civus
Minutes

Committee Hearing, March 12, 2002

Philadelphia City Council Committee HearingsMar 12, 2002

People mentioned

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

Organizations mentioned

Councilman Nutter

All right, thank you. Thank you, Madam Chair.

Council President Verna

You're welcome. Are there any other questions from members of the committee? (No further questions.)

Council President Verna

Seeing none, thank you.

Mr. Cuorato

Thank you, Madam President.

Council President Verna

Thank you very much. I believe the Civic Center is next. I'm 2165 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 sure they won't be more than two or three minutes. (Witness comes forward.)

Council President Verna

Good afternoon, please identify yourself for the record and proceed with your testimony.

Mr. Coleman

I'm James Coleman, Executive Director of the Philadelphia Civic Center. President Verna, honorable members of City Council, good morning. As I have previously indicated, the Civic Center has not been used for conventions, trade shows, athletic events and the like since shortly after the Pennsylvania Convention Center was opened. The Civic Center is currently set up as a sound stage and has been the location of many films which the Philadelphia Film Office worked so diligently to bring to our city. In fact, that office has closed a deal on a TV pilot, which, if successful, will result in a whole series being shot here at the Civic Center and around the City and the area. While the Film Office is working on a number of other project, it is very confident of 2166 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 also landing at least one full-time film production in the very near future. Today, I am here to address the Civic Center's Fiscal Year 2003 Operating Budget request. The total request is for $287,364, which is only $1775 more than the current estimated obligations for Fiscal 2002. This request breaks down to $121,921 for personnel services; $141,187 for purchase of services; and $24,256 for materials and supplies. This concludes my testimony. I will be pleased to answer any questions.

Council President Verna

Thank you, Mr. Coleman. Out of curiosity, can you tell us what series is going to be filmed here?

Mr. Coleman

Pardon me?

Council President Verna

What series are they filming here?

Mr. Coleman

It is one that was only closed late last week. I really don't know what --

Council President Verna

You're not at liberty to tell us?

Mr. Coleman

No, it's not that I'm not 2167 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 at liberty; I just don't know. I mean, I'm not involved with that part of the operation. It does have a preliminary title, "Haak," H-A-A-K, and I have no idea what the story line is.

Council President Verna

Okay.

Councilman Nutter

What is it?

Council President Verna

Haak.

Councilman Nutter

Haak.

Council President Verna

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

Council President Verna

Thank you, Mr. Coleman. I appreciate your patience.

Mr. Coleman

Thank you. You all have a good day.

Council President Verna

You do the same. Councilman Clarke, do you ever a question of Mr. Coleman?

Councilman Clarke

Yes. Actually, I just wanted to get some clarity, Madam Chair. The Civic Center, that's the complex -- my understanding is that a part of that complex was proposed to be developed by University of Penn, or 2168 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 am I not thinking about the same?

Mr. Coleman

That's correct, Councilman.

Councilman Clarke

Can you tell me about that? What's going on with that? I had heard that there was a submission and I heard that they were proceeding with the potential development of some of that site, and then I heard that it wasn't going to proceed. Can you bring me up to snuff on what's going on with that?

Mr. Coleman

The current development, or the current goings-on at the site now is, the old exhibition halls have been demolished. There was a flat parking surface on the very -- I think it's the south end of the development, which is now being constructed as a parking garage, a multilevel parking garage. I believe that's a joint effort between the University of Pennsylvania and Children's Hospital. There is about to start a construction project by Children's Hospital that should be starting very soon. I'm not so sure about where the Cancer Research Center of HUP stands. That 2169 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 would basically adjacent to where Children's is building. And what remains of the Civic Center is the old museum building and Convention Hall.

Councilman Clarke

Okay.

Mr. Coleman

Pennsylvania Hall is -- it's my understanding -- I'm not sure exactly where it stands now, but that's in the process, or has recently been -- title has been recently transferred from the State to the City for further transfer to one of those other entities, and perhaps PIDC, which is behind me, I think, maybe in better -- more current than I on that.

Councilman Clarke

Okay. All right, thank you, Madam Chair. Thank you, Mr. Coleman.

Mr. Coleman

Thank you.

Council President Verna

Thank you very much. Councilman Clarke, did you want a call-back?

Councilman Clarke

Yes, Madam Chair. I had a couple questions for PCDC. (Witness comes forward.) 2170 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001

Council President Verna

Good afternoon. Please identify yourself for the record.

Mr. Jones

Yes, my name is Curtis Jones, President and CEO of the Philadelphia Commercial Development Corporation.

Council President Verna

Thank you. Councilman Clarke?

Councilman Clarke

Thank you, Madam Chair. Good afternoon.

Mr. Jones

Good afternoon.

Councilman Clarke

Mr. Jones, can you talk to me briefly about what's going on with our neighborhood commercial corridors and PCDC's involvement, outreach, achievements and all of that?

Mr. Jones

Mm-hmm. As the Commerce Director previously said, we're, in spite of 9/11 and in spite of the economy, seeing a lot of resurgence of retailers looking to establish locations in inner-cities. The question comes during the whole NTI process, being able to acquire a number of sites that have the potential for 2171 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 development, and then marketing them to would-be retailers in inner-city areas. We believe that the NTI process offers us that ability to assemble sites to market sites and then get development going. One other thing that we're doing in conjunction with NTI, and I believe Mjenzi Traylor, the Deputy Commerce Director, mentioned that we've begun the process with NTI to talk about how we integrate the need for housing development along with the need for commercial development, so we're --

Councilman Clarke

Excuse me, not to cut you off. When you say "we," are you talking about the entire Commerce-related family, or are you talking about PCDC in particular?

Mr. Jones

No, I'm talking about the entire Commerce-related family, including PCDC as a subcomponent, as one tool in the belt, if you would. We had a record year by way of lending. We did close to $5.6 million in just one of our programs. We've been averaging, along with other programs such as SBA and bank financing, almost 2172 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 approximately $10.1 million in small-business loans. And when you talk about the size, it's anywhere from $5,000 to upwards of $250,000 on average. So we're really optimistic about where the economy is going, particularly for small businesses.

Councilman Clarke

Okay, can you -- and you may not be able to provide this -- actually, I won't even ask you to provide this today. Can you give me the information related to the job creation, say, for the last couple of fiscal years?

Councilman Clarke

In direct correlation to the loan packages that you've been able to put together either for start-up businesses or for business expansions in commercial corridors or throughout the City of Philadelphia?

Mr. Curtis

Yes. We are required by HUD to actually keep those figures, both in dollars expended, correlating that to new-job creation, and also over the life of the particular project. And each year, we exceed our numbers, but I will give you the exact -- 2173 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001

Councilman Clarke

If you could provide that to the Chair.

Mr. Jones

Absolutely.

Councilman Clarke

Thank you. Last question. Company Store, what's going on with that?

Mr. Jones

We are in negotiations of possibly selling that facility to be developed as a retail facility on Cecil B. Moore. We're looking at one proposal in particular, but there are several that have been brought to our attention. But we're in a negotiation process. We put a number out and we're waiting for a response from the potential developer.

Councilman Clarke

Is it operable currently?

Mr. Jones

No, it's closed.

Councilman Clarke

It's closed?

Councilman Clarke

So you're entertaining some proposals at this time?

Mr. Jones

Absolutely. We're looking to complement whatever development goes on in the 1600 block, and we're taking a look at that. We're 2174 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 talking to local merchants, giving them a first option on the property.

Councilman Clarke

Okay, thank you. Thank you, Madam Chair.

Council President Verna

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

Council President Verna

Thank you very much.

Mr. Jones

Thank you.

Mr. Mcpherson

SEPTA. (Witnesses come forward.)

Council President Verna

Good afternoon. Thank you for your patience.

Ms. Moore

You're more than welcome.

Council President Verna

Miss Moore, we congratulate you on your appointment, and we certainly wish you well.

Ms. Moore

Thank you.

Council President Verna

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

Ms. Moore

Hi. I'm Faye Moore. I'm 2175 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 SEPTA's General Manager. Thank you for the opportunity to speak about SEPTA's $64.2 million Operating Budget request for Fiscal Year 2003 and to report on key authority initiatives and milestones achieved over the past year. Joining me today is SEPTA Board Member Jettie Newkirk and staff members Frances Jones from Government Affairs and Joe Casey from Finance. Miss Newkirk has a couple of words she'd like to share with you.

Council President Verna

Thank you.

Ms. Newkirk

Madam Chair, Good morning. I just wanted to express my absolute pleasure and honor at being able to accompany Miss Moore today on this historic occasion. It is, as you are well aware, the first time that there has been a woman at the helm of SEPTA. (Applause.)

Ms. Newkirk

And we are truly pleased by that. And in addition to being a woman, she is also the first Afro-American. So I just wanted to make sure that that was on the Council record, and we are amply aware 2176 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 of that on this very much historical occasion. And thank you very much for the pleasure of allowing us to do that.

Council President Verna

And I'm sure she'll do an absolutely superb job.

Ms. Newkirk

We are absolutely sure of that, Madam Chair.

Ms. Moore

I'm going to use that at my next staff meeting. ) This past year was a time of great challenge and transition for SEPTA. For SEPTA's 9,000 dedicated employees, this meant being prepared to handle any situation from our daily charge of expanding service and improving our infrastructure, vehicles, stations, to the challenges of maintaining service during adverse weather conditions, moving thousands of riders to major sporting and cultural events, and keeping the City and region mobile during the national emergency. Delivery of quality service for those who live and work in Philadelphia is a commitment that SEPTA meets 24 hours a day, 365 days a year. 2177 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 Taking a proactive approach to service delivery, the Authority employs strategic planning tools, such as the Annual Service Planning process and public hearings, we have enhanced existing route service and created new service for growing customer markets. For example, last year, service was expanded on the Route Trolley, and Bus Routes 10 15, L, 20, and 23, and early-morning service from Center City on the R5 Thorndale/Paoli was improved to help Philadelphia residents who work in suburban employment centers. Progress was also made in meeting the challenge of expanding our accessible route bus network. With the addition of new wheelchair- equipped and low-floor buses, seven existing routes became fully accessible to all riders. Over the past ten years, we have invested more than half a billion dollars purchasing accessible vehicles. Today, 73 percent of all of our bus fleet is fully accessible, and by 2004, our fixed-route bus services will be 100 percent accessible. The newest vehicle in SEPTA's fleet, the 2178 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 40-foot low-floor bus, is an important part of the accessibility story. These customer-friendly buses, with the bright, large-lettered designation signs, and new rear-route designation signs, are drawing very favorable comments from customers and operators. One hundred of these vehicles now operate on SEPTA routes, with an additional 100 buses expected during calendar 2002. Our fleet was also enhanced with 80 new 30-foot accessible vehicles. These smaller buses enable SEPTA to match vehicle size to the needs of our customers and the communities we serve. New vehicles were also purchased for our paratransit operations to replace percent of the fleet. 16 Supporting City and regional visitor and 17 tourism promotional efforts continues to be a key 18 focus for SEPTA service and marketing activities. 19 The NBA All-Star Game placed Philadelphia in the 20 national spotlight as a great place for special sporting and entertainment events. We're working to highlight the amenities of Center City with the launch of a revisited mid-city bus loop known as the "Center City Shopping Spree," designed to showcase downtown 2179 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 shopping, dining and entertainment. This route is operated with our customer-friendly 40-foot low-floor bus. Maintaining a state of good repair for the system is a challenge we have made throughout our station and infrastructure improvement programs. This includes our escalator program. That task alone can be a huge task, given the heavy use and outdoor conditions of some of this equipment. With the development of a comprehensive, five-phase escalator-replacement plan, we can maximize our Capital Budget resources. This year, Phase 2 replacement work put new escalators into service at the City Hall and Erie Stations on the Broad Street line, at the Spring Garden Station on the Market-Frankford line, and our 30th Street railroad station. Next year, Phase 3 is programmed to install new equipment at two Broad Street subway stations -- Cecil B. Moore and Snyder.

Ms. Moore

I am pleased to report that several station construction and reconstruction projects reached completion milestones, including the dedication of the Erie-Torresdale and Allegheny- 2180 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 Frankford elevated stations. SEPTA also launched its new Art in Transit Program, with the unveiling of a permanent art installation at the Erie-Torresdale stop. Great progress has been made on the Frankford Transportation Center project, with substantial completion of the bus depot and the start of construction on the new terminal facility and guideway. On the Market Street elevated reconstruction project, the design work was completed, construction began on the automatic train control system, and the first station construction contract was issued. Other project highlight include Suburban Station Phase work, 30th Street Phase improvements, and renovation of the Somerton Station on the R3 West Trenton rail line I am also pleased to report that for the first time in this region, Federal New Start funds are being dedicated to advance preliminary engineering for the Schuylkill Valley Metro Project. With the adoption of new fare tariffs 2181 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 last July, we established a new ComPass program for the sale of school tokens to school districts. Now all districts, including the School District of Philadelphia, can purchase tokens in bulk at a discounted rate of percent. It is our understanding that with the additional discount the Philadelphia School District offers, they have been able to hold the cost of a school token to 90 cents, which is the same as pre the tariff. For businesses and institutions in the City, the corporate ComPass and Transit Chek programs offer significant pre-tax savings for individuals purchasing public-transit fare instruments. These programs not only promote public transit, they support environmental conservation measures, and help reduce highway and downtown traffic congestion. For the 12th consecutive year, crime in the SEPTA system was reduced through the diligent efforts of our 260-member transit police force. The 3 percent decline in Part crimes in 2002 23 translates into a cumulative reduction of 24 93 percent since 1989. 25 It would be impossible to recount 2182 1 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 SEPTA's activities over the past 12 months without speaking about September the 11th. Every segment of our community was impacted by these tragic events, but in the face of a crisis, we were able to demonstrate to the City and to the region the continued value of a viable public transit system, as our personnel mobilized to handle an early traffic rush. Safe operation of SEPTA has always been among our highest priorities, as demonstrated by our rigorous schedule of safety training program, front-line personnel certification and recertification, hazardous-materials training, and emergency and disaster readiness drills. In the aftermath of September 11th, we mobilized a public safety and security task force to review all in-place security measures and complete our facility and operations risk assessment to identify possible vulnerable points. New security initiatives are being considered, including a radio network that would enable City of Philadelphia police and firefighter radio equipment to work in our extensive tunnel system. These types of sophisticated security 2183 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 upgrades can be costly and will require a reassessment of our Capital Budget resources to determine SEPTA's financial ability to implement these projects. SEPTA ridership has always been a barometer in assessing economic conditions in the region. Recent ridership declines on City transit service routes can be linked to the fare increase, a general slowing of the economy, and increases in unemployment in the aftermath of September 11th.

Ms. Moore

In keeping with our commitment to fiscal prudence, we have reevaluated our current financial situation and are implementing internal belt-tightening measures while moving forward on our budget preparation for Fiscal Year 2003. We continue to focus on areas for ongoing cost savings, including reductions in legal claims, Worker's Compensation, health care and prescription drug costs, and implementing cost-containment initiatives identified during our successful labor negotiations last year. I would like to take the opportunity to thank City leadership, who was instrumental in helping SEPTA achieve this contract agreement without a work stoppage. 2184 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 Finally, I would like to report on the success of the 2001 American Public Transportation Association -- as we refer to it, "APTA" -- annual meeting SEPTA host this past fall. The City of Philadelphia and our transit system received great reviews from the 3,000 transit professionals from across the country in attendance. At the opening session, Secretary of Transportation Norman Minetta and Federal Transit Administrator Jenna Dorn offered words of encouragement underscoring the value and importance of strong, safe, and secure public transportation systems across the country. In my opening statement, I spoke about this being a time of transition for SEPTA, and I am pleased to appear before City Council today as the new General Manager of SEPTA. Installation of a new management team always brings change for an organization. The transition is moving smoothly because of my familiarity with SEPTA operations and the financial situation we are facing. I am committed to rebuilding ridership, moving station and facility projects, maintaining the highest levels of customer service, safety and security, 2185 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 and supporting economic-development initiatives in the City by providing quality transportation services. Council President Verna, thank you again for the opportunity to provide testimony this afternoon. I look forward to forging new relationships with your office and continuing the work started with Councilman Goode, Chair of the Transportation Committee, and other members of the committee to meet the needs of the City and the region. If there are any questions, I'll attempt to answer them.

Council President Verna

Thank you very much. At this time, the Chair recognizes Goode.

Councilman Goode

Thank you, Madam Chair.

Council President Verna

You're welcome.

Councilman Goode

Good afternoon, Miss Moore, and congratulations again on your appointment. 2186 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001

Ms. Moore

Thank you.

Councilman Goode

I was glad to introduce a resolution honoring you as the first female and first African-American, and as Miss Newkirk said, this is indeed an historic moment, but history already having been made and let's let history be history, let's discuss some current and future business. State Senator Vincent Hughes and State Senator Tony Williams have lodged complaints about minority participation on the el reconstruction project in West Philadelphia. Can you separate for me the fact from the fiction?

Ms. Moore

Well, it's super-complicated. We are preparing to brief the board on Thursday on, I guess, the entire Market elevated. If you could wait, we can give you that update as we prepare to get the update for the board.

Councilman Goode

Are you meeting your goals?

Ms. Moore

The overall goal for Market elevated is about 26.4 percent; we are currently about a little -- hovering around 25 percent. 2187 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 Keep in mind now that the piece that I think is the focal point is about percent of the 4 project, and the project itself is $420 million. 5 So this is a smaller piece of a bigger project. 6

Councilman Goode

What is SEPTA's 7 Affirmative Action policy? What do they normally 8 do in terms of participation by disadvantaged 9 businesses? 10

Ms. Moore

Well, goals are set by the DBE area. They monitor their outreach programs. But, again, for Market elevated, all of that is addressed in some detail in the presentation that we're going to give to the board, and we'll be willing to share that with you.

Councilman Goode

But is there an overall policy in terms of a number that is set for participation in terms of minority, women, and disabled businesses?

Ms. Moore

It varies by project, but, yes, there is a policy for DBE involvement.

Councilman Goode

And is there a number?

Ms. Moore

The overall federal goal is around 17 percent. Our goal is higher. 2188 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001

Councilman Goode

Okay. In trying to better serve those needs and deliver those opportunities, is there any review of the contractors you use in terms of whether they are minority-business-participation-friendly?

Ms. Moore

You have to describe "friendly." If that means if they have a pattern of --

Councilman Goode

Have you reviewed their records in terms of what participation levels they have done in the past and what they've been able to achieve?

Ms. Moore

You have to give me more -- each one specifically. Yes -- in general answer to your question, yes, that's done. But if you have certain specifics, we'd have to look at each one of them and tell you whether or not we have conducted a detailed review of that particular vendor.

Councilman Goode

Let me give you an example of a litmus test, and this actually is not my litmus test. In the '99 debate on the mayoral election, I was at a forum where the current mayor 2189 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 and Sam Katz were asked to present what they thought should be the test. Sam Katz responded at one point that he would like to look at businesses and what they're doing in terms of minority participation when it does not involve government funds. Do you think that would be an appropriate litmus test to see who's doing business with minorities, women, and disabled businesses when it does not involve government funds?

Ms. Moore

Well, I wouldn't know because everything we do involves government funds, so --

Councilman Goode

Well, you can ask them whether they are using minority, women, disabled businesses.

Ms. Moore

Our process is even more restricted. We have four construction-type projects; there is a very strict federal guideline that has to be followed. Included in there is low bid, obviously. When you get into the low bid, then you have other criteria that you have to look at. The complication that any agency has 2190 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 with DBE is that, as we all know, there is very little legal teeth in some of the stuff that we would love to see done. So it is really up to many of the vendors to go beyond what is required.

Councilman Goode

So usually what we do is, we try to do it legislatively by studying goals at the point at which we're funding people, like providing subsidies to SEPTA. So are you saying that you're restricted by federal government guidelines in terms of how aggressive you are?

Ms. Moore

Yes, very much so.

Councilman Goode

Okay, let's move on beyond minority participation, and I'm not satisfied with that, and I guess that's why we didn't have the meeting we should have had before you came here today. Let me yield to Councilwoman Blackwell.

Councilwoman Blackwell

Thank you. While we are on this issue, certainly we welcome you, and we're sorry that you inherited this problem, that you came on board when we're having a big problem. And certainly for Jettie Newkirk, for both people there, and Frances Jones, 2191 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 they do a fine job, and we thank them as well. Having said that, we are having real, real big, serious concerns, as Councilman Goode said, in the neighborhood with regard to minority participation. I met with some vendors yesterday who were supposed to give me a copy of a map they had that listed minority participation. The only minority participation they have are female, and then there are no minority females involved. I mean, you only have a handful. So they have assured me -- and in fact, as soon as I get a copy of this chart, I will forward a copy to you and to my colleagues.

Councilwoman Blackwell

But we are really concerned that in the real scheme of things -- and it's not just SEPTA, but as you know, SEPTA's a major player in development in my area and touches Councilman Nutter's area from 46th to 63rd. And we absolutely get complaints all the time about the lack of minority people who represent the neighborhood being involved in this project. And we really, really would like some documentation from you and some information as to 2192 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 what SEPTA can do to make sure that certainly we do have some minority people on the job, at least something. I mean it's so minimal, that people don't see any reflection that there are any minorities on the job as well.

Ms. Moore

And, again, we can share briefing, but I also want to make sure that we understand that the project itself is a $420 million project, where the first real construction effort just recently started. So we still do have a significant amount of dollars to be awarded to contractors, but I know Miss Newkirk wanted to add something.

Ms. Newkirk

Well, I have been hearing these complaints, and we have been in communication with the Afro-American Chamber, and it was for this reason, since I chair the Operations Committee, that we asked for this briefing that we're going to get on Thursday. Some of the problems, I can say right now, are legal problems. The DBE, the law that allows us to make these efforts, as the General Manager has said, has no teeth. We have no 2193 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 enforcement mechanism that we can put in in spite of that, and even when we ask for certain compliances, if they don't comply, once it is determined that they have made a good-faith effort, there is also, then, very little that we can do. So -- but we are trying to find -- and there is a difference in hiring from the community and the DBE, which comes as a part of the initial bid. So we are taking a look at this on Thursday, Council Lady, and we would ask to be able to get back to you and to share what we find and what we are told in this briefing after that, and then we will have a better idea of where we are on this. And, hopefully, we can then work together to try and resolve this problem so that everyone at least understands the limitations that SEPTA has and what SEPTA can do and what it cannot do so that some of these allegations can hopefully be satisfied.

Councilwoman Blackwell

Thank you. And thank you, Councilman Goode.

Councilman Goode

Thank you. 2194 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 So we've established it's going to be very conservative in terms of opportunities for disadvantaged businesses. Let's move on to --

Ms. Moore

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

Councilman Goode

We've established it's going to be very conservative in terms of opportunities for disadvantaged businesses, but let's move on to community reinvestment, though.

Ms. Moore

If I could just add something. The federal goal is percent; our 13 goal is roughly 26.4 percent. So we're not 14 necessarily being conservative. We've taken a more 15 aggressive posture than the federal government 16 would suggest. 17

Councilman Goode

I believe that's still conservative.

Councilman Goode

Moving on to what community benefit there's going to be. There is a $420 million project in West Philadelphia in the districts of Councilwoman Blackwell and Councilman Nutter. In the Mayor's Transformation Initiative, they talk a lot about transit-oriented development. 2195 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 We know that there is a $420 million project being done there. Are you the coordinating at all with any of the stakeholders, including the Mayor's Office on what's going to happen at 40th and market, what's going to happen at 46th and Market, what's going to happen at 52nd and Market, what's going to happen at 60th and Market in terms of coordinated type of reinvestment in the community? Tell me specifically what's being done.

Ms. Moore

I am told yes; I don't know specifics, however.

Ms. Jones

Good afternoon. My name is Frances Jones, and I am the Assistant General Manager of Government Affairs. When we initially put together the outreach for the Market Street elevated reconstruction project, we coordinated all of our efforts with quasi-public agencies as well as the City operating departments, and we worked very closely with PCDC in the West Philadelphia area with the commercial corridors and the development that's occurring around the commercial corridors that are impacted by the Market Street Elevated 2196 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 reconstruction project. In addition, at this juncture, we have not talked to the Mayor's Office regarding NTI since it is just so newly implemented or instituted as far as the program is concerned, but our outfit reach in the community and with the City agencies is an ongoing process.

Councilman Goode

The outreach coordination, I'm asking specifically of the $420 million. There's hundreds of millions of dollars being invested in West Philadelphia. We have a $295 million investment going on citywide. If it's going to call for other governmental, other private sector investment to transform neighborhoods, with a $420 million investment being made just in West Philadelphia, is there going to be coordination of those investments or not? Are you going to do your thing separate from what the Mayor is doing, separate from what the community is doing? What's going to happen? Is that $420 million locked in in terms of how it can be coordinated with other efforts to transform neighborhoods in West Philadelphia?

