Committee Hearing, December 6, 2007

COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON FINANCE - - - Room 400, City Hall Philadelphia, Pennsylvania Thursday, December 6, 2007 9:15 a.m. - - - PRESENT: COUNCILWOMAN JANNIE BLACKWELL, CHAIR COUNCILMAN FRANK DiCICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN WILLIAM GREENLEE COUNCILMAN BRIAN J. O'NEILL COUNCILMAN JUAN RAMOS COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILWOMAN MARIAN B. TASCO BILL 071082 - An ordinance authorizing The Philadelphia Municipal Authority, incorporated pursuant to the "Municipality Authorities Act of 1945"... BILL 071083 - An ordinance authorizing the Commissioner of Public Property, on behalf of the City and in cooperation with The Philadelphia Municipal Authority (the "Authority"), to undertake a project consisting of the acquisition... - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2

Good morning. Thank you all for coming out, especially in this weather, to deal with this important issue. We will now call into session the Finance Committee to hear, quote/unquote, the Youth Study Center bills, Bill Nos. 071082 and 071083. We will ask the Clerk to read the title of both bills.

Bill 071082, an ordinance authorizing The Philadelphia Municipal Authority, incorporated pursuant to the "Municipality Authorities Act of 1945," Public Law 382, as amended, and an ordinance of Council, approved December 23, 1975, to acquire, hold, construct, improve, maintain, operate, own and lease, either in the capacity of lessor or lessee, to the City of Philadelphia or to others, the real property, facilities, equipment and the improvements thereon located at 91 North 48th Street, Philadelphia, Pennsylvania, 3 12/6/07 - FINANCE - BILL 071082 for a secure residential detention facility providing educational, health and social services to juveniles in the City of Philadelphia and to be known as the New Youth Center Facility, and to exercise with respect to such Project all powers granted by the Act, subject to certain terms and conditions; and further, authorizing an amendment to the Articles of Incorporation of The Philadelphia Municipal Authority to extend the term of its existence to the year 2054; and Bill 071083, an ordinance 16 authorizing the Commissioner of Public Property, on behalf of the City and in cooperation with The Philadelphia Municipal Authority, to undertake a project consisting of the acquisition, design, construction, equipping and leasing of a youth center facility at 91 North 48th Street; authorizing and approving the sale of the Property by the City to the Authority; the entering into, 4 12/6/07 - FINANCE - BILL 071082 execution and delivery of a Lease of the Project from the Authority to the City; the issuance by the Authority of lease revenue bonds in one or more series, to pay the acquisition price and costs of the Project, and arrangement of interim financing in connection therewith; the provisions for establishment of credit enhancement, exchange agreements and swaps; the assignment of the Lease by the Authority to a trustee; the obligation of the City to pay all obligations of the Authority incurred in connection with the issuance of the lease revenue bonds and interim financing, if any, including payments related to any credit enhancement, in the form of rent under the Lease when due; authorizing the Director of Finance and other officers of the City to take such other actions as may be necessary or appropriate to accomplish the intent and purpose of this Ordinance; covenanting that the City will make necessary appropriations in each of 5 12/6/07 - FINANCE - BILL 071082 the City's fiscal years to provide for rental payments due under the Lease; and covenanting that the City will make rental payments due under the Lease; all under certain terms and conditions.

Thank you very much. Let me say by way of introduction and repeat, this has been a long time coming. Most of the press, I suppose, has been okay. The person who did write an editorial and called this horse trading as usual would only write such an editorial because they didn't use their name. We don't have to horse trade in City Council. So I say that to the person who wrote the editorial dated December 3rd in the Inquirer that they should write their names and be the person they say they are to call what we do horse trading. I make no apologies for all that we've been able to accomplish, with the creation of a Lucien E. S. Attorney, including both parties. I've never seen it done before. So we make no apologies. If that's horse trading, perhaps we should do more of same. So I hope that the writer of that article heard exactly what I say. Let me say that this goes back a long time. I can show you letters dating, oh, gosh, from the Administration dating from the President of Penn and many others. In fact, during those days -- and I have copies of documents that perhaps I'll make part of the record for us looking back where we called it the Thurgood Marshall Youth Center. When the Administration first approached us about this -- and might I say that for all the criticism we've received, that I 7 12/6/07 - FINANCE - BILL 071082 haven't seen any other Councilperson asking for a youth study center, nor has it been agreed that it would be built up there on Henry Avenue. They're still fighting about that. They don't even want to take that temporarily. But people criticize Jannie Blackwell for saying that we have to have certain things in place before we can do that so we protect the people who send us here and the people in the City as well. So when other people don't take it, it's okay. When I don't take it, then I'm not dealing with the good and welfare of the City. I resent that. I will never give in to that kind of thinking, and my district, thank God, knows it's not true, as do I. We talked about a Thurgood Marshall Youth Center. I'm sorry that you all didn't bring the model here. It's a beautiful model for the country, no doubt about it. I thought you'd bring a model or drawings. 8 12/6/07 - FINANCE - BILL 071082 Having said that, we talked about a Thurgood Marshall Youth Center that would have a detention center tangential to a community center. That was what we talked about. And, of course, when the drawing ended up, they had one separate place for the community that would hold 100 people, maybe ten tables, have its own kitchen and its own entrance. It was nice, but we did not get -- we wanted a community -- I still put this on the table. We wanted a community advisory board. We wanted a community advisory board that had 24-hour access and entrance so that people would know there was nothing to fear. We talked about access to the building in terms of a gym and other facilities. All of these things are what we talked about. We talked about a homeownership program for employees. We talked about minority inclusion and community inclusion in jobs. We talked about these things early on, said we are 9 12/6/07 - FINANCE - BILL 071082 a team player, we're happy to work with the City to take them off the spot. And every time the Barnes Foundation was mentioned, we said we supported it coming to the Parkway. So that was always ignored in the process, because then you couldn't criticize me if I agreed with my colleagues that it would be great to have the Barnes collection here in our City. And so we want to make the record clear for those who have negative things to say about it that we represent a community, too. I have in my possession flyers and other letters from people who said, Murderers, rapists, how can you bring them to West Philadelphia? So, you know, for all of those who say it's easy -- I have a community who elects me. Granted, I break records and we work hard to do that.

I'm a seven-day-a-week, 24-hour-a-day person, but my people support me because I support them. And so it's taken a long time 10 12/6/07 - FINANCE - BILL 071082 to get here for many, many obvious reasons, but it wasn't Jannie Blackwell -- if I hadn't agreed early on that we would consider it, we would not have because of all the negative talk, the lies and the deceit that happened with regard to the Youth Study Center project. If we could have had a Thurgood Marshall Center with a detention center in it, if we could have had the employee program, if we could have had answers to all the impact study and the parking and all of the community issues that we raised that were never satisfactorily answered, maybe it wouldn't have taken this long. And for those who say that Jannie Blackwell changed her "ask," quote/unquote, that's not true either. Anybody who knows me knows I have core values, core issues that I always work on, always will, in season and out of season, as the Scripture says, and we will do that. I've done this my whole 30 11 12/6/07 - FINANCE - BILL 071082 years in career, working for Lucien Blackwell from '76 to '92 when I succeeded him in my own right as a member of City Council. So we're proud to serve. We're proud to be a part of the City. We make no apologies. We're very proud of the unique and unfounded and unheard of partnership we were able to create with local, state and federal officials, democrats and republicans and all else, to help get us to this point. With that, having said that, we will still ask some questions after testimony, but certainly, Commissioner and Mr. Jannetti, we invite you to identify yourself and testify. Before you do, let me say we have a quorum for the record. To my left, Councilman Greenlee. To his left, Councilwoman Tasco. To my right, Councilman Goode, Councilman DiCicco and Councilman Ramos. Thank you. COMMISSIONER SCHLOTTERBECK: 12 12/6/07 - FINANCE - BILL 071082 Good morning, Chairwoman Blackwell and members of the Finance Committee. My name is Joan Schlotterbeck. I'm the Commissioner of Public Property. I'm here today to testify in support of Bill 7 No. 071082 and Bill No. 071083. Bill No. L. 382, as amended, (the "Act"), and an ordinance of Council, approved December 23, 1975, to acquire, hold, construct, improve, maintain, operate, own and lease, either in the capacity of lessor or lessee, to the City of Philadelphia or to others, the real property, facilities, equipment and improvements thereon located at 91 North 48th Street, Philadelphia, Pennsylvania, for a secure residential detention facility providing educational, health and social services to juveniles in the City of Philadelphia and to be known as the New Youth Center 13 12/6/07 - FINANCE - BILL 071082 Facility (the "Project"), and to exercise with respect to such project all powers granted by the Act, subject to certain terms and conditions; and further, authorizing an amendment to the Articles of Incorporation of the Philadelphia Municipal Authority to extend the term of its existence to the year 2054. Bill No.

