COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE ON PUBLIC PROPERTY AND3 PUBLIC WORKS4 5 6 Room 400, City Hall7 Philadelphia, Pennsylvania Thursday, November 3, 20118 9:20 a.m. 9 10 PRESENT: COUNCILMAN DARRELL CLARKE, CHAIR11 COUNCILMAN FRANK DiCICCO COUNCILMAN WILLIAM K. GREENLEE12 COUNCILMAN JAMES KENNEY COUNCILMAN FRANK RIZZO, JR.13 14 BILL 110517 - An ordinance authorizing the15 Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a16 lease agreement with the Philadelphia Municipal Authority for a certain parcel of17 ground located at the Northeast Water Pollution Control Plant...18 19 - - -20 21 22 23 24 25 2 1
Good2 morning. This is the public hearing on3 Public Property and Public Works. This4 is a bill that was recessed from a prior5 hearing.6 Mr. Carter, will you please7 read the title of the bill.8
Bill No. 110517, an9 ordinance authorizing the Commissioner of10 Public Property, on behalf of the City of11 Philadelphia, to enter into a lease12 agreement with the Philadelphia Municipal13 Authority for a certain portion of a14 parcel of ground located at the Northeast15 Water Pollution Control Plant, 389916 Richmond Street, Philadelphia,17 Pennsylvania; all under certain terms and18 conditions.19
Thank you.20 The first witness. Maybe the21 first and only witness.22 (Witness approached witness23 table.)24 COMMISSIONER NEUKRUG: Good25 3 11/3/11 - PUBLIC PROPERTY - BILL 1105171 morning. My name is Howard Neukrug. I'm2 the Water Commissioner of the City of3 Philadelphia, and I'm pleased to be here4 in support of this bill and request that5 it be moved forward with suspension of6 the rules.7
Let the8 record reflect that Councilman Rizzo,9 Councilman Greenlee and Councilman10 DiCicco are present to clearly establish11 a quorum.12 In the earlier hearing, there13 were a couple of issues with respect to14 overage as it relates to construction15 costs and some issue about the credits as16 hopefully materializing from the federal17 government. Can you just briefly talk18 about that? And I understand that there19 will be an amendment in the Finance20 Committee, just for the record.21 COMMISSIONER NEUKRUG: Yes.22 And that's correct. I would like to23 commend Council and Council's staff for24 really understanding this very, very25 4 11/3/11 - PUBLIC PROPERTY - BILL 1105171 complex deal and taking a look at it and2 making sure that the deal is in the best3 interest of the City of Philadelphia.4 We've come to an amendment that5 I understand will be put forth today in6 City Council that will look at the cost7 overruns and put a cap on that, otherwise8 it will have to go back before City9 Council.10
Yes. I'm Barry15 Davis with the City's Law Department.16 We have worked very closely17 with Council offices with regard to18 amending the bill that was before the19 Finance Committee and it's now before20 Council, and as the Commissioner said, we21 expect that they will offer -- that22 Councilman Green and/or Councilman Kenney23 will offer an amendment to that bill24 today.25 5 11/3/11 - PUBLIC PROPERTY - BILL 1105171
Okay. I'll2 wait until the amendment is offered to3 ask for an explanation.4
So basically what9 the amendment will do is to identify a10 total cost for the project construction.11 It will then put a 10 percent cap on any12 cost overruns. It will limit those cost13 overruns specifically to change orders14 and a very limited category of change15 orders that would be allowable. So the16 way the cap works, it limits what could17 possibly be requested as a change order18 and then it puts a 10 percent cap on all19 of that, which would require that the20 Water Department return to Council to get21 further authorization for that additional22 amendment.23
Anything24 above 10, okay. And the credit?25 6 11/3/11 - PUBLIC PROPERTY - BILL 1105171
With regard to the2 tax credit, we worked through that quite3 a bit and I think that we came to an4 understanding about what the risk5 associated with that tax credit6 application is and which parties had7 assumed that risk, starting with the8 original request for proposals. It was9 in fact the City that had assumed that10 risk, and I think we reached agreement11 that to place that risk on the contractor12 was not appropriate in that they probably13 would have priced that risk into the14 overall project cost had they been asked15 to assume it.16
I do want to add18 that there is a requirement related to19 the tax grant that requires Ameresco to20 use its best efforts to assist both the21 bank and, by helping the bank, the City22 to maintain and achieve that eligibility23 for the tax grant.24
Okay.25 7 11/3/11 - PUBLIC PROPERTY - BILL 1105171 Thank you.2 Any questions of these3 witnesses by members of the Committee?4 (No response.)5
Let the6 record reflect that Councilman James7 Kenney is also at the Committee hearing.8 Anybody else to testify on this9 particular bill?10
Good morning,15 Chairman Clarke and other distinguished16 members of this Committee. My name is17 Jihad Ali. I'm here on behalf of the18 Contractors Roundtable, which is a group19 of African American subcontractors.20 In this bill, my concern at the21 last hearing was that did they submit an22 economic opportunity plan. During the23 last hearing, they submitted some24 paperwork, which really was a template25 8 11/3/11 - PUBLIC PROPERTY - BILL 1105171 for the economic opportunity plan. Mr.2 Chairman, have you received the economic3 opportunity plan?4
This Council, as you6 are well aware, Mr. Chairman, has gone7 through great lengths about transparency8 and inclusion. As Councilman Goode has9 pointed out on numerous occasions,10 there's a burden to be beared by anybody11 doing business with the City, and that12 means transparency and accountability and13 inclusion of economic benefits of that14 project.15 This company, Ameresco, and the16 contractor that they've selected, A&P,17 A&P I'm sure is a good AAA-rated company18 in terms of their ability to perform.19 The problem that we have as African20 Americans, if you look at the economic --21 the detailed reporting that has22 accompanied all the projects that A&P has23 participated in this year and the closing24 of this fiscal year, last year and the25 9 11/3/11 - PUBLIC PROPERTY - BILL 1105171 year before that, on every project when2 you look at the detailed report, the only3 beneficiary to the dollars that goes4 through their hands are Hispanic firms5 and white women. As an African American6 male, I have a problem with that, because7 our community is being impacted by the8 lack of inclusion on all these projects.9 Councilman Clarke and other10 members of this Committee, I know where11 you're all coming from. I support your12 leadership on this. So today I'm here to13 speak to the record, to speak in the14 record and to speak to the citizens15 that's looking at this on Channel 64 and16 Verizon and Comcast and the Internet.17 Because it's companies like A&P -- maybe18 they're not even aware that they're19 practicing financial discrimination,20 because if you're not inclusive of21 African American males in this city and22 you're saying, Well, I comply with the23 law, I have minorities, and their24 definition of minority is Hispanic firms25 10 11/3/11 - PUBLIC PROPERTY - BILL 1105171 or white women, there's a problem in2 that.3 So, Mr. Chairman, we need to at4 least correct that. We support your5 leadership. We know that you'll do the6 right thing. I'd like to see the7 economic opportunity plan whenever they8 submit it. The law required that they9 submit it at this time.10 Thank you.11
Thank you.12 I agree with you with respect13 to the plan. What we cannot do or I14 don't think we should, speaking from my15 perspective, is get into detailing the16 specific minorities. The equal17 opportunity plan that we ask for is18 traditionally dealing with minorities and19 WBEs, MBEs, and I don't know if we want20 to drill down to the level where we're21 going to outline what specific minority22 participant is in the or required in the23 equal opportunity plan, because as you24 know, we have a very diverse country and25 11 11/3/11 - PUBLIC PROPERTY - BILL 1105171 city.2 But I agree that the equal3 opportunity plan should be attached to4 either the Finance bill or the Public5 Property bill.6 I saw someone getting up to7 respond to that.8 (Witness approached witness9 table.)10
This is Barry Davis11 with the Law Department.12 Yes. The equal opportunity13 plan was attached to the Finance bill.14 It was approved by the Office of Economic15 Opportunity, as is required. It does16 have the solicitation and commitment17 forms that identify who the firms were18 who were solicited for subcontractor19 roles in this project, and that is a20 public record and is available.21
That was22 submitted in the public hearing in23 Finance?24
Because2 what was given to me last week was not an3 equal opportunity plan. It was just a4 template. It was from the Office of --5 Equal Opportunity's office. It basically6 laid out how you crafted --7
That is the current8 form that is being used by the Office of9 Economic Opportunity for the entire plan,10 and the appendices to that plan include11 the solicitation and commitment forms.12 So essentially that template lays out the13 obligations of the contractor. They14 wanted to make sure they had something15 that was very standard so that every16 project would be getting exactly the same17 kind of review and that what was required18 under the plan would be the same. So19 then what happens is, the solicitation20 commitment forms actually then form the21 rest of that document.22
Mr. Chairman,25 13 11/3/11 - PUBLIC PROPERTY - BILL 1105171 Counselor, are you saying that the2 solicitation commitment form, that A&P3 submitted one where they identified4 contractors that they've solicited?5
That's correct.6 And that is the -- I think it's Exhibit B7 to Bill 110518, as amended.8
Mr. Chairman, I would9 like to see a copy of that. Because,10 see, the fact of the matter, we can't say11 that we have transparency when things are12 not where the regulations call for them13 to be for the people to examine at the14 time at this hearing. So I would like,15 Mr. Chairman, if he can, to make16 available a copy of that solicitation and17 commitment form, because that is the18 smoking gun for the issues that I'm19 concerned about. And I understand where20 the position of this Council is on21 diversity, but as an African American22 male and I've made -- I said before, I'm23 not making any excuses for that. If I24 were -- when we had Mayor Rizzo, Mayor25 14 11/3/11 - PUBLIC PROPERTY - BILL 1105171 Rizzo was concerned about Italian2 Americans. When we had Mayor Green, he3 was concerned about Irish Americans. We4 have Mayor Rendell, he was concerned5 about Jewish Americans. Well, I don't6 know where this Mayor stands, but these7 are members of his Administration and it8 just doesn't appear that he stands on9 that issue. Now, it could be that people10 underneath of his Administration are not11 taking that as serious.12 I do have confidence in the13 Water Commissioner, Howard Neukrug. I do14 believe that he's a professional and that15 he will do the best of his ability, but16 where we have a lapse in leadership is17 OEO, and that's really what we need to18 see. We need to see those documents that19 prove the point that we're trying to20 outlay here today.21
I mean,24 this shouldn't be that difficult. If25 15 11/3/11 - PUBLIC PROPERTY - BILL 1105171 there was an attachment to the bill,2 we're next door to the Chief Clerk's3 Office. I'm assuming that it's --4
I also want to5 point out that it is available on6 Council's website. The amended bill is7 up and on the website and you can8 download that.9
Thank you16 so much for your testimony.17 Anyone else to testify on this18 bill?19 (No response.)20
There being21 none, this concludes the public hearing.22 We will now go into the public meeting.23 Councilman Kenney, can I please24 call for a motion on Bill No. 110517.25 16 11/3/11 - PUBLIC PROPERTY - BILL 1105171
Thank you,2 Mr. Chairman. I move that Bill No.3 110517 be reported out of the Committee4 with a favorable recommendation and a5 request made for rules suspension to6 allow for first reading at this day's7 Council session.8 (Duly seconded.)9
It's been10 moved and seconded.11 Those in favor?12 (Aye.)13
The ayes17 have it. Bill No. 110517 is reported out18 of this Committee with a favorable19 recommendation with rules suspension to20 allow reading at the next session of21 Council.22 Thank you very much. This23 concludes the public meeting.24 (Committee on Public Property25 17 11/3/11 - PUBLIC PROPERTY - BILL 1105171 and Public Works concluded at 9:30 a.m.)2 - - -3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 18 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 November 3, 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