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Minutes

Committee Hearing, February 25, 2002

Philadelphia City Council Committee HearingsFeb 25, 2002

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.

Organizations mentioned

Councilman Rizzo

When I travel through the government, I see some really fancy things, the highly-colored notepads and the clips and distinctive coloring of paper clips and, you know, the good old-fashioned paper clip that costs -- you know, you get a zillion of these for, what, 99 cents? But Staples gives you red, white and blue, which are okay, but it seems to me that that very limited catalog isn't very limited. And I'd love to go through some of the 00425 orders, which I hope the -- is it the Procurement Department that manages -- who manages the Staples process so you can see what's going on in the Water Department, the Recreation Department and about how the money's being spent and what we're buying there? This is -- I see Janice Davis, like, upset with this question, but you're here --

Councilman Rizzo

Just remember, this is the budget hearing.

Councilman Rizzo

If they're going to squander on red, white and blue and pink and yellow paper clips and stick-ons that the average business doesn't use, then the taxpayers' money isn't being (indiscernible). Before there's more indictments, I think you'd better --

Ms. Davis

No, I agree, I --

Councilman Nutter

-- make sure that it is as tight a system as can be. And if you're annoyed by the fact, with your expression, and I'm just reading your expression, remember why you're 00426 here. This isn't a day that we're just coming in to say hello to each other.

Ms. Davis

No, I agree wholeheartedly with you. And, in fact, the expression was because I, too, have seen those different-colored paper clips. I'm from the old school that recycles everything, so I have a drawer of the old ones that are used over. But I recognize what you're saying. I'm just giving Procurement an opportunity to answer.

Councilman Rizzo

And, again, to finish, I would like to -- I haven't met the Procurement Commissioner yet, but I would like to sit down -- and just out of curiosity, just get a sampling of what we're buying through this Staples catalog. Again, many times, it's good for the corporate world, because in the corporate world in many cases, it's well-managed. But, unfortunately, we try to adopt systems that the rest of the world uses, and guess what, we don't properly manage them and we have indictments.

Mr. Gamble

Well, Councilman, let me 00427 say that I will -- I'm looking forward to sitting down and meeting with each and every Councilmember, and I will bring with you items that we have put on the contract that says that these items are the only ones that can be purchased. Now, if the item is not on the contract, they cannot buy them, and we do not monitor, per se; each department does their own monitoring as far as making sure that the person who orders them has the authorization to do so. But we will bring to the meeting any information we have regarding that.

Councilman Rizzo

Again, I'm not concerned about items that are blacked out; I'm just curious as to who sat down and decided whether you can buy a 14-karat gold staple machine. In other words, I would just like to see a sampling of what is being purchased. I have no problems with people having good tools to work with, but when you develop a system that could get people into trouble, I have a problem with that.

Mr. Gamble

Well, what we have is a specification writer who is responsible for putting 00428 together the specifications, and the specifications are very, very tight as far as making sure that it's not extravagant.

Councilman Rizzo

Just out of curiosity, since I'm on the Public Property Committee, I'd like to see a sample of maybe a couple dozen orders that I get to pick to look at, or just a big stack of them, just to see, as an example throughout this government -- how much money are we spending with Staples a year? You're a new guy, so I'm not going to --

Mr. Gamble

We'll get that information to you.

Councilman Rizzo

Do you have a figure of how much we spent on this contract? (Mr. Gamble confers with colleagues off the record.)

Mr. Gamble

Approximately a million and a half a year.

Councilman Rizzo

That's a lot of paper clips. Just kidding.

Councilman Nutter

What color? (Laughter.)

Councilman Rizzo

Yeah, what color? 00429 And the management of that. Who pays if Recreation orders two zillion yellow legal pads and staplers and Rolodexes and Palm Pilots and things like that? Where does the money come from; their budget, or does it come from the Procurement Department? Who pays the bill?

Ms. Davis

It comes from their budget.

Councilman Rizzo

Okay, I'm going to really be interested in taking a good look at that. Thanks.

Mr. Gamble

You're welcome.

Council President Verna

Councilman Rizzo, I'm assuming if that if this were to be implemented --

Councilman Rizzo

It is implemented, it's in place.

Council President Verna

It is in place?

Mr. Gamble

He's talking about the online for Staples contract, not e-procurement.

Council President Verna

No, we're talking about the cards.

Mr. Gamble

Right, the card is not -- no, no -- 00430

Council President Verna

The cards are not out yet?

Councilman Rizzo

The Staples deal that I just described is in place.

Councilman Rizzo

And, again, in all fairness, it's implemented all over the world where Janice Davis came from and corporations throughout Philadelphia, but, but if it's not managed, I really need to know more about how an -- if an employee wants to supply the Boy Scouts and Girl Scouts pens, papers and other gadgets, can they just go to the computer and order all of that? And that's in place right now, that process that I just described.

Mr. Gamble

No, as far as the e-procurement card is concerned, we are actually at the beginning of the talking stage. We're not at a point now where we have a program in place. So that does not exist as of now. But before that is implemented, we will have a system that is very tight to make sure that we do not have people buying things that they're not authorized to buy. 00431

Council President Verna

I am assuming, Councilman, that if in fact this program were ever implemented, for instance, in City Council, either Bob Johnson or Martha Angell would have a card only to be able to purchase something from Staples so that we wouldn't have to wait for another company to deliver it like six months hence.

Councilman Rizzo

Madam President, we're confusing two issues. The Staple ordering is already available to City employees. There's two -- if you look at , you'll see Staple online ordering; that has nothing to do with the other card that is mentioned.

Mr. Gamble

Well, Staples is not a procurement card; it's an online--

Councilman Rizzo

It's online, which even makes it more --

Mr. Gamble

They have a contract for office supplies, is basically what they have a contract for.

Councilman Rizzo

For a million and a half --

Council President Verna

Well, who can 00432 use the Staples online?

Councilman Rizzo

That's my question.

Council President Verna

Miss Davis, can you tell us who --

Ms. Davis

The same person you identified as being the person you would entrust the procurement card to, whoever is in charge of ordering supplies within your office is the person who would have access to Staples. And they are purchasing, in fact, against a purchaser order; it's not just sort of a random go-ahead and purchase. There are purchase orders that have been bid and are out there for certain items. So it is whoever the director or head of the department or office identifies as the person responsible for purchasing; that is the one who can place an order against the Staples online system.

Councilman Rizzo

And, again, it works, it works well, but I'm questioning the oversight, the audit of that. Who -- if you gut a person in a particular department that's entrusted with this 00433 online ordering through Staples and they start to abuse that, where's the checks and balance? Who gets the report; does the commissioner of that department get a report to see that in that particular month that 900 widgets were ordered and ask the question why?

Ms. Davis

It depends on how that department handles the processing of their invoices.

Councilman Rizzo

Then there should be -- there should obviously be --

Ms. Davis

Every department should have someone other than the person who is placing the order looking at those invoices as they are coming in.

Councilman Rizzo

It should be mandated. This is the kind of a -- this is the kind of a process that should have a specific directive on how it's handled. Not, again, Recreation does it one way, the Police Department another, the Fire Department another. There should be an administrative procedure that requires that these orders on a monthly basis, or however they're billed, that the 00434 commissioner of that department should be responsible to say, Yes, everything that was purchased during this particular month was appropriate. And they're the ones that are going have their feet held to the fire if there's abuse. Again, this works and it works well, but I don't want to see a blank check with an employee of the Water Department having a card that gives them the ability to go to Home Depot or to one of the other convenience stores to buy, like Councilman Kenney said, a bucket of tar or a valve when they're out on a job and it breaks and they need a 2-inch water valve and it's better to go 5 blocks than 20. I understand the concept. But let me tell you, if we don't have checks and audit of these various privileges -- and I say "privilege" -- that we're going to wind up two years from now reading about it in the newspaper or hearing about it on KYW.