071083 is an ordinance 11 authorizing the Commissioner of Public Property, on behalf of the City and in cooperation with the Philadelphia Municipal Authority (the "Authority"), to undertake a project consisting of the acquisition, design, construction, equipping and leasing of a youth center facility (the "Project") at 91 North 48th Street (the "Property"); authorizing and approving the sale of the property by the City to the Authority; (ii) the entering into, execution and delivery of a Lease of the Project from the Authority to the City; (iii) the issuance of the Authority of the lease revenue bonds in one or more 14 12/6/07 - FINANCE - BILL 071082 series, to pay the acquisition price and costs of the Project, and arrangement of interim financing in connection therewith; (iv) the provisions for establishment of credit enhancement, exchange agreements and swaps; (v) the assignment of the Lease by the Authority to the trustee; (vi) the obligation of the City to pay all obligations of the Authority incurred in connection with the issuance of the lease revenue bonds and interim financing, if any (including payments related to any credit enhancement) in the form of rent under the Lease when due; authorizing the Director of Finance and other officers of the City to take such other actions as necessary or appropriate to accomplish the intent and purpose of this Ordinance; covenanting that the City will make necessary appropriations in each of the City's fiscal years to provide for rental payments due under the Lease; and covenanting that the City will make 15 12/6/07 - FINANCE - BILL 071082 rental payments due under the Lease; all under certain terms and conditions. These companion bills will allow the purchase, construction and relocation of the Juvenile Justice Center from its present location to 91 North 48th Street. The Department of Public Property supports these measures and, accordingly, I respectfully ask that City Council approve Bill Nos. 071082 and 071083. I also ask that the rules be suspended so that the ordinances may be passed upon the second reading of Council. Thank you.

Thank you. Mr. Jannetti.

Good morning, Councilwoman Blackwell and members of the Committee on Finance. I'm Vince Jannetti, the Acting Director of Finance 16 12/6/07 - FINANCE - BILL 071082 for the City of Philadelphia. I am here this morning to testify in support of companion Bills 071082 and 071083. Other departmental representatives are here to testify also concerning the Juvenile Justice Center. Therefore, I will limit my testimony to the financing of the project. Bill No. 071083 will authorize the Municipal Authority, on behalf of the City, to issue lease revenue bonds to fund construction costs of approximately $97.5 million, plus costs of issuance. Assuming a construction period of 30 months, we anticipate that interest will be capitalized through the construction phase so that the first lease payments will occur in Fiscal 2011, when the facility becomes operational. Lease payments for this project will be built into the Department of Human Services' budget and will be incorporated into the Five-Year Plan. DHS will request in its needs-based budget reimbursement for all 17 12/6/07 - FINANCE - BILL 071082 lease payments to the Municipal Authority and expects to receive a 50 percent reimbursement from the Commonwealth under Act 148, the Child Welfare Act. The Law Department has provided the Committee an amendment to the ordinance which corrects an error in the lease that was submitted to the Clerk of City Council. Companion Bill 071082 will extend the life of the Philadelphia Municipal Authority until 2054 and will empower the Authority to complete various transactions to fulfill its obligations relative to the Juvenile Justice Center as outlined in the two ordinances before you. I would also like to request suspension of the rules for Bill Nos. 071082 and 071083 to allow for first reading at the next meeting of City Council. This concludes my written testimony. I would be happy to answer 18 12/6/07 - FINANCE - BILL 071082 any questions the Committee may have.

Thank you very much. We do have a few questions we would like to ask. And as I've stated, we did want this to be known as the Thurgood Marshall Youth Center, but nobody -- the City didn't even get the family to agree to that. So it's still the old Youth Study Center. My first question is about parking, and I've made it clear that that's a big issue in and around that area and in University City, and we want to make sure that we have additional parking for these employees. And maybe you can tell us how many there will be while you're coming forward. Thank you.

Thank you, Madam Chair.

Good morning, Mr. Tustin.

Good morning. 19 12/6/07 - FINANCE - BILL 071082 Good morning, Councilwoman Blackwell and members of the Finance Committee. I got a little bit of a cold, so bear with me, please. We have actually --

Please identify yourself formally for the record.

My name is Richard Tustin and I'm the Director of the City's Capital Program Office.

Thank you.

To answer your specific question, Councilwoman, we did perform two traffic studies, one through a company by the name of Orth-Rogers, who is -- basically they're known for doing traffic studies, and their study not only looked at surface parking on the site but also street parking in and around the vicinity. It also looked at -- broke the areas down into residential areas and industrial areas and commercial areas so 20 12/6/07 - FINANCE - BILL 071082 that we could see what parking impact would have on those three individual areas. Based on the results of the study, we were told that the new facility, including the required parking for staff and visitors, wouldn't have a negative impact on the residential area in the neighborhood.

My question is -- I'm fine as long as you're parking on the site, because, remember, you all bought the site and didn't tell me. So my question is, I'm fine as long as you have parking on that site, but in terms of parking on the streets in Spruce Hill and on the other side near the Nehemiah Home and others, as is all over the City, we have parking problems as well. Now, if you will have parking only on the site where the Youth Study Center is, that's one thing, we have no issue, but if you're talking about parking in the neighborhood, then we have a problem. 21 12/6/07 - FINANCE - BILL 071082

Yes. We are not talking about -- although we do have some parking on the site itself, it's minimal parking and it's basically for City vehicles and court officials. Most of the site -- most of the parking will be street parking for both visitors and staff. We actually have a study that was done that shows a picture of the site and the areas that were looked at for parking. As you can see, there's well over --

But, Mr. Tustin, people live there have cars. You're near University City. Talk to Spruce Hill Community Association. We can't get permit parking there because in many three-story homes, you may have four people with cars. You cannot park in the area. You have to either build parking, create parking on site, we have no problem. But we want from you today -- and we can have 22 12/6/07 - FINANCE - BILL 071082 another hearing and come back, but I cannot approve you parking in the neighborhood for the Youth Study Center. We can't have it. I told you, I told the Mayor, I told the Commerce Director, I told everybody in the City, be ready Thursday to deal with parking. You cannot park in the community. We don't have parking for the people who live there now and work there now. We have Community College there. We don't have adequate parking for people and businesses now. We cannot have parking on those streets in the neighborhoods. We can't have it. We just don't have it. This is an old issue. We talked about the last time -- for all of you who are here, these are the issues that held up the project way back when, not Jannie Blackwell. It's Jannie Blackwell doing her job. You cannot say you're just going to park in the area for employees 23 12/6/07 - FINANCE - BILL 071082 and parents and visitors. You can't do that. You've got to create parking on site or otherwise we have a problem here this morning.

Okay. Councilwoman, we do have the traffic engineer here from Orth-Rogers, if you'd like to hear from him specifically.

I don't want to hear from him. I'm telling you.

Okay.

I've lived there. I'm a West Philadelphian. I've been born and raised in Philadelphia, born in Richard Allen projects. It was called projects then. Moved to West Philadelphia, my district, when I was 13. I know the area. I was married to Lucien Blackwell for 31 years before he died two blocks from that center. I'm telling you, we cannot have parking in the neighborhood. Can't do 24 12/6/07 - FINANCE - BILL 071082 it. We want in writing from you before this hearing is over that you will not park in the neighborhood. You've got to park on the site. You've got to find a way to do that or you have to create it. What's the cost of this project? $97.5 million? So maybe you'd better spend another two million and create it. You've got to do what you have to do. We cannot permit parking in the neighborhoods. I don't have parking. All my colleagues up here understand what I'm saying when it comes to parking. We all suffer with those problems. I don't want to see a study. I'm telling you what I have lived all my life. And you've got to create a letter for me saying that you will have parking on site or you will build parking on site or provide for it. How you do it is your issue, but I will not entertain a discussion about parking in the neighborhoods. I can't do it. 25 12/6/07 - FINANCE - BILL 071082

Okay.

If you want it on first reading today, I'm asking you to produce that letter immediately, before we recess or hear another hearing -- Councilman DiCicco has a hearing -- and come back before Council. If you want it in Council today, you've got to deal with the issue of parking. I've told everybody I see, but as usual when it comes to the Youth Study Center, we're only allowed to say yes. I can't do that.

We'll have somebody work on that letter right away, Councilwoman.

Thank you.

You're welcome.

Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam Chair. Mr. Tustin, I apologize. I was 12/6/07 - FINANCE - BILL 071082 distracted while you were giving your testimony. Will there be limited parking on site? Did I hear you say that correctly?

Yes. COUNCILMAN DiCICCO: And that will be limited to staff?

No. It won't be staff. It's limited to City vehicles, the vehicles required to support the facility, which are usually City vehicles. It's not private vehicles. And will be some parking also for court-related functions, but it -- COUNCILMAN DiCICCO: Judges and stuff?

Correct. COUNCILMAN DiCICCO: How many spaces will there be?

There's approximately 30 on-site parking spots. COUNCILMAN DiCICCO: Thirty on site. So the general public would not have access to any of those 30? 27 12/6/07 - FINANCE - BILL 071082

Correct. COUNCILMAN DiCICCO: Do you have any data as to the number of people who would come on a regular basis to the current facility and are coming by car, vehicle?

Yes, we do. COUNCILMAN DiCICCO: What is that number?

The Chair notes that Councilwoman Blondell Reynolds Brown is here. Thank you. While you're looking at that answer, maybe you can give us the information how many kids will be there, the whole issue. COUNCILMAN DiCICCO: That's where I'm going.

Thank you, Councilman.

For the information concerning the children and all, if possible, I'd like to have Deputy Commissioner Randolph come up, who is in 28 12/6/07 - FINANCE - BILL 071082 charge of operations of the facility, and he can give you more accurate information concerning the function and the use of the facility itself, including number of children. I'd be more than happy to answer questions concerning design and construction. Councilman, we had done a study of the present facility, and unfortunately, I don't have the numbers, but I have percentage of use. We had looked at both the existing facility and the percentage of people that come through driving and parking, public transportation, walking, people that drop off, bicycle, taxi, every aspect. COUNCILMAN DiCICCO: I'm just looking at people who come by private vehicle. I don't care -- the walking and public transportation doesn't mean anything to this.

Right. I don't have the number, but I can say that in our study, 34 percent of the people that 29 12/6/07 - FINANCE - BILL 071082 visited the site originally now comes by -- COUNCILMAN DiCICCO: Private car?

Private vehicle. COUNCILMAN DiCICCO: Thirty-four percent?

Thirty-four. COUNCILMAN DiCICCO: Meaning 34 percent of --

The visitors. COUNCILMAN DiCICCO: -- the general population?

The visitors, yes. COUNCILMAN DiCICCO: And how many people are in the population at the current facility?

You mean working at the facility or children at the facility? COUNCILMAN DiCICCO: Children in the facility. You're saying 34 percent of people who come by private vehicle are coming there -- 30 12/6/07 - FINANCE - BILL 071082

To visit. COUNCILMAN DiCICCO: -- to visit, right? And how many children in the present facility? DEPUTY COMMISSIONER RANDOLPH: Today we have about 120 kids at the Center, the Youth Study Center currently. COUNCILMAN DiCICCO: How many? DEPUTY COMMISSIONER RANDOLPH: Today we have about -- well, actually, about 110 today. COUNCILMAN DiCICCO: What's the general number, average number? 110? DEPUTY COMMISSIONER RANDOLPH: Well, our mandated amount is 105. Recently we've had higher than that number at the Center. So today we have about 110 kids there. COUNCILMAN DiCICCO: So if my math is right, you got around 37, 38 vehicles a day coming, if it's 34 percent of the 110, right? How many children will the new facility house? DEPUTY COMMISSIONER RANDOLPH: 31 12/6/07 - FINANCE - BILL 071082 The new facility is going to be designed for 150 young people. Excuse me. I'm Jim Randolph. I'm the Deputy Commissioner of Department of Human Services, the Juvenile Justice Services. COUNCILMAN DiCICCO: So if we keep the average at 34 percent of the new facility, that means the number of people who will be arriving by vehicle is going to be around 70, 71, almost double what we have today. DEPUTY COMMISSIONER RANDOLPH: Yes. Doing that math, I guess that's the number.

Councilman, the survey that we did showed that by moving the facility to an area that has better public transportation, meaning the Frankford Elevated, that the percentage of people that would come by vehicle would drop to 29 percent. So it's not significant, but there is a drop. More people would use public transportation, 32 12/6/07 - FINANCE - BILL 071082 based on our study. COUNCILMAN DiCICCO: But you still would have 45 people per day.

Correct. COUNCILMAN DiCICCO: So you are going to have 45 additional cars. And is there an average amount of time that they stay or is that just the complete -- is it a one-day period of visitation? DEPUTY COMMISSIONER RANDOLPH: Well, I think that the current average -- excuse me; average length of stay is about eight days at the Youth Study Center, but I think that -- all of those people are not there all at the same time. COUNCILMAN DiCICCO: During that period of when visitation hours are permitted, there's that many people that come in. And what is the average amount of time that a person stays to visit? DEPUTY COMMISSIONER RANDOLPH: The average length of stay for a young person at the Youth Study Center now is 33 12/6/07 - FINANCE - BILL 071082 about eight days. COUNCILMAN DiCICCO: No, no, no. The visitor. I'm sorry. How long -- DEPUTY COMMISSIONER RANDOLPH: Visiting is limited to about an hour each evening, an hour. COUNCILMAN DiCICCO: So you got a rotation going on all the time. Okay. No further questions. Thank you.

Thank you. Councilman Greenlee.

Very quickly, Madam Chair. Thank you. And I guess I'm pretty familiar with the present site because I don't live far from there. Isn't it true that -- it seems to me that the reason that that immediate area can handle some parking, you got the Parkway right there. People don't live right smack there, so they park along -- 34 12/6/07 - FINANCE - BILL 071082 and I know there's timed parking along the Parkway and all. So it would seem to me, just off the top of my head -- and Councilwoman Blackwell knows this area better than I do -- that if you're in an area where there's more like residents right there, that sounds fairly problematic if you have cars out on the street. I think the area can handle it there because there's not houses like right smack there. COUNCILMAN DiCICCO: You mean at the current location?

Yeah, at the current location, right. And I agree that there's not an El right there, but there's a lot of SEPTA buses that stop within a block there. I take them. I still take the bus in the morning, everybody. So I take the buses. I see people coming. So it seems to me that it's not -- like right now it's in a remote area for public transportation. So maybe 35 12/6/07 - FINANCE - BILL 071082 it will change a little bit with cars, but I would think it would be roughly -- if you're going to drive, you're going to drive, and it would seem like that could be a problem if it's in an area -- because right now I think it handles it because of that Parkway situation.

I do have a sketch I could make copies and share with you, just as an information only to see what we've done and how we've looked at it. Nothing taking away from my commitment to you, Councilwoman, that we will provide you a letter. I'm just saying if you'd like to see this, I have it available and I can make additional copies.

Okay. I'll look at it.

But it does show the areas we looked at, considered for parking and how we've stayed away from all residential areas.

I have 36 12/6/07 - FINANCE - BILL 071082 more paper on Youth Study Center than I have money. I don't need any -- I know what I know, and so we will wait to receive that letter stating that parking will be developed on site or will be created or built on site. There will be no parking in the neighborhoods. No 9 parking in the neighborhoods. Councilwoman Tasco.

Mr. Tustin, what are the zoning requirements for a facility of this nature and are you all meeting the zoning requirements for parking? Because usually there's a requirement for a number of parking spaces under the Code.

Yes. We're looking at having the site rezoned to C-3, which is -- which will accommodate this type of facility, and under that zoning, we, I think, satisfied the number of parking on site with the 30 vehicles.

What's the C-3? 37 12/6/07 - FINANCE - BILL 071082

I think it's a commercial zone. It's a commercial classification.

And it will require how many parking spots?

I don't know exactly, but we have had the drawings reviewed by L&I and this has not been an issue as far as vehicles on site.

What is the zoning now?

I believe it's R-4 Residential.

The site, is it a psychiatric hospital?

I'm sorry, Councilwoman.

What is the current use of that or was the current use of that facility?

Originally it was for Urban Education, has the primary building on site. The area that we're looking at right now is just an empty 38 12/6/07 - FINANCE - BILL 071082 piece of ground. There's no buildings on the site. It at one point in time was used temporarily with trailers for a school, but the school stopped functioning. But as of right now, there's nothing on the site at all. It's an empty piece of ground.

Also, have you taken into consideration -- you know that area with the revitalization of the El and a lot of upgrade of the community and restoration of the community in the future. Have you all taken that into consideration also, and what limit would that place on future development out there in that community? Do you look at it right now as it presently exists? But as I know that area, it seems to be on the up-rise in terms of economic development.

We did look at the area and the development of the area in the neighborhood. Again, the area that we're looking at, even though it's zoned 39 12/6/07 - FINANCE - BILL 071082 R-4, is an institutional area. It's bounded by the Kirkbride Institute, a psychiatric institute, which is across the street. It's also then the Urban Education, which is also an institutional use at this point in time. It's also surrounded by fields. There is right now a field, which is where we bought the property, five acres of the property. There is housing to the north, but it's a block up and it's at least a block or a block and a half east and west. So even though we understand the neighborhood is up and coming and it will be developed, for someone to want to park their car at the location of the facility, they'd have to walk at least a block, a block and a half to their house, because there's no housing in that area adjacent to the facility. So we felt, again, through the traffic study -- we also asked the Philadelphia Parking Authority --

40 12/6/07 - FINANCE - BILL 071082 There's the Nehemiah Homes right there.

Correct, on the other side of the street.

That's right across the street.

Correct. We did ask the Philadelphia Parking Authority to come in and look at the study that we had done to either confirm or basically reject it, and they basically came back and said they agreed with the findings of our private parking study, traffic study.

What's the parking capacity of the Urban Center and the parking capacity of the Kirkbride Center? Do they have enough on-site parking or do individuals visiting those sites have to also park on the street?

