COUNCIL OF THE CITY OF PHILADELPHIA STATED MEETING Room 696, City Hall Philadelphia, Pennsylvania Thursday, November 21, 2002 10:45 a.m. PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK J. DI CICCO COUNCILMAN WILSON W. GOODE, JR. COUNCILMAN JAMES F. KENNEY COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN W. THACHER LONGSTRETH COUNCILMAN RICHARD T. MARIANO COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILMAN ANGEL L. ORTIZ COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN B. TASCO PATRICIA RAFFERTY, CHIEF CLERK VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103
I note that the hour has come and that a quorum of this Council is present. Council will please come to order or I am going to be asking that the police remove some of the people that are speaking. Council will come to order. Members will please take their seats. Everyone is welcome in our Chamber, but I am please asking for your cooperation. We must have your attention please. Thank you. To give our invocation this morning, the Chair is honored to welcome his Eminence Anthony Cardinal Bevilaqua. (Applause.)
Cardinal Bevilaqua is here today as the guest of Councilman Rizzo. I would ask all members and guests to rise for the invocation. CARDINAL BEVILAQUA: From what I hear, these prayers are most useful today. Let us put ourselves in the presence of Almighty God. Almighty and ever living God, source of every good gift, we humbly ask your blessing upon this meeting of the City Council. We know that it is you who govern and guide men and women throughout providence, we place ourselves before you asking for the gifts of wisdom and prudence for the members of this body. It is only with your help that we can truly serve you and our brothers and sisters. In this great City, our founding fathers clearly articulated their belief that your plan grants to each person the rights of life, liberty, and the pursuit of happiness. They enshrined in the heritage of our nation these inalienable rights. Pour forth upon the Members of this Council a desire to ensure that all people of our City are secure in these blessings. May they never waiver in their efforts to promote and protect all that is true and good. As we know that it is you who governs all things, we are humbled that you have made us stewards of your many gifts and servants of your children as well as custodians of your laws. Grant us the wisdom to keep always before us the true dignity of each citizen of this City rooted in the truth of the human person who is made in your image and likeness. Make us always eager to be just, protecting of rights of all; compassionate, serving the most vulnerable and needy; and wise, honoring laws and commands. With you as our guide, oh Holy Father, we are confident that our efforts will bear much fruit and truly serve the citizens of this great City. May God bless all of you today and always.
The Chair thanks his Eminence for his very inspiring invocation. Council will be at ease. (Council at ease.)
The next order of business is the approval of the Journal of the meeting of November 14, 2002. The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. I move that the Journal of the meeting of Thursday, November 14, 2002, stand approved. (Duly seconded.)
It has been moved and properly seconded that the Journal of the meeting of Thursday, November 14, 2002, stand in favor will indicate by saying aye. (Aye.)
The ayes have it. The motion carries. The Journal of the meeting of Thursday, November 14, 2002, stands approved. The next order of business is requests for leaves of absence. And the Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. There are no requests for leaves of absence on the part of the majority.
The Chair thanks the Councilwoman. The Chair recognizes Councilman O'Neill.
On behalf of the Republicans, there are no requests for leaves of absence.
The Chair thanks the gentleman. The Chair will dispense with the regular recognize the guests and visitors joining us in Chambers this morning. On behalf of all Members of City Council, I welcome you to our Council session. We appreciate your taking the time to join us as we attend to the legislative affairs of our City. We certainly invite you to come again. At this time the Chair recognizes Councilman Rizzo. Councilman Rizzo will make a presentation honoring the Crime Scene Unit of the Philadelphia Police Department on its 50th anniversary. Will Deputy Police Commissioner Charles Brennan and those accompanying him please join the Councilman at the podium?
I'd like my colleagues Councilwoman Joan Krajewski and Richard Mariano to please join me at the podium. Honoring and congratulating the Crime Scene Unit of the Philadelphia Police Department upon celebrating its 50th anniversary. Whereas, in 1952 the Philadelphia Police Department Homicide Unit was interested in forming a team of specialists to respond to crime scenes so be recovered and processed. Applicants for this new unit were chosen from the most qualified people within the ranks of the Philadelphia Police Department. These specially trained officers formed the beginning of the Mobile Crime Detection Unit; and
Whereas, although first formed under the Criminal Investigation Division, the Mobile Crime Detection Unit would be referred to by many names over the years, including Crime Detention Laboratory, Mobile Crime Lab, Crime Lab, and most recently the Crime Scene Unit; and Whereas, it has been the Crime Scene Unit's history to set the standard for professionalism and performance. In the past, other jurisdictions have looked to Philadelphia for training and guidance. The Federal Protection Agency, military personnel, DEA, ATF, and FBI are just some of the agencies that have been trained by past and present members of the Crime Scene Unit; and
Whereas, members of this elite unit have aided in the arrest and most notorious criminals over the past 50 years by performing their task with tireless dedication and commitment. Whether it is a fingerprint, footprint impression, blood stains, or hair that was uncovered, technicians have consistently found and recovered crucial evidence to implement the guilty and exonerate the innocent; now therefore
Resolved by the Council of the City of Philadelphia that it hereby honors and congratulates the Crime Scene Unit of the Philadelphia Police Department upon celebrating its 50th anniversary. Further resolved that an engrossed copy of this resolution be presented to the Crime Scene Unit of the Police Department as evidence of the sincere admiration of this legislative body. For all the members in the room, all the members not in the room, we congratulate you. (Applause.)
