Yes. As I mentioned, contracts -- goals are established for each contract. The goals are established based on what services have to be done, how many prime contractors can do it, and how many DBE firms we have registered that can -- that have 289 FY '07 OPERATING BUDGET HEARING - 3/22/06 indicated they also could possibly perform some of the services. So it is established based on the availability of DBEs doing the services.
So let's go down the list here. Architectural engineering, design, and construction services. Now I don't know what that means, November '95.
That's when it was awarded. This is for design work. This is the one that helped us create the vision that's out there. I know.
Did you really want to give them that level of profile or credit, I mean?
Well, you know, the vision is a little blurry at this point. So DMJM-Harris, is that one company?
And that is, it 290 FY '07 OPERATING BUDGET HEARING - 3/22/06 appears that they are a nonminority company?
So the goal was percent. The current percentage is 18.38. 7 But I guess what I don't have is, 8 how did they meet -- who did they do business 9 with? 10
There is a complete 11 listing for each one of the vendors we have of 12 all the contractors, all the subcontractors 13 for each one of the contracts. 14 So we could provide that data to you 15 very easily, if that's -- 16
That would be 17 helpful. 18 Now, in the professional consultant 19 contract area, I guess the big number is under 20 prime payments? Is that E? Or is the total 21 for that section E plus F? 22 What's the total amount that's going 23 to be spent on professional consultants?
The contract values are even listed previously. 291 FY '07 OPERATING BUDGET HEARING - 3/22/06
The total contract value for professional services is expected to be 74 million 090.
The million, B, 9 column B, is what is committed for DBEs out of 10 that 60 -- $74 million. The rest of the 11 information is actually tracing payments. 12
I understand. 13 So you have $22 million in commitments, you 14 have paid out 19? 15
We have paid out -- we 16 have $74 million total commitments. We have 17 paid out $60 million to the primes. 18 Out of the $60 million we have paid 19 to the primes, the DBEs have been paid a 20 little under $20 million. 21
And then, so, in 22 affirmative action section, you have two contracts. So there are two different companies dealing with affirmative action?
The first contract was 292 FY '07 OPERATING BUDGET HEARING - 3/22/06 concluded. Milligan & Company is the active company now. They were awarded the contract January of '04.
So you have had two companies that weren't acting at the same time?
And then there were two different contracts for communications, community relations?
Well, two different contracts. It just so happens the same vendor received both of them. But, yes.
Okay. And then the same issue with the program management, seems to be, as the architectural engineering design. This is a nonminority company.
They are at 23 percent, their goal was 17. And then you would have to provide the backup to go with 293 FY '07 OPERATING BUDGET HEARING - 3/22/06 that.
Their current commitment is the percent, and that's the one we 5 expect them to satisfy. 6 So they are currently based on 7 payments at the 17 percent mark, but they have 8 still confirmed that they are indeed going to 9 hit their goal of the 23 percent for DBE. 10
The goal is -- the DBE 13 goal that we established was 17 percent. They 14 surpassed the goal we established. 15
So their committed goal 17 is what we hold them accountable for. 18
And then cleanup 19 and disposal is another nonminority company? 20
Cleanup and disposal, I 21 think Immaculata is, indeed, a minority 22 vendor. So you see 100 percent, 100 percent. 23
I see that. And the other ones you seem to have DBE next to them. 294 FY '07 OPERATING BUDGET HEARING - 3/22/06
Because they are going to subcontract percent of it to probably a 4 DBE. 5 So they also get -- there was a 10 6 percent goal attached to the contract. But a 7 minority firm won the contract; therefore, it 8 is a 100 percent DBE involvement. 9
Okay. But, I 10 mean, do they then have to go and subcontract to somebody else?
Got you. If you could get us address and name of principal for these various firms, that would be helpful.
Yes. And what happens, I mean, do you have -- so now going back to the second page, I guess this is. On the construction contracts, you have percent DBE commitment for construction 295 FY '07 OPERATING BUDGET HEARING - 3/22/06 is 17.97?
So if someone doesn't meet their commitment, what happens?
