Okay. Maybe by the time the department comes in we can get that, that would be great. Thank you. And lastly -- this is streets related. When it talks about the high capacity transit corridors, are there specific areas in mind or do you know the conversation? REBECCA RHYNHART: Yeah, I would ask Commissioner Tolson, and probably Deputy Buckley will be best to answer that.
Okay. Thank you. REBECCA RHYNHART: Maybe just repeat the question.
Sure. Good afternoon, Commissioner. In the testimony it talked about traffic signal technology to create high capacity transit corridors. Do you have -- maybe could you explain that a little more that we Discover Works Global 888.557.8650 www.dw-global.com can -- do you have any examples or do you have target where those corridors will be? CLARENA TOLSON: We do have a list of corridors that we can share with Council. What we're looking to do is through our Traffic Operation Center, which is underway in terms of development to manage our corridors based upon realtime conditions. We will be able to monitor activity on the streets for emergency activity, emergencies, rush hour, other activities. And manage the signals on some of those major corridors to support proper flow of traffic.
So they could change as time goes on and during the day? CLARENA TOLSON: They could evolve throughout the day based upon realtime conditions. So as opposed to having have someone in the box actually using a flicker to change them from a central location they will monitor strategic corridors to these high traffic corridors to manage that effort.
Okay. Thank you. Thank you very much. Thank you, Mr. President. CHAIRMAN CLARKE: Thank you, Discover Works Global 888.557.8650 www.dw-global.com Councilman. The Chair recognizes Council Member Johnson. We'll, get him when he comes back. The Chair recognizes Council Member Squilla.
Yes, thank you. And I have a couple of questions for the Streets. I don't know how we do this in the past, but it would be easier if we do all street questions a once, and all the park questions. I don't know if that's something we can do. CHAIRMAN CLARKE: Councilman, you're a Councilman now, your suggestion means a lot more now.
The money being spent I know we have a lot of streets in really bad disrepair, and it's a lot of work. How is it prioritized for the streets to be done in the City? CLARENA TOLSON: You're talking about paving, sir?
Paving streets, pot holes, dips, bumps and everything else that go along? CLARENA TOLSON: Pot holes and dips as you may call them, and other aggravations on the streets are taken care of as they are Discover Works Global 888.557.8650 www.dw-global.com identified. So throughout the year the Streets Department is responsible for maintenance of the streets, and we will manage pot holes continuously throughout the year. For things like ditches or cave ins they require different treatment which may take a longer time to get a permanent repair to them, but always they will be kept safe throughout the year. The next level up from the simple maintenance issues are paving. Paving occurs based upon the conditions of the streets. So for -- so we will survey the streets around the City -- in fact we completed a survey a few months back. It took us almost two years to complete it -- complete this last round, and we determined which streets were in worse repair. And then based upon their state of disrepair and then also some limited batching for the sake of efficiency, we then create the list of potential streets that we would pave. Some streets may be too far along that they cannot accept traditional or conventional paving and they need to be completely reconstructed. In that case, they are kind of put to the side until we get -- until we're able to have the resources to do them or until a utility does some major work on Discover Works Global 888.557.8650 www.dw-global.com the streets, and then the street can be reconstructed. There's also something new that we're trying this year which is to address streets which have not quite gotten to the point of needing total paving. However, their life can be extended by five to seven years through a pyro treatment that we're going to try called mirosurfacing. So that's how we create our list for paving. Basically it is those that we can extend some life to by some treatment or those that are in bad disrepair and we can do conventional paving.
So if we have a certain report of streets in our District that are really bad and may not make your list, is that something we can do to work with you to see if that's something to be done or no? CLARENA TOLSON: We certainly will be glad to accept the list from our Council people with regard to locations that they think are problematic, and we can look at them. Actually, I should also add that there's some coordination for all of the street work with -- coordination with other entities, utilities, cable companies, and the like. Because we like to look at what work may be Discover Works Global 888.557.8650 www.dw-global.com done by other entities other than just the City of Philadelphia. So there may be a street that is in need of paving, however, let's say the Water Department is going to be doing a major job on that street in another year. We would not paved that instead we wait for the Water Department to do it's work or Verizon, PECO, whoever it might be. We would hold off on the paving work that needs to be done. So I would certainly be happy to receive any list that you might have so we can look at and determine that status of the street.
Thank you. Because -- and is there possible -- you have a list already, correct, by the City or District? CLARENA TOLSON: We have a draft list.
A draft list. Then when do you think it will be completely? CLARENA TOLSON: We're working on it now. And we can share it with the Council President very shortly.
Okay, great. That was all I have for Streets. I have a question for Parks and Rec. Can I ask one more Discover Works Global 888.557.8650 www.dw-global.com question? CHAIRMAN CLARKE: Yes.
The Capital funding being spent and it says I think it was $9 million for neighborhood playgrounds. Do we have a list of the playgrounds that are -- that money is looking to be spent in or is that just a work in progress? REBECCA RHYNHART: I think the nine-and-a-half million for the rec centers and pools that includes the funding that's given to each Council District. So there's 790,000 give to each Council person that has a District, and so that money is then allocated according to how you would want to allocate that money in conjunction with us.
$790 million is that the same that was issued last year. REBECCA RHYNHART: $790,000 per District, yes.
$790,000. REBECCA RHYNHART: 790,000, and then you get 210,000 in the finance side. So you get 790,000 in graph and then 210,000, which is more flexible money. So you get a total of $1 million per District. Discover Works Global 888.557.8650 www.dw-global.com
So really that money is then just really not extra money for rec and playgrounds, it's just each District has about $1 million to spend in their District? REBECCA RHYNHART: That's right. You have the decision making ability to decide what rec centers get that money and for what projects.
And how about for the regular upkeep and maintenance of the facilities that are currently? REBECCA RHYNHART: Up and maintenance would be -- in terms of maintenance that would be part of the operating budget. So if -- you mean just an ongoing maintenance?
Yes. Like if we have problems with bathrooms or roofs or other issues within the current rec centers, is that -- REBECCA RHYNHART: There is also -- I mean there is money that's also just given to rec, given in the Capital Budget a much smaller amount for improvements in addition to what the Council Districts get. Usually we work in conjunction with each Council person to say well, here is the list -- we would say here is the list of project that we think need work, and when you would Discover Works Global 888.557.8650 www.dw-global.com say why, well, I think this is the most important or this is the top priority, and we work together with improvements.
But there's no added extra -- a little money you say to -- REBECCA RHYNHART: Right.
-- recreation? REBECCA RHYNHART: I would have to get the exact amount.
And I believe at least a lot more problems when we have a lot of rec centers run down, and parks and playgrounds that are not maintained end up costing us more money in the long run. REBECCA RHYNHART: Right. I think there's two issues. There's the money which I think -- I mean, we are getting nine-and-a-half million, and I know that it's given to each Council person, but that is money for Capital improvements. In terms of maintenance one thing we're looking at in the Operating Budget this year is to start to hire more people to do maintenance. We're first starting with police and fire stations to do more ongoing maintenance, and the hope is that by putting Discover Works Global 888.557.8650 www.dw-global.com $735,000 into the Operating Budget for ongoing maintenance that it will actually keep the facilities in better condition, and then prevent larger Capital projects from needing to happen. So basically checking the boiler instead of having a boiler explode because it's been checked, that type of thing. So that's something that we're working on and that's been put into the Operating Budget to start next year on police and fire, and other State buildings.
That's been a major concern of mine and every project that we do along with the City I think it's important to realize we need to look at how we're going to maintain the structures that we have. Because we seem like we spend more money on Capital improvements having to redo things over again because we don't maintain them. And I think we have to constantly look at putting more money into that -- $750,000 doesn't sound like a whole lot of money. REBECCA RHYNHART: It's -- I think it's about the hiring of about 15 people. So our idea is -- obviously we don't have a lot of extra money in the Operating Budget and -- or any Discover Works Global 888.557.8650 www.dw-global.com extra money in the Operating Budget. So the idea is to hire those people and to see -- Public Property is going to be tracking what they view in savings from the 735,000. So that if it works the way we think it's going to work which is that it will actually prevent bigger cost in the Capital Budget as you have mentioned, then we would -- the intent would be to roll it out in a bigger way in Fiscal -- 15. So I agree with you. 10
Thank you. 11 CHAIRMAN CLARKE: Thank you, 12 Councilman. We're running a little longer than we 13 anticipated. Why don't we take a break until -- 14 take a break until 2 o'clock give people a chance to refresh, get a bite to eat, and we'll come back ready and energized. Thank you. (At this time, a lunch break was taken.) CHAIRMAN CLARKE: Good afternoon, everyone. We will continue the FY13 Budget Hearing on Capital Program. Ms. Rhynhart did you want to have -- REBECCA RHYNHART: I did. CHAIRMAN CLARKE: Are they here? REBECCA RHYNHART: He's on his way over. Discover Works Global 888.557.8650 www.dw-global.com CHAIRMAN CLARKE: Okay. We'll pick up where we left off. The Chair will now recognize Council Member Johnson.
Thank you, Mr. President. I just have a couple of questions. I would like to also publicly acknowledge that as we go through this process although Rebecca represents the administration, she is a consultant of the mighty second Councilman District. Because I know -- REBECCA RHYNHART: Thank you.