Ms. Jones

We have a very specific 2197 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 project in the Market Street Elevated project, and in that project, there are very specific things that we're going to do like rebuilding the guideway, rebuilding stations, and there's some site improvement that is a part of that. So those dollars have been designated very specifically for that project. But as in all City agencies and quasi's, there is some leverage of dollars to do and complement other activities that are going on in the community. And what we've done is to try to keep abreast of any present and future activities that are going on in an effort to leverage our dollars with other activities going on in the community, both public and private.

Councilman Goode

So you're not going to change the minority participation goals, you're not going to make any of the dollars for this project flexible in terms of how it may benefit other things done in the community, but you come here today for tens of millions of dollars in subsidy.

Ms. Moore

I think, to answer your question, the $420 million is to get the 2198 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 infrastructure for the el into a, I guess, a state of good repair as well as almost a new facility. The $420 million is specific, and it's specific primarily for construction for the guideway, the foundations, and stations. As Frances mentioned, the NTI is just new and off the board. I don't think that anyone has approached SEPTA significantly about coordination, but it is on a schedule, and Frances will again put it on her plate to just make sure we're in the loop, but right now, I don't since that we are in the loop.

Councilman Goode

No further questions, Madam President.

Council President Verna

Thank you, The Chair recognizes Councilman Ortiz.

Councilman Ortiz

Thank you, Madam Chair. Congratulations.

Ms. Moore

Thank you.

Councilman Ortiz

Good afternoon, Miss Newkirk. Good afternoon, Frances.

Ms. Newkirk

Good afternoon.

Ms. Jones

Good afternoon. 2199 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001

Councilman Ortiz

I'm not going to go into the aspect of minority participation and all of that because I've sat here for too many years and we've had meetings with SEPTA and Latino contractors and so on, and we haven't seen an increase, so we haven't seen greater participation. So I'm just hoping that that you're going to do things differently and that next year, when we're here, we will see greater minority participation of African-Americans and Latinos and so on. I don't expect you to have the answers because you just got in

Ms. Moore

Okay, thank you very much.

Councilman Ortiz

And I don't expect you to have a totally formulated policy as to these issues until you grasp the lay of the land, as they say, and the history that has gone on and as you look at promises that have been made. So that being said, I expect that we will see Latinos participating not in just the construction but in the legal, in the professional aspects that SEPTA has and brings forward to make the SEPTA structure look more or less like the face of the City, as such. 2200 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 One other thing. Because you're here new, you talked about the school token issue. Miss Newkirk is a veteran of this issue with us for a long time. In essence, the status quo, which is what we got and the 5 percent, is not good for the school children of Philadelphia. And we need -- we need greater imagination and thinking both from SEPTA and the State so that we can begin to structure a plan in which kids in the public school system can go to school and not have to -- their mothers not have to decide whether they're going to put food on the table or pay for tokens at times. The status quo and the 5 percent is welcome because it retains and maintains the status quo and does not add to the burdens that the school system currently has, but it is not good enough, not good enough. So I welcome the 5 percent, but it is not good enough. And I hope that as you sit down and you analyze the policies of both contracting employment and on the school issues, you will start coming more and more perhaps to the vision that some of us share in this Council. So that's my statement. No questions. 2201 3/12/02 WHOLE - OPERATING BUDGET CONT'D. 020001 Good luck.

Ms. Moore

Thank you.

Councilman Ortiz

And I hope you succeed.

Council President Verna

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

Council President Verna

Seeing none, this will conclude our public hearing for today. Thank you very much. Again we wish you well.

Ms. Moore

Thank you.

Council President Verna

This committee will stand in recess until tomorrow, March the 13th, at 9:30. Thank you. (Proceedings end at 1:03 p.m.) - - - 2202 CERTIFICATE I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia's meeting of the Committee of the Whole of Tuesday, March 11, 2002, are contained fully and accurately in the stenographic notes taken by me, and that this is a true and correct transcript of same. RE: Ordinance No. 020001 _______________________________, Josephine Cardillo Registered Professional Reporter and 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.)