Committee Hearing, April 22, 2009

They -- is18 Dr. Edelson here?19 (Witness comes forward.)20

This is Dr. Gail21 Edelson. She's our Associate Director for22 Children's Services, and she supervises23 the unit that has implemented that24 program.25 316 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1

Good2 afternoon.3

Hi, good4 afternoon. I'm Gail Edelson.5 To answer your question for the6 children, the respite services, which gets7 their funding from the State, provide kind8 of typical fun, but well-supervised,9 activities. So we have providers like the10 Boys and Girls Club provide activities for11 these children during different times in12 different parts of the City. There's a13 schedule.14 And we also have some providers15 that are already licensed, that are16 capable of providing foster care-type17 services, so they're already credentialed,18 we've had their criminal clearances.19 And so a parent who needs a20 break for an overnight or a weekend can21 also do that. And that's on our website.22 But this money comes from a23 grant from the State, and so we're limited24 by that.25 317 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1

So if I had a2 child with special needs in that regard, I3 could take them to the Boys and Girls Club4 and they could get a membership?5

They've been6 pretty generous. The only requirement is7 that the child already has a behavioral-8 health diagnosis, and there's a9 confirmation of that by their treatment10 provider. And then they could access11 those services.12

And then if I13 had a need to go out of town or need some14 intensified daycare, nightcare services,15 there is a provider that does those type16 of services?17

We do have that,18 but it's limited to like one or two19 overnights, and it's limited by the20 funding that we have, but we do have that21 available, and that information is on our22 website.23

I mean,24 that's a good beginning so --25 318 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1

No, it is a good2 beginning. We worked pretty hard to get3 that sort of flexibility for families so4 they could have some choice in the respite5 that they get.6

But my7 concern would be -- that's a good start8 and we need to build towards it 'cause on9 a lot of occasion, if I have a need to10 intensively supervise an individual,11 doesn't that prohibit me from going out12 and seeking employment and, like, having a13 life and other things that are associated14 with being --15

We would agree16 with you in terms of it would be in17 everyone's best interest if there was more18 support for respite.19 (Timer bell rings.)20

There is a21 separate program for individuals with22 intellectual disabilities that comes out23 of a separate pot for some respite as24 well.25 319 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1

So at the2 time the person turns 18, though, there's3 really nothing that kind of supports the4 family in their ongoing care-giving to the5 individual?6

Not in the same7 way that we're talking about.8

Okay.9

Okay.10

It shows what11 we need to strive towards.12 And that's all the questions13 that I have.14

Okay. Thanks.15

Thank you.16 Thank you, Madam Chair.17

You're18 welcome.19 The Chair recognizes20 Councilwoman Sanchez. And then after21 Councilwoman Sanchez, we'll here from22 Councilman Rizzo.23

Actually,24 Madam Chair, in light of the time, and I25 320 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 know we know these other departments.2 These are four critical departments. And3 we don't have enough time to discuss 'em.4 I'm sure we could do this for a couple of5 days.6 But I think it's important to7 know that when 25 percent of the City and8 36 percent of the children live in9 poverty, that there is a concern around10 how we best deliver these services and11 broaden our opportunity and reach.12 So I think it's important, and I13 don't think we have enough time today,14 Madam Chair, to really address these15 different departments the way we should.16 But that said, I just want to go17 on the record as it relate to Behavioral18 Health and thank you for the work that19 you're doing.20 And I want to be a true advocate21 for these services because 44 percent of22 my district lives under $20,000, and these23 are the folks that enter these systems.24 And I do want to be as proactive as we25 321 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 possibly can.2 So I am encouraged by the3 dialogue -- to reiterate what Blondell4 Reynolds said, the dialogue that's5 happening through departments and look6 forward to having policy discussions7 around how we can be more proactive as it8 relates to this.9 I think ultimately, our10 overburdened prison system and court11 system is going to be dependent on12 Behavioral Health. And it is in13 everyone's best interest that you be14 successful at what you're trying to do.15 And, in particular, Dr. Evans, I know16 you've worked really hard. You inherited17 a bureaucracy and some practices that were18 not always in the best interests of the19 people who we're trying to serve.20 But I would strongly encourage21 that between this budget cycle and the22 next budget cycle, we have some23 discussions around what policies we need24 to put in play to allow you to expand25 322 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 these services in a way that protects2 neighborhoods but also serves people in3 their neighborhoods in a way that's more4 proactive.5 So I'll leave it with that,6 'cause I know DHS is next and the Office7 of Special Services.8 And, again, Madam Chair, I don't9 think we have enough time to address these10 four departments on this one day.11