-- you're just here representing the administration you is. REBECCA RHYNHART: I voted for you.
Thank you. One of those 46 votes I won by. Make sure that don't happen again in 2015. I had a couple of questions in regards to the airport. And I wanted to get some clarification on the $336 million of federal, state and private funds that will be used toward the Northeast Philadelphia Airport, but more specifically the Philadelphia International Airport is my focus because it -- although it impacts the City, it's still in the seconds Council District, so Discover Works Global 888.557.8650 www.dw-global.com I've been paying attention to this project thus far. The Capital Enhancement Program, right, are these funds that's being allocated now are they a part of that proposal that the administration is rolling out with the airport expansion or these are actual funds are in the pipe line totally separate from that particular proposal? REBECCA RHYNHART: I think what might be best is to have Mark Gale. MARK GALE: Good afternoon, Councilman.
Hey, what's up. MARK GALE: Good afternoon, Council President, how are you? CHAIRMAN CLARKE: How are you doing. MARK GALE: Councilman in response to your question, last year in City Council we came before you and the airport received approval for an extension of our use and lease agreement with the airlines. And as part of that extension the airlines approved us to proceed with the first $250 million associated with the Capacity Enhancement Program. Roughly it will be called the CEP, and Discover Works Global 888.557.8650 www.dw-global.com that was -- CEP implementation is what we refer to it as. The funding that you -- the dollar figure that you noted here, the $336 million, a good share of that is actually part of the CEP implementation. It has to do with things like hand acquisition, getting the program stood up and starting to move in the right direction. The funding sources for the Capacity Enhancement Program as a whole come from a variety of resources. Some of it will be bond funded. There's a piece of it -- a good piece of it that comes from the Federal Government in terms of grants. And there's also a good piece of it that comes from funds that are collected by the airport that are called passenger facility charges, that are fees that are actually in the tickets that airline -- that the passengers pay the airlines, and pieces of those are remitted to the airport. That's all part of our funding plan we move forward.
Thank you, Mark, that's what I wanted some clarification on -- MARK GALE: Your welcome, sir.
-- how that project is moving forward at the base of this current Fiscal Budget. My other question was in Discover Works Global 888.557.8650 www.dw-global.com regards to the -- it's not for you Mark. Thank you very much, Mark. The $7.5 million City funding recommended for the Office of Innovation and Technology to stabilize and enhance City Government's information technology network infrastructure. Can somebody please clarify how that money is going to be spent on what particular projects. REBECCA RHYNHART: Sure. That --
Continue. REBECCA RHYNHART: Okay. That $7.5 is a part of $120 million spent over seven years. It started two years ago that that's been -- I'm sorry, the appropriates. So in terms of -- if Adel Ebeid is here. I think the best -- he will be the best, the head of our IT Department to give an overview of how that money will get spent.
Thank you. ADEL EBEID: Good afternoon, Mr. Councilman.
Good afternoon. ADEL EBEID: So the goal for the $7.5 was to supplement another part of Capital that Discover Works Global 888.557.8650 www.dw-global.com carried. And the focus is on the current citywide infrastructure which includes wireless network, data centers, servers, all the infrastructure that runs the day-to-day City Government. So the goal is to try to get that up to a level where it's stable and it's secure so that we can approve the up time for both the agencies who are currently using the infrastructure, and so we can start preparing for business application modernization which are going to utilized that infrastructure.
Do you have what specific agencies that are going to be targeted for an upgrade? ADEL EBEID: Almost every agency makes use of that infrastructure. Some completely rely on it and others just rely on it as far as access for communications, that kind of activity perspective. We can provide many details if -- during the Operating Budget next week.
Okay. Thank you. Thank you very much. And Council President, just one last one if you don't mind. CHAIRMAN CLARKE: Certainly.
And this directly impacts my District. The proposed project Discover Works Global 888.557.8650 www.dw-global.com the City, public private partnership with CHOP health center, and I don't believe in blinding siding I also had a conversation had some questions before me in regards to -- I think this is a good idea, but this as a potential -- if CHOP builds this new health center potentially we will have a new recreation center, and a new library but potentially and actually having one is totally different things. REBECCA RHYNHART: I agree with you.
I kind of thought it was like a package. REBECCA RHYNHART: Okay. So for a little bit of background on this, health Center 2 we've been talking about what to do with Health Center 2 for a few months before this opportunity came up with CHOP, because it's in need of about $7 million in renovation. And once we found that out we looked at the cost of what it be to actually build a new health center, and it was $10 million. And then in conversations with CHOP they had our interest aligned actually because they wanted to build a center for children for pediatric care in South Philadelphia. So they have committed to fund the new health center. They need -- in order to Discover Works Global 888.557.8650 www.dw-global.com make the library rec center work the reason that's it potential and it's not an actual yet is because they need a donor to back that project. And so that's the open item and that's what's being worked on, and there is possibility of that. So that is a potential.
I think it's a great project for the record. REBECCA RHYNHART: It would be great.
Okay. Can we have SEPTA. Just one last thing Mr. Council President. If SEPTA can come forward please regarding the $3.1 million in City funds that will be geared toward the infrastructure, support home to work connections. REBECCA RHYNHART: They're coming up.
How are you doing, Ms. Jones. FRANCIS JONES: Good afternoon, Councilman. My name is Francis Jones, I'm Assistant General Manager of Public Affairs at SEPTA. And with me is John Guman who will give the specific information requested. Discover Works Global 888.557.8650 www.dw-global.com
Sure. Council President, you're not the only one to have a favorite person in Government. My favorite person Francis Jones. FRANCIS JONES: Thank you Councilman. Thank you Council President. CHAIRMAN CLARKE: Councilman you need to know she grew up in the 5th Council District. FRANCIS JONES: And the 4th Councilman. So I'm straddling both, but it's all good. Thank you.
Just can you just give a overview on how those funds will be actually utilized as well. And also, I have been looking into the need for the building of infrastructure and transportation funding on a State level. Governor Tom Corbett transportation has some recommendations which he hasn't followed through just yet, but I do know the impacts our surrounding economy as well as how we support transportation and infrastructure in the City of Philadelphia. So can you briefly touch on how that correlates and how we're funding you, the City. com you probably know that starting with Fiscal '11 SEPTA loss approximately $100 million in State funds, and that issue has not been resolved yet. The Governor did not address that in his Capital Budget, and that still has to be worked between the Governor and the legislator for this State. We're hoping for a solution as soon as possible, so right now we've been -- Fiscal '13 which is our upcoming Fiscal Year is the third year in a row that we'll be without the percent in Capital funding. So ago 11 lot of projects that we settled, we have designed 12 ready to go and other ones that we want to move 13 forward it's just actually just sitting there 14 waiting for this funding solution. So we have a lot 15 of projects to advance including the City Hall 16 Station. 5 20 million, which we do already have in place so that 21 we, you know, we be in part that we can. But the 22 big project which additional $100 million that 23 project is being delayed until we get the funds 24 resolved with the State. We're hoping at this point 25 that our federal funds will stay at the same level. com There was speculation at one time of federal funds being reduced by about 30 percent, but that's pretty much off the table now. We're confident at some point that the Federal Government will continue to advance a multi-year transportation program which is currently just being extended short periods of a time that we do pull, you know, a two to six year plan in place and that the funding will continue to stay about the same level, that's our goal. 5 million that I mentioned some of that funds is actually going to fund the CCD elements of their project for their undertaken investments waiting to SEPTA assess. Part of their -- because we're both kind of stepping on the same area there we're coordinating the efforts of what SEPTA takes on as our Capital project versus what the Center City District take on. com Plaza. We also have 100,000 in there as matching federal, state grants for the new payment technology which was awarded just a few months ago and that project just starting up it's a multiple year project that just kind of in the designing pilot phase right now. There's three phases, there's a pilot phase that we're looking how we're going to implement within all our stations. And then the second phase will be implemented it on the surface, the buses, the trolley, the subway surface. And the third phase we're going to implement the system into the regional rail system. Additionally, we have funds in there for about 800,000 for SEPTA's moving forward program it's an infrastructure safety renewal program. That's a group of a lot of small to midsize projects that we undertake mostly with our own work force, and we accomplish the prudence throughout the whole system. com approximately 70 to 80 percent of the required percent locally matched.
Thank you for your humbleness, Mr. President. When you got elected you said fair and hard working. Thank you, sir, I appreciate it. Just one last question. JOHN GUMAN: Yes.
Will SEPTA come up with a plan in the future to support our seniors who receives a subsidy as it relates to the SEPTA it is CCS Program or CTS Program? JOHN GUMAN: CCT.
CCT Program. And I remember -- I work with various senior centers in the District, and they were talking about although the economy goes up, right, there isn't an increase in the action on subsidy as it related to them being able to use their discount pass and in getting on the bus. So is there going to be any type of revamping of that program so the discount that the seniors receive kind of match the economy scale as we move forward? FRANCIS JONES: The funding for the CCT Program and the Senior Program is based upon the lottery. So that's how SEPTA receives the funds Discover Works Global 888.557.8650 www.dw-global.com and that's how our seniors are able to ride free in some instances and at a discounted rate. But it's based purely upon the lottery and the money that we get from the State.
