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.
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.
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.
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.
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. 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.
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.
Whether it was you or someone else, we did speak about it.
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.
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. 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.
Close to that, yes. Although, more of it has been committed by now.
Thank you very much. The Chair recognizes Councilman Nutter.
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?
Councilman, those are employees of other departments that we use --
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?
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.
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.
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 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?
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.
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.
We will get you the right number. But your question is, how many lots we expect to clean, Councilman?
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
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?
Well, if you could forward it to the Chair, I would greatly appreciate that.
Councilman, while 49 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 you are on that issue, may I just ask a question?
I do notice that we have 87 people assigned to your department from MOCS. Are they part-time or full-time employees?
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.
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.
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 Councilman. The Chair recognizes Councilman Ramos.
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
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, between Arch and JFK. 56 OPERATING BUDGET - BILL NO. 020455 - 4/19/04
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.
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?
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?
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.
Councilman, your time is up and Councilman Rizzo has a point of information.
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.
All the other titles that have secretary, Secretaries of education --
Just the 63 OPERATING BUDGET - BILL NO. 020455 - 4/19/04 operating departments?
The operating departments do, Secretary of Housing does not.
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?
Assistants are -- 20 assistant -- that have the title of Assistant Managing Director.
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.