COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE OF THE WHOLE3 Room 400, City Hall6 Philadelphia, Pennsylvania Tuesday, April 5, 20117 10:40 a.m. PRESENT: COUNCIL PRESIDENT ANNA C. VERNA10 COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN DARRELL CLARKE11 COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN BILL GREEN12 COUNCILMAN WILLIAM K. GREENLEE COUNCILMAN CURTIS JONES, JR.13 COUNCILMAN JAMES KENNEY COUNCILWOMAN DONNA REED MILLER14 COUNCILWOMAN MARIA D. QUINONES-SANCHEZ COUNCILWOMAN BLONDELL REYNOLDS BROWN15 COUNCILMAN FRANK RIZZO, JR. BILLS 110135, 110136, 110137 and 110138 RESOLUTION 11016118 - - -20 2
Good2 morning, everyone. I regret the delay.3 This is a continued public4 hearing of the Committee of the Whole.5 The Chair recognizes6 Mr. McPherson.7 MR. McPHERSON: This is a8 continuation hearing on Resolution9 110161, the City's Five Year Plan; Bill10 No. 110135, the Capital Program for 201211 through 2017; Bill No. 110136, the12 Capital Budget for 2012; Bill No. 110137,13 Operating Budget for 2012; and Bill No.14 110138, the wage tax.15 Today we're continuing16 testimony on Bill No. 110137, the17 Operating Budget, and our first18 department is the Office of City19 Representative.20 (Witnesses approached witness21 table.)22
Good2 morning. Welcome. Please identify3 yourself for the record and proceed with4 your testimony.5
Good morning,6 President Verna and members of City7 Council. My name is Melanie Johnson and8 I am the City Representative.9 COUNCIL PRESIDENT VERNA:10 Please proceed.11
I am here to12 present testimony on behalf of the Office13 of the City Representative FY12 Operating14 Budget request of $907,766, which15 provides no changes over FY11 target16 obligations. In the upcoming fiscal17 year, the Office of the City18 Representative includes seven staff19 positions. 24 The Office of the City25 4/5/11 - WHOLE - BILL 1101371 Representative is responsible for2 promoting and marketing the City of3 Philadelphia. This is achieved through4 developing and promoting events to5 attract commerce and enhance economic6 value, attract visitors and new residents7 to Philadelphia, and improve the leisure8 options and quality of life for the9 people who live here. Our office also10 works closely with various agencies such11 as Philadelphia Convention and Visitors12 Bureau and the Greater Philadelphia13 Tourism and Marketing Corporation to14 market Philadelphia and to create joint15 strategies that increase our overall16 success in this effort. 13 During this fiscal year, the14 Department of the City Representative15 reduced its budget by 33,825 through16 reductions in the Class 200 professional17 services appropriations. Notwithstanding18 these reductions, this office has been19 able to carry out some important20 accomplishments in FY11. 7 The OCR worked very closely8 with the organizers of the Dad Vail9 Regatta in order to retain their event in10 Philadelphia. In this endeavor, we11 helped secure our multi-year title12 sponsor. 2 Bringing together previously3 independent events in the first year-long4 regatta series in the United States, the5 2011 debut season of the Philadelphia6 Classic Regatta Series is expected to7 attracted over 35,000 competitors in over8 7,700 boats representing high school,9 college, club, open and masters program10 from around the country. 15 In close partnership with the16 Center City District and the Commerce17 Department, the OCR continued to18 participate in the Philadelphia Retail19 Marketing Alliance, which attracts new20 retailers and retains existing ones. The21 marketing campaign has grown, featuring22 local retail success stories and links to23 the Commerce Department's Business24 Services Portal to facilitate new25 8 4/5/11 - WHOLE - BILL 1101371 business creation. Additional public2 relations efforts have yielded coverage3 in national publications that is both4 consumer oriented and industry/trade5 focused. 19 The goals of this effort include20 promoting citywide shopping, enhancing21 revenue for businesses, attracting new22 retailers, creating enjoyable experiences23 for visitors and residents, enhancing the24 profile of our design schools and25 9 4/5/11 - WHOLE - BILL 1101371 students, and increasing hotel room stays2 and hospitality spending. 7 The interest from journalists and8 publishers has continued over the last9 six months. 13 In December, the newest14 attraction on Independence Mall opened15 after years of planning and construction,16 the President's House. The OCR produced17 the official ribbon-cutting attended by18 over 500 cultural leaders, historians,19 elected officials, school students and20 the general public. Through public21 relations efforts, the media attention22 was national, garnering coverage in the23 New York Times and Wall Street Journal,24 as well as locally. The photographs of25 10 4/5/11 - WHOLE - BILL 1101371 the events also appeared nationally2 through AP and Getty Images. 8 With assistance from the9 Department of Records, the OCR initiated10 a photographic archive and digitizing11 project to preserve historic pictures,12 documenting many of Philadelphia's13 treasured moments. org, and it is16 a very efficient research tool for17 historians and scholars. 20 For Welcome America, one of the21 largest events produced by the OCR, we22 secured a new three-year title sponsor,23 Wawa, representing an increase of 4024 percent in revenue over the previous25 11 4/5/11 - WHOLE - BILL 1101371 title sponsor.
In festival events, we2 extended our neighborhood presence by3 adding a block party event in the4 Chinatown section of Philadelphia to help5 highlight the cultural and hospitality6 resources there. Other expanded7 activities for children and families8 yielded a 30 percent estimated increase9 in attendance for the Go 4th and Learn10 series and the Philly at the Movies11 series. 17 The Philadelphia Marathon18 Weekend grew from 16,000 participants in19 2008 to 25,000 participants in 2011. com, the premier race23 industry authority. The marathon24 attracts visitors from 40 countries and25 12 4/5/11 - WHOLE - BILL 1101371 all 50 states and is one of the strongest2 economic event drivers in the City and3 regional economy. 7 With partners PCVB and GPTMC,8 the OCR is working on hospitality9 strategies to drive demand for hotels,10 restaurants and related amenities to11 visitors and regional residents. S. Office of19 Tourism. 23 Working with the Commerce24 Department, the Consular Corps of25 13 4/5/11 - WHOLE - BILL 1101371 Philadelphia as well as the Sister Cities2 program through the International3 Visitors Council, we are developing4 longer-term international strategies for5 increasing international visitation and6 commerce and attracting new residents to7 Philadelphia from other countries. One8 such strategy has been identifying and9 training an "ambassador" to promote10 Philadelphia in her native country. 17 We are implementing ways to18 measure outcomes and success of Welcome19 America through partnering with Temple20 University. 10 Our prospective initiatives11 planned include: The Mayor's12 5k walk/run. gov for4 visitors, tourists, residents,5 highlighting events, hotels and6 retailers, among other items. 18 The Department of the City19 Representative's budget appropriations20 request of 907,766 represents a zero21 increase in last year's allocation. 25 16 4/5/11 - WHOLE - BILL 1101371 The Office of the City2 Representative is committed to supporting3 the Administration's goal of 25 percent4 minority, woman and disabled-owned5 business participation in City6 contracting. 10 In addition to its role in11 promoting and marketing the City of12 Philadelphia through a variety of13 strategies, the Office of the City14 Representative also serves as a managing15 conduit for a variety of stakeholder16 entities. These stakeholder entities17 engage in cultural and City-related18 activities and include the Greater19 Philadelphia Film Office and Historic20 Philadelphia, Inc. The Office of the21 City Representative produces the Welcome22 America July 4th Festival and the23 Philadelphia Marathon. The stakeholder24 entities as well as the two OCR-produced25 17 4/5/11 - WHOLE - BILL 1101371 events participate in the M/W/DSBE goal2 through budgets that are not reflected in3 the General Fund. 10
Thank11 you very much.12 What is your office policy with13 regards to special events and parades, so14 we don't get into this issue at a later15 date?16
What19 is your policy regarding the special20 events? And you know we always have21 parades. We have the Columbus Day Parade22 and we have the St. Patrick's Day Parade,23 Odunde Parade. I could go on and on.24 What is your policy regarding25 18 4/5/11 - WHOLE - BILL 1101371 the special events and parades?2
We work with all3 the different organizations that produce4 these events as a liaison for the Mayor's5 Office as well as the Managing Director's6 Office.7
I'm8 sorry. Could you speak more into the9 microphone, please.10
We work with all11 of the organizations that produce these12 events as a liaison for the Mayor's13 Office as well as the Managing Director's14 Office. In terms of permitting, that15 goes through the Managing Director's16 Office.17
I18 understand all about that. Are we going19 to be having the City contribute to these20 functions? You know, last year it was21 absolutely horrible, and unless22 Congressman Brady came up with the23 funding, we wouldn't have had the events24 that we had.25 19 4/5/11 - WHOLE - BILL 1101371 What will be your policy this2 year, or don't you know or haven't you3 been told as yet by the Administration?4
Well, at this5 point, those parades are scheduled to6 happen, as you said, with the Traditions7 Fund. That happened -- that helped, but8 I can't answer that question for you at9 this moment, but I can get back to you10 with some more information.11
I12 would appreciate it if you would.13 And how do you determine what14 the City's costs for these events are and15 how do you determine the amount the16 sponsor must pay?17
For the City18 events?19 COUNCIL PRESIDENT VERNA:20 That's been changing.21
I'm23 specifically talking about the many24 parades that we have, the ethics parades.25 20 4/5/11 - WHOLE - BILL 1101371
They're each2 different depending on which route they3 take, and we sit down with them to look4 at exactly what City services that they5 require, and then we base that on how6 many people are out there for either7 Streets Department, L&I, Police and so8 forth, and that's how we come up with the9 amount of money for City services.10 In terms of sponsorship for11 those events, those are independently12 produced and they usually do their own13 sponsorship.14
You15 mention in your testimony that you will16 be doing a pilot study this summer in17 order to develop a festival economic18 impact data tool. Can you tell us who19 will be doing the study and how it will20 be funded?21
Temple University22 will be doing the study, and it's part of23 a sponsorship that they are doing with24 Welcome America. So there is no amount25 21 4/5/11 - WHOLE - BILL 1101371 of money that we're paying them to do the2 study.3
Thank4 you.5 Will this study include6 community events?7
That's what it's8 for, yes, for the Welcome America events9 that we produce through the ten-day10 festival.11
No?15 Can you give us the details of16 Jazz Philadelphia for April 2011?17
Well, right now18 the Office of Arts and Culture created a19 website where we are working with the20 different venues, organizations like the21 Mann, Temple University's WRTI, as well22 as the Clef Club for them to post any23 events that are happening in April about24 jazz on this website. We also did a25 22 4/5/11 - WHOLE - BILL 1101371 partnership with Philadelphia Fun Guide2 for them to also post events, and we've3 asked all the different organizations and4 jazz artists to populate that with5 information as to what they're doing6 throughout the month. We are then7 promoting it. We have some portal --8 banners that are going up in the portal9 with a new jazz logo. We had a press10 conference to announce Jazz Month in11 April on March 28th, and then on April12 11th, which is next week, the Mayor will13 declare it Jazz Day. So those are the14 things that we're doing for jazz in15 Philadelphia.16
Very17 well. Thank you. I have one last18 question. On of your testimony,19 you mention that you have trained an20 ambassador to promote Philadelphia in her21 native country. Can you tell us who22 you're referring to?23
Yes. Her name is24 Kanika and she's from India, and she came25 23 4/5/11 - WHOLE - BILL 1101371 to us, Commerce Department, Office of the2 City Rep and the Sister Cities program,3 to suggest a program where she could4 promote Philadelphia in India, and she's5 had some really great results since she6 started last year.7
Eight students14 from India will be attending Drexel. If15 you look at the cost in terms of tuition,16 living expenses, it's about over four17 years, five years, depending on how long18 they stay in the program, about a $219 million impact on Philadelphia. So it's20 a great program so far.21 COUNCIL PRESIDENT VERNA:22 Great. Thank you.23 The Chair recognizes Councilman24 Goode.25 24 4/5/11 - WHOLE - BILL 1101371
Thank you,2 Madam President.3 Good morning, Ms. Johnson.4
I have a6 standard set of questions, which have7 been made available to you. The first8 question is, what is the largest contract9 that you will award in Fiscal Year '12?10
Does that13 firm hold the contract in this fiscal14 year?15
It's a unique22 organization. They're stakeholders, so23 there is no bid for this contract.24
What's the25 25 4/5/11 - WHOLE - BILL 1101371 contract amount?2
Basically they8 are told to promote the City of9 Philadelphia through the Betsy Ross10 House, Franklin Square, reenactments in11 Old City. They do storytelling, "Once12 Upon A Nation" storytelling, and a13 venture tour at Independence Hall and14 visits to local treasures day and night15 with historical heroes who paved the way.16 So they promote and market the City of17 Philadelphia's history.18
Is that firm19 currently in compliance with the City's20 living wage and benefits standard?21
Lastly, with23 regard to Welcome America and the24 non-profits you're working with, you say25 26 4/5/11 - WHOLE - BILL 1101371 that you're working with them to develop2 a Supplier Diversity Plan. What does3 that mean?4
You say7 you're working with the non-profits8 involved in Welcome America to develop a9 Supplier Diversity Plan. What does that10 mean?11
Oh, the OEO?16 Yes. Welcome America is a 501(c)(3). So17 basically to capture the information, we18 put together all of the minority and19 women-owned and disabled-owned businesses20 so that we can capture the information.21 And we're still working on how to get all22 of it that we have so that we'll have23 accurate numbers for it.24
The question25 27 4/5/11 - WHOLE - BILL 1101371 is, it says, The Office of the City2 Representative produces the Welcome3 America July 4th Festival and the4 Philadelphia Marathon. The stakeholder5 entities as well as the two OCR-produced6 events participate in the M/W/DSBE goal7 through budgets that are not reflected in8 the General Fund. OEO is currently9 engaging these non-profits to develop a10 Supplier Diversity Plan in their11 procurement and purchasing program.12 I'm just asking what that13 means.14
That we were15 working with them so that we can capture16 that information from the suppliers, the17 people who give us supplies or provide a18 service to Welcome America. We actually19 do have that information, but that's what20 we worked on from last year to this year.21
So in the25 28 4/5/11 - WHOLE - BILL 1101371 contract, will there be actual goals in2 the contract or how will it work?3
Thank you.9 Thank you, Madam President.10 COUNCIL PRESIDENT VERNA:11 You're welcome.12 The Chair recognizes Councilman13 Jones.14
On behalf of20 representative -- I mean Councilwoman21 Brown, I'd like to say congratulations on22 your progress in her and my colleague23 Wilson Goode's favorite question of24 inclusion. I remember last year you25 29 4/5/11 - WHOLE - BILL 1101371 struggling with the non-profit issue. I2 remember you struggling last year with3 some of the inclusion issues, not being4 able to quantify or document. You made a5 concerted effort this year to do that.6 So good cop/bad cop I guess we'll call7 it.8
I thank you both.9 COUNCILMAN JONES:10 Congratulations on forward progress.11 Is it my understanding based on12 your budget that you are not asking for13 an increase and in fact you are14 decreasing in the consultant, Class 200,15 area?16
We did that.17 That's where most of the cuts came from18 for FY11, yes. So we're not asking for19 an increase. Thirty-three thousand did20 come out of 200 last year, or FY11.21
Some of the22 issues that I'd like to segue to are, by23 way of tourism, by way of visitors to the24 City of Philadelphia over the past couple25 30 4/5/11 - WHOLE - BILL 1101371 of years, we've seen our way through what2 I hope to be the end of the recession. I3 don't want to say mission accomplished4 like the Bushes did, but we're beginning5 to see indicators that there is light at6 end of the tunnel. Is that reflective in7 the amount or was there a variation in8 the amount of tourism to the City of9 Philadelphia?10
No. We just get11 very creative in how we do partnerships12 and what we put money toward so that we13 can still accomplish what the Charter14 says our challenge is, and that's15 basically promoting the City.16
By way of17 that effort, there's not been an18 increase, decrease; it's been flat? Is19 that your -- are you saying that?20
Okay. By23 way of creative partnerships, one of the24 things that I think is a signature event25 31 4/5/11 - WHOLE - BILL 1101371 is the Welcome America. Each year we2 enjoy it as Councilmembers. It's3 something we look forward to. One of the4 things that I'm promoting is a "Philly5 First" kind of performance and wanted to6 know on the record if some of that is7 going to be considered. I like the8 Philly acts better than any national draw9 we could get. Sha Na Na is nice, but10 they don't know the difference between11 Washington Avenue and Washington Lane.12 So is there any thought of all13 of the rich talent that Philadelphia has14 produced? The Dell is beginning to pick15 up on that theme and I wanted to know if16 indeed you guys were considering that.17
Well, we are18 having a press conference on April 12th19 at 10:30 on the Art Museum steps where if20 you would be our guest, I think that you21 will like some of the things we have to22 say.23
We're not24 going to get a sneak preview today?25 32 4/5/11 - WHOLE - BILL 1101371
We sit with3 bated breath to hear some of those4 performances, and I appreciate you guys5 taking a suggestion and running with it.6 So thank you.7 One of the things that I would8 add to your forward progress is the9 possibility of targeting different10 festivals and targeting different11 industries to try to attract to12 Philadelphia. One of the biggest selling13 points of our city is that we are one14 day's truck drive away from one-quarter15 of the United States population. So we16 have -- we're strategically located17 between the political capital and18 financial capital of the United States.19 So we're a little more cost effective20 than either one of those venues.21 I was thinking like other22 cities have attracted science festivals,23 San Diego has a science festival that is24 really nice. There's an International25 33 4/5/11 - WHOLE - BILL 1101371 Festival of Arts similar to what we do up2 in Manayunk, the Arts Festival. I was3 wondering if we had considered4 strategically targeting these industries.5 I had a couple of years back a6 trip to High Point, North Carolina, and7 probably very few people even know where8 that is even with Google, but it's a9 place that focuses on furniture,10 American-made furniture, and it's like11 the furniture capital of the United12 States. But to attract different niche13 industries to Philadelphia as a14 distribution jump-off point for festivals15 and kind of tourism attractions, I wanted16 to know what your strategy was towards17 that.18
Well, in terms of19 the science festival, the Franklin20 Institute is doing a science festival21 actually this month that I think you'll22 really appreciate. It's the first time23 that they've done it in conjunction with24 the Ben Franklin Awards. So that's25 34 4/5/11 - WHOLE - BILL 1101371 something that we've worked with them,2 helping them with some things -- well,3 Margaret has, Deputy City Representative.4 And we work with PCVB in terms of5 conventions. For instance, I believe the6 Comicon, they put in a bid for that.7 So we don't have a specific8 strategy to reach out. We try and come9 up with creative ideas that we think will10 have an impact on Philadelphia. For11 instance, The Philadelphia Collection12 came out of a partnership with a number13 of different organizations. That turned14 out to be very successful, and we made it15 as number six on Forbes.com list as one16 of the best shopping districts in the17 country for Philadelphia, and prior to18 that, I don't think many people were19 paying too much attention to Philadelphia20 as a fashion capital.21 So we look and see what's going22 on, and last year it seemed as if fashion23 was something that was really hot at the24 moment. So we try and take the25 35 4/5/11 - WHOLE - BILL 1101371 temperature of what's happening, not just2 in Philadelphia but around the country,3 where we sit down with different people4 to find out whether or not they have an5 interest. And we always get inquiries6 from a number of people. Just had a7 meeting with someone who is interested in8 doing an ice carving event, and as you9 know, Manayunk did it in February, this10 February. It was very successful, and11 maybe taking that and making it citywide12 is something we're looking at.13
That is14 going to where my last question, which I15 asked last year, which in tough budget16 times, you have to be frugal about how17 you apply your resources, but one of the18 connects that I'd like to see happen is19 neighborhood. Manayunk has distinguished20 itself in art and in green, and other21 neighborhoods in the 3rd District might22 be science, in Germantown you chose to23 focus on fashion, which I thought was24 strategic, working with Ron Wilch and25 36 4/5/11 - WHOLE - BILL 1101371 other local designers. I thought that2 was good. The connectivity to3 neighborhoods, whether it's the 9th4 Street Market in South Philadelphia, but5 to kind of give the added benefit of a6 neighborhood connect so that when7 visitors, when conventions, when tourism8 comes here, they get to experience9 neighborhoods that are somewhat unique,10 Philadelphia being a city of11 neighborhoods. So making that12 neighborhood connection as you did with13 the fashion, as you did with the ice14 sculpture is an important ingredient that15 would be something that I would hope you16 promote.17
Thank you,20 Madam President.21 COUNCIL PRESIDENT VERNA:22 You're welcome.23 The Chair recognizes24 Councilwoman Blackwell.25 37 4/5/11 - WHOLE - BILL 1101371
Thank2 you, Madam President.3 Thank you for your4 presentation. Certainly we are concerned5 about our venues. We're happy that Dell6 East opened, and I know that the Mann7 Center that's in Councilman Jones' area,8 but the last few years they've been9 talking about their shortage, and I was10 thinking this morning -- somebody11 mentioned them this morning, and I was12 thinking that maybe as you interact with13 them in marketing, they could get14 something not necessarily what they15 usually do. You know, you've got to draw16 entertainment that people want to see,17 and that helps financially as well. So18 they may want to come out of where they19 like to be in order to attract people.20 My suggestion.21 But I wanted to mention -- the22 President talked about it -- this new23 jazz marketing, and I wanted to ask you24 how that relates with neighborhoods. You25 38 4/5/11 - WHOLE - BILL 1101371 know, we have jazz and we have oldies, we2 have gospel. We've worked hard to create3 these venues from the spring to October4 in West Philadelphia. And will you or5 are you interested in also informing6 others of the neighborhood venues that7 exists all summer long?8
Oh, absolutely.9 That's why we chose to have the press10 conference, I think it was, about a week11 and a half ago right outside where we had12 Philadelphia Freedom play, because we13 wanted people to know we have formed a14 Jazz Coalition, the Philadelphia Jazz15 Coalition, to start planning for 2012 and16 really blow it up, much bigger than we're17 able to this year, because we really just18 started about a month ago. We are19 reaching out through some of the jazz20 artists and where they perform to let the21 venues, some of the smaller ones, not the22 big ones like the Mann or the Clef Club,23 but to let them know that there is an24 avenue available for them to promote, the25 39 4/5/11 - WHOLE - BILL 1101371 Philly Fun Guide and also the website2 that was created by the Office of Arts3 and Culture.4 So we're trying to be very5 inclusive, because Philadelphia has such6 a rich history of jazz that we think this7 is a really great opportunity to really8 promote it and especially declaring April9 Jazz Month and then we're going to have a10 Jazz Day. So absolutely. We're very11 interested in reaching some of those12 smaller venues.13
Some14 years ago we did a publication and we15 called it Avenue of the Arts West,16 because at that point, we were told we17 were second next to Center City in terms18 of venues. We have everything, as you19 know. We have everything from the Paul20 Robeson House to jazz venues and the Al21 Simpkins Theatre. We have a theatre22 venue. So we have a lot of art projects23 in West Philadelphia.24 Specifically with regard to25 40 4/5/11 - WHOLE - BILL 1101371 jazz, we have the venues and then we2 bring in the artists. So some artists we3 solicit and some come every year. And so4 our -- my question is, how do we connect5 with you? Would you like the -- I can6 give you the venue. We may not have the7 agenda type, who is playing. We know,8 for example, that Glenn Bryan from Penn9 plays our first jazz show every year at10 Malcolm X Park. So we do that, and we11 know who is going to do last, but we12 recruit for the middle.13 So how do we connect with you14 in terms of our art and jazz shows?15
They can call my16 office directly. We'll be happy to sit17 and talk with them and give them18 information on what we hope to do with19 the Jazz Coalition and also give them the20 link to go up on the website and put21 their information in for the arts and22 culture website, as well as the Philly23 Fun Guide and what they need to do in24 order to complete that.25 41 4/5/11 - WHOLE - BILL 1101371
Thank you,5 Councilwoman.6 COUNCIL PRESIDENT VERNA:7 You're welcome.8 The Chair recognizes Councilman9 Green.10
Yesterday we16 received information from the17 Administration about the one and a half18 and three percent budget reduction19 scenarios prepared by departments. The20 reductions listed for the Office of City21 Representative didn't include any22 descriptions, so I'd just like to go over23 them briefly.24 Can you describe the $10,14225 42 4/5/11 - WHOLE - BILL 1101371 reduction Class 100 and how it would2 impact citizens?3
In Class 100? If4 we take $10,000 out of the budget, I'd5 have to eliminate a position.6
Well, can10 you please explain why you wouldn't save11 more than $10,142 if you eliminated a12 position?13
The question16 is, when I asked what the $10,142 was17 that you provided in response to the one18 and a half and three percent budget19 reduction scenarios that was prepared by20 your department, your response was that21 to make that cut, you'd have to eliminate22 a position. What I asked you was, do you23 have a position that pays that amount of24 money. You said no. So my question then25 43 4/5/11 - WHOLE - BILL 1101371 is, why wouldn't, if you had to make cut,2 save -- if you have to eliminate a3 position, save more than $10,142? It4 makes no sense to me to suggest you can5 save that. If it means eliminating a6 position, you save whatever the entire7 position cost is.8
Right, but if I9 have to take $10,000 out of that specific10 class, I have no money other than11 positions.12
But this is13 not what the Finance Department gave to14 you as a cut. This is what you provided15 to the Finance Department and to the16 Budget Director. And so the question is,17 you provided that cut to the Budget18 Director. You must have meant something19 by it, and if what you meant was the20 elimination of a position, the cut should21 have been far higher.22 I don't understand -- I'm23 asking you what, when you originally24 provided this information to the Budget25 44 4/5/11 - WHOLE - BILL 1101371 Director, the $10,142 represented. Does2 it represent people not getting raises?3 Does it represent not moving people4 around in classes? It must represent5 something other than a position.6
That particular7 amount was to show the impact of what8 would happen if I did eliminate in that9 class. The only way that I could take10 money from that class would be to11 eliminate a position, because it would12 not be fully funded. So it wouldn't be13 moving people around. If I was required14 to take a one percent, two percent,15 whatever the amount out of that class,16 the only option that I would have would17 be to take that.18 I understand your question in19 that why not take it higher, but if I'm20 not required to take it higher, maybe I21 can do something else with the money that22 would be left over. I don't know, but I23 would not have that position available.24
What25 45 4/5/11 - WHOLE - BILL 1101371 position was it?2
I don't have the6 amounts next to these, so I can't give7 you that.8
Hi. Rebecca9 Rhynhart, Budget Director.10 I don't know if she wants to11 get into specific people since the people12 have those roles, so we'd be discussing13 laying off specific individuals publicly,14 but I think to address, it looks like15 when they did the cut, they did sort of16 an across -- sort of took a percentage of17 Class 100 and a percentage of Class 200,18 300 and 400 as their one and a half and19 three percent cuts. But you're most20 likely right, Councilman Green, that if21 they were to have to lay someone off,22 that they would save more than $10,000.23 I think Melanie was, as she said,24 probably hoping that if she had to take25 46 4/5/11 - WHOLE - BILL 1101371 that $10,000 cut, that there could be2 some sort of way to not have to lay3 someone off, but most likely there4 probably wouldn't be. If I could just5 add that.6
Okay. So7 I'm really trying to understand what the8 purpose of getting that information9 provided to the Budget Office was if it's10 a simple one and a half percent is11 $10,142, but that is not in fact what12 we'd save, because it's sort of -- what13 was the purpose of even getting that14 information if it's a not thoughtful,15 across-the-board, specific percentage16 reduction, which has no meaning in17 reality?18
Well, I think19 there is a meaning in reality. I think20 the majority, as you look through the21 list of the departments, the majority of22 the cuts actually highlight specific cuts23 that they would have to take. The City24 Rep's submission, as you've noted, took25 47 4/5/11 - WHOLE - BILL 1101371 sort of an across-the-board cut. So we2 needed a follow-up conversation, which we3 had with them, to detail that they would4 actually have to lose a position, which5 we did not decide to do.6
I have the7 same question for the Class 200, $15,618.8 Was that just a straight percentage?9
So that's11 not a specific reduction that you've12 targeted for any particular contract?13
From the17 stakeholders, an equal amount taken from18 each stakeholder to come up with the19 15,000.20
So you would21 just pro rata reduce what you give to22 Historic Philadelphia, what you gave to23 everybody else to achieve that result?24
Okay. And2 what's the impact to citizens if you're3 to do that?4
They have less9 money for the promotion, some of the10 services that they offer, in terms of11 visitors and tourism.12
I13 understand. And just for the record at14 this point. I have no follow-up15 question. The $1,473 in Class 300?16
That would come17 out of a number of different line items.18
Basically. I21 tried to limit the impact on each item so22 that I can still manage to do the work23 that I have to do.24
Who is in25 49 4/5/11 - WHOLE - BILL 1101371 charge of the City's -- you mention2 tourism. You mention working with GPTMC.3 Who is in charge, who directs our overall4 promotion of the City strategy?5
Well, that would6 come from my office and the Mayor's7 Office and taking our cue from there,8 working with GPTMC, PCVB. GPTMC would be9 tourism, PCVB conventions and10 international and Greater Select. So I11 work with all of the different12 organizations.13
And when14 they develop campaigns or strategies or15 other things, are we directing that or16 are we reacting to what they present to17 us and approving it or not approving it,18 or do we even do that? Do we even19 approve or not approve of specific20 campaigns?21
It's not a matter22 of really approving, as their money comes23 from a variety of different sources, but24 basically what we do is, they have25 50 4/5/11 - WHOLE - BILL 1101371 committees that they bring in from2 different organizations to view some of3 the different ideas. That's where the4 "With Love" campaign came from. There5 was a committee formed from different6 organizations throughout the City that7 have a stake in tourism and marketing,8 and everybody looks at it and votes on9 which one they think will have the best10 impact, and the "With Love" came about11 because of that.12 So it's not -- it's a matter of13 really partnering and saying to them,14 Okay, we think this might be worthwhile15 and this might work, and listening to16 everything that everyone -- what each17 organization might need from that18 particular campaign, which is why that19 campaign has lasted as long as it has.20
Like in21 particular, do you think it's appropriate22 to use the image and likeness of an23 elected official in promoting the City,24 as obviously that's not sustainable after25 51 4/5/11 - WHOLE - BILL 1101371 that individual is gone? And so if you2 could answer that part of the question.3 And the next part of the question is, is4 that appropriate, say, at the Airport or5 other places during an election season,6 from your perspective as City Rep?7
Well, yes. I8 think that the current commercial that9 shows our Mayor is an appropriate one10 because it was promoting the City of11 Philadelphia through the "With Love"12 campaign, and he is the Mayor. And the13 one that we have at the Airport started14 out as a campaign because of we made15 changes. When people came in, there was16 a sign that was not very friendly to17 visitors and we wanted to make it so that18 when people came, they knew that the19 Mayor welcomed them.20 And in terms of a campaign's21 length, usually it doesn't last more than22 a year. You go with different campaigns,23 because different times call for24 different campaigns. So they usually do25 52 4/5/11 - WHOLE - BILL 1101371 have a shelf life. The fact that the2 "With Love" is continuing over a two-year3 period is because of the massive success4 that we've -- and the results.5 So I do believe that it's much6 more friendly for a Mayor to be involved7 with a campaign welcoming visitors and8 showing citizens that he cares than not9 having it at all.10
Okay. I'm11 not going to argue the point. I just12 wanted to make the point.13 Like last year, I'm asking14 departments about unfilled and new15 positions. I know that the budget detail16 is a point in time. From the budget17 detail for the Office of City18 Representative, it looks like you're19 holding steady at seven positions, but20 you're doing some internal21 reclassification of positions. Do you22 currently have seven people on staff?23
Do you25 53 4/5/11 - WHOLE - BILL 1101371 anticipate any vacancies in FY12?2
I have no more6 positions open under the Office of the7 City Representation's fund.8
Managing9 Director Negrin testified last week that10 the Administrative Division of his office11 coordinates special events. My12 understanding is that this is done13 through a partnership with your office.14
And I know16 that because I've been in meetings with17 you and the Managing Director's Office18 with respect to several events.19 So just to clarify the20 finances, is the $65,000 transfer on Page21 6 of your budget detail a transfer from22 the MDO rather than to it?23
From, okay.25 54 4/5/11 - WHOLE - BILL 1101371 And what's that money going to be used2 for?3
There you10 go.11 Madam Chair, those are all my12 questions. Thank you.13
Thank14 you.15 The Chair recognizes Councilman16 Greenlee.17
Thank18 you, Madam President.19 Good morning, everyone.20
First of22 all, Ms. Johnson, I just want to say, I23 think the City Rep's Office in these24 difficult economic times is doing a good25 55 4/5/11 - WHOLE - BILL 1101371 job promoting the City, and I know it's2 difficult out there with all the3 restraints we all have. But I just4 wanted to ask one question, and I think5 it's a real basic question, back on what6 the Council President raised early on the7 whole parades and all.8 I know Councilwoman Sanchez9 sponsored a bill that dictated what could10 and couldn't be charged, and I know there11 was some disagreements obviously with the12 Administration on that. It was a veto.13 We overrode the veto.14 Is that law being adhered to?15
Okay. I17 just wanted to get on record. So they're18 not being charged for anything that's in19 that bill?20
Okay.23 Great. Thank you.24 Thank you, Madam President.25 56 4/5/11 - WHOLE - BILL 1101371 COUNCIL PRESIDENT VERNA:2 You're welcome. Thank you.3 The Chair recognizes Councilman4 Rizzo.5
Madam6 President, I only have one additional7 question since many of them were answered8 by my -- asked by my colleagues and one9 that I'm not sure has been asked.10 What is the line item for11 Miscellaneous for 10,384? Forgive me if12 we've already hit on that, 10,384 listed13 as Miscellaneous.14
That's really for19 overages for the Office of the City Rep.20 If we are doing -- say for last year,21 when we did The Philadelphia Collection,22 I may have used some of that money for23 some of the services for that event.24
And also I'm7 impressed, unless there's other money,8 are you telling me that entire Historic9 Philadelphia runs on $207,000?10
Oh, no,11 absolutely not. That's just what the12 City provides to them.13
Well, depending16 on what they're doing, they received some17 capital funding for projects for the18 Lights of Liberty. So I'm not exactly19 sure of their total budget, but they did20 receive money for a project to get the21 Lights of Liberty up and running again.22 They revamped the whole thing.23
So our piece24 of it is 207, and does that fund the25 58 4/5/11 - WHOLE - BILL 1101371 overall or just specific?2
They use it for3 operations and for the promotion of the4 City. So primarily most of that funding5 is for the hiring of some reenactors for6 "Once Upon A" storytelling and some other7 operational expenses.8
And forgive9 me. I know this was asked. And it's a10 one-year contract, but it's renewed many11 times, correct?12
No. There's not16 an organization similar to them in the17 City that handles Betsy Ross and the18 Historic Philadelphia aspect of it.19 There are a number of different20 organizations that do the promotion of21 our history, but their organization is22 charged specifically with Betsy Ross and23 the other historic aspects of24 Philadelphia.25 59 4/5/11 - WHOLE - BILL 1101371
Terrific.2 And the only other commentary that I have3 is that I have received e-mails and I4 think I've communicated to you. Some of5 the tours that go around the City,6 sometimes they need to stick to the7 script, some of the people that do this,8 the drivers and the carriage drivers.9 Some of the things that they say aren't10 funny, and I hope that your office and11 these tour operators instruct that making12 fun of various parts of our city is not13 what they're there to do. They're there14 to be positive and not try to be15 comedians, and I have received recently16 some complaints. A person was really put17 out by what they were told on one of18 these tour bus rides. So do you have any19 interaction with them and do you review20 what is said about our city with any of21 these operators?22
Well, I do take23 the tours myself to see exactly what's24 happening, and they're private-owned25 60 4/5/11 - WHOLE - BILL 1101371 businesses and I have had conversations2 with some of them. Some of them take our3 suggestions and try and incorporate it4 and some do not. But I do think it has5 improved some.6
Good. Very7 good. And thank you and thanks for all8 of your -- it's only seven people that do9 all that. So that's good work. Thank10 you.11
Thank you,13 Madam Chair.14 COUNCIL PRESIDENT VERNA:15 You're welcome.16 The Chair recognizes17 Councilwoman Brown.18
Thank you,19 Madam President.20 Good morning, ladies.21
Let me23 underscore Councilman Bill Greenlee's and24 other's comments regarding the work that25 61 4/5/11 - WHOLE - BILL 1101371 you're doing and how you continue to2 figure out how to do more with less, or3 at least hold steady, given the climate4 that we're in.5 Councilman Frank Rizzo's6 question is a great segue to my opening7 question, which was around the tour guide8 bill that was passed, oh my, three years9 ago under my leadership in Council, and10 so his question begs the question, what's11 the status of that lawsuit? Let's hear12 that answer first.13
Well, it's in14 limbo basically. We did go to court, and15 the judge did not rule one way or the16 other. Basically what he said was based17 on the information that came out in18 court, there is no funding to implement19 this program and to oversee it. So at20 this moment, it's still on appeal,21 because the other side appealed what the22 judge said, and we expect to be back in23 court again probably sometime this year24 to talk about exactly how you move25 62 4/5/11 - WHOLE - BILL 1101371 forward. But the bill, while a really2 great bill to really regulate exactly --3
Yes. And, you6 know, we have people willing to help put7 together --8
Exactly. But the10 cost involved with having that program11 just does not exist at the moment. As12 you said, we're just kind of holding13 steady.14 So we have had discussions, not15 lately, but I will certainly look into16 conveying a meeting again to talk about17 it more, about maybe trying to find a18 creative way that we can. If we offer19 this to the judge, then it will probably20 be a decision, but at the moment, there21 is no decision. It's just kind of laying22 there.23
All right.24 So then let me put a couple of25 63 4/5/11 - WHOLE - BILL 1101371 recommendations on the record. I see2 here that you mention involvement with3 the Greater Philadelphia Tourism and4 Marketing Corporation and the5 Philadelphia Convention Center, which are6 expected. A sit-down with the7 Multi-Cultural Affairs Congress, headed8 up by Bill Wilson and Tanya Hall, might9 be in order, because they are in the10 business of making sure that the richness11 of our city in terms of diversity is12 captured in all that they do and I am13 sure would welcome a role that speaks to14 the intention and purpose of that tour15 guide bill. That's one.16 And the second would be, Temple17 University School of Tourism, they were a18 part of those discussions in the task19 force meetings we had that led to the20 ultimate passage of that bill and21 indicated an interest then, that they22 would be willing to have a role in the23 composition of the test, the construction24 of the exam. So if they hear of the25 64 4/5/11 - WHOLE - BILL 1101371 dilemma that's faced by the City Rep's2 Office and the ask that they help get it3 moving, they might be willing. So a4 formal request to either one of those5 organizations might be useful.6
We actually did.7 They were part of the groups that we got8 together, and Temple was very willing to9 help with the exam. The issue after that10 is the administering of that program and11 not putting it outside of a City office12 and putting it into a private entity's13 hands, which would not be a fair thing14 for the people that would then have to15 answer to a company that wasn't a City16 office.17 So we're just kind of waiting,18 but I give you my word that I will look19 into putting a meeting together to try20 and talk about a few things, along with21 the lawyers who are overseeing the case,22 and I'll give you an update.23
To the24 extent that you think it appropriate, I'd25 65 4/5/11 - WHOLE - BILL 1101371 be more than willing to be a part of2 those meetings.3
All right.7 You state in the third paragraph of your8 testimony that the Office of the City Rep9 and all that you do is designed to10 attract commerce and enhance economic11 value. So can you cite an example or two12 where that direct link happened as a13 result of the efforts of your office that14 actually showed a tangible result in the15 commerce side?16
Well, it's still17 ongoing, but The Philadelphia Collection18 was specifically put together for that19 purpose.20
The Philadelphia23 Collection. That's the fashion umbrella24 that we created last year. Working with25 66 4/5/11 - WHOLE - BILL 1101371 the Commerce Department's Karen Randal2 and Center City District's Michelle3 Shannon, we pulled together a number of4 different organizations that were5 producing fashion events throughout the6 City anyway and asked if they would be7 willing to put together, under the8 umbrella of this new label, events that9 we could then put up a website and a10 brochure to promote this as ten days in11 Philadelphia, which they were. We've12 used that and the PRMA Retailing13 Committee out of Center City District and14 all the community hospitality15 organizations to really work with16 Commerce to leverage interest from a17 number of different retailers to try and18 open. I can't give you any specific19 names, because they're kind of ongoing,20 but we're hoping that with time, we can21 show people that Philadelphians do shop22 and that if you come and you open up a23 shop here, you'll have those customers,24 and I think that helped. It didn't hurt25 67 4/5/11 - WHOLE - BILL 1101371 that we got on Forbes.com's list as2 number six as the best shopping district3 either.4
Very good.5 Very good. And in the rollout and6 construction of that event, there is an7 eye on ensuring that minority-owned8 businesses and women-owned businesses are9 in the mix?10
Okay. I15 had a question here about the marathon.16 Last year I raised a question17 about the Christmas Village abiding by18 those same standards of awarding19 contracts. So what steps has your office20 taken to ensure that the companies that21 we see out there on the Christmas Village22 are honoring up to this ongoing23 expectation of MBE/WBE participation?24
They actually did25 68 4/5/11 - WHOLE - BILL 1101371 very well last year. I don't remember2 the exact percentage, but I did go back3 and check. And we actually have a4 sit-down with any organization that comes5 to our office to discuss having an event6 in the City to talk about their minority7 participation or woman-owned8 participation or disadvantaged. So we9 really insist on making sure that it's a10 very diverse event, because we're a city11 of diverse people. So that's something12 that we do, even if we didn't have the 2513 percent, that we would talk about,14 because I think it's very important that15 you show diversity in a city such as16 Philadelphia. So if you want to bring an17 event here, it's important to have that18 part of it.19
So is that20 a written document that you share which21 sort of states the mission statement, the22 Mayor's mission around that and then the23 role of your office as it relates to24 MBE/WBE or is that a conversation or25 69 4/5/11 - WHOLE - BILL 1101371 discussion that happens?2
I can't say for3 certain that we've had it in every single4 contract, but in most of the contracts5 that we do from my office, we do talk6 about it and we have put it in some of7 the contracts, yes. That's part of the8 template that we use.9
So my10 observation of that practice would be11 once the personalities are gone, there's12 no systemic structural piece that deals13 with that and so -- and I see in your14 testimony where your office produced15 thousands of documents. So purely a16 recommendation. When you hand a document17 to somebody in writing, it goes to one of18 Councilman Jones' philosophy, if it's not19 in writing, it doesn't exist. And so if20 we want to ensure systemic change around21 that issue, then one page or something22 really sends a clear message, because23 then when it's in black and white,24 there's no confusion. And that would be25 70 4/5/11 - WHOLE - BILL 1101371 a recommendation I would offer for all of2 those non-profits that come through the3 office looking for opportunities through4 your office.5 To do a follow-up on Councilman6 Goode's question, you indicated that the7 Welcome America has had the contract8 since nineteen ninety?9
And his12 subsequent question was, is that bidded13 out. It is not?14
So because17 they are a stakeholder, they don't have18 to bid? Just help me understand that.19
Just as services20 are offered or assistance to the21 Philadelphia Museum of Art or the African22 American Museum, Historic Philadelphia23 was started in 1994 for the specific24 purpose of the promotion of Philadelphia25 71 4/5/11 - WHOLE - BILL 1101371 historical aspects -- assets. And so the2 money has certainly gone down since 19943 when they received a larger amount of4 money to the 207,000 they receive now,5 but they're a unique organization in that6 they are the overseers of the Betsy Ross7 House as well as Franklin Square Park and8 other historical reenactments so that9 they can promote our history in Old City.10
All right,11 then. I better understand that.12 If you had to look to one or13 two achievements over your tenure as City14 Rep that really speaks to what you just15 talked about, connecting the tangible16 dots of commerce, increasing commerce and17 your work, what one or two achievements18 would you put at the top of the list?19
I would say the20 Philadelphia Marathon. When I started in21 2008, there were 16,000 people. Here in22 2010, we had close to 25,000 runners.23 The marketing has increased. We went24 from No. 11 to No. 9. We're in the top25 72 4/5/11 - WHOLE - BILL 1101371 ten. Our numbers at hotels have2 increased, and the people, when we did a3 study, it showed that -- give me one4 second and I can tell you exactly.5
Not a10 problem, because one of my questions was11 related to the Philadelphia Marathon12 anyway. How does your office project a13 continuation of that upward trend and14 what strategies did you implement to see15 that kind of increase?16
It's the ninth20 largest marathon in the nation. It's the21 fourth top Boston qualifier - New York,22 Chicago and then Philadelphia. The23 number of female participants increase24 every year. The Philadelphia Marathon is25 73 4/5/11 - WHOLE - BILL 1101371 unique in that in almost every other2 marathon, the half marathon, if it's run,3 fills up before the full. In4 Philadelphia, the full marathon fills up5 first.6
Runners World8 Magazine in 2007 said that we were the9 best place to run a Boston qualifier,10 primarily because you get your best time11 on our course, which is relatively flat,12 and it's a beautiful course. And we were13 just selected this year to be part of14 Runners World Challenge.15 Runners World is the top racers16 magazine in the country. So them picking17 Philadelphia as one of their three places18 is really incredible.19 We supported 11 charities in20 2010 and raised close to a million21 dollars for them. We had over close to22 25,000 participants and the largest group23 of females. Again, there's usually more24 males in full and half. We had 53.625 74 4/5/11 - WHOLE - BILL 1101371 percent females and only 46.4 males.2 There were 12,500 full marathoners, 9,5003 half marathoners and over 2,000 8k4 runners. And the change last year of our5 race, the 8k, instead of being on Sunday6 being on Saturday helped increase the7 number of people that participated, and8 also those people registered twice,9 because they wanted to run the 8k, which10 we now hold on Saturday, and they wanted11 to then try their luck -- they used the12 8k as a training ground for either the13 half or full marathon the very next day.14
So of that19 demographic, what percentage of those20 runners are under 18 years of age?21
Very few. We22 have a Kids Fun Run for kids from the age23 of 4 to 12.24
That25 75 4/5/11 - WHOLE - BILL 1101371 happens during?2
That happens on3 Saturday. I'm sorry. And we work with4 Students Run Philly Style, which train5 kids to and use it as a discipline and6 self-confidence promoter, and we have a7 large number -- she usually brings about8 200 students for that. And there are9 certain age limits in terms of what race10 they can run, whether it's the half or11 full. So it's 16.12
I'm13 familiar with Students Running Philly14 Style, in that our office is a partner15 with them.16
Oh, okay.23 All right. Just one more question.24 That was the tour guides.25 76 4/5/11 - WHOLE - BILL 1101371 Okay. So I'm done. Thank you very, very2 much.3
Any other8 questions of this witness?9 (No response.)10
Thank you.13 MR. McPHERSON: The next14 department is the Department of Commerce15 and Office of Economic Opportunity.16 (Witnesses approached witness17 table.)18
Good morning.21 Councilman, before I get started, this is22 a long testimony, and what I'm going to23 do is read only a few pages into it and24 then I'm going to ask you to see whether25 77 4/5/11 - WHOLE - BILL 1101371 the members would like us to not read any2 more and go right into questions. Does3 that seem okay?4
I'll tell you7 when. All right? It will be about two8 and a half pages in.9
Yeah. That's12 sort of the idea, because it's long13 otherwise.14
17 My name is Alan Greenberger. I'm the18 Deputy Mayor for Economic Development and19 the Director of Commerce. 1 million over Fiscal10 Year 2011 obligations. 17 As I understand, on April 12th,18 the Aviation Director, Mark Gale, will19 testify to the Division of Aviation's20 portion of the budget. 10 We do this in partnership with numerous11 other entities such as those departments12 and agencies that support economic13 development, including the Philadelphia14 City Planning Commission; the Office of15 Housing and Community Development; the16 Redevelopment Authority; the Mayor's17 Office of Sustainability; the Department18 of Licenses and Inspection; the Mayor's19 Office of Arts, Culture and Creative20 Economy; and the Philadelphia Industrial21 Development Corporation, to name some of22 the key ones. We are guided by several23 core principles. 783 million,2 excluding the Aviation Fund, and is3 summarized as follows:4 The General Fund budget for the5 Department of Commerce continues to6 reflect many of the Administration's7 priorities. 13 In the upcoming fiscal year,14 the Department's proposed budget15 contemplates the funding of 68 positions16 when you include all funding sources and17 which represents a reduction of two18 eliminated positions over Fiscal Year19 2011. 21 The Commerce Department is committed to22 supporting a diverse workforce across all23 levels of operations as reflected in our24 demographics. The Department boasts a25 84 4/5/11 - WHOLE - BILL 1101371 workforce that includes 68 percent female2 and 32 percent male. Additionally, 573 percent of the workforce is African4 American. There's a typo in there. I5 apologize. But it's 57 percent of the6 workforce African American, 35 percent7 Caucasian, six percent Latino and two8 percent Asian. 16 The proposed Fiscal Year 201217 budget represents the third fiscal year18 in which the Office of Economic19 Opportunity was fully integrated into the20 Department. Leveraging the resources of21 Commerce, OEO will more aggressively22 execute the Inclusion Works Strategic23 Plan, increasing the success of a ready,24 willing and able M/W/DSBE business25 85 4/5/11 - WHOLE - BILL 1101371 community and building a more diverse,2 work-ready labor force. 9 And if it's okay with you, this10 next section is what I propose simply to11 summarize by title. These are the12 accomplishments. 13
16 Meaning I'll just sort of list them out17 for you. 22 In FY12, we're proposing to23 expand our Business Services Portal to24 basically create a dashboard out of it25 88 4/5/11 - WHOLE - BILL 1101371 that would allow businesses to actually2 fill out forms online and ultimately pay3 for some of the permitting online. " Sorry for that. 12 We're not closing PIDC. 15 We are looking at how to create16 micro lending programs. 19 And then, lastly, I'd like to20 comment on the Department's commitment to21 supporting the Administration's goal, 2522 percent minority, women and23 disabled-owned business participation in24 City contracting. Commerce primarily25 89 4/5/11 - WHOLE - BILL 1101371 serves as a fiscal agent for a variety of2 entities such as organizations that share3 in the Hotel Tax, payments that are made4 to the Pennsylvania Convention Center5 Authority. Additionally, federal and6 state grants are made to certain7 non-profit entities which, on behalf of8 the City, carry out certain economic9 development activities. 18 With funds managed directly19 under Commerce, the level of for-profit20 contracts available in FY11 is21 approximately $95,000, most of which is22 the disparity study. We anticipate23 achieving and even exceeding our FY11 2524 percent, with an actual participation25 90 4/5/11 - WHOLE - BILL 1101371 rate of 37 percent. 7
Thank12 you very much.13 What is your funding request14 for 2012 in CDBG funding?15
