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Minutes

Committee Hearing, December 4, 2007

Philadelphia City Council Committee HearingsDec 4, 2007

People mentioned

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Organizations mentioned

Ms. Young

I mean, what could we -- I'll have the Board speak to it.

Mr. Riley

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.

Councilman Clarke

Were you under the belief that you were not able to put aspirational goals in?

Mr. Riley

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.

Councilman Clarke

So with respect to the Oversight Committee, what's the makeup of the Oversight Committee?

Mr. Riley

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.

Ms. Young

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.

Councilman Clarke

I understand. 58 12/4/07 - WHOLE - BILL 070994

Ms. Young

So it's --

Councilman Clarke

Has it been established?

Councilman Clarke

Who are they?

Ms. Young

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.

Councilman Clarke

Who is that?

Ms. Young

Carol Smith? She's an entrepreneur in town here.

Councilman Clarke

What does she do?

Ms. Young

She runs a technology company.

Councilman Clarke

Okay. 59 12/4/07 - WHOLE - BILL 070994

Ms. Young

I can't think who else is on it. Bruce Crawley will be on this Oversight Committee.

Councilman Clarke

As a member of the Chamber, the African-American Chamber?

Ms. Young

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.

Councilman Clarke

All right. And it will be chaired by Mr. Singley?

Ms. Young

That's correct.

Councilman Clarke

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?

Ms. Young

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.

Councilman Clarke

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.

Ms. Young

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.

Councilman Clarke

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.

Ms. Young

But we also have a representative on that Oversight Committee from Council as well.

Councilman Clarke

We do have a representative?

Ms. Young

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.

Councilman Clarke

Was that also an add-on?

Councilman Clarke

All right. Where's Mr. Mezzaroba?

Mr. Mezzaroba

I'm sorry. 64 12/4/07 - WHOLE - BILL 070994

Councilman Clarke

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 --

Mr. Mezzaroba

I'm sorry, Councilman.

Councilman Clarke

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?

Mr. Mezzaroba

We have approximately 78 to 80 people at any one time that work for the actual Authority. They're state employees.

Councilman Clarke

What's the breakdown in terms of MBE, WBE, DBE?

Mr. Mezzaroba

Minority employees probably make up, I believe, about 65 percent of the total workforce.

Councilman Clarke

What percentage are in the management? 65 12/4/07 - WHOLE - BILL 070994

Mr. Mezzaroba

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.

Councilman Clarke

That's senior?

Mr. Mezzaroba

That's senior.

Councilman Clarke

And is there mid-level management?

Councilman Clarke

What's mid-level?

Mr. Mezzaroba

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.

Councilman Clarke

Minorities as in?

Mr. Mezzaroba

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?

Mr. Mezzaroba

And then there are directors and just --

Councilman Clarke

Are directors similarly diverse?

Mr. Mezzaroba

Yes. Yes.

Councilman Clarke

In terms of the projected new jobs, in the testimony it indicated it could be upwards of 15 permanent jobs? 16

Mr. Mezzaroba

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.

Councilman Clarke

So this number is not correct?

Mr. Mezzaroba

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

Councilman Clarke

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?

Mr. Mezzaroba

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

Councilman Clarke

And that 9 would be the contracted jobs? 10

Mr. Mezzaroba

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

Councilman Clarke

And you 19 anticipate that the ancillary jobs will 20 be approximately what?

Mr. Mezzaroba

Ancillary jobs, I would guess, are at the 20 level, new jobs.

Councilman Clarke

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

Mr. Mezzaroba

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

Councilman Clarke

I 12 understand that. 13

Mr. Mezzaroba

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

Councilman Clarke

What about 21 spinoffs? 22

Mr. Mezzaroba

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.

Councilman Clarke

That will include what, like hospitality-related jobs?

Mr. Mezzaroba

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.

Councilman Clarke

And the average salary, estimate?

Mr. Mezzaroba

I don't have -- I couldn't even guess at that.

Councilman Clarke

Do we know if they're --

Mr. Mezzaroba

The total 71 12/4/07 - WHOLE - BILL 070994 impact is about $12 million in wage tax.

Councilman Clarke

So they're traditionally, what, lower/mid-level in terms of jobs?

Mr. Mezzaroba

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.

Councilman Clarke

Okay. All right. Thank you. Thank you. Thank you, Madam President.

Council President Verna

You're welcome. I don't know if Councilman 72 12/4/07 - WHOLE - BILL 070994 DiCicco is in the room. (No response.)

Council President Verna

He's not. The Chair recognizes Councilman Ramos.

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?

Ms. Young

Yes, I do.

Councilman Ramos

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.

Mr. Mezzaroba

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.

Councilman Ramos

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?

Ms. Young

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.

Councilman Ramos

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.

Council President Verna

You're welcome. The Chair recognizes Councilwoman Brown.

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?

Ms. Young

I'm sorry, Councilwoman?

Councilwoman Brown

What contracts have already been released for the new Convention Center?

Mr. Mezzaroba

For the expansion? 82 12/4/07 - WHOLE - BILL 070994

Councilwoman Brown

Yes.

Mr. Mezzaroba

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.

Councilwoman Brown

What is the percentage breakdown?

Mr. Mezzaroba

Of the CM?

Councilwoman Brown

Yes. Well, let's go back to the design. What's the percentage breakdown there?

Mr. Mezzaroba

The overall percentage breakdown was approximately, I 83 12/4/07 - WHOLE - BILL 070994 believe, percent. 3

Councilwoman Brown

Okay. 4 And -- 5

Mr. Mezzaroba

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

Councilwoman Brown

Okay. So 11 that was the design, and then you went on 12 to? 13

Mr. Mezzaroba

The 14 construction management, the CM. 15

Councilwoman Brown

Yes. And 16 the breakdown there is? 17

Mr. Mezzaroba

And the CM was, 18 again, 20 percent for Angelo Perryman. 19

Councilwoman Brown

Okay. 20 Anything else? 21

Mr. Mezzaroba

And there is a 22 component for outreach being handled by 23 Universal and GPUAC. 24

Councilwoman Brown

Anything 25 else? 84 12/4/07 - WHOLE - BILL 070994

Mr. Mezzaroba

That's all that we've let so far.

Councilwoman Brown

Who is handling the demolition contract?

Mr. Mezzaroba

The RDA handled that.

Councilwoman Brown

So that means what?

Mr. Mezzaroba

So that means DGS contracted with the RDA to handle both the condemnation and acquiring the property, along with the demolition of the property.

Councilwoman Brown

And who received the contract?

Mr. Mezzaroba

Geppert was the successful bidder.

Councilwoman Brown

Any minorities with that contract?

Mr. Mezzaroba

Yeah. Twenty-eight percent was minority on the Geppert contract.

Councilwoman Brown

Define "minority." What does that mean? 85 12/4/07 - WHOLE - BILL 070994

Mr. Mezzaroba

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

Councilwoman Brown

So of the 7 MBE, WBE, the total number is 22 percent? 8

Mr. Mezzaroba

That's been 9 achieved thus far on Phase I of the 10 contract. 11

Councilwoman Brown

And what's 12 the breakdown there? 13

Mr. Mezzaroba

That I don't 14 know. Again, it's being run through the 15 RDA. 16

Councilwoman Brown

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

Mr. Mezzaroba

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.

Councilwoman Brown

So --

Mr. Diaz

Could I add to that, Councilwoman?

Councilwoman Brown

Please.

Mr. Diaz

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.

Councilwoman Brown

Okay. That's helpful. So Geppert received the demolition contract, and Geppert is what?

Mr. Mezzaroba

Geppert is --

Councilwoman Brown

Majority, minority, woman?

Mr. Mezzaroba

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.

Councilwoman Brown

All right. Thank you. So we're clear about the provision where there's a reporting-back step for this amendment?

Mr. Diaz

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."

Councilwoman Brown

Thank you. Thank you very much.

Mr. Diaz

Yes, ma'am.

Councilwoman Brown

Thank you, Madam President. 89 12/4/07 - WHOLE - BILL 070994

Council President Verna

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.

Council President Verna

Does everybody have a copy of the amendment being proposed? Thank you. Councilman DiCicco, are you finished? COUNCILMAN DiCICCO: Yes.

Council President Verna

Are there any questions by members of the Committee? (No response.)

Council President Verna

Do we have anyone else to testify on this bill? (No response.)

Mr. Diaz

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

Council President Verna

Yes. And also there were amendments proposed on Friday that I believe we were asking to be approved.

Mr. Diaz

I believe that the amendment that is before you today takes the place of the amendment that was requested by me orally on Friday.

Council President Verna

No. 11 There was another amendment.

Councilman Goode

Point of order.

Council President Verna

Yes. The Chair recognizes Councilman Goode.

Councilman Goode

Thank you. I also had --

Council President Verna

I'm sorry. Your microphone is not on.

Councilman Goode

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.

Mr. Diaz

Madam Chair, I think that's been accepted by the Authority. It will be added and, yes, indeed --

Councilman Goode

And when it's added, we can approve it.

Mr. Diaz

I'm sorry?

Councilman Goode

And when it's added, we can approve it.

Mr. Diaz

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.

Mr. Mezzaroba

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.

Councilman Goode

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.

Mr. Mezzaroba

Would it be possible to see a copy of what you were holding up?

Councilman Goode

Yes.

Mr. Mezzaroba

Thank you.

Mr. Diaz

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.

Council President Verna

Thank you. Councilwoman Brown, did you want to be recognized?

Councilwoman Brown

Yes. Is there a representative here from the Redevelopment Authority, Madam President? 95 12/4/07 - WHOLE - BILL 070994

Council President Verna

I'm sorry. I didn't hear you.

Councilwoman Brown

Is there a representative here from the Redevelopment Authority?

Council President Verna

No, there is not.

Councilwoman Brown

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?

Ms. Naidoff

The RDA is the agent of the Commonwealth.

Councilwoman Brown

So talk that through for me. That doesn't help me get to -- 96 12/4/07 - WHOLE - BILL 070994

Ms. Naidoff

They're the agent of the Commonwealth to handle the acquisition, condemnation of properties and the demolition at the site.

Councilwoman Brown

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?

Ms. Naidoff

That's correct.

Councilwoman Brown

Is that standard operating procedure for RDA?

Ms. Naidoff

I believe it is.

Councilwoman Brown

Al?

Mr. Mezzaroba

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.

Councilwoman Brown

Hired the 97 12/4/07 - WHOLE - BILL 070994 RDA. Okay.

Mr. Mezzaroba

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.

Councilwoman Brown

Okay.

Mr. Mezzaroba

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.

Councilwoman Brown

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

Mr. Mezzaroba

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.

Ms. Naidoff

Councilwoman, may I suggest that we will consult the RDA and we will provide information to you about the contracts that have been let?

Councilwoman Brown

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

Mr. Mezzaroba

That's correct.

Councilwoman Brown

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?

Mr. Mezzaroba

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.

Councilwoman Brown

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?

Ms. Naidoff

He's consulting with someone.

Mr. Diaz

I'm sorry.

Councilwoman Brown

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?

Mr. Diaz

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.

Councilwoman Brown

Thank you. Thank you, Madam President.

Council President Verna

You're welcome. The Chair recognizes Councilman Greenlee.

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 --

Council President Verna

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.

Councilman Greenlee

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.

Councilman Greenlee

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.

Councilman Greenlee

I certainly understand -- COUNCILMAN DiCICCO: That's my opinion.