Madam President, it is very important that the City of Philadelphia be in compliance with the Act 11 Arbitration Award and Bill 000536 achieves this goal. Both the Administration and the Board of Trustees of the Pension System support Bill 000536 and recommend its passage. That completes my testimony and we'd be happy to answer any questions. Thank you.

Council President Verna

Thank you. Are you testifying, sir?

Mr. Grob

No, I'm just here to answer questions.

Council President Verna

You indicated that the Arbitration Award between the City of Philadelphia and the FOP Lodge No. 5 is affective in July of '96.

Mr. Herkness

Yes, ma'am. 68 10/31/00 - RULES - BILL NO. 000536

Council President Verna

Why is it taking so long to come to Council to address this issue?

Mr. Herkness

The bill -- this piece of the arbitration that dealt with the Fraternal Order of Police was also part of the Council ordinance that was submitted that included amendments to the firefighters' contract also from a similar arbitration award. That piece implemented Bill 589, which is Pension Reform Act, and it was relatively controversial. It was tabled once, possibly twice, and was put on hold by the Administration, the previous Administration, and it never came up to Council hearing again. It has been a point of contention between the City of Philadelphia and the Fraternal Order of Police for a few years now. There's been return to at least two arbitrators to discuss the issue and there was an August 11th award on a grievance having to do with the failure to implement the Act 111 award that basically set up agreement between the City, the Board of Pensions and that we would put into action, at least the beginning of the award, and 69 10/31/00 - RULES - BILL NO. 000536 then the Administration would as soon as possible present to the City Council a call for an ordinance to comply with the Fraternal Order of Police, the FOP's piece of that previous bill. The firefighters has still remained unimplemented, so to speak. So by carving out the FOP, we dealt with the FOP's issue. And along with the hero exemption to the offset, we've set a process at the Board of Pensions on how we're going to approach each application. That has been completed. We have a framework on how we're going to handle it. The next step would be passage of this bill, which would put the arbitration in place retroactively I believe to '96, maybe even to '93. I would defer the Bill on the language of that Act 111.

Council President Verna

I'm sorry?

Mr. Grob

It's retroactive to 1996, July 1, 1996.

Council President Verna

When can payment be expected and what is the cost of such payments to the fund? 70 10/31/00 - RULES - BILL NO. 000536

Mr. Herkness

When can payment --

Council President Verna

Be expected? If we're going to have this retroactively to 1996.

Mr. Herkness

Oh, I see what you mean. There are approximately -- I'm sorry. There are approximately 85 officers presently on the service-connected disability who are subject to the present ordinance, which is an offset of $1 for every $2 of outside employment and for their entire lifetime. This puts a cap on that offset at age 65 and reduces the offset from $1 for every $2 of outside employment to $1 to every $3.

Council President Verna

I'm sorry, you're going to have to clarify your statement.

Council President Verna

Because I don't think we -- I don't think we quite understand exactly what you said. Do you mind trying to elaborate a little more clearly on that?

Mr. Herkness

Okay. Maybe I can help if I can go back to the beginning. The 71 10/31/00 - RULES - BILL NO. 000536 Pension Reform Act 589 put an offset on any service-connected disability earnings outside of the City of Philadelphia of $1 for every $2 on a police officer's pension and the police officer would be subject to that offset for his entire life. The other AFSCME District Council 47 and 33 are subject to it to age 65 and they're offset is $1 for every $3 of outside income. The Act 111 arbitration of 1996 was awarded -- the FOP was awarded a reduction in the offset from $1 for every $2 to $1 for every $3. So rather than if you make $100 on outside, rather cutting it by $50 you now would -- this bill would reduce it by $33. So it's a decrease in the reduction, and they capped the reduction at age 65. So a police officer no longer would be subject to the reduction on outside earnings after age 65 if this bill is passed. That was the language from the Act 111 arbitration. In addition, there is a separate new section called Hero Exemption where the circumstances of the employee's disability can cause the offset to be taken away. In other words, for instance, if an officer was shot in 72 10/31/00 - RULES - BILL NO. 000536 the line of duty and became disabled, that would be a relatively easy decision. That officer would most likely not be subject to the offset. Each case would then become a fingerprint. The Board of Pensions has set up a mechanism now where we review the facts of the disability, the facts of the case that caused the disability, and a decision is made by the Board -- this is as per the arbitration -- to either maintain the offset or grant a hero exemption to the employee based on the facts of his or her individual case, then they would not be subject to the offset at all. There are 85 officers that we will now review their cases, retired officers. We will then review each and every one of those 85 cases, make a hero exemption determination yes or no. And then prospectively each case, each service-connected disability that comes to the Board, if the disability is awarded, the Board would then make an additional decision on whether or not the facts of the case would qualify the officer for a hero exemptions and then he or she would not be subject to the income offset of their disability benefit. 73 10/31/00 - RULES - BILL NO. 000536