Okay. I think the lottery is doing pretty good right now. So I guess -- I think, you know, as we move forward and there probably needs to be -- and I don't mind helping out with this an actually assertive specific plan from a lobbying standpoint to kind of work in conjunction with the folks in Harrisburg saying this is a need. And kind of work in conjunction on a State and a City level to see if we can actually address make that a high priority as it relates SEPTA's supporting our seniors. Just something to take into consideration. FRANCIS JONES: Certainly, we're most appreciative of any assistance that the Philadelphia elected officials will give to support what the Philadelphia deligation does in Harrisburg. But we would be most appreciative of your assistance and your assistance in finding funding on -- increase funding on a State level to have it included in the Governors budget. We need as much money as we can because as Discover Works Global 888.557.8650 www.dw-global.com Mr. Guman said the dollars that are not there do not allow us to really do the Capital projects that are on the drawing board, and those that are sitting on the shelf. Now, there are instances where we are able to do smaller capital projects because we have applied for grants that the City has supported and giving letters of support that we we're able to do as a result of getting federal funding. And so that helps us but only on a very, very small scale.
Thank you very much. Thank you both. FRANCIS JONES: You're very welcome.
Thank you, Council President. CHAIRMAN CLARKE: Thank you, Councilman. The Chair recognizes Councilwoman Bass.
Thank you, Mr. President. How are you? REBECCA RHYNHART: Good.
Very well. I just have a couple of questions for you. Let's start with money that's going to be put into public safety. You know if you just go back it states that -- well, one of the goals of the City is to be Discover Works Global 888.557.8650 www.dw-global.com one of the safest cities in the United States, and so we're putting in about $16 million into police facilities, the Philadelphia Prison System, and also for fire alarm and electrical improvements at fire department facilities. And so my question is this because if we're going to have a relationship between being a safer city and, you know, how we spend our money I'm wondering if you think that this will directly have a result on crime and public safety here in the City of Philadelphia. And let me just start actually by saying that, you know, in my District I have probably one of -- I think one of the worse police stations in terms just being outdated, and in really disrepair. It needs a lot of work and so obviously I'm someone who very much supports having this work done. But I'm wondering if you see that as somehow being related directly to public safety because as I see it we can, you know, build a brand new shinny police district and there's still going to be all kinds of crazy things happening around the corner on the avenue. So I don't know if you want to address that. REBECCA RHYNHART: I would say Discover Works Global 888.557.8650 www.dw-global.com in terms of how it impacts public safety, I think our police and fire and prisons -- if you take the example that you give us short of crazy things happening and looking at maybe police. They do need facilities that are, you know, up to today's standards in order to perform their jobs. So in that way I think that it's important that we put money into capital improvements on the public safety side in order to have facilities that, you know, are up to date. So I don't know if that -- I think that if we put money into police facilities in the Capital Budget but don't have enough officers on the street then that's not going to work. So I think that's why it's a combined effort in the Operating Budget to increase the number of officers, and also in the Capital Budget that we're talking about today to make sure that their facilities are in good condition.
I agree. I think that they should be in acceptable condition. But I just, you know, just thinking about I guess the language of it and the Cities wording in terms of being one of the safest cities in the US. And, you know, spending the money -- like how we spend it Discover Works Global 888.557.8650 www.dw-global.com if that's going to translate into that, just a thought. REBECCA RHYNHART: I would say on the Operating Budget side that it's more directly investment -- the proposed increase investment is more directly related to crimes on the street in terms of the number of officers.
Okay. Let's see regarding the $2.9 million in City bond funds recommended for Philadelphia Library improvements in Fiscal Year 2013, including HVAC, infrastructure, interior and exterior renovations at several branches. How many are several branches, and do you know which branches they are? REBECCA RHYNHART: It's actually part of a three-year investment in neighborhood library branches. So we're putting in $7 million over three years for the neighborhood branches, and the goal is to raise private money to supplement that. And the goal is to make an improvement to every neighborhood library branch. That is the goal.
Okay. So you will be providing information I guess to District Members in terms of what's going to be Discover Works Global 888.557.8650 www.dw-global.com happening in their specific Districts? REBECCA RHYNHART: Sure. The Deputy Mayor asked -- Mike DiBerardinis is handling that. And I'm sure once he gets more of a handle in terms of the private fundraising side that he'll be in touch with the money that is available.
Okay, great. And the other question I had was just in terms of the amount that was spent or plans to be spent at Love Park. And I noticed it mentioned $11 million. I think before the number million was tossed 12 around. Is it 11 or 20 or somewhere in between or? 13 REBECCA RHYNHART: The 11 14 million -- they're exactly exact numbers, but I'll 15 explain the difference. The 11 million is for 16 Fiscal '13 amount. So the total cost of the project 17 over two years is 20 million. So when we're looking 18 at the $117 million in the Fiscal '13 proposed 19 Capital Budget 11 million of that is for Love Park. 20 So when we're looking at the $2.9 million for libraries or the 9.5 million for rec centers, and pools that's the numbers.
Okay. And for the 12.9 million in city bond funds for improvements to parks and recreation, and I know you Discover Works Global 888.557.8650 www.dw-global.com said nine-and-a-half million will go to neighborhoods in the Districts. And we'll be able determine how the funds are spent. The other 3.4 million how is that going to be allocated, is that more for the park systems or? REBECCA RHYNHART: I would have to check. GARY JASTRZAB: Other -- it's for other park improvements on trail improvements and extensions, which we're trying to pursue pretty aggressively.
Okay. And one more, Mr. President. CHAIRMAN CLARKE: You know I'm a soft touch.
Just one more or two. Under making Philadelphia the greenest and most sustainable city. The first point $950,000 of new City funding is recommended to enable the Office of Sustainability within the Managing Director's Office to continue implementing energy efficient projects in City facilities, and to grant -- and to provide grant funds to City departments to leverage high performance building improvements. Can you give me an example of what Discover Works Global 888.557.8650 www.dw-global.com that means, what you're referring to in that? REBECCA RHYNHART: Okay. We'll have Andrew Stober to come. ANDREW STOBER: Good afternoon, Councilwoman. Andrew Stober, from the Mayor's Office of Transportation and Utilities. We in collaboration with the Mayor's Office of Sustainability have operated something called the energy efficiency fund for the past few years. We have City department apply for what are relatively low cost, high impact Capital projects that have pay backs typically less than five years related to energy efficiency. So, for instance, at the fire department facilities we are replacing of the incodecent light bulbs with CFL light bulbs. We've put timers on lights. We put in new lighting at Streets Department, street department facilities and put sleep timers on other facilities.
So that's primarily what it is? ANDREW STOBER: Yeah, and then we --
Just a combination of efforts you would say? ANDREW STOBER: Exactly. A Discover Works Global 888.557.8650 www.dw-global.com combination of efforts, small spends with big impacts.
What kind of impact do you think financially it would have on the City? What kind of savings? ANDREW STOBER: The projects that we pick typically payback in five years. We have a very large on the electricity side a long spend about $60 million a year. The kind of changes that we see from these efficiencies are relatively modest in that regard but, you know, every little bit counts. And in the long-term the only way that we reduce the cost of electricity and other utilities is to reduce our consumption, and so this makes an important contribution.
Do we have a figure in terms of long term what we expect over five years, ten years? ANDREW STOBER: That's something we could provide for you in our efforts.
Just to have an idea, you know, how -- what 950,000 will get us. What will it get us in savings. And just the last question real quick, which is more of a statement. In terms of the seven-and-a-half million in new City Discover Works Global 888.557.8650 www.dw-global.com funding -- actually, by the -- just jumping down to the Office of Innovation and Technology. And it says by the end of Fiscal Year '17, $120 million will have been invested in our essential digital technology infrastructure. And so I'm taking that to say that by the end of 2017, we will have invested significantly in all of our technology throughout the entire City offices, and we'll, you know, be able to see new technology starting from now up until then. But I guess I'm wondering by the time we get to 2017, will what we've done at this point -- because I know we probably won't have the funds to do it again or start -- or maybe we will start over. But what we're doing at this point by 2017 will be outdated; would you agree or am I -- REBECCA RHYNHART: I think Adel Ebeid is probably the best person, he's the head of the IT Department. ADEL EBEID: Councilwoman I think the investments over the next three to four years are really carved out in two sections. The first and the most immediate section is when I responded to the Councilman regarding the securing and stabilizing the City infrastructure. This is no Discover Works Global 888.557.8650 www.dw-global.com different than paving our roads, beefing up our bridges. So our digital infrastructure needs to be up to the level where it can accommodate modernization. The balance of the funds will be spent on modernizing a set of business application out in the departments that have been prioritized recently, and meet certain criteria with regard to emergency, value, cost, alignment with business goals. We've gone through the process over the last two-and-a-half-months and we've identified roughly between eight and ten large scale multi-jurisdiction type projects that would be -- the first to be modernized touch a large portfolio in the City. So if I'm -- L&I to police to prisons to revenue, finance, administrative systems.
Not exactly, but I'll come back to it. I'll come back to it at a later point. Thank you for now. REBECCA RHYNHART: Do you want Adel to answer the commerce question that you had? CHAIRMAN CLARKE: Briefly because I have another -- Discover Works Global 888.557.8650 www.dw-global.com REBECCA RHYNHART: However you -- CHAIRMAN CLARKE: -- new member who's ready to take a stab. REBECCA RHYNHART: Okay. That's fine. However you want to do it. CHAIRMAN CLARKE: Let me let one of the new members. Councilman Henon.
Thank you, Mr. President. CHAIRMAN CLARKE: We're establishing a new rule where freshman members first time around get to ask questions longer than the required four minutes or five minutes.
Thank you, Mr. President. Majority leader mentioned earlier the carry over of $374 million carried over. How long was -- is that just carried over from FY12 or from previous years? REBECCA RHYNHART: It's from many years. Actually, the 111 million of that is actually Fiscal '12 money. So that money only becomes available -- only became available in December, so that money has not had much time to get spent. Because the way this works if Council if you Discover Works Global 888.557.8650 www.dw-global.com approve hopefully the Capital Budget in May then it goes -- then there's a loan authorization it goes to voters in November. So it doesn't become available until December. So that's -- there's a good reason why that -- a lot of that money isn't spent yet, about 111 million because it just became available. But the rest of the funds is from multiple years, 2011, 2010 and a few other years going back. We can provide you with a list of it. But as I said to Councilman Jones this is something that we view as an issue, and we're working towards a solution on it.
Okay. So but the 111 and a balance from previous years for the -- moving forward or carried they are assigned a particular project? REBECCA RHYNHART: Yes.
They are marked for a specific project? REBECCA RHYNHART: Yes.
And are there time schedules on these projects or it just because of the money wasn't available? REBECCA RHYNHART: No, there Discover Works Global 888.557.8650 www.dw-global.com is -- there are schedules for the projects. It just -- it's -- often they move slower than anticipated. So that's -- and that's why we view it as something we're creating a work group to figure and figure it out.
Well, I look forward to that. You would also -- in the testimony it was mentioned that 116 million for new bond money. REBECCA RHYNHART: That's right, 117 million.
Oh, 117 million is that out of the 125 million that's remaining for debt seal. REBECCA RHYNHART: That's right, yes.
Okay. I just didn't know if was in addition to the 125 million. REBECCA RHYNHART: No, that's -- no, the 125 million represents the amount available of our -- it's called a legal debt capacity. So the 117 million is part of that 125, so you can see how tight we are under that.
Welcome AVI, right? So with -- Discover Works Global 888.557.8650 www.dw-global.com REBECCA RHYNHART: Okay.
-- the new assessments -- REBECCA RHYNHART: Let me address that.
-- there is a possibility of our debt seal rising if you made assumptions in our six-year plan or -- REBECCA RHYNHART: Okay. Let me just if you don't mind me taking a step back on this.
Sure. REBECCA RHYNHART: The legal -- the constitutional is determined by a formula which is 13-and-a-half percent of the ten year average of assessed value.
Right. REBECCA RHYNHART: So as we are expecting AVI for assessed value to increase dramatically that -- because one tenth of that amount would be brought in every year for that formula, it will slowly ramp up the amount under the constitutional debt. Because remember it's a ten year average.
Right. Discover Works Global 888.557.8650 www.dw-global.com REBECCA RHYNHART: So with that said though, there's another strain on our ability to borrow which our ability to pay the debt service the principal interest in our Operating Budget, so we have a financial constraint that's in addition to the constructional constraint so both have to be looked at as we move forward. So it's not -- it's not -- unfortunately, it's not just that okay now that we go to full evaluation we have all this extra room to do all these extra projects because we also still have to afford to pay the principal loan interest.
And you would need to come back to this body? REBECCA RHYNHART: Of course, yes.
What is the city's current ratio of debt service? REBECCA RHYNHART: The -- I'll have to check on it. The debt service obligation I believe it's under ten percent. But a better way to look at it is fix cost as a percentage of expenses because we have very high cost related to pension and other fix cost, and that is significantly higher in the double digits. So it is higher and we have a Discover Works Global 888.557.8650 www.dw-global.com debt policy where our goal is to get that down because the more of our budget is fixed the less flexibility we have.
What is our current bond rate, and had it changed in the last three years? REBECCA RHYNHART: We currently -- our bond rating -- the lowest bond rating is in tripple B category from Sander and Perez, which is lower than Bates and Fitch. And so we're actively working on trying to get that up, but that is very low rating. I mean only I believe Detroit is lower than us of the largest cities.
Out of largest cities who are you defining largest cities, top 10? REBECCA RHYNHART: The top 18 largest cities. It's usually -- Detroit has the 19 lowest bond rating than the City of Philadelphia. 20 And a lot of that has to do with our very low fund balance, high debt levels. We have a lot of challenges.
Okay. CHAIRMAN CLARKE: Okay. Councilman, thank you. The Chair recognizes Council Discover Works Global 888.557.8650 www.dw-global.com Member Jones.
I just want to for the record say that five out of the six freshman are here and asking serious questions. I'm impressed with those questions that they are asking, and it's adding value to the process. But I do want their time clocked that they've had. CHAIRMAN CLARKE: Sir, you're about four years late. You've been here a while.
So could I have the Streets Department come back up and ask -- the Planning Commission as well. Why they're approaching the bench, I'd like to ask the question. Based on your testimony the Planning Commission works closely with the Finance Department, The Office of Budget and Program Evaluation, The Department of Public Property, The Managing Director's Office, and operating departments to recommend a Capital Budget Program. Can you explain for our serious six in brief how we come up -- come together on what those projects, capital projects should be? How is that determined and what imput will they have going toward to make recommendations? GARY JASTRZAB: Basically, every August or so we're provided with financial guidance Discover Works Global 888.557.8650 www.dw-global.com by the Financial Director and the Budget Director as to how much the City can afford to spend in general obligation bond funds for the budget year, and for the program. So the past -- the past few years we've been attempting to front load some of that spending. So beginning in August there is a call letter, a budget call letter that is sent out to all of the City operating departments that have -- that operates facilities or have other physical assets that may need to be constructed to be rehabilitated to be renewed.
Understood. How do we Council people actually impact -- have imput on that process in August? GARY JASTRZAB: In August it's primarily a administration program to get requests from the upper departments about their needs.
I understand that. My question is: If Councilman Clarke has a bridge in his District that he wants repaired or if Councilman Henon has some roads that need some attention or various Council persons how will they impact that process? REBECCA RHYNHART: I think what I'm hearing you say is that you'd like to be more Discover Works Global 888.557.8650 www.dw-global.com involved at the beginning of the process, and I think that, you know, we could make that conversation happen going forward.
And we will note that for the record, and take advantage of that. Because I think this -- the elected officials in this room have some roots on their ground, they walk around those bridges, and actually see the crumbling infrastructure in their respective Districts, and they have something by way of a recommendation or two, not that you're bond by it but at least you should know of it. And so I'll say that. I'm going to shift my question to our Commissioner who does a great job I would say earlier on in this part. What I want to know is that we do million dedicated to street 18 resurfacing, if that's the number. Have gas prices impacted material cost for you? CLARENA TOLSON: It's extensive that's certainly gone up. The major portion of our cost come to the ramps that are installed when we do our paving, and that could take about two thirds of our cost go to preparing the ramps and not to paving the streets, which is why this year we -- Discover Works Global 888.557.8650 www.dw-global.com
So is this under the ADA requirements that you're talking about? CLARENA TOLSON: Yes, it is.
So is there a special grant that we can go after? What percentage of our total street budget goes to the worth while cause of address ADA, and how does that impact just regular mileage of street paving? CLARENA TOLSON: Our miles of streets that will be paved is cut dramatically.
What is that number? CLARENA TOLSON: So this year we are going to do 30 miles of streets with conventional paving. But because we have to also -- when they do conventional paving install ADA ramps along with that. So we might like to do say 120 miles, 150 miles of streets if we had our drivers, but because that is not possible because of the cost of doing all that's required when we pave, we have to cut the paving miles back so that we can also install ramps along with every mile that is paved.
So under the federal formula is there a particular funding that Discover Works Global 888.557.8650 www.dw-global.com we can go after to particularly address the American with Disabilities Act requirement that we can go after because, you know, as we do these worth while curb cuts and other things we cut down on a number of miles of resurfacing that we have every year. And what is -- are they very expensive to do? CLARENA TOLSON: Yes, yes.
In what manner? CLARENA TOLSON: So our cost of -- may go from approximately eight -- let me get my numbers out so I give you the exact information. Give me one second, please. Okay. Here it is. So our conventional paving is $7 and 99 -- I'm sorry it's going to be $7.99 million this year. The cost with the ramps is about $24 a square yard. If we were doing that same mileage without the ramps, we might cut that down to eight. So that's why we're doing a lot less. Now, this year I should add we are policing a new technique, new for Philadelphia, it's called mirosurfacing where we're removing a very thin layer of the asphalt this will extend the life of the street. It is not traditional paving and in doing that the cost is about $3.80 a square yard. Discover Works Global 888.557.8650 www.dw-global.com
Because we realize that the materials that are made of our streets are a byproduct of the oil -- CLARENA TOLSON: Yes.
