COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE OF THE WHOLE - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, December 4, 2007 10:30 a.m. - - - PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN CAROL ANN CAMPBELL COUNCILMAN DARRELL L. CLARKE COUNCILMAN FRANK DiCICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN WILLIAM GREENLEE COUNCILMAN JACK KELLY COUNCILMAN JAMES F. KENNEY COUNCILWOMAN DONNA REED MILLER COUNCILMAN BRIAN O'NEILL COUNCILMAN JUAN RAMOS COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN FRANK RIZZO COUNCILMAN DANIEL SAVAGE COUNCILWOMAN MARIAN B. TASCO BILL 070994, 070605, 070606, 070607, 070608, 070609, 070610, 070611, 070612, 070613, 070614, 070615, 070616, 070617, 070722, 070723, 070724, 070725, 070726, 070727, 070728, 070729, 070730, 070732, 070733, 070734, 070735, 070736, 071013, 071014, 071015, 071016, 071017, 071018, 071019, 071020, 071021, 071022, 071023, 071024, 071025, 071026, 071027, 071028, 071029 and 071030 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. This is a continued public hearing of the Committee of the Whole regarding Bill No. 070994. I would ask the City Solicitor to please approach the witness table, and if you will, sir, I would ask that you please explain the amendments that we just received.
Good morning, Madam Chair and members of City Council. I apologize for the late delivery. This has been a negotiation continuing until this morning. I'm Romulo L. Diaz, Jr., City Solicitor. We have attempted to distribute copies to all members. I've got three additional copies here if there's anyone who needs a copy. What we have done, Madam Chair, is to develop an amendment based upon the hearing conducted last Friday to have a legally binding Economic Opportunity Plan 3 12/4/07 - WHOLE - BILL 070994 prepared that you see before you. In addition to the Economic Opportunity Plan, which would constitute a new Exhibit F to the bill before you, we also have drafted a covenant that is binding on all of the parties, the Commonwealth, the Authority and the City. You see that in connection with the covenant on of the amendment that's been circulated, you'll see that at the bottom of the there is an Exhibit E. This is in connection with the Convention Center agreement. You'll recall that there are two agreements that were testified to last week. One is the Convention Center agreement, which is the transition document until defeasement of the bonds no later than June '08. And so that is an Exhibit E, would be the Economic Opportunity Plan to that document. On , you will see that there is a covenant and on the following page a reference to Exhibit F for the 4 12/4/07 - WHOLE - BILL 070994 operating agreement. This is the long-term operating agreement once the current bonds have been defeased. In a summary form, I think what you have before you is an Economic Opportunity Plan that looks like what City Council has previously required in connection with other development projects within the City. It provides for the expectation of a new pre-qualification document. One has already been let based upon the earlier lower mandatory requirements that were discussed last Friday. There is an expectation that there will be a new pre-qualification of contractors based upon the new higher aspirational goals, which are 35 percent for minority contractors, 15 percent for women contractors with regard to construction contracts. I believe there was testimony by Mr. Eisenstadt last Friday that with respect to the architectural and design 5 12/4/07 - WHOLE - BILL 070994 work, that the Authority had been successful in exceeding its targets, but certainly for all future work, these are the new aspirational goals that would be expected for contractors. Apprentices are provided for. I think they're covered in Pages and 9 11 of the document. There is a 10 requirement for OIC, among other groups, to be considered as part of this review, which I think was raised by Councilwoman Reynolds Brown. We have incorporated also at her request the inclusion of the African-American Chamber of Commerce and the Hispanic Chamber of Commerce in the Oversight Committee provisions. I believe, in summary then, that all of the issues that I heard raised last week have been addressed, hopefully satisfactorily to the members of Council. And the last point I would make is that in connection with the post construction, you will see that there are 6 12/4/07 - WHOLE - BILL 070994 permanent employment opportunities that are also covered for the first time as shown on . We understand that the additional workforce levels are not expected to be huge, but nonetheless, the same commitment in connection with participation by minorities and women and disabled will also apply to the permanent workforce that's contemplated by this development. So with that, Madam Chair, at an appropriate time, I would request that this be an amendment to the current bill 15 before you, 070994, and request suspension of the rules, as previously indicated by the Director of Commerce. Thank you.
Thank you. Thank you very much. The Chair recognizes Councilman Goode.
Thank you, Madam President. Just a few questions. I don't 7 12/4/07 - WHOLE - BILL 070994 know if Mr. Diaz wants to answer them or who else is appropriate. Just to start, for the record, the Convention Center expansion is a $700 million project. It's the largest public works project in the history of the Commonwealth. For the record again, what contract participation goals are set for disadvantaged businesses?
I'm going to ask, Councilman, Ms. Ahmeenah Young, who is with the Authority, to address that particular question.
Good morning. I'm Ahmeenah Young, Executive Vice-President and General Manager for the Pennsylvania Convention Center. The goals that have been set, Councilperson, there are aspirational goals of 35 percent minority and 15 percent female.
What's the contract participation goal for African-American-owned businesses? 8 12/4/07 - WHOLE - BILL 070994
In the current contract, as we talked last week, there was a disparity study done and those goals were percent and percent. 6
My question 7 was, what is the contract participation 8 goal for African-American-owned 9 businesses? If the aspirational goal is 10 35 percent for minority-owned businesses, 11 what is the aspirational goal for 12 African-American-owned businesses? 13
So is there an aspirational goal for African-American-owned businesses?
No, there's not an aspirational goal for 9 12/4/07 - WHOLE - BILL 070994 African-American-owned businesses. There's a minority goal of 35 percent.
Considering that African-Americans constitute three-quarters of the minority population in Philadelphia and own over half of the minority businesses, don't you think it's appropriate there might be a specific African-American business goal as well?
I think it is appropriate to set a goal for minority businesses, sir, and I think that goal is 35 percent.
And you don't think it's appropriate to set a separate African-American goal when we know that -- and I've provided you with census data and left census data on the table as well. We know that 75 percent of minority residents are African-Americans and we know that over 50 percent of minority-owned businesses are owned by African-Americans. So should we break out part of that 35 10 12/4/07 - WHOLE - BILL 070994 percent?
Councilman, if I could respond, I'm not aware that any program of this type has set such subsidiary goals within the minority community, both for policy reasons, which would suggest that there needs to be competition among the minorities who are eligible --
Mr. Diaz, I'm going to stop you right now. The reason I'm going to stop --
Actually, you can't. Mr. Diaz, actually, the City of Philadelphia has broken out those goals, and you should know that. The City of Philadelphia actually has separate goals among minority businesses. Did you not know that?
What I'm suggesting is that I'm not aware of it and, in fact, what we have done here because of the 11 12/4/07 - WHOLE - BILL 070994 sensitivity associated with the Supreme Court rulings and the strict scrutiny applicable to these programs, we thought it was appropriate to have a minority business enterprise participation goal. There are three certifying agencies that the certified contractors can be drawn from, and if I recall correctly, one of the issues that was raised by several Councilmembers last Friday was the concern that we not be restricted geographically to whatever the minority participation is within Philadelphia or the region. So we've provided for a situation where, through the pre-qualification approach, you might be able to have contractors, prime and subcontractors, come from outside the state, and so long as there is a reciprocal certification in the home state of that contractor, MBEC, for example, has a reciprocity arrangement for certification that this Council has been previously supportive of. 12 12/4/07 - WHOLE - BILL 070994
Mr. Diaz, these are the City's goals right here. There's an MBE goal, there's a WBE goal, there's a DSBE goal, there is a DBE goal for African-Americans, there's a DBE goal for Hispanic-Americans, there's a DBE goal for Asian-Americans, there's a DBE goal for native Americans, there's a DBE goal for DBEs operating within the City of Philadelphia, and those are the City goals and that's as a result of a Charter change over a year ago.
The DBE goal -- I'm going to ask Michelle Flamer from the Law Department to join me, but the DBE, as a disadvantaged business enterprise, which is a federal concept, it is not one that is used by MBEC for these contracts.
MBEC developed these goals. Mr. Diaz? Mr. Diaz, MBEC developed these goals.
What I'd like to do, if I may, is ask Michelle Flamer to address the issue of DBE and the 13 12/4/07 - WHOLE - BILL 070994 allocation within the DBE community of specific numerical goals for African-Americans and other minority groups. I just said it's a federal concept, so if you could explain that, I'd appreciate it.
Michelle Flamer, City of Philadelphia's Law Department, Senior Attorney. The DBE, the reference to disadvantaged business enterprise, refers to the Department of Transportation program. In that directory, which is published through the Pennsylvania Unified Certification program, there is a breakout for African-Americans, businesses owned by Hispanic businesses, female and various subgroups within minority and by gender. That's actually in the Pennsylvania Unified Certification 14 12/4/07 - WHOLE - BILL 070994 program directory. Similarly in the MBEC directory is certified minorities, women and disabled businesses. The directory also contains a breakout in terms of whether or not they're African-African, whether or not they're owned by Latino businesses and so forth. So that information is collected by the certifying agency. So we would know, for example, if someone presents as a minority-owned business, we would know whether or not that was an African-American business or some other minority classification.
Is it a goal or reporting of the facts after the contracts have been awarded.
No. I'm talking about the DBE African-American percentage. 15 12/4/07 - WHOLE - BILL 070994
You can't create the law. If the law says that you're allowed to break out the goals, you're allowed to break out the goals.
That's true. We have aspirational goals for different classifications, different minority classifications, but the definition of "minority business" includes those goals or those aspirations for various ethnic minorities depending upon their availability and also their use in the previous fiscal year.
So this Economic Opportunity Plan could in fact break out those goals within the classification of MBE to essentially have goals for African-American-owned businesses, particularly considering the fact that particularly in Philadelphia over 75 percent of the minority population is African-American and over half of the minority businesses are owned by African-Americans. So it is 16 12/4/07 - WHOLE - BILL 070994 particularly legitimate, legal and credible to break out a goal for African-Americans.
Yeah. There could definitely be a breakout. In fact, if you look at the City's participation report for last year on the minority companies who bid as prime contractors; for example, on construction contracts, the majority of those prime contracts were not held by African-American firms, but they were held by other minority groups.
Thank you. Ms. Young, what percentage of Philadelphia businesses are owned by African-Americans?
And what percentage of Philadelphia businesses are owned by minorities?
I'm sorry. 17 12/4/07 - WHOLE - BILL 070994 I said what percentage of Philadelphia businesses are owned by minorities?
Just a second. 2.8 percent in Pennsylvania and 15.8 percent in Philadelphia.
That's actually not the question I was asking. I did provide the cheat sheet, but I'm not following it totally. In Philadelphia, 15.8 percent of the businesses are owned by African-Americans.
9.5 percent of businesses are owned by Asians, 4.8 percent of businesses are owned by Hispanic-owned firms, which actually constitutes over 30 percent of the businesses in the City of Philadelphia. But in the state of Pennsylvania only 2.8 percent of firms are owned by African-Americans, only 2.6 percent are owned by Asian-owned firms and only 1.3 percent are owned by Latinos, hence why 18 12/4/07 - WHOLE - BILL 070994 we want to use Philadelphia numbers rather than Pennsylvania numbers, as I raised in the last hearing.
Yes. And that's what we intend to do, and as you raised just in this previous conversation, that we are certainly willing to break out the African-American-owned businesses and have that as a percentage as well.
Okay. Just a couple more questions since we're moving along. Did anyone actually read the City's disparity study?
Did anybody actually read the City's disparity study? I know the state did its own disparity study.
Our disparity study shows particular 19 12/4/07 - WHOLE - BILL 070994 underutilization of African-American male-owned companies in public works contracting, only 0.3 utilization, 1.0 equaling full utilization. Therefore, only 30 percent of available companies are being utilized. Are you familiar with that statistic?
The question is, were you familiar with the fact that our disparity study says that African-American male-owned companies in public works contracting are being particularly underutilized?
They only have a 0.3 percent utilization, 1.0 equalling full utilization. Therefore, only 30 percent of available companies that are owned by African-American males are being utilized for public works contracting. Were you aware of that?
Yes, I'm aware of 20 12/4/07 - WHOLE - BILL 070994 it. In fact, as I stated previously, there were no awards of prime construction contracts to African-American-owned businesses in the last fiscal year.
Does the state's disparity study show the same findings?
I don't have the Mason Tillman study in front of me. I don't believe it's a valid comparison necessarily because of the geographical differences. I mean, I believe the state Mason Tillman study was a five-region study and Philadelphia is only part of that, and our goals in Philadelphia are usually higher because we have a greater number of certified businesses.
We're actually not talking about goals right now. What we're talking about is a utilization study, and whether the numbers are the same in Philadelphia, within the region or on the state level, 21 12/4/07 - WHOLE - BILL 070994 I'm asking whether your disparity study showed a particular underutilization of African-American male-owned companies in public works contracting, because that's what our study shows.
I'm not as familiar with the Department of General Services study as I am the City's study. I have looked at it and I've read it and I believe it did find significant disparities, but I couldn't speak to it, because I don't have it in front of me.
Is there anything within the state's disparity study that suggests how we address that type of underutilization?
And what does it say about addressing the underutilization of African-American male-owned companies in public works contracting?
Well, it talked 22 12/4/07 - WHOLE - BILL 070994 about that there needed to be outreach in particular, that there were no firms that were grown over a period of time that they were aware of, and about the lack of opportunities for these prime contractors.
And do you believe that has any impact on black male unemployment?
Well, I think the -- I mean, this is my editorializing it at this point, because, of course, I am not an expert in the area, but certainly if there were more prime contractors who were African-American male, by definition, there certainly would be more opportunities given to other subcontractors who were males and there would be more opportunities for hiring African-American males. So I think it does have a relationship. 23 12/4/07 - WHOLE - BILL 070994
Okay. Our disparity study also tracked DBE utilization availability in 2006 versus 1998 to 2003. DBE availability and utilization decreased in public works contracting but increased in contracting related to both personal and professional services, as well as services, supplies and equipment. Did your disparity study have similar findings?
Are there separate contracting goals for these three areas, public works, personal and professional services, and services, supplies and equipment?
The contracting goals that was certainly suggested to us at our last hearing we are going to incorporate now, but they had not been prior to this.
But the question is, are you going to break them 24 12/4/07 - WHOLE - BILL 070994 out by contract category in terms of public works, personal and professional services, and service, supply and equipment in view of the fact that there's varying capacity? The capacity of disadvantaged businesses has decreased in the area of public works, but has increased in the area of personal and professional services, as well as services, supplies and equipment. And so in order to maximize economic opportunity, are you going to break out separate goals in order to reach the overall goal?
Yes, absolutely. In fact, that gives us the greatest opportunity to make those goals.
If I could respond, Ahmeenah. Councilman, on , you'll see that the categorizations of the aspirational goals is different. There's 25 12/4/07 - WHOLE - BILL 070994 no distinction that's made between the design and the professional services contracts, many of which have already been let and the work has been done from the sealed bid, the public works type contracts. What we've attempted --
What we've attempted to do as part of this effort to cast the net more widely is to utilize the concept of responsibility and the commitment to these aspirational goals as part of that eligibility.
My question is whether there are separate goals for different contract categories. Is there an actual DBE goal for public works? Is there a DBE goal for personal and professional services? Is there a DBE goal for services, supply and equipment? Is it broken down that way in terms of separate areas of contracting?
And I think as I had 12/4/07 - WHOLE - BILL 070994 testified, no, there is not.
Do you believe we can increase DBE participation by having separate targets for these categories?
Because I think the most difficult area in connection with applying these aspirational goals is in connection with the sealed bid or the public works contracts, as you mentioned. What we have attempted to do -- and I think we had testimony to this effect from Mr. Eisenstadt last Friday that the state has also done a similar process at the Authority -- is that we've attempted to use the commitment to these aspirational goals as a responsibility issue. Before you even get to the issue of comparing price, we want to know whether somebody is committed to this kind of participation effort. In other words, if we went 27 12/4/07 - WHOLE - BILL 070994 strictly by the state law and the city law on public works contracts and you did not build in this up-front process that we have attempted to build in, you would make a decision only on the basis of price, and at the lowest bidder, you would not look at the color or the gender of the lowest bidder. What we've attempted to do is up front say that we think this is such an important issue, it goes to the essence of responsibility of a bidder and, therefore, we want to know whether people are committed to these aspirational goals first.
Mr. Diaz, the question I'm asking is, if you're trying to reach an overall contracting goal of 35 percent for disadvantaged businesses and you know that capacity may be limited in one area but expanding in other areas, is there an attempt to look at increasing percentage goals in certain areas over others? In other words, you're not seeking to do 35 percent 28 12/4/07 - WHOLE - BILL 070994 across the board. So in order to achieve 35 percent, if you're trying to achieve 35 percent, doesn't it mean that you have to look at the different areas, public works, personal and professional services, and service, supplies and equipment and those type of things, separately in terms of goal-setting in order to achieve the overall goal?
I think the answer is that this commitment reflected in this EOP is the 35 percent overall aspirational goal for minority participation. Recognizing that it is more difficult in the public works contract area to achieve, we would try to build in a process by which we could do it, but I think the expectation is that we're going to have success in all areas to the extent those contracts have not been let. Many of these professional services contracts with regard to architecture and design have already been let. That work has been done. But the 29 12/4/07 - WHOLE - BILL 070994 35 percent is applicable to all categories.
Ms. Young, can we increase DBE participation by recruiting DBE general contractors from elsewhere if they're available?
So if we actually go out to try to find DBE general contractors, whether they're available locally or within the state, probably not, but even nationally, can we actually increase overall DBE participation by recruiting any DBE general contractors that exist out there?
Yes, and that's what the plan calls for, that we would go out beyond the borders of our Commonwealth to find certified firms that could do work here on this project to 30 12/4/07 - WHOLE - BILL 070994 increase the numbers.
One last question for you, Ms. Young, and then I have a question again for Mr. Diaz. When do you envision local DBE contractors receiving general contract work in public works contracts? When is a local firm ever going to get a general contract?
When do you envision any local DBE firm ever receiving a general contract for public works contracting?
I think are you suggesting, Councilman, that you want to know when a local minority or woman-owned or disabled-owned business might be a prime contractor?
What we are hoping is that through this process of casting the net widely, allowing the 31 12/4/07 - WHOLE - BILL 070994 certification from any post state to be reciprocally accepted by the three authorities.
The question was local firm. When is a local firm going to receive a prime contract? Five years? Ten years? Fifteen years?
Right. I have no 12 idea. I have no way to be able to determine when in the future we'll be able to award a prime contractor. We wish it was sooner than later.
Well, wouldn't bringing in an African-American prime contractor from outside address that issue in terms of capacity building of local contractors?
That's what I thought, Councilman, was the guidance that we heard last Friday and that's why we built into this EOP an opportunity to bring out-of-town, out-of-state 32 12/4/07 - WHOLE - BILL 070994 contractors who are minority so that they could help build local capacity, and because of the time frame associated with the construction activities, we've provided for acceptance of reciprocal certification to do that.
But if you don't use a prime contractor on the largest public works project in the history of the Commonwealth, if you don't use one on this project -- you already know the other prime contractors have not and will not build the capacity of local minority contractors to ever receive a prime contract. Is that not true? It got quiet in here.
I understand -- I don't know if that's true, but I understand that there is a desire to build local capacity.
Do you understand there's never been a prime contractor that's been African-American or minority, right, on a public works 33 12/4/07 - WHOLE - BILL 070994 contract?
No, that's not true. No. Well, that's not true for the City of Philadelphia. We have had prime awards to minority contractors or African-American.
Yeah, on public works. Very, very few, and there were none in the last fiscal year, that is true.
I'm sure I could send that to you. I would have to look back in the archives, but there have been awards -- I'm being honest when I tell 34 12/4/07 - WHOLE - BILL 070994 you there were no awards in the last fiscal year. I can look in our records.
You get my point. If there's not local capacity and if there is more than a perception but reality that prime contractors are never trying to build up local subcontractors who receive prime contract work, then the only way we're ever going to achieve it is if we bring in people in other places that are not as backwards, where African-Americans actually receive prime contracts on major construction projects and they are allowed to come in and build the capacity of local subcontractors so that they can get to the point where they receive prime contracts. And if you don't do it on this, the largest public works contract in the Commonwealth of Pennsylvania, then you're still full of crap.
Well, if there's a question there, the answer would be, Councilman, that's what we've attempted 35 12/4/07 - WHOLE - BILL 070994 to build into this EOP, because the earlier version that you saw did not contemplate a reissuance of the pre-qualification, did not contemplate acceptance of reciprocal certifications from outside jurisdictions, and what we are attempting to do is to allow for that possibility of a non-local minority contractor to come in as a prime.
Mr. Diaz, let me ask you a question that you can answer. Is "aspirational goals" a legal term?
I believe so. I have used it in a legal context and I think the courts probably have accepted that term.
From a legal perspective, Councilman, we have to characterize them as aspirational, otherwise they are deemed a quota or a sure standard, and it's something that we are legally prohibited from doing under the Crossin case and its progeny. 36 12/4/07 - WHOLE - BILL 070994
The colloquy that I had with Councilman Clarke last Friday I think is an example. We would issue the pre-qualification document. We would include in it 35 percent minority participation, percent women 10 participation as an aspirational goal. 11 We would want to see whether the 12 contractors who want to bid and not yet 13 eligible to bid, we want to know about 14 their eligibility or do they agree with 15 that, will they accept that.
And, lastly, we're going to break out an African-American goal, aren't we?
We're going to break out an African-American goal within the 35 percent, aren't we?
I think what I heard is that Ms. Young said the Authority would be prepared to do that. 37 12/4/07 - WHOLE - BILL 070994
Thank you. The Chair recognizes Councilwoman Brown.
Thank you, Madam President. Good morning. Let me first thank you for honoring the request to make sure that it was in writing or is in writing that both the Hispanic Chamber of Commerce and the African-American Chamber of Commerce is in the text of the amendment, and the same for Philadelphia OIC. With the other agencies that you mention on , will these organizations have to bid for the opportunity to provide training to the Convention Center or have you thought through how all of these opportunities get a fair shake at training?
We're hoping that 38 12/4/07 - WHOLE - BILL 070994 we don't have to go through a bid process, Councilwoman. What we'd like to do is to reach out to them, to use them in a consultative role, as a referral funnel that we can go to and do it on an equal basis. I mean, we don't want to just -- as you're stating, we don't want to just narrowly use one, but we want to use all of them.
Last week, Ms. Young, you responded to Councilman DiCicco's question regarding the continued interest in the lack of people of color and women in the building trade stage of any building that takes place in the City. On of your testimony, you talk about the apprentice piece and you actually walked us through still the challenges from going from apprentice to journeyman. Does this new language address the question raised by Councilman Frank DiCicco last Friday? The top paragraph on . 39 12/4/07 - WHOLE - BILL 070994 I guess what I'm looking for and what I don't see -- and correct me if I'm wrong, because this is legal language -- does the Convention Center have teeth to hold contractors accountable for ensuring that those who come in as apprentices actually do find their way in the pipeline to become journeymen?
That is not in there. What we are hoping is that we are setting up a process and a precedent, that we would be able to go to the various programs that currently have apprenticeship and, as Councilwoman Tasco so aptly put it, sit by the phone waiting for a phone call so they can actually have a place where they are working, and what the Convention Center is planning to do is to cause that to occur, that we have the project and we are putting pressure in terms of our documents for our construction that in this process that all the contractors, contractors who 40 12/4/07 - WHOLE - BILL 070994 are working on this site, that they have the apprentices that come through our referral program, and these apprentices are then full-fledged apprentices. So that they're not the Authority's apprentices, but they are apprentices in the full sense of the word on that job site. So we're providing the job site and we're providing the sponsorship by the contractors who are going to work on the site.
Okay. I think I followed that. So how do they move to journeymen then and how does the Convention Center exercise its teeth to ensure that those apprentices make the leap?
What we are doing, Councilperson, is getting the apprenticeship certified, because, of course, we can't make those decisions that the unions ultimately make.
The union -- as you well know, apprentices could be on the site and the union can decide that that apprentice would go to another site. So what we are attempting to do in this program is provide two things, a construction site and sponsorship by the contractors who are on the site.
And those two steps are unprecedented compared to other public works projects?
If I could just add one more thing. There's a new concept in here of a pre-apprentice, a new apprentice. In other words, in addition to assuring a certain number of hours are going to be available for apprentices so that they can grow to the journeyman level, you also are bringing in new folks who can be certified and are -- and at least 50 percent of the hours that are to be given to apprentices on the job are going to be new people who have never 42 12/4/07 - WHOLE - BILL 070994 been in an apprenticeship program at all.
All right. Thank you. Related to the Convention Center but unrelated to this amendment, for the record, what is the formula for the selection of Convention Center Board members? How does one end up being --
Albert Mezzaroba, President and CEO of the Convention Center Authority. I have to apologize, Councilwoman. I didn't hear the question. Could you please repeat it?
Not a problem at all. Unrelated to this amendment but very much related to the Convention Center, how does one ultimately win the prize to be a Convention Center Board member? What's the formula? What's the process? 43 12/4/07 - WHOLE - BILL 070994
We're governmental appointees. City Council gets two appointees. One is the District Councilperson where the Convention Center resides, which is Frank DiCicco. Then the Minority Leader makes an appointment, and that would be Brian O'Neill. The four counties, surrounding counties, get an appointment. Each caucus in Harrisburg gets an appointment. Then the Governor gets two appointments. Those 13 elect an outside Chair. And the Mayor 14 gets two appointments. So that constitutes 14 members, and the 14 members then elect an outside Chair.
I see. Are there any women currently on the Board at the Convention Center?
Different question, again related to the Convention Center. Is there or have there been any discussions around expectations with what are now known as sustainable strategies 44 12/4/07 - WHOLE - BILL 070994 in the design and construction of the Center?
Anything in the language or the text of the bill 7 that speaks to LEED standards?
No, and part of that was, we looked at LEEDs early on, and as you know, LEEDs requires usually a higher capital investment and typically over time, there's a formula where you -- there's an analysis where it's typically cheaper to operate, but there's a larger capital investment. Based on the fact that we've probably been busting the budget for the last two years we've been designing, there are no real LEEDs that we have incorporated at this point.
So is that a missed opportunity? Is it too late to revisit that new emerging standard for new construction?
If we find something, we'd be glad to institute it, 45 12/4/07 - WHOLE - BILL 070994 but to say that we would be a LEED-certified building, we've missed that opportunity, that's correct.
Okay. Let me just double-check. Thank you, Madam President. That's it.
You're welcome. The Chair recognizes Councilwoman Tasco.
Thank you, Madam President. I'd like to go back to the apprenticeship program. Apprentices work for various labor unions. You have the various trades. And so how do you sort of like coalesce the two, your program with the building trades apprenticeship program? Because I don't know technically how they connect. Do you have, I guess, a cooperation of the building trades in your program or were you getting pushed back from that? 46 12/4/07 - WHOLE - BILL 070994
We are meeting with the trades. In fact, yesterday we met with Palm (ph), who is their representative, and there is an exchange that's going on, and, as you know, Councilwoman, it is not easy. The trades have not been asked to do what we are presenting as a program in a while. Unfortunately, we don't have an ongoing construction program. So we see this as an important opportunity to take advantage, where we can, to include more minorities and women on these job sites. There is a ratio between the number of journeymen and apprentices for each trade on the job site, and we are using those ratios, as well as the overall number of hours that the trades union will have on a site like that. So the CM makes a projection about how many workers, and then they are able to look at, from that amount of workers, how many hours, and then each trade has a ratio between journeymen and apprentices on a 47 12/4/07 - WHOLE - BILL 070994 site, how many will be there, and what we've asked for is 50 percent of those hours, of the apprentices that are going to be on that work site.
We have an Oversight Committee that is going to review not only our contracting opportunities but our work site workforce. And if because through the process a contractor has to sponsor -- and we've put that in the documents. We're going to treat it in the same way in terms of enforcement and penalties that we would if a subcontractor or a contractor was out of compliance. So if someone came in and said that they were going to have percent 21 minority participation, this Oversight 22 Committee sees it and if they don't do 23 that, then there is hearing and penalties 24 and it's described in it. We want to do 25 the same process for anyone who is out of 48 12/4/07 - WHOLE - BILL 070994 compliance in those hours on the job.
So really the person responsible for the compliance with this program is really the contractor?
Well, yes, the contractor, because ultimately we can hold someone's paycheck, and that is the ultimate enforcement. But we have ongoing monitoring through certified payrolls. So everyone has to have their hours on that, and we review these payrolls.
And the payrolls will identify the categories of the workers, which is how the enforcement or compliance is handled, Councilwoman.
And so your goal is to recruit and include those individuals who have not had an opportunity to work on construction sites but may have the skill and wherewithal to do that and not necessarily those people who are already in the apprenticeship 49 12/4/07 - WHOLE - BILL 070994 program?
So your goal is to get new people and not necessarily people already in apprenticeships? You know, we got a lot of apprenticeship programs.
Every time we do a program, there's an apprenticeship program, but we never see those people go to work. They stay in the apprenticeship program forever.
Until the project is over, then they go to the next apprenticeship program to get on the project. So it's a revolving door for people, so they never get to the journeyman level or ever get into the 50 12/4/07 - WHOLE - BILL 070994 union, and at the end of the day, my concern is how many of them really make it.
In fact, the emphasis is on new, and these are people who have not been on a site, been in programs before. So we're getting those people there.
Okay. But your goal here -- suppose you can't reach the goal that you want with the new people. Will you take apprentices that already may be apprentices in a trade union apprenticeship program to fill the gap if they meet the minority quota, minority goal?
I understand. We are working with about six or eight programs that have apprentices in them that have trained them. We're not going to create yet another apprenticeship 51 12/4/07 - WHOLE - BILL 070994 program, as you just so eloquently spoke to. We're going to use those places that have already trained. But we are not in the apprenticeship training business.
Now, based on your experience -- and you've been in this business a long time -- do you see this really working?
I do. This is the first time I have felt really enthusiastic about this, and if we get the cooperation from the areas that we do, I think it's going to be unprecedented. We should be able to do this. So I do. I certainly feel more positive about this than in past years when we just said we want to make sure that we have X amount of apprentices on the site, without having a program that is monitoring, without having -- and we have an administrator for this program. It's going to be Jim Roundtree, as we planned, and we're going to be able to 52 12/4/07 - WHOLE - BILL 070994 support people through every level, and at least all of the issues that traditionally kept people out, we think that we have anticipated them. We're going to have staff in place. We're going to have the monitoring. We're going to be on the site. We're going to be vigilant about it, and we're going to call the unions in when there is a problem.
You're welcome. Are there any other questions from members of the Committee? The Chair recognizes Councilman Clarke.
A couple of 53 12/4/07 - WHOLE - BILL 070994 quick questions. The minority participation program that was initially submitted to us and subsequently amended, was that presentation or plan given to the Board of the Convention Center for their review?
Yes. The initial program that we went through the development and having a disparity program and coming up with the numbers, yes.
Were there any concerns raised at that review process by members of the Board at all, given the obvious significant concerns that were raised by this Council? I'm just wondering.
Absolutely, Councilman. First of all, when we went out to do the disparity study and the numbers came back to us -- and that would have been Duane Morris with Nolan Atkinson and myself -- we were appalled at the numbers. We then said to the 54 12/4/07 - WHOLE - BILL 070994 consultant, Go back out, there must be a mistake here, we cannot accept these numbers. So we were as concerned as you were. Our Board was concerned.
I'm talking to, first, when we commissioned the study and we commissioned that with the help of Duane Morris, the company was Mason Tillman. When she initially set out to do the research and we received the first draft of these numbers, that week was concern.
You keep saying "we." Are you saying "we" as only you and Duane Morris? The question was --
Yes, the Board. 55 12/4/07 - WHOLE - BILL 070994 Yes, the Board was concerned.
And so the assumption is that questions were raised about this low percentage?
So was there a need to change the percentage? I guess I'm wondering, how could this have passed the muster at the Convention Center Board? And now you're saying that there were concerns raised, significant concerns, but yet it was sent over here.
See, our market area was the Commonwealth, because, as you know, the whole process -- that market area was the Commonwealth, and those were the numbers. The Board was concerned. Councilman, now we have --
The question is, did they do anything other 56 12/4/07 - WHOLE - BILL 070994 than just be concerned?
Councilman Clarke and Madam Chairman, my name is Buck Riley and I'm Chairman of the Board. I think that the answer to your question was, yes, the Board was concerned. The Board discussed the issue. As I mentioned at our last hearing, as far as we were concerned, that was a floor. We felt we had put the best team together that had ever been put together and that was -- the goals were way beyond what that floor was. And so that's -- the Board looked at it from the standpoint that the sky is the limit, we're going to do the best job that's ever been done.
Were you under the belief that you were not able to put aspirational goals in?
I don't think anybody really discussed aspirational 57 12/4/07 - WHOLE - BILL 070994 goals. As I mentioned the last time -- and I understand the concerns of Council -- I think that the Board's position, the feeling of the Board was results talk. We can put any numbers on the table we want to put on, but results are what are going to talk, and we're going to produce results.
So with respect to the Oversight Committee, what's the makeup of the Oversight Committee?
Maybe Al can speak to that. Carl Singley is the Chairman, and I think Ahmeenah can probably give you a better rundown of the folks who are on that Oversight Committee.
Do you want to know specifically who they are on it? But the Oversight Committee does not begin to work until the bids come back in from the contractors.
From the Hispanic Chamber is the Chair of the Chamber. We have Carl Singley, who is the Vice-Chair of the Board, and he chairs the Oversight Committee. Sam Staten, who is a Board member. We have a representative from the union, Mr. Piacelli (ph), I think his name is, from the union on it. We have Beverly Harper. We have Carol Smith.
I can't think who else is on it. Bruce Crawley will be on this Oversight Committee.
As a member of the Chamber, the African-American Chamber?
Delilah is going to be on it from the African-American Chamber. I'm sorry; Delilah Winder, who is the Chair of the African-American Chamber. John Chin from PCDC, Philadelphia Chinatown Development Corporation. I think those are the members.
All right. The reason I ask that question, because as you have said and we all understand, that you can set whatever goals that you want, but at the end of the day, if the oversight is not adequate or the aggressive nature of the Oversight 60 12/4/07 - WHOLE - BILL 070994 Committee -- and I'm not sure how far your Oversight Committee will go in terms of identifying, because there's one thing to oversee and monitor the program, but it's another thing to be in a position to go out and solicit businesses to get to where you need to get. So if you simply deal with the existing companies, you're probably not going to reach the level that we would be interested in. And I guess given that -- and now I'm hearing that there's an expanded role for other individuals, because I think some of these members on the Oversight Committee were amendments, additions?
Yes. And just as we are talking, we've got Peter Speaks from the Commonwealth who will be on as well. Ernie Jones from PWDC, Philadelphia Workforce Development Corporation.
All right. Because I'm just concerned that I think earlier on, the Oversight Committee was, 61 12/4/07 - WHOLE - BILL 070994 in terms of membership, was kind of heavy towards existing Board members and entities that were already in the mix as it relates to this issue, and the fact that they allow whatever you brought over to us initially to come here without any significant goals or aggressive strategies in getting where we need to get, I'm a little concerned or was a little concerned that those individuals would not adequately be in a position to oversee this the way it needs to be overseen. Because if you allowed it to go through initially, then I don't feel very confident that you're going to do what you need to do on the oversight. If you thought it was okay to come over here with a 13 percent floor -- and I understand it was a floor -- but no 21 aggressive goals, then my level of confidence in making sure that the appropriate thing was done during the implementation phase is not where it needs to be. But you have now said 62 12/4/07 - WHOLE - BILL 070994 there's other individuals involved in the process on the Oversight Committee.
This is an entirely new group on the Oversight Committee, and this new group will be meeting very shortly. Now that we have these goals, then we are also hoping from some of the names that these are people who have been in the mix around business development in the City of Philadelphia for minorities and women and, within their own right, can outreach because they have a constituent base. That will all be very helpful in what we're doing. But they also have had various experiences -- and not all of them have been positive -- in being an entrepreneur in the City of Philadelphia, and we're looking forward that that experience even causes us to be more aggressive in terms of the monitoring that will go on.
All right. How will we, members of Council, know what the numbers are as this project 63 12/4/07 - WHOLE - BILL 070994 evolves? How will we be kept abreast of what's actually happening on this? Not that we can do anything about it once we pass this legislation.
But we also have a representative on that Oversight Committee from Council as well.
And we are hoping that that Council -- that that representative will make sure that you have information. And, of course, we are more than willing to do whatever Council would like us to do by way of reporting, but we do have a representative from Council on that Oversight Committee as well.
I had a couple of questions. I wanted to talk about the existing workforce at the Convention Center and to project that workforce at the Convention Center upon completion of the --
Good morning. Mr. Mezzaroba, currently what's the existing workforce at the Convention Center in terms of who actually works for the Convention Center Authority?
We have approximately 78 to 80 people at any one time that work for the actual Authority. They're state employees.
Minority employees probably make up, I believe, about 65 percent of the total workforce.
What percentage are in the management? 65 12/4/07 - WHOLE - BILL 070994
Well, what we consider senior management are three individuals, which would be myself, Ahmeenah Young and Madeline Apollo. So it would be two-thirds woman and one-third African-American.
At vice-president level, I can go kind of in my head where we're at with vice-presidents. Close to 50 percent. Our entire legal department is made up of minorities.
Two African-American females and one white 66 12/4/07 - WHOLE - BILL 070994 female. COUNCILMAN CLARKE? And then is it just senior management, mid-level management and that's it, that's the extent of it?
In terms of the projected new jobs, in the testimony it indicated it could be upwards of 15 permanent jobs? 16
No. Whose 17 testimony? I'm sorry. Unfortunately, 18 because of not having much time to go 19 through this... 20 Well, our pro forma right now is not showing direct 20 employment, new employees for the state, but it's not taking into effect that most of our employees at the Center are non-state employees. So, for example, if you 67 12/4/07 - WHOLE - BILL 070994 looked at who works in the Center every day, we'd probably have closer to 300 total employees. Out of those 300, most of whom are with private companies, so most of the Convention Center has been privatized since its opening.
Out of the -- you'll have more than 20 new 12 employees, not all state employees, 13 though. Out of direct state employees 14 who will be on the Authority's payroll, 15 we're estimating five to six. 16
Okay. And 17 the jobs that are contracted out, how 18 many additional jobs do you anticipate? 19 Because the assumption is if you're going 20 to add, what, 360,000 square feet of new space?
We're actually adding close to -- well, if you're looking at it from that, Councilman, I would say we're adding a million feet of 68 12/4/07 - WHOLE - BILL 070994 square space, because part of our job is we're taking care of the back of the house, the loading docks, everything else. So I don't have a number, but I would guess that would probably be the 7 minimum. 8
That would be 11 contractors, housekeeping. Aramark does 12 all the food and beverage. Housekeeping 13 does not only the cleaning but the 14 set-up. You have security jobs. That 15 will be increased. All of that is done 16 privately. All of the maintenance jobs 17 are private. 18
And you 19 anticipate that the ancillary jobs will 20 be approximately what?
Ancillary jobs, I would guess, are at the 20 level, new jobs.
Jobs that are created as a result of the expansion 69 12/4/07 - WHOLE - BILL 070994 would be what, hotels, all the other things? The reason I ask, when we're talking about spending $700 million, I don't want to tell people we're only creating jobs. 7
No, but I think 8 what the question and what I think the 9 EOP says is that there's 20 new jobs 10 permanently at the Convention Center. 11
And if you look 14 at the Convention Center and our 15 business, I would estimate that total man 16 hours, you're adding probably 300 new 17 jobs for construction workers, who set up 18 and dismantle the shows on the floor 19 because of the increase in the shows. 20
Yeah. The 23 project is expected to produce an 24 additional 1,438 City jobs on an average 25 for each year of construction. The 70 12/4/07 - WHOLE - BILL 070994 employment benefits of the expanded Center will reach far beyond the facility. Based on estimated events, attendees and exhibitors, permanent jobs in the region will total 11,505.
That will include what, like hospitality-related jobs?
That will include hospitality jobs and all the spinoffs that come from hospitality. There's many levels that we looked at at spinoff, because for every hospitality job, those people have to have their uniforms cleaned, things of that nature. They're going to the supermarket. But direct jobs would be the 11,500.
The total 71 12/4/07 - WHOLE - BILL 070994 impact is about $12 million in wage tax.
So they're traditionally, what, lower/mid-level in terms of jobs?
I think it really depends what you're going to -- the 11,000, the majority of those will probably be lower to mid-level, but I think you are creating some real careers for people. And I think our program that we've run with OIC, the School District and Academies, Philadelphia Academies, along with Merion Mercy, has really given people real careers where they come in at these mid-level jobs and they increase and become management in these hotels. We're probably looking at between 2,000 and 3,000 new hotel rooms.
Okay. All right. Thank you. Thank you. Thank you, Madam President.
You're welcome. I don't know if Councilman 72 12/4/07 - WHOLE - BILL 070994 DiCicco is in the room. (No response.)
He's not. The Chair recognizes Councilman Ramos.
Thank you, Madam President. Ms. Ahmeenah, I share your view of optimism, because as a person by nature, I'm optimistic. So I'm optimistic that things will work itself out with the minority participation goals as amended or proposed amendments indicate today to correct goals that seem very unfair and outdated, but do you feel confident that you have a tight enough plan so when you do see on a Tuesday that the workforce, whether it be on the job site or vendors, do not reflect these minority goals, do you feel that you have a plan in place that when it happens on that Tuesday, that you be able to have corrective measures in place to keep the 73 12/4/07 - WHOLE - BILL 070994 job going?
Can you explain to me what makes you feel so secure that on a Tuesday when you go out there and see that you don't have the apprentices or that your apprentices have been replaced by journeymen, based on unions having to call their halls to have someone on that day fill the spot of another person of color, I mean, how do you -- do you feel confident enough, you have a plan? Because if you don't, what will happen -- and I have a little bit of experience in this -- is that the job must go on, and when the job must go on, it means it must go on. It doesn't matter if the person looks like Councilman Wilson Goode, Jr. or talks como yo on a job site. The bottom line is that the job has to move forward, because we're on a deadline.
Councilman, if I could, you're 100 percent correct, and 74 12/4/07 - WHOLE - BILL 070994 I know you have a lot of experience in the building trades industry, and what you will also, I guess, understand is apprentices are paid at a fraction of what journeymen make. So if they want -- if "they," being the union or "they," being the contractor, would like to replace a first-year apprentice with a journeyman, I don't think we can stop the job that day, but what we can do is only reimburse at a first-year apprenticeship rate. And there's no contractor, in my estimation, in the world that's going to accept a $12-an-hour reimbursement for a $72-an-hour employee.
Or for that matter, that you have a journeyman of color on the job site or a handful and then on that particular day or for whatever reasons those people cannot be -- those individuals cannot be replaced. I just have very, very -- as optimistic as I am, I'm very much concerned that the implementation and the 75 12/4/07 - WHOLE - BILL 070994 enforcement, unless you have it down to a very tight system, even have to rehearse it, that you will run into a situation where the job has to get done. Do you have in your plan right now the involvement of the program of the SRC and the Philadelphia building trades on minority participation in the trades and the program that is out there for high school students to enter the trades? Are they involved in your plan already?
Absolutely. In fact, as I referenced a meeting that we had yesterday, we were told that there are 316 eligible candidates for the apprenticeship programs in Philadelphia. Of course, we're not going to take all 316 from the School District, but they have that, and we are listening as their representative was talking us through the process. Of course and I don't want to say to you in any way that a comfort level means that I don't have anxiety 76 12/4/07 - WHOLE - BILL 070994 about these processes, because anyone knows that on any given day, that there are a multitude of variables that we just don't control, but what we are trying to do is extrapolate from existing programs what the challenges were for those programs, certainly be in concert with the union as to how we can do this as a partnership, not an adversarial relationship, then set up appropriate administrative and management parts of this so that we do have a successful end. But am I completely comfortable in this? No, not at all. Do I have anxiety? Until the last brick is laid, the last dirt is turned, I won't be able to say to you that, Oh, no, I'm fine and I'm confident that this is going to happen. But I do assure you that we are trying to do everything that we possibly can to make this a successful program. And given your experiences, if you have some things that you would share with us that would certainly help us to overcome 77 12/4/07 - WHOLE - BILL 070994 some of these challenges, we would be more than happy to listen to your direction.
I appreciate that, but the talking through, there's an amount of talking through that has to be done and completed very soon if this project is going to stay within the reach of its time schedule. That's why it's important that whatever plan you have and through the Oversight Committee, that this plan will have to address all those different particular scenarios that will develop in the process. You take a look at 300-some students that have gone through this joint program of the SRC and the building trades, the question is how many of those young folks are still available out there, how many of them still want to do this. What you don't want to do is be in a situation where the project gets started on Wednesday and you find out two weeks later that there's only 50 young folks available for that 78 12/4/07 - WHOLE - BILL 070994 program. What are you going to do then? So these are the things that I think that right now need to be addressed, because if not, it will be deja vu all over again. We'll go through this stuff. I've seen this happen in this Council for many years as an outsider, now as an insider. We're having the same old discussions time and time again, and yet when it's show time, that contractor wants to get the job done and no one, probably even within the law, can stop that contractor from getting the job done, minus losing a lot of money and in this case losing and throwing out the window a lot of hard-earned taxpayers' money. So as optimistic as I am, like you are, I think that there's still a whole lot of work to be done in the implementation and the enforcement of minority participation. And, again, I concur with my colleague, Councilman Goode, with not having a prime be of the 79 12/4/07 - WHOLE - BILL 070994 minority community for so long and that this is the biggest project of its kind in the Commonwealth, that unless we make it happen now, it doesn't have to be written into law, but can we be -- could we open our eyes and see what has happened here for so long, and that while other cities have addressed this issue with the support of, in many cases, of our unions, most of them that work hard in trying to do the right thing when it comes to inclusion, I just see that there's a whole lot of work that needs to be done with the implementation enforcement, and it seems like we don't have a whole lot of time left. So if I could be of any assistance in that, in regard to making sure that this is implemented and enforced as I sit here in City Council, that I'm sure -- I've been part of the SRC Oversight Committee as well, and it's a bit frustrating, because you will hear contractors saying and even some of the 80 12/4/07 - WHOLE - BILL 070994 unions say, Well, I don't see many young minority youth wanting to do this kind of work. So we have -- this is not -- this is a very difficult issue. And I think that there's some remedies out there that are not as difficult, but if we're being promised here by the Authority at the Convention Center and all related parties, including the local administrative government, we have to live up to those criteria set forth in these amendments today. Thank you, Madam President.
You're welcome. The Chair recognizes Councilwoman Brown.
Thank you, Madam President. Councilman Clarke's line of questioning triggered a couple of additional questions and concerns. Back to the Oversight 81 12/4/07 - WHOLE - BILL 070994 Committee, my experience here with the stadiums was an Oversight Committee was needed, but what is not reflected here is a reporting-back provision where the activities, the actions, the recommendations of the Oversight Committee are not only recorded but that information finds its way back to Philadelphia City Council. So my ask is that a provision that speaks to that be added in this language some type of way so that Council, of course, can be kept abreast of the developments within the Oversight Committee. That's number one. Number two, what contracts have been released already for the new Convention Center?
What contracts have already been released for the new Convention Center?
We've let -- approximately 1998 they let a contract for design, which was with the firms of Vitetta, Thompson, Ventulett in Atlanta, and the minority firm was Kelly/Maiello, and that's the same exact team who designed and built the first Center. And that's been in place since, like I said, I believe '98, '99, in that time frame. Since that point, we've also let our construction management team, which is a team of Tishman/Jingoli, with a minority component being provided by both Angelo Perryman and Universal.
Yes. Well, let's go back to the design. What's the percentage breakdown there?
The overall percentage breakdown was approximately, I 83 12/4/07 - WHOLE - BILL 070994 believe, percent. 3
Excuse me, 6 Councilwoman, but as part of that 25 7 percent was also printing, which, believe 8 it or not, is probably as large as any 9 other component of the contract. 10
Okay. So 11 that was the design, and then you went on 12 to? 13
And the CM was, 18 again, 20 percent for Angelo Perryman. 19
And there is a 22 component for outreach being handled by 23 Universal and GPUAC. 24
So that means DGS contracted with the RDA to handle both the condemnation and acquiring the property, along with the demolition of the property.
Yeah. Twenty-eight percent was minority on the Geppert contract.
Define "minority." What does that mean? 85 12/4/07 - WHOLE - BILL 070994
MBE, WBE, I'm just being told, overall is percent in 4 the first phase of that contract. There 5 will be a second phase. 6
So of the 7 MBE, WBE, the total number is 22 percent? 8
That's been 9 achieved thus far on Phase I of the 10 contract. 11
That I don't 14 know. Again, it's being run through the 15 RDA. 16
So help me 17 understand something here. When the 18 Convention Center links up with another 19 in this case quasi-governmental agency, 20 do the same rules apply? 21
It's a little 22 complicated. We have our $700 million, so to speak, to build this through the state's capital budget, which means it's really DGS's money, Department of General 86 12/4/07 - WHOLE - BILL 070994 Services of the Commonwealth. They contracted with the Authority to design and eventually build the Convention Center. They further contracted with the RDA directly to condemn, acquire the property and do the demolition.
One of the things I pointed out in my opening statement is that each of the two agreements for the Convention Center agreement and the operating agreement have covenants, and under those covenants, there is a legal requirement that under any contract going forward -- Mr. Mezzaroba has been talking about the contracts that have been let previously, but going forward, this Economic Opportunity Plan, if it meets with Council approval today, will be incorporated into any new contracts that are let either by the Convention Center 87 12/4/07 - WHOLE - BILL 070994 Authority or its agents.
Okay. That's helpful. So Geppert received the demolition contract, and Geppert is what?
It's a majority firm. And, in fact, the RDA at that time, with DGS's input, was the third lowest bidder. I mean, the RDA is under low bid requirements for demolition. They were actually the third lowest bidder, because the first two were considered non-responsive because they didn't have a substantial minority WBE component. Further than that, the RDA has also withheld payment to Geppert, because when they -- again, it's usually a retroactive. It's as Councilman Ramos has said, that it's hard to stop a job, but what you can do is review what's been 88 12/4/07 - WHOLE - BILL 070994 done, look at certified hours, look at all the contractors that have worked in that past month. And I believe the RDA has actually held up money to Geppert until they got those numbers that they promised.
All right. Thank you. So we're clear about the provision where there's a reporting-back step for this amendment?
I would suggest, Councilwoman, on under Paragraph F(1) insert the following phrase after the sentence that -- or that line that reads "Project Oversight Committee will engage in monitoring, reporting," I would put a parenthesis and insert "including to City Council."
Thank you, Madam President. 89 12/4/07 - WHOLE - BILL 070994
You're welcome. The Chair recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam President. I need to distribute some amendments. This morning I received a letter from Mike Masch, Budget Secretary, concerning my questions to him last week about the Governor releasing the funds for the Convention Center expansion, and I think I was very poignant in my question when I asked that either he ask the Governor to either call or write to me and document or memorialize that the Governor will in fact, once all the approvals are in place, the design and the costs of the expansion have been met, that the Governor would in fact release the funding for the Convention Center expansion. The letter, you will see, really is not a response to that 90 12/4/07 - WHOLE - BILL 070994 question, and I'm really disappointed that the Governor still has not yet committed to releasing that $700 million. Therefore, this morning I will be offering an amendment that I hope will convince the Governor that it is in his best interest, the city and the state's best interest that these funds be released. The provisions of the amendment would not allow for the issuance of any permits or licenses for gaming facilities unless and until the Governor releases the appropriate funds for this Center. Because the Governor has been such a wonderful advocate for both the casinos and the Center, I can't imagine why he would say no. 20 So I will be offering that as an amendment this morning, Madam President. The amendment is on the last page of the amendments that have been brought -- it's the last page. There's two separate packets. One was 91 12/4/07 - WHOLE - BILL 070994 amendments, one was the letter from Mike Masch.
Does everybody have a copy of the amendment being proposed? Thank you. Councilman DiCicco, are you finished? COUNCILMAN DiCICCO: Yes.
Are there any questions by members of the Committee? (No response.)
Do we have anyone else to testify on this bill? (No response.)
Madam Chair, if I could just simply reiterate the request that the proposed amendment that has been provided by me and my colleagues today be approved by Committee and the previous request that there be suspension of rules to allow the consideration at a first reading this Thursday be approved. 92 12/4/07 - WHOLE - BILL 070994
Yes. And also there were amendments proposed on Friday that I believe we were asking to be approved.
I believe that the amendment that is before you today takes the place of the amendment that was requested by me orally on Friday.
Thank you, Madam President. I also ask that the goals within the Economic Opportunity Plan be broken down in terms of minority participation to set a separate goal for African-Americans for contracts and jobs, 93 12/4/07 - WHOLE - BILL 070994 and I'm not in favor of approving this Economic Opportunity Plan unless it includes that broken-out goal.
Madam Chair, I think that's been accepted by the Authority. It will be added and, yes, indeed --
I can't speak for the Authority as to how quickly they can develop that goal, but I would indicate that if it's with the approval of Councilman Goode and Council, we could -- well, let me see what Mr. Mezzaroba has to say.
Councilman, earlier you were referring to a chart. If it pleases you, we could just take a look at that and maybe agree to that being the amendment as to the breakdown.
Whatever you 94 12/4/07 - WHOLE - BILL 070994 use to get toward the goal, as long as the goal is included before we vote on it, I'm fine with it, but it needs to be in writing in whatever we approve.
Would it be possible to see a copy of what you were holding up?
Madam Chair, sorry for the confusion, but in response to your earlier question, yes, there was a set of amendments that was proposed in connection with indemnification last Friday. Both sets of amendments I would ask be approved by Committee of the Whole. Thank you.
Thank you. Councilwoman Brown, did you want to be recognized?
Yes. Is there a representative here from the Redevelopment Authority, Madam President? 95 12/4/07 - WHOLE - BILL 070994
Is there a representative here from the Redevelopment Authority?
I'll ask our Commerce Director to come to the witness table. Thank you. Thank you. I think it was Mr. Mezzaroba who indicated that for the demolition contract, the state engaged in an agreement with the RDA and RDA executed the contract. Please speak, if you know, does RDA have the role -- no. What is RDA's role when it comes to the handling of contracts?
So talk that through for me. That doesn't help me get to -- 96 12/4/07 - WHOLE - BILL 070994
They're the agent of the Commonwealth to handle the acquisition, condemnation of properties and the demolition at the site.
And so the state negotiated with RDA for the demolition piece, and RDA went through its internal procedures to actually let the contract; is that what I'm hearing?
I don't really know what the standard operating procedure for the RDA is, Councilwoman, but the Commonwealth -- and I know from our dealings, as well as the dealings that we go through every day, and I'm assuming it's the same -- the Commonwealth hired the RDA because they're the experts in takings.
Hired the 97 12/4/07 - WHOLE - BILL 070994 RDA. Okay.
So when we say their agent, it's really not too much different than the Commonwealth coming in and hiring a law firm or a construction firm to do the same. The RDA is probably the best group of people to take property and then demolish the property.
So it was a requirement of the Commonwealth, as well as what the RDA's internal workings were, to come up with a minority percentage.
Okay. All right. That goes to the question I raise. And you said in your testimony that percent of the demolition piece 20 went to MBE, WBE? 21
That's what's 22 been attained so far. What I'm being told is that that's the attained number as to what's actually going on in Phase I of the demolition. Phase II of the 98 12/4/07 - WHOLE - BILL 070994 demolition has yet to be let.
Councilwoman, may I suggest that we will consult the RDA and we will provide information to you about the contracts that have been let?
I think I might be okay with that, but what I've learned the hard way here is that if it's not on the record and there's not the public discourse for the record, then when we get the report back from the Oversight Committee, we get surprises. So the more we're able to put on the record now, we're at a better and different place once we begin to anticipate those reports. So let me just wrap this up. The Phase I -- so you say that it's 20 percent right now in Phase I of this 21 demolition process. 22
And so with the new covenant that the City Solicitor just mentioned, the Phase II of 99 12/4/07 - WHOLE - BILL 070994 this process will reflect this Equal Opportunity Plan; is that what we're hearing?
That's a question I can't answer, because the RDA is not party to the underlying contract. It would be to the Commonwealth using the RDA as their agent to insist on the EOP being part of that secondary contract. I have no control whatsoever as the Pennsylvania Convention Center Authority over what the RDA and DGS have between themselves.
Then I need to hear back from the City Solicitor, because I thought I heard -- well, let me not attempt to interpret or editorialize. City Solicitor?
I did not want to misspeak and I need clarity once 100 12/4/07 - WHOLE - BILL 070994 again on the question of Phase II of the demolition going forward. How or will it reflect the guts of the Equal Opportunity Plan even though this is a state-authorized project?
Subject to any question that might be raised by the Authority, I believe the new Economic Opportunity Plan would not only be applicable to any new contract that has never been negotiated, but I also believe that it would be appropriate for the Authority to the extent that it has not implemented phases previously approved, I think there should be an opportunity to go back and review those. Mr. Mezzaroba points out that there's not a direct contract between the Authority and the RDA. On the other hand, one of the three signatories to this agreement is the Commonwealth, and certainly the General Services Department of the Commonwealth would be subject to the same provisions. What I don't know, 101 12/4/07 - WHOLE - BILL 070994 Councilwoman -- and this is why there's a little bit of fuzziness here. What I don't know is if the Phase II or other contracts that haven't yet been implemented have already been negotiated, but I think in the spirit of all this discussion, we would want to go back and review any contract that has not yet been implemented even if it has previously been signed following negotiation, because I hear the message and I believe the Commonwealth Secretary of the Budget heard the message last Friday that the expectation is that all actors involved in this process are going to meet this commitment going forward.
You're welcome. The Chair recognizes Councilman Greenlee.
Madam President, I don't know if this is the 102 12/4/07 - WHOLE - BILL 070994 appropriate time. I just had a question regarding the amendment Councilman DiCicco offered, if I could. Councilman, if I may, my initial -- and I know I'm just reading this now. My initial off-the-top thought is we're kind of in a way mixing apples and oranges here, and I wonder -- and I guess maybe as an aside question to the Solicitor if he has one -- how this all fits in. I know that's a general question, but, I mean, I just don't -- I mean, are we going on a different track here when we start mixing in the Gaming Act here? And I know your fervor on this and I understand that. COUNCILMAN DiCICCO: Up until --
Councilman, your light is not on. COUNCILMAN DiCICCO: Up until probably last Friday, it was the general opinion of most people that the two gaming facilities to be built in 103 12/4/07 - WHOLE - BILL 070994 Philadelphia, that portions of that revenue were needed for the Convention Center expansion. We found out last Friday that that is not the case. Mr. Masch testified that even if the casinos were not built in the City of Philadelphia, there is enough revenues from the other gaming facilities and wherever else the money is coming from to support the debt service for the expansion. Yesterday the Supreme Court of Pennsylvania basically said to the citizens of this City and to everybody in this room, all of those who are elected officials, that the City of Philadelphia doesn't matter in the eyes of the Supreme Court. Decisions that we make, laws that we pass are irrelevant. And I think if the Governor is really sincere about this Convention Center expansion, which I do not believe that he is, because by delays that he has caused for the past three years, as I testified on Friday, the cost 104 12/4/07 - WHOLE - BILL 070994 of this project has gone from about $450 million to $700 million. So I don't know. It may sound like apples and oranges, but I think they are connected somehow, because if the Governor is real, why didn't he send a letter today at my request that I made to Mike Masch that he would release the funds? They skirt around it. If you read the letter, it doesn't answer the question at all. So since the Governor and the Supreme Court are making decisions for us in everything it seems that we're doing these days, I'd like to know if he really intends to release the funds. And there are some issues with the minority stuff that has already been discussed again this morning.
I understand. COUNCILMAN DiCICCO: And I'm not comfortable with those numbers, because I don't think we ever get to 105 12/4/07 - WHOLE - BILL 070994 those numbers, as I said last Friday, because you're never going to get to the journeyman position, so you're never going to be able to reach those numbers. And no one is addressing -- notice, there's no one from the building trades here. Forget the posse. Forget the posse that follows me, but there's not the leadership from the building trades who can speak to that who is here today. Mr. Gillespie is a member of the Convention Center Authority Board. He's not here today to answer those questions as it relates to the hiring practices and the minority and women participation. So in our business, sometimes you got to throw everything at the wall and see what sticks, and that's what I'm doing.
I mean, I certainly understand that. I guess maybe if I could ask the Solicitor's opinion, given particularly the court decision that was issued yesterday, which I 106 12/4/07 - WHOLE - BILL 070994 understand certainly Councilman DiCicco's -- and I think a lot of us have concerns about that. I understand that. COUNCILMAN DiCICCO: You know, Councilman, if I could just answer that. It's been the casino issue lately, but we did a resolution last week. I don't know if anybody really looked at it closely. Ten years ago or so, the Supreme Court of Pennsylvania said to the Commonwealth of Pennsylvania, You must fund the courts in the City of Philadelphia. They haven't done it, but they go yesterday, the Supreme Court, make a ruling that says that we can't decide where casinos go, but the state Legislature gets off the hook in giving us a hundred million dollars a year to fund our courts. They want it both ways. And this may be a message to both the Governor and the Supreme Court. I don't know. I'm trying everything. I will try everything and anything to get relief, to get the Supreme Court to back 107 12/4/07 - WHOLE - BILL 070994 off a little bit, to let us decide the destiny for the people who we represent. And, again, I will say, I don't believe that the Governor is sincere in funding this Convention Center expansion.
I certainly understand -- COUNCILMAN DiCICCO: That's my opinion.
I'm sorry. I certainly understand the criticism of the Governor and some of the other things, but given that decision I guess is what I'm getting at, and, again, to the Solicitor, can this amendment even be enforced, I guess is the question, in your opinion, obviously?
The Supreme Court decision yesterday in the appeal by SugarHouse directs the City of Philadelphia to issue, in my view, the permits required to construct the SugarHouse Casino. To the extent that there is a different direction to the 108 12/4/07 - WHOLE - BILL 070994 City Administration by the amendment, it would be my opinion that that would not be upheld by the Supreme Court of Pennsylvania.
It would not be upheld. In other words, I believe they have spoken very clearly that they believe that the failure to act is in fact an action that was appealable, and as a consequence, they have directed the City to implement rezoning and to proceed to consider permits for the SugarHouse Casino as if City Council had approved both the CED designation for SugarHouse and the plan of development and the related City strikes and easement changes that were included in a third bill before City Council. COUNCILMAN DiCICCO: I think that goes to the heart of this question. City Council never approved the CEDs. The City Administration made the decision 109 12/4/07 - WHOLE - BILL 070994 to support it and then went to the Supreme Court. Again, the Supreme Court has overridden everything we've attempted to do in this Council. It might be -- the casinos are in my district and it's a district issue and it's not, and I understand and appreciate that, but who is to say that something else doesn't come down the pike at some point in the future and we're going to be faced with the same dilemma? Any District Councilperson could have that same issue. I mean, would it have been right if the courts came in and decided for Councilwoman Blackwell and overruled the decision of this body not to move forward on the relocation of the Youth Study Center? I mean, pretty much we might as well just pack it up and go home.
I understand. Council President, if I could. Councilman, I agree with a lot 110 12/4/07 - WHOLE - BILL 070994 of the points you're making. I guess I just -- my concern is -- COUNCILMAN DiCICCO: Not to interrupt you. I'm not taking it as a hostile question. I'm just making my point.
I guess I'm getting to the effectiveness of this and do we just -- are we, in a sense, hurting the Convention Center issue on something that the courts already said unfortunately, in a lot of our opinions, there's nothing we can do anything about? I guess that's what I'm -- COUNCILMAN DiCICCO: Well, do we roll over and just play dead? I don't think so.
Okay. COUNCILMAN DiCICCO: I don't think that's what we got elected to do. I don't think we -- and I appreciate your question, but I don't think that's what we were elected to do.
Okay. I 111 12/4/07 - WHOLE - BILL 070994 wouldn't characterize it exactly rolling over. I understand. Thank you. Thank you, Madam President.
Thank you, Madam Chair. I just want to direct a couple of questions at my good friend and my colleague, Councilman DiCicco. Councilman, you asked very pointed questions last week on Friday about this whole tying of the Convention Center and the ability to fund the gaming -- I'm sorry; the gaming and the ability to fund the Convention Center, and I must say that it was masterfully done, because you did in fact get the state to come to the conclusion that the 112 12/4/07 - WHOLE - BILL 070994 Convention Center could proceed without the Philadelphia gaming facilities, and that was, I think, some of the points that you've been trying to make over the period of the last several months. And with that, as it relates to Councilman Greenlee's question, it enhances the premise that the two -- his suggestion that the two are not connected. So I don't understand how you now could tie these two together in this legislation. And I understand what you're doing. I mean, I've supported you throughout all of -- in spite of what I've been hearing from SugarHouse and you know what I have under my table in the Fishtown community, in spite of that, I've supported you and to the point where I've actually stopped having meetings to let that process work its way through, and I suggested to the residents during the course of several meetings that at some point, I thought it was appropriate to have a community benefits agreement in 113 12/4/07 - WHOLE - BILL 070994 place in the event that the state steps in, and the Supreme Court has in fact done that, and now it concerns me that our ability to negotiate an agreement is lessened. And if there are issues with respect to the Convention Center that are not appropriate, I think that we should deal with them on the merits of that, and you've laid out quite a few of them and a number of us have, but I don't know why we should support an amendment that then ties it particularly to SugarHouse. I definitely understand why you're doing the -- COUNCILMAN DiCICCO: Well --
We've gone through the entire process. COUNCILMAN DiCICCO: I'm trying to do it as gently and as civilly as I could. You know, I don't know if it would hold -- if I were to move that this bill be recessed, it dies, and I can hang my hat on councilmanic prerogative. Whether it holds up in this Chamber, I 114 12/4/07 - WHOLE - BILL 070994 don't know. People will have to make a decision. So I'm giving them an opportunity to put their money where their mouth is, the Governor and everybody else that's involved in this expansion. I mean, I can pull that right now, and I don't want to do that, and maybe I'll lose, but it will be the first time that a District Councilperson's prerogative will not have been honored.
But, Councilman, if you want to do that, you could just simply do that on the Convention Center bill. My question is, how are you going to tie it to SugarHouse, which has nothing to do with this particular legislation?
The Chair recognizes Councilman Ramos for a point of order.
I'm very 115 12/4/07 - WHOLE - BILL 070994 much interested in the debate that's going on right now, but I believe that we have other people that are -- they still want to testify on the broader issue of the expansion of the Convention Center, and if we could get that done, then we can go into --
I think that question was asked before and I don't know that anybody approached the witness table.
All right. Well, I think this issue has to be settled first, because I believe Councilman DiCicco has a prior commitment. COUNCILMAN DiCICCO: Well, I do have -- I have to be in arbitration in 116 12/4/07 - WHOLE - BILL 070994 ten minutes at 20th and Market. Councilman, I understand and respect your concern and your question. I'm trying to get to a point where, A, we get a commitment from the Governor, which, again, I will say I don't believe is coming and all of our efforts are for what? And I'm also using this as some leverage to get something back on the casino stuff for the people I represent.
But, again -- COUNCILMAN DiCICCO: And I'm going to ask for a recess. I'm going to insist on councilmanic prerogative if I don't get the amendment.
As the District Councilperson, that's within your right, but I'm still saying what does that have to do -- COUNCILMAN DiCICCO: Because I have casinos in my district. I'm going to ask that this bill not be reported out -- I'm going to ask for a recess on 117 12/4/07 - WHOLE - BILL 070994 this bill.
That's between you and the President. My question is -- and as the District Councilperson, that's your prerogative. I'm suggesting that this still has nothing to do with the casino, particularly given the fact that the testimony of Mike Masch indicated that this Convention Center can be built regardless of revenues from the casinos. COUNCILMAN DiCICCO: Then let the Governor send us a letter saying he's going to release the funds.
I'm with you on that, but I still don't think it should have anything to do with the casino. Madam President, I'm done.
Thank you. 118 12/4/07 - WHOLE - BILL 070994 Thankfully, for the record, I will be abstaining on all amendments on the bill due to information that I provided and disclosed early on in the earlier hearing about the firm I'm associated with, they're part of the design team. But I am enjoying the debate.
Thank you. Can I just have the City Solicitor's attention for a moment, please. In reading Councilman DiCicco's amendments, it states, "The provisions of this section are not severable from the previous sections of this ordinance." So if in fact this were not approved, then the entire ordinance would go down the tubes?
Thank you. The Chair recognizes 119 12/4/07 - WHOLE - BILL 070994 Councilwoman Tasco.
You answered my question. That's what I wanted to -- I had the same question in terms of what impact does this amendment have.
I wanted to ask the same question, what impact does this amendment have on the ordinance, the proposal before us.
Because I believe that the Supreme Court decision yesterday was very clear that the actions that have -- let me go back. Yesterday's opinion, I think, was very clear in terms of the Pennsylvania Supreme Court's concern about efforts to undermine the state's statutory requirements. Let me just read one sentence. "A political subdivision has no power to override the statutory provisions of the Gaming Act regarding the status of a licensed gaming facility 120 12/4/07 - WHOLE - BILL 070994 or to use its authority to zone to impede implementation of the Gaming Board's decision in that regard." And then skipping ahead, "As recognized by the City of Philadelphia, the City has no 7 discretion to preclude gaming." And in that light, among other things, it orders that "the City of Philadelphia is directed to take all actions necessary to implement the relief granted, including making all necessary changes to City records, maps and plans and receiving, reviewing and acting upon all applications from HSP," SugarHouse, "in the ordinary course and in compliance with this Court's order." I believe the amendment is illegal under the decision rendered yesterday by the Pennsylvania Supreme Court. However, because it also states in the amendment that it is not severable, it would be my view that when the Pennsylvania Supreme Court says that that amendment is illegal, all of the 121 12/4/07 - WHOLE - BILL 070994 bill associated with the approval of the Convention Center expansion would also fail.
Does anyone else want to be recognized, any other Councilmember want to be recognized? (No response.)
Bruce Crawley, is he still in the room? Yes. Please approach the witness table. Good afternoon. Please identify yourself for the record and proceed with your testimony.
Good afternoon, Madam President. I'm Bruce Crawley and I am the President of a small black-owned business here in the City of Philadelphia and I'm also here as a member of the Board of the Technical Assistance Center for Emerging Contractors, an organization that devotes itself to the development of African-American contractors specifically 122 12/4/07 - WHOLE - BILL 070994 for involvement in public sector and private sector opportunities.
Excuse me. Is the microphone on? Maybe if you pull it closer to you.
Sure. Anthony Fullard, Vice-President of Millennium 3 Management, also serve as the Director of Construction for the Technical Assistance Center.
First of all, let me say how pleased I am at the substantially enhanced recognition of the minority participation issues at the proposed Convention Center expansion just since last Friday. The Council is to be commended for the vigilance on this issue. I was most disappointed, as were most people involved in the African-American and minority 123 12/4/07 - WHOLE - BILL 070994 construction industry, when we heard of the initial goals that were available in the plan. I'm here to register formal objection to the lack of substantive commitment to black and minority workforce and business involvement in the original Equal Opportunity Plan for the Pennsylvania Convention Center expansion. I'm especially concerned at the fact that the Authority seems to have adopted a defensive approach to this issue rather than seeing the project as a proactive opportunity to grow the economy in the City's minority communities. Any attempt to minimize black and minority involvement in this vitally important economic issue is especially disturbing given the history of the current Convention Center, which opened in 1993. As you may recall, the discussions in City Council back in the late 1980s were absolutely crucial to ensuring diversity in the project, to the 124 12/4/07 - WHOLE - BILL 070994 eventual success of that building and to the growth of the hospitality industry here and throughout the region. It was largely through the efforts of City Council, supported by then-Mayor W. Wilson Goode, that plans to ensure that people other than white male-owned developers, white male-owned construction management companies, white male-owned lodging companies and largely white male-owned business would share in the economic impact that was promised to the City back then. Today our City's population is approximately 60 percent comprised of blacks and minorities, a greater level of diversity than existed years ago when 19 these decisions were first made. But 20 even back then, Councilmembers, in their great wisdom, included in the City's bond issue funds to ensure inclusion of minority school students, that they be educated to become members of the hospitality industry, the inclusion of 125 12/4/07 - WHOLE - BILL 070994 the Philadelphia OIC hospitality training program and substantial commitments to black and minority workforce construction and professional services procurement opportunities. For the record, this kind of inclusion by the City's hospitality industry has not been a function of charity but rather of economic reciprocity. As a result of those efforts, for example, the City's hospitality workforce, including at the managerial level, has increased substantially, and more than $1 billion in black and minority conference and meeting revenues have been attracted to the City's hospitality-related businesses. " They also pump money into the local industry. 126 12/4/07 - WHOLE - BILL 070994 So here we are years later, in a substantially more diverse City with a significantly more diverse business community, and we somehow have a plan in place that is designed to produce less minority inclusion than we had years 8 ago. We have a plan in place for this 9 critically important economic generator 10 that will provide economic opportunity to 11 virtually every demographic segment 12 except blacks and minority residents, who 13 desperately need employment in the City, 14 black and minority businesses, which 15 desperately need contracts, to expand our 16 neighborhood economic and job creation 17 efforts. That job creation, of course, 18 will be primarily targeted at the very 19 segment of our City's population that 20 suffers most severely from the highest poverty rate among the country's ten largest cities. This is a recipe for disaster. This is the kind of economic policy that created our City's impoverished black and 127 12/4/07 - WHOLE - BILL 070994 minority communities in the first place.
This is a plan that will simply continue to transfer the City's jobs and economic benefits to people who live elsewhere. And even though the City doesn't have a Convention Center bond issue on the table this time, its elected officials still have a very real and tangible responsibility to ensure that there is meaningful inclusion in all aspects of this project by the people who elected them. Regrettably, as we await the inauguration of our City's next Mayor with great anticipation and optimism, this certainly does not constitute a new day. In fact, it is very much business as usual. , one with teeth and instead consequences 128 12/4/07 - WHOLE - BILL 070994 or penalties that will be visited upon those who violate the proposed effectiveness of the programs. Over the past two years we met, for example, with a large mainstream construction management company general manager and he told us that he was not very impressed with the City of Philadelphia's minority participation goal-setting and compliance. In fact, he said that as they begin to do projects, they really don't care what the goal is provided by the City for the projects for inclusion. He said that what they simply do is accept the goal, whether it's ten percent, percent, 35 or 50. They 18 accept the goal, and as they get asked by 19 the City whether or not the goal has been 20 achieved as they move towards completion of the project, they simply say, We're making best effort. And as they continue to say they're making best effort, over time one-fourth of the project is done, one-half of the project is done, 129 12/4/07 - WHOLE - BILL 070994 three-fourths of the project is done and eventually the project is complete and they're still making best effort. They said to me -- and in a moment of absolute candor, he said, We know this is going to happen. Our project is done. We haven't achieved the goal, and nothing happens. Our great concern is that the compliance mechanism, the structure and meaningful composition of the Oversight Committee at the Convention Center be studied, be structured in a way that it will have some impact, and that the Oversight Committee itself have within its structure an authority to have meaningful impact within the Convention Center Authority's Board oversight structure. I don't think right now, given what we've heard about the Oversight Committee, its composition and the authority that will be let to that committee, I don't think it is structured now. I don't think it has the teeth now 130 12/4/07 - WHOLE - BILL 070994 to ensure that any of the things that were discussed today really will take place, and I would hope that we can work on that and have that resolved before the conveyance is approved. I encourage the members of City Council to take principal stand today with the citizens who voted for you and not approve this conveyance in transfer until you are satisfied, that there is a plan and a credible monitoring effort in place that will guarantee that this project's economic benefits are shared with all segments of our community, including blacks, minorities, white females and the disabled. Thank you.
Thank you very much. Good afternoon. Are you going to testify, sir?
Thank 131 12/4/07 - WHOLE - BILL 070994 you. The Chair recognizes Councilwoman Brown.
Thank you, Madam President. Thank you for your testimony. Given your observation with regards to the Oversight Committee as has been outlined thus far, what recommendations would you offer that would strengthen, if you will, the, I guess, duties of the Oversight Committee and, to use your words, give it teeth?
Well, certainly the Oversight Committee has to be tied to a set of penalties, have with any authority an ability to recommend that those penalties be imposed. And whether those penalties be imposed by the operating management of the Convention Center Authority or by the Board itself, that Oversight Committee would be in place and would have a perspective so that they could recommend that there be 132 12/4/07 - WHOLE - BILL 070994 accountability for those people who have signed on who have said that they would have the inclusion that has been dictated by the Equal Opportunity Plan. If that is not done, if you don't have the penalties, you don't have any concern about achievement, as we stated is the case with the large construction management company that we just described. And also I think that there has to be an insurance in the org chart of this committee structure that the Chairman of the Board of the Convention Center Authority and that the Board members of the Convention Center Authority, whose members do include members of the trades unions, that they have some responsibility for being accountable to the recommendations that come up from that Oversight Committee. I think that often times, too often, oversight committees are a PR strategy for people who say, Look, we're doing the right thing, we have an 133 12/4/07 - WHOLE - BILL 070994 oversight committee. Those oversight committees have no teeth. They have no 4 authority and they have no ability to carry out the mission as has been described. So I think that, one, there has to be a set of penalties, debarment, loss of contract, fines, all the standard things that could comprise penalties for people who intentionally violate that which they've signed on to do. And there has to be a governmental mechanism through that Board to ensure that the recommendations of that Oversight Committee see the light of day at the level of the operating management in the Board, and I don't know that that's structurally in place right now. About three years ago I served for a while as a member of one of the minority inclusion committees on the Convention Center Authority, and I remember us having meetings and lots of Danish and orange juice, but at the end 134 12/4/07 - WHOLE - BILL 070994 of the day, none of the things that we recommended ever saw the light of day, never got to the level of the Board meetings and were virtually never implemented. So I just want to make sure that there's not that disconnect and that this talk about an Oversight Committee is not just another PR strategy to get us off the point and into the construction process.
Do you have any models or examples of an oversight committee where you participated where all of what you just recommended was in place and implemented?
Well, it doesn't have to be an oversight committee. There are a number of ways that you could build in compliance. And so having an oversight committee is one way and it's a very visible way and it's something that people like to share with media, but the compliance apparatus can be built right 135 12/4/07 - WHOLE - BILL 070994 into the operating management of the Authority, and the operating management can give a report to the Board on a regularly scheduled basis and they can have data supplied by people who do daily, weekly, monthly monitoring provided to the Board. And when the Board sees a disparity, when the Board sees a variance, they can, with the full support of the operating management, do the kinds of things that have been outlined in the list of penalties and consequences. So I don't know -- I mean, people say they have oversight committees. That's all well and good, but the reality is where do you get the accountability to ensure that the companies that participate in bringing the workforce to the table, bringing the contracts to the table, that they feel an obligation to do so? And, again, the Oversight Committee is just one way, and we've had oversight committees on 136 12/4/07 - WHOLE - BILL 070994 virtually every major project in this City in the past or 30 years and some 4 of their results have been disastrous. 5
Thank you 6 for your testimony indeed. 7 Thank you, Madam President. 8
Thank 22 you. 23 Do we have anyone else that 24 would like to testify on this bill? 25 (No response.) 137 12/4/07 - WHOLE - BILL 070994
Seeing no one, this hearing will be continued until Thursday at 9:45. And I would ask that Councilman Goode's concerns be addressed by that time. Certainly we are hoping for a better letter from the Governor so that Councilman DiCicco's concerns can also be addressed, and maybe one day we'll be able to consider this bill.
For the record, I want to revisit with the City Solicitor the important additional points raised from witness A. Bruce Crawley on the issue of accountability to see if we can shape language that indeed addresses what I believe is a legitimate --
-- reasonable concern around penalties and 138 12/4/07 - WHOLE - BILL 070994 fines. So that should be -- and reporting requirements. So that should be stipulated to as an outstanding unresolved matter.
Well, we're doing this and I think that if we're doing it, we ought to do it right.
And everybody feel very comfortable with what we're doing. Thank you very much.
Also, may I remind my colleagues that 11 o'clock this morning the Handicapped and Disabled Committee was to meet. They will meet immediately after we recess. And the Rules Committee hearing is scheduled for o'clock. So I would suggest that we all make our ourselves available. Thank you. (Committee of the Whole 139 12/4/07 - WHOLE - BILL 070994 adjourned at 12:40 p.m.) - - - 140 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 December 4, 2007, 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.)