COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE OF THE WHOLE3 - - -4 Room 400, City Hall5 Philadelphia, Pennsylvania Thursday, May 14, 20096 9:35 a.m. 7 - - - 8 9 PRESENT: COUNCIL PRESIDENT ANNA C. VERNA10 COUNCILWOMAN JANNIE L. BLACKWELL COUNCILMAN DARRELL L. CLARKE11 COUNCILMAN FRANK DiCICCO COUNCILMAN W. WILSON GOODE, JR.12 COUNCILMAN BILL GREEN COUNCILMAN WILLIAM GREENLEE13 COUNCILMAN CURTIS JONES, JR. COUNCILMAN JAMES F. KENNEY14 COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN BRIAN J. O'NEILL15 COUNCILWOMAN MARIA QUINONES-SANCHEZ COUNCILWOMAN DONNA REED MILLER16 COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN FRANK RIZZO17 COUNCILWOMAN MARIAN B. TASCO 18 RESOLUTIONS 090136, 090137, 09033319 20 - - -21 22 V A R A L L O Incorporated Litigation Support Services23 Eleven Penn Center 1835 Market Street, Suite 60024 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.267025 2 1
Good2 morning, everyone. This is a public3 hearing of the Committee of the Whole.4 I would ask Ms. Ortiz to please5 read Resolution No. 090136.6
090136, resolution7 appointing Beverly Coleman to the Board8 of Directors of the Southeastern9 Pennsylvania Transportation Authority.10
We're going to read15 090137, resolution appointing Rina Cutler16 to the Board of Directors of the17 Southeastern Pennsylvania Transportation18 Authority.19 COUNCIL PRESIDENT VERNA:20 Ms. Cutler.21 (Witness approached witness22 table.)23
Good24 morning. Welcome.25 3 5/14/09 - WHOLE - RES. 090136, etc.1 DEPUTY
Good2 morning. 3 Council President Verna,4 members of the Committee of the Whole, my5 name is Rina Cutler, Deputy Mayor for6 Transportation and Public Utilities. It7 is an honor to sit before you today as8 one of Mayor Nutter's two nominees to9 serve as Philadelphia's representative on10 the SEPTA Board of Directors. My three11 decades of experience as a transportation12 professional have prepared me to advance13 the interests of Philadelphia and the14 overall success of SEPTA on the agency's15 Board. 21 Cities and regions across the nation are22 coming to understand the key role public23 transit plays in providing mobility,24 reducing congestion, limiting pollution,25 4 5/14/09 - WHOLE - RES. 1 promoting economic vitality and enhancing2 the quality of life. 5 Philadelphia and the region have6 inherited a wealth of transit, subway,7 trolley and regional rail infrastructure8 that gives the City a strong competitive9 advantage. To replace that10 infrastructure would literally cost11 billions of dollars. It is critical that12 the City leverage these assets to promote13 economic development, green growth and14 neighborhood stabilization. 21 Exceptional customer service paired with22 a safe and reliable transit system is the23 foundation of a world-class transit24 system. SEPTA is making important25 5 5/14/09 - WHOLE - RES. 1 progress in both areas and winning over2 thousands of new riders. 7 If confirmed, I will work on8 SEPTA's Board as I do in City government9 to assist in promoting transit-oriented10 development. 14 Residential, commercial and office uses15 are mixed to create neighborhoods where16 people live, work and play. 21 Ultimately, great service22 complemented by transit-oriented23 development encourages more people to24 take transit and reduces dependence on25 6 5/14/09 - WHOLE - RES. 2 In addition, we all need to3 collectively work to determine what the4 transit system should look like 10, 155 and even 20 years from now. 10 Mobility is the main benefit11 the City and its residents derive from12 the Authority. Nearly every citizen in13 Philadelphia lives within a half a mile14 of a SEPTA bus, trolley, subway or15 regional rail line. The transit network16 coverage does not come close to this17 level of service outside the boundaries18 of the City. Nearly all service on SEPTA19 goes into and out of the City. As a20 result, 80 percent of SEPTA trips are21 taken by Philadelphia residents. Without22 SEPTA, access to commerce, education,23 healthcare and entertainment affect the24 quality of life, and it would be25 7 5/14/09 - WHOLE - RES. 2 Some people have expressed3 concern that the City pays more than its4 fair share of the local subsidy of5 SEPTA's operating budget. It's worth6 noting that just eight percent of SEPTA's7 operating budget is supported by local8 subsidies. A far greater portion comes9 from farebox revenue, 37 percent; federal10 subsidies, 39 percent; and state11 subsidies, 14 percent. Of the local12 subsidy, Philadelphia pays a share that13 is almost equal to the share of City14 ridership, which is 80 percent. 22 The City derives benefits from23 SEPTA far beyond the mobility it provides24 our residents and visitors. Each day,25 8 5/14/09 - WHOLE - RES. 1 SEPTA delivers thousands and thousands of2 regional consumers and commuters to the3 City, resulting in wage and business4 taxes critical to the financial health of5 the City. Local businesses, from6 restaurants to sports teams, benefit from7 regional visitors who use transit. 12 SEPTA's selection of projects13 for funding through the American Recovery14 and Reinvestment Act is one example, or15 more commonly called stimulus funds, is16 one example of our improving17 relationship. The City consulted closely18 with SEPTA on the selection of projects19 within the City.
