m. - - - BILL 041039 - An Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, acquire by purchase, condemnation, or other means the properties located at 314 North 19th Street, 316 North 19th Street, 1932 and 1934 Callowhill Street, 1936-1942 Callowhill Street, 1937 Carlton Street, and 1939-1945 Carlton Street in Philadelphia, Pennsylvania, under certain terms and conditions. BILL 041040 - An Ordinance authorizing the revision of lines and grades on a portion of City Plan No. 63 by striking from the City Plan and vacating Carlton Street from Twentieth Street eastwardly approximately 98'4" to a dead end and by placing on the City Plan a certain right of way for public utility purposes, all under certain terms and conditions. 2670 2 portion of such land and certain improvements to be renovated and constructed thereon, including renovations to the existing Central Library of the Free Library of Philadelphia, a library facility expanding the current Central Library and accessory and related amenities, improvements and infrastructure ("Central Library Project") and the payment of certain costs for such library facilities and further authorizing said officers to enter into a Lease-back/Lease Agreement (the "Library Leaseback") between PAID and the City providing for the sub-subleasing of said land as improved back from the City to PAID; covenanting to be bound by the terms of the aforementioned Library Ground Lease, Library Prime Lease and Library Leaseback; and requesting PAID to finance a portion of the costs of the acquisition of such land in connection with the Central Library Project, demolition, site preparation, improvements and infrastructure in connection therewith and any and all other costs incurred in connection with the Central Library Project, and the issuance of bonds by PAID to provide such financing, imposing a limitation on the aggregate amount of bonds which are to be issued by PAID to finance or refinance the project; covenanting to make appropriations in each of the City's fiscal years to provide for rental payments due under the Library Prime Lease; authorizing the Director of Finance and other officials of the City to take all actions necessary to accomplish the intent and purpose of this Ordinance and the Library Ground Lease, Library Prime Lease, Library Leaseback and a Library Lease and Development Agreement between the Free Library of Philadelphia Foundation Inc. and PAID containing the terms and conditions substantially as approved herein; and authorizing approval of all of the terms of the aforementioned Leases and other documents and amendments thereto by the Director of Finance and/or the City Solicitor. RESOLUTION 041046 - Resolution approving a Revised Five Year Financial Plan for the City of Philadelphia covering Fiscal Years 2005 through 2009. 3 PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE L. BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK DI CICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JAMES F. KENNEY COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILMAN JUAN F. RAMOS COUNCILMAN FRANK RIZZO 4 041039-041040-041041-041046, Whole, 12/8/04 - - - P R O C E E D I N G S - - -
Good afternoon, everyone. This is a public hearing of the Committee of the Whole. I would ask Mr. McPherson to please read the titles of Bills Numbers 041039, 041040 and 041041. MR. McPHERSON: Bill Number 041039, an Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, acquire by purchase, condemnation, or other means the properties located at 314 North 19th Street, 316 North 19th Street, 1932 and 1934 Callowhill Street, 1936-1942 Callowhill Street, 1937 Carlton Street, and 1939-1945 Carlton Street in Philadelphia, Pennsylvania, under certain terms and conditions. Bill Number 041040, an Ordinance 23 authorizing the revision of lines and grades on a portion of City Plan No. 63 by striking from the City Plan and vacating Carlton 5 041039-041040-041041-041046, Whole, 12/8/04 Street from Twentieth Street eastwardly approximately 98'4" to a dead end and by placing on the City Plan a certain right of way for public utility purposes, all under certain terms and conditions. Bill 041041, an Ordinance 8 authorizing the Commissioner of Public Property and the Director of Commerce, on behalf of the City of Philadelphia (the "City"), to enter into a Ground Lease Agreement (the "Library Ground Lease") with the Philadelphia Authority for Industrial Development ("PAID") providing for the leasing by the City to PAID of certain parcels of land and the improvements thereon owned or to be acquired by the City, and further authorizing said officers to enter into a Prime Lease (the "Library Prime Lease") between PAID and the City providing for the subleasing by PAID to the City of all or a portion of such land and certain improvements to be renovated and constructed thereon, including renovations to the existing Central Library of the Free Library 6 041039-041040-041041-041046, Whole, 12/8/04 of Philadelphia, a library facility expanding the current Central Library and accessory and related amenities, improvements and infrastructure ("Central Library Project") and the payment of certain costs for such library facilities and further authorizing said officers to enter into a Lease-back/Lease Agreement (the "Library Leaseback") between PAID and the City providing for the sub-subleasing of said land as improved back from the City to PAID; covenanting to be bound by the terms of the aforementioned Library Ground Lease, Library Prime Lease and Library Leaseback; and requesting PAID to finance a portion of the costs of the acquisition of such land in connection with the Central Library Project.
Thank you. Before I recognize any of our witnesses, I do have a letter that I received this morning from the City Controller regarding this issue. And I would ask Mr. McPherson to please read the letter into the record. 7 041039-041040-041041-041046, Whole, 12/8/04 MR. McPHERSON: Dear Council President Verna, I write to you today to express concerns regarding the recently introduced Ordinance to enter into a lease and service agreement with PAID for the Central library. Although I have not fully reviewed the specific project, I am deeply concerned about the administration's continued and concerted efforts to circumvent the city's Constitutional debt limit. This library lease and development agreement will cost nearly $100 million over the next 30 years. It is but one of several projects currently being discussed, such as the second round of NTI bonds and financing for a new Youth Study Center, that would add new debt or long-term obligations to the General Fund. While the individual merits of each proposal may be strong, it is imperative that the cumulative future fiscal impact be considered. At a time when City employees face 8 041039-041040-041041-041046, Whole, 12/8/04 layoffs, citizens are being threatened with service cuts, I have reservations about diverting any additional funds away from the direct service delivery. I am attaching for your review the debt threat mortgaging Philadelphia's future recently released by my office. The analysis paints a disturbing picture of the increasing ratio of debt and other long-term obligations to the General Fund. Rarely is there any public debate surrounding the affordability of new borrowing, unlike the scrutiny that tax reductions and new spending initiatives face. A dollar spent on debt service is a dollar that cannot be spent on other priorities, and it is important that the costs and benefits of each form of spending be analyzed. We have a responsibility to future generations of Philadelphians to ensure that their tax dollars are sufficient to ensure that public safety and other core services 9 041039-041040-041041-041046, Whole, 12/8/04 needs can be met. As Budget Director Diane Reed wrote in the most recent quarterly City Manager's report, City managers, municipal union leaders, local elected officials, members of the media and the populace at large should be skeptical of proposals to make recurring multi-year spending commitments. I hope that the enclosed report is useful to you, as you evaluate the Library Lease and Development Agreement and other proposals. If you have any questions about this issue, please feel free to contact me.