Well, that's16 a bit of a hard question to answer,17 because we don't know the status of CDBG18 funding going forward from the federal19 government. As you know, they're still20 working on continuing resolutions, and21 they have given us no indication of what22 the funding allocation is likely to be23 for what will be our Plan 37 year. So24 right now we are planning around a25 91 4/5/11 - WHOLE - BILL 1101371 similar appropriation, which I think is2 $16.5 million, but we don't know whether3 that will actually happen.4
It is5 rumored that we could lose as much as 666 percent of our CDBG funding in our Fiscal7 2012 budget. If the City were to8 experience a reduction of this magnitude,9 how would your operations be affected?10
It would be11 dramatically affected. There are a great12 number of our staff who are paid for13 doing CDBG-eligible work. That would all14 basically have to be put on the table,15 not to mention the programs that CDBG16 runs that impact properties and people17 citywide.18 The one thing I will offer is19 that there was a proposal, House Bill 1,20 that did propose a 62.1 percent reduction21 in CDBG funding. That bill was rejected22 by the U.S. Senate, but, again, there are23 negotiations going on right now to figure24 out what that CDBG allocation is and we25 92 4/5/11 - WHOLE - BILL 1101371 don't have a clear picture of where it's2 going.3
That4 should be very interesting.5 You're requesting $1,372,000 in6 economic stimulus funding for Fiscal7 2012, which is the same amount as you8 received for Fiscal 2011. Is that so?9
Yes. That10 funding specifically is under contract11 with PIDC and it funds numerous numbers12 of our staff members.13
Can14 you tell us the criteria used in15 determining how you spent your 201116 funds, the projects that you funded and17 the benefit that the City will receive.18
Well, that's19 a fairly broad question and it covers20 many different categories of funding.21 For example -- are there specific ones22 that you had in mind before I answer?23
For instance,25 93 4/5/11 - WHOLE - BILL 1101371 there are both planning grant funding --2 I'm just going to give you some examples.3 Planning grants, as well as commercial4 corridor improvement grants that are done5 through a competitive process. There's6 essentially a call for proposals.7 There's a set amount of money that we8 have available. We form committees from9 various quarters of Commerce and other10 agencies to examine these proposals and11 determine a ranking system of value to12 determine how best to apportion the13 money.14 The criteria includes things15 like past performance, capacity to do the16 work necessary, criticality of doing the17 work. And I apologize. That's a generic18 answer to a fairly broad question.19
Thank20 you.21 You're requesting $42.5 million22 in Class 500 in the Hotel Tax Fund for23 2012. For the record, can you tell us24 who receives these funds and the amounts25 94 4/5/11 - WHOLE - BILL 1101371 they are paid?2
Good5 morning, Council President Verna. Sade6 Olanipekun-Lewis.7 I can provide to you the8 entities that receive the funding, but9 I'd have to get back to you with the10 actual allocation.11 COUNCIL PRESIDENT VERNA:12 Please.13
There14 are three entities that receive funding15 through this tax. One is the16 Pennsylvania Convention --17 COUNCIL PRESIDENT VERNA:18 Convention Center.19
The24 Convention Center Authority, the25 95 4/5/11 - WHOLE - BILL 1101371 Pennsylvania Visitors and Convention2 Bureau, and the Greater Philadelphia3 Marketing and Tourism Company. They each4 receive an allocation from this tax.5 Last year they received -- the first one6 received 19.2, the Visitors and7 Convention Bureau received 11.2 and8 Greater Philadelphia Marketing and9 Tourism Company received 16.5 in FY10. I10 can provide -- I can get the FY11 numbers11 for you at a later date.12
We13 would appreciate that.14 Is the use of these funds15 restricted by state statute?16
I don't17 know the answer to that question. We can18 find out.19
Yes,22 ma'am.23 COUNCIL PRESIDENT VERNA:24 Mr. Greenberger, on of your25 96 4/5/11 - WHOLE - BILL 1101371 testimony, you mention the mayoral2 initiative of creating five landscaped3 pedestrian plazas. Can you tell us their4 locations and how they were selected?5
We don't have6 locations yet, but I can tell you the7 background -- I can give you background8 of the initiative. This actually came9 out of Deputy Mayor Cutler's office, and10 it was instigated by seeing in other11 cities how some unused portions of12 basically roadways were being turned into13 green islands for the benefit of14 pedestrians and people walking around,15 and it seemed to be a very inexpensive16 way of recovering some roadways that were17 otherwise not being used by cars.18 We had a meeting to talk about19 it, and what Deputy Mayor Cutler asked us20 to do was to be able to move some of her21 funding -- that's the 157,000 -- into22 Commerce, because we have the contracting23 authority to deal with some of the soft24 costs involved with this program.25 97 4/5/11 - WHOLE - BILL 1101371 They're in the process of identifying2 potential sites where this could be3 applicable.4
And5 when do you think we would know where the6 sites would be?7
I think that8 will be evident probably in the next9 couple of months. She really wants to do10 these things. They're relatively easy to11 do.12 COUNCIL PRESIDENT VERNA:13 Great. Thank you.14 The Chair recognizes Councilman15 Goode.16
First a21 question about the CDC Tax Credit22 program. The first nine of ten-year23 partnerships will expire next year, and24 as we enter a second decade of the25 98 4/5/11 - WHOLE - BILL 1101371 program, I'm interested in knowing what2 changes your department recommends and if3 you know that yet, and, if not, could you4 forward those proposed changes in5 writing.6
Councilman, I7 missed the critical first word. Which8 programs?9
Councilman, my name14 is Kevin Dow. I'm the Chief Operating15 Officer.16 One, we understand that that17 program has been extended for one year as18 a result of -- or amended for one year.19 So that gives us time to evaluate the20 pros and cons of what happened there.21 We'd like to work with Revenue, with your22 office to determine what we would like to23 see going forward.24
I don't25 99 4/5/11 - WHOLE - BILL 1101371 understand what you mean by extended one2 year.3
Well, my4 understanding is that the legislation was5 amended for a period of one year so6 that -- no? Okay.7
No. There8 are ten-year agreements that will9 actually expire next year.10
Right. And there was11 agreement depending on which organization12 will expire over the next couple of13 years. Some have --14
Nine will15 expire next year. Another six will16 expire the following year.17
So if we19 start a new ten-year period for any20 organization, it's assumed that the other21 organizations will be entering the same22 program. So if you're starting a second23 decade of the program, the question is,24 will the program stay the same or how25 100 4/5/11 - WHOLE - BILL 1101371 should it change? And, of course, those2 people who want to apply for those new3 partnerships will want to apply this year4 so that they can have a new ten-year5 agreement next year.6
I think -- I agree7 100 percent with all of that. The only8 thing that what we would say is that we9 need to take a pause, evaluate the10 program, determine whether or not it11 needs to be changed or anything of that12 nature, determine whether or not we have13 done appropriate monitoring of the14 program to make sure that we are15 exceeding -- achieving the goals that16 we've set out, and then establish a new17 paradigm for that.18
I'm simply19 asking that if you don't have20 recommendations today, that you forward21 those recommendations in writing, because22 we actually need to move sooner than23 later, because there are a number of24 people who will want to enter into new25 101 4/5/11 - WHOLE - BILL 1101371 ten-year agreements who need to know what2 the new rules to the game will be, if3 there are going to be new rules.4
We'll be7 happy to do that.8 COUNCILMAN GOODE:9 Mr. Greenberger, what is the largest10 contract your department will award in11 Fiscal Year 2012?12
The largest13 contract is actually the one we have with14 PIDC, the so-called economic stimulus15 fund. That's the $1.372 million16 contract.17
The second20 largest is -- let me get my numbers21 right -- $162,000 contract with the22 International Visitors Council, and23 that's basically to fund part of their24 operation.25 102 4/5/11 - WHOLE - BILL 1101371
Many years.7 I actually don't know the answer to that8 question, but it's been ongoing for quite9 some time.10
It has not13 been bid because it is a direct contract14 with an agency that lives within the15 City. It's not a City agency, but it16 lives within our midst and we coordinate17 with it regularly. This is Nancy18 Gilboy's operation.19
I'm20 extremely familiar with the agency. Are21 you saying that no one else could perform22 those services or that it could not be23 bid?24
All I'm25 103 4/5/11 - WHOLE - BILL 1101371 saying to you is that it has not been2 bid. I don't know whether there are3 other agencies that could perform it.4
We do not.7 We think it's a successful operation that8 has been very helpful to the City over9 many years of service.10
So those11 services could not be provided by -- IVC12 is a non-profit?13
Let's say19 that the majority of the capacity of IVC20 is contained within Nancy Gilboy herself21 and she ran it as a for-profit. Then she22 would be qualified as a WBE to provide23 their services; is that correct?24
Is there no3 one else locally or nationally, no other4 minority-owned business or woman-owned5 business that could perform those6 services?7
Okay. I'll10 leave that there. And are there any11 subcontracting opportunities within the12 contract?13
Can you16 briefly describe the contract17 requirements.18
I'll have to21 get back to you. I don't know the22 details of the contract.23
Let me tell24 you where I'm going with this. I'm25 105 4/5/11 - WHOLE - BILL 1101371 actually looking at the top contract. In2 this case, it's to a quasi-governmental3 agency. So I'll go to the second4 question, which is to a non-profit, but5 whether it is for-profit or non-profit,6 in the largest contract that you award,7 to me it's the best way to examine how8 your contracting process actually9 happens. If it is a sole source that10 should not be a sole source, that's a11 problem. If it's a renewable contract12 that's not being bid, that's a problem.13 If there is no RFP, then there are no14 goals for disadvantaged business15 participation. If there are no goals for16 an RFP, there are probably no goals17 within the contract, and there's probably18 no goals in the contract because no one19 took the time to look at what the20 subcontracting opportunities might be for21 disadvantaged firms. And particularly if22 we are giving contracts to the same firms23 year in and year out, we should examine24 what opportunities are within those25 106 4/5/11 - WHOLE - BILL 1101371 contracts.2 Lastly, I'll ask -- lastly on3 that subject, I'll ask, is IVC currently4 in compliance with the City's living wage5 and benefits standard?6
I'm going to17 stay on the same theme. How do renewable18 contracts impact the Administration's19 business diversity efforts?20
Well, if the21 contracts are with minority and22 women-owned businesses, it supports the23 expansion of the capacity for those24 businesses. If the contracts are with25 107 4/5/11 - WHOLE - BILL 1101371 prime contractors who have subcontracting2 relationships, we look for those3 subcontracting relationships to be4 sustained throughout the term of that5 contract. If the contracts are rolling6 over without participation, there's an7 opportunity to generate participation on8 those contracts. And so we have9 departments that are looking at those10 contracts that are being renewed to see11 where we can have participation.12
Let me walk13 through that process. If a goal is set14 in the request for proposal and then a15 goal is set in the original contract, how16 would that goal be increased through a17 renewable contract? Wouldn't the goal18 just stay the same?19
The goals --20 well, I'm specifically thinking more of21 professional service kinds of contracts22 where they are more negotiable than a23 competitive bid contract. In competitive24 bid contracts, the goals are at a25 108 4/5/11 - WHOLE - BILL 1101371 minimum, but there's nothing that2 precludes a company from increasing those3 levels of participation.4
The question5 again is, if the goal is set in the RFP6 and then the goal is set in the contract,7 how would that goal actually be increased8 in a renewable contract? I mean, how9 would it happen? How would that process10 happen?11
If a14 diversity goal is not met in the first15 year of a contract, what are the odds16 that the contract will not be renewed?17
I would have18 to look at, along with the staff and19 operating department, the reason why the20 goals were not achieved on that contract.21 If there are specific reasons why a22 minority or female did not perform, then23 the requirement of the prime is to24 request a substitution for participation25 109 4/5/11 - WHOLE - BILL 1101371 on that contract.2
The question3 really is, what are the odds that the4 contract is not going to be renewed just5 because the diversity goals weren't met?6
Has a9 contract ever not been renewed because10 diversity goals were not met?11
I am aware of12 one contract just recently that was not13 renewed because there was a14 non-compliance issue, yes. So contracts15 have not been renewed as a result of16 failure to comply with participation.17
Beyond that18 one contract, how many times are19 contracts not renewed because they don't20 meet diversity goals?21
That I don't22 have an answer for. I can find that out23 for you.24
If you could25 110 4/5/11 - WHOLE - BILL 1101371 forward that through the Chair.2
Just lastly,4 I'm just talking process here. How are5 diversity goals reviewed for renewable6 contracts? I guess within that question7 is, how many contracts are actually8 reviewed for diversify goals as they're9 being renewed?10
I will admit11 that most of our resources within the12 Office of Economic Opportunity are driven13 by those transactions that are new, bids14 and RFPs that are on the street and the15 compliance with the contracts that are16 being awarded. There is a limited amount17 of review in terms of compliance on18 current contracts that will be19 automatically renewed by a department if20 the prime is performing. We provide21 compliance review on an exception basis22 in those cases, and that is when a23 minority or female says, You've got me24 listed on a contract and I'm not25 111 4/5/11 - WHOLE - BILL 1101371 receiving that work.2
Let me tell3 you what the problem is, and we've talked4 about this privately. What this budget5 process will reveal is that a lot of6 large contracts, many of the largest7 contracts, a bulk of contracting dollars,8 are renewable contracts.9
If any11 Administration comes in and makes a12 decision about diversity goals within an13 RFP and then goals within a contract and14 then does it as a renewable contract and15 does not focus on whether diversity goals16 are being met, then they've lost several17 years of opportunity and there actually18 is no growth for disadvantaged businesses19 for a number of different reasons. And20 if we're looking at contracting21 opportunities and not identifying22 subcontracting opportunities and then we23 are not setting the right goals within24 renewable contracts, then there won't be25 112 4/5/11 - WHOLE - BILL 1101371 an opportunity for growth for2 disadvantaged businesses.3
So this5 year's theme is renewable contracts have6 to have a review process in terms of7 whether people are meeting their goals or8 not, and if not, then there's no room for9 expansion in terms of contracting10 opportunities for disadvantaged11 businesses.12
We agree,13 Councilman, and one of the things I will14 add, last fall we created a compliance15 leadership team across the operating16 departments, and the operating17 departments' leaders meet on a quarterly18 basis to talk about compliance on major19 contracts. As a part of that team, we20 have the Inspector General's Office, the21 Controller, the Law Department, those22 critical players that are engaged with23 assisting us in terms of lending24 resources to audit particular25 113 4/5/11 - WHOLE - BILL 1101371 relationships where there may be an issue2 regarding non-compliance.3
Thank you.4 Thank you, Madam President.5 COUNCIL PRESIDENT VERNA:6 You're welcome.7 The Chair recognizes Councilman8 Green.9
My first15 question relates to a question that I ask16 every year and it has to do with business17 attraction. In budget testimony last18 year or testimony in response to19 questions, you confirmed that Karen20 Randal and Duane Bumb were the,21 quote/unquote, primary people in City22 government doing business attraction. I23 hold them both in very high regard, but24 as the fifth largest city in the country,25 114 4/5/11 - WHOLE - BILL 1101371 it's amazing to me that we have basically2 two people doing this work. We've had a3 lot of private conversations about this4 also, which I won't get into, but do you5 think we have enough people in your6 department focused on business attraction7 and retention?8
The short9 answer is, I'd like to have more, and10 living under the budget constraints that11 we do, we are actively looking at12 shifting some resources within the13 department as opposed to new resources to14 buttress that further.15
Well, has16 there been any sort of17 return-on-investment analysis to18 determine benefits of the City of getting19 additional people in those roles in terms20 of tax ratables, additional jobs and21 attendant wage taxes, et cetera, such22 that ultimately through several years of23 effort and a dedicated team, they would24 be paying for themselves?25 115 4/5/11 - WHOLE - BILL 1101371
The answer to2 your question I know as you mean it is3 no. There's not a return-on-investment4 analysis. And it's a legitimate point,5 because obviously you can, in theory, put6 as many people at this as you can muster,7 but that may actually not have the right8 return.9
I hear what12 you're saying. I'm not actually arguing13 with you. I just --14
I'd like to17 have more. And I think, by the way, I'd18 like to have more related to some very19 specific business areas. I think that's20 my focus. I mention in the testimony21 about playing to our asset strength.22 This is sort of a heads and tails kind of23 thing. The heads part is, there are24 strengths that we have that we need to be25 116 4/5/11 - WHOLE - BILL 1101371 doing more on on attraction. Clean tech2 is a perfect example of that. Arts and3 culture is actually an example of that,4 but we have a Mayor's Office that helps5 with that part.6 Other business areas may not be7 our natural strength and we might want to8 think carefully whether we want to put9 resources at it.10
Well, we11 lost 47,000 jobs over the last decade and12 about 140,000 over the last 30 years in13 the City of Philadelphia while our14 resident population has basically stayed15 the same roughly over that period of16 time. And what that means is, there are17 the same number of people and fewer and18 fewer jobs and our poverty rate19 increases, and so I don't think that20 there's a particular area that there21 should not be a focus in. For example,22 manufacturing is still, according to a23 recent PIDC report, a significant24 percentage of our local economy. I25 117 4/5/11 - WHOLE - BILL 1101371 cannot recall it, but I think it's 132 percent of jobs, something like that.3
It's actually4 a little higher, and when they talk about5 it, they talk about industrial, meaning6 manufacturing, distribution and repair.7
Right. So8 that manufacturing industry is shrinking9 and has been for the last 50 years, but10 what we have we want to keep.11
Right. With14 respect to, for example, clean tech, we15 could be doing manufacturing.16
Right. Now,17 we may discover that of those three18 pieces, manufacturing, distribution and19 repair, we're better suited for some20 rather than others. An example is Teva.21 Teva at the moment is not planning on22 manufacturing in Philadelphia. Maybe23 somewhere down the road they would be,24 but right now what they are planning on25 118 4/5/11 - WHOLE - BILL 1101371 doing is distributing.2
Do you know3 why they're not manufacturing in4 Philadelphia?5
They're6 manufacturing in six, I think -- let me7 see if my memory is right about this.8 I'm not sure about the number. They're9 manufacturing, I think, in 60 different10 places in the world. And, no, I don't11 know the answer to the question, because12 they've not proposed it as a possibility.13
Do you know14 why they could never economically15 manufacture in Philadelphia?16
It is19 because they would have to pay six20 percent of their profits on sales around21 the world from their manufacturing22 facility in the City of Philadelphia23 because of our net income tax, which24 kills the manufacturing industry.25 119 4/5/11 - WHOLE - BILL 1101371
What would be2 interesting to see in their case is where3 they do manufacture and what's the4 circumstances of those manufacturers.5 That's a worthwhile thing to look at.6
We're one of7 only four cities in the country that has8 a net income tax on businesses. So I'm9 confident they're not in one of those10 four jurisdictions. We're in great11 company, New York City, which is a12 different entity unto itself, Washington,13 DC, same thing, Detroit and Philadelphia.14 Okay. We received information15 from the Administration about the one and16 a half percent and three percent budget17 reduction scenarios prepared by18 departments. Could you provide some more19 detail about Commerce's three percent20 reduction scenario, which was a $104,90821 reduction in Class 200, quote/unquote,22 economic stimulus payments to PIDC and23 how you would think it would impact24 citizens if we were to not provide that25 120 4/5/11 - WHOLE - BILL 1101371 money.2
Yeah. The3 proposal relates specifically to the4 economic stimulus fund that the City pays5 into each year, and, in essence, it means6 that there would have to be an7 elimination of, depending on what they're8 talking about, one and a half percent or9 three, one or two positions.10
In the PIDC12 side of our employment ledger, that's13 correct. It would have to be there.14
So what do19 those people do in terms of economic20 stimulus?21
They are all22 over the map. Let me just get to my23 sheet here. This is a situation that has24 existed for probably about 18 years where25 121 4/5/11 - WHOLE - BILL 1101371 Commerce staff has been placed, and there2 is no pattern to who is in what category.3 So there are people, for instance, on4 this economic stimulus side on PIDC's5 side that include -- I'll just read off a6 couple of job titles -- the people who7 work directly for me, Deputy Mayor's8 staff; an executive assistant; land use9 manager; policy and planning director;10 receptionist. It is truly all over the11 map. It is not a category that has a12 distinctive job type pattern to it.13
Thank you.16 The land use director specifically works17 on brownfield issues with numerous18 companies throughout the City that are19 trying to do development and have20 brownfield concerns. Basically clean-up21 issues.22
Among other25 122 4/5/11 - WHOLE - BILL 1101371 things, they coordinate money that is2 available to us to help do investigations3 of the extent of brownfield -- the extent4 of HAZMAT contamination and then5 determining what the needs are to clean6 it up.7
So there is8 a 1,372,143 professional services9 contract with PIDC?10
Well, it18 doesn't cost them anything. It is coming19 directly out of this economic stimulus20 fund. So it's --21
That's22 confusing to me. So why do we need --23 are you essentially giving them the money24 to then pay the people --25 123 4/5/11 - WHOLE - BILL 1101371
It's a9 complication and it's one that we10 inherited that goes back a very long way.11 I can't give you the historical basis for12 it. It's something that goes way back13 into the early '90s.14
And I'd16 actually prefer to simplify it and have17 all these people on the General Fund.18
Well, you19 have the opportunity to do so now by20 making a request that we appropriate the21 money to you as Class 100.22
It's true.23 It's not, however, a simple24 administrative matter. We have to25 124 4/5/11 - WHOLE - BILL 1101371 investigate a whole series of problems.2 For example, the folks on the PIDC3 payroll are also on PIDC benefits. Those4 don't match up exactly with ours. So if5 people were to move back, we have to6 solve an issue, for instance, of how do7 you move accumulated pension benefits.8
Well, PIDC9 has been before us and testified, and10 basically what their testimony always is11 is, they don't set the economic12 development or industrial land use policy13 or anything like that for the City of14 Philadelphia. That's all directed from15 the Commerce Department. And they tell16 them what to do, and they just do it.17 They're pawns on your chessboard. And it18 seems to me like they're also paying the19 people who are telling them what to do.20 It's like from an accountability21 perspective, I don't understand how it22 works. They don't work for you. I23 assume -- you know what I mean?24
It seems2 like we ought to either be able to3 explain why we have to have it that4 way --5
The reason it10 exists, at least part of the reason it11 exists, is that we are limited by Charter12 to ten exempt positions in Commerce.13 There are more than ten exempt employees,14 and that's why there are Commerce staff15 who are in this program. At least I16 think this is how it started. There are17 also Commerce staff that are under the18 MDO.19
So why don't20 we make them -- okay. So we can't21 create -- if we can't obey the Charter,22 should we do workarounds or should we23 amend the Charter or should we do --24
Well,25 126 4/5/11 - WHOLE - BILL 1101371 apparently for 18 years, there's been a2 workaround. My preference would be to3 simplify all this. This is kind of a4 headache, to be honest. Does it make a5 difference? I mean, you quoted a reason6 why it might make a difference in terms7 of actual operations. That's not been8 our experience. People who are working9 on this PIDC budget totally believe10 they're working in the Commerce11 Department. We've never had a problem12 with that. And then it just becomes a13 question of all the things we have --14 and, by the way, I had conversations with15 the previous Budget Director and I'm16 having conversations -- oh, there she17 is -- with the current Budget Director18 about trying to bring this back sort of19 into the normal fold. It would eliminate20 a headache for us. Not a massive one.21 And there's a question of how much time22 do we have to put into making this23 straight versus all the other things we24 have to do. I mean, it's a real simple25 127 4/5/11 - WHOLE - BILL 1101371 question. We're working on it.2 Would you like to say3 something?4
Yeah. I was5 just going to add that we are working on6 it. It's something that it would be much7 more straightforward if it were paid out8 of the General Fund, and so we're just,9 as Alan said, we're just looking at the10 complications around pension and vested,11 how many years -- if they moved over to12 the General Fund, could they enter the13 City's pension plan with the same number14 of years of service or how would all of15 that work or would they have to start16 from the beginning.17 So there's some issues18 definitely, but it's also something that19 I think we agree with you, that it would20 be more straightforward if it were out of21 the General Fund. So we're working on22 it.23
Does PIDC24 have a pension plan?25 128 4/5/11 - WHOLE - BILL 1101371
I don't know the5 specifics of their plan. We could get it6 to you, but I don't know.7
So there's11 no problem with respect to pension plans12 then, because they can move it to our 42313 plan or to another 401(k) plan or --14
I've heard that15 voiced as a concern, but, again, we do16 want to work on it and see what the17 possibility is. We agree with you that18 it would be more straightforward.19
Okay. So20 maybe next year we'll have it as Class21 100 funding?22
Yes, or be able23 to explain why it would not be possible.24
Okay. In3 the 15.4 million in, I guess it's, CDBG4 contract spending, which is Class 2505 professional service contracts, the OHCD6 Consolidated Plan contains some7 information about this funding, but not8 much specific information. These are the9 questions I asked about contracts, and if10 you could just provide us, to the extent11 they're known, the provider name, the12 contract amount, how many years the13 provider has had the contract, scope of14 work, including any quantifiable metrics15 that are requirements, documentation of16 performance, including measurement of17 metrics, and how Commerce monitors the18 contract to ensure that citizens receive19 value from it.20
Thank24 you.25 130 4/5/11 - WHOLE - BILL 1101371 The Chair recognizes2 Councilwoman Miller.3
Thank4 you. Thank you, Madam President.5 Good morning --6