We didn't look at the actual numbers, Councilwoman, on that, but the Kirkbride in particular has parking, I guess, off of 49th Street, which is a block over, and they also have 41 12/6/07 - FINANCE - BILL 071082 their own on-site parking lot.

It's not a block over. It's not a block over, Mr. Tustin.

For --

And how can you consider parking when you haven't dealt with the parking, as the Councilwoman asked, with who parks there now for the uses that are there now? This is new. You have bought -- like I said, you all didn't tell me you were buying it. You bought the land where you want to build the Youth Study Center. So that means you're not talking about displacing anybody. Her question is an excellent question. So you have everybody who is parking there. We tried to get you to deal with Kirkbride. You all didn't want to deal with Kirkbride. You told me all these reasons why -- when that's a public service place -- that weren't legitimate reasons. So they have their own programs 42 12/6/07 - FINANCE - BILL 071082 and their own parking. Now you say you haven't done a study about the current parking that exists. You have the Nehemiah Homes right there along -- Councilwoman Tasco would know what I mean when I say the Dusty. You have the Nehemiah Homes there. So you're still right there in the middle of a community. All these years later, we still don't have the answers, all these years later.

In your design of the facility, is there sufficient space to develop on-site parking? Is there a height requirement if you built parking up to accommodate more than the 40 employees or City vehicles?

My personal belief is if we had to develop an on-site parking, either a single level or multi level, we would have to purchase additional property. Our present property that what we've purchased, five 43 12/6/07 - FINANCE - BILL 071082 acres, is not big enough to accommodate the design that we have, plus a parking lot facility.

Is there space to buy more land for parking?

Pardon me?

Is there land available to purchase for parking?

There is land adjacent to the site that we've purchased, yes, there is.

What's the impediment to purchase that land?

I don't know of any impediment. We'd have to have that discussion with the owners of the property to see if they'd be willing to sell us additional property.

How much space is that left?

Well, there's significant amount of space left on the site, but Urban Education, I don't know what their plans are for developing the 44 12/6/07 - FINANCE - BILL 071082 balance of their property, so we'd have to talk to them about that and see if there is enough space, even outside of their own plans for developing the property, to allow us to purchase additional space for parking, on-site parking. But we can have those discussions.

Maybe that's what you all should talk about, because parking -- I represent a district too where -- we're landlocked in Philadelphia all over the place, and parking is a major issue. And I don't know what it would add to the cost. Is the Urban Education Center the owner of that property?

Yes, they are.

And you haven't had any discussion with them about purchasing the additional land?

Not about purchasing additional ground, no, we have not, Councilwoman. 45 12/6/07 - FINANCE - BILL 071082

Well, when parking became an issue, wouldn't that have been a natural next step?

Well, if the parking or traffic and parking study had come back and indicated to us that, yes, it would have a negative impact on the community, that would have been the next step, is to say, Okay, we need to then develop on-site parking, additional on-site parking, so that we don't have a negative impact on the community. The last thing we want to do is have any sort of a negative impact on the community from a parking point of view or any other point of view.

But it seems to me you have a negative impact on the community when the on-site parking only accommodates City vehicles, so any person visiting that site has to find a space on the street to park.

That's true, Councilwoman. 46 12/6/07 - FINANCE - BILL 071082

So that would seem to me that the accommodation for parking was made for City employees or City vehicles, but not for the individuals who have to visit the site. It's an inconvenience for them. That's a large area out there. When we go to 3801, if you can't get in the parking lot, you have to find and park someplace and walk a long distance to the entrance to the building.

Correct.

So that consideration should have been taken -- that issue should have been taken into consideration, because you have to allow for the people who do visit, because then they're subjected to go -- aren't those homes Mill Creek? It used to be Mill Creek over there right across the street.

That's right.

There's not a lot of space out there for parking. 47 12/6/07 - FINANCE - BILL 071082 I can understand Councilwoman's concern.

Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam Chair. I'm sorry. Did you want to respond?

I just wanted to also respond, checking with the Deputy Commissioner, again, the visiting hours are one hour a night from 7 to 8 o'clock Monday through Friday. So the number of vehicles that would be coming from people visiting would be contained within one hour every night between 7:00 and 8:00. So when we say a lot of additional traffic coming into the neighborhood, it's confined to very specific --

You have visiting hours one hour a night? DEPUTY COMMISSIONER RANDOLPH: Yes.

So you have 150 juveniles there. What if all 48 12/6/07 - FINANCE - BILL 071082 150 families decide to come that one-hour time period or even ten of 15? DEPUTY COMMISSIONER RANDOLPH: We would love it, because that would indicate the family commitment to young people. However, we don't get anything like that. We get to 30 families who 9 meet -- 10

So 20 to 11 30 families are coming to the Youth Study 12 Center -- 13 DEPUTY COMMISSIONER RANDOLPH: 14 Just for visitation. 15

-- for 16 visitation between 7:00 and 8:00? 17 DEPUTY COMMISSIONER RANDOLPH: 18 That's right. 19

Where do 20 they park? DEPUTY COMMISSIONER RANDOLPH: Currently now?

No. Where will they park at the new site? DEPUTY COMMISSIONER RANDOLPH: 49 12/6/07 - FINANCE - BILL 071082 They have to find a place to park, the way our staff has to find a place to park. They have to find a place to park or they come by public transportation. COUNCILMAN DiCICCO: Seven o'clock at night? DEPUTY COMMISSIONER RANDOLPH: Yes. COUNCILMAN DiCICCO: That's generally when people who live in those residences are home. I mean, during the day, some people take their car and go to work. I'm not familiar with the area, but you may have some opportunities for some free spaces during the day, or maybe not. Again, I'm not familiar with it, but generally people are home by 5, 6 o'clock, and I think neighborhood parking is going to be extremely limited. A question to follow up on Councilwoman Tasco's question. The parking lot that's in the design for staff and deliveries, what-have-you, is that a surface parking lot? 50 12/6/07 - FINANCE - BILL 071082

Yes, it is. COUNCILMAN DiCICCO: Was there ever a consideration to put a second level on that?

No, there was not. COUNCILMAN DiCICCO: And I understand that it drives the cost up in today's markets probably $25,000, $30,000 per spot, based on some of the stuff I've done in my district. So without having to look to purchasing the adjacent land, when you look at it, I think you need to look at both and see which makes more sense economically.

Okay. COUNCILMAN DiCICCO: But, again, depending on the cost, there may be a solution. I don't know if you heard that, Councilwoman.

I didn't. COUNCILMAN DiCICCO: What I suggested, the current parking lot that 51 12/6/07 - FINANCE - BILL 071082 will provide spaces for staff and personnel, what-have-you, is a surface parking lot. I asked if they will look at what the cost will be to put a second level on that as opposed to purchasing the adjacent land. It may actually be cheaper to buy the adjacent land and do surface parking. It may not be. Because once you do above-ground parking, the costs go up to about 25,000 or 30,000 per spot to develop it. So I think --

Well, it seems to me -- COUNCILMAN DiCICCO: -- you have two options here.

The other option is to look at the Urban Education land to lease it for parking.

Yes.

And then you wouldn't have to put the money out right away. Get a long-term lease with the Urban Education, because I'm certainly -- that's a huge facility they 52 12/6/07 - FINANCE - BILL 071082 have out there and that additional income could certainly support them. They would be open probably. I think you need to find some space for this parking, because it's going to be a problem. We all know that who live in neighborhoods that are congested.

Okay. Thank you. We will --

Thank you. Councilman Greenlee.

Just very quickly. Not to belabor the point, but just on the issue of the nighttime parking, I would think right now, sir, that that's not a problem where it is now -- DEPUTY COMMISSIONER RANDOLPH: Let me just say --

-- because don't they park along the Parkway? 53 12/6/07 - FINANCE - BILL 071082 DEPUTY COMMISSIONER RANDOLPH: No. We have people who do park along the Parkway, but all of those are metered, and those meters go to, I think, midnight immediately around us. So when families come to visit -- and that's not the hindrance. I mean, we want them and we encourage families to visit. We always want as many -- we'd love to have all 110 families come and visit. However, the 20, 30 families who do come, they have to hunt for parking. Sometimes they're going to be able to park on the Parkway if there's available space, but, you know, where we are actually is a very highly traveled area currently. You have people visiting the Art Museum. You have all of that. You have all of that going on. So daily it's an issue for my staff and for visitors.

Daily. I was just talking about the nighttime. DEPUTY COMMISSIONER RANDOLPH: Even in the evening. 54 12/6/07 - FINANCE - BILL 071082

Well, it strikes me -- I haven't stood there and studied it, but I walk by there enough. It seems like the nighttime there's spots along the Parkway, unless there's something special going on at the Art Museum, the Institute. DEPUTY COMMISSIONER RANDOLPH: That's true. Families are visiting between 7:00 and 8:00. They're not visiting after, but my staff --

That's my point. DEPUTY COMMISSIONER RANDOLPH: -- has to park around the clock.

