COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE ON RULES3 Room 400, City Hall6 Philadelphia, Pennsylvania Wednesday, May 11, 20117 10:30 a.m. PRESENT: COUNCILMAN JAMES KENNEY, CHAIR10 COUNCILMAN FRANK DiCICCO COUNCILMAN WILLIAM K. GREENLEE11 COUNCILMAN CURTIS JONES, JR. COUNCILWOMAN DONNA REED MILLER12 COUNCILMAN FRANK RIZZO, JR. BILL 110181 - An ordinance amending Chapter 19-1200 of The Philadelphia Code, entitled15 "Parking Tax," by providing for scheduled reductions in the rate of the tax beginning in16 Fiscal Year 2012, and by making certain technical amendments, all under certain terms17 and conditions. - - -19 2
Good2 morning, ladies and gentlemen. The3 Committee on Rules has a quorum in the4 presence of Councilmembers DiCicco,5 Miller, Greenlee, Rizzo and Councilman6 Kenney chairing the hearing today.7 This is a public hearing on8 Bill No. 110181, an ordinance amending9 Chapter 19-1200 of The Philadelphia Code,10 entitled "Parking Tax," by providing for11 scheduled reductions in the rate of the12 tax beginning in Fiscal Year 2012, and by13 making certain technical amendments, all14 under certain terms and conditions.15 Mr. Dubow or anyone from the16 Administration, please.17 (Witnesses approached witness18 table.)19
Does the20 Administration have any written21 testimony?22
No. I think we23 presented testimony at the first hearing,24 and we're happy to answer any questions25 5/11/11 - RULES - BILL 1101811 that you have today.2
Okay.3 Basically the bill says for the tax4 reduction to begin in 2012. However,5 through discussions with the6 Administration and Councilmembers, 20127 seems it's going to be a difficult year8 for the City relative to the School9 District. So we want to confine10 ourselves today to having discussions11 relative to potential discussions12 starting in '13 and/or '14, and I had13 had -- I showed you some -- I don't know14 if you have the amendments yet, but I15 would like you to talk about the16 amendments.17 The one amendment would -- as I18 understood the Administration was okay19 with, was scheduling a tax reduction20 starting with the other tax reductions of21 wage and business taxes starting in '1422 at one percent a year within the Five23 Year Plan, going down to 17 in the first24 few years. And the second option that's25 4 5/11/11 - RULES - BILL 1101811 on the table today is a reduction of a2 half a percent starting in '13 and going3 down to 18.4 So could you --5
Yeah. I think6 where we were is the cuts in '12 we7 couldn't really even look at, that cuts8 starting in '14 we could at least kind of9 go back, look at, see what the impact is,10 weigh it against all the other things11 that were affecting the Plan and then12 talk to you more about whether it would13 work. And we know now that we have14 specific amendments. We could figure out15 what the cost would be and --16
Could you17 talk generally about the concept of the18 parking tax and its equity or inequity19 relative to the overall scheme of the tax20 structure in the City?21
What is23 your opinion on what's been presented24 thus far this morning?25 5 5/11/11 - RULES - BILL 1101811
I mean, our opinion2 is in general we have a tax3 structure where taxes make us4 uncompetitive. They're higher than they5 should be. What we would like to do6 through the Five Year Plan is do more7 general tax reductions rather than8 targeting specific industries. So for9 us, what we're looking at is business tax10 reductions and wage tax reductions. Now,11 that's still what we think makes the most12 sense in terms of where to put our tax13 structure dollars.14
What was15 the year that the parking tax was raised16 from 15 to 20?17
So for that19 period of time, that particular industry20 has been bearing a little more of a21 burden than, say, some other industries22 relative to the rate of their tax?23
Right. They pay24 this in addition to other taxes.25 6 5/11/11 - RULES - BILL 1101811
Correct.2 So, I mean, having a discussion about the3 specific industry reduction isn't as4 far-fetched, considering the fact that5 since 2008 they've been paying five6 percent more than any other business on7 top of what our tax structure is already.8
Right. I wasn't9 trying to say it was far-fetched. I was10 just trying to say I still think the11 other approach makes more sense.12
Okay. Are13 you here today to listen to the testimony14 or you're here -- I usually let the15 Administration come on first if there's16 something they need to say, but if not,17 we can move forward.18
Right. We were19 asked, I think, to come and be here in20 case there are questions.21