-- to the8 Commerce Department, City Planning.9 I have a few questions,10 operational type questions. I want to11 start with the question -- I didn't ask12 this of the City Rep, particularly since13 she said it's a partnership between the14 Center City District and the Commerce15 Department.16 I would like to know in17 reference to the Philadelphia Retail18 Marketing Alliance, which attracts new19 retailers and retains existing ones, I20 was wondering when did this Alliance21 start? What are the results? I believe22 that, as Bill said, the fifth largest23 city should have more than one department24 store in Center City, and I was sitting25 131 4/5/11 - WHOLE - BILL 1101371 here trying to think of other parts of2 the City that has department stores and3 the only place I could think of was the4 mall up at Cottman, what I describe as a5 department store.6 So when did this partnership7 start and what stores -- what new8 retailers have come and where are these9 retailers -- who are the retailers, where10 are they located and how many jobs have11 they actually created, and just what's12 the result of the partnership.13
Duane Bumb, Deputy14 Commerce Director.15 I think for many of the16 specific questions that you've asked,17 we're going to have to get back to you18 with the detail, but just the larger19 question, the initiative was announced by20 Mayor Nutter about a year ago. It was a21 partnership piloted with Center City22 District, so focused where they were23 providing the resources, creating a24 website to help to sort of get facts out25 132 4/5/11 - WHOLE - BILL 1101371 about our market, about the retail2 opportunities in the City, again, focused3 primarily initially on the District, the4 Center City District. There are some5 specifics or outcomes that we've gotten.6 Again, I think what we'll do is get back7 to you with the specifics.8
Is there9 a particular reason why we don't have any10 more than just one like major department11 store in Center City? They don't want to12 come here? I mean, what is it?13
Well, it's14 pretty clear that there's reluctance to15 come here, but why exactly that is is16 probably ten different reasons and17 probably the subject of another18 discussion with a little more research19 behind it.20
Right. And maybe21 just to add to that, what we think about22 traditionally as department stores has23 changed dramatically over the last24 several years where discount stores,25 133 4/5/11 - WHOLE - BILL 1101371 big-box discount stores in fact have sort2 of stepped into the marketplace and3 consolidated. Macy's is one of a very4 few traditional department stores.5 Boscov's would be another traditional6 department store, but the rest of the7 market is basically Target and Wal-Mart8 and other sort of big box, and we work9 with all of those to find opportunities10 here, because the market is changing for11 them.12
I will13 mention, though, Councilwoman, that14 people like K-Mart, Target, even15 Burlington Coat think of themselves as16 department stores more or less in17 addition to the ones that we all18 traditionally think of, like Macy's, and19 obviously those do exist in various20 corners of the City at whatever level one21 perceives them.22 I will also mention one other23 thing that was told to me by Joe Coradino24 from PREIT. The downtown Macy's is a25 134 4/5/11 - WHOLE - BILL 1101371 pretty good performer in the world of2 Cherry Hill, King of Prussia, downtown.3 They're pretty good.4
Well,5 that's good to know. I mean, they don't6 have much competition.7
Look, I10 love K-Mart, I love all those kind of11 stores. I could go in there and spend12 hours in there, but there's other places13 you want to go for certain items, and I14 just wonder why -- in fact, one of my15 doctors that relocated here, I think I16 told you last year, from upper New17 Jersey, used to shopping in New York,18 could not believe when he came to19 Philadelphia Center City that we had just20 Macy's for him and his family. And maybe21 they prefer to go out to the suburban22 malls. I have no idea, but I was just23 wondering why. I mean, certainly when I24 was a child, we had plenty of the type of25 135 4/5/11 - WHOLE - BILL 1101371 department stores such as Macy's and all2 those other stores that have -- many of3 them, I know, have gone out of business,4 but we have new stores and I just wonder5 why they're not in Philly.6 Okay. Well, whatever7 information you can give us, that would8 be appreciated.9 I do have other questions. I10 wanted to just address the issue of the11 plazas that you want to do, the five12 plazas. I sent you an e-mail while you13 were testifying. There's a plaza at14 Greene and Chelten in Germantown that I15 believe was a product of the project of16 the Commerce Department. There's a small17 retaining wall there and that wall is18 actually starting to crumble. So it's19 nice if you put up plazas, but who is20 going to be responsible for maintaining21 them, the upkeep of them?22 Last year there was an event in23 Vernon Park. We're talking about the --24 you know exactly where I'm talking about.25 136 4/5/11 - WHOLE - BILL 1101371 And one of the residents walked up to2 Mayor Nutter and said, There's a wall,3 whatever, falling down, and the Mayor4 asked me if I would actually find out5 what she's talking about, and that's6 exactly the corner that I just said.7
Greene10 and Chelten. It's on the northeast11 corner. It's right there at the HXH bus12 stop. It's a small wall there. It's not13 like a huge million-dollar project, but14 it's a plaza. I remember when they did15 it. I can't remember whether I was a16 Councilmember or not. This may have been17 before I came to City Council. But it18 needs upkeep. Someone needs to maintain.19 So if you're going to do these20 plazas, they're fine, they look great,21 people use them, but if nobody is22 maintaining it, it becomes an eyesore,23 and that's what's happening at Green and24 Chelten.25 137 4/5/11 - WHOLE - BILL 1101371
Well, two2 things. One is, I'll just personally3 look into that one, because I want to --4 I have a pretty good image in my head of5 what it is, but I'll go and look at it6 again and make some inquiries.7 The other thing I would say is8 that what the Deputy Mayor for9 Transportation is talking about are not10 actually sidewalk-based plazas. They're11 actually little bits of the street that12 are not serving roadway purposes. They13 sometimes happen, for instance, at14 triangles where angle streets meet,15 orthogonal streets, and you wind up with16 some leftover road. Those are the kinds17 of places. There's a lot of examples18 particularly in New York where the city19 has sort of taken back the roadway for20 pedestrian use. That's really what21 happens. And the issue of maintenance is22 an issue, but I will make some inquiries23 on it as well.24
Well, I25 138 4/5/11 - WHOLE - BILL 1101371 can remember as a child what the City did2 or what the Commerce did is actually3 carve out an area for the buses to pull4 in rather than take up the street when5 they're loading passengers.6
Just sort of7 scanning my head for the image of it,8 it's not clear to me who is responsible9 for that space, but I'm going to find10 out.11
Because12 we've talked to the CDC and we've talked13 to a couple other people and we're just14 trying to figure out who is responsible.15
Because18 the wall is actually falling, and the19 Mayor asked me to take care of it for20 him.21 I have a couple more questions22 for OEO.23
Good morning,24 Councilwoman.25 139 4/5/11 - WHOLE - BILL 1101371
Good. Thank4 you. For the record, I'd like to state5 that my name is Angela Dowd-Burton,6 Executive Director of the Office of7 Economic Opportunity. I didn't get a8 chance to introduce earlier.9
Can you10 please discuss what your top three11 priorities are for this year?12
Absolutely.13 Well, there are actually four, but the14 top three are, first --15
Okay. To18 build our registry. The goal is to have19 as many companies in as large a variety20 of products and services in our registry21 as possible. That availability of22 companies, if you will, helps to drive23 the goals that we place in our RFPs and24 on our bid documents so that we can25 140 4/5/11 - WHOLE - BILL 1101371 increase the level of participation on2 City contracts. So that's the first3 goal, build a registry, which has grown4 over 28 percent in terms of the number of5 companies since January of 2010. We now6 have 1,708 companies in the registry, and7 growing.8 The second major goal for us is9 to build relationships, build10 relationships within the City government,11 understanding the needs of the operating12 departments, and the OEO officers that13 were commissioned by the Mayor last year14 within the operating departments are very15 much adding value in terms of the way the16 OEO staff understands the demands of the17 operating departments and the products18 and services that they need to acquire.19 So that helps educate us when we're20 putting in the goals for a particular bid21 or RFP.22 The third major area is23 outreach, expanding our outreach so that24 we can focus on the marketplace, building25 141 4/5/11 - WHOLE - BILL 1101371 relationships with minority and2 female-owned businesses who are3 interested in learning how to do business4 with the City. So we have three major5 programs that we launched over the last6 nine months. One is Doing Business with7 the City, Let's Get Started. It's a8 monthly program. The Procurement9 Commissioner and his staff participates,10 along with the Finance Department, L&I,11 PIDC. The state's Department of General12 Services also participates. And the13 underlying goal is to help provide14 information to minority and female-owned15 businesses and sort of demonstrate to16 them where the opportunities are and how17 they can pursue them.18 The second program that we have19 is Building Businesses, Putting People to20 Work. It's a program that we've worked21 with minority contractors on. The22 National Association of Minority23 Contractors, as well as the Minority24 Contractors Roundtable are major partners25 142 4/5/11 - WHOLE - BILL 1101371 in providing programs to the contracting2 community. And when I say "community,"3 that's not only minority and female-owned4 contractors, general contractors are also5 invited, because the goal is to help6 build relationships across the spectrum7 of companies there. We've had five major8 departments, from Aviation, Streets,9 Water, Public Property and Procurement,10 participate in those programs, as well as11 the RDA, PIDC, PGW and, of course,12 representatives from the state as well.13 And the third program that14 we've launched engages non-profits. We15 call it the Non-Profit Supplier Diversity16 Forum. The goal there is to bring in the17 top 100 non-profits we do business with.18 They represent over 80 percent of the19 dollars we spend across 415 non-profits,20 based on 2010's data, which was $1.921 billion that we spend with these22 agencies.23
That's24 the -- you mentioned the survey in your25 143 4/5/11 - WHOLE - BILL 1101371 testimony.2
And4 Greenberger's testimony, there's a survey5 that's mentioned. And in the testimony,6 did you say that you sent that to our7 offices?8
The results13 of the survey for the top 100 non-profits14 is on our website. The results of that15 survey basically indicated 13 percent of16 the top 100 non-profits actually have17 supplier diversity programs. They've18 spent -- those that do have them spent19 $78 million with minority and women-owned20 businesses. From a workforce demographic21 standpoint, 60 percent of the workforce22 are females and over half those employees23 are Philadelphia based. We have another24 over half are also minority.25 144 4/5/11 - WHOLE - BILL 1101371 So our goal was to understand2 the demographic and the structure of the3 non-profits, bring them in, identify the4 barriers that they perceive for not5 having supplier diversity programs and6 then work with them to eliminate those7 barriers so that they can use the8 companies within the OEO registry that's9 located on our website or they can use10 other minority-owned firms, but the goal11 is to have them engage the minority and12 female business community in their13 operations.14 COUNCILWOMAN MILLER:15 Thirty-eight percent is good, but we16 still need to like push it up. And I17 think most non-profits that I'm familiar18 with, most have female staff. The19 majority of staff people happen to be20 female. I come from the non-profit21 world. But it sounds really good.22 I just have a couple other23 questions. I served on the Mayor's24 Diversity Commission for 11 months and we25 145 4/5/11 - WHOLE - BILL 1101371 had 44 recommendations, and I'm currently2 on the new Board that continued, as you3 know. And I know some of those4 recommendations need to be implemented5 legislatively, but what are we doing with6 the others?7
In total8 there were 75 recommendations. Half of9 them dealt with the minority business10 community and the other half dealt with11 the workforce. We have work to do with12 the new MACCID Commission to prioritize13 all of those recommendations, with the14 understanding that we can't do it all at15 once.16
So we're19 looking at the most impactful20 recommendations coming out of the21 Commission.22
One other23 question. So right now your department24 is actually keeping track of the25 146 4/5/11 - WHOLE - BILL 1101371 participation or is your department2 keeping track of the participation with3 City departments regarding workforce4 diversity, contracting, et cetera? I5 believe somewhere it was mentioned that6 you're going to have some kind of new7 tracking system?8
So when10 will we be able to get a spreadsheet that11 shows what's happening in all of the12 various departments?13
Well, right14 now you have access to the participation15 reports that we actually put online on a16 quarterly basis. In fact, the second17 quarter will be released this week, and18 we'll go after activity for the third19 quarter. And that deals specifically20 with for-profit contracts and the21 participation of minority, women and22 disabled-owned businesses in those23 transactions.24 With regard to the workforce,25 147 4/5/11 - WHOLE - BILL 1101371 we are working with the Bureau of Labor2 Standards as well as the Department of3 Technology to put a tracking system in4 that will not only track our5 participation, it will also track the6 workforce and the diversity of the7 workforce on contracts for the City of8 Philadelphia.9 The timing on that, we have10 selected a company. We're in the process11 of negotiating with them now. We're12 hoping to finalize the contract this13 year, this fiscal year, and then launch14 into the development of the software in15 the beginning of the first quarter.16
Okay.17 I'd be interested in whatever is going on18 with that.19 One other question, Council20 President.21 I know you're not doing22 minority certification. You're no longer23 doing that. So do you have a pamphlet or24 "where to" guide, particularly for25 148 4/5/11 - WHOLE - BILL 1101371 start-up businesses? Is the Commerce2 Department providing technical assistance3 to new firms that need certification, and4 where do they go?5
Thank you for6 asking that question, because I neglected7 one of my colleagues in that Doing8 Business with the City, the Office of9 Business Services is a key partner10 working with us to get information out11 and into the community. And so we work12 closely with them to identify those13 companies that don't know how to get14 started. Their resources are those that15 support those companies that are trying16 to figure out where their strengths are17 and how they pursue business.18
Okay. So19 if I have someone, a constituent, that20 comes in and says they have an idea, they21 want to start a new business, who do I22 call?23
And even8 though you don't do certification, you9 will help them understand where to go and10 how to be --11
And put13 their packages together, et cetera,14 correct?15
Well, we're16 not going to put their packages together.17
Yes,20 absolutely. We will provide -- the21 Office of Economic Opportunity has on our22 website actually the certifying agencies23 that are approved across this region24 where they can go to get their25 150 4/5/11 - WHOLE - BILL 1101371 certification. Office of Business2 Services will provide the technical3 support for packaging.4
I had one5 call from a business, and probably more,6 but this particular person has been7 certified by the City forever, and then8 when you no longer started to certify,9 it's almost like she had to start from10 scratch. Isn't there some way that we11 could -- is there some way that you guys12 work together with the other agencies to13 say, Well, she's been certified with us14 for 30 years.15 My goodness, how could she go16 back and figure out and find all the17 documents from the first three years of18 business that I think she had to produce19 for certification for the state or for20 whomever? It just seems like people21 should be grandfathered in.22
And have25 151 4/5/11 - WHOLE - BILL 1101371 you had those kind of discussions?2
No, we3 haven't. But we'll be happy to speak4 with her, because the ultimate goal is5 for us to build businesses and put people6 to work. It's not to create barriers for7 them. At the same time, we want to make8 sure those companies that we report in9 our registry are certified. And the10 benefit of being certified in our11 registry is because we market not only12 across the City government but also in13 the private sector and the non-profit14 sector as well. So we'll see what we can15 do to help.16
I think17 she resolved the issue by going to the18 state, but she almost lost some of her19 contracts because she was no longer20 certified, but she had been certified.21 So I just think that there needs to be22 some grandfathering in of those kind of23 businesses that's been around for a long24 time and now all the sudden it's like25 152 4/5/11 - WHOLE - BILL 1101371 starting all over again.2
Thank8 you.9 The Chair recognizes Councilman10 Jones.11
Thank you,12 Madam President.13 And thank you, Mr. Greenberger,14 for your endurance. This is grueling.15 But let me first start by saying that16 sometimes you have to measure things in17 context to what else is going on in the18 world. The City has undergone and been a19 victim of a recession and retraction of20 our economy, if you would. It is global21 in perspective. It is something we22 haven't seen in our lifetimes, I don't23 think.24 In light of that, I don't think25 153 4/5/11 - WHOLE - BILL 1101371 Philadelphia has suffered as badly as2 some cities, and probably because of3 that, its recovery won't be as stark as4 other cities. So navigating through a5 storm like that, yet you kind of have to6 put things in context. In that context,7 I give credit where credit is due.8 I went to the opening of a Kroc9 Center, which is a large recreation10 facility, non-profit in nature, but11 served as an economic building block for12 that area. I watched then the visiting13 nurses build or locate in an abandoned14 building, keeping jobs in the City of15 Philadelphia. I watched Park West16 prosper even with the recession going on,17 and I watched a number of -- now Bakers18 Square. We were at the groundbreaking19 for that.20 I say that to say, I'd like to21 kind of be balanced in the review of a22 department, giving credit where credit is23 due. I note that there was an article24 citing that it's the largest number of25 154 4/5/11 - WHOLE - BILL 1101371 minority businesses in the last several2 decades. So if we give you the criticism3 when things are going wrong, we should4 also give you at least an assist, an 'ata5 boy, 'ata girl, 'ata person credit when6 things are going a little better.7 Having said all of the nice8 stuff I'm going to say --9
No, it's not12 a set-up. It is genuine. But I want to13 just go into some more challenging14 issues.15
It looks as17 though Hunting Park is coming back and18 beginning to show signs of life. I19 understand PIDC did an industrial land20 use study. Can you give us the salient21 points of that study and what were the22 teachable points within that study?23
I probably24 would make two points from it that I25 155 4/5/11 - WHOLE - BILL 1101371 think are critical. One is that the2 nature of industrial use related to land3 has changed, and Tasty is a great4 example. You can't have a factory that5 was arranged that way anymore, even6 though that's like the basis of all of7 our 19th century and early 20th century8 industrial buildings. It was too crazy,9 too inefficient, just didn't work. So10 notwithstanding Tasty's issues, they're11 in a much more efficient operation that12 also happens to consume more land than13 you would typically have in a multi-story14 building.15 So one of the points of the16 study was to say that the kind of17 industrial uses that are out there that18 are likely to happen here need more land,19 and we control a surprisingly small20 amount of it in an inventory to make21 available to those kind of uses. That's22 an issue that we have to confront. It's23 not that there isn't land. There's tons24 of land out there, particularly along the25 156 4/5/11 - WHOLE - BILL 1101371 riverfronts. We don't control a lot of2 it, and some of it has the usual3 hazardous material, pollution, clean-up,4 kind of brownfield issues are going to5 have to be reckoned with.6 So there's this odd thing of a7 lot of land out there, but not enough of8 it actually in direct service and support9 of the kind of industrial demand that10 tends to show up now. That's one thing.11 The second big point to the12 study is that historically there are many13 areas in the City -- and to name several14 of them, Kensington, parts of Germantown,15 parts of North Philadelphia -- that were16 the kind of core of this 19th century17 industrial base. They're clearly not18 that anymore, and we need to come up with19 new zoning ideas and zoning redo's to20 make those -- to put those areas -- to21 help put them back on the map. We're22 carrying too much kind of scattershot23 industrial zoning that doesn't apply24 anymore. And so the study's suggestion25 157 4/5/11 - WHOLE - BILL 1101371 was to look at those, identify those2 transitional areas that ought to be3 transitioned back to more normal4 residential and commercial activity.5
And6 downsizing of the inventory to7 accommodate new use?8
On the11 converse, how do you make the industrial12 land more marketable, more palatable to13 developers? What are your top three14 strategies to do that?15
Well, without23 sort of naming names that would mess up24 potential transactions, we're talking to25 158 4/5/11 - WHOLE - BILL 1101371 a number of businesses that own2 significant amounts of property that we3 think are in the right general location4 and the right type to see whether there5 are acquisition possibilities out there.6 So owning it is the first7 thing. Remediating it is often a big8 deal.9
Depending on12 use. Some uses you can easily put into13 formerly polluted areas, others you14 can't. So I would say that's the second15 one.16 And the third one is making17 sure that there is infrastructure,18 particularly roads, that provide19 reasonable access to these sites so that20 they're credible as industrial21 development.22
I wanted23 your top three, because notably lacking24 in your top three is energy use, which is25 159 4/5/11 - WHOLE - BILL 1101371 probably going to increase costs of2 manufacturing, costs of producing goods,3 and it seems to me that we might want to4 invest in a number of ideas to create5 energy-free zones or to try to find6 grants, opportunities to reduce the7 amount of energy consumed by a8 manufacturer, thus reducing the amount of9 cost of doing business in that location.10 Whether we talk about11 innovations such as the two rivers that12 we have by way of using. There was one13 idea about turbines.14
Correct.17 And another using solar power to reduce18 some of that, and whether there were19 federal and state tax credits or grants20 to accompany the acquisition of a said21 property to then enhance that value of22 that property by reducing energy23 expenditures.24 So I want to see vision by way25 160 4/5/11 - WHOLE - BILL 1101371 of our planning to better market those2 areas.3
I need to6 ask you then when a business comes and7 knocks on the door of the City of8 Philadelphia, what is the critical9 decision process by which you refer10 someone to Hunting Park, American Street11 or the Navy Yard?12
Well, I'll13 give you -- I'll answer that question14 with a forward that says, many times15 those kind of businesses that show up16 show up with a very particular idea in17 mind, that I want to be in this location18 or that location. Sometimes because --19 I'll give you a couple of examples.20 There have been businesses --21 we talked about one this morning -- that22 wants to move here from another part of23 the state. They specifically want to24 lease space in the Navy Yard because25 161 4/5/11 - WHOLE - BILL 1101371 they're a clean tech company and they see2 the emergence of this kind of clean tech3 nucleus that's happening at the Navy Yard4 because of this big Department of Energy5 grant. So there's -- it's like a little6 solar system of companies that are7 starting to come together and they all8 want to be in the same place. They come9 to us and say, Navy Yard.10 There are other companies, Teva11 is a good example, that have been --12 they're up in Bucks County, Lower Bucks,13 I guess. They're comfortable in that14 area. They found a potential property in15 the City of Philadelphia that's not far16 from where they do business otherwise and17 they came to us and said, We think that18 we're interested in that site, along with19 one in Bucks County. They kept this20 competitive for us.21 And so a lot of companies come22 with some idea in their head about where23 they want to be. To the extent that24 they --25 162 4/5/11 - WHOLE - BILL 1101371
I'm going to2 narrow that to the ones that don't have3 an idea.4
To the extent5 that they don't, which happens far less6 frequently, but to the extent that they7 don't, we start to look at several8 factors. One is how much land do you9 need. So how does it stack up against10 our own inventory of land. Two is where11 are your natural points of access that12 have something to do with how you move13 whatever it is you do, if it's a product,14 how are you getting it to market. The15 third is labor force, what's the nature16 of the labor force you need, where are17 those people more likely to be located18 and/or how do we get people from other19 parts of the City to those locations.20
I'm going to21 do this, and then I'm going to let it go.22 I'm going to do this and then I'm going23 to let it go. I am concerned about24 the -- if I were -- if we were talking25 163 4/5/11 - WHOLE - BILL 1101371 about a used car salesman, a lot of it is2 subjective and opinion driven, and if I3 have a relationship with one of those4 industrial facilities and it then becomes5 in my self-interest to promote that one6 as opposed to others and it becomes a7 self-fulfilling prophecy because you8 point at that one first, and then when9 you figure out the price point isn't10 right for that person, then you refer11 them to the wreck over here. And I'm12 saying --13
I'm saying16 to you that I will be paying particular17 attention to that, because I love every18 part of the City. I am a supporter of19 the Navy Yard. It's wonderful, but I20 represent the 4th Councilmanic District21 and the land of the brave, home of the22 free. And I want -- when someone comes23 in with a fresh set of eyes looking at24 Philadelphia, I want American Street25 164 4/5/11 - WHOLE - BILL 1101371 considered, I want Parkside considered, I2 want Hunting Park considered and not just3 the first place pointed to is the Navy4 Yard. I think at this tipping point, the5 velocity of that development will take6 over for itself. It is hot. But in7 order for the other areas to get hot, we8 have to kind of give them a little bit of9 attention as well. Not to say that you10 don't, but I will be monitoring that you11 do.12 I want to switch a little bit13 to commercial corridors. What's in the14 budget for commercial corridors this15 year?16
Well, Councilman, as17 you may know, that the majority of our18 funding for commercial corridors comes19 through the Community Development Block20 Grant process. We have a number of21 programs that we're looking to renew or22 continue going forward. Depending on the23 outcome of the Community Development24 Block Grant process will dictate how much25 165 4/5/11 - WHOLE - BILL 1101371 is actually in that bucket for commercial2 corridors.3
I would say9 approximately about $2 million right now,10 all total, if you wrap it all in there.11
So when you12 say "wrap it all in there," codify what13 you mean.14
So you got a million15 dollars for -- what we did this past16 year, we did a million dollars for17 neighborhood and economic development18 grants. So while all of those may not19 have been on corridors, that was a big20 portion of the dollars.21 Storefront improvement grant22 programs, we have ongoing processes where23 we put dollars into the storefront24 improvement grants. That's the Facade25 166 4/5/11 - WHOLE - BILL 1101371 Grant program. We also have Commercial2 Corridor Manager grants, and so we add3 those dollars in there. You have the4 mixed-use facility that you proposed for5 the use of resources going into the6 mixed-use facility. So that was a7 million dollars in and of itself right8 there in this past year. We're looking9 towards -- once we realize what the10 Community Development Block Grant11 process, we are at this time recommending12 that we hold steady those grants in that13 Community Development Block Grant14 process.15
Point of16 information for you. I have nine votes17 to say that's not enough money. So go18 back to the drawing board and consider19 some more. We have over 40 commercial20 corridors that you have an official21 relationship with and another hundred in22 the City of Philadelphia. We think23 that's woefully inadequate to do anything24 on any of them. I'm thankful for all25 167 4/5/11 - WHOLE - BILL 1101371 that I get, but I have Market Street to2 think about, from 46th to 63rd Street.3 We appreciate what SEPTA did to bring in4 a beautiful El and infrastructure, but an5 unintended consequence of what happened6 was 50 small businesses disappeared,7 family-owned businesses gone, devastation8 in its wake. So transitioning from that9 it is not enough money, so go back to the10 drawing board.11
I appreciate that.12 We would agree that it is not enough13 money.14
We're going15 to make sure we take care of you. I know16 you can't -- you're wearing an away team17 jersey, but we're going to insist upon18 that. You can consider this the revenge19 of PCDC. You can consider it that. And20 that's --21
It's made in24 gest.25 168 4/5/11 - WHOLE - BILL 1101371
Second thing7 is that that plan -- is there a plan for8 what I call New Market Street West? It9 is a transit-oriented development. We10 put all of that infrastructure in there11 from 46th to 63rd Street. Political12 note, that just about a half dozen13 elected officials border right there. So14 there are two Congressmen in that area,15 two State Senators in that area, about16 three Councilpeople -- no; two17 Councilpeople in that area, about four18 State Reps that all border right there,19 that if we just all put in a little bit20 of money and work with you guys, we would21 be able to all take credit for that. But22 there is no plan. There is no working23 group. And with that much that there are24 close to a million people that ride25 169 4/5/11 - WHOLE - BILL 1101371 transit within that boundary, it is --2 but the sad part of it is that most of3 that economic buying power for those4 respective neighborhoods goes to 69th5 Street out of Philadelphia or to Center6 City.7
What can we9 do? Where is the plan? When will we10 start working on that plan?11
Sure. There's a --12 we have done some work along the Market13 Street corridor. I think that a lot of14 our resources of late have been focused15 at the 52nd Street hub. We know that we16 are doing planning at 60th and Market17 Street, and we've looked to extend some18 work towards 63rd and Market Street so19 that we cover basically 63rd being kind20 of the drawing line of the City's21 boundaries and working in all the way22 through.23 And we agree. We work with all24 the various governmental officials and25 170 4/5/11 - WHOLE - BILL 1101371 elected officials along that corridor,2 and we have a working team for the Market3 Street revitalization. We work with4 PennDOT to drive some of the resources5 that are in there along there. We've had6 some conversations for a long year with7 PennDOT about what we could and can and8 cannot do. We've finally gotten some9 clarity about what that looks like, and10 now we're looking to go ahead and11 implement those along the corridor.12
I'm seeking13 a specific commitment from Alan -- I'm14 sorry; Mr. Greenberger.15
I'll be happy24 to do that and --25 171 4/5/11 - WHOLE - BILL 1101371
-- that2 consists of stakeholders from the state,3 stakeholders from the federal government.4 And I know both are crying broke, but5 within certain purviews and -- here comes6 my backup. I see her moving toward the7 mike since I'm talking about Market8 Street.9 I want to pull together a10 working group that includes the11 stakeholders. PHA, for example, owns 9012 scatter sites in my district that they do13 not have -- that are vacant. They do not14 have a plan to transit. If PHDC, if PHA,15 if the Commerce Department, if SEPTA, if16 all of us come together, DCED, the U.S.17 Commerce Department, small business, we18 can fix Market Street. And Councilwoman19 Blackwell had to suffer ten long years of20 telling people, Help is on the way, and21 I'm here to join the fight now, to join22 the fight to make sure that help is23 really on the way. But it doesn't start24 until we start seriously planning what25 172 4/5/11 - WHOLE - BILL 1101371 comes next.2 We believe increased density is3 appropriate there, but I don't want to4 introduce a bill that takes it from three5 stories to five stories until I talk to6 you, until we think it through.7
So I'm9 asking you to lead the way, because left10 unto Council, we'll lead.11
This is the12 kind of stuff that sort of drives our13 passion. It's about growth in the City.14 And as you correctly point out, it is15 going to take a lot of people with16 resources probably from a lot of places17 to sort of make a difference, but even18 before we get to that, because you're19 right, I mean, you could pass20 legislation, but if we haven't thought21 through what can we do, what's realistic,22 what's ambitious, what's realistic, where23 are the sources of money, what's a vision24 of how it looks like, it's all just sort25 173 4/5/11 - WHOLE - BILL 1101371 of hunted in the dark. I don't want to2 do hunted in the dark.3
And I4 appreciate that commitment on the record.5 Stenographer, you got that.6 No. I appreciate that.7
We look10 forward to working with you on that.11 My last question will be, I12 have been consistent in talking about13 Resolution 100748 and Bill No. 110143,14 which deals with contracting out and15 doing an analysis to look at issues that16 my colleague Wilson Goode and my17 colleague Blondell Reynolds Brown brought18 up about renewable contracts. They19 brought it up from the inclusion point.20 I would like to raise it from these two21 resolution and bill's perspective, that22 if we buy into a requirements contract23 that is a year or two years, financial24 conditions change, and if we don't from25 174 4/5/11 - WHOLE - BILL 1101371 time to time look at that change to see2 if it's in the benefit of the City, of3 the taxpayer ultimately, to take a look4 and say, Well, we did it this way when5 the market was at this point, it is now6 at this point, time to readjust.7 So I don't want to -- and I8 spoke with the Procurement Commissioner.9 I don't want to be a boil on the behind10 of progress creating an overlapping11 requirement where it is not necessary.12 So there may be exemptions that we might13 want to put our heads together to come up14 with, but I don't want us just spending15 money like we print it, because we don't,16 and in the process, one of the17 consequences may be inclusion, but I18 definitely want it to be driven based on19 efficiencies, based on contract price and20 competitiveness. So those respective21 resolutions and bills are designed to22 force us, force us to do the extra step23 to evaluate whether or not it is cheaper24 to do work in-house versus allow a25 175 4/5/11 - WHOLE - BILL 1101371 contract to exist that is not efficient,2 effective and cost effective.3 Thank you, Madam President.4
The7 Chair recognizes Councilman Goode for a8 point of information.9
Thank you,10 Madam President.11 I had a quick point of12 information on the previous question13 Councilman Jones asked or basically a14 number of issues he addressed, and I15 guess he called it the revenge of PCDC,16 and actually that was somewhat accurate,17 but I want to summarize some of his18 questions in asking a two-part question.19 One, has PIDC ever cried broke, and, two,20 does PIDC have a neighborhood commercial21 corridor strategy, and that includes22 small business lending?23
Could you24 just -- because, again, I have a lot of25 176 4/5/11 - WHOLE - BILL 1101371 trouble hearing in this room. What was2 that first question? I heard the second3 question.4
PIDC has5 never complained about lack of resources.6 PCDC was consumed by PIDC, with the7 thought that the neighborhood commercial8 corridor activities and the small9 business lending could all be handled at10 one place. And so I guess the question11 that's really being asked is beyond the12 CDBG resources, which may be limited and13 which may become even more limited. More14 importantly, as it relates to small15 business loan resources and other16 resources contained within PIDC, how17 exactly is PIDC involved in neighborhood18 commercial corridor development?19
Okay. Let20 me -- I hope this at least partially21 answers your question. Let me just22 recite for you some statistics from -- I23 guess it's this current year. So it's24 from June -- July 1st, 2010 through March25 177 4/5/11 - WHOLE - BILL 1101371 25th, 2011, just to give you a sort of2 general feel for it. And I'm happy to3 provide you this information.4 PIDC to this point has made 425 loans, of which -- and you can make sure6 I'm looking at the right place -- of7 which 20 of them are small business8 loans.9
Do you know10 if they're on neighborhood commercial11 corridors, and, if so, why wasn't that12 mentioned in response to the question how13 much money we have for neighborhood14 commercial corridors? And that's a15 historical problem with a tremendous16 amount of resources being housed at PIDC.17 There were very limited resources housed18 at PCDC. That's why it was thought that19 PCDC could just be rolled into PIDC, but20 the commitment was that a neighborhood21 commercial corridor, neighborhood22 economic development strategy would be23 developed at PIDC. And so it's not24 really a lack of resources per se.25 178 4/5/11 - WHOLE - BILL 1101371
In looking at2 the list of loans, I know that some of3 them are involved in commercial4 corridors; some not.5
At the end6 of the day, the best way to grow a7 commercial corridor is to start new8 businesses there, and particularly if you9 already have the retail demand contained10 there.11
Right, if the12 demand exists and obviously the13 businesses want to be there. And some of14 these are indeed on commercial corridors;15 others not. In fact, I can see a couple16 that are not.17 Also, I should point out that18 the sources are also varied, from CDBG to19 Urban Development Action grants, private20 financing, state enterprise zone.21 There's a mix also there as well.22
I23 understand, know the resources are there,24 but similarly as Councilman Jones talked25 179 4/5/11 - WHOLE - BILL 1101371 about attracting to Parkside and Hunting2 Park and American Street as opposed to3 just Navy Yard, similarly as people -- if4 you don't have people there doing5 neighborhood commercial corridor deals,6 if people don't feel that PIDC is a place7 to go to for small business loans,8 particularly in neighborhood commercial9 corridors, then it's not going to happen.10
Right. And I11 think we need to do a better job of12 making it known, because in fact it's13 almost halfway point of the loans made14 are in fact small loans, which is15 probably not known enough.16
And the17 final small point in this very long point18 of information is simply that we have a19 loan guarantee program that too many20 people have no knowledge of.21
Thank you,23 Madam President.24 COUNCIL PRESIDENT VERNA:25 180 4/5/11 - WHOLE - BILL 1101371 You're welcome.2 The Chair recognizes3 Councilwoman Sanchez.4
Most of9 my questions were answered, but I do want10 to kind of echo what Councilman Goode was11 saying as it relates to a long-term12 strategy around commercial corridors. I13 want to thank the Commerce Department.14 In the last couple years we've made15 tremendous progress on streetscape and16 actually getting those things done. So I17 want to acknowledge the work and18 appreciate the facilitation by Commerce19 and putting that money on the ground and20 actually doing them, Kensington and21 Lehigh, somebody in Kensington and22 Allegheny, Centro de Oro, very important,23 and I know we're doing some stuff in24 Frankford.25 181 4/5/11 - WHOLE - BILL 1101371 The next phase of that becomes2 exactly to what Wilson is talking about3 in terms of the amount of money we're4 going to be able to put in the street to5 encourage to fill in those vacancies. I6 was wondering if there's any commercial7 corridor money that's left from the bond,8 and I notice that we may want to think9 about reallocating to places where we10 started doing some work that we want to11 finish, and I specifically -- this is12 where I need Commerce to play a13 leadership role. I specifically want to14 look at the cleanliness and long-term15 sustainability of the corridors. I16 notice that for the Streets Department,17 particularly with the streetscape18 money -- with the stimulus money, we did19 not have the bellies allocated to20 corridors that we redid, and I was hoping21 that we could get some assistance in22 looking at that, because there's a missed23 opportunity.24 Here we're spending -- Centro25 182 4/5/11 - WHOLE - BILL 1101371 de Oro we're spending $5 million, but we2 don't have other things tied into that.3
I think, if4 you don't mind, I'm going to divide what5 you just said into two questions. First6 question was, is there money in the7 Commercial Corridor Bond money. No.8 We've spent it all on commercial9 corridors and cultural facilities. It's10 spent. It's almost entirely done and11 executed, unfortunately. I wish we had12 more.13 The second question, though, is14 an interesting one, because in Commerce15 we have ongoing programs of technical16 assistance -- and, Kevin, if you want to17 chime in on this. We have ongoing18 programs of technical assistance to help19 commercial corridors figure out how to20 manage, and they run anywhere from21 creation of bids, which is arguably the22 most complicated, to corridor managers23 vested in local CDCs. And we need in24 each case to work with communities to25 183 4/5/11 - WHOLE - BILL 1101371 figure out which one is most likely to2 work, to do the kind of clean and safe3 programs that are typically necessary to4 keep these things healthy.5 The other thing I want to6 add -- and then, Kevin, I'm going to ask7 you to chime in -- is that through8 zoning, through remapping, which is going9 to happen over the next several years, we10 also need -- I know you've heard me say11 this before. I apologize for probably12 repeating myself. We need to take a very13 careful look at commercial corridors,14 with an eye towards making them probably,15 not always, probably a little smaller so16 that we have better-run, denser,17 easier-to-manage, no-vacancy corridors18 rather than the ones that we have19 historically had, which were based on a20 city with much more population and,21 therefore, have more vacancies that we22 can't just magically fill because the23 uses aren't there and the demand is not24 there.25 184 4/5/11 - WHOLE - BILL 1101371
And, Councilwoman, I2 would also add to that. The opposite end3 of that spectrum is also to look at --4 that will help us -- the density aspect5 of that will help us manage those dense6 corridors to have businesses there. So7 they have different needs. Then there8 are corridors that just have no9 businesses there. There are parts of10 Germantown Avenue that are just vacancy11 after vacancy after vacancy. And then we12 need to look at that and determine what's13 the best approach to trying to engage the14 community, the businesses there or the15 businesses to locate there. So it's a16 both "and" in that regard.17 And so I think what Alan and I18 would -- I agree wholeheartedly with Alan19 to say let's break them down into smaller20 pieces and then look at the unique21 characteristics of each to then determine22 which way is the best way to approach it23 and resolving the problems.24
No; I25 185 4/5/11 - WHOLE - BILL 1101371 agree with you. My concern is the same2 way that Streets is coming or in this3 case Rina Cutler's unit is coming saying4 we want to do these plazas, I think that5 the fact that the Commerce Department did6 all these commercial centers and we7 didn't ensure and they didn't give us8 their part of the investment. I'm very9 disappointed that in the commercial10 corridors where we spent a lot of money,11 made a lot of investment and leveraged a12 lot of money are not on their radar13 screen in terms of investments for the14 big bellies and the other stuff. So here15 I am with these new corridors and they're16 all downtown, but I don't have them in17 the neighborhood. So it seems like why18 are we investing $5 million on the Centro19 de Oro and I can't get the big bellies20 there.21
So I24 need that coordination to happen in terms25 186 4/5/11 - WHOLE - BILL 1101371 of particularly the quarters where we've2 already made an investment.3
We got5 Centro de Oro, you have 5th and Lehigh6 going to Berks. You have 5th Street7 north, what we're calling 5th Street8 north, and we're working. Because9 cleanliness becomes key and being able to10 open up a Centro de Oro and maintain the11 cleanliness becomes important. So I need12 that discussion to happen.13
And I guarantee it14 will. The bellies are one thing. I15 would say in reference to what's in the16 budget --17
And then18 the long-term planning, attempts at a19 strategy. I think we just need -- that20 type of discussion needs to happen at a21 higher level so that the Streets22 Department is thinking about that as they23 make their investments.24
I think2 that's important.3 I want to acknowledge obviously4 Shinjoo's unit in terms of the diversity5 thing and language access. And I don't6 know if my colleagues know the work that7 the Commerce Department did in the Far8 Northeast as it relates to reaching out9 to the Russian-speaking businesses there.10 I want to acknowledge that hard work. I11 know it's something we've talked about12 year after year, and it was very13 successful.14 What other initiatives are we15 going to be doing? I'm particularly --16 and I know we tried this year, but is it17 in the plans for next year for the18 Portuguese-Brazilian community along19 Castor Avenue? Because I think the20 Russian -- that pilot demonstrated that21 there is an interest for those businesses22 to get engaged.23
The pilot is24 really going well, and it's the Russian25 188 4/5/11 - WHOLE - BILL 1101371 language. There's a French-speaking2 woman. These are on the back of two3 Vista volunteers that Shinjoo Cho has4 trained and sent out, who is working5 largely in Haitian communities where the6 French language works.7 We really like this program,8 and we're talking to Vista about9 expanding it, more languages to impact10 more parts of the City. It's a really11 good program.12
So the13 outreach for the Portuguese community14 will be next hopefully?15
Give us a16 list -- actually, the Portuguese-speaking17 community is one of the sort of18 noteworthy ones out there, but give us a19 list, if you wouldn't mind, of what at20 least within your own district -- and I21 encourage all Councilmembers to do this,22 tell us where you think those language23 issues are. That would be -- I think we24 know, but it would be helpful to hear it.25 189 4/5/11 - WHOLE - BILL 1101371
And we're confident2 that -- that's a Vista program that3 you're talking about, Shinjoo Cho's4 program. She works very closely with the5 Office of Business Services. So that's6 critical, and that's how we've been7 successful there. We are very8 comfortable and confident that we'll be9 able to expand that this year. And then10 the question to Alan's point is what are11 our greatest needs from the ethnic12 perspective and language perspective do13 we need to tackle, and then we will.14
Because15 I think that's one of those corridors16 that is very spread out, so it's going to17 be very hard to manage, but there are18 some densities as it relates to, like19 right below Cottman, that we may want to20 do some work.21
And the22 transitions as managed by zoning will not23 suddenly make somebody's business that's24 not in the sort of dense core illegal.25 190 4/5/11 - WHOLE - BILL 1101371 It will make them non-conforming, but2 they'll be legal, and the whole point is3 that over the years as those businesses4 transition out, then that's where you get5 the opportunity to kind of put the6 density back where you want to. So7 that's a multi-year task, and it8 obviously requires patience.9
No, but10 I think reaching out to these businesses,11 I was very -- when I first ran for12 office, folks were not engaged and really13 feeling like we were the bad guys, and I14 know that we've made some inroads, but15 it's very important, because they're an16 important part of the economy. They're17 setting up where nobody wants to set up18 and they're hiring where we need jobs,19 and to the extent that they feel like20 we're in this together, it's very21 important, and those first steps, just22 having the accessibility, I think is23 important.24 I wanted to go back, and this25 191 4/5/11 - WHOLE - BILL 1101371 is my last piece, around the2 manufacturing piece, particularly the3 PIDC report. How much money do we invest4 every time we create a job? Like do we5 have a formula that says this amount of6 money creates this job? Investment. I7 mean, we always hear about --8
-- the10 Naval Yard pieces, but I really want to11 get to a point where we can say we're12 going to invest so much money in this13 area that generates the most jobs and14 there's a formula base for it, and15 particularly as it relates to16 manufacturing, because I also want to get17 to a point where we're saying how much --18 if we looked at Commerce's budget, how19 much of that is going towards maintaining20 the manufacturing sector?21
I don't -- I22 mean, it's not a line item that says, so23 I don't know how to answer the question.24 There certainly is work being done25 192 4/5/11 - WHOLE - BILL 1101371 related to the manufacturing sector,2 because we engage with businesses3 regularly, both attracting and retaining.4 Teva is one we use a lot, but Penn Jersey5 Paper was a business retention program of6 a company that was actively looking to7 not be in the City and is actually8 staying there. But I just can't -- I9 have no way of quantifying it, at least10 off the top of my head.11
I think12 it's important. One of the things that13 I'm finding as I visit the smaller ones,14 maybe 25 jobs, 50 jobs, really feeling15 like some of the things that they're16 asking us for help is very minimal, but17 we have no way of tracking and quickly18 getting them the assistance. It may be19 something as simple as they're expanding20 and they're dealing with air quality21 issues, and I just -- I just feel like we22 need to -- there's some supports that23 need to be given to that sector so we24 don't lose them. And I visited a lot in25 193 4/5/11 - WHOLE - BILL 1101371 my district, and I have a lot of them2 that are looking to relocate. And I work3 with Commerce, but I just -- we really4 need to look at that sector in light of5 PIDC's report and the fact that those6 jobs are about 50,000. For districts7 like mine, that represents 13,000 jobs.8 I think we really need to use the report9 to say, Okay, what are we going to do to10 retain where we can and grow where we11 can, obviously looking at green and12 creative economy.13
For the -- I14 would ask you something, and, that is,15 for the smaller businesses, this is where16 the Office of Business Services is17 usually important, because if there are18 smaller businesses that you're aware of19 that are having these little problems,20 air management problem or regulatory21 problem, this is what Office of Business22 Services does, sort of like as a23 concierge service, and I would really24 encourage you to refer those businesses.25 194 4/5/11 - WHOLE - BILL 1101371 You probably do, but we don't know about2 them all.3
Right.4 Right. And that's where I'm trying to5 get to, that if it wasn't for the6 Manufacturing Alliance that's captured7 some of them, but we need to kind of have8 some sort of articulated now strategy9 around manufacturing for the City,10 particularly those in neighborhoods.11 Those jobs are incredibly important in12 neighborhoods.13
And they tend14 to exist obviously more in the15 neighborhoods than in the center.16
For all the18 obvious reasons of land values and19 proximity to highways and so on.20
Okay.21 So I just wanted to begin to look at that22 and not let the PIDC report become23 another report that sits on the shelf --24
-- but3 has an impetus to have a discussion about4 it.5
Obviously6 resources are what they are, but the good7 news is that both we and PIDC take the8 report seriously. It's not -- it's by no9 means a perfect predictor of where10 everything ought to be and we're always11 surprised every now and then by somebody12 who wants to be in a place where we13 didn't think anybody wanted to be, but I14 think it is a pretty good guidepost that15 we do take seriously. It is being16 actively used, for example, by the Zoning17 Code Commission to totally restructure18 industrial zoning throughout the City,19 and then that will have its -- that will20 show up then in mapping, which we'll wind21 up talking to you and other District22 Councilmembers about extensively over the23 next several years.24
Okay.25 196 4/5/11 - WHOLE - BILL 1101371 I'd like to be able to say that next year2 we have some sort of draft of what that3 commitment to that sector is.4
Because6 I think it's important for districts like7 mine.8
Thank10 you.11 Thank you, Madam Chair.12 COUNCIL PRESIDENT VERNA:13 You're welcome.14 I would just like to remind my15 colleagues that the members of the Board16 of Ethics have been patiently waiting to17 testify for quite some time. If we can18 just be a little briefer in our questions19 and answers --20
-- I22 think it would be very helpful.23 The Chair recognizes Councilman24 Rizzo.25 197 4/5/11 - WHOLE - BILL 1101371
Thank you,2 Madam Chair.3 When you brought up the Navy4 Yard, it made me think of a couple5 questions. How many businesses now6 occupy the site?7
I've heard8 John Grady tell me this three times and9 now I'm drawing a blank on it. Sorry. I10 just don't remember enough to be able to11 say.12
Let me put19 it this way: When you bring people to20 the Navy Yard, do we know how many that21 have occupied space there have failed?22 Has anybody failed? Is there a shuddered23 building there now?24
No. In fact,25 198 4/5/11 - WHOLE - BILL 1101371 if anything, there's very little space2 left, other than in two mid-rise3 buildings that are harder to figure out4 what to do with. I'm aware of only one5 business, at least in my tenure, that has6 actually moved out.7
This leads8 to me the worst-case scenario. We hear9 about a major business that's in trouble.10 When people go there, is there a strategy11 in the event -- why mince words. We know12 Tasty Baking is in big trouble.13 Hopefully they can sell it, or the worst14 case would be that it would close. What15 do you do then? What do you do with a16 facility like that? Hopefully you try to17 spin it off to another baking company?18 What do you di in the worst-case19 scenario?20
The21 worst-case scenario, which I don't think22 we're going to get to, by the way. I23 think this is going to have a good24 ending, this story, based on the25 199 4/5/11 - WHOLE - BILL 1101371 monitoring that we've done thus far with2 Tasty and their lenders. But in the3 worst-case scenario, this is a very4 high-efficiency, top-flight bakery,5 modern bakery, that has value separate6 from the company that's occupying it. So7 worst-case scenario is, you start8 marketing for that purpose. I don't9 think we're going to get there, though.10
Good. Well,11 that's a good thing to hear. You would12 think that with all those efficiencies,13 that -- maybe it's people's lives -- I14 don't know why they're having the trouble15 that they're having, but it's good to16 hear that. I'll leave it at that.17
Every company18 is different and has their own issues of19 debt and expenditure and operational20 costs that you can't just pin it down to21 one thing.22
Well, the25 200 4/5/11 - WHOLE - BILL 1101371 good news is -- Councilman Jones knows --2 is that the old site has been sold. Half3 of it, the distribution side, is actively4 being demolished to make way for a very5 large new Shop Rite and retail center6 that's going to serve several7 neighborhoods around it. There's also8 demolition going on at Hunting Park9 Avenue to make way for a pad site there.10 The building that is not coming down is11 the big factory building, very expensive12 to take down, probably has some reuse,13 not sure yet what it is. So it's just14 going to have to be stabilized and held15 for the moment.16
And the17 Budd -- I think we still call it that --18 in that location?19
Other20 buildings are still part of the old Budd21 holdings now owned by Mike O'Neill,22 particularly three very large industrial23 buildings that don't have a clear future24 and we're trying to think through what25 201 4/5/11 - WHOLE - BILL 1101371 the possibilities are of those buildings2 and who to attach to them to make3 something happen.4
Well, lots5 of challenges, and I know you'll get it6 done. Thanks.7
Thank you.14 Just real quick, and we want to15 get you out of here. An amendment to the16 whole industrial land use, it might be17 good to give Council a briefing --18
Respective24 to the districts, whether we're talking25 202 4/5/11 - WHOLE - BILL 1101371 about American Street or the waterfront.2 But we might want to kind of all be on3 the same page of that. In particular,4 PIDC conducted a study, a reuse study, of5 the Hunting Park industrial park. So if6 we were to codify them and kind of7 bring -- for example, in Hunting Park,8 Darrell Clarke and Donna Reed Miller also9 touch on that border, we would all be10 interested in -- Council at-large as11 well, but particularly the District12 Councilpeople would be interested in13 that. And so that we get a sense of the14 direction industrial land and land reuse15 is going in, and that would be very16 helpful for me.17 Also, just to recap on one18 other thing. Commerce launched a $7019 million small business support program,20 including new energy rebates programs,21 facades and commercial corridor grants,22 70 million, and if that is the case, how23 are you going to apply that? Where are24 you going to apply that? Is there going25 203 4/5/11 - WHOLE - BILL 1101371 to be a marketing effort? Which may2 address some of the concerns we have3 about commercial corridor support and4 actually investment.5
That's not a6 single pot of money. It comes from7 multiple sources with multiple directives8 behind it. For example, I think the City9 received -- I may get this number a10 little bit wrong, but it's something like11 $30 million from the federal government12 in ARRA money that have been consolidated13 into so-called Energy Works, directed14 money to very specific things based on15 applications for -- mostly applications,16 or at least half of it, applications from17 businesses for low-interest loans to do18 energy retrofits of buildings. That19 program, which actually didn't start that20 long ago, is now starting to close on21 loans that are in various parts of the22 City. It's also -- part of it is in the23 metropolitan region. We got a large24 piece of the grant because we coordinated25 204 4/5/11 - WHOLE - BILL 1101371 with the surrounding counties. So2 there's also demand from them, although3 it's not heavy yet on the commercial4 side, but I think we're about to close on5 our first commercial Energy Works loan6 from outside the City. And then a lot of7 it is for residential work.8
A part of9 that briefing that I talk about might be10 also identifying these types of new11 resources that are available, so that12 when someone walks into our respective13 offices, that we're armed with that14 information and can communicate to your15 respective departments and offices to16 refer people. There is a disconnect at17 this point --18
-- of what20 exists and what we know about and then21 what the public gets access to.22 So who in your department23 markets this program in particular?24
Actually, the25 205 4/5/11 - WHOLE - BILL 1101371 Energy Works one has a whole marketing2 effort that the grant is paying for and3 it's overseen by my Deputy Chief of4 Staff, Andy Rachlin.5
I'm pointing8 in this direction because I think he's9 here, but I haven't looked.10
Oh, yeah.14 I'd like to do the briefing on15 behalf of -- for all members of Council16 at the President's --17
We would be20 interested in knowing just a general21 strategy of where we're going and what22 kind of programs we're armed with to23 address some of those concerns, both in24 industrial land and particularly25 206 4/5/11 - WHOLE - BILL 1101371 commercial corridors and individual small2 businesses.3
Thank7 you.8 The Chair recognizes9 Councilwoman Brown.10
Thank you,11 Madam President. And I am going to12 reduce my questioning here because13 they've been adequately covered by14 Councilman Goode and Councilman Jones.15 On the continuing concern about16 commercial corridors and diversity goals,17 in this new commercial Energy Works loan,18 what is the level of consideration or19 thought given to making sure those20 dollars go citywide and do not fall in21 just one or two or three or four or five22 designated parts of the City when there23 are ten councilmanic districts? Number24 one. And, number two, the diversity25 207 4/5/11 - WHOLE - BILL 1101371 goals end of that. Forward that to Madam2 President. Because in all contracting,3 in all opportunities, those will be the4 consistent, prevailing questions for5 members of City Council. So I'd be6 interested in an answer to those7 questions on this new commercial Energy8 Works loan opportunity.9 There are 50 business corridor10 managers now, or at least let me say11 this --12
On of your testimony you talk about 5015 business corridor managers as an16 important step to serving our city's17 diverse neighborhoods. How are they18 chosen, what are their responsibilities19 and what is being done to track their20 reach in those neighborhoods?21
We train through --22 one of our programs that Shinjoo Cho23 leads is a training program for business24 corridor managers, and so business25 208 4/5/11 - WHOLE - BILL 1101371 corridors that we either have contracts2 through -- it could be either direct3 contracts with them or programs like --4 they might have a main street program as5 well, and she trains those staff from6 those organizations to go out and then7 carry the services of the City, how to8 navigate the City's bureaucracy, how to9 interact with the City in terms of the10 loan programs that we might have, also to11 understand how to interact with L&I,12 Health and all of those various13 organizations.14
No. These18 are grassroots organizations that come19 from the communities themselves.20 Sometimes they come in the form of a bona21 fide business improvement district that's22 a municipal authority. More typically23 they come from CDCs and business24 organizations who are looking for some25 209 4/5/11 - WHOLE - BILL 1101371 way to manage the corridor better.2
Okay. All3 right, then. So you essentially arm them4 with information that they --5
Right.10 They're not doing the work. We're doing11 the technical assistance part.12
The15 Chair recognizes Councilman Jones for a16 point of information.17
And then a18 list of them in our respective districts,19 who those contacts are would be helpful20 to us. Again, a disconnect to -- if I21 have a business question, I know who in22 your shop to talk to, but if I have23 someone interested in a vacant property24 along a corridor, to know that there is a25 210 4/5/11 - WHOLE - BILL 1101371 corridor manager there that do that heavy2 lifting, it's like valuable to us.3
It's typically7 through our CDCs, but we'll definitely do8 that.9
Then the10 last one -- and I believe Councilwoman11 Donna Reed Miller asked about this, but12 too often my office gets approached by13 new emerging small businessowners who are14 eager and earnest in wanting to start15 and/or grow their business, but really do16 not have a clue on where in government to17 go. And so it goes to the Business18 Services Center.19
We have a hotline25 211 4/5/11 - WHOLE - BILL 1101371 right there right now. That's 215 --2 we'll send you some information, but we3 have a hotline. We have individuals who4 manage staff that manage the particular5 geography for that who work for Curtis,6 and they each have a respective area7 that's divided up through the City. So8 we can send you that respective map. It9 has all the contact information, all of10 that.11
Very well.12 So there's interface with all of the13 chambers?14
The19 neighborhood business corridor managers,20 et cetera?21
All right,24 then. Thank you very much.25 212 4/5/11 - WHOLE - BILL 1101371
You're8 welcome. Thank you.9 COUNCIL PRESIDENT VERNA:10 You're always very informative.11
Thank14 you so much.15 MR. McPHERSON: The next16 department is the Board of Ethics.17
And I18 also notice that Dr. Curtis was19 scheduled, I think, at 1:30 to 2 o'clock.20 He too has been patiently waiting. So I21 would like to remind my colleagues to ask22 as many questions as you want to, but23 please be brief.24 (Witnesses approached witness25 213 4/5/11 - WHOLE - BILL 1101371 table.)2 (Short recess for3 stenographer.)4
Thank5 you so much for your patience. We really6 appreciate it.7
Mr.10 Brown, I assume you will be the one11 testifying?12
If14 you would like to abbreviate your15 statement, we could give a copy of it to16 the stenographer and it will be17 transcribed in full. That's your choice.18
Good21 afternoon. Kindly identify yourself for22 the record and proceed with your23 testimony.24
My name is William4 Brown and I am a member of the5 Philadelphia Board of Ethics, and we6 thank you for this opportunity to speak7 on the proposed budget for the8 Philadelphia Board of Ethics. With me9 today is Shane Creamer, our Executive10 Director to the Board. Other staff11 members here today as well include Deputy12 Executive Director Nedda Massar, General13 Counsel Evan Meyer, Associate General14 Counsel Maya Nayak and our Director of15 Enforcement Michael Cooke. 19 We take very seriously our20 mission to promote public confidence in21 the integrity and fairness of City22 government and to promote honesty,23 integrity and transparency in City24 government. We have made significant25 215 4/5/11 - WHOLE - BILL 1101371 progress towards these goals in the past2 year. 11 In 2010, we improved and12 expanded our education and training13 efforts and engaged in important and14 complex legislative and regulatory15 activity. 19 Under Training and Education,20 in 2010, the Board conducted three21 different categories of trainings and22 offered approximately 30 live training23 sessions that were attended by almost 50024 people. 16 We sent notices to more than17 300 individuals who might be interested18 in the campaign finance laws and19 announced a schedule of campaign finance20 training sessions in 2010, well in21 advance of the 2011 elections. Five of22 the Board's eight staff members were part23 of the campaign finance training team24 that redesigned and updated the training25 217 4/5/11 - WHOLE - BILL 1101371 materials. To date, our staff has2 conducted seven training sessions that3 were attended by 88 people. We have at4 least two more sessions scheduled before5 the primary election. 8 The Board is responsible for9 providing mandatory ethics training to10 City officials, employees and board and11 commission members. As with campaign12 finance training, the goal of ethics13 training is to prevent potential14 violations. Half of our staff members15 are involved in scheduling, designing and16 presenting in-person ethics training17 sessions. 21 The Board's recently adopted22 regulations on political activity by City23 employees, which became effective on24 March 28th, has created a demand for25 218 4/5/11 - WHOLE - BILL 1101371 political activity training before the2 primary election. Therefore, we have3 developed new training materials and will4 conduct training for human resources5 managers, departmental ethics trainers,6 City Council staff and other City7 officials in the next few weeks. 18 We are already conducting similar19 sessions this year. A very recent20 upgrade by the Records Department to the21 financial disclosure filing system has22 created another demand for training. 5 In short, in the past year, the6 Board has designed and offered a full7 calendar of training activities in8 several categories for hundreds of9 individuals. We expect this role to10 increase to five categories in the next11 few months as we add mandatory lobbying12 and political activity training to our13 training calendar. 17 All persons who are required to18 register as lobbyists must participate in19 training about the Ethics Code as well as20 the lobbying law. With the July 1, 201121 start date for lobbying registration fast22 approaching, we must begin training as23 soon as possible. 5 Also as part of lobbying6 training, we need to conduct outreach7 programs in the local business community8 to reach those people who may not be9 aware that they are subject to the10 registration, reporting and training11 requirements of the lobbying law. We12 expect that there will be a continuing13 demand for Board staff to train and14 assist lobbyists and principals in how to15 use the new mandatory electronic filing16 software. 19 In an effort to use technology20 to meet some training needs, Board staff21 continued in 2010 to develop an online22 ethics training module.
However, the23 project was delayed by the resignation of24 a key Board staff member and a technology25 221 4/5/11 - WHOLE - BILL 1101371 issue that is still being resolved with2 the assistance of the Division of3 Technology. 5 All of these training efforts6 were conducted by six of our eight staff7 members, and with all of our other8 responsibilities, we were stretched to9 the limit. The bottom line is that the10 demand for Board training is increasing11 faster than we can keep up with it. We12 need more staff to conduct training, and13 the Board's Fiscal '12 appropriation is14 insufficient to permit us to hire15 sufficient staff to do our job well. 19 Education and training are not20 limited to in-person classes. 24 Our Fiscal '12 appropriation:25 222 4/5/11 - WHOLE - BILL 1101371 The City Controller's top finding in the2 July 2010 audit of the Board was that a3 lack of sufficient funding could imperil4 the Board's mission. This conclusion was5 made without considering the additional6 impact on our small staff of the new7 lobbying law. The Controller also said8 that "in its first two years of9 operations, the Board of Ethics was10 unable to spend much of its11 appropriations. "15 The lack of funding described by the16 Controller has halted the Board's growth17 and made it challenging to fulfill its18 mandates. 22 The Ethics Board has been23 advised that its proposed operating24 budget for Fiscal Year '12 is again25 223 4/5/11 - WHOLE - BILL 1101371 $810,000. This is the same amount that2 our budget was reduced to three years3 ago. This includes $681,100 for4 personnel, 110,400 for services, and5 18,500 for materials, supplies and6 equipment. 15 With the current Class 100 appropriations16 for Fiscal Year '12, we cannot even fill17 our one existing staff vacancy. "8 We requested funding for three additional9 staff members at an estimated cost of10 $130,000 to conduct training for filers,11 provide advice, respond to help desk, to12 electronic filing issues, investigate13 potential violations, and conduct14 enforcement and continually update15 lobbying information on the Board's16 website. 23 We request your support for an24 additional $130,000 to fund three25 225 4/5/11 - WHOLE - BILL 1101371 additional staff positions in light of2 our vastly increased workload. With that3 additional funding, we could create two4 new information specialist positions,5 each with a salary of $34,000, to help6 administer the lobbying law, and a new7 supervisory/help desk position, with a8 salary of $50,000. 12 Each year, the Board is13 compelled to defend legal challenges to14 its authority and actions as well as to15 the City's law themselves. 22 During the past year, we have23 received almost $250,000 in pro bono24 legal services in two major ongoing25 226 4/5/11 - WHOLE - BILL 1101371 cases. 7 I would like to note that the8 Board understands Council's concerns that9 the City departments and agencies provide10 contracting opportunities for businesses11 owned by minorities, women and the12 disabled. 16 The Board of Ethics is17 committed to its mission of administering18 and promoting the City's public integrity19 laws. 12
Thank13 you very much.14 The Chair recognizes Councilman15 Green.16
In your21 testimony you said you hope the Board22 could work with the Administration and23 Council to make an internal transfer of24 $18,900 into Class 100 from other budget25 228 4/5/11 - WHOLE - BILL 1101371 classes and that's money that you don't2 need in the other budget classes. When3 you made that request to the4 Administration, what was the response?5
We made that6 request at the beginning of the budget7 season, and I'm not sure that we had a8 response at that time. We did get a9 response yesterday, though, and that's10 why we put in this testimony.11
That they would14 work with us to transfer the money. They15 advised us that even after the budget has16 been submitted, that there are ways to17 transfer money within our budget, and18 they said that they would -- oh.19 (Witness approached witness20 table.)21
So why not22 just amend the budget, if that's where23 you want the money? I mean, there will24 be changes to the budget. This will not25 229 4/5/11 - WHOLE - BILL 1101371 be passed as is.2 Are you requesting that we move3 the money from Class 200 to Class 100?4
We're asking the5 Administration and Council to work with6 us to transfer the money. However it7 happens, we don't really care, but just8 so that it happens so that we can fully9 fund that position. That's our goal.10
Just to add to11 that, Rebecca Rhynhart, Budget Director.12 That will be the request of the13 Administration, if we could move the --14 transfer the $18,000. It seemed like a15 reasonable request, so we were fine with16 it, and we would hope that we could make17 that change if you were amenable to it.18
Okay.19 COUNCIL PRESIDENT VERNA:20 Excuse me, please. For which fiscal year21 are we speaking?22
This is for23 Fiscal '12. I mentioned this to Charlie24 yesterday. For Fiscal '12 there is25 230 4/5/11 - WHOLE - BILL 1101371 $18,000 that was requested by the Board2 of Ethics to be transferred into Class3 100. They have, I believe, the rest of4 the funding necessary to hire an5 additional person, but they need that6 $18,000, which they can do without in7 their other classes. We thought that was8 okay. We would ask you to consider that.9
I10 heard about the 18,000. I didn't hear11 you mention anything about the 130,000.12
Right. That is17 not included in the Mayor's proposed18 budget to Council.19
But20 are you going to work -- is the21 Administration going to work with them to22 see how they can achieve this 130,000?23 Councilman, I'm sorry. I don't24 mean to --25 231 4/5/11 - WHOLE - BILL 1101371
The 130,000, as6 you know, we had to make difficult7 choices with the limited amount of funds8 we had available for the '12 budget. So9 that wasn't included in the proposed10 budget and that isn't part of the 18,00011 that we're asking you to make the change12 for. If you wanted to discuss the13 130,000, I mean, we can always have a14 conversation.15
Very16 well. Thank you.17 Thank you, Councilman.18
Madam19 President.20 While you're there,21 Ms. Rhynhart, there are funds, like $422 million for snow, we don't know if we'll23 need. We're funding Philly Rising. And24 when we passed the lobbyist registration25 232 4/5/11 - WHOLE - BILL 1101371 bill in Council, the Ethics Board came2 before us at that time and said, We are3 in favor of this bill, but we will need,4 if you pass this, extra resources. The5 Administration was in favor of that bill6 and understood that at that time, and it7 seems to me since we've passed it and the8 Mayor signed it, we now have an9 obligation to fund it to a level so that10 it can be implemented and enforced.11
We can discuss12 that with you and with Council as part of13 the budget process.14
Okay. But,15 I mean, you were talking about making16 choices between funding items, and Philly17 Rising or -- providing the necessary18 resources to implement a law that we19 agreed should be passed, or snow removal,20 which is a contingency, versus21 implementing a law that we agreed we22 should pass.23
To clarify, snow24 removal is more than just a contingency.25 233 4/5/11 - WHOLE - BILL 1101371 In terms of the last two years, we've2 spent well more than the million that3 we're asking for. But in terms of4 funding, giving additional funding to the5 Board of Ethics, we can definitely have6 that conversation, if that's --7
What's the8 rationale for the no answer, though? I9 mean, how are they supposed to do10 everything they're doing and implement a11 new responsibility? I don't understand12 the rationale.13
Well, I think14 that -- I mean, this is in general --15 departments have done more with limited16 resources through this fiscal crisis and17 have continued to do so, and so that's18 something that we tell departments all19 the time, that you have to do more with20 less. But if it's thought through21 conversations that the Board of Ethics22 needs these additional funds, absolutely23 needs them to do their work, I mean, I24 think that's something that we should25 234 4/5/11 - WHOLE - BILL 1101371 consider with you.2
Okay. I'll3 drop that there. Thank you.4 In Class 200 spending, the5 detail indicates the Board has6 professional services contracts ranging7 from 5,000 to 26,000. For seven of the8 eight contracts for the current fiscal9 year, all of which are continued in FY12,10 no contractor or provider name list is11 listed in the budget detail. Are these12 contracts already in place?13
It is an attempt18 to provide for or indicate the potential19 need for funding for support services20 perhaps in computer forensics or other21 kinds of services in complicated22 investigative and enforcement matters.23 At this point, though, we do not have any24 of those contracts let.25 235 4/5/11 - WHOLE - BILL 1101371
The total contract4 amount is, I believe, a little over5 $86,000 anticipated, of which only 5,0006 at this point in time is currently under7 a contract.8
So these are9 really placeholders in case you need10 those specific services?11
Okay. Are16 you going out with RFPs for computer17 forensics now, for example, so that you18 have a provider available when the time19 comes?20
We have not done21 that so far. We are not sure what our22 need will be.23
All I can24 say is, the process is long and painful25 236 4/5/11 - WHOLE - BILL 1101371 to get through the Law Department. So if2 you think you might need the services3 next year, I would start now.4
Or over the6 summer.7 Thank you very much for your8 testimony.9
Thank11 you.12 Are there any other questions13 from members of the Committee?14 (No response.)15 COUNCIL PRESIDENT VERNA:16 Again, I apologize for the delay.17
And I19 do appreciate your patience. Thank you20 very much.21
I23 think the Committee would like to recess24 for about 45 minutes. So we should be25 237 4/5/11 - WHOLE - BILL 1101371 back here at 3 o'clock.2 (Short recess.)3 MR. McPHERSON: Our next4 department is the Community College of5 Philadelphia.6 (Witnesses approached witness7 table.)8 COUNCIL PRESIDENT VERNA:9 You've been extremely, extremely patient.10 Thank you so much.11 Please identify yourself for12 the record and proceed with your13 testimony.14
Varsovia15 Fernandez, Chair of the Board of16 Trustees, Community College of17 Philadelphia.18 COUNCIL PRESIDENT VERNA:19 Welcome.20
Thank you.21 Good afternoon. My name is22 Varsovia Fernandez and I am Chair of23 Community College of Philadelphia's Board24 of Trustees. I am also President and CEO25 238 4/5/11 - WHOLE - BILL 1101371 of the Greater Philadelphia Hispanic2 Chamber of Commerce. With me today is3 also, I must acknowledge, Councilman4 Kenney, who is a member of our Board of5 Trustees. We're all appointed by the6 Mayor.7 My Board colleagues and I are8 government, civic and business leaders9 who represent a section of Philadelphia.10 We volunteer our time because we care11 deeply about Philadelphia and recognize12 the importance of Community College of13 Philadelphia to the future of the City.14 While Greater Philadelphia is home to15 more than 100 colleges and universities,16 Community College of Philadelphia is17 unique. First, because it is the only18 community college in Philadelphia and,19 second, because for many residents, it20 provides the only affordable access point21 they have toward a college degree or22 certificate.23 The Board of Trustees thanks24 Mayor Nutter and City Council for their25 239 4/5/11 - WHOLE - BILL 1101371 continued support of the College during2 these challenging fiscal times. The3 City's support is especially important if4 we are to continue to meet the needs of5 residents seeking to sharpen their6 skills, advance their careers and obtain7 employment.8 Despite our budget challenges,9 we have made quality education and10 student center services our top priority,11 but much of our future hinges on what is12 under this critical budgetary period. We13 ask that you consider the growing demand14 for our programs and the City's critical15 need for a more educated workforce. The16 City's financial support is essential if17 we are to continue to successfully meet18 our students' educational and training19 needs.20 Thank you, Madam Chair, for21 allowing my remarks.22
Thank23 you.24 Doctor.25 240 4/5/11 - WHOLE - BILL 1101371
I'm Stephen2 Curtis, President of Community College of3 Philadelphia. I thank you once again for4 the opportunity to speak with you today,5 and I also want to thank you for the6 long-time support that this Council has7 shown, not just in budgetary matters but8 in so many other ways as well. 10 I'm not going to read the11 testimony, the written testimony. You12 have that. 3 Second, there are immediate challenges in4 front of us, and I want to say a few5 words about that. And then, lastly, a6 couple of words about the future. 14 First, the written testimony15 includes some highlights -- and I'll16 mention two or three -- about the17 progress that I think we're making as a18 college. I think I said probably the19 same thing last year. For the last two20 years, we have been setting all-time21 records for credit enrollment at the22 College. So even though these are23 troubling times and challenging times, we24 view this as a positive. This is a25 242 4/5/11 - WHOLE - BILL 1101371 moment when particularly because of the2 economy, the residents of this City need3 us the most, and we're very pleased that4 we continue to take in the residents who5 need our programs and services. It's a6 stretch sometimes, but in fact it is what7 we should be doing. 2 So we have completed an3 expansion at the Northeast Regional4 Center. It is literally twice as big5 now. 10 We're in the process of11 expanding at the main campus. That still12 has a ways to go. But as an example13 there, we are creating new space for our14 Culinary Arts and Hospitality Management15 program. It's not only new kitchens, new16 equipment, new everything for the first17 time in 20 or 30 years, but the number of18 work stations will expand. 21 And on a smaller level, we're22 also expanding the West Philadelphia23 Regional Center. We've had the24 opportunity to lease some space right25 244 4/5/11 - WHOLE - BILL 1101371 next door, are doing that, and by this2 fall we'll have created additional3 computer classrooms and additional4 learning support space for students. 13 And I won't go through all the steps that14 we're taking right now, but there are15 many, and the bottom line is, we're16 trying to align both with President17 Obama's call about college attainment but18 more locally Mayor Nutter's call about19 increasing the number of residents that20 hold a college degree. We've actually21 set ourselves benchmarks year by year,22 and while we're not hitting every23 benchmark exactly, the number of24 graduates is definitely going up each25 245 4/5/11 - WHOLE - BILL 1101371 year. 4 And the last example -- there5 are many more in the written testimony,6 and I won't go through them. "13 We have several faculty that are teaching14 college courses as part of the15 pre-release program, so that as the16 prisoners are then released, they already17 have a head start on an education track,18 are then coming to the College, in19 effect, with credits in hand. It's20 actually a unique program. We have21 college students going to the Cambria22 Community Center to take the courses23 there with the individuals in the24 pre-release program. 11 The challenges. They're pretty12 easy to describe. Through no fault of13 city or state, we are in a period, not14 just right now but have been for a bit,15 where our public sponsors, the City and16 the state, are unable in many cases to17 provide the kind of support that we need,18 particularly if I'm telling you we're19 setting all-time record enrollments. The20 most immediate challenge probably on the21 horizon is at the state level for next22 year. There's been plenty of publicity23 about the proposed state budget, huge24 cuts in basic education, but also higher25 247 4/5/11 - WHOLE - BILL 1101371 education. While the community colleges2 are not on the high end of those cuts, we3 are getting our fair share. The proposal4 is that we would have our allocation from5 the state reduced by ten percent. 10 This is a multi-year problem.