But if I could just say generally -- and I think the other members have said it, too. I mean, I don't think there's ever an issue that comes up these days that parking is not an issue, and I guess I'm a little surprised -- and I'm not trying to lecture everybody or target you, Mr. Tustin, but, geez, it doesn't look 55 12/6/07 - FINANCE - BILL 071082 like you're prepared for that. I don't know what else to say it. I know you have your studies and all, but the District Councilperson is telling you that apparently -- she's not throwing this on you right this moment. We all want to move. We all want to get the Barnes in. We all want to do all that, but, geez. That's all I'll say.

I can only say that we did take the issue very seriously. We did commission a traffic study to be done. They've identified 567 parking spots within the immediate area of the building that is not --

Mr. Tustin, you cannot put those spaces on the people who live there. We have all said that.

I understand, Councilwoman.

To repeat that you have parking spaces in 56 12/6/07 - FINANCE - BILL 071082 the area is only insulting.

I don't mean to insult you, Councilwoman.

It's very disappointing. Years and years later, we're just where we were before. That's why we're here in the first place. I hope all of you who are interested in this project take note of that. That's why we're here, not because Jannie Blackwell doesn't care about her City and hasn't been willing to take the hard issues, take the hard projects, deal with issues and this project that nobody on Council would consider taking. And you all still don't want to be fair, still don't want to deal with the issues that we raise. Don't tell me about studies you did. I wasn't elected because we have no 22 idea what we're doing up here or how our people feel or what the conditions are at the site. Some things never change, it 57 12/6/07 - FINANCE - BILL 071082 seems. We're going to do right by the people who live there. Again, we ask for that letter. If you want this passed out, you give us our letter promising that you will deal with this parking issue. They've given you alternatives to either get permission to lease or buy the site there or else to build on top of the parking you have. If you have 150 kids there and 50 of them have visits at night, that's something. You want them parking in your neighborhood? No. You just want them parking in mine. Can't do that. I love my people, too. Councilwoman Tasco.

I would also -- and maybe you said it, Councilwoman. I think you ought to go back to the Urban Education Center and talk to them about the possibility of leasing some of the space out there. That would be less costly and the cost wouldn't 58 12/6/07 - FINANCE - BILL 071082 begin until you -- I don't know when the cost would begin.

Thank you, Councilwoman.

But certainly you'd have an easier "out" than trying to build up. But I'd suggest you investigate all of that. And I'm surprised at this point that we're here talking about parking. It seems to be an issue that was ongoing from the beginning. You know District Councilpeople know parking.

Thank you very much. While we're talking about it, let's get some basic information on the record. We heard that you're saying there would be 150 kids here, and you're talking an average of how long? DEPUTY COMMISSIONER RANDOLPH: Currently our average length of stay is eight days.

Now, 59 12/6/07 - FINANCE - BILL 071082 what is their background? Are these kids who have been shooting beebee guns or are they murderers or rapists? Give us the profile of the kids at the Youth Study Center for the record. DEPUTY COMMISSIONER RANDOLPH: We deal with young people who are alleged delinquent.

Please pull the mike closer. DEPUTY COMMISSIONER RANDOLPH: Certainly. We deal with young people who are alleged delinquent. Murder is defined as not a delinquent act. Any young person who kills anyone is immediately transferred to State Road. We don't deal with them. Murderers are not --

At the point of being charged or at the point of being adjudicated? A kid who is accused of murder, what happens? DEPUTY COMMISSIONER RANDOLPH: He goes to State Road. 60 12/6/07 - FINANCE - BILL 071082

So he doesn't even wait at Youth Study Center? DEPUTY COMMISSIONER RANDOLPH: Does not come to the Youth Study Center. Does not come to the Youth Study Center.

Okay. DEPUTY COMMISSIONER RANDOLPH: It's not a delinquent act. Murder is defined out of the Juvenile Act.

Okay. How many new jobs will be created? We were told six three years ago. DEPUTY COMMISSIONER RANDOLPH: I'm sorry. How many new jobs?

New jobs. How many jobs will be transferred? DEPUTY COMMISSIONER RANDOLPH: In the Center itself in terms of what we do at the Center in terms of operating the Center?

How many new jobs can people in that area apply for? DEPUTY COMMISSIONER RANDOLPH: 61 12/6/07 - FINANCE - BILL 071082 Well, we have an extensive array of jobs at the Youth Study Center for the folk who actually operate the facility. We have youth detention counselors. We have food care.

How many new may be available? DEPUTY COMMISSIONER RANDOLPH: I guess I'm having trouble with your definition of "new."

They told us six. I just wanted to get on the record that we get the Center and we don't get jobs either. What about the issue of community access and a neighborhood advisory board, a community advisory board? DEPUTY COMMISSIONER RANDOLPH: We're definitely supportive of that. We have plans for that. We currently have a Friends of the Youth Study Center group. We intend in moving to have an expanded outreach to the community to have -- we 62 12/6/07 - FINANCE - BILL 071082 have a facility within the facility available for the community.

I want to be involved in any "friends of" group, in any community advisory board. DEPUTY COMMISSIONER RANDOLPH: Councilwoman, you've been to the Center. So you have already been a friend. So we welcome you and we welcome the folk who are in that neighborhood to participate and working with us.

But I don't want a community advisory board that's not working with me. I don't want the problems later. You've got it? DEPUTY COMMISSIONER RANDOLPH: That's fine.

I want to be in front of the community advisory board. DEPUTY COMMISSIONER RANDOLPH: You've been at the Center. You know that you're welcome.

No. 63 12/6/07 - FINANCE - BILL 071082 I'm talking about for 4601, I want to, as the District Councilperson, to be in charge, to be in front of, ahead of any community advisory board that's chosen. I want to lead that. I don't need all the "yes" people who go along with whatever you say and then come to me when the problems occur. DEPUTY COMMISSIONER RANDOLPH: No, we have no problem with that. What we're saying is that we encourage involvement with the community, and your leadership is welcome.

Now, you said you already have plans for that. Do you have one already or are we talking about forming a community advisory board, as I've asked for for years? DEPUTY COMMISSIONER RANDOLPH: We're talking about for this specific move, we'll have an advisory board with the community members there. That's what we're talking about. We planned for it.

64 12/6/07 - FINANCE - BILL 071082 Councilman. COUNCILMAN DiCICCO: Thank you. I think what the Chair is asking you is, is there a formula for the governance or is there a governance plan in place for that advisory? I mean, there's some situations -- I know there was a project I did in my district where we set up a board, and it was specific that the District Councilperson, whoever he or she would be, would be a member of that board. Is there anything like that in place now or was that -- DEPUTY COMMISSIONER RANDOLPH: We have a Child Welfare Advisory Board for the Department of Human Services. That's an advisory board that's established by the Mayor that oversees our entire operation. Specifically for the Youth Study Center for this move to 48th Street, we will create an advisory board specifically for the Center. COUNCILMAN DiCICCO: I think what the Councilwoman is asking is she 65 12/6/07 - FINANCE - BILL 071082 wants somehow to memorialize that. I don't know if it's -- DEPUTY COMMISSIONER RANDOLPH: I have no problem in doing that. COUNCILMAN DiCICCO: I'm not a lawyer. I don't know if it can be part of this document or an addendum to this that the governance would be established, so many people from the community, so many people from the detention center and the District Councilperson would have standing on that. DEPUTY COMMISSIONER RANDOLPH: We have no problem in doing such.

Thank you very much. Maybe, Mr. Tustin, before we recess, in addition to the letter on parking, you can include that language similar to that which the Councilman just articulated. And let me ask you while we're here about security. How many people will be on site and will it be around the 66 12/6/07 - FINANCE - BILL 071082 clock? We assume it will, but we want that on the record as well. DEPUTY COMMISSIONER RANDOLPH: We have round-the-clock staffing for the Center. We have security staff who are not necessarily working with the young people who do the perimeter checks.

How many? DEPUTY COMMISSIONER RANDOLPH: And we also have security monitoring folk who come through the building. So we have security 24/7, 365 days a year.

How many? How many inside, how many outside? DEPUTY COMMISSIONER RANDOLPH: Well, currently we have a staff of about 280 staff who work at the Center. In terms of our security force, at this point we have about 12 security officers. Where we'll look at that in terms of how many we'll need with the expanded population. Security will not be an issue in terms of that's what we do. 67 12/6/07 - FINANCE - BILL 071082 That is our job. That is our ultimate job.

Madam Chair? I'm sorry.

Yes. Mr. Jannetti.

Before we finish this, I'd like to offer an amendment to Ordinance 071083 that would authorize the Commissioner of Public Property and the Philadelphia Municipal Authority to acquire and lease up to two additional acres of land in the vicinity of the New Youth Study Center and provide for on-site parking for the project. Upon lease or purchase, the additional parking area would be included in the project.

Thank you. That's good. The Clerk will come get the amendment and copy it, the proposed amendment. Thank you. Now, in terms of the security, Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, 68 12/6/07 - FINANCE - BILL 071082 Madam Chair. That security, is that a private security or is that -- DEPUTY COMMISSIONER RANDOLPH: No. Our staff is City employees. COUNCILMAN DiCICCO: City employees. Okay. Thank you.

Thank you. And we need to know how many people will be outside on the grounds, because you're across the street from housing, from neighborhoods, and how many people will be inside. As I said, we even met with the union on this project and had their concerns after somebody -- after a youngster escaped from the Youth Study Center and got through a window, and they didn't even want civilians in the building. But there are a lot -- there are many complicated issues about this that unfortunately the City has still opted not to correct and not to deal with 69 12/6/07 - FINANCE - BILL 071082 on this. So we need to have that discussion, and we will put on the table that we want that to be an open-ended discussion so that we are satisfied that there is adequate security both inside and outside. Are we clear on that, Mr. Tustin and Jannetti?

Yes, ma'am.

Yes.

And I say that for the record to my colleagues, that they have agreed to have follow-up discussions about adequate security inside and outside. So I want that on the record so that all of you know that as well. The Chair now recognizes Councilwoman Tasco for some other questions.

I had some questions for the Property Commissioner. Maybe Mr. Jannetti or you could answer. 70 12/6/07 - FINANCE - BILL 071082 When she read the ordinance, I just wanted her to walk us through what the terms are in the ordinance in a layman's term, layperson term. What does all of that mean? The City is going to enter into an agreement with the Municipal Authority and then they are going to --

If I may, Councilwoman.

Yeah. Would you walk through it for me, tell me what we're voting on.

The site is currently owned by the City. The site will be -- the ownership of the site will be transferred to the Municipal Authority. The Municipal Authority will actually build the facility. Before that, the Municipal Authority will issue bonds to finance and build the facility. They'll build the facility, and then the City of Philadelphia, through the Department of Public Property, will lease 71 12/6/07 - FINANCE - BILL 071082 the project or lease the building, the facility, from the Municipal Authority. The lease payments will run for 30 years. At the end of 30 years, the ownership of the building will revert to the City. That's the simple --

And so now you have to also go back and calculate, before you issue the bonds, the cost of the parking? Do you have to sort of -- won't it increase the cost?

It may increase the cost a little bit, but we think that we can fit it into the budget or find other funds for it.

And so the Department of Human Services will pay the lease cost each year?

Yes, ma'am. The Department of Human Services will make the lease payments on the building, which the lease payments will mirror the debt service payments on the bonds, and the Department of Human Services will apply 72 12/6/07 - FINANCE - BILL 071082 those lease payments to Act 148 and get reimbursement for, I think it's, 50 percent of the lease payments currently.

Reimbursed from where?

From the state under Act 148.

Are they capital dollars or operating dollars?

It's operating dollars.

Does it have any budget impact on their providing services? Does it cut their dollars of funding for services to the --

It will impact DHS's budget, yes, because currently the lease payments are estimated at about $6.6 million a year, and so the impact on the budget net of reimbursement would be around $3.3 million.

So the total cost?

The total 73 12/6/07 - FINANCE - BILL 071082 cost --

The total cost they will pay will be 6.6 million?

Per year.

That's for the lease as well as the debt service?

Well, the lease payments mirror the debt service payments.

So they'll be $6.6 million short in their funding from the state?

No. In the appropriations, they will have 6.6 million. They will pay $6.6 million in lease payments. We will be reimbursed from the state for 3.3 million.

Thank you very much.

You're welcome.

Good morning, gentlemen. Let me beat a dead horse for a moment around this issue of parking. The Fourth Councilmanic 74 12/6/07 - FINANCE - BILL 071082 District just endured what some might call an injustice with regards to the expansion of St. Joe where for five years that community had to negotiate and renegotiate with the old leadership, with the new leadership in the ultimate construction of a parking lot. They wanted it to be eight stories. The community said three stories. They ended up at five stories, and today there's still parking on streets in and all around that neighborhood, wherein residents come home 9, 10 o'clock at night and can't park in front of their own house. So I will underscore as a resident of West Philadelphia the importance of being very, very, very, very thoughtful and being sure to make sure that Senator Vincent Hughes and those who run the building on the back end of 48th Street are part of those discussions so that it's a plan that has long-term implications as well. 75 12/6/07 - FINANCE - BILL 071082

Understood.

Any other questions of members of the panel? (No response.)

Mr. Tustin, please proceed with your testimony.

Thank you. I will. Could I just make one correction to the statement I made earlier?

Of course.

Someone had asked me about the zoning for the property. Councilwoman Tasco. I need to make a correction to that. We're not going to get it rezoned to C-3. The objective is to keep it at R-4 and just get a certificate of use. We looked at the advantages of both zoning classifications and we believe the R-4 is actually better for our intended use with certain -- well, we're going to ask for a certificate of use to use our type of facility in an R-4 zoning, and we've 76 12/6/07 - FINANCE - BILL 071082 talked to L&I about it. I must apologize for the mistake I made earlier.

Thank you.

You're welcome now to please proceed with your testimony.

Thank you. Good morning, Council and members of the Finance Committee. My name is Richard Tustin. I'm the Director of the Capital Program Office. Over the last several years, we have been working closely with DHS, Councilwoman Blackwell's staff and community leaders in West Philadelphia in the design of a new Youth Study Center. From its conception, Councilwoman Blackwell and Senator Vincent Hughes have asserted that the project include employment opportunities for the local residents and businesses. To that end, CPO has met three times with the community as a whole and twice with the West Philadelphia Business Coalition. 77 12/6/07 - FINANCE - BILL 071082 This coalition is an organization that represents 150 organizations, including the West Powelton Concerned Community Council, Mill Creek Council, Dunlap Community Citizens and the Nehemiah West Homeowners Association, not only to discuss the intent of the design of the new facility, but also --

We do not support the Coalition. I said that. We already talked about having language, that you write that up as well that Councilman DiCicco referenced. We have not agreed now to any agreement with any group. We want our community advisory board and we'll go from there. We don't want the City agreeing to work with any specific organization.

Okay.

I'm the Councilperson. We don't want it. I don't need you to read on the record who you're going to work with. You got to work with us, the City and whomever is 78 12/6/07 - FINANCE - BILL 071082 willing to work in the best interest of the community. It could be the West Philadelphia Coalition or parts of them and it could be whomever it is, but we don't need you this morning to put on the record who we're going to work with.

Councilwoman, we work for City Council.

Thank you.

And that's who we'll work with on this project. I only meant as past history as to what has happened to date.

And if we keep going back, I can go back further I think than you're prepared to go. So I think we need to move forward. We have another bill that needs to be heard. We're trying to work in a cooperative manner with the Administration, but you've got to work with me if you want to get this out. Let's not bring up problems. Let's try to get it done, deal 79 12/6/07 - FINANCE - BILL 071082 with the EOP, deal with the issues. We have one amendment. You've agreed on the record that you will write up something. Before we pass it out, we wanted something written about an agreement that we talked about that Councilman DiCicco referenced about the kind of advisory board we could set up, and we're fine, but if you go into specifics about past history, you have your version of it and I certainly have mine.

Okay. I don't know whether Council has a copy of what I've already prepared, but I'm prepared now to amend that based on the discussion we've just had.

So let's be clear on what that means. That means that any reference of the West Philadelphia Business Coalition in this document will be deleted?

It will be. I won't reference it at all going forward for this project at all. We will be 80 12/6/07 - FINANCE - BILL 071082 working strictly with Councilwoman Blackwell as head of any committee.

Thank you very much.

So I will skip over some of my testimony and get to EOP, which I think is an important issue for the Council. The item we want to address is the EOP plan for the contractors. At this time, without any detailed analysis of the available workforce, we have an aspiration goal of 40 percent for minority and five percent for women participation. In addition, MBEC has established the goals of to percent 18 minority and 10 to 15 percent for women 19 for general contracting/subcontracting 20 opportunities. So they are business 21 opportunities as opposed to EOP, which is 22 workforce opportunities. 23 Using the template already 24 established by NTI and New River City 25 project, we will require the contractor 81 12/6/07 - FINANCE - BILL 071082 to work with the construction manager, who I should say our construction manager on the job is the Temple Group. They are a 100 percent minority women-owned firm who have done a lot of work in West Philadelphia in particular, and they will act as our construction management firm on the project. We will work with the Council headed up by Councilwoman Blackwell, and we would also expect to work with private organizations like DAP, which is Diversified Apprentice Programs, to sponsor local residents in pre-apprentice training programs. In addition, the contractor will be required to work with our construction manager again and the construction trade unions to identify existing minority and women members in all categories, apprentices, journeymen, masters, for employment on this project. In addition, the contractor will also be required to work with our construction manager to assist local residents with 82 12/6/07 - FINANCE - BILL 071082 construction experience, but who may not be a member of the local union, to obtain temporary membership or waivers to work on this particular project. So this will be a joint venture between our construction manager, our trade unions, local trade unions who will participate on the project, as well as the committee headed up by Councilwoman Blackwell. We wanted to talk a little bit about how we are going to monitor participation, because without monitoring, how are we going to know how we're performing? We have worked together with the Managing Director's Labor Standards Division, MBEC, Law and MOIS in developing a new certified payroll form that we will give to our contractors. As you may know, Labor Standards already receives certified payroll from all contractors working on jobs, which identifies by name the people 83 12/6/07 - FINANCE - BILL 071082 that work on the job, what their trade classification is, what their payroll is and other information as well. We've modified that form to now include also race and gender. So we'll be able to capture in race the five classifications: African-American, Asian, Hispanic, Native American and Caucasian.