I'd like Deputy Commissioner Charles Brennan to say a few words and introduce the rest of the command structure that's here of the Crime Scene Unit. Commissioner, I'm going to present this to you, and then you could say a few words.
I see you're a tad busy today. I have Chief Inspector Finey, Inspector Mulvy, and Crime Scene Unit people. I won't keep you. Thank you very much. (Applause.)
At this time, the Chair recognizes Councilwoman Brown.
Thank you, Madam President. Please allow me to welcome to City Council a number of young people participating in the City-wide shadowing day. We want to salute and say thank you to the Cement Masons Local 592, Laborers Local 332, and the AFLCIO -(Applause.)
-- for taking the responsibility and being an example for young people. So we welcome Latrese Savior, Shekiea Simpson, Tyree Wilson, Nelson Rivera, Andrew Green, Amin Bush. Welcome to Philadelphia City Council. (Applause.)
You're welcome. At this time, the Chair recognizes Councilman Mariano who will present a resolution recognizing November 5, 2002 through December 4, 2000 as the Month of Ramadan. Will Marwin Creedy (ph) and those accompanying him please join the Councilman at the podium.
Council President, it would be Abor Rahim (ph), Principal of Islamic Society. Marwin had to leave. And I need Councilwoman Miller and Councilwoman Brown. Recognizing November 6, 2002 through December 4 as the month of Ramadan. Whereas, approximately 5 million Muslims live in the United States; and Whereas, there are over 80,000 Muslims in the Greater Philadelphia area; and Whereas, this is the month of Ramadan, a time of peace and brotherhood; and Whereas, the Ramadan commemorates the revelations of the Holy Koran.
Whereas, Ramadan will be marked by fasting, prayer, and meditation by more than 1 billion Muslims throughout the world; and Whereas, Ramadan encourages the Muslim community to develop compassion and charity towards all persons. Now, therefore, be it resolved
Resolved by the City Council of Philadelphia that we recognize this as Ramadan, 1423 AH. And be it further resolved that we honor the Muslim community in Philadelphia and be it further resolved that we extend to all those who are observing this holiest of times the respect and admiration of this legislative body.
Thank you, Councilwoman. I butchered this good gentleman's name. He's going to tell you the correct pronunciation and he want's to say couple words.
Council President, Councilwomen, Councilmen, and all you people in the audience. I heartily accept on behalf of the Muslims in Philadelphia this award or this that Ramadan is symbolizing our peaceful efforts to purify ourself, to look to one another as brothers. Historically, everybody in this room has their first parentage as Adam and Eve no matter what your religion, how you feel about whatever, you and I are brothers and sisters. Welcome to you all. (Applause.)
The next order of business is communications. The Chair requests that the Sergeant-at-Arms deliver the messages from the Mayor to the Clerk. The Clerk will please read the messages from the Mayor.
To the President and Members of the Council of the City of Philadelphia, I am transmitting herewith for the consideration of your honorable body the following: A resolution approving the actions of the Boards of the Philadelphia Industrial Development Corporation and Philadelphia Authority sell Parcel E18 in the Eastwick Urban Renewal Area; And an ordinance authorizing transfers in appropriation for Fiscal Year 2002 within the General Fund from certain or all City offices, departments, boards, and commissions to certain or all City offices, departments, boards, and commissions; And an ordinance authorizing transfers in appropriation for Fiscal Year 2002 within the Water Fund from certain or all City offices, departments, boards, and commissions to certain or all City offices, departments, boards, and commissions; And an ordinance authorizing transfers in appropriation for Fiscal Year 2003 from the General Fund certain or all City offices to the General Fund certain or all City offices, departments, boards and commissions.
Thank you. The messages will be printed in the Journal. The Clerk will please read any other communications in her possession.
The next order of business is the introduction of bills and resolutions. The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. I move that the Rules of Council be suspended so as to permit consideration of resolutions at their time of introduction. (Duly seconded.)
