COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON APPROPRIATIONS - - - - Room 400, City Hall Philadelphia, Pennsylvania Thursday, October 14, 2004 1:15 p.m. - - - - BILL 040760 - An Ordinance authorizing transfers in appropriations for Fiscal Year 2005 within the General Fund from the Department of Public Property City Subsidy for SEPTA to the Director of Finance... BILL 040770 - An Ordinance authorizing transfers in appropriations for Fiscal Year 2005 within the General Fund... PRESENT: COUNCILWOMAN JOAN KRAJEWSKI, Chair COUNCIL PRESIDENT ANNA C. VERNA COUNCILMAN W. WILSON GOODE COUNCILMAN JACK KELLY COUNCILMAN FRANK DICICCO COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN BRIAN O'NEILL COUNCILMAN JAMES KENNEY COUNCILMAN DARRELL CLARKE COUNCILWOMAN DONNA REED MILLER COUNCILMAN JUAN RAMOS COUNCILMAN MICHAEL NUTTER - - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 I N D E X BILL 040779 PAGE RAY ZIES, Finance Director........... THOMAS O'DRAIN, Fire Fighters Union Local 22......................... 20 CHARLES MCPHERSON, Chief Financial Officer, City Council............ 27 CHUCK O'CONNOR....................... 30 BENSON KOH, 52nd Korean Business Association...................... 32 DENISE GARRIS........................ 33 JACKIE WILLIS, 60th Street Business Association...................... 37 RANDY SLATEN......................... 44 DONNA STERLING....................... 52 WANDA GLOVER......................... 53 3 10/14/04 - APPROPRIATIONS - BILL 040760
Good afternoon. The Committee on Appropriations is now in session. Would the Clerk please read the bills?
Bill No. 040760, an ordinance authorizing transfers in appropriations for Fiscal Year 2005 within the General Fund from the Department of Public Property City Subsidy for SEPTA to the Director of Finance, and authorizing the Director of Finance to convene a panel for the purpose of administering funds to distressed businesses and the community affected by the Market Street Elevated Reconstruction Project, all under certain terms and conditions. And Bill No. 040779, an ordinance 19 authorizing transfers in appropriations for Fiscal Year 2005 within the General Fund from certain or all City offices, departments, boards and commissions to the Fire Department.
I would just like to announce that here to my left is Councilwoman Blackwell, Councilman Kelly, and 4 10/14/04 - APPROPRIATIONS - BILL 040760 we have Councilman Clarke, Councilman DiCicco and Councilman Goode. Is there someone from the Administration here? And we have Councilwoman Miller. We'll begin with Bill No. 040760.
Good afternoon, Councilwoman Krajewski. My name is Ray Zies, and I'm the acting Director of Finance. I have with me today Diane Reed who is the new Budget Director for the City.
Excuse me one moment. I believe Councilwoman Blackwell has something to say.
Thank you very much. Thank you, Madam Chair and all Members of the Committee. We have been working with the Market Street El Project that goes from 46th to 63rd Street from the inception of the project; certainly, I have from 46th to 60th, and my colleague Councilman Nutter has from 60th to 63rd. We've had big, big concerns about 5 10/14/04 - APPROPRIATIONS - BILL 040760 the project. Every time that SEPTA does work and opens the street, they keep it open a month or a couple months and then they close it again for the next phase. And then they keep extending the life of the project. So we're having hearings early in November with regard to the whole SEPTA project. But we've tried to give them money. Thanks to your Committee, we have provided between 2500 and $3200 for businesses affected who have a business privilege license, and we want to do that every year for this project. I'm so afraid, Madam Chair, Members of this Committee, that by the time this project is finished, we won't have any businesses left. These are neighborhood businesses. People don't come from the suburbs, they don't come from out of the community; these are neighborhood businesses. And when they have to open and close, they just can't survive. So we would like, again, to affect the SEPTA budget. We know the City is in serious financial straits. So we're not trying to affect the City budget. We would 6 10/14/04 - APPROPRIATIONS - BILL 040760 just like to affect the SEPTA budget so that every year we take about $500,000 from their budget, and we hope the Committee would agree to do that again. We know that the City is tweaking the figures for cleanup and tweaking the figures that were spent because we just finished doing this last round of checks. And we're satisfied with them not testifying, but would just hope that the Committee would consider doing the appropriations, and the Administration can tweak the dollars and we're satisfied with that. We have members from the business association, Denise Garris and many members. We have Mr. Poc (ph) from the Korean Business Association who are here, and they're prepared to testify or as the Committee wishes. We can have maybe two testify and all the rest stand up and be acknowledged. And we're just happy and thankful and grateful to the Committee for the opportunity to make this testimony and hope that you will again consider it.