That's a substantial improvement.

We are going to capture all that information on the form. That form then we'll be able to use -- we'll be able to use that form and that information gathered to run reports, monthly reports, on how well the contractor is complying with our requirement for EOP. Again, based on these reports, we will be able to monitor the contractors' participation on performance and assist the contractor in moving forward if anticipated goals are not being reached. 84 12/6/07 - FINANCE - BILL 071082 Lastly, if the contractor should fail with his best and good-faith efforts, the City will have the right to withhold funds from their monthly invoice for labor costs proportionate to the participation goals until the oversight committee, which will be chaired by Councilwoman Blackwell and the City and our construction manager, will have an opportunity to resolve any of these issues that the contractor is facing in his ability to achieve our percentages that we're shooting for. And then, finally, the CPO or the City will have the authority under the contract to withhold all payments to contractors until all EOP compliances have been met, declare the contractor in default of the contract as a last resort and also declare the contractor ineligible to receive any award on future contracts affiliated with any EOP plan. Basically, that summarizes my testimony. It's not word for word. I've 85 12/6/07 - FINANCE - BILL 071082 modified it as per our previous conversations.

Your third paragraph on the bottom up on this page, the procedure you just referenced here, that is a new procedure, is it not, in the Capital Program Office wherein you now have modified the form to reflect both race and gender?

Yes. We've met with Law, MOIS, MBEC and Labor Standards to try to determine which is the best way of capturing this information, because unless we monitor it on a regular basis, it's easy for the contractor to slip and us not be aware of it.

We know too many stories like that.

Right. So we feel this is a very good way of making sure the contractor stays on track. Without certified payroll, the contractor doesn't get paid. So this certified payroll form will also capture this additional 86 12/6/07 - FINANCE - BILL 071082 information. And we'll be getting that on every invoice the contractors submit and their subcontractors. All the subcontractors are also required to submit certified payroll identifying by name everybody that's working on that job site. So we feel this is a good way of capturing that information. It is new.

Any other questions for this witness? Chairwoman Jannie Blackwell.

Thank you. Mr. Tustin, in terms of this plan, we certainly want the language changed, as we said. We want where it said community organization/community organizations, we want any reference to specific organizations deleted so that we can work with the organizations. We don't want more confusion and people co-opted in this manner. So we want this language changed. We're trying to deal with 87 12/6/07 - FINANCE - BILL 071082 passing this out today, but as you know, if it is to pass next, we need all of this -- we need the language changed and we will modify and monitor this language.

I will change this today and have it submitted to your office, have it resubmitted to your office.

Thank you. And also with regard to the amendment for two additional acres, how much parking would that provide?

Councilwoman, I can't tell you off the top of my head, but we want to make sure -- based on information I've just received, that will be adequate to provide on-site parking for all of our parking, both staff parking, visitors parking and -- well, we already have accommodated the parking for the --

Is it possible to leave the number of acres out 88 12/6/07 - FINANCE - BILL 071082 of the amendment and just amend it to say that you will lease additional acres, and then you can work out the number of acres you need later based on what we're looking for? Could we do that, Mr. Jannetti?

Yes, Councilwoman. We could say "lease additional land to accommodate parking."

Yes. I will leave the number out in case it's not adequate.

It was supposed to be "up to two acres," not to --

Well, you might need four acres.

Yes, ma'am.

You might need four acres. You don't know how much you're going to need. I mean, you just did this this morning. We appreciate the accommodation.

That makes sense. I agree with that. 89 12/6/07 - FINANCE - BILL 071082

But I think we ought to just leave that vacant.

To acquire sufficient space to accommodate parking.

Right.

Or sufficient acres. We don't want you to think space means one parking space. You know, you folks have not been very fair today in reviewing our concerns. And, as I said, we agree we would try to work with this Administration. I don't know how many years it's been. Maybe four. I don't know. But one would think that these questions would have been answered and we wouldn't have to take the Council time on a Thursday morning to deal with these important issues, but obviously they have not been. So we will entertain this amendment "or lease additional acres" and then you can work with my office and with my staff, John Christmas and Jeff Felder, to make sure that we have this in the EOP 90 12/6/07 - FINANCE - BILL 071082 stuff correctly written so that it works for everyone concerned and that we won't have these problems as we see moving forward. Are there further questions here? (No response.)

Any further questions? (No response.)

Okay. Thank you very much. We look forward to that. As I said, we're going to try to pass this out for first reading, but we still have second reading and final passage next week. So we really -- if we want to get it done, then everybody has got to work in good faith. And we are doing that. We're doing the same.

Thank you, Councilwoman. DEPUTY COMMISSIONER RANDOLPH: Thank you.

We 91 12/6/07 - FINANCE - BILL 071082 will now call other people here to testify while we deal with some of the language here. Theresa Sims, CPA. (No response.)

DeBorah Giles, Giles and Associates? These are individuals who likewise had questions about parking. I know I've spoken with them. Tracy Gordon, community activist. Tracy, thank you. You're next. And afterwards, is Shirley Kelly here? (No response.)

Shirley Kelly? (No response.)

Okay. Thank you, Tracy. Tracy, you're next. Thank you. Is there anyone else after Ms. Gordon who would like to testify on 92 12/6/07 - FINANCE - BILL 071082 this? (No response.)

Thank you.

Please, you may proceed with your testimony.

Thank you. Good morning, Councilmembers. I became interested in this project for several reasons. I grew up in the area. My great-grandmother purchased a home two blocks from the area. My sister now lives in the Lucien Blackwell homes in the area. I do a lot of work, social service work, in the area. I seen a massive transformation of a neighborhood that when they had the old Lex Street homes or the projects they used to call, it was just like a nightmare, and I have to pinch myself every time I drive around the area, because it's like totally transformed. I did get interested in this 93 12/6/07 - FINANCE - BILL 071082 particular project primarily because of the attack that was launched at Councilwoman Jannie Blackwell for I believe her justifiable holdout of the building of this facility without having any respect for her constituents in the neighborhood. For as long as I've known it, a Councilperson has the right and should have the right to demand certain amenities in their councilmanic district. I never see any problems with it when it's other Councilpeople, and I think that this attack from the media was unfounded, which prompted me to write an editorial in response of the attack. And I say this to Councilwoman Blackwell, don't worry about the attacks from the media. Most of them don't live in your district. Continue to worry about your constituents, those who unanimously vote for you every term. Having said that and having listened to the previous testimonial, I 94 12/6/07 - FINANCE - BILL 071082 hope to give you a little bit of facts. I want to focus on five issues, but I'm not going go in that order, because I don't want to lose track. But I would like to see that traffic and the parking study, because the way the City just presented it is as if it's just a big area that is industrial and it's just -- no mention of residents. In this particular two- to three-block radius -- it is probably more of a one-block radius, Councilmembers. You have an elementary school, you have a nursing home, you have a senior citizens complex, you have a medical health center, you have a mental institution, you have a charter school. Not the one that was there. The one that you were previously asking about, Councilwoman Tasco, was Renaissance Charter School, which my children attended. That's where they're planning to put that particular facility at.

What's the 95 12/6/07 - FINANCE - BILL 071082 location of Renaissance Charter School?

It's like 48th and Haverford.

That's right.

It's Haverford and then there's Market. It's real tricky. I'm going to give you some streets, too. You have a supermarket, you have a new total residential area, homeowners, slash, you have the rentals too, but there's a lot of homeowners in that district. This is within a three-block radius of where this facility is intended to go. You have a recreation center, you have the Community College there, where Haverford Avenue is a highway now.

That's what it is.

Now, it was a highway before the Market-Frankford El or hell disaster, Market Street, because that's closed off. That 46th Street is 96 12/6/07 - FINANCE - BILL 071082 closed off. It was always a highway. It was a highway for people from the suburbs coming up Haverford Avenue to come through the City. Now it's really a highway. I mean, really literally from 46th to 52nd Street, it takes you at least minutes during rush hour to get 9 from a five-block radius. That's how 10 encroached it is. So if you decide to 11 put parking there and people that are 12 stopped to park, imagine the traffic 13 disruption that's going to happen there. 14 It's going to be a nightmare. I don't 15 know when the study was done. 16 If that's going to take a 17 three-year project, Lord knows when 18 they're going to finish that 46th Street 19 Market-Frankford El. There is no parking 20 there. And it's not two lane. It's one. And it used to be one big lane, but now they put the bicycle, which makes it even narrower. So I just wanted that for the record to say that I believe the studies 97 12/6/07 - FINANCE - BILL 071082 are probably outdated for the traffic and the parking, and I believe that -- I wanted to include for the record that the City should not just state that this is not -- this is a residential area. We have little kids that are crossing the street there. We have a daycare center that's been there for years. So the parents are going to have to leave them there. I mean, everything around that area is, you know -- this is going to be quite different for me, because I know most of the City and this is going to be something like, to me, a pilot program if they're going to put a municipal functioning building in the middle of a community that was once probably vacant, but now it's no longer vacant. Another thing that I wanted to note, inside this municipal building -- I know the Councilwoman had already negotiated some things that she wanted as far as the center for her husband and the school, but I will propose that I would 98 12/6/07 - FINANCE - BILL 071082 like to see, based on a lot of constituent service that I do outside of my job, is just like they have in Northeast, they had that mini City Hall. I will propose that they put a mini City Hall there for that community there, because then you have 46th Street. My grandmother goes to that medical center, and that would be nice that she would be able to not necessarily have to go all the way down City Hall, that they could have a little mini City Hall, a constituent service center there for the people in there. That would be a nice addition, to me, that could go a long way, like they did in the Northeast. I think Northeast is the only one that has a mini City Hall, whereas their constituents don't have to come all the way to City Hall to deal with some of the constituent services.

