COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING AND MEETING BEFORE THE COUNCIL COMMITTEE ON APPROPRIATIONS - - - Room 696, City Hall Philadelphia, Pennsylvania Thursday, 5/30/02, 9:12 a.m. - - - BILL 020276 - FY '02 Transfers in appropriations within Grants Revenue Fund from Dir. of Finance - Provision for Other Grants to the City Representative and Director of Commerce BILL 020343 - FY '02 transfers in appropriations within Water Fund from the Department of Revenue to Department of Revenue. BILL 020344 - FY '02 transfers in appropriations within General Fund from Dept. of Revenue - Sinking Fund Commission to Register of Wills and Sheriff. COUNCILMEMBERS PRESENT: Joan L. Krajewski, Chairperson Michael A. Nutter, Vice Chairperson Darrell L. Clarke Richard T. Mariano Donna Reed Miller Angel L. Ortiz - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 5/30/02 APPROPRIATIONS COMMITTEE INDEX WITNESS Rob Dubow, Budget Director.................... Ronald Donatucci, Register of Wills........... Paris Frazier, Sheriff's Office............... Denise Garrett, Water Revenue Bureau.......... John Gordon, Commerce......................... 8 9 10 11 12 3 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344
The Committee on Appropriations is now in session. Will the clerk please read the title of the bills.
Bill No. 020276, an ordinance authorizing transfers in appropriations for Fiscal Year 2002 within the Grants Revenue Fund from the Director of Finance - Provision for Other Grants to the City Representative and the Director of Commerce. And Bill No. 020343, an ordinance 12 authorizing transfers in appropriations for Fiscal Year 2002 within the Water Fund from the Department of Revenue to the Department of Revenue. And Bill No. 020344, an ordinance 16 authorizing transfers in appropriations for Fiscal Year 2002 within the General Fund from the Department of Revenue - Sinking Fund Commission to the Register of Wills and the Sheriff.
I would just like to acknowledge the quorum here. We have Councilman Mariano, Councilman Ortiz, Councilman Nutter, Councilwoman Miller, and to my left, Councilman Clarke. (Witness comes forward.) 4 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344
Good morning. Good morning, Councilwoman Krajewski and members of the Appropriations Committee. My name is Rob Dubow. I serve as Budget Director for the City of Philadelphia. I appear before you here today to offer testimony on Bills No. 020376, 020343, and 020344, which make FY '2002 budget appropriation transfers between departments in the City's General Fund, Grants Revenue Fund, and Water Fund. Bill No. 020276 requests a transfer in appropriation of $4.6 million within the Grants Revenue Fund from the Director of Finance - Provision for Other Grants to the City Representative and the Director of Commerce. During the development of the Hyatt Regency at Penn's Landing, the City requested the reallocation of $10 million in urban development action grant funds to support project. Although the reallocation was approved, it was challenged in court by various neighborhood associations. The City, in order not to delay the project, decided to lend $10 million in economic-stimulus dollars pending the resolution of the case. 5 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 The appeals are over, and the UDAG has been officially approved. This transfer is requested because the Grants Revenue Fund in the Commerce Department has only $5.4 million available and needs the remaining $4.6 million to fully replenish the loan economic-stimulus dollars. Do you want me to go on to the other bills?
Bill No. 020343 requests a transfer of $6 million within the Water Fund from Personal Services to Purchases of Services in the Water Revenue Bureau of the Revenue Department to support the development of an automated customer information work order management system. These funds will be used for consulting services to be employed by the Mayor's Office of Information Services, which is engaged in designing and implementing the system. Bill No. 020344 requests the transfer of $480,000 from the Department of Revenue - Sinking Fund Commission to the Register of Wills and the Sheriff. An $80,000 transfer to the 6 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 Register of Wills Class 100 Appropriation will cover shortfalls in payroll that developed due to the implementation of the Banner Program, which will like the computers to the Register and the Courts. The $400,000 transfer to the Sheriff's Class 100 appropriation will cover increased security costs and opening of Saturday Traffic Court. I hope these comments have been helpful in describing the content of the ordinances before you and the reasons for their introduction. On behalf of the Administration, I respectively request your favorable consideration on the bills and suspension of the bills. I'll be happy to answer any questions that you may have at this time. Thank you.
Thank you. Under Bill 020344 regarding the Register of Wills, you referred to shortfalls in payroll due to a computer upgrade. Could you explain that to me.
Yeah, I'm going to ask that the Register, Ron Donatucci, come up and explain that. 7 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 (Witness comes forward.)