Council President Verna

Let me try to rephrase my question. I believe that you have testified that this bill implements an arbitration award that dates back to July of '96.

Mr. Herkness

Yes, ma'am.

Council President Verna

Since this is the case, will the pension fund be making retroactive adjustments to the pensions of those affected by the ordinance? True, false, 50/50, whatever? I still don't quite understand.

Mr. Herkness

The answer to that is possibly each one of the 85 or so service-connected disabilities will be reviewed by the Board and be granted a hero exemption or not. There are presently there are only three employees who are subject who are paying an offset service-connected disabilities, police officers. Their cases will be reviewed first. We've agreed with the FOP to review their cases first after passage of this ordinance. Their cases would -- they're subject to an offset. Let's say their offset is they make 10,000 a year and their offset is $5,000. The facts of their disability will be reviewed. If 74 10/31/00 - RULES - BILL NO. 000536 they are granted a hero exemption, then that offset would cease and it would cease retroactive to the date of their disability. If that 5,000 was to be returned to them, the way we would do it would be to work it prospectively on their future pensions or to grant them a increase in their pension, you know, immediately. We haven't worked out that specific detail. We expect that of those 85, there will be several that will qualify for hero exemption. The FOP believes it. It's only a ball park that it will probably be about 30, ball park. And there'd be, obvious, some arguments about some of them that will be in gray areas.

Council President Verna

In your testimony you also testified that in addition, this bill institutes a maximum age of 65. What was the maximum age prior to this bill?

Mr. Herkness

Lifetime. It was a lifetime offset on the police officer's service-connected disability benefit if there was outside earnings. So this bill implements the language of the arbitration that caps the offset at age 65. 75 10/31/00 - RULES - BILL NO. 000536

Council President Verna

Are there any questions from members of the committee? The Chair recognizes Councilman O'Neill.

Councilman O'Neill

Madam Chair, I'll yield.

Councilwoman Verna

The Chair recognizes Councilman Nutter.

Councilman Nutter

Thank you, Madam Chair. I have two questions. One is on this particular bill the other is somewhat related, but I don't want to mix the two questions so I'll wait until the end for the second one. On this particular bill, maybe I missed the explanation. I thought I heard the President ask why it was -- I guess why it had taken so long for this to type of bill given that there had been this interest arbitration award back in July of '96. If I missed the answer, I apologize, but could you give me a short version of it?

Mr. Herkness

Sure. The original bill also included the firefighters' arbitration that had a different impact on the firefighters' 76 10/31/00 - RULES - BILL NO. 000536 contract. The FOP and the firefighters were combined in the previous bill. It implemented pension reform for the firefighters' contract, basically reducing their benefit, but it increased benefits for the Fraternal Order of Police. That bill has not made it through the legislative process and the FOP has -- it's been a bone of contention for a long, long time. They have gone back to arbitrators and there's actually an award, a grievance award in August that asked for a certain process for implementation for their piece of the previous bill. So the Act 111 arbitration for the firefighters in that particular year has never been implemented. This is the Act 111 arbitration for the Fraternal Order of Police. They were previously together; they are now carved out and this is the FOP piece.

Councilman Nutter

So you're saying that back in '96 or '96 going into '97?

Mr. Grob

February of '97 it was first introduced.

Councilman Nutter

In February of 77 10/31/00 - RULES - BILL NO. 000536 '97 you tried to combine the interest arbitration award results out of the '96 contract negotiations?

Mr. Grob

Out of '93 and the '96.

Councilman Nutter

Okay. And what happened to the bill from '97?

Mr. Herkness

The --

Councilman Nutter

Did it get introduced?

Mr. Herkness

The first time it was postponed. It wasn't a quorum and it was postponed, tabled. And then my information from our Law Department and our counsel was that the Administration some time early in the fall asked for the bill to be held for rhyme or reason.