It has been moved and properly seconded that the Rules of Council be suspended so as to permit immediate consideration of resolutions at the time of introduction. All in favor of the motion will indicate by saying aye. (Aye.)
The ayes have it and the motion carries. The Chair recognizes Councilman Kenney. AND RESOLUTIONS
The Clerk will please read the title of the bill.
An ordinance amending Title 21 of the Philadelphia Code entitled "Miscellaneous," by adding provisions requiring members of boards and commissions of the City of Philadelphia to conduct certain of their deliberations, including deliberations with respect to adjudications pending before the Board of Commission.
This bill will be referred to the appropriate committee. The Chair recognizes Councilwoman Blackwell.
Is this introduction of bills and resolution, Madam President?
The Chair recognizes Councilman Cohen. AND RESOLUTIONS
Thank you. The Chair recognizes Councilwoman Krajewski.
Madam President, I have four bills and one resolution that I ask to be read into the record.
The Clerk will please read the title of the bills.
An ordinance authorizing transfers in appropriation for Fiscal Year 2003 from the General Fund certain or all City offices, departments, boards and commissions to certain or all City offices, departments, boards and commissions certain.
This bill will be referred to the appropriate committee.
And an ordinance authorizing transfer in appropriation for Fiscal Year 2002 within the General Fund from certain or all City offices, departments, boards and commissions to certain or all City offices, departments, boards, and commissions. AND RESOLUTIONS
This bill will be referred to the appropriate committee.
And an ordinance authorizing transfers in appropriation for Fiscal Year 2002 within the Water Fund from certain or all City offices, departments, boards, and commissions to certain or all City offices, departments, boards, and commissions .
This bill will be referred to the appropriate committee.
And an ordinance amending Title 4 of the Philadelphia Building Construction and Occupancy Code for Property Maintenance Code by adding provisions related to the maintenance of exterior property areas.
This bill will also be referred to the appropriate committee. And the sponsor has requested that the resolution be read in its entirety.
A resolution honoring Bill Cosby. Whereas William Henry Cosby was born on July 12, 1937, in Germantown. , and Anna; and AND RESOLUTIONS Whereas, as a young boy, Bill was immediately drawn to the comedy radio shows of his time, including Jack Bennie, Jimmy Durante, and Fred Allen. By the 5th grade, Cosby was entertaining classmates and teachers alike with his stand-up comedy; and Whereas, in 1956, unable to juggle the demands of working and being a star athlete, Cosby dropped out of Germantown High and, following in the footsteps of his father, joined the navy. His time in the navy would lead him to realize the importance of an education, and after earning his GED while in the navy, Cosby won a track and field scholarship to Temple University, the beginning of a 40-year love affair with the school; and Whereas, Cosby's comedy career soared with studying at Temple. It began as he was tending bar at the Cellar in Philadelphia telling jokes to his customers. The jokes were usually based on everyday events. Two years later, Cosby had secured his own gig in Grenwich Village in New York, ultimately leading to a contract with the William Morris Agency, the first of many comedy albums and shows in Las Vegas, Chicago, and other major cities; AND RESOLUTIONS and Whereas, in 1965 Cosby landed a starring role in the NBC series "I Spy," for which he won three Emmy Awards. " Bill also starred in a number of movies, thrusting him into the limelight as a major comedian talent; and Whereas, Bill spent much of the '70s earning advanced degrees in education at the University of Massachusetts, accumulating and being awarded a Doctorate of Education in 1977. He also became a popular pitch man for a number of products, including Coca-Cola and Kodak; and Whereas, in 1984, the "Cosby Show" debuted on NBC. The show became one of the most popular programs of all times until its demise in 1992. The show's humor was warm and universal, a stark contrast to many of the other shows being broadcast at that time; and Whereas, during his time with the Cosby Show, Bill also became an author and published four very popular books; and AND RESOLUTIONS Whereas, Bill became a very wealthy man due to the astounding syndication success of the Cosby Show. He and his lovely wife Camille became very active in giving millions to charities and universities; and Whereas, after the tragic loss of their son Ennis in 1997, Bill immersed himself in work and his charities, founding the Ennis William Cosby Foundation focussing on early detection and treatment of dyslexia; and Whereas, Bill has also created a series of children's books and a television series entitled "Little Bill" which is designed to help parents teach values to their children. Cosby has spent a lifetime exalting the virtues of quality television programming; and Whereas, in honor of his marvelous accomplishments in the entertainment industry, Bill was inducted into the Academy of Television, Arts, and Science's Hall of Fame. ; and Whereas, on July 9, 2002, in recognition of his lifetime of outstanding achievement, Bill AND RESOLUTIONS Cosby was awarded the President's Medal of Freedom by George W. Bush, the highest honor to be bestowed upon a civilian. Now, therefore, resolved by the Council of the City of Philadelphia that we hereby honor and commend Bill Cosby for a lifetime of achievement in the entertainment industry. Resolved further that an engrossed copy of this resolution be presented to Mr. Bill Cosby as further evidence of the sincere respect, appreciation, and admiration of this legislative body. As our favorite son, Mr. Cosby gives all Philadelphians yet another reason to be proud of our beautiful City.
Thank you. The Chair recognizes Councilwoman Krajewski.
Madam President, move for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will signify by saying aye. AND RESOLUTIONS (Aye.)
The ayes have it, and the motion is adopted. The Chair recognizes Councilman Mariano.
The Clerk will please read the title of the bill.
An ordinance to amend the Philadelphia Zoning Maps by changing the zoning designations of certain areas of land located within an area generally bounded by Annsbury Street, Eighth Street, Ramona Street and G Street.
The bill will be referred to the appropriate committee. The Chair recognizes Councilwoman Tasco.
Madam President, I offer one resolution cosponsored by Councilwoman Blackwell.
The Clerk will please read the title of the resolution.
Move for the adoption the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will signify by saying aye. (Aye.)
The ayes have it, and the motion carries. The Chair recognizes Councilwoman Miller.
The Clerk will please read the title of the bill.
An ordinance authorizing the Commissioner of Public Property on behalf of the City of Philadelphia to enter into a lease with Citizens Bank of Pennsylvania to lease from Citizens AND RESOLUTIONS Bank of Pennsylvania a certain parcel of ground at 2208 West Indiana Avenue, under certain terms and conditions.
The bill will be referred to the appropriate committee. The Chair recognizes Councilman Nutter.
The Clerk will please read the title of the bill.
An ordinance authorizing transfers in appropriation for Fiscal Year 2003 within the General Fund from the Department of Revenue Sinking Fund Commission to the Director of Finance, contribution to the School District.
The bill will be referred to the appropriate committee.
And an ordinance authorizing transfers in appropriation for Fiscal Year 2003 within the General Fund from the Department of Revenue Sinking Fund Commission to the Director of Finance, contribution to the School District.
This bill will be referred to the appropriate committee. AND RESOLUTIONS The Chair recognizes Councilwoman Brown.
Thank you, Madam President. I have no bills or resolutions this morning.
The Chair thanks the Councilwoman. The Chair recognizes Councilman Goode.
Thank you. The Clerk will please read the title of the resolution.
A resolution calling on the Philadelphia Commerce Department to conduct a needs assessment related to microenterprise development and neighborhood self-employment in the City of Philadelphia develop a comprehensive strategy and issue a report of the findings and recommendation to City Council's Committee of Commerce and Economic Development.
I move for the adoption. AND RESOLUTIONS (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will signify by saying aye. (Aye.)
The ayes have it, and the motion carries. The Chair recognizes Councilman Ortiz.
The Clerk will please read the title of the first resolution.
A resolution authorizing City Council's Committee on Transportation and Public Utilities to convene public hearings to take public testimony from the City Administration, Philadelphia Gas Works management and the general public and other interested parties in order to develop recommendations, including legislative strategies for modifying PGW's Senior Citizen Discount Program. AND RESOLUTIONS
I move for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded. All in favor will signify by saying aye. (Aye.)
The ayes have it. And the resolution will be referred to the appropriate committee. The Clerk will please read the title of the second resolution.
A resolution urging the City of Philadelphia to affirm and support the right of child-care workers to join the United Child-care Union.
I move for the adoption of the resolution, Madam Chair. AND RESOLUTIONS (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will say aye. (Aye.)
The ayes have it, and the resolution is adopted. The Chair recognizes Councilman DiCicco.
Thank you, Madam President. I offer two bills and two resolutions.
The Clerk will please read the title of the first bill.
An ordinance adopting an amendment to the Articles of Incorporation of the Olde City Special Services District of Philadelphia to extend the term of the authority, all under certain terms and conditions.
The bill will be referred to the appropriate committee.
An ordinance to amend the Philadelphia zoning maps by changing the zoning AND RESOLUTIONS designations of certain areas of land located within an area bounded by Snyder Avenue, Christopher Columbus Boulevard, and Porter Street.
This bill will be referred to the appropriate committee.
And a resolution honoring Cisco Systems for investing in public school children through the development of and implementation of the Cisco Networking Academy Program in Philadelphia.
Thank you, Madam President. I move for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will signify by saying aye. (Aye.)
The ayes have AND RESOLUTIONS it, and the resolution is adopted. The Clerk will please read the title of the second resolution.
A resolution authorizing City Council's Committee on Commerce and Economic Development to hold public hearings on the future development of Penns Landing's waterfront.
Thank you, Madam President. I move for the adoption of the resolution. (Duly seconded.)
