Two-way radio system, 22 Councilman. I can't speak about the Nextel system 23 telephones. I'm talking strictly two-way radio 24 systems. 25
So in '87 -- you're 281 3/6/01 - SCHOOL DISTRICT BUDGET talking about a system that's getting -- it's not old-old, but it's starting to age. I'm going to call the Managing Director as soon as this meeting is over because I was told something different than you just reported to me today.
That's fine. Let's go from communications to procurement.
While he comes up, I'll try to provide some additional backdrop here, which is kind of the way the School District sees the relationship with the City, and that too has evolved. I think we're now at a point where we're having -- we're -- I think more and more interact -- the City and the District interacting not as two, you know, complete -- as two strangers, as we sometimes did, but as siblings. And an example of that is that there is a fair amount of communication about a lot of these things with the Managing Director. And, as 282 3/6/01 - SCHOOL DISTRICT BUDGET Secretary Kahn noted, to some extent, it's been a matter of capacity, the ability to move on it. I mean, you talk about Fleet Management's initiative. You know, there's been active discussions about, you know police, is another one where it's kind of evolved but we're not there yet. So, you know, we're also very -- you know, we understand that there's -- that there's history that sometimes predates us and predates our roles, but our interest is in continuing to find opportunities. So, you know, if through this process or anything else, we can we can identify new things or move things forward, I mean, that's our interest. And I know you've mentioned the communications -- you've mentioned that one to me, and I've tried to find out -- I still -- I was interested in the answer too because I still don't know. But those are, you know, those are all things we're looking to do because they do add up as you say.
Well, I certainly -- I appreciate that and I appreciate this new 283 3/6/01 - SCHOOL DISTRICT BUDGET review, this new approach to try to deal with these things but, you know, it gets very frustrating sitting here, and I assume where you sit, even more so, to hear the same questions asked, the same answer, and then zip happens. So I'd like to hear about what doing to consolidate the procurement operation.
My name is Tom McGlinchey, and I'm the Chief Operating Officer for the School District, and excuse my back, Councilman.
In June, I believe, of 2000, or nine months ago, the Mayor convened a task force to look at the possible combination of services with the School District and the City in an effort to streamline the operations as well as save money. At that initial meeting, we identified several areas of immediate interest and other areas that we would pursue at a later date. The areas that were identified for immediate attention were Fleet Management, Procurement, Risk 284 3/6/01 - SCHOOL DISTRICT BUDGET Management, and Information Technology. Of course, after June of 2000, the Managing Director and the City were involved with, number one, the negotiations with their own labor unions, and then following that, the Republican Convention. So the work of that committee was somewhat delayed. The District did provide the Managing Director's Office, as requested at the initial meeting, with key people in the various departments that were going to be scrutinized, key contact folks that, when the effort got underway, that the City and the School District would have the particular teams identified. Our first look, and that just started recently, has been with Fleet Management. The Managing Director, myself, the CEO, Mr. Goldsmith met, I believe, a couple of months ago and I have since met with Mr. Martz as well as Riley Harrison, the Fleet Manager for the City. Our own transportation director and me accompanied Mr. Harrison on a tour of his facilities and met with his management team to discuss the potential combination of services. 285 3/6/01 - SCHOOL DISTRICT BUDGET We have not at this date actively pursued the other three areas. However, it is our intention to pursue them with the City.
Thank you. In all due respect to the School District, Lou Applebaum told me that there's some things you even do better in the area of procurement than the Procurement Department.
Well, I think the Managing Director made a point at the initial meeting that it may be that this process identifies areas where the City can benefit as well as the School District. So that was the focus of the Managing Director's Office was to look at what we can benefit in the process.
Let me just say one thing, and I'm all for this effort, I'm behind it, I support it, and I will do my best to implement it. 286 3/6/01 - SCHOOL DISTRICT BUDGET The one thing that scares me is that we combine things that neither of us do very well, and we've got to be very careful of what we decide to focus on that one of us, you know, does very well and we're really adding some value-added expertise as well as cost savings. But more importantly than simply the cost is that we're adding value, and I just don't want to us rush to do something which we're both strained to do right now particularly well. And the Managing Director and I have talked about that and I think we're on board. We think Fleet Management is a good one to go to. I think Risk Management is another good one to go to, where we have some needs, and from what I understand, particularly on Risk Management, the City does a nice job with it. I have no proprietary interest in holding on to something at all. I want to shed things so we can focus on what our mission is. And that's the responsibility of the person to the right of me, and that's educating students. So philosophically and every which way we're ready to go, we just have to make sure we pick our spots, don't bite off more than we can 287 3/6/01 - SCHOOL DISTRICT BUDGET chew, and get the job done.
Mr. Goldsmith, I think your remarks are right on target. Can you tell us how many vehicles you have in your fleet, how many automobiles?
We have approximately 400 non-bus vehicles that would be maintenance vans, utility-type vehicles and sedans for supervisory staff in both the facilities and the Transportation Department. We also have a fleet of -- I'm going to look to John Lombard. It's 450 non-bus vehicles that I just described and 650 school buses.
And if we were to consolidate, my question is, who would pay?
Well, I suspect that consolidation with the City in terms of the maintenance of the fleet would be at a cost to the 288 3/6/01 - SCHOOL DISTRICT BUDGET District for the service provided. We did not talk about the maintenance of the bus fleet, we were really focusing on the -- talk about the potential service of the non-bus fleet. And certainly, the City doesn't want to get into scheduling buses, school buses.
We can start clipping coupons for Jiffy Lube from the Sunday paper. What I would appreciate, Mr. McGlinchey, I had a minute to reflect on the statement that Mr. Lombardo made about the frequencies. I'm starting to recollect that -- these are two different issues. The frequencies at one time, I believe, were necessary to try to accomplish the entire build-out of the new 289 3/6/01 - SCHOOL DISTRICT BUDGET communications system, and I think that there was a need because of the, at the time, the technology, but I think the engineers developed a way to split some frequencies and do some things, some innovative things to give the City. But I don't think it suggested that there still wasn't an interest in, as you go forward, rather than to go continue to maintain an antiquated radio system, to start your migration towards coming on to this new system. And in the last conversation I had with the Managing Director, he thought that you were a obvious customer for the system. And I'm going to talk to him, like I mentioned shortly after. But I would appreciate you initiating the call if he doesn't call you. And, again, I'm not suggesting that you just throw everything you have away on this free system that you have that doesn't cost you any money to operate, that going forward, that based on a system that's 1987 vintage, that we start maybe putting those 450 non-bus vehicles that have two-way radios, as those radios break, onto the new system. I know that's complicated, but I 290 3/6/01 - SCHOOL DISTRICT BUDGET would hate to see you here ten years from now saying that you need $50 million to buy a new radio system for the School District, when in fact, we have a system that is going to be the state-of-the-art, not just nationally internationally, for its design. I'd like to see you start planning to come aboard that system rather than just saying, Well, there's no interest they didn't need our frequencies, it doesn't cost as much to operate. I think you'd be really surprised on what that system costs you to operate or when a radio breaks and you have to buy a new one to replace it. So I think there's an opportunity here, and I would appreciate you exploring that. And as a matter of fact, I'm going to ask the Managing Director to make sure that that conversation occurs.
I'd be happy to talk to Mr. Martz about that. I should mention to you that we did have two-way radios in non-bus vehicles, and we removed them in favor of the better technology that exists right now, in particular the two-way 291 3/6/01 - SCHOOL DISTRICT BUDGET phones and Nextel phones. And the advantage there is that once you get out of the car if you have a two-way radio in the car, unless it's portable you're stuck, and our radios weren't portable. And with the system we use now, we can get in touch with anybody at the click of a button, no 8 matter where they are.
And the new radios that the Police Department and the other municipal departments have will also be removable from the vehicle to be portable. So I think you really need to be what is available to be demoed, what's available because I'm sure that to be dependent on a private carrier isn't bad, but I don't think it's the most desirable thing. And not to belabor this, I would appreciate you revisiting that issue to see what opportunities you may have. Again, this is the part that frustrates me, to hear that all of this is going on right now and the School District was satisfied with being told that, you know, there's no interest, and I don't believe that's accurate, and I'm not challenging what was said earlier, but I believe there's obviously some confusion here in 292 3/6/01 - SCHOOL DISTRICT BUDGET what the interest and what the interest may not be, okay? Thank you, Madam Chair.
Thank you. Are there any other questions from members of the committee? (No further questions.)
Seeing none, this committee will stand in recess until 10 a.m. tomorrow. Thank you. (Adjourned 5:10 p.m.) 293 C E R T I F I C A T E WE HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Tuesday, March 6, 2001, were reported fully and accurately by us, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE OF THE WHOLE BILLS NO. 010001, 12, 13 __________________________________, MAUREEN BRODERICK, Registered Professional Reporter __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter