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