-- and our fluctuation in price goes up every time we hear the price of oil going up, so I recognize that. Shifting a little bit can we talk about the sinking homes in the City of Philadelphia and as it relates to AVI. And my question becomes if we are -- I have blocks in my District, and I would imagine in other Districts where we are experiencing shifting, not so much in the degree of the Logan homes, but blocks have these particular. When it comes to AVI how are we going to address that with the value of property if indeed there are impacted by those kind of conditions, subsurface conditions? CLARENA TOLSON: That is one that I think that I have to defer to somebody else in terms of the AVI process, and how -- with limitation of the low rate value may be, I cannot answer that. REBECCA RHYNHART: And I think AVI is going to full market value, so if there was something that impact it to any negative value would Discover Works Global 888.557.8650 www.dw-global.com be taken into consideration.
So as we start to identify -- if I understand you correctly, for the assessments blocks where they've had historic conditions, where they have experienced sinking, and the City is not in position -- there is no public policy on these sinking homes perse; is that correct? REBECCA RHYNHART: Correct.
So as we start to approach values we either -- one or two things is going to happen and neither one of them are good, Mr. President. Either we're going to say that a property has no value which means that they're forever stuck with that property and won't be able to sell it in the conventional market place, and therefore -- or therefore they shouldn't have to pay taxes on it. CHAIRMAN CLARKE: Good luck with that one.
I mean -- CHAIRMAN CLARKE: I hear you, but the tax man always cometh.
But he may cometh but his math better be right, because are Discover Works Global 888.557.8650 www.dw-global.com going to lose votes. Thank you so much. CLARENA TOLSON: Can I just add Councilman, you also mentioned the bridges. I did go did go back and check on the two bridges that you all mentioned. The 52nd Street Bridge is an Amtrack Bridge, so we will contract Amtrack about safe repair. We have been in dialog about that and have been working with them on it. We too share your concern for the safety there. And Councilman on the Ridge Avenue Bridge at 29th Street that is a PennDOT maintained bridge. We have made contact with them about the state to repair that because it was built in 1918, and it's currently carrying ton. We want to make sure 15 that they are on top of the maintenance of that. 16 CHAIRMAN CLARKE: Thank you. 17 CLARENA TOLSON: And we'll keep 18 you informed as to what happens. 19
Thank you, 20 Mr. President. 21 CHAIRMAN CLARKE: Thank you, 22 Councilman. The Chair recognizes Council Member 23 Green. 24
Thank you, 25 Mr. President. I hope I'm treated with the leniency Discover Works Global 888.557.8650 www.dw-global.com of the freshman, Mr. President. The -- so I'm going to talk and I'm going to start with ORT Capital Projects, so Pages 71 through 74 of the through 4 18, 37 through 39 of the 12 through 17 and 40, 41 5 through 16 five-year plans. So we're there's 120 6 million investment in technology over six years with 7 75 million front load the first three years of the 8 program was original in the plan. Now, we've -- in 9 the FY13 Capital Budget we've got only 7.5 million 10 in IT spending in the first year. And if my 11 understanding is that we spend none of the 10 12 million appropriated for FY12, and only about 5 13 million of 25 million appropriated for FY11. So when you add all of that up for this year it's $37-and-a-half million that will be available to be spent this year? REBECCA RHYNHART: That's correct. This year meaning for the Fiscal --
Fiscal Year next -- next fiscal year. REBECCA RHYNHART: Yes, Fiscal '13, you are correct.
So how much of that is going to be spent this year, and how much is going to be spent next year and on what Discover Works Global 888.557.8650 www.dw-global.com specifically? REBECCA RHYNHART: I'm going to ask the head of IT to come back. ADEL EBEID: Councilman, by way of backgroud will it help if I walk you through as quickly as possible through how the $120 million is doing to be divided up over the life?
I've seen the presentation, I have the power point with me. I'm asking about the next two years and the $37-and-a-half million. ADEL EBEID: Great. So we're in the process right now of putting a spending schedule together. The initial focus is on --
Is the answer I don't know, which is acceptable? ADEL EBEID: No, the answer is not I don't answer know. The answer is I would rather when I come next week provide you with factual numbers that I can put in front of you.
Okay. Well the administration has informed Council that it's identified ten citywide business applications initiatives that will be funded with IT capital dollars. It's also noted that the return on Discover Works Global 888.557.8650 www.dw-global.com investments analysis was part of the prioritization process for IT projects. I think we had testimony here that none of those are reflected in the plans. So next week when you come I'd like to if -- I believe this is power point project prioritization process that you gave to us on February 29th. In here it says that the ranking and scoring criterion are included opportunity in parens cost reduction, cost initial and recurring. So you're evaluating the cost of it and recurring cost I assume that's compared to some baseline. And then the final bullet point or square point is value maximization and anticipated pay back. So that is a return on investment analysis. I'd like the details behind all of the projects that are in the IT prioritization process specifically with respect to return on investment when you come in next week since that was part of the process that you conducted and presented to Council. ADEL EBEID: Yeah, I think the criterion that you're looking at those are objectives that we would use to rank and score projects.
Right. So you have to have -- in order to rank a score based Discover Works Global 888.557.8650 www.dw-global.com on anticipated pay back, you have to have the anticipated pay back numbers. In other words, the return on investment how many years. ADEL EBEID: Let me just put some context around some of those -- May I, Mr. President? May I continue? CHAIRMAN CLARKE: The bell is not for you. ADEL EBEID: Okay. So the -- clearly the eight systems that were identified frankly they are in such fragile state that a cost benefit analysis would not accomplish -- would not sort of confirm the fact that we need to replace them. We listed a comprehensive list of criterion that we would use, but if I have a system that clearly is several years past it's useful economic life, has absolutely no support mechanism in place from a vendor or from the City staff perspective, frankly I don't need to go any further to confirm that that's a system that has to be in the top eight. So our con -- we concentrated on making sure that we are identifying the top most fragile systems in the City and a cost benefit analysis whether it's from a cost avoidance or from actual savings perspective, it wasn't going to confirm anything Discover Works Global 888.557.8650 www.dw-global.com further for us.
Have you actually done this process with the things that you've have said are priorities? ADEL EBEID: Well, we picked those priorities as an ideal list of criterion that we would use to rank and sore projects, but we did not --
None of the projects in the first two years are ranked and scored based on this criterion; is that what you're saying? ADEL EBEID: They're ranked and scored primarily from a since of urgency.
So you didn't use these criterion? ADEL EBEID: We used the criterion, not all of them.
Okay. So then if you could please provide to the chair the documentation pursuant to which people ranked and scored these and what the final scores were and how you -- what you measured, what's on paper with respect to this ranking and scoring. Just please provide it to the chair and be prepared to discuss Discover Works Global 888.557.8650 www.dw-global.com it next week. ADEL EBEID: Okay.
Thank you, Mr. President. CHAIRMAN CLARKE: Thank you, Councilman. Real quick do you want to give me the quick overview on the video surveillance? REBECCA RHYNHART: Sure. Council President Clarke had asked a question about just the money for camera and how quickly -- what was the strategy and the time frame for fixing those cameras. CHAIRMAN CLARKE: Both existing -- we're not going to say the percentage, but we understand that it's a significant number that inoperable and what the strategy is to deal with that. And the strategy moving forward as it relates to the expansion of the video surveillance security program. ADEL EBEID: Sure. This is how much I know so far, I'm still in the process of trying to kind of put my arms around the entire surveillance camera strategy frankly. There's about 191 cameras that were deployed in the time frame of 2007 and 2008. Discover Works Global 888.557.8650 www.dw-global.com CHAIRMAN CLARKE: I don't need any history. I just need to know -- we have a couple I don't want to say, but we have a number of cameras that are inoperable, and we're trying to find out when they're going to come online? What the strategy is to get them online? What the strategy is to continue maintaining not only those cameras, but the ones that are operable. And we're going to get to an expansion program as referenced in prior years, and more recently an announcement made by a number of members that were here and the Mayor about the new crime plan. ADEL EBEID: So three weeks ago the City awarded two contracts for the maintenance and upkeep of the cameras. That is primarily going to be our preventative maintenance strategy to maintain as many cameras up and running as possible. CHAIRMAN CLARKE: How much was that? ADEL EBEID: How much -- CHAIRMAN CLARKE: The contract. ADEL EBEID: The contract is for a total of about $3.3 million. CHAIRMAN CLARKE: Okay. ADEL EBEID: Divided into one Discover Works Global 888.557.8650 www.dw-global.com component for installation and equipment, and another components for maintenance. We're in the process of working with both vendors right now to on board the process, and we should be starting within a couple of weeks of identifying -- working with police identifying the most urgent cameras in the highest crime areas and making those a number one priority. CHAIRMAN CLARKE: Okay. I would like to have a little more detail. But you'll be in next week. ADEL EBEID: Next week, correct. CHAIRMAN CLARKE: If you can do me a favor -- because I understand that there is obviously a public safety component, and you're IT guy. But the reality is that these locations are supposed to be driven by the Police Department. My assumption is that their imput is in the process in determining priority areas, and the time in which you place those cameras in a location. Can you interact with them leading up to next weeks testimony so we can have a little more detail? ADEL EBEID: Yes. CHAIRMAN CLARKE: Is that okay? ADEL EBEID: Yes. Discover Works Global 888.557.8650 www.dw-global.com CHAIRMAN CLARKE: Thank you. The Chair now recognizes Council Member Oh.