Ms. Davis

If we do implement the procurement card, we will have very stringent guidelines for their use and a process not only for ensuring that they're used, but penalties if they're abused. 00435

Councilman Rizzo

It's called "jail." (Laughter.)

Councilman Rizzo

Thank you. Thank you, Madam Chair.

Council President Verna

You're welcome. Mr. Gamble, please elaborate on what the Strategic Marketing Plan Initiative is. One of the items you mentioned is naming rights.

Mr. Hillock

Harry Hillock. We have a request for proposal that we're trying to hire a consult and --

Council President Verna

I'm sorry, sir.

Mr. Hillock

They're exploring the possibility of hiring a consultant to see if there's any opportunities to, how should I say, sell the City's name -- (indiscernible) rights, vending, that type of situation.

Council President Verna

I'm sorry. You're going to have to repeat that because I did not understand a word you said. There's noise in the background and your voice was not coming over very clearly. 00436

Mr. Gamble

There's a request for proposal that's out basically for the City to sell its name for items that has City logos or City emblems that the City can use to receive resources of revenue from. That right now is in the process of -- the proposals came in already.

Councilman Ortiz

Point of clarification, please.

Council President Verna

Can we see a copy of that proposal, Mr. Gamble, please/

Mr. Gamble

Yes, yes, we can.

Councilman Ortiz

What does it mean? Really, I'd like a fuller explanation of this. What are we selling and to whom are we directing this marketing plan?

Mr. Gamble

We'll get you the information.

Councilman Ortiz

But I'd like some idea what they mean by this.

Mr. Gamble

Well, let me explain what other cities do because I'm really coming in on the tail-end of what -- in a lot of cities, what they do is that, for instance, they sell items like the city's emblem or if a (indiscernible) has a city 00437 emblem on it, for instance, maybe a person's interested in having a sign that says "The City of Philadelphia," and they're willing to buy it, and the City sells it and uses that revenue to make money.

Councilman Dicicco

Madam Chair?

Council President Verna

Excuse me, 629. (Laughter.)

Councilman Dicicco

I know a little bit about this because of my role as a member of the Visitors and Tourism Bureau. I think what we're talking about is, there has been some discussion that items that Identify Philadelphia -- be it -- whether they're pins, pendants, cups, souvenirs that you would buy, that the City believes that we can, and should, have a trademark or a patent, if you will, for lack of a better explanation, to receive some of the revenues from marketing the name "Philadelphia" on various items. As would, I guess, the NBA would receive certain royalties -- Jim Kenny's laughing, "Philadelphia sneakers." But the MBA and sports affiliations and leagues get certain revenues for 00438 items that have their name attached to it or their logo. I think that's what's being considered. And the consultant piece I'm not absolutely sure of, but I think they're looking for a company that does marketing.

Councilman Kenney

Philadelphia Cream Cheese?

Councilman Dicicco

Yes. Even though it's not made here, but that's okay. But I think that's what they're talking about. Is that a fair assumption?

Mr. Gamble

Yes, that's right.

Council President Verna

Thank you, Councilman. Okay, Mr. Gamble, you state that the City is interested in exploring potential marketing opportunities for City assets as a vehicle to increase revenues, invest in its infrastructure, and create community-based programs to improve the quality of life in the City neighborhoods. Does the Administration believe that they can market City assets without the approval of City Council?

Ms. Davis

No, we would not be -- in 00439 the marketing of the City assets, as anticipated in this, would be the use of City structures, City benches, City vehicles, and identify a particular vendor with that field, someone who would be willing to pay the City a licensing fee for having their name displayed. We recognize fully that if we are to sell any piece of City equipment or infrastructure or real estate or any other assets, that it has to be approved by City Council. In essence, it's marketing the use of the asset as part of a plan to identify that with particular vendor. It's naming rights. The way naming rights for a stadium are sold, this RFP anticipates naming rights for other City assets.

Council President Verna

I think we all need a copy of that. You mentioned about vehicles. Did you mention something about vehicles? What does that mean, that if the City emblem were put on a vehicle?