Councilman Nutter

The fall of '97?

Mr. Herkness

Yes, sir. And that's the last time the bill ever -- that particular bill was ever close to a hearing, to my understanding.

Councilman Nutter

So it never had a hearing?

Mr. Herkness

No, it never had a hearing. 78 10/31/00 - RULES - BILL NO. 000536

Mr. Grob

It was scheduled twice but it's never had a hearing.

Mr. Herkness

Right.

Councilman Nutter

Okay. Thank you.

Council President Verna

The Chair recognizes Councilman O'Neill.

Councilman O'Neill

Mr. Herkness, it seems like this is a good bill for the FOP from what you've described. It was not so good for the firefighters, but now that you split off, this was the good part that the FOP liked.

Mr. Herkness

Absolutely.

Councilman O'Neill

I have not heard from the FOP. They're not here today I don't think.

Council President Verna

No. 18

Councilman O'Neill

It's unusual when something is good for the FOP or anybody like the FOP for them not to tell us. Is there something we're missing here?

Mr. Herkness

I don't think so. There was FOP representation at the arbitration award, the grievance award in August that set up a process, and the Administration agreed to push 79 10/31/00 - RULES - BILL NO. 000536 the FOP piece, create a process to address the retroactive applications and also to present the bill to Council and ask for a hearing. And the City has done that, and I think the FOP is certainly monitoring it. The attorney for the FOP, Mr. Jennings, was at that arbitration and he has been kept abreast of the process and the movement of this part of the Act 111 arbitration. It's only my opinion, I think they're totally satisfied with the progress since it's just about the framework that we laid out we thought was possible in August of this year. We said, Here's what we can do and here's what we will do. And the Board created a subcommittee of which there's the FOP representative from the Board is on that subcommittee.

Councilman O'Neill

Who is that?

Mr. Herkness

Serena Tenant (ph.). And that subcommittee is dealing with the process anticipating passage on, okay, how are we going to approach implementation and examining the cases of all of the 85 officers who are presently eligible for the hero exemption if this bill 25 passes. We have sent letters out to them and 80 10/31/00 - RULES - BILL NO. 000536 notified them of the bill being presented to Council. If the bill passes, we have asked them to contact us. And so we agreed to do this at the grievance arbitration in August. We have complied. I think the FOP -- my opinion, I believe the FOP is happy with the progress. And my in my experience, if they weren't, there would be people here.

Councilman O'Neill

Did you ask them for a letter of support?

Mr. Grob

We sent a copy of the proposed ordinance to them. They called us back and had no problem. We did not get a letter of support.

Councilman O'Neill

They called you back and said they had no problems?

Councilman O'Neill

Do you know who that was?

Mr. Grob

Mr. Jennings.

Councilman O'Neill

Mr. Jenkins.

Mr. Grob

Jennings, Tom Jennings.

Councilman O'Neill

You mentioned that -- the hero exemption, does that come out of 81 10/31/00 - RULES - BILL NO. 000536 the language of the '96 award?

Mr. Herkness

Yes, sir.

Councilman O'Neill

So you start with the service-connected pool and we reduce it to whatever the hero exemption would be under this scenario. Can you give me an example of someone who would be service-connected and one who would be a hero exemption and one who would not.

Mr. Herkness

Well, obviously, a gunshot would be one. If someone was injured in other duties as a police officer, possibly a fall, possibly a car accident, arm slammed with, you know, the back door of the patrol wagon and damages, shattered wrists or something like that, they would most likely not qualify for a hero exemption. Obviously, they're the extremes, and as the facts of the case is, they will come toward the middle. There will probably be some controversy. Our law department has told us that a hero exemption decision by the Board is appealable to court to say, you know, they should receive the hero exemption although the 82 10/31/00 - RULES - BILL NO. 000536 arbitration does say that the decision will be left up to the Board of Pensions. However, every decision by the Board can be appealable to the Court the Common Pleas.

Councilman O'Neill

Is it different or similar set of criteria that would be used for this exemption that's used for the hero scholarship awards for those?

Mr. Herkness

I would defer to Bill. I really don't know the answer to that.

Mr. Grob

I don't think it was ever designed to be that way.

Councilman O'Neill

It wasn't?

Mr. Grob

It was not.

Councilman O'Neill

Okay. So someone could get the hero's exemption or the disability but not necessarily be in the hero scholarship pool for educational benefits and things.

Councilman O'Neill

You mentioned there are 85 out there or 80?

Council President Verna

85.

Mr. Herkness

Yeah, there's about 85 83 10/31/00 - RULES - BILL NO. 000536 this month.

Councilman O'Neill

You mentioned that three would be reviewed right away because they are getting the offset.

Mr. Herkness

Yeah, they're subject to the offset.

Councilman O'Neill

Why are the 82 not? That's what I'm trying to find out.

Mr. Herkness

They have not reported outside gainful employment on their -- the process is they submit a copy of their 1040 and we go to Line 7A; and if there's gainful employment, they submit W2s and we offset that. They are required to submit them annually and we review that. There's only three or four. I think there's three that are subject to an offset, the service-connected police officers.

Councilman O'Neill

So right now the offset is if, let's say, you make 30,000 in their outside job. Their pension is reduced by 15,000 today.

Mr. Herkness

That's correct.

Councilman O'Neill

It would be reduced by 10,000 if this passed. 84 10/31/00 - RULES - BILL NO. 000536

Mr. Herkness

Correct.

Councilman O'Neill

Five thousand dollar benefit to the retired officer?

Mr. Herkness

Correct.

Councilman O'Neill

Thank you.

Council President Verna

Thank you. Any other questions from members of the committee?

Councilman Nutter

Thank you, Madam Chair. Mr. Herkness, on a somewhat unrelated matter, but since you are here and it is a pension issue, the question was raised with me with regard to pension issues and health and welfare benefits and a number of other provisions for when we have a uniformed employee who is killed on the job and everything that's kind of in the package that happens with that individual's family versus what happens in a situation if a non-uniformed employee is killed while on the job. I've experienced that, unfortunately, a couple of years ago. There was a person in the Streets Department, one of my constituents, was killed on the job. Generally, 85 10/31/00 - RULES - BILL NO. 000536 the non-uniformed employees, I think, have a relative expectation of a less dangerous work environment than the uniformed employees. I think that's a given, and there is absolutely no 6 complaint or criticism about what the uniformed officers get because of the nature of their jobs. What I would like to ask you to do, and we can have some subsequent conversation, is if you can take a look at and maybe prepare a matrix for the committee of any of the similarities or distinctions between the benefits, whether it's health an welfare or pension hero provisions and the like, in a comparison between a uniformed employee killed on the job versus a non-uniformed employee killed on the job. Whether they fell somewhere, a truck ran into them or whether they were shot while on the job.

Councilman Nutter

I'm really just trying to respond to a constituent who has, unfortunately, experience that level of distress in their family life. And if you could help me with that, I'd greatly appreciate it.

Mr. Herkness

Surely. 86 10/31/00 - RULES - BILL NO. 000536

Councilman Nutter

Thank you.

Council President Verna

Thank you. The Chair recognizes Councilman Cohen.

Councilman Cohen

Does the pension laws in Philadelphia or Pennsylvania ever cover any health an welfare benefits? I heard Councilman Nutter's question.

Mr. Herkness

Our benefits in Pennsylvania, the State has health benefits. I think they might connect back to the General Fund. In the City of Philadelphia, there is a civil service reg and negotiated labor agreements that provide health and welfare benefits for retirees. The costs of those benefits are not paid by the pension system, they're paid by the General Fund of the City of Philadelphia. However, the pension system administers the benefit to the extent that we say a member of a labor organization or a labor organization's group is qualified and eligible to receive the benefit, those monies are then forwarded to the individual organization. The employees who are not represented by a labor organization are 87 10/31/00 - RULES - BILL NO. 000536 administered by the Board of Pensions an Retirement. The bill for that benefit is paid by the General Fund.

Councilman Cohen

Could you give me an example of this administration by the Pension Board of a -- I didn't get quite the distinction. Somebody not in the union, say, who gets certain kind of -- what kind of benefits would that be?

Mr. Herkness

Well, each one can be different. There's five years. Recent labor organization agreements, there's five years of retirement benefits that are awarded to the employees. I don't know if that was granted to the non-uniformed -- to non-represented employees. The health and welfare benefits are administered by the individual labor organizations on behalf of the retirees. The City of Philadelphia simply forwards the dollars that is negotiated on a per-month, per-employee basis. We administer -- basically, we say the employee is eligible for the benefit, then finance sends the money for that employee on a monthly basis to the labor organization. If the employee is a non-represented employee, then the 88 10/31/00 - RULES - BILL NO. 000536 Board of Pensions and Retirement administers that benefit from its offices.