Thank you, Mr. President. I have a general question about the Capital Budget. Just on the issue of IT, I know we've gone through it, but I find it difficult to get a grasp on it because there is $47 million in purchase of services, and $36.8 million in payments to other funds. And if you can just bring some type of summary that kind of identify what that is and how it breaks down the other vendors and cost. REBECCA RHYNHART: I think you may be referring to IT's Operating Budget. Is that -- those numbers.
That's what I asked during the Operating I thought and now it's Capital. Is it Capital or is it Operating? REBECCA RHYNHART: This is Capital now.
This is Capital? REBECCA RHYNHART: Yeah, this is Capital, and then the operate hearing will be next week.
Well, what I'm saying is when you're talking about $120 million for Discover Works Global 888.557.8650 www.dw-global.com the IT upgrades, I asked that during the Operating portion of the presentation, and I thought I was told it was Capital. REBECCA RHYNHART: Okay. Maybe I'm not understanding your question. The $120 million is Capital. I thought you were referring to the dollars of the past 200 in the Operating Budget. But the 120 million is definitely Capital.
Right. Is there some information as to the basis of criterion cost comparison that we could be given, I could be given, for example, or the Chairman so that we can exercise some oversight and try to see how it breaks down comparatively to other vendors? REBECCA RHYNHART: Do you mean --
IT is very difficult for me to understand. One is the Software cost 50,000 another piece of software. REBECCA RHYNHART: I think we can provide some information on just how we came up --
Right. That Discover Works Global 888.557.8650 www.dw-global.com would be great. Thank you. REBECCA RHYNHART: Sure.
And so that I understand when you were talking about coming up with a Capital Budget in August, what are the perimeters around the budget? In other words, I understand that a different departments that may have some failing facilities may be contacted and say we have these projects. And is that primarily what the Capital Budget is for? REBECCA RHYNHART: Well, the Capital Budget there's -- the Capital Budget is for facility and infrastructure improvement. So there's certain rules that govern what we considered Capital versus Operating. And on the Capital side, for example, projects have to have a useful life of at least five years. They have to cost -- the project have to cost at least 15,000. So there's certain rules that govern what can be considered Capital versus being put in the Operating Budget.
And outside of that you can choose whatever Capital project -- REBECCA RHYNHART: So once the projects we determine that they meet Capital eligibility then there's a process by which we ask Discover Works Global 888.557.8650 www.dw-global.com all of the departments for their needs, their project needs, and then we go through those needs with planning together.
Okay. GARY JASTRZAB: We have -- we meet with each department that puts in project requests for fiscal assets basically, and we review those request with them. And they also prioritize their -- each department prioritize as their projects, so that something that is a dire need is going to be, you know, they're a higher priority than something that, you know, may be would be next to half.
I'm asking what is your consideration or strategy in terms of investing capital dollars into income producing or revenue producing projects in the City as opposed to maintenance or improvements investment into those structural things that will produce revenue, more money for the City? REBECCA RHYNHART: We look at -- the thing is it's a good question, and we are so far behind I think overall for so many years on our Capital -- on our Capital spending that we do tend to have to put Capital money into really keeping our Discover Works Global 888.557.8650 www.dw-global.com buildings up to date. Because even the 117 million a far below, for example, what the City Planning Commission recommended of 185 million a year, which we can't afford to spend. So in terms of is this a revenue producing conduct and it is something that is looked at, but often we are -- we need to make the decision to put the money into just keeping our facilities up to date.
Okay. Well I won't go any further then that, but I would love to continue that at a future time in terms of the strategy of -- you know, it seems like the City needs revenue more than anything else, and to have some imput into projects that will produce revenues I think would be a nice imput from elected officials. Thank you.
Thank you, Councilman. The Chair recognizes Councilman Henon.
Thank you, Mr. Leader. If you can Rebecca turn to or 146. If you can talk me through their various approach investment and collection systems. REBECCA RHYNHART: The Water Department. I think Joe Meyer, the Deputy Water Commissioner will be best -- oh, Howard Neukrug, the Discover Works Global 888.557.8650 www.dw-global.com Water Commissioner is here. The Water Department might be best suited to walk you through the Water Capital Projects.
Good afternoon, Commissioner. So if you could talk me through the various proposed investments the collectors systems. HOWARD NEUKRUG: In the collectors systems is mostly our storm service systems, our flood systems. And these are money that are going towards investing in the house. And basically it's mostly Capital investments into those pipes replacement. Not so many new pipes, but rebuilding those pipes that are bad. And we're also moving towards the CSO program, pipes program and managing our storm drains.
So the primary purpose is not to replace damages to move forward to a two point system? HOWARD NEUKRUG: It's very much about renewel, replacement of our existing system. Our sewer pipes are about 80 years old on average. Discover Works Global 888.557.8650 www.dw-global.com That means there are pipes that are much older than that, and there are pipes that are younger than that. They are very expensive to replace, but we do an inspection program and look at all our pipes. And we do look to see what needs to be relined, what needs to be rebuilt, what needs to be made bigger, and what could be abandoned.
Are these investments being made with rate payer dollars or tax dollars? HOWARD NEUKRUG: There is no tax dollars involved with this, this is all from the water fund. And it's mostly through bonds, through revenue bonds approved by Council.
Revenue bonds through the Water Department? HOWARD NEUKRUG: Revenue bonds from the Water Department basis, yeah.
Meaning for repairs? HOWARD NEUKRUG: Repair funds, no tax dollars involved.
The purpose is to address the storm order? HOWARD NEUKRUG: That's correct. Discover Works Global 888.557.8650 www.dw-global.com
Okay. I noticed that in the Budget you have a $36 million expenditure for vehicle replacement over the course of five years? HOWARD NEUKRUG: That's correct.
Okay. What types of vehicles are you planning? Is it for the construction of these collectors or -- HOWARD NEUKRUG: Yeah, it's all different types of vehicles. And we've put off the program of bringing in new vehicles into the department to keep up with that. On the streets on any given day you see the vehicles that are crews are out there with stinger vessels, stinger trucks, dump trucks, they're trucks that clean enlets. You'll see that they're pretty old and some of them pretty rusty, and it's time to put in an additional replacement program for them. REBECCA RHYNHART: Just for clarification that is -- it looks like operating revenue, and that's over a seven year period so it gets transferred to the Capital Budget.
Oh, it does. REBECCA RHYNHART: Well, all Water Department does. Discover Works Global 888.557.8650 www.dw-global.com
Okay. The Water Department, I thank you. I have a few questions regarding the Capital Budget on the allocation of resources and upgrades to improvements of the various facilities that we have here in the City. Are these improvements for buildings that we own or for building that we're leasing out? REBECCA RHYNHART: Yes, I mean we need -- the general Capital requirements that we own the building.
So we're not approving any of the buildings that we're leasing out? REBECCA RHYNHART: Are you referring some times we have leases in --
Right. REBECCA RHYNHART: Right. No, these Capital improvements are not being made to those facilities.
Is there a -- I'd like to get an accurate -- is there any chance to get an accurate list of City owned public property who is using it the utilities? Any data on the facilities that we own. The amount of money that's allocated to maintain these facilities we Discover Works Global 888.557.8650 www.dw-global.com own. A list of all the properties we lease. Who is using this space and the facility consolidation of why these lease exist. I know it's a lot. REBECCA RHYNHART: It's sounds like the task force.
I through it out there for a reason because I -- I'm having a little -- I initially made the request for that data in January, and I've only receive certain small parts of it. I'd like to have a more -- April 13th if I could provide -- have that information provide through the Chair, and myself. And if you can't provide it I'd like to know -- have an written answer of why the savings are not available for City facilities, and how we could get that service information. REBECCA RHYNHART: Okay. We'll, talk with you about that, and provide you with information.
Thank you, Mr. Leader. Just back on IT briefly. I will wait for the answers at the hearing for the Office of Discover Works Global 888.557.8650 www.dw-global.com Innovation and Technology. But I just do want to note that Tier one which is the critical infrastructure piece is only million of the $37 4 million. Tier two is $66 million. And, you know, 5 if we're presented with a power point saying this is 6 how we're going to address how this spend is made. 7 We're going to score these criteria, it includes pay 8 backs and other things, when that's presented to us 9 we believe that and we rely upon that in 10 understanding -- because we're appropriating this 11 money before these decisions are made about where it 12 goes. We're relying on a process has as a factor 13 pay back and other things, and so, you know. I'm 14 going to have -- I'm going to want a lot of detail 15 on this in the OIT hearing, and I'm just explaining 16 sort of in advance why. 17 Without -- so it's just my big concern 18 that without this we're going to end up replicated existing and inefficient processes. I'm concerned that we're already heading down that path, for example, my understanding is that the planned -- Enterprise Resource Platform or ERP which is basically a modernization of back office processes will include the electronic imagining of paper invoices basically replicating a paper system in the Discover Works Global 888.557.8650 www.dw-global.com computer. So there will be less people needed to -- less time involved in managing that paper, but still you're simply replicating an already inefficient, not modern process by doing the implementation that way. And so for that project in particular which is not a critical infrastructure system, I'd like to see how it measured up on this oracle when we get to OIT. And I'm just letting you know that in advance so that hopefully that information will be available at the hearing. REBECCA RHYNHART: Sure.
So with respect to the general obligation fund my questions goes back to a question Councilman Johnson asked. You talked -- there was I think $337 million in airport in this Capital Budget, and the placement of the general obligation bond questions on November ballot impacts the timing of the borrowing. But I'd like to get a better understanding of our approach to finding the Capital project. Because the administration has recently proposed using a commercial paper program for Capital projects at the airport to borrow funds for, quote, unquote just in time borrowing and spending to reduce our interest costs. Has the administration considered there Discover Works Global 888.557.8650 www.dw-global.com approach for City supported Capital projects so that we're not borrowing and sitting on cash, an paying interest on it prior to the time we actually need it? REBECCA RHYNHART: So just to step back on the idea of issuing bonds before we need it. We actually don't issue bonds before we need it. So here when the Capital Budget gets approved by Council then the -- and the voters approve the memorandum, then the appropriations become available, and then the projects can start. We can start our planning, we can start design work. But we manage the bond issuance based on our cash level. So, for example, we might -- let's say there's a $5 million project and once the voters approve the total that include that 5 million, we'll start the process of our planning and design work. But we might not need all of that 5 million for a year or two, we wouldn't issue the bonds right way. We issue the bonds when the cash levels get low. So we don't waste money paying interest.
So let me restate the question a very simple way. How much for existing Capital projects that are still on the books from wherever they were on the books, how much Discover Works Global 888.557.8650 www.dw-global.com money has been borrowed against existing Capital projects compared to how much money has been spent on existing Capital projects? REBECCA RHYNHART: Again we --
It's a simple question. REBECCA RHYNHART: I know and I'm trying to answer it. We don't borrow until we need the cash. So, for example, the cash level --
So there's two numbers there. I just want the numbers. REBECCA RHYNHART: If you -- I can give you the cash -- our cash flow statements which show the Capital improvement funds how low it gets before we issue again. I mean that's --
And you issue not for the 5 million for -- REBECCA RHYNHART: We issue over a two-year period.
Right. So you issue, then you get the money, and then you spend the money over two years? REBECCA RHYNHART: That's right.
The concept -- so you're paying interest on dollars that Discover Works Global 888.557.8650 www.dw-global.com you're not going to spend until two years from now? REBECCA RHYNHART: There's some of that, but --
So that's the premiss of my question. REBECCA RHYNHART: Okay.
Which is have you considered using a commericial paper program so that -- for Capital projects like you're considering for the airport so that you don't pay interest for two years on money that you're not using. And only fill the bucket up with bonds once you've drawn down on commercial paper so you're spending as you go and not paying unnecessary interest. Paying off the commercial paper with bonds. Wouldn't that be a better way to do Capital spending? REBECCA RHYNHART: There is some -- I mean on the general funds side we -- of course we issue short term on the Operating side for our cash flow. I mean, I can speak from my experiences when I was the treasury here, that the risk of sort of issuing commericial paper on the general funds side is that at some point that Discover Works Global 888.557.8650 www.dw-global.com commericial paper needs to get taking out by long-term bonds. So we can take about it. We can definitely talk about it. There's reasons why it's difficult to do it. It has to do with taking out the short-term paper with long term bonds, and -- you know, two years is not considered a long period of time to have long-term debt outstanding, and, you know, just spend it down.
But if we can save three, four, five million on interest over two years, why wouldn't we? REBECCA RHYNHART: I'm always happy to save money.
Thank you, Councilman. I'm next so I'll take a couple of seconds -- a couple of questions. Tom Knox is head of a committee that's looking at asses there. On that committee we have Councilman Kenney, Councilwoman Sanchez, and other members of the committee. How are we looking asses sales and mergers, synergies and capital buildings in relationship to this five year plan and Capital projects. How are we doing that? Discover Works Global 888.557.8650 www.dw-global.com REBECCA RHYNHART: I think this task force is broader to do with city facilities right overall and possibly lead to -- I'm sorry, and your question?
My question really is: How is that being moved into our thinking to determine our Capital Budget. So if you have a library rec center, if you a school all in the same block. All three of them don't need libraries, all three of them don't need gymnasiums, all of three don't need auditoriums. And that there might be in our forward thinking a multi-purpose building that services all three entities. How are we moving those recommendations into our planning? REBECCA RHYNHART: Well, the task force I think is working over a two-year period starting months ago. So I don't think that it's at a point right now to integrated into this Capital program. But I do see your -- and I do think that going forward it would be something that will be advantageous to integrate.
In light of the fact that we're going to be looking at the City relationship with the School Board who is going through a right sizing of their facilities trying to Discover Works Global 888.557.8650 www.dw-global.com downsize to the degree of the population of students available. We should now be talking to them about their future capital plans, where they're building schools, where we're considering building recreations centers. I just know about my District there's a field at 26th and Chalmers which services six schools. The recreation department -- it just seems to make good synergy to start planning that now as oppose to them come up with a plan, we come up with a different plan, the school board recreation department, libraries, three different plans. So under the capital why aren't we kind of looking forward thinking now to take those recommendations and plan out on how we can better utilize our limited resources? GARY JASTRZAB: If I could add to Rebecca's statement. You know as we go forth with the Philadelphia 2035 comprehensive planning process we have a citywide vision document, we've just -- the Commission just approved two District plans. As we move forward with the District plans we're looking at those opportunities. The joint use of facilities, working with the school board staff on their capital program. We review that each year and the Commission -- the City Planning Commission Discover Works Global 888.557.8650 www.dw-global.com has an opportunity to comment upon their proposed Capital program. So we are and will be as we go District by District looking at those opportunities for the joint use of facilities.
Even if we go beyond just the three headed monster of recreation -- not monster, but entities Recreation, School District and the City property; PHA Philadelphia Housing Authority has a beautiful gymnasium auditorium in Abbottsford where there is no recreation center right near there because it's almost on an island. You know, they don't have the staff to run programs. You have recreation centers next to schools where they don't have facilities, and put -- those synergies could not only save on the Capital side but on the Operating side. Who pays the electric bill, sharing of expenses that go forward we can have all kinds of savings if we just put our heads together. GARY JASTRZAB: There's a lot of creative opportunities out there that we're, you know, we're looking for.
On the liability side not on the -- other district council people need to -- we're in public safety we're Discover Works Global 888.557.8650 www.dw-global.com looking at the geography of crime. And what I mean by that is where criminal instances occur. So in one school that has been vacant in my District for over a decade, we did analysis of what is going on there. And they said that there was -- police records indicating the following, vandalism, criminal mischief, possession of weapons, terroristic threats, the possession of synthetically manufactured narcotics in one location that has been vacant. So as we solve the vacancy problem, we solve what is contributing to the crime problem. Because, you know, that criminal element takes refuge in some of our vacant buildings, so when you address one aspect of it you address another. And that's what I -- The Chair now recognizes Councilman Johnson.
Thank you, Mr. Leader. I just have one small question regarding the 3.2 million that's going towards the development of Delaware and Schuylkill Riverfronts. I'm highly interested in the development of the Schuylkill River Trail, so if someone can give me an update on that particular project. REBECCA RHYNHART: Okay. I'll Discover Works Global 888.557.8650 www.dw-global.com have Alan Greenberger. ALAN GREENBERGER: Good afternoon, Councilman.
Good afternoon. ALAN GREENBERGER: Depending on how much detail you want to go into, I'll give you the general overview. But if you want more detail there are people from Schuylkill River Development Corp here as well. There are -- it's really short on both rivers. They both Delaware River Waterfront and the Schuylkill River Development Corporation are looking to complete as many pieces of trail as they can get control of property now and then try to do the interconnections. So the Schuylkill River you know about the crescent that is under construction I think it's near complete. So the crescent is happening around the old Dupont Marshall Lamp Site. DC is working to -- they put out bids for the boardwalk piece of the trail that would get us -- that has to be over water. Down South Street they're doing studies for other pieces of trail, they're working with us on -- with PIDC with planning on a piece of trail that would connect in front of Bartrum on two pieces of land. So it's Discover Works Global 888.557.8650 www.dw-global.com lots of piece and then you join them together.
Out of 3.2 million how much is going towards the development of Schuylkill River versus the Delaware River WaterFront? ALAN GREENBERGER: We have that information here, give us a second. Okay, so on the Schuylkill there is 1 million and on the -- a million for the Schuylkill and North Delaware 500,000, Central Delaware it's also 1 million. So 1 million for Central Delaware, 1 million Schuylkill Waterfront, and half a million North Delaware Waterfront. And obviously these are money that are frequently used to match grant foundations and other resources that the individual Waterfront Corporations can bring to the situation.
Thank you. Because I think that when we talk about expanding our revenue base, right, and making sure Philadelphia is a City of -- a destination city as we develope the actual Schuylkill River Trail along the Waterfront as well as the Delaware River on the Waterfront. I think that plays a major roll on also how we recruit folks to actually come and stay in Philadelphia. And I encourage anyone to come to the Discover Works Global 888.557.8650 www.dw-global.com great 2nd Council District and watch a movie during the summertime along the Schuylkill River Trail, and I will guarantee you, you will know that this is an investment that's needed in terms of recruiting folks to stay in Philadelphia or encouraging people to stay, at the same time encouraging more people to move to our city. And so I just wanted to get a more accurate account of how that money was being divided up amongst the three Waterfronts. Thank you very much, Al. ALAN GREENBERGER: You're welcome. And we agree with your premiss.
