Thank you very much for your testimony. Thank you, Madam Chair.
The number of drugs being sold is not down, is it, that you know about? I think that's the statement that you just made.
My statement is that I don't know that you can say that the number of drug sales has been down because I don't know whether or not drug dealers have resorted alternative methods to dispose of the drugs or sell the drugs. And I don't know whether you're in a position to say that drug usage is down in the City of Philadelphia. 2488 3/12/03 - FY '04 OPERATING BUDGET
Is the level arrested are down across the board in terms of different categories of crimes?
They kind of leveled off. I wouldn't say that they're dropping so much, but they've leveled off in most areas.
I think your question is whether or there has been a drop, for instance, in burglaries, a drop in robberies, a drop in car case; or are we just seeing more or less a drop in drug sales. I don't know if these figures that we have here break it down in terms of the categories of the crimes. My suspicions are --
I'd say that my suspicions are that you may have seen a drop in the number of people who are being arrested for possession of drugs. You may recall that former Police Commissioner Timoney came in, he had an initiative 2489 3/12/03 - FY '04 OPERATING BUDGET and he was talking about the quality of life crimes. And I think that his program was attempt to arrest as many buyers as well as sellers. I'd like to take a look -- and I don't know what the figures look like with regards to buyers and whether or not there's been a decrease in the number of buyers, because perhaps in the past -- I know at one time it seemed as though before Police Timoney's initiatives began, the police might look and arrest two buyers as opposed to when the initiative began arresting four or five buyers. So if you're now returning back to a system where you're just arresting maybe or buyers and not waiting around to arrest five more buyers before you arrest the seller, then that's certainly going to produce a decrease in the number of arrests and you're going to see that reflected MC. And I think that we are seeing a decrease in the MC case load. I don't have any specific figures myself. Court Administration may be able to give you figures as to what is the difference between the arrests of those people who are just being arrested for possession now as opposed to a year ago.
Have we achieved 2490 3/12/03 - FY '04 OPERATING BUDGET equity between your office and the DA?
Well we don't have any figures to compare because they don't allow access to their figures. I would have to guess that it's on average with our young attorneys fewer than 10 years experience it's probably a difference that range from 1,500 to $5,000 in what the district attorneys are paid and what our -- and that's probably a conservative figure.
Well, the average case load depends on -- because we have a zone system, it depends on what courtroom you're in. If you're doing preliminary hearings, it's probably 30 cases a day. If you're doing misdemeanor trials, it's probably 25. With felony waiver work we try to cap it at 8 a day. Major trials is probably 15 a month.
Those figures can 2491 3/12/03 - FY '04 OPERATING BUDGET fluctuate. I mean, there are times when you can actually have more than felony waiver cases listed 4 on any given day. There are times when we have more 5 than 25 misdemeanor trials listed in a courtroom on 6 a given day. And there are times we have had lawyers 7 that have walked into preliminary courtrooms with as 8 many 40 files that they had to be prepared to put a preliminary hearing on. And each of those files not only has to be prepared the night before, but once you return to the office you are required to write up a summary. So there is an awful lot of paperwork that these young people have to take care of.
Thank you very much. Are there any other questions for Defender Association? (No response.)
There being none, we thank you for coming in to testify.
Next we have the City's Representative's Office and the Department of 2492 3/12/03 - FY '04 OPERATING BUDGET Commerce. Good afternoon, Mr. Cuorato. Would you state your name for the record and begin your testimony?
Good afternoon, Councilwoman Tasco. Good afternoon Members of City Council. My name is James J. Cuorato, and I am City Representative and Director of Commerce for the City of Philadelphia. Seated with me at the table today is Duane Bumb, Deputy Director of Commerce. Also available today to answer questions are other representatives from our department, the Division of Aviation and our quasi public agencies, PIDC and PCDC. 2 million. Of the General Fund amount of $41,372,050, 77 percent or $31,995,000 consists of the Convention Center lease service fee. The 2493 3/12/03 - FY '04 OPERATING BUDGET remaining $9,377,050 consists of $4,631,250 in economic stimulus funds and $4,745,800 for basic department operations which will be carried out with three fewer staff than Fiscal Year 2003. I would like to briefly highlight a number of items from our 2004 budget and also certain projects and programs in which we have been engaged over the past year. I will begin with the Office of City Representative which, as you know, contains the Office of Arts and Culture and the Office of Ceremonial and Special Events. 5 million for the Philadelphia Cultural Fund. 75 million. 75 million figure is the highest in the Cultural Fund's history and the $250,000 was added during this Administration as a reflection of our commitment to supporting arts and cultural organizations. Utilizing a substantive review process, the Philadelphia Cultural Fund made grants during FY 2003 to 214 local arts d cultural institutions. 2494 3/12/03 - FY '04 OPERATING BUDGET Our office is also responsible for the Art Commission, Art in City Hall, and the Percent for Art Program. " This program is designed to encourage Philadelphia residents and visitors to attend more arts and cultural events citywide throughout the year. The program involves the publication of a calendar which catalogs and promotes all arts and cultural events in neighborhoods throughout the City. In 2002, we tripled our distribution of this calendar. Our Office of Ceremonial and Special Events plans and implements official City ceremonies. In addition, our office either produces or is involved in the production of a number of special events and tourism initiatives including the Philadelphia Holiday Festival, the Philadelphia College Festival, the City Hall Ball which funds the City Hall tour program, the Philadelphia Marathon, and the Book in the Cook. Our office is also responsible for coordinating public relations and City services for festivals and parades and for distribution of official City gifts, proclamations, tributes, and citations. 2495 3/12/03 - FY '04 OPERATING BUDGET Moving to Department of Commerce side of our office, we function as the coordinating entity for the City's economic development programs and initiatives. Commerce directly manages the Keystone Opportunity Zone Program, City's Neighborhood Economic Development programs including those funded through community development block grant contracts. Economic development related capital improvements, international business development, including the sister cities program and business services through the Mayor's Business Action Team. Commerce also contracts and works closely with the Philadelphia Industrial Development Corporation and Philadelphia Commercial Development Corporation on loan programs and other business services. In addition, the economic development arm of the Empowerment Zone and the newly designated Renewal Community is housed within our offices to better coordinate economic development efforts throughout the City. Regarding the CDBG portion of our budget, we are still in discussions with the Office of Housing and Community Development and the Mayor's Office concerning our economic development 2496 3/12/03 - FY '04 OPERATING BUDGET allocation for FY '04. We have agreed to reduce our administrative costs by percent across the board 4 at Commerce, PIDC, and PCDC.
Further reductions in 5 programs are still being discussed and we will be in 6 a position to present our final economic development 7 plan as part of the CDBG budget that is presented to 8 Council. 9 Some of the highlights of our activities 10 over the past year follows: The new stadiums in South Philadelphia are both under construction. Having Lincoln Financial Field has enable us to submit a very competitive and aggressive proposal to host the Army/Navy game during the years 2004 to 2008. A decision from the academies on where the game will be played during those years is expected by the end of this month. Residential development has continued at brisk pace. New projects have included Phoenix, the St. James, 2121 Market Street, and Dock Side. We are moving ahead with development plans for the old Byberry Hospital site in Northeast Philadelphia which has sat dormant for years. We have developed a master plan that has received community support. 2497 3/12/03 - FY '04 OPERATING BUDGET We continue to support expansion of our major healthcare and research institutions, including the ambitious billion dollar put forth by the University of Pennsylvania and Children's Hospital in West Philadelphia. Turning to retail development, we continue to foster an environment in which retailers can flourish both downtown and in our neighborhoods. Examples include Burlington Coat Factory which will replace JC Penney as an anchor department store at the Gallery, and the announcement by Ikea that they will construct a flagship store and anchor a major 600,000 square foot retail commercial project in South Philadelphia. 2 million per year in new tax revenues. I would point out that Ikea was heavily courted by New Jersey. However, we were able to work with the developer of this project and complete agreements for Ikea to build in Philadelphia. Although, he's not here today, I would also mention that Councilman DiCicco played a key role in helping us to secure 2498 3/12/03 - FY '04 OPERATING BUDGET Ikea for the City. A major new shopping complex will be developed on the site on the Whitman's Chocolate factory in Northeast Philadelphia. 8 million in new taxes for the City. I would also comment that Councilman O'Neill played a key role in helping us complete this transaction. A new Borders Flagship store has just opened at Broad and Chestnut Streets. Rittenhouse Row continues to thrive as the hottest retail area in the region with new shops and restaurants opening regularly. Goldman Properties Development of the 13th Street corridor in Center City continues to move forward. Development is about to begin on another major retail development at 23rd Street and Oregon Avenue South Philadelphia on the site of a former Defense Department facility. And finally, in November of last year, Philadelphia welcomed it's first Krispy Kreme location to Northeast Philadelphia. One of the 2499 3/12/03 - FY '04 OPERATING BUDGET fastest food chains in the country, Krispy Kreme is looking for additional locations in the City. We have also spent considerable time and resources in spurring economic development projects in our neighborhoods. Some examples include Avenue of the Arts North, which has become a major focal point for this Administration and has a number of projects at various stages. These include the renovation of the historic Blue Horizon, the expansion of the Pennsylvania Academy for the Fine Arts, the revitalization of Progress Plaza, and the development of a major entertainment center at 1600 North Broad Street to be developed by Craft Co. and Canyon Johnson. Our staff worked on a number of neighborhood projects throughout the City, including a new Flyers Skate Zone in the Northeast, the Draft on Cecil B. Moore Avenue, land acquisition in the Frankford, and the People for People development at 800 North Broad Street, just to name a few. All of these projects will help to revitalize and strengthen neighborhoods and create jobs for residents.
We also continued our highly successful 2500 3/12/03 - FY '04 OPERATING BUDGET marketing planning and community festival program. To date, this program has supported 67 community events and neighborhood planning efforts. By 5 utilizing a portion of our economic stimulus funds 6 and dispensing grants in small amounts with a 7 matching funds requirement, we have been able to 8 support these efforts in virtually every 9 neighborhood in the City. 10 We will also continue our unprecedented 11 outreach programs to businesses, both large and 12 small in an effort to help them grow in 13 Philadelphia. Within the next 60 days we will begin the next phase of our business outreach program. Under this program, our representatives visit businesses selected at random throughout the City. Our goal this year is to visit 300 to 400 businesses distributed proportionately throughout the City by council district. Our representatives bring with them a survey to asses each business' feelings about doing business in the City and assess their needs for continued growth in Philadelphia. We will also continue our Center City office retention program. We have compiled a list of approximately 60 businesses in Center City who 2501 3/12/03 - FY '04 OPERATING BUDGET employ more than 200 people and whose leases expire in the next five years. Peter Longstreth of PIDC, Paul Levy of the Center City District, and I visit each of these businesses to determine their future plans and hopefully convince them to stay and grow in Philadelphia. We have visited approximately half of the businesses on our list and will look to complete our visitations this year. We are also planning to extend the program to business in the 100 to 200 employee range. This program has been successful in identifying several companies who had been leaning towards moving out of Philadelphia and has given us an opportunity to keep them here in the City. All tolled, the businesses on our list account for approximately $100 million in City wage taxes. Briefly, other highlights from the past year have included our assistance to a number of small businesses who are Philadelphia institutions, including old original Bookbinders, I. Goldberg Army Navy Store, and Esposito's Meats in the Italian Market. And then perhaps the most significant economic development transaction of 2002, American 2502 3/12/03 - FY '04 OPERATING BUDGET business financial services announced that by mid-2003 it will relocate its headquarters and 750 employees from Bala Cynwyd to 234,000 square feet in Center City's Wannamaker building. This company was heavily targeted by New Jersey and the suburbs but chose Philadelphia as a result of a creative incentive package developed by the City. Touching briefly on several other areas of development in which we have been involved, I would note the following: We have worked closely with the newly formed Innovation Philadelphia in order to enhance the global innovation economy of Philadelphia by providing the resources to grow, attract, and retain human and investment capital. While it has only been operational for a little over a year, Innovation Philadelphia has achieved a number of accomplishments in setting Philadelphia on the course to become a leader in the knowledge economy sector. From the hospitality and tourism sector, we have continued our Philly's More Fun When You Sleep Over Program which is now in its second year. This highly successful program has been directly responsible for the booking of over 54,000 2503 3/12/03 - FY '04 OPERATING BUDGET additional room nights since its inception. Due in large part to this initiative, Philadelphia was named by travel magazine as the top city in the country from post-September 11th recovery in the hospitality industry. On the waterfront, which has received a great deal of attention lately, we are working diligently through a process to select a new development plan for Penns Landing.
We currently have a request for proposals that is being prepared and will be issued to seven qualified development teams. The process that we have undertaken contains an unprecedented amount of public participation through our special Penns Landing web site and numerous forums and community meetings. I am confident that we will select a quality development team that will bring us the right project for Penns Landing. I would also note that the delay of Penns Landing should not obscure the fact that tens of millions of dollars have been invested in a number of quality project, including the $75 million Dockside Apartment Complex; the Moushulu, which will stay on the Philadelphia waterfront and has move into the Penns Landing Marina with a reopening 2504 3/12/03 - FY '04 OPERATING BUDGET scheduled for May 1, 2003; and the complete demolition of the former incinerator at Delaware Avenue and Spring Garden Street, creating an attractive 8-acre development parcel at a key waterfront location. We will be devoting additional time and resources to the development along the Schuylkill River. This Administration and the Commonwealth of Pennsylvania have fully endorsed a master plan for the title Schuylkill which represents what could be the next great frontier for development in the City. The planning includes a mix of recreational and commercial development and will be highlighted y a riverside trail and park. This heretofore untapped resource will be used to its full advantage for the benefit of all Philadelphians. We will also be launching a major new student retention program called the Knowledge Industry Partnership which will be chaired by Dr. Judith Roden, the President of the University of Pennsylvania. This partnership includes our Department, business and tourism leaders, and representatives of the major academic institutions in our region. Working together, we will achieve 2505 3/12/03 - FY '04 OPERATING BUDGET the goal of keeping our best brightest young people here in Philadelphia to live and continue their careers. To complete my testimony, I will just briefly summarize activities at the airport. I am pleased to report that during calendar year 2002, passenger traffic rebounded more quickly at our airport than in the nation as a whole. 6 percent during this period, our airport experienced a percent increase. million international passengers. Other major developments at the airport over the last year have included the near completion of the new International Terminal which will open next month, a $20 million expansion of Terminal D, a new $53 million aircraft de-icing station, a new $10 million aircraft rescue and fire-fighting training facility and two new garages which have added 5,000 additional spaces at the airport. We are also in the midst of a comprehensive master plan study that will identify facility improvement needs for the next 20 years. 2506 3/12/03 - FY '04 OPERATING BUDGET This master plan will focus on new runway configurations which will greatly increase our airline capacity and enable us to continue to grow this great regional asset. This concludes my testimony. I would like to take this opportunity to thank all of the members of City Council for their support for our activities over the past year. And myself and the staffs of the Division of Aviation and our development agencies are available to answer any questions that you may have. Thank you very much.
Thank you, Mr. Cuorato. The Chair recognizes Councilwoman Brown.
Thank you, Madam President. Good morning, Commerce Director and to your team. Let me start out first by saying congratulations to the Commerce Department and your Division of Aviation for the extraordinary showcasing of both fine and performing artists out at the airport. It's a nice way embrace tourists who come to the City and a welcome surprise for someone like me who lives here and was not aware of 2507 3/12/03 - FY '04 OPERATING BUDGET that wonderful addition, so it's definitely something that should continue. We know that the arts are thriving in Philadelphia and Philadelphia thrives because of the arts. And we also know that there's been substantial increase in the cultural fund. That's the good news. The bad news is that there are many more new and emerging organizations that are getting support from the cultural fund and because of that the per organization cost has dropped. Based on my homework, in FY '02, the number was 8929 per organization. And now with the support of the Commerce Department funding so many more organizations, that cost has dropped to 7980. So you should know because of that reality, I plan on introducing a budget amendment and hope to work closely with both the Administration and my colleagues who sit on the cultural fund board to come up with a number I hope will be both reasonable and responsible, given the City's budget dilemma that hopefully will achieve two things: One, provide a cost of living increase for those organizations; and two, move us back to FY '02 level of funding. So I share that with you as an FY I 2508 3/12/03 - FY '04 OPERATING BUDGET knowing that at a later hour I will doing that. Secondly, with regards to NTI and PCDC and the work that the Philadelphia Commercial Development Corporation is doing in the neighborhoods, can you or a member of your team speak to how NTI -- we know the dramatic impact it's having on the residential side. I'm curious to know how the neighborhood corridors are being integrated into the NTI initiative. Could you or a member of your team speak to that?
Yes, Councilwoman. I'll ask Curtis Jones to come up here. And while he's coming up, let me just make two comments on your first point. One is to thank you for your support for all that we do in the Office of Arts and Culture and we appreciate your support. Certainly, from a budget standpoint, as with virtually every area of my budget, I'd like to be able to do more. We're trying to do the best we can with resources and stay within the guidelines that we're given. And also, I cannot let the comment about the airport go without acknowledging the wonderful job that Charlie Isdell does in every facet of airport operations. And you mentioned the arts program. I don't think it is an 2509 3/12/03 - FY '04 OPERATING BUDGET overstatement to say that we have the finest arts program that any airport in the country has. And it really has generated so much interest and so much positive publicity for us. It is not a place that you would traditionally find the types of exhibits that Charlie and his team display there, and it's just another touch that makes our airport special.
Yes. It's extraordinary. And I couch my interest in the budget amendment, I couch it with the words "reasonable and responsible," because I'm well aware of the directives that you're receiving from the Administration. But to the extent we can bring this world, the arts an cultural world, up to where we used to be, that would be great.
Chairman Verna and Councilwoman Brown, thank you all for that question. When it comes to NTI, as you are aware, we're in the first phases of that which have been resulting in a number of clean-ups, a number of demolitions, and that process moving along. What I think also is happening is there are major plans for housing development in place of those vacant lots. What we are hoping to do is meet the development ahead of 2510 3/12/03 - FY '04 OPERATING BUDGET the curve and be on the commercial corridors that are directly impacted by that new construction and rehabilitation so that we can bring existing residents and possibly new residents a good mix of business-related services so that the quality of life can be enjoyed.
Absolutely. So what we're doing IS we have a voting membership on the Vacant Property Review Committee, as you're aware, Councilman Goode. We are trying to make sure that a lot of those properties that get picked up by the City of Philadelphia are at least landbanked and with future development purposes in mind so that at the time that commercial development catches up with housing and residential development, we're able to offer small businesses an opportunity to take advantage of some of that prosperity.
Regarding the dramatic change in shift or the impact the development of that Market Street El is going to have on 52nd Street and what that means for all of those businesses on that corridor -- and the District Councilperson Councilwoman Jannie Blackwell 2511 3/12/03 - FY '04 OPERATING BUDGET is intimately involved with that, but given the mission of PCDC and given that particular corridor, what is your prognosis? Has SEPTA approached your agency to be a part of those discussions to help those businesses there so that they're not sacrificed at the risk of making that technological transportation improvement?
The impact of the construction has been dramatic, I mean, pedestrian traffic, vehicular traffic has been impacted by it. What we've attempted to do in our small way is to work with the businesses along with SEPTA consultants to try to work with them. We've also down promotional campaigns by which SEPTA has also contributed a portion of funds to that to try to encourage shoppers, for example, Spend the Holidays in Your Neighborhood Campaign, to come into those areas through receiving discounts and other encouragements to actually shop in neighborhoods as opposed to going to malls and other locations to spend their dollars. That has been successful, and we are going continue that effort throughout the construction period.
Is the City through 2512 3/12/03 - FY '04 OPERATING BUDGET your agency a partner in that advertising initiative?
Absolutely. As a matter of fact, historically, we were probably initiators of that initiative some years ago and now have 7 sought out partners. Public Utility Commission has 8 been a partner, SEPTA has been a partner. Trying to 9 encourage the consumer to think "shopping in your 10 neighborhood" and how important that is to maintaining viability along those corridors.
Well, there's a lot of interest on SEPTA specifically and the businesses and how those worlds are colliding and what we as a City have to do to the extent possible keep them thriving and surviving, if you will. The thriving quotient has dropped dramatically, but there's an interest now to help them survive through this major transportation phase. So I'm pleased to hear that PCDC is at least the table with SEPTA to play a role in assisting those agencies on those business corridor. My final question goes back to arts and culture and the role of arts and culture with the NTI initiative. I know Pittsburgh has a wonderful 2513 3/12/03 - FY '04 OPERATING BUDGET model where artists -- and actually, Philadelphia. PhilaDanco is probably one of the first arts institutions in the City to work with the City, take blighted residences, convert them into artist housing and bring life back to a block. Is that discussion happening at the NTI table on how we can more intimately involve the arts and culture community around NTI?
Councilwoman, let me ask my Deputy City Representative for arts and culture to respond to that for you, Carol Lawrence.
Thank you. Please state your name again for the record.
Good afternoon, Councilwoman Brown. Yes, we have been at the table with the NTI to discuss different opportunities for the arts and cultural community to be involved in those conversations, especially artist housing. And as the conversation proceed with the NTI Committee, especially under Maxine Griffith, we are involved in neighborhood outreach programs. So we are at the table to discuss with the community as well as with the planning programs to figure out what we can do. So it's in the planning stages at this point. 2514 3/12/03 - FY '04 OPERATING BUDGET
So we don't have a document, a strategic plan of sorts that will guide us on how arts or artist housing is included in the NTI initiative? MS LAWRENCE: My understanding is we will be moving in that direction. We have not reached that point yet. But there is a plan to create a plan in the future to address those needs.
Have we had any discussion with the arts and cultural advocacy community? Have they approached you to register that this is a good thing and something that needs to be included in the NTI discussions?
Well, we'll look forward to the written document because my colleague here Councilman Goode reminds me that Frankford also is allowing artists to make a difference around NTI and community development. So we'll look to see how we can do that system-wide citywide.
We will. And I think it is important to acknowledge that within the entire City, every community with artist base, they are very interested in elaborating on a plan. So we 2515 3/12/03 - FY '04 OPERATING BUDGET will work very closely with the Planning Commission and NTI.
And we will keep your office apprised of your developments in that regard, Councilwoman.
Thank you for your testimony, Commerce Director. Thank you, Madam Chair.
You're welcome. The Chair recognizes Councilman Goode.
Let me start by thanking the Commerce Department and PIDC and PCDC for their continued support of my legislative initiative and implementation of those initiatives and you in particular for your consistent support. And, of course, I have numerous requests to your department because this is my area of special 2516 3/12/03 - FY '04 OPERATING BUDGET interest and so I just want to go through a number of additional requests. First, as relates to the Community Capital Works Program, can you tell me what is projected allocation to that program in the next Fiscal Year?
Councilman, I believe the request that it come to us was for $300,000, if I'm not mistaken. Perhaps you can correct me if I'm wrong.
I thought the request that had come to us was for $300,000 and we were looking to see if we could rather than provide that out of community development block grant funds, provide that in-kind services, basically services that our staffs would prove because the CDBG budget is so tight.
Actually, I'm referring to Philadelphia Partnerships Program, Community Capital Works.
I'm sorry. Let's start over. The program that you were referring to is? 2517 3/12/03 - FY '04 OPERATING BUDGET
Community Capital Works. The micro entrepreneurship program housed at the Philadelphia Development Partnership.
I'm sorry. $250,000. I was confusing the two programs. The answer to your question is $250,000.
There has not -- I shouldn't say that. I believe they did ask for more money, but we told them given funding levels throughout our budget we were more than likely would have to just keep them at the current level of $250,000.
Because this program is actually a self-employment program, have you considered seeking Workforce Development funds for the program or utilizing Workforce Development programs for a portion of the funding?
I don't know if -- that request has not come from us. I don't know if it's come from PDP, but it's certainly an avenue that we can explore.
I think actual 2518 3/12/03 - FY '04 OPERATING BUDGET service providers get used to the same source of funding. I think it's something that should be suggested to them in terms of -- particularly if they're seeking an increase. But I'm thinking specifically about the work that they're doing particularly with ex-offenders and the fact that the Mayor has embraced economic development initiatives for ex-offenders trying to reduce prison recidivism and the fact that the Mayor has actually identified economic development dollars through Workforce Development dollars for that type of development. So I was thinking maybe it's something we should suggest to them in a way that we can get some funding to that program and actually fulfill some of the Mayor's recent commitments in an that regard.
Agreed. And we will reach out to Workforce Development Corporation along those lines.
Okay, now I can give you the answer that I gave you previously, which is the request had been for $300,000. And we were looking to see if we could provide the services, basically 2519 3/12/03 - FY '04 OPERATING BUDGET in-kind services, in lieu of actual dollars because our CDBG funding is so tight. If all of that doesn't work, there's a possibility we may be able to do a portion of in-kind and a portion of cash. But we will, either way, try to reach that $300,000 mark.
I know in the past -- I guess in this year, Year 28, OHCD was actually funding LISC to do both housing and economic development in terms of capacity of building for community development corporations. Do you know if they plan on continuing funding directly?
Can you sort of find out whether that's something that could be split? I know it's the same pot of money in terms of community development block grant, but what they're planning on doing?
And lastly, what's the status of the acquisition grant program at PCDC? My understand from several community development corporations that are involved in Commerce 2520 3/12/03 - FY '04 OPERATING BUDGET Department's Program and the CDC Tax Credit Program that has been frozen, can you tell me why it's been frozen?
Councilman, any additional money that would have to get added from that program, I believe, would have to come from our economic stimulus program, and that's the request that we're reviewing right now because there are no 13 other CDBG dollars that are available. So we're looking to see if we can fund that program additionally through our economic stimulus program.
That wouldn't fall into -- I know through legislation passed by this Council that's being implemented by OHCD, there is a mandate of at least 5 percent of all CDBG dollars be spent on community development by community development corporations. That wouldn't fall within that 5 percent?
I believe it would. But I don't think the 5 percent amount is an issue. I think it's dollar availability is what I think the 2521 3/12/03 - FY '04 OPERATING BUDGET issue is.
Well, my understanding is percent is roughly $4 million and 5 this is a program that has a hundred thousand or 2 within it.
But the 5 percent covers all economic development activities, not just PCDC's acquisition program.
I understand that. I'm just assuming there's probably room there, given the nature that there's $4 million being spent by a number of different programs, I would just think that that program wouldn't be eliminated; there are other programs that probably can be reduced to make room for that program. And I actually believe that the CDC community will probably rather prioritize that program before some of the other funding that it receives from the community development block grant program.
I think you're right. And we are going to take a look at Year 29 as to how we allocate our economic development funds because I think we can allocate them and get more money to programs that are working better at the neighborhood 2522 3/12/03 - FY '04 OPERATING BUDGET and CDC level as opposed to putting further funds into some programs that are not being used as efficiently or in as great a volume as we'd like.
One of the things I have impressed upon the CDC community is that now that it has the 5 percent mandate, now that we have a CDC tax credit program, now that we have consistent funding over the next years that 10 amounts to probably $50 million investment or more, that they come up with some industry standards that they decide how they're going to evaluate their own performance and that they make suggestions for how we spend that 5 percent. And I think they probably would rank that acquisition grant program as a priority in terms of what they're looking to do in terms of redevelopment of commercial corridors.
Thank you. At this time the Chair recognizes Councilman Nutter. 2523 3/12/03 - FY '04 OPERATING BUDGET
Thank you, Madam Chair. Mr. Cuorato, I just two issues that I want to raise with you. One is, you mention in your testimony about a development project. And I just received a letter recently from one of our unions, Local 1776, of the testimony regarding the issue of Wal-Mart. I have no personal issue with that particular company, but they have apparently attracted the attention over some time, not just recently, of Local 1776 here in Philadelphia. And I just wanted to know what the Administration's view was on the Wal-Mart situation and their apparent conflict with unions?
Well, as with any dispute involving a major employer and unions of the City, I hope that it can be resolved.
I think their corporate philosophy is that they're anti-union. So I don't know that the City of Philadelphia is going to change their philosophy. It's kind of a big company.
Understood, Councilman. I guess the reference in my testimony is to the 2524 3/12/03 - FY '04 OPERATING BUDGET project in Northeast Philadelphia, the Whitman's Chocolate factory.
Although I think Wal-Mart was not mentioned at that time.
I thought there were, since they and Barnes and Noble are supposed to be the two anchors.
It is unfortunate. I don't think we want to be in a position of discouraging the expansion of stores like Wal-Mart in Philadelphia. They are huge job generators, and I don't think we want to be in a situation where we're discouraging them from coming in.
