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.)