Thank you, Councilman Johnson. I'm looking forward to going to the movies, but I think I'll stay up Main Street. The Chair recognizes Councilman Green.
I'm sorry, Councilman Henon was next, and then Councilman Green, I apologize.
Thank you, Mr. Leader. I have a few short questions to the Department of Rec, and the Police Department. REBECCA RHYNHART: Okay. Discover Works Global 888.557.8650 www.dw-global.com
In reference to the police and regarding facilities and public property.
Can you please speak in the mic, we can't hear. The stenographer is having trouble hearing you.
Last year there was $10 million set aside for the police facility improvements. Was any of that in District 6? ROB DUBOW: Yes, I'm sure there is. I don't have exact figures, but obviously Swat/Bomb K9 facilities in District 6. REBECCA RHYNHART: We can get that to you.
If you can provide to the Chair on any improvements to the -- actually while I have you here public property, and anything on projects and I guess broken down in districts to the Chair and for the Council body -- ROB DUBOW: Certainly.
About the 393 that are on the list, and in particular the police department and fire houses. I'll be here on Friday morning. I have an ongoing concern with the 15th Discover Works Global 888.557.8650 www.dw-global.com and the 2nd Police District, they are combined. The Police Department facility is one of busiest facilities in the entire City. And it seems like -- they're working under deplorable conditions, and, you know, I'm not quite sure that there is a simple fix to every time it rains fix a roof, you know, constant complaints about, you know, infestation and, you know, other City reports from the controllers office con down on the status of their conditions. In light of the unfortunate Archdiocese and the public school situation that are vacating many buildings. Is there a plan that the public property has possible relocating this -- these two particular Districts that are combined to another facility. ROB DUBOW: Not that I know of Council at this time anyway. The -- we don't have anything right now on the books for a new police facility as we sit here right now or even a relocation of one. The -- I am familiar with the problems in the 2nd and 15th, and I know that facility well. I think a lot of the issues are due to the drain water that comes in.
It's a space that is overflowed with folks not going -- they Discover Works Global 888.557.8650 www.dw-global.com could be working out in the parking lot in residential neighborhood that I've repeatedly tried to -- my office had tried to, you know, convene and meet to discuss this with the former Safety -- Deputy Safety -- Mayor of Safety or her new Chief of Staff and to no avail. So I would like to request that you -- REBECCA RHYNHART: I'm sure if you want that meeting that we can schedule something so that we can talk about it.
I appreciate it. I just learning something from our majority leader here that kind of laying the ground work out for, you know, departmental hearings in the upcoming, you know, weeks you know relating to thinks that, you know, that I hear every day. I hear about this deplorable conditions, you know -- or I just heard from the Water Department that they're spending $36 million and I'm sure it's needed for vehicles when we have 5, 6 vehicles, you know, for our police officers who are trying to keep our, you know, our citizens safe, you know, at any particular time. So there's a need for a lot of resources, you know, for our officers and our fire departments. So I just wanted to, you know, through Discover Works Global 888.557.8650 www.dw-global.com that out there and see if we can, you know, start the conversation and actually sit down and have some talks about it. REBECCA RHYNHART: Sure.
In referencing in regarding the Department of Rec. Due to the new redistricting of our legislative body here in the City of Philadelphia, I inherited four new rec centers, and I have what approximately 30 rec centers, Pennypack park, seven pools and a very limited budget to service the needs and the status of our rec centers. You know I'm interested in, you know, our Deputy Mayor of Parks and Recs has been gracious to, you know, come to discuss how he could be cooperative and combining some of the money to actually, you know, address some of the issues. But it seems like my issues are a little larger than, you know, maybe others. You know this is a serious problems we're just band-aiding, fixing, you know, to keep our rec centers and some of our public properties safe for our children. We have the summer coming up and it's very concerning. So again, you know, I know we're on limited budget, you know, I'd like to see if we can find a little more money to address somebody who is bursting at the Discover Works Global 888.557.8650 www.dw-global.com seams with, you know, public resources, you know, that we can, you know, have a safe place for our kids and families to enjoy. REBECCA RHYNHART: We'll be happy to talk with you.
And last and not least for our rec centers the cost -- not our rec centers. Our fields and some of the fees that, you know, we've been collecting moving forward. Can at some point I get a dollar value on how much we've collected to date and what we anticipate for the next upcoming year. REBECCA RHYNHART: That's in the Operating Budget we can address that.
Thank you, Councilman Henon. The Chair recognizes Councilman Green.
Thank you, Mr. Leader. I'm looking at of the FY13 and Fy17 Five Year Plan cash flow projections for Capital improvements. Back to the conversation we were having about the amount of cash we have. Did we do a borrowing in December for the Capital Discover Works Global 888.557.8650 www.dw-global.com Budget? REBECCA RHYNHART: Let's see. You're looking in the Fiscal '12 on ?
through 5 17, . 6 REBECCA RHYNHART: Right. So 7 the Capital improvement -- 8
It's three, 9 I'm sorry. 10 REBECCA RHYNHART: I'm sorry, 11 what page? 12
Appendix 13 three. REBECCA RHYNHART: The cash flow projections?
Right. REBECCA RHYNHART: So the Capital Improvement Fund you can see started in July 2000 -- the Fiscal '12 in July there was $201 million balance.
Right. REBECCA RHYNHART: And then it just continues to go down throughout the year. So there was no borrowing.
There was no Discover Works Global 888.557.8650 www.dw-global.com borrowing we just authorized the funds? REBECCA RHYNHART: There might have been a refunding that you authorized.
So you have not -- so during the course of the last year you have not issued new Capital bonds? REBECCA RHYNHART: No, there's been no GO bonds.
Okay. So during the course of the last. REBECCA RHYNHART: We're talking about Fiscal year, right Fiscal '12?
Sorry, Fiscal '12, yes. Thank you. During the course of Fiscal '12 we're carrying a minimum balance of $134 million. What is interest we are charged on that money? REBECCA RHYNHART: I would have to check on what the interest rate was on the bonds. I don't know offhand.
Was it above three percent? REBECCA RHYNHART: Yeah, probably it's above three percent.
Was it above Discover Works Global 888.557.8650 www.dw-global.com four percent? REBECCA RHYNHART: I's probably about five.
About five. So that's really about six-and-a-half million dollars in interest that we paid this year that we don't have to pay if we don't borrow the money until we need it if we have the commercial paper program. Six-and-a-half million dollars a year is real money. REBECCA RHYNHART: If it would be feasible. But there's issue of commericial paper on the GO, the issue of commericial paper so -- and this is probably a more detailed conversation to be had with the treasury on this subject, which could be continued at a later date.
I appreciate that. REBECCA RHYNHART: It's very common place for Government's for various reasons to issue --
The -- because we've always done it and everybody does it, has never been a good excuse. REBECCA RHYNHART: That wasn't -- Discover Works Global 888.557.8650 www.dw-global.com
As my mother used to say, you know, if Joey jumped off the bridge would you? REBECCA RHYNHART: That was not my reason. It was just -- what I was saying was that it's a conversation we can have. But I think there are reasons why we don't do it that way, good reasons.
All right. I look forward to the conversations. REBECCA RHYNHART: Okay. Good.
Back to Councilman Henon's questioning with respect to the police and fire stations, et cetera. I just want to make a point about -- and I made this point every single year with respect to budgeting even in the Capital Budget for prioritizing and presumably everything that we've chosen -- the Administration has chosen to spend money on it thinks is more important than things that it has not chosen to spend money on. And so in that context I'd like to say spending $20 million to redo Love Park instead of cleaning it, and not spending it in Police Districts 15th and 2nd which are deplorable is a choice that Discover Works Global 888.557.8650 www.dw-global.com the Administration is making. Choosing to spend the money in Love Park instead of choosing it to be spent in a commercial corridor or in rec centers or at pools is a choice that the Administration has made. And as we get through the hearings on the different budgets and impacts, I think it's going to be a fair question to ask the Administration to defend that choice. REBECCA RHYNHART: I would like to try to defend it a bit right here, if that's okay. I think that when we create the Capital Budget there is a balance of making improvements to all the City neighborhoods and all the City facilities. So out of 117 million Fiscal '13 Capital Budget there is $11 million for Love Park. There's also nine-and-a-half million for neighborhood rec centers and pools. There is $3 million for libraries. There is money for various facilities in the neighborhoods. So if you add it up our rate greatly exceed the 11 million that we're putting towards Love Park. So there is a balance that we look at between the neighborhoods and Center City, which is also a neighborhood but also a civic center for the entire City that we try to balance. And your point of would it be good if we could spend Discover Works Global 888.557.8650 www.dw-global.com money on many more things, yes, it would. But every year we try to create a balance that make sense for the whole City.
And what we do is we adjust the balance and potentially say lets clean Love Park and let's fix our police districts or let me -- let's clean and not redo Love Park, and let's fix our police districts. I mean we -- that is a choice -- the choice the Administration has made is to spend almost 50 percent of its money on Love Park and not fixing rec centers. REBECCA RHYNHART: That's not correct, 50 percent. It's 11 --
I'm sorry, I'm just -- REBECCA RHYNHART: It's 10 percent, 10.