What is the location of the medical center?

The medical center 99 12/6/07 - FINANCE - BILL 071082 is on 46th and Haverford. Well, the school is right there on the corner and then the medical center is right there. And then you have that large project. I forgot to even mention that. I think Drexel bought that. But I was saying that my grandmother and a lot of people I know frequent that area a lot, and they have SEPTA there. It's going to be a nightmare, because you have SEPTA -- I forget the bus that comes down there. So if they're going to park anywhere there, that's going to disrupt traffic. So, like I said, I would like to see that study. And I know for a fact that all these public City properties is going to make it a nightmare if they park on the street. Another concern that I have about this particular project and mainly all the projects that I see, I guess the new thing they do now is they block -- you used to see inside a construction 100 12/6/07 - FINANCE - BILL 071082 site, but now the new thing, they put up tarp so you can't see in, but I usually go peek behind the tarp. And I'm really concerned about the amount of qualified African-American contractors, and I would like to see in the language "minority" like blackened out. I think that's a trick word. It's been tricked on us for a long time. I want to see in that language -- I would like to see African-American, qualified African-American, contractors building this building that's going to be primarily housed of African-American in an African-American district. You can put the tarp up there, but when I look behind the tarp, I would like to see African-American men and women working. That "minority" needs to be scratched off all City capital projects, because it's a trick word. It's a trick word to get women, white women, in there, and then next thing you know, it's none of our people working. 101 12/6/07 - FINANCE - BILL 071082 We have qualified people down there trying to say that they're not journeymen and apprentice and they not getting -- and it's just too much tricks, and I'm sure that Councilman Goode would do good with looking into that language.

Allow me to put a fact on the record. You should be encouraged to know that the Temple Group is a qualified, experienced African-American, female-owned general contracting company with a huge track record, and I think it's great, remarkable that finally they're able to do business in Philadelphia, because most of their work has been done in Washington, DC. So with that as the first door of this enormous project, be encouraged to know that they get it when it comes to ensuring that people of color and women get fair opportunity.

People of color, but black people. Thank you. Black people. 102 12/6/07 - FINANCE - BILL 071082 And, finally, there's a safety issue that really needs to be seriously addressed, because you have the elementary school that's not going anywhere that's there, then you have a nursing home, you have a daycare. This is all within a half a block radius of where this proposed facility is going. So you have a lot of strangers coming in that area to visit their children in the evening, et cetera, et cetera, and the safety shouldn't just be confined to that building. It needs to be a study or it needs to be safety confined within a two- to three-block radius, because you have your senior citizens, you have the medical center where senior citizens frequent there every day. So that area is -- this is going to be a tricky type of development, because, like I said, you're having people from all over the City and sometimes out of the City coming to visit this particular neighborhood and you have 103 12/6/07 - FINANCE - BILL 071082 the charter school that's directly across the street. I did want to note that the Urban Center, they don't have parking space.

Ms. Gordon, if you could proceed in your testimony and try to avoid the repeat of facts you've put on the record already.

Okay. Thank you. Again, the Urban Center -- so he can scratch that out. They don't have enough parking spaces over there. But I just wanted to conclude with this, that this is a neighborhood. It's not like it's downtown or anything like that. We putting a jail, so to speak, in the middle of a neighborhood and we need to really, really consider the people that are living in that community and the disruption that's going to happen, because if I quote Councilwoman Blackwell previously, I didn't see too many people volunteering 104 12/6/07 - FINANCE - BILL 071082 in their councilmanic district to have that particular facility in their neighborhood.

We thank you for your important testimony, your perspective, on why the parking issue has to be resolved.

Thank you.

Very well.

Is there anyone else here to testify on the bills? (No response.)

We thank you all, and I hope that as we are working on these amendments, we need a moment to do that to see if we need one or two amendments. (Pause.)

Thank you very much. Is there anyone else here to testify? (No response.) 105 12/6/07 - FINANCE - BILL 071082

Thank you, Ms. Gordon, for coming. And I hope that all of you have heard everything she mentioned about schools, Catholic schools, charter schools, health facilities, housing, all of that in the immediate area. And, again, we say before we conclude this and go into our stated meeting that we will look forward to working, Mr. Tustin and Mr. Jannetti, in terms of your testimony to dealing with the issues mentioned. Certainly we would also like to receive an updated traffic/parking study that we will make available too to Ms. Gordon. And certainly we agree with all that you said about a mini City Hall. There's been so much talk, and I've had people over the years call and request that, and we've tried to get that as well. That would be a perfect location. We agree with all that you have stated. Thank you very much. Any other 106 12/6/07 - FINANCE - BILL 071082 questions or comments? (No response.)

That means we will end our hearing section of this meeting and go into formally our stated meeting. We have two amendments to Bill 9 No. 071083. Therefore, we will go immediately to request a motion for Bill 11 No. 071082, and we will call on Councilman Greenlee and ask him to report this out with a favorable recommendation. That is for Bill No. 071082. No 15 amendments on this bill.

Thank you, Madam Chair. I move that Bill No. 18 071082 be reported out of this Committee with a favorable recommendation and that the rules of Council be suspended to allow for first reading at our next session of Council. (Duly seconded.)

It has been moved and seconded that Bill No. 107 12/6/07 - FINANCE - BILL 071082 071082 be reported out of Committee with a favorable recommendation and, furthermore, that the rules of Council be suspended so as to permit first reading at our next session of Council. All in favor will say aye. (Aye.)

Opposed? (No response.)

The ayes have it and so the bill is reported out. The next bill to be considered is Bill No. 071083. We have two amendments. We will call the detailed document Amendment No. 1, which is the lease. The lease agreement is Amendment No. 1. Maybe we'll read both amendments and then do a motion on both. So Amendment No. 1 is the lease agreement. Amendment No. 2 I will read into the record. Amendment No. 2 amends Section 13 to include, one, "authorize 108 12/6/07 - FINANCE - BILL 071082 the Commissioner of Public Property or PMA to acquire or lease additional land in the vicinity of the property to provide for on-site parking for the project. Upon lease or purchase, the additional parking area shall be included in the project." And No. 2, Section 13 will now be called Section 14. "This ordinance shall take effect immediately." Are there questions? Is that acceptable to everyone?

Yes.

Having said that, the Chair calls on Councilman DiCicco for an adoption of Amendments and for Bill No. 071083. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move for the adoption of the amendments to Bill No. 071083. (Duly seconded.)

It has been moved and seconded that the amendments to Bill No. 071083 be adopted. All in favor will say aye. 109 12/6/07 - FINANCE - BILL 071082 (Aye.)

Opposed? (No response.)

The ayes have it and so the amendments are adopted. The Chair now calls on Councilman DiCicco to report out the bill 11 as amended, 071038. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move for the adoption of Bill No. 071083 as amended and be reported out of this Committee with a favorable recommendation and a further recommendation that the rules of Council be suspended. (Duly seconded.)

It has been moved and seconded that Bill No. 22 071083 as amended be reported out of Committee and, furthermore, that the rules of Council be suspended so as to permit first reading at our next session 110 12/6/07 - FINANCE - BILL 071082 of Council. All in favor will say aye. (Aye.)

Opposed? (No response.)

The ayes have it and so both bills are reported out of Committee. Let me thank all of you for all your work on this, and I especially want to thank my colleagues for their important questions and for working with us to get this done, and certainly we thank all of you who have come to deal with these Youth Study bills. Our hearing is recessed and we will turn this mike over to Councilman DiCicco.

It's Councilwoman Brown. Parks and Recreation is next.

Oh, dear. We have so many hearings today. 111 12/6/07 - FINANCE - BILL 071082 All right. Parks and Recreation is next, I take it. So we will turn it over to Councilwoman Blondell Reynolds Brown. Thank you all for coming. We look forward to working with the City. We want to get it done next week. We have a lot of work to do during this next week. Thank you all. (Committee on Finance adjourned at 10:50 a.m.) - - - 112 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on December 6, 2007, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)