Ms. Davis

No, you would not put a City emblem on a vehicle; instead, you put a vendor's emblem on a City vehicle, such as SEPTA 00440 does when it shrink-wraps some of its buses. That's what's contemplated by this RFP. It's not so much selling our emblem to put on something else, but allowing our assets to be used as vehicles for identification with certain vendors.

Councilman Kenney

Madam President?

Council President Verna

The Chair recognizes Councilman Kenney.

Councilman Kenney

This is the same administration that vetoed a bill that would have allowed wall wraps but now want to put logos of companies on City property. I mean, it seems to be, like, totally unbelievable. I mean, what property; buildings, benches?

Ms. Davis

We're not involved in this RFP, but we'll get more detailed information on this RFP to you.

Councilman Ortiz

(Inaudible, off-mic.)

Councilman Kenney

This is exactly the reason why -- I mean, this bill was vetoed for that reason, and now we're going back and we're pursuing it? 00441

Councilman Ortiz

We could have a big neon sign on top of Billy Penn's hat that says "Drink Coke" or "Drink Pepsi"?

Council President Verna

Miss Davis, would you mind forwarding to our attention a copy of the proposal.

Ms. Davis

We'll provide that.

Council President Verna

Thank you. Mr. Gamble, your department seems to be working on quite a number of projects. How are you able to cover the cost of the studies and consultants with the same budget you had in FY '02? And it's quite apparent that you're certainly going to have, as far as I can see, an increase in your workload.

Mr. Gamble

Madam President --

Council President Verna

And then you have the cost of studies and consultants. How are we going to be able to do that with the same budget?

Mr. Gamble

Well, first of all, we have -- the items that we have identified we have within our budget allocations for that. As far as consultants are concerned, we 00442 really are not using any outside consultants; we're using our MIS Director, who will be responsible for putting together initiatives and working with MOIS and also with the Mayor's Office to make sure that everything is coordinated through them. So we won't be using outside consultants on these small projects, but now we are working with MOIS and the CIO to make sure that we become a part of the RFP that's out there now for this, and this will not -- actually, we're looking at how much it's going to cost us if we're going to implement it, but we're not a point now of implementing any major changes that's going to result in our large amounts of money.

Council President Verna

Thank you. And again, I welcome you.

Mr. Gamble

Thank you.

Council President Verna

I know that Councilman Clarke was next, but he apparently had to leave. Councilman Nutter.

Councilman Nutter

Thank you, Madam President. First, good afternoon. 00443

Mr. Gamble

Good afternoon, Councilman.

Councilman Nutter

Welcome to Philadelphia. We had an occasion to speak before I had actually met you; I only knew you over the phone, but I have figured out fairly early on that you must be you --

Mr. Gamble

That's correct.

Councilman Nutter

-- up at the table. And so I do want to welcome you and I look forward to working with you. And your predecessor, we never liked him anyway -- I don't remember his name. (Laughter.)

Councilman Nutter

I'm only playing.

Mr. Gamble

Thank you.

Mr. Nutter

And some smart aleck will say that right after you leave.

Mr. Gamble

I am sure.

Councilman Nutter

No, we enjoyed Mr. Applebaum. Lou is a very good guy Let me say in the area, I've heard all of the points of order, information and clarification going back and forth. In the 00444 strategic-marketing plan, now, first this RFP has been issued; is that correct?

Mr. Gamble

That's correct.

Councilman Nutter

Okay. And I think I heard the Chair request a copy of it?

Mr. Gamble

That's correct.

Councilman Nutter

Is that also available possible online or through e-government.

Mr. Gamble

No, it's not.

Councilman Nutter

It is not, okay.

Council President Verna

Excuse me, Councilman. Please forward to my attention 14 copies, if you will, so that we don't have to copy 15 and everybody could get one in a timely fashion. 16

Ms. Davis

I made of that, Madam 17 President.

Councilman Nutter

Yeah, I was going to say you'll probably have Staples do it? (Laughter.)

Mr. Gamble

Yes, I will.

Councilman Nutter

Now, where did this idea come from?

Mr. Hillock

It originated in the Managing Director's Office. 00445

Councilman Nutter

Okay. How long ago?

Mr. Hillock

About six to eight months ago, I can't quite remember.

Councilman Nutter

And who specifically?

Mr. Hillock

The Managing Director was the push behind us, Joe Martz.

Councilman Nutter

So at the time, it was Joe Martz, okay. And so it's just kind of continued on its merry way of --

Mr. Hillock

It's probably on hold point. I don't think there's been much activity on it.

Councilman Nutter

Okay. Tell me a little bit -- I mean, has this taken place in other cities? Are any of you familiar with similar proposals in other cities?

Mr. Gamble

There are other cities, Councilman, that have done something like this. I'm not sure exactly the names of them, to be honest with you, but I've heard where the City of San Diego, I think, was doing something similar to this but not maybe along the same line, but they 00446 had utilized -- or they're utilizing basically a store that the city operates, that it passes out or it sells items to the public.

Councilman Nutter

Mm-hmm.

Mr. Gamble

But now, as far as advertising for anyone, I don't know about that.

Councilman Nutter

All right, okay.

Ms. Davis

If I might add, it's most often used in school districts where they will be particularly --

Councilman Nutter

Pouring rights --

Ms. Davis

Yeah, the pouring rights.

Councilman Nutter

Yeah, I know I saw, I think, one of these -- Mr. Gamble talks about these stores. I think I saw one of these stores in San Antonio near the Riverwalk.

Ms. Davis

San Antonio has one, Dallas has one.

Councilman Nutter

You can buy parking meters, street-name signs with your name on it or other names on it; I mean, just about anything that the government might have.

Councilman Nutter

You know, fire 00447 plugs, all that stuff, which -- I don't know why you would want one of those, but --

Councilman Dicicco

Mannequins, Councilmember?

Councilman Nutter

Mannequins. Yes, I saw a couple burned in effigy while I was out there. It was probably over some redistricting issue or something. (Laughter.)

Councilman Nutter

Now, I mean, on a city facility or if you talk about vehicles, I mean, would this be like "Philadelphia Water Department brought to you by Poland Springs" or something? I mean, this becomes -- in essence, it is a moving advertisement of a variety of City vehicles with someone's name on it; I mean, is that what it comes down to?

Ms. Davis

We'd have to determine how it would be used. I don't think they are yet in a process of developing when and where it would be used. This is the very early stage of the review of these RFPs, and so I wouldn't want to make a statement about when and how they will be used; I think 00448 that's yet to be determined, as is whether or not we will actually go forward with something. It was just something that was being explored. It is being considered, and no determination has been made.

Councilman Nutter

Okay. Last question in this area. Just for the record, I mean, would this be considered in the realm of a concession?

Mr. Gamble

Yes, it could be, yes.

Ms. Davis

It could be of a concession nature but, again, we've not done enough work on this to make any determinations at all.

Councilman Nutter

Okay, gotcha, all right. Mr. Gamble, let's go back to the item that we actually met over the phone regarding, which was voting machines

Councilman Nutter

Can you give us an update on what's going with the voting machine transportation contract?

Mr. Gamble

Well, we're in the process of awarding the contract to the lowest bidder. We 00449 have sent them a letter of award, and there's some things that they have to do in order for to us finalize the contract.

Councilman Nutter

Okay. Do you believe that you have found and -- I mean, these words generally go together, "lowest responsible bidder?" Because I think those two components ultimately serve as the deciding factor as to whether someone wins the bid. You need both elements; is that correct?

Mr. Gamble

That's correct, Councilman.

Councilman Nutter

Okay. And do you believe, based on the information that you have today, that you have found the lowest responsible bidder that can actually do this job?

Mr. Gamble

I feel I do, yes.