Before we4 go on, and I know this was raised in the5 last hearing, but I thought it was an6 important issue. Maybe Mr. Richardson,7 Commissioner Richardson, maybe have the8 better answer on this.9 This whole thing that was10 brought up about all these illegal lots,11 I mean, clearly there's a lot of money12 there. Has there been calculation by the13 Administration? I think the Parking14 Association has. Because obviously one15 of the things in decreasing taxes, okay,16 how do you make it up? Well, it seemed17 like there was a reasonable argument it18 could be made up by going after these19 illegal lots, and I was wondering, has20 any study been done on that, any numbers21 crunched, that kind of thing?22 COMMISSIONER RICHARDSON:23 Again, we have looked at the books that24 they provided us. Of the booklets, 2325 8 5/11/11 - RULES - BILL 1101811 were unfounded of any amounts owed or2 anything to the City. Again, as I said3 before in testimony in March, a lot of4 the lots are paying the tax. They may5 have not done the registration through6 License and Inspection, but they're7 paying the parking tax to us. So we have8 found that. Again, we continue to do9 parking audits that we've been doing10 since the Administration started back in11 2008.12
And I think really13 we've expanded that activity. We do a14 lot more than we used to and we looked --15 I mean, the suggestions that we've gotten16 from the Parking Association are very17 helpful and we found a lot of lots that18 weren't compliant and we've gone after19 them.20 COMMISSIONER RICHARDSON: We've21 gone after them, and we've known about22 them prior to this. And, again, we're23 willing to work with the gentleman from24 Miami, Florida. We haven't met with him25 9 5/11/11 - RULES - BILL 1101811 yet, who said he could help us out with2 basically looking at more audits and3 generating revenue for the City.4
Has there5 been any -- because I know when the6 Parking Association gave us the7 information, it was a lot of information.8 Has there been anything the9 Administration has been able to put10 together in writing kind of saying, like11 you said, about 23 unfounded? I'm just12 trying to -- you know where I'm going13 with this? I'm trying to see something14 in one place where it shows how you've15 responded and what the cost --16
If you19 could, yeah. If you could provide that20 through the Chair, because I'd like to21 see real figures on what we're talking22 about here and maybe potentially what we23 could get, that kind of thing.24
Yeah. We can do25 10 5/11/11 - RULES - BILL 1101811 that.2 I just want to go back to one3 of the questions Councilman Kenney asked4 before about the equity of having a5 specific tax on parking. It is something6 that a number of cities do, some at rates7 lower than ours and some at higher. So,8 I mean, it ranges. Pittsburgh is at 379 and a half. Other cities are -- Seattle10 is 12 and a half. So there's a big range11 of where they are, but there are places12 higher, places lower.13
If you18 could pass it on up, that would be19 helpful.20 Councilman DiCicco.21 COUNCILMAN DiCICCO: Thank you,22 Mr. Chairman.23 I don't know if this question24 is for the panel, but maybe someone can25 11 5/11/11 - RULES - BILL 1101811 answer this going forward. Are there any2 restrictions on surface parking lots,3 privately owned surface parking lots,4 being permitted to do advertising?5 The reason I ask that, the6 Parking Authority has lots throughout the7 City. Over the last couple of years8 they've installed advertisement or small9 billboards, for lack of a better10 description. I'm just looking for11 revenue enhancements in addition to12 possible reductions in the rates, and I13 know there are a number of surface14 parking lots out there. I'm not sure if15 they have any advertising attached to16 them or not. So when the parking lot17 folks come up, they maybe can answer that18 as well.19 I mean, if the Parking20 Authority is allowed to do it, this might21 be a way of helping the industry generate22 some revenue. I know it always raises23 the issue of advertising, which some24 people are inherently opposed to no25 12 5/11/11 - RULES - BILL 1101811 matter what we do in advertising, but2 putting that aside, I'm just putting that3 on the table as part of this discussion.4
And7 Councilman Greenlee's line of8 questioning, too. I mean, we leave a lot9 of money on the table out there and we've10 recommended a number of different11 opportunities. One of them that I raised12 at another hearing was illegal13 contractors or contractors who are not14 licensed, who set up their truck or their15 ladder on any particular house or16 commercial property in the City. And you17 do that in the suburbs and you don't have18 a contractor's license. They come out,19 take your truck and take your tools.20 So we have folks that are21 coming in, doing work without pulling22 permits, not paying taxes, in competition23 with people who do pay taxes and do pull24 their permits and do have a contractor's25 13 5/11/11 - RULES - BILL 1101811 license, and we don't -- I don't know2 what we do to enforce that. You go to3 Home Depot's parking lot in the morning4 and you can round them all up at once.5 My point is that when we're6 talking about tax reduction for specific7 industries, in effect, specific8 industries don't get taxed at all. I9 mean, that's an overall problem.10 COMMISSIONER RICHARDSON: We've11 heard your advice on that and we've been12 working with License and Inspection and13 going to the Home Depots and Lowe's and14 sitting in those various lots.15
How about16 the recommendation that the Parking17 Authority be utilized to help along18 commercial strips and in permit parking19 zones by taking license numbers of folks20 who can't produce a contractor's license21 and providing that name and address to22 you and L&I so you can go after them?23 COMMISSIONER RICHARDSON: We24 can work with the Parking Authority on25 14 5/11/11 - RULES - BILL 1101811 that.2
I've3 suggested that before. I'm still waiting4 for L&I to get back to me on that5 particular item.6 I don't mind taxing people, but7 if we're not taxing other people, it8 makes the burden on all of us that much9 more.10
Just one14 quick follow-up on kind of the same line.15 Do you have examples or listing, I should16 say, of the violations that have been17 given to some of the circumstances18 Councilman Kenney was talking about?19 COMMISSIONER RICHARDSON: We20 don't do the violations part. That's21 License and Inspection.22
I wonder23 if somehow we can get that just so we can24 see exactly in real numbers what we've25 15 5/11/11 - RULES - BILL 1101811 saved or what we could save if we were2 doing these kind of things. That's the3 kind of thing -- that way, I guess it4 helps the Administration and us when5 people are critical. We say, Well, look,6 this is the kind of things we've done7 already, you know?8 Okay. Thank you, Mr. Chair.9
Councilman10 DiCicco.11 COUNCILMAN DiCICCO: Thank you,12 Mr. Chairman.13 Just for the panel again, they14 provided us with a chart of other cities15 and what their tax rates are as it16 relates to parking. I was just curious17 if we can compare the other taxes that we18 impose on business and how they would19 reflect against these other cities that20 may have higher parking taxes, but do21 they have some of the other taxes as high22 as Philadelphia's taxes?23
In general, our24 taxes are higher. In general, our wage25 16 5/11/11 - RULES - BILL 1101811 tax rate is higher than most other places2 and our business taxes are higher.3 COUNCILMAN DiCICCO: So we're4 not really -- I mean, we may not really5 be comparing apples to apples here.6
No, but I think7 there were specific questions about8 parking taxes.9 COUNCILMAN DiCICCO: I'm not10 being critical. I'm just trying to get11 some balance here. Thanks.12 COUNCILMAN KENNEY:13 Councilwoman Miller, do you have any14 questions for these witnesses?15
And, Councilman,16 that's kind of why we want to try to17 lower the other taxes.18 COUNCILMAN DiCICCO:19 Understood.20
I21 actually raised the issue of the22 non-profit organizations that operate23 parking lots. I certainly have a few in24 my district, operate parking lots on25 17 5/11/11 - RULES - BILL 1101811 commercial strips and the ability for2 them to be exempt from this tax. And I3 understand there's a Uniformity Code that4 does not exempt them. Can you explain5 that?6 COMMISSIONER RICHARDSON: They7 can't be exempt, again, because the8 Uniformity Clause in the Commonwealth of9 Pennsylvania does not exempt them from a10 tax that is being collected as a trust11 fund on behalf of the patrons. So you12 have to go to Pennsylvania, through the13 Commonwealth, for that --14
You have15 to go to the state?16 COMMISSIONER RICHARDSON:17 Right.18
Okay.19 One other question. How many parking20 lots do we have in the City?21 Commissioner Richardson, when you were22 testifying, I couldn't hear you for a23 portion of your testimony because I don't24 know whether your mike was close enough25 18 5/11/11 - RULES - BILL 1101811 or not, and I know that you did say2 something about some of the lots that we3 assume were illegally operated, you said4 they're actually paying taxes, but5 they're just not registered as a parking6 lot, correct?7 COMMISSIONER RICHARDSON: Yes.8
So how9 many lots do we have that are registered10 as a parking lot and how many that are11 not registered?12 COMMISSIONER RICHARDSON: I'll13 get that back to the Chair. I don't have14 that number with me right now.15
Okay.16 But yearly how much do we bring in17 currently?18 COMMISSIONER RICHARDSON: We're19 bringing in about 68 million or so right20 now a year.21 COUNCILWOMAN MILLER:22 Sixty-eight million?23 COMMISSIONER RICHARDSON: About24 that, yes.25 19 5/11/11 - RULES - BILL 1101811
Thank you5 very much.6 If you folks could just kind of7 step back.8 Who for the parking industry is9 going to testify?10 (Witness approached witness11 table.)12
