1888 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE OF THE WHOLE FY '03 OPERATING BUDGET - - - Room 401, City Hall Philadelphia, Pennsylvania March 11, 2002 10:00 a.m. - - - BILL 020001 - An Ordinance adopting the Operating Budget for Fiscal Year 2003. PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK J. DI CICCO COUNCILMAN WILSON W. GOODE, JR. COUNCILMAN JAMES F. KENNEY COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN W. THACHER LONGSTRETH COUNCILMAN RICHARD T. MARIANO COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILMAN ANGEL L. ORTIZ COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN B. TASCO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 (215) 561-2220 1889 BILL 020001 PAGE FIRST JUDICIAL DISTRICT JOSEPH DIPRIMIO, Court Administrator ......... 1890 KEVIN CROSS, Deputy Court Administrator ...... 1890 FREDERICA MASSIAH-JACKSON, President Judge ... 1897 SHERIFF'S OFFICE JOHN GREEN, Sheriff .......................... 1945 CLERK OF QUARTER SESSIONS VIVIAN T. MILLER, Clerk of Quarter Sessions .. 1957 JUDGE MASSIAH-JACKSON, President Judge ....... 1990 REGISTER OF WILLS RONALD DONATUCCI, Register of Wills .......... 1960 CITY COMMISSIONERS OFFICE MARGARET M. TARTAGLIONE, Chairwoman .......... 1970 BOB LEE ...................................... 1975 CITY CONTROLLER TONY RADWANSKI, Deputy City Controller ....... 1992 BOARD OF REVISION OF TAXES DAVID GLANCEY, Chairman ...................... 2008 1890 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
Good morning, everyone. This is a continued public hearing of the Committee of the Whole regarding Bill No. 020001. Mr. McPherson, who is the first to testify?
May it please Council, good morning. My name is Joseph DiPrimio. I'm the Court Administrator for the First Judicial District of Pennsylvania. With me today is President Judge Frederica A. Massiah-Jackson who's been elected by her peers and who also serves by appointment of the Supreme Court as the Chair of the Administrative Governing Board. That is the agency or board, if you will, that determines policy for the First Judicial District. Seated to my left is Kevin Cross. Mr. Cross is the Budget and Finance Deputy Court Administrator for the District. With the leave of Council, Mr. Cross will present the testimony and supporting documents on behalf of our budgetary request for Fiscal 'O3.
Good morning. I'm Kevin Cross, Deputy Court Administrator for Financial 1891 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) Services for the First Judicial District. The First Judicial District submitted a budget request of $114 million. The City's proposed funding level was about $110 million or a difference of $4 million. 5 million and additional monies sought by the First Judicial District for counsel fees. 5 million for counsel fees. The First Judicial District will make every effort to increase its counsel fees to meet that additional appropriation. 5 million reduction in Class 100 that puts the First Judicial District in a very negative situation. That, coupled with increase in First Judicial District positions for judicial staff and increase in a transfer of grant funded positions to the General Fund, is going to cost the First Judicial District about $2 million a year. So when we take a percent reduction and then increase our position levels, we are very negatively impacted. Our position levels currently are low, and at the end of the last fiscal year, we're 1892 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) probably the lowest in years, maybe even years. We need that flexibility within our budget so when we have judicial vacancies we can fill those vacancies when new judges come on. And from July through November, we had new judges come on the 7 bench, and that resulted in about 30 additional 8 positions being brought onto the First Judicial 9 District. 10 We noted that other City agencies have 11 also received -- criminal justice partners have received increases in their budgets as a result of increases in crime and filings. Those agencies may be the District Attorney's Office, the prisons, the police and the Defenders Association. While they're receiving increases, the First Judicial District is receiving a net decrease and our case loads are up also. Our case loads are up 46 percent in Municipal Court in criminal filings. Our dependency filings in Family Court are up 31 percent. In Traffic Court, our disposition rates are up 83 percent, and the criminal trial divisions are 10 percent and civil filings, while they remain flat, the inventory has been reduced so we're reducing the time that our cases take to a come to trial. 1893 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) The First Judicial District has also expanded its court operations and provide more specialized court functions. We now have a Commerce Court and a Community Court. We have a Complex Litigation Center. We provide Treatment Court and Drug Court. We have an Eagles Court. We have a Drag Racing Court, a Vehicle Overweight Court, and a Boot and Tow Court. So our services have become more specifically defined as the needs of the people who bring things to the court have changed. So we're providing more services as needed. Also, the First Judicial District is generating much more revenue in the past four years than it has. Our prothonotary revenue is up about 15 percent since 1996, gone from about 13 million to 15 million. 3 million, and that doesn't include the impact of the new Live Stop Program which will start in July or June. The First Judicial District anticipates turning over about $600,000 from a State grant for the senior judge reimbursement. Then there's also increases in reimbursements from DPW and DHS for Family Court cases under Title 4A and Act 148. So 1894 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) the First Judicial District has done everything it can to increase revenue throughout as a reimbursement back for its costs. The First Judicial District has been fortunate to have the Court Improvement Account but has used that account in a way to facilitate renovations, increase courtroom technology, and provide automation and training enhancements. We're currently working on a jury assembly room which will reduce foot traffic in the CJC and reduce juror stress from sending them from one building to another.
It will allow all our civil cases -- the jurors will be used for our civil cases in City Hall. In terms of courtroom technology, we're looking to provide multimedia evidence presentation. Over the weekend I saw something on TV about a case in Atlanta, and you look on the defendant's desk and the attorney's desk and the DA's desk, and they both have computer monitors on the tables. That's the kind of technology that courtroom activities need these days. We need to be able to provide evidence presentation to jurors, to the judge, and that's the kind of technology that the attorneys who bring 1895 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) cases to the court want and are looking for the court to provide. Our automation and technology enhancements include an upgrade in our infrastructure for our network and a criminal case management system. The criminal case management system will allow us to track our cases better, provide the information as needed to the public and to the press and whomever, and the network infrastructure upgrade is a result of changing technologies in our platform for management of our e-mail system and linking all of your courts together. 5 million, we presented a proposal to the Bar Association last year that proposed increase in counsel fees by $3 million. 5 million will provide the court the ability to increase counsel fees in courts where they are definitely needed. Those areas are in Family Court and in the Criminal Court. That concludes my summary of our testimony at this time. And if you have any questions, we'll be glad to answer them.
Thank you very 1896 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) much, Mr. Cross. Did the Administration indicate to you why they were altering the zero growth budget agreement and reducing your Class 100 requirements by 1.5? Further, is it your position that in order to restore the zero growth agreement, you need an additional $2.5 million in Class 100?
That's correct. This goes back to the current fiscal year that we're in. The Administration asked us to take a 1.5 percent reduction. We obliged on a one-year basis, and even in our budget cover letter submission we said that this should be a one-year reduction because we knew that we were going to have the reductions, the loss of grant funds for 35 employees, and we also knew that we were going to have increases in judicial staff and this money was going to be needed. So we wanted a one-year, one-time reduction, and we did not want this to be extended into Fiscal Year '03.
I see that the Administration has recommended an additional $1.5 million for attorney fees. Well, this is short of the amount of $3 million. Will you able to phase in 1897 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) the fees increases with this amount? I recall last year this was a very sticky point. And actually, if my memory serves me correctly, you did not get anything at all for the attorney fees. JUDGE MASSIAH-JACKSON: That's correct, Madam President. I'd like to respond to your question, if I may.
Please. JUDGE MASSIAH-JACKSON: Because as you know, last year we were joined at this table by Carl Primavera, the Then Chancellor of the Bar Association, and by representatives of the Family Division, their special committee, as well as their Criminal Justice Committee. And the Bar Association joined with First Judicial District last year at this time requesting the $3 million additional for counsel fees. And while we're certainly appreciative of the Administration's adding 1.5 million and after a great campaign by the FJD, if you will, we must have adequate funding which is reasonably necessary for the operation of the court. And we need the full $3 million. The dependent children in Family Court 1898 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) are those children and families who are abused, neglected, abandoned, truant or ungovernable. And we find that in Family Court, the counsel fees are a statutory right. In the Criminal Courts, counsel fees are a Constitutional right. And in order for us to fulfill our obligations by statute and pursuant to the Constitution, we believe that we must have that $3 million. Certainly, with the 1.5 million over and above the 7.6, we can commence a phase-in. But the advocacy groups that represent the children in the Family Court as well as the Bar Association itself recognize that the phase-in is still too little, and we are actively seeking the full 3 million. Dependency Court has 11,000 open cases with 2400 new cases each year. A substantial percentage of those cases remain open longer than two years. As we sit here today, the First Judicial District pays attorneys only for two years. They need to be paid for a longer period of time and at a higher rate. The advocacy groups have recommended an hourly rate for those attorneys. And we're not opposed to that, however, we will not be able to 1899 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) fulfill that request at the $1.5 million level that's been proposed by the Administration. The Criminal Justice Section has already discussed with me the outlines of a plan for what we call the second chair in capital homicide cases. As you know, Philadelphia has a tremendously high rate of defendants where the death penalty is in fact imposed, a higher rate than any other part of the State. And we believe that we can work with the Criminal Justice Section to develop that second chair which is a second attorney to help with the sentencing aspect.
Can you tell me how many of your employees will be eligible for the DROP Program?
We have that information, but I don't have it with me. We will provide it for you at our earliest convenience.
That would be during the course of Fiscal Year '03, that is correct. 1900 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
Mr. Cross, you mentioned in your testimony about the Drag Racing Court and Traffic Court. How frequently do we have the Drag Racing Court?
I think what happens is when a number of cases are assigned to that courtroom, then the judge holds that particular court. So they will go out and ticket on a weekend or something like that and then assign them to the courtroom on a specific day. So it doesn't appear on a regular basis, but periodically. Maybe once a month.
I know that last year I think they -- I know we have a terrible, terrible problem with drag racing in the Eastwick Section around 60th and 63rd Street, and it was my understanding that the police would actually take the violators into the 12th District, give them a ticket with a date specific for the trial.
Now, they would go to Traffic Court, would they not?
Your office doesn't have anything to do with Traffic Court? 1901 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
Traffic Court is part of the First Judicial District. Our Administrative Judge Fred Perry worked in cooperation with the Police Department in establishing the Drag Racing Court. As a matter of fact, other states around the country have solicited input from Judge Perry, including as far away as Hawaii. They're looking at the Drag Racing Court as a model program. Madam President, illustrated is one the reasons why it's so efficient, is that at the time of the arrest, the accused drag racer is actually given a subpoena for court appearance. And that level of personal service enables the court to assure that the defendant will appear. And if the defendant fails to appear under the statute, the judge is allowed to enter a default order and collect the fine against the defendant which would include suspension of the license. So that program has worked very, very well.
I see that other Members would like to ask, I'm sure, several questions. I see that our Budget Director is here and, your Honor, I would like to ask you and your people to meet with Mr. Dubow and get back to us 1902 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) before we adopt our budget. I'm truly concerned about your Class 100 requirements and the Administration's position on the continuance of the zero growth budget. Mr. Dubow, would you please get together with the judge and her people regarding this issue?
Thank you. The Chair recognizes Councilman Ortiz.
Thank you, Madam President. Good morning. I'm interested more -- and I'll begin with the Trial Division. How many judges are currently in the Criminal Trial Division of Common Pleas? JUDGE MASSIAH-JACKSON: Councilman, I don't know the exact number, but it's approximately 50 judges total on criminal and civil. The Trial Division is both criminal and civil. It might be a few more than that because Family Court, about or 23 26 judges. Orphans Court is three judges. So we 24 have about 60 maybe. 25
It says in your 1903 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) testimony that that the cases in Municipal Court alone has an increase in new criminal case filing from '96 through 2001 in excess of 49 percent. JUDGE MASSIAH-JACKSON: What page are you on?
. Do you have the disposition rate of these cases in Municipal Court, the percentage of those that have gone on to trial in Common Pleas?
While our cases have gone up, our adjudications have gone up also. So we've actually been able to keep our inventory relatively flat. Our ending inventory is slightly higher because of the number of increases in new cases received. Our new cases received has gone up from about 14,600 to over 16,000. And our adjudications have gone up from 15,300 to 17,400.
When you say adjudication, can you explain that in terms of how many have been dismissed and how many have been settled in Municipal Court and how many have gone on to trial in the Common Pleas Division. JUDGE MASSIAH-JACKSON: We may not have those exact figures here, but we have those on a 1904 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) computer printout because an adjudication includes guilties, not guilties, pleas, dismissals because one side or the other has failed to appear. It can include a variety of --
Well, I would like to see, because we hear constantly from community groups and everywhere else, and I'm sure you've heard this, we have a revolving judicial door. And usually it isn't the District Attorney or the lack of prosectorial skill that comes into question, because you don't attend drug marches and drug vigils and so on. So it is the judge's decision-making ability that really comes into play. And it is bad judges, it is soft judges, it is judges easy on criminals and pro-criminal judges. And according to some individuals in the political process, as we know, Philadelphia bounds with judges who are soft on criminals. So I'd like to get a clear perspective really of the Municipal Court criminal case load as it comes in, the adjudication of that, how many are pled at the Municipal Court level, how many are totally found guilty at the municipal level, and then what sentencing if any occurs, and what percentage are dismissed, and what 1905 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) percent really goes on to trial at Common Pleas. And if you have any numbers or any opinion about that and whether we have dismissed more because we're making corner drug arrests -- and those really are not arrested are for jail time, many of them, because then we would have jails that are overflowing, which we do. So I'd like to hear from you, one, let's begin with the municipal level stage as to the criminal and how many are drug related and aggravated assault type situation. JUDGE MASSIAH-JACKSON: We can certainly get that information for you, Councilman. As you know, at the Municipal Court level, that court tries only misdemeanor cases.
Excuse me? I didn't hear that. JUDGE MASSIAH-JACKSON: Municipal Court has full trials only on misdemeanor cases. But the cases that are held for court to Common Pleas Court or to a higher level, and we certainly track the flow of MC cases that go into Common Pleas and we can get that information.
I would like to see how that tracking breaks out and how many have been 1906 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) pled, how many have been totally dismissed out of the total that are brought. And in terms of your Common Pleas case load, you said you had -- what do you mean when you say you had an inventory reduction of percent on 7 ? 8
That would mean that we are disposing more cases then we're bringing in and that our total inventory is being reduced by that amount.
And you're doing that despite a claim here, despite a 10 percent increase in new filings?
Councilman, the new filings, the triage of the case processing is what's resulting in the reduction of the cases.
From the time of arrest, a defendant is given a photo ID number by the Police Department. That becomes that defendant's DNA, if you will. The case then moves through the system at the district level, then at police level, at the Municipal Court level where a number of charges are preliminarily heard. Some of those charges, as you 1907 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) referenced, are dismissed. I can tell you -- and I don't have the statistics here. We will provide them to you and Council. But the largest reason for the dismissals are for failure to make a prima facie case. And the second largest reason is dismissal for lack of prosecution or for lack of appearance of a Commonwealth witness. Our information is that there's at least three preliminary hearings occur to give the Commonwealth the chance to bring in the witness or the victim before the case is dismissed. Even after a dismissal, the Commonwealth can re-arrest if necessary. That is a very frustrating problem to the court as well. I know it's something that the media has been making a hay about it. But as these cases go through Municipal Court and they are reduced or pled out or adjudicated, then if a case is held for court, that means that the case is ready for a trial to Trial Division level, then the case is assigned a Common Pleas Court number, and it goes through the next level, if you will, of adjudication.
You state in the same page that the judges, the assigned judges adjudicated in excess of 17,000 felony grade cases. 1908 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) That is for the Year 2001? JUDGE MASSIAH-JACKSON: Yes, Calendar Year 2001.
Again, I'd like to see a breakdown of those cases that were adjudicated.
I'd like to see how many were pleaded out, how many were found guilty.
Same report from Trial Division as Common Pleas as you want from Municipal Court?
Right. Drugs, aggravated assault. How many of these 17,000 constituted jail time? And in terms of drugs, whether the individuals were found guilty and received jail time or found guilty and were put out on probation or given whatever it is, time. JUDGE MASSIAH-JACKSON: Sure. And, Councilman, you're aware, of course, that many of the drug cases involve mandatory sentencing? 1909 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
I understand that. JUDGE MASSIAH-JACKSON: We have all of that information.
That's much better than before. Let me tell you something, we've been trying to get that type of information for a long time. JUDGE MASSIAH-JACKSON: Well, we have an excellent court administrator who keeps us on top of all of that detail.
Well, the DA kept saying that they don't have computers so that they cannot give us that type of breakdown. And I just want to see if your breakdown conforms to theirs if they have it. JUDGE MASSIAH-JACKSON: We have it.
If they have it, because they will refer us back to you probably to see. They seem to have very bad problems keeping records. And if there are mandatory sentencing, Madam President, I'd like to see that annotated somehow. JUDGE MASSIAH-JACKSON: I'm not sure if 1910 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) we can identify the ones that have mandatory, but we can certainly tell you what the sentence was for every disposition of every case in Year 2001. I can do that.
I appreciate that. On , what's a "bring down"? "... a decrease in the daily number of cancelled inmate trial 'bring downs'..." JUDGE MASSIAH-JACKSON: When the sheriffs bring the defendants to CJC.
And give me a sense of what was the experience before. It says, "As a result --" JUDGE MASSIAH-JACKSON: It's anticipated. It hasn't started yet.
So it hasn't happened yet? JUDGE MASSIAH-JACKSON: Not yet. And certainly, we are hoping that the sheriffs will cooperate with the First Judicial District. I did see some of them come in. I'm sure they're listening.
Thank you, Madam Chair. 1911 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
You're welcome. The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. I've been concerned for sometime and, in fact, I contacted my colleagues with some background information. Councilman Ortiz asked about some of it, I believe, even though I was distracted, with regard to preliminary and misdemeanor cases being taken out of our neighborhoods. Madam President, that's a real, real serious issue because having people come to Center City to the CJC and many times riding the same transportation as the accusers, both sides of the issue, creates problems. And certainly in the last month or so, we've seen articles in the paper that talk about problems that are occurring at CJC, and we believe it is due to this overload because of preliminary and misdemeanor cases being referred there. So we have a serious problem. I understand and have been told certainly by Judge McCaffery that he believes the backlog will go down. But my question is, will not 1912 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) the quality of life in neighborhoods also go down? And the point of having it take place in neighborhoods is to increase the quality of life. Madam President Judge, I'm wondering if you could ask when Judge McCaffery is back if he could come to testify, number one, to talk about this issue with our Committee. And number two, there was an article in the paper last week by former AJ Blasi who states that $17 million was saved by having these cases in neighborhoods, which we now run the risk of losing because they're all in Center City. Having said that, I understand that the District Attorney has other information. Now, we will see her next week, and she thinks that because we have drug cases in one room that that will help and because hearsay evidence is permitted that will help. But my contention is that I don't think that that will solve the problem of us losing quality of life issues. So I'm wondering, number one, if you would ask Judge McCaffery to come before us on an agreed-upon day when we have call-backs. And number two, if you have any indication -- I've talked with victim witness officers across the City who complain about this issue, who talk about 1913 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) seniors who can't come into town, and who talk about problems. I've also talked to judges, who will remain anonymous, who have even dismissed cases in their courtrooms at CJC because they can't wait all day for people to get in the building. Now, I don't know if you have received any such information, but certainly I would appreciate any help you can give us to have the issue explored on the grounds of here at our Council Sessions and just anything you can do to help us in this regard. We really, really take our responsibility to service our constituents, it's a real sacred obligation. I'm really, really upset about this issue of not being able to have people have court in their neighborhoods. Thanks.
Councilwoman Blackwell, for the record, I agree with you. The number of 17 million, I remember because I was involved with Judge Blasi, was a cooperative figure that was reached with Former Managing Director Joe Martz. He brought it to Judge Blasi's attention. I was part of that negotiation, and I can tell you it worked. I'm sure Judge McCaffery has his reasons for bringing the cases back to the Criminal Justice Center, and I suspect he'd be very anxious to tell 1914 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) Council those reasons.
Thank you. And in all fairness, I spoke with Judge McCaffery as soon as I learned about this and traced it and found out it was his decision. And he said he would be glad to come out to my neighborhood and to talk with neighborhood groups about it. But basically, his mind was kind of made up and he said he had already done it. And certainly, I think he's done a great job. I read about all that he does with Eagles and in South Philly with all the quality of life issues that happen there. But in terms of the area I represent, this is just -- it's really, really an issue that will hurt us for some time to come. JUDGE MASSIAH-JACKSON: Well, Councilwoman Blackwell and Madam President, this issue of the hearsay is part of this whole picture and that will affect some of the questions that Councilman Ortiz raised earlier. That is, cases that might normally be thrown out, if you will, at the Municipal Court level because after several listings the complaining witness fails to appear for whatever they choose not to pursue a case, those cases now with that hearsay rule, if you will, will 1915 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) automatically make those cases held for trial at our Common Pleas level. And so the cases that you're talking about at Municipal Court are being held for trial, they're being pushed up to our Common Pleas level. And now I'm wearing a hat of President Judge of Common Pleas Court, and I say that it's going to have a significant impact. Several thousand cases.
Well, the result is that the new Administrative Judge James Fitzgerald has determined that he needs to open three more courtrooms to accommodate the increased case load that will now be moving over to Court of Common Pleas. That not only has an impact on the First Judicial District and its staffing of those rooms, it's going to have an impact on the Criminal Justice Center, the District Attorneys. We met with them. They're going to have to staff the room. And I understand the Public Defender is going to be seeking additional appropriations so that they can hire additional staff to cover those rooms as well. It's a circular type of thing. But it also harkens back to what Councilman Ortiz said, and that is, if these cases are dismissed for want of prosecution at the preliminary stage, then some groups, for 1916 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) example, the media says that it's a blowout when in fact it isn't a blowout.
May I, Madam President? And the thing is that when it is done for lack of prosecution, it is something that the people don't know, the people in the neighborhood. So the guy or the woman is out there the next day and they figure, Well, there goes that judge again; there goes that court system again. And it's because of lack of prosecution. And I'd like to find out, really have a real good number on that. JUDGE MASSIAH-JACKSON: Those numbers will get fuzzy starting now in 2002 as cases are held for trial based on a hearsay rule where no live witness comes to court or just based --
And all that will do is keep that case in the system. JUDGE MASSIAH-JACKSON: In the system. And it need not be in the system.
But that's a judicial way for the District Attorney to maintain a high case load -- well, actually -- JUDGE MASSIAH-JACKSON: Well, I can't 1917 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) speak for the District Attorney.
In fact, I contacted the District Attorney who wrote me a letter saying -- a copy of a letter requesting that we have another entrance to CJC. Now, that might be great at some point sometime, but certainly we don't have an entrance that works at CJC. Any morning you ride by there, you see people lined up. And as I said, I've heard judges who just can't wait all day before people can come before them. This is one time, Madam President, I wish I were a lawyer because I'm really at a disadvantage to get into all the nuances to I really help -- (Inaudible. Speaker not on mike.)
Thank you. Honestly, I really need your help because it is very difficulty -- and that was a good point Councilman Ortiz just made about crime being right back in neighborhoods the next day. In fact, another court we have is Night Court that we love in our district. We had Night Court Friday night. And Night Court is the most immediate turnaround in neighborhood crime that I know because, obviously, we don't advertise, but the community groups, town watch groups, the 1918 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) hard hats were all there. And that Friday, people are picked up who are suspected of gambling on the sidewalk, loitering, riding dirt bikes down public streets. All of these crimes that affect people every day, we deal with at night court. I mean, neighborhood court is very, very, very important. I would appreciate your help if there is some information that in your legal mind or Councilman Ortiz and Councilman Cohen, in your legal minds that we could request to help explain this. Perhaps, Madam President, we should -- I did send some testimony to the Police Department because as Judge Blasi says it saves $17 million, the DA said that the equivalent of having crime at the CJC would be the equivalent of hiring more 17 officers. Now, I don't know how you -- of course 18 that would in no way compare. I mean, that would be 19 maybe $700,000 or something. But it's really 20 difficult when you hear one whole set of testimony and something completely opposing it. But I know what I see. When we're out there in our neighborhoods every day, we know when people are suffering, and we know what this means. So although I need my colleagues to help legally explain it, I 1919 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) know that having crime in Center City and not in divisional courts is a severe deterrent to the quality of life in neighborhoods. And we appreciate your help.
Madam President, if I may add to Councilwoman Blackwell's statement. Over the last three years, two and a half years of Timoney's reign, there was an increase in arrests for quality of life crimes. What we don't know, and in essence we would need some other than legal also sociological aspect to this to see what really has been the impact, if any, on the quality of life in neighborhoods. Because the amount of arrests have increased exponentially really during the last few years, and that's what you're seeing in your court system. And we don't know how that has impacted in terms of neighborhood life. And we don't know that because a lot of these cases are getting adjudicated and removed or just revolved out of the court system for lack of prosecution, lack evidence, whatever it is. We don't have a grasp in it. But that's the biggest complaint that we get by phone calls, by community meetings, and so on. That is the biggest complaint we get. And it's something that we have 1920 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) not, over the last few years, been able to really grab hold of in these hearings. How has that impacted? Does the number of arrests equal a bettering of a quality of life in neighborhoods? And if it does not, then why not? And is it because these cases are just thrown out of court, no evidence, the adjudication doesn't place, lack of prosectorial effort, whatever it is? We're never able to get it. And in terms of complaints and so on, that's the biggest thing that we have. Thank you, Madam Chair.
Thank you. And may I also note, Madam Chair, that as I said earlier, I've talked with victim witness officers throughout the City who also note, because they're on the cutting edge of this issue, however, their groups are funded by the DA so I don't know how we -- I can get some information, but I'm not trying to get people in trouble whose groups are funded, certainly, by the DA who doesn't agree with this. But the victim witness officers who see crime and who deal with victims --
They usually 1921 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) come in to testify. I'm sure they'll be here this year.
Exactly. But as I said, they're funded by the DA. But I talked with all of them before they knew I would make it a public issue, and they all have documentation to support what I've said.
Thank you. The Chair recognizes Councilman Clarke.
Thank you, Madam Chair. Good morning. First, your Honor, I'd like to thank you on behalf of my colleague Councilman DiCicco and I and Councilman Fumo in your support of the Community Court. We had a great opening the other day. And I think that that's the way to go. And I think that can actually address some of the concerns that Councilman Ortiz and Councilwoman Blackwell have with respect to the revolving door situation that we currently have. Anticipating that this is going to be successful, I have a couple of questions if you can answer that; if not, I can get that information a little later. What was the original cost associated 1922 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) with the physical plant, so to speak, the actual renovation of the facility? I'd like to get ongoing operating costs. I believe we will be looking to expand that in other parts of the City.
Good morning, Councilman. With Councilman's permission, I can provide you with a detailed report. However, I can just tell you that preliminarily the funds associated with the renovations of the physical space at 1401 Arch Street were provided by way of private and some public State funds through the Center City District. Mr. Paul Levy, the head of the District, I'm sure has the detailed breakdown in terms of those costs. The ongoing rent, however, is a mechanism and as an accommodation is being paid by the First Judicial District, and I don't have the exact amount of that rental. Mr. Cross indicates it's in the vicinity $130,000 a year as a rental. Is it a year?
A year, yes. That's just the lease cost, not the operating expenses, the electricity, the taxes and so forth.
That's comparable to 1923 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) the going rates in Center City?
Yes. We do have additional personnel that were hired. And thanks to Council, those funds have been made available. By all indication, that program will be a success. If my opinion means anything, I firmly believe -- I am in agreement with Councilwoman Blackwell when she says you bring out the services to where they're needed because in court administration you learn very quickly something called access to justice, and you make justice accessible right where the people live and not in some high-rise Center City office building. So to the extent that we can accommodate your request and through things like the Community Court and through things like the Night Court, Drug Treatment Court, that's what we want to do.
If I can add to that. One of the problems in determining the operating costs, because Community Court is a multi-functional court with multi-different agencies, the police, and the DA's office, the Public Defender, there's treatment staff and treatment program, because it's multi-functional, our costs are just a small part 1924 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) but you have to look at every other department to find out what their costs are and then put them together collectively. And we'll do that for you.
And I'm particularly interested in the aftermath of whatever treatment that individual's given in terms of educational enhancements, drug treatment, and ultimately job placement. Because I think without having some reasonable employment opportunities at the end of day, that person will end up back into the system.
Absolutely. And we have two counselors, a social service counselor and a treatment counselor that are part of the program whose intentions are to divert to those to types of services.
One other thing. The Mayor has announced that Live Stop is coming. I believe that we will probably get a substantial response. Either, A, a whole lot of folks vehicles will be taken; and B, a whole lot of folks who are concerned about their vehicles being taken will come down and try and get there house in order as it relates to traffic tickets. Are we ready for this? I know Judge Perry has been working on 1925 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) this for sometime and I think he's geared up to accommodate whatever may come his way in Traffic Court. But as you know, there's a Court of Common Pleas process and particularly in the appellate side of this whole traffic issue. I'm wondering are we ready for this? Because I anticipate an onslaught of individuals.
Councilman, I truly hope we're ready for it. There have been a number of constituents who have contacted me directly or indirectly with respect to their concerns, and it's not just the resident that might lose his car. We have people involved in the ownership of huge trucks, for example. A major portion of this program is not handled by the First Judicial District through our Traffic Court, rather by the Parking Authority. And on a pilot basis that I believe is about two years old, it's been very successful. The cars were either impounded or taken down to the City's lot. They're towed there, they're impounded there. And when the owner or operator of the car has the funds available, they're able to get their car out, for example. If they can not, there's a whole process through the Parking 1926 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) Authority for the sale and disposition of those vehicles. We have our Solicitors looking into it. We want to make sure that everything comports with due process of law. We've been very purposeful in making sure that no rights are violated in this area because we realize that a vehicle is important to someone. It's means of a livelihood. And to deprive somebody of that means of a livelihood is unfair unless we're complying fully with the statutes and laws of the Commonwealth.
What about the administrative side? I'm assuming that there will be substantially more appeals and that will fall under the jurisdiction of the Court of Common Pleas; am I correct?
I don't have statistics on that yet. I know that the sale of the vehicles is something that --
I'm saying, the actual ticket -- correct me if I'm wrong. I go to Traffic Court. I receive a penalty, a fine, I lose in court. The appellate process is the Court of Common Pleas.
That is a correct. There 1927 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) is an appeal for a hearing before Trial Division in the Court of Common Pleas, that is correct.
And my question is, I'm assuming that as a result of the influx of individuals in Traffic Court, we will subsequently see a substantial increase in the case load associated with the Court of Common Pleas. And my question is that I didn't see that indicated in your testimony that there was going to be an additional administrative resource put in place to handle that. JUDGE MASSIAH-JACKSON: Councilman, we're pretty comfortable that our Trial Division will be able to handle that. We have court rooms specially assigned for those types of cases now. Of course, the expanded Live Stop will start June 1st. So it will be some period after that where if there are additional appeals, that's when we'll start seeing them. But I don't think we'll have a problem.
You really don't? JUDGE MASSIAH-JACKSON: Not the appeals, no, I don't. You know, one of the things you find out is that people know that they don't have insurance 1928 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) or they know they don't have license. They want to have a day in court maybe to negotiate to pay a lesser amount, but they're not saying not guilty. They're just saying, Let's try and work it out.
Judge, you should go to Traffic Court a little more often. A whole lot of people say they're not guilty. I want to make sure that, you know -- JUDGE MASSIAH-JACKSON: I appreciate that. Our judges are ready to handle this. And probably next year this time, Madam President, there will be a special paragraph in here about that.
More money. JUDGE MASSIAH-JACKSON: But as of today, we're ready.
Thank you, Madam Chair. Good morning, your Honor and the other 1929 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) members of the panel. I have a data request. I know that Councilman Ortiz, I think, had asked about some criminal court data. I wanted to ask in the very narrow but important area with regard to any court statistics or data around the issue of the death penalty, what I'd like to understand from court records on a year-by-year basis -- and I know that apparently either you have to be charged with that or there's some filing of a document. I'm not crystal clear. I mean, I know it has a special name that goes with it. But the actual charge or a petition is made and then subsequent to that depending on what's going on with the case, you actually may proceed down that path or that particular charge may be dropped and other charges that have already been filed, the case is pursued along those lines. And then finally the case happens. A verdict is made. The jury may or may not come to that conclusion. But what I'd like to understand is or get some data or a year-by-year basis is kind of the universe, I mean, the total number of applications, I think it is, that are made. And then how many of those actually proceed to trial, which I assume its smaller than the number 1930 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) that are actually applied for. And then the total number of convictions for the death penalty. And then any information you may have on the number of defendants who are given the death penalty or sentenced to the death penalty on a year-by-year basis. And would you be able to give any statistical data for anywhere in a 5- to 10-year time period through the court records?
We'll do our best. JUDGE MASSIAH-JACKSON: We could probably do it for at five years. I don't know about beyond that.
And just for my own education, what is it when the charge is actually made, but I think they have to -- JUDGE MASSIAH-JACKSON: First the District Attorney certifies first a case as a capital case. And through the negotiation process, it's determined whether or not the verdict is guilty and then whether or not the jury imposes a death penalty.
Because there's a 1931 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) separate sentencing phase? JUDGE MASSIAH-JACKSON: There's a separate sentencing phase. In fact, that's one of the areas that we're looking for increased court appointed counsel to help with that separate sentencing phase, yes.
If I may. There's a request for a certification on capital case, right? And Councilman Nutter has asked for how many cases have been. And then you say through the process of the trial there's negotiations back and forth, which always are. But at the end, if there is no 14 agreement between defense and the District Attorney, then that certification goes as asked for at the beginning of the trial, right? JUDGE MASSIAH-JACKSON: Well, the defendant knows he's on trial as a capital matter or not as a capital matter from the beginning.
So if there's no 21 agreement between the two, the defense counsel and the District Attorney, then that stays with the original request, right? JUDGE MASSIAH-JACKSON: There's nothing that's always unanimous or a hundred percent. There 1932 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) might be some point during the trial where the DA for whatever reason --
Lack of evidence, for example. JUDGE MASSIAH-JACKSON: Well, for whatever reason, there may be a withdrawal of that certification.
Just one last question in that regard. Do you have a sense when you might be able to put something like that together?
When did the concentration of the misdemeanor cases or Municipal Court cases to go to the CJC? When did that begin? JUDGE MASSIAH-JACKSON: We think it was around the first week of January.
Not to me. 1933 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) JUDGE MASSIAH-JACKSON: At the December meeting of the Administrative Governing Board, Judge McCaffery circulated his plan and announced at that time that the plan was going to go into effect the first week of January. That's the first I knew of it.
And is it part of the authority of the Administrative Judge to make that decision? Was he empowered to make that decision by himself or did it have to receive approval from the Supreme Court or any other body? JUDGE MASSIAH-JACKSON: Well, I'll speak from my perspective and Mr. DiPrimio can speak from his perspective. Judge McCaffery was newly appointed as an administrative judge so perhaps he was not familiar with the process. In the past during my experience -- and it's only been a year. Mr. DiPrimio's been knowledgeable of the Administrative Governing Board for about five or six years. But during the past year, in my experience, for changes of that magnitude, we've discussed them first. That was not done in this case. I'm not suggesting that he was not empowered to do that, but I'm simply suggesting that there was no discussion 1934 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) with the Administrative Governing Board.
I raise that question because it seemed so inconsistent with Judge McCaffery's point of view, say, at the stadium. He felt it important to conduct hearings right at the Vet Stadium if there was misconduct there. He was bringing the court to the area where the problem existed. So when I first heard of it, I thought it was just a mistake in report because everything that Judge McCaffery had done in that direction, to my knowledge, before was to move the court closer to the scene of where the problem was. And this moves in totally the opposite direction. I'm wondering was there ever any written explanation? Because I've not seen any. And I'm very pleased to hear this discussion taking place. What's the $18 million? Is that supposed to be saved by moving?
Councilman, when the First Judicial District under Judge Blasi moved the cases from the CJC out to the divisional courts at the request of the City Administration, the savings that the City attributed was in the vicinity of $17 1935 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) million. And that seemed to be working well.
Yes, the Divisional Courts, that's what we call them. In fact, Judge Blasi and I went around and we looked at the courts. We made sure that they were equipped. Police stations were equipped with air conditioning and appropriate facilities, tables and desks and things of that nature. And it was, based on my understanding, it was a success for all the reasons that you and other Councilpeople today have cited. I was just as surprised for the reasons you had mentioned because Judge McCaffery -- and I understand Council wants to speak with the judge, but the judge has had his Night Court program which is out in the community and the Eagles Court and now I think South Street Court or whatever else, and it's all been successful in those regards. So I'm sure the judge has his reasons and I'm depending on him to explain them to Council.
Well, according the to 1936 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) City Administration, the savings of million would have occurred as a result of saving on police overtime.
You were told it 9 would be saved by holding it in the central -- 10
Just the opposite. In 11 other words, the savings occurred when the 12 preliminary hearings were conducted out in the 13 divisional courts, out in the police districts. 14
Historically they were 17 held there until the CJC opened back in '95 and '96. And then Judge Blasi I think in '97 or '98 returned them back to the divisional courts when the savings accrued. Those figures came right from Joe Martz.
You're welcome. Are there any other questions from the 1937 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) Members of the Committee? The Chair recognizes Councilwoman Brown.
Good morning. One question and one statement. And let me know if there's already been a discussion on this issue because I can certainly read the transcript. Recently, the Supreme Court ruled that the Commonwealth of Pennsylvania is responsible for the funding of the First Judicial District and a plan, as I understand it, was put in place to eventually take over this $110 million burden. Is there a plan? Where are we with that plan? Have you discussed that already?
Good morning, Councilwoman. We have not discussed that this morning. But in years past we have discussed that.
I am aware of no 21 progress. I am not privy to those negotiations between the Supreme Court and the State Administration, but based on my peripheral vision, if you will, I don't know of any progress or whether there's any intention to move forward. 1938 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
Who are the principle parties at the table that will be responsible for any kind of discussion or dialog?
Based on my opinion, I believe it's the Administrative Office of Pennsylvania Courts and then various entities at the Commonwealth level, be it the Governor's Office or the Legislature.
Okay, then. That certainly explains it. The second is more of a statement. I've learned in this short while that I've been here that the collection rate of child support is currently at percent -- only 26 percent of the monies that are 25 supposed to be directed to children actually get 1939 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) there. And I was informed that there are a number of issues that impact why we're at such a low number: The process is cumbersome. A lack of free representation that is granted by law. Charging of the fees that are not required by law and the like. So I'd like to put that on the table at that hour that that is an issue my office is concerned about to see how we can improve boosting that rate of the percentage of children that are supposed to receive support from parents. Do you have any comment or reaction to that reality as we know it to be today?
Let me just say that the issue of child support enforcement is something that is near and dear to me. I was Deputy in Family Court for about five years. And before that, I served to prosecute those cases when I was in the District Attorney's Office. I do not sit on the actual statistics. Or if you're referencing -- and our testimony has some, but if you're referencing the collections at the State, one thing that has occurred in the last two years is that the actual collection and distribution of those child support cases no longer rests with the First Judicial 1940 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) District. It now rests with the Commonwealth of Pennsylvania through the Pennsylvania Department of Public Welfare. In fact, the automated system, this pacing system, that is used and is owned by the Commonwealth is managed by the Commonwealth and the Domestic Relations Section has no opportunity to change it or enhance it. It is a real problem. And it's a particular problem in the City of Philadelphia.
When you say Domestic Relations, you're speaking of Domestic Relations in the City Philadelphia.
Yes, Councilwoman. They are part of the First Judicial District.
However, you say that rests with the Commonwealth Court of Pennsylvania?
But actual collection and receipt of the funds and then the paying out of the funds is no longer done. It's about two years it's been done with the Commonwealth of Pennsylvania.
That's helpful in terms of what direction my office needs to pursue. Thank you very much. 1941 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
The only thing I can add is that we did collect $179 million in total collection last calendar year, and that is part of our testimony.
And how does that rate with years before? Is that a dramatic increase? Is that flat?
It's a steady increase from years before. I can remember when the collections in the City were as low as $30 million.
Well, there's been a lot of changes at the federal and state level in terms of the mandatory practices. For example, a new hire reporting. It was so easy to skip and just change employer and by the time wage attachment caught up with the obligor, they just changed jobs again. Now there's legislation I personally lobbied for so that the employers are required to report to Child Support Agency when they hire a new person so that 1942 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) the wage attachment can follow that person around. That's an example. Mandatory garnishment of wages, mandatory garnishment of bank accounts. There's a lot of enforcement tools that the Federal Government has forced upon the State that we're starting to see the benefits of.
You're welcome. The Chair recognizes Councilman Cohen.
With respect to the so-called hearsay rule, in the counties that have adopted that rule, does that rule go up through the Common Pleas Court or is it merely for preliminary hearings? JUDGE MASSIAH-JACKSON: Councilman Cohen, I'm not as familiar what happens in the other counties. But I can say this: In other counties they have district justices. Here we have a Municipal Court. The Defender Association is already looking into this, and I know they have a specific response to your question because I've 1943 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) talked to them, but I don't have the actual knowledge to answer your question.
The reason I raise it is I don't see any point to the proposal because it seems to me that as a matter of law if the matter is moved up to Common Pleas Court, they're going to be confronted with the hearsay rule. And hearsay, as far as I know, could never be accepted in the Common Pleas Court. JUDGE MASSIAH-JACKSON: Right. At the Common Pleas level, we would never accept a hearsay rule. You're absolutely correct. The problem is, it holds those cases for trial. So at the Municipal Court level, they expect several thousand additional cases that will be held for trial that will be sent to us at Common Pleas level. Mr. DiPrimio stated earlier that three additional courtrooms have to be allocated at the Common Pleas level to hear cases that may eventually be thrown out because the live witness will not come into the Common Pleas level.
That seems to fit the definition of "made work," work created not for any constructive purpose, but merely to provide an 1944 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) excuse to either maintain records or maintain unnecessary employment or whatever you have. Seems to me to be unfair to the criminal justice system to have to deal with that kind of an artificial system where it's clear that if the person involved is a real criminal, he or she is going to know that the hearsay rule will not be applicable in Common Pleas. So we achieve nothing except additional expense. Thank you, Madam President.
You're welcome. Are there any other questions from Members of the Committee? Thank you very much.
Good morning. Please identify yourself for the record and proceed with your testimony.
I'm John Green, Sheriff of the City and County of Philadelphia. Madam President, the Philadelphia Sheriff's Office concurs with the City of Philadelphia's Finance Department's recommendation 1945 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) for Fiscal Year 2003 budget request of $12,245,955 and, therefore, formally request the Council to approve that amount.
Thank you. Does anyone else want to testify at the table? Mr. Sheriff, I don't have any questions. However, I do want to certainly thank you for the security that your office has provided us on Council Session days. We're most grateful for that assistance. Thank you. The Chair recognizes Councilman Ortiz.
Madam Chair, I have a question for the sheriff. I think the issue of the sheriff sales and the information that he does give us in terms of that is extremely helpful and has helped save a lot of constituents houses and give them enough time to be able to get their money together. I want to thank you personally for everything you've done and the service you provided.
Thank you. I really appreciate that. The sheriff's sales is a major part of our operation. And one of the things we try 1946 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) to do is de-mystify that process for people. And to the extent that we've been helpful, we're grateful of that. And that sort of comment will carry us into the next Fiscal Year with even more of a direction and more of a concern and more of a commitment to improving the system.
It's also been helpful in almost trying to deal with the speculators that are out there, so it has led to somewhat in different neighborhoods because you can really identify some people. Thank you, Madam Chair.
Thank you. There's just one question I wanted to ask. If we were to request that a house be put up for sheriff's sale, how long would that process take?
Well, there are two ways you can request a property being put up for sheriff's sale. The quickest way is to go contact the Revenue Department and find out if the property can be certified, meaning if there are tax delinquencies. If you go that route, it would take approximately 90 days to get that accomplished today. Because of the 1947 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) computerization process that our office undertook, thanks to Council's allocation a couple years ago, we're now able to expedite the process via the Internet. As soon the property are certified, we're able to put them up for sale.
So how long does it take the Revenue Department to certify?
Now, that's another issue. We can put it up, as I said, 90 days after the Revenue Department certifies it. Whatever process the Revenue Department uses, I'm not quite sure of what's done. And I can just ask the people in my office. I'll check with the Real Estate Unit. I can give you a written report on that, if you'd like.
Thank you very much. I recall several years back we were waiting maybe six or seven years for a property to be put up on sheriff's sale once we made a request. So if you're saying we can do that in nine months now, I think that's wonderful.
We can put it up within 90 days of certification. And we can do that now. The problem, as I recall, in the past was, quite 1948 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) frankly, serving the owner. Because it's a judicial process, you must serve the owner that a judicial process is about to be undertaken. And we had a difficult time finding people because they may have moved to another state. Actually, sometimes people just move to another part of the City. But today, we've worked on that process. We have people who work full time in making sure that we get the properties ready for sale as soon as possible.
Wonderful. How many properties would you say are put on sheriff's sale a year? You don't have to be exact.
I don't want to chance even a guess at this don't because, as you know, we now have three sheriff's sale. In the past we had a tax delinquent sale, and the tax delinquent sales put up approximately, I would say, 150 properties a month, with some of them being stayed. Then we had the mortgage foreclosure sales, and the mortgage foreclosure sales may have been approximately 100 properties. These are just rough numbers. We now have mortgage foreclosure sales, and the mortgage foreclosure sales fluctuate so much that it is very, very difficult to put a number on 1949 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) the mortgage foreclosure sale. But I can tell you that we are exposing a record number of properties for sale. Because we are able to do it now through the Internet and now through the regular auction process, we're able to accommodate that without asking for additional money at this time.
Thank you. At this time, the Chair recognizes Councilman Nutter.
Thank you, Madam Chair. Good morning, Sheriff Green. I know that you have been thanked and I would thank you as well for the service that we've received primarily on Thursdays here up on the fourth floor. What I wanted to ask was, there is a proposal for a variety of upgrades and security to City Hall and I think possibly two other buildings that are often referred to as the triplex of buildings downtown, City Hall, One Park Way, and I guess the Municipal Services Building. With regard to City Hall and the various upgrades, including some proposed for Council Chambers and the fourth floor in general, it may also involve some other floors where members offices 1950 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) are, have there been any meetings or discussions with you about what an upgraded security presence may mean in terms of involvement by the Sheriff's Office and the regularity of that security, whether it's directly involving in City Council or other parts of the building?
No. We have not been involved in any discussions relevant to the security upgrading in City Hall, Municipal Service Building or any other structure that wouldn't be considered a county courthouse.
So let me make sure I understand. Not withstanding the fact that, again, you have most graciously provided the sheriffs deputies, I think possibly six to eight that I can count on at least Thursday morning when Council officially meets, there have been no 19 discussions with you about -- I mean, there's been mention made of, I believe, magnetometers and probably some of the kind of equipment, for instance, that's presently over at the Criminal Justice Center.
I'm left with the 1951 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) impression that that equipment has to be maintained and is used on a regular basis and so there will be a need for literally personnel to take care of those actions, which is different than what we presently experience which is essentially a once a week participation. I'm left with the impression that this will be a regular and fully staffed operation. Let me just encourage you, and I'm sure certainly that Council President will on behalf of the Council, but let me encourage you to be in touch with at least Mr. Rick Tustin from the Capital Program Office. I think they have general responsibility for this. There maybe other operational people who need to be involved. Mr. Tustin's more on the capital side and doesn't get into, I think, so much operations. But I think you need to be included in that discussion on a going-forward basis. It may have some impact on the potentially on the Sheriff's Office. And I think we need to make sure that we're coordinating our capital activities at the same time that they have operational impact and we shouldn't end up with a great security plan but not have the personnel necessary to carry it out. 1952 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
I shall do that. As you can well imagine, since the events of six months ago, the Sheriff's Office has been called upon to maintain metal detectors and other devices that are used in order to scrutinize the contents of people's pockets and purses. We are one of two agencies that have people who are certified to do that sort of thing. And there are people who are certified in Philadelphia. One would be the United States Marshal's Office and the Philadelphia Sheriff's Office. We have people who are certified and experienced to do that. And we'll be more than willing to sit down and discuss our role. One of the reason we have reconfigured our office in a manner to be able to do what we do with Council every Thursday is in order to accommodate the request that we had received for our expertise in handling those devices.
You're welcome. Chair recognizes Councilman Kenney.
Thank you, Madam 1953 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) Chair. I also want to echo Councilmember Nutter's comments relative to the security issues on Thursday. Your people have just been a tremendous help to us in making us feel a little more safe in this Chamber, which you can see is extremely accessible to the general public to us. I'm within an arm's length of some of the people here at the rails sometimes, and the fact that your checking and make sure that weapons aren't entering the Chamber makes us feel a lot better. But I also want to thank you for just your public service. Your office and the people in your office are extremely responsive to all our needs when we call them. And I've found you to be high caliber public official and you've been doing a great job for years. I just wanted to thank you personally for all the stuff you do for us. I think you're pretty good guy.
Let me tell you something. You don't hear me say that often in this building. You're one that I'm proud to have in 1954 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) front of us.
Are there any other questions from Members of the Committee? The Chair recognizes Councilwoman Blackwell.
Thank you. Let me thank the Sheriff and his department for the job they have continued to do. Certainly, I understand there was an article in the paper about the safety issue and I, likewise, thank the sheriff for the job they are doing. I will admit, I have some other concerns about some of the clients that we service and how they will gain access, but we'll deal with those as it evolves, but we want to say thank you.
Thank you, Madam President. I don't want to left out. I feel badly if I don't say anything nice. You might think I'm angry at you. I do also want to thank you and echo 1955 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) the comments of my colleagues. A job well done. And thank you for that call last week.
Thank you. I'm sure Councilman Ortiz and Councilwoman Brown would like to say a word of thank you.
As Wyatt Earp rides sunset, he just turns around and waves and he goes "Hi oh, Silver" -- that's not Wyatt Earp. That's the Lone Ranger. (Laughter.)
Good morning. The only thing I would add is to commend your office for embracing technology. Because to the extent that you embrace that, it certainly aids us in the work that we have to do in serving constituents. And you've not shied away or backed away from that but use that in a way to maximize the professional service that you deliver. So congratulations to you and your staff, and continue the good work that 1956 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) you're doing.
Thank you very much. We couldn't have done that, of course, without City Council allocating the money that was needed to upgrade our technology. Thank you very much.
We're allocating 8 million more for him, is that it? 9 (Laughter.) 10
I'm just grateful just to get out of here with all of these accolades. I don't need the money. (Laughter.)
Are there any other questions from Members of the Committee? Thank you very much. This has been a very rare morning.
Good morning, Council President Anna Verna and Members of City Council. My name is Vivian T. Miller, and I am the Clerk of Quarter Sessions and I have with me this morning Tom Christman, my Budget Analyst; Charles Williams, my 1957 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) First Deputy; and Lopez Jones, my Second Deputy. I'm going to try to be brief, but I would first ask that you take care of my budget of $4,379,889. And with the permission of the President, I would like to just read the second addendum to my budget address.
Since I prepared my Fiscal 2003 budget message, I am pleased to report to this body that we have been in negotiations with Administration through the Budget Bureau about our very serious concern. As a result of the Budget Bureau thorough analysis of our requested justification schedule needs, they have reconsidered our request for funding and will, by the use of a transfer ordinance, increase our Fiscal 2003 budget in the amount of $195,000. This funding will allow us to hire an additional two court clerks and to move forward with te automation project which began last year at the request of City Council President Anna Verna. I want to personally thank this Administration and Council President Anna Verna for their concerns. Hopefully, our negotiation with the 1958 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) Administration are not finished. However, this is a good start in meeting our over all needs. Thanks again for your time, attention, and all consideration given on this budget process and on behalf of the Clerk of Quarter Sessions. In conclusion, I remain steadfast and firm in bringing our department into the 21st Century, but I surely need your unwavering support and consideration in approving of all areas of budget requests in order to move forward. Thank you very much. Respectfully, Vivian T. Miller. Are there any questions?
Are there any questions from Members of the Committee? The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. We are happy to support the Commissioner's request. And let me say that she does a great job. As many of you know, she's also ward leader in Southwest and we're happy to support her. Thank you, Madam President. 1959 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
Could you put that in writing and just send it over to us?
We'll try to accommodate that, Vivian. Thank you, Madam Chair.
You're welcome. The Chair recognizes Councilman DiCicco.
Are there any other questions or comments from Members of the Committee? Thank you all very much.
Good morning. 1960 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) Welcome.
Good morning, Madam President and Members of City Council. In the audience is my Chief Deputy John Furey; to my left is Ralph Weiner, my First Deputy; to my right is Anthony Derose, my Finance Director; and we have Jim Tangert, my Administrative Services Officer. As required by City Council, Madam President, I submitted a two-page letter approximately two or three weeks ago basically outlining our request for our budget, also highlighting some of the things we have done in the past year to help the City in its time of fiscal restraint and its efforts to raise additional revenue. Our request for next year fiscal year is $2,875,292. This is something we sat down with Rob Dubow and basically the numbers that the Administration in keeping with our present staffing levels and present needs for next year. I'd like to point out some of the efforts. We did raise additional fees to help the City Council in the past. Some of these fees that we're raising is a result of monies that you have 1961 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) given us in the past to help computerize our offices and also bring additional equipment in which gave us the ability to raise additional fees. I believe this year alone will bring in approximately percent additional revenues over 7 last year's numbers. If you look at the numbers, 8 we're basically self-sustaining our office. 9 While we're self-sustaining, we also go 10 out in the community and provide services. We're the only marriage license bureau open on Wednesday nights in the five counties to provide a service to the citizens of Philadelphia and the surrounding counties because we tied in, if you recall, on Wednesday night we opened it so make it a night in Philadelphia. It also helps our restaurants where people come in, they get a marriage license or they go -- before or after they go to dinner in Philadelphia. So it's our way of helping to promote the City of Philadelphia. We also have two satellite office which we man with no additional personnel: One in the Northeast part of the City, and one in North Philadelphia. But we're always in the process of trying to generate additional fees and to help do our part of what's required. 1962 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) I'd like to mention what's happening in our office. And Rob Dubow, I want to acknowledge the help he's trying to give us. More and more the courts are requiring our office, because I'm also the Clerk of the Orphans Court, to do additional duties. In the past year, right after our budget was passed, we were required by the court system to implement a program called the Banner Program which is a national program which gives lawyers and the public the opportunity to go on-line to check docket entries. We were not budgeted for this and we're trying to stay within our budget, but this alone required a full-time supervisor and approximately $80,000 of man hours of dollars to just run this program. I'm giving this caveat because I don't know what else the Supreme Court may mandate next year which will require additional employees or additional time allocation on our part. I'd like to emphasize, we're trying to stay within our 70 employees and our budget. But it's getting more and more difficult when we're getting mandated by the courts to do additional duties. If you recall, Council President, many years ago when I first became Register of Wills, we 1963 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) were only getting compensated $20,000 from the State of Pennsylvania for collecting inheritance tax. The State used to have four full-time employees sitting downstairs in Room 188 across the hall -- I'm 188, so across the hall like 185 -- where they would basically process inheritance tax applications. They closed the operation and they said to our office, This is now going to be your duty.
We lobbied Harrisburg to say, Look, if you want us to do this job, we would like to have some type sliding scale because last year we collected over $60 million, the County of Philadelphia, which went into state coffers for inheritance. And I'm glad to say that now we collect over 400,000 in commissions. If we could convince the courts or whatever down the road the more that we're doing maybe we can get additional monies from court system to help these new additional duties. I want to thank City Council for all the help you've given us in the past. And hopefully if we get our phone lines from Verizon we'll be on-line with our probating which will in turn generate additional monies because we'll give the lawyers 1964 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) and the public the opportunity to go on-line and we'll charge for some of these services. Thank you.
You're welcome. I don't have any questions. However, I do want to congratulate you on a great job in increasing revenues and also for improving services.
Thank you. My credit has to go to my staff. I'm always trying to encourage them to come up creatively -- and, you know, we work in conjunction with the Bar Association. Obviously, we don't want to be the only county office in the five to charge these fees, but we're right in line with the other counties and we're probably a little bit more reasonable because I believe Philadelphia County is unique in the sense of we provide more services because of the poor in Philadelphia.
Have you gotten many complaints from the public regarding increasing the fees that you initiated August of 2001? And how do the fees compare to the surrounding counties.
Our fees are either equal or below the surrounding counties. And these 1965 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) fees are usually based on assets into this state. We try to keep the basic probate fees minimal so that the poor of the area can afford to probate an estate. Contrary to some of the counties, Council President, we don't require an attorney to probate an estate. I said contrary to the other four counties, we do not really require that you have an attorney to come in to probate an estate. We try to help the public, the lay people in the sense of if it's minor, we try to help them. Sometimes you do need a lawyer, but we assist them any way we can. We make it a user-friendly office.
Thank you. The Chair recognizes Councilman Nutter.
Thank you, Madam Chair. No question for the Register of Wills. And good morning to the other members of your team. I just really wanted to say thank you for the continued service. We've had a couple, over the past year or so, a couple unusual, if not, somewhat extraordinary situations. Your staff was most accommodating in trying to get a couple situations 1966 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) worked out, and I wanted to thank you for that. I don't think I know the other gentleman as well as either yourself or Ralph Weiner who is also ward leader in the 38th. But I want to extend to all of you my thanks and especially to Mr. Donatucci and Mr. Weiner.
I likewise wanted to say thank you for all that you and your department does. And likewise, I have to step out for a few minutes. We see Marge and Bobby Lee back there. Hats off to you as well. Thank you.
Thank you. The Chair recognizes Councilman DiCicco.
Thank you, Madam Chair. You mentioned about $60 million in inheritance taxes turn over to the State and you said there was a time that your office wasn't compensated but now you are getting some compensation.
Yes. It's gone up every year. 1967 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
So is it uniform across the State, that compensation.
Yes. We get probably the largest compensation in the State because of the volume.
Because of volume. But percentage-wise, is it the same? I don't know what the formula for compensation is.
I can get you a copy of it, but we're maxed out. One half of one percent.
Are the other counties charging the same compensation.
So in order for you to get more compensation, there'd have to a change 1968 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) in the Act change?
Exactly. If you look at -- off the record, I mean, you can't complain collecting over 400,000.
I know, but given the fact that we are unique and, as you say in your testimony, we have a lot more poor people in our county than some of the other counties do, and I think by comparison we probably should be compensated more. Now, that may become an argument to the State Legislature, but --
Usually when you're paying an inheritance tax, the estate has substantial monies in it. It's not coming from -- and I would like to point out, the inheritance tax has been lowered in the State of Pennsylvania. It's now 4 percent and they've eliminated between spouses and it's only 12 percent between nephews or whatever, not direct decendents, but collateral. So I believe eventually years to come I think it's going to be eliminated. But as long as it's there, we do have at least four employees doing it full time.
I was just looking 1969 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) to see if there's a way in which we can helpful to see if we can do anything in Harrisburg to get that percentage up because of the fact that you're constituency, the City of Philadelphia constituency is a lot different than Montgomery and Bucks and Delaware County.
But that's a small part of our operation, the inheritance tax. A lot of our time consumption is the probate and estates. And like I said to you earlier, Rob Dubow and Harry Wellerstein and everybody over in finance, they're trying to address this problem because they realize more and more of our duties are becoming court related. Now, I don't know if eventually down the road a consolidation into the court system, but as we're getting more and more into technology, we're getting more and more required to go on-line and do A, B, and C, and our accessibility and it's costing us a lot of personnel now and, obviously, the equipment.
Thank you. Thank you again for your office, the service of your staff. They've always been very helpful.
You're welcome. 1970 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
You're welcome. Are there are any other questions from Members of the Committee. Seeing none, I thank you gentlemen.
City Commissioners will be next. (Witnesses come forward.)
Madam President and Members of City Council, good morning. I am Margaret M. Tartaglione, Chairwoman of the City Commissioners Office. I would like to thank you for this opportunity to present our Fiscal Year 2003 Operating Budget. The City Commissioners' proposed spending level of $8,187,093 for FY 2003 is allocated as follows: Class 100, personal service, $4,678,505. Class 200, Purchase of Services, $2,594,035. Class 300, materials and supplies $580,687. Equipment in 400, $52,784. Class 800, payment to productive bank, $281,082. 1971 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) This represents an additional $289,852 in Class 100 over FY 2002 estimated obligations. The above figures also provide funds for 3 percent wage increase effective December 15, 2002 in the amount of $52,841. We are excited to announce that the adoption of the Electric Voting Machine System, EVMs, approved by the electorate in the 1998 General Election Ballot will take place City-wide shortly. The new system will replace our existing mechanical machines for the use of 2002 Primary Election. This action will enable faster accurate tabulation of the vote count, reduce the dependency on outside voting machine mechanics and result in the anticipation and initial reduction of Class 200 spending for mechanics service by at least $175,000. The vendor, Danaher Controls, shall provide initial training and continue support service for the City Commissioners for the period of approximately two years on the new implemented system. During 2002 General Election, the department will hire approximately 50 outside technicians to assist three days immediate prior to the election for election day. The dependence on outside technicians is expected to become lower 1972 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) as the City Commissioners staff become more proficient and the use of the EVMs. The cost technicians has not been determined at this time. The City Commissioners had made any every effort to reduce expenses whenever possible. We hope to continue carrying out cost savings, but we are anticipating that major technology steps that we have taken will require additional funding. We will be facing higher maintenance fees or replacing cost to support older office equipment such as printers, copiers, scanners, fax machine and desk top computers. Additionally, we are projecting an increase in the cost of 101 civilian overtime for providing election seminars to familiarize both the Election Board members and the public with the technical advancement of the EVMs. Increased participation in the election seminar by the Election Board members will also increase the cost in Class 200, purchase of services. The department will also be required to obtain 50 personal computers to replace terminals for access to the election payroll system and voters files. Terminals to the currently more widely used 1973 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) Internet protocol employing PCs with network interface capability will be necessary. National Cash Register, NCR, has recommended the City Commissioners no longer support terminals base system after December of 2002. We are looking forward to continue assistance of the Mayor's Office of international information service to facilitate these transitions. This department is continued to institute sweeping changes to the system by which citizens of Philadelphia can cast their vote. As expected in most transition periods, we are faced with some challenges as we make enormous technological advancements. In order to provide the option level of service to the citizens of Philadelphia, we must continue to adopt and modernize our antiquated system in the face of all obstacles before us in the priority of this department to ensure the citizens of Philadelphia their Constitutional right to vote and to certify that each voter be counted properly. Once again, thank you for the opportunity to present our Fiscal 2003 Operating Budget.
Thank you. Commissioner, I want to thank you and your staff, particularly Bob Lee for coming to my ward meeting. He put on a great demonstration for the new voting machines. And I think at that time we had about 200 people present and he had the patience of Job. And I personally want to thank you publically. You did a fantastic job.
Thank you, Madam Chair. Good morning, Commissioner. In that same regard, how are we doing with people responding to come in for instructions? I know in years past they've been rather lax because they thought they knew everything about the machines because they had been working in those polling places for years, only to find out that they didn't know. Now that we have a new machine, how are things looking? And is there anything we can do?
The acceptance level of the machine is very high. We've done 104 demos so far. 1975 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) We have a total of 342 scheduled right now most of April. We still have time for more appointments. We're doing between -- some days you only three to four, other days you're doing 10. We're doing five tomorrow night. We're running all over the City. We're doing a lot of senior centers, senior meetings at churches. We go to the churches after mass and set up there. And the acceptance level by the voters is very high. And most of the seniors are taking well to the machine. It's just a matter of explaining to them you merely push a button instead of pulling a lever. The classes for the poll workers begin today. And what we've done is we've changed the schedule so that rather than just have an open schedule, we are attempting to get the wards there at a specific date and time so that the whole board would be together. We're going to put 12 people on a machine for a period of an hour, and 3 at a time they'll set it up, close it down, operate it. Rather than talk to them, we want them to touch it. Once you use the machine, it becomes a lot more simpler.
Less intimidating, 1976 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) right?
In addition, as Madam President said, we're going to every ward in the City, and a lot of wards are bringing their poll workers there. We're giving them a full demonstration there, although they're not getting the hands-on there. They are getting familiarized with the machines. And while they have concerns, I think most of them see the benefits of using this system.
They all expressed such an interest. I was really very impressed; I really was. Councilman, are you finished?
Yes. Thank you. Thank you for all your support, Commissioner.
Thank you, Madam President. Good morning, Commissioner. The May election is in front of you even though it's 30 days away and we will be using the new machines. What 1977 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) contingency plans do you have in place for the rare unhoped-for possibility that machines may break down and that kind of thing even with the new machines and the extensive training that you're doing? You give a lot of discussion of that on of your testimony for General Election, but what provisions or contingencies do we have in place for the spring Primary?
We have technicians who are 11 fully trained on these machines, certified. In 12 addition to that, as part of the contract the vendor is bringing in another 35. So there will be 47 technicians on the street on Election Day. In addition to that we'll have six vans. Each of the vans will have two machines apiece in the van. This machine is pretty good because if we have a problem with a machine that we can't figure out Election Day, we bring in a new machine. We can take the ballot face off the machine that was used in the morning, take the cartridge out of that machine, put it in a new machine. It will pick up where that machine left off because of the votes will be in the cartridge. And in addition to that, the machine that is out of service will maintain the 1978 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) votes in the memory bank of the one that went out. So we're able to do repairs on the street and also swap out and replace the machine. When we went to Columbus, Ohio, they don't repair the machines on the street Election Day. They just swap in a new one and take it out. So we do have some contingency plans and we have some benefits with this machine. Additionally, there's only two moving parts on this machine. One is the protective counter, that's through a dial wheel. And I believe the other is the printer itself. You would use a printer morning or at the end of the night. So there's a lot less moving parts that can get jammed or broken or not set right.
And I want to note that if anything happens to the machine and they have to replace it, when you take that cartridge out at the end of the night it will have what time that cartridge was taken out and put in the new machine.
If you have not done so already, could you prepare and submit to the 1979 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) President the listing of when you're visiting the various wards around the City for those of us who may be interested in training as well?
What we do is we print the list. Every Friday we send an updated of the list up to the Commissioners and it's sort of two ways, one's by date and one's by ward. So if you're interested in which locations we will be in your ward in the following week, you can contact Commissioner Tartaglione's office and they can give you the demos that are schedule for your particular ward or area.
Thank you. I wanted to join in the appreciation expressed by the Council President. Your group made a tremendous demonstration at the 17 Ward. The place was overflowing onto the streets. We thought people would be annoyed. They were not. They were interested. They listened. I think it was a very successful demonstration. We want to thank you for 1980 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) it. One question now. Is there any plan for assistance on election day for the voters? If a voter has some difficulty in feeling comfortable with the machine, will there been anybody available to assist? Is there any plan to do that?
Probably the education of the voters is going to appear or happen prior to the election as much as we can possibly do that. Right now on the City's cable channel on 64 and 63 at 6 and 9 o'clock each night we have a video tape running, a public service announcement showing them how to use the machine. We also want to contact the cable office and ask them to play that before and after the Council hearings to try to get some more exposure. Those PSA tapes will be put out wherever we can get air time from all the media. In addition to that, there will be articles in the local community news papers. And Commissioner Tartaglione has said that we are going to put a full-page ad, not only in the Inquirer, Daily News and Tribune, but in every single local community paper in the City with the instructions that are included in our brochures. So that ad will appear in the issue the 1981 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) week before the election, or as far as the Inquirer and Daily News, the day before the election. We also have a web page design to put on the City's Website showing them how to use that machine how to vote. We're probably trying to do as much as we can beforehand. Probably the best way or the way they've always to vote on machines is it's going to be committeemen and judges of elections and poll workers assisting them on election day. And the pink sample ballot will be an exact facsimile of the ballot itself, including the green vote button. And we've taken the step of adding extra assistance declarations so that there's at least 150 in each division where if someone wants to take someone in the machine with them because they're unable to enter or operate the machine, they're allowed to declare that need on Election Day, sign that form and take somebody in with them of their choice. I think probably the voters are going to learn best from committeemen as they've always had. People are going work their pink sheets and show them you go up and merely push the button as opposed to pulling a lever. And I think the voters are going to take to this and realize it's a lot easier than the initial 1982 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) fear may be.
The ability of the machine to be tilted on behalf of handicapped voters is an especially desirable feature.
Yes, the machine lowers for those in a wheelchairs or those who use wheelchairs and for people who are not as tall.
I think you all to be congratulated for your effort in that regard too. Thank you. Thank you, Madam President.
You're welcome. Mr. Lee, you made mentioned about how you will be advertising in the local papers the week before the election. Do you have money in your budget to do that?
That's not currently budgeted. Our normal advertising is, but the full page ads in all the community papers, that's not currently budgeted right now.
No. We made mention to 1983 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) Mayor's Chief of Staff and Managing Director when we were at a meeting on a different issue and we'll be working through, I guess, with all the departments on that.
Very well. Thank you. The Chair recognizes Councilman Nutter.
Thank you, Madam Chair. Good morning, Chairwoman Tartaglione and Bob Lee. It's nice every now and then when we can actually start something and live to see through the completion. Doesn't often happen in the government. But I first just want to thank you, Commissioner Tartaglione, and all the commissioners who were in office at the time that this effort started back in '97 and '98. I know it was yourself. I know Commissioner Alex Talmadge was the Commissioner at the time. My memory is a little fuzzy. Was Commissioner Duda a commissioner at that point?
I thought we tried this since 1977. 1984 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
Yes, I know. It has been a while. Sorry it took so long. But nevertheless, the Council put forward the necessary legislation. I want to thank my colleague Councilman Cohen as Chair of the Law and Government Committee that had the hearings on this particular issue and allowed the voters the opportunity to vote on it, which I think they did overwhelmingly, I think 70-some-odd percent. And it's long overdue, but the time has come and I just really want to express my appreciation. It was a great thing to be able to work on. And I thank all of my colleagues for the support they gave to getting this passed. I did want to ask one question with regard to -- I heard Bob Lee talk about the switch-out, the machine switch-out event. Obviously, we have enough machines to be placed at all of the 1681 polling places and some places have one, some have two, some have three. How many, quote/unquote, extra machines do we have?
We have 3526 machines plus 10 demo machines. We expect to use about 3430 on the street. This election there will be no division that has only one machine. We will make sure that 1985 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) every division has at least two so that if there's any kind of confusion or problem, there will be a second machine there that they can continue voting on. So for this election we're eliminating our single machine divisions and putting two machines in every division. There will be some triples where the law requires it, which leaves us probably less than a hundred machines as spares.
And lastly, in that regard, in other cities where these machines function and operate, if they utilize the switch-out procedure, is there any history in those cities in terms of the number of machines that have actually had to have their counters removed and placed in another machine?
Very few. Once every couple of elections they do. It's very few. These machines have been proven to be reliable. The machine has been used on the street, the machine itself, since about '83. It's a good solid proven machine. The software that we're using to do it is from 1998. All of it's independently tested for FUC standards and it's all been examined by the State. It's a very good solid machine. Generally, if 1986 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) there's problems with the machine with the electronics, it's within the first few months. These machines each went through extensive testing in our warehouse. They started delivering them back in June of '01. And our people have been testing them at a rate of about 125 to 200 a week is what the delivery schedule was and we were testing them all summer through the fall.
Just for the record, I think the original proposal was that the machines were going to be phased in. There was extensive negotiation time period as well as the building, if you will, of the machines. The way we have it situated now, all polling places will have the same electronic machine on Election Day. No one will have the old whether old shoe, new show, any other shoe, or Jamestown or anything else. All of those machines are out of our system and we're only used the one electronic machine; is that correct?
That's correct. We're using this machine City-wide. In fact, the Commissioners from the onset wanted to go with a full City-wide implementation and avoid trying to merge a hand count with an electric count which could be a 1987 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) problem. So it was decided pretty early on to go with a full City-wide implementation.
Lastly, let me follow up where the Council President was. Do you know when the issue of funds for a full public education advertising campaign -- I mean, obviously you need to start as soon as possible. Election Day is --
Yes, I know when it is. What is it, three months a from now, two and a half months from now?
I'm sure you need to get going on that. How do we get resolution to that? What do you think it will cost?
I'm not sure. The ad is ready to go. It's in my PC, it's ready to go. It's just a matter of having our people talk to the Inquirer, Daily News, these local papers and see what these full page ads are going to run.
Okay. I certainly encourage you to be aggressive about it, which I know you will be. And if there's anything that we 1988 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) can do to support that, I think it is critical that we have a good public education campaign notification. I know you're having demonstrations at a wide variety of places. You'll be coming out to the 52nd shortly. But I know throughout the City we need people to know as much as possible about the machines as well as take advantage of the opportunity to encourage more people to come out to vote who may just be intrigued by the new technology.
In fact, today they are putting two demos in the MSB Building in the basement as people come and pay their taxes and their water and all, and they will be demonstrating the machines there today.
You're welcome. Are there any other questions from Members of the Committee? The Chair recognizes Councilman Cohen.
I just wanted the record not to fail to note the great contribution 1989 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) made by Councilman Nutter of this Body in moving the whole process forward. He initiated the legislation. He fought hard as Chairman of Law and Government Committee. He was on top of me all the time until the hearings got scheduled and actually got held. I think he was certainly an honorable commissioner together with the Commissioners in moving this process forward. And I think the record ought to note his great contribution.
We congratulate him and you. Thank you. Any other statements or questions from Members of the Committee? Thank you very much.
I want to remind the Councilpeople who are ward leaders tomorrow at 5 o'clock is the deadline to file for your committee people.
Thank you. It's my understanding that Judge Jackson would like to be recognized again.
Madam Chair, I think the record should reflect that this is the first time that anyone has voluntarily come back during 1990 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) the course of a budget hearing. (Laughter.) JUDGE MASSIAH-JACKSON: Thank you, Madam Chair. I had indicated to our Clerk of Quarter Sessions, Vivian Miller, that I would sit with her and her staff as she presents her testimony. But after the First Judicial District testimony, I was out in the hallway talking to the attorneys supporting counsel fees. And when I turned around, Mrs. Miller was gone. So apparently, I think that she answered all of your questions very expeditiously and she went back to her office. But I'm here just to say that our courts, every courtroom must have a Clerk of Quarter Sessions, at least one. And even as we speak, there are insufficient numbers of Clerks of Quarter Sessions. There are 64 trial courtrooms in the CJC. They do not have enough clerks. Some of the courtrooms really need more than one clerk. And we will continue to support the Clerk of Quarter Sessions in their budget request, in their request to eliminate the hiring freeze that I believe has been imposed on them. And I know they have clerks who are in the DROP Program. All of that will 1991 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) affect the operation of our courts because, you know, judges are not necessarily the most important person in the courtroom. The Clerks of Quarter Sessions are important, the sheriffs are important, and the staff. And we really need those staff people. So that was our addition to the Clerk of Quarter Session testimony.
Mr. Dubow, I understood the Clerk of Quarter Sessions was negotiating with you for taking care of her needs. The record will reflect that Mr. Dubow was asked the question. He nodded his head in the affirmative. Thank you very much, Judge. JUDGE MASSIAH-JACKSON: Thank you. (Witnesses come forward.)
Please identify yourself for the record and proceed with your testimony.
I am Deputy City Controller Tony Radwanski. I am here to present testimony on behalf of Jonathan Saidel on the Auditing Department's Fiscal Year 2003. I am joined by Deputy City Controllers Albert Scaperotto, 1992 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) Anthony McNeil, and Office Administrator Gene Laumer. The Mayor's proposed FY 2003 Operating Budget includes a proposed General Fund appropriation of $7,501,595 for the Controllers Office. 5 percent Class 100 budget reduction. The entire amount of the modest increase over our FY 2002 budget is due to the cost of living salary adjustments negotiated with our City employee bargaining units. Our staffing level for FY 2003 stands at 131 budgeted positions. I'm very proud to report that our staff currently includes 45 certified public accountants, an all time high for the City Controllers Office. We intend to continue and strengthen our profession training program to retain and enhance this fine staff. As future challenges present themselves, we will find it increasing difficult to live with our existing appropriation and staffing levels while also vigorously pursuing the ever-increasing responsibilities placed upon our office by 1993 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) additional programs and federal and state auditing mandates. For example, the usual staff turnover which had enabled us to artificially balance last year's 100 Class budget was nonexistent this year. This may partially be due to the effects of the City's DROP Program. To date, no Civil Service employees have left the office during the entire Fiscal 2002 period, so we were unable to achieve any cost savings through the usual turnover of positions, occurring when employees leave or retire. To fully carry out our audit responsibilities, I hope this Council will consider future modest enhancements o our funding level. Our present responsibilities include conducting audits of 40 City departments, auditing the comprehensive annual financial report and federal financial assistance reports of the City and School District of Philadelphia, as well as conducting performance audits of the City and School District programs, state forfeiture audits, and grants audits, bond consent letters and various other topical audit requests. Our Pre-Audit Unit which is headed by Mr. McNeil, is chronically understaffed. The 1994 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) employees of this division struggle each day to expeditiously review and process well over 150,000 payment vouchers each year as well as monitor and inspect numerous City construction projects. Even though budget restrictions keep our sampling rate for vouchers to be well below where I would like it to be and where Jonathan would like it to be, our reviews have led us to savings of millions of dollars for taxpayers in several high-profile criminal referrals. With the start of the Mayor's Blight Program, it will soon become impossible to accomplish this vital check and balance without some reasonable additional revenues being allocated to this area. We also recently assumed the functions formerly undertaken by the Office of Director of Finance Risk Management Division regarding their fraud unit. We are currently working with the Inspector General and other law enforcement agencies to create a state-of-the-art fraud detection program, all with considerable savings to the taxpayers. Additionally, our Special Investigation Unit conducts regular surveillance as part of the City's employee injury and disability program. One of the things we would like to do in 1995 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) the future is work closely with Council in utilizing the expertise of the Controllers Offices in conducting topical audits of special interest to you and your constituents.
For example, in the recent past, Members of the Council have requested our office's assistance in investigating the procurement and installation of the new playing turf at Veterans Stadium, City-administered employee health care, prison health care, small business lending in Philadelphia, and most recently the structure of our local taxes, as I'm sure you'll well aware. I am very pleased with the comments we have received from Councilmembers on the audits we have been able to conduct and I am proud that you have come to rely on our office as a source for unbiased intelligent and professional fact finding. Although fulfilling all of these special requests is very important to Controller Saidel and to Philadelphia, conducting them is time consuming, expensive, and often requires the need for outside expertise. One of the controller's goals is to work constructively with Council this year to try to device a method of providing earmarked funding for some of these special audits on a project-by-project basis so that 1996 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) they may be conducted timely and professionally and be of use to this Council in conducting its public hearings and its legislative deliberations. Controller Saidel is extremely proud of the men and women of his office who always reflect great credit on our office and on the City. Our staff is often called upon to make presentation to other municipal auditors from around the country and have consistently won competitive national professional awards for their work. Controller Saidel has asked me to tell you that as long as he serves as City Controller he will continue to fight to maintain his high standard of professionalism and objectivity. On behalf of th controller and his staff, I thank the Members of this Council for your consideration, constructive thoughts, ideas and kind words. My colleagues and I will be happy to answer any questions you may have at this time.
Thank you. Are there any questions from Members of the Committee? How many people do you anticipate will be eligible for the DROP Program? 1997 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
Right now about people. However, they are in strategic positions. For example, there are two people who are in a supervisor capacity in our Pre-Audit Section, both of them are in the DROP Program, so we really have to get our training program started now to assume those positions in those roles because they're critical. That's a critical stop in the City's system of paying vendors. If something should go wrong in that system, all hell breaks loose, basically.
So you're starting the training program at this point?
We are starting it this year, yes. We have two years before these drops take effect. So we really have two years to get in gear. That should be sufficient time.
Because most of them, I think, start in October of '03. The Chair recognizes Councilwoman Brown.
Thank you, Madam President. Your question has prompted one from me as a follow-up. You mentioned that you have 10 in 1998 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) supervisory capacity that will be leaving. Is there another level of management above the supervisory level?
The people above the people who are leaving I mentioned in Pre-Audit are the Deputy City Controller and the City Controller.
And you also mentioned that you have training on-line.
We have not yet begun it. We're going to start it this fiscal year.
Okay. I am always observant of the makeup, the composition makeup of all departments, particularly at the upper level. So my hope is that women are in the pipeline to be part of the training so that they too can rise to the ranks of leadership in your department.
One of the people of the two is a woman, and we certainly will give that full consideration. We'd like that as well.
Are they Civil Service positions? 1999 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
Thank you. The Chair recognizes Councilman Nutter.
Thank you, Madam Chair. Good afternoon, Mr. Radwanski and the other members of your team here this morning. Not so much a question, but I wanted to take a full opportunity in a more public fashion -- from time to time the Controllers Office has certainly generated by its audits and by our Charter requirement the concern of the various departments that you make audit as is your responsibility and so you at times maybe take on a certain persona of these nameless, faceless people who do audits and make other people's lives difficult. On the other hand, I had occasion, and I wanted to thank you publicly, that in a non-audit capacity there was a particular night that I was actually somewhat stranded right outside City Hall, and you stopped as you were coming around the City Hall circle and asked if I was okay and then offered your assistance and helped me along the way. And I wanted to thank you for that. It was a very kind gesture and I just wanted to tell you 2000 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) thank you.
Thank you, Councilman. I would like add that we in the Controllers Office deeply appreciate the thoughtful approach you take to the legislative things that we bring to your attention. We appreciate you as well.
Any other questions or comments from Members of the Committee? The Chair recognizes Councilman Ortiz.
Thank you, Madam Chair. We've been dealing now with the prison audit for a while. We've been having some difficulties in achieving that. How far are we into that? The prison keeps on, and the administration, not coming forward with the information we need. And actually, it's becoming more and more imperative that the Controller be able to look at, if we're ever going to get a sense of how they spent $28 million.
Councilman, that's 2001 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) exactly what we had in mind when I mentioned the fact that we should develop some kind of mechanism where there's consensus in Council to do a particular audit that we can get the money appropriated to do it. For instance, like the prison health care audit is a matter of great concern to us. The City has spent over $110 million in the last six fiscal years on prison health care. And it a seems apparent from the numbers that we see that we're not getting the bang for the buck that we should. You've been very vocal on leading that issue. But we went out, we got a private firm, solicited a private firm to do the audit because it's not something that we can do in-house. It requires a certain degree of medical expertise. And we got a $90 thousand price tag. So at that point, we were kind of caught between not doing it and trying to do it to a lesser degree, which in my judgment would not have produced the effective really being able to measure the quality of prison health care. So at that point, we were stuck with what do we do. And that's why we thought of this mechanism. If we can only devise a mechanism where there's a consensus in Council for us to do a 2002 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) certain thing, we have the expertise to be run the audit effectively and most cost efficiently. However, sometimes in the office we don't have the medical expertise or other type of specialty expertise that's needed to do a particular audit. This is a perfect example of that.
And this is over a hundred million that we're dealing with and it's become obvious to your office, it's become obvious to City Council that we're not really getting the information and we're not getting the services that a hundred plus million dollars should be able to be providing the City. And I think we got the same problem in terms of information and being able to develop a policy for this Council. In Councilman Cohen's health investigation into the health insurance program that the City had contracted with, we were never able to really get all the information that was needed at that time. And we needed an audit there. I don't think we got that, right, David?
That's still ongoing, Councilman. That audit is still ongoing. It should be done very soon, within the next couple of weeks. 2003 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
But these are investigations that have been ongoing now for like two years. And we -- because of the financial difficulties and the ability to get information really has become extremely difficult to get a good grasp on the factual situation that we're encountering.
Well, we would appreciate your support in trying to get that through. In the meantime, we'll be happy to work with you to try to do something that we can do with our present means. We're very concerned also that this whole prison health care fiasco or prison health care system that they have now exposes the taxpayers to a lot of lawsuits that they would not necessarily be exposed to if the system were operating right.
That's right. So that's very important because it saves a lot of money for the taxpayers down the road.
The Chair 2004 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) recognizes Councilman Cohen.
I raise this question in a very tentative way, which for me is unusual. In addition to looking for a mechanism whereby Council and the Controller could work more closely together on specific audits, it seems to me that there's another area of great need for this high level of participation, and that is this -- I think your office is outstanding in the studies it conducts. If you're not the best in the country, you must be right next to the best, though I think it would be awfully hard to find any controllers office, whatever it may be called, that's enclose to yours in the superlative quality and product produced when you produce it. The question I have is that too often it seems to me that your work is wasted in the ultimate sense and that you raise issues, some departments feel kind of free to ignore them and then there seems to be nowhere for the Controller to go. I want to express to you that, speaking for myself, hopefully for a majority of the Members of the Council though we've never consider it, I think there ought to also be in your agenda a method of 2005 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) working together to be able to see that your studies produce results. They're wonderful in their analysis. But like the Planning Commission's recommendations, the can be completely disregarded. And I think we ought to find a way maybe not to change the legal impact but to make your recommendations have a much greater chance of being accepted because I think they're vital and very important to the health of the City. So I just suggest for your consideration, it's not a question at all, but if you wanted to comment that would be fine. I would just like to see your work have the ability to have a lot of clout behind it so that you have a method whereby -- and if we can help in City Council, we'd like help see that your recommendations are carried out.
I would just like to say, Councilman Cohen, I think your point is well taken. Jonathan Saidel is very good at utilizing the bully pulpit to get things done. This is very important because, as you say, we have no legal means of getting our recommendations enacted. It depends a lot on the Administration and its willingness to take what we say and act upon it. 2006 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) We have do an audit retrieval system that does quantify all of our audit findings and they remain on the books for a few books until we figure that there's never going to anything done about it. But we do keep track of it. If you'd ever like to see it, we'd be more than happy to share it with you. Any things that you have, any ideas that you have to help us better put forth our ideas to the public, which is -- you know, as it is yours, a lot of times you need the public support to get anything. We're very happy to get any suggestions and work with you closely on anything you might have.
Thank you very much. I cannot resist not asking this question. Not being an auditor, what does it mean -- and I ask this tongue in cheek -- when an auditor uses the expression found on of your testimony "artificially balanced"? Because we know if an administration official used that it would send signals, rightfully so, given the role and 2007 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) responsibility of your office. But what does it mean when an auditor uses the expression "artificially balanced"?
I don't think we meant it as a term of art, Councilwoman. But what we meant by that is the fact that in past years we have balanced our budget through attrition, through people leaving and the delaying of filling positions as well as other economies that we're able to afford. So we'd like to work with Council and the Budget Office who's been very helpful. I'd like to thank the Budget Office for working closely with us to help us make ends meet this year which was really a nip and tuck operation. But what it means to us is we have to produce extraordinary means to make our 100 Class budget meet ends at the end of the fiscal year. We'd like to be in a position where if everybody stayed and did their job and nobody left and everyone's happy, that we make ends meet at the end of the fiscal year. And we're not in that position right now.
Thank you very 2008 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) much. Are there any other questions from Members of the Committee. Seeing none, thank you very much.
Council President Verna, thank you, as always. Thank you Members of the Council.
Good afternoon, Council President and Members of City Council. My name is David Glancey. I'm the Chairman of the Board of Revision of Taxes, and with me at the table this afternoon are Rick Foglia, the Executive Director of the Board; and Robert Nix, the Secretary of the Board. I was about that far away -- and I say that particularly to Councilman Nutter -- that far away from simply resting on our written testimony, but it seem to me there was a pattern in the short time that I was here questions concerning the DROP Program, so I think I should probably just say that initially and if there's any questions that Council would have, we'd be happy to answer them. We have roughly 19 members of our staff 2009 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) who are going to be affected by the DROP Program. Of that 19, however, approximately are in the 4 evaluation section of our program. We have 5 generally, I think similar to the Department of 6 Revenue, generally a graying staff. And those 16 7 are going to take advantage of the DROP Program 8 probably the end of '03 beginning of '04 I guess is 9 when that will actually hit. And I have spoken to 10 Mr. Dubow about this particular situation in that 11 what we need to have are entrance level folks now so 12 that we can do something when -- have at least some 13 of the institutional knowledge that some of these 14 folks have as they leave transfer to some of the 15 entrance level folks. But that is our situation. 16 We consider it serious. We've talked to both personnel and have talked to the Budget Department about it. Hopefully, we will be able to if not completely replace everybody, we'll have enough replacements early on so that we can function properly. And with that, I will take any questions you may have.
Are they Civil Service positions? 2010 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
I don't need to see it. I just was wondering if they had to advertise, given a test, or whether there is an existing list available.
We have existing list for certain of those who are going to leave. An existing list that we are asking personnel to make, however, is a list of entry level folks. We have folks that we can promote, but what we need to have are entry level positions that will take the place of those who are leaving. We can always promote internally, and I believe -- there may not be a list for every position, but for the real important positions, there is a current list.
We all have copies of your testimony, and I wanted to make certain that the stenographer did have a copy of it so that she could include it in her notes. Mr. Glancey, how long has the BRT been 2011 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) using the geographic market areas as the basis for the Equalization Program.
I believe we're going into our third year. Let me just ask my staff. Yes, this is the third year.
Will this program reduce the number of assessors?
What is the percentage of appeals received following a market value change?
This year we received -- I'll talk about this year specifically and then say generally what we get. This year we received around 5,000 appeals out of 200,000, roughly, noticed that went out. For the last two years, that has been somewhat average, 1/2, 1/2 percent. We have had years in the past where we've had 10 percent. I think the reason, even though we sent a greater amount of notices and have had a fewer amount of appeals is noted in our testimony on . We have improved the communication that we have with each and every taxpayer who gets noticed. We've 2012 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) improved the communication with each and every taxpayer who doesn't get noticed. We try to send out in a water bill, which we have done, FAQS, the facts about what to do if you get an increase in your market value and just kind of tells you what our office is. We have a Website that will answer those very same questions. And, of course, our notice has been revamped to give folks more information about what the value of their home is, why we think it is that value, and ways that they can contact us and talk to us and see why we do what we do. And that, again, can be either through computer, it can be through e-mail, it can be through fax. Or it can be a person-to-person conversation on the telephone. So having said all of that, I think the reason that we have seen appeals decrease even though notices increased is that the process is somewhat more transparent. I mean it can get more transparent. We hope to always be as transparent as we can. And that folks are starting to understand more and more what we do. And I also believe that we are better at doing what we're supposed to be doing. We're not there yet. We're not a hundred 2013 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) percent of where we should be. However, I believe that our Equalization Program, although it obviously is going to cause some pain folks because if you increase the value that means your taxes are going to go up. But we have to look at it just as what our job is. Our job is to try and track values as best we can. Of course, we don't do that in a vacuum. We attempt to do that while also understanding the kind of human anguish that that sometimes causes. But we also know that our driving force is to try and track values. So if you we do a bitter job and we communicate to folks what we're doing, I think we'll see a lower amount of appeals and the ability to do this on a yearly basis, which is what really the best practices are. Now, doing it on a yearly basis doesn't necessarily mean that there is always going to be humongous increases. If we did it on a yearly basis, it may very well be that smaller increments year by year by year would be much more acceptable. I mean, those are of the kinds of things that we work on in between assessment periods along with whatever changes in technology that come along to help us do what we're supposed to do. 2014 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
Thank you. The Chair recognizes Councilman Nutter.
Thank you, Madam Chair. I'll be brief. Mr. Glancey and Mr. Nix, as Chair and Secretary of BRT, first I want to thank you for the continued good working relationship between my office and my staff and your staff on the very delicate issues that we often find ourselves trying to work on. When constituents receive their assessment bill, the number may not be a number that they think is appropriate, and your office has been very kind and quick to try to either get someone scheduled or get them an explanation. So I want to thank you for that very sincerely. Mr. Foglia as the Director has also provided tremendous service to constituents. And I've had the occasion a number of times to literally drive Joe Williams crazy, but he continues to take my calls and I deeply appreciate it. Lastly, I would ask if we could have Mr. Davey come up and spend about an hour or two explaining, as he often does, how the Board actually does its work, how assessments are made. 2015 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) (Laughter.)
And, Mr. Glancey, you were too kind. I think the reason that you're probably seeing fewer appeals is I believe more people are being given Mr. Davey's phone number, and as a result of any of those conversations, people realize that there is no way in the world that they're assessment he its going down. (Laughter.)
And I would say with my good friend Mr. Dubow in the back that, Mr. Dubow, you still have a ways to go in terms of being able to explain something in such a way to meet the standard that Mr. Davey has attained. If you keep working on it and one day you, too, will be at that level. (Laughter.)
Mr. Davey knows that I'm only joking with him. I do tremendously appreciate what he does in a very complicated system. But the office provides good service, and I wanted to thank you for it.
Thank you, Councilperson. I might just add parenthetically that the Gene Davey 2016 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) road show is tomorrow evening at Society Hill Towers if you care to attend.
I can only imagine what that will be like. (Laughter.)
Thank you very much for your kind words. We really appreciate what you said thank you.
Thank you. Good morning, gentlemen. Let me start off by echoing Councilman Nutter's comments with regard to the service that your office renders. I too can speak from personal testimony particularly as it relates to the assistance you gave us with the due diligence around the land value tax. And as a follow-up to those discussions, you shared with me that you believe your budget would need to be increased by approximately 7 million. If we were able to, A, get it passed out of City Council and signed by the Mayor, and then, B, implement it, can you speak to that today, share with us how you arrived at that estimation and what tremendous 2017 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) impact that would have on the City's budget both positively and negatively?
Certainly. That number, as you know, we tried to put together as quickly as we could when we talked to you in your office. And also, we had a little more time and we thought we might be here for some testimony January 30th, but obviously whatever happened, happened. And we were not able to present testimony then. We believe that if a land value tax is implemented, there would be a need to revalue every parcel of land in the City of Philadelphia at its highest and best use. And I think I saw Professor Robert Inman agree with that. He said if you're going to start a program like this, you have to do it correctly. You can't simply take the land allocation that is currently there. Let me backtrack one quick second. We don't value land. Our evaluators value the land and the improvement. Example, you pay $100,000 for your property. Basically, that's what the evaluators value, that's what real property appraisers value. We have to artificially place an allocation on the land under that improvement. So when your property -- I would ask you a question or anybody a question. 2018 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) How much did you pay for the land under your property? Nobody knows what that is really. They know what they paid for the improvement in its entirety, and that's what our staff values. So I think as a rule of thumb, and this is very rough, our evaluators because the law calls for them to do it would say if it was a hundred thousand dollars parcel, the house and the land under it will cost you $100,000, we'd put roughly percent or a third 11 on the land. But nobody's really done a study of 12 whether that's what the value of that land is 13 because we don't have to. I mean, it's something 14 that we wouldn't do. It would waste an awful lot of 15 time and then obviously have not benefit to what we 16 do in putting values on property. 17 However, having said that, that's why I 18 believe we would have to re-value every parcel of 19 land in it City to try and get an accurate highest 20 and best use. Highest and best use for a vacate 21 piece of land in Center City would probably have to 22 be valued at more than whatever it is today, 23 obviously. It could be and office use at that 24 particular location. And I'm just making this up 25 hypothetically. So one of the problems, as I think 2019 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) as I told you with the land value taxation, was we now have to look at that and say, Okay, the market says we shouldn't be building offices. Right now the market is not -- I mean, that is happening. We shouldn't be building offices. However, because we have to put the highest and best use on this property, highest and best use value on this property, we would value that land as if it could be an office development. So what would be as vacant land, no real high use, say at bucks a square 12 foot would all of a sudden be 80 or 90 bucks a 13 square foot, a significant increase. 14 That's not what your question is and 15 that's really not the problem. That's something that we would have to do systemically. But what I have and I can share this with you and with Council if you'd like after this hearing, is that we believe that we would currently have to increase our salary costs by about 4 million because we would need to completely reshape our organization. We'd have to have land value specialists because once you institute it, you have to maintain it, obviously. We also think -- and again, these were very rough figures -- that we would probably have to 2020 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) add about $650,000 for Class 400 and Class 200 types of expenditures, you know office and equipment, furniture, desks, chairs, all that kind of thing that goes along with adding some staff. We believe that, again, and I say this to that total of 4 million 6 and the 600,000 comes -- I'm sorry. With benefits added in. The 4 million 6 would be salaries. The benefits would be about 6 million 7.
We roughly figured 40 percent plus or minus on the benies of that. We are conservative. We went over what I think we would actually have to spend because I think we have to give you the most conservative look. The total was roughly $7 million. I think that -- you know, it might be high. Maybe it's 5 million. But that's still a lot of money. And then in the first couple of years you'd probably have to sustain it at that kind of level. It may drop off, it may go down as we go further into a program like that. But one of the things is we don't really know. Without getting into the merits of the tax itself, I'm not sure what it would actually cost to maintain a system. The other thing, Councilwoman, which I think is very important is that during the 2021 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) institution of such a program, we would almost have to have two systems. We'd have to keep our current system while we are an instituting this system, similar to what we all do with computers today. You have to keep your current system going before you can institute the new system. So with this, though, we're talking about our current budget of 7 million something, plus an additional, we'll call it 5 to 7, you know, trying to get these new system oriented. Again, these figures are the best we could do at that time. We can try to refine for if you wish, but I think that they're ballpark accurate, at least for the first two, three, or four years if we went to that kind of program.
Well, you've certainly answered my follow-up question, which is, would that figure hold for all subsequent years to follow. And then lastly, given that level expenditure, would the benefit outweigh, the benefit that we're trying t yield from this split rate tax, would that outweigh the tremendous expenditure that we're doing on the front end?
My opinion is it does not. 2022 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) But there's lots of opinions about this. Because you really are getting to the merits of whether a land value tax is some that is useful. My opinion is that if the point land value is encourage development, and that really seems to be what all the proponents say, that if make land value higher, the holder of that land will do something with it as opposed to sit there and speculate. That's in a nutshell is the point. My opinion is that unless there is a market demand for development in whatever that area might be, if also there has to be favorable interest rates to borrow money in order to do that development, and there has to be kind of a City-wide land policy that allows this kind of development to take place. That, in my estimation, is much more important than the tax policy. I think -- and again, to be fair, the proponents of land value tax say, "Well, this will create the demand." I haven't seen it. That may be the case. What I had suggested initially to the City Controller was why don't we just get an honest broker to do some kind of a pilot study in a portion of our City and see if this can work. Don't use the 2023 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) land allocation numbers that we currently have because they're not values. It would seem to me if we had a econometrics and some appraise that would volunteer their time -- and maybe the reason we don't have that is because nobody is volunteering their time because it would be a pretty expensive proposition, it seems to me, to take a third or a quarter of the City, revalue the land up there and see whether or not by using all kinds of modeling whether or not it would encourage development at least according to me. Look, there's been on both side of this issue I think that there's a lot of emotion. There are those who think -- the proponents thing that this is the greatest thing since sliced bread, and there are those on the side who said that this just pure hokum. I fall somewhere in the middle. I honestly believe that if there were to be some sort of fair study, a study that's not done by either a proponent or opponent, it would be something interested to see. But there's one think I would add -- and I know I'm being windy here about this. It was in something called the Illinois Real Estate Letter. A Professor Edwin Mills, is land taxation 2024 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) practical. Professor Mills who teaches at Princeton and Johns Hopkins and is a renowned urban economist, is a proponent of the land value tax. He's an absolute proponent of the land value tax. However, his conclusion after answer the question, is land taxation practical, he states, and this is a 1998 study, The theoretical advantages of shifting the property tax base entirely or predominately to land alone are great. So he says that theoretically this is a great thing to do. However, the practical problems of land taxation make it sufficient implementation inconceivable. He doesn't say difficult or hard or we don't know. He says inconceivable. And that's the proponent of land value tax. So I do believe that the practical problems that we speak about, and when you and I have talked about it, are such that it would be a very expensive proposition. And I'm not so sure the upside is worth it. Sorry for taking up all that time.
I really appreciate it, particularly the new information that you've gotten since the introduction of this bill. And my 2025 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) opinion at this hour simply makes for a hard sell given the kind of information you've shared. So thank you for that. My second and final question speaks to that your office now has Internet access for residents who want to look up property records? You mentioned that there is now Internet access. Is this up on the Web now.
And I know that Mr. Goppelt and his hall watch piece also does something along those lines. What are the differences as you view them?
Well, I think ours is more current. One of the conflicts that we might have had initially was that Mr. Goppelt did not want to pay the cost of what we sell our CD for. That was two months in the making, I guess, that squabble over a hundred dollars, I might add. That's all it cost. But our information is more current because we will update it. And if we update it, that means that those who have purchased the CD have the CD they bought. We would love to update monthly. 2026 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) We're not there yet. The last update, I believe, was in November. Yes, November 27th was the last update that we have on the screen. I might add, however, though, that we receive from MOIS from January 18th until February 26th, that site received 327,000 hits. So it was really being utilized greatly. And we try to do everything we can to encourage that kind of use.
Thank you. The Chair recognizes Councilman Goode.
Thank you, Madam President. Good afternoon, Mr. Glancey. This may be a more appropriate question for the Revenue Commissioner but I forgot to ask it while she as the here. In your testimony, you talk a lot about real estate tax incentives, abatement programs. Do you know in terms of Fiscal Year '03, can you give me an estimated amount of foregoing revenue for all tax 2027 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) incentives on real estate?
What your real question is, what is the taxable amount of the abated assessment if it were taxable. It's roughly 6 million, 7. As you note in the testimony also, it's 7 right after the appendix, there's two pages that 8 shows all of our abatements listed in chart. It 9 also indicates that the taxable amount of those 10 abated properties is about 5 million 9 or 5 million 11 6 or something like that. But the abated amount, if taxable would be 11 million 7.
Could you tell me roughly, if you know, what that figure would be under this Administration since January 2000?
Can you tell me what the figure would be for the administration from January 200 to the end of this fiscal year?
I would have to see if I can figure that. It's a running you're asking for?
Yes, running total from January 2000 until the end of the fiscal year.
Okay. So the first six 2028 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) months of this year calendar-wise.
Yes, that's correct. Could you just forward that to the Chair.
Sure. I'm sure we can do that, I just need to double check. Yes, we will forward that to you. Thank you, Councilman.
You're welcome. The Chair recognizes Councilman Ortiz.
Good afternoon, Mr. Glancey. You know, that thing about empty land, the neighborhood that I now live in, Northern Liberties, has quite a few lots that have no building on it. And the prices on those lots have been skyrocketing in terms of the value of empty land. I say value because real estate individuals are asking a lot of money for them. My wife's cousin went to try to see if they could buy one, and from September to the end of November, the price has always doubled.
The price or the asking price? 2029 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
The asking price. I said to them, I said, "Why don't you go into see what the market value is in terms of your shop." And the value that your shop had given was like the minimus compared to the asking price of the real estate. Obviously, a demand is there.
One of the major building blocks would be actual sale. I'm sure there are some sales like what you just described.
Could be. Evaluators will look at records to see what folks are asking for this kind of property. And there can be some reaction. If you were the seller and you came before our board on appeal and said, "Wait a minute. I'm asking a million dollars, but I could ask $10 million. It doesn't mean anything. What matters is these three sales that sold for 200,000. And they would win because under the law that's what we have to do. We have to just look at the sales. However, I think there are a couple of ways that our staff is now, again, using the technology. I think our staff is better able to see what's out in the market, to 2030 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) see what asking prices are, and make phone calls based on that to the brokers and see if, look, you've got a listing price of a million dollars for this piece. What are you really going to take? You know, those kinds of things. All of those are indications of value. And then to make some reasoned and professional judgment on that value.
Because it turns a neighborhood that may be getting up and moving, you price it out of the range of the people who may want to come in and develop.
Sure. I appreciate what you're saying. Again, it's one of the things that our staff has to do. There are things when you've got 576,000 properties -- and that's not an excuse -- that fall through the cracks, we've got to make sure that those cracks are narrower and narrower and narrower so that when this kind of information comes to our attention that we can react to it. But be assured, however, we can't react to it immediately. We do have to wait a year. If, for instance, that were to be told to me today that that property sold for a million, we couldn't change that value today. We'd have to wait until our next 2031 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) assessment date to change the value.
The guy who I bought from, there was a couple lots and my wife finally decided that she wanted that last lot. And from today to tomorrow it went from 15,000 to 30.
Well, you know, sometimes that's how the market works, too. If you have a real desire somebody's going to jack the price up.
Definitely. That happened. What is projected revenue that will be derived from our taxes for the public education system in the year coming up?
I think we're looking at certainly what we did for '02. Now, these are gross numbers. I will tell you if everybody paid every dollar they owed on a given day, these would be the gross numbers. That may not be everything that's collected.
Yes, it would go to the schools. We figure it's roughly $840 million gross. City and School District. 2032 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET)
Let's call it 25, $30 million. But that is a total. Now, 55 percent of that is School District money. So 55 percent of 30, we'll say roughly would be what you're looking at. So about $20 million. But, again, we are making that projection based on what we did this year to what we will do next year. Just don't hold us specifically to any given number, we're looking at those figures and I think that's pretty accurate. That's what we did this year.
Yes. But, again, gross numbers. If everybody paid -- there are people who aren't going to pay taxes and there are obviously -- you know, there are collection problems that Revenue must have. So if you wanted to look at what was actually collected, I guess you'd have to ask the Department of Revenue. But the numbers that would 2033 3/11/02 - WHOLE - BILL 02001 ('03 BUDGET) be floating around in my head would be somewhere around $800 million total, you know, 810 million total. And 55 percent of that would be going to the School District.
Thank. Are there any other questions from Members of the Committee?. Seeing none, thank you very much. This hearing has been very informative. Thank you. This committee will stand in recess until Tuesday, March 12th at 9:30. Thank you. (Council adjourned at 1:00 p.m.) - - - 2034 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 March 11, 2002, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE OF THE WHOLE ___________________________ Lisa C. Bradley, RPR and Notary Public