I12 agree with you.13

And I14 think it's unfortunate.15 Thank you.16

Thank17 you.18 The Chair recognizes Councilman19 Rizzo.20

Thank you,21 Madam Chair.22 Doctor, I enjoyed your23 presentation today; it was very24 enlightening.25 323 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 Before I ask my question, I just2 want to make sure I've got the right3 place. Is the Needle Exchange Program4 yours?5

Yes, sir.6

Okay. I7 have, in the past, been critical of the8 way the program has been managed. And I9 believe the dust has settled on this10 issue. I think that your team, especially11 the team that was here before you, dealt12 with it. And, again, I don't hear of any13 significant problems associated with the14 program.15 So is it here to stay? Is it16 being funded by the feds? Could you just17 give us a little idea --18

Sure.19

-- Of the20 Needle Exchange Program and where it is21 today? Because it's been very quiet, and22 I believe that's a result of good23 management.24

Well, I think -- we25 324 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 will accept that, but I want to -- we'll2 accept the compliments, but I have to give3 a lot of the credit to Councilwoman4 Sanchez, who has been on this issue, I5 think, since she took office.6

Mm-hmm.7

And through some8 dialogue with her and members of the9 community where one of the sites was10 located, I think we were able to come up11 with a resolution that I think met the12 community's needs, met our needs, and13 really was an example of a win/win14 situation.15 So I really think a lot of that16 credit goes to your colleague on us coming17 up with --18

So all that19 complaining all those years, I didn't --20 (Indiscernible; parties talking21 over each other.)22

All we had to do was23 have one --24

So all those25 325 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 years I brought these things to your2 attention, or at least many of the3 people's attention in this room, okay.4 You know how to hurt my feelings.5

No, I'm sorry.6

But the7 funding --8

The funding is -- we9 don't see any problem with the funding.10 We think that this is an enormously11 important program because it really12 prevents the spread of HIV and AIDS. And,13 as you know, particularly in Philadelphia14 and particularly in our minority15 communities, the rates of HIV continue to16 go up.17 And so to the extent that we can18 put these kinds of programs in place, it19 really helps to address that.20

Just my last21 little thought here. One of the issues22 was people coming from outside of23 Philadelphia to get their needles; have24 you been able to develop a way to keep25 326 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 that to a minimum?2

We're not hearing3 that. And that's really not an issue that4 we've heard as a real complaint. Most of5 the people are people from the community6 who are going to those sites.7

Well, there8 were times when the issue -- one of the9 complaints was the fact that people were10 coming to exchange their needles from11 outside.12

Yeah. That doesn't13 seem to be an issue right now. No, sir.14

It's good to15 hear.16

Okay.17

Glad the dust18 has settled.19

Yes. Thank you.20

Thank you,21 Madam Chair.22

Madam23 President, point of information.24

The25 327 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 Chair recognizes Councilwoman Sanchez.2

For the3 sake of Councilman Rizzo, and he can thank4 me for all those calls.5 But, actually, I do want to say6 that the Department of Behavioral Health,7 as it relates to those much-needed8 services, really just needed a partner to9 work with them when -- I think sometimes10 communities are unrealistic around their11 approaches to some of the situation.12 And I want to thank Dr. Evans13 and Roland Lamb, who's in the back,14 because my approach to this is, it's not a15 no; it's how do we do this in a way that16 protects everybody's interests, which17 sometimes is unpopular in the community,18 but I think it goes to what we were19 speaking about earlier.20 When you have a department that21 is looking at this proactively and where22 we can be strong advocates, things do23 work.24 But Dr. Evans should take the25 328 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 credit for that also, for just hearing us2 out and really working at a resolution.3 We don't have a permanent4 situation, but I think we got a better5 situation and are in line to situate these6 programs in a way that's better for7 everyone involved. So I think that we're8 getting there.9 Thank you, Madam Chair.10