Can I just13 see a show of hands of anyone else in the14 room that's going to testify?15 (Audience members raising their16 hands.)17
Thank you,20 Mr. Chair. I just want to reserve time21 to comment on the non-profit parking22 lots. I have, like Councilwoman Miller,23 a few in my district and I need a further24 explanation as to why a non-profit has to25 20 5/11/11 - RULES - BILL 1101811 follow that Uniform Code and a little2 better explanation on that.3
My name is14 Robert Zuritsky. I'm President of15 Parkway Corporation and here today16 representing the 17 companies that17 comprise the Philadelphia Parking18 Association.19 I want to start off by thanking20 the Rules Committee. I'm here21 representing a lot of people from our22 Association. We represent about 2,80023 members.24 I'd like to ask everybody25 21 5/11/11 - RULES - BILL 1101811 that's involved with the parking industry2 to stand now just to also say thank you.3 (Audience members standing.)4
13 We are here to ask for tax14 fairness. At 20 percent, parking is the15 highest taxed industry in the City. 2 But in Philadelphia, we have a3 two-tiered system. One tier includes the4 legitimate licensed, insured parking5 facilities that collect and pay the 206 percent parking tax. 22 In this legislation's first23 year, the tax would be lowered one24 percentage point. That would equal three25 23 5/11/11 - RULES - BILL 1101811 and a half million dollars. 14 We have made the point before,15 but our parking tax is almost two16 percentage points higher than Manhattan's17 parking tax. 2 First of all, that is not a very friendly3 view of the consumer, many of whom are4 Philadelphia citizens. It's also5 inaccurate. When the City increased the6 parking tax from 15 to 20 percent in7 2008, we absorbed the increase and did8 not raise rates. We were in the midst of9 a recession in 2008. Business was off10 eight percent. And even now, we still11 haven't returned to pre-recession12 business levels. At the same time, we13 have not raised rates, because our14 customers are also living through the15 recession and they cannot afford for us16 to raise rates. 19 Instead, we had to reduce our20 workforce. Members of the Parking21 Association have reduced their employees'22 roles by 20 to 30 percent since the tax23 was increased. 14 Just to repeat for the record,15 55 percent of our operating expenses go16 to City taxes. 7 We certainly are aware of the8 City's delicate financial situation. We9 do not want to be the cause of weakening10 that position. That is why we honestly11 and dutifully pay every dime of tax we12 owe. The first year of this reduction is13 one percentage point. If that reduction14 were not offset by increased collections,15 you have the power to come back next year16 and discontinue the remainder of the17 annual reductions. 19 But if the enforcement against20 rogue lots goes into effect and this bill21 that is proposed is passed, the proposal22 before you won't cost the City any23 revenue. 4
You had7 said in your testimony that the initial8 increase in 2008 was not reflected in a9 rate increase. Has there been a rate10 increase since 2008?11
Not to my12 knowledge. Our rack rates have either13 held or gone down. We're in a very14 competitive business. We compete against15 each other for monthly customers,16 early-bird customers very fiercely, and17 if our rack rates stay the same for the18 last three years when they typically19 would go up with inflation, that's an20 indication that our rates are actually21 going down, because we have to compete22 for those monthly customers, which is23 very, very competitively fought after.24 And some of our early birds have come25 28 5/11/11 - RULES - BILL 1101811 down also.2 So I would say our rates have3 either been flat or been reduced over the4 last three years.5 COUNCILMAN KENNEY:6 Councilwoman Miller.7
Are those8 rates the same citywide? For example, if9 I park in a garage in the University area10 out in West Philadelphia, it's the same11 as pretty much Center City?12
No. The rates13 vary dramatically by market. Manayunk is14 one rate, University City, the stadiums,15 the airports. I mean, they're all kind16 of different markets, and the17 universities and the hospitals certainly18 have different rates than we do in Center19 City. Center City is a great place, and20 that's the reason that we're able to21 charge the rates that we can. I mean,22 there's plenty of cities in the state,23 like Allentown, where you can park all24 day for 75 cents, and it's been 75 cents25 29 5/11/11 - RULES - BILL 1101811 for the last 30 years. Some of the2 operators will tell you that here.3 So the rates vary. It's all4 driven by demand. If there's strong5 demand in one area, the rates go up, and6 if it's less, then they're coming down.7 So it depends on the market.8
We9 understand. I don't really -- personally10 I don't really park that often in parking11 lots. I'm kind of in this building all12 day.13
So I16 don't go out too much. And the same with17 the parking meters. I mean, in Center18 City they are what they are, which I19 think is expensive, because when I20 usually park, I park in my district and21 it's still a quarter for 30 minutes22 versus down here it's not a quarter. I23 don't know what it is, but it's not a24 quarter.25 30 5/11/11 - RULES - BILL 1101811 But anyway, I was just2 wondering, because people just always3 talk about the cost of parking, garage4 parking or parking lot parking, and, of5 course, now everybody is talking about6 the cost of a gallon of gas. So when you7 put them two together -- and you did8 mention that in your testimony -- it9 becomes very expensive, and lots of10 people I know are taking public11 transportation.12
We are very --13 the people in this room know more about14 handling questions about parking rates15 better than anybody, and we are sensitive16 to our rates and to our customers. I17 mean, if you charge too much, people are18 not going to park with you.19 What we're talking about here,20 since the recession started, I mentioned21 the statistic we're paying 55 percent of22 our operating expenses to the City in23 some form of the 11 taxes or fees.24 Before the recession started and the25 31 5/11/11 - RULES - BILL 1101811 parking tax went up 33 percent, the real2 estate taxes went up ten percent, water3 and sewer bills went up 100 percent, it4 was probably in the 48 to 45 percent5 range that went to the City. So the City6 has made it much more difficult for us7 to, you know, to pay all the bills that8 we have to pay, to pay good wages, to9 maintain our facilities and to keep rates10 reasonable, especially during a11 recession. So that's really why we're12 here, is to ask for a gradual relief over13 a five-year period. And not to not pay14 any tax. I mean, we're still going to be15 the highest taxed industry in the City at16 15 percent.17
Councilman20 DiCicco.21 COUNCILMAN DiCICCO: Thank you,22 Mr. Chairman.23 Good morning, Mr. Zuritsky. I24 want to go to the second page of your25 32 5/11/11 - RULES - BILL 1101811 testimony, the first paragraph where you2 said we want to have the resources to3 make environmental and high-tech4 improvements. Could you explain what you5 mean by "environmental improvements"?6
Yeah, I'm glad7 to. My company has been -- and I know8 some of the other companies have been9 doing this, too. We have been changing10 out our lighting systems to reduce the11 energy that it costs to light our12 facilities. We are actually working with13 the City, with CarShare, with the federal14 government also that is giving a grant.15 We're going to be installing electric16 cars into six of Parkway's facilities in17 June, I believe. That will be the first18 electric cars in the City.19 Another thing that my company20 has done is, we put the first fully21 automated garage in the City, which uses22 less -- you're using less gas to find a23 space because you don't have to find a24 space underneath an apartment building25 33 5/11/11 - RULES - BILL 1101811 that we built off Rittenhouse Square.2 We are also looking at a really3 interesting new technology. The Parking4 Authority has a similar thing at the5 Airport now. Maybe you've used it. When6 you pull into their garage, it kind of7 gives you a count as to how many spaces8 are available in different levels of the9 garage. The technology that we are10 looking into will actually tell you11 exactly where there are spaces available12 in the garage and it will be able to talk13 to your GPS or to your phone. So if14 you're driving down the street, it can15 tell you that there's 32 spaces and16 exactly where they are in a parking17 facility. And then when you park and you18 can't find your car, it can find your car19 for you. It is really, really cool20 stuff, and it's going to revolutionize --21 again, it's very environmentally22 friendly, because you can find a space23 faster. It's kind of a fun thing to do,24 which maybe is a little bit of an25 34 5/11/11 - RULES - BILL 1101811 attraction for the City. It's a good2 kind of feeling for the City.3 But these things cost a ton of4 money. They cost like to input one of5 these systems, it could be $300,000, and6 just like it costs -- we just spent $37 million repairing our garage at 12th and8 Walnut. It took six years just to repair9 the concrete, the elevators and the10 lighting and everything. It's very11 expensive to do things in the City. And12 we want to do those things and really13 keep the cutting edge of the technology14 in our industry, but we can't do it if15 we're cut too slim on our -- on what the16 business is. And this is our only17 business, is the parking business. So18 that's what we'd like to do.19 COUNCILMAN DiCICCO: Thank you.20 I was going to ask about the costs21 involved. You already volunteered that.22 I kind of like the GPS thing, especially23 after a night out on the town. That24 could be helpful. Then again, you25 35 5/11/11 - RULES - BILL 1101811 shouldn't be driving, right?2
