Committee Hearing, April 19, 2004

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE OF THE WHOLE - - - Room 400, City Hall Philadelphia, Pennsylvania Monday, April 19, 2004 9:45 a.m. - - - BILL 020455 - An Ordinance adopting the Operating Budget for Fiscal Year 2005 - - - PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JACK KELLY COUNCILMAN JAMES F. KENNEY COUNCILMAN JUAN F. RAMOS COUNCILMAN FRANK RIZZO COUNCILMAN FRANK DiCICCO COUNCILWOMAN JANNIE L. BLACKWELL COUNCILMAN MICHAEL A. NUTTER COUNCILMAN DARRELL L. CLARKE COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN MARIAN B. TASCO V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, PA 19103 (215) 561-2220 I N D E X BILL NO. 020455 Philip R. Goldsmith, Managing Director, Office of the Managing Director-------- Sylvester M. Johnson, Commissioner, Philadelphia Police Department--------- 269 Harold B. Hairston, Commissioner, Philadelphia Fire Department----------- 381 - - - 3 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

Good morning, everyone. This hearing before the Committee of the Whole will come to order. Our first witness today will be Mr. Goldsmith, the Managing Director.

Good morning, President Verna and members of City Council. I am Philip R. Goldsmith, Managing Director. I am here to present testimony on the proposed Fiscal year 2005 Operating Budget for the Office of the Managing Director. 7 in the Grants Fund. 65 percent from Fiscal Year General Fund estimated obligations. Given the cutbacks we have requested of other departments, I believe it is important for the Managing Director's Office to also take the lead in scaling back. The mission of the Managing Director's Office is to ensure that the City of Philadelphia is a place where people want 4 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 to live, work, study, play, and visit by ensuring that city services are delivered effectively and equitably. We try to accomplish this mission by prioritizing and communicating key administrative initiatives, by monitoring and analyzing the performance and progress of those initiatives, and by serving as a catalyst to encourage cooperation, collaboration among city departments. We believe that the whole is greater than the sum of the parts. And, finally, we aspire to create a culture that recognizes that the role of government is to serve the needs of our citizens. We have had, in my judgment, many accomplishments in Fiscal Year '04. Let me mention a few. During Fiscal Year '04, the city extinguished a persistent subsurface trash fire and removed thousands of tons of trash at the illegal dump site on Hog Island that was there for 20 years. It was an environmental 5 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 and safety risk and an unnecessary eyesore. Today Hog Island is clear of debris. It has been greened. Thanks to a grant from the State Department of Environmental Protection and our ability to complete the work on time and under budget, this was done without expending local tax dollars. I appreciate the support that both you, Madam President, and Councilman Rizzo showed during this project. The Managing Director's Office frequently coordinates multi-agency responses to major incidents. As you know, one such incident was a fire and explosion at the intersection of Ogontz and Olney at rush hour on February 13, 2004. Thanks to the cooperation of many agencies and departments, this intersection was able to be reopened in record time. And, most important, there was no loss of life or injuries. The Managing Director's Office has significantly reduced the amount of city cell phones. As a result, the city removed nearly 6 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 1800 cell phones from service and reduced cell phone costs by a projected 60 percent in Fiscal Year '04 over the Fiscal Year '03 costs. In the Managing Director's Office, our Fiscal Year '04 costs will be reduced by 50 percent from Fiscal Year '03, and 70 percent when compared to Fiscal Year '02. Again, we have tried to lead the way. Working with Fleet Management, the MDO began the first phase of a citywide fleet reduction plan to reduce the city's fleet size by approximately 400 vehicles. The first phase, a reduction of 50 vehicles, including sedans and sports utility vehicles, took place on April 1, when employees were instructed to relinquish their cars. By using Philly Carshare, our employees will be able to obtain a hybrid fuel economical vehicle, when necessary for as short a period of time as perhaps 15 minutes. We are the first municipal government in North America to use this concept. It is a victory 7 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 for our taxpayers and our environment. In response to growing concerns about school pedestrian traffic safety, the Managing Director's Office, along with the Office of Secretary of Education, convened a School Safety Zone Task Force. The mission of the task force is to assess and improve school pedestrian traffic safety zones around the city's public, private, parochial, and charter elementary schools.

The task force consists of representatives of the Police Department, Streets Department, Traffic Court, School District, the Managing Director's Office, the Planning Commission, the Archdiocese of Philadelphia, and the Mayor's Office. I will talk more about this task force and its work at a hearing that I think we are having on Wednesday. In responding to this City Council after the tragedy in New York City's Council chambers last summer, we installed metal detectors on the fourth and fifth floor 8 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 corridors of City Council chambers and installed Plexiglass along both sides of the mezzanine level of Room 400. Other security improvements were also made in the wake of 9/11. The Northeastern SEPTA tunnel entrance into City Hall was closed and courtyard fencing was put around to protect our electrical and mechanical systems. In the near future, you will see additional security measures. But, as we all know, we can never create a foolproof system, particularly in a building where the public's business is being done. But, clearly, we have to do our best to reduce our risks. With the support of several City Council members, Councilman O'Neill, Councilman Rizzo, Councilman DiCicco, Councilman Mariano, among a few, the Managing Director's Office implemented a plan to crack down on illegal posting of commercial signs on public property, including utility poles, trees, and other city- and utility-owned structures. 9 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 To date, over 3,000 illegal signs have been removed from neighborhoods and major arteries. But anyone that drives around our city knows we still have work to do. In an effort to improve communications with the people we serve, we have contracted with a company called SwitchReach to communicate directly with residents to alert them to city initiatives in their neighborhoods. SwitchReach uses a predictive dialing telephone technology to call citizens and leave brief informational messages. For example, we used this technology to alert residents to trash collection changes during Hurricane Isabelle and about parking restrictions during the filming of movies such as National Treasure. This has been a great innovation that the Streets Department originated and is now being shared by all other city departments. It represents our commitment to tell people beforehand what's going on in their neighborhoods. 10 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 We began an honor box management program for the Center City area to enforce an ordinance this Council passed many years ago. These honor boxes have become sidewalk blight, chained to city property, often broken and improperly placed and often filled with garbage. The ordinance requires that publishers obtain licenses and adhere to standards dictating where and how honor boxes can be placed on city sidewalks. Working together with the publishers, we have had excellent compliance. We believe our Center City streets look better as a result, and there is still work to do there. I would encourage City Council to consider expanding the coverage of this ordinance to other areas of the city. The Managing Director's Office now coordinates a new program called Philadelphia Intergovernmental Scrap Yard Initiative. The city agencies involved include Police, Fire, Water, Commerce, Licenses & Inspections, Law, 11 OPERATING BUDGET - BILL NO. S. Environmental Protection Agency. An inspection of two illegal scrap yards resulted in the imprisonment of one person, the closure of an illegal scrap facility, the closure of illegal and contaminated housing, and the cleanup of a pile of over 12,000 tires. Working with the Scrap Dealers Association, the city will be holding a compliance seminar this June to further assist licensees and reputable scrap dealers in meeting their code enforcement responsibilities. Our citizens should not have to endure illegal and potentially unsafe conditions in their neighborhoods.

Two new sports stadiums were opened this year. The Managing Director's Office, working with many others, helped ease the transition with new parking and traffic patterns. 12 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 Veteran's Stadium was also imploded safely without a hitch. While the actual implosion lasted only 62 seconds, it represented many months of hard work among the city, the Phillies, contractors, and our neighborhoods. This was truly a team effort. And I personally thank you, Madam President, and Mr. McPherson, for your support and assistance. These are just a few of the highlights of last year. And I thank our city employees for their contributions. I do not believe that city employees get the credit they deserve for the hard work they do. Too much attention goes to a small minority who don't pull their weight. We are a much better city for the hard work of our dedicated employees, particularly when our departments and agencies work together. As for Fiscal Year '05 the Managing Director's Office is committed to ensuring that our departments are run in the most effective manner possible and that our commissioners exercise leadership in grappling 13 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 with our difficult fiscal situation. In the area of overtime, I have charged Commissioners with improving management of overtime usage. They as Commissioners are accountable for their responsible use of overtime. This accountability cannot be delegated to subordinates. By the end of Fiscal Year '04, we will have reduced overtime by $17 million from Fiscal Year '03. For Fiscal Year '05, we need to make further reductions. To that end, several initiatives are underway. Police Department reimbursable overtime is approximately $6 million annually. The department has circulated new policies and procedures to all officers and tightened administrative procedures to ensure that all police details are billed to the requesting company. The Managing Director's Office now receives monthly receivable aging reports on delinquent accounts. We are working with the Police and Revenue Departments to centralize 14 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 billing and collections. Outstanding bills have been turned over to the Law Department for action. The Police Department has been directed to no 6 longer provide services for those in arrears. 128 companies are no longer receiving such services. The court system, working with the City Administration, is implementing several initiatives to reduce Police Department court-related overtime. The Police Commissioner has reinstated court liaison officers, who have greatly improved the scheduling and coordination of officer appearances. The court system has staggered listings to allow more time for notice of cancellations, implemented realtime data entry in courtrooms to keep scheduling current and accelerated to trying of cases. An upgraded MIS system will allow the courts to further improve officer scheduling. We will be inviting the courts, the District's Attorney's Office, the Police 15 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 Department, and the City Solicitor's Office to participate in a work group to develop a series of recommendations for the Criminal Justice Coordinating Commission to further reduce overtime expenditures through improved operations. I must stress, however, that while the cost of court overtime is charged to the Police Department, it can only go be solved by cooperative and collaborative process among all participants in the criminal justice system. In the area of grants management, we have established a grant management center in Fiscal Year '04 to maximize the city's utilization of available grant funding opportunities through a collaborative approach with city departments, agencies, community groups, and the private sector. For Fiscal Year '05, the goal of the GMC is to increase the city's receipt of competitive grant funding in this year of budget cutbacks.

We are about to embark on a unique 16 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 partnership with the William Penn Foundation and the University of Pennsylvania. These organizations will assist the city, both government and nonprofit organizations, in building the permanent capacity to obtain an increasing share of grant funding opportunities. We are grateful to the William Penn Foundation for funding this project. In the social services departments, which are 85 percent funded by grants and other federal, state, and private sources, we are continuing to carefully examine how we use the funding to maintain or enhance core services. Since 2002, a coordinated approach to allocating grant dollars has been in place. The Fiscal Year '05 Operating Budget contains $21 million of grants and other outside funds that have been targeted to key priorities. 5 million of funding for children and families in shelters through the Department of Human Services needs-based budget. 17 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 Recreation Department programs received $3 million of TANF funding and $400,000 from the Human Services Development Fund. 6 million for the Forensic Intensive Recovery program, known as FIR, and $1 million from community services and behavioral health grants for reentry services for inmates leaving the prisons. You will hear more about these programs in the testimonies of the various operating departments. In the area of special events, the Managing Director has worked with the department staff to identify actual costs for special events. In some cases our costs have not been updated for a decade. Our true costs will now be captured by department and event and reported routinely to my office. This information will allow the city 18 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 to bill event sponsors for actual costs where appropriate, and to make decisions on ways to manage events to limit expenditures. We have no choice. From 1993 to 2003, the number of special events receiving city services more than doubled, from 154 to 331 annually. During the same period, the number of events for which the city received no reimbursement increased from to 219, a 1200 percent 12 increase. 5 million. 1 million. 16 In the area of quality of life, our 17 office plays a major role. The Managing 18 Director's Office supports the Mayor's Neighborhood Transformation Initiative by coordinating and implementing quality of life programs. The Managing Director's Community Life Improvement Program, known as CLIP, was established as a pilot program in the 8th Councilmanic District. It was designed to 19 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 improve the quality of life in the city's neighborhoods through public education, code enforcement, and abatement of quality of life violations. The violations addressed by CLIP include high weeds, dumping on private property, graffiti, vandalism, and noncompliance with the trash collection schedule. Since its inception in Fiscal Year '02, compliance rates in the CLIP areas for nuisance violations has increased from 34 to 85 percent. We will now expand our enforcement and abatement initiatives citywide. We will begin strategically expanding enhanced enforcement and abatement throughout the city by targeted zip codes beginning this summer. We will have a four-pronged approach: One, education; two, warning; three, enforcement; and four, abatement. Education will focus on outreach, empowerment, and partnerships with the community. Enforcement officers, inspectors 20 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 will respond to quality of life complaints and issue warnings to violators. Failure to adhere to the warnings to correct property maintenance code violations will result in enforcement, which consists of the issuance of a code violation notice, or a License and Inspection notice.

As a last resort, but one necessary, we will abate L & I property maintenance code violations that have not been abated within the specified period. Property owners will be issued an invoice for the cost of the city's abatement and we will go after them for collection. We will work closely with City Council to determine which neighborhoods within each zip code will be proactively targeted and for what reasons. We will then address these areas and issues in a coordinated, multi-agency effort to be able to move quickly, nimbly, and efficiently. I urge City Council to increase fines from $25 to $75. If we are going to get the attention of those who are spoiling our 21 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 neighborhoods, fines have to cost more than a mere parking ticket. Deputy Managing Director Tom Conway will be responsible for implementing this program and he will have my full backing. In vacant lot painting, we will continue with that program as we have in the past. The vacant lot crews will continue to prepare lots for greening and will clean lots based on citywide maintenance schedule. Because the program has been in existence for several years, with cleanings taking place on a regular basis, the heavier debris that cannot be picked up by crews with hand or light-duty equipment is now not as prevalent. The Anti-Graffiti Program is also an important quality of life initiative. And consistent with the past five years, the Fiscal Year '05 program expects to provide $68,000 to approximately 375 organizations and businesses for 6,500 gallons of paint and $22,500 for related supplies. Weed and Seed is a program working 22 OPERATING BUDGET - BILL NO. S. Attorney's Office using federal grant dollars. This program will continue, and this year we will try to partner with the Citizens Empowerment Zone efforts. Operation Town Watch is also a very important community program helping us to combat crime. Given our focus on school violence, operation Town Watch will expand the Safe Corridor Program and use statistical data from the police to initiate strategic volunteer recruitment throughout the city. This is just one initiative we are using working with the Police and School District to protect our children from the terrible violence that has occurred. In addition to our public schools, Commissioner Johnson and I, at the urging of Mayor, have met with the archdiocese to pledge our full support and cooperation. In the summer of 2003, the Managing Director's Office launched Global Philadelphia to improve language accessibility between 23 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 diverse linguistic communities in the city. Both Title of the Civil Rights Act of 1964 4 and an executive ordinance signed by Mayor 5 Street in the fall of 2001 require the city to 6 provide meaningful access to limited English proficient individuals. Census data indicates that approximately 8 percent of all city residents have limited proficiency in English, and surveys estimate approximately 10 percent of citizens utilizing city services are LEP. L & I suggests that perhaps 30 to 50 percent of people requesting permits and licenses are LEP individuals. Through an allocation of $180,000 in Fiscal Year '04 and $500,000 in Fiscal Year '05 from a state grant, the Managing Director's Office will coordinate strategic investments to increase language access. Eight departments are the initial focus of Global Philadelphia: Fire, Police, Health, Human Services, Prisons, Recreation, OESS, and L & I. These investments will include 24 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 translation of vital documents into languages other than English, deployment of interpreters and staff training. Through Global Philadelphia, in a partnership with community and advocacy groups, the Personnel Department is also involved in an effort to enhance recruitment of multi-lingual staff into the city work force.

I might add that my office will be working with Councilman Kenney, a champion of Global Philadelphia, to make sure that we are coordinating our efforts with other initiatives throughout the city. This is an issue not only required by law, and not only based on basic fairness, but also an economic development opportunity for the city. The Managing Director's Office directs the operations of the Office of Emergency Management. While emergency management historically focused on major fires and other such emergencies, the world we live in has changed dramatically the nature and 25 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 urgency of this work. OEM actively seeks federal homeland security funds to support the city's increased terrorism preparedness and homeland security costs. An urban areas security initiative grant is being used to fund a regional communications inoperability project and to continue equipping and training Police and Fire to the threats of terrorism. In Fiscal Year '05, the urban area security initiative funds, which are expected to total $24 million for the region, will be used to address various command and control and security and government continuity issues. And we will continue to fight for Philadelphia getting its fair share, which means more money of the regional dollars. The objectives of the Managing Director's Municipal Energy Office are to promote the efficient use of energy at city-owned facilities, to reduce energy costs, and develop and promote sustainable energy strategies. OPERATING BUDGET - BILL NO. 020455 - 4/19/04 In a memo dated April to all commissioners and department and agency heads, I asked them to take a more hands-on approach to save energy, including turning off computers, printers, copiers, and of course lights at the end of the day. Each office will be sent a monthly update on electric usage at their facility. Departments that do not reduce energy costs will be penalized with less money in future budget allocations. And I have no doubt that Councilman Rizzo will ask me why the lights were on on Ben Franklin Parkway at 3 o'clock on Saturday afternoon. And I have asked the same question, Councilman Rizzo, and I hope to get an answer soon.

Do you want to know the answer? I think they were working on them, testing them.

Thank you. Over the next few weeks, you will be hearing testimony from the departments for which I provide oversight. Some of the cuts 27 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 may seem painful and some may seem inconsequential. We are leaving no stone unturned. Let me assure you that we are committed to maintaining and improving core services. But to do that, it may mean weaning ourselves from noncore services that we can no 9 longer afford. There is nothing being done here that has not been done elsewhere in the private or public sectors. In fact, I believe our medicine is not as nearly as bitter as the medicine that has been used in other cities; such as, New York and Chicago and Pittsburgh and Detroit and Cleveland and Minneapolis and Baltimore. During the roaring 1990s, it was easy to overlook some of our challenges, but fiscal times have changed at the federal, state, and local levels throughout this nation. For Philadelphia to increase its competitive viability, I believe the time has come to take tough but prudent actions, and it 28 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 is our commitment to work with you to make these adjustments. At this time I will respond to your questions and suggestions. Thank you.

Thank you very much. The Chair recognizes Councilman Rizzo.

Thank you.

For the first go-around, each Councilman will be given five minutes.

Mr. Managing Director, we had this conversation many months ago. And I know it is something that's bothering you, not just my concern. I visited a specific community this weekend, and I noticed that the utility mark-outs were worse in this particular community. What I mean by the utility mark-out -- I know you know what I mean, but for the rest -- the spray paint that's used, red for electric, water, telephone, cable. 29 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 The entire block that I visited was just overwhelmed with these markings. And this particular area is an area that I understand is going to be facing a major overhaul, including new sidewalks, et cetera. But I think the problem citywide is something that I believe you have an interest in, and I know it concerns you, that we really need to get the utility companies And I understand, coming from the utility industry, how important it is to make sure that safety is number one, so people don't strike these wires or underground facilities. But it seems like it is so overdone lately. I don't know whether it is issues of liability, or what. And I'm not sure that the paint that they are using is a paint that has a few months of life associated with it. But it seems as though the mark that they put on -- I wish I could figure out how I could get the paint to stay on my shingles as it does stay on the sidewalk. But something really has to be done, 30 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 because the city is really starting to look bad with all this -- I say, with all these markings.

I agree with your comments, Councilman. And since I have become Managing Director, I see a lot more things that bother me that I simply ignored before I became Managing Director. And this is one of them. We, actually, will be having a meeting with the utility companies within a week or two discussing another large problem that we have, and that's that we don't dig up our streets one after another. So the Streets Department comes in and does work, and the Water Department comes in, and Comcast comes in and does work, and then PECO, and PGW. It is a serious problem, and we will be proposing legislation to this chamber about that. But we plan to sit down with the utility companies to discuss this issue, and I also plan to raise the issues of the paint. But I think it is a shame when you 31 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 go down to -- it is a shame in any area. But when you go down to some of our tourist attractions, and we get done putting up great facilities there and so forth, and you just see this on the sidewalk or in the streets. It doesn't make a lot of sense to me. So I am sure that our technology has progressed in a way that this issue can be dealt with.

I have asked the Administration, at least the Mayor's Office, last week -- I will ask you, I will ask the Police Commissioner -- in reference to the state police patrols on the Expressway, are we prepared, if we don't get paid the close to $6 million annually, are we prepared, or if they don't assume that responsibility, are we prepared to pull those police from the roadway?

I have discussed that with Commissioner Johnson. And based on his comments, I would be very reluctant to see that done. I think that becomes a safety issue for our citizens. And I don't think our 32 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 citizens should be punished because we are not getting what's due us from Harrisburg, particularly when it comes to safety.

That doesn't give us much room to bargain, though. If they know that you are not going to pull the police, I think that you might take that money out of your Five-Year Plan today, if that's your position.

Well, that may be, and we will have to find ways to cover that. But it is an area that we will continue to discuss. But I have raised it with the Police Commissioner, and that was his first reaction. But there may be another way of going about it.

You talked about the Mural Arts Program. I guess it is called the sun dial that's in the center of the City Hall courtyard, it was put there maybe four or five years ago. Very beautiful piece of work. I don't know if the Mural Arts Program handles it or not, but it is totally 33 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 faded away to the point where it, again, looks like it is just not kept well. There is a lack of detail. I know there is a lot of construction there. Could you tell me what the plan to refresh that is? Because that's the center of our city. People walk by there, tourists, and it looks like we have just abandoned ship there. What exactly do we plan to do?

I do not know. I will get back to you with what we plan to do there.

Thank you. I will wait for the next go-around, Madam Chair.

Thank you. Mr. Managing Director, you indicated in your statement that you are now prepared to expand the CLIP program initiative citywide, and you will be expanding enhanced enforcement and abatement through the city by targeted zip codes beginning this summer. Can you tell us what zip codes that you are thinking of targeting? 34 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

This is something that we will do in conjunction with sitting down with City Council. So Mr. Conway and his staff should be having meetings with all City Council people or representatives to discuss which zip codes they think are most urgent for us to go after and what particular violations in those zip codes they think that we should focus on. I think, obviously, if we try to do it all at once, we won't be successful. So we want to grow into this. But this will be done in a collaborative process with City Council.

Do we have a time frame?

We plan to start this summer. So hopefully these meetings can take place so we can start to get the targeted areas.

In the Mayor's revenue estimates contained in the budget and brief, your office is estimated to generate $10 million in strategic marketing fees. 35 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 Explain what that is, how will we generate these funds, and who will we generate the funds from?

I would prefer that -- my office is not responsible for that initiative. I can speak generally about it, but I'm not an expert on it. And that's, I think, being handled out of the Finance Department.

Okay. PICA has issued a paper on the Police Department which contains some rather harsh criticism. Would you comment on the issues of poor management and lack of oversight and unnecessary personnel rules.

Well, I think --

I know the Police Commissioner is coming in, but I thought this was a question that you would certainly have some knowledge on.

I think the work rules are an issue of collective bargaining and the arbitration process that we will go 36 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 through. I think the Police Department is -- and Commissioner Johnson is hard at work making a lot of changes in the Police Department. Some of them that will address a lot of the issues raised in the PICA report. And I think Deputy Commissioner Fox, who is now head of operations there, is doing gang-busters in looking at ways that we have to better utilize our personnel and so forth. I think the Police Commissioner will be able to address those. I believe that reports like the PICA report, or any other report that comes out like that, are always useful. But we also have to realize that it is always difficult to compare one city to another city unless you really know what's going on and how that city functions, and so forth. But we take those suggestions at heart, and we are making changes. And I'm sure the Police Commissioner will talk about those.

On of your 37 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 detail, you reflect three full-time positions at $2.5 million for FY '05. Can you tell us how we get one of those jobs? Can you explain how the vacant lot cleaning program is budgeted? When MOCS was in for their general budget testimony, they were asked what funds they received. They didn't mention the $2 million they received from the MDO's office. Please explain how these funds are used and why they are in your budget.

Good morning, Madam President. For the record, my name is Anthony Torre. I am the Director of Administrative Services for the Managing Director's Office. We have allocated to this division three individuals that work within our departments. The other costs associated with this element are from the MOCS, L & I, and Fairmount Park. Those costs are transferred into the Managing Director's Office through an expenditure transfer. So those positions do 38 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 not show up in our budget. We actually use the services of other departments to accomplish our mission.

But they are not actually your employees?

No, they are not. They are employees of other departments; we just pay for their services.

The question you asked about the three people and the 1.5 million --

2.5.

2.5. If you total that, it is actually 41 people that are in that number. If you see, they have crew chiefs. And if you go down the left-hand side there, you will see those numbers there.

That's rather unusual, to be budgeting it in this fashion, but it is what it is. On of your detail, you are asking for $90,000 for an equipment scheduling survey management program. Please explain 39 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 what it is and why it is needed. .

This equipment scheduling survey, can someone from my staff explain that. Kent Miller from the energy office will explain what that is.

Thank you.

Good morning. My name is Kent Miller, I am the Executive Director of the Municipal Emergency Office. This project is part of an initiative that the Managing Director recently started, which is to promote energy conservation by the operating departments. And one of the things that we want to focus on is a better scheduling of their heating and cooling equipment, turning the air-conditioning off in the evenings and on the weekends, turning the heat down, turning the lights off. And this contract will allow us to collect information on what the scheduling practices are at a number of city facilities.

Didn't we just 40 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 have a discussion like this last year at budget time, about conservation of energy, about closing the lights off as we left our offices, et cetera, et cetera? I recall your being here. I could swear.

Right. I don't remember that.

Whether it was you or someone else, we did speak about it.

Well --

That has not been an ongoing program that we have been trying to have?

Well, it is something that we have been working on with the other departments for some time, but there's more to be done. We have over 450 buildings in the city inventory. It is a big job. There are lots of facilities and lots of people who are involved in making these decisions.

So what kind of equipment are we talking about? 41 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

Well, these are -- well, we are talking about the heating equipment and the air-conditioning equipment. We want to improve the scheduling of those so that they are only on when they need to be. But we need to know about what the current scheduling practices are, and this is what we are going to try and find out.

Do you think we would be saving $90,000 or more?

Probably much more.

Much more?

In fact, if you look at the utility budget, which is in the Department of Public Properties' budget, you will see there is a very significant reduction, I think it is about a million dollar reduction, in the utility budget for next year. It is pretty ambitious. But, yes, I think we will easily find these savings.

Thank you. My last question, and then we will go on. Mr. Director, on of your detail, you are requesting $2,250,000 in grant 42 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 funding for the Jackson versus Hendricks settlement. What is the source of this funding, how are the funds used, and what are the terms and duration of the settlement?

Let me turn to someone from my staff. Ellen Steiker will answer that.

Good morning.

Good morning. This is Ellen Steiker, Deputy Managing Director. The 2 million, or 2.1 million, Jackson settlement fund was part of the settlement of the lawsuit. It is carried as a grants account in the Managing Director's Office. It is managed by a committee, which includes the plaintiff's attorney, David Rudovsky, and other appropriate staff from the city government to look at ways to improve services for prisoners leaving the system. It's focused primarily on jobs and other kinds of reentry programs. It is one-time funding, it is being 43 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 handled very carefully because it is only one-time funding. And, so, the committee has actually been working for over a year; but a very small amount of the funds have yet been expended, so they have been reappropriated.

So we still have over $2 million in that fund?

Close to that, yes. Although, more of it has been committed by now.

Thank you very much. The Chair recognizes Councilman Nutter.

Good morning, Mr. Managing Director.

Good morning.

I wanted to go back to this in the budget book. I didn't understand the answer. There are four lines, the last three of which involve what appear to be 128 positions. The first line would seem to indicate, are these three new assistant 44 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 Managing Director positions for FY '05?

No; that's what we currently have.

Okay. So tell me about Lines 2, 3, and 4.

Councilman, those are employees of other departments that we use --

You may need to identify yourself.

Anthony Torre, director of administrative services. Councilman, those are the employees of other departments that we use to accomplish our mission in the vacant lot program. Those costs are incurred by the department where they work, and then they are transferred to us through an accounting transfer.

Why is that? I mean, why wouldn't you just leave them in the department?

Because I think we want to show -- to be consistent, we want to show the costs where they are actually incurred. 45 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 And they are actually incurred in this program.

And are all of these employees presently on the payroll?

Yes, I believe they are.

Okay. And are these Civil Service positions?

I believe the -- and we can have, maybe, Tom Conway attest to this -- but I believe the L & I believe and the Fairmount Park Commission are Civil Service people, and probably the MOCS people are not.

Do you feel pretty confident about that?

We can ask. Yes.

The budget director is nodding his head yes, so I feel confident.

With regard to Line Item No. 4 and the MOCS, the president did ask the question from earlier, how do you get -- how are these jobs made available? I mean, are they advertised, is there a test? I mean, how does it work?

Councilman, to be 46 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 truthful with you, I can't answer that question.

We will get back to you with an explanation.

All right. So you are carrying them costwise in your budget, but we're not sure how they got there; is that what you are saying?

I would rather be precise than speculate with you.

I can appreciate that. So this is the vacant lot cleaning program. Now, do we bill the property owner for the service that's being provided here? I am assuming this is a service; right?

Let me ask Mr. Conway to get up.

My name is Tom Conway, Deputy Managing Director of City of Philadelphia. Yes, we do bill the property owners for the cost of the cleanup. After you do an 47 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 inspection of the property, a violation is written through L & I. L & I is responsible for the billing process, as well.

And how many lots do you expect to clean in FY '05?

I believe it is around 17,000. After the initial cleanup three years ago, a lot of the owners come into compliance and take care of the lots themselves now.

17,000 lots?

We will get you the right number. But your question is, how many lots we expect to clean, Councilman?

Yes.

Okay. We will get back to you with that.

Well how many did we clean last year?

Roughly 12,000.

Okay. And what was the total billable on the lots? What did we bill for those services? 48 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

We will get back to you with that information.

Well, I might as well ask this question, how much did we collect out of the billable? Who would actually know the answers to these questions?

Well, I have some of it here. I am just having a tough time putting my fingers on it. But as soon as I put my fingers on it, I will give you the answer.

All right. There was mention made in the testimony that the lots are cleaned on a citywide maintenance schedule. Is that schedule available?

It will be made available to you, yes.

Well, if you could forward it to the Chair, I would greatly appreciate that.

We will do that.

Councilman, while 49 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 you are on that issue, may I just ask a question?

Sure. Absolutely.

I do notice that we have 87 people assigned to your department from MOCS. Are they part-time or full-time employees?

Both.

That are cleaning lots.

Some are full time, some are part time. We will give you a breakdown on that.

Thank you. Since I interfered with your line of questioning, you could ask one more question.

I get, like, three minutes back, right, it is like double the time. All right. So you say you bill for the service, L & I is responsible for billing, but you don't know what the total amount was or how much we actually collected in the last 50 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 Fiscal Year?

We have it, we just are not able to put our finger on it right now.

You are trying to put your hands on it. Okay. Let's talk about the testimony on , very quickly. You have convened a school safety zone task force. Who is on this task force?

Representatives of the Police Department, Streets Department, School District, Traffic Court, Archdiocese, Planning Commission, and the Managing Director's Office.

Okay. Did you have any thought that you might want to involve someone from City Council?

No. We are going to be reporting to City Council on a hearing this week, and obviously will be telling you where we are going and obviously interested in any recommendations.

Well, I think I 51 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 would say, with the greatest respect that, I mean, somebody around here might either know or care about school safety. But I think, I mean, it is this kind of effort that, if people really cared what we thought about it, we would be involved in the front end, as opposed to waiting to hear what everyone else thought about it. It is just a concept.

Okay.

In that regard, though, the Capital Budget, while you are trying to step up the efforts in this regard, the Capital Budget seems to indicate that there is $100,000 less for the upcoming Capital Budget in the flashing lights this year as compared to next year. Is that helpful to the upgrade of school zone safety?

Well, I think the school zone safety issue involves more than flashing lights. There are a bunch of other things that we are looking at in terms of traffic design. 52 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 We are also looking at the adequacy of the number of crossing guards we have, and so forth. So I think we would have to look at the entire amount expended and what we would recommend should be increased. So I think that's just one small part of that.

I understand that, and I would agree. It just seemed like the two initiatives were in conflict with each other. How many crossing guards do we have?

We have 1,034 authorized positions. At any given time we have vacancies, illnesses, vacations, et cetera.

And how many corners need to be covered?

Well, this is what we are doing, Councilman. I have directed the Streets Department, the School District, and the Police to -- rather than starting at how many we have, I would really ask them to take a fresh look at how many we need by surveying 53 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 all the corners there, and come back within 30 days. Because I do want to have that answer while we are going through budget deliberations; to see how many in fact we really need, and then see where there is a gap. It may turn out we need more, may need less. And then also take into consideration that there are days where we don't have someone where they should be because of an illness and so forth. So if we came back with, let's say we needed 1,500 corners, we may need more crossing guards, just like you need substitute teachers and so forth. So that's the analysis we are going through. And I have asked, you know, this task force had a meeting last week, that's one of the things they are going back and hopefully have the answer. And that's, obviously, something we will be sharing with City Council because it is likely we may have to adjust the budget in 54 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 some way, shape, or form, depending on what these answers are. So it is a comprehensive look at everything.

Thank you. My time expired.

Thank you Councilman. The Chair recognizes Councilman Ramos.

Good morning, Madam Chair.

Good morning.

Good morning, Mr. Managing Director.

Good morning.

I am impressed by the work that you have started to do with your fleet reduction program. I think it is commendable. As you work to reduce the city's fleet, is there any impact on parking spots?

Are you asking for one? 55 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

No; I have one.

Well, you know, parking is another issue.

If we need to give it up, I will give it up.

I don't know. One of the things we are, frankly, doing is, we are having discussions with the Philadelphia Parking Authority. I believe that we are entitled to 200 discounted spots at the Love Park parking lot. And we are dealing with them to define what a discount is that we think is appropriate for us. So I think if we can get that number at the right amount, that will help ease some of the parking issues we have.

If you are going to remove cars from, for example, 15th Street, are we going to rent those spaces? Have you thought along those lines?

15th Street.

15th Street, between Arch and JFK. 56 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

I don't think we have any plans to do that.

But if you are removing cars from your fleet, I suspect that you won't have your cars on that -- with the reduction, you wouldn't have as much cars there. And what are we going to do? Are we just going to make them available to the public for free, or do you have any --

No. We will have to see as this program unfolds. But the parking spots on 15th Street, as well as on JFK, are designated for authorized employees; they are not designated by car.

I understand that. But with your fleet reduction, you are going to have less cars.

Yes.

What happens to those spaces that are going to be available? Are we just going to make them available for 57 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 the public to come and park, or are we going to charge them for parking?

I think it is a legitimate point. And we also spend a lot of money, I forget the exact amount, throughout the city on parking. And it may be, to the extent that we get spaces opening up on 15th Street, is to take cars out of our garages, where we are paying money, and put them on 15th Street. So we will have to look at doing an analysis of all that.

Concerning -- regarding the collection of reimbursement and reimbursables from the Police Department and overtime, do you have any numbers regarding the overall level of reimbursable overtime? And how successful have you been collecting the reimbursement?

I believe that there is --

You made mention of this back in March.

Yes. I believe 58 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 there is about a million dollars of delinquent money that's owed the city. I think approximately $223,000 has been collected, and we are pursuing the others. And we will give you more details on that, if so desired.

Managing Director, how long did it take you to collect the $223,000?

I don't know. That comes out of the Law Department.

Any ideas? Three months, six months?

I don't know the answer.

Will you get that information for us, please?

We will get that information, sure.

When did you become the Managing Director of the city?

February 3, 2003. It is seared in my head.

2003? 59 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

Yes.

Not 2002?

No, 2003. I have just been here months, months. It seems 6 like forever, I will tell you. 7

In the little bit 8 over a year that you have been at this 9 position -- and I must admit that you and your 10 two predecessors who have served under the 11 Street Administration, all three of you have 12 been very qualified individuals, at least from 13 my point of view and what I know of you and 14 your two predecessors. 15 But I know that you get these 16 reports. I don't know what they are called. But I know you get these updated reports that tell you how your money is being spent; for example, in the Police Department. At some point you had to see, probably early on, when you get these periodic reports, that the overtime costs in the Police Department were starting to bust or burst the surplus of this city. How did you react to that? Did you 60 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 send a memo to someone, and to who? I mean, how did you react to, you know, that fact in front of you that this overtime was starting to put a big dent in our surplus?

Let me, if I may, just digress for a minute while we are talking about the number of Managing Directors. Someone told me the other day that from 1952 do 1980 there were five Managing Directors. From 1980 to now, there have been 11. So I don't know what that says, but it tells me something. To be honest with you, I did not receive reports on the amount of overtime; that is something that we have just started. Because overtime is a cost of doing business, but it can also be too costly. But we have been, as I had said in my testimony, we project a $17 million reduction in overtime in Fiscal Year '04 over '03. So that's -- it is about a little bit over 10 percent.

So you don't get a report on how the budget is being used by 61 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 the Police Department on a regular basis?

No; we have, I think there are quarterly meetings with the Budget Office and the operating departments on how they are performing, yes. But I am now asking -- I am now asking for more in-depth reports on the issue of overtime.

Point of order.

Councilman, your time is up and Councilman Rizzo has a point of information.

Mr. Managing Director, could you clear something up?

Sure.

I am confused. I constantly hear that the setup now that the Administration Secretary of Safety -- does the Police Commissioner report to you or doesn't he?

I believe the Police Commissioner reports to the Managing Director under the city Charter. I think all commissioners, in the 62 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 end of the day, report to the Mayor. The Mayor is elected by the people, the Managing Director is not. But the Police Commissioner and I meet on a regular basis. And I believe under the city Charter, the Police Commissioner reports to the Mayor. But every Mayor that I have known has always had a special relationship with the Police Commissioner, because I don't think there is any more important issue in the City of Philadelphia than public safety.

So does the Police Commissioner report to you?

Yes.

Fire Commissioner?

Yes.

All the other titles that have secretary, Secretaries of education --

Secretary of Education does not.

Just the 63 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 operating departments?

The operating departments do, Secretary of Housing does not.

Thank you. Thank you, Madam Chair.

Thank you.

I have some more questions, Madam President. So who does report on a more periodic time frame, who does the Police Commissioner or whoever is responsible for that in his office report to who about how the money is being spent in the Police Department? If you are not getting -- I always thought that you guys, Managing Directors, had this binder that you went to to see how -- you know, and the papers that are put in the binder, on how the money was spent that week or in the last couple of weeks. So if it is not you, who is the Police Department reporting to on their expenditures?

Those reports go to the Budget Office, and the Budget Director and 64 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 I meet probably every day on a whole bunch of issues. What we are doing now, there are some issues that I am taking, you know, more hands-on interest in. And overtime is one of them because of the cost of overtime and because of the budget situation that we find ourselves in.

Mr. Goldsmith, so when you came to the job in February of 2003 -- and correct me if I am wrong -- and you saw that the overtime in the Police Department was eating up at our surplus, did you and the Budget Director talk about that, and what did you do about it?

I don't recall. I think that -- I don't believe that at that point in time, when I first got here, that I was as aware of those issues. But the budget issues and the performance of the operating departments is something that the Budget Director and I have had -- we have meetings on with the operating departments. 65 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

So you are saying that you did not look at that when you first came on the job, but you are looking at it now?

Absolutely. There are a lot of things that I didn't look at when I first came on the job. I was just learning the job. I didn't have any training period. I came into a couple of snow storms and everything like that. And I am getting much more equipped about this job. And there are a lot of things that I am looking and doing now that I didn't do, like anyone going into a new job.

So the Mayor nor anyone in the Mayor's Office told you that the protection of taxpayers' money was not the number one priority of your job?

Now, I think the number one priority of the Managing Director is the performance of operating departments and so forth, working in conjunction with the Finance Department and the Budget Office. We marry the cost of providing quality services. 66 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

Councilman Ramos, your time was up some time ago. I am afraid you are going to have to wait for the second go-around. The Chair recognizes Councilman Clarke.

Thank you, Madam President. Good morning. Good morning, gentlemen and lady. I have a couple of questions about the operations. But before I do that, I would like to ask you a question about your staffing. How many deputies do you have?

Five deputies, down from seven.

How many assistant deputies do you have?

Assistants are -- 20 assistant -- that have the title of Assistant Managing Director.

Assistant Managing Director?

Yes. 67 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

How many do you have? How many Assistant Deputy Managing Directors do you have?

Assistant Managing Directors would be 20, and 5 Managing Directors, Deputy Managing Directors.

5 Deputies and 5 Assistant deputies?

Yes. The title would be Assistant Managing Director and Deputy Managing Director. There are five Deputy Managing Directors, Assistant Managing Directors. 15

Okay. Can you, 16 before you leave today -- I am assuming you 17 don't have a level under that, or do you, 18 under assistants? 19

There would be 20 secretaries and analysts and things like that.

Okay. Can you, before you leave today, get me a chart, staffing chart, starting with yourself, the deputies and the assistants, and give me the duties and responsibilities of those 68 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 individuals? One of the things that has been somewhat confusing to me is who reports to who. I know that in some instances you have people that have relationships with the MOCS who actually report directly to the Managing Director's Office or deputy in the Managing Director's Office, but not to the head of the MOCS. And similar types of situations throughout the government as it relates to the Managing Director and some of the service deliveries. And I am not really sure who reports to who or who is ultimately responsible to who. So if you can get me a chart that tells me who reports to who, who is responsible for what, that would be extremely helpful.

Sure. We can do that.

Vehicles. And I want to, like Councilman Ramos, compliment the 69 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 Administration for attempting to -- in aggressively seeking to reduce the fleet. What I would like to ask you is the criteria associated with determining fleet reduction. Who, in terms of employees, has the ability to have a vehicle during the course of the work day, a vehicle overnight, how the vehicles are utilized during the course of the day, what process is set up to determine who gets what vehicle during the course of the day and who gets to take it home. Talk to me about that.

Let me tell you, and we will get you more detail. Let me tell you how -- we have gone through this particular process. We went out and, with the support of Public Financial Management, developed a number of criteria in looking at whether our automobiles were being effectively utilized. And, for example, one of the criteria that was looked at was how much usage they were getting. And we were able to do 70 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 that by getting the gas mileage that each car used during the year.

Did you say you went out and did what? You hired somebody?

Public Financial Management was doing that.

Who is that?

Public Financial Management is a consulting firm, which is located in Philadelphia, PFM.

PFM?

PFM, yes.

When did you hire them?

When did we hire them? I will have to get you the exact date.

Can you include the cost of the contract?

Sure. July of '03, and we will get you the cost.

July '03.

Yes.

Can you get me 71 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 the cost of that contract?

Yes.

Go ahead.

So looking at what other cities have done and so forth, they have developed criteria, trying to determine whether the cars were being adequately used. And some of those criteria -- and we will get you a list of the complete criteria -- was the mileage, which we determined by gas. So if someone was only filling their car up a couple of times a month, it led to the question of, why did that individual have a full-time car. We were looking at the cost of maintenance of those cars, a number of other criteria which we will get you.

Excuse me. Fleet Management wouldn't have that information?

Yes, fleet will have all that information.

Wouldn't Fleet 72 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 Management know the cost of maintaining a vehicle?

Yes. And they were the ones to provide all the information.

So why did we hire somebody to go to Fleet Management to ask them what the cost of maintaining a vehicle was?

We were trying to establish a process that helped us determine what the criteria should be, what other cities have done. We were looking at what other cities have done to reduce their fleet, as well as the private sector, and so forth. PFM brought a particular experience to that level. Fortunately, our Fleet Management has the capacity and the capabilities of providing those types of information because of our automated fuel system and the records that we have. But in designing the program and the criteria, we felt it was important to have a consultant that could help us do that. 73 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 After we established the criteria, we sat down with every department and said, this is what we have found about your cars: Here is the car, this is how many miles are on it, this is the gas, et cetera, et cetera, using those criteria. And then sat down with each department head, or whoever was assigned by that department head to sit down with this group that was doing this analysis. We started out with what I will call the staff departments, as opposed to the operating departments. So we started out with things like Procurement, Finance Department, Managing Director's Office. But we have not gone to the operating departments as of yet. And then each department was able to say -- if we said, based on our analysis, here are five cars we see that don't meet the criteria, we can't justify having a car for this, a full-time car for this department, each department was given a period of time to get back to us and tell us why they thought they needed the car. 74 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

Did PFM do all this work, or was it some of that done internally?

No; this was done by both fleet, the Managing Director's Office, and the Budget Office.

So what exactly did PFM do? Did they access the information and turn to over to the city, and then you did your analysis? What did they do?

I don't know the answer off of top of my head. I would have to get you the precise role that they played. But I think they helped us do the analysis, once we got the information helped us organize it.

Did they get the information or did we get the information?

No. We got the information.

We, the city, got the information and then turned it over to PFM, or did they get the information and turn it over to us? 75 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

No; I believe we got the information. They probably had some computer program, software programs, to organize the information in a way that we thought we could compare each department in a fair and objective point of view. So it was -- but I will have to get you more details as to who played what role in this.

All right. I know my time is up. I will follow up on the next round.

Thank you. The Chair recognizes Councilwoman Miller.

Thank you, Madam President. Good morning, Mr. Goldsmith.

Good morning.

I want to have some followup questions to the expanded code enforcement, quality of life program. One of the biggest constituent 76 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 service areas and calls that we get are about quality-of-life-type crimes, I will call them, out in neighborhoods. And I just have some questions regarding how -- I know that everyone says this program has been very successful in Council District 6. And I just have some questions around the process and what helps make it successful or not successful. In your testimony, you said that CLIP addresses high weeds, dumping of private property, graffiti, vandalism, and noncompliance with trash collection schedule. What are you doing, or is it a problem -- it may not be a problem in District 6. I know it is a problem in my area. And it just seems very, very hard, very difficult, to do anything about, and that's just about the fact that people don't like to clean up after their dogs. Have you encountered those kind of problems out there? And, if so, what are you doing? And are these people getting citations or is there abatement? What's happening in 77 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 that area?

Let me ask Deputy Managing Director Conway to talk about that.

Dogs in their backyard, not so much on the streets.

With regards to dog feces, there is a major problem with it at playgrounds, so on and so forth. We would have the signs posted with the Streets Department to inform the people to walk their dog on a leash, to pick up after their dog. With regards to it being on private property, we would issue a code violation notice. We do not abate dog feces.

I know you might want to laugh, but this is a really major problem in my district. I just got a six-page letter from a constituent dealing with this same issue year after year at the same location. And at some point, I am really a Council member that calls for stronger enforcement. And I agree that maybe we do need to raise the fine from $25 to $75. We 78 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 have to do something to get people to comply. But it is really a big issue. In the summer people are complaining they cannot open their windows. And many parts of my district has large back yards, and it is really, really, really a nuisance out in the neighborhood. I am sure other districts have that similar type problem. So that's problem that I would really like you to -- maybe we can figure out what we can do to get people to clean up behind these dogs and clean up this dog feces.

If it was one specific location that was a problem property, we would forward that information to L & I, try and get it into a court system, enforce the property owner to clean that up. But that would have to go through the courts.

All right. Speaking of the courts, one of the questions I have had is that, if you have had to take anyone in the CLIP test area to court, how are the courts handling this? We have a big problem in our 79 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 district -- I'm sure in other Council districts the same -- with short-term dumping and just dumping, period. And one of the complaints from a couple of the police officers that I spoke to that are on that type of duty, where they are monitoring these short-term dumping sites, is that they really don't -- that the MC judges do not take it serious when these people are brought to court. And the attitude is just about, oh, why did you bring this here to me. I mean, this is like a nuisance type of hearing they don't want to be bothered with. Have you heard that?

We have heard that. In fact, I have asked the City Solicitor to help us work on that issue, and actually just sent him a memo outlining the problem that we see from our end, and see if we can't come up with a solution to it. But I think it is a problem that we have heard many times.

These 80 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 short-term dumping sites are really, really bothersome to people in neighborhoods. I was at a community meeting the other night, and I couldn't believe the number of sites that people gave me. And, you know, people are using that sort of as a trash collection yard. I mean, you would almost think it was a city yard, where you could actually bring your trash to. And these places are all over my district. I am sure they are all over other Council districts. I also want to talk about the vacant property, the vacant lot program. Can you give us an inventory of the equipment? And how is this vacant lot -- is it divided up by neighborhood, by sections of the city? I guess in terms of their storage yards. Because one of the problems in my district in particular is, when the crew comes out to clean, they don't have the adequate equipment, the large pieces of equipment, to use on some of the lots where they may need a 81 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 front-end loader or some of the other types of equipment that's used to effectively do a good job. So I would really like to know that, what equipment do you have, and how is it divided up citywide? Because I think the people that come out in the area that I serve are getting the short end of the stick, they don't really have adequate equipment.

The vacant lot program is broken down into three separate zones, basically about 10,000 lots per zone. With regards to the equipment, we can get you a breakdown of it, what's assigned by zone. What happens is that the surveyor will go out, take a look at the lots in the area, determine what type of equipment is required, report back to the supervisor. When we started the program, we did need a lot of large equipment, such as front-end loaders, dump trucks. As the program progressed, it has become more of just litter and high weeds on 82 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 the lots, so we don't need as much large equipment. But we can get you a breakdown of what's assigned by area.

I agree that some of the lots you don't need the large equipment, and it has gotten into more of a litter removal kind of program. But there are some lots in my district that need the large pieces of equipment, but it has not been available. So, therefore, we still have -- and if you want me to, I can give you a list of exactly what I am talking about.

If you would provide us with a list, we will get the equipment out there that is required.

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

You are welcome. The Chair recognizes Councilwoman Tasco.

Thank you. 83 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 Just following Councilwoman Miller's thought in terms of the short-term dumping. I notice on of the budget detail, you state that the city will spend 150,000 in federal grant dollars for police overtime for surveillance and arresting graffiti and short-dump offenders. If we have police that are assigned to do surveillance around short dumping, why is it that we can't seem to catch the dumpers, when we report constantly the same locations where they are dumping?

The funding for the graffiti and the surveillance is for the local law enforcement block grant dollars. And that is used to reimburse the Police Department to do surveillance at locations. It is usually out of the neighborhood services unit. And the Police Department --

That doesn't answer my question. If we are using the police to do surveillance around short dumping, why can't we catch the people that are short dumping, if 84 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 you have a chronic location, as Councilwoman mentioned, and we have reported at times? You can't seem to catch the guys. And if we have money that's being spent to provide surveillance for that, there ought to be some return for the dollars spent.

I don't have the answer for that. I don't know how many short dumpers were arrested within the last year, but I am sure the Police Department would have those figures.

Maybe they will be able to give us that information, at least for these police who are doing the surveillance.

We will try to get you the information.

Well, they will testify, I am sure. They are here and may have an answer for it. Or why are the federal funds being used and not General Fund dollars allocated for the Police Department for this?

Well, we try to use 85 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 federal funds and state funds to help us, particularly at a time when operating dollars are pretty scarce. So if we can get grants, we would prefer to do that. It is simply a question of economics.

So there is no -- although the dollars come out from your office, there is no report back to you around the effectiveness of the expenditure of these dollars?

I have not seen one. I would certainly ask for one.

We would like to know how many short-dumping perpetrators are arrested, and where, to determine if the money is well spent.

That's fine.

According to -- you may have answered this question. I am sorry if you have. You talk about the quality of life section, the CLIP program, to be expanded in targeted zip codes this summer. 86 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 I imagine you will work with the Councilpeople on selecting those zip codes?

That's correct.

How does the expansion of this program in targeted zip codes impact on the ability to provide these services to those areas not in the zip codes?

Well, what I see as the targeted zip code approach is, where we are going to be, I will call, proactive because of the nature of the issues in the zip codes that you would identify in your councilmanic district, for example. And there we are going to have a much more systemic proactive approach to it. In other areas we will be, as we are today, more complaint-driven. So if you have issues in another zip code, or something like that, and we receive a complaint, we are going to deal with that. But I think that there are certain areas which we are trying to identify, saying, because of your knowledge of that district and what's going on in particular problems, this 87 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 is where we want to be proactive and we have to take a more aggressive approach. But for other issues that come up, we will respond as we do today.

You are going to create a problem for us, because we have to make a selection of where it is in the program. And then the other residents of our districts, you know, get upset because they don't get the program, and why don't we have the program. And that's all you hear when you go out to a community meeting, why did you select that community over another. You know -- and you know how I feel about the whole program. I think that enforcement should be citywide.

And we plan to make it citywide. But we plan to do it, you know, proactively where we see a problem. You may have a zip code that you have identified for high weeds, for example, and another zip code you have identified for something else. 88 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 But some zip codes simply don't have the problem that require us to put the resources there, but they may have another type of problem that we want to address. So we want to just get a little more targeted and surgical on it, because we don't have the resources to just blanket the whole city to do it.

And I agree that, but the constituents don't believe that. They all believe that they have the worst problems in their neighborhood.

I have been out there, and I understand. And sometimes they think their neighborhood is the only neighborhood.

You, on of the budget detail, the city will receive a grant to respond to threats of biological terrorism. Under this grant, the city will enter into a 452,000-plus personal services contract. Who will receive these contracts? I noticed they were -- also this money was 89 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 appropriated in 2004. Who were the contractors? And will those contractors receive the contracts in 2005, carry over?

Let me ask Mike Nucci to handle that, if he can.

Councilwoman, on this particular grant, we are not sure this money is going to come in. The money has been trickling in from the federal government for biological threats and terrorism. So this is money that we may get next year. This is not cast in stone. And the money is used to be appropriated among categories at this point in time, but no 16 specific identities for any of the dollars. We just kind of spread it in there and hope we get the money next year.

Has the federal government given you any indication that it will come in, for you to put it in the budget? Have you applied for it?

Introduce yourself. Sit down and introduce yourself.

Mike Nucci, I am 90 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 the Director of Emergency Management, part of the Managing Director's Office. That particular budget item is the Metropolitan Medical Response System, I think you are referring to. We have gotten in the past in the neighborhood of $250,000 a year. And, basically, that was to replace the pharmaceuticals that expire for our MMRS team, that's Metropolitan Medical Response System. Which, basically, in layman's terms is the three decon teams, decontamination teams, that are within the fire department; and the emergency medical services, which has the anecdotes for nerve agents, things like that. They expire in about 30 months, that's the shelf life of these things. So that money is to replace the expired pharmaceuticals. We expect that probably for next year that particular program will disappear and will all be rolled into the whole homeland security program. 91 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 What's happening at the federal level, a lot of these smaller programs that have been going on for a number of years are being kind of rolled into one big program.

Well, why would this money not be appropriated under the Police Department?

Under the Police Department?

Or the Fire Department. Why is it in the Managing Director's department?

Because my office is responsible through the state and the federal government for coordinating all the homeland security funds. So what we do is get lists of what the Fire Department needs, what the Police Department needs, and then the money gets appropriated accordingly.

Thank you.

You are welcome. The Chair recognizes Councilman Kenney. 92 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

Thank you, Madam President. Councilman Nutter had raised some issues relative to school pedestrian safety. And I just wanted to make sure that everyone knew that on Thursday at 2:00 p.m. the Joint Committee of Legislative Oversight and Public Safety will be conducting a hearing to discuss this. We have experts coming in from Phoenix, Baltimore, and Florida, three governments that actually do a very good job at school pedestrian safety. They are going to come in and tell us what they have done, and we are going to try to get our arms around this a little more. I know the Managing Director has been looking at the issue and going to make recommendations, also. But I just wanted to make sure people knew that that hearing is at 2:00 p.m. on Thursday. I want to go back for a moment to questions that Councilman Ramos was raising relative to overtime. There are regular cabinet meetings, 93 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 aren't there? You attend regular cabinet meetings. How often are they held?

They are now being held once every two weeks. They had been held once a week.

Once a week for the months that you were there? 10

Yes. 11

And who attends 12 those meetings? 13

The Mayor, Chief of 14 Staff, Secretary of External Affairs, 15 Secretary of Planning Commission, Managing Director, City Solicitor, Commerce Director, Police Commissioner. I think I have got everyone.

And in that 15-month period, the issue of overtime never came up?

I am not saying it didn't come up.

It was discussed. 94 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

We discussed a lot of different issues at cabinet meetings.

Well, relative specifically to overtime, what was discussed?

I can't recall. Because generally it is not those types of meetings. The Mayor would also have meetings with the operating departments in clusters, that we would get together on a regular basis and discuss issues.

Would the finance people also be there?

Yes.

So on the small cluster meetings, was the issue of overtime raised?

Issue of finances were raised, issues of overtime were raised. And then we would have, I believe, quarterly meetings with the Budget Director and his staff, the Managing Director and his staff, with the individual operating departments to go over their budgets. 95 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

And I wouldn't be overstating if I said that the issue of overtime is a serious issue relative to our $227 million deficit; is that a fair statement?

I think overtime is an issue that needs to be addressed, yes.

But it is a major issue in this 227 hole? I mean, it is pension issues, it is overtime --

I don't want to minimize the issue of overtime, because I think it is an important issue. I wouldn't say it is a major issue that has created the issue we find ourselves in. I think health and pension costs are more.

I know they are more. But how much did we spend on overtime in that 15-month period?

We spent $134 dollars in Fiscal Year '03. We are projected to spend $117 million in this Fiscal Year. So I think, you know, we have 96 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 decreased the overtime. And I think the Police Department has also decreased the overtime, when you look at their numbers.

I am not discounting the fact that overtime is an issue you are trying to deal with and that you are reducing it. But I can't believe that of the 134 million I think in '03, the smallest businesses in the city, when they do their analysis and sit down and look at their quarterlies or look at their monthlies, they do look at personnel costs. And I can't believe that no one in that room of intelligent people, whether in the larger cabinet meeting or in a smaller cluster meeting, ever said, wow, do you know what we are looking at here, and do you know what we are going to be looking at next year if we don't get a handle on this now. I mean, to me, that that discussion didn't happen scares more than the fact that we spent quite crazy in '03 on overtime.

Well, I have, 97 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 unfortunately, given the wrong impression. Those conversations took place all the time. If you sit in the meetings with the Budget Director and his staff with the operating departments, every line is gone through. And it is gone through in terms of what's going on in their department, both fiscally and how is it -- how does it align itself to the service measurements that we are trying to get.

So the department heads were aware of the problem, but no measures were taken to deal with it until after '03?

I think measures were taken. I think if you look at Fiscal Year '04, which I would be glad to provide you, you will see a significant reduction in the Police Department overtime. You will see a $17 million, almost a 10 percent, decrease in overtime. Some overtime you are going to have just because you are going to have it. And 98 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 what we have to do is gauge the appropriate amount of overtime. We have the Greek Picnic. The Greek Picnic is a million dollars worth of overtime. The Mardis Gras last year was $177 million -- $177,000 of overtime. This year we decreased it to $138,000. These are events, unfortunately, that, to some extent are outside of our control. Now, how we man these events and how we deploy them are things that we were working at.

But those events weren't the bulk of the overtime in the Police Department, were they?

I think when you look at --

Wasn't Safe Streets really the bulk of the overtime in the Police Department?

Safe Streets is a good chunk of the overtime. And I think if you look at court overtime, which we have discussed, is a good 99 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 chunk of the overtime.

I just find it incredulous that we saw this coming and really did nothing to stop it from happening until after we are in a hole for $227 million. As a member of the Board of Directors of this company, despite the lack of information we receive, I find it very difficult to believe.

Okay.

Let me move a minute to the CLIP program. It is currently operating in which districts now?

6, 7, and 10.

And how was that decision made, to operate in 6, 7, and 10? Who made the decision on 6, 7, and 10, as opposed to 1, 2, and 4, or 8, 9, and 1? I mean, how did that happen?

Let me have Tom help me out a little bit, and then I will take it from there. Because CLIP started before I got here. 100 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

When the Mayor's Neighborhood Transformation Initiative was unfolding, basically we worked with different people to find out what the quality of life problems were in their area. Councilwoman Krajewski's staff and the Managing Director's Office worked on a plan together to come up with the CLIP concept.

So that was for 6. How did 7 and 10 get it?

Well, after the 6th Councilmanic District was swept, we geographically just moved into the next Council districts.

Geographically south is District 1. Geographically -- I mean, the 6th District borders on two other districts, I would guess. I mean, three other districts. I just need to know -- I guess the bottom line is, do you really think it is fair for the rest of the city not to have this -- and I applaud Councilwoman Krajewski's office 101 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 for having the idea. I applaud other Council Members for trying to get it. But do you really think Managing Director -- Tom, I am not going to ask you to answer, because you are the operations guy on the ground -- do you really think it is fair that people throughout the city, who have similar problems as in the 6th and 7th and 10th do not get that kind of support and do not get that kind of service for no good reason that I can understand?

I think the program was started as a pilot program. And I think pilot programs always -- you always make a decision where you are going to start a pilot program. The decision was made. I think what we are trying to do, because of the success of the program, is to expand this in a way which we think is affordable, which is in a way that is fair, and can do the work. But I think it is also a mistake to think because CLIP wasn't in individual areas, that nothing was done in those areas. My 102 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 office has been, and I am sure my predecessors before we, very responsive to the requests that members of this Council have. We can show you the number of CVNs written in councilmanic districts for trash and litter, for high weeds, for graffiti, and so forth.

But there are no 10 press conferences for those, there are no 11 stories in the paper for those. There is no, you know, extolling the virtues of this program for those. That's just done on a regular day-to-day basis. And, again, Councilwoman Tasco raised this, and others have raised it. Can't you understand that the average taxpayer living in the 1st or 2nd or 4th or 9th watches this stuff and says, I have as much a problem with high weeds and dog feces and beat-up properties as anybody, why am I an orphan here? I just don't think it is fair. And I think that the decisions were made in a political way, which makes it even further 103 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 unfair, that these neighborhoods -- I mean Council Verna's district I know clearly, because I live across the street from it, has serious problems. There is no reason in the world why that shouldn't be part of the CLIP program. And why we are delaying the implementation of this, to me, is just unbelievable. I am sorry. I think my time went up.

Thank you, Councilman. The Chair recognizes Councilman Nutter.

Mr. Goldsmith, this is not where I was when we left, but you just raised it about the overtime issue. You mentioned that the Greek Picnic was a million dollars in overtime?

I believe that's what my records reflect.

What was the overtime before the size of the Greek Picnic 104 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 dramatically reduced over the past couple of years?

I don't have that information. I could try to get it.

But you just happen to know that it was a million dollars last year?

Yes.

What was the overtime for Welcome America?

I will get that for you in a minute.

Madam Chair, I would only ask that I not be charged the time in terms of delay in getting a response. I think this is -- I think we may be seeing the start of a new tactic, a new stratagem created where you ask a question in 15 seconds and it takes 4 minutes and 45 seconds to get an answer. I am not paranoid, but it is just -- I am starting to notice a pattern.

I will have to get you the answer, Councilman. 105 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

I knew that. Two minutes later I knew I was getting the old, got to get back to you. Okay. All right.

Do you want to know if it was more than a million dollars? Maybe he can answer that question.

Welcome America is about a week. So, I mean, you know, Greek Picnic is a day. It's been decreasing in participants. I mean, I just thought that it was interesting that that, you know, gets highlighted as one of the major cost factors for an event that has, with a great amount of support certainly from the city, turned itself around from some difficult times some years ago; but in a discussion of overtime, is now highlighted as, you know, one of the great drivers of overtime costs. I mean, how many events do we have a year, major events? Either on the Parkway or out in the park?

Councilman, what I 106 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 was suggesting, I was not trying to put the overtime problem on Greek Picnic. I was citing the Greek Picnic as I would the Mardis Gras, and I would site snow storms and so forth that are events that are somewhat out of our control.

I understand that.

Let me answer your question.

Welcome America is actually in our control. I think it is our event. So, what's the overtime.

The actual cost for Fiscal Year '03 was $462,904, of which --

This is for Welcome America?

This is for Welcome America. Which Public Property was $76,000; Streets Department, $17,000; Recreation, $12,000; L & I, $20,000; Police, $250,000; Fairmount Park, $77,000; and Health Department, $601; and Fire, $9,000. So the total cost that we have is 107 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 460 -- approximately $463,000.

Well, how many people came to the Greek Picnic last year? You are really eating into my time here, but now we have a situation.

Since the Greek Picnic -- we don't have those numbers, since it is not an official event. I think, clearly --

I think it is an official event.

Certainly the audience in the park was significantly reduced. Down on South Street and on North Broad Street and so forth, there were a number of people. But we have to prepare for the worst on some of these events.

I understand that. How is it possible that a one-day event could generate a million dollars in overtime, but a week-long event would only 108 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 generate 400 -- what was that number, $462,000? How is that possible?

I think it is probably the amount of police presence that was assumed that was needed at these different events.

So we have an extraordinary planning for the worst with the Greek Picnic. How long is the Welcome America celebration?

I'm not sure. I think it is about ten days.

Ten days?

Yes.

And no 18 particular extraordinary planning goes into that?

Oh, extraordinary planning goes into that.

What's the total cost of the Welcome America event?

According to my numbers that I am showing here, was $463,000 109 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 for Welcome America.

I thought you said those were the overtime costs?

I have these as -- I have these as actual costs.

The actual costs?

Yes.

For the whole event? You are saying just for the city?

No. This is what I am showing, I have to figure out whether it is the entire cost or just the costs we are showing for departmental costs and whether it is overtime. Is that overtime?

I would be hard-pressed to believe that the entire Welcome America celebration costs $400,000.

It is all costs.

It is what costs?

It is all costs for city departments. 110 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

That wasn't my question. My question was, what is the total cost of putting on the Welcome America celebration?

Since I am just responsible for providing the city services, and not for the entire event, I will have to get you answers to that. I don't have them here.

Well, who would know that?

I don't know. I would have to check.

Well, doesn't your office do the bulk of the coordination of that particular event?

If you are asking total costs --

Excuse me. Councilman Ramos.

Just a point of information. So the $462,000, whatever number that was, is not a correct number; is that what you are saying, Mr. Managing Director? 111 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

Those are city costs. Welcome America has other costs associated with it because it involves other people.

So the costs could have been greater than the 400,000-some dollars; right?

Sure. Entertainment costs and so forth.

But you don't have those numbers?

I do not. These are the costs of the city departments.

So who is in charge of the event?

I think Welcome America is -- basically comes out of the City Rep's office, but I'm not totally positive.

Well, I am a little hard-pressed to leave the record the way it is. Because I think it has a tremendous amount of discrepancy, given this conversation. Because it is not possible that 112 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 that event could only cost $462,000 under any set of circumstances. And, to be honest with you, given the number of events in the various venues, I would actually question how you could have ten days of events all over the city and that cost would be half of a one-day event probably involving much fewer people. So what I would like to ask, Mr. Managing Director, is if you could have someone -- because you have a fair number of bodies with you here today -- have somebody figure out who is in charge of the event, what the total costs are. And I would like to know what the answers to those questions are before we close this record on this particular issue.

I think someone just joined the Director at the table.

My name is Bob Allen. I am Assistant Managing Director. I think I can help with some of the issues here because I have worked on some of the numbers and have developed the costs for 113 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 special events with the various departments. Welcome America costs far more than $450,000, but a great deal of that is expensed directly to the event sponsors. And, so, what you see here on this page are only the direct city costs. There are many events involved in that program all week long. And although I don't have the total cost, a lot of it is managed through the City Representative's office, and it is dealt directly with the sponsors.

And do the event sponsors pick up any of the city costs? Are they built into the program.

A portion of what we have here has been reimbursed to the city by event sponsors, but not all.

Then --

In other words, the event costs far more than the sponsors provide.

I would like to see a full breakdown of the entire event. I 114 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 would like to get a better understanding of the overtime costs involved. And then I would like to see for some of the other events that take place in the city, major events, what those costs are, as well.

We have that.

If we are going to have a full overtime discussion, I would like to be able to compare.

We have that detail available.

Okay. And that wasn't even the question that I planned to ask, now my time is up. So I will wait. Thank you, Madam President.

Thank you. The Chair recognizes Councilman Clarke.

Madam Chair, I am looking at Councilman Kelly who wanted to ask a question. He hasn't had an opportunity to go on the first round. I will defer to him. 115 OPERATING BUDGET - BILL NO. 020455 - 4/19/04

Councilman Kelly.

Thank you. I just want to follow up on Councilman Nutter with that Welcome America program. I noticed you do have corporate sponsors for that event. Are there any other events that have corporate sponsors that contribute greatly to the city's part or share of this, of putting on these events?

For Welcome America or for other --

For any other event. I know Welcome America, it costs over $462,000, but there are corporate sponsors who contributed greatly to that. And I would like to know how much they do contribute.

We will get you that breakdown.

Could you give us that breakdown?

Yes

Are there any other events, that you know of, that have 116 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 corporate sponsors that do contribute to the cost of putting on those events?

Yes, there are. I think the bike race, probably the -- well, let me get you -- rather than speculate there are, I would rather be specific with you.

Point of information.

The Chair recognizes Councilman Rizzo for a point of information.

Mr. Managing Director, I think, in all fairness, when we are getting numbers, that we also ought to get some numbers to show what this brings to the city. I think that we need to know the activities for that ten days certainly had some positive effects on the city, and some of the other special events have positive impact. So I don't know, but I would hope so, that there is some way to calculate those positive effects that these special events have in our city. 117 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 Thank you.

Councilman Kelly, please proceed.

Thank you, Madam Chair. You mentioned before, and I want to follow up on Councilman Kenney's questioning, about police overtime. And police overtime, of course, is one of the, I think, major contributors of this deficit that we are facing. Could you tell me that, one of the major problems that we seem to be having is with police overtime relating to the court system. Now, I don't know if this is a question I should hold back and ask the Police Commissioner what's being done about that. I notice in your testimony that you are working with the courts to see what they can do to at least cut back the amount of other time that's necessary.

Well, I think it is -- court overtime, as I have said before, 118 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 is a perplexing issue because it really involves the Police Department, the District Attorney's Office, the courts, and, frankly, the Defense Bar. And to get all four of those in the same room and to agree is not always the easiest thing in the world. But, unfortunately, the court overtime problem shows up on the budget of the Police Department, which does not necessarily control what happens at the court or who the D.A. subpoenas or what type of continuances the Defense Bar asks for. Having said that, I know the Police Commissioner is working, has been working, on how we can do a better job of making sure only the appropriate policemen are subpoenaed. And, so, this is an issue that we think has to be worked with the courts, the Police, the District Attorney's Office.