COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING AND PUBLIC MEETING BEFORE COMMITTEE ON PUBLIC PROPERTY, PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, May 31, 2000 2:35 p.m. - - - RESOLUTION NO. 000375 - Approving the closed- circuit television system, design and installation services contract between the Pennsylvania Convention Center Authority ("Authority") and Advanced Electronics Solutions ("AES"). PRESENT: COUNCILMAN JAMES F. KENNEY, Vice Chair COUNCILMAN DARRELL L. CLARKE COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILWOMAN BLONDELL REYNOLDS BROWN - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2 5/31/00 - PUBLIC PROPERTY - RES. 000375 I N D E X Robert Butera, President. . . . . . . . . . . 3 Pennsylvania Convention Center Authority Grace Scott Jones . . . . . . . . . . . . . . 11 Vice President General Counsel Pennsylvania Convention Center Authority 3 5/31/00 - PUBLIC PROPERTY - RES. 000375 P R O C E E D I N G S
Good afternoon, ladies and gentlemen. This is the meeting of the Council Committee on Public Property and Public Works, and we're here to hear testimony on Resolution No. 375, which is a resolution 8 approving the closed-circuit television system design and installation services contract between the Pennsylvania Convention Center Authority ("Authority") and Advanced Electronics Solutions ("AES"). Who's ever going to testify, please approach the witness table, and state your name for the record and proceed with your testimony. (Witness comes forward.)
Good afternoon. I'm Robert Butera, B-U-T-E-R-A, President of the Pennsylvania Convention Center Authority.
I've circulated some written testimony, which I'll read, but let me preface it by saying we're here pursuant to the 4 5/31/00 - PUBLIC PROPERTY - RES. 000375 lease and service agreement, which runs between the City Council and the Convention Center Authority, which requires us to receive Councilmatic approval of expenditures in excess of 3 percent of our expense budget, which is approximately -- which amounts to approximately $500,000. Since this contract would be in excess of that, we seek your approval.
Mr. Butera, you don't have to read your testimony into the record. Do you want to just synopsize and --
Okay, certainly. We currently have an electronics circuit system of black and white cameras, 16 which are fed into three recorders, which are 17 placed in our command center, which is a 24-hour, 18 360-day, 5-day operation. Pursuant to a request 19 of our Board about a year ago, we were asked to 20 reassess our electronics system, where upon, we 21 engaged U.S. Security as a consultant, and U.S. 22 Security is compromised of former Secret Service 23 Officers, and they came in and did a survey, and Phase I to effectuate that survey is to upgrade our system. 5 5/31/00 - PUBLIC PROPERTY - RES. 000375 What is proposed is that we install 77 cameras to replace the 23, in color digital, which permits storage on all 77 cameras. So we would immediately increase our electronic capability by a hundredfold, so to speak. The technology has changed from seven years ago, and we want to take advantage of it. It's been highly recommended that we do so. The cost is just something less than $1 million. We explained the bidding process and the selection process, we did happen to select the lowest bidder by some $193,000. And we have a start and finish date as soon as we get approval. And, of course, we have a penalty clause if they fail to meet those dates. Times have changed, and we have to change with it. Your next question might be, Well how are you going to pay for this? and we have a renewal and replacement fund at the Convention Center, which currently is in excess of $4 million, which was created by the original bond issue. And it is from those funds that we would pay for this upgraded system, this renewal system.
Is there a time 6 5/31/00 - PUBLIC PROPERTY - RES. 000375 sensitivity vis-a-vis the RNC, or is this just the general --
Yes, but it would be -- we would like to have it certainly by then, because that's going to be a time of intense security arrangements, but that's not why we're doing. This was requested long before that was a consideration.
Theft. We haven't had any and, you know, it's kind of one of those things you cross your fingers. We haven't had any serious threats of bodily harm in our seven years of operation, but we have had theft from the exhibit hall floor, from meeting rooms, as well as the usual things that you find in cities, such as pickpockets and that sort of thing. But we went through a rash about two or three years ago of laptop computers from the exhibit hall floor, which were causing great consternation among our customers and their exhibitors. But also, it's the -- it's whatever threat is out there is -- we want to be prepared. 7 5/31/00 - PUBLIC PROPERTY - RES. 000375 In other words, we don't want to wait until something happens; we want to be prepared prior to it happening.
Are these cameras hidden in any way, or will they be clearly visible? I mean, is it --
We want some of them to be visible, because we want people who work in the building on a full-time or a casual basis to be aware that we do have a very sophisticated state-of-the-art system that records very clear television images in color and, all 77 cameras can be stored. For example, many of our doors are electronically signaled, as you would imagine. If an electronic signal goes on, these cameras automatically zero in on that door and focus in on that door. When you look at the grand hall coming in from the Marriott, that fence there is a security risk; we have to keep a guard there all night. We're suggesting an electronic system, 8 5/31/00 - PUBLIC PROPERTY - RES. 000375 which would be like an electric eye, that if someone does scale the fence, that person can be picked up by four cameras, and that will help to alleviate the fear of that risk.
Okay. Is there anything that you'd like to testify to or add to? You have to identify yourself if there's anything you want to say.
Mr. Butera, I have a question with respect to the company that's being recommended. In your arrangement with the City, you currently have -- the Authority has a lease and service agreement with the City. Does that require that you submit a certain participation plan?
So is that involved in the selection process -- 9 5/31/00 - PUBLIC PROPERTY - RES. 000375
Yes. I believe there's a summary -- I don't know if it was passed out, but there is a summary of the contract. If you turn to , affirmative action, I'll read. "AES will purchase all cabling through RPM, a certified MBE, and will subcontract with MJK Electrical Corporation, a certified MBE, to install all cabling and mounting of new equipment at a 37 percent participation level."
Thank you. Just a follow-up to Councilman Clarke's question. Who is RPM? What is the official name? Is that a acronym, RPM?
That is the name of the company. (Unidentified man responds off camera.)
Sir, I'm sorry. 10 5/31/00 - PUBLIC PROPERTY - RES. 000375 You're going to have to come up to the table if you want to give testimony and identify yourself for the record, please.
This is our consultant, Chris Ames, from U.S. Security. (Witness comes forward.)
RPM is a distributor of cabling and other components, and I do not have the information as to the address currently, but I do know that they were checked through the City Records, and they are certified with the City.
Okay. Also, MJK, is that the name, the official name of the company?
Okay. Who watches -- so all you do, really, is come in and set up the whole system, then someone else monitors it, watches the cameras, etc., and those 11 5/31/00 - PUBLIC PROPERTY - RES. 000375 are Convention Center employees?
Okay. So you 8 think someone would really be kind of angry to 9 climb the fence over that walkway. 10 (Laughter.) 11
Well, you never know, and 12 we want to be prepared, and we're just making a 13 tremendous leap forward, which will certainly help 14 us in all of our efforts, our marketing efforts 15 and others, if we can advise people that we're 16 this far in advance compared to our competition. 17
Okay, all right. 18 Thank you. 19 Thank you, Mr. Chairman. 20
Thank you, 23 Mr. Chairman. And good afternoon, Mr. Butera. 24
Miss Grace Scott 12 5/31/00 - PUBLIC PROPERTY - RES. 000375 Jones and the consultant. I didn't catch the name.
Ames, good afternoon. Mr. Butera and Miss Jones, we are always pleased to see the Convention Center Authority over, but it is a rare indication. So just for the record and kind of for educational purposes, why is it that you need our approval on this particular project?
The lease and service agreement provides that any contract which we have in excess of 3 percent of our expense budget, which is around 16 million, requires City Council approval by resolution.
In excess of 3 percent of 16 million, which is about 500,000.
Right, mm-hmm okay. And with regard to the resolution, it makes reference on, , in the last resolved 13 5/31/00 - PUBLIC PROPERTY - RES. 000375 clause, to an Exhibit A. Is that the contract summary information or. . . ?
Good afternoon. I'm Grace Scott Jones, Vice President and General Counsel. I believe that reference to Exhibit A refers to the actual contract itself, which I believe should be on file in the Clerk's Office. I sent over several copies to the Council President's office. It's bound in a binder, so it's pretty thick and I don't have it with me today.
I understand, okay. But that's the contract between the Convention Center Authority and would that be AES?
And then it makes reference, I'm assuming, to the various contractors that we've talked about?
Councilmember 14 5/31/00 - PUBLIC PROPERTY - RES. 000375 Brown.
Mr. Butera, please state again for the record the fund that will be used to cover this 900,000-plus dollars.
Oh, yes. When the Convention Center Authority was funded through a authority bond issue backed by the City, there was a sum of $3 million that was set aside for renewal and replacement, and that fund has grown over the years. It's been used occasionally for much smaller amounts than is called for in this resolution. And the fund is now in excess of $4 million through interest and other contributions.
And so even with that reserve that will cover these costs, you're still required to come before this body.
Yes. Even though we're not asking for funding, we still have to come by our interpretation of the agreement.
Oh, okay, thank you. 15 5/31/00 - PUBLIC PROPERTY - RES. 000375
Thank you, Mr. Chairman. Mr. Butera, my question is more so on the operation and the expansion of the system. You're going to be observing areas that have not presently been observed, correct?
Yes, or that have been observed by individuals rather than electronically.
Yes, public areas and areas that would be leased to customers.
Okay. My concern is the fact that since your expanding the surveillance at your facility that I would hope that your employees would be made aware of the areas that you're expanding the surveillance of so that there's no complaints about privacy or areas. You know, you hear about somebody installing a camera in a restroom, things like that, so I'm hoping that everyone's going to be 16 5/31/00 - PUBLIC PROPERTY - RES. 000375 communicated about that coverage.
That's a very good point. And what we'll do is to circulate plans of the building and show exactly where the cameras are. I'm very glad you mentioned that, as a matter of fact.
But are there truly -- I can see in private changing areas and things of that nature, but are there -- are there privacy issues when it comes to the convention floor? I mean, I don't know necessarily whether we'd want to advise potential thieves that we're putting cameras on them. I mean, I think part of the problem with the theft issue is catching people who are unaware that they're being watched. And I understand where Councilman Rizzo's coming from. I mean, issues of personal privacy and changing areas and things of that nature, absolutely, but on the convention floor, I don't know if I want them to know where the cameras are, frankly.
I was referring to the expansion, because I am sure they're already conditioned on what exists presently and sometimes 17 5/31/00 - PUBLIC PROPERTY - RES. 000375 just knowing -- I remember we put bogus cameras in school buses, and they were a deterrent in themselves. So sometimes knowing that you're being monitored would in itself be a deterrent.
Yeah. There will be no 7 cameras in any sensitive areas. However, I still understand your suggestion.
Thank you. Any other questions? (No further questions.)
Anyone else in the room to testify on this resolution? (No response.)
Hearing none, that will conclude our public hearing on Resolution No. 21 375. - - - 18 5/31/00 - PUBLIC PROPERTY - PUBLIC MEETING
The Chair recognizes Councilmember Brown for a motion to report Resolution No. 000375 out of this committee with a favorable recommendation.
Yes. I move to report Resolution No. 375 out of the committee with a favorable recommendation. (Duly seconded.)
It's been moved and seconded. All in favor. There are none opposed. (The resolution passes.)
Please let the record show that this committee was attended today by Councilmembers Brown, Nutter, Kenney, Miller, Clarke, and Rizzo. And that will conclude the business of this committee.
Thank you. (Adjourned at 2:55 p.m.) - - - 19 C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Wednesday, May 31, 2000, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS RESOLUTION NO. 000375 __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter