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Committee Hearing, April 12, 2011

Minutes from Philadelphia City Council Committee Hearings, Apr 12, 2011

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Councilman Jones

I had an11 opportunity to be debriefed by my Chief12 of Staff who went out to Tinicum13 Township. We equally offered you guys14 also and would look forward to taking15 advantage of taking a tour of that area16 from your perspective as well.17 I'm deeply concerned about 8318 households and a major portion of Tinicum19 Township being impacted by this. That's20 the humane thing to do. That's the good21 neighbor thing to do.22 I'm more concerned about the23 potential of a takeover of one of our24 major assets, and we need to navigate25 339 4/12/11 - WHOLE - BILL 1101371 that political minefield carefully.2 So having said those things and3 looking forward to going down and taking4 a look at what your plans are, let me ask5 two quick questions. One is, can we6 de-couple some of the project to deal7 with the runway or does the timeframe8 require us to move down both construction9 tracks? I know you're doing two10 terminals, one runway and a people mover,11 if I understand the construction, and the12 relocation of UPS. So are you doing it13 in phases that allow for the permits, the14 negotiations, the potential lawsuits to15 work themselves out, thus de-coupling the16 procurement opportunity?17

Mr. Gale

Councilman, I would18 say that to some degree, the de-coupling19 that you speak of will be there in terms20 of we will be letting individual RFPs,21 RFQs go for pieces of the project, trying22 to bundle those pieces together so that23 if it, let's say, has to do with a runway24 extension, that we have all the pieces25 340 4/12/11 - WHOLE - BILL 1101371 that were necessary, but it may have2 multiple contracts that go along with3 that. And we will be doing that in a4 phased approach over the next 13 years,5 consistent with not only the ability to6 go out and bond for several billions of7 dollars, but also to be working with our8 stakeholders as we make our way through9 the process.10 I can't do a $6 billion project11 in three years. The cash flow just does12 not permit it. I'd like that the project13 would be done quicker than later, but it14 is a long burn. There's a lot of phasing15 and there's a lot of complexity that go16 along with this.17 What we want to try to make18 sure is -- and I've said this before --19 in the process of trying to make the20 Airport better, I don't want to make the21 Airport worse, and that's going to be22 something that we have to very, very23 carefully navigate through over the next24 decade, that as projects are being done,25 341 4/12/11 - WHOLE - BILL 1101371 that we're making sure that we have all2 the stakeholders involved in the process.3 The way the FAA looked at the4 EIS process, though, they do not really5 give us the ability to, quote, say we're6 only going to do the runways and not do7 the terminal buildings, or we're only8 going to do the terminal buildings and9 not the runways. To them it truly is you10 need to do the entire project. If for11 some reason events in some time in the12 future occur that derailed where we were,13 we would probably have to go back to the14 FAA and have a supplemental environmental15 process convened.16

Councilman Jones

I don't17 relish the idea of working with such a18 large bureaucracy. They take yes's very19 seriously and very slowly, and then when20 you ask them again a second time, it21 could be not in our lifetime. So I want22 to proceed with caution.23

Mr. Gale

I have a request24 into them for over half a billion dollars25 342 4/12/11 - WHOLE - BILL 1101371 in funding, so I won't say anything2 negative right now.3

Councilman Jones

I4 understand.5 Let me get to some other6 background. Now, for the record, you7 deal with both the Northeast Airport and8 the main airport, correct?9

Councilman Jones

I asked in11 one other budget session how do people --12 have you done a study on how people get13 to the Airport and different modes of14 transportation, and have you assessed15 what they mean by way of growth, whether16 it's how do people -- do they come by17 vehicle, do they come by train and the18 like, or bus?19

Mr. Gale

For Philadelphia20 International, yes, we've undertaken21 those studies in the past to try to parse22 out how many come by the Airport rail23 line, how many are being dropped off by24 private vehicle. Forty percent of the25 343 4/12/11 - WHOLE - BILL 1101371 travelers that come through the Airport2 are just connecting from one plane to the3 other. But those that are coming via4 land side, are they arriving via the5 interstate, the Blue Route, I don't have6 those figures here with me, Councilman.7 We can probably go back and dig out the8 percentages of the means and methods of9 how they've gotten to the Airport for10 you.11

Councilman Jones

I think12 that's important as we start to look at13 the PATCO expansion. Is that planned to14 go into the Airport?15

Mr. Gale

No, not currently.16

Councilman Jones

If my17 briefing memory serves me correctly, they18 were only going to go maybe a mile away19 from the Airport, and I don't understand20 why the connectivity didn't happen with21 that. Not that you can speak for PATCO,22 but I see a more knowledgeable person on23 intermodal transportation coming to the24 mike.25 344 4/12/11 - WHOLE - BILL 1101371 DEPUTY MAYOR CUTLER:2 Councilman, Rina Cutler, Deputy Mayor for3 Transportation and Utilities.4 The PATCO study in fact did not5 go to the Airport. There was a6 subsequent study that was done which7 actually brought the SEPTA line, the8 Broad Street line, down to the Navy Yard.9 So those were two separate studies.10 At this point, it is not clear11 to me that the PATCO study is going to12 go. There's, as you are aware, been a13 large turnover of Board members at DRPA14 and that funding is still in question.15 One of the things we were16 looking for -- so it wasn't PATCO that17 was ever coming down that far. They were18 actually going to stop somewhere down19 near the retail businesses on Delaware20 Avenue, Columbus Boulevard.21

Councilman Jones

They did a22 briefing in the Caucus Room and, again,23 if memory serves me correctly, where they24 were going to stop was approximately one25 345 4/12/11 - WHOLE - BILL 1101371 mile from the Airport, and I didn't -- I2 asked them then and didn't understand.3 And maybe all of this is moot because the4 funding is gone.5 DEPUTY

Mayor Cutler

It may be6 one mile as the crow flies, but you7 actually -- there's water, there is Army8 Corps dredge sites. So you actually9 can't go a mile to get to the Airport10 under that configuration.11 One of the things we have said12 we should look at is, we consider the13 Navy Yard to be sort of what we call an14 edge city to the Airport. So one of the15 pieces we will look at for the people16 mover system is whether we can get from17 the Airport to the Navy Yard and make the18 connection that way.19

Councilman Jones

Because20 theoretically someone from Chestnut Hill21 wanting to catch the train could come in22 that way.23 DEPUTY

Mayor Cutler

Well,24 they would go to 30th Street and then25 346 4/12/11 - WHOLE - BILL 1101371 take the SEPTA line to the Airport.2 Although we are in very serious3 discussions with Amtrak, because we want4 Amtrak to stop at the Airport. We5 believe it currently stops at both Newark6 and Baltimore, and we are upset that it7 doesn't consider us to be a stop on the8 line. So one of the pieces -- there are9 Amtrak tracks that come past the Airport10 on their way to Baltimore, and one of the11 pieces we're looking at is whether12 ultimately we can push the envelope of13 the Airport out to get to those tracks in14 order to have an Amtrak stop at the15 Airport. So in that case, you could16 either switch at 30th Street to the SEPTA17 Airport line or you could come all the18 way through on the Amtrak line. But both19 of those, whether it's a PATCO expansion20 or whether it's an expansion from the21 Airport to the Navy Yard or whether it's22 an Amtrak stop at the Airport, they are23 all well down the road and will all need24 to be studied individually as part of the25 347 4/12/11 - WHOLE - BILL 1101371 expansion.2

Councilman Jones

It's, I3 think, important for us to be cognizant4 of where our travelers come from, the5 means by which they arrive at the Airport6 and to try to reinforce that usage that7 way. Working in a coordinated effort8 regionally might be one of the good9 things that we can do with this new10 Governor and working with him on11 transportation.12 DEPUTY

Mayor Cutler

Yes.13 Actually, those are numbers that are14 available. We have a pretty good sense15 of not only where they come from, but how16 they get to us. And obviously the17 Airport is very much a regional facility,18 not just on the economic development side19 but also obviously on the mobility side.20 And while there is often discussion about21 airlines being told to fly out of22 facilities other than Philadelphia, we23 have not seen a lot of people who want to24 drive to Allentown to get a flight and25 348 4/12/11 - WHOLE - BILL 1101371 nor have we seen airlines willing to fly2 out of there, that the business case just3 can't be made.4 So we do consider it a regional5 facility, and we certainly --6 notwithstanding the current issue with7 Delaware County, the vast majority of8 both our travelers and employees in and9 around the Airport actually come out of10 the neighboring counties as well.11

Councilman Jones

I appreciate12 that.13 By way of your master plan and14 relocation and construction of terminals,15 airports and people mover, in the kind of16 switch-around, where does that put the17 car rental? Are they impacted at all in18 this master plan?19

Mr. Gale

They are.20 Currently, the conceptual plan calls for21 what we refer to as a consolidated ground22 transportation facility that's located on23 the footprint where the car rental24 agencies are today, and that's envisioned25 349 4/12/11 - WHOLE - BILL 1101371 that that facility would be a multi-modal2 type facility. It not only will house3 car park for rental cars as well as4 additional Airport parking, but the5 people mover system that we referenced6 that would service all the different7 terminals would actually come right8 through that facility. So if you got9 off, let's say, at Terminal B, you would10 jump on the people mover system, and the11 people mover system would come right12 through the heart of this multi-modal13 ground transportation facility, which you14 could then connect, go downstairs, get a15 car, jump on the SEPTA bus, the SEPTA16 Airport line. That will be a hub of17 activity right there.18

Councilman Jones

Currently,19 all of those car rental facilities are in20 Philadelphia County, right?21

Mr. Gale

Correct.22

Councilman Jones

In your23 master plan, will they continue to be in24 Philadelphia County?25 350 4/12/11 - WHOLE - BILL 1101371

Mr. Gale

The ground2 transportation center shows the car3 rental facilities still on the4 Philadelphia County side right now.5

Councilman Jones

That's very6 important, because we receive revenue, a7 tax from that, and wanted to know if that8 was going to continue that way.9 Thank you -- one other10 question. We still have an Airport11 Advisory Committee, right?12

Mr. Gale

There was an Airport13 Advisory Board that was named by the14 Mayor last year.15

Councilman Jones

Last year?16 And could you provide us the names of the17 folk?18

Mr. Gale

Absolutely. We'll19 submit it to the Chair.20

Councilman Jones

Thank you21 very much, Madam Chair.22

Councilwoman Tasco

Thank you23 very much.24 The Chair recognizes25 351 4/12/11 - WHOLE - BILL 1101371 Councilwoman Brown.2

Councilwoman Brown

Thank you,3 Madam Chair.4 Good afternoon, gentlemen.5

Mr. Gale

Good afternoon.6

Councilwoman Brown

My comment7 and question will be brief. I want to8 first thank you for your willingness to9 sit down with Councilmembers one or two10 weeks ago to give us a thorough, detailed11 big picture of this enormous opportunity12 coming to the region, and know that we13 appreciate and will follow the progress.14 Secondly, I want to underscore15 all of the remarks, concerns, interests16 raised by Councilman Goode and how much17 that matters to so many of us here, and18 given the enormity of this project, we19 would hope that we could have regular20 updates, if you will, on how well you're21 faring around this continuing, some might22 call it concern, others will say issue,23 equity for disadvantaged businesses.24

Mr. Gale

Will do,25 352 4/12/11 - WHOLE - BILL 1101371 Councilwoman.2

Councilwoman Brown

Knowing3 full well that your contracts may not4 call for an annual review, but please5 provide that to us.6

Councilwoman Brown

And then8 lastly, if you look at the numbers our9 city -- well, your budget is 399 million10 and you're asking the City for a little11 over 25 percent of that. How does that12 figure compare with similarly situated13 cities? It gives me a perspective on14 where Philly sits compared to other like15 cities when it comes to local support.16

Mr. Becker

Tom Becker.17 When we look at other airports,18 we look more at metrics in terms of cost19 per enplanement as a competitive factor.20 We sit right in the middle of the top 3021 airports. In that term, at $10.41 per22 cost per enplanement. Likewise, in terms23 of domestic one-way fares, we're right at24 the median in the top 30 airports.25 353 4/12/11 - WHOLE - BILL 1101371 Now, in terms of the City, we2 have appropriations in Police, Fire. Our3 appropriations for the Division of4 Aviation is $155 million. There are5 appropriations in Finance for pensions6 and healthcare, debt service under the7 Sinking Fund, and Law Department, we have8 20 attorneys. Fleet Management, we have9 two garages that we fund.10 Every dollar generated at the11 Airport needs to stay to support that12 $399 million, and we like to point out is13 that there are no tax dollars, no General14 Fund dollars that come to support the15 Airport. It's all by landing fees and16 terminal rents and concession revenues --17

Councilwoman Brown

Okay.18

Mr. Becker

-- to support our19 operation.20

Councilwoman Brown

All right.21 I'm developing a growing interest in this22 area of transportation, particularly as23 it relates to sustainability, the24 environment, recycling, et cetera, et25 354 4/12/11 - WHOLE - BILL 1101371 cetera, et cetera. So it's not an2 interest where I've been in the past, but3 under the influence of my colleague here,4 Councilman Jones, I'm just taking a5 greater interest. I've been inspired, if6 you will.7 Secondly and lastly, if you had8 to look at one or two major achievements9 from this past year, what would they be?10

Mr. Gale

Well, certainly,11 Councilwoman, coming out of ten years12 worth of planning and close to an13 eight-year environmental review process,14 the culmination of our work with the FAA15 to reach a point in time now that the16 Capacity Enhancement Program can actually17 start to come to fruition, I don't -- I18 think that this is probably one of the19 most significant moments in PHL's20 history. We are not looking to make21 modifications that will help the Airport22 one year or two years. We're looking to23 actually create a premier multi-modal24 transportation facility, focusing on air25 355 4/12/11 - WHOLE - BILL 1101371 transportation, but that's going to serve2 this region for decades to come. And so3 I think that that's first and foremost.4 Beyond that, I think that the5 Airport has just continued on its mission6 of trying to provide the amenities and7 the services that our passengers want on8 a daily basis, whether it's air service,9 good concessions. Last summer -- and10 we're getting ready to run it again this11 summer -- was a customer service12 appreciation program called Just Plane13 Fun. We truly value the customers that14 come through the Airport. We are not15 going to take them for granted, and we're16 going to continue to do facility17 improvements that I talked about, the D/E18 expansion, a $300 million facility. That19 construction is nearing completion this20 year, and we're getting ready to start a21 $117 million expansion on Terminal F,22 again providing new amenities, baggage23 claim facilities, new security24 checkpoints, new concessions and whatnot,25 356 4/12/11 - WHOLE - BILL 1101371 to our traveling public. They deserve2 it. They find it at other locations, and3 I think it's incumbent upon us to4 actually make those improvements come to5 reality.6

Councilwoman Brown

Okay. All7 right. Well, thank you for that. The8 last comment I would make is, having the9 good fortune to travel other airports,10 aesthetics really do matter, and I11 appreciate Philadelphia leadership12 wrapping its arms around the display of13 art of all genres and all ages, and I14 would ask that you continue to do that.15 It really does add a very non-tangible16 experience, if you will, for those who17 are traveling, travelers. And to the18 extent that we can always feature19 Philadelphia artists who bring what they20 bring from various neighborhoods, it just21 makes it that much more enriching.22

Mr. Gale

Thank you,23 Councilwoman. And I would remiss if with24 my own Deputy Mayor sitting behind me25 357 4/12/11 - WHOLE - BILL 1101371 that if we didn't mention one of the2 largest art projects anywhere, our How3 Philly Moves mural that's going on the4 side of the garages as we speak to be the5 second largest mural in the United6 States, which will be completed near the7 end of this summer, which emanated out of8 the fine head of Deputy Mayor Cutler. So9 it's a project that's near and dear to10 our heart, but you are going to actually11 be able to see not only artwork as you12 walk through the Airport, so if you were13 just changing planes, you'll get a taste14 of Philadelphia and its artwork just15 going from plane to plane, but if you're16 on I-95, you're going to see How Philly17 Moves from the interstate as well.18

Councilwoman Brown

Brilliant.19 Thank you very much.20

Mr. Gale

Thank you,21 Councilwoman.22

Councilwoman Brown

Thank you,23 Madam Chair.24

Councilwoman Tasco

Well,25 358 4/12/11 - WHOLE - BILL 1101371 thank you very much. It's nice to hear2 about what's going to happen there. I3 just hope you'll get straight with4 Terminal F and the pickup. That has been5 a problem.6

Mr. Gale

One of the first7 things we're going to do, Councilwoman.8

Councilwoman Tasco

Okay.9 Thank you very much. Thank you.10 This Committee will stand in11 recess until Wednesday, April 13th at12 10:00.13 Thank you.14 (Committee of the Whole15 adjourned at 5:00 p.m.)16 - - -17 18 19 20 21 22 23 24 25 359 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on April 12, 2011, and that7 this is a true and correct transcript of same.8 9 10 11 12 --------------------13 MICHELE L. MURPHY14 RPR-Notary Public15 16 17 18 (The foregoing certification of this19 transcript does not apply to any reproduction20 of the same by any means, unless under the21 direct control and/or supervision of the22 certifying reporter.)23 24 25