Councilman, was that authorizing a committee to have public hearings?
It has been moved and seconded that the resolution be adopted. All in favor will signify by saying aye. (Aye.)
The ayes have AND RESOLUTIONS it, and the resolution will be referred to the appropriate committee. The Chair recognizes Councilman O'Neill.
The Chair thanks the gentleman. The Chair recognizes Councilman Clarke.
Thank you, Madam President. I have four bills and one resolution.
Thank you. The Clerk will please read the title of the first bill.
An ordinance authorizing the revision of lines and grades on a portion of City Plan No. 58 by striking from the City Plan and vacating Olive Street from Percy Street to 10th Street.
The bill will be referred to the appropriate committee. The Clerk will please read the title of the second bill.
And an ordinance authorizing the revision of lines and grades on a portion City AND RESOLUTIONS Plan No. 58 by striking from the City Plan and vacating Warnock Street from Wallace Street to Melon Street.
This bill will be referred to the appropriate committee.
And an ordinance authorizing the revision of lines and grades on a portion of City Plan No. 307 by striking from the City Plan and vacating Commerce Street from 21st Street to 22nd Street.
The bill will be referred to the appropriate committee.
And an ordinance amending Bill No. 990728, approved December 6, 1999, entitled, an ordinance authorizing the Commissioner of Public Property to convey to the Philadelphia Authority of Philadelphia certain premises at 1823 to 35 Callowhill Street.
This bill will be referred to the appropriate committee. The Clerk will please read the title of the resolution.
And a resolution authorizing the Commissioner of Public Property to execute and AND RESOLUTIONS deliver to the Redevelopment Authority of the City a deed located in the 15th, 20th, 28th, 29th, 32nd, 37th and 43rd Wards of the City of Philadelphia.
Thank you, Madam President. I move for the adoption of the resolution. (Duly seconded.)
It has been moved and seconded that the resolution be adopted. All in favor will say aye. (Aye.)
The ayes have it, and the motion carries. The Chair recognizes Councilman Longstreth.
The Clerk will please read the title of the bill.
An ordinance to amend the AND RESOLUTIONS zoning maps by changing the zoning designations of certain areas of land located within an area bounded by Snyder Avenue, Christopher Columbus Boulevard, Porter Street, Weccacoe Avenue and Vandalia Avenue. (Applause.)
The bill will be referred to the appropriate committee. And the Chair recognizes Councilman Rizzo.
The Chair thanks the gentleman. The next order of business is reports from committees. And the Chair recognizes Councilwoman Blackwell for a report from the Committee on Finance. Is Councilwoman Blackwell in the Chamber? The Chair recognizes Councilwoman Krajewski.
Madam Chair, the Committee on Finance reports three bills with a favorable recommendation. AND RESOLUTIONS
Thank you. The Clerk will please read the report.
To the President and Members of the Council of the City of Philadelphia, the Committee on Finance to which was referred Bill No. 020481, entitled an ordinance amending Title 17 of the Philadelphia Code entitled contracts and procurement by adding a new chapter requiring the City Controller to prepare or cause to be prepared economic impact statements for certain development projects prior to funding of such projects by the City; And Bill No. 020675, entitled an ordinance constituting the Fifth Supplemental Ordinance to the General Gas Works Revenue Bond Ordinance of 1998 authorizing the Mayor, the City Controller, and City Solicitor or a majority of them to sell either at public or private sale Gas Works Revenue Bonds; And Bill No. 020676, entitled an ordinance constituting the 17th Supplemental Ordinance to the General Gas Works Revenue Bond Ordinance of 1975, authorizing the Mayor, the City Controller, and City Solicitor or a majority of them AND RESOLUTIONS to sell either at public or private sale Gas Works Revenue Bonds; Respectfully reports it has considered the same and returns the attached bills to council with a favorable recommendation.
Thank you, Madam President. I move that the Rules of Council be suspended so as permit first reading this day of Bill Nos. 020481, 020675 and 020676.
It has been moved and seconded that the Rules of Council be suspended so as to permit first reading this day of Bill Nos. 020481, 020675, and 020676. All in favor will signify by saying aye. (Aye.)
The ayes have it, and the bills just read will be placed on First Reading Calendar. As there are no further reports from committees, we will now consider a special order of business. Councilmembers, please take their seats. Ladies and gentlemen, I am pleased to introduce the Mayor of the City of Philadelphia, Mayor John F. Street. (Applause.)