They could find3 you hotel rooms, too.4 COUNCILMAN DiCICCO: The cost5 has me -- I have an interest with that,6 and especially with the environmental.7 Again, I'm looking for other ways maybe8 to skin this cat as far as if we can't9 get the reductions down to where you10 would want them, revenue enhancements11 either from advertising, if you have12 surface lots, or maybe some other types13 of things we can do, similar to what we14 did with the newsstand industry by15 providing additional space, because their16 industry was hurting, because less people17 are buying newspapers. That's not a bad18 thing.19 So, Mr. Chairman, I was just20 thinking that maybe we can look at21 working with the Revenue Department to22 see if there are some incentives, tax23 incentives, that we may be able to offer24 for those environmental enhancements that25 36 5/11/11 - RULES - BILL 1101811 you guys are going to be putting forth.2 Again, just looking at numbers, moving3 them around a little bit from some of4 that cost, some sort of a tax incentive.5 You have been a proponent of the LEEDs6 lighting and other things. Just some7 thoughts I'm putting out on the table for8 discussion.9
That would be11 great. The state does offer some12 incentives for lighting. They give you13 some things, and it would be great if the14 City were involved.15 COUNCILMAN DiCICCO: We can16 maybe offer some incentives as well.17
Please25 37 5/11/11 - RULES - BILL 1101811 identify yourself.2
Hello. I'm Harvey3 Spear. I'm President of E-Z Park and4 also a member of the Parking Association.5 I just wanted to answer some of6 the things that were said by the7 Administration and the Revenue8 Department. First of all, we gave a9 book, the Parking Association, gave a10 book of 150 illegal parking lots. I find11 it hard to believe that 23 were12 unfounded, but if there were, what13 happened to the other 125? I'd like14 answers for that. We spent a lot of time15 and money doing this exercise.16 The other thing is, as far as17 the 20 percent tax, you have to18 understand, it's not just the 20 percent19 tax. We pay real estate tax, use and20 occupancy tax, and comparing us to other21 cities that may not have these type of22 taxes, in addition there's a new storm23 water tax that came out that's going to24 escalate that's going to affect the25 38 5/11/11 - RULES - BILL 1101811 parking business.2 And the other thing I wanted to3 say, as far as the unlicensed parking4 lots, I know as a fact that the City5 collected substantial amount of money to6 date from our report, and I would like7 them to give you the numbers. I don't8 have the numbers, but I'm sure it's close9 to a million dollars already, and they10 didn't even go -- I can tell you as a11 fact that there is very little12 enforcement to date. We've been meeting.13 We don't get return phone calls. I will14 tell you there's a very big --15
I don't get16 return phone calls either, so join the17 club.18
But the valet19 operation should be paying tax just like20 we do.21
And they22 should be parking their cars in a23 licensed lot, not on the sidewalk or on24 the street by the curb.25 39 5/11/11 - RULES - BILL 1101811
Exactly. They2 don't even have to pay for a parking3 location. Wait until somebody gets a4 disaster happen -- wait until a disaster5 happens to somebody's car that's left in6 the street or something like that. Right7 now people get parking tickets, they8 don't know where they came from.9
So you10 know, we did pass legislation, I think,11 giving it to the Parking Authority?12 I think the Parking Authority13 has the authority to enforce the valet14 parking zones, and also we've increased15 the fees for the valet parking zones and16 a requirement for a receipt so we can17 track whether or not they're just taking18 the cash and not paying.19
Well, that would be20 great.21 The other thing is, I know22 there was some confusion. A valet23 company went to renew his license and he24 went to L&I. They said they don't do it25 40 5/11/11 - RULES - BILL 1101811 and the Parking Authority said they don't2 do it. So right now you may have some3 unlicensed valet parking companies and4 could just put a sign up anywhere.5 That's basically what I had to6 say. I just wish that we can get more7 enforcement. We're asking to be audited,8 and we can't accept the fact that there9 are other illegal parking facilities and10 valet facilities that are out there11 collecting parking money and not paying12 any taxes.13
Councilman14 Greenlee did ask that question to the15 Revenue Commissioner, and they're going16 to provide some data on the number of17 lots that they've found that were18 unlicensed and what actions were taken.19
Thank you25 41 5/11/11 - RULES - BILL 1101811 very much.2 (Applause.)3
There was4 one other individual over here who wanted5 to testify on this bill.6 And, Councilman Jones, I think7 this might be the issue relative to the8 non-profits.9 (Witness approached witness10 table.)11
Hi. Good12 morning. Please identify yourself for13 the record and if you could pull that14 microphone very close.15
Good morning. My16 name is Gina Snyder. I'm the Director of17 the East Falls Development Corporation.18 The East Falls Development Corporation is19 in Councilman Jones' district.20
The best district23 in the City.24 Thank you for accepting my25 42 5/11/11 - RULES - BILL 1101811 testimony this morning regarding Bill2 110181. We were here to respectfully3 request that the bill be amended to4 exempt community development corporations5 providing parking on a not-for-profit6 basis from having to pay the parking tax.7 I have -- I am not schooled in8 this uniformity issue and so I don't have9 an understanding of the significance of10 that, but I do want to give you some11 background about our situation.12 We operate a parking lot under13 the twin bridges in East Falls that's for14 the benefit of local businesses and is a15 trailhead for the Schuylkill River Trail.16 It is between Kelly Drive and Ridge17 Avenue on the Schuylkill River in the18 riverfront business district. We do not19 make money off of our lot. Instead, our20 operating expenses are about $16,000 a21 year and our income is about $9,000 or22 $10,000 a year. This is our third year23 of operating expenses for the lot.24 One of our expenses is the25 43 5/11/11 - RULES - BILL 1101811 parking tax. We pay approximately $1,0002 to $2,000 a year in parking taxes. The3 City tax obligation is obviously4 contributing to the deficit on the lot.5 Under our agreement with the6 City, which includes PennDOT7 requirements, we do not make income on8 the lot. All funds are used to go to the9 operating of the lot and for needed10 improvements. If in fact we were to11 operate the lot for profits, our lease12 terms would be modified by PennDOT. So,13 in other words, right now we're not14 permitted to make a profit under the15 current lease terms.16 We're also required to maintain17 the lot at the highest standards of18 maintenance, and, of course, we want to19 do that because of its prime location.20 It is important for the lot to look good21 to bring in more customers.22 We are driving down our23 expenses in operating in order to try to24 minimize the deficits. To give you an25 44 5/11/11 - RULES - BILL 1101811 idea of the constraints we are under, we2 charge 50 cents an hour. That's because3 of the market that Councilwoman Miller4 was talking about, the market rates. We5 can't do more than that. We really can't6 pass our costs on.7 I calculated that we are paying8 probably -- if we get 50 cents an hour,9 that means we're getting 42 cents an10 hour, and our parking lot is not full.11 We probably make about $4 an hour on our12 parking lot.13 We are -- to respond to14 Councilman DiCicco's issues about other15 revenue, we are prohibited from16 advertising on our lot or any other17 things that would generate other income.18 That is because our lot is in Fairmount19 Park. So the constraints around us are20 significant.21 We would like to continue.22 We're a non-profit. We want to continue23 to operate the lot. It's really24 important to the riverfront, to the trail25 45 5/11/11 - RULES - BILL 1101811 and to the business district. And we2 would ask, I guess, under this issue of3 uniformity that Council work with us in4 some way to reduce these expenses so that5 we're able to operate the lot for the6 benefit of the neighborhood.7
Thank you8 for your testimony. I honestly don't9 believe we'll be able to amend this bill.10 We may have to get some guidance from11 Harrisburg and do another piece of12 legislation in order to do that.13 Let me ask you a question about14 Fairmount Park status. It's a parking15 lot; it's not a park, right? You're a16 parking lot?17
It's a little24 complicated. Part of the lot is25 46 5/11/11 - RULES - BILL 1101811 Fairmount Park and part of it is the City2 of Philadelphia.3
But when4 you say "Fairmount Park," we get the5 vision that there's trees and grass and6 trails.7
No. There is no8 park at all. It is a 50-space parking9 lot that happens to have recreational10 zoning.11
Councilman12 DiCicco and I and a number of us lament13 all the time about this total poisoned14 atmosphere about advertising, which is to15 me insane. I mean, the Councilman has16 given many, many talks on the floor here17 about advertising in Europe and in Rome18 and in London and in Times Square. I19 mean, we have this fear somehow of20 advertising, where it's a legitimate way21 to raise money and you can do it in a22 tasteful way. I mean, we have an Art23 Commission. We could do something that's24 tasteful and that's valuable and that25 47 5/11/11 - RULES - BILL 1101811 generates revenue, but we can't even talk2 about it.3 We don't have public toilets on4 our streets, which were beautifully5 designed, over this continuing stupidity6 of arguing over advertising that would7 pay for the maintenance and the care of8 toilets. I mean, it's just --9
We would certainly10 be open to discussion of very tasteful11 advertising in our lot. Obviously we12 don't want to put a billboard on Kelly13 Drive over the river, but there is other14 opportunities. We have a pay machine15 where there could be advertising.16
I just want19 to add to the testimony to say that this20 lot is pretty unique. It serves the21 business corridor in respect to the high22 number of joggers, bikers, recreational23 users that actually use the Drive, and24 what it helps to do is alleviate the25 48 5/11/11 - RULES - BILL 1101811 parking for the business corridor. So2 people don't park on the main drag. They3 park under this particular area.4 The second benefit of this5 community parking lot is that if it was6 not lit, if it was not covered, if it was7 not maintained, it would be not only an8 eyesore but a potential dark area for9 crime. So it serves as a public service10 to the community more than a revenue11 generator to the commercial corporation.12 So we need to look at this to13 see if they can be made exempt. And the14 overall taxation of the whole industry is15 important to me as well as a co-sponsor16 of this bill.17
Just make18 it an illegal unlicensed lot and it won't19 get taxed at all.20
Councilman23 DiCicco.24 COUNCILMAN DiCICCO: Yeah.25 49 5/11/11 - RULES - BILL 1101811 Thank you.2 Ma'am, you mentioned that half3 of it is City owned and the other half is4 under the Fairmount Park?5
Roughly.6 COUNCILMAN DiCICCO: To the7 great Councilman from the Fourth8 District, you may want to look at making9 it one uniform City lot, because I10 suspect that the Fairmount Park would11 rather not have it anyway since they're12 not using it, and that may open up the13 opportunity for some advertising/revenue14 enhancements.15
Any other16 questions for this witness?17 (No response.)18
Seeing19 none, thank you.20 Anyone else to testify on this21 bill?22
Thank you very23 much.24 (No response.)25 50 5/11/11 - RULES - BILL 1101811
Just so the2 record is clear, regarding discussions3 with the Administration over a tax4 reduction starting in '12 and also with5 many of my colleagues considering, as I6 said earlier, the School District's dire7 financial condition, there was not an8 appetite for a reduction in '12. What9 I'm going to offer today are two10 amendments. One would start a half a11 percent reduction in '13, and that will12 be option one. And the other option two13 would be starting a full one percent14 reduction in '14.15 Now, we intend hopefully to16 approve these amendments to get the bill17 out of Committee without a recommendation18 and without a rules suspension. But so19 the record is clear, if this bill passes20 at all, one of these two options must be21 amended out. We can't pass a bill with22 both options in there.23 So to keep the discussion alive24 during the course of the final25 51 5/11/11 - RULES - BILL 1101811 discussions on our overall tax and2 overall budget and Five Year Plan, we3 felt that these were the most doable4 options at this point, and we'll continue5 with the bill on the Calendar proceeding6 to have a discussion about it.7 So I wanted to close our public8 hearing, open a public meeting and9 recognize Councilman Greenlee for a10 motion to approve the amendments as have11 been distributed.12
Thank13 you, Mr. Chairman. I move the approval14 of the amendments to Bill No. 110181.15 (Duly seconded.)16
There are21 none opposed. The bill will be amended22 accordingly.23 The Chair recognizes24 Councilmember Greenlee on the amended25 52 5/11/11 - RULES - BILL 1101811 bill without a rules suspension or a2 recommendation.3
Thank4 you, Mr. Chairman. I move that Bill No.5 110181, as amended, be reported out of6 this Committee with no recommendation.7 (Duly seconded.)8
There are13 none opposed. Bill No. 110181, as14 amended, will be reported out of this15 Committee, placed on our First Reading16 Calendar for next week, I believe.17 Thank you.18 (Applause.)19
That20 concludes the Rules Committee. Thank21 you.22 (Committee on Rules concluded23 at 11:10 a.m.)24 - - -25 53 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on May 11, 2011, and that7 this is a true and correct transcript of same.8 9 10 11 12 --------------------13 MICHELE L. MURPHY14 RPR-Notary Public15 16 17 18 (The foregoing certification of this19 transcript does not apply to any reproduction20 of the same by any means, unless under the21 direct control and/or supervision of the22 certifying reporter.)23 24 25