I understand that and I'm not suggesting that. What I'm trying to figure out is, what's the -- how do we balance the interest of -- I mean, we are obviously a very supportive government of unions here in Philadelphia at a variety of levels. And o I'm just trying to 2525 3/12/03 - FY '04 OPERATING BUDGET figure out from a policy standpoint how we deal with this kind of issue. I mean, it's not some like Joe and Jane store on the corner. This is an a massive national, possibly international corporate entity that has that particular corporate philosophy, and we have many citizens in the City who are members of Local 1776 and who are expressing concern. I mean, I've receiving letters. So I'm just trying to figure out what the City's posture is in that kind of situation.
Councilman, I don't know what we as a City can do. I mean, a corporation like Wal-Mart will look at a situation in Philadelphia, assess how much of a problem they foresee in employing people and how they're going to react with the unions and make a decision as to whether they're going to build further stores in the City of Philadelphia. For the Whitman site, there is no 21 financial assistance being provided. The only approvals that were requested and received through City Council and the City were for zoning changes. So it is, for all intents and purposes, it is now a private development on a site that is now zoned in 2526 3/12/03 - FY '04 OPERATING BUDGET accordance with what's being planned there.
I understand that, but we're always going to be free and open and honest with each other. I mean, if not for the action of the government, the development doesn't happen, right?
No money on the table, doesn't seem like a big thing, but sometimes getting a bill passed by Council is actually somewhat significant.
And in this case it certainly was because without the zoning change, that project doesn't happen; you're correct.
Okay. Just thought I'd ask. I need to respond to the letter that was sent to me recently, so I figured I'd ask you. Let's talk about Keystone Opportunity Improvement Zones. It's my understanding that State Statute was passed not too long ago allowing for expansion of Keystone Opportunity Zones and I think a new program Keystone Opportunity Improvement Zone, which the City is required to, and Council and the Mayor specifically are required to pass an 2527 3/12/03 - FY '04 OPERATING BUDGET ordinance authorizing the establishment of these zones. It is my understanding that there is actually a deadline by which this action must be taken. And I would only express to you concern, this year will by its own force of events be a fairly busy and active year for a variety of reasons, and I want to make sure that we meet the statutory deadline. But I'd also like to get out on the record, to the extent that you can share information about the areas that we may be looking at for these new zones and any planned or perspective projects that may be affected by having these zones in place or that may benefit from having these zones in place, to give some context to the importance of this legislation, because I think it does actually involve some live projects. Could you share that with us for the record?
Sure, Councilman. Just before the end of 2002, acting on legislation that was approved by the General Assembly in Harrisburg, Governor Schweiker had the ability to authorize a new set of zones called Keystone Opportunity Improvement Zones or KOIZs, as we call them. These are add-ons to existing KOZs and KOEZs, so we're 2528 3/12/03 - FY '04 OPERATING BUDGET going to keep going until we exhaust every vowel.
Right, and then you start doubling back and do the double A and double B.
Yes. The Governor designated three new Keystone Opportunity Improvement Zones. These provide -- and again, these opportunity zones are areas in which businesses that move in pay no city or state business taxes for a period of years. The advantage of the Keystone Opportunity Improvement Zones, the new ones, are that they get a fresh 15-year clock starting in the year 2004. It is a tremendous incentive. This program overall has been a tremendous incentive to bring businesses into Philadelphia, and we've got examples both large and small. The three new areas that were designated by the Governor in Philadelphia are 300 acres at the Philadelphia Naval Business Center, a site up in Northeast Philadelphia that was specifically tailored for us to bring in the Vanguard Company. That's a company that we've wanted to bring into Philadelphia for a long period of time. And a 2529 3/12/03 - FY '04 OPERATING BUDGET cluster of properties in West Philadelphia generally around the area of the University of Pennsylvania and Drexel and 30th Street Station. Those three areas have been designated by the Governor as Keystone Opportunity Improvement Zones. However, they must now be approved by this Council. And then following -- if Council approves that legislation, it must be filed with the State by no later than June 1st of this year. So that's the deadline to which you were referring, and we will meet that deadline.
Well, let's talk about a timetable. But also when you mentioned the site out in West Philadelphia similar to specific mention being made of Vanguard at a potential site in the northeast. It's my understanding that, for instance, the Sera Center building proposed to literally be placed right across the street from 30th Street Station, I've seen some of the drawings and materials for that particular building, it seems like it represents an incredible new opportunity, not only for a high-rise office building but tremendous access to the train system, the expressway and bringing a new high-tech office 2530 3/12/03 - FY '04 OPERATING BUDGET building to West Philadelphia on the west side of the Schuylkill River. It seems to me that given a number of projects including, certainly, the Sera Center, the importance of getting the KOIZ legislation passed is important and unless there are some significant complications or additions -- and I have at least one addition that I'd like to propose to you -- can you give us a sense of when the legislation will be coming over to City Council?
Councilman, I will answer that question for you in just a second. Let me just add that the legislation that we will be bringing to you will not only include a recommendation for approval of these three new Keystone Opportunity Improvement Zones, but the state legislation also gives us the ability to add to existing KOZs and KOEZs. It's a great opportunity for us now to come back and pick up some properties that we either missed the first round or where circumstances have changed and now it would definitely be a great benefit to have them in a zone. And the first example that comes to my mind I believe is in your district which is the Bud Company.
That's what I was 2531 3/12/03 - FY '04 OPERATING BUDGET going to suggest to you.
Which unfortunately is moving out but that property which is nearly 50 acres is going to need the kind of incentive that the Keystone Opportunity Zones to bring. To answer your question, we have to have our application filed with the state by June 1st. I would hope that we would have legislation ready to be introduced into City Council within the next three weeks. That would give us virtually all of April and all of May to have the process discussed and hopefully approved.
Thank you. Councilwoman Miller has a point of information.
I just have a further question about the KOEZ. What is KOEZ? What is the "E" for?
The "E" stands for expansion. The State Legislature in Harrisburg actually has acted on these zones three times. The 2532 3/12/03 - FY '04 OPERATING BUDGET first time was the original program called Keystone Opportunity Zones. Then they came back and did a second round called Keystone Opportunity Expansion Zones. And we did the first round and then the 6 second round we added 8, so we now have 20. This 7 final round gives us the ability to add three new 8 areas. Those are KOIZs. And I know this gets 9 confusing. And also add properties to exist KOZs 10 and KOEZs as long as they are contiguous to existing 11 zones. In other words, we couldn't just go to an 12 area of the City that is not designated and pull a property out and designate it now.
Well, that's exactly what I wanted to find out because I do know about the legislation, but I just never heard the term "KOE." Maybe I missed it. Because I was interested in finding out if we could in fact expand the zone that's in my district, but it's not contiguous to the one that already exists.
We can take a look at it, Councilwoman. Vince Dougherty of my staff who manages the Keystone Opportunity Zone program, we can talk to you about the property or if there are any other properties in your district that you think 2533 3/12/03 - FY '04 OPERATING BUDGET might fit the criteria that we might have. And if there's a way we can do it, we'd be glad to.
Excuse me. If you don't mind, at this time the stenographer is asking for a five minute break. Thank you. (Brief recess.)
We can now proceed with the hearing. Councilman Nutter, you were questioning Mr. Cuorato.
Yes. Mr. Cuorato, that you anticipate having legislation for KOIZ over in about three weeks. A quick look at the calendar would indicate that that would have you sending legislation over in anticipation of the April 3rd Council Session. Do you think you can use that as a deadline, including having conversations with Councilmembers if they want to have expansions of existing empowerment zones or other projects? That's three weeks from tomorrow.
And I appreciate that. And along with that, do you think we could 2534 3/12/03 - FY '04 OPERATING BUDGET then use as a goal basically the month of April to get the legislation completed? I'm going to make the -- this is the kind of thing that -- I mean, it's a good thing all away around. If we spend the time during the next three weeks getting the legislation ready, the hearing should be pretty much a fairly smooth process. We have a public hearing scheduled relatively soon, get a first reading, get final passage. The last Thursday in April is April 24th, and that's another three weeks in the course of April. Do you think that's a timetable that we might be able to meet?
I deeply appreciate it because, certain, I think all of us care about this. And the opportunity to provide these economic incentives and benefits as quickly as possible meet the state deadline even, quite honestly, a little early, would certainly demonstrate to the State our enthusiasm about the program and that we're ready to go and trying to get something done.
Thank you. Thank you Mr. Cuorato. 2535 3/12/03 - FY '04 OPERATING BUDGET Thank you, Madam Chair.
You're welcome. The Chair recognizes Councilwoman Tasco.
First, before I begin I'd like to say that enjoy working with Eleanor Hider (ph).
Actually, she's down in your office right now meeting with your staff.
She's been very supportive, very helpful, and very thorough.
Especially with our Rising Sun Avenue Project. We appreciate her very much and the hard work she does.
I have a couple of questions. But first, I want to talk about an issue that's in my district now that's really causing us some real problems. We found out that the Mayor's 2536 3/12/03 - FY '04 OPERATING BUDGET Business Action Team had assisted a company to operate at Seventh and Grange in a residential area, an industrial factory which has caused and is still causing me agida. The lack of enforcement by L&I to get to cease and desist. It took us numerous community meetings to address many of the problems that were raised. They tore away shrubbery and land and just weren't very cooperative with the community, very hostile to the community. We had to go to court. And the Zoning Board has granted them the okay to still operate there. And it is still causing the community a lot problems. A lady called the other day; she couldn't get out of her house because the trucks blocked the drive. And these are issues that we raised on the zoning hearing, issues we raised on the court case. But my concern is that before any activity goes on in a council district, certainly we ought to be made aware of what's happening. No one from the Mayor's Business Action Center contact us to let us know they were working with the business to go on that site. And the other question I want to know, is there any effort in their research or support of a business going into a community, do they check to 2537 3/12/03 - FY '04 OPERATING BUDGET see if the company has any prior code violations? Because this company certainly had a number of those violations and it really has been very, very -- and they're up in arms about it. We met with this gentleman here to talk to him about. Do you have any update?
That's Vince Dougherty, Director of the Mayor's Business Action Team. Councilwoman, we will go back and check to see if there are any violations that are currently pending at this time. We were not aware that they were causing such problems in the neighborhood, quite frankly. I know they employ about 150 people, and I mean --
Listen, they may employ 150 people and that's fine and we want encourage business to come into the community. But an industrial site in a residential community should not exist. And we don't know yet what they're doing. And these tractor trailers -- first you have to see if the market can bear what they're planning to do. Never can figure out what they're doing. Commerce Department, you all know. MBEC knows exactly who they are and what they're doing. And 2538 3/12/03 - FY '04 OPERATING BUDGET what we need is some effort on behalf of your office to go talk to those people, find out exactly what they're doing, what their plans are and report that back to us, because we can't a clear answer. The residents are ready to go to court. They're going to appeal the zoning variance. And what you ought to do is try and find them another site. That's what you need to do because it does not belong at Seventh and Grange. Seventh and Grange is a residential site. And the people enjoyed having the greenery in the back of their yards. They tore that up. And now they're just causing all kinds of problems. I had a lady the other day who refused to sign my petition because she just said, "That factory." And so they don't know that I don't have any responsibility for that factory, that it comes from the Administration. And I want the Administration to do something about it. I want to action taken on it. I want you all to go over and talk to those people and I want you to try and find them another site. They have to go. Otherwise we'll be out there demonstrating, and it's not the time to do that. 2539 3/12/03 - FY '04 OPERATING BUDGET
We will talk to them, Councilwoman, and we will report back to you.
The other issue I want to talk about is the neighborhood commercial revitalization corridors. Mr. Jones. He said that have he would -- I'm looking upper end of Ogontz Avenue from Walnut Lane up to Cheltenham because that Ogontz Avenue is the gateway to the City from Montgomery County. Montgomery County is doing a lot of economic development on their side of the street, and we look very, very shabby. In addition to Ogontz Avenue which we've been having problems with for the last five or six years just trying to figure out when they're going to pave that street. And papers have for the three days had articles in the newspaper about the potholes on Ogontz Avenue and the terrible condition. But we want that area declared a Neighborhood Commercial Revitalization Area. And I asked about this. I keep asking about it. I get told that it's based on the census numbers. Well, I said, there are new census numbers. "Well, we don't have the detail." I think somebody must have the details on the census numbers. 2540 3/12/03 - FY '04 OPERATING BUDGET I will tell you until I met Eleanore, I just got nothing but the run-around in the Commerce Department. It's very frustrating when you're trying to do something for the citizens, not just my constituents, but the constituents who are the Mayor's constituents, for them to feel left out and not included in what's going on in this City. So I want to know what we're going to do about Ogontz Avenue in terms of declaring that a Neighborhood Revitalization Area so we can get some of the amenities that come along with that designation and help those businesses up there. I'm inundated with clubs that are opening. You can't get L&I to enforce the club opening in a residential neighborhood without the proper licenses. You have bars up there where you have drugs, you have take-outs. And it's just very frustrating for those people who live around there in that district.
Councilwoman, we will absolutely assign a corridor manager to Ogontz Avenue upper end. As you know, historically we've done some things with Ogontz Avenue Revitalization Corporation with the mall awhile ago. But we will revise that. And whether the numbers of the census 2541 3/12/03 - FY '04 OPERATING BUDGET dictate or not, we will have an involvement with that corridor and with that business association trying to work on a revitalization plan.
The ORC, the upper half is not a part of the Ogontz revitalization. We have another group that is responsible for that area. Not that we don't work with ORC and we've talked to ORC about that. I just want some action. People up there vote the highest rate in the City. They also work and they pay taxes. They ought to be able to get something for the money they invest into City. We shouldn't see the money going into all other neighborhoods and we can't get a small dose of return. We want some economic stimulus money for that area. I want some action Ogontz Avenue. I want some action on Vernon Road. We're working on Rising Sun, and I'm very appreciative to the young lady and Jim for assigning us working with Mark Ohouski up there on Rising Sun Avenue. Because that's the neighborhood, where unlike the neighborhoods, the businesses are moving and we have vacancies. In the other corridors, the business has just changed ethnic groups, this area and Rising 2542 3/12/03 - FY '04 OPERATING BUDGET Sun, so they have a plan and they're working that plan. But Ogontz, I've been talking about this I think ever since I became a Councilperson. We have stimulus dollars. We have other kinds of dollars. And we're not asking for a lot of money. We put a budget in, we've given it to the Mayor, and we want to see some results.
