COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING BEFORE COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, December 1, 1998 1:00 p.m. - - - Bill 980531 - An Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia to enter into a lease agreement with RedGap Limited Partnership, a Pennsylvania limited partnership, for use by the City of premises located at 4000 North American Street, Philadelphia, pennsylvania, under certain terms and conditions. Bill 980783 - An Ordinance authorizing the Commissioner of Public Property and Fairmount Park Commission, on behalf of the City of Philadelphia to execute and deliver to the Philadelphia Authority for Industrial Development ("PAID"), without consideration, a deed conveying title to the City's interests in three tracts of land with the buildings and improvements thereon situate in the vicinity of twenty-first and Hamilton Streets, under and subject to the terms and conditions of the Philadelphia Industrial and Commercial Development Agreement between the City, the PAID, and the Philadelphia Development Corporation. Bill 980831 - An Ordinance confirming the sale of a certain lot or piece of City-owned ground, situate 4200 Aspen Street in the City of Philadelphia, and authorizing the Commissioner of Public Property to execute and deliver a deed to Oliver Young, under certain terms and conditions. VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 (215) 561-2220 2 (Continued) Bill 980847 - An Ordinance renewing the Area I cable television franchise held by Greater Philadelphia Cablevision, Inc., a.k.a. Greater Media Cable, under certain terms and conditions. PRESENT: COUNCILMEMBER AUGUSTA CLARK, CHAIR COUNCILMEMBER JANIE BLACKWELL COUNCILMEMBER JAMES KENNEY COUNCILMMEMBER RICHARD T. MARIANO COUNCILMEMBER DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMEMBER FRANK RIZZO - - - I N D E X BILL 980531 PAGE KENNETH SIPOS, Dept. of Public Property ------ RICHARD SCHAEFFER, OESS ----------------------- ALBERT F. PHELAN, ESQ., Law Department -------- BILL 980783 PAUL DEEGAN, PIDC ----------------------------- JOSEPH PACITTI, Developer --------------------- JOSEPH EGAN, Real Estate Consultant ----------- KENNETH SIPOS, Dept. of Public Property ------- 32 THOMAS CHAPMAN, City Planning Commission ------ 32 BILL 980831 THOMAS CHAPMAN, City Planning Commission ------ 33 KENNETH SIPOS, Dept. of Public Property ------- 34 BILL 980847 JOSEPH JAMES, Dept. of Public Property -------- 36 JOHN PITTS, Greater Media Cable --------------- 43 BARBARA BURNS, General Counsel, Greater Media - 53 MARIE LASOTA, Deputy City Solicitor ----------- 74 JOHN J. DOUGHERTY, Local 98, Penns Port Civic -102 HARRY FOX, Local 98 -------------------------- 114 BETTY THOMPSON, Hartranft School ------------- 116 WILLIAM HOLLENBACH, William Penn High School - 119 BRENDA MAIDEN, James Elverson Middle School -- 122 DONALD WHITE, Special Olympics of Phila. ----- 124 RAY MUNGRO, Berean Institute ----------------- 126 GEORGE MC COLLOUGH, Phila. Community Access -- 127 DEANNA MANDRES, Phila. Community Access ------ 128 - - - 4 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980531 CHAIRWOMAN AUGUSTA CLARK: Good afternoon. The Committee on Public Property and Public Works is now in session. Do we have a quorum? Yes, we do. A quorum being present, present in the room is Councilman Frank Rizzo; Councilwoman Augusta Clark, Chair; Councilman Jim Kenney, and Councilwoman Donna Reed Miller. The Clerk will please read the first bill before the Committee.
An Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a lease agreement with RedGap Limited Partnership, a Pennsylvania limited partnership, for use by the City of premises located at 4000 North American Street, Philadelphia, Pennsylvania, under certain terms and conditions. CHAIRWOMAN CLARK: Thank you. Are there persons present in the room who wish to be heard on this bill? Good afternoon.
Good afternoon, Madam Chairwoman. CHAIRWOMAN CLARK: Please introduce 5 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980531 yourself to the record, spell your name for the benefit of the stenographer, and proceed with your testimony.
My name is Ken Sipos, Department of Public Property. I'm here today representing the Department testifying in support of Bill No. 980531. This bill will permit the continued use at the current annual lease and change it into a long-term lease for the Department of OESS. Accordingly, I request Council approve this and request that the rules be suspended so the ordinance may be passed on the second reading at Council. And Richard Schaeffer is here from OESS to shed further light on the transaction, and so is our attorney, Mr. Albert Phalen. CHAIRWOMAN CLARK: Thank you. Good afternoon, sir.
Good afternoon, Councilwoman. My name is Richard Schaeffer. I'm the administrative services director for the Office of Emergency Shelter and Services, and we are currently using the facility 4000 North American 6 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980531 Street for three main purposes. The first one is we use the site as a distribution point for the state-funded emergency food program. This program purchases food and distributes it to our emergency shelters as well as our soup kitchens. Currently, we are providing food for about 2500 people in shelter and over a hundred thousand meals per month through the soup kitchen network throughout the City. The second purpose is that we use it for our donated goods programs. With this program we accept all usable household goods such as furniture or appliances or other household goods, and we distribute those to our shelters, to housing programs, and also to individuals who may need them in order to move into some type of permanent housing. The third thing, and something that we will probably be starting later this month or early January is that we will be providing training for four individuals under the Welfare Work Program. This job training will be in the warehouse and maintenance field, and we will try to provide them or develop skills for them to be able to take into 7 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980531 the job market. And again, we expect that to be starting in about three or four weeks. CHAIRWOMAN CLARK: Thank you.
Good afternoon, Councilwoman and Councilmen. I represent the law department. My name is Albert F. Phelan, P-h-e-l-a-n. And the Law Department has no 9 objection to this transaction. CHAIRWOMAN CLARK: Mr. Sipos?
Yes, Madam Chairwoman. CHAIRWOMAN CLARK: How long is the proposed lease? What is the proposed annual rent? How much money does the City save by entering into this long-term lease as opposed to continuing with this current annual lease?
It's four years with an additional four years and an additional one year and an additional one year. It's $2.50 cents a foot for 118,000 square feet with a 7 cent a year increase for inflation. And our attorney has further information.
Councilwoman, it starts for an additional four years from December 4, 1998, that's the first term that we're considering now. 8 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980531 Then it goes for another four years after the expiration of that term, and that's 2002 to 2006, and then it goes for one year after that from 2006 to 2007. The rent is, as he said, it increases 6 cents per square footage each year. 7 CHAIRWOMAN CLARK: Is this a substantial saving for the City by doing the multi-year as opposed to the annual?
The Law Department cannot comment on that. CHAIRWOMAN CLARK: Does anybody have an opinion?
I think it was mainly done to preclude an increase to keep it fairly at the same rate that it was without escalating.
Councilwoman, another point is that when we first moved into the building we required some renovations and modifications. We had to install a large refrigerated area for our food program. And by entering into a long-term lease, we're able to amortize those renovations over a longer period rather than taking one big hit in one year. CHAIRWOMAN CLARK: Give us your opinion 9 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980531 as to the physical condition and utility of these lease premises including its suitability for the purposes of OESS or any physical maintenance or other problems that you expect.
We're very happy with the overall physical condition of the site. As I mentioned, we put in a fairly large refrigerated and freezer area. We also have the place, the entire facility alarmed. There's adequate space for people to be able to shop through the various items that we have. We have had difficulty in the past with some of the sites that we've been using for our food program in that they quickly became crowded and cramped. This plays provides room for expansion and, again, overall we've been very happy with it. CHAIRWOMAN CLARK: Any other questions? Mr. Rizzo?
You just mentioned the building being alarmed. Because of its use, does it fall into a special category where it has to have monitored smoke and fire detection systems, meaning, that it goes to a central station in case there's a fire.
Yes, that's correct. 10 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980531
But nursing homes and places like that have a special standing when it comes to L & I regs. Does this fall under any special category that has heightened regulations for fire, smoke, and security.
I'm not aware of any existing regulations that would govern the type of alarm. I do know that we do have, I think, motion detectors as well as fire alarms. But whether or not they comply with specific regulations, I'm not sure.
Excuse me, is this a storage area? This is a storage facility, right? There's nobody living there? There's nobody going to be living there or sleeping there, right?
I thought I misunderstood that this was some kind of nursing or overnight facility, but there's no people here.
I'm sorry. I didn't mean to interrupt. I just wanted to make sure. Thanks. 11 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980531 CHAIRWOMAN CLARK: Are there any other questions by any other members? Councilwoman Blackwell?
Thank you. Let me say that it is certainly a pleasure to see you. It is interesting that when it looks like one function changes that how some people look better and do better and when you're not there with all these homeless folks, the whole world changes, I'm telling you. Maybe we're in the wrong end of this. Thank you. Thank you, Madam Chair. We're certainly happy to support this. CHAIRWOMAN CLARK: If I were you, I would take that and run. Any other questions? Thank you very much. Are there other persons in the room who wish to be heard to speak on bill No. 980531? There being none, thank you very much, gentlemen. The Clerk will read the next bill before us.
An Ordinance authorizing the Commissioner of Public Property and Fairmount Park 12 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 Commission, on behalf of the City of Philadelphia, to execute and deliver to the Philadelphia Authority for Industrial Development ("PAID"), without consideration, a deed conveying title to the City's interests in three tracts of land with the buildings and improvements thereon situate in the vicinity of 21st and Hamilton Streets, under and subject to the terms and conditions of the Philadelphia Industrial and Commercial Development Agreement between the City, the PAID, and the Philadelphia Industrial Development Corporation. CHAIRWOMAN CLARK: Thank you, gentlemen. Please proceed with your testimony. First introduce yourself to the record and spell your last name.
Good afternoon, Madam Chair. My name is Paul Deegan, D-e-e-g-a-n. I'm representing PIDC. I think I submitted the written testimony. Briefly, this bill authorizes the City, Department of Public Property in the Fairmount Park Commission to convey a 18,741 square-foot parcel of vacant land to the Philadelphia Department for Industrial Development. PAID will sell this property to PRA 13 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 Development Management Corporation, subject to a development agreement between the PRA and the Fairmount Park Commission. PRA intends to combine the City-owned land with property that they already owned and construct a 20-story, 225-room hotel with accessory commercial space and parking. As part of the agreement with Fairmount Park, the developer will also make certain improvements to the adjacent Rodin Museum property and will also contribute a yearly sum to the maintenance of the museum. The development of this site with a new hotel will provide a number of benefits to the City. It will add 225 new hotel rooms to the City's growing stock of hotel facilities. It will make capital improvements and ongoing maintenance to the Rodin Museum property which is also a convention tourist attraction. It will create a hundred new jobs and a tax-paying hotel with no public financing. There's no request for public money, either directly or indirectly. It's also a well-designed building creating an attractive backdrop to the Rodin Museum. I think both the Art Commission and Fairmount Park Commission have reviewed and approved 14 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 the plans for the hotel. The appraised fair market value of the land to be conveyed is approximately $600,000. The final consideration settlement will be based on the fair market value of the raw land and the value of the improvements to the Rodin Museum site to be provided by PRA pursuant to the development agreement with Fairmount Park. Although the agreement is not in final form, the value of the improvements may equal or exceed the value of the raw land. Representatives of the developer are present if you have any questions, and I'd also be happy to answer any questions. And I would ask that the Committee consider the bill favorably and report it out with a suspension of the rules so it can be considered at the next regularly scheduled meeting of City Council. Thank you. CHAIRWOMAN CLARK: Are there any questions?
I have a small amendment to one of the legal descriptions. It's several pages into the ordinance. It's not in the short title. Description No. B-1 which I'd like to hand up and I also have the disk so that the Clerk's office can 15 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 make the change. It just adds a sentence with a distance and a bearing to the description labeled B-1. CHAIRWOMAN CLARK: In an earlier discussion of this bill in this plot of land, there was a mistake in the description. It said "easterly" when it should have been "westerly." Has that been corrected here?
I don't think that's in this bill. I think the bill was drafted differently. I think the title of this bill says "in the vicinity of 21st and Hamilton," which maybe that's the way we should have described the earlier bill to get away from southeast, southwest. Sometimes it's subjective what's south. CHAIRWOMAN CLARK: My question, Mr. Deegan, is is the description that's in bill 19 correct?
Yes, ma'am, the short title is correct and does not need to be amended. CHAIRWOMAN CLARK: Now, as to your amendment.
Ma'am? CHAIRWOMAN CLARK: You're about to read 16 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 us or discuss the amendment you just handed up to us?
I'm sorry, I'll have to get it back. I can read the addition. It's just a metes and bounds addition to description B-1. Could I have it back? I'll read it into the record. I think it's on of the pink bill, and it's description, parcel B-1, which begins "On that certain parcel or piece of land known as B-1 situate in the Eighth Ward of the City of Philadelphia." Then it goes on the next paragraph, "Beginning at a point," and at the end of that paragraph, the fifth line from the bottom after "Rodin Museum" we would like to delete the word "and," we would like to add a semicolon and then add the words "Thence north 44 degrees, 35 minutes, 39 seconds west, the distance of 77 feet 6 1/8 inches to a point also being the first mentioned point and place of beginning." This was when the legal description was done, it didn't include the last leg to close off the parcel. CHAIRWOMAN CLARK: Are there questions by members of the panel? 17 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783
Madam Chair, thank you for recognizing me. This is not a question. I had been requested as in the previous hearing of the Rules Committee on this issue to submit for the record a letter from the president of the Spring Garden Civic Association, Patricia L. Freeland, opposing this bill and asking it to be held and also asking the bill earlier on in the Rules Committee to be held, which was held. So I will submit this for the record and there are copies here for members of the Committee. Thank you. CHAIRWOMAN CLARK: Mr. Deegan, why is this heard before the development agreement between the PRA and the Fairmount Park Commission have been executed? Shouldn't this Committee have the benefit of knowing what the terms of that agreement are, especially the sales price and improvement arrangements before we are asked to approve the deal?
I think because the agreement isn't final, I think it's been the subject of several meetings of the Fairmount Park Commission. I think it's been approved in concept by the Commission, but it has not been put in the 18 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 final draft by the City's Law Department and taken to a formal Fairmount Park Commission meeting. The agreement does, I think, basically describe what the improvements requested by the art museum who operate the Rodin Museum, what they would entail and it puts a number on them and it also includes a yearly maintenance. CHAIRWOMAN CLARK: Can we infer from that that the art museum has expressed approval of the project?
Yes, Madam Chair, they have. They have been working with the developer and with the Fairmount Park Commission. I think the land in question is really not usable as park land. It's a slope, it's a portion of a slope next to the railroad right-of-way that used to carry the Inquirer, News Print, et cetera, to North Broad Street. It's below grade. And the Park Commission, normally their practice is to lease property rather than to sell it because they don't like to dispose of park land, but because this land is so marginal and because the benefits that will accrue to the Rodin Museum are so substantial, they made an exception in this case and 19 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 they have agreed to sell it. But the bill is -- I mean, it would be nice to have everything in one package, but because of the timing to get this thing in place, I think everybody would like to know that the concept of re-zoning it, which is kind of the first yes/no question, and the land conveyance are in place before Fairmount Park would approve a final agreement. CHAIRWOMAN CLARK: How is the PRA financing the purchase of this property and the proposed subsequent hotel project?
It's privately financed. But I think the developer is here, I think he would probably be better able to speak on that. CHAIRWOMAN CLARK: What City incentives will be used to subsidize the venture?
There are no public incentives included in this project. CHAIRWOMAN CLARK: What other project are being considered for the Parkway art museum area, and does this project compliment those other ventures?
I'm not familiar with any other projects along the Parkway, and I don't think 20 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 anybody from Fairmount Park is here. I know that this project was reviewed by the park, the drawings and the architectural renderings, and by City's Art Commission because it will make use of publicly-owned property and it is adjacent to the Parkway. And the Art Commission and the Fairmount Park Commission are happy with the design of the building, and the Rodin Museum people, who will be its closest neighbor, are happy with the design. CHAIRWOMAN CLARK: Were any other purchasers and/or projects considered for this location? If so, please provide the name of prospective purchasers, their ventures, and the price they were willing to pay.
We haven't had any other developers interested in the parcel. Really, the City parcel is going to be combined with land owned by PRA. And I don't think anybody could use the City parcel as a stand-alone development site. I think you really need to own the corner which is owned privately to assemble the whole site and make it a developable parcel. I think if it weren't for the adjacent land owner coming forward with this plan, the 18,000 square feet of City land would 21 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 never be developed. CHAIRWOMAN CLARK: You mentioned in your statement that the sale price will be dependent on the assessed fair market value of 600,000 and the value of the land improvements. Can you tell this Committee with any degree of certainty what the actual sale price will be?
No, at this point I can't. The appraised value, and we have a recent appraisal, is 600,000 based on other transactions in the area in Center City. I think the final amount of money at settlement will depend on how much Fairmount Park wants to get in actual improvements and how much cash they want. So I think if Fairmount Park asks for, say, $400,000 in capital improvements to the Rodin Museum site and $200,000 cash, then that would be what would happen at settlement. Or it could be more. I think at this point the improvements that the park would like are really in excess of the $600,000 appraised value. CHAIRWOMAN CLARK: How many construction and other jobs will be created by this proposed hotel?
There will be a hundred 22 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 full-time employees new jobs created. CHAIRWOMAN CLARK: How many?
One hundred. I'm not sure how many construction jobs it would be. It's a 35 million dollar construction project. CHAIRWOMAN CLARK: Will the PRA comply with the equal access policies? And if so, who will monitor the compliance?
Can I have the developer speak to that? I think they could probably answer it better than I can.
Yes, Madam Chair, can you repeat that question, please? CHAIRWOMAN CLARK: First, sir, let me welcome you to this hearing and ask you to introduce yourself to the record and spell your last name for the stenographer.
It's Mr. Joseph Pacitti, P-a-c-i-t-t-i. CHAIRWOMAN CLARK: Mr. Pacitti, my question was whether PRA will comply with the City's equal access policies; and if so, who will monitor your compliance?
We did a similar 23 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 construciton job back in 1971, it was a redevelopment property at Fourth and Market Street and we had an in-house gentleman that handled it for us. We conformed to those requirements. CHAIRWOMAN CLARK: Someone on your staff will have the responsibility of monitoring how well you give access to minorities, woman, and disabled contractors and will maintain and report to you?
What had transpired at that particular time was he was our point person in the office and there was a point person within the other administrative Office of Equal Opportunities and they worked together. We did that in Allentown also. We had the same situation in downtown Allentown. CHAIRWOMAN CLARK: You want to be heard, sir?
Joseph Egan, I'm the real estate consultant to Joe. On the employees, we have contacted Impact Service Corporation in the North Philadelphia area and we are discussing with them if we hire employees, full-time employees in the hotel early in the process we would work with the Welfare to Work process. And it's something I believe in 24 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 because I've been treasurer of Impact for a long time, and we agreed to do that and I got Joe to agree to do that. And it will probably be the first new construction hotel to be built in Philadelphia that will have a Welfare to Work Program in place. The minute it opens it will be worked with the flag that we pick. So we're committed to that process. In terms of construction, we will meet -- we'll follow the format that PIDC uses on major public projects in working. We have good working relationships with the building trades in this City in that sense and they know the process and we know the process. And we'll agree to the language that the City wishes to have, the same as we would use in PIDC. It's something that Councilman Street raised with us right in the very beginning of this process. CHAIRWOMAN CLARK: Well, you know we have a continuing interest in it. You have only to go back over the Coverna hearings over the last few weeks to know that our interest is active and vibrant. Mr. Rizzo wishes to be heard on this subject. 25 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783
What I heard from Mr. Deegan, there's some uncertainty on exactly the participation or what the Rodin Museum will get out of this. Here it says "make certain improvements." Is there any place where those improvements have been agreed upon between PRA and the Museum.
We have currently been dealing directly with the Rodin Museum with our architect and we have various schemes that have been worked out with them and we are still in that dialog right now. I'll tell you that we've agreed to put in a walkway which exceeds a million dollars. We've agreed to build in a buffer for the City of Philadelphia for the Schuylkill Metro Line that has crash walls in the project. We've agreed to do a long-term maintenance of the site year in, year out, of the Rodin site, all the grounds that are around the site and around the walkway. I think what the meetings are with Fairmount Park, they've agreed in principle to this process. I think the only thing that they're looking at is what's the level of maintenance that we're going to put on the site and does it meet their standards.
So that hasn't been COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 established at this time?
But it's a minor, minor, minor detail. CHAIRWOMAN CLARK: Mr. Egan, if I understand you, you're going to meet all reasonable requests with respect to that grounds-keeping.
Absolutely. CHAIRWOMAN CLARK: You will provide us with a more up-to-date list of what those improvements will be? You mentioned a million dollars.
In fact, I can give you a copy of our letter to them and our memorandum for the record. CHAIRWOMAN CLARK: That would be great. I would appreciate that.
Which lays out step by step by step. When you're talking about improvements, they want our architect to say exactly what kind of material. That's the kind of things 27 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 that we're involved in, Councilwoman. CHAIRWOMAN CLARK: But you've agreed in principle to a level of participation that's acceptable to you and to the art museum.
I can tell you, the Fairmount Park Commission will not sign that agreement unless they're absolutely satisfied. When they agreed in concept when we laid out our proposal to them, I think we got 98 percent there. But they're very careful what they do, they're very professional. CHAIRWOMAN CLARK: Are there others who wish to be heard? Mr. Nutter?
Thank you, Madam Chair. Let me just make sure that I have a good understanding of this project. From the earlier hearing, as Councilwoman Clark mentioned, there was some issue about the site but Mr. Deegan indicates that we're just generally now going to say in the vicinity of 21st and Hamilton. And this is an area directly behind the Rodin Museum; is that correct?
This is a 20-story 28 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 hotel?
There will be parking. It's some commercial, not major commercial.
Yes, we have a booklet we gave out this morning. I thought maybe you had it.
I'm actually not on that particular committee, the one committee I'm not on.
We have 225 spaces for parking, and it's an all-suites hotel. It's on three levels of parking. CHAIRWOMAN CLARK: That accommodates how many cars, sir?
Three levels, ground level 29 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 and level 1, 2, and 3. And it's a public parking lot.
Is that contained within the building or exterior to the building?
It's parking that comes out, you know the site, it comes out of the ground and goes above. And stories above grade and 9 three levels of that 20 stories being parking. 10
Are there no height 11 restrictions in that section of the City? I 12 remember the big controversy with One Liberty Place 13 and the various hotels. And then at some point in 14 time there was in this Council prior to my time, I 15 think, some height restrictions put in for certain 16 buildings in certain areas or there was an area that 17 was created to deal with tall buildings. 18
The Art Commission and 19 Fairmount Park Commission and City Planning -- our 20 original, I think, was 26 stories and they lowered the building to 20. And 20 is easily within the height limit.
Did I understand that the project cost on this was 35 million dollars? 30 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783
Although there is the transferring of this land from Fairmount Park to make this value?
Thank you. CHAIRWOMAN CLARK: Mr. Egan, height-wise, how does this building compare to an apartment building at 22nd and Spring Garden.
That's stories, and the 23 other is about 22 stories. They're higher than we 24 are. And it casts a long shadow where they're 25 located. 31 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 CHAIRWOMAN CLARK: So you would be the newest kid on the block, but you wouldn't be the tallest kid on the block?
Not by a wide margin. They're much taller than we are. CHAIRWOMAN CLARK: Mr. Rizzo?
In reference to parking, you have 225 spaces. You have 225 rooms. It's given that everybody that comes to the hotel is not going to drive. What consideration has been given for employee parking? Will this have an impact on the neighborhood with employees parking and consuming what is already pretty tight parking situation in that community.
Also part of our negotiations, Councilman, we are allowing parking for the Rodin employees at the lower level below our parking lot. If you saw the site, if you started at Hamilton, you have a cut, a railroad cut. It goes down. At the ground level we're supplying parking for our employees and the employees of the Rodin Museum.
But we're setting aside 32 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980783 parking. Most of our employees, I would think of the hundred would not -- I would say would use public transportation. Maybe a quarter of them, at best, would drive. And that might be pushing it.
Thank you. CHAIRWOMAN CLARK: Are there any other questions by any other members of the committee? Thank you.
Thank you for your courtesy. CHAIRWOMAN CLARK: Are there other persons in the room who wish to be heard in favor or against this bill?
Madam Chairwoman, my name Ken Sipos, Department of Public Property. I'm here to testify in support of the bill. And it authorizes the conveyance of three parcels consisting 18,741 square feet of vacant land to PAID, and the Department supports the initiative by the Commerce Department and respectfully request that City Council approve bill 980783. CHAIRWOMAN CLARK: Thank you, sir. Good afternoon, sir.
Good afternoon, Madam 33 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980831 Chair. Madam Chair, members of the Committee, for the City Planning Commission, my name Thomas Chapman, that's C-h-a-p-m-a-n. The City Planning Commission at its meeting of November 5, 1998, reviewed Bill No. 980783 and recommended that it be approved. CHAIRWOMAN CLARK: Thank you. If there are no other persons to be heard with respect to this bill, we thank you very much for coming. The Clerk will read the next bill before us.
Bill No. 980831, an Ordinance confirming the sale of a certain lot or piece of City-owned ground, situate at 4200 Aspen Street in the City of Philadelphia, and authorizing the Commissioner of Public Property to execute and deliver a deed to Oliver Young, under certain terms and conditions. CHAIRWOMAN CLARK: Thank you. Are there persons present who wish to be heard on this bill, Bill No. 980831? Mr. Chapman, good afternoon.
Good afternoon again. 34 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980831 Councilwoman, members of the Committee. For the City Planning Commission, my name, again, is Thomas Chapman. This bill No. 980831 confirms the sale of 4200 Aspen Street. It's my understanding that this bill is more less a matter of housekeeping. A bill 7 confirming the sale of the property had been introduced back in May of 1994, but for some reason or other, that bill had never been acted on by City Council. The property is proposed to be sold to a Mr. Oliver Young for $4100. That's the same person that was interested in purchasing the property back in 1994. The property is zoned R10A residential which permits single family occupancy. And for the record, the Planning Commission has considered this bill and recommended that it be approved. CHAIRWOMAN CLARK: Thank you. Mr. Sipos?
Madam Chairwoman, members of the committee, this property was sold at a public auction. And the purpose of this bill would be to confirm the sale. And if it is confirmed, we would be able to complete the transaction. CHAIRWOMAN CLARK: Thank you. Are there questions by the panel? 35 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Councilwoman Blackwell?
Thank you very much, Madam Chair. We would like to say that we are glad to finally just catch up with this. And certainly we concur that it was a bookkeeping error that was not completed way back, so we're glad to get this completed. Thank you. CHAIRWOMAN CLARK: Thank you. There being no other questions by members of the panel, are there persons in the room who wish to be heard to speak in favor of or against Bill 980831? There being none, I thank you very much, gentlemen. The Clerk will read the next bill before this Committee.
An Ordinance renewing the Area I cable television franchise held by Greater Philadelphia Cablevision, Inc., a.k.a. Greater Media Cable, under certain terms and conditions. CHAIRWOMAN CLARK: Thank you. Are there persons present who wish to be heard to speak in favor of this bill? Would you introduce yourself for the record and spell your name for the benefit of the 36 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 stenographer and proceed with your testimony.
Thank you very much, Chair. Good afternoon. My name is Joseph James, Deputy Commissioner for the Department of Public Property. I'm here on behalf of Commissioner Andres Perez. CHAIRWOMAN CLARK: Proceed.
With me today is Vince Costello, Director of Communications for the Department of Public Property. It's a pleasure to appear before the Committee today to briefly review the substantive provisions of the cable franchise proposal submitted to the City by Greater Philadelphia Cablevision commonly referred to as Greater Media Cable. Based upon the negotiations pursuant to this proposal, it is my recommendation that the City renew the cable television franchise for Area I, served by Greater Media. Bill No. 980847 was introduced in November of 1998. Representatives from the Department have engaged in continuous discussions with representatives from Greater Media concerning renewal of the franchise as permitted by the bill. Through the franchise renewal process, we have sought terms for an agreement that will best serve 37 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 the needs of the communities in which Greater Media operates as well as the needs of the City. Specifically, these terms include issues such as term of renewal, franchise fee, system upgrade, institutional network services, public educational and government access, local origination programming, MBE/WBE and EEO commitments, customer service standards and billing. In the specific terms of the renewal, Greater Media renewal of the franchise agreement for years for Area I, commencing upon expiration of 13 the current agreements. A 15-year term will provide 14 the City with an improved telecommunications 15 infrastructure, new cable-related services and technology, and additional franchise fee revenues. On the franchise fee: The franchise fee, determined by the Federal Cable Act, may not exceed 5 percent of the cable operator's gross revenues derived from cable services per year. Greater Media has agreed to continue to pay to the City 5 percent of its annual gross revenues, including revenue from cable modem services. The current annual revenue to the City from Greater Media is 30 percent of the total franchise fees of 38 COM. 4 million a year. We expect this revenue to increase over the length of the term given the additions of cable modem services. Greater Media has agreed to upgrade its system in Area I to a minimum of 870 MHz bandwidth by installing fiber optic cable which will provide a minimum capacity of 80 downstream analog channels and 320 MHz available for digital video and data services. Greater Media began its upgrade in the Spring of 1998. The upgrade system will be capable of two-way operation for the provision of interactive services such as home banking, home shopping, travel information and reservations, news and information retrieval, and will permit access to the Internet and digital data transmissions utilizing high-speed cable modems. Greater Media has committed to completion of the upgrade system by March 21, 2001. Greater Media has agreed to interconnect 17 police and fire department locations in Area I using fiber and coaxial cable to provide data exchange capability at a minimum speed of 56 kilobits. Additionally, Greater Media will provide 39 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 data exchange service among connected locations at no cost to the City. 544 7 megabit channels of bandwidth interconnecting eight 8 City offices in Area I using fiber and coaxial cable 9 to provide capability to exchange data. 10 On the public, education and government 11 access, Greater Media has agreed to renew 12 commitments to public, Educational and Government 13 Access (PEG) programming; however, Greater Media has 14 requested revision of specific provisions of 15 educational and governmental access. 16 Public access: Greater Media has agreed 17 to roll forward, on the same terms provided in the 18 current franchise agreements, its commitment to fund 19 equipment and capital facilities for Public Access, 20 and its commitment to forward annual operating funds 21 to the Public Access Corporation upon City request.
Greater Media capital funding obligations is $675,000 total for Area I, annual operating funds obligation, deductible from franchise fees paid to the City, totals between $75,000 to $125,000 as 40 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 directed by Council. Five Public access channels, currently on loan to Greater Media remain returnable to City upon demand, pending implementation of a Public Access Corporation. Local universities: Three channels will continue to be available for educational programming by local colleges and universities. For the school district, two channels will continue to be available for use by the Philadelphia School District for distribution of educational programming; the City will exchange one analog channel presently used by the School District upon Greater Media provision of a digital closed circuit channel for School District use. Greater Media will ensure implementation of Cable in the Classroom programming throughout the city's public schools within the Greater media service area. Additionally, Greater Media will make a lump sum grant to the Philadelphia School District of $250,000 for use by the District, at its discretion, to fund video programming and the communications needs of the schools. Upon my request as the Commissioner of public Property and once cable modem service is commercially available in the franchise 41 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 area, Greater Media will equip each public and private K through school with Area I with one 4 free cable modem. 5 Greater Media currently has use of one 6 of the two government channels to broadcast the 7 Pennsylvania Cable Network. The City will continue 8 to use one government access channel for City 9 broadcast activities. Greater Media has agreed to 10 make a $250,000 grant available to the City for the 11 purchase of replacement, upgrade, and maintenance of 12 equipment in the government access center facility. Greater media has agreed to continue its commitment to Cablecast each week a combined minimum of 40 hours of programming originating locally, and to continue to operate and maintain production facilities and staffing necessary to fulfill this commitment. Throughout the renewal term, Greater Media has agreed to comply with minority-owned and women-owned business enterprise participation and employment goals and will meet participation levels established by the city. Greater Media has agreed to contribute $250,000 to the Philadelphia Commercial Development Corporation to underwrite 42 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 low-cost small business loans to certified local minority and women-own business enterprises. Greater Media agrees to comply with all applicable federal, state, and local requirements related to minority, female and other special group employment, training, and promotional opportunities. Greater Media is committed to make available 30 percent of all jobs within Greater philadelphia Cablevision to minority employees and percent of 11 all jobs within the company will be allocated to 12 women. 13 Greater Media agrees to adhere to the 14 national Cable Television Association and Federal 15 Communications Commission customer service standards 16 and requirements. Greater Media specifically adopts 17 the NCTA on time guarantee which provides for free 18 standard installation if a technician does arrive 19 within a four-hour appointment window and a $20 20 credit if a technician does not arrive to service within the four-hour window. Greater Media agrees to freeze rates for its Basic tier (B-1) programming service from January 1, 1999 through January 1, 2000. Greater Media also agrees to preclude negative option 43 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Billing, a procedure where the failure to object to a billing term resulted in customer being billed for a service or item. In conclusion, the terms to which Greater Media is committed are acceptable to the Department.
I respectfully ask the Committee to adopt the amendments to the agreement as presented in my testimony, and that the rules of Council be waived to allow this bill, as amended, to be reported out of Committee and have its first reading at the next Council session. I am now available to answer any questions you might have. Thank you very much. CHAIRWOMAN CLARK: Thank you very much. Maybe we'll hear testimony from both of you and just question both of you. Good afternoon, sir. How are you?
Good morning, ma'am. CHAIRWOMAN CLARK: Welcome to these hearings. Introduce yourself to the record, spell your last name for the stenographer and direct your testimony in the way you see fit.
For the record, my name is John Pitts, P-i-t-t-s. I'm the vice president and 44 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 general manager of Greater Media Cable. And I'm here to discuss our renewal proposal and I've prepared a short presentation that I'd like to show right now. But before I do that, I'd like to introduce two people that are with me here. To my left is Barbara Burns, our vice president and general counsel from the corporate office. And to my right is Joe Neff, the director of business operations from the Philadelphia office. CHAIRWOMAN CLARK: You're going to show a video presentation?
Yes. What I plan to discuss is the overview of our current operations and then movement to a summary of the proposed items in the renewal. Our main office is located on Columbus Boulevard just down from Penns Landing where we've been located for over the past ten years. We employ 171 employees and of our very diverse work force, 75 percent of the employees live within the limits of Philadelphia. In addition to our cable operation, we also have four affiliate radio stations, WMGK, WMMR, WPEN, WXXR operating in the Philadelphia area. Since the beginning of the franchise, 45 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 the current franchise, we've made numerous contributions. A partial list is on the screen now. Our contributions just in dollars has exceeded a quarter of a million dollars in the past ten years or so, and that doesn't include in kind services and other things that we have contributed. In the area of our commitment to education, we have been involved in the cable-in-classroom program that provides commercial-free programming to schools in our area, over 500 hours per month and the guides to instruct teachers on what the programs are and to alert them when interesting topics are coming up. We've also participated and funded many scholarship programs. We've adopted William Penn High School and we do provide a scholarship annually there. We've also done similar things with people going to Temple and also we've been a big supporter of the Police Athletic League Scholarship Fund. We also produce many of our own local origination programs that are educationally based. And we participated in numerous other educational programs throughout the City. And I believe there are some people here today that will speak to that 46 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 issue when we're done. Speaking about local origination, we broadcast 260 hours of local origination programming per month. And of that 260 hours, 126 of those hours are produced at your studio on Columbus Boulevard. We also produced and broadcast special events like the Newman Southern game that we produced live on Thanksgiving Day. And of course we have our community bulletin board that many people use to advertise upcoming local events. Now, I'm going to shift gears a little bit and talk about the items that we're proposing. As you've already heard, we are in the process and we're proposing to continue to upgrade our system to 870 megahertz, and rather than have a diagram or chart to describe that, I'm going to speak in a layperson's terms here. It's a million dollar 20 project. It starts with a fiber optic ring that 21 connects four strategically located hub sites. That 22 includes our head in on Delaware Avenue. This 23 upgrade is going to allow us to provide many more 24 services including digital cable, high speed access. 25 It's also going to increase the -- I'm sorry. 47 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Again, it will increase the channel capacity, but it also will increase reliability so people that remain at the same level of service will see an increase picture quality and reliability. We are also going to build a fiber optic institutional network for the City. This will interconnect certain government offices including the building that we're in now, City Hall, also the police districts and fire stations. This will allow these offices, fire stations, and police districts to exchange data between the locations and this will be done at no cost to the City. And because many of these locations are already transferring data between them, moving the data from whoever the current provider is to our network will result in a savings, a significant savings in telecom costs to the City. We're also going to contribute 250,000 to government access.
There are two government access channels, and I don't believe there is a studio, so we're going to donate this money or we're going to contribute this money to buy equipment and facilities, and we believe that it will enhance the City's access channel. 48 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 In the area of MBE and WBE commitments, we are going to fund a revolving loan fund at the cost of $250,000. This revolving loan will provide monies for local minority- and women-owned businesses that are certified in the City of Philadelphia. We believe that over the 15-year life of the new franchise, this will generate millions of dollars in loans. In the areas of schools and libraries, we are going to contribute $250,000 in a lump sum contribution to the school district. We are going to continue and possibly we want to beef up the cable in the classroom, and part of the way that we will do that is by offering free cable modems to all schools and libraries, public and private, and also the free cable modem service as well, plus we will also instruct people on how to use the cable modems and offer seminars throughout the area. We will also create a closed digital channel that will allow the schools to produce and in a closed circuit type fashion view educational programs just in the school district. And as it was explained before, that will be in exchange for one of the two analog channels that they're currently using. 49 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 And finally, in the area of public access we are going to renew the capital funding commitment of $450,000 that's currently in the current franchise agreement. So in summary, we're going to upgrade our system 870 MHz; provide and build a fiber optic institutional network for data between the sites that I mentioned at no cost to the City; contribute $250,000 for government access; create the $250,000 revolving loan fund for minority business and women-owned businesses; $250,000 contribution to the school district; free modems for schools and libraries and the closed digital school network; and $450,000 for public access. We appreciate the opportunity to serve the City for the past 15 years, and we look forward to the opportunity to go forward. Thank you very much. CHAIRWOMAN CLARK: Thank you, Mr. Pitts. Can we put the lights back up now, please? Mr. Rizzo, you may go first.
Thank you, Madam Chair. I appreciate all the good things you plan to 50 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 do, but I just want to be real specific on a particular issue. About the modems, you indicate libraries and public and private schools. Could you be more specific on what you mean by public and private schools.
Well, all the K through 8 public schools now are all wired for cable. So 9 those schools will get a cable modem. And the cable 10 modem the way we envision it now would best be used 11 in like a cable lab -- I'm sorry. In a computer lab 12 operating 10 to 12 computers. We'll do the same thing in private schools which we're not doing now. We will also provide them --
I just wanted to be sure of that. Thanks. CHAIRWOMAN CLARK: Yes, Mr. Mariano?
Thank you, Madam Chair. You made a statement that of 171 employees 75 51 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 percent of them live in Philadelphia. That's a correct statement? Or is that the person before you who said that?
Do you know of a group called Commercial Construction Group, CCG?
They are a contractor. They built the system at the beginning of the franchise.
I heard that they have 18 employees. Do you know out of those 18 employees, would you believe that 16 of them were non-residents of Philadelphia? 52 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847
Do you have the same minority participation with your subcontractors that you have with the people that work directly for Greater Media?
No, how many minority participation by your subcontractors. That's what I'm interested in.
Well, we don't require -- there aren't any minority participation requirements.
I'm asking you that. Do your subcontractors have minority participation, yes or no? 53 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 If you don't know, say "I don't know," but you have to get it for me if you don't know.
May I answer that? Our contract with CCG contain language that -- CHAIRWOMAN CLARK: First, we need your name, please.
Pardon me? CHAIRWOMAN CLARK: We need your name for the stenographer, and then I need you to pull the microphone very close to you so we can hear you.
My name is Barbara Burns, B-u-r-n-s. CHAIRWOMAN CLARK: Thank you.
Our contract with CCG requires the contractor to -- it advises the contractor of our minority hiring goals and asks them to assist us in meeting those goals. We do not require nor is there any mechanism for us to require them to subscribe to those goals.
Let me ask you on that line, during your fiber upgrade, you upgraded you system of course to the newest fiber optical system. When you did that, how many local people or how many minorities did you use for that? Did you do that or 54 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 did your subcontractor do that?
We use contractors to do that kind of work because it's not something that we do on a day-to-day basis. We could not maintain a work force to upgrade the City 365 days a year every year during our franchise. So to the extent that we need to perform upgrade work, we have to go out and hire a contractor to do that.
When you have a subcontractor, do you monitor the rates they're paying to these people? I mean, if they're cable installers, there may be a certain prevailing rate that we would have to have the City pay these cable installers. Since you don't monitor minority participation or you don't monitor area residents, I want to know if you monitor that question. Do you monitor that you're paying prevailing rate to these subcontractors, or are these subcontractors just free-lancers?
No, we don't monitor that. Everyone is subject to the same wage and hour laws, federal and state.
Every employer in state is 55 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 subject to federal wage and hour and state wage and hour laws.
Say I'm Greater Media and I want to put some new cables in and I hire Councilman Rizzo's company to do this. I just say, "Councilman Rizzo, your company, do what you got to, Councilman. You know, as long as you do the work, I'm not concerned who you're hiring, who's doing the work, what you're doing." Is that basically what you're telling me?
No. We hire a contractor because they are qualified and experienced and can do the job competently and on time.
How do we know these contractors -- or how do I know? Maybe you know. Can you how tell me how you know these contractors are competent and experienced?
Because we monitor their work on an ongoing basis. And if they weren't competent, we would know that by virtue of the 56 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 quality control that we do.
And in addition, this group built the City, built all four areas originally.
I'm saying in addition, CCG, they built the cable plant that's in existence now for the whole City, so that was one of the reason that we knew their competence.
Along that line, who is ICS? Could you tell me what they do for you? What does that stand for? Does anybody know? I think it's one of your subcontractors that takes converter boxes, so that's not construction.
Are they Philadelphia residents? Is the company from Philadelphia or do they come from Ohio or Texas?
I believe the company is in Wilmington. 57 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847
What about if I tell you 196 Quigley Boulevard, New Castle, Delaware, that's close. They clean and repair cable boxes. How about C-Pro, do you know what they do for you?
And do they do that in Philadelphia, do they do that in New Jersey, Ohio.
Can anybody here tell me? These are important questions to my constituents, and these are important questions to me. I mean, it seems to me you don't have a lot of answers for these questions.
Well, I can say that in the franchise we're proposing, we have some numbers of Philadelphia-based businesses that we're committing to adhere to, and we intend to do that. In terms of minority participation over the life of the franchise, we made some commitments there and we're tracking with those numbers. So those numbers have been a concern to us. I mean, those issues have 58 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 been a concern to us as well.
Do you know who is the main force behind that? Is there one man, a group?
Do you know if Cliff Eckles is an African-American male or a Chinese woman or do you know anything about him? Did you ever meet him?
How about if I told you Bob Barnet is probably a white guy doing the same business that you hire Cliff for, probably 59 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 undercutting Cliff, too.
Well, if we're trying to do the minority participation piece, which is a good thing on the surface and then we're undercutting our own guy -- how about if I told you Bob Barnett is maybe an employee of ICS. There's no business addresses on his invoice. He may be working under the table to cut the Philadelphia minority business laws.
Can you find out about all that stuff and give the answers to the Chairwoman?
Well, respectfully, our goal I guess, as your goal is, is to have minority participation, have women participation, to patronize businesses that are in the City of Philadelphia, not exclusively, but to the extent that we can. And when these proceedings are done, if you want to be a resource or if there's someone else that will be a resource or you can point to me who could be a resource, we're open to it. We've 60 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 just tapped into the MBUC as a source for certified minority and women-owned businesses. And we would welcome any input that we can get in that regard.
Can I go back to my business venture with Councilman Rizzo here for a minute? Please bear with me, Councilwoman, it's very important. CHAIRWOMAN CLARK: Councilman Mariano, just take all the time you want, within reason.
This is an imaginary business, because I know you're a millionaire already so it doesn't matter. This DC Wiring from New Jersey is a Greater Media subcontractor. Now, let's make this Frank Rizzo Wiring and I give Frank this business to do. Would I have to make sure that Frank's paying all the City wage taxes for employees, or I just wipe my hands? Does Greater Media do that? With DC Wiring, do you know if they're paying City wage taxes? Do you know if they have a business license 61 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 in the City of Philadelphia?
We require that do adhere to all City, State, and Federal regulations.
Do you check up on that? Do they say, "Yeah, we're okay." Or do you say, "Let me see your business privilege license." Because my wife has a cookie store over the Bellevue. She has to display her business privilege license. And I know Councilman Rizzo, when I do my business with him or anybody else, I'm going to say, "Look, don't jam me up here, Councilman. Let me see your business privilege license and I want to make sure you're paying your employees the right wage," which around here would be the prevailing wage which the magic word I'm looking for is probably the union rate. Do you know that there's a union in this town that trains people for what you're hiring people to do, the same thing, that spends millions of dollars every year and trains people?
Your work force members are members of what union? 62 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847
That's what we're responsible for, our employees, and they are all members of the IBEW.
Well, see, I'm responsible to make sure these contracts get out of here the right way and make sure everybody's not like shucking and jiving, although which I don't think you're doing --
But I think what you need to understand is that you have Local 98 members that work for you and Local 98 members -- I'm still a member of Local 98 so I think I can still install cable. Why wouldn't you use Local 98 members to install the cable?
CCG does not install cable. 63 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847
And all those things I asked you for, you can give them to the chairwoman of the committee? Those questions like --
It would be very helpful if you could submit those questions to us in writing. It would help us to know exactly what you want to know.
Thank you. Thank you for your patience. No further questions, Madam Chairwoman. CHAIRWOMAN CLARK: Thank you. Are there other questions? Mr. Nutter?
Good afternoon. I may have missed at the start your respective responsibilities, so I'd like to go back to that part so I have a better understanding of who I'm 64 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 talking to.
Okay. I'm John Pitts, P-i-t-t-s, the vice president and general manager for the Philadelphia Cable System.
I'm Barbara Burns. I am vice president and general counsel for Greater Media, Inc., which is the parent company of Greater Philadelphia Cable.
I am Joe Neff, N-e-f-f, director of business operations here at the Philadelphia Cable office.
So can someone give me just a very brief explanation of your, I guess, your corporate arrangement, because you made mention of a parent company and then I guess it's the company that actually operates the franchise. 65 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Someone just very briefly tell me a little bit about Greater Philadelphia Media.
Greater Media, Inc., is the parent company. It owns a number of businesses. Among them are the cable system in Philadelphia. We also operate four radio stations in Philadelphia, in addition, radio stations and cable systems in -- cable systems in Massachusetts, radio stations in Boston, Massachusetts and Detroit, Michigan, and also in Middlesex County, New Jersey. We also have a printing and publishing business in Middlesex and Monmouth County, New Jersey.
So your cable franchise areas are in Philadelphia and Massachusetts, is that correct?
Radio in Detroit, Massachusetts, Middlesex, which is somewhere in New Jersey, and four radio stations here in Philadelphia?
That's correct. 66 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847
And Greater Media is the parent company of Greater Media Cable?
And Mr. Pitts, you are the day-to-day general manager of the cable franchise here in Philadelphia?
And then I guess you have a number of either other vice presidents or some other level of management that do other day-to-day things, some of whom may or may not have been able to more directly answer some of the questions from Councilman Mariano.
Now, what's the expiration date of the current franchise?
And why is it you're attempting to renew at this point in time?
Well, we are in the early stages of our upgrade, and we wanted to get this process out of the way and be able to fully focus on doing the things that we're committing to in the proposal. 67 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847
And you wanted to know that you had another 15, 16, years to do it? 4
What's the 6 difference in your perspective between this proposed 7 agreement and the current agreement that you're 8 operating under? 9
We think that in the 10 proposed agreement we're offering more things. The 11 upgrade, for instance, is something that is 12 significantly different, better than in the current 13 franchise agreement. The fact that we are 14 offering -- 15
But you're not just 16 upgrading just to make us happy, right? 17
No. But we think it's good for the City, it's good for us, it's good for everyone.
I understand. It helps to serve the business interest as well.
Yes. The cable modem services that we will be offering, the fact that we're going to offer it to schools libraries, public and private, we think is something that is in 68 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 addition to what we're doing in the current franchise. There are some things that we've adopted along the way that are being memorialized into the agreement such as some things in customer service. An on-time guarantee was something that was developed during the life of this franchise, and we've committed to doing that going forward.
Does your system provide if a customer has some problem at 10 o'clock at night or 2 o'clock in the morning, can they call somewhere 24 hours a day and get service to their problem, or is it just someone takes the information and you basically have people out in the normal operating hours?
Well, the way we're operating now, we will respond to a system outage, like if a street goes down we'll respond to that at any time. But if there is one person that has a problem with the television set, that information is taken by answering service and it's dispatched the next day.
In Mr. James' testimony on behalf of Mr. Perez you made reference 69 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 to you're going to freeze your basic tier B1 programming service rates from January 1, '99 through January 1, 2000. What is the rate now and when was your last increase?
The rate now is $15. It will be $15 effective January 1st, from $14.86 to $15. The last time we adjusted the rate was November of '97. CHAIRWOMAN CLARK: Was when, November '97?
So you went to the $14.86 rate in November of '97 and you're going to $15 even on January 1, '99?
And you're going to stay at the 15 until January 1, 2000?
Your video presentation, I took down a figure that talked about $450,000 for public access. I couldn't figure out in the presentation by Mr. James where that figure came from. Can you explain to me where that comes 70 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 from?
There is a series of lump sum contributions that total $450,000, and in addition to that, there is also some expense contributions that's from 75 to $125,000 per year that can be requested by the Commissioner. And the lump sum amount is to fund the capital expenses, the facilities, the equipment, et cetera.
I believe there are two neighborhood access facilities, a mobile production van and equipment for both of those.
They haven't been located anywhere yet. They need to be located. This is 71 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 just the capital to fund that.
Was this something that you were supposed to do in the current agreement? I'm not understanding something here.
For public access in the current agreement, we had agreed to the same funding pending the --
No, I'm not talking about that yet. I'm still at the two access stations. You said that they're not anywhere.
We weren't to build them, we were to fund the building of them.
So if they happen, I mean, is this all a part of the issue of public access and lack of a Publishing Access Corporation?
All right. On of Mr. James' testimony, it talks about annual operating funds obligation deductible from franchise fees paid to the City total 75 to $125,000 as directed by Council. Can you explain what that means?
Once the corporation has been founded and the capital dollars are funded, my 72 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 understanding is that the operating expenses can be deducted from franchise fees in an amount from 75 to $125,000 as directed by City Council.
Based on that kind of formula, that essentially means that you don't pay anything for that, right?
The expenses we don't pay. The $450,000 has nothing to do with franchise fees.
And, again, tell what composes the $450,000. How does that break out?
The $450,000; 250,000 of it is for the two access facilities and the remainder of it is for the mobile van and the equipment that goes into both of those, the access studios and the mobile van.
What's the purpose 73 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 of mobile van? Why do you need two studios and to have a mobile van? What would the mobile van do?
I would imagine that the users of public access would take that on location to produce public access programming.
May I answer? The money is to be provided to a public access corporation, and then once the public access corporation has been funded, we give them the money. They decide what to do it.
So this $450,000 is just sitting off to the side waiting for some other action to be taken somewhere?
Right. And that's just our portion. It's going to be combined with the other franchisees' portion.
Can I have Mr. James and probably Ms. Lasota up to the table? Mr. James or Mr. Lasota, could you give a relatively brief explanation of the state of the public access issue and I guess a definitive statement on who has the responsibility for what at this point in time? The two parties being either the City or the various franchise operators, all 74 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 three of them City wide.
I can answer that question, Councilman. Deputy City Solicitor Marie Lasota from the Law Department. The franchise agreements provide for capital and funding commitments from each of the franchisees for the each of the franchised areas for public access. However, none of that money is payable until the City Council determines pursuant to the terms of the franchise agreements that it desires to have public access in the City of Philadelphia. The manner in which the City Council would determine that would be by passage of articles of incorporation of a public access corporation. That particular act has not yet taken place. It is up to the City Council to decide if and when it wants to do so.
Was such a bill ever introduced during the current franchise term?
My records indicate that a bill was drafted. I do not know if one was ever formally introduced.
And is an accurate statement to say that even when the cable companies, 75 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 and it's my understanding that they have either put their money in reserve somewhere or possibly given us the money where it's sitting somewhere in reserve or we at least have access to it because we certainly use some of it to cable this room and put cameras in this room on the government side, but notwithstanding, their putting their dollars aside, until the City of Philadelphia actually does something, it virtually doesn't matter what three cable companies do if the City doesn't take some action and formally establish the public access corporation; is that accurate?
Yes, that is. The cable do not have -- they are required by the agreements to have the money available should the City Council say, "Okay, now is the time to fund the corporation."
Was there a point in time when the cable companies actually had more responsibility for the funding and start-up activities of public access that may have been affected by FCC action or a congressional action?
Director of communications, Vince Costello might be able to answer that a little 76 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 more better than I just because he has the historical knowledge of it. But it's my understanding, not so much as from a funding perspective or from a yes or no go or not go forward with public access perspective, there's some first amendment issues that have come up in the past.
I wasn't so much talking about the first amendment issues. There apparently is some information out in the public that has to do with the impact of either one or two cable acts of Congress on the issue of public access and who pays for what and whether the municipality can cause the cable company to take certain actions or are those responsibilities on the municipal Government's side as result of various telecommunications acts, either of '92 or '96.
There have been some changes in the law. I think that the changes are questions about capital funding versus operational funding. But as long as the cable franchisees agree to the funding schemes that are set forth in the franchise agreements, that's still acceptable.
It's my understanding that I believe on March 1, 1999, there 77 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 is deregulation coming to cable; is that correct?
I believe it was a Telecommunications Act of '96 there is a sunshine provision -- sunset provision on rate regulation by the FCC for cable. So that does effect March of next year.
So does that then mean that the consumers are just subject to whatever rates the cable companies determine with no one having any oversight on the rates?
My reading of it would be that, yes, the consumer is always subject to the rates that the cable operator can charge. I believe the thinking might have been that there is apparent competition that's going happen in the particular industry that will make it more market driven and not necessarily make it a free willing exercise on the cable operators to charge whatever they see fit.
Let's talk about competition. In the environment of virtual 78 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 deregulation of everything, banking, electricity, possibly soon to be gas, and a couple other utility-type service, telephone, although they seem to be getting back together, why in this day and age with television or with television services are we still in cable working with franchises? What cable service you get is a function of where you live somewhere particular in the City versus your ability to have whatever cable company you want.
I'm not sure if I understand. Is the question whether do we need to have a franchising scheme to provide cable in Philadelphia? Or should it just be a mechanism --
Well, the present scheme is you get what you get based on where you live by a cable company, you don't have any choice.
I believe that in some cases, and I'm not here to defend the cable companies, but there is competition for people who wish to have cable-like services and not necessarily have to be dependant upon the local franchising authority. And that's been part of the reason why there's been changes in the Telecommunications Act and the cable operators are being impacted by direct 79 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 broadcast, whether it's Prime Star and another DBS type industries that provide people who want to have cable services and not have to buy that service from the franchising authority. And there is also a lot of talk in the marketplace about the advent from HDTV and other opportunities for more competition. And, of course, the telephone company has always talked about entering the marketplace to provide further opportunities for consumers.
If I could just add, Councilman, the franchises in the City under the Telecommunications Act, no franchise may be exclusive. So if another cable company wanted to build their own infrastructure and cable system to deliver services to the communities, the City would negotiate with them and reach probably a very similar franchise agreement with that other cable company.
But they would have to build up their own system in that area?
Unlike phone competition, I mean, there's essentially an infrastructure in place and everybody's using 80 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 everybody's infrastructure and just kind of charging each other back and forth.
That's true, but that's also another alternative for video services that eventually any phone company may want to start delivering similar services.
That's what they keep talking about. Don't seem to be delivering. Mr. Pitts, let me ask you lastly, there were a lot of questions about more the operational side of Greater Media with regard to either your employees or contractors, subcontractors, and the like. Would you expect -- because I have to admit that I lost track at some point of what you were in control of, what you're not in control, what you do monitor, what you don't monitor. Would you be in a position to try to more formally respond to the questions that were raised by way of the record and make it clear as to what you do monitor, what you don't monitor? You seem possibly not to be aware of all of the intricacies of the questions that were being asked. Again, assuming that you have staff who have more direct responsibility for those areas -- 81 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847
Presently we have a number of contractors, as vice president of corporate counsel said, we make requests of them to adhere to the same standards. We don't monitor them. We had a minority contractor doing our installs up until 1996, and they left. They decided to leave so they left. We are going to work closely going toward to make sure that we meet the commitments that are enclosed in our proposal. And I think our positive record stands for itself.
I appreciate it. Thank you. CHAIRWOMAN CLARK: Mr. Kenney?
Thank you very much, Madam Chairperson. Mr. Pitts, so we have a better idea as to the exact boundaries of Franchise Area I, could you kind of give us the southerly, northerly, easterly and general westerly borders by street as to what exactly the area is that's served?
Pretty much we go from 82 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Susquehanna Avenue in the north down to the airport area in the southwest and river to river.
So primarily, I guess it would be the First Councilmanic District and a little portion of the Second and a piece of the Fifth also.
And please don't take this to be offensive because it's not meant to be. In the spirit of Councilman DiCicco who always asks this question, how many people are on your executive staff, the top executives of the company at Columbus Boulevard.
There's myself -- actually, we're pretty much all present. Director of marketing, business operations, technical operations, human resources, and programming.
And of those top five or six people, how many of those people 83 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 actually reside in the City.
I don't need to know their addresses, I'm just curious as to the five or six.
When you had come around and talk about the upcoming legislation, I generally expressed a positive response to the service because I am a Greater Media customer myself, and I guess nobody's happy with the bill no 15 matter if it's you or Comcast or whoever. But one of the things that I expressed to you at the time was a concern that I have, that Councilman DiCicco has, that some other members of this Council have relative to who does work where and where they come from. And while I recognize through my conversations with you and through what you presented here that from Greater Media, quote unquote, specific employees that work specifically for the company, there seems to be a pretty decent diversity and residential component to the community 84 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 that Greater Media's serving. I think that the problem comes in and the suspicion comes in relative to that next tier of employee that you term and we all term as contractors who do actual work in the community that Greater Media's serving. And even though there may not be a requirement, and this is I think a paraphrase of a discussion we've had, there's not a requirement for to you require that individuals who do subcontracting work who's actually pulling wire, repairing service, fixing cable boxes, doing those kinds of things in the community that Greater Media serves, for the most every effort should be made and could be made to make sure that they are from the area and that they are diverse enough and well trained enough to be a good representative of the company even though they are subcontractors. And I think the real rub is, is what responsibility does the cable franchise holder have when it gets to that level of employee? And what I'm suggesting as a member who will eventually vote on this is that I think you should have more than simply hiring the cheapest or the person who wins the bid if they happen to be from Wilmington or from New York or from wherever. And for me it's an 85 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 issue of the money that the citizen and cable ratepayer spends to the company for their service and what goes back in the community in this arrow and what may leave the community in this other arrow. And I think in the long run, and I've had this discussion, not just with companies like yourself, but with the City in general. The Rendell administration to their credit has tried to be extremely conservative and fiscal responsible when it comes to contracting out services, hiring companies to do certain work. But my argument with them has been that the bottom line number isn't always as important as to whether or not that money gets piled back in the community at the Pathmark down the street from Greater Media, at the Home Depot or at the stores around the area and whether or not the people who are actually working for the company, whether they're the Greater Media employees themselves or whether they're subcontracted employees, come from the neighborhood or at least from the City so that the economic multiplier benefit of the dollars that are spent go back in the neighborhood. And I'm not questioning in any way your 86 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 commitment to the community. I think you've done through your presentation and lots of other things that I know personally you've done have shown that commitment to the community. I think the next step needs to be getting ahold of who's doing that subcontracting work and trying to maximize the benefit from a diversity standpoint and from a residential standpoint as to who's actually going and taking those paychecks and buying groceries and paying tuitions and buying cars and buying appliances in the community. I think that's the real economic benefit from my perspective as to when we grant franchises, when we give contracts. Those are the things that I look to try to accomplish. I expressed that to you at meeting that we had.
I'm going to express it to you again here publicly. I don't think you're bad people. I find you decent, responsive people, and I think that if you really try and pay attention to it, you can be responsive and accomplish the goals we want to set.
I agree. I share in those concerns. And there is language in the agreement 87 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 that speaks to that, and we do plan -- I do plan, I commit here today to focus on that going forward. CHAIRWOMAN CLARK: Tell me how you're going to do that.
Well, in the selection process -- well, actually two ways. CHAIRWOMAN CLARK: Walk me through a for instance, "This way I am going to have greater assurance that the people who subcontract with me will hire people who live in the area," walk me through an example of that.
Madam Chairwoman, in the proposed franchise agreement, there are some numerical targets, so that's the overriding. CHAIRWOMAN CLARK: Tell me now. Pull out a little example, a little hypothetical. Tell me how you're going to do that.
Okay, we're sitting down looking at another installation contractor. And just as in the last time when we were looking for an installation contractor, Local 98 will be contacted to submit -- to help us in the selection process.
If I can just interrupt for second. 88 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 CHAIRWOMAN CLARK: Sure.
The issue of representation, labor representation or other representation, I don't think is germane to the issue, and I don't want to see the record burdened with it because what an issue is for me is whether a person's a union worker or non-union worker, for me it's whether they live in the community, whether they are young people who need opportunities to learn trades and to move forward, to get married, to buy houses and to raise children. Representation is I think everyone should have an equal opportunity to bid and to try to get that work as long as, again, the workers aren't coming up from North Carolina and spending two weeks in a Red Roof motel, taking those dollars back in their van to North Carolina to spend their paychecks.
I understand. What I can say is that in choosing someone to do work for us, whatever it is, we don't just chose the person that has the lowest bid. There are a number of factors we consider, and residency is something that we will put in our factor going forward. So back to that meeting where we're 89 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 sitting down, I brought up 98 just as a resource to bring people to the table that we can evaluate. But someone who has no local residents working for them versus someone that has a lot would be at a disadvantage in the selection process. CHAIRWOMAN CLARK: Councilwoman Miller?
Thank you, Madam Chair. In your agreement Appendix I, Section 2, where it talks about employment and you lay out goals to minority and woman participation goals, is this new, or was this in your old agreement? Is this a new section?
This section is different. It's pretty much the same language from the Comcast agreement.
Did Greater Media have this in this old agreement, or is this a new portion here?
Correct. During the initial phase of construction through now we have been tracking the minority and women-owned businesses that we use. And totaling those capital expenditures against total expenditures and we did meet the targets that were set out.
Looks pretty much, too, like it's employment opportunities in-house, not contracting.
In that area, we have exceeded the numbers both in woman and minority employment. CHAIRWOMAN CLARK: Where is that chart that says that you exceeded it?
No, there's not a chart that says that, but I can tell you what the statistics are now. Currently of our work force, 38 percent is African- American0 -- 91 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 CHAIRWOMAN CLARK: Are you reading from a report that we have?
No, I am not. I'm reading just from some notes that I have. CHAIRWOMAN CLARK: Are you going to provide us with them?
I can. CHAIRWOMAN CLARK: Because we can't process numbers like that orally.
Okay. CHAIRWOMAN CLARK: You can a read it, but you should also provide copies.
I will provide copies for you. 38 percent of our work force is African-American; 11 percent, Hispanic; and 46 percent are women.
Does your chart also list levels of employment, classifications, senior level, beginners, entry level, intermediate?
I have those numbers, not with me. But what I can tell you is that in comparing our -- those numbers reflect the neighborhood that we serve. That's how we track against. 92 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 CHAIRWOMAN CLARK: I have nothing but your word to say that. What you need to do, in the old parlance we used to have something we call an EEO1 spread sheet, an equal opportunity spread sheet. And it would then go from officials and managers down to laborers. That would be your vertical split. Then horizontally, you would go total percentage numerical, minority, women. And in the minority split we use something I call the "NOIS" code, Negro, black, colored, African-American what you call people who descend of African slaves, I put that under N; O, oriental; I, Indian; S, spanish; N-O-I-S. And if you spread that out across your EEO1 spread sheet, I could then read it down and across and get a comparison number that is relevant. And then I don't need you to tell me whether you think it fits because we'll all be looking at same numbers and can draw the same conclusions.
Yes, Madam Chair. The reason I say I know that we are is because we produce that report once a quarter, the FCC 393 reports. CHAIRWOMAN CLARK: Then I guess I'm 93 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 asking you to share that spreadsheet with us so that we can make that informed decision. And as much as we like you, we'd have something other than your word to go on.
In addition, can you give us information, too, on the demographics of your customers in the Greater Media service area? I have a couple more questions.
That's information we would have loved to have received in our packet, in the testimony packet.
In our area 54 percent white, 39 percent African-American, a 4 percent Hispanic, and 3 percent Asian or other.
When you submit that, can you tell us the geographic boundaries? I live in Comcast and I'm more familiar with the Comcast boundaries. I only am familiar with Greater Media because we have cable here in this building. 94 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Other than that, I have no idea where Greater Media serves.
Is one modem per school sufficient, or can the schools itself kind of split it up and service -- because one modem to me sounds like one classroom or one lab. Can other people, other classrooms kind of plug into that?
In the traditional sense of a modem, one modem would be one computer. But in utilizing cable modems, it can feed several. So we think the best application would be in a cable lab with 8 to 10 computers running off of it simultaneously. And in other areas of the country that have tried that, it has worked successfully.
With your intern training program or with your training program, period, because we have two. Employment training program, and that's on for your present employees?
So you won't be out recruiting? Like, it's not going to be a Welfare to Work Program or anything like that? You won't be out recruiting new employees, the training 95 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 program is for your present employees?
What is the dollar amount that you will be spending on training and education annually for the upgrading of your staff?
I don't have the training budget in front of me, but we have tuition reimbursement program, we have in-house correspondence training. The National Cable Television Institute provides training at pretty much all levels of technical competencies and also customer service, and we provide that to all of our employees at no cost to them and we've been doing that for years in addition to increasing the salary upon completion. So I haven't totaled up the total amount that has spent there, but it has been significant.
Okay. In the last agreement, how come -- is there a particular reason why you didn't contribute to PCDC's contractors loan, revolving loan or whatever, and other people did? Why was that eliminated in your contract?
Well, we weren't aware of PCDC until just recently. I'm not sure how close 96 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 the agreements between the City between Comcast as a franchisee and Greater Media was, but there may have been some things -- since I wasn't in the negotiations in first go-round, there may have been some things that we agreed to do that they didn't and in lieu of those things, they did that. But now presently we see it as a good thing, the right thing to do, and that's why we're supporting it in the amount of $250,000.
Madam Chair, I don't have more any questions. Thank you. CHAIRWOMAN CLARK: Thank you very much. I have a few questions. I know that there's some union people here, and I have promised to put you on. I just want to clear up a couple of things. When will there been free cable modems in schools and libraries? When is that going to be available?
We project that the system will be completed October -- I'm sorry. March of 2001. And sometime around that time, we will launch the cable modem service. And as soon as it's launched in an area, we will wire that school and that library in that particular area for the free 97 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 cable modems. So as soon as it's available in an area. CHAIRWOMAN CLARK: Aside from the cable modems, what else if anything will Greater Media do for the school district?
Well, we are going to contribute the $250,000 in the lump sum as a donation to the school district, and also the closed digital channel. CHAIRWOMAN CLARK: I thank you. Mr. Rizzo.
I'd like to talk a minute about your billing. You basically agree to maintain the very basic rate, which I don't believe most of your customers just have, the vanilla rate, the B1 rate for one more year?
Could you just tell me briefly your classes of service basic, value pack, what is your next tier of service?
We designate the service 98 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 levels as basic, being the B1; the CPS tier we call our standard tier. That's where CNN, ESPN, those channels are. Then we have a new product here which we have labeled great times, and then there's premium and pay per view above that.
Could you tell us what your plans are for those other classes of service? I understand there's been some announced price increases for those?
Correct. That tier is more difficult to forecast because some of the more expensive programs -- expenses to us, are on that tier. And those prices have been rising at a rate that we can't predict. But as always, we will try to keep -- for many reasons, we're going to try to keep the rates as reasonable as possible. But we are committing to the B1 or the basic rate not increasing until January of --
The basic rate is basically -- most people that subscribe to cable television because they want the CNN and the other 99 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 programming. The basic rate now is very limited. Matter of fact, probably rabbit ears would give you basically the same.
Well, we have 38 channels on basic. The channels that you spoke about, all of the public education and government channels, we have the learning channel, we have the religious stations. We have, I believe, a very robust basic lineup and it's not scrambled so you don't need a converter for it.
Matter of fact, I got a phone call that one of the public access channels that during the middle of the stadium controversy which I believe you covered that on one of you --
That at midnight it just went off the air. Obviously, it's an automated process.
Well, you would think in the middle of that controversy they wouldn't have just chopped it at midnight, especially when the House was still in session. Just in the letter I have to answer, by the way. 100 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 So the only rate you're planning to freeze is the very basic rate?
My last question, and again, these are constituent comments. And by the way, I didn't receive any contact at all from anyone from your organization to prepare for this hearing, so that's why I'm asking some very basic questions which could have been probably answered on the telephone. So I was planning to call you about these things. I was asked to ask why when you provide service to a customer and you bring the converter box to their home, if they elect to disconnect, you require the customer to return the box; is that an accurate statement?
But your customer service tells the caller that they must physically tuck it under their arm and bring it back to your 101 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 office. So you're telling me today --
We request. Our experience has been that the sooner we retrieve the converter box, the better.
So your policy is publically today that if a person wants to disconnect from your service that they don't have to carry it back to your offices to your customer service window and return it.
You will send an employee of your company to pick up the box if they elect to go off your service?
Yes, that is correct. CHAIRWOMAN CLARK: And you don't want your box floating around and not being paid for.
Well, that's shut off. The value of the box at that point is the only thing we're talking about.
Just so we understand, your customer service people before today specifically told your subscribers to disconnect from the service they needed to bring the 102 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 box back to you.
Well, we are still going to request that. But if the customer says, "Can you pick it up," we will tell them, "Yes, we can pick it up," and we've been doing that.
Thank you very much, Madam Chair. CHAIRWOMAN CLARK: Thank you very much. Are there persons in present in the room 13 who wish to be heard to speak? I understand there's some labor people here. Please come in, sir. Good afternoon. Thank you for your patience. Please introduce yourself to the record and spell your name for the benefit of the stenographer and then you conduct presentation.
My name is John J. Dougherty. I'm the business manager of Local 98 electricians and sound communications union of Philadelphia. I'm also the Penns Port Civic Association president which the civic association in which Greater Media Cable exists. And that's 103 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Dougherty, D-o-u-g-h-e-r-t-y. Madam Chairwoman, I'm not here to throw the baby out with the bath water. CHAIRWOMAN CLARK: That's hard on babies.
I am here to question and ask respectfully that this agreement which still has two years to go is not sent out of committee today for a whole lot of reasons. One, primarily, when you talk about rates, it was presented that the basic service is going to go from $14.86 to $15 and it will be frozen. From a civic issue, that is not exactly the basic rate that John J. Dougherty who lives on 1900 Moyamensing Avenue in South Philadelphia along with everyone in my family who lives in the Philadelphia region pays. What I would pay for basic residential cable service is $34.79. It's an increase from $31.93 which is a 9.2 percent increase. Now, at the civic association -- CHAIRWOMAN CLARK: Excuse me. Why are these numbers so different from the ones that Mr. Pitts mentioned?
Well, you get basic service, but if you're looking for the total bill, 104 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 the bill that you receive, basic service is $14.86 presently, standard service is $13.45, converter rental is $13.09, remote rental is 30.34, home wiring maintenance is .19. I did a quick survey, phone survey along with Mr. Foy who's sitting at my right. Of the 8 members that live in this area and everyone has this 9 residential billing, it is our bill is $31.93 10 presently. There's no one that has anything less. 11 So you look at a 9.2 percent increase compared to 12 the average income in this specific area, the medium 13 income is about $19,000. The average wage increase 14 that I negotiate has been a little over 3 percent, 15 and them increases are spread over water, heat, 16 food, education, and just not the cable bill. So to 17 me, in my explanation to my residents as a civic 18 association head, I said that I would find out. We 19 had no notice, there was nothing notifying in a 20 specific neighborhood of the increase all of a 21 sudden coming. So from the civic standpoint I have 22 some questions about that. 23 CHAIRWOMAN CLARK: Mr. Dougherty, what 24 percent of your sample only uses standard. I mean, 25 don't you have a substantial number who use the 105 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 premium channels?
Yes, over and above. CHAIRWOMAN CLARK: So that over and above the basic offering, people are free to buy whatever they choose; isn't that correct?
Yes, ma'am. Now, I really respect the opportunity to speak and I am very glad I have the opportunity to speak following the presentation from Greater Media. I am not saying that Greater Media is a bad company. There are a lot of things in question today that primarily subcontractors and primarily the numbers that we're throwing around. When you throw around 174 full time persons, a majority of them are made up inside the office. And that's a high majority of your Latino female, African-American female. As you automate, my past experience with some of the bigger companies like Honeywell and Holmes and the people that have a building office, and a lot of these people service receiving members and they're your building department. As we automate and upgrade, we have a tendency to lose them jobs. We're not going to probably be adding, and I don't think there's anyone 106 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 in this room can tell you a specific number of interoffice growth jobs over the length of this contract. A majority of all future employment opportunities will be through the cabling industry and also Greater Media has a game plan because of some of the cable theft to go into every house and change the cable boxes. I've had a lot of conversation. One of the previous speakers said that they'll take ideas. I've been trying to offer ideas. I'm in the process of renegotiating a contract. As of April 1, 1998, that is when I assumed representation of the Greater Media Cable employees. From that day on, I have been working feverishly to fix what I feel are some inadequacies. Having a job is fine. Having a job that pays no money or is binded up by a contract that runs to the year 2000 handicaps these employees significantly. My union meetings have been well attended by the Greater Media employees, as much as 110 or 20 on any given occasion. I've had the opportunity to spend late hours talking primarily to the single mother who works there. The contract was negotiated a few years ago. It had a stipulation in 107 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 it that had a percent maximum increase in health care. Now, anyone that lives in the real world understands that that can be assumed in one year. I've been trying to negotiate with Greater Media and I've been put on hold. I'd like to say it's functional amnesia, without being sarcastic, because they knew this thing was pending. I'm not saying they are bad people, but I see no need to rush this until some of the concerns that have been addressed here and on Greater Media's behalf they want input. Well, I'm willing to give them input and I'm willing to abide by the minority business rules. I think Mr. Roundtree does a fine job in this City. I have a track record of that. In fact, there is a seminar -- and I have a series of information which I'd feel free to give you on how we get applicants specifically. We just don't get names. In front of me I have a formal application from Council President Street with a recommendation, with a resume, with a diploma, with a follow-up letter from a job, Pennsylvania. This girl is now an employee of Local 98. I have series of these and I've explained to some of the people at 108 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Greater Media, instead of going to the newspaper and hiring people from all over, that there's a significant amount of individuals in the Philadelphia vicinity who would love to have the opportunity. But they're not willing to work $5 an hour because it does not increase the benefit. In the specific case that I was telling with the health care, the average person who makes $9 an hour is going to have, because of the latest best negotiated rate that Blue Cross at the time and they're really working because they understand the situation, is still $35 net per week out of their pay. Single mothers cannot survive that.
These people are coming to me and asking me to place them in other companies and other functions where Local 98 represents them. So I've been bringing that point across. When we get to the subcontracting area, which is a major problem, in fact, there's some illegalities going on in that, and I'll give you an idea of one specific situation. Now, I'm not questioning Greater Media's commitment, you know, all these dollars and cents, but this isn't a 5-year agreement, this is a 15-year agreement. And as we 109 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 all know, this market is running rampant. So some of these contributions aren't so great over the period of years. For the ability to control the 5 cable industry in one of the largest and fastest 6 growing construction and employment areas which is 7 Councilman DiCicco's. 8 I'll give you an example. CCG is the 9 outfit that is controlling the cable installation in 10 the City of Philadelphia. I happen to live in that 11 area. Riding to work one day, I get out of a car in 12 front of Engine 46 which is a steak house on 13 Delaware Avenue right across Greater Media 14 headquarters. " All three guys were male Caucasians that lived in Allentown. CHAIRWOMAN CLARK: They can get a job as policeman in Philadelphia. 110 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847
Now they can, right? But not yet. CHAIRWOMAN CLARK: We're working on it.
I asked them were they were working for any union. They told me no. The one guy was sarcastic. I asked them did they know any rules. He got a little nasty. I asked him, I said, "Listen, before" -- and I had Harry with me at the time. " He said $12 an hour. Much lower than the area wage and standard. I asked benefits. " So we went on. " We move along, 18 of the employees that make up CCG base live outside of the Philadelphia area. Now, for a corporation -- again, not bad guys. But where the brain trust does not live in 111 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 the City, does not spend anything in the City, does not eat, drink, or go to school in the City, I can see where that might not be a factor. For someone like myself who everyone on both sides of my family still lives in the City, it's a problem. In the process we came to a quick resolve to get ourselves through that. We were able to put five flagmen on, which are the lowest position on the payroll. In that process, the first three employees were two African-American males supplied by the black clergy of Philadelphia, and an Asian supplied to me by Councilman Kenney at the time because I put a call in to Councilman DiCicco, it was his district. And that's usually the way that I do business. If I get an opportunity, I go to the local political who has the people in their community that need work. The next one was Caucasian and think the fifth one might have been a female. I'm not so sure of that. In that process as I move on to some of the other contracts, yes, we have talked to CCG about signing agreements. Yes, we have talked to Greater Media about supplying us other people that might want to become Local 98 contractors. So far 112 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 the only name that we have, we have received a Philadelphia resident. It's a Caucasian male. We have had explanations at our union meetings about the possibility of someone in-house becoming a contractor because of the makeup and also my big fear is some of these people will be losing their jobs to automation. The Telecommunication Act is going to kick into place, and we are very worried about that. We don't have a problem with the overall picture of Greater Media as long as they abide what City Council would like. From a local standpoint we would love to represent them. We've only had the opportunity for less than eight months now. I think we've made tremendous inroads. I think we give their employees representation. I think we add a Philadelphia flavor. We're here today to say we are more than willing to supply them with legitimate MBE's. We are more than willing for kids that need jobs in this City and to tremendously upgrade their skills. I'm not here to tell you everything that's broke. But I can tell you that the contractor now that is entering your mom's house, your sister's house is a contractor from Jersey that Greater Media 113 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 has no control over. One of the guys that knocked on one of my neighbor's house in the 1900 Moyamensing Avenue spoke no English all and was coming in to do cable. We went through this process, they all work for an outfit DC Wiring. DC Wiring has not pulled one permit in the City of Philadelphia since I've been district manager. There's a ton of them stories I can sit and elaborate on. I'm not here to shoot Greater Media. I'm here to tell them they have a problem. I'm willing to work with them. I have been through this system. I can show you paperwork. I'm committed to neighborhood participation, I'm committed to minority participation, I'm committed to new business enterprises, and I think they should be. I think 15 years to control a community is an awful lot of control. And I think the minor problems are not minor problems because I can tell you in my short eight months, I've offered suggestions and they've fell on deaf ears. So why should they not fall on deaf ears after they have the agreement.
I'd like to thank you for the opportunity. I have every intention of working with 114 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Greater Media, the neighborhood, yourself. Thank you Madam Chairwoman. Harry Foy is the president of Local 98. If he could just say one minute's worth, he'll tell you about what we're doing on the line of education which was one of your previous questions and where we are now in the process of purchasing a building to expand our education to include everything that, not only Greater Media does, and one thing I want -- CHAIRWOMAN CLARK: Why don't you let him say what he's going to say.
One thing Greater Media, if you picked up in the presentation, they are no 15 longer a cable company. They are becoming a telecommunication provider. We have an area wage and standard and I already have 87 -- CHAIRWOMAN CLARK: Mr. Dougherty, you've made your case.
Thank you, Madam Chair. Harry Foy, I'm the form president of Local 98, and I appreciate the opportunity to testify here this afternoon. I'm not going to try to steal the 115 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 business manager's thunder because he did it quite eloquently. There's no question about that. But as a life-long resident of the Philadelphia, my family, my parents still living in the City of Philadelphia, I appreciate the opportunity to testify here. As John had stated with Greater Media, we're not here to shoot Greater Media, we represent Greater Media. We commit ourselves yearly, myself as the co-chairman of the Apprentice Training Committee for Local 98 to spend upwards to two million dollars in electrical and fiber and voice and sound communication training. We constantly upgrade systems. We provide a platform for our apprentices through our apprentice program to get exposure to fiber terminating, category 45 and all the category wiring and the upgrading of wiring that takes now place out on the street. We do the very same thing in journeyman education, and under our new sound and communication division, we're running people -- we're running people through extensive training in fiber, in sound, in communication. We're in a process now of obtaining leasing because we're growing in such a rate we're going to need new facilities just to be able to be able to entertain 116 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 all this training and education. We currently represent upwards to 1500 City residents to perform these services in all walks of life. Minorities, women throughout the City of Philadelphia. I don't really know whether I can expand much further on that. I would appreciate that this be held up today until we can come to some kind of common ground so that not only do the citizens of the City of Philadelphia get justice in this process and this body gets justice in this process we make sure that our tax dollars are spent in a very profitable fashion for the citizens of the City of Philadelphia. Thank you. CHAIRWOMAN CLARK: Yes, ma'am. Good afternoon.
Good afternoon. My name is Betty Thompson, and I'm here on behalf of Hartranft School, and I'd just like to read a letter that's in support of Greater Media. Let me take out my glasses so I can see. I'm a small learning community leader and a science teacher at Hartranft School. I'm also the Chairperson of the William Penn Cluster Scholarship Fund. I've had the 117 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 privilege of working with Greater Media of Philadelphia for nearly ten years. From the very beginning, we embraced the philosophy that teaching and learning must be interactive and meaningful and that children need the opportunity to learn and express themselves in different ways. Greater Media has donated computer software, time, funding, and technical assistance to Hartranft School even though we are not in their serving area. Greater Media has donated time and technicians to edit black history programs for us. These programs featured significant issues surrounding African-Americans and Hispanic culture. Prominent African-Americans from the past and present were also featured in the history program. Greater Media aired these history programs on their local community network. And they did this several times. We continue to use these videos as supplemental teaching tools during African-American history. Thanks to Greater Media, students families, and community organizations of the Hartranft School and surrounding areas can share their celebrations. Greater Media's generosity certainly 118 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 speaks to their commitment to the community. When the William Penn Cluster Scholarship Fund was organized, there they were again right there to help us out. The goal of the scholarship fund is to raise student scholarships for the students who reside and go to school in the William Penn cluster area. Greater Media helped us to organize resources within the Hartranft community. Ms. Thera Martin-Connerly at the time was working there and she worked with me to plan and organize fund raisers. That tradition continues today with the annual family and community awards banquet. Greater Media and Hartranft are currently in the process of planning a unit of study in careers in audio visual technology and computer enhanced video technology. The medium of audio visual technology and computer education has implications for improving oral communication, research skills, written communication, and cross cutting competencies such as school to career, citizenship, and communications. One of the goals of this unit of study is that it will provide opportunities for individual student and peer assessment. It can also provide a record of 119 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 accomplishment as part of portfolio assessment. Interacting with audio/visual technology can empower students to attain and apply knowledge. And I'd just like to take this time to thank Greater Media and everyone involved, and also thank Council. CHAIRWOMAN CLARK: Thank you very much. Mr. Rizzo?
Before Mr. Foy leaves the table, I also earlier acknowledged the good things Greater Media accomplishes for the region and Philadelphia specifically, but I wanted to acknowledge the great job you did with the ballpark down in South Philadelphia. Thanks for that.
Thank you. You're welcome. CHAIRWOMAN CLARK: Thank you very much. Are there other persons who wish to be heard? Yes, sir. Please join us at the table.
Madam Chairwoman and members of the Council, my name is William Hollenbach. I am coordinator of the communications magnet at William Penn High School, and I've written to Councilwoman Clark. I won't read the letter, but if I would just highlight a few of the things that 120 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Greater Media has done for William Penn, in particular the communication magnet. Each year they donate a $1,000 scholarship to the outstanding communications students in the school. This year that went to a gentleman named Anwar Goins who is now attending the University of Pennsylvania who just recently contacted me expressing his gratitude for that contribution. Each year they provide annual internships for anywhere from two to four of our high school students. Most of the other large media outlet's in Philadelphia reserve their internships for college students, and this is a rare opportunity for our students to go down and work professionally or at least next to professionals in the field and get hands-on experience. A couple more of the more interesting things that they've done was one year on the Gary Cobb Show, which was a sports call-in show, two camera operators on that show were William Penn High School students. Our students also participate on a regular basis, on a monthly teen show which originates from Greater Media over a community access channel. Again, it is an opportunity to 121 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 appear on television for our students who otherwise produce their own closed-circuit television show, but to go out over the cable system in the City and be seen by a wider audience is a great opportunity for them and it certainly enables them when they go on to university communications programs to have a significant leg up on others. They provide trophies and dictionaries as award communications to our outstanding communications graduates each year, and that usually totals in the vicinity of three or $400, and that is on top of the thousand dollar scholarship. They host annual visits by our broadcasting students to their TV studio where a large number of those students then get the experience, the professional atmosphere and equipment which they are daily training on in our high school. They sponsor by providing cable experiences, some which of which they have brought out and done live on large screen video presentations in our school. They continue, again, to support students all throughout, not only the communication 122 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 magnet, but the high school in general. For these and other reasons which I won't go into now, I think they do a great job supporting our local North Philadelphia community and the larger community of the City of Philadelphia as well, and that we appreciate their efforts. CHAIRWOMAN CLARK: We thank you very much. I live within the William Penn neighborhood, and I'm aware of the outstanding work of that communications major. And I thank you for sending your kids out and giving them the kind of hands-on experience. Thank you, sir.
Good afternoon Councilwoman Clark and committee. My name is Brenda Maiden. I'm from James Elverson Middle School, 13th and Susquehanna, also in North Philadelphia. I just want to piggyback off of my colleagues, but I would like to say thank you to Greater Media Cable for giving us the opportunities of their wonderful educational programs. I'm here in support of our school, our 123 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 staff, the community, the students and all. We have been extremely supportive and beneficial and we would like to continue working with Greater Media Cable for our staff and parents and community. We utilize the services to support and enhance the School District of Philadelphia standards and the school's curriculum. The programs supports all disciplines, are multi-disciplinary and are an asset to the staff. Greater Media Cable provides valuable service and is a great resource for our entire school family. We need their services and are very grateful that we have the opportunity of their programs to support integration of the school's curriculum with quality educational programs. Our school family graciously thanks again for their continued support, and we hope that they can provide service for our school and other schools in that area. Thank you. CHAIRWOMAN CLARK: Thank you, Ms. Maiden. We are aware of the contribution of Elverson School, too. We thank you for your patience in waiting and for your eloquent statement.
Thank you. 124 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 CHAIRWOMAN CLARK: Good afternoon, sir. How are you?
Good afternoon, Councilwoman. I'm Donald White, W-h-i-t-e. I'm with the Special Olympics of Philadelphia. I have submitted a letter to you in support of the franchise renewal. I'm speaking in behalf of the over 4,000 mentally retarded citizens of Philadelphia County that we serve throughout the community and on behalf of the 10,000 volunteers that we go after each year to help us train these athletes in sports and competition. Greater Media has been strong a supporter of Special Olympics in its efforts to generate the funds that we need to fund our program. They have supported Celebrity Sports Auction. We also have out annual event each year, major event, our May Games which is held up at Northeast High School in our efforts to recruit over 4,000 volunteers. They have assisted us in an efforts to recruit the volunteers. They produced public service announcements for us. They've given us an opportunity to come into the studio and talk about the community and get the potential athletes 125 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 involved in this program. I look at Council Kenney who was at our Celebrity Sports Festival, Councilman Rizzo and yourself who have supported us over the years. But Greater Media has been a great friend of us. They've made financial donations to us, they've given us the opportunity to reach out to the community and let the message be known that we need community service opportunities for high school students for the community at large and for us to get that message out that if anyone is aware of a mentally challenged individual in their community, they ought to be involved in sports and training and competition, and we provide that service at no cost to anyone. And we thank Greater Media for giving us the opportunity to get that message across to the community at large. CHAIRWOMAN CLARK: Thank you, Mr. White. Thank you very much. Thank you for your patience. Please identify yourself to the record, spell your last name for the stenographer and proceed.
My name is Ray Mungro, M-u-n-g-r-o. I'm the placement director at Berean 126 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Institute, and we're located in North Philadelphia, that's 1901 West Girard Avenue. I'm here in support with Greater Media. And you do have our letters in reference to the support there for Greater Media. As well, I'm also on the committee. I work for the Department of Labor Compliance and Review for the federal government. I work with the federal government also for standards to make sure that EO standards are in compliance with major corporations and also companies. Every year basically 200 companies send me a letter in compliance to make sure that they are in compliance as far as federal and state guidelines in the federal government. We also have students that work with Greater Media Cable and hire through Greater Media Cable. Such companies that call me for assistance ICS and Local 98 for support for minorities for their companies and also for programs. And I've been doing that for the last three years. I also work with Greater Media Cable doing a program called Job Watch that's done twice a month, and we basically work in the area of employment and employment needs in the Delaware Valley area. 127 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Again, thank you, and thank you for your time. CHAIRWOMAN CLARK: Thank you for kind participation and for your letter. Yes, sir, how are you?
Fine, thank you. My name is George McCollough, M-c-C-o-l-l-o-u-g-h. I'm here as a member of the Philadelphia Community Access Coalition, a group of individual and community groups coming together for the interest of public access. I see this proposal as the City giving away property in this proposal. Originally, there were 11 access channels. And in this new agreement there's going to be 9. And I think that the City should project out into the future when there's going to be a universe of like 200 channels, and I think the City should keep the same percentage of channels for public use. I also want to applaud Greater Media cable for that four or five lucky interns that get to work at their studios and stuff. I think Council should know that if we had public access, every kid in Philadelphia that walked through the door would 128 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 have that same opportunity. Thank you very much.
My name is Deanna Mandres and I'm also a member of the Philadelphia Community Access Coalition. I'm also here to talk about public access, that portion that's addressed in this current proposal which only rolls over what is already in the original franchise agreement. The money that is rolled over was written in 1983 or '84, I don't think that amount of money is sufficient here in 1998, and actually it will be in the year 2000 to the year 2015 when that money is supposed to be utilized. And to keep that same amount seems kind of ridiculous to me. I also want to thank Councilman Nutter for bringing up the issue of public access during the discussion with Greater Media. But our main mission is to make sure public access is created and it was brought up during the discussion it's really up to Council, to you people, to see that that takes place. So I'm not here to specifically blame Greater Media for something that according to the agreement they have nothing to do with. So I want to really want urge you people to go forward and 129 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 make public access a reality. As George mentioned, if public access were created in Philadelphia, every individual in the City, children and people of all ages, would have the opportunity to have their own cable show and to learn technology that is especially valuable for young people. I recently visited the facility in Manhattan, and they have a beautiful new facility that was refurbished for them a couple of years ago. And while I was there there were lots of different groups that was taking advantage of the facility. In one of their editing suites were people from the AARP having their own show, American Association of Retired People. There was a group in one of the three studios that was performing a musical number. There was also talk of a program where people were teaching viewers how to use computer programs. So this resource that Philadelphia is not availing themselves of is something that is really a disservice and a disgrace to the City. It could also serve individual uses of counselors who would be able to talk to their constituents directly if they had their own show. And another thing that 130 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 during some of our discussions we've met some of you people privately, and one of the things that's always been brought up is the cost of funding public access. But what isn't brought up is that this resource could in some way save the City money. We can use it such a way that it can provide services for constituents that maybe are being provided in person that could be provided over video and over a television station. Another thing that I want to just address briefly is more about educational access. And one of the things that Greater Media mentioned about providing a modem per school in Philadelphia that will service 8 to 10 to 12 students. Well, basically that's just not enough. If you have schools with hundreds and even a couple of thousands of students, 10 people being able to avail themselves of one modem is not enough. And the last thing that I want to say is that our group has been around for a year, we're still here, we're not going away, so we really hope that you take this issue seriously because it's very important for the City. Thank you. CHAIRWOMAN CLARK: Thank you. Are 131 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 there other persons in the room who wish to be heard? There being none. Mr. Nutter.
Madam Chair, if I could just have the City officials back to the table for two information requests. What I'd like to request is of Mr. James and Mr. Costello, if you could provide us with a proposal on what it cost or what it would cost for the City operating budget as well as capital expenditure and any funds that we may be able to utilize that have already been provided by the cable companies for a complete build-out of an establishment of public access corporation. The second request is -- CHAIRWOMAN CLARK: I'm sorry, Mr. Nutter, I got distracted and I didn't hear you.
That the Public Property Department to give me a proposal on a complete build-out of costs operating and capital for public access corporation as well as any funds that are already available that can be utilized to fund such an entity. The second is of Ms. Lasota in the Law 132 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Department, if you could provide a draft of an ordinance related to public access corporation and what would be involved in establishing such a public access corporation and any information you have, historical data and the like, on the nature of its operation. You made reference to earlier some issues about first amendment and the like. If you have any commentary that goes along with that, I would greatly appreciate it. Lastly, is it my understanding, is the one Parkway building or 1515 Arch Street billed out for cable television? Is there cable television in that building?
Councilman, currently there is not cable television in the building. There are plans to provide cable TV to the residents of the building.
Right, the building was retrofitted and we did re-cable the interior to 133 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 provide cable access. We have designed it for locations for conference rooms and offices of executives to have public access. We just have not activated and brought it into the building yet, but our plans are to do that.
I believe the Greater Media, which is the operator that would cover that building is waiting for the approval from the permitting process and Borough of Highway Supervisors, from the other utilities so that they can --
So they've got to bring other wiring directly into the building?
Right. They have to connect the building to their service and they have to get the other utilities to approve the route.
I believe they've been in that process for some time. It's a matter of getting the other utilities to respond to their request.
All right. Thank 134 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 you. CHAIRWOMAN CLARK: Ms. Lasota, would you mind putting on this record exactly what the process is for setting up public access corporation and whose responsibility it is.
Councilwoman Clark, the franchise agreements for all four franchise areas, each of the existing franchise agreements as well for the Comcast areas that has been renewed and in the proposed renewal agreement for Area I and we have not yet addressed Area II, the Wade Time Warner franchise have the same language. The agreements provide that upon a determination by the City Council that public access shall go forward. And this is in the appendices of the agreement and it is also within the body of the agreement. I don't have the specific section reference. I can look it up for you in a couple of minutes. That the City Council as a political body would decide, yes, it wants public access. Once that decision is made, the City Council either itself or it would go to the Administration or to the Law Department, would ask that articles of incorporation for the public access corporation be drafted. Those articles of 135 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 incorporation would address various issues such as staffing, budget, operational costs, the board directors for the corporation, other related issues. I believe City Council could appoint some members for the board of directors, the Mayor, the Administration would appoint some members, there would be members of the public who would be permitted to be members of the board. They would be the individuals responsible for the day-to-day operations of the corporation. Once the bylaws are drafted, an ordinance would be introduce. The ordinance would have to be passed by the City Council. And the ordinance would presumably have a direction that pursuant to the terms of the franchise agreements, the funding obligations that are required under the franchise agreements from each of the franchisees be dispersed to the public access corporation. The money never comes to the City. Once that corporation is formed, that is the entity that is in charge of public access and that runs public access. And for some first amendment issues, the City would not have any control over the content of the programming that 136 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 goes on there. So it would be an entirely separate entity. CHAIRWOMAN CLARK: So the City's responsibility would begin and end with having the City Solicitor draft up and file incorporation papers for the public access corporation. And then the Mayor and the President of City Council or their designees would then select an equal number of members to the board. That then would be the beginning of a public access corporation. It would be an independent functioning body; is that correct?
That is correct. CHAIRWOMAN CLARK: To your knowledge, are there already articles of incorporation just waiting to be introduced? Have they been drawn up by the City Solicitor's Office.
My understanding and my records reflect that, yes, there are articles of incorporation. There were some changes in the Pennsylvania statutes regarding incorporation, and those articles were redrafted. They're approximately five, six years old at this point. CHAIRWOMAN CLARK: Now, when those funds which come from the franchise fee, they are 137 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 actually subtracted from the money that would have gone to the general fund; is that correct?
That is correct. CHAIRWOMAN CLARK: So to the degree that the City has not in, what, years? 7
Correct. 8 CHAIRWOMAN CLARK: Drafted and 9 incorporated a public access corporation, they have 10 then saved or not spent roughly $500,000 per 11 franchise, is that correct? 12
Correct. 13 CHAIRWOMAN CLARK: So that the City has 14 benefited. It's not like the money is sitting 15 somewhere with cobwebs. It is being used, isn't it?
Right. The money is a liability that the franchisees carry on their books that should the City decide they have to come up with the money, the money will have to be delivered. But if it is delivered, it is that much less money that would be available in the general fund because it would be deducted from the franchise fees which are paid entirely. CHAIRWOMAN CLARK: I'm not sure that everybody understands that. I think people think 138 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 it's extra money.
I'm sorry? CHAIRWOMAN CLARK: I'm not sure that everybody understands that. I think that people think it's extra money.
No, it is not extra money. And in fact, there are probably additional capital costs that the City would have to come up with to help fund the public access corporation. CHAIRWOMAN CLARK: Thank you. You wanted to be heard, Mr. Nutter?
Thank you, Councilwoman Clark. Ms. Lasota, I was not completely clear in your response to Councilwoman Clark about the initiation of the process. You described that somehow the Council would in this case agree that they wanted to have public access. What's the nature of that expressing that sense of agreement? Or is it just the introduction of and passage of a bill?
And what would be in 139 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 that bill?
Director of the communication Vince Costello can give you some historical perspective on this.
I guess all I'm trying to establish is there is some formal action that has to take place to start the process, and that action is a bill which has whatever the contents are of the bill the Councilwoman elicited from you that articles of incorporation have been drafted, they could be old, they could actually even with five or six years of dust on them they could in fact be accurate? May need updating, but they are what they are. And do they go in the bill?
Thank you, Madam Chair. I'll make it quick. Just one suggestion going back to the 140 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 issue of Greater Media, Department of Public Property trying to work through this process of dealing with the subcontractors and relative to residential participation, adequate minority participation. Sitting here listening to all this and it occurred to me one of the models that I think has been very good from a City perspective and its relation to private contractors, local and minority contractors, has been the installation of the new water meter system. It was a process that was undertaken, I guess still being undertaken by the water department in relationship with local contractors with adequate minority participation with specially negotiated rate that got the water department where they wanted to be while at the same time employing local residents at minority participation levels that were satisfactory to the community that it was representing. So I think a good model for what may be able to be arranged is something that happened with the water department, plumbers' union, and the private contractors in the Philadelphia area along with some of the minority firms that participated and continue to participate in the installation of those meters. 141 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 Thank you, Madam Chair. CHAIRWOMAN CLARK: I need to do a few housekeeping things. I need to read into the record that a large number of letters have been received. I will not read the letters except to say who they came from: Berean Institute, Norman K. Spencer; Sharon Franklin; Harold Hairston, Fire Commissioner; the Franklin Institute, Dennis Wint; Philadelphia Veterans, Edward J. Lowry; Hartranft School, Betty Jean Thompson; Skip Voluntad, Community and Police Interracial Task Force; Special Olympics, Donald White; School District Elverson School, Brenda Maiden; Gershmany Arts Council, Bonnie Squires; and William Penn Communications Magnet, William Hollenbach. These letters were in support of the renewal of the Greater Media franchise. With respect to the bill No. 980847, we are not going to report that bill out today. We're going to report it out on December the 10 at 8:30 in the morning. We would hope that in that intervening period that the parties would spend the time negotiating with each other to see whatever problems we're encountering today can be worked out. Is that understood by the parties and agreed to by the 142 COM. ON PUBLC PROPERTY & PUBLIC WORKS-980847 parties?
Yes. CHAIRWOMAN CLARK: So it is written, so it shall be done. I'll take a motion that we end this public hearing and go to public meeting.
So moved, Madam Chair. (Duly seconded.) - - - 143 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Tuesday, December 1, 1998 - - - Public Meeting conducted by the Committee on Public Property and Public Works, held in Room 401, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILLS 980531, 980783, 980831, 980847 - - - PRESENT: COUNCILMEMBER AUGUSTA CLARK, CHAIR COUNCILMEMBER JANIE BLACKWELL COUNCILMEMBER JAMES KENNEY COUNCILMMEMBER RICHARD T. MARIANO COUNCILMEMBER DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMEMBER FRANK RIZZO - - - 144 PUBLIC MEETING-980531, 980783, 980831, 980847 CHAIRWOMAN CLARK: The public meeting of the Committee on Public Works and Public Property is now in session.
Madam Chair, I move that Bill No. 980531 be reported out of this committee favorable, and request made for rules suspension to allow first reading at our next Council session. (Duly seconded.) CHAIRWOMAN CLARK: All in favor, say aye. MEMBERS: Aye. CHAIRWOMAN CLARK: Opposes? There being none, Bill No. 980531 has been reported out of the committee with a favorable recommendation and with a recommendation that the rules of Council be suspended so as to permit the first reading at the next stated meeting.
Bill 980783, Madam Chair, I move the adoption of the amendment as read into the record or handed up for Bill No. 980873. (Duly seconded.) CHAIRWOMAN CLARK: All in favor of the amendment? 145 PUBLIC MEETING-980531, 980783, 980831, 980847 MEMBERS: Aye. CHAIRWOMAN CLARK: Opposes? Okay, the amendment has been passed. Now the entire bill as amended.
Madam Chair, I move that Bill No. 980783 as amended be reported out of this committee with a favorable recommendation, and further recommendation that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.) CHAIRWOMAN CLARK: All in favor say aye. MEMBERS: Aye. CHAIRWOMAN CLARK: Opposes?
One oppose. CHAIRWOMAN CLARK: Let the record show that Mr. Kenney opposed. Bill No. 980783 has been reported out of this committee with a favorable recommendation with the recommendation that the rules of Council be suspended so as to permit first reading at our next stated meeting. Bill No. 980831, Mrs. Blackwell.
Madam Chair, I 146 PUBLIC MEETING-980531, 980783, 980831, 980847 move that Bill No. 980831 be reported out of committee with a favorable recommendation, and also for suspension of the rules so as to be considered at our next counsel. (Duly seconded.) CHAIRWOMAN CLARK: All in favor? MEMBERS: Aye. CHAIRWOMAN CLARK: Opposes? It has been reported out with a favorable recommendation, bill No. 980831. The last bill we have taken care of Bill 13 No. 980847 is being held for one week. We will further consider this bill on December the 10th at 8:30 in the morning. Any other further business for this committee? There being none, this committee is adjourned. Thank you very much. (Adjourned at 4:40 p.m.) - - - 147 C E R T F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of December 1, 1998, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE OF PUBLIC PROPERTY AND PUBLIC WORKS ___________________________ Lisa C. Bradley, RPR and Notary Public