COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE OF THE WHOLE - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, February 28, 2006 10:35 a.m. - - - PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN DARRELL L. CLARKE COUNCILMAN FRANK DiCICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JACK KELLY COUNCILMAN JAMES F. KENNEY COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN JUAN RAMOS COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN B. TASCO BILL 060003 - An ordinance adopting the Operating Budget for Fiscal Year 2007. RESOLUTION 060099 - Resolution proposing an amendment to Bill No. 060003 which provides for the Operating Budget... RESOLUTION 060100 - Resolution proposing an amendment to Bill No. 060003 which provides for the Operating Budget... - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2
Good morning, everyone. I apologize for the delay, as usual. However, we will start our public hearing of the Committee of the Whole, and I would ask Mr. McPherson to please read the title of the bills and resolutions before us this morning. MR. McPHERSON: Bill No. 10 060003, an ordinance adopting the Operating Budget for Fiscal Year 2007. Resolution 060099, resolution 13 proposing an amendment to Bill No. 060003 which provides for the Operating Budget for Fiscal Year 2007 and a corresponding amendment to Resolution No. 060019 which provides for the Five-Year Financial Plan to increase the City's contribution to Community College of Philadelphia in order to achieve 33 percent City funding in five years. Resolution 060100, resolution 23 proposing an amendment to Bill No. 060003 which provides for the Operating Budget for Fiscal Year 2007 and a corresponding 3 2/28/06 - WHOLE - BILL 060003, ETC. amendment to Resolution No. 060019 which provides for the Five-Year Financial Plan to increase the budget for the Police Department to allow for the hiring of an additional 250 officers over a three-year period.
Thank you. I would ask Mr. McPherson to please call our first witness. MR. McPHERSON: The Mayor's Office.
Good morning. Please identify yourself for the record and proceed with your testimony.
Good morning. I'm Joyce Wilkerson, Chief of Staff to Mayor John Street. Thank you for this opportunity to provide testimony regarding FY07 operating budget for the Office of the Mayor. The total amount requested for the Mayor's Office from the General Fund for FY07 is $5,129,104, an increase of 4 2/28/06 - WHOLE - BILL 060003, ETC. $399,615 over year 2006 estimated obligations. Of this total, $4,929,104 is for employee compensation, purchases of services, material, supplies, equipment and contributions. The largest portion of this request, the Class 100 appropriation, includes $4,020,129 for 62 positions, which represents an increase over the FY2006 estimate. This increase constitutes an increase of, I think it's, approximately positions of the 14 authorized level for 2006, reflecting the 15 transfer of the Empowerment Zone 16 positions from MOCS, the Mayor's Office 17 of Community Services, budget into the 18 Mayor's Office budget and the related 19 consolidation of Empowerment Zone and NTI staff under the direction of a single senior administration official in the Mayor's Office. The Empowerment Zone Grants Revenue request remains in the FY07 MOCS budget. There is also an increase of $200,000 in Class 200 5 2/28/06 - WHOLE - BILL 060003, ETC. appropriation. The positions and related funding for the ethics oversight function currently carried out by the Board of Ethics has been transferred from the Office of the Mayor to the Law Department, with the expectation that in May, the voters will approve the proposed Charter change authorizing the creation of the Ethics Commission. I am pleased to report that the City's investment in our federal and state lobbying teams continues to pay healthy dividends --
Excuse me, Ms. Wilkerson. The noise level is really much too high. It's very difficult to hear the witness. Anybody having conversation, please do so in the corridor. Thank you. I'm sorry.
Our federal team advocated the City's funding 6 2/28/06 - WHOLE - BILL 060003, ETC. priorities on many fronts, including the FY06 departmental appropriations legislation and the legislation reauthorizing the highway and transit programs. 8 million over five years for various elements of the Philadelphia North Delaware Redevelopment Project. 25 million for FY06 for the Philadelphia's Youth Violence Reduction Partnership initiative to help bolster the City's efforts to reduce the high incidence of violence and homicide among the youth population. In a separate Department of Justice reauthorization and with that input from City, Congress approved an authorization to launch a national youth violence demonstration project authorizing grants to local governments to fund programs to reduce juvenile and youth violence. The legislation 7 2/28/06 - WHOLE - BILL 060003, ETC. authorizes 50 million the first year and additional funds to be appropriated through '09. Senator Specter shared Mayor Street's concern regarding the need to focus resources to suppress the surge of youth violence in Philadelphia and other cities and was instrumental in securing the new program. Other priority issues for the City which were on the federal team's agenda included preserving CDBG funding and local prerogatives over eminent domain, homeland security legislation and Urban Area Security Initiative funding levels, telecom reform, Renewal Community Tax Incentive modifications, Workforce Investment issues and Amtrak funding. Our team in Harrisburg was critical in advancing several important legislative and budgetary issues, including assistance with passage of the Affordable Housing Trust Fund, which enables the City to increase deed registration from placement of a trust 8 2/28/06 - WHOLE - BILL 060003, ETC. for affordable housing programs; incorporation of a seven-year grace period on implementing restrictions on the use of eminent domain, which is currently being considered before the legislature; and the pursuit of authorization of state funding for highway patrol officers. The team also worked hard to protect our interests on various legislative initiatives with potentially negative impacts on the City. While we're on the subject of lobbyists, I'd like to note that the Administration continues to support enactment by this Council of comprehensive lobbying disclosure requirements with respect to Philadelphia's City government. As you know, February 1st the City went live with eContract Philly. There's still outstanding issues in order to enhance transparency and so the Administration will be lobbying in support of disclosure requirements legislation that's been 9 2/28/06 - WHOLE - BILL 060003, ETC. previously transmitted. The principal remaining portion of the General Fund total in our proposed FY07 operating budget, $200,000 in Class 500, is for City scholarships. This amount will continue the Mayor's Office scholarship program for Philadelphia students who attend classes at area colleges and universities. The program is distinct from the College Opportunity Resource for Education Philly scholarship program inaugurated with the graduating class of 2004 through which system-wide scholarship assistance has been made available to every eligible graduating senior. Funding for that program in the amount of 4 million is included in the Finance Department's FY07 Class 200 budget request. The Grants Revenue request for FY2007 is $1,265,725, representing an increase of $399,797 from FY2006 estimated obligations, a decrease of $844 from the FY06 original appropriation. 10 2/28/06 - WHOLE - BILL 060003, ETC. These grants are principally from the federal government to support the Mayor's Commission on Aging. The grants will enable funding to assist older adults with job counseling, training and placement and health insurance counseling. As you will recall, beginning in FY05, grant funding for the Mayor's Office on Literacy was transferred to the Free Library.
You will be hearing from the Mayor's Office of Community Services, Housing and Community Development, Office of Labor Relations and MOIS for their FY07 operating budget request later in these hearings.
Thank you very much. Ms. Wilkerson, on of the detail under Section C, General Fund, you show that you had 47 budgeted full-time positions for 2006. As of the increment run, you had 59 filled positions and you are requesting 62 positions for FY2007. 11 2/28/06 - WHOLE - BILL 060003, ETC. Why has the Mayor's Office exceeded its budgeted level for 2006 by positions, and can you please tell us 5 the titles of these positions? 6
The confusion 7 in part reflects the transfer of the 8 Empowerment Zone -- the merging between 9 Empowerment Zone and the Neighborhood 10 Transformation Office in the Mayor's 11 Office. We need to reconcile those, and 12 we'll provide Council with a correction of that. When Pat Smith left NTI, the decision was made to appoint Eva to be the Executive Director. So we've eliminated her position under the Empowerment Zone and have gained certain efficiencies, and that was not picked up in the -- it wasn't picked up correctly in the December run. So I want to get that correction to you.
Great. Thank you. Why are you requesting to 12 2/28/06 - WHOLE - BILL 060003, ETC. further increase your 2007 budget by an additional three positions for a new total of 62? Again, I would ask what are the titles of those new positions?
The Administration is increasing by one in the communications office to beef up our communication function. We've also now got a -- are appointing a Deputy Secretary for Education. Currently, Jackie Barnett is working alone. And then there's one more administrative position that we're adding, in addition to the transfer of positions into the Mayor's Office from MOCS.
You are requesting $200,000 in the General Fund for an educational summit. Can you explain the purpose of this summit and what will be the scope of services of this contract?
I don't have an exact scope of service. What I can tell you is what the plan is. 13 2/28/06 - WHOLE - BILL 060003, ETC. Back when the Mayor negotiated the partnership agreement between the Commonwealth and the City, one of the things that it did was launch myriad different models for delivery of educational services. We have Edison running some of our schools. We have charters running some of our schools. And what the Mayor committed to at the time was a willingness to explore a lot of different educational models. We think we owe the public a report back on what has happened. There are also, as you know, outstanding issues about public school funding. The City took on a substantial increase in funding for public education that in part supported deficit financing for the District that is exhausted as of the end of FY06, and so we feel there's a need to also engage the public around the funding needs for education moving forward. But we don't have a scope of service, but expect that some of that 14 2/28/06 - WHOLE - BILL 060003, ETC. analysis will require professional support.
Thank you. On of the detail, you are listing five firms for lobbying services that total $231,200. Is this the total for the lobbying services? Is this City-wide?
These are the lobbying services from the Mayor's Office. There are certain City departments that lobby separately. For example, the library has separate lobbying, and I don't know if that's funded out of the General Fund or out of the foundation. PGW, although it's not directly a part of the City, also has its own lobbying resources. But what the Department's identified -- what the contracts cover is the bulk of the City-wide lobbying effort, and we can provide a written report on the specific issues around which we lobby. We're 15 2/28/06 - WHOLE - BILL 060003, ETC. currently in the process of gathering from departments across the City issues around which we want to lobby. We lobby fairly aggressively around earmarks in support of various Administration initiatives, and I captured some of that in the testimony. We also have been lobbying aggressively with the Redevelopment Authority around eminent domain issues at both the federal and the local levels, and so we --
We would appreciate it if we could have a City-wide list by firm, what the scope of service is and certainly who can access these services and what the amounts are.
The Chair recognizes Councilman Rizzo for a 16 2/28/06 - WHOLE - BILL 060003, ETC. point of information.
Madam President, I'm sure you remember the last time the Chief of Staff was here I asked that same question. For many, many months I've been asking for that, because in our work, there's times when we have interaction with the state similarly when we're talking about relationships with PennDOT or the reimbursement for the state police patrol. For many months, I've asked the Administration who can we talk to up there that can help represent us, and never ever got an answer. I asked at the highest level of the Administration. So I don't know why it's a secret. Chief of Staff pointed out that it's in the budget and she assured us in her last visit that that information was going to be forwarded. Did you receive it, Madam President?
No, I did not. 17 2/28/06 - WHOLE - BILL 060003, ETC.
Ms. Carolyn Nichols is the direct contact for the federal lobbyists. She can share with you the various issues, what the expertise is, and I'll make sure that she reaches out to you in order --
Chief of Staff, I appreciate that, but in our work, knowing that we have people that can cut some red tape for us when we need some help out of the state and federal government, not knowing who they are is a very difficult situation, and you can imagine when you ask a simple question like that and not get an answer, you wonder why.
Well, could you tell us how many state lobbyists do we have and how many federal lobbyists and who are they?
If you look on of the budget detail, we're using 18 2/28/06 - WHOLE - BILL 060003, ETC. Whitman Diamond for lobbying services at the federal level, Patton and Boggs for lobbying services at the federal level, Borsky Associates for lobbying services at the federal level, Washington Linkage Group for lobbying services at the federal level, and American Continental Group for lobbying services at the federal level. We also work with Ernie Barefield. And I don't know exactly where his contract is funded, but Mr. Barefield. And on discreet matters, from time to time Wojdak Associates will also work with us. PGW works with Gmerek around PGW issues.
Wojdak and Ernie Barefield work with us on the state level. 19 2/28/06 - WHOLE - BILL 060003, ETC.
I mean, I'm not trying to be picky. I'm just trying to make my work a bit easier. If we're paying people to help us, we should be able to ask a question of those folks and say, Hey, look, we need the name of a contact or could you help us with specific pieces of legislation. Especially helpful when I did the red light cameras. I had no help.
What we can do is, we bring the federal lobbyists in from time to time and meet with the local lobbyists from time to time, and we can set up a briefing for members of City Council.
It would be great to know they're there since we're paying them.
Thank you. That would be really helpful. 20 2/28/06 - WHOLE - BILL 060003, ETC.
We can work out a mechanism so that you can plug into their services as well.
You're welcome. The Chair recognizes Councilwoman Tasco.
On 16, you have a Fiscal 2007 obligation of $200,000. The provider is to be determined for an educational summit. Could you explain that, please?
I talked briefly about what we wanted to do. When the Mayor entered into the partnership agreement with the state, we launched a lot of different models for school governance. We have charter schools, we 21 2/28/06 - WHOLE - BILL 060003, ETC. have the Edisons, the private foundations running schools. It reflected a commitment to explore what model works best. We want to do follow-up work with that. There are also huge funding issues. The School District survived in part over the last five, six years because there's been deficit financing. That money runs out, and so there are issues around that, where we want to do some work. The ethics, the new contracting law applies and so we will be soliciting for consulting services using the methodology that's spelled out in the new contracting law, and so we'll be posting the scope of work, we'll be soliciting bids for that. But I don't have a scope of work at this time.
In your testimony, you talked about the money that had been earmarked from the federal government for some of the services for 22 2/28/06 - WHOLE - BILL 060003, ETC. the Philadelphia Violence Reduction Partnership and there's another Department of Justice reauthorization program. This year I think the Congress eliminated earmarks. What impact would that have on the earmarks that came to the City in 2006?
Carolyn Nichols works with George Burrell in the Office of External Affairs and she's our principal.
Just quickly in answer to your question -- Carolyn Nichols, External Affairs. There's a movement to eliminate earmarks, but they have not been eliminated as yet. Earmarks are attached to the appropriation bills, and the federal budget because it's so huge, 2.7 trillion, you have about 11 appropriation bills, and the different departments are kind of clumped together in the bills. And there are earmarks attached to those appropriation bills. 23 2/28/06 - WHOLE - BILL 060003, ETC. It's true that Senate McCain and President Bush and some of the congressional leadership have talked about eliminating earmarks, but they have not been eliminated as of yet. So what's going to happen, according to McCain, is every earmark that comes up on the Senate floor, he's going to challenge and try to knock it down. But it has not been eliminated, because a lot of the Senators and the Congress people need those earmarks for programs, very valuable important programs in their own districts. So the earmarks have not been eliminated as of yet, and we're very aggressively, as Joyce has said, moving to get our earmarks funded.
We, this year, surveyed the various departments, had 55 items identified, 55 potential earmarks we wanted to go after. We're culling that down to 20. It's everything from bomb detection equipment at the airport 24 2/28/06 - WHOLE - BILL 060003, ETC. to runway extension, to youth violence programs, to maternal care programs. And I could aggregate the dollar amount, but it's probably in excess -- it's over $50, $60 million. I mean, it's a substantial amount of money. But we can pull together a report. We've been successful over the years in getting greening money. There are just a whole host of areas where we've met with substantial success. And not all the initiatives involve money. We've been very aggressive around the eminent domain issue that's critical to our NTI strategy and trying to rebuild the City. So we can pull together a report on that and share with you the kinds of issues that we're looking at and also set up the meeting so that if there are other issues that Council wants us to be pursuing, we can work with you around that.
Okay. I 25 2/28/06 - WHOLE - BILL 060003, ETC. won't talk about eminent domain. I'll wait until the Redevelopment Authority comes, but that story in the paper this morning didn't help our effort.
I don't know the details of that. Just in defense, I think that we have worked hard to try to put together an eminent domain program that is responsive and sensitive to the trauma that a lot of people go through. And I don't know what happened in that situation, but we've worked hard trying to do a better job.
On of your testimony, you talk about the $200,000 in Class 500 for the City scholarships and then you talk about the CORE program, which is separated out for every eligible graduating senior in the amount of $4 million. Is that one $4 million or is that recurring every year $4 million?
It altogether was, I believe, a four-year commitment on 2/28/06 - WHOLE - BILL 060003, ETC. the CORE scholarship, and the expectation is --
Yeah. And the 11 expectation is that private funds will 12 replace what has been largely City 13 supported over the years. 14
So do you 15 have any idea how many scholarships we 16 have and what the fund balance might be now?
I can get you a report on that. I don't know that right now.
Thank you. Are there any other questions from members of the Committee of 27 2/28/06 - WHOLE - BILL 060003, ETC. Ms. Wilkerson? (No response.)
Thank you, Madam President. I do have one. On the bottom of the first of your testimony, there is a mention of the $50 million investment from the Department of Justice. Is all of that going to the Youth Violence Reduction Partnership? Is that being divided among several municipalities, or what? What's the background?
Carolyn Nichols again, External Affairs. The way that's written, it is, I apologize, a little confusing. The 50 million is actually nationwide, and for cities that meet certain requirements, I think you have to have a million population and certain other criterion, a city can receive up to 15 million in any one fiscal year. So, no, 50 million does 28 2/28/06 - WHOLE - BILL 060003, ETC. not go to the City. And it's the Youth Violence Reduction Demonstration Project.
Well, it's not a 7 sure thing. There are certain 8 criterion -- 9
Yeah -- 12 (continued) that has to be met. It can 13 be authorized up to 15 million. The City 14 may not get exactly 15 million. Up to 15 15 million if certain criterion are met, as determined by the Department of Justice.
Any read on when the City may be awarded that money, if at all?
The problem with the appropriation process, the way it works, the money may be appropriated to the City in any given fiscal year, but the release of the money is a very different matter. 29 2/28/06 - WHOLE - BILL 060003, ETC.
Sometimes we're like a couple fiscal years behind before we actually receive the money, because, unfortunately, that's something that's not within our control.
Sure. I understand that. And then, finally, should the City be awarded any of those dollars, all of them will be targeted for the Youth Violence Reduction Project?
Yes. It all has to be targeted for that. You can't spread it out and do other things with it.
Very well. Okay. That was my only question. I thank you very much.
Thank you. The Chair recognizes Councilman Kelly. 30 2/28/06 - WHOLE - BILL 060003, ETC.
Yes. Carolyn, I was just wondering, that $15 million, does that have the approval or support of our federal officeholders; do you know?
No, it's not required, but do you know offhand if they are supporting this?
Yes, indeed. Our Philadelphia delegation was a leading force in developing this legislation. Yes. But their approval isn't a prerequisite for the appropriation.
So in your opinion, what do you rate that as to be successful in getting the 15 million?
No. It's 31 2/28/06 - WHOLE - BILL 060003, ETC. very important, but what are our chances?
I don't want to say that the City will definitely get 5 million, because I can't say that. Up to 6 15 million. I can't say the City will 7 definitely, yes, it's done. No, I can't 8 say that. But we're the moving force 9 behind it and it certainly looks very, 10 very good, very favorable for us. 11
Thank 14 you. 15 Any further questions from members of the Committee? (No response.)
Our next witness. MR. McPHERSON: Mayor's Office of Labor Relations.
Good 32 2/28/06 - WHOLE - BILL 060003, ETC. morning. Please identify yourself for the record and proceed with your testimony.
Good morning, Madam President and members of City Council. My name is Bill Grab. I'm the Director of the Office of Labor Relations. I'm here with Deputy Directors Joe Tolan and Delia Gorman to present the Office's request for Fiscal Year 2007 operating budget. The Office of Labor Relations coordinates labor relations programs affecting City unionized Civil Service employees. We work with City managers, union representatives and their members in collective bargaining, labor contract administration, dispute resolution and labor-management cooperation. We are requesting $586,265 in Fiscal Year '07 General Fund budget, which represents an increase of $96,240 from our Fiscal Year '06 estimated obligations. Our FY07 operating budget 33 2/28/06 - WHOLE - BILL 060003, ETC. request breaks down as follows: $548,351 to support seven filled positions, $21,414 for the purchase of services, $16,500 for materials, supplies and equipment. Our performance goals are attached for your information. In collective bargaining during the past year, the contract with the IAFF, the International Association of Firefighters, expired and we began the interest arbitration process with the Local for a successor agreement in 15 September. The parties are currently 16 presenting cases to the arbitration 17 panel. 18 In the July 2004 FOP 19 arbitration award provides two separate 20 reopeners for healthcare contributions, 21 one for the period for Fiscal Year '06 22 and '07, another for Fiscal Year '08. Following hearings held in June 2005, the arbitration panel awarded a first year 15.7 percent increase in the City's 34 2/28/06 - WHOLE - BILL 060003, ETC. health and welfare contribution to the FOP and a second year increase of 4 percent, with a $3 million lump sum. The 5 City has appealed the award as being in 6 excess of the current Five-Year Plan. 7 The District Council 33 and 8 District Council 47 contracts each have 9 health and welfare reopeners for the 10 period July 1, 2006 to June 30, 2008. Negotiations on their contribution levels will take place this spring. We are responsible for handling District Council 33 and District Council 47 grievances that the operating departments have not resolved at the lower levels. Combined District Council 33 grievances were 66 during '05. During that period of time, we disposed of 102 grievances. I'd like to right now thank my staff, my two deputies and the other people back in the office, for their hard work and dedication in reducing this workload. 35 2/28/06 - WHOLE - BILL 060003, ETC. Another Office of Labor Relations service measure is conducting training of City employees. Our training is to help managers and supervisors function effectively in a union environment. We set a goal of 200 participants for Fiscal Year 2006 and are maintaining that goal for 2007. The collective bargaining agreements between the City and AFSCME District Councils continue the Redesigning Government Initiative, a labor-management cooperation program designed to improve services to the citizens and reduce the cost of City government. The RGI committees have worked effectively in Recreation, Revenue, L&I, Health, the Police Department and the Board of Revision of Taxes. A new committee is in the Office of Behavioral Health and is in the process of upgrading its software and reorganizing. Part of the process involves redesigning how the 36 2/28/06 - WHOLE - BILL 060003, ETC. work gets done, and the OBH has partnered with District Council 47 through the RGI process to involve employees in the redesign of their work. We would like to thank Council for this opportunity to present our budget request for Fiscal Year '07 and are available to answer questions.
Thank you very much. Mr. Grab, can you tell us what the status of the appeal of the FOP health and welfare award is?
It has gone to court. We have filed our briefs and the union has filed their briefs.
Do you have any indication as to when we can anticipate a final decision?
No. I know the courts acted very quickly on the first appeal the City had. I can only assume that they would act quickly, which would be in the next month or two. 37 2/28/06 - WHOLE - BILL 060003, ETC.
If the appeal goes against the City, does the Administration have any additional appeal rights or will that be the final decision?
What is the additional cost to the City that would then get added to the Five-Year Plan if in fact we lose the appeal?
It's $48 million over the Five-Year Plan. It might be 46. 46 or 48 million.
How would the Administration propose to bring the Plan back into balance? 38 2/28/06 - WHOLE - BILL 060003, ETC.
Well, there would have to be cuts. I mean, one of the things is, we have less police officers than we had before funding the 2004 award. So, I mean, that's one of the possibilities. Other possibilities are cuts in supplies and materials and things like that.
Okay. Are there any questions from members of the Committee? (No response.)
The Committee will stand in recess until 12:45. Thank you very much. (Luncheon recess.)
We would now resume our public hearing, and I would ask Mr. McPherson to please call upon the next witness to testify. MR. McPHERSON: Mayor's Office 39 2/28/06 - WHOLE - BILL 060003, ETC. of Information Services.
Thank you. Good afternoon, Council President Verna and members of City Council. I am Dianah Neff, the Chief Information Officer. On behalf of the entire staff of the Mayor's Office of Information Services, I am pleased to provide you this testimony on our proposed Fiscal 2007 operating budget. I am joined today by David Baldinger, who is the Director of IT Strategic Planning. The Mayor's Office of Information Services works in partnership with City agencies to implement and manage information systems that support and enhance City government operations. MOIS coordinates the City's information technology initiative by providing centralized planning, enterprise IT standards, IT project management, computer training and help desk support. 40 2/28/06 - WHOLE - BILL 060003, ETC. MOIS also operates the City's central data center, the metropolitan wide-area network known as CityNet, the geographic information system and the operation support center. MOIS is requesting a total of $13,076,658 from the General Fund for Fiscal Year 2007. This General Fund request represents a total increase of $1,283,330 from the Fiscal Year 2006 estimated obligations. The 113 budgeted positions is an increase of full-time 14 positions from the total number of filled 15 positions as of December 2005. 16 The increase of 16 full-time represents an addition of seven new staff, five of which will be assigned to a new IT security unit and two staff to provide additional project management capacity. I will discuss this in more detail in my testimony. The remaining nine positions represent unfilled staff vacancies as of December 2005. In the Water Fund, we are 41 2/28/06 - WHOLE - BILL 060003, ETC. requesting a total of $1,454,281. This represents a $113,000 increase from the Fiscal Year 2006 estimated obligations and represents an increase of one staff position to provide additional support for the replacement of the Water Revenue Bureau's water billing system and a three percent wage increase effective July 1, 2005. In the Grants Fund, we are requesting a total of $2,276,300, which is a net decrease of $449,000. These funds will be spent to complete the Unified Land Record System, the Virtual Property Management Information System and develop needed interfaces to support the sharing of property information among the City's NTI business partners. MOIS staff continues to work in close cooperation with City departments and agencies to achieve the Mayor's goal of using information technology to improve services to City residents and businesses. Some of these projects 42 2/28/06 - WHOLE - BILL 060003, ETC. include the DSSCares being developed with the Division of Social Services, the Virtual Property Management Information System in support of the Mayor's Neighborhood Transformation Initiative and the new BRT CAMA application, as well as supports for new systems at the Register of Wills and the Sheriff's Department. Within MOIS itself, we have begun to implement technology to improve our internal management procedures. More departments are now relying on the enterprise capabilities MOIS has deployed and we are taking advantage of new technology to integrate older legacy applications with newer servers and web-based applications to support a far wider range of departmental business needs than has ever been possible in the past. The computing and application environment of the City is becoming more complex, and we are embracing new tools to help us manage and deliver reliable 43 2/28/06 - WHOLE - BILL 060003, ETC. and cost-efficient services. This new technology will give our staff and managers sophisticated tools to manage the deployment of new applications to maintain and monitor existing application and services and to establish detailed procedures to guide our staff in managing a very complex technological environment.
We are now strengthening our Program Management Office by adding two new staff and by reassigning resources to provide greater capacity and increased depth to better respond to the needs of individual departments. The Program Management Office will better enable us to work with departments to identify technology solutions and to provide professional project management assistance, improving our ability to successfully manage IT projects on time and within budget. In FY07, MOIS will create a five-person IT security unit that will be responsible for the deployment and 44 2/28/06 - WHOLE - BILL 060003, ETC. implementation of a comprehensive information security program designed to protect the IT infrastructure and the City's data. Protecting the privacy of much of this data is strictly mandated by the federal requirements for HIPAA, the Health Information Portability and Accountability Act. And, further, the City's IT infrastructure and network must be protected, and an effort that is now a 24-by-7-by-365 fundamental responsibility of modern IT departments and organizations. The newly created IT security unit will deploy and implement a comprehensive security plan for the City to include new security policies and standards, risk assessment of vulnerabilities, development of a security architecture to guide application development, evaluation of IT security tools and products, development of contingency plans, and incident response protocols. Recent events have heightened 45 2/28/06 - WHOLE - BILL 060003, ETC. the need to plan and prepare for the continuity of operations in the event of an emergency or disaster. MOIS is participating, with the effort being led by the Managing Director, to review and strengthen the City's emergency plans. Today in the event of an emergency or disaster, the City has in place plans to relocate its mainframe data center to a commercially provided disaster recovery site. The disaster recovery solution has been the standard business solution for governments and private industry for some time. It is no 16 longer, however, an adequate solution, because the City's IT infrastructure, its hardware, its networks and its applications, have grown in scope and complexity over the past decade. The applications now hosted by the City's mainframe computer data center only support a fraction of the applications and information technology needs of the City. 46 2/28/06 - WHOLE - BILL 060003, ETC. The City has initiated a program to strengthen its ability to recover from a disaster and provide continuity of critical business services. First, the City has made an initial investment in technology to begin to provide disaster recovery support for a portion of the City's critical applications. And, lastly, MOIS is continuing to deploy and expand capabilities and standards in support of common business needs across the departments. We are working with departments to deploy the enhanced IT capabilities in the following areas: To the City's e-mail capability; to further expand our electronic bill 19 payment called ePhillyPay; updating the City's geographic information data and further deployment of applications and web services to integrate spacial data with needed business applications; selection of the Oracle Enterprise Business Suite as a City standard; 47 2/28/06 - WHOLE - BILL 060003, ETC. creation of the Oracle Grid and Storage Area Network providing a shared environment for deployment of departmental and applications; and deployment of imaging and document management solutions. gov website. Madam President, that concludes my testimony, and I want to thank City Council for your ongoing support, and I'll be glad to answer any questions you might have.
Thank you very much. On of your detail, you are requesting a restoration of Class 100 funding from Class 200 of $400,000. Why are you requesting the shift, and can you please tell us the title of the positions you are requesting? 48 2/28/06 - WHOLE - BILL 060003, ETC.
Madam President, we are requesting the $400,000 shift. We have been using contract staff in the interim while we were seeking to fill the open positions, and that was done during the mid-year transfer. Our goal is to have those positions filled. I will need to get back to you with the detailed listing of the exact titles.
We're checking on that. If not, I'll get back to you with that information.
That would be fine. On the same , you are requesting $232,102 for additional maintenance for a second engine. Would you please explain that request?
Certainly. As a part of our mainframe computer, we upgraded that about a year and a half ago and there are multiple engines that run 49 2/28/06 - WHOLE - BILL 060003, ETC. the mainframe. We brought up one engine. We've reached capacity on that. We own the second engine, but you have to pay additional software fees when you bring on additional software applications that are needed to make that available to us. So this request is for the payment of those software licenses to allow us to use the capacity of the machine that we own.
On , you indicate that you will be receiving reimbursements from other departments $613,598. Explain what this is and please give us a breakdown by department and amount.
Certainly. We have on staff IT personnel that work in departments, whether that's in the Department of DHS, Streets, Water. And I can give you a complete detail of those positions, but those are reimbursed positions that work in other departments under the direction of MOIS. 50 2/28/06 - WHOLE - BILL 060003, ETC.
Well, when you forward me in writing the other information, I'd appreciate your including this.
Thank you. The Chair recognizes Councilman Nutter.
Just a couple general questions to start. On the first page of your budget detail, can you give me a layout of the top management or top staff in your department?
Certainly. There's myself as the CIO. I have a deputy CIO. We have --
I 51 2/28/06 - WHOLE - BILL 060003, ETC. understand that. I'm looking at your organizational chart on . I'm trying to fill in the boxes. I don't know who all the people are.
Michael Dean is the First Deputy. Under Executive Direction are the exempt personnel, and I can give you a detailed list of those positions. There are about 14. And there is our Program Management Office headed by Crafton Timmerman. Then I have program managers --
Crafton Timmerman, which is head of the Program Management Office, which would have been under the Executive Direction.
Correct. We have 52 2/28/06 - WHOLE - BILL 060003, ETC. program managers that work with the different departments. I have James Cartwright.
Why don't we do this: For that area, if you have people, if you could forward to the 8 Chair a listing of those, that would be 9 fine. 10
The only deputy that I have is Michael Dean. I have one deputy and then I have directors and managers.
Okay. Are there like a few managers -- or directors 53 2/28/06 - WHOLE - BILL 060003, ETC. rather?
There are about 4 in total throughout the entire 5 department. 6
Okay. I 7 mean, do you have kind of a small 8 management group? 9
The IT Director of 14 Operations, which is Terry Phillis. The 15 enterprise capabilities is Jim Querry, 16 who handles GIS and web technology. 17
Querry, Q-U-E-R-R-Y. Then I have the program managers that work with the department, which are James Cartwright, Karl Bortnick, William Gargano.
Okay. What do you call it, this executive team? 54 2/28/06 - WHOLE - BILL 060003, ETC.
All right. I have not seen Mr. Bortnick in a while. I wasn't sure if he was still with us.
Okay. So you have a senior management team. You have 113 people?
In the General Fund, and then I have another 16 in the Water Fund.
Okay. Because you're showing on it looks like a total of 131 people.
Now, let's shift for the moment to -- there's obviously been a newspaper story today -- 55 2/28/06 - WHOLE - BILL 060003, ETC.
-- with regard to Mr. Dean. How long has Mr. Dean worked for the City?
I came in in May of '01, and six to eight months later I hired Michael. So late '01, early '02.
And when he was hired, did he have a waiver for residency?
He had a waiver to 56 2/28/06 - WHOLE - BILL 060003, ETC. move in within six months, and that was extended an additional six months.
So, in essence, he had a year all told from sometime in the December '01-January '02 -- let's say January '02 --
-- for discussion purposes. So he had a waiver. Where did he live?
To move into the City. And do you know if there 57 2/28/06 - WHOLE - BILL 060003, ETC. was ever an inquiry as to around about that time did the individual move into the City.
Yes. He submitted a lease on an apartment that he had moved into the City.
That he had moved into the City. Annually we require exempt employees to submit proof of residency.
And is that the location, to your knowledge, that's referred to in today's story as being on Spring Garden Street?
There was a change of residency when the apartments he was in converted to condos.
And the form upon which the residency is noticed, if you will, what kind of form are we talking about? 58 2/28/06 - WHOLE - BILL 060003, ETC.
What kind of form? It asks for you to submit your residency, and then you submit two pieces of information to validate that residency address.
So this is not the annual either Statement of Financial Interest or your ethics disclosure form?
So he's your first deputy, and obviously if you're not here or even when you are here, this is a high-level person?
And at what point did you become aware that he had not fulfilled his responsibility under the residency requirement?
An inquiry was made to the IG, who investigated. The IG 59 2/28/06 - WHOLE - BILL 060003, ETC. investigated and submitted a report to the Mayor's Office and myself just recently.
Let me better understand this issue again, at least according to the news account. There was a proposal to pay for his Master's degree?
The City has a program for advanced education opportunities for high-performing individuals. Michael submitted a request. It was approved. Upon notification of non-residency, that was pulled and no payments have been made.
It's -- I don't know. It's a higher education program. It's run out of the Human Resources Department. We've had -- 60 2/28/06 - WHOLE - BILL 060003, ETC.
It depends on the program and how it's related to the job. There's a whole process that you go through for approval.
Do you happen to know how many people have gone through this program?
We've had one other individual that has gone through the program and submitted for reimbursement. 61 2/28/06 - WHOLE - BILL 060003, ETC.
So it's been reported that he has admitted, apparently at least to the Chief of Staff, the Mayor's Chief of Staff, that he does not live in the City and apparently for the last at least two years, maybe going on three, has been functioning in violation of the residency requirement.
I can't speak to the length of time. Mr. Dean has submitted his resignation and has -- because I am going out for surgery, we've asked him to stay on until the end of April to transition a smooth operation until such time as I can replace the position.
Well, I mean, is he the only person who can head up the Mayor's Office of Information Services?
Well, he is the person that I have been training and grooming to act in my stead when I am away from the office. No organization 62 2/28/06 - WHOLE - BILL 060003, ETC. runs on one individual and --
Yes. But, yes, he plays a vital role in my organization and will need to be replaced.
Well, do you think this sends an appropriate or inappropriate message to the rest of the public employees that upon either admitting it or confirming it or acknowledging it that you are functioning in violation of our residency requirement, that the person is allowed to stay because they are so critical to the operation as opposed to firing him?
The options were weighed. The Mayor has a strong position on the residency requirement. Michael immediately resigned and was, as I say, by the Administration asked because of extenuating circumstances, the number of high-profile projects that we have going on in MOIS, to stay so that I could do an 63 2/28/06 - WHOLE - BILL 060003, ETC. orderly transition, as I'm going out for surgery within ten days.
Let me ask this question, and obviously wishing nothing on anyone, but life has its various interesting circumstances. I mean, suppose, God forbid, something were to happen to him. Are you telling me that MOIS would not be able to function? You obviously need to take care of your own personal medical situation. I mean, you'd do something.
In normal circumstances, one of the other of us would be here, and in this case, both of us will be out, and it was a decision that we made for operational continuity to ask him to stay for a limited time.
Well, let me ask this question: Since it appears that there's some element of fraud involved, is the money that he's been paid going to be repaid to the City?
His income from 64 2/28/06 - WHOLE - BILL 060003, ETC. services rendered? No. There's no --
Services rendered? He's an extremely talented and capable IT person.
I'm not questioning his talent. I'm asking about operating within the parameters.
We pay our employees for the work that they perform. He is being paid.
And there's a process and procedure for extending a waiver?
So I guess 65 2/28/06 - WHOLE - BILL 060003, ETC. lastly and then I'll come back, and I appreciate, Madam President. He's staying until when?
Now, this is my last question on this, I think. In a private sector situation, if something happens it seems today with virtually any high-level employee but certainly someone in the IT area, if they are let go, if they are fired, if something inappropriate happens, isn't it generally the experience that virtually the person is probably walked off the premises that day?
It's conjecture. It depends on the nature of the issue. If we've had security violations or so forth, then you would do something to that effect.
Even without security violations, if the person is either no longer employed or has done something in violation of the 66 2/28/06 - WHOLE - BILL 060003, ETC. rules of the organization, primarily for security purposes, wouldn't you want to deny access to systems by that individual?
When an employee leaves, their systems are shut down and access is denied. We are not asking Michael to leave until the end of April, and at such time, all of his passwords and everything else will be disabled.
Okay. So you're fully comfortable with the whole situation?
Well, I can't say that I'm comfortable with the situation, because I had high hopes for Michael and his abilities and I wish this had not occurred, but certainly I have no 20 hesitation about his qualifications, nor his ability to function until such time as I can get back or get a replacement.
Okay. Last question. Upon the agreement to pay for the advanced degree, did you have any 67 2/28/06 - WHOLE - BILL 060003, ETC. understanding or agreement with regard to how long the individual was going to stay in City government? Is there any requirement that if we pay for your education, you have to stay for some amount of time?
Yes. As a part of the program, not a special indication for any individual, it's a two-year commitment to stay after the end of the program.
Okay. So I guess in that situation, obviously that's for services rendered, but also as an enhancement for that individual's future. He apparently was quoted in a periodical in December indicating that he expected to be, I guess, running an organization in about five years and planned to transition from government into general management maybe as a chief operating officer. Would that have been your expectation?
That's not unusual 68 2/28/06 - WHOLE - BILL 060003, ETC. for highly talented IT individuals to move to gain further compensation and -- so that's highly plausible in a five-year plan.
Shortly after the City government has paid for an MBA?
Again, the commitment was for two years, and who will know what the economy will be like at that time and whether that would have been pursued or not.
So it's two for the studies, you have to stay two more. So that fits in with the five-year plan.
Okay. All 69 2/28/06 - WHOLE - BILL 060003, ETC. right. I'll come back. Thank you, Madam Chair.
Thank you. The Chair recognizes Councilman Kenney.
Thank you, Madam President. I wasn't intending on going on the line of questioning where Councilman Nutter was, but just out of curiosity, I recognize there's a six-month allowance for non-City residents to move into the City. Where did the ability to authorize an additional six months come from? Was it an administrative board decision or resolution or the Law Department said it was okay? Where did the extra six months come from?
The Mayor himself or is there a document or a policy statement or a resolution that was 70 2/28/06 - WHOLE - BILL 060003, ETC. passed by the ad board that said, We'll give you another six months, or did the Mayor just say, I'll give you another six months?
Did you receive anything in writing from the Administration saying, This process was followed and he has an additional six months?
I can't expect you to give it to me verbatim, but what did it say? I mean, can you paraphrase it?
I would have to go -- it laid out the circumstances and asked for the request for the additional six months. It was signed and approved.
My request to the Mayor's Office signed by Joyce Wilkerson, his Chief of Staff.
So you're not aware of any ad board action or City 72 2/28/06 - WHOLE - BILL 060003, ETC. Solicitor opinion or anything?
I do not know the action that she took. We would have to go back and ask that question.
Madam President, I would request that perhaps you write or we send a memo to the Chief of Staff and ask exactly what process was followed in this particular case. And the reason why it's a little bit -- I'm somewhat ambivalent about this issue, because I know we're looking for talented people and we try to recruit as best we can from many areas of the country, and I understand. I go back to the frustration I had with getting a waiver for people to apply for a job who were non-residents of the City without waiting a year, becoming a resident and waiting a year to apply for a job as a police officer. I mean, it seems on one hand that's too much of a burden to bear, that we can't recruit nationally for every job in the City of Philadelphia 73 2/28/06 - WHOLE - BILL 060003, ETC. unless a person is a resident of the City for a year, but we can willy-nilly give waivers away whenever we want to give them away to whoever we want to give them away without any process. So I don't want to pile on on this, because Councilman Nutter certainly raised it and I was following a line of questioning, but it is unbelievably frustrating to me to try to change the culture of the City and its ability to attract good employees by simply waiving the pre-employment application requirement for a year when we can give a guy living in Delaware County six months, take another six months, go get an MBA, whatever you want to do. Because once the educational issue was raised, all Councilpeople on this end were kind of curious as to they never heard of that program before. I guess it's kind of like an executive level non-resident gear-up program or something. I don't know where that came from or how we apply 74 2/28/06 - WHOLE - BILL 060003, ETC. for it, but it's certainly interesting.
I don't mind following the rules, but it seems like the rules can change when they want to get changed.
If I may, as far as his education, did we pay for that?
It's a two-year 75 2/28/06 - WHOLE - BILL 060003, ETC. program.
It was the two-year program to be paid as the semesters were taken.
I'm glad we picked a residential university. It would be nice. Send him to Yale or something. On another issue, Council President Verna asked a question in your detail budget about requesting positions, and you had made a statement in your answer that they're currently contract positions and they're being made permanent. What's the economic benefit of making them permanent employees? Isn't the wealth of IT people in the private sector such, and both quality and quantity, that contracting employees may be cheaper in the long run for the 76 2/28/06 - WHOLE - BILL 060003, ETC. taxpayers as opposed to full benefits and pension contributions and permanent employees?
The positions were regular full-time positions, that we asked for a budget transfer to do contract in the interim while we were doing the process to fill them. These would not be new positions filled permanently as contractors. We do look at and do an analysis on the cost. High-skilled IT talent in the contracting environment today has shot up exponentially and the cost -- one of the reasons that we looked at bringing, instead of keeping them on as contractor, bringing them into full time is that cost element.
So your testimony is that it's more expensive to hire contract employees than it is permanent?
It depends on the skill set that you're looking for. 77 2/28/06 - WHOLE - BILL 060003, ETC.
Is the quality of employees technically about equal the people we're hiring permanently? Are they in the same ballpark technically with contract employees?
It would vary. I mean, we certainly always look to bring in the most skilled people that we can within the pay ranges that we can pay.
But in general, there's no rule of thumb relative to contracted employees, the pool of talent in the private sector contractors as opposed to full-time public servants?
There is by far, depending on how much you're willing to pay, a stronger pool on the contracting side. It's the hourly wage, and it depends on the position itself. 78 2/28/06 - WHOLE - BILL 060003, ETC.
Let me just move to just a real general question about WiFi. My understanding of the whole concept of WiFi is the ability to bring Internet service and Internet experience and access to people of lesser means relative to the private sector provision; is that correct?
Are you in a position now to be able to determine -- and I think I know the answer, but I'd like it for the record -- as to who the private sector competition with WiFi would be?
There are obviously DSL and cable, are the primary competition to WiFi.
That's correct. However, they're very different in that they're not a mobile solution and 79 2/28/06 - WHOLE - BILL 060003, ETC. that's --
Both DSL and cable are fixed wireless. They are a device that's located and connected to a modem in your home.
Could you have a modem in a public space with either one of those two companies?
No. It would be a different technology. For example, with DSL, you have to add in a technology called EVDO that gives you wireless. It's a cellular wireless versus a WiFi wireless.
So when WiFi is up and running, which product of the two major competitors would they be in competition with?
Well, the marketplace that we're gearing towards are those that have no connectivity today and those that are doing dial-up over a 80 2/28/06 - WHOLE - BILL 060003, ETC. telephone line, which are neither DSL nor cable. So our goal is to get our percentage up from 58 percent up to 80 over five years and to place as many as 10,000 computers into our low-income households that don't have the tools to be able to do that connectivity and then have affordable WiFi access for those individuals.
What do you anticipate being -- and, again, I'm not going to hold you to a number, but what would you anticipate being the variance between the private sector product in percentage and the WiFi product?
Monthly payments. There's going to be a monthly payment on WiFi, right?
We're going to minimize the monthly payment as much as possible. What do you anticipate at this point the percentage variance 81 2/28/06 - WHOLE - BILL 060003, ETC. between the lowest level private sector product and the WiFi product once it's online?
It will be on the DSL probably to 30 percent and on the 10 cable 50 percent less. 11
And, again, 12 as this rolls out and as time goes on, 13 maybe those issues will change, but your 14 considered position right now is 30 and 15 50 percent difference? 16
20 You're welcome. 21 The Chair recognizes 22 Councilwoman Brown. 23
Thank you, 24 Madam President. 25 Good afternoon. 82 2/28/06 - WHOLE - BILL 060003, ETC.
I, too, was a lot struck by the lack of no 5 discussion of Wireless Philadelphia in your testimony, and while we recognize it is a separate 501(c)(3) now, I'm anxious to get somewhat of an update, which would in many ways be a follow-up to the briefings we had last June, which I thought were a beginning point for getting Councilmembers somewhat up to speed about what it is and where we're headed. So one of the questions is, now that a number of other cities have taken off with this, Boston, Chicago and others, where are we with regards to the proposal itself? What are the remaining steps that we need to get to before this becomes a reality?
We're finalizing the details on all of the components. It's very complex contracts. We hope to transmit imminently, within this week or 83 2/28/06 - WHOLE - BILL 060003, ETC. next week, to City Council for introduction and hearing. Once City Council has approved on the Street Light Use Agreement and the management agreement between the City and Wireless Philadelphia, we'll be prepared to start construction and have the entire City covered within months of signing of 10 those agreements or approval by City 11 Council. 12
Where is the proposal with regards to two issues that were raised six months ago? One, an assurance that students of all types, public, private and parochial, will have access and opportunity to this unprecedented initiative?
We have continued to work with the community through our pilot neighborhoods, both in North Square, Olney and in West Philadelphia in the Politan Saunders area with the public schools, the archdiocese and the charter schools. We've included interworking 84 2/28/06 - WHOLE - BILL 060003, ETC. with the computer technology centers with the community development corporations in those neighborhoods. We're doing outreach to our faith-based organizations, our minority chambers. So it's a very inclusive program and highly supported by all of the educational organizations.
So there's an assurance on the user end. On the implementation or the actual input of that wiring, what assurances are in place for MBE, WBE participation?
As a part of the request for proposal that was issued last spring, there were minimum requirements as a part of the companies that responded to that. The company that we eventually selected, EarthLink, has committed to exceed the percentages in that proposal, and their business partners are committed to diversity and have won awards in this field as well. So they have met and exceeded all the requirements that were 85 2/28/06 - WHOLE - BILL 060003, ETC. placed as a part of the contract.
And that's what we know on paper. Do they have a track record of having demonstrated commitment in other cities where they have this kind of enterprise?
Well, one of their business partners is Motorola, and they have been recognized nationally for their commitment and award. I'd have to get back to you with specific cities and instances, as we are the first major city in the United States to deploy this technology. And so the other cities, I believe Anaheim and -- I would need to get you the names of the smaller communities that they've done.
Okay. What kind of assurances are in place to regulate pornographic and violent material?
There is security 86 2/28/06 - WHOLE - BILL 060003, ETC. and privacy protection built in at multiple layers within the network, both at the network level. We required 5 different layers of security. At the 6 Internet service provider, we are 7 requiring that they provide privacy spam 8 blocker, that parents have an option to 9 opt in for parental control of those 10 types of issues. 11 So we're building it in, and 12 then we also as a part of our training 13 programs will have handouts and classes 14 to help parents understand what their 15 responsibility is. 16 So you protect at the network 17 level, you protect at the Internet service provider, which is the interface with the end-user and the company, and then you help the parents understand what they can do to protect at their home with their children at the individual desktop.
Okay. Let me just revisit this issue of MBE and WBE, and we do that because we know of 87 2/28/06 - WHOLE - BILL 060003, ETC. too many instances here in Council where you have commitment, which you listen to what people say, and then ultimately you have to watch what happens.
Too many times there's been a disconnect in what we read and what the verbal commitment is and what happens at the end result. So what I'm hearing you say is, A, EarthLink has a track record with records to meeting MBE, WBE goals?
And you'll get back to us with instances in other municipalities where they've done that?
You also mentioned that there are a number of formal relationships with faith-based, community-based, et cetera. Will they then become partners, if you will, when it comes to the teaching and training once it's up and running? Because 88 2/28/06 - WHOLE - BILL 060003, ETC. formality matters once you get to the stage where you have to actually ensure that parents get the information so that pornographic and violent material, et cetera, meets a red light. So will there be formal partnerships in place between EarthLink and the number of worlds that you've just mentioned to make sure that the end product we're talking about happens?
Well, the relationship will be with Wireless Philadelphia and our community supporters, whether they're schools, faith-based organizations, chambers, business districts. And then as a part of our contract, EarthLink has certain security requirements they must meet as a part of their proof of concept, that they can do everything they say they can do, as well as the agreements with the Internet service providers that are providing that end-user connectivity to the Internet that they provide. 89 2/28/06 - WHOLE - BILL 060003, ETC. EarthLink has been rated the top in that field for the last three years by J.D. Powers. And so that is all being built in. So there's multiple layers, but the interface with the community is at the Wireless Philadelphia. The technical interface and the ability to block parental controls is at the contract level with EarthLink and Wireless Philadelphia.
It's a lot to get my arms around. Follow-up on Councilman Jim Kenney's question. Were local providers approached to participate or be possible partners with the Wireless Philadelphia? Meaning EarthLink has won the prize, so was there a process where local companies in our area had the opportunity?
Absolutely. We wrote the RFP so that the companies, any company, could come and respond, and that opportunity was provided to our local DSL 90 2/28/06 - WHOLE - BILL 060003, ETC. and cable companies. They chose not to submit a proposal. We did receive 4 proposals, and eight of those were for 5 turnkey and three of those were alternate 6 proposals where the companies actually 7 would put up their own money to build the 8 network, and we ultimately selected 9 EarthLink, who will fund, build and 10 manage that network in partnership with 11 Motorola and Tropos Equipment. 12
Two final questions. Does the fact still remain that at the end of the day Philadelphia taxpayers will in no way, shape or form be obligated, responsible for any mishap or misstep that happens with this contract?
Absolutely. There is no City taxpayer dollars involved in this project.
And then, finally, are you at liberty to say what the remaining stumbling blocks might be with regards to the documents ultimately 91 2/28/06 - WHOLE - BILL 060003, ETC. being sent to President Verna, to the City Council?
It's a matter of timing. The contracts are finalized, and it's just getting it through the process and getting it transmitted.
You're welcome. The Chair recognizes Councilman Rizzo.
Thank you, Madam President. I hate to jump on to the existing issue that was reported in the media today, but I have a question. An employee at this level obviously has a lot of access to various systems based on that level employee's position, correct? 92 2/28/06 - WHOLE - BILL 060003, ETC.
I know I wouldn't feel comfortable knowing that I have an employee that submitted a resignation to you that has access to this degree. I'm not suggesting that some action could be taken by that employee to create -- there's going to be obviously a lot of stress in the next period of days. Is there a way that that employee could, if this employee does stay after today's conversation, to minimize the possibility of that access so in the event on a stressful day this employee doesn't come to work and disrupt the entire City network?
Yes. There is a full background check done on all City employees and --
I don't want to be cute here. I'm talking about this one that we're talking about today. In other words, you've got an employee 93 2/28/06 - WHOLE - BILL 060003, ETC. that's been identified as living outside of the City. You're not going to be available. This employee is staying in our employ. Who knows what the mental state of that person is going to be for the next month. Comes to work one morning and has access -- you just said a person of that level has access to our City network to be able to do whatever could be done. I mean, do you really feel comfortable having a person with that access that you don't know what the condition of that person could be in the next month? Isn't there a way to restrict -- if you need the guy, you need the guy, but don't you think you should limit your exposure and do whatever is possible to lessen what I just described?
Yes. Mr. Dean does not program. He doesn't go into the applications. We have the capability to track, which we will do. If there's any indication that -- 94 2/28/06 - WHOLE - BILL 060003, ETC.
At his position he does not program. We have staff that does the programming. But we also have the capability, which we will exercise, to be able to track to see if he goes into any applications on a daily basis. Should there be any violation or concern, we would immediately shut that access off.
Isn't that kind of late? You're telling me that Mr. Dean -- and I didn't want to mention names, but you made me do that. Why couldn't you limit our exposure? I don't want you to be quoted in the paper that we should have done that. I feel sorry that this has developed, but it's his own fault. The situation is this: You're telling me that Mr. Dean, if he wanted to get into our applications, even though I understand he's got more groupies that do 95 2/28/06 - WHOLE - BILL 060003, ETC. that, you're telling me that he does not have the knowledge or the ability to get into any of these systems?
No, sir. That's not what I said. I said at his level, it is not the type of action, but we do have the ability to track and will exercise that, and if there's any indication, all access --
After the trouble is created and you then find out about it, what good is it? In other words, Mr. Dean, you're telling me now for the record, does have the ability to access almost any area of our system if he chose to, not on a daily basis would a man of his level do the work or normally have access. Certainly you have a lot of employees that would do that for him. But if he wanted today to go into our system and, I'll use a word, sabotage it, 96 2/28/06 - WHOLE - BILL 060003, ETC. create a problem under some circumstance, he could do that.
It would be difficult, and we have protections in place. We don't allow people to go into production applications and make changes. So all of those are in place to prevent that type of activity.
He's the number two man and he has not -- now you're telling me something different than you told me a minute ago. You said yes, he did. Now you're telling me you have checks and balances. Could you just answer the question? Could this gentleman under a stressful situation create a situation for our City?
All right. My next question, we had a conversation many months ago about a project called OCEAN, and you brought up the name Oracle today. I know this has been a very 97 2/28/06 - WHOLE - BILL 060003, ETC. expensive licensing situation, where we started off creating a new water bill and it turned into -- I don't want to use the word, but it's been a boondoggle, and you've been kind of brought in to rescue this very expensive project. I haven't heard much more about it. So could you explain for the record what Project OCEAN is and the problems that you've inherited and what you've done so far? Because I believe it's close to $20 million has been spent on this program that has not yet been put into effect because of some issues with the vendor.
So would you explain what Project OCEAN is for the record, please?
Project OCEAN is an application to replace the water billing revenue collections -- I'm sorry; Water Revenue billing system and add a collections module to the system. We are 98 2/28/06 - WHOLE - BILL 060003, ETC. in the process of negotiations. It's not appropriate at this time to discuss those in public.
Wait a minute. This Project OCEAN has been on the drawing board for how many years now?
How much money have we spent on Project OCEAN with licensing and other expenses in-house and with vendors?
We have no 16 billing system. I'm not asking you to talk about anything that's confidential. Just tell us for the record what's occurred for almost three years at a cost of $18 million and we have no billing system. Just explain for the record. I've been very patient with this issue, because I've had lots of conversations about it and I don't know if we're any further ahead. I know there 99 2/28/06 - WHOLE - BILL 060003, ETC. were some fixed costs with the licensing, but could you explain to the record what has gone wrong with Project OCEAN and how you were drawn into it? Because I believe that the sponsorship of the initial project left City employee and it went nowhere and just spent a lot of money, and then the vendor apparently backed out or suggested that they were not going to be involved with the project anymore. Eighteen million dollars is a lot of money. So if you could further elaborate. Honestly, I think there's a lot you can talk about that's not privileged.
Project OCEAN is a part of what we call an Enterprise Resource Management Plan, ERP, and it would eventually replace all of the financials. We went through an RFP selection whereby we selected the Oracle E-Business Suite as a part of that. We purchased the license for those products, 100 2/28/06 - WHOLE - BILL 060003, ETC. and we selected the Water Revenue billing and collection as the first module within the suite of businesses. It is a commercially viable product that has been in the industry. The Water Revenue billing system is a new -- has quite a bit of customization involved. It's a very complex system. It has multiple departments, the Water, Revenue, Water Revenue Bureau, Finance Department, involved in this. We've had a number of sponsors from the departments that have come and left the City and has changed hands. Oracle was also hired to bring in to do the customization, and as a part of that, they delivered code to us. We have gone through their code issues. We are in the negotiation process and continue in that process at this time.
But more to the point, you rejected some of the work that was presented to you, and Oracle has stopped providing a service to the City 101 2/28/06 - WHOLE - BILL 060003, ETC. of Philadelphia, at least when we last spoke; is that correct?
That's correct. We continue to own the licenses, but that particular model we stopped during the summer while we did the evaluation of the code delivered to talk about corrective actions that needed to occur.
So after $18 million, we have no Project OCEAN, and I understand that you're not able to talk about where you are now. I don't understand why you're not, but we have a project that's, from what I hear, closer to million that hopefully we'll get 17 accomplished some day. 18
Yes. It is still 19 our goal. And a lot of work has been 20 done, that we had to model all of the processes, we had to clean the data. So a lot of the work that is done is not throw-away work. The customization has had issues, and we continue to work through that and are waiting for 102 2/28/06 - WHOLE - BILL 060003, ETC. resolution.
Last question, because I've exceeded my time. The vendor, Oracle, are they back on track with us or is the relationship still strained?
We continue to negotiate with Oracle. Any time you get in this situation, it is a strained relationship.
You're welcome. The Chair recognizes Councilwoman Blackwell. 103 2/28/06 - WHOLE - BILL 060003, ETC.
Thank you, Madam President. I have just one question, and, that is, are you involved in the Administration's plan for housing reorganization, and, if so, how?
We are not in the reorganization. We are supporting the Virtual Property Management Information System that tracks the use of parcels and land through the City, but we're not -- MOIS is not involved in the reorganization.
So let me ask you to talk a little further on that. Are you involved in any way of reprogramming housing information?
David Baldinger is the Project Manager on that. I'm going to put him on the spot and ask him to reply.
David 104 2/28/06 - WHOLE - BILL 060003, ETC. Baldinger, MOIS. What we have been working with with the housing agencies, the Redevelopment Authority, is a series of technology projects that would be designed to assist in managing the City's redevelopment activities, the acquisition of properties through the redevelopment process, the disposition of those properties. And we've talked about that as a series of activities around a project called VPMIS, which I think you're familiar with. The technology that we're developing really supports the agencies as they exist today and really doesn't depend upon whether there's reorganization either in any way. The things that have to be done for technology to support the housing activities are things that have to be done, aerobics. They have to be done regardless of how we organize the housing agencies. 105 2/28/06 - WHOLE - BILL 060003, ETC. So that's why we believe that we're not really part of the reorganization activities. These things have to be done however, whether there's a decision made to reorganize or not.
You're welcome. The Chair recognizes Councilman Nutter.
Thank you, Madam Chair. Ms. Neff, just to go back for one second to the place where we were before. You indicated with regard to the higher education reimbursement program that one other person had asked to participate in that program from your department. Did you say that earlier?
Was it approved? 106 2/28/06 - WHOLE - BILL 060003, ETC.
And without getting all the details, but what was the nature of the request or what was approved?
I mean, what is the person pursuing? Where are they going? What does it cost?
This person also pursued a Master's degree, with a commitment to using that skill sets within MOIS and is a project manager in the City.
I get the impression from what you said this has already happened?
I'd have to let you 107 2/28/06 - WHOLE - BILL 060003, ETC. know. It was a local college. I believe it's Temple, but I'm not a hundred percent sure. I just don't recall.
Who administers this program? I mean, who is in charge of this?
And you just write to her? I mean, does she approve it?
There's a formal process that you have to go through. You 108 2/28/06 - WHOLE - BILL 060003, ETC. have to have your supervisor and your manager's approval, and it has to be related to your job. There's several elements involved in the program.
And are the costs paid out of central personnel or does it come out of the budget of the agency making the request?
I believe it's central personnel -- no? Oh, it does come out of the department's budget.
If someone made an application today, where would I find the funding for the cost in your present budget?
Is that Line Item 256? That's Seminar and Training Sessions.
No. I think there's 109 2/28/06 - WHOLE - BILL 060003, ETC. two categories, aren't there? I can get back to you, Councilman, with the specific line item.
The ASC. We're one of the first administrative services cluster that handles the finance for Finance, HR, Procurement, MOIS.
I'm Deborah Beatrice. I'm Director of the Administrative Service Center.
I'm sorry. 110 2/28/06 - WHOLE - BILL 060003, ETC. What's that last name again? Beatrice?
Okay. Well, I know you were paying very close attention back there, so can you tell me on which of these line items is the one that's used to pay for higher education reimbursement?
256. And you're anticipating $33,000 in costs for '07?
Yes. MOIS does provide a detailed budget of all their training that they anticipate in the fiscal year at the beginning of the fiscal year.
Are you anticipating anyone applying for tuition reimbursement?
For '07, that hasn't been provided just yet. They won't know until closer to the beginning 111 2/28/06 - WHOLE - BILL 060003, ETC. of the fiscal year what training they will be anticipating.
Well, if someone did make an application after July 1, 2006, the start of the fiscal year, I don't know how many other trainings you do out of that, but if the average cost of the one year of an MBA is about $29,000, that kind of takes all your money. So are you going to move it from somewhere else?
Yes. We would have to look at another area in the Class 200 budget if we needed to.
I'm sorry, Councilman, if I may. Just looking back at 256, you're estimating for 2006 $33,800 and you're estimating the same amount for '07. Would that have been for Mr. Dean's reimbursement?
Some of that would 112 2/28/06 - WHOLE - BILL 060003, ETC. have been, yes.
Well, I thought you indicated that it cost $29,000 for the two-year program.
So you're only spending approximately $4,000 for anybody else?
But we're talking about '06. We're talking about '06.
You're going to have to bear with us while we check it.
That's an awful lot of money for training. You're talking about almost $2 million. 113 2/28/06 - WHOLE - BILL 060003, ETC.
Under Training Vendors, the Online Consulting, Inc. under Training Vendors, which is just one component of 251 --
I'm very confused. How does that pay for educational services for anybody?
There are different types of training. They're in the two pools.
Well, apparently there are, when you refer to, what number was that, for over a million dollars?
No. That's total professional services. When you go into the details, the supporting details, one 114 2/28/06 - WHOLE - BILL 060003, ETC. item under 251 is Training Vendors. There are two amounts, 10,000 and 30,855.
I'm sorry. That's as clear as blue mud to me. I just cannot understand --
-- how you're actually deciphering all of these figures. Somehow or other you're going to have to break that down for us.
Councilman Clarke. Oh, I'm sorry. Did I cut you off, Councilman?
That's okay. So I wanted to ask you about . There's a line item under -- we 115 2/28/06 - WHOLE - BILL 060003, ETC. have a couple 251's, but the first 251, you have a line for IT Security Consulting of $190,000.
Which appeared not to exist in Fiscal '05 or Fiscal '06.
That is part of the cost to help us set up the IT security program and office that we have submitted for approval.
Well, it's to be determined. We'll issue a request for proposal, as required under the new legislation.
As we put the program together, we looked at what we 116 2/28/06 - WHOLE - BILL 060003, ETC. thought the consulting costs would be and this is our estimate of that. You gather that by talking to multiple companies in this field.
One wireless question, and I apologize for the redundancy. I think Councilwoman Reynolds Brown may have asked you about the wireless contract.
I did not hear the answer, and I apologize. When do you anticipate that contract coming over?
It should be transmitted shortly, either this week or next week.
Yes. Well, the final sign-off is waiting and will come 117 2/28/06 - WHOLE - BILL 060003, ETC. with the transmittal.
Ten-year with two fives. The legislation you anticipate sending over with the two five-year options, they would be approved if the whole package is approved?
The Street Light Use Agreement includes the ten-year, and I don't recall specifically how the two five-year options are listed in that agreement.
So you don't know whether you'd have to come back for further approval for any of the --
I'd need to verify 118 2/28/06 - WHOLE - BILL 060003, ETC. that. That contract was worked through the Law Department.
All right. So you said you think it's coming over in a week or so?
Okay. Lastly, with regard to Mr. Dean, is it true that he is the integrity officer for MOIS?
That was an interim six-month -- my director of IT operations passed away, and until such time as we hired the new IT operations director, that is a part of that position. Mr. Dean was in there for approximately six months.
Applies the City policies and works with issues that come 119 2/28/06 - WHOLE - BILL 060003, ETC. up within the Department.
You have to admit that's kind of funny, don't you? You had trouble holding that one back, didn't you? Yeah. I won't even say anything about that one. Applies the City policies. Okay. And what else?
And works with the appropriate departments on issues to be resolved, and he interfaces with staff.
Okay. With regard to wireless, how much have we spent so far on getting wireless to the point of being, I guess, a week or two away from a contract being sent over to City Council?
No. That was an economic stimulus loan from PIDC. 120 2/28/06 - WHOLE - BILL 060003, ETC.
Is it possible that that could be converted to a grant?
I don't know, sir. I'd have to check on that. Wireless Philadelphia's intention is to repay the loan.
I'm sorry. What was the figure that was given to us as to what has been spent to date? 121 2/28/06 - WHOLE - BILL 060003, ETC.
We were disputing up here what we heard. Thank you.
Okay. Ms. Neff, thank you very much. It's been enlightening. Thank you, Madam Chair.
Thank you. The Chair recognizes Councilman Clarke.
Thank you, Madam President. Good afternoon. I just have a couple of quick operational questions. How many departments utilize online services for payment?
We have, I believe, six different departments that have different forms of online payment capabilities, whether it's police accident reports, taxes, permits, records. 122 2/28/06 - WHOLE - BILL 060003, ETC.
When the decision was made to -- and I don't know if it was done all at once or if it was incrementally done -- to shift these services over to online services, was it done because the technology was available or was it done to reduce the cost of government, or was it a combination of those things?
It was a combination. There was quite a bit of study, about months, where we looked 14 at the technologies, we looked at the 15 potential interest, and we did a 16 return-on-investment analysis. We 17 received a productivity bank loan. To 18 date, we've had over 65,000 people use the system and over $8 million in revenue has been collected.
That's a part of my next question. So the portion of this decision that related to reducing the cost of government, do you know how much we save? I'm assuming this has 123 2/28/06 - WHOLE - BILL 060003, ETC. reduction of personnel so we don't have to have cashiers and people down in MSB.
The intent was never to replace people with this, because we still offer people that can come in and pay at the counters that can mail their bills in, and so this really was an enhancement and an opportunity for people to be able to pay online, which has been a part of Mayor Street's Electronic Government Initiative since he came into office.
It really is revenue enhancement, and anecdotally, we have heard from the departments that this has provided an opportunity for people not to go into default, because on the 89th day, they can go online, make a credit card payment. And so it really has been a benefit in revenue to us.
So it 124 2/28/06 - WHOLE - BILL 060003, ETC. really hasn't reduced the cost of government. The first question I asked you, I wanted to know was it a combination of these things, and you said yes. And my understanding, that a part of that was reducing the cost of government because you would not have to have as many cashiers to service people, and now you're saying that was not the case, it was not a component of this decision?
We certainly looked at that, and it's cost avoidance, not having to add additional, being able to collect those revenues. But until a city goes completely electronic, there would be no way to eliminate. Now, you may not have to replace, but I can't give you specifics on that. I certainly can share what the original analysis was.
I just think I remember having that discussion in one of your earlier budget hearings. So this is essentially a revenue 125 2/28/06 - WHOLE - BILL 060003, ETC. enhancement program, to some degree?
The fees vary by the type of transaction. I can get you a fee chart, whether it's a water bill or it's an accident report.
It's a very specific routine. I just can't enumerate that to you, but I'm more than happy to get you our rates and fees on this.
Okay. Can you tell me what it's based on? I'm assuming different departments may have different needs. Is it based on that particular department in terms of the fee structure or does your department 126 2/28/06 - WHOLE - BILL 060003, ETC. determine the fee structure? How does that work?
No. It's a coordinated program. We just implement it. The department that's the owner of that has the fee schedules, whether that's per report or per page or a dollar based like on the water bill, and then there are caps and routines. It's very complicated, but I'm happy to get a copy and share it with you.
I'm just interested, because I actually do get some complaints. Actually, we've been doing some forums out in the neighborhoods, and I was actually encouraging people to make payments online as a part of the presentation because we thought it was actually reducing the cost of government, because it was my understanding that we didn't have to have as many people working in the basement of MSB.
There is a cost 127 2/28/06 - WHOLE - BILL 060003, ETC. avoidance element in there.
All right. In terms of our libraries, can an individual go to a library, Philadelphia Free Library, and make a payment from the computer in the library?
Just no matter where you make your payment from, there is a fee. There's a transaction fee and a user fee, I believe.
So it's the same fee if it's in someone's home or it's at a municipally owned computer system?
It's the cost of that electronic transaction and repaying the productivity bank loan. And there is some legislation in regards to credit 128 2/28/06 - WHOLE - BILL 060003, ETC. card fees and whether the City can pay for that. You have to be able to collect that.
So there's no way to -- and I don't know. There may be a way. Is there a way that if you use a municipally owned computer system and you want to make a payment, that that fee structure couldn't be different than a person who has a personal --
Not just for the credit card. I'm assuming we're collecting fees separate and aside of the credit card fee.
The fees are to cover that credit card percentage that they charge.
And the payment for initiating the system itself has to be repaid, and so that's what the costs 129 2/28/06 - WHOLE - BILL 060003, ETC. are --
But do we have the wherewithal to eliminate that fee if you use a municipally owned computer system? The credit card is what it is. There's a fee associated with the credit card use. But if there is a fee associated with the productivity loan and the City administering the program, is there some ability to have flexibility in determining the fee structure as it relates to that?
Well, because there is no way for us to track whether you're using a municipally owned computer or if you're using a computer, a hand-held device or a computer at your home.
There's no 130 2/28/06 - WHOLE - BILL 060003, ETC. way to determine that?
Without adding fairly sophisticated software, which would be quite expensive. And our City policy has not been to track that. It's a privacy issue.
All right. So I have a little better ability to respond when I go out in the neighborhood and people are saying, Why do I have to pay? I'm paying online. Why do I have to pay a fee?
The City could determine to waive all of those fees to make it consistent.
And I, frankly speaking, wasn't able to answer that question.
You're welcome. 131 2/28/06 - WHOLE - BILL 060003, ETC. The Chair recognizes Councilwoman Brown.
Thank you, Madam President. Back to Wireless Philadelphia. I actually missed a question regarding ensuring that young people of all types will be looped into this opportunity. In the plan, there are provisions for strides that include schools and young people of all types being included. That's actually written in the plan, correct?
That is in the Wireless Philadelphia digital inclusion plan, yes.
Okay. We'll just have to presume that that is true until we get a chance to read it. Will we have a chance to read it?
Okay. All right. Thank you. 132 2/28/06 - WHOLE - BILL 060003, ETC. Thank you, Madam President.
You're welcome. The Chair recognizes Councilman Rizzo.
My day wouldn't be complete if I didn't ask you about wireless, about WiFi. Could you go back to a company that once wired Philadelphia with devices, obviously a slower technology, called Ricochet? They wired all of Philadelphia and some of the suburban counties. Our street lights are going to start to fall over if we attach many more devices to them. I was talking to someone in our street lighting department, that many of the employees don't even know what they are and when they go to change a fixture, they just throw the device away. They're energized. They're working. Don't you think at some point you need to make a decision? And I don't 133 2/28/06 - WHOLE - BILL 060003, ETC. understand how this deal was structured, but these abandoned devices are all over Philadelphia. They're all over some of the suburban communities. What is the status of Ricochet and why do we continue -- even though these machines are idle, they still consume energy because they are attached to the network, and as long as they're attached even though -- and they're transmitting something, but not a signal, that they're consuming energy. At what point are you going to put an order out or the Law Department put an order out to take all of these devices that have been abandoned in place for many, many years?
But the City was. 134 2/28/06 - WHOLE - BILL 060003, ETC.
-- them and allowed them to do what you're trying to get us to do for this new company, to attach these devices to our street light network. We have a company that has hundreds of these devices that I believe is in bankruptcy or emerged from bankruptcy that still have these devices attached. At some point, someone, and maybe you should be the one to suggest it, remove the attachments if they are -- are they legally attached still based on the business relationship we once had?
That would be a question for the Law Department. Because of the bankruptcy and the programs, I do not know what the legal implications are for removing those from the street 135 2/28/06 - WHOLE - BILL 060003, ETC. lights. I can tell you as a part of the new contract, we're very concerned about that and put tight controls in there, but because the company was under bankruptcy law, it's not an area of my expertise. We would need to ask the Law Department to respond on that.
I'd appreciate your department involving yourself with that since it is wireless technology that the City was engaged in, and even if it was before your time -- I'm not really sure of the timeline -- that if those devices are no longer required or no longer legally attached to our network, again, consuming energy that is not being billed, they should be removed, and I'd appreciate you being the point person and help me with that.
I will certainly ask the Law Department to give us an opinion on it. I'd like to see them removed as well.
Good. 136 2/28/06 - WHOLE - BILL 060003, ETC. Thank you, Madam Chair.
You're welcome. The Chair recognizes Councilman Nutter.
Madam Chair, I actually, which will be Ms. Neff's pleasure, I actually have no 10 questions for her. I have a request of the Chair upon the time that Ms. Neff is finished.
Well, I think she's finished. There's no one else to be recognized.
Madam Chair, I have been in and out of the room 18 a couple times, but I'm trying to figure out who is the highest ranking representative for the City Administration that's handling budget information requests. Normally there is a person identified. In the past, often it's been the Budget Director, but she may have left. So I'm trying to figure 137 2/28/06 - WHOLE - BILL 060003, ETC. out who is in charge of the operation.
Thank you. Mr. Maher, thanks for coming up to the table. I don't know if the Personnel Director is available. You've been here most of the afternoon?
No, I haven't. Ms. Reed had a meeting with the Mayor at 2 o'clock, so I came over in her stead.
All right. Well, we won't replay all of the Q and A from earlier today, but there was discussion about this higher education reimbursement program that apparently some of the public employees have had the 138 2/28/06 - WHOLE - BILL 060003, ETC. opportunity to participate in. Ms. Neff shares with us that it's handled by Personnel, and I guess that would be Ms. Orfanelli's department. Can you forward to the Chair some detailed information about this particular program, how do you apply for it, who is eligible, how much it costs, does the City pay, who has participated in the program each year for the last five years, where they go to school, what was the cost and the degree attained.
Yes, Councilman. I'll bring that information back to the Personnel Director and have that information forwarded.
Now, you are obviously highly skilled and extremely talented, which is why you're in the position that you're in, but you must share with me your secret. I asked you for ten things. Your pen never touched the pad and you've promised that you're going to get me the information. 139 2/28/06 - WHOLE - BILL 060003, ETC. How are you going to do that?
I would call Sharon Ortiz, the Administrative Services Director, who is able to take down questions almost verbatim from the transcript. Because the way you asked the question, Councilman, it was very quick, and I would have asked you at a break in the hearing a contact at your staff actually to get the full detail of your question.
Okay. But you understand that I asked you to come up as the representative for the Administration.
I have been paying a little bit of attention. I think Ms. Ortiz works for us.
I asked you the question. So I would like you to put it on your pad and have the information so that I can get my information from 140 2/28/06 - WHOLE - BILL 060003, ETC. you. I could have gone over and asked Ms. Ortiz that information myself.
Yes, Councilman. I can ask you please to repeat the questions then so that I can take them down and make sure I get the question.
I was in a total stream of consciousness. You expect me to repeat ten things in a row? I was on a roll. That's why I asked you to come up. You had a pad. You had a pen. Mr. Maher, is this your first time up at the table?
Not a great start. Okay. Information on the program, how do you apply, what are the criteria, how much will the City pay for, how many people have participated by year for the last five years, what schools did they attend, what degree did they attain.
I'll have to ask 141 2/28/06 - WHOLE - BILL 060003, ETC. you to go back, please, to the by year for the last five years. Then what's following that? I'm not a fast writer. I'm sorry.
I understand. Why don't we do this: We have many other folks to get up to the table. You and I can talk across the rail.
You're welcome. Do we have any other questions or comments from members of the Committee? (No response.)
Ms. Neff, good luck. When do you go in? 142 2/28/06 - WHOLE - BILL 060003, ETC.
Our next witness? MR. McPHERSON: The Mayor's Office of Community Services.
Good afternoon. Kindly identify yourself for the record and proceed with your testimony.
Good afternoon. My name is Ralph Blakney, Executive Director of the Mayor's Office of Community Services. President Verna, other members of City Council, for Fiscal Year '07, the Mayor's Office of Community Services is requesting an appropriation of $23,823,964.
Is that your testimony? We do have a copy 143 2/28/06 - WHOLE - BILL 060003, ETC. of it.
That would be fine. That would be fine. We'd appreciate that.
Yes. President Verna, the Mayor's Office of Community Services is also known as the agency that's responsible for working with low-income people in the City of Philadelphia. We do this through a number of ways, and, that is, by coordinating resources. We also run a number of programs directly, as well as support the operation of programs in other City agencies as well as other non-City entities. I would like to just call your attention to the last bullet of the testimony. There's one number there that needs to be corrected, and, that is, the bullet where it says 966 fathers in the last bullet. I just wanted to clarify 144 2/28/06 - WHOLE - BILL 060003, ETC. something, and, that is, that the bullet reads "Fatherhood Initiative, $350,000 from the Commonwealth's Act 148 child welfare award to DHS, a program to support upwards of 966 fathers who are behind in child support through workshops and other programs." The clarification is that the program does not only service fathers, but it services mothers also. So rather than say "fathers," I'd like to change that to clients, and that number 966 should actually be 600.
And not fathers. Okay. Mr. Blakney, how many employees did you have in FY06?
I'd like to call up the liaison from the MDO to the Mayor's Office of Community Services, Mr. Tom Schaeffer.
145 2/28/06 - WHOLE - BILL 060003, ETC. Mr. Schaeffer, please approach the witness table. Is Mr. Schaeffer here? Oh, it's not Mr. Schaeffer. Hello and welcome.
No. No. Good afternoon, President Verna, Council. My name is Julia Danzy, Director of Division of Social Services, under which MOCS is one of our programs. I was going over this earlier in terms of the personnel that we have, and hopefully I can find that sheet. There's a total on MOCS' budget of 210 as of --
This is for what we budgeted for in '07. So it is as of February '06.
And 146 2/28/06 - WHOLE - BILL 060003, ETC. how many?
210. However, the reality is that some of those are mixtures in other programs and that for those who work directly with MOCS, that total number is really 93 as of 2/1/06.
They're assigned to programs that are funded through other grants, such as with the Department of Human Services, such as with the Department of Health, persons we have identified to work with those programs, persons who are working like in supportive works, which is under the Managing Director's Office, but they are all under MOCS because they're identified on their payroll as being monies coming through MOCS.
Okay. Thank you. You might as well stay up there just in the event that there's any other questions. 147 2/28/06 - WHOLE - BILL 060003, ETC. Mr. Blakney, can you explain what the Supported Work Program is and how you spend the $1.8 million?
The Supported Work Program is also akin to Welfare to Work. It's basically a job preparation, job placement program. The clients are referred from the County Assistant's Office, Department of Public Welfare. The clients come in. They receive an orientation. There are trainings and workshops that they undergo in preparation for work. There's a number of supports, including clothing and other things they may need to be ready for work. The program is basically broken down into three components. That's case management, job retention and job development. There's also a newer component, which is basically to work with those people who are less ready than those who we ordinarily have been receiving as referrals from the County 148 2/28/06 - WHOLE - BILL 060003, ETC. Assistant's Office.
I would like to bring up Mr. Leon Simmons. He is the actual director of that program and he can speak to the details.
The answer to your question for 2005-2006, the number is 200.
And do you track their work history after they leave your program?
Yes. That's actually one of our strongest components. The history of the MOCS Supported Work 149 2/28/06 - WHOLE - BILL 060003, ETC. Program involves placement of people, placing our customers into employment, but, more importantly, assuring that the employment that we've put them in will be self-sustaining employment.
Well, of the 200, if you did tracking, can you tell us how many of them remained?
That would be very interesting. Mr. Blakney, you talked about the Clients Initiative rather than the Fatherhood. Can you go into a little detail on that, please? What is that?
You said rather than call it Fatherhood Initiative --
I was not -- I'm sorry if I did not explain the change correctly. The actual testimony that you 150 2/28/06 - WHOLE - BILL 060003, ETC. received basically indicates that the program provides services to fathers, and the reality is that there are mothers. There are women who have also been referred to the program and have participated in the program.
All right. Tell us a little about the program, if you will.
The Fatherhood Initiative Program, the history is that this is a program locally, which is part of a national initiative called the National Fatherhood Initiative. They basically use a curriculum, a certified curriculum, which is being used in other cities, to prepare non-custodial fathers primarily and now non-custodial fathers and non-custodial mothers to have better relationships with their children. We began this program several years ago working in shelters. As we began working in shelters, because there was a lot of non-custodial fathers there 151 2/28/06 - WHOLE - BILL 060003, ETC. who were actually reaching out for help in relating to their children, it did not take long before we developed a relationship with the Philadelphia family court, and since that time, the majority of the clients have been referred from family court. I believe it's now upwards of 80 percent of the clients enrolled in the program are being referred through family court. And so initially it was basically to teach the curriculum. The clients actually participated in 15 different workshops about parenting. As 16 we began working with the clients around parenting skills, we also noticed that there were a number of other issues that the clients came with. It's quite natural to understand that if they were being referred from the courts, that they were coming with issues of child support. They were also coming with transportation issues. Many of the people who were coming were not paying support because 152 2/28/06 - WHOLE - BILL 060003, ETC. they were unemployed. And so the program actually took on a lot of dimensions over time, to the point where job assistance is part of the program. Case management is also part of the program, as well as helping them to meet the critical needs that they have which may prevent them from finding jobs, such as clothing.
What is the average age of the clients that you serve in this program?
That, I don't know. I can get that for you. I don't know if the director of the program, who is here, has that information readily.
I'd like to bring up Mr. Gilbert Coleman, who is the Director of the Fatherhood Initiative Program.
Is he here? 153 2/28/06 - WHOLE - BILL 060003, ETC. Good afternoon. Please identify yourself for the record.
Good afternoon. I'm Gilbert Coleman. I'm Director of the Fatherhood Initiative Program for the Mayor's Office of Community Services.
The Parenting Initiative Program for the Mayor's Office of Community Services.
I thought it was clients. What are we calling this program? Clients Initiative? Parents Initiative? What is it?
And did you indicate how many clients we have 154 2/28/06 - WHOLE - BILL 060003, ETC. serviced in the year?
And do you have the breakdown as to how many of them were men, how many were women?
I think it is the Fatherhood Initiative. Okay. Thank you. The Chair recognizes Councilwoman Brown.
Thank you, Madam President. How much time is left on the 155 2/28/06 - WHOLE - BILL 060003, ETC. Fatherhood Initiative piece? I see here you have $350,000. So that actual grant period ends when?
Well, that grant would go until the end of our fiscal year, and then that would be the decision of whether or not -- which it is being continued into the next fiscal year. So it goes like our needs-based budget in terms of -- because that funding comes from DHS and Act 148.
So do you have to reapply for it at the end of the fiscal year based on performance?
Yes, in the sense that DHS, as they look at all of their overall priorities, has to submit and determine whether or not that can be approved for funding.
And you mention that Philadelphia family court is 156 2/28/06 - WHOLE - BILL 060003, ETC. one referral. DHS, I would presume, is another referral source?
What linkages do you have with faith-based institutions here in town; namely, with the Administration's faith-based initiative? Any linkage at all?
There's presently no linkage at all as far as referrals are concerned.
We measure success with a post and pre-assessment. We also look at whether the person has moved forward in self-sufficiency, whether they've completed our 12-session workshops on parenting, whether they completed our job assistance training. Also, we look at whether they had completed our money management workshop.
So all those are criterion for whether or not 157 2/28/06 - WHOLE - BILL 060003, ETC. that particular individual has been successful at the end of the program. Is that what I'm hearing?
On of the testimony, there's a lot of discussion of Katrina. However, I could not determine how those efforts were funded. Who or what paid for the enormous response that the City had with regards to Katrina?
MOCS was one of the many departments that participated in that effort, which was, I believe, coordinated under the auspices of the Managing Director's Office.
I'm very much aware of that. I was curious to know, however, how were those efforts paid for? Were those dollars pulled from LIHEAP?
No, they were not. Basically, the services that were provided were more in staff time and 158 2/28/06 - WHOLE - BILL 060003, ETC. coordination of volunteers, that kind of thing.
I see. Moving to the LIHEAP piece, any tie-in or linkage with Lance Haver and the work they have been doing around the recent CITGO deal?
I don't know what that deal is, but I can tell -- let me just say this -- oh, I know what deal you're talking about. Right. Okay. We are very much involved with Lance Haver. In fact, the weatherization program, the LIHEAP, the PGW that you'll see here, all of those initiatives, we sat together, because that is one of the hallmarks right now of DSS, which is integrating our services with other programs within the City. And so what we did was, we coordinated and took some of our money to work them, tried to find 159 2/28/06 - WHOLE - BILL 060003, ETC. ways that we could also fund some of the energy pieces and kind of did a full program, with MOCS having a segment in that overall programming.
So given the large numbers of citizens in our City who were struggling with paying of bills, can Lance Haver speak to how the agreement arranged with CITGO -- and I don't remember the details; I only know it was huge -- has made a difference for how many more families who have been struggling with paying their water bills?
Good afternoon, Councilwoman Blackwell. My name is Lance Haver. I'm Director of Consumer Services for the City. And it's nice to be identified with such a wonderful program, but I think I should be more straightforward. It is Congressman 160 2/28/06 - WHOLE - BILL 060003, ETC. Fattah and former Congressman Kennedy that made all the arrangements. I was just helpful to them. We hope that we will bring low-cost heating oil to 20,000 families as a result of that, but I would just like to point out that because Council took the leadership in making money available, the City of Philadelphia did something that was unique in the country. After the Katrina hurricane disrupted natural gas and the gas prices really doubled, the City of Philadelphia went out and held a number of conferences and did a number of things, which I'd like to review, because it wouldn't have been possible without this Council. The first thing they did was reach out to all of the City services, all the DHS workers, all the contracted workers, to make sure that they all knew to tell their clients about Crisis and LIHEAP grants, about the CRP program at the Gas Works and about the heating oil 161 2/28/06 - WHOLE - BILL 060003, ETC. co-ops. This was before the Congressman had reached the deal with CITGO. Second, PGW, the MOCS and the energy coordinating agencies worked together to sponsor over 200 weatherization workshops, which the City allocated funds for for the plastic, the weather stripping and the radiator reflector sheets. At this point, I don't have a final number. We haven't finished counting, but at this point, it appears that we have reached 13,000 families. We don't know how successful the program will have been yet. Every one of those families signs up. Every one of them that uses natural gas, we have an agreement that the Gas Works is going to look and see how much energy was actually saved so we can see if it was done in a cost-effective basis. I hope to be back before you next year and be able to tell you how successful it was and what changes we made based on that. 162 2/28/06 - WHOLE - BILL 060003, ETC.
Were the workshops a new effort because of the pending crisis of the rising gas rates?
There had always been workshops. This was the first time there were so many of them and it was the first time that the City supplied the material so that families could get them at no cost. In addition, there's the traditional programs that are going on. The City also made available for the first time its PHIL-Loan and Mini PHIL-Loan Plus for middle-class families to have access to low-cost capital, and Treasurer Casey along with Senator Fumo set up a weatherization fund for the state, again, for middle-class taxpayers to be able to borrow money to put in energy-efficient systems. So the MOCS played a very central role in doing that. We could not have done the outreach. We could have not done as many weatherization workshops 163 2/28/06 - WHOLE - BILL 060003, ETC. as we did. I believe that they were effective, judging by the number of people we reached, but how much energy we saved and how cost-effective it was, I ask you to understand that I don't have those numbers and I will not have those numbers by the end of this budget year. I will not have them until the summer.
So then it would be premature to grade the efforts around the number of workshops and the number of families that benefited from what you just described?
I think that would be accurate. I would like to hope that you would believe that you would ask us to do better again next year and that every year we come before you, you ask us to do better than we did the year before. But the effort was there. It was unique. If you looked around the country, the City of Philadelphia did more than any other city in America. We were successful in lobbying the state for 164 2/28/06 - WHOLE - BILL 060003, ETC. the first time in the history of the state of Pennsylvania. There was a LIHEAP allocation done. We were not successful at getting an increase in the federal LIHEAP allocation. That was a struggle we put up that we lost, and, again, I believe I should tell you the good and the bad. We lost that struggle. We had believed that the federal LIHEAP allocation would be raised as a result of Katrina. That did not happen, and, unbelievably, energy prices have quadrupled since this President took office. The number of people living in poverty has increased, and the federal LIHEAP allocation has remained the same. So that is why the City had to do so much more than it had done in the past.
And should we clarify that further. "We" is "we" municipalities around the City, not just "we" Philadelphia lost, correct?
That's correct, yes. But the heating oil that 165 2/28/06 - WHOLE - BILL 060003, ETC. Congressman Fattah and former Congressman Kennedy put together helps the entire Delaware Valley. The only city in our region that did the weatherization workshops was funded by the City Council and by the City.
And then, finally, you say we hope to reach 20,000 families. What is the status?
We have reached at last count -- and I'm about three weeks behind, but at last count, we were at 13,000. This year for the first time in the Heater Hotline Program that we run, and I think you'll hear about later, when we go out and fix somebody's heater, we also weatherize their home. We are up to doing -- we are budgeted to do 5,000 of those, but we are not finished doing them, and I think that we will reach our budget number, but that is a service people call in. So that number is not finished, which is why it's hard for me to give you a complete count. 166 2/28/06 - WHOLE - BILL 060003, ETC.
Any ties with the Philadelphia Corporation of Aging, the seniors? And this comes from doing senior forums in the fall of the year where many of them are at a loss. Even in calling Philadelphia Corporation of Aging, they end up worse off than the phone call initially made.
The answer is, not as much as we would like. PCA did their own fundraising this year. They did work with the United Way to do some weatherizations. We did not do as good a job as what we think we can do in the future. I'm told that the MOCS did six workshops for the seniors.
So is that to discuss then that a plan is being discussed at least to strengthen the relationship with Philadelphia Corporation of Aging since they are principally in the business of servicing seniors?
The answer is yes. 167 2/28/06 - WHOLE - BILL 060003, ETC. The other thing that we're not sure whether we should have done and we're going to be looking at is, we did not put in what's called a set-back thermostat that automatically turns the temperature down at night. There are other test models where that's been tried. They're much more expensive than the other treatments we've done, and they have some retail value. So if you were to be given one and you decided to sell as opposed to use it, you would be putting some money in your pocket. So we have some questions about whether that's the best use of our funding, of our taxpayers' funding. So we're looking at that model where it's been tested to see whether that savings is significantly more significant than what we've been doing and whether it will be cost-effective. That seems to be a much better model for seniors than asking them to put up plastic. Frankly, there are a lot of people, like myself, who 168 2/28/06 - WHOLE - BILL 060003, ETC. don't want to ask seniors to get on ladders to put up plastic.
Where are you housed? Where do you do all of your good work?
Well, I'm downstairs, but all of these workshops happen throughout all of the Council regions, throughout all parts of the City. Again, half of them were done through the MOCS, and the MOCS really did a tremendous share of the work.
Well, I wanted to go on record to commend you and MOCS and everyone else that played a role and has played a role in doing what the City can to make sure that families are warm, period.
Councilman, if I might, before Mr. Haver 169 2/28/06 - WHOLE - BILL 060003, ETC. goes, I certainly would like to say thank you as well. Thank you for taking care of a case on me Friday afternoon when everyone was gone. And certainly the weatherization programs that the MOCS office had been involved in have really gone well. They've gone very well in the community. We really do get complaints from PCA, and maybe it is funding. I don't know, but we've been getting complaints for the last few years about them and even how people are treated. Maybe it's frustration. I don't know. But we are happy that the MOCS office has picked up that banner, and we commend them, because they're doing a great job.
One question regarding the Foster Grandparent Program. Do the staff with this program currently work with experienced core at 170 2/28/06 - WHOLE - BILL 060003, ETC. Temple University, which is in the business of bringing in retirees and placing them in schools around the City or affiliated with youth programs? Just talk about the Foster Grandparent Program.
Yes. I'll just ask Phyliss Royal to come up. Ms. Royal can actually answer that question in detail.
Good afternoon. Phyliss Royal, Director of the Foster Grandparent Program. The answer to your question is no, we do not recruit from experienced core.
Well, I would like to suggest that they are a terrific group in the business of taking seniors, retirees, former professionals, teachers and the like who still are committed to giving back and particularly want to work in schools. They would be an excellent partner in terms of 171 2/28/06 - WHOLE - BILL 060003, ETC. enhancing what you do already with the Foster Grandparent Program.
Yes. I'm very familiar with that program. However, our program does have income limits that the experienced core does not.
So we do share in our federal funding. We're under the same umbrella. So I'm very familiar with that program.
How many young people are currently involved with the program, Foster Grandparent Program?
How many young people are currently involved with the program?
What we do is, we recruit low-income senior citizens to work in communities, local communities, such as Head Start, hospitals, daycare centers. For Fiscal Year 2005, we served 172 2/28/06 - WHOLE - BILL 060003, ETC. approximately 10,000 children who had special exceptional needs.
I haven't been a former social worker. "Served" is a big word. What does that mean?
That means that these seniors engaged children on a daily basis, assisting them in one-on-one activities or in small group activities, providing that consistent care on a daily basis so that they can improve in targeted areas that the teacher may see as they need to strengthen. So depending on the targeted areas, that's what the volunteer would help on a daily basis.
Finally, when you say "targeted areas," is there any linkage with the Mayor's Youth Violence Prevention Project? Because that also is about targeting communities where we know there are a high incidence 173 2/28/06 - WHOLE - BILL 060003, ETC. of youth violence. Any linkages with that initiative?
There are no 5 linkages there. That's something that we can look into, but at this time, there are no linkages.
In fact, let me just add on to that. That is indeed -- we are right now in the process of some transformation and reorging within MOCS, because that is indeed one of the high priorities, and we want to attach community engagement pieces and all of our programs that would be appropriate for working in concert within those programs, so that AVRP, MOCS, Police Peace, we're all doing that together in terms of the community engagement.
Thank you. Thank you very much. Thank you, Madam Chair.
Thank you very much. Any further questions? 174 2/28/06 - WHOLE - BILL 060003, ETC. (No response.)
Thank you, gentlemen and ladies. Thank you. MR. McPHERSON: The next department to be heard from is the Mayor's Office of Housing and Community Development.
Thank you. We welcome you and ask you to identify yourselves for the record and begin your testimony. MS. McCOLLOCH: Good afternoon, Councilwoman Blackwell.
Good afternoon. MS. McCOLLOCH: I am Deborah McColloch, Director of Housing. I am here today to present testimony on the Office of Housing and Community Development's proposed operating budget for Fiscal Year 2007. 175 2/28/06 - WHOLE - BILL 060003, ETC. The proposed operating budget under the Community Development Fund, Grants Revenue Fund and General Fund also will be presented in the spring to the Finance Committee in its hearing on a Council bill on the Consolidated Plan authorizing the Community Development Block Grant known as CDBG and other housing programs for Fiscal Year 2007 known as our CDBG Year 32. Ideally, the Consolidated Plan hearing should occur prior to the consideration of the operating budget by City Council. However, as in the past 13 years, the budget calendar has been accelerated and the hearings are reversed. Should the results of the Consolidated Plan hearing require adjustments to OHCD's operating budget as adopted by Council, there will be ample time subsequent to the adoption of the Consolidated Plan to amend the operating budget. The complete Fiscal Year 2007 proposed budget will be presented as part 176 2/28/06 - WHOLE - BILL 060003, ETC. of the Consolidated Plan hearing. 3 million cut in its CDBG award. For the upcoming fiscal year, the award will be cut by another $6 million. However, this proposed operating budget does not reflect the total decrease, as the award notification from HUD was received subsequent to the budget submission. The changes will be detailed in the Preliminary Consolidated Budget submitted for Fiscal Year 2007. 4 million in the General Fund. This operating budget represents the costs for all housing programs as well as salaries for all OHCD, Philadelphia Housing Development Corporation, known as PHDC, and Redevelopment Authority, RDA, staffs, 177 2/28/06 - WHOLE - BILL 060003, ETC. rents, materials and supplies. 8 million reflects an increase of 119,726 compared to our Fiscal Year 2006 original appropriations. This is due to a non-represented two percent wage increase not budgeted in 2006 and a three percent non-represented wage increase for 2007 and does not include an allowance for any represented negotiated wage increase and will support the funding of 67 requested positions. In addition to the above comparison, our Fiscal Year 2007 Class 100 request does include an additional $13 million reserve provision for any housing agency reorganization. To the extent that these funds are used, an equal amount will not be released in Class 250 for other housing counseling agencies. As you know, there has been some discussion of reorganizing the three housing agencies to achieve greater 178 2/28/06 - WHOLE - BILL 060003, ETC. efficiency in the delivery of housing services. This reserve provision will allow funds to be allocated to support additional staff at OHCD, if necessary, as part of an approved housing reorganization. 5 million. 2 million in allowing for the carryover of prior years entitlement; and a General Fund increase of million resulting in a 179 2/28/06 - WHOLE - BILL 060003, ETC. million compared to our Fiscal Year 2006 original appropriations level. As discussed earlier, the award notification from HUD was received subsequent to this budget submission, and our Class 200 request does not include in total the following award changes: A decrease in federal CDBG funding of 6 million; a decrease in federal housing opportunities for persons with AIDS, known as HOPWA, funding of 253,000; a decrease in federal HOME investment partnerships, HOME, funding of 921,346; and a decrease in federal American Dream Downpayment Initiative funding of $201,788. In Class 300, our Fiscal Year 2007 estimated obligations of 166,000 remained constant, as compared to our Fiscal Year 2006 original appropriations. In Class 400, our Fiscal Year 2007 estimated obligations of 35,000 remained constant, as compared to our Fiscal Year 180 2/28/06 - WHOLE - BILL 060003, ETC.
2006 original appropriations. In Class 500, our Fiscal Year 2007 estimated obligations decreased by million, as compared to our Fiscal Year 2006 estimated obligations. million from the state. Appropriations are also being requested to provide funding for the Section 108 loans in the amount of million and million for Interim Construction Assistance and Bridge Loan programs respectively, should funding become available in amounts similar to prior years. Although the latter two sources may not become available, OHCD is requesting authority so that we will be in a position to administer the funds if received in Fiscal Year 2007. The General Fund programs, funding and service goals are as follows: 181 2/28/06 - WHOLE - BILL 060003, ETC. One, provide operating support for rental assistance for the homeless, and our General Fund request is 117,000. A combined total of 131 units of rental assistance is provided in Fiscal Year 2006 with the same level in Fiscal Year 2007. And, No. 2, the additional 1,270,256 for Fiscal Year 2007 includes 10,000 for Elderly Vacancy Prevention related services, 16,231 for OHCD arbitration services, 1 million for greening, and 244,025 for five employees in program services. The proposed Fiscal Year 2007 operating budget will allow OHCD to continue to provide housing programs such as the Basic Systems Repair Program, subsidies for rehabilitation and new construction, housing counseling and other core programs. The City's proposed plan for spending the Community Development Block Grant, as well as other monies, is to be detailed at length at 182 2/28/06 - WHOLE - BILL 060003, ETC. the Finance Committee's hearings on the Consolidated Plan. However, I will be happy to answer any questions which Council may have today as well. Thank you.
Thank you very much. You refer on at the top of the page that there's a, quote, "$13 million reserve provision for any housing agency reorganization." Now, I want you to expound on that. Does this mean that the Administration is hoping to save 13 million in salary expenses, or what can you detail to us about this $13 million? MS. McCOLLOCH: No. It's not a savings of 13 million. It is reserving funds in Class 100 of 13 million if there's a housing agency reorganization which would need additional funding in Class 100, which would mean additional employees of the City. The same amount would not be released in Class 250, which 183 2/28/06 - WHOLE - BILL 060003, ETC. would be the funds that would be used for other agencies. It's in the separate class, because those are contracted agencies, such as PHDC or the Redevelopment Authority. So this budget provides authorization in both Class 100 and Class 250 to allow for funds to be placed in either class, but they would be decreased from the class that they're not used in and put into the class that they would be used in.
One of the questions we asked, we've had three hearings so far with regard to this housing reorganization, and one of our questions -- because every time we call a hearing, these Chambers are filled with employees who don't have a contract that didn't get one last June and are wondering where they stand and certainly are concerned about where they are placed due to the fact that they could have to start their City investment time all over 184 2/28/06 - WHOLE - BILL 060003, ETC. again if they're moved in and out of various departments. How does this $13 million fit into that? MS. McCOLLOCH: This $13 million will either be funded under Class 100 or under Class 250. It won't be funded twice. This budget authorization allows the funds to either be under Class 100, which would be the class for City employees if people were moved to City employment, or it allows the funding to remain at Class 250, which is where funding would be in this case for PHDC or the Redevelopment Authority. But it won't be spent twice, if you will. It will either be spent in Class 250 or in Class 100.
Are you then saying that the total budget for RDA and PHDC is this $13 million? MS. McCOLLOCH: Those are the personnel costs.
So 185 2/28/06 - WHOLE - BILL 060003, ETC. this then assumes that in the proposed reorganization there would be then no 4 layoffs. How does that fit in? We've been concerned. Let me ask it another way so that maybe I understand your response. We asked the Administration about transferring people laterally. People are concerned who work for the City that they could be downgraded, they could make less salaries, they'd have to start all over with benefits, et cetera. Where does the 13 million fit in in terms of that question? MS. McCOLLOCH: The 13 million doesn't fit in in either case in that question. Thirteen million is -- I'm trying to know how to describe it in a way to make it clear. The 13 million is in this budget shown as a reserve in Class 100 and it's also shown in Class 250. If the funds are needed in Class 250, the reserve fund of Class 100, which is the 186 2/28/06 - WHOLE - BILL 060003, ETC. City class, it would not be spent. It's simply allowing it to be spent in Class 100. If the funds are needed in Class 100 and not 250, it will be spent in 100 and the money won't be in Class 250. So this million doesn't have 8 any application to that. 9
So, in 10 other words, you don't know how this 11 affects the number -- or do you? Do you 12 know how this affects the number of 13 employees you have now, those who could be transferred and are transferred out of your department? MS. McCOLLOCH: This number does not address how employees would be transferred between agencies, if that happens.
No 21 funds are requested for employee benefits. Why, and who pays the cost of these benefits? MS. McCOLLOCH: With me today is Roderick Lyles, who is the Director of 187 2/28/06 - WHOLE - BILL 060003, ETC. Finance for the Office of Housing and Community Development. He may be able to answer and tell us what page that would be on.
In addition to what OHCD would normally request for our fringe benefit cost for its current personnel or current employees, we did allow for an additional appropriation of, I believe it was, 6 and a half million should the 13 million that might impact the consolidation become a reality. There is an additional appropriation reflected to occur.
The fringes are included in the Finance Department's budget. It would not show -- because the assumption then would be that the 188 2/28/06 - WHOLE - BILL 060003, ETC. individuals will be on the City's payroll roster. So the benefits would be budgeted within the Finance Department.
As opposed to what? You said in the City's. As opposed to what? Redevelopment Authority? Is that what you're saying?
Yes. That's correct. We made an allowance on the fringe benefit side to also cover the $13 million in personnel costs, should that occur, and the RDA, PHDC employees become a part of the City's payroll system.
Have either of you been told that this reorganization will occur? MS. McCOLLOCH: It's being reviewed now and it's the Mayor's plan, and when the Mayor is prepared to move forward with it, I believe there will be an announcement about that.
Well, we will say to you, we've had three hearings. We're having another hearing 189 2/28/06 - WHOLE - BILL 060003, ETC. on March 16th at 1:00. We had one scheduled on March 2nd and the Mayor asked that we delay that because there is some Cabinet retreat on that day, and we agreed to do that at his personal request. We do not support this housing reorganization. We have not been told what it is. We have never received one document, one sentence about it, any legitimate information. And we reiterate to the Administration that we will never support a plan that we have no 15 information about. And on the 16th, we will ask the same questions we ask every hearing, where's the plan, who authorized it, who put it together, what does it do, why, what about people who have jobs and on and on and on. So we will continue to make that issue clear. We will not support a housing agenda that expects us to go along with blindly. It's too irresponsible an approach for us and the 190 2/28/06 - WHOLE - BILL 060003, ETC. legislative branch to take. So certainly we know that you don't control that, but we want to make our position clear to every department. We will not support any plan that doesn't include Council in any way, and, frankly, we resent being continually told that there's housing reorganization all around and nobody will tell us who it is, what it is and why it is, only to tell us now to go around the offices saying that there is a plan to create a new OHNP, Office of Housing and Neighborhood Preservation, for whatever reason, and if that is true and if Mr. Hanna is to head it, he's not even here today and he isn't here most times, and we resent the implication that we're supposed to agree to some new process with no input. And where we have experienced people who already head our housing departments, we have a positive relationship, we know they know what they're doing, and to create a whole new operation effective 191 2/28/06 - WHOLE - BILL 060003, ETC. '07, which is the last year of the Mayor's administration and effective the year we run for reelection, just doesn't make sense. If it is so great for the City, then why won't somebody show it to us, tell us about it, spread the good news, as they say in the church. When it's good, you spread the good news. And certainly we will continue to speak out against it. We will continue to say we won't support a housing agenda. We will continue to fight about it, and certainly we want to make that clear for this record, and every time we get the chance, we will reiterate our same concerns and our same fears about what housing reorganization is. Councilman Clarke.
Good 192 2/28/06 - WHOLE - BILL 060003, ETC. afternoon. One quick follow-up on the housing reorganization. Understanding the need to streamline government in all aspects of categories of government, I do support some of the recommendations where we eliminate duplication of services, but my question centers around how much of this has to do with the contracts/compensation/pension programs of the various agencies as opposed to streamlining government. Say, for instance, if somehow the Redevelopment Authority contracts as it relates to all of the aforementioned issues were to be brought in line with OHCD -- and I'm assuming PHDC is comparable to OHCD -- would you then have the need to continue on this program of reorganization? Because what we're talking about now, based on what I understand -- I don't know everything, but I've heard various issues as it relates to the potential relocation. We're essentially 193 2/28/06 - WHOLE - BILL 060003, ETC. talking about moving employees around, and it kind of seems like the focus is on shifting most people over to some of the OHCD programs, that the OHCD would essentially have a certain level of contracts that are consistent with the City contracts, and I guess I'm saying, if the contracts as it relates to the Redevelopment Authority with its employees were the same as OHCD, therefore, the same as the City contracts, municipal contracts, would there still be a need to move those people around? MS. McCOLLOCH: Well, the goal of a housing reorganization would be to ensure effective delivery of program services, and the Mayor's plan, my understanding, is designed to do that, but the plan --
How would it do that beyond what it's currently doing? I'm saying if you're talking about -- and I don't want to grill you, 194 2/28/06 - WHOLE - BILL 060003, ETC. but if you're talking about moving individuals who are currently responsible for one thing in the Redevelopment Authority -- and I know you can't acknowledge that that's what in fact being proposed -- and putting them in another department, those same people are going to do the same level of services, and I don't understand why we would do that beyond this whole compensation issue as it relates to their union contracts. MS. McCOLLOCH: Well, part of it is to streamline what is called the back-office activities so that you could reduce costs through consolidating some activities, such as procurement and office services and that sort of thing. But I have to say, I have not been part of the team that has worked on the proposed housing reorganization, so I really can't speak to the details of it.
Okay. So it wouldn't be fair for me to continue this line of discussion. Okay. Let me 195 2/28/06 - WHOLE - BILL 060003, ETC. go to another issue. Housing Trust Fund. Who administers that program? MS. McCOLLOCH: The Housing Trust Fund, the funds are collected and held in an account, and there is an Oversight Board appointed by the Mayor that allocates how those funds will be spent. A proposed plan was included in the Consolidated Plan that we're operating under right now, and then the Oversight Board allocates by program how those funds will be spent, and then the actual expenditure of those funds goes through OHCD.
Is there any staff associated with the Oversight Board? MS. McCOLLOCH: Staff of the Oversight Board? No. The Oversight Board, as created under the Mayor's Executive Order, is composed of four City representatives, which by the Executive Order are the Secretary of Housing, that 196 2/28/06 - WHOLE - BILL 060003, ETC. would be Kevin Hanna; Director of Housing, that's me; Director of the Redevelopment Authority, that's Herb Wetzel; and the Chair of the Council Subcommittee on Homelessness and Neighborhoods, and that's Mrs. Blackwell. And then there are four neighborhood representatives that were appointed by the Mayor.
But there's no staff or would the assumption be that the City-appointed individuals -- MS. McCOLLOCH: Would serve as the staff.
-- would serve as staff? MS. McCOLLOCH: In terms of having to convene meetings and keep minutes or what-have-you, that would be a staff function that I or one of my colleagues would carry out.
So the recommendations of that Board is based on what? 197 2/28/06 - WHOLE - BILL 060003, ETC. MS. McCOLLOCH: Well, the Consolidated Plan that was passed by this Council last spring that we're operating under now has an allocation of funds based on the work that the Housing Trust Fund, I'll call it, Committee, for lack of a better term, put together last spring, and then when the Oversight Board meets, it will reaffirm those budget categories or could make changes to those budget categories.
I'm sorry. Reaffirm those what? MS. McCOLLOCH: Those budget categories that were part of the Consolidated Plan that was passed last spring. And then if there are revisions to that, we would amend the Consolidated Plan in the manner that we amend the Con Plan now, through public notice and so forth.
Will the deliberation on determining those expenditures to any degree be comparable 198 2/28/06 - WHOLE - BILL 060003, ETC. to the current OHCD process that has public forums where I think you guys have leading up to the finalization of the CDBG document? You have these public forums where people come in and testify as to the needs, in their estimation, for communities and projects and neighborhood preservation and the like. MS. McCOLLOCH: Yes.
Is there going to be a similar -- MS. McCOLLOCH: Well, last year as part of the Con Plan we had a budget established for the Housing Trust Fund. So that activity occurred as part of last year's Con Plan. And now as we move forward with this year's Con Plan, we will also have that same, if you will, preliminary budget allocation of the Housing Trust Fund. The Oversight Board has not yet met to put forth its preliminary recommendations for the year going forward. 199 2/28/06 - WHOLE - BILL 060003, ETC.
Last year was essentially the formulation of the Trust Fund. So that was a little different. I guess as we move ahead, I guess my question is, what type of public process will be in place so that this Oversight Board can receive or solicit ideas and recommendations from the general public as it relates to -- MS. McCOLLOCH: The assumption is --
-- how this money should be spent? MS. McCOLLOCH: I'm sorry. I didn't mean to interrupt you. The assumption was, it would be part of the Con Plan process. So those public hearings that we have surrounding the Con Plan could also take testimony on the Housing Trust Fund.
Is that what's going to happen or is that your recommendation? MS. McCOLLOCH: Yes. 200 2/28/06 - WHOLE - BILL 060003, ETC.
In terms of the authorization of the Consolidated Plan, the Housing Trust Fund recommendations will be a part of that? MS. McCOLLOCH: Yes. So the budget that gets presented to this Council, we expect to transmit something to this Council the first week of April, and then you all schedule a hearing subsequent to that. So the proposal for the Trust Fund will be part of that budget that gets transmitted to City Council as part of the proposed Consolidated Plan.
So the Trust Fund will essentially, the way I'm envisioning it based on your testimony, it will essentially be supplementing both in terms of dollars and in terms of process the existing plan? MS. McCOLLOCH: Yes.
The existing process. So there's not a separate process out there where people 201 2/28/06 - WHOLE - BILL 060003, ETC. can access the Housing Trust Fund dollars solely? MS. McCOLLOCH: To access the Housing Trust Fund dollars or to make recommendations on the budget? I just want to understand the question.
Say there's some non-profit who wants to build affordable housing and they're like $500,000 short and they're not a part of the OHCD, quote/unquote, process and they need to access $500,000 of Trust Fund dollars to do this development and they're not in the current Consolidated Plan because they had not applied for any Block Grant dollars or any other City dollars. How can they participate? MS. McCOLLOCH: Well, the budget that gets presented to this Council will simply give an amount. In the example that you gave, if there's an organization that is looking for some funding to support a rehabilitation project, the budget will simply say 202 2/28/06 - WHOLE - BILL 060003, ETC. "neighborhood-based housing production" as a category and it will list a number that the Trust Fund Oversight Board is recommending be allocated to that budget category. It will not say -- let's, for sake of argument, say that that number was $2 million. It will not say, the Housing Trust Fund has $2 million in it and $500,000 is going to ABC Corporation and $500,000 is going to this development or that development. It will simply list the budget that's being allocated for that category.
So that ABC development corporation has to go to essentially OHCD to access that money; there's no external process that allows you to go directly to the Housing Trust Fund? MS. McCOLLOCH: Right. There's the possibility that we would be putting out a request for proposals, if the Housing Trust Fund Oversight Board wants to do that. That would be an option. 203 2/28/06 - WHOLE - BILL 060003, ETC.
But that would go through OHCD? MS. McCOLLOCH: Correct.
And the contract would be with whom, or is that based on the reorganization how that ultimately will play out? MS. McCOLLOCH: The contract if ABC development corporation was going to get --
Or any development corporation. MS. McCOLLOCH: Yes; was going to get Housing Trust Fund monies?
Yes. Will that then be -- I mean, under the existing scenario, would that contract be with the Redevelopment Authority? MS. McCOLLOCH: Yes. Under the current structure, it would be through the Redevelopment Authority.
Okay. All right. I just wanted to get a little clarity on the Housing Trust Fund. 204 2/28/06 - WHOLE - BILL 060003, ETC. By the way, do you know how much we anticipate collecting this fiscal year? MS. McCOLLOCH: The current fiscal year, as of the end of January, we had collected almost $6 million. So we're hoping by the end of this fiscal year, we'll be at -- whatever the math would be. Ten. The expectation of the budget was that we would collect $10 million, if you will, of new funds, plus NTI funds were added at the beginning of the year to the Trust Fund of 1.5 million. So we put in our current year's Consolidated Plan 11.5 million for the Trust Fund, and we expect to hit that target.
Okay. One last line of questioning. Currently, does any of the housing agencies receive General Fund dollars? MS. McCOLLOCH: OHCD receives a small amount of General Funds dollars. OHCD receives approximately 1.4 million 205 2/28/06 - WHOLE - BILL 060003, ETC. in General Fund, a million dollars for greening activities and vacant land management and $400,000 in supporting Shelter Plus Care funds. So of our overall budget, the General Fund is a small amount, but, yes, we do get some General Fund money.
And that 1.4 figure is for administrative? MS. McCOLLOCH: No. It's for programs.
For programs? MS. McCOLLOCH: The $1 million is the greening program and the $400,000 --
So that's the total? MS. McCOLLOCH: Yes. The $400,000 is -- I'm sorry. I want to make sure I give you the correct answer. The 1.4 million, million is program dollars for greening, 400,000 is staff costs connected to Shelter Plus Care. 206 2/28/06 - WHOLE - BILL 060003, ETC.
All right. So we already have a process that allows OHCD to receive General Fund dollars. Has there been any thought given to providing additional General Fund dollars to OHCD for housing production, given the consistent level of decline on our federal contributions? MS. McCOLLOCH: There's not any suggestion in this operating budget.
I'm sorry? MS. McCOLLOCH: In this operating budget, there is not a suggestion of additional General Fund dollars as it's presented today.
I asked has any thought been given. I mean, the reason I ask you this question, I'm extremely concerned that given the likelihood that the reduction in Block Grant dollars will continue, at a minimum, at least through this Administration, through the Bush Administration, and the level of decline 207 2/28/06 - WHOLE - BILL 060003, ETC. might increase -- and most Councilmembers don't have any more NTI dollars. I know some Councilmembers still have some dollars stashed, but I'm on zero. Councilwoman Blackwell, I don't know where you are, but I'm on zero.
So given that fact -- and I believe that the need for affordable housing will continue because of the direction of some of our social programs are increasingly creating a permanent underclass, unfortunately. At some point, don't you think that it might be prudent for us to think about putting General Fund dollars into OHCD for housing production purposes? I mean, like this year, as an example, although that 142 or 160 million -- I don't know where we are. The numbers keep moving. I understand that pie is pretty much already sliced up, but in this particular year, we 208 2/28/06 - WHOLE - BILL 060003, ETC. received, what, about a $4, $5 million cut from -- MS. McCOLLOCH: $6 million cut in CDBG funds.
So we will obviously not be able to produce as many units as last year, and I'm wondering if at some point we don't make the decision that we set a number and say this is what we need every year for housing production and then we may have to start supplementing, assuming we have some levels of surplus, supplementing our housing budget so we can continue to do affordable housing. Because given what we have now, we have no more NTI dollars. The budget is being slashed on a daily basis, and three, four years out, if this continues, we won't be able to build any more affordable housing. MS. McCOLLOCH: Well, that's why we have the Housing Trust Fund.
But you can't expect that the Housing Trust 209 2/28/06 - WHOLE - BILL 060003, ETC. Fund -- I mean, if anything, I believe that number is going to decline, because I can't believe that the level of transfer fees and deed recordings are going to continue at the level that it is. I mean, at some point, the housing boom is going to, at a minimum, plateau and probably drop somewhat. So I don't foresee an increase in revenue associated with that. I mean, I'm just throwing it out there. At some point, there should be some thought that we may have to supplement some of our opportunities with General Fund dollars. Do you agree or not agree? I know you won't make that final decision. MS. McCOLLOCH: Right. I'm not in a position to allocate General Fund dollars, but --
I understand. That's our job. But I'm asking you as a 20-plus-year veteran of government. We all grew up together in 210 2/28/06 - WHOLE - BILL 060003, ETC. government, and I'm concerned about our ability to continue to do affordable housing. MS. McCOLLOCH: I share that concern. I share that concern.
So you think it might be prudent to look at the possibilities of doing that? MS. McCOLLOCH: I think General Fund dollars are certainly eligible to be spent on affordable housing activities and...
It's okay. It's okay, Deb. You can say it. MS. McCOLLOCH: I'm not the one that allocates General Fund.
I understand that, but I'm just asking in your opinion. I mean, in all due respect to a lot of people in government, as it relates to housing, some of the folks that we've grown up with, I mean, Call Deborah, she'll know. So I guess I'm asking you in your capacity as a person 211 2/28/06 - WHOLE - BILL 060003, ETC. that's been involved in this for a long time, do you think that might make some sense, understanding that you're not committed? MS. McCOLLOCH: I think it would make some sense, yes.
Thank you. Thank you, Ms. McColloch. Thank you, Madam Chair.
Thank you, Madam Chair. I'll continue with the line of questioning of Councilman Clarke, and I understand some of your reluctance to answer that question. My original question is geared towards Housing Trust Fund and why the funds would be funneled through OHCD. MS. McCOLLOCH: Why the funds would be funneled through OHCD?
Yes. My 212 2/28/06 - WHOLE - BILL 060003, ETC. understanding is, the Housing Trust Fund Committee will set priorities, may issue RFPs, but you made a statement that the funds might generally be funneled through OHCD. MS. McCOLLOCH: I meant in terms of in the City where they rest and how contracts would be let and so forth that go through OHCD.
That is actually my concern in the form of a question and I guess statement. Housing Trust funds have no CDBG allocation; is that correct? MS. McCOLLOCH: I'm sorry. Housing Trust?
There's no 19 CDBG money in the Housing Trust Fund? MS. McCOLLOCH: I'm sorry. No. 21 There is no CDBG funding in the Housing Trust Fund.
But by having Housing Trust funds administered by people paid by CDBG funds, does that 213 2/28/06 - WHOLE - BILL 060003, ETC. not then put those funds subject to CDBG requirements? MS. McCOLLOCH: In terms of how they get expended? No. It's a separate -- it is a --
I'm not sure that's correct. To the extent that there are CDBG personnel working -- MS. McCOLLOCH: Staff associated with it.
-- administering funds, does it or does it not possibly make them subject to CDBG requirements? MS. McCOLLOCH: Yes, it could.
Which is, I think, also the answer to Councilman Clarke's question about why we just can't necessarily put General Fund dollars in OHCD. MS. McCOLLOCH: The Housing Trust Fund as established includes a budget for administration. So the administration of the Housing Trust Fund 214 2/28/06 - WHOLE - BILL 060003, ETC. funds gets paid for with Housing Trust Fund funds.
So dollars are claimed, but General Fund dollars might not necessarily be claimed unless you put administrative dollars to administer it administratively? MS. McCOLLOCH: Yes. Yes.
Thank you, Madam Chair. I just wanted to go back. I heard the tail end of an answer and I wanted to make sure that I understood correctly with regard to the Housing Trust Fund, and you may have been responding to Councilman Clarke. Again, I don't recall what the question was, but I heard the tail end of an answer. 215 2/28/06 - WHOLE - BILL 060003, ETC. The Housing Trust Fund dollars, first, how much money are we talking about now? MS. McCOLLOCH: The current amount budgeted is 11.5 million. That's in the current fiscal year, which is --
What are you anticipating for FY07? MS. McCOLLOCH: million. 13
What's the 14 source of the funds? MS. McCOLLOCH: In the current year, it's 1.5 million of NTI funds and $10 million of Housing Trust funds generated through sales and recording deeds and so forth.
This is all of those we increased a bunch of fees? MS. McCOLLOCH: Yes. So that for each transaction --
So technically General Fund dollars. These 216 2/28/06 - WHOLE - BILL 060003, ETC. are dollars that would go to the General Fund, right? MS. McCOLLOCH: Yes. Yes.
So they're General Fund dollars. And so how does it then go to 14? MS. McCOLLOCH: Our expectation is because of the increase in the number of sales and deed recordings, that it will earn more next year.
What's the breakout on the 14? MS. McCOLLOCH: It's all generated by sales and real estate transactions.
So it's all General Fund dollars? MS. McCOLLOCH: Correct.
And on the expenditure side, how much of the 11.5 million in the FY06 budget has been spent? MS. McCOLLOCH: None has been 217 2/28/06 - WHOLE - BILL 060003, ETC. spent as of today.
Any particular reason? MS. McCOLLOCH: Because the Oversight Board was just appointed by the Mayor recently and the Oversight Board has not yet met.
And so to some extent, by the time all that happens, you'll basically have $25 million in the Housing Trust Fund? MS. McCOLLOCH: I would expect some would be spent between now and the end of the current fiscal year, but not the total amount.
And so the tail end of what I thought I heard was now the Oversight Board decides how the dollars get spent? MS. McCOLLOCH: The Oversight Board will make a recommendation that will be a part of the Consolidated Plan budget that comes before this Council.
So will 218 2/28/06 - WHOLE - BILL 060003, ETC. there be a listing of proposed expenditures from the Housing Trust Fund -- MS. McCOLLOCH: Yes.
-- in the -- MS. McCOLLOCH: In the Con Plan budget, there will be a column -- as there was last year, there will be one this coming year -- that will say at the top HTF, Housing Trust Fund, and then it will list in each budget category a proposed budget for that category, such as neighborhood-based rental production, new construction, homeownership, what-have-you, whatever those categories are.
And so the Housing Trust Fund Oversight Board makes a recommendation for how those -- and, of course, if the Consolidated Plan is approved, that's how it gets done? MS. McCOLLOCH: Correct.
Okay. And 219 2/28/06 - WHOLE - BILL 060003, ETC. so is there a role for, I guess, non-Housing Trust Fund Oversight Board members like City Council to participate in that process? MS. McCOLLOCH: It will be part of the Con Plan hearing that is presented to Council. So insofar as --
All right. Great. When does the preliminary plan come out? MS. McCOLLOCH: The preliminary plan will be released this week. It will be released on Thursday. And then we have a hearing on the preliminary plan scheduled for March 16th, and then we expect to transmit the proposed Consolidated Plan to Council. We had made an agreement with you, as a matter of fact, to transmit it by April 1st. April 1st this year is on a Saturday, so 220 2/28/06 - WHOLE - BILL 060003, ETC. I would expect to transmit it during the following week.
Okay. I think a lot of us will probably be here that day. MS. McCOLLOCH: On Saturday, April 1st?
April fool. Okay. I look forward to that. Thank you. Thank you, Madam Chair.
Thank you, Councilman. Are there any other questions for Housing and Community Development? (No response.)
Thank you. MR. McPHERSON: The next department is the Managing Director's Office.
Good afternoon. Welcome, Mr. Managing Director. Please identify yourself for 221 2/28/06 - WHOLE - BILL 060003, ETC. the record and begin your testimony. Thank you.
Good afternoon. My name is Pedro Ramos. I'm the Managing Director. Thank you for this opportunity to provide testimony regarding the Fiscal Year 2007 operating budget for the Office of the Managing Director. The total proposed budget is $17,183,132, of which $12,753,638 is in the General Fund and $4,429,494 is in the Grants Fund. 2 percent, from the Fiscal 2006 Grants Fund. The decrease in Grants Funds is a result of a change in the way that the federal government distributes homeland security funds. In the past, the federal government provided grants for emergency preparedness directly to municipalities. Now, the emergency preparedness funds are 222 2/28/06 - WHOLE - BILL 060003, ETC. distributed through states. The Commonwealth of Pennsylvania receives the funds and, in turn, purchases equipment for the region of which Philadelphia is a part. The proposed budget of each division within the Office of the Managing Director is listed in the appendix that has been submitted with this testimony. The mission of the Managing Director's Office is to ensure that City services and programs are delivered effectively and efficiently. MDO has traditionally accomplished this by providing oversight, support and assistance to the operating departments that it directly supervises. In the last few years, the Managing Director's Office has broadened its mission to assume responsibility for organizing, coordinating and supervising major interdepartmental programs and special events. We accomplish our mission by prioritizing and communicating 223 2/28/06 - WHOLE - BILL 060003, ETC. key administrative initiatives by monitoring and analyzing the departments' performances and progress and by serving as a catalyst to encourage cooperation and collaboration among City departments. Preparing for and coordinating the City's response to emergencies is a key MDO responsibility. The London transit bombings, Hurricane Katrina and Rita, and reports of an impending pandemic flu all highlight the importance of local government's role in preparing for and responding to a myriad of emergencies. In September 2005, Mayor John Street announced the formation of the Emergency Preparedness Review Committee to evaluate the City's existing emergency medical evacuation and business continuity plans, including conducting a thorough analysis of the potential catastrophic threats that the City faces, and recommending measures to deter as well as respond to those threats. 224 2/28/06 - WHOLE - BILL 060003, ETC. To ensure that the review is thorough, EPRC has a mix of City employees, including representatives from our lead emergency response agencies, the MDO Office of Emergency Management, Police, Fire, Health Department, and representatives from the public and private sectors, such as PEMA, FEMA, the Red Cross and area hospitals. City Council leadership selected two private citizens to serve of the committee. I co-chair the committee, along with Dr. Harvey Rubin, Director of the University of Pennsylvania's Institute for Strategic Threat Analysis and Response, ISTAR. In addition, a consulting firm with expertise in the field of emergency management and disaster preparedness supports the committee's work. EPRC's various subcommittees will examine continuity of government, emergency response, critical infrastructure, public communication and vulnerable special needs populations. 225 2/28/06 - WHOLE - BILL 060003, ETC. The EPRC expects to complete its report by the end of June. With about one month lead-time, the City was presented with the opportunity to add the international Live concert to its already jam-packed 8 Welcome America schedule. I am proud to report that the Managing Director's Office, virtually every City agency and others throughout City government, including this Council, came together to devise and execute a plan that provided for the comfort, health and safety of the nearly 1 million concert-goers and our citizens as well.
" We orchestrated remote parking and shuttles to move people to both the Live 8 concert on the Parkway and the Welcome America concert on Penns Landing. We hosted events at the libraries to raise awareness about problems in Africa. And thanks to our Streets Department, we left 226 2/28/06 - WHOLE - BILL 060003, ETC. no sign of the event the morning after. On Friday, September 2, 2005, Mayor John F. Street asked the City to prepare for the arrival of 1,000 families displaced by Hurricane Katrina. m. that same day, the City had identified a facility and developed a service plan. On Sunday, the facility was ready to welcome guests from the Gulf Coast. The initiative, which was known as Project Brotherly Love, served more than 1,400 individuals through the efforts of 27 on-site agencies and 600 volunteers. Participating agencies believe Project Brotherly Love to be a model for other relief efforts. Last fall, after over a year of failed labor contract negotiations, there was a public transit strike. The strike could have gridlocked the City and prevented thousands of City employees from getting to work and providing critical City services. Fortunately, under the leadership of the staff of the 227 2/28/06 - WHOLE - BILL 060003, ETC. MDO and our office, the City had planned for a strike. The plans included providing transportation information and assistance to municipal employees in the form of shuttles from remote parking sites, ride-sharing in private and City vehicles, and flexible work hours. The City also worked with the Bicycle Coalition of Greater Philadelphia to encourage bicycle ridership and with the Philadelphia Parking Authority to provide for additional on-street parking. As a result of our preparation, we did not see an increase in employee absenteeism, nor was there a decrease in the service we provided to citizens during the week-long strike. MDO plays a critical role in implementing and supporting public safety initiatives, such as Operation Safer Streets, the violence prevention and reduction program the Mayor announced earlier this month. Operation Safer Streets has four main components: 228 2/28/06 - WHOLE - BILL 060003, ETC. Focused policing, engaged communities involved in crime prevention, coordinated delivery of social services, and the reduction of the availability of handguns. MDO supports each of the components by evaluating data and intelligence with the Police Department, facilitating community engagement efforts through the agencies such as Town Watch Integrated Services, working on legislative efforts to promote stronger gun laws and working with the City's social service agencies to develop coordinated programs. The Adolescent Violence Reduction Partnership is an example of one such coordinated program. AVRP takes some of the best elements of the YVRP model, discussed below, and incorporates them into a new initiative to intervene with higher risk young people. In addition, this year, using Grant funds, MDO institutionalized the coordination of the Youth Violence 229 2/28/06 - WHOLE - BILL 060003, ETC. Reduction Partnership in the Office of the Managing Director. YVRP is a multi-agency cooperative initiative to reduce youth homicides in the City of Philadelphia. The core feature of YVRP is the voluntary cooperation and collaboration of many partners, including law enforcement, youth-serving governmental agencies, and a number of private agencies. The coordinated efforts of these agencies provide intensive support, supervision and services to youth in the YVRP police districts, the 12th, 19th, 24th, 25th and our planned expansion to the 22nd, who are identified as most at risk of killing or being killed. Since the Mayor signed legislation changing the City's process for procuring non-competitively bid services, the Managing Director's Office has led the effort to operationalize the myriad of aspects of the new requirements across all City departments.
On February 230 2/28/06 - WHOLE - BILL 060003, ETC. 1, 2006, we successfully launched eContract Philly, a new website that provides information on the new requirements, up-to-date postings of contract opportunities, contract awards, contract renewals, amendments and online applications for contract opportunities. The information available on the external website is powered by enhancements to the City's internal contracting application, which was modified to guarantee compliance with the procedural requirements. Over 200 City staff attended general information sessions and specialized training on the system changes required by the launch of eContract Philly. In late January 2006, brochures were mailed to over 5,000 existing contractors to introduce eContract Philly and our new website. In March, information sessions will be held for all interested vendors. We will continue to manage the implementation of 231 2/28/06 - WHOLE - BILL 060003, ETC. the new process, while modifying the application as we learn what does and doesn't work for staff, vendors and the public. The recent drastic increase of energy prices has required the City to find ways to limit the impact of these costs on the budget. Through the Municipal Energy Office, the City is seeking to reduce its utility bills by operating facilities more efficiently, purchasing energy at reduced prices and investing in energy-efficient equipment and improved building design. 1 million. 18 million in Fiscal '05. And a new energy-efficient chiller plant was installed at the One Parkway Building, saving $240,000 in 2005. The Managing Director's Office continues its support of the Neighborhood 232 2/28/06 - WHOLE - BILL 060003, ETC. Transformation Initiative programs that improve the quality of life in our neighborhoods through management of the NTI targeted demolition program, aggressive anti-graffiti efforts, code enforcement quality of life improvement programs, and scheduled vacant lot maintenance. Thank you, Chairwoman Blackwell, for this opportunity to present testimony. I'm happy to answer any questions you or other Councilmembers may have.
Thank you very much. I only want to raise two issues, and one is, we look forward to meeting with you -- I've said this to Rob Hess, and I repeat that we are happy to meet with you with regard to the safety initiative and how people enter the northeast corner of City Hall, especially those who are in need. I know we have to make arrangements for the juries coming 233 2/28/06 - WHOLE - BILL 060003, ETC. in for court activity, but we also look forward to working with you on how we deal with people who may have mental illness issues, who are homeless who don't have ID and who may not have the wherewithal to understand what we do and how we do it. So we certainly look forward. We'd just like to keep that in your mind so we don't have a problem somewhere along the way.
Yes, ma'am. Not only will we brief, but I'd like to assure you that one of the things that I've asked for that we do and is happening is, we want to -- the physical improvements to the security have all been underway for some time, as you know. There was a lot of information reported in the media about how that would impact operations and just the accessibility of City Hall, and I have asked a group of people from various departments to revisit our plans to make sure that we're 234 2/28/06 - WHOLE - BILL 060003, ETC. not putting up any unneeded or artificial obstacles to access to City Hall and that we do it -- whatever operations plan we end up with, that it's one that's flexible to different circumstances. There may be a different operations plan if there's a heightened level of concern for security compared to a day when there is a low level, when there aren't any concerns. One of the things that physically was already taken into account in the City Hall planning was, if you think about the Municipal Services Building that has a turnstyle, you'd look closely on the northeast corner, that's not the type of system we'll have there. It will actually be arms that retract in and out so that they are capable of just staying in an "in" position where they're folded into the sides without the turnstyle. So it gives us a lot of flexibility, and we are looking at what the right protocols would be. We don't 235 2/28/06 - WHOLE - BILL 060003, ETC. want to be any more invasive than is reasonable.
Absolutely. Thank you. Because certainly without the right system, it could hold up so many people and we could have more problems than we need, because so many of the people we try to serve on a daily basis don't have ID and, in fact, come to us for ID and have many other issues. My other question is, could you give us an overview of the strategic marketing initiative, how much the City has spent on it and what legislation, if any, we may be required to deal with in Fiscal '07?
That's an initiative that's been led out of the Chief of Staff's office by -- the point on that has been Sean McNeeley and Joyce Wilkerson's office. We'd be happy to pass on -- he's probably the best person to brief on the overall initiative. 236 2/28/06 - WHOLE - BILL 060003, ETC. I can tell you that there's been good work with the operating departments in making sure that this isn't something just plopped down onto the departments or forced on the departments. There's been very good discussion about how we do this to benefit the entire City and the component departments. But Sean is probably the better person to brief you on it.
All right. And in conjunction with that, would you also ask them to let us know when in Fiscal '07 that you expect to begin receiving revenues, so maybe they can give us a full report on that?
Good afternoon, Councilman. 237 2/28/06 - WHOLE - BILL 060003, ETC.
-- Mr. Managing Director. Just a couple items. Some are a follow-up. I know recently the Mayor made an announcement with regard to commercial corridors and curbs and sidewalks, and you and I have had -- or at least I've corresponded with you regarding that same issue, some old requests and more recent requests, but I've not received a response. Is there a definitive --
Well, Councilman, you brought to my attention by letter in the last -- (Cell phone ringing.)
That's a part of my new theme song. Whenever I ask a question --
I thought that was 238 2/28/06 - WHOLE - BILL 060003, ETC. an angel getting their wings. You did submit to my office two substantial packets, including past requests to which there had been no 6 reply, and I think that followed on the heels of another request that you had had and never received a reply. I think you got a written reply to the first and I've promised a written reply to the other two. And I don't have those with me today, but I do promise to -- and I think you dealt with me enough over the years to know that you may not like the answer, but I'll get you the answer. So I will correspond back to you with a researched answer.
Well, you are certainly right about that. In both of your government capacities, I've often not liked the answer, but you did get me an answer as both City Solicitor and now as Managing Director, but it's not your responsibility to keep me happy. But I do appreciate getting the response. 239 2/28/06 - WHOLE - BILL 060003, ETC. In light of the larger proposal about streetscape and curb and sidewalk revitalization, and I know that's for commercial corridors, is there any adjustment, softening, change possibly in position with regard to those same issues as they affect residential neighborhoods?
You're asking whether the proposed bond issue is accompanied by any new thinking and policy with respect to sidewalks and alleys?
Yes. I mean, separate and apart from the bond issue, just the issue in general. I mean, we continue to get these requests. I know you'll get me an answer. I'm not exactly sure what the answer will be at the moment, but if the bond issue has brought about possibly a new public policy in this particular area, my only question is, might it possibly extend to residential use as well?
I don't think 240 2/28/06 - WHOLE - BILL 060003, ETC. that -- well, the commercial corridors initiative that you're referring to will be driven by Eva Gladstein in the Mayor's Office. She and I have had a lot of informal discussions about how we can help implement. Our office would have a lot of the role in implementing of policy and operationalizing of policy. As far as any discussions that I've been a part of, I haven't been a part of any discussions in connection with this bond deal that take up this issue, but I'm not -- I don't think that that means that we've made any conscious policy choice either way. I think we just haven't talked about it yet.
Okay. And, again, just so we're clear, I'm not necessarily even suggesting that the bond proceeds might be used for solving a very serious residential problem.
Well, I'll 241 2/28/06 - WHOLE - BILL 060003, ETC. be glad to talk about the initiative when we get to that part of the process, but as you well know, we've accessed some dollars to help residents, for instance, with regard to retaining walls, very dangerous, very serious situations, and, of course, those were not proceeds from the proposed bond issue. I think mostly they've been NTI funds. Obviously NTI funds are running out, but nonetheless, we adjusted our policy to address a very serious situation that has been a serious situation for a long period of time. But the Administration did make an adjustment in policy with regard to that public infrastructure, and so this has been a part of an ongoing discussion for, at least with me, for about the last 15 years. So I'm going to continue to revisit that particular topic.
I guess I'll just kind of insert a footnote in there, at the risk of not getting to a major operation that we have on South Street 242 2/28/06 - WHOLE - BILL 060003, ETC. tonight --
-- but the reference to those as public infrastructure I think has sort of been at the hub of a lot of the policy debate about it, to the extent that what we're talking about in all instances are private properties.
I understand. So you're going to get me a response on the curb and sidewalk?
With no 18 particular locations at the moment in mind but just a general observation as you travel around the City, you get to many more places than I do, but it would appear that there may be, in some limited areas but growing, a possible return of a certain amount of graffiti in different parts of the City, as well as a general 243 2/28/06 - WHOLE - BILL 060003, ETC. lack of cleanliness, also known as litter. There was a great amount of discussion a bunch of years ago. There was a program. The acronym was CLIP. I can't remember what the L stood for, but I know it was --
Which operated, I think, officially in at least two districts. I know that the Chair had worked with the Administration to put something together, which may have been formal, informal, but was a West Philadelphia version of that program, primarily in the Third District. There was, I believe, a commitment made by your predecessor -- I know it's a term of art that you rather 244 2/28/06 - WHOLE - BILL 060003, ETC. enjoy -- that the CLIP program would expand City-wide. It never really happened. Has there been any further discussion given all of these other discussions about that program, how well it worked, what the measurements were, benchmarks, was it good, was it bad, did it do what we wanted it to do, and how we're going to deal with what appears to be a rise in graffiti and litter and general lack of regard for the many provisions of The Philadelphia Code?
Let me start with what you described as a commitment of my predecessor, which I'm not familiar with. I am familiar with the transcript of last year's hearings where the former Managing Director, I thought, and I may be recollecting incorrectly, but I believe where the Managing Director said at that point -- and it was involved in a pretty extensive exchange -- about the announced intention not to expand CLIP. I don't 245 2/28/06 - WHOLE - BILL 060003, ETC. think that that issue has been revisited since that exchange. With respect to observations --
Right, but at least it's the reversal that that discussion happened. I didn't know there was a perceived commitment. I only read one transcript, not two.
I understand. That's the great thing about positions, they can always be reversed.
As far as observations -- and I do get around all over the place often, maybe too often, at night instead of during the daytime, and I can't say --
I think you 246 2/28/06 - WHOLE - BILL 060003, ETC. generally know, because if it's a big enough fire, I would probably wake you up to tell you that. I haven't noticed a material change. I'll go back -- and I hadn't heard that concern in particular. I'll certainly take note of it and be alert for it. I had, as you know and other Councilmembers, I had a very strong immediate reaction to a graffiti marketing campaign launched by Sony PlayStation, which we, I think, may have been the City to squash that campaign the quickest, because we sort of launched everything we had at them.
And it's reflective, I think, of an attitude that continues in the Managing Director's Office and certainly the standards set by Clarena Tolson in the Streets Department. We're both somewhat obsessive compulsive 247 2/28/06 - WHOLE - BILL 060003, ETC. about things and --
I don't really want to get into a psychology situation.
Council is not shy about giving me locations, and I'd be happy also to take some locations of sites that are a particular concern and make sure that we're following up on them.
We kind of named and created the West Philadelphia Improvement Program, WIP, because we heard about the Community 248 2/28/06 - WHOLE - BILL 060003, ETC. Living Engagement Program, CLIP. However, much to my district's dismay, they think we have all of this whole City, and we don't. It's three-quarters or more volunteerism. We use Town Watch, committeemen, block captains, the drug groups, the whole cast of characters to try to create a program, and we use a lot of volunteers. And on Saturdays, we go out and do hamburgers and hot dogs and we give ourselves or beg, and it's more of that kind of a program than it really is a big City program. So I hope people from my district are not listening.
You've promoted it well, though. I give you credit for that.
I always say, Councilperson, that any district that has anything, my district will have it. So we try to come up with 249 2/28/06 - WHOLE - BILL 060003, ETC. it, whether it may not be to --
Two last items, and thank you for the extended time, Madam Chair.
Councilman Clarke is next, and after Councilman Clarke, Councilman Rizzo. Councilman Nutter, we're happy to give you additional time as long as your colleagues don't complain. However, when they complain, then we have to go by the rules.
I understand. I've been trying to get rid of that clock for a while, but they won't let me near it. The press release came out yesterday indicating Licenses and 250 2/28/06 - WHOLE - BILL 060003, ETC. Inspections Boards Administration announces new hours of operation. Are you familiar with that one? It seems to indicate that beginning March 1st, the Department of Licenses and Inspections Boards Administration Unit will change hours of operation. The new hours are 8:30 a.m. to 1:00 p.m. Requests for files, copies, as well as phone inquiries will also be handled during this time. Is that a cut in hours?
I'm not familiar with it, Councilman. I'm getting Commissioner Bob Solvibile.
Okay. Lastly, I want to commend you and I think I've recognized Ms. Kretsge before, but I think the entire Administration has done a tremendous job dealing with the eContracts issue from last year into this year, setting up the website, making sure that information is available, the trainings that you're planning to do. It was, I think, very important work that 251 2/28/06 - WHOLE - BILL 060003, ETC. this Council spent a lot of time working on, but it only gets done if there's cooperation from the Administration. We get to have a lot of ideas. Some are good, some are bad and some are somewhere in between, but you have the responsibility, of course, for implementation, and it was a massive undertaking and I think deserves a lot of praise and credit to get it up and running in a relatively short period of time. So I wanted to thank you for that and all the people who worked on that initiative.
Well, I want to thank you very much, Councilman, for that recognition, and if you would indulge me, Susan Kretsge is -- we won't call her up. We won't punish her by calling her up, but if Susan could stand up for a minute, because some people may not know Susan.
At the risk 252 2/28/06 - WHOLE - BILL 060003, ETC. of further embarrassing her, that was not like a legitimate stand-up, but you've been recognized in the past. I've never seen anyone stand and sit so quickly, but it's fine.
It's part of her effectiveness in this project. She gets things done quickly.
The Commissioner was out of the room, if you could repeat the question, Councilman.
Sure. Commissioner, I'm sorry. A press release apparently came in yesterday from the City rep's office. The title is Licenses and Inspections Boards Administration announces new hours of operation. Apparently, tomorrow the 253 2/28/06 - WHOLE - BILL 060003, ETC. unit is going to an 8:30 a.m. to 1:00 p.m. It's a change of hours for, I guess, access by the public. What were the hours? COMMISSIONER SOLVIBILE: The hours were from 9:00 to 4:30 -- or 4 o'clock. I'm sorry. And presently the administrator for that Board is out on long-term sick leave and --
Which boards are covered? COMMISSIONER SOLVIBILE: It would be the Board of License and Inspections Review, the Zoning Board of Adjustment, the Board of Building Standards, the three boards that L&I is involved with. And people who have to file appeals to boards go to that board. And we felt that it would not be a great inconvenience to the public, because it's the same people constantly coming. It's not like a lot of different citizens that would come at different times. It's the same people who continuously are filing 254 2/28/06 - WHOLE - BILL 060003, ETC. appeals for people, like to the Zoning Board and to the various boards, and we felt we could better serve the public by having the hours condensed, and that's why we put the announcement. We also sent a letter using our database and all our users to everybody. I sent a letter telling them of the proposed change.
Well, Commissioner, I'm certainly generally familiar with the notion at times that less is more, and I know you're obviously having a personnel situation, but given the critical nature of what these departments do, whether it's for citizens or, as you kind of refer to them, kind of the regulars, fewer hours of operation I don't necessarily know is serving the public's interest or serving it somehow better, because we're going to condense it. What, they're all just going to show up at the same time? COMMISSIONER SOLVIBILE: By 255 2/28/06 - WHOLE - BILL 060003, ETC. having the hours when people can bring the work to the staff allows them processing time. Just to come and give somebody a document doesn't get that document processed, and that's what we needed, to give the staff time to be able to process the work, because there's a lot of requests for variances because of the boom in Philadelphia right now, and it's just condensing the time better let's the staff deal with the processing of the paperwork. Every Zoning appeal requires a file to be created, the notices --
I understand. You're saying that because the office would normally be open those hours that it's negatively impacting processing time? COMMISSIONER SOLVIBILE: Well, by the public continually coming with the work that's there to be processed, they have to stop doing what they're doing to serve the person in front of them, where 256 2/28/06 - WHOLE - BILL 060003, ETC. as if we condensed the time that we want the public to come -- we will not refuse anybody because of an overload. We just need the time to process the work the public brings us.
Councilman, I can probably help with this a little bit. One commitment we can make is that this change, as well as the underlying concern, is one that hadn't come to my attention yet. I will look at it. Obviously service out of our service departments is what we're all about. I hear the Commissioner talking about using some of those work hours to improve the service, but we'll take a look at that. I mean, when you look at -- and we'll talk to organizations like the Building Industry Association and other partners that we have. We've been doing a number of things to improve service from the City 257 2/28/06 - WHOLE - BILL 060003, ETC. in the area of L&I, whether it's online permits, which you can now get for things like decks, to streamlining some of the inspector operations through the LICA project to -- one of the things I'd like to have us do before our administration is done is to change the look and flow of the concourse. So service is a topic that we discuss often and in-depth. This is not an issue we had heard about. If this is hurting service and there's a reasonable way around it, the Commissioner and I will figure it out. Either way, we'll report back to the Chair.
You're welcome. Councilman Clarke, thank you 258 2/28/06 - WHOLE - BILL 060003, ETC. for your patience.
First, I'd like to concur with Councilman Nutter in what I believe to be the increase in debris, not only in the streets but on the sidewalks and actually some levels of increase in graffiti. I actually recently had a meeting with Commissioner Tolson about some areas in my district where I've seen a substantial increase in debris. Of course, I'm going to blame it on her taking away my trash day, my Thursday trash collection in my district. I'm probably going to blame everything on that for the next couple of years.
You, the Mayor and I all lost. 259 2/28/06 - WHOLE - BILL 060003, ETC.
Absolutely. But it's clear that something needs to be done. The Commissioner actually indicated she's going to put together a proposal on the parts that I've identified, and hopefully we can come to some conclusion. Although we as a city are moving ahead and people are feeling good about the City, but you can't feel good about streets that are strewn with debris and house trash and all the other types of things. I guess that kind of, to some way, segues into my next question. Mr. Managing Director, how many departments in the City currently deal with public safety issues, code violations beyond the Police Department? Actually, I guess you could include the Police Department.
I can try to walk through them, and I may miss some. It's not a number I have off the top of my head, obviously. City code, there are 260 2/28/06 - WHOLE - BILL 060003, ETC. enforcement functions in Police, L&I, Health, Streets, Water Department, Fire Department. So more than half a dozen.
I'm assuming there are different levels of code enforcement that these various employees deal with. Some are like quality of life issues. As an example, I guess L&I does in terms of enforcing these stop-and-go's, the, quote/unquote, stop-and-go's that are in violation of various codes. I don't know. This might be in the Streets Department where you had people sweep to deal with debris on the sidewalks as we talked about earlier. Some people deal with grass too high. We actually have officers dealing with traffic, police officers.
Health inspectors, vector control, all types. As you said, all types. In fact, not to give any credit to the press, but the Daily News had done a pretty good insert --
You can 261 2/28/06 - WHOLE - BILL 060003, ETC. give credit to the press.
I don't remember when they did it, and I hope they do it again, where they had identified sort of -- it was a two-pager where they identified sort of problem areas and the right phone numbers to call. I mean, I'd like to see the day where we really have fewer phone numbers to call, but it's something I keep around my desk and something we're actually working on trying to get into something like that done in some other languages for some of the other non-English-speaking newspapers.
As we've been moving ahead on some consolidation of services -- you heard earlier. We were talking about OHCD. Has there ever been given any thought in terms of consolidating, I guess, employees in terms of doing code enforcement? I mean, as an example, and I always talk about this, we actually have police officers to 262 2/28/06 - WHOLE - BILL 060003, ETC. write trash tickets. I believe we had Streets Department members that write trash tickets, and we might have some other employees of the City that write violations for trash and debris. There seems to be this duplication of enforcement in these various departments. Have you ever given any thought of creating a category of employee or department who deals solely with code enforcement and quality of life issues and public safety issues?
I can't speak historically for whether it's been something that's been thought about before. We'd be happy to sort of -- it probably won't be too hard to do a sort of inventory of who does what. I do know that there is certainly at least local law, state law and collective bargaining issues that obviously are implicated, but I don't know in which way or the extent to which they would be implicated, but that would 263 2/28/06 - WHOLE - BILL 060003, ETC. be part of the analysis.
I will note, if I might, Councilman Clarke, that we get a lot of complaints about this Clean Sweep and people getting tickets because trash blows down the street or they go through trash and it belongs to somebody else. That's a big, big problem for us. We get a lot of complaints. So I certainly mention that as a problem with these trash tickets and this Clean Sweep program. And, also, we've been asking the Mayor for several years about a program with the Mural Arts. Mural Arts is one of the most important programs we have where we get rid of graffiti, we clean lots, we green them, we fence them, and we do a mural as well. I have been advocating for years for a comprehensive Mural Arts approach, because they are preventive, they're maintenance. They're many, many things. And if you could clean a lot, fence it, green it, do a 264 2/28/06 - WHOLE - BILL 060003, ETC. mural, get rid of graffiti, you do all those things in one fell swoop. And if we give Jane Golden, who is just one of the best stories our City has, if we give her the ability to do these things, if we fund her to do these things -- and she does them all, but she does them in pieces. But if we could also create a program and fund it to allow her to do these things, we could do it. And as we know, she deals with inmates, she deals with people from the community. She does all these things, and I certainly ask you to consider that as you deliberate on the budget.
You're welcome. I kind of lost my train of thought. No, not really.
You were talking about dirt. 265 2/28/06 - WHOLE - BILL 060003, ETC.
You were talking about consolidation in enforcement. We'll look at what --
We'll do a table of the different types of code enforcement that happens, who does it, and whether who does it is dictated by state law, local law or by collective bargaining, if that's something that would be helpful.
All right. I'll give you an example. Traffic control. I hate to always bring up other cities, but when you get to travel around. In New York and I know in Baltimore and a couple other municipalities, they have these designated officers -- I think they're called public safety officers -- that deal solely with traffic control, and it seems to work. 266 2/28/06 - WHOLE - BILL 060003, ETC. I've never understood why we needed to use police officers for traffic control, given the need to have police officers out there fighting crime. I never understood why we had police officers writing trash tickets. Actually, this is not the first time I'm bringing this up, but we got a new Managing Director now.
I'm just wondering, like why are we not looking at that?
Well, I mean, I haven't looked at this set of issues. I'd be happy to look at it in the context of this consolidation of enforcement. I can tell you that just from my own experience, other than at the Stadium District or big events or the initiatives that we have that don't -- the various don't-block-the-box-type of enforcements, that we don't have in our downtown area 267 2/28/06 - WHOLE - BILL 060003, ETC. the type of -- the number of -- we don't depend as much, perhaps because of good traffic engineering and all that, as much on uniformed officers sort are conducting traffic during rush hours the way you see it in big hours.
If you're talking a stadium, you're talking in the case of Phillies, you got 81 games, the Eagles you got eight games. I mean, the Sixers. I mean, we're talking about quite a few times during the course of the year where we have police officers out there directing traffic.
I mean, I've seen traffic police directing traffic and I've seen non-traffic police directing traffic in areas like the Stadium District, and I won't say that it's sort of which division you work for, but the amount of experience you have certainly shows, and you know that. That doesn't necessarily mean that that's experience as a sworn police officer, that you need a sworn 268 2/28/06 - WHOLE - BILL 060003, ETC. police officer.
No. I said the non-traffic. I mean, if you go down to like -- and I'll be happy to stand on a corner with you by the Stadium District during an event and see a corner where there's somebody experienced in managing traffic as opposed to somebody sort of pulled from a patrol managing traffic, and you'll see a fair amount, but I don't --
I agree with you, but my point is, does it have to be a police officer?
Does it have to be a sworn police officer that's got all that training and investment --
Or can it be anybody that has training? I mean, you don't need to be a police officer to have training in directing traffic.
Right. And I 269 2/28/06 - WHOLE - BILL 060003, ETC. suspect that it's not what the state law requires or what the local law requires. It's probably more of a labor issue for us.
Okay. Then what does it take to create a class of Civil Service employees? Does it require law? Does it require a collective bargaining agreement? Can the City go to the Civil Service Commission and say, We're going to create a class of Civil Service employee and it will be called a public safety officer and it will do the following things?
As a manager, I always like to say we have the managerial prerogative to manage how we want, but that's not necessarily right now informed by what our legal limitations are on our management rights. So I don't know, and I don't have a position on how our management -- our ability to do that as managers under the collective bargaining agreement. It's something we can ask the 270 2/28/06 - WHOLE - BILL 060003, ETC. Law Department about. I think it's a labor issue.
Your opinion actually won't even count because you're not currently the City Solicitor.
That's why we have a new City Solicitor. And he's probably listening, and he would hurt me if I ventured into giving legal opinions.
As far as what the process will be for creating a category of employee.
I suspect that what the Law Department would say is that the issue -- I don't know what the answer is, but the issue will be the labor contract with the FOP. That's the issue.
I don't want to pick on the FOP, but I'm just bringing that up because that's one that 271 2/28/06 - WHOLE - BILL 060003, ETC. I always see. I always see police officers out directing traffic. And when I go to New York, they have public safety officers directing traffic, and they do it quite well. I mean, you'll get a ticket in a heartbeat if you block that box. So they're very aggressive and they appear to be extremely trained. So I'm just wondering is there -- you kind of told me that you have to check with the Solicitor. I'd like to know whether or not we have the ability to create a category of officer without changing the Charter or getting a new law or doing whatever we need to do to possibly have these quality of life officers that can do all of the things that we currently have other employees doing, or maybe utilize those employees in a consolidated way to do some of these functions so we can free up particularly the police, because we're talking about possibly $10 million in overtime for police or adding additional police, and I don't know how 272 2/28/06 - WHOLE - BILL 060003, ETC. we could do that and not look at other opportunities of redeploying police to help us fight serious crime, which they are best prepared to do.
We'll certainly look at that. One thing I guess I would caution in terms of managing expectations is, I suspect that we don't have a whole lot of uniformed police officers spending a whole lot of unreimbursed time directing traffic.
So I'm not sure that there's even after we -- even if we could do it, how much is there, because it's just a service I think we probably just haven't provided in any extensive way for a while.
Thank you, Councilman. I mentioned myself the Mural 273 2/28/06 - WHOLE - BILL 060003, ETC. Arts program, Clean Sweep program, that maybe we can talk to the Streets Department when they come up. And the third issue I'd like to mention that Councilman made me think of was this don't-block-the-box. I think you mentioned it, Mr. Managing Director. That also can create a lot of problems. Sometimes they put two don't-block-the-box designations side by side. It could take a third of the block, and I don't know why. We're not contacted when they -- I don't know who does it. I guess it's the Streets Department, but for me, it creates a problem. We had one just recently on -- because the 56th and L Street just opened.
56th Street between Market and Chestnut, there's a daycare. Just Saturday she complained that they can't park. 274 2/28/06 - WHOLE - BILL 060003, ETC. Somebody put in a double don't-block-the-box on both sides of the street. So her parents can't unload her daycare folks. So I don't know why we have them. It's new. This don't-block-the-box is something new, and all of the sudden, they're every place. We don't know when they're coming, and we get a lot of complaints about them. We would at least like the ability to give input. And I don't even know why we have them. Everybody knows when you get your license, you can only park so far from the corner, from a fire hydrant, from a stop sign, all of those things, handicapped areas, and now we have something new that has really become burdensome.
We can get you kind of what the standards are and what the process is for where the don't-block-the-box signs are placed. We can kind of tell you when we do it and by 275 2/28/06 - WHOLE - BILL 060003, ETC. what process and make sure that we're not putting them in any place where they're not needed. I guess I would just say that there are plenty of places where they are needed. I have the opposite experience around 7:40 in the morning trying to get onto 15th Street from Arch.
Madam Chair, Managing Director, I think there's some confusion here. We're not talking about don't-block-the-box. We're talking about --
Yes. Don't-block-the-box signs just prevent gridlocking in the moving of vehicles through an intersection.
We're 276 2/28/06 - WHOLE - BILL 060003, ETC. talking about the parking signs that --
But they still say don't-block-the-box. They have signs up that still say don't-block-the-box. They have those signs up on street signs that have just recently in the past several months been installed.
They shouldn't, because don't-block-the-box concept is to prevent gridlock of moving vehicles in an intersection. We don't 277 2/28/06 - WHOLE - BILL 060003, ETC. have to go far to witness it at 15th and JFK.
And we also know where there's one at 56th between Chestnut and Market. So we'll check it out.
Okay. Thank you for the clarification. I'm talking about those X's that they put at curb sides and sometimes they put double ones, and they appear every place for some reason. I don't know why.
They tend to be around buses and driveways and things like that.
And then sometimes they put double, and who knows why. That is one of the issues where we ended up having people demonstrate around the Market Street Elevated project in my area. So when things just happen and people do them and we don't know why or we see no 278 2/28/06 - WHOLE - BILL 060003, ETC. information -- and a lot of times, as you know, SEPTA has done so many things wrong in my district. So I don't know. It's a problem when these things happen in conjunction with SEPTA, who already creates a problem, and then they tell us the City agreed, and I don't know where it comes from or for what purpose. So we can have that detailed discussion at another day, but I wanted to bring it forward since the issue was raised, although I thought it was something I don't --
We'll follow up. That is a Streets Department question. We'll bring it to them.
Thank you. There's an issue, Managing Director, that I'm going to ask you to help, because it involves coordination with various agencies, and it's an issue that I think 279 2/28/06 - WHOLE - BILL 060003, ETC. is important to the Administration and definitely important to me. We have many inmates at our facility that have been programmed for work release. And we all know what work release means, that they can actually leave the jail in the morning, go to work, and at the end of the day, come back. Well, I had pretty much an agreement -- because I spent a lot of time in meetings with Commissioner King, Fairmount Park -- for a source to seed the funding, and I thought that if these inmates are programmed -- and the union people even indicated that this would be a good development program, training program. Nobody knows better than you the labor that we need to try to get the park back in shape. We have dozens of inmates. The Fairmount Park Commission was willing. The person was going to donate the funding to pay these inmates 280 2/28/06 - WHOLE - BILL 060003, ETC. so when they are released, they leave the jail with some money. They also develop a skill that possibly they could be hired by the private sector. And for some reason, everyone says, Yeah, we love this concept, and nothing ever happens.
It's a company that would hire inmates on work release? Is that the idea?
Well, there are companies that do hire. In Montgomery County especially, there's a contractor, Mascaro, that his workforce is made up with inmates from Graterford that every day go to his facility and work and then come back to the jail at night. What I'm talking about here is a program that is very near and dear to me, and everyone I've talked to said, It's a shame that we have inmates that are programmed for work release and not able to find a job. They were going to set up a way to pay these inmates that 281 2/28/06 - WHOLE - BILL 060003, ETC. work that could work for Fairmount Park. My point is, we've got these folks. They need to learn a trade. They need to learn how to use various tools and equipment, and when I said employment opportunities, if certain companies knew that we had people coming from a program that knew how to use power equipment, that knew how to use a trencher, that could put new rails up for fences, that they would not have difficulty finding work, but this program just can't seem -- and I think with your guidance and the Commissioners and Fairmount Park and others, that they were to the point where they were willing to bring these people from the jail, put them under the supervision of a Fairmount Park representative and for even a period of time -- and I'm not speaking for the Commissioner -- to have some oversight by the prison system. Because I do spend a lot of time, go to events and go to that 282 2/28/06 - WHOLE - BILL 060003, ETC. facility regularly. It's troubling to me personally to see that we had a gentleman -- I mean, Kal Rudman was ready to put up $25,000 to seed that program, and it never happened, where we could put these inmates to work. And every time I see him, he says to me, Where are you with that program? And I said, Well, if you talk to people, it sounds like everybody is interested, but nothing ever happens. Also, Will Rojas, I believe his name is, also indicated that there was matching money at federal grants for a program like this, a training program. And it just doesn't fly, and I'd appreciate you helping to launch this, if it's possible.
Councilman, I will get together with the Prison Commissioner and the Director of Social Services and find out more about this program. A program that serves a different population but with which we have had 283 2/28/06 - WHOLE - BILL 060003, ETC. really extraordinary success has been Ready, Willing and Able, who worked in the parks and people -- we talk about being able to develop a brand and to develop a positive image and provide great service, Ready, Willing and Able in the park has been doing that type of thing. So we'd be interested in knowing the feasibility of --
Managing Director, what got my attention, when the prison executives went into the local union and said, This is what we'd like to do, and we described it as a program that wasn't just putting people out to work, putting them out there, training them because of possible opportunities that they would have with various vegetation management companies to be able to start in some cases their lives all over again. And so if you could help, it would be greatly appreciated. Sorry to take advantage of this forum.
That's what I'm 284 2/28/06 - WHOLE - BILL 060003, ETC. here for. And I also know Kal Rudman, who has been an extraordinary supporter of so many different things in the City, certainly the Police Department and lots of other initiatives, and a Central High alum that I'm probably going to see in the next couple of weeks.
And I leaned over the rail and said to Commissioner King, I hope the offer for the money is still there. Thank you, Managing Director.
Thank you very much. Yes. We like our Prison Commissioner, too. Are there any further questions? (No response.)
Then our Committee will stay in recess until 10:00 a.m. tomorrow, Wednesday, March the 1st. Thank you all. 285 2/28/06 - WHOLE - BILL 060003, ETC.
Thank you. (Committee of the Whole adjourned at 4:55 p.m.) - - - 286 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on February 28, 2006, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)