Last July, approximately a year ago, the courts mandated to the Register of Wills Office, our local court system, that we go on the Internet for access to the Bar Association and to the public so they could access documents in our Orphans Court Division. At that time, we had to go out and bring in different personnel and basically assign six different employees to enter approximately 4400 hits a month, approximately 4400 entries on our Internet system and entries of our docket entries. And I have a feeling that there may be other mandates coming down by the court, the Supreme Court, in the day of electronics and the day of the Internet, so we are --
Exactly, but this is something that we were -- not blind-sided on.
8 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344
But it was never something we envisioned, that they just mandated, and if it's mandated by the courts --
And I want to thank Mr. Dubow 'cause he understands what we're trying to go through, and he's been very helpful to us.
Thank you. Any other questions from members of the committee? (No further questions.)
Councilman 9 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 Ortiz, I believe you're here.
As long as he treats some of the people correct, it's no problem with the money. (Laughter.)
Okay. Under this same bill, why was there an increase in security costs, Mr. Dubow, for the Sheriff's Office? And what security measures were implemented?
I'm going to ask Paris Frazier from the Sheriff's Office to come up and talk about that. (Witness comes forward.)
Good morning. My name is Paris Frazier in the Sheriff's Office as the budget officer. During the year, we had a variety of security measures that we implemented or had to perform. One major one has been providing added security to City Hall and around the Council sessions. Also, we took on added responsibility 10 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 this year to man the Traffic Court. And recently, Traffic Court went on to further expand their hours to weekends, and so we're incurring more overtime costs in security there.
Well, what are the costs associated with the Saturday Traffic Court? Is this being done on a trial basis, or will this be permanent?
My understanding is just that the staff is just there manning the court while more of the traffic violations are being processed. And I do understand -- I'm not sure if -- to my understanding, it's permanent.
Thank you, Madam Chair. With reference to the Saturday Traffic Court, is that the reference?
Is that a part of the City's amnesty program in the Live Stop 11 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 Program?
You're not familiar? Sharon, I see you shaking your head. My understanding is that as a result of an agreement between the City Administration and Traffic Court, six Saturdays, actually starting two weeks ago, are going to be set aside to hear cases or do intake for individuals who are entered into the City's amnesty program as a result of the Live Stop? You're not familiar with that?
Thank you, Madam Chair. I don't believe -- I believe I do not have any questions for the one witness that's at 12 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 the table. I do have some questions about Bill 3 020343, but if there are other questions, I can wait.
Good morning, Council. Denise Garrett, Water Revenue Bureau.
Good morning, Miss Garrett. I remember some discussion back during budget hearing time specifically with MOIS about the customer information/work order management system and its implementation. What I did not understand in this transfer ordinance is, is Water Revenue paying for the system that's going to be used by Water Revenue? Or why is Water Revenue paying for consulting services for MOIS? I don't understand that.
Well, Water Revenue, as you recall, was involved in a billing system development for several years.
Right. 13 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344
And that project was consolidated, if you will, into this particular program, and what we did was --
This particular program being this customer information --
And the system is actually an integrated enterprise system that supports customer information, customer interaction, customer access through the Internet, telephone, walk-in, and any other correspondence, customer data provided for bill payments so that they could do online payment, customer billing, as well as work know and work order management.
Aren't there a number of departments involved in this?
There -- at this point, Water Revenue, who absolutely has a need for a new billing environment is the primary department involved in it. We initiated -- well, we funded the initial and now assist in specification design that was required in order to prepare a request for 14 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 proposal. That request went out, and a series of vendor presentations were made, and many of the departments across the City participated in that, and the selection was made based on the specifications that we designed as a city, as various departments that were consolidated into this RFP.
That selection was made, and the process to fund that entire analysis and development was funded by Water Revenue.
What are the other departments of the government that are participating in the customer information/work order management system?
The anticipated departments are those that are a part of the municipal services core, which would be Licenses and Inspections, Streets, possibly Capital Projects, depending on whether we get another module. And they haven't made a selection yet.
They have not made a 15 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 selection yet. And components of Water and Revenue that integrate into the Water Revenue operations.
Okay, so let me go back to the original question. Why is Water Revenue paying for consulting services for MOIS as opposed to MOIS paying for their own consulting services?
MOIS at the time didn't have the funds to support the original analysis that was necessary in order to prepare the RFP, and Water Revenue had those funds available. So what we did was, we supplied them with the dollars that were necessary for them to do that analysis in exchange for their support in helping us develop what we needed for our ongoing billing needs.
Mr. Dubow, MOIS doesn't have the funding to support its own needs or responsibilities?
No. This project -- the funding for this project will be split into various sources of funding. The Water Revenue Department is getting a benefit from it, so they're funding a pouring of it. They're not funding the portion that benefits the General Fund, and so it's logical for the Water Fund to fund this portion.
Well, are they funding a portion that is beyond what their participation is?
No. 15 (Addressing Ms. Garrett.) You can answer that question too but, no, they're not.
No, we're not. We're funding those components that are necessary for us to do business. One component is called a CRM, or customer relationship management. Obviously, you're aware, we have 500,000 customers. It also includes a collections module that we need to continue to collect funds for the Water Fund. We're also funding work-order management or work-flow management so that we can 17 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 move information and data through our various units to be more efficient in operating and hold their costs down, and we're also funding the billing component.
Okay. Just reading from the testimony -- this will be my last question -- it says, "These funds will be used for consulting services to be employed by MOIS.?
Your statement earlier was that the money had already been spent.
The funds were appropriated to MOIS out of allocated funds for other projects that we have for Fiscal Year '02, and we had a surplus in our Class 100, which is why we agreed to support the funding of this, and we want to transfer those Class 100 funds to our Class 200 so that we'll be on target with our other projects.
And what will the consulting services -- so, I mean, the point of that question was, it's really not -- the testimony would seem to indicate that you're doing something in the future. 18 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344
Well, we had to do the analysis component of it to make a decision as to what we would do in the future.
So at the time, that was not funded for MOIS for Fiscal Year '02. We had other projects that were funded for Fiscal Year '02, and we reallocated those monies to this project with the anticipation of moving funds from our surplus Class 100 that we hope to continue to keep that gain, that Class 100 reduction going forward with this project. So we moved those funds over to Class -- we want to move those funds over to Class 200.
I understand. All right, you don't have to go through the list today, but if you could forward to the Chair, I would be interested in what the consulting services that you paid for were.
Okay, thank you. 19 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 Thank you, Madam Chair.
Thank you, Madam Chair. Mr. Dubow, I have a question regarding Bill No. 020276 and the reallocation of the UDAG grant to the Commerce Department. And you said here the appeals are over and the UDAG grant has been officially approved?
I'm going to get John Gordon from Commerce to come up and talk about that one. (Witness comes forward.)
My name is John Gordon, and I'm Assistant Director of Commerce. The way the urban development action grant program works is that once the City spends 20 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 the money, then the federal government releases the funds to the Office of Housing's line of credit. So we have to have the appropriations first so that we can pay the loan back and then draw the money down.
How long does that take normally take? Have you spent the -- have you spent the $10 million?
So you have -- you can now apply for the reimbursement?
So has it been -- I'm just wondering. I guess my bottom-line question is: How long ago was it approved, was the UDAG grant -- was it settled in court?
I'd say the final approval's been about three, three and a half months.
So why is it 21 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 taking so long to get the money back? I guess I'm missing something.
Well, we need this appropriation increase to be able to make the payment to the stimulus money and, therefore, we can then draw down the UDAG money from HUD.
So this will replenish the stimulus fund so money will be available for neighborhood economic development project, etc.?
Thank you. Are there any other questions from members of the committee?
That $10 million grant, to whom was it given, to the developer of the Hyatt Regency?
I'd like to know. And payable over what period of time?
Again, I'll get you the exact figure, but normally, years. 17
Thank you. Any other questions? (No further questions.)
That completes our hearing on the Appropriation Committee. Now we 23 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 will go into our public meeting.
Madam Chair, I move that Bill No. 020276 be reported out of committee with a favorable recommendation and a further recommendation that the rules of Council be suspended so as to permit first reading at the next session.
All those in favor? Those opposed? Therefore, Bill 020276 will be reported out of this committee with a suspension of rules so as to permit first reading at the next session Council. Councilman Nutter on Bill 020343.
Thank you, Madam Chair. I move that Bill No. 020343 be reported out of this committee with a favorable recommendation and a further recommendation that the rules of Council be suspended so as to permit first reading at the next session. 24 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344
All those in favor? Those opposed? Therefore, Bill 020343 will be reported out of this committee with a favorable recommendation and with a suspension of rules as to permit first reading at the next session of Council. Councilman Nutter on Bill 020344.
Thank you, Madam Chair. I move that Bill No. 020344 be reported out of this committee with a favorable recommendation and with a further recommendation that the rules of Council be suspended so as to permit first reading at our next session.
All those in favor? Opposed? Therefore, Bill 020344 will be reported out of this committee with a favorable recommendation and a further recommendation of a suspension of rules so as to permit first reading at the next session of Council. 25 5/30/02 APPROPRIATIONS - BILLS 020276, 343, 344 That completes our hearing on Appropriations. Thank you very much. (Committee proceedings end at 9:33 a.m.) - - - CERTIFICATE I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia's meeting of the Committee on Appropriations of Thursday, May 30, 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.'s 020276, 020343, 020344 _______________________________, 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.)