Councilman Cohen

What do you mean you administer --

Mr. Herkness

Well, we say you're eligible, we then send you the packets and you make choices with our employees.

Councilman Cohen

Rather than having the City do it?

Mr. Herkness

Correct.

Councilman Cohen

The ordinary where the City administers the personnel department sends out the packets?

Mr. Herkness

Right.

Councilman Cohen

Is that kind of a limit of what you do?

Mr. Herkness

Yes, sir.

Councilman Cohen

Is there anything in the law which would prevent a City ordinance 21 providing for payments from the pension fund for health and welfare benefits of any kind? Are you familiar with that?

Mr. Herkness

Yes, I am. That was looked at during the recodification when we 89 10/31/00 - RULES - BILL NO. 000536 looked at the two separate ordinances and then they combined them for the old plan and the new plan. I would defer to our tax attorneys at Blank Rome. However, my recollection was that payments for health and welfare benefits and payments for monthly pension annuity should not be commingled in a defined benefit plan.

Councilman Cohen

I'm sorry, I'm not getting what you're saying.

Mr. Herkness

You shouldn't pay for both of them from the pension fund. And our situation in Philadelphia is that we do not. Although we might handle the paperwork, the General Fund of the City of Philadelphia pays the vendors.

Councilman Cohen

Is this anything that you know of in the law that requires that separation?

Mr. Herkness

My recollection, Councilman, was that it's an IRS code when they were certifying the board or certifying the pension fund as being in compliance with all of the various federal tax and state regulations. And this was done during the same time period 90 10/31/00 - RULES - BILL NO. 000536 that we were rewriting the ordinance and making it year-friendly so to speak. But I would defer to them again to review that again and answer specifically. But that's my recollection around the health and welfare because there was a particular request.

Councilman Cohen

You referred to the law firm of Blank and Rome?

Mr. Herkness

Well, we had an outside tax attorney advising the Board and the Law Department when the committee was doing the recodification of the pension ordinance in the years previous to January '99.

Councilman Cohen

Are they still in existence or was that just for that particular purpose?

Mr. Herkness

I'm sorry?

Councilman Cohen

Is that system still in effect, this advisory group?

Mr. Herkness

No, that committee was a committee of pension personnel, City Council personnel, and the Law Department for the purposes of putting the recodification together that disbanded once the legislation was passed in 91 10/31/00 - RULES - BILL NO. 000536 January of 1999. But we can easily -- the attorney is on retention on what I call a time and material. You know, if we have a tax question that Law wants to farm out, then we call -- the gentleman's name is John Nixon at Blank Rome. We'd be glad to have that reviewed for you again on that particular topic and give the committee an answer on that.

Councilman Cohen

All right, thank you.

Council President Verna

Thank you. Are there any other questions? (No further questions.)

Council President Verna

Mr. Herkness, I know this only dates back to 1996, so my question to you is, are you asking for a suspension of the rules on this bill?

Mr. Herkness

Yes, Madam Chair.

Council President Verna

Thank you. Do we have anyone else to testify on this bill? (No response.)

Council President Verna

Seeing none, I would ask Mr. McPherson to please read 92 10/31/00 - RULES - BILL NO. 000544 the title of Bill No. 000544.

Mr. Mcpherson

Bill 000544, an ordinance to amend the Philadelphia Zoning Maps by change the zoning designation of certain areas of land located within an area bounded by Lancaster Avenue, 56th Street, Haddington Street and 57th Street. (Witnesses come forward.)

Council President Verna

Good morning. Please identify yourself for the record and proceed with your testimony.

Mr. Lombardo

Good morning, Council President Verna and members of the Rules Committee. My name is Richard Lombardo, Director of Project Planning for the City Planning Commission here to testify today on behalf of Bill 000544. In the interest of time, and I'm sure you're all worn out, I'll depart from the testimony and say that I'm here to -- this bill 21 would seek of rezone approximately three acres of land, Lancaster Avenue from Class G Industrial to partly class -- I'm sorry. Partly Class G2 Industrial, partly Class R9 Residential, partly C2 Commercial, a single classification of C3 93 10/31/00 - RULES - BILL NO. 000544 Commercial, approximately three acres of land between 56th, 57th Street, Haddington Street, the south side of Lancaster Avenue. The purpose of this bill is to allow the owner of the property, Mr. David Groverman, to redevelop this former industrial property as a commercial property. Back earlier this year, the Planning Commission in conjunction with the District Councilperson and the area residents and area businesses did a Lancaster Avenue study, a strategy for corridor revitalization. An important part of that revitalization is the taking of this derelict industrial property -- not derelict, but this former industrial property and turning it into a commercial use. This bill 18 which was introduced by Councilman Nutter would further that aim. The Commission had seen this item a number of times in different venues, streets bills, the Lancaster study. We haven't considered this particular bill. It's on our agenda for tomorrow as a previous policy item, which means there won't be any discussion of it. 94 10/31/00 - RULES - BILL NO. 000544 The Commission will be asked to approve it in accordance with previous actions of the Commission. That's our my testimony. Mr. Groverman and his attorney are here. I don't know if they have anything they want to say or answer your questions, and I'm available to answer any questions.

Councilman Nutter

Thank you. Thank you, Mr. Lombardo. Let me just put on the record for the Chair and my colleagues, this particular parcel is virtually dead-center to a larger revitalization strategy for Lancaster Avenue. I believe it is critical to the Lancaster Avenue revitalization project. We've had some meetings with the Planning Commission and other community people about it. I fully and overwhelming support this particular bill and look forward to this project getting underway as well as it being the generator for other redevelopment activities on Lancaster Avenue. Thank you, Mr. Lombardo.

Mr. Pollock

Members of the Committee, President Verna, my name is Stephen Pollock. I represent Mr. David Groverman of 95 10/31/00 - RULES - BILL NO. 000544 Grover Properties. Mr. Groverman's over by the board. I just want to give you a view of the existing warehouse structure that's about 200,000 square foot. What we will be doing is renovating this, tearing down a portion so that after it's done, what you will be facing is a shopping center that will have about 110,000 square feet. We feel it will generate about 100 jobs. We will be keeping about half the structure, so that we will be using this facility. Mr. Groverman has met with the Carol Park community, the Overbrook Farms community, and also the Overbrook Neighborhood Council, and we believe that they have submitted letters to Councilman Nutter to show their support. We had previously come before Council back in 1997 and Council had passed an ordinance, Bill 970399, which I have copies, which allows -- and we will be back again with this one. To square off the property and take a triangular piece of Lancaster Avenue to give us a squared-off property that will give better site lines for Lancaster Avenue as well as provide additional parking space. 96 10/31/00 - RULES - BILL NO. 000544 I do have, just briefly, a location map, a zoning map, and a subject site plan that shows you this triangular piece and a copy of the previous ordinance for Members of Council we could add to the record.

Council President Verna

You don't have to get up; someone will pick it up.

Mr. Pollock

Okay. We were delayed in 1997 due to some site conditions that we've finally worked out. That's why we are back now at this time in the process. The site plan that I have refers back to the ordinance that was previously passed that shows the triangular piece. That ordinance will be making its way through, but we are still in negotiations to finalize a water and sewer easement location with the City Water Department and Streets Department.

Council President Verna

Thank you. Are there any questions from members of the committee? (No questions.)

Councilwoman Verna

No questions.

Mr. Pollock

Thank you. 97 10/31/00 - RULES - BILL NO. 000544

Council President Verna

Do we have anyone else to testify on this bill? (No response.)

Council President Verna

Thank you very much.

Mr. Pollock

Thank you very much.

Council President Verna

This concludes the public hearing. Mr. Lombardo, is there a need for a suspension of the rules? I'm sorry I didn't hear you.

Mr. Pollock

Yes. If we could, it would be fine. We have another companion bill 15 which is still making it's way through --

Councilman Nutter

Just say yes. Mr. Pollock, say yes.

Councilman Nutter

Thank you.

Mr. Pollock

I defer to the Councilman.

Council President Verna

This concludes the public hearing. - - - 98 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON RULES - - - Tuesday, October 31, 2000 - - - Public Meeting conducted by the Committee on Rules, held in Room 401, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILLS 000397, 000536, 000541, 000544, 000601, 000607, 000708 - - - PRESENT: COUNCIL PRESIDENT ANNA C. VERNA, Chair COUNCILMAN JAMES F. KENNEY, Vice Chair COUNCILMAN DARRELL L. CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK DICICCO COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL - - - 99 10/31/00 - RULES - PUBLIC MEETING

Council President Verna

We will now go into our public meeting, and the Chair recognizes Councilman Clarke regarding Bill 5 000397.