Thank you. Councilman Nutter, your light is on. Did you want to be recognized?
Yes, Madam President. I read the letter, and I listened to Mr. McPherson. What I'm trying to determine is, was there any contact, other than the letter, between yourself and the City Controller, about the comments of the letter? 10 041039-041040-041041-041046, Whole, 12/8/04
We did try to call him this morning. We were told that he was at a graduation, I think, for what, the correctional officers. I think they had two classes. I was informed by his office that he would be there practically all day.
Well, I guess what I'm trying to understand is, what is the meaning or bottom line of this particular letter, as it relates to the proposal regarding the library? Is the Controller for this or against this?
We don't know. We did not solicit the letter. We received it at approximately 9:10 this morning.
Thank you, Madam President. 11 041039-041040-041041-041046, Whole, 12/8/04 I believe in the second sentence of the Controller's letter he actually states he has not reviewed the project, but wanted to make some very generalized points about debt limit in general. I'm not sure whether he wants to invest or not invest, and not sure what investments we should or should not be making. And I'm pretty clear that he's not saying that we should not be investing in the future at all. He's just raising some general issues, without having reviewed the project at all.
No; and I appreciate that, Councilman. I think that when you look at a letter like this that comes in on the day of this kind of hearing that makes specific reference to a Bill in front of us, it might be helpful, given the Controller's Charter mandated role, if we can clarity as to what 12 041039-041040-041041-041046, Whole, 12/8/04 the position was and what the advice is to this City Council. Is it possible, Madam Chair, to determine the Controller's availability at this point?
Certainly. We will be happy to make a phone call.
Thank you. Okay. Our first witness will be... Oh. I want to make an announcement that we don't have the box, so I will not know who wants to be recognized. So, if you have your light on, I'll do my best to try to see if I can recognize you. Councilman Cohen.
I think the City Controller's history in these matters is pretty clear. He apparently always believes it's his job to give us information but not to make the decision or participate in making the decision which he think is our responsibility and not his. But he wants to make sure that in making our decision, we 13 041039-041040-041041-041046, Whole, 12/8/04 considers factors that he believes are important. So I think you are not going to have any success in getting the City Controller to take a position on whether at this time the loan makes sense or not because he doesn't see that as part of his problem. He sees that as part of our problem. But what he wants to do is make sure that we begin worrying about this overall event that we have now and have into the future. But let's test him and find out. Thank you, Madam President.
Elliot Shelkrot. If I may, President Verna, I would like to ask Peter Benaliel, Chair of our foundation board and Jeremiah White, the past president of the Friends of the Free Library, to join me.
Madam President, I am Elliot Shelkrot, the present Director of the Free Library. 14 041039-041040-041041-041046, Whole, 12/8/04 And I want to say how happy I am that you have taken the time and other Council members to hear about this exciting project. It was on June 2, 1927, that our Central Library building first opened. Today, 77 years later, this Beaux Arts Building on the Ben Franklin Parkway, with its elegant facade is no longer -- and interior is no longer able to meet the needs of the community and the region. The building simply can't meet the information and educational enrichment needs of the people of Philadelphia. When the Central Library -- Let me give you some examples. When the Central Library first opened, it housed a million, two hundred thousand books. It now holds more than seven million items, in formats that were never even conceived of before, CD's, books on tape. They just didn't exist. Now... Oh, I should say also in 1927 the library boasted convenient access to materials and plenty of space for reading. 15 041039-041040-041041-041046, Whole, 12/8/04 Now the books and other materials are crowding out the people. In some areas books are on top of the stacks; in some places they're on the floor. And space for library users is being reduced and reduced. Story hours in our children's department in the basement -- that's where the children's department is currently located -- can have as many as 70 children routinely squeezed into a space for 30. Audiences -- Adult audiences fare no 13 better, where the demand for our programs and the many authors who are coming to Philadelphia to speak at the library frequently exceeds the seating capacity. A. compliant. Space and building constraints mean that library users must climb flights of stairs just to get to the resources and the collections of the library. And the building can't begin to meet the demand for electronic information. I mean, and that is critical to today's 16 041039-041040-041041-041046, Whole, 12/8/04 information based economy. The wires for the 80 computers that we have can't be concealed. They dangle from various places, from the eaves, and make an eyesore out of what was once a wonderful building. And we do have 80 computers, but we do believe we have 1,000 requests a day to use those computers. This overcrowding means that the public computers must be located in hallways. And at peak times we do what no 14 library wants to do, and no librarian, is we send people away. You know, they can be students, they can be youngsters, or they can be adults. The plan that we are talking about today is as follows -- and it's not unlike, I wanted to mention, the issue that we faced eight years ago with our branches. You may recall that in April of '95, we launched a successful campaign entitled Changing Lives, and the Library Foundation raised over $40 million in private money. 17 041039-041040-041041-041046, Whole, 12/8/04 Because of your support and Council's support, we were able to use City Council -- City Capital funds to renovate and provide cutting edge technology in 53 branch and regional libraries across this City. Four years ago we began to study the needs of the Central Library and the needs of the people who use that library. We developed an exciting building program that is both bold and embracing the future, in an attempt to preserve the past. A process to select the best possible architect for the central library began a year-and-a-half ago. It was led by Gary Hack, Dean of the Graduate School of Design at the University of Pennsylvania. The selection committee included library board members, community leaders, including design professional Noel Mayo and Maxine Griffith, who, of course is head of our Planning Commission. Submissions were received from around the world, causing Dean Hack to say, "The world's greatest architects are applying 18 041039-041040-041041-041046, Whole, 12/8/04 for this commission.
" A public forum was held with the four architects -- with the four finalists, I should say, and public comment was also solicited via the internet. The clear choice... The clear choice was Moshe Safdie, an internationally renowned architect, with major buildings around the world, including the design of two major urban libraries in Vancouver and the other in Salt Lake City. And the proposed renovation and expansion will transform our library into a model urban library for the future. It calls for the restoration of the magnificent existing building, and the seamless addition of 160,000 square feet of innovative space, to relieve the desperately cramped and inadequate conditions. Specifically, the project will dramatically expand the space for people, collections and technology. It will double our children's 19 041039-041040-041041-041046, Whole, 12/8/04 department and bring it up out of the basement. It will bring our hidden collections out to the public, such as the automobile and the theater collections, which are world class collections that many people don't even know we have because they can't get to them. It will provide 300 public access computers and two internet browsing areas. We will create a new teen center in this space just for the teenagers. It will be soundproof, and it will allow for food, so that the youngsters, who seem at times to be addicted to food and loud music, can have that, as well as, of course, access to the quieter parts of the library when they need quiet study. We will help to build a strong workforce with an improved workplace center which is now up on a balcony, where people don't even know it's there. And this is for job searches and resume writing and training activities. We will develop a world class 20 041039-041040-041041-041046, Whole, 12/8/04 architectural structure, the first to be completed on the Ben Franklin Parkway. And most importantly, we will make available to Philadelphians once again a light-infused, exciting space in which to read, to learn, and to grow. Now, many people have asked me: All right. This is good. Who could be against the library and the expansion? But they're saying, why now? Why do we have to do this now? I want to remind you that the Central Library is the last of our libraries to be renovated, and one of the few major urban libraries in this country which has not undergone renovation and reconstruction. As a matter of fact, in almost every other city it was the central library that came first. In Philadelphia, we did the branches first. We are committed to our neighborhoods; we are committed to our branches. But the Central Library is the core. We need to renovate and expand it, and 21 041039-041040-041041-041046, Whole, 12/8/04 we need to do it now. This is an investment in the children, the families, and the work force of Philadelphia. We know, of course we know -- do I know -- that there are issues with the Operating Budget, and the City is facing some very serious issues. But we also know that we must build for the future. We must invest in improvements for the citizens of Philadelphia in the areas of education and culture and enrichment. The entire project, it's important to know, has been designed to have a minimal impact on the Operating Budget, in spite of the dramatic increase in space. Self check-out stations, using the new RFID technology, will be used. It's now being tested at the 40th and Walnut branch, which just opened two months ago. And it will soon be used in the brand new Widener Library which will be opened at 28th and Lehigh. This will enable 22 041039-041040-041041-041046, Whole, 12/8/04 us to release many staff to assist the customers seeking books, computer help and information. An open floor plan will allow for fewer service points, along with the combining of some of our departments, to require a minimal increase in any supervisory staff.
And except for some guards and some extra maintenance people, our goal is to operate this expanded library with the same public service staff we had when the plan was put together a couple years ago.
I'm sorry, Madam President. I apologize, and I apologize to Mr. Shelkrot. I just wanted to say something before he finishes. I don't think there's anybody in the room that doesn't want to see this happen. I don't think there's anyone in the room who doesn't recognize that this was a legitimate contest and project that we 23 041039-041040-041041-041046, Whole, 12/8/04 selected the best architect. We have the greatest need. It could be a tourist attraction for the City on the Parkway as the New York City Library is. I don't think there's anyone in this room that doubts any of what Mr. Shelkrot's saying and respect the committee and the staff for all the work they've done. The question that we're facing is, how do we pay for -- how do we come up with $30 million? And what the Controller's letter has raised, and what other people within Council and staff have raised is, you know, are we doing the best we can to have the taxpayer pay as little as possible for this money. And for example, as we know, there's money available right now over at PICA. There's about $30 million in interest dollars that are over there that have not been used, that the administration has not requested be used for anything. It's just sitting there collecting dust, as some of the books in the 24 041039-041040-041041-041046, Whole, 12/8/04 library are, that we could use, without putting ourselves in a more precarious situation going forward with our debt. There's $24, $25 million over in Act 71 money, parked in the Capital Program right now. Why are we, you know, talking about using... We all agree it needs to be done. We all agree it would be a wonderful thing for the City and for the Parkway and for everyone. Why aren't we just trying to figure out other innovative ways --
-- that's something that Mr. Shelkrot can answer.
No, no. I know 25 041039-041040-041041-041046, Whole, 12/8/04 he can't. And that's why --
I think the Finance Director should be up here to the table.
And I don't mean to -- And again, I apologize. I don't want to interrupt Elliot. I think it's important that we -- But I think we've heard all this. And we all agree. And as you can see -- and thank you for bringing the model -- it's proof positive that you're right. The question now we have that you can't answer is, how do we pay for it without putting the citizens of Philadelphia into further debt going into the future? I mean, when we're all gone from here --
I believe it is correct. Of course, Council President's correct, that this is something that the Finance Director and the City's Finance and Budget staff can respond to. The one thing I need to make clear, if you will, is that we have to do this, and 041039-041040-041041-041046, Whole, 12/8/04 we have to do it soon, because the planning will come to a screeching halt. We've reached a point the Library Foundation has invested almost $4 million. And this is the City's library. Every City in the country --
And I feel like I'm back in the stadium debate again, on a much smaller scale because it's not as much money. Can't we find the most cost-effective way of doing what needs to be done without putting ourselves in additional debt, that at some point in time could wind up you or your successor having to make a decision to close a branch or to scale down because we don't have enough -- because we're paying debt service out 30 years into the future that we don't even have to pay because there's two pots of money parked right now, one at PICA and one in the Capital Budget 27 041039-041040-041041-041046, Whole, 12/8/04 that we could use, without accumulating additional debt. And again, you can't answer that question; but I just want to say -- I mean -- and again, I apologize for interrupting, but we all agree this has been a tremendous project. It's a beautiful opportunity. It's a wonderful thing for everybody. It's just that I don't know why we have to put ourselves in additional debt in order to do it, when we have money that's parked doing nothing. And I guess that's the Finance Director's question.
Thank you, Madam President. Let me say I do concur with a lot of what Councilman Kenney said. And I agree with the spirit of what he said, and also believe that we probably need the Finance Director to address those issues, that the 28 041039-041040-041041-041046, Whole, 12/8/04 library has done an excellent job presenting its project, in terms of moving this project along. And the issue as raised last term when this project was killed -- and it shouldn't have been -- was the issue of financing. At that point people said, the financing was too tricky and let's try to simplify it. Now it's been simplified, and people are saying, let's now make it creative. And once again the project stands to be killed. And in response to which the Controller wrote his letter, I'll just say that the Controller, when he finds an investment that he likes is a fiscal conservative. When he finds investment he does -- I mean, when he finds an investment he does not like, he's a fiscal conservative. When he finds something he does like, he's an economic visionary. We're going to be spending these dollars one way or the other, in terms of 29 041039-041040-041041-041046, Whole, 12/8/04 operating funds to pay for things we will invest. Whether it's this project or whether it's other projects that are investments in the future, we will spend the same amount of money, in terms of debt service. It's a matter of what we choose to invest in. I think the library has made a great case that this is a project that we should invest in, in terms of the future. I think the administration has not necessarily made the case about whether this is the right financing mechanism, whether the other financing mechanism was correct, or whether there's something else we should do. So, I would call on the Finance Director to come forward, if you so please.
Madam President, I just want to make the record clear. If we need to vote on this mechanism in order to get the money the library needs, I'm committed to casting my vote in favor of it. I think it's an important project, and a project important enough to vote, even if I 30 041039-041040-041041-041046, Whole, 12/8/04 think the funding mechanism is less than appropriate or less than adequate. But I just would like, again, an answer to why we can't use existing money that's sitting somewhere doing nothing. But I don't want anyone in the audience or any of my colleagues to think that in some way I wouldn't be for this. I mean, if this is all we have at the end of the day, I'm voting for it because I think it needs to be done. I just can't understand, again, as we go back to the stadium issue, why we have to spend more taxpayer's money than we need to, in order to do an important project. And I hate to be stuck in the situation all the time -- and it seems like a common theme in projects like this -- that, you know, it's our way or the highway. And it's frustrating. But I want to make sure you understand my vote is committed to doing this, even if we have to borrow the $30 million over 30 years. Thanks. 31 041039-041040-041041-041046, Whole, 12/8/04
Thank you. The Chair recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam President. I don't know if I should just hold back and let the folks at this table finish with their testimony. But I kind of want to jump in on Councilman Kenney and Councilman Goode's comments. And I, too, Elliot... I've had the great working relationship with you. And thanks to you and lot of folks in your staff, we had the Independence Library which is the most used neighborhood library in the City of Philadelphia, outside of the Central Library. And to all the folks that are in this room who are friends of the library, the foundation folks, the volunteers, the Maddleman's, who have their best interest and everyone's best interests. And we really do appreciate that. I think I'm speaking for all the members of City Council. But as Councilman Kenney said, you 32 041039-041040-041041-041046, Whole, 12/8/04 know, it's a budget issue. It's a budget issue all the way around. As Councilman Goode pointed out, you know, we had a deal last year which we rejected. But last year we weren't being told that firefighters and police were going to be laid off. We weren't being told that fire station engine companies and ladder companies may be closing which of them are on the 12 chopping block as we speak. 13 And we weren't being told that the 14 hours of operation -- At least I don't recall 15 that we were being told the hours of operations in libraries was going to be reduced. Independence Library as we talked about earlier, no longer has Saturday hours. So, you know, although I want to look at this, and say this is a great idea and it's a wonderful project, which is it is, we have to deal with those other issues. And I don't know if we're in a position, based on what the administration 33 041039-041040-041041-041046, Whole, 12/8/04 has been telling us about all these other cuts -- How do I explain? How do any of us explain to our constituents in Kensington, my constituents in Kensington, in Northern Liberties, in South Philadelphia, that their libraries are going to have the reduction in hours and operation which some of them have already experienced; and yet, we're going to put this money into the Central Library. And please, this isn't me talking, but I'm expressing --
No; I understand. COUNCILMAN DiCICCO: -- what the concern in the community is. People look at the Central Library. And I know it is not what I'm about to say, but there are people who never used it. And they look at it as this elitist facility that is only for people in Center City. And I know you're laughing, but that -- and that's unfortunate, but there are people out there who believe that, well, I live in Kensington. What good does it do me? And why should 30 million be put into a 34 041039-041040-041041-041046, Whole, 12/8/04 facility on the Parkway where all those rich people live, and I'm sitting here in Kensington, and my hours of operation for my library have been reduced or maybe even closed, for that matter. Again, I'm not suggesting --
No; I understand. COUNCILMAN DiCICCO: -- that they are correct, but those are issues that we have to deal with on a daily basis. And as we go out into the community for other meetings, those are the questions that arise. And you may not be the right person to answer that, but it's certainly issues -- it's an issue that you have to deal with, you meaning the library, anyway. Regardless of whether I think this is the right thing or not, we have to deal with this.