Many of the projects20 are beneficial to the City, including the21 purchase of 40 hybrid buses,22 rehabilitating the Girard and Spring23 Garden stations on the Broad Street Line,24 station improvements along Chestnut Hill25 9 5/14/09 - WHOLE - RES. 4 Under new leadership at both5 the City and SEPTA, a collaborative6 relationship is growing. While it has7 been common in the past to focus on8 governance and money issues, I prefer to9 focus on what the City and SEPTA can do10 together to create a world-class transit11 system for our residents and visitors,12 with stable funding, excellent customer13 service, planning for the future and14 economic opportunities to provide access15 to jobs both within and outside of the16 City. 20
Thank21 you very much.22 Ms. Cutler, is this23 appointment, does it have a fixed term or24 does one serve at the pleasure of the25 10 5/14/09 - WHOLE - RES. 090136, etc.1 Mayor?2 DEPUTY
Thank5 you.6 The Chair recognizes Councilman7 Goode.8
Thank you,9 Madam President.10 Good morning, Deputy Mayor11 Cutler.12 DEPUTY
In your15 testimony you said that traditionally16 when addressing SEPTA, people have17 focused on governance and money issues,18 but you choose not to. Is that your19 decision? Is that the Mayor's decision?20 Whose decision is that?21 DEPUTY
Well, I22 think there are two answers to the23 question, Councilman. The first is, I am24 certainly aware of them, so it isn't as25 11 5/14/09 - WHOLE - RES. 090136, etc.1 if I put them totally to the side. It is2 certainly the Mayor and my decision that3 we want to establish good relationships4 with SEPTA and we'd like to really focus,5 at least initially, on the things we have6 in common and the things we wish to7 accomplish in common. So I would say the8 decision is coming from both the Mayor9 and myself.10
The20 discussion with the Mayor on SEPTA was21 very early on in his tenure.22
I'm talking23 about minimizing governance and money24 issues. When is the last time you had25 12 5/14/09 - WHOLE - RES. 090136, etc.1 that discussion with the Mayor?2 DEPUTY
Okay. We'll9 start with a series of questions, and the10 first, for the record can you explain the11 dispute between the City and SEPTA12 regarding the lease-leaseback agreement?13 DEPUTY
Well, I14 certainly know that there is a15 longstanding legal battle going on, and I16 believe the primary issue is when the17 City assumes its lease with SEPTA ended18 and when SEPTA assumed their lease ended.19 And I believe that and the -- there was a20 second issue, if you give me two seconds21 here.22
I actually23 asked whether you could explain it.24 DEPUTY
I can25 13 5/14/09 - WHOLE - RES. 090136, etc.1 explain that there is a legal dispute2 that lawyers are handling.3
That's6 what I was looking for to give you.7 Excuse me and let me just take a peek.8 I think there are two things.9 The City believes that the10 lease-leaseback agreement expired in11 December of 2005. SEPTA maintains that12 it does not expire until 2029, and so13 that is the primary issue that is in14 court, I believe.15
I don't18 know that I have a position on it. I19 believe the City's position is my20 position.21
What does22 the lease-leaseback agreement say?23 Doesn't it say December 31st, 2005?24 DEPUTY
I think25 14 5/14/09 - WHOLE - RES. 090136, etc.1 you will need the City Law Department to2 analyze the legal question for you. It3 is a question of when bonds expire, as I4 understand it from a briefing from the5 Law Department. So I believe SEPTA's6 position of 2029 is predicated on the7 facts that there are bonds that were8 issued with those assets, and so until9 the bonds expire, the lease is good.10 I think the City's position has11 been that the language in the lease12 itself is the override. So I believe13 that is the --14
And what is15 City Council's appropriate role in that16 dispute?17 DEPUTY
It's a18 question for the Law Department, I19 believe. Ultimately, there will be an20 agreement, and City Council will need to21 approve it.22
I'm asking23 your position in terms of what you think24 City Council's appropriate role is in the25 15 5/14/09 - WHOLE - RES. 090136, etc.1 dispute over the lease-leaseback, because2 the lease-leaseback agreement was crafted3 in 1968, was meant to exist for 37 years4 and expire December 31st, 2005. That5 lease-leaseback agreement had to be6 approved by City Council. The City7 claims that it ended in December 31st,8 2005. I believe anyone and every member9 of this Council who reads that agreement10 would claim that it ended December 31st,11 2005. Yet, SEPTA chose to dispute it,12 saying it should be extended to 2029.13 City Council approved that14 agreement that expired four years ago.15 The Administration has decided to16 continue that agreement on a year-to-year17 basis. How can the Administration do18 that without City Council, when City19 Council had to approve the original20 agreement?21 DEPUTY
I believe22 that is a question you need to put to the23 Law Department. It is part of the24 litigation.25 16 5/14/09 - WHOLE - RES. 090136, etc.1
Should I ask2 every question to the Law Department?3 DEPUTY
Well, as4 it relates to litigation, it is not my5 role to make that decision.6
No. This is7 not a matter of litigation. I'm asking8 your position on the lease-leaseback9 agreement, not on the legal battle over10 it, but on the lease-leaseback agreement.11 What role do you think City Council12 should be playing and should we be part13 of the negotiation of the new14 lease-leaseback agreement?15 DEPUTY
I believe16 City Council will approve a new17 lease-leaseback agreement when there is18 one.19
You believe20 that we will approve it when there is21 one?22 DEPUTY
I believe23 you will get to approve that or24 disapprove it when there is one.25 17 5/14/09 - WHOLE - RES. 090136, etc.1
Well, we2 will have to approve it when there is3 one.4 DEPUTY
I do not9 know. There are two representatives from10 the City.11
You don't12 know how many members are on the SEPTA13 Board?14 DEPUTY
Do you know16 how many -- when the last City official17 served on the SEPTA Board?18 DEPUTY
No. My21 question is the last time a member of the22 Mayor's Administration served on the23 SEPTA Board, who was that?24 DEPUTY
I do not25 18 5/14/09 - WHOLE - RES. 090136, etc.1 know that.2
Okay. I3 don't have any questions. I can't4 support your nomination.5
Thank6 you.7 The Chair recognizes Councilman8 Green.9
Thank you,10 Madam Chair.11 Councilman Goode introduced a12 bill that I'm pretty sure I co-sponsored13 that deals with the SEPTA lease14 situation, and under the Charter, you15 can't keep renewing things year to year16 to year to year, I don't believe.17 There's a certain limit to that.18 Essentially what you're doing is -- what19 the Administration is doing by continuing20 to extend that lease is subverting the21 intent of the Charter. You can't go year22 to year for 30 years.23 And so in order for me to be24 able to support your nomination, I have25 19 5/14/09 - WHOLE - RES. 090136, etc.1 to know what position you will take as2 the City's representative on the Board3 with respect to that lease. Do you4 believe the lease has expired or not, and5 how are you going to represent the6 interests of Philadelphia on the Board?7 That's a fair question.8 DEPUTY
Well, it9 is a fair question, Councilman, but I am10 not in a position to disregard the Law11 Department and the City's position on12 this, which is that the lease is in13 litigation.14
Well, you15 are being elected -- or you are being16 nominated to represent the City of17 Philadelphia on the Board. You have to18 come before this body to get approved.19 DEPUTY
So it is22 reasonable for us to know your position23 on issues that affect the interests of24 this body. If you're not willing to take25 20 5/14/09 - WHOLE - RES. 090136, etc.1 a position on them -- in other words, if2 we put somebody independent who is not a3 member of the Administration on the4 Board, they are not going to say, I have5 to listen to the Law Department. They're6 going to say, This is what I think and7 this is the position I'm going to take.8 DEPUTY
If you have10 to listen to the Law Department, then11 you're just really an extension of the12 Administration.13 DEPUTY
-- on the16 SEPTA Board, and I would really like to17 see some independent voices representing18 the interests of Philadelphians.19 I'm not -- I mean, if you can't20 take a position on that, can you tell me21 what your plan is with respect to22 protecting the interests of23 Philadelphians, who contribute the vast24 majority of SEPTA funding from the five25 21 5/14/09 - WHOLE - RES. 090136, etc.1 surrounding counties, 64 million out of2 $80 million? How do you think we can get3 more control over what's happening at4 SEPTA, or are you even interested in5 that?6 DEPUTY
Well, I7 don't know from me that the question is8 about control. I think the question is9 about providing excellent service to10 residents of Philadelphia. I think the11 current litigation and the issue of12 whether the lease has expired or not is13 not an issue that the residents are14 either aware of or, frankly, need to be15 aware of. It is two institutions trying16 to resolve a long-term issue.17 I believe if there are -- so I18 believe my role --19
The24 Chair recognizes Councilman Goode.25 22 5/14/09 - WHOLE - RES. 090136, etc.1
Ms. Cutler,2 did you just say that the ridership in3 Philadelphia does not need to be aware of4 the lease-leaseback agreement?5 DEPUTY
I'm6 saying that mostly they are not aware of7 it and it will not impact their8 ridership.9
I believe10 you said, And they don't need to be aware11 of it.12 DEPUTY
But they15 provide 80 percent of the fare revenue.16 DEPUTY
They provide19 80 percent of the fare revenue and we20 provide 80 percent of the subsidy of the21 counties.22 DEPUTY
But the25 23 5/14/09 - WHOLE - RES. 090136, etc.1 ridership doesn't need to care about the2 lease-leaseback agreement?3 DEPUTY
They need4 to care about good service and getting5 where they need to be, where they want to6 go.7
And just pay8 their fare and mind their business?9 Okay.10 Thank you, Madam President.11 DEPUTY
It's not12 a "mind your business." I'd like to13 respond to that, Councilman, because I14 think it's not a fair representation.15 I think they should care,16 because obviously we all support the17 system, but this is really about whether18 or not SEPTA riders in the City or even19 coming into the City have the ability to20 want to continue to ride the system21 because they are getting good service and22 they have a clean, reliable system. And23 I do believe that is what the ridership24 should care about. I believe that is25 24 5/14/09 - WHOLE - RES. 090136, etc.1 what Council should care about, and I2 certainly believe it's what the3 Administration should care about.4 The issue of the lawsuit, which5 I wish to go back to because both of you6 raised it and I know it concerns you,7 because we've certainly had a8 conversation about it, the issue of the9 lawsuit I do not believe at least as we10 are attempting to resolve it -- and I11 believe I explained to you that we were12 meeting with SEPTA and we're trying to13 figure out a resolution for it or at14 least a decision to move it forward and15 let a court decide so that we can get it16 resolved once and for all. I think that17 is ongoing. I am a member of the18 Administration, so I certainly am not19 intending to take a different position20 than the City's Law Department as it21 relates to City litigation.22
So --23 COUNCIL PRESIDENT VERNA:24 Councilman Green.25 25 5/14/09 - WHOLE - RES. 090136, etc.1
I think2 that's fundamentally a problem, because3 what we have here is a situation where as4 soon as you're confirmed, Solicitor Smith5 is going to say there is something in6 dispute, and if she can settle -- she can7 settle that lawsuit and extend it to 20298 without coming before Council, if she9 determines that in fact there's a10 legitimate item of dispute that a11 settlement agreement can resolve. We12 don't happen to believe there is any13 dispute, because the contract language is14 clear, but Administration after15 Administration does this in order to16 avoid coming back to City Council, and if17 you're not willing to sit there and say18 that this is a matter that needs to be19 before City Council rather than resolved20 by the Law Department, then I can't21 support you either.22
Thank23 you.24 Are there any other questions25 26 5/14/09 - WHOLE - RES. 090136, etc.1 from members of the Committee?2 The Chair recognizes Councilman3 Jones.4
Thank you,5 Madam President.6 I'd like to shift gears a7 little bit and get a better sense of --8 I'm sorry Councilwoman Blackwell is not9 here. We share a border on Market Street10 from 4600 to 6300, which is the gateway11 to West Philly and the first gateway to12 suburban Pennsylvania that people see.13 They've undergone over a decade of14 construction/reconstruction and are15 finally coming to the end of that.16 I'd like to hear your vision17 for that stretch of SEPTA elevated. I'd18 like to hear your vision how it relates19 to economic development there. People20 there have suffered a great deal. Over21 50 businesses, small mom-and-pop shops,22 have closed due to that construction, and23 I want to get a sense of whether it's24 transit-oriented development or other25 27 5/14/09 - WHOLE - RES. 090136, etc.1 types of SEPTA synergies how we can bring2 that part of both the 3rd and the 4th3 District back through SEPTA's4 involvement.5 DEPUTY
Yes. I6 do think that ultimately it's a superb7 location for transit-oriented8 development, and I think it is one of the9 three that the City's Commerce Department10 is looking at. And I know there is a11 group of folks in the Commerce Department12 looking at TRID legislation, and that is13 one of the areas.14 I also have had several15 discussions with SEPTA relative to TODs16 and have also found them very agreeable17 to the notion. I mean, it goes back to18 the first thing I said, which is that I19 don't think there's anything more20 fundamental to the health of the City21 than a first-class transit system. And22 so if you can build jobs, recreational23 areas and housing around transit24 stations, you get to solve any number of25 28 5/14/09 - WHOLE - RES. 090136, etc.1 economic development issues all in one2 plan.3 So I am very supportive of TODs4 and I believe SEPTA is very supportive of5 it as well, and it is my understanding6 that Beverly Coleman, who is the other7 nominee, will be speaking a great deal8 about TODs in her testimony.9
Can you10 further enlighten us and this body on11 your role with the signage issue, LCDs,12 street furniture, what your vision is13 regarding that as a complement to the14 ridership that get to and from work to15 home to recreation along that. Is there16 a vision for that street furniture and17 signage?18 DEPUTY
Well, the19 part of the street furniture related to20 SEPTA is twofold. One is obviously the21 transit shelters, and the information22 that's put on them in many ways is far23 improved from previous information.24 The second piece to it and a25 29 5/14/09 - WHOLE - RES. 090136, etc.1 conversation I regularly have with SEPTA2 and feel pretty strongly about is that we3 really need to put out new information4 for folks who are not regular users of5 the system in order to make them6 comfortable when they ride the system.7 And so on-time information will be part8 and built into the new bus shelter piece9 of that contract, which will enable10 technology to indicate when the next bus11 is coming or other kind of public service12 information. It will be LED lighting as13 a scroll on the bus shelter the way we're14 trying to get that specked. SEPTA is15 working on the on-time information16 technology as we speak, and we think that17 will be a big asset to the bus shelter18 information.19
Finally,20 when does the labor agreement with SEPTA21 expire?22 DEPUTY
I believe23 it expires the end of June. I believe it24 is -- I'm not privy at the moment to the25 30 5/14/09 - WHOLE - RES. 090136, etc.1 labor contract negotiations, but I2 believe they are on hold, perhaps waiting3 for the City to resolve their labor4 contract.5
I guess the6 final issue I have and question I have7 for you is the question of subway safety8 and also how we work with the School9 Board to deal with some of the truancy10 issues. Councilman Greenlee and I11 co-sponsored legislation on truancy, and12 I wanted to know if there is an ongoing13 working committee involving you as Deputy14 Mayor of Transportation, the School Board15 and others to deal with some of those16 issues, particularly related to young17 people that use the system.18 DEPUTY
The lead19 person for that is actually Deputy Mayor20 Gillison because of the public safety21 issues, but you should be aware, as an22 aside, that one of the categories of23 stimulus dollars that we are looking at24 is one that will allow for an expanded25 31 5/14/09 - WHOLE - RES. 090136, etc.1 use of cameras down in the system, with2 access for both SEPTA police and City3 police.4
Thank you,5 Madam President.6 COUNCIL PRESIDENT VERNA:7 You're welcome.8 Are there any other questions9 from members of the Committee?10 (No response.)11
Thank you14 very much.15 MR. McPHERSON: Resolution16 090136, appointing Beverly Coleman to the17 Board of Directors of the Southeastern18 Pennsylvania Transportation Authority.19 (Witness approached witness20 table.)21
Good morning,24 Council President, and good morning,25 32 5/14/09 - WHOLE - RES. 1 other members of Council. My name is2 Beverly Coleman. 9 Although I am not a native10 Philadelphian, I am truly a11 Philadelphian, having spent the better12 part of the last 30 years here. 19 As a Philadelphian, I truly20 appreciate one of our greatest assets,21 our neighborhoods. That appreciation and22 commitment to working to ensure that23 Philadelphia's neighborhoods are vibrant24 and healthy, are truly places where25 33 5/14/09 - WHOLE - RES. 4 At the core of my work is the commitment5 to realize the potential of6 Philadelphia's neighborhoods. I have7 pursued the goal of improving8 neighborhoods from my first position with9 the Philadelphia Commercial Development10 Corporation, working on community11 economic development programs, to serving12 as Assistant Director for a13 neighborhood-based development group in14 Northwest Philadelphia, the Ogontz Avenue15 Revitalization Corporation. 20 I am now the Executive Director21 of NeighborhoodsNow, a non-profit22 organization that evolved from a23 successful community development program24 called the Philadelphia Neighborhood25 34 5/14/09 - WHOLE - RES. 1 Development Collaborative. 11 We recognize the value of12 another one of Philadelphia and the13 region's greatest assets, its14 transportation system. SEPTA is the15 fifth largest regional public transit16 system in the country, averaging 32517 million ride trips annually. It has 14218 routes and more than 15,000 stops19 throughout the Delaware Valley. Yet,20 potential real estate growth around21 neighborhood transit stations is stymied22 by zoning limitations, undesirable land23 uses, including long-term vacancies, and24 safety concerns. Recognizing these25 35 5/14/09 - WHOLE - RES. 13 We've made progress toward14 making TOD a reality in Philadelphia and15 we could not do it alone. When we16 testified before Council, our partners17 included SEPTA, the Delaware Valley18 Regional Planning Commission, Asociacion19 Puertorriquenos en Marcha, Enterprise20 Heights, the Philadelphia Association of21 Community Development Corporations,22 10,000 Friends, Econsult Corporation and23 the City Planning Commission. These24 partners share our vision, to promote25 36 5/14/09 - WHOLE - RES. 12 These were the first two TRID plans in13 Philadelphia. 18 For the first time in many19 years, SEPTA is thinking forward, with20 the completion of a five-year strategic21 business plan. SEPTA is serious about22 changing the way they do business with a23 renewed emphasis on customer service,24 sustainability and commitment to make25 37 5/14/09 - WHOLE - RES. 1 public transit the best option for moving2 around the region. Access to3 transportation has never been more4 critical. 10 These uncertain economic times11 challenges us to operate more efficiently12 and effectively. 25 38 5/14/09 - WHOLE - RES. 9
Thank10 you very much.11 The Chair recognizes Councilman12 Greenlee.13
Very14 quickly, Madam President. This is more15 of a comment than a question.16 I've worked with Ms. Coleman on17 the TOD legislation that Councilman Jones18 and I introduced for a long time, and we19 even shared an editorial, a letter to the20 editor together, and I can tell you, she21 certainly understands transportation in22 this city. She understands the City of23 Philadelphia. And in one person's24 opinion, she'd be an excellent addition25 39 5/14/09 - WHOLE - RES. 090136, etc.1 to the Board.2 Thank you.3
Thank4 you.5 The Chair recognizes Councilman6 Goode.7
Thank you,8 Madam President.9 Good morning, Ms. Coleman.10
Ms. Coleman,12 unlike the other nominee, do you know how13 many members are on the SEPTA Board?14
Unlike the16 other nominee, do you know how many17 members are on the SEPTA Board?18
But Deputy24 Mayor Cutler's testimony was that we pay25 40 5/14/09 - WHOLE - RES. 090136, etc.1 80 percent of the subsidy of the2 counties. We provide 80 percent of the3 fare revenue. Do you think that's fair,4 that we only have two out of 15 seats?5
Let me say this:6 I may not think that -- I would prefer it7 to be otherwise and for the City to have8 a higher representation --9
It's really10 a yes/no question. Do you think it's11 fair?12
Thank you.15 Thank you, Madam President.16 COUNCIL PRESIDENT VERNA:17 You're welcome.18 Are there any other members who19 have questions?20 Councilman Jones.21
Thank you,22 Madam President.23 I'll ask you the same question.24 One million people ride the El from 46th25 41 5/14/09 - WHOLE - RES. 090136, etc.1 to 63rd Street every month. It is the2 border that separates the 3rd District3 from the 4th District. It has undergone4 years and years of renovation.5 What is your vision by way of6 economic development, transit-oriented7 development for that area?8
Councilman, we9 were actually able to do planning at the10 46th and Market transit station and11 looking at the use of land within a half12 a mile of that station, and so I'll13 generalize about opportunities between14 63rd Street and 46th Street.15 We think there's an opportunity16 to do higher-density, mixed-use17 development around all of the station18 hubs. We think that that needs to be19 integrated with open space. When we did20 the planning, we certainly heard concerns21 from residents, many of whom are elderly,22 about safety, and we realize that there's23 a need to not only look at the transit24 stops but also to think about how they25 42 5/14/09 - WHOLE - RES. 090136, etc.1 connect to the bus and how they connect2 to other modes of transportation.3 So I think that there's4 enormous opportunity there, but I do5 think there's an opportunity to do6 higher-density development adjacent to7 the stations.8
There was a9 considerable amount of capital invested10 to redo that system. It is a question of11 striking while the iron is hot. And so I12 appreciate your vision of that, and you13 have shared it with me. I wanted to get14 it on the record so that you would not15 forget once you were on the SEPTA Board.16 Thank you, Madam President.17
I want24 to speak to -- there's a great interest25 43 5/14/09 - WHOLE - RES. 090136, etc.1 on the transit-oriented development piece2 of this and the opportunities. I3 represent about ten of the El stops along4 the Market-Frankford Line, where there5 has been a lot of community work done6 because of public investment in those7 areas. It is very important for me that8 those community organizations who have9 worked for very long to make those10 areas -- to revitalize those areas be11 important partners as we move forward.12 So I just wanted to put on the13 record that one of the things that I am14 hopeful that you will bring to the15 discussion is understanding that type of16 public investment, because now there's a17 lot of private interest in those areas18 because of the work that they did and19 that they not be taken out of the20 equation, because they were there when no21 one else wanted to be there, and they are22 important stakeholders in it for the long23 run versus just a private investment.24 So I just wanted to say that I25 44 5/14/09 - WHOLE - RES. 090136, etc.1 look forward to you bringing that2 perspective, not only to the Board but as3 we develop transit-oriented development.4
Are9 there any other members that would like10 to be recognized?11
Madam12 Chair?13 COUNCIL PRESIDENT VERNA:14 Councilwoman Brown.15
Please19 discuss, if you would, briefly your view20 or perspective on the role SEPTA Board21 members can play when it comes to the22 Mayor's goal for a greener city, tactics23 that address sustainability and limiting24 air pollution.25 45 5/14/09 - WHOLE - RES. 090136, etc.1
I think that2 SEPTA is an important part of addressing3 sustainability. Obviously we need people4 to actually increase the use of public5 transportation. I think as a Board6 member, it's to promote that, to -- I7 think one way to increase ridership is8 for SEPTA to have better customer9 service, and they're focused on that.10 I think there are other things11 that contribute to sustainability. I12 remember earlier being in Council and13 Councilman DiCicco actually talking about14 the idling of buses on Market Street.15 So I think that there are16 things that SEPTA can do in terms of its17 operations to actually improve their18 service and to be much more focused on19 green -- on promoting greening and20 promoting a safer environment.21
Do you22 know if there currently exists a23 subcommittee on the SEPTA Board that24 deals with that issue?25 46 5/14/09 - WHOLE - RES. 090136, etc.1
Thank you,4 Madam Chair. Thank you, Madam President.5 COUNCIL PRESIDENT VERNA:6 You're welcome.7 The Chair recognizes Councilman8 Clarke.9
One quick15 question. I know that you've been16 intimately involved in the TOD process.17 If you're appointed to the SEPTA Board,18 will that work continue or will there be19 somewhat of a conflict possibly?20
As far as I know,21 it isn't a conflict. It's something that22 I personally am committed to and it's23 something that my organization is24 committed to. Whatever conflicts, if25 47 5/14/09 - WHOLE - RES. 090136, etc.1 there are any -- I mean, we don't do2 direct development ourselves. So I want3 to continue to promote transit-oriented4 development.5
I mean, I6 appreciate the work you've done, because7 I know you worked on a couple in my8 district, and you do good stuff.9
I just12 would like not to see you have to remove13 yourself from that process, particularly14 given the fact that we're right in the15 midst of approving a couple of those16 districts. Can you just check that?17
I will check18 that, but there are other people in my19 organization who could be spokespeople20 for that.21
I know22 that, but, you know...23 All right. Thank you.24
Thank4 you.5 Any other questions from6 members of the Committee?7 (No response.)8 COUNCIL PRESIDENT VERNA:9 Ms. Coleman, thank you very much.10
Thank you.11 MR. McPHERSON: Resolution12 090333, resolution confirming the13 appointment of Edward Kung as a member of14 the Board of Ethics to serve in the term15 ending November 16th, 2012.16 (Witness approached witness17 table.)18
Thank you. My name21 is Edward Kung and I'm a nominee for the22 Philadelphia Board of Ethics. I'm23 honored to be here. Thank you for the24 opportunity to testify before you.25 49 5/14/09 - WHOLE - RES. 090136, etc.1 I believe for you to properly2 consider my nomination, I should tell you3 a little about myself and my reason for4 wanting to serve on the Board of Ethics.5 I was born in Shanghai, came to6 the United States in 1949 to escape the7 communist takeover of China, and was8 naturalized under the Refugee Relief Act9 of 1952. I received a Ph.D. degree in10 Chemical Engineering from Carnegie Mellon11 University and worked in a steel company12 initially on the first process control13 computers in the steel industry and then14 on operations research of management15 signs.16 I moved to Philadelphia in 196817 when I was hired by the Insurance Company18 of North America, or INA, as its first19 Director of Operations Research. In the20 early '70s, I was Vice-President of the21 Computer Division at INA and led the22 conceptual design of the first online23 computer system in the property and24 casualty insurance industry.25 50 5/14/09 - WHOLE - RES. 090136, etc.1 After that job, I served as2 either Chief of Staff or Chief Executive3 Officer of a number of INA and then CIGNA4 property and casualty subsidiaries.5 In early '80s when the property6 and casualty business was suffering a7 severe downturn, I was asked to head the8 training department for a couple of9 years. My major assignment was to ensure10 that our field underwriters are well11 informed on home office and the writing12 and pricing policies and guidelines.13 Because we had thousands of underwriters14 located nationwide, I worked with AT&T15 and pioneered teletraining to accomplish16 as a cost-effective way of accomplishing17 that training.18 Since the mid '50s, I have been19 engaged in Philadelphia's non-profit20 sector. I have served on a wide range --21 on the board of a wide range of22 non-profit agencies, including the23 Community College of Philadelphia, the24 Atwater Kent Museum, the Parents Union25 51 5/14/09 - WHOLE - RES. 090136, etc.1 for Public Schools, the Center City2 Residents Association and the3 Philadelphia Chinatown Development4 Corporation. I'm currently Vice-Chair of5 the Board of the Philadelphia Foundation,6 Secretary of the Board of On Lok House,7 which provides Section 8 housing to8 low-income seniors in Chinatown and9 operates a social service center for10 seniors funded by the Philadelphia11 Corporation for Aging. I'm also a Board12 member at the Penn Asian Senior Services,13 a member of the Steering Committee of14 Asian Americans in Philanthropy, and an15 Advisory Board member at the Philadelphia16 Chinatown Development Corporation.17 My wife, Marcia, who is sitting18 behind me in red, has also been active in19 the non-profit sector in Philadelphia.20 She's currently Board Chair of the21 Children's Village Childcare Center,22 which serves low-income families in23 Chinatown. She's also a volunteer in the24 One Book, One Philadelphia program at the25 52 5/14/09 - WHOLE - RES. 090136, etc.1 Philadelphia Library and is a democratic2 committee woman in the 8th Ward.3 I was honored and excited when4 Mayor Nutter offered to nominate me to5 the Board of Ethics, because as an6 engaged citizen, I want to do my part to7 help the City government maintain high8 ethical standards. Even though I'm not a9 lawyer, as a corporate executive and10 non-profit leader, I'm well versed in11 issues of conflict of interest and12 relationship with vendors. I'm also used13 to making decisions on legal issues with14 the advice of counsel, and I believe that15 my training and computer background could16 be of use to the Board of Ethics.17 Thank you again for your time18 and for considering me.19
Thank20 you very much.21 The Chair recognizes Councilman22 Greenlee.23
Thank24 you, Madam President. I know we're25 53 5/14/09 - WHOLE - RES. 090136, etc.1 running late, but I wanted to ask a2 couple of questions.3 Good morning, sir.4
Mr. Kung,6 do you believe that the Ethics Board7 should have any role in the influence of8 elections?9
Should11 the Ethics Board have any role in the12 influence of elections?13
No.19 Should the Board of Ethics have a role in20 influencing elections?21
Should23 they take efforts to make sure that that24 does not happen in any information they25 54 5/14/09 - WHOLE - RES. 090136, etc.1 release?2
You think5 they do? Okay.6 Do you think, then, that there7 should be some consideration on timing8 when they release information as to how9 that might affect an election?10
Okay. So13 I have to ask then finally, the issue --14 there was an issue where there was15 information released on two candidates16 for election six days before election.17 Do you think that was appropriate?18
I don't know the19 reasoning of the Board of Ethics, so20 before I can answer this question, I21 obviously need to know their reasoning.22
Okay.23 But generally would you have a problem24 with information being released that25 55 5/14/09 - WHOLE - RES. 090136, etc.1 close to an election? Forgetting the2 specifics of this particular matter,3 because I think it's a broader issue than4 that.5
So just8 so I could get an answer on record. I'm9 sorry. I don't mean to push you, but do10 you have concern about information being11 given out six days or a week before an12 election, findings of the Board? Not in13 a specific case, just generally would14 that concern you as a member of the15 Board?16
As I understand it,17 there's a timeline. There's a timeline18 on when information is provided to the19 Board of Ethics when they can analyze it20 and when they can act on it. That may be21 the cause. And to me, there is also the22 question that if the issue is brought up23 after the election is over, then it may24 not get acted on.25 56 5/14/09 - WHOLE - RES. 090136, etc.1
Well,2 doesn't that slightly contradict the3 other statement, though, as far as not4 having influence on an election? If5 you're giving out information, whatever6 that information is, whether there's7 still an investigation going on or there8 was some resolution of a problem,9 whatever that case may be, is that a10 concern that -- is that something that11 you think should at least be discussed as12 far as policy of the Ethics Board?13
Okay.16 Thank you for your time, sir.17 Thank you, Madam President.18
Are19 there any other questions from members of20 the Committee?21 The Chair recognizes22 Councilwoman Tasco.23
Good24 morning, Mr. Kung. What is your thought25 57 5/14/09 - WHOLE - RES. 090136, etc.1 regarding Ethics' staff members2 discussing cases with the press before3 they've been resolved by the committee?4
Do you7 think the staff of the Ethics Board8 should be in communications with the9 press regarding cases before the Board10 prior to the resolution, the Board making11 a decision?12
Oh, before? I see.13 Before the Board voted on the resolution?14
Discussing it? I16 have to plead ignorance. I don't know17 how the Board of Ethics operate, so I18 have to look into this issue.19
Do you20 have any notion of how the staff should21 behave relative to its ethics?22
Well, I think23 certainly it should be -- the staff24 should be held to the highest ethical25 58 5/14/09 - WHOLE - RES. 090136, etc.1 standard and should be guided by the2 Board and its actions.3
Just a12 couple of quick questions. One -- and I13 know the answer and I know what you're14 going to say, but I have to ask it. Is15 it your belief that the Ethics Board16 should interpret the law or make law?17
Strictly20 interpret the law.21 In terms of the interpretation22 of the law, the ability to seek counsel23 on that, outside of the Ethics counsel or24 the staff, do you think the Ethics Board25 59 5/14/09 - WHOLE - RES. 090136, etc.1 should be in a position to do that?2
I'm used to as a3 business executive or non-profit leader4 seeking counsel, both inside and outside.5 So my answer would be yes.6
So you7 believe in getting the widest level,8 within reason, of advice on a particular9 matter --10
-- not12 strictly interpreting the law based on a13 legal staff member's interpretation,14 understanding that --15
Well, I18 understand that. There's a lot of19 volunteerism going on right about now20 based on President Obama's call to21 service. So I think we can get advice22 without having to pay for it, and then I23 do understand that sometimes you get what24 you pay for, but I think that we'd be in25 60 5/14/09 - WHOLE - RES. 090136, etc.1 a position to get some good advice.2 Do you believe that prior to a3 ruling or prior to public action, that4 there should be a conversation with any5 person or entity that will ultimately be6 a part of that ruling? It could simply7 be that an individual or a person didn't8 understand the interpretation of that9 law. Should they be given that level of10 flexibility to -- because sometimes11 people just simply didn't understand that12 they were not supposed to do something.13 This happened recently. I'm not going to14 get into the particulars, but there was a15 wide-ranging issuance of an order by the16 Ethics Board, and I know a lot of the17 people who were involved, and they simply18 didn't understand what it was alleged19 they had done, but they were fined20 basically without the ability to respond21 in a reasonable way.22
When talking with23 Councilmembers, I've heard this issue,24 and if I'm confirmed to the Board of25 61 5/14/09 - WHOLE - RES. 090136, etc.1 Ethics, I will look into it.2 Generally, I believe in taking3 the least amount of action to achieve the4 desired outcome. So it's the long-term5 outcome that is important to me.6
Right. So7 it's not your need to say, "I got you,"8 but it's more a need to make sure that9 everybody understands and then follows10 the law, as opposed to getting you before11 you have an ability to understand and12 follow the law?13
That's why I feel my14 experience in training may be of use,15 because training is -- getting people16 well informed is the most -- is a very17 important part.18
Thank you,22 Madam President.23 COUNCIL PRESIDENT VERNA:24 You're welcome.25 62 5/14/09 - WHOLE - RES. 090136, etc.1 The Chair recognizes Councilman2 Green.3
You have a8 very impressive resume. I have never met9 you. Based on this resume, I would10 certainly --11
Oh, okay. I14 apologize. I forget.15 Based on your resume, I would16 want you on the Board of Directors of a17 start-up company I was founding. I would18 want you as an advisor to a scientific19 company or some other kind of company.20 Your talents are -- you have a very21 impressive history. You've been very22 successful. But I'm not sure why I want23 you on the Ethics Board, because I don't24 know what you currently know about what25 63 5/14/09 - WHOLE - RES. 090136, etc.1 our ethics laws are or what the current2 position of the Ethics Board is on3 certain matters, and I want the4 opportunity to know where you come down5 on some things before you're there, which6 I think -- in other words, Councilman7 Clarke asked a question about whether or8 not the Ethics Board should make law or9 interpret law. Well, there's been10 precedent in this city for 50 years about11 what the law is, and it's a series of12 City Solicitor opinions that exist that13 interpret the Charter. Under a current14 City Solicitor opinion, the Ethics Board15 can ignore 58 years of precedence, which16 means that the Ethics Board is17 essentially making law because all of18 that precedence is irrelevant. So in19 effect, the Ethics Board is in the20 law-making business, and we don't know21 what the laws are that apply to us or any22 other elected official, because there's23 been no statement of the status quo or24 anything else.25 64 5/14/09 - WHOLE - RES. 090136, etc.1 So, frankly, before -- rather2 than sit here and question you about what3 you currently think of the ethics law or4 what your interpretation is of the5 Charter or even how you would approach6 reaching a determination on this issue or7 that issue, I would like the opportunity8 to meet with you in person or with a9 group of fellow Councilpeople. And I10 don't -- this is no reflection on you,11 but I am very surprised the12 Administration would bring you before me13 without having set up an appointment so14 that you and I can talk.15 This issue has been a very16 important one to me. I have testified at17 the Mayor's Commission -- or Task Force18 on ethics, worked with them on their19 report, and, frankly, we should have had20 an opportunity to speak and meet21 before -- or speak about this issue22 before today.23 So I don't really have any24 questions for you now, because I really25 65 5/14/09 - WHOLE - RES. 090136, etc.1 have an hour's worth of conversation I'd2 like to have with you.3 So I'd just like to ask that we4 hold this until you have an opportunity5 to meet with Councilpeople and we can6 understand where it is you're coming7 from.8 Thank you, Madam Chair.9 COUNCIL PRESIDENT VERNA:10 You're welcome.11 Are there any other questions12 from members of the Committee?13 (No response.)14
This21 concludes our public hearing.22 The Chair recognizes23 Councilwoman Tasco regarding Resolution24 No. 090136.25 66 5/14/09 - WHOLE - RES. 090136, etc.1
Madam2 President, Resolution 090136, I move that3 we report this resolution out.4 (Duly seconded.)5
All6 in favor will indicate by saying aye.7 (Aye.)8
The12 ayes have it, and Resolution No. 09013613 has been reported out of Committee with a14 favorable recommendation.15 Did you make a recommendation?16
Oh,18 so we're just reporting it out. Very19 well.20 The Chair recognizes21 Councilwoman Tasco regarding Resolution22 No. 090137.23
Madam24 President, I report out Resolution25 67 5/14/09 - WHOLE - RES. 090136, etc.1 090137.2 (Duly seconded.)3
Thank you,10 Madam Chair.11 I would just like to say that I12 will vote to move Ms. Cutler forward to13 the next step, but I think there are many14 Councilpeople who have issues and would15 have liked the courtesy of a meeting16 prior to a SEPTA Board nomination17 hearing. So that I will ask that we have18 that meeting with Ms. Cutler, either one19 or several of us together, to save her20 time to try to address some concerns we21 have about how effectively she's going to22 represent the interest of citizens versus23 what could be a different view in the24 Administration, at least in my view.25 68 5/14/09 - WHOLE - RES. 090136, etc.1
So I would4 just like to put that on the record, that5 we have that opportunity prior to a final6 vote on this matter.7
Very8 well.9 A motion was made by10 Councilwoman Tasco that we report11 Resolution No. 090137 out of Committee,12 and I believe it was seconded.13 All in favor will say aye.14 (Aye.)15
The19 ayes have it. The record will reflect20 that Councilman Goode voted in the21 negative.22 The Chair recognizes23 Councilwoman Tasco regarding Resolution24 No. 010333.25 69 5/14/09 - WHOLE - RES. 090136, etc.1
Madam5 President, because many of the6 Councilmembers have not had an7 opportunity to sit with Mr. Kung, we are8 going to hold this resolution until that9 process takes place.10
Very11 well.12 This concludes the hearing of13 the Committee of the Whole.14 (Committee of the Whole15 concluded at 10:35 a.m.)16 - - -17 18 19 20 21 22 23 24 25 70 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on May 14, 2009, and that7 this is a true and correct transcript of same.8 9 10 11 12 13 ______________________________14 MICHELE L. MURPHY15 RPR-Notary Public16 17 18 (The foregoing certification of this19 transcript does not apply to any reproduction20 of the same by any means, unless under the21 direct control and/or supervision of the22 certifying reporter.)23 24 25