Well, first let me point out that we are early into construction, so the firms still have a wonderful opportunity to meet their DBE goals. This is more reflective of where we are in the construction cycle, as opposed to them not meeting goals. But we have a process in place with our small business unit. Primes are brought in periodically. We work with them to see what the problems are. Because we tell them, we hold them responsible for meeting their goal. And, so, we work with them to make sure that they do indeed satisfy their goals.
What happens if they don't? 296 FY '07 OPERATING BUDGET HEARING - 3/22/06
If they have convinced us that they have tried their best, and as the federal government calls it, fair and reasonable effort -- there is some cute little federal terms they use -- there are no 7 published recourses that the federal government allows. If they are merely just not doing it, then we have the opportunity to terminate their contract.
That's what I am saying. If they are saying, we are not doing it, we are not going to try, et cetera, one of the corrective measures could include terminating contract. We haven't had vendors that wanted to risk that, so they tend to work with us.
Now, on the resident goal -- and you laid out that you may not be able to require it, and people have to agree to it -- but, I mean, given the massive nature of this project, the neighborhood in 297 FY '07 OPERATING BUDGET HEARING - 3/22/06 which it is situated, I haven't checked on the census bureau side, but I guess I would have to say between Councilwoman Blackwell and I, we would probably have some sense that unemployment in West Philadelphia is probably slightly higher than other parts of the city. The city's unemployment rate is higher than, I believe, the national average. The goal is 10 percent, which I would say is low. But they haven't met that, anyway. I mean, what is possibly the problem?
We were added up -- until this recent reporting, we were actually seated at -- we were close to 10 and a half or 11 percent, so we were exceeding it prior to this one. A lot of the construction dollars -- a lot of the efforts now are being done away from the site. It is still erection, et cetera. So it is not as many opportunities for the local community to participate. It is very specialized in some of the work. What we expect a heavier -- we expect heavy concentration when we get into 298 FY '07 OPERATING BUDGET HEARING - 3/22/06 the station area, which is what we saw with 56th Street. But it is very --
However, what we have continued to do is to try to recruit people who were interested in working in the construction industry. So we have a relationship with DAP, Diversified Apprenticeship Program, through -- well, it is the DAP program. And we continue to send people to the program for training. And after the training is complete, they can in fact work up to a thousand hours on the project.
I beg your pardon? 299 FY '07 OPERATING BUDGET HEARING - 3/22/06
So we continue to try to recruit people in West Philadelphia. We have found that in some instances, particularly with the DAP program, there were requirements that some of the residents were not able to pass.
Well, they require that they have at least a GED, a driver's license, and be able to pass some of the -- there is a test that they have to pass, urinalysis, and in some instances they were not able to pass that test.
You could prepare for it, but you can't prepare for it overnight. 300 FY '07 OPERATING BUDGET HEARING - 3/22/06
So we have continued to recruit and to send people to the DAP program.
Do we have any idea how many people have come out of the program and actually worked?
We will have to get back and give you that information. But I will also mention, it is tough work. It is absolutely tough work out there. So it is -- you know, we have had people sort of suggest to us that anybody can push a broom or anybody can do this or anybody can do that, but they are really around some very sensitive, dangerous work. So we send them to DAP so that DAP gets them ready. And very happy with the way they are preparing people. We just have to figure out now how to complete that circle. 301 FY '07 OPERATING BUDGET HEARING - 3/22/06
We actually kicked that one around. Based on construction dollars spent, it is about 50 percent. And I have my engineer back here, so at any point in time correct me if I am off. And the construction effort is following very closely to that. I will point out that there are three or four projects that are 100 percent done, and it sort of skews, you know, that number.
December of '08, substantial completion. And that is still the time frame that we are targeting.
Point of information for a moment. If we started in '98 --
Well, '98 was prep work and community outreach. Construction has been pushed back a couple of years. But it was not targeted from 1998, that the construction would start in 1998.
I don't remember now, it's been so long. If we say the construction started in 2000, you are still talking six years. And yet you intend on completing it in two more, but you say you are only 50 percent completed. How do you deal with, like, one-third at a time, when you are only halfway there?