You're11 welcome.12 Are there any other questions?13 (No further questions.)14

Seeing15 none, Doctor, thank you.16

Thank you.17

Thank18 you very much.19

I just want20 to say thank you to CBH and to my friend21 Dr. Evans and his staff for their good22 work.23

Thank you, thank24 you.25 329 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1

We2 will now hear from the Office of3 Supportive Housing.4 (Witness comes forward.)5

Good6 afternoon. Kindly identify yourself for7 the record.8

Good afternoon,9 Council President Verna --10

And11 proceed with your testimony.12

Good afternoon,13 Council President Verna and distinguished14 members of Council. 17 The primary objective of OSH is18 to plan and coordinate Philadelphia's19 response to homelessness. 10 Our for-profit minority11 participation rate is 80 percent. 24 The Fiscal Year '09 OSH budget25 333 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 reduction was $1,346,485 effective January2 1st of 2009, for a 50 percent Fiscal3 Year '09 savings of $673,243. 24 The City fully understood that25 334 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 these four providers would use a process2 to competitively secure and purchase3 security coverage from competing4 interested parties. 23 Department of Housing and Urban24 Development for the Homeless Prevention25 335 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 and Rapid Rehousing Program. Funds are to2 be spent over three years on homelessness3 prevention, homeless diversion, and rapid4 rehousing activities. 10 These funds trigger the need for11 an amendment to the City's Consolidated12 Plan, which requires that a resolution be13 approved by Council. 19 Fiscal Year 2010 proposed20 reductions in the Mayor's proposed budget21 include: The loss of seven OSH-specific22 staff positions through attrition,23 retirement, or vacancy, and change of one24 program-funding source from General to25 336 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 Grant Funds, for a total of $390,042 in2 budget reductions. 19 Should the Mayor's contingency20 budget be implemented, OSH will face a21 Fiscal Year 2010 total budget reduction of22 $3,806,360. 2 With each bed used three times annually,3 the net loss is 852 beds for homeless4 individuals and families. 13 A 10 percent reduction in14 transitional housing would result in the15 loss of 38 units of housing that provide a16 back door to emergency housing. 8 Last spring, the Mayor announced9 the creation of 700 new housing and10 treatment opportunities for homeless11 individuals and families. 16 These housing opportunities17 include:18 1. A partnership with the19 Philadelphia Housing Authority, 500 new20 housing opportunities, including 20021 Housing Choice Vouchers for individuals22 referred by the Department of Behavioral23 Health, and 300 opportunities for24 families. 6 2. With DBH, we have created7 125 new Housing First units for8 chronically-homeless individuals living on9 the streets of Philadelphia. Housing10 First is a national evidence-based11 best-practice model shown to result in12 housing stability for longtime homeless13 men and women with mental illness and/or14 co-occurring disorders; and 75 new units15 of low-demand housing (called Safe Haven)16 and residential drug treatment. S. 25 341 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 This award represents multiple-year2 funding for projects, creating 100 new3 permanent housing units, and annual4 renewal funding to sustain 2,200 existing5 homeless housing units. 8 In addition, OSH is pleased to9 report that, through collaboration with10 the School District and the Philadelphia11 Youth Network, we have implemented the12 Celebrate Education Initiative to provide13 gift cards of up to $75 each to K-through-14 12 students in emergency housing who have15 perfect attendance in the first quarter of16 the school year. 24

Thank25 342 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 you very much.2 The Chair recognizes Councilman3 Jones.4

Thank you,5 Madam President.6 Good afternoon, Miss Mintz. And7 thank you for your patience --8

Good afternoon.9

-- having so10 sit through the questions from our other11 departments.12 I wanted to ask a basic overall13 questions about the overall impact on14 homelessness and the current recession15 we're experiencing. Have you experienced16 an uptick in demand for housing under the17 Homelessness Office?18

We have continued to19 see an increase in families. We have not20 been able to determine as yet whether that21 was as a result of the recession or just22 as a general response to the lack of23 affordable housing in Philadelphia,24 because that has been a ongoing concern,25 343 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 even prior to the current economic2 decline.3

Has the4 demographic -- when you do the intakes,5 has the condition financially, are these6 working poor, historic poor? I mean, just7 economic kind of destitute folk based on8 the economy? I mean, what is your just9 gut sense, without any study being done?10

I would say that in11 general, the causes for homelessness are12 varied, and vulnerability to homelessness13 can be increased by mental illness,14 substance abuse, or job loss.15 With nearly 25 percent of our16 residents living in poverty,17 Philadelphia's poverty rate exceeds that18 of the U.S. average. In fact,19 Philadelphia's poverty rate is the third20 highest of the country's 20 most populous21 cities, with only Memphis and Detroit22 residents faring worse.23 Our unemployment rate is24 increasing faster than that of other U.S.25 344 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 cities and is expected to continue rising.2 And although we have a strong3 infrastructure and nationally recognized4 programs to prevent foreclosure,5 homeowners are struggling in these current6 times.7 So in the third quarter of 2008,8 Philadelphia experienced 5,378 properties9 with foreclosure filings, a 48.2 percent10 in the foreclosure rate, resulting in --11

Would you12 repeat that, please.13

A 48.2 percent14 increase in the foreclosure rate, which15 results in 1 in 303 households facing16 foreclosure.17

Now, to that18 regard, if I may interrupt you a bit.19

Mm-hmm.20

You have21 intervened on evictions in the past, and22 can you explain for this Council, for the23 record, how do you that?24

Sure. We currently25 345 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 operate a Homeless Retention Program, with2 a allocation of Housing Trust Fund3 dollars. We receive 5 percent of the4 annual Housing Trust Fund budget, and we5 utilize that funding to try to assist6 people to retain their existing housing.7 So for people who have8 delinquencies in rent, mortgage, or9 utilities, we provide direct cash10 assistance.11

And the12 rationale financially for that is, it's13 cheaper to keep in their current housing14 than to bring them into a system at this15 point.16

Absolutely. Our17 information for the first three quarters18 of Fiscal Year '09, we have assisted 28419 households, utilizing 347,867 Housing20 Trust Fund dollars.21 If that same number of22 households had been housed in shelter for23 that same period of time, six months, it24 would have cost us $4,529,000.25 346 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1

So the2 savings is roughly --3

4.1 million.4

So it's a5 good, sound policy.6

Absolutely.7

And one that8 we need to pursue.9

Absolutely.10

Now, quickly.11 You have the task similar to Mental Health12 to deal with three very different13 populations in your shelter population:14 Those who are economically disadvantaged15 based on some circumstance related to16 their economy, those who are mentally ill,17 and then those who are drug addicted.18

Correct.19

All in the20 same kind of population.21

Correct.22

How are we23 kind of -- is there a plan to separately24 treat each of those very distinct25 347 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 populations? because they have very2 distinct needs and very distinct3 motivations for getting out of the4 shelter. So how are you addressing that?5

We're addressing6 them through a collaboration with the7 Department of Behavioral Health. They8 provide behavioral health services in all9 of our emergency housing programs to10 address those residents who have11 behavioral-health issues through their12 connections and their (indiscernible) for13 Families Program, the expectation being14 that they can provide case management and15 link folks to their network of Behavioral16 Health supports.17 Additionally, through the18 collaboration we have for the Mayor's19 strategy, we have recognized that we20 needed to really have a different approach21 to those chronically street homeless22 persons. And so, the Mayor's strategy23 included an expansion of safe haven24 housing, which is usually the first step25 348 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 that a chronic street person with a2 behavioral-health diagnosis will make3 towards coming into the service system.4 DBH operates those programs through5 contracts with providers.6 They've also amended their7 existing treatment programs to accommodate8 long-term, chronic street homelessness,9 and have expanded the treatment term from10 what has been a traditional term to at11 least one year, recognizing that folks12 with long-term homelessness need13 additional time.14 (Timer bell rings.)15

And, finally,16 you have -- you receive Section 817 certificates from the Philadelphia Housing18 Authority every year to kind of transition19 people into long-term housing. And has20 that gone up or gone down in the past21 year?22

For the current23 fiscal year, that is the first time that24 we've had a formal partnership with the25 349 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 Housing Authority under the Mayor's2 strategy, which provided us with 5003 opportunities, of which we were able to4 have 300 for families and 200 for singles.5 It has been a wonderful6 partnership. We have worked very hard to7 be a good partner with the Housing8 Authority to demonstrate that we can9 utilize this service, that we can make10 appropriate referrals and support our --11

The same12 criteria for the general population or a13 little stricter? How do you --14

Same criteria, with15 us taking the time to review the family's16 current housing situation. And what we17 agreed to do is to look at families who18 are currently in transitional housing, who19 have demonstrated the ability to live20 independently and to make a referral of21 folks from transitional to the PHA22 opportunities.23 And then when we free up those24 transitional slots, we can move families25 350 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 from shelter into those vacancies.2

So out of the3 Stimulus Package -- and this is my final4 question --5

Mm-hmm.6

Out of the7 Stimulus Package, you received a8 allocation, and how do you plan on9 applying that to your mission?10

With the Stimulus11 allocation, we believe that it will give12 us a wonderful opportunity to modify the13 front door into homelessness. It14 basically allows us to expand the homeless15 prevention model that I talked about that16 we do with the Trust Fund dollars and then17 add a couple of different components.18 One is, we can we can now take19 that homeless prevention program citywide.20 The Housing Trust Fund Program is targeted21 to zip codes where we have a high number22 of households who typically come into23 shelter. With the Stimulus, we can expand24 it citywide and pick up all of the other25 351 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 zip codes that we don't currently service.2 We can also create a diversion3 program so that when singles and families4 present themselves at our intake, we can5 do an analysis of that family and6 determine if they've been living in the7 community and, with some housing8 assistance, can be maintained in the9 community. We can divert them from ever10 coming into the homeless system.11 And then, lastly, the allocation12 also provides us with funding to rapidly13 rehouse homeless individuals and families14 who have been in shelter for at least six15 months, to get them back into housing in16 the community.17 We have not had those two18 components be available to us in the past.19 And so we believe that this will give us20 an opportunity to actually reduce the21 number of people that we are bringing into22 the shelter system.23

Thank you,24 Madam Chair.25 352 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1

You're2 welcome.3 I'm fair, right?4 Good afternoon.5

Good afternoon.6

On of your testimony, at the bottom, you talk8 about your '09 reduction and the programs9 you lost, the ability. You eliminated one10 emergency housing program and a reduction11 in the case management and a reduction in12 one transitional housing program.13 I mean, how do you fill the void14 when all of those programs are eliminated?15 And are you able to use some of the16 funding that you receive Grants Fund for17 the case management?18

Unfortunately, we19 are not able to replace the case20 management with the Stimulus funding. And21 it has been a substantial challenge to our22 system.23 With the small emergency housing24 program that we closed, it was housing ten25 353 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 individuals. So we were able to absorb2 them and place them into other3 opportunities.4 The case management actually5 impacted nine of our emergency housing6 facilities. And it basically provided an7 opportunity for us to prioritize who8 needed to have some level of follow-up9 services.10 And to the credit of many of the11 emergency-housing providers, they asked12 how we would allow them to have some13 flexibility in modifying their budgets to14 absorb the cut but still retain some15 semblance of follow-up capacity. And so16 we've worked with them to set up a tier,17 where those folks who are most in need18 will get the assistance. Those folks who19 have exhibited some more independence will20 be folks that we will try to provide more21 opportunities to move them into other22 opportunities.23 But it is certainly a challenge24 to the system. It is not an impact that25 354 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 has been easily absorbed by our contract2 providers.3

Now, you4 talk about the 62 million-plus Grant5 Funds.6

Yes.7

Are they8 the funds that are coming from the9 Stimulus money --10

No.11

-- or are12 the Grant Funds from HUD?13

The --14

All the15 programs you outline on and 3.16

Yeah. The Grant17 Funds are grant funds that we typically18 receive on an annual basis to support our19 budget. And so, we receive State and20 federal grants that make up about 6221 percent of our budget.22 The Recovery money is in23 addition to that. The difference is that24 the Recovery funding is aimed at trying to25 355 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 prevent people from ever becoming homeless2 in the first place, predominantly.3

I'm not --4 I haven't read the details; I'm speaking5 just off the cuff here.6 On , you talk about you're7 going to get $21.4 million from the Office8 of Housing for the HPRP program.9

Yes, yes.10

And then at11 the bottom, you talk about -- no, on the12 next page, you talk about -- where is it.13

The McKinney Grant?14

Yeah.15

Okay. The McKinney16 Grant is an annual grant that we compete17 for nationally that provides funding for18 us to locally create more permanent19 housing programs and to sustain the20 projects that have been funded over the21 past twelve years that this program --22 national program has been in creation.23

Mm-hmm.24

So every time we25 356 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 receive a McKinney Grant to create a2 transitional or a permanent housing3 program, that program has the opportunity4 to go in for ongoing operating support on5 a annual basis.6 And we work to maximize the7 grant's potential to create new8 permanent-housing units every year. So9 that's yet another competitive opportunity10 we have to bring funding to Philadelphia11 to address the homeless.12

Now, is13 that the partnership that we have with14 PHA?15

No. That's separate16 from that.17

And so your18 partnership with PHA, what does that --19

The partnership with20 PHA has provided us with a formal21 agreement to provide us with 200 housing22 vouchers for single persons and 30023 housing opportunities for families to move24 into conventional PHA housing25 357 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 opportunities.2

Okay.3 Thank you.4

You're welcome.5

I will go6 to the next person, and that would be7 Councilman Goode.8

Thank you,9 Madam Chair.10 Good afternoon, Miss Mintz.11

Good afternoon,12 Councilman.13

I'd like to14 take a different approach to the questions15 I asked earlier of Dr. Schwarz and16 Dr. Evans regarding business diversity.17 But first, I want to18 congratulate you on reaching a 80 percent19 participation rate --20

Thank you.21

Of22 disadvantaged businesses.23 But I'd like to focus on your24 testimony where it says: "OSH participated25 358 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 in a citywide negotiated security contract2 for security services at four sites. As3 part of our rebalancing response, OSH4 requested the four nonprofit providers5 join other providers providing their own6 security coverage."7 I guess my question is: That8 security coverage, when you were9 responsible for it, was it a minority-10 owned firm?11

Yes.12

And those13 nonprofit providers were still seeking to14 secure the services of that minority-owned15 firm?16

Two of the four did.17

So I guess18 the context I'm trying to provide is, if19 you have 125 contracts --20

Yes.21

-- and you're22 familiar with those contracts and familiar23 with the for-profit contract opportunities24 within those contracts, similar to the way25 359 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 you're able to somewhat guide those four2 nonprofit providers, the fact that there3 was a qualified minority-owned business to4 provide that service, there are other5 opportunities that you, I believe,6 probably can identify within those 1257 contracts?8

Yes. And of the 1259 contracts that we have, 10 of them are10 with for-profit organizations, and the11 other 115 are all nonprofit.12 Additionally, of the for-profit13 organizations, two of them are minority.14

Mm-hmm.15

And, in general, our16 total number of organizations that we17 contract with who are minority-based are18 8, for a total of our budget of19 $4,111,000.20

I guess my21 question is: In those nonprofit provider22 contracts, all of it doesn't go toward23 salary and benefits, I assume, but there24 is also products and services, which they25 360 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 procure themselves, which you're familiar2 with what those products and services3 would be.4 Is it possible for you to5 identify subcontractors and the6 availability of subcontractors, and then7 set a goal for them in terms of8 disadvantaged business participation?9

We could.10 I will say, though, that many of11 our providers do not subcontract out for12 service 'cause they're traditionally13 operating facilities and programs. So it14 would be -- goods and services would be15 the bulk of their subcontracting16 opportunities.17 In many cases, for example, with18 food items, we do provide them with many19 of the food products so that the20 opportunities are limited.21 But, yes, we could do that.22

Okay, thank23 you.24

You're welcome.25 361 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1

Thank you,2 Madam Chair.3

The Chair4 recognizes Councilwoman Blackwell.5

Thank6 you, thank you, Madam Chair.7 Good afternoon, Miss Mintz and8 our whole OSH family.9

Good afternoon.10

Thank11 you for your testimony.12 Obviously, we hated the -- and I13 believe that some departments should be14 exempt from cuts, and this is one of them.15 Obviously, I feel that we need more16 counseling services and not less.17 Having said that, I would like18 to thank Dainette and the whole team.19 My favorite program is Home20 First, because many of you, my colleagues,21 will remember a young lady who used to22 come in and come to the side of the gate23 and always ask for money. And she kind of24 looked like a person with problems. Her25 362 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 teeth had rotted out, her hair was2 different lengths, and sometimes she came3 be with bundles and sometimes she came4 with a bible sometimes; it depended on her5 state of mind. And sometimes she was male6 and sometimes she was female.7 But Tanya was a person that8 Lucien and Dave Richardson met back in9 1973, when they were members of the State10 House. And it took her a lot of years to11 accept Lou's passing after she lost Dave.12 And so she continued to come, and we were13 her family, her surrogate family, until14 she passed away.15 But when she passed away, the16 one triumph of her life was that she was17 in the Home First Program. And when they18 found her, when she passed away, she was19 in her apartment, because they have a20 program that pays folks' bills, that helps21 them manage their money, pays their rent,22 trains them how to live. And she was23 found curled up in her bed, where she had24 passed away.25 363 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 So for that alone, I will always2 be eternally grateful for OSH, OESS, and3 Rob Hess, whose daughter works for us,4 before that.5 So we want to thank you for the6 job that you do. It's not easy. I think7 it was unfair for the City to cut funding8 for counseling that we need, but certainly9 we support you and we support OSH.10

Thank you very much.11

Thank12 you.13 Thank you, Madam Chair.14

Thank you,15 Councilwoman Blackwell.16 We certainly we know you're a17 strong supporter for this office.18 COUNCILWOMAN BLACKWELL:19 Absolutely.20

And for the21 services they provide to the homeless.22 The Chair now recognizes23 Councilman Jones.24

Thank you,25 364 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 Madam Chair.2 Two quick questions. One, you3 mention in your testimony that you had4 approximately 125 different subcontracts5 for service-providers?6

That's 1257 contracts, not subcontracts.8

Right. And9 how many of them are for actual beds?10

Let me see if I have11 that breakdown.12 I don't have that.13

Okay, that's14 all right. I mean, are they coming to15 conclusion, fruition, to their end, many16 of them? Are you about to renew?17

Yes. Our contracts18 are an on a annual base.19

So you20 contract with them on a annual basis.21

Yes.22

And so23 there's an evaluation process on how to24 kind of hold them to a certain standard?25 365 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1

Yes.2

Okay. And I3 say all of that to say -- and I think it4 might have been Blondell Reynolds-Brown5 who commented on the fact that we, as6 individual District Councilpeople and, to7 a lesser extent, at-large, have to bear8 some of the burden for housing the9 homeless.10 Now, everybody calls that --11 what's that called, the namby -- not in my12 backyard?13

NIMBY.14

NIMBY, right.15 "Namby Pamby" is what I say.16 (Laughter.)17

But we have18 to stand up and step up to the plate. If19 we want these services to be provided,20 then we have to house them to some degree21 and take some of the slings and arrows22 from our constituents about putting23 them -- but putting them in a tasteful way24 in neighborhoods, because I've been25 366 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 through some of the facilities, and you do2 a yeoperson's job of pulling those beds3 together, because the alternative is being4 under a bridge trestle. So I understand5 that.6 But we need to give a little7 dignity to people and a little more8 structured exit strategies. And I think9 we do that by upping the standard by which10 we subcontract these services out.11 So I say all of that to say that12 I, for one -- and everyone in this Council13 should be challenged, except for Maria14 Quiñones-Sanchez, because she has more of15 these facilities than anybody else in the16 district.17 So you've done your share and18 some.19 (Timer bell rings.)20

But I join21 you in trying to find a way to diversify.22 And you have some great facilities, and23 I've had --24

Thank you.25 367 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1

--2 consultants and clients visit both of3 them, and they find then to be -- but we4 can do better in some other circumstances.5

Mm-hmm.6

But the only7 way we do better is if each of us, as8 individuals, step up and support you when9 you try to establish a new facility.10

Thank you.11

Thank you,12 Madam Chair.13

Thank you14 very much.15 Miss Mintz, how many of your16 staff people are in this room? Could they17 stand?18

Could you stand?19 (OSH staff members stand to be20 recognized.)21 (Applause.)22

Thank you.23 Thank you very much.24 The Chair recognizes25 368 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 Councilwoman Sanchez.2

Thank3 you, Madam Chair.4 Thank you, Miss Mintz.5 In relationship to your6 rebalancing adjustments in your budget,7 that impacted your ability to contract8 services out, right?9

It impacted our10 ability to provide case management. We11 did not have to eliminate any contracts,12 but we had to reduce contracts for those13 providers that also had allocation of14 funding for case management.15

Who made16 the policy decision that they were going17 to have the providers do the contracting18 for security and other services?19

I did.20

You made21 that as part of your reduction?22

Yes.23 COUNCILWOMAN SANCHEZ:24 Contribution?25 369 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 When you made those decisions,2 did you realize that those employees are3 people that live in the City of4 Philadelphia also, and that they were5 going to be severely impacted?6

I presumed that all7 of the guards lived either in the City or8 close to the City, but I will tell you9 that my primary objective was trying to10 not have to eliminate any emergency11 housing beds.12

How much13 did we save through those measures?14

We saved $350,000.15

All16 through the security only?17

Yes.18

And how19 many people were employed through those?20

There were, I21 believe, 28 full-time positions.22

Now, when23 you asked your subcontractors to assume24 this cost, were you under the assumption25 370 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 that they would honor the bargaining2 agreements that some of them had as it3 related to their workers?4

That was a5 presumption.6 And I will say to you that at7 the time OSH was participating in the8 citywide contract, we were not aware that9 there had been an agreement between the10 entity that the City held a contract with,11 a separate union representing the12 security.13

So you14 were unaware of the bargaining agreement?15

Yes.16

In light17 of the fact that your policy decision has18 now impacted these salaries of these19 folks, almost 40 to 50 percent and no20 benefits, do you think that the $350,00021 in savings by potentially underemploying22 28 full-time -- that's what you're23 claiming is 28. I think it's a little bit24 more but...25 371 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1

Yes, 28 --2

It's 283 folks.4

-- is our number.5

It's 286 folks.7 Because we, as a city and as a8 policy, one of the things, going back to9 Wilson Goode's point and Councilwoman10 Blondell Reynolds, one of the ways that11 we're going to reach our goal of -- for12 disadvantaged and minority firms is that13 some of these contracts have to be14 debundled.15 And in some cases, the City may16 look or appear to be paying more but, in17 fact, they're not, because they're18 creating capacity on minority firms to do19 this work.20 Do you not think that that goes21 into conflict with the City's policy to22 try to increase minority participation?23

I would say to you24 that my priority is homeless housing beds.25 372 4/22/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1

Mm-hmm.2