Council President Verna, you know, I can address the issues of why and why now. I can also address the issues of the branches, and our commitment to 35 041039-041040-041041-041046, Whole, 12/8/04 the branches, and our commitment to get more of them open on Saturday. I can also talk about how I know people don't understand. But without the Central Library, they wouldn't have the branches. I mean, they wouldn't have it. They wouldn't have the resources. They wouldn't be getting the books and the things that are ready to go out. But I would like to know whether you would like us to continue with our testimony or would you rather have the Finance Director at the podium at this time.
Council President Verna -- COUNCILMAN DiCICCO: I would just follow up on that comment, and then I'll rest until later on, if it's all right with the Chair. I understand what you're saying. And maybe we all need to do a better job of educating people about the importance of the Central Library. 36 041039-041040-041041-041046, Whole, 12/8/04 But for me, as a District Council person, who is faced with of the 4 firehouse closures or redeployment, if you 5 will, as they refer to it, 11 fire stations 6 in my District, of the 15 city wide, are 7 faced with redeployment. 8 And that is really... The level of 9 anxiety in my District, from the southern end 10 to the northern end is at its highest it's 11 been. We've had protest rallies. We're in 12 court. 13 It is so difficult for me to 14 convince people that this is the right thing 15 to do, when they're looking at the fire station at the other end of the block or a couple blocks away and the ladder is not going to be there or the engine is not going to be there. So, I mean, that's -- And again, that's not your battle. It's not your... You know, I'm not asking you to go out there and make the case for me. I'm just laying it out there the way -- You know, this is the road map for me, as it is for many of the 37 041039-041040-041041-041046, Whole, 12/8/04 other Council people. And I'm faced with of 15, 11 of 4 15. That's a hard sell for me to say that 5 we're going to invest 30 million for an 6 extension or expansion of the library. 7 And I support it, but I'm just 8 telling you that it's difficult. 9
Thank you, Madam President. I think we are all in agreement this is a great project that we all want to support. I think the key issues that Councilman Kenney raised, rightly, were: One, can we afford it; and, two, whether this is the best financing mechanism. I think the Finance Director should address those issues head on.
I don't believe Mr. Shelkrot -- I think you can respond to Councilman DiCicco's question, if you will. 38 041039-041040-041041-041046, Whole, 12/8/04 What do we tell our constituents who are experiencing the regional libraries being closed on Saturdays, and some of the hours being curtailed?
I'd be happy to respond to that. Just in terms of nomenclature, if you will, the regional libraries -- those are the large, the three large regional libraries and the Central Library -- are open seven days a week. Under emergency situations -- I mean, right now the north -- northwest -- the Coleman Regional Library is having some major work done on it, and so we've opened another library seven days a week in that area. But I believe your real concern is the neighborhood branches.
That's where we have had some difficulty. What I can say is that we -- we are committed to every single neighborhood library. We are committed. We showed that commitment when we renovated them first. 39 041039-041040-041041-041046, Whole, 12/8/04 We did them first. And in terms of the hours of service, we are having some difficulties. We are having difficulty. We have, if I'm not mistaken, 6 libraries that are open on Saturday, 7 including, you know, all of them out of 54. 8 We have been working with the 9 Managing Director's Office. We had some 10 very, very interesting hard-nosed 11 discussions, hard-headed, whatever the right 12 term is, discussions yesterday. 13 We have... With the cooperation of 14 the Civil Service Commission and the unions, 15 and we certainly have the cooperation of the 16 City's HR Department, Human Resources 17 Department, we believe that we can get a significant number of those branches open early in 2005, open on Saturdays. We are committed to children. We are committed to the neighborhoods. And we are committed to breaking through this issue that we have right now of getting the staff in place to get those neighborhood libraries open six days a week. 40 041039-041040-041041-041046, Whole, 12/8/04
I know that you're committed. What commitment have you gotten from the administration?
The Managing Director... What can I -- The Managing Director himself praised this idea, and was... and said, this is something that we can work together; we can make this happen.
Oh, I didn't know that you were talking about part-time people. COUNCILMAN DiCICCO: You talked about that on the side. You didn't say that.
No, no. I'm sorry. I didn't -- You know... No. Part of the plan -- The idea -- The idea is to develop a cadre of people who can help us provide, who will be less expensive. Now, we have not -- You know, you'll understand, we have not talked to the Civil 41 041039-041040-041041-041046, Whole, 12/8/04 Service Commission. We have not talked to the labor unions. We -- We -- This is a concept that we just have approval on --
I don't understand what you're -- COUNCILMAN DiCICCO: Madam President --
You know, volunteers -- COUNCILMAN DiCICCO: -- Mr. Shelkrot --
-- over 1500 volunteers. There is -- You know -- COUNCILMAN DiCICCO: Point of order. 42 041039-041040-041041-041046, Whole, 12/8/04 Madam President, prior to the hearing, I was speaking to Mr. Shelkrot at the bar. And we were just talking about the closures. And he said that they have been talking or discussing the possibility of doing part-time employees that may keep these libraries open on Saturdays. So, I think, Elliot, what you need to do is explain a little bit more. You're kind of starting at the back end of it, as opposed to the front end, because the Council President, as I'm sure the rest of the folks here, don't know anything about --
Not a part of your conversation. COUNCILMAN DiCICCO: -- our conversation.