Councilman Clarke

Thank you, Madam Chair. Madam Chair, I make a motion that Bill 8 000397 be reported out with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been moved seconded that Bill No. 000397 be reported out of committee with a favorable recommendation. All in favor will signify by saying aye. Those opposed? The ayes have it and the motion is carried. The Chair recognizes Councilman O'Neill regarding Bill No. 000536.

Councilman O'Neill

Madam Chair, I move that Bill No. 000536 be reported out of this committee with a favorable recommendation and a recommendation that the rules of Council be suspended to allow first reading at our next 100 10/31/00 - RULES - PUBLIC MEETING Council meeting. (Duly seconded.)

Council President Verna

It's been moved and seconded that Bill No. 000536 be referred out of committee with a favorable recommendation, also a recommendation that the rules of Council be suspended so as to permit first reading at our next public meeting. All in favor will signify by saying aye. Those opposed? The ayes have it and the motion is carried. The Chair recognizes Councilman DiCicco regarding Bill No. 000541.

Councilman Dicicco

Thank you, Madam President. I move that Bill No. 000541 be reported out of committee with a favorable recommendation. (Duly seconded.)

Council President Verna

It has been moved and seconded that Bill No. 000541 be reported out of committee with a favorable recommendation. 101 10/31/00 - RULES - PUBLIC MEETING All in favor will signify by saying aye. Those opposed? The ayes have it and the motion is carried. The Chair recognizes Councilman Nutter regarding Bill No. 000544.

Councilman Nutter

Thank you, Madam Chair. I move that Bill No. 000544 be reported out of this committee with a favorable recommendation and a further recommendation that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.)

Council President Verna

It has been moved and seconded that Bill No. 000544 be reported out of committee with favorable recommendation, also a recommendation that the rules of Council be suspended so as to permit first reading at our next Council session. All in favor will signify by saying aye. Those opposed? 102 10/31/00 - RULES - PUBLIC MEETING The ayes have it and the motion is carried. The Chair recognizes Councilman Clarke regarding Bill No. 000601.

Councilman Clarke

Thank you, Madam Chair. Madam Chair, I move that Bill 000601 be reported out with a favorable recommendation and that the rules of Council be suspended as to allow first reading on the next calendar. (Duly seconded.)

Council President Verna

It has been moved and seconded that Bill No. 000601 be reported out of committee with a favorable recommendation, also a recommendation that the rules of Council be suspended so as to permit first reading at our next Council session. All in favor will signify by saying aye. Those opposed? The ayes have it and the motion is carried. The Chair recognizes Councilman O'Neill regarding Bill No. 000607.

Councilman O'Neill

Madam Chair, I 103 10/31/00 - RULES - PUBLIC MEETING move that Bill No. 000607 be reported out of this committee also a recommendation, also a recommendation that the rules of Council be suspended to allow first reading at our next meeting. (Duly seconded.)

Council President Verna

It's been moved and seconded that Bill No. 000607 be reported out of committee with a favorable recommendation, also a recommendation that the rules of Council be suspended so as to permit first reading at our next Council session. All in favor will signify by saying aye. Those opposed, nay. The ayes have it and the motion is carried. The Chair recognizes Councilman Nutter regarding Bill No. 000608.

Councilman Nutter

Madam Chair, I move that Bill No. 000608 be reported out of this committee with a favorable recommendation, a further recommendation that the rules of Council be suspended so as to permit first reading at our 104 10/31/00 - RULES - PUBLIC MEETING next session. (Duly seconded.)

Council President Verna

It's been moved and properly seconded that Bill No. 000608 be reported out of committee with a favorable recommendation, also a recommendation that the rules of Council be suspended so as to permit first reading at our next session. All those in favor will signify by saying aye. Those opposed? The ayes have it and the motion is carried. This concludes the public meeting of the Committee on Rules. Thank you all very much. (Adjourned at 12:20 p.m.) - - - 105 C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of October 31, 2000, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE ON RULES BILL NO.'S 000397, 000536, 000541, 000544, 000601, 000607, 000608 __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter