It's there. We have only used it in punitive situations; that is, we've not renewed a contract for failure to perform and large 1338 2/20/01 OPERATING BUDGET non-performance penalties.
So paying role or wages then, the current standard across the city, would not be a cost for not renewing?
We are looking at whatever options are available to us without overly complicating our bid.
So if we would have -- and your other hat was at the labor standards. If we would pass for service workers a similar legislation as we passed for the building trades in terms of prevailing wages, then the level and the base that you would have to begin in bidding any contract would be that prevailing wage in terms of service contracts?
It would. I mean, we try to plan our way around these potential conflicts in the sense that we've done the best we can to adjust renewal cycles to points where we know the industry. We will be past industry negotiations, so that the wage rates are more or less set before we go into 1339 2/20/01 OPERATING BUDGET the market. It didn't happen this time. We got into the market first because we were on the end of our three-year cycle. And it's not out of the ordinary for unions to make specific contract-related agreements that are different than prevailing wage.
When you enter into these bid contracts, how far do you go in investigating each of the bidders in terms of their reputation in the field and in the market and so on? Because not every low bidder should be the individual that gets the contract, and I don't believe that that's the only criteria that we should use.
Councilman, it's not the only criteria. We actually state in any contract, whether it's an RFP or a bid, what it is that we, the city, expect the potential vendor to have in terms of experience and background.
Well, for example, like V Tech, which for years V Tech has had an awful reputation with the workers in terms of exploiting, in terms of its treatment of the workers, in terms of the way it deals with the work force, and it 1340 2/20/01 OPERATING BUDGET seems that we continuously are considering them for a contract. We should say to them, You don't meet these standards. Not just low bid, but you don't meet these standards. They should be a list of not being able to accept any bids from a company like that.
Well, Councilman, we as Public Property in some instances had reported to either procurement and law instances where vendors weren't complying, as the commissioner mentioned earlier, either in performance or in the area of labor. So we do take action when needed. I don't know anything about V Tech.
I mean, we're not familiar, because they're not doing business with Public Property. They may be doing business with SEPTA, which --
But if they go through the MDO, don't they have to go through you?
I don't know what the MDO involvement is. I really don't. SEPTA is its own entity.
No, but the managing director's office. Wouldn't that be going through 1341 2/20/01 OPERATING BUDGET you? Don't those contracts have to go through the Public Property department?
No. Managing director's office is a legally constituted entity within the structure of government. The difference is that he's the appointing authority and the contract authority for his agency, as I'm the contracting and the appointing authority for my department.
So the managing directors can negotiate a separate contract without going through Public Property?
We should ask that question, then, of the MDO about V Tech. Point well taken. All right. Thank you very much.
Thank you. The Chair recognizes Councilman Cohen. 1342 2/20/01 OPERATING BUDGET
At the time the bids went out, do you know when that was?
Wouldn't the office have available if anybody researched it the knowledge if there was a new date coming up for collected bargaining in the private field or the likelihood that there would be a change in the rate?
The reason I raise that question is, it seems to me not that something happened after we put out the bid and maybe even entered on a contract, but that what the city tried to do was to take advantage of a situation thinking it would slip into a situation where it has used an old prevailing wage rate and for a three-year period did not have to deal with the new wage rate. Certainly people in the labor office must have known about what is going on in the private field. Did you have union approval when you put this out to bid? Did SEIU say, That seems fair to us?
No, Councilman. Our procedure is that the procurement department, if 1343 2/20/01 OPERATING BUDGET it's a bid -- and in this case it was -- and the labor standards folks and myself, we meet and we discuss what we're going to put in as a prevailing wage, regardless of what the contract service is. So to answer your question, procurement commissioner and the director of labor standards and I met with the commissioner, and we discussed what we were going to request as a prevailing wage. And it was higher than the existing wage and it has an increase every year, if there is a renewal of the contract.
Why could it not have been pegged to any increases that may occur in the private field? Why are we in this position where we're underpaying? Because we're clearly underpaying --
Well, if I could respond. Underpayment is a fact in retrospect. When we a year ago were looking at the three-year span, obviously our obligation is to control our spending and project it to the extent that we can.
That's not your only obligation. Your obligation is also to pay fair wages.
And not to take advantage of gimmicks like an old contract is about to expire, let's put out a bid now on under those prices and maybe we can kind of manage the contract.
Well, I can appreciate the situation you're in and the position you're taking. We've got to lock in our expenses. We don't have flexibility in the budget. That is a year-long extended process, and we're basically locked into whatever we estimate for the year's time. There was a scale in the three years, and because of circumstances outside of our control, the scale that was an increase and favorable a year ago isn't as favorable as it is now because of this other market sector.
Thank you, Madam Chair. I think this is an area that we're going to have to consider some legislation on to both give you protection in your contract for work and to make sure we get fair pay for the employees. Thanks. Thank you, Madam Chair.
Thank you. Are there any other questions from 1345 2/20/01 OPERATING BUDGET members of the committee? (No response.)
Thank you. Waste Management will be next. Good afternoon, gentlemen. Thank you for your patience. Mr. Harrison, we do have a copy of your testimony, which will be given to the stenographer. It will be transcribed in full. May I request that you summarize your testimony, please.
Yes, Madam Chair. President Verna and distinguished members of City Council, my name is Riley Harrison. I'm the fleet manager for the City of Philadelphia. With me today is Robert Fox, my director of administrative services, and we thank you for the opportunity to present testimony supporting our FY2002 budget request for the general fund of $57 million. In addition to that, we're requesting the water fund of 6.7 million and the aviation fund budget for $7.4 million. 1346 2/20/01 OPERATING BUDGET Currently OFM maintains an act of fleet of 6,003 vehicles. We have a very diverse fleet. It represents a significant investment of public funds. The present book value exceeds $248 million. OFM has always emphasized preventive maintenance as an important component of effective fleet management. Over the past seven years, vehicle availability and reliability has improved dramatically and OFM contributes this in significant measure to preventive maintenance. We will continue our education and high school internship program. In fact, as of today, 10 percent of our technical work force is the product of the high school internship program. We will continue the expansion of our automotive service excellence program, our Master's program, and to date, 30 percent of our technical work force is Master-certified. In conclusion, OFM will continue to provide quality service in a fiscally prudent manner. Thank you very much for the opportunity to appear before you, and I'll be happy to answer any questions you may have. 1347 2/20/01 OPERATING BUDGET
Thank you very much. Mr. Harrison, please elaborate on the fleet reduction program. Is this program targeted for the whole fleet or is it just the city's general fund fleet? And can you tell us, what is the criteria you will be using in making your recommendations for reductions?
Thank you. First of all, the fleet reduction program is for both the general fund, the water fund and the aviation fund. It's an opportunity for us to look and for each department to look within their fleet based on their core missions to look at how their vehicles are being utilized, what vehicles may be underutilized or if there's a need for less or more redundancy. A one percent target per year over five years is a very conservative percentage. Factors such as fuel utilization, mileage utilization, idling time are now available where we can provide each operating department with the statistics on how various classes of vehicles are being utilized. They look within their dispatch and look within their core mission and they decide what vehicles should be targeted for reduction. 1348 2/20/01 OPERATING BUDGET
Can you tell us a breakdown of the city's fleet by fund, please? I think you said that earlier, but can you just tell us again?
For the general fund, it's $57 million, for the water fund, it's 6.7 million, and for the aviation fund, it's 7.4 million.
Thank you. What is the projected breakdown of the general fund fleet purchases in FY01 and FY02?
I'll have to get back to you on the FY01. I can submit a copy of our ad board request and the plan purchases for fiscal year 2001. And 2002, we wait until the operating department's feed back information to us on what vehicles they've determined needing replacement. We meet with each of the principal departments and then we develop a plan for 2002. But I can give you 2001's schedule, and I'll make sure that your office receives that.
Thank you. What is the current policy with regards to vehicle life cycle and replacement? 1349 2/20/01 OPERATING BUDGET
The present policy is that each class of vehicle within the city's fleet -- and there's over 150 different classes of vehicles. Each class of vehicle operates differently under different conditions for different departments. We have 42 different departments, boards and agencies of vehicles that we have to support. So we look at each class of vehicle based on its usage and then we determine a life cycle for that class of vehicle for that particular department. In general, it can range from a high-intensity-used vehicle, such as a street sweeper, six to eight years for its life cycle. A radio patrol car could range from four to five years for its life cycle. Principally our philosophy is where the vehicle is properly specified, properly maintained, that piece of equipment, whether it be a vehicle or special equipment, should last until obsolescence.
Thank you. The Chair recognizes Councilwoman Brown.
Good afternoon, gentlemen. Just two questions. 1350 2/20/01 OPERATING BUDGET On , bottom paragraph, you state that you have an active fleet of 6,003 vehicles, and then on , top paragraph, you say that the city's fleet must be contained at its January 8th, 2001 size, 5,200 vehicles. Help me understand the discrepancy.
Okay. The 6,003 includes 748 pieces of specialized equipment. Specialized equipment is similar to paving machines, compressors, heavy construction equipment, and we have 748 pieces of that type of equipment. If you take out the specialized equipment and you look at our fleet size as of January 8th, vehicles alone, vehicles that require an operator or require a license to drive, indicated 5,255. So that's what we're looking at the target for mission, for usage and try to reduce that one percent per year for five years.
And then, secondly, you did indicate the fleet reduction initiative where you expect to shed from 50 to 60 vehicles from your inventory. How will you be able to do that without disrupting or diminishing city services? 1351 2/20/01 OPERATING BUDGET
That's one of the keys, is that the operating departments were given the mandate from the managing director's office and fleet management that they will look at their fleet. They will look within their fleet in terms of looking at their core mission, their delivery of city services, and then they will feed back information in terms of what they consider to be a vehicle that's underutilized or a vehicle that can be pulled, let's say taking two vehicles and keeping one and pulling it and sharing it with another department. So there's opportunities across agencies with sharing of equipment that will give us opportunities to reduce the fleet in the long term.
Very well. And, of course, if there's a reduction, then hopefully there's less expenditures in dollars attached to that, correct?
That's correct. Again, after we get through with the exercise -- and it's an exercise that's ongoing -- there may be opportunities to reduce some expenditures.
Thank you very much. 1352 2/20/01 OPERATING BUDGET Thank you, Madam President.
You're welcome. Are there any other questions? The Chair recognizes Councilman Cohen.
Yes. Just to mention it again, I think fleet management does an outstanding job in the area that I and City Council come in contact with in time of need when the car won't start, usually because I've left the lights on the night before, something of that kind, and I find their service outstanding. They're always prompt, and I just think it's a wonderful service to have. And they come wherever you are and do it efficiently, quickly, and I want to express my thanks.
The kind of service I wish all departments could provide.
Thank you. The Chair recognizes Councilman Rizzo.
Thank you, Madam President. 1353 2/20/01 OPERATING BUDGET I said what I had on my mind last week, and I'm sure you won't forget what I said, so I won't tell the story again. But it was interesting during the course of conversation, we talked about the fact that there's one police car pretty much now used throughout the country, is the Ford Crown Victoria. Riley, do we have another vehicle that's kind of poised to take over? I know the traffic jeeps, they just look great, and I assume that they are a lot more expensive than a Crown Victoria. The Ford Explorer, is it?
The Ford Explorer is a multi-purpose type vehicle that's being used by several law enforcement agencies nationwide. You're right. The Ford Crown Victoria is the only full-size rear-wheel drive sedan that is available. There are other manufacturers that are looking at reintroducing a General Motors version. I'm sure Chrysler would look at introducing a law enforcement vehicle. But I don't see that happening in the next two or three years. We either have to look at the law enforcement package that's offered by Ford Motor Company, the Crown Victoria, or the Ford multi-purpose vehicle, the sport utility offered by 1354 2/20/01 OPERATING BUDGET Ford. And, again, you're right, the cost of the sport utility is a little more than the Crown Victoria. But, again, depending on the mission, we've got the police using the full-size sedan, they're using the sport utility multi-purpose vehicle, they're using three-wheel scooters, they're using motorcycles, they're using a lot of unmarked sedans for their missions. So there's a blend of equipment that's available to them to accomplish their mission.
I guess the only two modes of transportation that fleet management doesn't take care of is the horses and the bikes. So I guess there's not much left for you, unless you want the horses.
No. We do service the horse trailers and the vehicles that tow the trailers.
I had a feeling you'd bring that up. The other question I had was -- well, you're going to be here a minute. If I can recollect what it was, it was in reference to the police vehicles. 1355 2/20/01 OPERATING BUDGET I got it. And this is just some constructive not even criticism, just a comment. I on occasion stop and talk to police officers in their vehicles, and, Riley, something really has to be done about that computer terminal. I understand Commissioner Timoney told me an officer was just seriously injured in the 15th district in a vehicle accident. That recorder, the passenger side seat, I would not want to be in a serious vehicle accident being in that seat with that computer terminal right at your chest level. We just saw that terrible wreck over the weekend in an automobile race, but I'll tell you, our police officers responding, that computer terminal needs to be -- I know there's not very many places to put it, but apparently that computer terminal was directly responsible for the serious injury, at least that's what I've been led to believe. So it's something -- maybe you need to get together with risk management and come up with an alternative, move the seat back, because that computer terminal in those Ford Explorers are right at the officer's chest level. So I think it's a very dangerous situation and something needs to be 1356 2/20/01 OPERATING BUDGET done with it quickly, and I know you'll figure it out quickly.
I'll work with whatever entity it is, whether it's the police department or Public Property, to look at different bracketing for what they call the mobile data terminal.
Honestly, if you asked me to figure out how to deal with my observation, I would have a tough time figuring it out, but I can tell you one thing, if I were a police officer, I'd be very concerned about any event, even with a seat belt on.
Thank you. Are there any other questions? (No response.)
Thank you very much. 1357 2/20/01 OPERATING BUDGET
The Historical Commission is next. Dr. Tyler, how are you?
Fine, thanks. Thank you for your patience. Please identify yourself for the record and proceed with your testimony.
Richard Tyler, historic preservation officer for the Philadelphia Historical Commission. The proposed budget for Fiscal 2002 requests $256,663, an increase of $204 over the commission's FY2001 approved target. With this budget, the commission can reasonably expect to maintain its present service levels of permit review under the historic preservation ordinance and under the commercial revitalization ordinance, as well as conduct the federally mandated historic preservation resource assessments. I would be pleased to attempt to answer any questions you or your colleagues may have.
I don't have 1358 2/20/01 OPERATING BUDGET any questions. I just have a comment, and that is to publicly thank you for all of the wonderful work you're doing. You're very, very conscientious about your job and you do it well, and I thank you.
Are there any questions from members of the committee? (No response.)
Thank you, Doctor. Licenses and Inspections. Good afternoon. MR. McLAUGHLIN: Good afternoon.
Commissioner, I would suggest that you summarize your testimony. A copy of your testimony will be given to the stenographer and it will be transcribed in full. So kindly identify yourself for the record and proceed. MR. McLAUGHLIN: Good afternoon, Council President Verna and members of Council. I am Edward J. McLaughlin, commissioner of the Department of Licenses and Inspections. Accompanying me here today is my senior management team, First Deputy Commissioner Robert Solvibile, Deputy Commissioner 1359 2/20/01 OPERATING BUDGET Dave Perri, Dominic Verdi and Oliver Thornton. With me also is my administrative director, Richard Felgus. With his help, we've put this report together, and we appreciate the opportunity to present our Fiscal Year '02 budget request to City Council and to provide you with information about the department's recent accomplishments and our plans for the upcoming fiscal year. The Department of Licenses and Inspections is requesting a total Fiscal Year '02 budget of $25,995,071, of which $23,498,067 will be provided through the city's general fund. In our general fund budget, we have a net decrease of $14,510,540 from our Fiscal Year '01 estimated obligations. 8 million of the decrease represents the transfer of demolition funding from our department to debt service to support the neighborhood transformation initiative. The remaining decrease in our Class 100 appropriation reflects primarily the non-recurring bonus to employees. This budget supports general fund staffing of 445 positions for the department. The department's revenues in Fiscal Year '00 were $32,178,000, an increase of over 100 1360 2/20/01 OPERATING BUDGET percent from Fiscal Year 1992. Permit revenues from construction renovation and rehabilitation of office buildings into hotels, condominiums and apartment buildings continue to generate significant revenues. The department's accelerated review program, which started in 1995, has continued to grow and now generates almost a million dollars in revenues. The department is projecting revenues of $34,053,000 for both Fiscal Year '01 and '02. 2 percent increase over Fiscal Year 1999, when 1,059 demolitions were completed. A major reason for this increase was due to the increase in string demolitions from Fiscal Year 1999, 406, to Fiscal Year '00, 615. In Fiscal Year '01, the department projects that we will demolish 1,520 buildings, which includes 118 buildings in State Representative Keller's district, for which we received a special grant. This will all be done under the direction of First Deputy Commissioner Bob Solvibile, better known as Mr. Demolition. Regarding our public safety activities, 1361 2/20/01 OPERATING BUDGET fire safety, the National Fire Protection Association states that the key to an effective life safety program is to get people out of buildings in an emergency. L&I has the responsibility to make sure that our codes and enforcement programs are designed to insure people do in fact get out of buildings safely in an emergency. Our recent efforts to upgrade city codes by increasing the use of smoke detectors, fire alarms and sprinkler systems have greatly enhanced safety in both residential and commercial high-rise buildings. The department's multi-family inspection program, along with our record number of demolitions, clean and seals and encapsulations over the past 12 years, are key factors in the reduction of deaths and building fires. Under the direction of Deputy Commissioner Dave Perri we initiated our pier inspection programs after the tragedy that we all know about on Pier 34. We have identified a total of 144 piers along both the Delaware and Schuylkill Rivers. We're working now to get safety inspections on all of them, and most of those people are in 1362 2/20/01 OPERATING BUDGET compliance. The ones that don't comply will go to court. I'd like to talk to you about code violation notices.
Inspectors from the department's business compliance and commercial and industrial fire units are continuing to write code violation notices or tickets for violations of the Philadelphia Fire Code and other provisions within the code for which immediate summary action should be taken by the department. For Fiscal Year '01, approximately 1,400 tickets were issued, which generated fine revenues of 108,875. We project that the number of tickets written during Fiscal Year '02 will reach 2,800. What we're seeing in relation to these tickets is better immediate compliance with a lot of the public nuisance violations. Consumer protection, under the direction of Deputy Commissioner Dominic Verdi, this year we inspected 728 locations where scanners are used to price items. 355 stores were found in violation. Whenever a violation was found, a summary fine was levied against the store, the items were removed from sale and the inspector made sure that the scanner was immediately changed to reflect the 1363 2/20/01 OPERATING BUDGET correct price. We did this very specifically during November and December to catch people who were gouging the public around the holidays. That same attitude of consumer protection drove us to do surprise inspections on 35 fuel trucks where our inspectors actually went out and stopped them on the street to inspect their delivery tickets. The trick there is to pre-print delivery tickets and then deliver less fuel oil. We found one truck in violation. That's the good news. As part of an overall strategic planning process, the department has been examining its internal operations and processes with the intention of reengineering its business practices and introducing information technology to improve efficiency. This is being done under the direction of Deputy Commissioner Oliver Thornton. At this time, I would like to take the opportunity to thank all the members of City Council for the support and cooperation that you have extended to members of my department and to me in the past. I will be happy to answer any questions that you may have at this time. 1364 2/20/01 OPERATING BUDGET
Commissioner, would you please explain about the encapsulation project or program? And I notice in your testimony that this has been in operation since 1998? MR. McLAUGHLIN: That's correct. And it's a program that allows us to go onto a block that isn't a blighted block, but has a building or two that is abandoned for reasons usually related to family illness or maybe a fire and people just can't spend the money to stabilize the property. We'll come in. We'll stabilize the property. We'll do things like the roof, the plumbing system. We've been known to do some windows and to do anything we can to make that property look like it's part of the rest of the community. We'll paint it. We'll do whatever is necessary to blend it in so it doesn't deteriorate.
Can you tell us how this program is funded and what is the proposed funding for FY02?
The program has been funded through the community development program, and we are hoping that it will continue to be funded both through that and possibly through the neighborhood 1365 2/20/01 OPERATING BUDGET initiative that the mayor's office proposes.
What role will your department play in the neighborhood transformation initiative, and can you tell us, when do you expect that the NTI funding will be available? MR. McLAUGHLIN: We haven't gotten our final instructions yet. We're doing a lot of preliminary work. We're preparing with plans on how to proceed with our different areas, but we haven't gotten any real direction on the -- final direction on the kick-off date yet.
So you don't know whether the funding would come through community development or through the general fund? MR. McLAUGHLIN: Because the encapsulation program is mentioned in neighborhood transition, I expect that --
Through community development? MR. McLAUGHLIN: Go ahead, Bob.
Council President, the neighborhood transition will be funding encapsulation in areas of the city for the blight 1366 2/20/01 OPERATING BUDGET program.
Through the bond or the loan, the loan that -- after approval of working --
Is that reflected in the budget that we're presently considering?
It's reflected in the fact that the monies that formerly were given to L&I for demolition are now going to be utilized to fund the debt service on the bonds when they're eventually put out. We don't have the details of that, but we do know that our demolition funding was transferred over. Rob, do you want to speak to that?
I think this relates to the conversation we had last week about how we were displaying funding for demolitions and encapsulation in the budget. We had originally anticipated that RDA would enter into contract for demolition and for encapsulations, and so we weren't showing that 1367 2/20/01 OPERATING BUDGET running through Licenses and Inspections appropriations, but we agreed last week that we would change that as part of this process so that by the time we're done, that will show in L&I's budget.
Thank you, gentleman. Mine is easy. We just wanted to say thanks for all that you get done for us. It's a big job, but I think we're making great progress. Thank you. MR. McLAUGHLIN: Thank you. Right back to you, Councilwoman, for all your help.
Thank you, Madam President. Good afternoon, gentlemen. I too want to echo Councilwoman Blackwell's remarks and just to commend you on the initiatives that have taken place in the department, and I want to ask about one specifically that you discuss on , this notion of license consolidation and ask, as the, you call it, the regulatory reform committee looks at the 1368 2/20/01 OPERATING BUDGET over 200 licenses, could you please give some thought at or action to the number of licenses that must be completed by a child care service provider to make their life a little less cumbersome as they move towards starting up a small business? And then, secondly, along this number of initiatives, do you at some point see an L&I on the Internet long range? Where you might you be in that process?
Right now we're going through a process of automating our manual processes. We've looked at the possibilities in the future of offering all of our services via the Internet through the city-net connection. Presently the physical infrastructure exists to do that, and as soon as we have a system in-house -- right now if someone was to go in and do something on the Internet, we would still have to process it manually in our shop. As soon as we're able to finish our automation project, those 1369 2/20/01 OPERATING BUDGET offerings will be available over the Internet.
And if you have to project a win, when might that be?
We have an implementation schedule of about months for our automation, and 7 I would say soon thereafter, because we'll be 8 approaching the ability to do it as we do our 9 project. 10
Would that 11 then mean an increase in the overall department 12 budget request? 13
No. We're looking 14 outside of the general fund to fund the project, and 15 we're working closely with the managing director's 16 office and the budget office to find the funding to 17 do the project. 18
Okay, then. Thank you very much. Let me ask a more specific question around license consolidation. Given where you are in the process, are the licenses for child care providers one of the areas you're looking to consolidate? Is that on the agenda? MR. McLAUGHLIN: Absolutely. We have 1370 2/20/01 OPERATING BUDGET people in our housing function, in our housing division, working very specifically with advocates on that issue.
Okay. MR. McLAUGHLIN: And that would be one of the businesses that we look at, in addition to, say, for example, a restaurant, to give a restaurant license that would have the components in it that you needed to have to be a restaurant --
To make it real. MR. McLAUGHLIN: -- instead of the nine or ten different licenses that sometimes come due at different times, to consolidate all that. Interestingly enough, we're working with the reinventing government initiative, the union, you know, city worker initiative that is geared to showing how we can operate more efficiently. That's one of the main issues on their plate.
And once you've completed your analysis and/or I guess action plan or game plan for he various businesses that can do better at getting licenses, you at some juncture plan to make the world aware of that, correct? 1371 2/20/01 OPERATING BUDGET MR. McLAUGHLIN: Your world very specifically. We won't be doing that without you, City Council.
Any read on when that might happen? Within this fiscal year, next fiscal year, just for my own knowledge base? Because I recognize that's a process. MR. McLAUGHLIN: I would say that we're starting that process now, so you should see some within the next couple of months.
Okay, then. Thank you very much. MR. McLAUGHLIN: Because we got to get through the law department and everything.
Sure. Thank you very much. Thank you, Madam President.
You're welcome. The Chair recognizes Councilman Clarke.
Thank you, Madam President. Good afternoon, gentlemen. MR. McLAUGHLIN: Good afternoon. 1372 2/20/01 OPERATING BUDGET
With respect to the neighborhood transformation program, it's my understanding that as a part of this program as an ongoing practice, there will be enhanced code enforcement, understanding that in some of these neighborhoods a lot of the problems associated with the conditions tend to be individuals' inability to police themselves, certain buildings that are operating not in an appropriate past deed, certain issues with respect to people putting out trash on an ongoing basis on the wrong day, and there's a number of things associated with the code enforcements. My understanding from the mayor's office is that we're going to be extremely vigilant on enforcing the existing regs. Are you guys involved in that process? Is there somebody coordinating that process?
We will be -- as it revolves around buildings, we will be involved deteriorating buildings in neighborhoods that need enforcement. Our housing people would go out, but they have to make sure -- and this is -- the people driving the process will be the Pat Smith and the neighborhood transformation people. 1373 2/20/01 OPERATING BUDGET They have to make sure that there's also in place a parachute from OH, Office of Housing and Community Development, or any other agencies to help people in the neighborhood that may need loans or help to make the repairs. Of course, as you know, if we went out and strictly enforced our code city-wide, we would cause a lot of phone calls. And people need help. They just can't on their own survive and comply with codes without some entity, government agency helping them.
Will there be some relaxation? Right now I know a number of particular codes you're given like a 30-day notice to comply where the city can't come in and abate the nuisance and lien the property for that particular problem. Will there be some relaxation in that time frame as it relates to abating a nuisance, if in fact we're going to put resources on the table to --
We would probably not go in and have housing, Dominic Verdi's staff, make the inspections until the system was all in place. And if it took some relaxation, yes, we would relax some of the 30 days to 60 days, things like that. MR. McLAUGHLIN: I would just like to 1374 2/20/01 OPERATING BUDGET say that that applies to all of our violations, that if we find some reasonable person coming forward and giving us an idea that they intend to comply and if they need a little more time, we're always willing to do that. Our main focus is on compliance.
With respect to the demolition issue, in earlier testimony you indicated that you will have site managers, individuals who will be out to answer questions when we start doing these large-scale demolitions or deal with problems associated with those demolitions. Will they be L&I employees or are we going to contract that out?
Part of the plan being put together in the managing director's office is for an L&I employee to be at each site. We intend in the neighborhoods to have, after approval from Council if they agree with the plan, to have demolition done in like tight areas instead of scattered all throughout the district and that the L&I inspector will be there with an L&I jacket on, so any of the citizens that may want to discuss a complaint or talk to L&I, the inspector will know --
Will there be a number? Because if you're talking that one person 1375 2/20/01 OPERATING BUDGET could be in a ten-square-block area, you may miss the guy when he walks down your block. Is there a number you can call?
There will also be a number. Prior to any demolition on any block, Councilman, we intend at least 48 hours, maybe 72 -- that time hasn't been decided yet -- to put a flyer in each door in every occupied house on the block of the addresses of the buildings that will be demolished and the day that we expect the demolition to start and a phone number where the people can call and/or go to to make a complaint in the community. That's absolute. We've hoped we've learned from all the problems that we get now from demolition and inspectors and people not being there, and we're trying to put all that into a program to make it easier on the public to get their point across to us.
Okay. One last question, and this may have to be shared between you and risk management. As you know, Mr. Solvibile, from time to time we have a demolition and sometimes that demolition causes some collateral damage to the 1376 2/20/01 OPERATING BUDGET adjacent property owner, and then we have a situation where we have to find out who is responsible, is it the contractor, was it a condition that was in the house prior to the demolition. And my understanding in the past, Licenses and Inspections would be responsible, but I have heard through an unofficial source that that policy may change as a result of an order from risk management that it will then be the responsibility of that property owner to have the interaction between the demolition contractor, and I'm hoping that is in fact not true.
That's not true. L&I will be involved. We intend to put a team of inspectors out in every area wherever we're going to make demolitions, take pictures, inspect the houses for any pre-condition that we may be able to observe, to determine the safety of the occupants in the house prior to demolition, and we intend to have our complaint system, as I said, intact right there. And the inspector every day -- if an inspector who is assigned to that area is sick, there will be an inspector to fill in for that person to be there. There is going to be two or three levels of 1377 2/20/01 OPERATING BUDGET supervision that where if we cannot find an inspector to fill in who is out sick that day, the boss -- we've hired a district manager. We picked the district manager to be overseeing the inspectors for the demolition program. He'll go to that site himself.
And I'm not necessarily talking about the transformation program. I'm just talking about generally. There will be no change in policy as it relates to the entity who follows up on collateral damage to properties? That will not be the responsibility of the homeowner?
As is now. There's no 16 change in that at all. It's L&I, Councilman, and we do interrelate with risk, but we're the driving proponent of that.
Councilman, I will add that all of our contractors do have to have bonds, and we have to sign off before they get final payment, so 1378 2/20/01 OPERATING BUDGET that we would be enforcing the provision to make sure that everything is in order before they get their payment.
Also, Councilman, the insurance policy and the bonds are checked by risk and procurement. The insurance -- the bond by procurement -- it has to be an approved bonding company -- and the insurance by risk management and Licenses and Inspections to insure there is proper coverage so we can protect the people that are to be protected by the insurance policies.
Thank you. The Chair recognizes Councilman Nutter.
Thank you, Madam Chair. Commissioner and the fine array of personnel that you have with you, we've had an opportunity to work on a lot of projects over time, so let me in a general way say thank you for the great response that our office has enjoyed. We have had some unusual situations that have gone beyond the kind of day-to-day activities that take place 1379 2/20/01 OPERATING BUDGET around the city, and I've been the beneficiary and my constituents even more so have received good response and service. We obviously have on an ongoing basis day-to-day issues that still need to be resolved, but I know that the effort and the commitment is there, and often it's more a situation of resources and trying to do the best that we can with what we have. Also, we come from different places and have different ideas, different views and perspectives, and I think we're constantly trying to remind ourselves that we're all working for the same people in trying to get to the same place. MR. McLAUGHLIN: Thank you, Councilman.
You're welcome. An item that's been discussed in the past -- and I didn't pick up much in the testimony, but I know, Commissioner, it's been a topic of our conversation from time to time or on the few occasions you've had to hold the phone away from your ear, although you weren't having any trouble hearing me, is the computerization of the department. I seem to recall some number of budgets ago a proposal by the department to upgrade 1380 2/20/01 OPERATING BUDGET computerization, make it easier to get information that's needed on a timely basis. I also seem to recall that in some of the previous years' testimony, there's been discussion about, for instance, a productivity bank loan to make that computerization happen. Can you give me an update on that proposal or that project or the status of what I think is an important effort by yourself and your deputies and administration to at least bring most of the department into the latter part of at least the 20th century? MR. McLAUGHLIN: Well, I'd just like to say that, yes, we have talked about this before, and I'm more excited now about the possibility of our automation being a reality. We're not talking about whether we should automate L&I any longer. This administration is talking about how to fund the automation of L&I. So we are now embarking on a study by the Gardener Group just to make sure that over this period of time that L&I has been concentrating on our vendor of choice, the Hanson Technology system, to make sure nothing else has come up on the horizon, although Deputy Commissioner 1381 2/20/01 OPERATING BUDGET Thornton has kept his eyes and ears open in that regard and assures us through his visits to other cities and through his sources that there is nothing yet better than what we want to buy.
Well, can you give me a sense of the scope of this project, maybe the Cliffs notes version of it, what it will do, as well as a timetable for implementation? What are the funding issues and what's been the problem in terms of securing the necessary funds? There are other departments that have been able to get productivity loans when they needed it. MR. McLAUGHLIN: I'll let you talk to the man who is going to make that happen.
Oliver Thornton, L&I. What we've concentrated on initially was, we found that the equipment that we had in-house was not adequate to use in with a lot of new technology that's available. So what we spent the last couple of years doing is upgrading the computer systems, making sure that the computer systems would run any application that we want it to run, to make sure that the physical lines were there from -- we're in more than one place and we have the 1382 2/20/01 OPERATING BUDGET district offices, we have the clean and seal office on South Street. So we worked with Public Property and MOIS to get the physical connections to those places. So that part is done. So all of the physical infrastructure work is done right now.
Did you work with the guy with the dark hair and glasses on this project?
There is a gentleman in MOIS with dark hair and glasses. He works on a number of projects with various departments, but if you're not aware of him, we can move on.
So right now we're looking at a few possible options, the productivity bank being one of them. We've looked at -- some of the vendors have come forward in their presentations with funding sources that they have available to them. So right now we're working with the budget office and the managing director's office, and we're doing two things. The Gardener Group is validating basically what we've done in terms of business process review and those types of things, and we're looking at the different ways that we could fund something like this.
In terms of funding? Well, the last we talked about $3.7 million.
And this is for full computerization of the department?
Of the licenses, permits and inspections. MR. McLAUGHLIN: Just to mention, we already have automated our complaint intake process 1384 2/20/01 OPERATING BUDGET with Hanson Technologies.
Well, the department is working on it. I started the project -- I came into the department in 1998.
Other than our most critical life safety departments, police, fire, DHS, health department, it is beyond me to understand, other than for the normal research and information and assessments and hiring of consultants and the like, to understand why there would ever really be a question about the need for -- I'm not talking about the mechanics, but the need for computerization at L&I, and only a person who never dealt with the department from a customer service standpoint in trying to provide service to constituents would ever think that this was a question of should we do this, why are we talking about this. I mean, it is astounding to me given the role that the department plays on a day-to-day basis, the impact that it has and can have on people's lives out in the community, it really is beyond me to understand what the issue has been for so long. What do you think 1385 2/20/01 OPERATING BUDGET implementation date start to finish will be?
Well, the Gardener Group study is supposed to be finished in 30 days. So at the end of that period, we'll have a management presentation of what their findings are, and depending on how soon we get the funding -- once we start, we're looking at months for 9 implementation. 10
And are you still 11 going the productivity bank route or is this now a 12 capital budget item? Is this something that's being 13 done out of the operating budget? What's the 14 identified funding source? 15
We're looking at outside 16 funding sources, outside loans, and we're looking at 17 the productivity bank. We're comparing the terms of 18 the two loans.
They dealt with other 1386 2/20/01 OPERATING BUDGET municipalities and provided funding through this source.
Okay. Commissioner, let me ask you a question in the area of training and education and inspectors and kind of how do we keep skills at a high level and also cross-training of people. We try to minimize those situations where we ask a person to go out and look at X and Y. They may only be trained in X and they don't really know that much about Y, and now we got to get another person to come and then they missed each other and the one is on an earlier shift. I mean, all of that stuff, as opposed to we got one person, I know a lot of stuff, let me figure out what's going on here, we write up all the violations and move on with life. What are we doing in that area to enhance skills for our employees? MR. McLAUGHLIN: Go ahead.
Richard Felgus, administrative services director. Councilman, we have what we think is to be a fairly aggressive extensive training program going on in the Department of Licenses and 1387 2/20/01 OPERATING BUDGET Inspections. We concentrate an awful lot of our activities on a number of areas, induction training to new people, skills people to our existing inspectors and public relations, service representative type skills to a lot of our clerical people to try to improve their performance with the public. The big thing that we're into right now, so that you know, state law just was passed a few years ago mandating all of our trades inspectors to be certified. There's a new state-wide code that we're going to have to be abiding with. We are in the process now of developing training courses to make sure that all of our people will be state certified. So that's an important thing. We have over the years tried as best we could to provide developmental training to a lot of our people to enable them to move up from a business regulatory inspector, for instance, to a housing inspector up to a fire inspector. That type of training means that we have people who are versed in multiple codes in multiple areas of the department. So that we're constantly doing training. We just had an excellent program put on 1388 2/20/01 OPERATING BUDGET on fire training and things of that nature. So that we're constantly doing training, sprinkler training, standpipes, all of this type of training, the skills training that our people need to go out and do the job. And we're very proud of what we're accomplishing in the training program and we think that -- at the point that you're getting to about having our people, I guess, what we could call the consolidated inspector who would be able to make multiple inspections is something that we are going to be looking into, particularly in the construction trades area, the idea of trying to get people who are capable of doing building inspections to also be able to do some plumbing inspecting, some of the less complicated electrical inspections. That would resolve a lot of the complaints that we sometimes hear about people saying, I've been visited by 17 different inspectors this month. You know, when are you guys going to leave me alone. So we recognize that, and we have been working towards that. Dominic?
Dominic Verdi, deputy commissioner. Councilman, I'll just add to that issue. 1389 2/20/01 OPERATING BUDGET We discussed this, I think, at our meeting once before. A lot of the complaints that did come in that were multiple inspections involved housing. So we now have -- in my unit I have two electrical inspectors on staff, and thanks to Deputy Commissioner Perri, I know have a plumbing inspector on staff. What we did with the electrical inspections, I had the electrical inspectors do a small class with our housing inspectors, and now certain violations they write. In case of an emergency, I have those two gentlemen on hand that can go directly to the location if in an emergency. If not, they'll most likely respond the next day. And hopefully we're looking into doing the same thing with the plumbing inspector, having him doing some training with our housing inspectors, to make it much more easier to write those violations on the property maintenance code.
Thank you. Commissioner, on of your testimony, you talk about the encapsulation program and cleaning and sealing. What's the total budget for the encapsulation program? I couldn't, at least 1390 2/20/01 OPERATING BUDGET out of the testimony, I couldn't completely figure that out, although I guess I could do the multiplication.
Right now the budget in the department coming from the community development program, we have approximately $450,000 that we can spend from that and --
For encapsulation and other repairs. Encapsulation right now is the major item that we spend the money on.
Conceptually the program, that idea is great. My concern is -- and excluding the imminently dangerous or even the dangerous designation, because we don't get much choice on those buildings. And certainly if a building is ID, it needs to come down. My concern about this particular item is actually while we may not be able to fund it at the level that we would like, my question, I guess, is, within our means are we really doing enough? There obviously were more than 37 buildings during the course of this fiscal year that needed to be done or 1391 2/20/01 OPERATING BUDGET your anticipated 75 or even next year 100. I mean, do we have any estimate on -- I know we know how many vacant buildings there are. I know we know how many lots there are. Do we have any estimate, ballpark figures, on how many potential encapsulation buildings there are and what that cost would be? MR. McLAUGHLIN: We're developing that number right now. We're using the vacant survey information to -- we have that information in a database. We now have people programming the computer that will tell us, for example, which block only has one vacant house in it. That block deserves an inspector to go take a look at it to see if there's a property there that qualifies for encapsulation. We've gone so far to try to generate information with the encapsulation program to address the board of realtors and to try to get them to -- when they have a salesman who can't move a house on a block, an otherwise strong block because of a blighted property on that block, that they should be eyes and ears of L&I and report that property to us. 1392 2/20/01 OPERATING BUDGET So, I mean, it is about getting the word out and having people tell us where that situation -- we have something that -- we're working with the CDCs, and some of the better CDC -- the more active CDC people are feeding us information all the time for encapsulation.
Talk to me about fences. What are we doing with fences? Are we doing any fences? MR. McLAUGHLIN: I'm sorry?
Fences. Silver, chain link. MR. McLAUGHLIN: I understand.
Upon request. MR. McLAUGHLIN: Upon request. We're responding upon request.
I'm glad you told the commissioner that one. I greatly appreciate that.
Right. So the current policy is, this is in accordance with the legislation, that if you have a 1393 2/20/01 OPERATING BUDGET demolition or if you know you're going to have a demolition, requests can and should be made either to yourself or to Bob that with this demolition when they're finished, when they're done the stucco, when they've water-proofed, water-sealed adjoining properties and the like, we'd like a fence front and back, and you're saying that we are adhering to that and that those fences will come along shortly after all the other work is done? MR. McLAUGHLIN: I'm saying I think the ordinance puts us in the position of evaluating whether it's a fence that belongs there or something else to control the situation. So we'll abide by the ordinance, and any requests that have come in, we've done that.
Okay. I want to talk about 41 and 42 North Hobart Street.
They are gone. No 22 more house. Code violation notice section on , at the bottom of that section -- some of these things I don't like to talk about in public, but the 1394 2/20/01 OPERATING BUDGET quality of life problems, trash and debris and other unsanitary conditions, who do you recall about this and who actually goes out and gives the violation notice?
Councilman, we just trained all our housing inspectors on the use of CVNs. When Council passed the ordinance a few years ago in reference to code violation notices being allowed to be used on any violations of the city code, we started out with business compliance and C&I and expanded that to property maintenance. They've just been re-trained, and they started to basically write, for the most part, violations in the last month. And it's basically to call it in to call L&I. And if a violation is to a point where we could use a CVN, it seems like we're getting much quicker compliance when we hand someone a ticket for $25 instead of them getting a piece of paper in the mail and waiting 30 days.
Madam Chair, I have three last questions and then I will go away, if you'd rather do it that way.
Thank you. On the same page, the revised permit fees section, I understand that you're proposing that the fees will drop, and it's a wonderful day in the government if we can drop a fee. What I didn't understand in the testimony was, it says, "These permit fee cost reductions are achieved by changing fee structure the method of calculating fees from using estimated costs to utilizing the square footage of the work which is being performed." What I didn't understand in that -- and there may be a word missing, but also how does the new fee structure take into consideration the square footage versus it just appears that the fees are dropping? What's the connection between the two?
Councilman, David Perri, deputy commissioner. We restructured the fee schedules. The bottom line on the restructured fees is that they are revenue neutral. What we found was permit fees for an alteration project were 1396 2/20/01 OPERATING BUDGET approximately four times higher than a permit fee to build the building brand new. The reason being is, the new construction fees were based on a flat fee program that hadn't changed in about eight years, but the alteration fees each year with inflation, those fees were going higher and higher. So finally they got so far out of whack that we redid our entire fee schedule. We also wanted to simplify it and also level the playing field at the same time. So we got away from our previous practice, which was to ask for contractors to submit to us estimated costs of what the construction project is, and based the fees on the contractor's estimate. We now look at it based upon what the square footage of the altered area is and we are able to come up with a fair permit fee that way. It's a permit fee that would be consistent amongst contractors and there's less need for us to have to go and audit permit fees. It also simplifies the process, in that they don't need to submit the form for the estimated cost. They don't need to submit to us a contract, and we don't need people reviewing all these extraneous documents. So, yes, we're able to reduce the fees 1397 2/20/01 OPERATING BUDGET on the alterations side, but truth be known, the fees on the new construction side did go up to compensate.
All right. My last issue is in the area of illegal conversions. This is in the residential housing area where people are illegally converting their houses into, in many instances, either just rental housing above the code limitation of more than three unrelated adults or in the student housing realm. Now, first, again, Commissioner, we have received great support from both Dominic as well as Otis and other people in L&I. The managing director's office has been working with us and we've, I think, made some progress. At the same time, I do need to get some sense of an update. The North Light leadership team in the Manayunk area kind of working on Roxborough/Manayunk issues, as well as a number of civic groups in the Wynnefield and Overbrook area have been inundated with illegal conversion problems, whether student related or non-student related, and with that, some behavioral issues that are causing some pretty serious conflicts in the community. 1398 2/20/01 OPERATING BUDGET Can you let us know or let me know what's going on with that? It's not just a fourth district problem. These issues go on all over the city, and I guess I just need some reassurance that we're going to push this to a conclusion.
Councilman, I have to apologize to you. I do owe you a list of updates on the North Light Community Center. It's been extensive.