Okay. You know, I will tell you that I... You know, in a public hearing, to talk about some very delicate discussions that we need to have with the labor unions and through the Civil Service Commission is very difficult to do. 43 041039-041040-041041-041046, Whole, 12/8/04 But we are developing a plan that we believe will allow us to work with the current staffing level that we have, as well as the anticipated layoffs that all departments are facing, and find a way, with a different model, a different concept of branch library service, that will allow us to meet the needs of the people in our communities, with a special focus on the children and a special focus on education. Madam President, because we are in the early stages of this, and we have not had an opportunity to discuss it with some of the principals involved --
I understand. You don't have to say anything more. Thank you. May I just say I told you, I think the day of the briefing, I think this project is absolutely beautiful. And I think it's something that we certainly would like to see happen. I think Philadelphians deserve it. The Chair recognizes Councilwoman Brown. 44 041039-041040-041041-041046, Whole, 12/8/04
Thank you, Madam President. I would offer an amendment to Councilman Goode's request. Prior to going to hearing from our Finance Director, if there's any other additional information the remaining two gentlemen at the table have to offer prior to moving into the whole finance discussion. That would be useful for me.
Yes. Mr. Shelkrot, the addition, while everyone loves it and will support it under some financing arrangement, I think, what will the added operating expense be? Will it double.
I'm sorry. Will it double? Will it increase by 21 percent? What's the estimate? 22
The estimate in the 23 operating expense, which primarily is the 24 staff -- I mean, we have plenty of books... 25
...and other materials. The increase will be -- What we are committed to do, and we did when we began this designing process two years ago, we have committed that we will require no additional staff than we had at that time.
We do know, however, that plan as we might, additional floor space requires additional cleaning. We believe that we will need four to six additional maintenance people. We will need several different -- several additional security people. But this space is designed to combine departments. It's designed to have open spaces, where we can see more broadly. It's designed, as I said earlier, to use new technology, RFID technology that is currently being used at the Walnut West Branch, and will be also used at the Widener Branch on Lehigh Avenue, which will allow staff to do other things rather than standing 46 041039-041040-041041-041046, Whole, 12/8/04 there checking books in and out. I will tell you that if the use of this library doubles or triples, we will have to revisit the staffing issues. But you know, I know it's a challenge, but it is a good challenge to have.
I agree. I would plan on tripling rather than doubling, but I think everybody's going to find this very exciting and going to want to be part of it. But what's it cost you right now to run the Central Library a year?
Oh. You know, I don't have the figure exactly in mind. I can tell you that we have... I can give you the number of staff. I don't have the dollar figure of their salaries, et cetera, et cetera.
Okay. But 47 041039-041040-041041-041046, Whole, 12/8/04 assuming that you need 50 percent more staff because you get double the attendance, and you have to add the cleaning and security that you mention, what kind of operating increase will we be talking about, in ballpark terms?
Excuse me one second. I'm getting some advice from our Budget Director.
Thank you. Let me mention... I mean I have the figures here of what the entire library system costs.
I also... But I can get that information for you. I don't have it here broken out in exactly that way. But I also want to mention that it's important for Council to know that the debt 48 041039-041040-041041-041046, Whole, 12/8/04 service for this is in the Five-year Plan, I have just been reassured by the Budget Director. So, it is not taking on more than -- That's what I am being told.
So then, just forgetting for the moment, because you're going to get the information, but security and cleaning addition, those number of positions with benefits, about a quarter million dollars? Would that be a fair number?
You know... You know, I'm sorry. I need to -- Just let me check on the number. Then I can quickly do the multiplication.
When this plan -- The plan was just put together a couple years ago. There were 168 people on the central public service's staff.
Now, I will -- You know, we -- the maintenance staff that we have in the budget documents is broken out across the system, as is the security staff. So, I am not in that number telling you that that is the number that includes the maintenance people.
Okay. But I mean, just with... If the people made $25,000 a year, with benefits it would be roughly 40,000. If there's ten of them total, you're talking about $400,000. I'm trying to make these friendly questions.
You've been getting cut. I'm trying to make sure that people are looking forward to having, you know, you increase your operating budget because of this hopefully home run that's going to be hit that's going to require all these extra employees to service your needs. And I think the sooner we kind of get that into the 50 041039-041040-041041-041046, Whole, 12/8/04 system, the better off we are. I want to follow up. I know the City's budget crisis has hit -- or budget difficulties have hit you, but I still am not sure, as many people know, how the state -- I'm not sure they've had the same budget difficulties -- have hit you. And can you tell me: Did you get any state cut in your state fundings? I'm talking about operating monies. In 2003? Not this past budget. The one before.
The one before. Yes, indeed, we did. Although it wasn't a 50 percent cut, as had been projected, we were able, along with libraries across the state, to increase that. But it was roughly a 35 percent cut, which for Philadelphia, brought it would down from about $11 million to, if my math is right, about $7 million.
Now, in '04 you were working on now a $7 million basis instead of an $11 million basis. These are extraordinary numbers.
I know. I know. And we did receive an increase this last year, but we are not...
Okay. They're staggering numbers for me, that the Commonwealth is... Community College is getting the same thing happen to them, but it's a little different. They have at least a reserve, even though they earned it and built it up, but it... I mean, maybe somebody should send the Senate some notes, you know, of information because they're saying the Governor's been doing everything 52 041039-041040-041041-041046, Whole, 12/8/04 for Philadelphia. I don't necessarily think these numbers substantiate that claim or charge. I hope that can be put back in its historical area. So they were the two main things I wanted to mention. One, I think the state really has to come back in as a player; and, two, we've got to get a reading on -- so we're not surprised the year you open or the next year when we really see the massive numbers of users, because I think this is going to be the place where schools want --
-- to send children. I was in the Salt Lake Library Central. It's phenomenal. I think ours is going to top that. I mean, I don't think... They didn't have what we have to work with as a basis. They also don't have our population base.
So, I hope we can work out the finances sooner than later 53 041039-041040-041041-041046, Whole, 12/8/04 and agree. But I think everyone agrees on the spectacular opportunities here.
If you can get that to us. And the Operating Budget is coming up. I'd just kind of like to keep this a little focused more on the Central Library's budget.
But also, you know, our commitment to the branches is firm.
And I know somebody else pays -- I think somebody else pays them, but they still have to be paid.
Point of 54 041039-041040-041041-041046, Whole, 12/8/04 information.
In what you're going to work on, have you developed yet what it is going to cost to operate that? Even like Councilman O'Neill just said, your electric bill is paid by, I believe, the Department of Public Property; am I right?
That's correct. If Public Property -- I'm sure they can -- can break out what the Central Library currently costs, we can then, using industry standards, we will then give you the figures. And so, it's just -- We can do that.
Beyond that, but I think you really need to have a plan on what this building is going to cost you to operate, and can you realistically keep it secure, keep it clean with the staff that you have. It seems to me you're just telling us that, but there's nothing that -- there's been no study to substantiate what exactly 55 041039-041040-041041-041046, Whole, 12/8/04 it's going to take to run that building.
I -- I can -- You know, we can substantiate that. We can get that information to you. The only thing I can tell you is that if use dramatically increases...
The issue of staffing needs to be identified. And we can go to -- We can do all the studies we want, but the only thing we could do, then, would be to do a -- some sort of a straight line projection and take and make an educated guess.
Mr. Shelkrot, I'm not talking about tripled, doubled use. I'm talking about that building -- The last thing I think as a Council member, if I'm here when it opens, that you want to see doors that are locked because you can't have security people, and you're going to have one entrance where people can go in and go out. I think you realistically need to have the architects and a planner look at 56 041039-041040-041041-041046, Whole, 12/8/04 that building and say what you need to operate it, with no additional proof.
Oh, we can -- We have that. That is not -- That is not difficult. We can get that for you, you know, tomorrow morning.
Councilman O'Neill, were you finished with your line of questioning?
All right. Fine. The Chair recognizes Councilman Cohen.
Thank you, Madam President. What efforts have been made to get state aid?
We have been working 57 041039-041040-041041-041046, Whole, 12/8/04 very closely with Senator Fumo. It was John Perzel, Representative Perzel who introduced into the Governor's Redevelopment Assistance Program the authorization for $25 million. It's on the record. But we know that with Senator Fumo's help, with Representative Perzel's help, with Representative Evans help and others, the next step is for the Governor to make the decision to release that money.
Is there any indication as to the nature of the Governor's response? The request. So far you have no 16 state funding?
At this point we have no state funding. But that is not -- But I can tell you that, you know, Representative Evans was very positive, in working with us and in being able to make this happen. I can also tell you that Senator Fumo has been quite interested. This will not happen in one single allocation, but it will -- but their sense is that, working 58 041039-041040-041041-041046, Whole, 12/8/04 together, we can make this happen over three to five years, which is exactly what we need for the renovation. But we need -- This being the City's library -- You know, every other City, as I said before, does it themselves. We are doing it differently. But the City money... No one will talk to us seriously because they haven't seen nickel one of the City's money for the City's Central Library.
Well, I find that kind of hard to believe, but I don't know what you're basing that. But it seems to me that just a few days after its announcement today, the Council voted, I think, approval of 30 million for Comcast. When you put that -- How do the people in Philadelphia take that this rich organization Comcast gets 30 million without a problem, apparently, and --
Point of information. 59 041039-041040-041041-041046, Whole, 12/8/04
-- the kids -- And it seems to me that real economic development will profit by the library.
Excuse me. Councilman Goode has a point of information.
Thank you, Madam President. Councilman Cohen, I just wanted to let you know that the legislature actually did approve the money for the library. The Governor has not made a final decision, but the state legislature did approve the money for the library.
Well, that's good to hear, but I don't dispute Senator Fumo --
-- how much did they approve? 60 041039-041040-041041-041046, Whole, 12/8/04
-- or any other legislator's approval. I'm talking about the Governor.
The Governor is the most important man in making these decisions.
So the state legislature has done its job, in terms of approving $25 million. We have not done our job yet as a legislative body.
Well, as I see it, the Governor has not done his job. The Governor, coming from Philadelphia, ought to understand the economic importance of this, let alone the cultural importance, and the signal it tells Philadelphians.
We can't control what the Governor does, but we can control what we do.
Yes, we can control the Governor. We can control, if we make enough noise in Philadelphia. The 61 041039-041040-041041-041046, Whole, 12/8/04 Governor comes from Philadelphia.
I don't understand how he dares on one day to award $30 million to a company rich enough to offer $66 billion to Disneyland, and yet doesn't give us a quick answer, a good answer to meet our needs on economic development involving the kids in Philadelphia.
Councilman Cohen, you know, I don't want it to be misinterpreted. The Governor has not been asked, because we know -- we have been told by the staff, we have been told by the staff of foundations, we have been told by individuals that in their mind it is not a real project until the City dollars are there. And so, I don't want to... I don't want anybody to believe that the state or anybody else isn't doing their job because that's just not the case. As the City library, the City has to be there first.
Well, you know, 62 041039-041040-041041-041046, Whole, 12/8/04 we're always given that line, and I believe it's just a line, like the young man who is meeting a young woman for the first time. We are always told that the City has to move first. And I don't think it's true at all. I think education has been a principal problem for the state, economic development of the state. The Governor talks everywhere about it. Listen to the Pennsylvania cable stations. You'll see the Governor going all over the state talking about how important education and economic growth is. Yet here it seems to me the Governor ought to be out in front finding us more money in the private sector. When the Governor was Mayor of Philadelphia he specialized in obtaining money from the private sector for things, as well as providing government money.
You know, for the City library, the City on the branch projects, during Rendell's administration, and then following up with the first part of 63 041039-041040-041041-041046, Whole, 12/8/04 the Street administration, the City capital money was there first. It was on that basis that we could then raise over $40 million from the private sector.
Yeah. The reason you go -- you go to whoever is more answerable to you, and from whom you can get success.
-- doing fund raising, isn't it the prime method to go to the people who are going to contribute easily? You don't save the people who are going to contribute easily to the end. You use them at the beginning. And we're always told -- Whatever the project is, we're all told, Philadelphia has to give a stamp of approval. And we're told that yearly, and you're advised to make 64 041039-041040-041041-041046, Whole, 12/8/04 that request and make that statement, thinking it will help you. Sometimes maybe it does. But I think you ought to understand that the Governor has a real obligation here. And in my judgment he's not meeting it. A week ago Saturday I got a telephone call at 3 o'clock in the afternoon from the City Hall operator, telling me Governor Rendell wanted to speak with me. It kind of shocked me because during his eight years as Mayor I think that happened only once. So I got on the phone. And of course it was not for me. It was the other David Cohen, David L. (Laughter.)
Because I can say if it was me, you'd have the money for the library. But instead, David L. got the money for Comcast.
Well, I can share with you, Councilman Cohen, that I, too, when he was Mayor, got a phone call on a weekend 65 041039-041040-041041-041046, Whole, 12/8/04 when I was on vacation. And I needed a book. At any rate...
It's either two Dave Cohens, one known to one group and one known to the other. When he asked the telephone operator to get David Cohen, the one she knew was apparently me. But when Comcast... They would know who else he was getting. But I think seriously we've got to increase the efforts of the state. I appreciate the efforts our state legislators make. I think Fumo and Evans and all the Democrats and most of the Republicans work seriously and hard in the interest of Philadelphia. But the main guy that we ought to go after hard and ought to send delegations to see, in order to send letters to, is the Governor. He makes the decision. And don't always follow the advice you're given. I mean, sometimes act on your own, and you get better results. The library -- 66 041039-041040-041041-041046, Whole, 12/8/04
The library did it in its last effort to raise money. When they went on their own they did a great job. Library's got a wonderful history. Who could be against the library? It's a very active organization. It enriches communities, as well as the whole City, and everybody is affected by it. And like everybody else here, if we had to, I would vote for this expansion, no 13 matter what we had to do to get the money. But the money is there, and it ought to be provided by the state. And I don't know these two bundles of cash that my colleague, Brother Kenney is talking about. But if they exist, he's absolutely right; that money ought to be made available, rather than running up our debt service. And then the City controller will rest more easily.
Thank you, 67 041039-041040-041041-041046, Whole, 12/8/04 Councilman.
Could the chair of our board, of our foundation, and the past president of the friends offer testimony? I'm happy to consider mine complete, to help move things along.
Thank you. Thank you, Councilman. Mr. Shelkrot, who will the developer of the project be and how will the MBE/WBE opportunities be insured?
The project manager for this project is the firm of Becker & Frondorf. They have done many projects in Philadelphia, both commercial, such as the Lowe's Hotel total redevelopment. And they have done nonprofit work with the Franklin Institute and the Pennsylvania Academy of Fine Arts. They are our managers. They are our consultants. Already at this time the project in Moshe Safdie's team, working with other Philadelphia firms and others, already has a 68 041039-041040-041041-041046, Whole, 12/8/04 percent minority participation. I believe it's a two or three percent women's participation. And similarly, with the L.F. Driscoll Company who has been hired with pre -- They are construction managers, but they've been hired for pre-construction work so that we get good estimates on what this is really going to cost when the shovels go in the ground. We have also worked with Mr. Williams in the MBEC office, and have had several conversations. And we are committed, just as we were on the branch renovations, to meet the City's goals for minority and women's participation.
Thank you. 19 Can we very, very briefly talk about 20 the parking? I think you should touch on 21 that, if you will. I know you indicated that it would be underground parking. Is that cost above what we're talking about today?
Yes, that cost is 69 041039-041040-041041-041046, Whole, 12/8/04 above what we're talking about today.
Well, I can't answer that because I don't -- I don't know. The City Planning Commission is looking at parking issues throughout the Center City area, and they will be getting special attention to this. And their recommendation of the amount of parking that is necessary for this part of Center City is what we are waiting for before we go ahead and before anybody goes ahead, and determine how much parking and how much it will cost.
President Verna, thank you. I want to mention one other thing, that I think you're treading on dangerous 70 041039-041040-041041-041046, Whole, 12/8/04 ground, and I just suggest wide caution, and a lot of preparation. When you talk about volunteer work at reduced rates, you're getting into areas that are going to be of great concern of the labor field. And I suggest that you ought to begin thinking that through. You ought to begin talking to the unions that are involved before you run into a situation where they will say, how come whenever it's anything for service for the people, suddenly you want to cut our salaries. You'll frighten every City worker that he will become a volunteer at some time in the future. So, I'm just cautioning. In the beginning, do your homework carefully, and indicate precisely to the labor groups what you would like to talk about, and incorporate them in your planning. Because if you incorporate them in your planning, you may find the way much quicker that all can agree on, to help solve the financial problems. 71 041039-041040-041041-041046, Whole, 12/8/04
A point of information on the parking issue, Madam President.
I'm sorry, Mr. Shelkrot. Did I understand -- In response to the Chair's question with regard to the parking, what was your answer with regard to the cost of that?
My answer to the cost is that the cost of the parking depends on how many spaces are built, and the City Planning Commission is evaluating that. So that what that cost would be can be understood, and the plans will be made accordingly.