The good news is that we've been working with non-CDBG dollars to find a source of dollars that we could actually apply to corridors outside of the low and moderate-income designation. Congressman Fattah has worked with the American Cities Foundation raise some of those dollars. And we just were written in to the budget to be able to do some beautification, do some of the traditional things we do in low and moderate-income areas. So, again, my commitment to you is that we will indeed work with the upper end of Ogontz Avenue like we've done with the lower end to try to come up with a plan that businesses there, the business association there can live with and we work together on it. That is my commitment to you.
Now, you know that 2543 3/12/03 - FY '04 OPERATING BUDGET is the Congressman's district.
We do exist in the Northwest. It may not be West Philadelphia, but we still vote pretty high up there. MR JONES: Highest numbers in the City, 50th Ward, yes, ma'am.
Thank you very much. The other thing, I want to make a point. And I think we've talked about this before. In other cities -- you know, I'm very active with the National League of Cities. In other cities, community development block grant dollars are used for the elimination of blight and slums. And so we don't use that here in the City that way. We target and we say that the dollars are targeted to those areas come in some kind of economic guidelines based on the census track. They have built golf courses with this money in Tennessee. And they have built boat marinas in other cities. And when I talk to Congressman Fattah, he said that is not true; that the money can go outside of areas that don't have low-income designations. So I just thing we are 2544 3/12/03 - FY '04 OPERATING BUDGET misinterpreting or interpreting the laws based on our convenience or the convenience of certain parts of the City. And my constituents are asking what are they getting for their vote and for their tax dollars. There is an issue I want to raise on -34 of your budget. And this comes under the airport, because I have a couple questions for the airport. I know we require lobbying in Washington and Harrisburg. That is certainly necessary. I'm not asking about that issue. I'm asking about the 2004 appropriations. You go from $50,000 in 2002 to $200,000 in 2004, $200,000 for other lobbying services. What is that for? Also, why don't you address all of those areas? You have $100,000 -- you go from $25,000 in 2002 to $100,000 in bankruptcy proceeding. And then you go for Pepper Hamilton, 2003 you were up $192,500 in 2002. And in 2003 you had $10,000, but now you go to $150,000. So your budget has increased from 2002 to 2004, $710,000 from $320,000. What is the cause for the increase?
Councilwoman, I'm going to 2545 3/12/03 - FY '04 OPERATING BUDGET ask a little help from the Budget Officer, if I may, just for one second. He's right back here.
I apologize for the delay. If you want to go down that list that you did one item at a time, the first one, of course, there is no increase in the Washington lobbying services from 150 to 150.
The first one that's an increase is the 50 to 200,000. We had simply -- we were budgeting for what we anticipate will be additional needs for lobbying for two specific reasons. One is security funding from Washington. There's a great deal of competition, there's a great deal of uncertainty as to what Congress is going to do in terms of reimbursing cities both for operating fund typ security needs that have been mandated but not fully funded by Congress, such as additional police services and also some capital improvements that are required for the full 100 percent screening of baggage that's now mandated. We have temporary solutions in place for that right now, but the final solutions will be significantly more expensive and 2546 3/12/03 - FY '04 OPERATING BUDGET will probably involve both construction and funding over a period of years, I would say three to five years out. And the other thing is that we believe that within the next year we will have reached a conclusion about our preferred alternative for our new airfield and get federal approval for that. That will also require significant long-term funding. Our objective is to get a letter of intent from the federal government for a multi-year funding for airfield improvements. And our sense was that we would budget for additional lobbying services in order to achieve those goals. And we do not have a specific -- as it says here, "to be determined." There isn't a specific firm that's been identified as yet. That is generally done through the Mayor's Office.
And the services at Washington and Harrisburg, have those firms been identified? Who are you using now?
And in Harrisburg who do you use? 2547 3/12/03 - FY '04 OPERATING BUDGET
The Washington lobbying is split between Whitan & Diamond and Patten Boggs. And the Harrisburg I think is -- these are our contributions to citywide contracts, both for the Washington and Harrisburg lobbying. And I believe the Harrisburg is Wojack Associates.
So as you move to require the services to meet the needs of the areas you outline, you would probably have to have additional dollars for these companies, or would you hire other outside firms.
In some cases there are specific firms that specialize in aviation-type lobbying and have experience in that area. Again, whenever we hire outside counsel, it's actually done with the review and approval and I think it's done through the City Solicitor's Office. So we would work with the Commerce Director to identify appropriate firms. We will most likely recommend for specific funding objectives that we're trying to get for these security and capital program objectives. We would recommend probably a number of firms and then seek some consensus about which is the best, but that has not been done yet. 2548 3/12/03 - FY '04 OPERATING BUDGET
Now, what about the $100,000 for bankruptcy, what does that mean?
Well, there's been a tremendous increase in the legal services required for us to monitor and manage, from our perspective, the US Airways bankruptcy in particular. Also United Airlines is currently in bankruptcy. And it's quite possible that other major carriers will go into bankruptcy during the upcoming fiscal year, at least based on what we read. We use a combination of both in-house, City Solicitor staff, and some outside counsel for the bankruptcy expertise that we need. And I would say that they have done a tremendous job. The City Solicitor's Office in particular was successful in having the City named as ex officio member of the Creditors Committee that's been meeting on a regular basis during the US Airways procedure. And it's really put us in a good position, not only so that we are aware of what's being contemplated by US Airways for their entire network, but specifically for Philadelphia. And it's given us, I think, a leg up on some of the other airports who have been affected by the bankruptcy. So we think that that's been a 2549 3/12/03 - FY '04 OPERATING BUDGET good investment, and we anticipate that there will be some additional costs spilling into the new fiscal year. It's somewhat uncertain right now that US airways is publicly stating they intend to come out of bankruptcy on or about March 31st, but there will be some ongoing monitoring services that we'll require beyond that.
This specific item, I believe, is for outside counsel which, again, was hired by the City Solicitor's Office to defend the City. I think it's primarily for one specific lawsuit, but there may be some others that are part of the appropriation request. And I can confirm very quickly if you wanted to know which specific lawsuit that was for.
But again, the City Solicitor selects the firm, and we basically reimburse the Law Department for the cost.
You can give that information to the President. 2550 3/12/03 - FY '04 OPERATING BUDGET
No, not really. We have been -- obviously, from looking at the rest of the column, we have been using additional legal services, significantly more legal services over the last year or two then we have in the past. And we always have an appropriation for unanticipated litigation, unanticipated legal services. And again, this is done through the City Solicitor's Office, but we thought it appropriate in line some of the other increases we've been looking at that we wanted to be prepared to have some money in the budget, if needed, to fund that type of work.
Let's look up under item 250 where it says "To be determined, 600,000 for advertising contract," -34 at the top.
Our intention is to do an advertising program which is modeled after what some other airports have done around the country where they do joint marketing with the airlines. We needed to have an appropriation of money to do that. Before we got to this point, we needed a City 2551 3/12/03 - FY '04 OPERATING BUDGET Solicitor's opinion telling us that it was legal and that there are appropriate controls and policies over how we do that. For example, we can specifically work with an airline that offers new service to Philadelphia by doing joint promotion with them of that service so that we can be supportive of, not only obviously the hub carrier, US Airways, but any other carrier that wants to bring us some new service as well. In order to do that, we did need to set aside some advertising money, and that's what this appropriation is for.
How would you select the firms to do the work? Is there a process for doing that?
It would depend on whether we're talking about -- I think this particular class, 250, would be specialized services that you would get in an advisory capacity but it would also include within this allotment money for specific ad placements. And from our past experience, I mean, if we hired an advertising firm, we would do that through a competitive RFP or RFQ process. And as part of the negotiation for that contract, I think it would determined whether they would do specific 2552 3/12/03 - FY '04 OPERATING BUDGET ad placements for us. Or if we would do that, we always have the opportunity, I think, to do that also through the City, the City's own advertising agency in the Procurement Department. My guess would be ultimately you'd see some of each.
That is Communication and Information Systems Management contract which incorporates both management and some maintenance of all of our -- what we call our high-tech systems. The biggest single piece of that contract has to do with maintaining our access control system which is a giant computer network that essentially controls all the doors and access points to the airport from a central computer room. It's like a local area network, but it's, obviously, much more sophisticated. At the present time, I think we have about 350 doors. And with the new International Terminal opening, that number will be substantially increased. We also through that system we manage all the cameras that we have throughout the airport. With the opening of the new terminal, we'll have about a thousand cameras throughout the airport. 2553 3/12/03 - FY '04 OPERATING BUDGET Many people don't realize that because they're not obvious always to the naked aye. And also we digitally record all the activity that's captured by those cameras for review by law enforcement in the event of any incidents. That system, as well as our telephone systems, our own local area network for all of your staff that has computers and participates on network, and cabling is also a big piece of contract. We have massive cabling infrastructure at the airport. We inherited a number of problems some years back when the phone company abandoned the cabling they had installed and made it essentially a house maintenance problem. That's all been incorporated into this contract, and that's the kind of work that that Elliott Lewis has been doing for us.
Now, let's go on -33 and let's look at your budget for miscellaneous training. What kind of training? And you also have up there various contractor training services.
Are we looking at the $125,000 appropriation under miscellaneous training, or a differ line? 2554 3/12/03 - FY '04 OPERATING BUDGET
125,000 maintenance training and then you have another one for 158,000 contracted training service and specialized training. Just explain the training budget.
Well, we have -- obviously, we have about 800 employees, so there are a number of different training initiatives that we do. One of our big training initiatives over the last few years has been customer service training, which we do on a regular basis. And particularly, we've tried to tie that training in anticipation of the summer months when we generally have large conventions like the Republican National Convention and the National Baptist Convention. We also do a lot of specialized training for our maintenance staff that has to be familiar with some of the electronic systems that we have at the airport, as well as things that may sound simple, but doors, sliding doors, revolving doors. A lot of these systems currently are driven by software, by sensors and things like that. So there 2555 3/12/03 - FY '04 OPERATING BUDGET is an ongoing need for that type of technical training. We have an excellent HVAC staff at the airport that keeps us at comfortable temperatures throughout all kinds of weather with, obviously, lots of doors opening and closing throughout the facility all the time and garage doors left open by airline employees in the wintertime when it's 10 degrees outside. In order for them to do their job, 11 they do need to be updated periodically. 12 Right now, of course, with the 13 anticipated change, we're about to enter the City's 14 800 megahertz radio system. We're anticipating a 15 significant training requirement to get all of our 16 employees who have radios to be familiar with that 17 system and able to use it in a professional way. 18 We have emergency training that's 19 required by the FAA on an annual basis. You're 20 probably familiar with the public exercise that we do once every three years. A mass casualty type exercise. We had a major exercise like that this past fall where we christened our new fire training facility. We have a mock aircraft as part of that facility that literally catches on fire and has to 2556 3/12/03 - FY '04 OPERATING BUDGET be extinguished by the fire department unit which we call our Aircraft Rescue and Fire Fighting Unit. Those are some examples. I could get you more in-depth analysis.
That's fine. Thank you. I wanted it for the record. Could you just give me an update on where you are with your resolution of the labor issues that we talked about on the phone?
Yes. We are actually working on more than one front. Internally, we have reassigned the labor management responsibility to a deputy rather than higher level person than the human resource manager who was handling before. And at the same, we're going to use the services of the Philadelphia Area Labor Management Council to assist us in working with both District Council 33 and District Council 47 to improve the environment. We think that we have a very good relationship with our employees and with our unions. I'm aware that you received a letter with some specific complaints in it, from the phone call that you placed to me. I think that that's clearly the exception rather than the rule. But nevertheless, we will review all of 2557 3/12/03 - FY '04 OPERATING BUDGET those practices and try to do a better job of working with our people and our unions.
Thank you very much. And also, Mr. Cuorato, I think those are the end of my comments. While I highlighted Eleanor in helping us, I also want to talk about some of the staff in your department that have been helpful. And Jim O'Toole and Gillian Pollard, they certainly worked with us when we were doing the Wadsworth Avenue project. So we do have other staff over there who have been very helpful. Not that they're not cooperative. We understand some of the stuff goes on that may be beyond some controls that you have that things don't get done. But I just have to vent my frustration since you're the Commerce Director. But we still want to have that Mutual Industries dealt with. That's been my most frustrating issue in dealing with the department. The other one has to do with the whole issue of the neighborhood corridor on Ogontz Avenue. Thank you. Thank you, Mr. Isdell and thank you for the work you're doing at the airport. 2558 3/12/03 - FY '04 OPERATING BUDGET
Mr. Cuorato, Councilman Nutter asked you about Wal-Mart, and you said Wal-Mart was a engine of employment as our jobs, is that what you said?
I believe I referred to them as a major employer. They employ a lot of people.
At minium wage levels and with very few benefits, if any, and with a horrific labor situation in which many of the workers, if you have read the literature on Wal-Mart, are forced to work off the clock after the shift has ended and don't get compensated for it. Are you aware of those practices?
I am aware that union issues have been raised with Wal-Mart.
These are not union issues. These are issues about workplace conditions and the manner in which a worker gets treated. This is not union issues at all. There's people being forced to work off the clock for hours without getting any compensation. If they don't do it, they will loss their jobs. That has nothing to do with union issues. 2559 3/12/03 - FY '04 OPERATING BUDGET And do you also make an analysis of the impact that it has on other supermarkets around the area, the Acmes and the Pathmarks and so on?
Councilman, is there a specific Wal-Mart that's either built or proposed in the City to which you're referring?
I'm just following the questioning of Councilman Nutter. You were referring to a Wal-Mart that is being projected in the City of Philadelphia and you said that the issue was that it is a jobs engine or --
A major employer. But a major employer at minimum wage, minimum benefits, and exploitative job conditions. And then the impact that it has on the Acmes and Pathmarks who have workers that are well paid and have good health benefits, do we measure what it is? I mean, do we just give an okay because they're willing to come in, build something without us planning as to the ripple effects that it may have on other businesses around the City or in the area?
Councilman, I believe, other than the Whitman's site for which we requested 2560 3/12/03 - FY '04 OPERATING BUDGET and received a rezoning from this Council, I believe the other Wal-Marts in the City were done by Wal-Mart selecting sites and coming in and building stores.