22 We're not waiting until next year. We23 are freezing vacant positions. Not all24 vacant, but probably half of the vacant25 248 4/5/11 - WHOLE - BILL 1101371 positions that we have right now. We are2 planning now to reduce departmental3 budgets for next year. We are going to4 curtail programs and services. We can't5 keep doing the same thing. 9 But the biggest interest I10 always have when it comes to budget is11 what's the impact on students. At the12 end of the day, there's a reason that13 community colleges try to maintain14 affordability. We want the cost of15 higher education not to be an impediment16 to the residents of this city. So,17 again, starting next year, if things18 don't improve, we'll be facing a series19 of probably larger-than-ever-almost20 tuition increases. That's why it's21 important both at the City level and the22 state level, for that matter. 11 Unfortunately, we'll always get the most12 students when there's the least money13 available. Those things don't always go14 together. So I think it is going to be15 important for the City and the College to16 look forward, because it's not a17 single-year problem. 12 Good afternoon. 14
My name is15 Ineisha Tetefeo. I'm 24 years of age and16 I've lived in East Oak Lane for half of17 my life and East Mount Airy for the other18 half of my life. Currently, I'm19 unemployed and I'm a full-time student at20 Community College of Philadelphia.21 As many know, the College is22 known as the path to possibilities. This23 has been very true for me. I attended24 Harcum College prior to coming to25 251 4/5/11 - WHOLE - BILL 1101371 Community College of Philadelphia. There2 I experienced the entire traditional3 campus life, which included living on4 campus, but life there ended rather5 quickly for me because it was too6 expensive and it did not offer the things7 that I thought was necessary. On the8 other hand, Community College of9 Philadelphia was affordable, offered10 small class sizes, which helped me not11 become so overwhelmed and allowed me many12 chances to ask questions and get to know13 my professors.14 For many years I cried and I15 prayed, and finally my prayers were16 answered as I received a letter stating17 that I could apply for a full scholarship18 at the College upon meeting the19 requirements. The scholarship is called20 My Degree Now. I was so excited to21 return to the college that I had attended22 in high school through the Advanced23 College Experience program. I now could24 hope to finish my degree in paralegal25 252 4/5/11 - WHOLE - BILL 1101371 studies at a school that is approved by2 the American Bar Association. Now two3 years later, I will be graduating this4 May with a degree in paralegal studies, a5 degree in business and a certificate in6 management. Moreover, through the7 internship class offered at the College,8 I have been offered a job following my9 graduation.10 In my opinion, my path to11 possibilities through Community College12 of Philadelphia gave me opportunities13 that would not have happened without My14 Degree Now program. I now will be able15 to give back to the economy because of16 this.17 I have become a leader in so18 many different areas that I could not19 have imagined. It has not been because I20 had high SAT scores or the funds to make21 it, but rather the College gave me an22 opportunity because they had the funds,23 the faculty and staff to make my dreams24 come true and expand my horizons.25 253 4/5/11 - WHOLE - BILL 1101371 After graduation, I will be2 prepared to enter the paralegal workforce3 in addition to continuing my education.4 I will be applying for the Mayor's5 application for a full scholarship to6 Peirce College to pursue my Bachelor's7 Degree in business administration, with a8 concentration on law. I hope to be a9 student leader there just as I have been10 here at Community College of11 Philadelphia.12 Here is a list of some of my13 accomplishments while on the Academics14 Honor List at the College. I'm the15 President of the Peer Legal Student16 Association, a student ambassador. I sit17 on Student Government for a judicial18 committee and student affairs. I'm a19 representative for the Philadelphia Leads20 program, a peer mentor at Community21 College and a member of the National22 Black Child Development Institute.23 As you can see with the24 opportunities given to me here at the25 254 4/5/11 - WHOLE - BILL 1101371 College, I have been aggressive about2 achieving my educational and career3 goals, but equally persistent about4 community service, dedicating many hours5 serving my community to help others6 succeed.7 In summary, I quote poet8 William Butler Yeats in relation to what9 the College has done for me. "Education10 is not the filling of a pail, but the11 lighting of a fire." The College has12 truly lit my fire, and I have been a13 success because of it. I owe thanks and14 much gratitude to Community College of15 Philadelphia for making a way for me when16 there seemed to be no way.17
Yes. My name is21 Carl Thompson. I am a student, soon to22 be graduate and advocate for the23 Community College of Philadelphia. I24 would like to thank City Council for25 255 4/5/11 - WHOLE - BILL 1101371 allowing me to speak about my experience2 at the College.3 Philadelphia has been my home4 all of my life. I was born and raised in5 West Philadelphia at 56th and Baltimore,6 and I am a product of the City's7 education system, both public and8 private.9 Having a passion for animals10 and animal science, I aspire to become a11 veterinarian and eventually own my own12 veterinarian clinic.13 As a 21-year-old black male14 from Philadelphia, statistics are15 unfortunately against me. However, the16 Community College of Philadelphia is out17 to prove statistics wrong. The College18 provides essential skills and knowledge19 that Philadelphia youth such as myself20 who are looking forward to a career and21 opportunity to improve their lives. This22 is one of the main reasons why I chose to23 attend the College. Having high24 aspirations, I needed to use every25 256 4/5/11 - WHOLE - BILL 1101371 available resource and avenue to attain2 my goals.3 I needed an institution to4 prepare me for the rigorous science5 courses I was soon to face in6 veterinarian school, and the College's7 Associate's Degree and science program8 aided me in that preparation. The skills9 I'm learning in the science program will10 be essential in my academic career.11 Philadelphia is a college city,12 and Community College has partnerships13 and transfer programs with many of the14 neighboring colleges and universities.15 The College saves students thousands of16 dollars in tuition by providing17 affordable higher education courses that18 are accepted by Philadelphia's many19 four-year universities and colleges.20 Furthermore, the College is a21 great transition school for many22 graduating high school seniors. The23 course material and textbooks are the24 same, and the demands of the courses are25 257 4/5/11 - WHOLE - BILL 1101371 the same, if not more, than any four-year2 university. A community college goal3 should not just be to push out graduates4 but to create better students, and5 Community College of Philadelphia does6 this. The College creates better7 students who are firmly prepared for8 their transition to a four-year school.9 For these reasons, I chose to10 attend Community College of Philadelphia,11 and for these reasons, also why Community12 College of Philadelphia is pivotal in13 producing the future professional14 workforce of the City of Philadelphia and15 the global community.16 Thank you.17
Thank18 you. Thank you both very much. We19 appreciate your coming in.20
We're happy to21 answer any questions that the Council22 might have.23
Thank24 you, Doctor.25 258 4/5/11 - WHOLE - BILL 1101371 What is the present enrollment2 at the College?3
By the end of this4 year, we will have enrolled about 40,0005 different students, the majority of6 those, probably three-quarters, are in7 our credit programs, heading toward8 degrees or certificates, and the other9 are in our non-credit programs, adult10 basic education or literacy programs,11 let's say, workforce training and the12 like.13
It's14 amazing. You also indicated that the15 state -- you're anticipating that the16 state will be cutting your funding by17 approximately $3 million.18
Is20 the City providing the same budget as you21 were given last year?22
The recommendation23 that's come to you as Council as part of24 the process would keep us whole from this25 259 4/5/11 - WHOLE - BILL 1101371 year to next, yes.2
Tuition is $1285 per credit. There are also fees, just so6 I said that. So for a typical student,7 when you add in fees, it's probably about8 $160 per credit.9
Thank10 you.11 The Chair recognizes Councilman12 Goode.13
Thank you,14 Madam President.15 Good afternoon, Dr. Curtis. I16 had the opportunity to go to Community17 College to meet with some members of your18 teachers union probably about a month,19 month and a half ago, and they were, of20 course, very concerned with the cuts,21 potential cuts, coming from the state and22 asked me the question of what I thought23 the City might be able to do. And I said24 I do not believe that we're going to be25 260 4/5/11 - WHOLE - BILL 1101371 able to provide more funding necessarily,2 but that we would consider it. But one3 idea I had was looking at Community4 College as a workforce development5 entity, which we've discussed in the6 past.7 And so my first question is, is8 Community College a direct recipient of9 any workforce development funds?10
Well, it depends14 on the year. For example, right now we15 have two workforce development programs16 that are funded by stimulus dollars.17 Those are -- I guess the one is to train18 residents on one of three tracks -19 medical insurance billing, computer20 network administration or administrator,21 or human services assistance, social22 services assistant. So that kind of23 funding, and true for the other one as24 well. Different training area, but it's25 261 4/5/11 - WHOLE - BILL 1101371 very specific, with the goal of getting2 participants in entry-level jobs.3 One thing we've done different4 with the one I just mentioned, those5 three tracks, a lot of our workforce6 training is not for college credit. It's7 training. You're trying to create8 competencies and skills. Well, we're9 doing that here, but we've actually10 attached college credit to it, because11 we're looking at this as a kind of12 two-for. How can we get the participants13 into an entry-level job, but if they've14 also got some college credit from it,15 then that means they can come back either16 immediately or later on and start17 pursuing a full Associate Degree. So18 this is a kind of new approach to19 certificates, credit certificates.20 Anyway, those are two examples.21 We obviously apply for WIB-related22 funding. Again, it's different kinds of23 tracks depending on what's available.24
This is25 262 4/5/11 - WHOLE - BILL 1101371 exactly the type of conversation I had2 with them and the type of perspective I3 offered. I view workforce development4 investments as going to three different5 areas. One, to certify training6 providers, which is probably the bulk of7 the money and the bulk of the attention;8 also to businesses for customized9 training; and also to individual training10 accounts, which are like training11 vouchers.12
What I14 expressed to the faculty there was that15 if Community began to aggressively16 develop itself and market itself in those17 three areas, one as a certified training18 provider, one as a place where19 businessowners could go to and receive20 customized training for their businesses,21 or also to be the recipient of individual22 training accounts, that those are options23 for not necessarily more money coming24 from the state or federal government, but25 263 4/5/11 - WHOLE - BILL 1101371 the money being used more effectively and2 working both for workforce development3 and working to meet some of Community's4 needs. So I'd be interested in exploring5 that with you further as I explore6 workforce development and as the WIB and7 the Workforce Development Corporation8 began to align and form its new entity.9
I agree with all10 that, and we do all those things, just so11 I've said. That doesn't mean we12 shouldn't be doing more. So I absolutely13 agree.14 I will say that one of the, I15 guess, consequences of the current16 economy, there are many employers that17 are not only downsizing, but they're not18 necessarily investing as much right now19 in training, because we do a lot of20 customized job training, and we've seen21 the difference lately. Also, there are22 employers that are cutting back on23 tuition reimbursement, for example, for24 their employees.25 264 4/5/11 - WHOLE - BILL 1101371 I'm assuming and hoping at some2 point that will turn around a bit, but,3 again, the reality of the current economy4 is, it's not quite as vigorous I think in5 terms of some of those opportunities as6 we may have had in the past. But the7 three tracks that you've described,8 absolutely, we should be doing all of9 those things.10
Okay.11 Great. The second line of questioning,12 of course, is about contracts, but rather13 than walk through the process of last14 year of looking at goals and what was15 achieved, what I've been doing this year16 is actually looking at the process and17 first by examining the largest contract.18 So what is the largest contract that you19 expect to award in Fiscal Year '12?20
I don't know the21 answer to that. I can tell you the22 largest ones last year, but I'm not sure23 if I know the answer the coming year.24
Largest one25 265 4/5/11 - WHOLE - BILL 1101371 this year or prior year. Any of that2 will do.3
Last year there4 were two that were by far the largest.5 One was for cleaning services. That's6 overnight cleaning services at the main7 campus. And the other very large one8 last year would have been furniture. I9 mentioned construction. We actually had10 to furnish a new building.11
About a million14 dollars. And the furniture, probably15 three-quarters of a million.16
I was24 getting there.25 266 4/5/11 - WHOLE - BILL 1101371 Is it a renewable contract?2
It's renewable,3 surely. Maybe I misunderstand. It's a4 finite term for the contract. We then5 rebid it. Is that what you mean?6
The next7 question was, how long has the firm held8 the contract?9
Okay.20 That's it.21 Thank you, Madam President.22 COUNCIL PRESIDENT VERNA:23 You're welcome.24 The Chair recognizes25 267 4/5/11 - WHOLE - BILL 1101371 Councilwoman Brown.2
Thank you,3 Madam President.4 Good morning -- afternoon.5
We've only7 been here since 9:00.8 There's no question at all in9 how well CCP does in its principal10 mission, which is that of educating11 Philadelphia residents and the like. And12 so I commend you for the work that you're13 doing, for your testimony. And as it14 relates principally to your mission, last15 year you talked about the Center for Male16 Engagement. Update us, if you will, on17 the success rate of that effort and has18 it indeed enhanced the African American19 male enrollment at CCP, and what is the20 status of the funding?21
Good enough.22 First of all, this is the second year of23 the Center's operation, and it is male.24 It's not just African American male.25 268 4/5/11 - WHOLE - BILL 1101371 It's all males, although the majority of2 our males are African American or Latino.3
First of all, in5 terms of its success, we are very pleased6 with what it has accomplished so far.7 It's a year and a half in. I don't know8 that I have the specific percentages with9 me today, but we are on a regular basis10 comparing persistence rates, those kinds11 of things, with males that do not12 participate in the Center and with other13 kinds of benchmarks. And we know that14 the persistence has absolutely increased15 because of it.16 When I talked about it last17 year, I think I mentioned in addition to18 an array of services, there are full-time19 staff there that we call coaches who work20 directly with the students. That has21 been a change. We didn't have a core of22 full-time staff that were doing just that23 previously. So that's one of the24 principal differences.25 269 4/5/11 - WHOLE - BILL 1101371 Another difference, we are2 starting, as many men as will come in the3 summer, in a summer program before they4 enter. So we've had one summer5 experience with that. We've only tried6 it once. But, again, as part of the7 whole picture, we believe it's making a8 difference, because the persistence is9 definitely up.10 In terms of funding, it is11 primarily funded at the moment with12 external funding. That's federal13 funding. That's how we got it up and14 running in year one. And we have applied15 for a continuation funding that I think16 will go up to as many as four years. We17 have not heard back at this point, so I18 can't answer that. But we're prepared to19 somehow staff it if we don't get all of20 that funding. We actually have two21 proposals out right now. So for the22 immediate future, we're trying to use23 external funding to keep it going, and24 then eventually we will try to build it25 270 4/5/11 - WHOLE - BILL 1101371 into the infrastructure.2 I think I've described earlier,3 it's hard to keep everything within the4 infrastructure right now, just because of5 the economic challenges, but at the6 moment, I would say it looks very7 positive that we'll at least get several8 years' funding.9
And so is10 there a beginning and an end to that11 program of young people involved in that12 for X period of time?13
No. They have14 access throughout their time at the15 College. Oh, absolutely.16
So it's17 designed to provide supports, life skill,18 academic support so that young people can19 indeed --20
All of that. And21 translate "coaching" literally. We want22 face-to-face engagement with the student23 so that we are intervening as it's24 appropriate or at least interacting on a25 271 4/5/11 - WHOLE - BILL 1101371 regular basis. Sometimes it's just a2 conversation to make sure you're not3 missing class, that there aren't things4 going on in your life that would get in5 the way. I think you understand the6 nature of those things.7 COUNCILWOMAN BROWN:8 Absolutely. And if there are things in9 your life that are serving as10 impediments, providing problem-solving11 skills to help --12
All right,15 then. Now let's move to the business of16 educating. You talked about the actual17 mission statement, and I want to do a18 followup to Councilman Goode's line of19 questioning. Did you say that the CSI is20 a certified disadvantaged business?21
I believe that's22 right. I know it's a woman-owned23 business.24
Might4 there exist in your infrastructure a5 process whereby young people who are6 students at CCP who need work and want to7 work can be the first go-to pool for8 employment in that company?9
I don't know the10 answer to that. The answer at the moment11 is, that does not exist, I believe.12 Okay? I don't know whether that could13 exist or not. This is a service14 contract. It comes with many15 expectations, performance expectations,16 right, including the need for additional17 staff on short notice. But I honestly18 don't know the answer to that.19
Okay. And20 the same line of questioning around the21 furniture contract that you have. Is22 that a certified-owned business?23
That is a24 minority-owned business.25 273 4/5/11 - WHOLE - BILL 1101371
Throughout5 the -- well, at least for the past year,6 I had a number of conversations with7 disadvantaged businesses around the8 construction opportunities or projects9 happening at CCP. And so at last year's10 testimony, you stated CCP has benchmarks11 for construction projects which are12 similar to City benchmarks. Please, if13 you could, detail the current large and14 small construction projects you now have15 going on at CCP.16
I can answer for17 the Northeast project, because that is18 complete. We're not far enough along in19 the main campus, I think, to give you20 numbers that would be true or relevant21 yet, because there are plenty of22 subcontractors and others that have not23 been hired yet. They have not worked.24 But for the Northeast, the25 274 4/5/11 - WHOLE - BILL 1101371 benchmark for minority-owned business or2 contractors was 25 percent. We achieved3 17 percent. For women-owned contractors,4 it was ten percent. We achieved seven5 percent. For disabled-owned, the6 benchmark was two percent. We achieved7 15 percent. So the total was 39 percent.8
Do you9 give any weight to Philadelphia-based10 businesses?11
We attempt to do12 that. It is a bidding process at the13 end.14
So in your18 bidding process, do you give weight to19 the Philadelphia-based businesses?20
I don't know -- if21 you mean by that extra points or22 something, I don't think the answer is23 yes, no.24
Currently25 275 4/5/11 - WHOLE - BILL 1101371 your budget from the City is 4 million;2 is that correct?3
It's not looked at18 separately; that is to say, it goes into19 the general operating pot for the20 College, as would the state funds, as21 would tuition and fees. So the general22 answer to your question is, 85 percent of23 all of our expenditures are personnel,24 salaries, benefits, et cetera. That only25 276 4/5/11 - WHOLE - BILL 1101371 leaves 15 percent for everything else.2
Yes. It6 gets me closer to the question.7 Do you have in your8 infrastructure on the management side9 professionals whose principal duty is10 that of meeting and/or exceeding the11 goals you've set around disadvantaged12 businesses?13
That is part of14 our normal process within the purchasing15 area. So I would say the answer is,16 everyone in that area is expected to17 pursue those goals.18
Okay. And19 so what would be CCP's policy on business20 diversity? Is there a written policy as21 such?22
I don't know if23 there's a policy, but there is a set of24 practices that we absolutely follow.25 277 4/5/11 - WHOLE - BILL 1101371 Well before we go after or put RFPs out,2 our normal process is always to be3 identifying potential vendors, minority,4 women-owned, et cetera, and we do it in5 specific ways. We work with the various6 chambers of commerce in the City, et7 cetera.8
It means that the11 individuals in purchasing -- I go back to12 the first part of your question --13 literally meet ahead of time and are14 soliciting the names of potential vendors15 in the areas where we would spend money.16 We do the same thing through appropriate17 organizations. I don't know if I know18 all the names of them, Pennsylvania19 Minority Business Enterprise Center, et20 cetera, et cetera.21
We do that. About23 every other year, we host a minority --24
Tell me4 about that as well, because that was one5 of my questions as well.6
Well, we're the7 lead for that, but in recent years we've8 been joined by the City, by a couple of9 other universities.10 So we send out to all of the11 above that I just mentioned an12 announcement about the fair, and what13 we're inviting is vendors who would like14 to understand our processes and know the15 kinds of business that we solicit. They16 get to come. We basically set up tables17 to talk about the kind of commodities18 that we purchase, the kind of service19 contracts that we would be bidding,20 because, again, we want, in effect, to21 identify in advance potential vendors.22 And then when we get to the actual23 bidding process, it's not that we still24 wouldn't go to a chamber of commerce or25 279 4/5/11 - WHOLE - BILL 1101371 other places, but we already have in hand2 some potential vendors, and we3 automatically send them the RFP, et4 cetera, et cetera, et cetera. That's a5 regular part of what we do.6
For future10 minority business fairs, invite the11 Council offices, because we too hear from12 small businesspeople all the time looking13 for ways they can penetrate and gain14 access --15
-- to17 larger institutions in the City who have18 opportunity to offer.19
Thank you,25 280 4/5/11 - WHOLE - BILL 1101371 Madam President.2 COUNCIL PRESIDENT VERNA:3 You're welcome.4
Madam5 President, could we ask Dr. Curtis to6 please share with us the professionals7 and members of the Board that are here8 with him today.9
The members of the10 Board -- well, you've heard from our11 Chair, Varsovia Fernandez. Councilman12 Kenney has been identified as a member of13 our Board. I think those are our two14 Board members. There are many15 individuals associated with the College.16 You want me to go through everyone?17
Okay. Lynette19 Brown-Sow, our Vice-President for20 Marketing and Government Relations; Tom21 Hawk, our Vice-President for Finance and22 Planning. That's why I kept asking him23 the questions, are they local, because I24 didn't know. Josie DiGregorio, the25 281 4/5/11 - WHOLE - BILL 1101371 Executive Assistant to the President;2 Todd Murphy over at the end in the back,3 who is the Controller for the College;4 Jody Bauer, who is our Chief Information5 Officer, she's our IT head, I guess6 technically Vice-President for7 Information Technology as well; Judy Gay,8 the Vice-President for Academic Affairs;9 and Marsha Ray, the Vice-President for10 Institutional Advancement.11
Very well.12 Thank you very, very much. I mean, we13 have these large institutions and it's14 great to have a glimpse, if you will, of15 the parts that help make it up. So thank16 you very much.17
Thank you.20 Thank you, Madam President.21 COUNCIL PRESIDENT VERNA:22 You're welcome.23 The Chair recognizes Councilman24 Kenney.25 282 4/5/11 - WHOLE - BILL 1101371
Madam2 President, Councilmember Blackwell wanted3 to make one comment before I started.4 COUNCIL PRESIDENT VERNA:5 Certainly.6 Councilwoman.7
Thank8 you, Madam President.9 Unfortunately, I'd like to be10 excused after this to attend a PIDC11 meeting, but I wanted to certainly say12 thank you for the programs you have that13 honor the community. I look forward to14 seeing you. I know I'll see Lynette15 Brown at CCP at 4725 Chestnut every year16 in honoring the community. And I did not17 know about your special programs that18 help vets and for prison inmates, and I19 will be in touch with you. I'd like to20 work more closely with you on those21 programs and would appreciate any22 information you can send me.23
Thank25 283 4/5/11 - WHOLE - BILL 1101371 you.2 Thank you, Madam President.3 Thank you, Councilman Kenney.4 COUNCIL PRESIDENT VERNA:5 Councilman Kenney.6
Thank you,7 Madam President. I have more of a8 comment than a question. I saw your9 reaction when you asked Dr. Curtis how10 many students were enrolled at Community11 College and he said 40,000, and you kind12 of reeled back in shock. Let me compare13 it also to another school in the14 Commonwealth of Pennsylvania that has15 40,000 students, and that's Pennsylvania16 State University at University Park, our17 Penn State. So if you think of it in18 terms of size, it is at least as large as19 Penn State University at University Park.20 If you take into account the cuts that21 are coming from the Commonwealth through22 Governor Corbett's budget and the hole23 that is in the School District's budget24 and the struggle that the School District25 284 4/5/11 - WHOLE - BILL 1101371 has in getting kids to proficiency level,2 I think we ought to seriously consider3 when it comes to crunch time, when we4 actually sit down with the Mayor and5 figure out those final days of the6 budget, perhaps finding a way to get them7 a little more money.8 If our kids are not, all of our9 kids, are not coming out of our high10 schools, our comprehensive high schools11 proficient, I don't want to see them lose12 any opportunity that they have to get13 proficient and then to get to work or to14 go on to higher learning. And the only15 place they're going to be able to do that16 once they graduate from high school is at17 Community College, because they take18 everyone. No one gets denied entrance.19 They take everyone, and they're taking20 them from our public schools that, again21 for understandable reasons, many of them22 cultural, financial and otherwise,23 struggling to get these kids where they24 need to be to be marketable as employees.25 285 4/5/11 - WHOLE - BILL 1101371 So you know those last few days2 that we sit and haggle a little bit with3 the Mayor, and I think the Mayor again4 has shown that he's totally committed to5 education and getting people to graduate6 from college, this is our last or our7 kids' last chance to go in a college8 direction or in a technical training9 direction. And they're going to get hit10 this year. There's no doubt. It's very11 clear between being held harmless here12 and the cuts that are coming from the13 Commonwealth, I think we need to try to14 maybe find a little more, within reason,15 to keep them going while we weather this16 fiscal calamity. So that's just my17 comment.18
Thank22 you.23 Are there any other questions24 from members of the Committee?25 286 4/5/11 - WHOLE - BILL 1101371 (No response.)2 COUNCIL PRESIDENT VERNA:3 Again, Doctor, thank you so much for all4 the good work that you do and certainly5 for the patience that you've shown here6 today.7
Not a problem. We8 thank all of you. It's a pleasure again9 to be able to speak with you today.10
Thank11 you.12 We will now hear from SEPTA.13 (Witnesses approached witness14 table.)15
Good16 afternoon. Please identify yourself for17 the record and proceed with your18 testimony.19
Good afternoon. My20 name is Joseph Casey, General Manager for21 SEPTA. With me at the table is Richard22 Burnfield, Chief Financial Officer and23 Treasurer for SEPTA.24 COUNCIL PRESIDENT VERNA:25 287 4/5/11 - WHOLE - BILL 1101371 Please proceed.2
Good afternoon,3 Council President Verna and members of4 City Council. 5 million16 trips as compared to last year. percent19 participation rate achieved for the SEPTA20 work. Looking to the future, we are6 advancing the long-awaited replacement of7 our fare collection system with the award8 of new payment technology contracts later9 in this year, and the hybrid buses and10 Silverliner 5 regional railcars are11 joining our service fleet. 9 on the scale of 10. This is23 the highest score we've ever received24 since the survey process began, and25 290 4/5/11 - WHOLE - BILL 1101371 improvements was noted in every mode and2 every category, from cleanliness,3 security, to the conditions of stations4 and vehicles. 8 SEPTA is an integral part of9 the community, and we are dedicated to10 improving the quality of life in the City11 by delivering transit services and giving12 back to the community. This past13 Saturday, over 650 employees volunteered14 to participate in the Philly Spring15 Cleanup. 25 291 4/5/11 - WHOLE - BILL 1101371 In closing, as government and2 as agencies struggles with shrinking3 revenues and shrinking budgets, SEPTA4 understands that transportation is a big5 component to economic recovery. 14
Thank15 you.16 The Chair recognizes Councilman17 Greenlee.18
First of23 all, Mr. Casey, I just want to thank you.24 I know lots of Councilpeople can say25 292 4/5/11 - WHOLE - BILL 1101371 this, but for the cooperation of your2 office in helping with the many issues3 that come up to our offices. I have to4 make special mention of Ms. Jones back5 there, who we interact with for many6 years. And just, for example, this past7 year, there was some, right in my home8 area, some movement, I think misguided,9 to try to relocate some buses, and I10 think SEPTA responded very quickly with11 the facts and kind of stopped that, and I12 think it helped the public in that13 neighborhood a lot better. So thank you.14
I see16 about the hybrid buses that you'll have.17 Once these other hybrid buses are added,18 it will be one-third of the fleet?19
Is there22 particular areas that you're putting23 those or is there kind of all over the24 place?25 293 4/5/11 - WHOLE - BILL 1101371
Actually, they're2 across the region. We spread them out.3 I will say the other buses that haven't4 been replaced yet, they are fuel5 efficient. They do remit less emissions.6 So they are good buses, not quite up to7 the hybrid, but...8
Right.9 Now, are some of those hybrid buses, are10 they the articulated buses?11
I would17 guess so.18 Just one other thing I have to19 raise, and I know I raised it with you20 last year. Probably something we're not21 going to agree on on one thing. The22 whole gender-based Trans Pass issue.23 There are certain members of the24 community who feel that that really puts25 294 4/5/11 - WHOLE - BILL 1101371 them -- they're already in what they feel2 is oftentimes a mistreated situation and3 it gets them farther into that. Have you4 looked at that any more? Is it something5 you've thought about? I assume there's6 an economic issue here. I know you7 raised it last time, but I just wonder8 just generally on that issue.9
There is an10 economic issue, but recently the Board11 approved financing to proceed with new12 pimping technologies. Once that is in13 works, our plan is to get rid of the M14 and F stickers.15 But we did meet with the16 community, transgender community, to17 discuss their issues. We don't like our18 employees to treat anyone poorly, and we19 train our employees to deal with certain20 situations very carefully. We told them21 if there's any specific issues, let us22 know and we would deal with them. And23 those issues are few and far between.24 Other than simple requests to get rid of25 295 4/5/11 - WHOLE - BILL 1101371 the M and F's, we've had very few2 instances, and when we do get them, we go3 right to the source and deal with our4 employee directly.5
Is there6 an estimate of what you think would be7 the dollar loss if you did away with that8 right now?9
Four to 517 million.18 How do you come up -- I mean,19 are you kind of assuming that everybody20 is going to trade the Trans Passes?21
No. It's a certain22 percentage, and I can get you the23 statistics on that.24
I mean,25 296 4/5/11 - WHOLE - BILL 1101371 if you could, yeah. Because that sounds2 like a high figure. And I'm assuming now3 females may change with females and males4 change with males, right?5
I mean, we have9 certain passes that we know are shared,10 and when you get passes that are utilized11 150 to 180 times on a weekly basis, you12 know they're being shared, and that's the13 basis we look at. We look at certain14 passes that we know the current passes15 are being shared more than, say, 50 or 6016 times and we extrapolate that. It17 probably would double if that's the case.18
And not19 to belabor this point, but how much, say,20 of the males right now? Is there a21 percentage that you think gets shared?22
If you25 297 4/5/11 - WHOLE - BILL 1101371 have it --2
If you5 could forward that through the6 President's office.7
Thank9 you, Mr. Casey.10 Thank you, Madam President.11 COUNCIL PRESIDENT VERNA:12 You're welcome.13 The Chair recognizes Councilman14 Goode.15
Thank you,16 Madam President.17 Just to continue on that issue18 very briefly, so you acknowledge that19 it's a problem because your system is20 obsolete?21
Our system -- we're22 probably the last major transit that23 still uses tokens and paper transfers.24 So, yes, we would say so.25 298 4/5/11 - WHOLE - BILL 1101371
Thank you.7 The only other two questions I8 have very quickly is, one, in terms of9 contract participation, do you have any10 disadvantaged businesses that serve as11 prime contractors?12
All our16 construction areas. I can give you the17 complete list. Our goals for the year is18 13 and a half percent DBE participation19 on all the --20
The question21 really was whether they are prime22 contractors or subcontractors.23
Excuse me. I have24 to ask.25 299 4/5/11 - WHOLE - BILL 1101371 Let me introduce Lillie Claitt.2 She runs our DBE office.3 (Witness approached witness4 table.)5
Good afternoon.6 I'm Lillie Claitt. I'm the Director of7 the DBE program at SEPTA. And could you8 just please repeat that question again?9
The question10 is, do you have any disadvantaged11 businesses that serve as prime12 contractors rather than subcontractors?13
On our17 construction. Well, our construction and18 our professional service contracts. On19 construction on our stimulus, for20 example, we had two prime contractors,21 and on our -- we have some service22 contracts that we also have, some of our23 cleaning contractors, cleaning contracts24 have DBEs as primes. Some of our25 300 4/5/11 - WHOLE - BILL 1101371 professional service, our A&E type2 projects have had DBEs as prime.3
What is the4 largest contract that SEPTA expects to5 award next year?6
The new payment12 technology, to get rid of the tokens and13 transfers.14
And was18 there participation goals set within that19 contract?20
Participation goal21 is seven percent on the new payment22 technology project.23
And how was24 that determined?25 301 4/5/11 - WHOLE - BILL 1101371
That was2 determined based on the anticipated3 elements of the work, from the design4 piece through the management piece of it.5
So clearly6 you believe you've identified all7 subcontract opportunities?8
To the extent9 possible. There may be others, you know,10 but we look to realize over the course of11 that whole project at least seven percent12 or more.13
And did any18 of the proposals identify additional19 subcontracting opportunities?20
Yes, they did. I21 believe the highest we received was like22 15 percent.23
So seven24 percent was probably low, then.25 302 4/5/11 - WHOLE - BILL 1101371
Seven percent2 industry-wise for that type of contract3 was in the ball park.4
Well,5 industry-wise is one thing, and I won't6 belabor this too far, but our approach,7 particularly with City agencies -- and8 you're not a City agency, but our9 approach with City agencies this year is10 to actually look at their largest11 contracts and to find out whether they've12 actually identified all the13 subcontracting opportunities. Otherwise,14 even though you're not a City agency,15 we're still contributing tens of millions16 of dollars to it, and we are not only the17 largest contributory in terms of taxpayer18 money, we're the largest contributor in19 terms of fares. And so we believe that20 there should be opportunities for21 disadvantaged businesses and there should22 be opportunities for local-based23 businesses, and so we will continue to24 ask those questions. And I would ask25 303 4/5/11 - WHOLE - BILL 1101371 that you look at that contract and the2 other -- the next largest contracts to3 see whether you've actually identified4 all the subcontracting opportunities that5 are there, or else that's money that is6 not being fairly spent. Thank you.7 Thank you, Madam President.8 COUNCIL PRESIDENT VERNA:9 You're welcome.10 The Chair recognizes Councilman11 Kenney.12
Thank you,13 Madam President.14 I just want to revisit for a15 moment this Trans Pass issue, male and16 female. You say that we have statistics17 that say that women more than men will18 share passes? I'm sorry. I thought19 that's what I heard you say.20
I'm not saying21 that. The current -- the way it is, we22 validate the pass with either an M or F23 sticker. The way it is now, two males24 could share a pass.25 304 4/5/11 - WHOLE - BILL 1101371
Without the3 sticker, you have males and females can4 also share passes. So there is a5 measurement, although it's --6
How do you7 share a pass when you're on the system at8 the same time?9
As I said, we have10 passes that are being used upwards to11 150, 180 times on a weekly basis. Those12 passes are being shared. Whether it's --13
Is there14 some unit, some fraud unit, that will go15 after -- or you can't determine who holds16 the pass; is that it?17
No. We don't know18 who is holding the pass. They're just19 being used. Again, it's an obsolete20 system. We just have the number of times21 it's being used. We suspect it's a lot22 of the delivery people in Philadelphia.23
All right.7 I see some of the bikes on the train8 every now and then.9 Have we had instances where10 transgender folks have been denied access11 because of the pass?12
I mean, we're17 getting -- I've been getting a lot of18 e-mails from all over the country19 actually suggesting I get rid of them or20 encouraging me to get rid of the M and21 F's, but as far as actual incidents where22 people complain or something, an incident23 as really happened, that they've been24 either mistreated or whatever, they're25 306 4/5/11 - WHOLE - BILL 1101371 few and far between, believe me.2
Directly. We get5 the specific individual. We go to our6 employees. We don't want any of our7 employees to treat any passenger that8 way, and we deal with those instances9 right away.10
I know I've11 been reading about this conversion to12 this new system. When do you expect that13 to be in place?14
Well, the full15 conversion will probably take about two16 and a half to three years.17
Finally, I18 always tease you guys when I see you. I19 call you the eight-minute crew. I use20 public transit every day, sometimes twice21 a day, a lot of the subway and a lot of22 Broad Street -- the Market Street Line,23 and those trains are eight minutes. I24 mean, I used to get frustrated if I got25 307 4/5/11 - WHOLE - BILL 1101371 to the bottom of the stair and the train2 was pulling out, you know. And I time3 it. It's eight or less --4
-- during6 the weekdays, and even on the weekends.7 I mean, I very rarely go further than8 ten.9 So I just want -- if any10 judgment of a transit system is making11 the trains run on time, these trains are12 running on time. So thanks for your13 continued efforts in that area.14
Oh, the16 only other thing I would raise, and I17 know you guys are at your wit's end18 sometimes. We always get -- people have19 been to Paris and they've been to20 Washington and London, and it's so clean21 there and we can't believe -- when I look22 at what's in our trains or in our buses23 or in our train stations, it's all folks24 that's just leaving food and trash and25 308 4/5/11 - WHOLE - BILL 1101371 diapers and just like craziness. What2 have you been doing to kind of make3 people aware of their behavior and why4 the trains and buses are not as clean as5 we'd all like them to be because people6 are dirtying them?7
They do go out8 clean, but I'll tell you, our problem9 isn't unique to Philadelphia. I think10 it's an American type thing. New York is11 also having problems with the12 cleanliness. But we do have a passenger13 etiquette campaign, if you saw some of14 the posters on the -- and we try to15 encourage people, sort of tongue and16 cheek type thing. But we have to revamp17 it, because we don't think that's as18 effective as it is. And it's not so much19 for us doing it; cleaning it up for your20 other passengers that will be following21 you on that seat.22
Yeah. And23 just finally on the one little poster24 issue. I want to thank you. I was on25 309 4/5/11 - WHOLE - BILL 1101371 the Market Street Line a number of months2 ago and I was getting off at 11th Street,3 which is the Convention Center stop, and4 to the left of me on an advertising board5 was, "Philadelphia, No. 2 bed bug problem6 in the country," and I'm saying to7 myself, why -- I mean, I'm getting off at8 the Convention Center where the Marriott9 is and I need to -- and your folks not10 only responded quickly, Mr. Kelly, and11 responded quickly, but came up with a12 solution that allowed the people to13 continue to advertise their bed bug14 extermination outfit without denigrating15 Philadelphia's reputation. So we may16 have them, but I don't think we're No. 2.17 And I don't know who started that whole18 radio system or how you measure it, but19 anyway, but thanks for being innovative,20 keeping your advertiser relatively happy21 and not denigrating the image of the22 City.23
We try to.24 Unfortunately, a couple of those ads do25 310 4/5/11 - WHOLE - BILL 1101371 slip by.2
The only3 other one that was just stunning, and you4 got rid of it almost like that, was, I5 got on at the Broad Street Subway Line to6 go to an Eagles game and the entire7 interior of the train was painted Bud8 Light, it was that blue. And I think you9 guys must have looked at it and said, No,10 this is not good, and it was gone like11 that. So I do appreciate your12 responsiveness and the fact that the13 trains run on time. Thanks.14
Thank16 you.17 The Chair recognizes18 Councilwoman Brown.19
Welcome24 back. Know that for the record I join25 311 4/5/11 - WHOLE - BILL 1101371 Councilman Goode in always paying2 attention to how our agencies,3 departments are doing with regards to4 equity and opportunity, and thank you for5 having infrastructure in place in the6 professional you have with you to stay on7 top of it in a very systemic, systematic,8 strategic type of way. We appreciate9 that.10 Let me say thank you also11 for -- we get plenty of notices from12 SEPTA about what you're doing, and it13 keeps us informed but also helps us to14 keep staff informed as they deliver15 services to constituents. And in keeping16 with that practice, you have let us17 know -- continue to let us know about the18 outreach sessions you're doing to reach19 out to MBE/WBEs.20
Because we22 still get too many requests for23 opportunities, and when we have that, we24 can pass it on. That works.25 312 4/5/11 - WHOLE - BILL 1101371 Congratulations also on making2 huge advances around being3 environmentally friendly. Your fleet is4 growing. What is the long-term goal5 here? I'm looking at the testimony on6 of your testimony around the fleet7 enhancement.8
I keep my CFO at11 bay here.12 Our plan was to finish all our13 vehicles with hybrids as the fleet is14 retired, but overall we have a number of15 goals to become more environmental. Our16 building itself has won a number of17 awards, including the EPA award for the18 building for the energy savings in our19 office building. But overall we've done20 a lot of things, recycling the washing21 fluid at the depots from the bus washing22 machines, recycling antifreeze, oil, et23 cetera. And even now we actually recycle24 railroad ties that in the past they used25 313 4/5/11 - WHOLE - BILL 1101371 to just be put in a landfill. They're2 actually sold back to someone that3 actually burns them in a --4
I'm not sure if7 it's a local company. Actually, I think8 it's a Pennsylvania company. But9 actually burns as a high temperature and10 produces energy.11 We also entered into a contract12 with Viridity for our wayside storage to13 capture some electricity that's lost in14 the braking operation on the Frankford15 Line. So you would capture that and16 create a battery so you can either use17 that part of the line or sell it back on18 the grid.19 So those are the things that we20 have proceeded with so far, but I have a21 whole separate group that really embraced22 this idea --23
Of24 sustainability.25 314 4/5/11 - WHOLE - BILL 1101371
-- of clean energy2 and sustainability, and we will continue3 to --4
Make5 advances that way. Well, there are a6 number of us in Council, including7 Councilman Kenney who chairs that8 committee, who pay attention to those9 type of advances being made. And I10 should mention that Councilman Kenney and11 I were in a meeting three weeks ago12 talking about the tires in the City of13 Philadelphia and did a company exist14 locally that could or would recycle15 tires. So that's why I raised the16 question are they local, because we17 simply could not think of anyone.18 Moving to the last portion of19 your testimony and your corporate20 responsibility presence, you speak here21 about several initiatives, and so I put22 this on the table for consideration and23 was actually in the middle of drafting a24 letter to this end. It's not a novel25 315 4/5/11 - WHOLE - BILL 1101371 idea and I can't take credit for it, but2 in traveling Chicago on their3 transportation system, they have a4 practice where there are bookcases at5 each one of the stations where riders can6 pick up or deliver at their leisure and,7 of course, thought about whether or not8 we could emulate or duplicate that9 practice here in Philadelphia. What10 would be your initial reaction or comment11 about that type of initiative?12
As a matter of13 fact, when we did that book drive, the14 40,000 books, we did carve out a lot of15 the hardbacks and actually started that16 program at a number of the regional rail17 stations. A lot of the regional rail18 stations we have those bookcases where19 people borrow the books and return them.20 And we expanded it somewhat. I'm not21 sure how many stations, but I can get you22 the details on that, but we have that on23 the regional rail.24
I would25 316 4/5/11 - WHOLE - BILL 1101371 welcome that and then to look, if we2 could, add another layer to that and3 consider placing that type of image or4 accessibility to books in our subway5 system here as well for young people that6 travel that line.7
So if you9 could forward that to the Chair, that10 would be welcomed.11
And that13 takes care of my questioning. Thank you14 for the work that you do.15 Could you introduce us to your16 professionals, too.17
Sure. Luther18 Diggs, head of our Operations; Jeff19 Knueppel, Chief Engineer; you, of course,20 know Frances Jones; Fran Delia behind21 Frances. That's it.22
He's my Chief25 317 4/5/11 - WHOLE - BILL 1101371 Financial Officer.2
Thank6 you.7 Any other questions?8 (No response.)9
Thank you,10 Madam President.11 COUNCIL PRESIDENT VERNA:12 You're welcome.13 Thank you all very much.14
The16 Committee will stand in recess until17 tomorrow, Wednesday, April the 6th at18 10:00 a.m. Thank you all.19 (Committee of the Whole20 adjourned at 4:15 p.m.)21 - - -22 23 24 25 318 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on April 5, 2011, and that7 this is a true and correct transcript of same.8 9 10 11 12 --------------------13 MICHELE L. MURPHY14 RPR-Notary Public15 16 17 18 (The foregoing certification of this19 transcript does not apply to any reproduction20 of the same by any means, unless under the21 direct control and/or supervision of the22 certifying reporter.)23 24 25