Because we have multiple vendors working on the project. We had one vendor for a long time doing the utility work, the underground work, 303 FY '07 OPERATING BUDGET HEARING - 3/22/06 et cetera. We now have two full-fledged vendors. You know, we are really geared up for the heavy construction for 2006 and 2007.
Councilman, my question was, if it started in '98 -- and let's give them two years -- even if they say 2000, they say they are 50 percent done, but they will be finished in '08. And that's quite a bit of time, but they said they are using more vendors.
You have five years to get to 50 percent and the other 50 is it going to get done in three?
A big piece of any job is doing the work that's underground. And that was, indeed, a two-year effort. We relocated all the utilities, all the duct banks. Not just SEPTA related, but these are duct banks and utility banks that will benefit the City of Philadelphia. So that took two years by itself. So you really do a lot of the efforts underground. The above-ground things, we are 304 FY '07 OPERATING BUDGET HEARING - 3/22/06 still very comfortable with December '08.
Actually, I would like you to consider allowing me at this point to offer an amendment to the Capital Program. I apologize for interrupting, but we have a 30-day clock issue, and I needed to get it in today. Surrounding all the discussions we had with the Recreation Department, I know there has been discussion with Councilman Nutter and other discussions about trying to get next year's Capital Budget in line for the Recreation Department. This is an effort to address the five years from 2007 through 2012. So I just wanted to formally offer this now. It has been circulated to members. It is on their desks. And, apparently, I have accomplished the technical need of having it 305 FY '07 OPERATING BUDGET HEARING - 3/22/06 in. So if you will allow that to happen, I would appreciate it.
With regard to the resident goal, you said you are anticipating improvement because the construction is about to start?
At this point in time we have one station done. We have four additional stations in the city proper. That's where there is -- there could be the opportunity for the use of more of the residential. Right now the steel is being done and erected at a really remote location. It is a little hard to get, you know, the local residents up as far as the steel is. It might be Bethlehem, some of it is Lancaster, et cetera. There should be more opportunities to engage the local communities, because the 306 FY '07 OPERATING BUDGET HEARING - 3/22/06 stations are right there. They don't have to commute; they could go to the stations. But it is imperative that the job skills training take place, and they have gone through that, in order to make sure they are indeed successful.
Thank you, Councilman. Certainly we note that the Councilman and I have been at meetings with Congressman Brady, Congressman Fattah, Representative Evans, Representative Louise Williams Bishop, Representative Thomas Blackwell, Ron Waters, Harold James, Dion, and others. So we have had major meetings dealing with the problems associated with this project, and certainly we hope that the future will not be as tough as it has been in the rear. We hope not. And, again, we really, really need help with these businesses. We tried to beg 307 FY '07 OPERATING BUDGET HEARING - 3/22/06 up from the Administration and tried to administer it through the Commerce Department some little subsidy. Congressman Fattah came up with some parts of a subsidy. And we have tried to only try to keep people going. We need programs that deal with forgiveness and deferment in all areas. And it is very, very frustrating with seniors, when somebody is in their 70s comes and says, "I have to get a job and work for someone else." So we do ask that you be sensitive to these things. Work with our businesses, give us a little respect. It is hard enough, it is frustrating enough dealing with this issue. And if you say you are advertising, advertise it. If you say you are fliering the area, put the fliers out. You know, treat people, give them a little respect so that it isn't so -- the project is hard enough. But we need to feel that there is some partnership, really, in this, and we just haven't felt that way. We 308 FY '07 OPERATING BUDGET HEARING - 3/22/06 haven't felt that the community has been respected. Councilman Nutter asked a lot of questions about job training, inclusion. That hasn't happened. And that's why, you know, the Councilman and I generally don't go to the meetings, because I don't put myself in embarrassing situations, where I don't have positive information for the people who elect and send me here. We love our districts, we respect our people, and we need to have faith in our relationship so that, as we step out there, people will believe that we care and that we are doing our best. Having said that, if there are no 18 other questions or comments, we will recess this hearing until Tuesday, March 28, at 10:00 a.m. Thank you all.
Thank you very much. (Public Hearing adourned at 5:15 p.m.) - - - 309 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Wednesday, March 22, 2006, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COMMITTEE OF THE WHOLE _________________________ DEBRA A. WHITEHEAD