Councilman Nutter

Okay, thank you. I asked this question earlier, but it was somewhat out of turn or with the wrong department. What are the numbers in the last fiscal year, or for any year recently, that have you might have numbers on with regard to participation by either minority, female, or 00450 disadvantaged businesses for, I think, the three levels of City work, which I -- or maybe there are two. I know there's services, supplies and equipment, professional services, and maybe there is Public Works. And I'd like to understand that. First I'd like to know what the answer is, and then I'd like to understand it specifically on the Public Works side in the context of two major projects that are going on right now in the City generally referred to as "The Eagles Stadium" and "The Phillies ballpark." Give me the first answer first. - - - 00451 2/25/02, COMMITTEE OF THE WHOLE, BILL 02001 - - - - - - (Council proceedings now being stenographically recorded by Meghan Martella.) - - - - - -

Mr. Roundtree

Good afternoon, my name is James Roundtree. I'm the Director of the Minority Business Enterprise Council. For last Fiscal Year the disadvantage business contracts for bid were 33 --

Councilman Nutter

Mr. Roundtree?

Councilman Nutter

Please, slow down a little bit.

Councilman Nutter

You've been here a million times. I know you're not nervous.

Mr. Roundtree

No, I'm not nervous.

Councilman Nutter

Okay, go ahead?

Mr. Roundtree

33 million -- $33.5 million for all bid. And those are the three categories. The Public Works, service, supply and equipment. If you would like a further 00452 2/25/02, COMMITTEE OF THE WHOLE, BILL 02001 breakdown, for minority --

Councilman Nutter

Public Works service, supply and equipment and professional services?

Mr. Roundtree

No, Public Works.

Councilman Nutter

Public Works?

Mr. Roundtree

Yes, these are all the bid contracts.

Councilman Nutter

$33.5, what does that represent?

Mr. Roundtree

Minority, women and disabled business participation in those four categories.

Councilman Nutter

What four categories?

Mr. Roundtree

Public Works, service, supply and equipment.

Councilman Nutter

Okay, I'm sorry. I'm putting service supply and equipment generally together. And $33.5 million out of how much?

Mr. Roundtree

$278.3 million.

Councilman Nutter

And that sounds like about 15 percent? 00453 2/25/02, COMMITTEE OF THE WHOLE, BILL 02001

Councilman Nutter

What was the actual number on the public work side?

Mr. Roundtree

For minority business, it was $18,798,974; for women business it was $7,906,079; and for disabled businesses it was $98,466. Do you want supplies too?

Councilman Nutter

Yes.

Mr. Roundtree

That was Public Works. For supplies it was $2,079,570; for women business --

Councilman Nutter

$2 million --

Mr. Roundtree

$79,570. And then that was 3.9 percent of the total amount for supplies of $53.9 million.

Councilman Nutter

I'm sorry, what was that last number?

Mr. Roundtree

The total number of supplies was $53,360,083.

Councilman Nutter

And you are saying that the number for service, supply and equipment for minority firms was $2 million?

Mr. Roundtree

The number for minority on supply, not service supply. I'm 00454 2/25/02, COMMITTEE OF THE WHOLE, BILL 02001 just giving you one category -- each category at a time. If you would like, I can provide this information for you in written versus reading it into the public record.

Councilman Nutter

That would be very helpful, but what I was trying to understand was, I thought you said that the total for Public Works and service, supply and equipment was $33.5 million?

Councilman Nutter

Out of a total of $278.3 that was actually bid?

Councilman Nutter

Is that correct?

Councilman Nutter

Giving a 12.1 percent?

Councilman Nutter

What I want to know is out of the four categories what was the total just for Public Works?

Mr. Roundtree

$18 million --

Councilman Nutter

Seven hundred?

Mr. Roundtree

Yes. 00455 2/25/02, COMMITTEE OF THE WHOLE, BILL 02001

Councilman Nutter

And what was the $7.9 million figure?

Mr. Roundtree

For women business participation.

Councilman Nutter

And then $98 thousand for --

Mr. Roundtree

Disabled.

Councilman Nutter

So out of the $33.5 million, it looks like about $26, $27 million is on the public work's side?

Councilman Nutter

And out of the $278.3 million, how much of that is Public Works?

Mr. Roundtree

$186,474,360.

Councilman Nutter

I guess maybe, therein, lies part of the problem. You are saying that we had $186 million worth of Public Works projects last year?