Thank you. Thank you so much. Good morning, President Verna and Members of City Council. Thank you for the opportunity to speak to you and the people of Philadelphia this morning about these tremendous opportunities and critical challenges facing our Cities. Mayors normally address City Council in this way only when giving a budget message in January, so I want to thank you for the opportunity to come here today. For much of the last decade, we've benefited from the longest period of economic expansion in the history of our country. But today, America finds itself in the grips of a recession, by the new threat called terrorism. This recession has thrown federal, state, and local budgets across the country out of balance. 4 billion projected budget deficit. , is raising taxes by $122 million and reducing spending by another $203 million. Virtually every American City is facing significant budget gaps resulting from plummeting revenues driven by the national economy. Cities are cutting services, eliminating jobs, postponing pay raises, delaying tax reductions, and even raising taxes to cope with the spiraling budget deficits. And Philadelphia is not immune from the ravages of the economy. Just as Pennsylvania is being forced to balance its budget with reserves accumulated in the '90s, Philadelphia finds its reserves being depleted in response to economic events beyond our control. Despite our fundamental strengths as a City, despite the fiscal discipline we have exercised, we are with deficits that are a direct result of a downturn in the national economy. I am here today to share with you the facts of our fiscal condition and to suggest the steps we must take to squarely meet this challenge. I am proud to report, however, that even in the face of our challenges, the condition of our City remains strong. Nevertheless, to preserve our strength and grow, we must face up to the economic hurdles that threaten the future of our City. We must make the difficult choices required to balance our budget, provide essential services, and invest in our City. Philadelphia, like many other cities, stands at a crossroad between prosperity and peril, between fiscal health and fiscal calamity. We face a potential cumulative five-year Operating Budget deficit of $612 million by June 30, 2007. And unless we act to prevent fiscal chaos, this circumstance could be more devastating than the 1991 financial crisis that almost ruined the City's future. This very real crisis grows out of risks and uncertainties which I noted in my January budget message, many of which, I am sad to report, are now a reality. 2002, we increased local support for public schools by $45 million a year, a prerequisite of our landmark agreement with the Commonwealth of Pennsylvania that resulted in significantly increased state funding for our public schools. Criminal justice costs are $28 million over budget, and we have incurred $18 million of one time essential security costs. To compensate for two years of negative pension fund investment returns, the City will have to contribute an additional $190 million to its pension fund in the current five-year plan to protect the retirement benefits of City workers as well as our retirees. And this could be a conservative number if the equity markets continue to fall. The recent police arbitration award will cost an additional $148 million, including a staggering 37 percent increase in healthcare costs. We are currently engaged in contract arbitration with fire fighters. Still to come are negotiations with District Council 33 and 47 who represent our sanitation, clerical maintenance, and other workers who are the backbone of our operating and deserve a fair contract.
State mandated increases in trash tipping fees and increases in prison health contract costs add an additional $80 million in expenses within the current five-year plan. Over the past several months, senior members of my Administration have provided detailed City budget briefings for decision-makers locally and in Harrisburg. Our message has been direct and uncomplicated. Philadelphia, like the Commonwealth, has a real financial challenge which we can manage if our revenues are not further reduced by legislative action. Let's be clear. For Philadelphia to become more competitive and to create greater opportunities for residents and taxpayers, the local tax burden must be reduced. We will implement our current tax reduction program and in so doing create a new culture in this government that will allow us to accelerate those tax cuts even further, as possible. But it must be noted that the current tax reduction program will reduce revenue over the next five years by an estimated $290 million. The absence of those revenues will make our decisions difficult but also more rewarding. In the weeks ahead, this government must make choices that will define the future of our City. We can work at cross-purposes or we can forge ahead together, making courageous choices which will lead to a better Philadelphia. When I stood before you in January 2002 to deliver my budget message, I stressed that managing our financial affairs in the midst of the economic uncertainty that surrounds us was a work in progress. We live in an environment of serious change and challenge. I cautioned that we would surely have to take corrective measures if the economy did not improve or got worse. Since then, we have made and implemented many tough decisions required to preserve our financial stability, improve critical services, and sustain our investments in the future. 5 percent cut in personnel costs already mandated. The use of automobiles and cell phones be reduced with a goal of saving 5 to $8 million over the next five years. 2 million. The current hiring freeze which has reduced the City's workforce by over 400 positions and saved $7 million since last November will continue in effect. Through the DROP Program, we will save $68 million by eliminating a minimum of 500 positions. Together, these measures will produce approximately $290 million of savings over the life of the current five-year plan. Our work has pointed us in the right direction, but it will not get us across the finish line. We must do more, a lot more. To achieve our objective, we must fundamentally and responsibly reform and permanently reduce the employee population of this government. With that in mind, I will be recommending at my next budget and five-year plan that we reduce the number of employees in this government by a minimum of 10 percent or 2500 employees over the course of that plan. These reductions will start with exempt employees but will reach the entire government to us to achieve our targets. In making these reductions, we will not jeopardize public safety, but we will secure our future. I will work closely with City Council and the unions who represent our employees, our Chambers of Commerce, civic, religious, and other leaders, as well as representatives from our state and federal delegations to pursue greater efficiencies and to redefine the right organization for municipal government to provide quality services and promote economic growth, and the right size of our infrastructure built for 2 million people before the age of technology. We will consider asset sales, privatization opportunities. We will evaluate all existing programs and facilities in our efforts to achieve financial balance, neighborhood stability, and service excellence.
Complementing our work will be the Tax Reform Commission approved by the voters earlier this month to make recommendations on tax policy. This group will have the critical challenge of looking at the City's complete tax structure, including the real estate assessment practices of the Board of Revision of Taxes as well as the right mix of revenue sources to balance the City's budget, provide quality services, and grow the local and regional economy. Today, I am asking City Council for a moratorium on tax reduction bills to give the Commission time to do its work. With your input, cooperation, and support, we can make the important decisions required to right-size and re-engineer local government. We will be able to make sensitive, fair, and correct decisions to balance our budget in our five-year plan. But make no mistake, the work I invite you to join in will be difficult. The easy cuts and efficiency improvements have already been implemented over the last decade. The decisions we will be called upon to make will require courage, sacrifice, and political risk. But we must work together to implement the reforms required to realize the full promise of Philadelphia. As I said at our prayer service just a few months ago on September 11, Americans have so much more in common than we have differences. Our differences, yours and mine, deserve respect. But if we allow ourselves to be irrevocably divided by them, we will sacrifice the momentum that has made Philadelphia a world-class City. By working together, we can grow and prosper as a city that recognizes diversity as a strength and a city of opportunities for everyone, white, Asian, Hispanic, African American, old, young, women, disabled, straight or gay. Everybody. Next year will be a tough budget year for Philadelphia. The next five years will require a clear vision and courageous leadership. To build upon Philadelphia's progress, to attract the marquis retail stores required to complete the economic renaissance downtown, to prepare ourselves to compete in an ever increasing knowledge-based economy, we must make the sacrifices and investments required to improve public education and expand youth development programs that ensure a bright future for our children. We must also remove blight and drugs from our neighborhoods and build upon the successes of the hospitality industry. A world-class city must have a world-class public school system. City Council made the right decision when it increased the City's investment in our public schools. Working with Ridge and Schweiker, we have brought a school reform plan to Philadelphia that has the ingredients for success. Education advocates, parents, and community leaders rightly stood with me against turning the management of our schools over to Edison. We were right to insist on hiring a strong CEO like Paul Vallas to manage our school system. Now, to sustain our economy, we must fix the labor management problems at the Pennsylvania Convention Center and work for its expansion. The Convention Center has been a five-star investment for Greater Philadelphia and all of Pennsylvania since it opened in 1993. 3 billion in annual wages, and it has nurtured and revitalized our hospitality community. As a candidate for Mayor, I committed to the people of this City that neighborhoods would be a serious priority. I have kept that promise. We are implementing the most comprehensive anti-blight program ever attempted in America. It is working and generating enthusiasm. Pulling together to carry out our ambitious vision for NTI is the fair farsighted thing to do. The same can be said about Operation Safe Streets. I'm proud of the great work our Police Department is doing, and every citizen in Philadelphia should be proud of this program. )
I do not want to live in a City where good people are locked inside their homes and drug dealers run the streets. Today, children can play on the sidewalks of every neighborhood. Parents and grandparents are able to enjoy a summer evening on the porch or simply walk to the corner store. Budget concerns notwithstanding, I will not compromise public safety. We will make the largest, most strategic investment in public safety in the long storied history of our City. This includes the most aggressive and successful anti-drug initiative in the history of any major City in the country, the Safe Streets Program. You cannot transform drug-ridden, crime-infested neighborhoods. 5 million in '06 and '07. How do we pay for it? 15 billion for our Police Department, over 200 million of which is in overtime unrelated to Safe Streets. I have directed Police Commissioner Johnson to generate internal savings of $45 million over the five years or 2 percent of the total Police Department budget to support Safe Streets. We will aggressively confiscate the real and personal property of people selling drugs in our City. 5 million in cash and 450 automobiles that can help fund Safe Streets. I estimate that approximately 5 million will be collected each year through the forfeiture of cash, real and personal property. To summarize, we estimate spending $100 million over five years to support Safe Streets, 45 million will come from internally generated savings, and approximately 25 million will come from our forfeiture efforts requiring an additional $30 million to come from local, state, federal and other We can ill-afford to compromise the effectiveness of this neighborhood saving program. Operation Safe Streets is a winner. According to this year's citizen survey, 71 percent of the citizens in neighborhoods with historically high incidents of major crime are satisfied with police protection, up from 54 percent last year. And major crime is down everywhere. But what especially warms my heart are the stories I hear from police officers and neighborhood residents. They tell me routinely that Operation Safe Streets is bridging the divide of distrust that has existed in some neighborhoods between the police and their communities. We will not now turn our backs and surrender our neighborhoods to the drug dealers. All of us have been a part of the rebirth of Philadelphia over the last decade. We all continue to enjoy the expanding interest and opportunities in our great City. Market rate housing, restaurants, and entertainment venues are growing up in Northern Liberties, Fairmount, Brewerytown, Queens Village, University City, Roxborough, Manayunk, South Philadelphia, and parts of the Northeast, not just City. These neighborhoods are experiencing population growth, and for the first time in many generations citizens are creating wealth in their largest single investment, their home. Students are flocking to our colleges and universities in record numbers. The Constitution Center is nearing completion, two state-of-the-art sports facilities are under construction, and the Phoenix is open in Center City. On the waterfront, commercial and residential projects are about to join Kvaerner at the Navy Yard. 5 million square feet of major retail development projects in the Northeast, along Delaware Avenue and in South Philadelphia. We are exploring ways to stimulate residential and commercial development along the North Delaware River corridor, a strategic plan is in the works for the future of Fairmount Park, and the world famous Barnes Foundation wants to relocate its magnificent art collection to the Benjamin Franklin Parkway, joining the new Calder Museum. Unfortunately, the turbulence in our national and local economies is threatening the stability we have fought so long and hard to maintain.
As a result, we are faced with difficult choices, choices between where to tighten our belts and where to make indispensable investments in our future. Today, I am here simply to ask that we work together to realize the full promise of Philadelphia. Every member of this Council is a leader in his or her own right or you wouldn't be here. To achieve our goals, we must exercise leadership and courage. " We are about to embark on a journey which will require great change in the way the City does its business or we will not reach our goal. Massive change cannot occur without conflict. Our ability to cope with chaos and complexity will be tested. We cannot be both indecisive and effective. We must know what we want. Over the next 24 months we must stay focused and see the big picture. We must not let minor obstacles blur our vision and cause us to lose our way. We must show the people we care about them and that we will protect their future. " Separating the policies of the past from the promise of the future will be difficult if not impossible for some, but we must do it anyway. We must at all times be tolerant, persistent, flexible, and above all respectfully. " Madam President, Councilmembers, we are all leaders and, as such, must accept our individual fair share of the final responsibility. Thank you very much. )
Council will stand in recess for 10 minutes. Thank you. (Brief recess.)
Our next order of business is the consideration of the Calendar. The Clerk will read the bills on our First Reading Calendar.
And Bill 020470, an parking regulation on Colorado Street, both sides, Bainbridge Street to Fitzwater Street.
Bill No. 020471, an ordinance establishing a parking regulation on Catharine Street, both sides, 19th Street to 20th Street.
The Chair agrees. And Bill No. 020472, an ordinance establishing a parking regulation on Fitzwater Street, both sides, 21st to 22nd Street.
Bill No. 020473, an ordinance establishing a parking regulation on Carlisle Street, west side, Porter Street to Shunk Street.
Bill No 020489, an ordinance regulation on Millick Street, west side, Market Street to Arch Street.
Bill No. 020499, an ordinance establishing a parking regulation on Perot Street, south side, 23rd Street to 24th Street. And Bill No. 020501, an ordinance establishing a parking regulation on Croskey Street, west side, Brown Street to Aspen Street.
The Chair agrees. Bill No. 020502, an ordinance establishing a parking regulation on Park Avenue, west side, Rising Sun Avenue to Ontario Street.
Bill No. 020544, an ordinance establishing a parking regulation on 43rd Street, west side, Larchwood Avenue to Osage Avenue.
Bill No. 020545, an parking regulation on 48th Street, both sides, Chester Avenue to Springfield Avenue.
Bill No. 020546, an ordinance establishing a parking regulation on 55th Street, west side, Ludlow Street to Chestnut Street.
Bill No. 020547, an ordinance establishing a parking regulation on Baltimore Avenue, both sides; 45th Street to 46th Street.
Bill No. 020559, an ordinance establishing a parking regulation on Sigel Street, north side, 13th Street to Juniper Street.
Bill No. 020560, an ordinance establishing a parking regulation on Fitzwater Street, both sides, Ninth Street to Tenth
Bill No. 020561, an ordinance establishing a parking regulation on Juniper Street, west side, Moyamensing Avenue to Oregon Avenue.
Bill No. 020562, an ordinance establishing a parking regulation on McKean Street, both sides, 12th Street to 13th Street.
Bill No. 020563, an ordinance establishing a parking regulation on 11th Street, east side, Catherine Street to Christian Street.