Thank you 7 10/14/04 - APPROPRIATIONS - BILL 040760 very much.
Councilwoman Blackwell mentioned, we are not testifying on her ordinance today. We're only here to testify on Bill No. 040779.
Are there any questions on Councilwoman Blackwell's bill 13 here, any member? Councilman Clarke.
Thank you. Thank you, Madam Chair. What's the current allocation for SEPTA budget from the City of Philadelphia, the total?
Thank you. Thank you very much. Now we'll go into bill 040779. 8 10/14/04 - APPROPRIATIONS - BILL 040779
Good afternoon Councilwoman Krajewski and Members of the Appropriations Committee. My name is Ray Zies and I serve as acting Finance Director for the City of Philadelphia. With me here today is Diane Reed, Budget Director. I appear before you today to offer testimony on Bill 040779, which requests an increase of 6,770,000 to the Class 100 appropriation of the Fire Department. This request, as introduced, is an unbudgeted spending increase with no offsetting transfer from another appropriation line item. The Administration does not support this bill 16 because it will unbalance the FY '05 budget and the FY '05 through '09 Five Year Financial Plan and will require cuts to core service areas are mandated expenditures that were preserved in the budget adopted by City Council. The City's FY '05 budget was passed with the projected operating deficit of 14.5 million, even after departmental budget reductions that averaged 5 percent. In order 9 10/14/04 - APPROPRIATIONS - BILL 040779 to pass a balanced budget and Five Year Plan while maintaining core services as much as possible, the Administration and City Council pared each line item down to the barest level. We must continue to cut spending wherever possible rather than increase appropriations for programs that aren't in the budget. The FY '05 Operating Budget passed by City Council included a reduction in funding for the Fire Department. In testimony before City Council and in the FY '05 through '09 Five Year Plan, the Fire Department described that this reduction would be accomplished by departmental restructuring that would reflect the significant City-wide drop in structural fires without diminishing public safety. The Five Year Plan approved by PICA was balanced in each year based on the assumption that this restructuring would be achieved. Abandoning this assumption would create a 32.5 million hole in the Five Year Plan. Subsequent to approval of the budget reduction by Council and PICA, the restructuring would become the subject of a 10 10/14/04 - APPROPRIATIONS - BILL 040779 court case and labor grievance arbitration. The arbitration case is currently pending, and the Administration believes that it is inappropriate to consider a bill that affects a pending arbitration case. I hope these comments have been helpful, and I'll be happy to answer any questions that you may have.
Thank you, Madam Chair. I have some comments for the record. When I introduce this bill, you will see that the "from" line is blank. I did that on purpose. I did that on purpose because I wanted to see if we can work with the Administration to find the appropriate ways in which we can fully fund the Fire Department in order to protect the public safety of our 11 10/14/04 - APPROPRIATIONS - BILL 040779 citizens. I will be introducing an amendment today requesting that that funding be transferred from the employee fringe benefits fund, again, because we have not received any cooperation from the Administration. We, myself, Local 22, other members of this City Council have been for a few months now requesting that the City partner with us in conducting an independent study. And we all said, all of us have said that at the end of that independent study, if that study provided the same recommendations that had been put forth by the Administration and the former Fire Commissioner, we would have to live with that, we would accept that. City Council under the Council President was prepared to spend close to $200,000 to engage a company to do an independent study. That company advised us that if the Administration was not willing to partner with us and participate in the discussions and provide the necessary information and pertinent information to conduct such a study, that we literally would 12 10/14/04 - APPROPRIATIONS - BILL 040779 be wasting $200,000 because you can't get any kind of findings as a result of not having that kind of material and information that they needed. It's unfortunate that that's where we find ourselves today, that the Administration has still refused to cooperate with that study. So we obviously scrapped the study. The other point is that when we talked to the former Fire Commissioner in a brief across the hall in the Caucus Room 13 probably back in April, we had consistently asked prior to that what were the plans. We asked at a hearing, at a budget hearing in this very room of the Fire Commissioner, "We understand there may be cuts, we're hearing rumors, would you please share with that plan?" I didn't know about any of those cuts until the day I read them in the newspaper or saw it on television. Subsequent to that, we had a meeting across the hall with the Fire Commissioner and he indicated that the plan was appropriate, in 13 10/14/04 - APPROPRIATIONS - BILL 040779 his opinion. It will not jeopardize the public safety of the citizens or fire personnel, which all of us -- most of us, at least, took issue with. And he said when I asked him the question, the Commissioner -- I said, "Commissioner, were it not for the budget, would you be making these recommendations?" And his answer was no. 10 Subsequent to that at a hearing in front of Judge Carrafiello with Local 22 when the Fire Commissioner Hairston was on the witness stand, the attorneys representing the Local posed the same question: 15 "Commissioner, were it not for the budget, 16 would you be making these recommendations?" 17 And his answer was no. 18 To me, that suggests that this was 19 not in the best interest of the fire fighters 20 and the citizens. And we as Councilpeople 21 understand budget issues. We understand that 22 the City is in a tight squeeze. All we've always asked was to do the study and to try to work with us to see if we can come up with something that was reasonable and fair. But 14 10/14/04 - APPROPRIATIONS - BILL 040779 because of that, we find ourselves in a position today to hopefully pass this legislation that will transfer the funds from the employees benefits, fringe benefits, to make the Fire Department whole on those cuts. I wish we could have done it a different way but, unfortunately, we didn't get that cooperation. So I will be introducing an amendment at the public meeting. If anybody has any questions for me, I'll certainly be glad to answer them as well.
Thank you, Councilman. I'd like to add that Councilman Ramos is with us also. Are there any other questions from Members of this Committee? Councilman Goode.
Your testimony refers to the Five Year Plan approved by PICA. 15 10/14/04 - APPROPRIATIONS - BILL 040779 Has that Pica-approved Five Year Plan actually been released to City Council?
I'm Diane Reed, I'm the new Budget Director. That was sent over in June. That was not approved by Council at that time.
I'm talking about the PICA-approved Plan, was that sent over to Council?
Councilman Clarke and then Councilman Kenney has questions as well.
You indicated in your testimony that you were concerned that this action would be taken prior to the 16 10/14/04 - APPROPRIATIONS - BILL 040779 arbitration ruling.
Do you have any anticipation as to when that arbitration ruling will happen?
I know that it's going on right now, but I don't know when it will be completed.
I would think it would be two weeks, a relatively short period of time.
So the likelihood if it happens within two weeks that this bill would actually become law would probably fall within the same time frame, then we would have a better understanding as to when or what dollars would be needed to deal with whatever the arbitration ruling is?
We would have to -- whatever the arbitration ruling is, we would have to deal with that, yes.
So I'm saying this bill passes, it goes its normal process, 17 10/14/04 - APPROPRIATIONS - BILL 040779 a couple of weeks out the Mayor signs it or doesn't sign it, vetoes, gets overridden, gets sustained; the reality is that the arbitration ruling will probably happen prior to this bill 6 becoming law.
I'm not asking you about the outcome. I'm saying whatever it may be, it will probably happen prior to this bill becoming law. So the likelihood is that we'll have an understanding what that ruling will ultimately be.
Then we'll have a better understanding what needs to happen as it relates to appropriations, right?
So in effect, it doesn't really put us in a position that it will impact negatively on the arbitration if it doesn't come in the favor of the Administration.
I believe it could impact 18 10/14/04 - APPROPRIATIONS - BILL 040779 because of the press that it would get.
Are you assuming that the press will impact the arbitrator?
All right. I would hope that that would not be the case. All right. That's enough right now, Madam Chair.
Thank you, Madam Chairperson for the opportunity. As not a Member of the Committee, I appreciate you allowing me to say something on this. As with many, many the cases, the people that are sent here to give us the news or to testify are not necessary the people making the budgetary priorities and decisions that have brought us to this point. But in a $3.6 billion budget, if you can't find 6.7 million, you're not looking. And if we 19 10/14/04 - APPROPRIATIONS - BILL 040779 prioritize our service needs -- I can't think of a more core service than fire protection and medic units as the most basic city service any city can give. So when you're setting up a list of priorities for cuts, there's no sense at all in cutting the Fire Department 6.7 million when we have other areas of the government to take it from. I would rather be cut in other service areas than in the people who are coming to put the ladder up to my house to take me out of the second floor window to save my butt. I'd rather give up services somewhere else, even in the rec center, even in a library somewhere than to give up services when it comes to public safety and people protecting lives and property. The whole idea of this totally skews any sense of reason when it comes to tight budget times and making decisions on how to spend our money. I think it's a disgraceful thing to do. I think there's some political motivation to it also. It's odd that the Local 22 that supported the Mayor's opponent 20 10/14/04 - APPROPRIATIONS - BILL 040779 in the last election and is probably one of the departments getting hit the most when the Police Department probably isn't getting hit that much and they went the other way. So I don't want to pit one department against the another because I think they're critically important. But if you're going to make budgetary decisions based on priorities, the Fire Department is the last, absolutely last place you go. So as I said earlier, if you can't find 6.7 million in 3.6 billion, you're not looking very hard. Thank you.
I believe we have another witness here I'd like to bring up, President of the Fire Fighters, Tom O'Drain. Good afternoon.
Good afternoon. I want to thank you all for the opportunity to come here and speak today on this issue. 21 10/14/04 - APPROPRIATIONS - BILL 040779
My name is Thomas O'Drain. I'm the President of the Philadelphia Fire Fighters Union Local 22.
I heard some of the comments that were made here. I'd like to say first, Councilman DiCicco kind of laid out the process that took place before the actual announcement was made to cut these companies. I had offered resources that the International Association of Fire Fighters has available to it which is agreed upon by the International Association of Fire chiefs and the IAFF that we could have done this study ourselves. A joint study, and they would have been involved in it. It would have been a labor management thing and we could have got it done for free. But labor relations in Philadelphia go back to the 1930s. So we could have had this all over with and we wouldn't be sitting here doing this now making these hard decisions. I'll give you a little update on the 22 10/14/04 - APPROPRIATIONS - BILL 040779 arbitration process. We had our fourth hearing yesterday. The arbitrator really is afraid to make a ruling on this issue because it goes to managerial prerogative and a union's right to bargain. And it's a winner-takes-all kind of decision, and arbitrators don't like to make those kind of decisions. He wanted us all to sit down and try to work this, which I was willing to do. I was going to take some tough issues back to my membership to try to sell it to them, some issues that would be tough for us to handle, but I think everybody feels the same way I do, that we can't afford to lose these jobs and it jeopardizes our safety and the citizens' safety. The Fire Department refused to sit down at the table yesterday, and they did that right in front of the arbitrator. So I don't know where this is going to take us. But as we go on, it's dragging on and on and on. And then we have to deal with Labor Relations Board of Pennsylvania after that. So if 23 10/14/04 - APPROPRIATIONS - BILL 040779 everybody read the judge's decision on this, he said that pending the outcome of a grievance arbitration and the process that takes place at the Labor Relations Board in Pennsylvania, he's not allowing the City to close any companies. So the longer we wait, the more money they spend and it's just -- we're at a quagmire. I don't know how we can end this. But I agree with Councilman Kenney, that we cannot afford to cut public safety. And I guarantee you, it would hurt the public and it would hurt us.
I couldn't agree with you more. Coming from a family of fire fighters, I know exactly what the firemen go through. It just seems every year when cuts have to be made, it's usually with the Police Department or Fire Department. They're always the scapegoats. That's been going on since I can long, long remember. So I don't know of any Councilperson here that doesn't agree with you or with Councilman DiCicco. I want to thank you very much. 24 10/14/04 - APPROPRIATIONS - BILL 040779 Are there any other questions? Councilman Kelly.
Mr. O'Drain, are there any time limit on the negotiations with this arbitrator?
Well, the problem is trying to get all the lawyers in the room and the arbitrator and all of us in the same room 10 at the same time is a feat in itself. I mean, lawyers are busy people and so are arbitrators. So just getting people in the room all at the same time is tough. And then once we get there --
There is no 18 negotiations. Arbitration is decided by a neutral person. They usual like to split the baby so that nobody walks away unhappy. But on this particular issue, it's a winner-takes-all issue. And the City's legal argument is that they have managerial prerogative to close these companies without bargaining with the 25 10/14/04 - APPROPRIATIONS - BILL 040779 union. And we say that they don't because it affects our health and safety.
Now, the arbitrator, as far he's concerned, he asked you and the Administration to get together to work it out?
Yes. And the Fire Department officials said that no matter what the union suggests that they will not back down off of closing the companies. They want to go through with this plan no matter what.
Thank you. Are there any other questions? (No response.)
Do you have 10/14/04 - APPROPRIATIONS - BILL 040779 a statement?
Thank you, Madam Chair. My question actually is for Councilman DiCicco.
Well, do you have any questions of the two gentlemen?
Councilman, I know you said that when you put the bill in you left the "from" item blank. What did you say today regarding where the 6 million would come from?
There's an amendment I distributed. You should have a copy. It's from the personnel 27 10/14/04 - APPROPRIATIONS - BILL 040779 services-employee benefits.
If I'm correct -- and I can ask Charlie McPherson to help me out. Part of the money that's the General Fund for personnel services and employee benefits is a number that -- Is it a finite number, Charlie, or is it a number -- If you don't mind, Madam Chair, we can bring Charlie, because I don't want to misrepresent the facts on this. And I guess your question might be, would this reduce employee benefits and/or services if we take it away, is that correct?
Charlie, I hate to say this, but will you please state your name for the record and your title?
Charles McPherson, Chief Financial Officer for City Council. In the General Fund in the operating budget there's a line item to the Director of 28 10/14/04 - APPROPRIATIONS - BILL 040779 Finance for employee benefits that equals approximately $713 million. Out of that appropriation, it would be paying for the pensions, health welfare, group legal, all of the employee benefits that a myriad of City employees would receive. It's overall lump sum within that account. It's $713 million. To the extent that the Administration would need to replenish any of that, they would have the balance of the fiscal year to determine where surpluses were and they could always move it back at that time. As the Councilman had indicated, when he originally did the bill, he didn't identify specifically where the money was to come from. His intention, and I don't mean to speak for him, was the Administration would offer where they might have some excess appropriation power. From what I understand they've declined to do that. As an alternative, there's this appropriation $713 million there, and it would give the Administration balance of the year to the 29 10/14/04 - APPROPRIATIONS - BILL 040760 extent they need more money in that account to figure out where it could come from.
I understand that now. I just wanted to make sure we weren't going to have another group of people up here saying, you know, that you've taking our benefits away. So I just really want to understand what we're doing here.
I thought that was the reason for your question. As you know, Charlie is more thorough. He had facts and figures and numbers that I didn't have so I wanted him to -- Thank you, Charlie.
Thank you very much. Are there any other questions? (No response.)
Hearing none, I would like to go back to the first bill because I believe that we do have people here that want to testify on it, on Bill 25 040760. I believe they're the businesses from 30 10/14/04 - APPROPRIATIONS - BILL 040760 52nd Street. Are they here? Good afternoon.
Good afternoon. My name is Chuck O'Connor. I have a business at 52nd and Market. I've testified before. Things seem to be getting even worse. There's very limited accessibility to our businesses. Handicapped people can't even get their wheelchairs or whatever means they have of getting to our business there. The police have really disappeared from our area. We have an influx of drug dealers that are constantly hanging in front of our businesses. I've spoken to the police captain of the 19th District, and he feels that other areas of his district are more important than 52nd and market and we have no beat police anymore. Occasionally a car will ride by, but they don't do anything to rouse these drug dealers. And that's also an added factor and our business is falling off.
You have met with your police captain? 31 10/14/04 - APPROPRIATIONS - BILL 040760
I've spoken to him and he said that 52nd and market is not as bad as 52nd and Girard. He's taken the beat police from 52nd and Market and moved them to 52nd and Girard. We have no one down there, and these drug dealers are just running rampant. The people in the community know their drug dealers, and that's another reason they don't shop in our area.
Well, have sat down with Councilwoman Blackwell? She's your District Councilwoman.
Well, I know Councilwoman Blackwell, and she's always open to hear. I would suggest that you call her or stop in her office and speak to her because, believe me, she does work for her constituents When you're done, go over and see the gentleman here. Thank you. You wish to speak?
My name is Benson Koh. I'm one of the business owners on 52nd and Market. And also, I'm Chairperson of 52nd Korean Business Association that has 55 business owners. Since I gave testimony last spring, today I'd like to emphasize our situation is getting worse. This is the season now. Our merchants are recovering from summer slow to normal business level. This is our usual business trend. But those who left us, they don't come back.
Excuse me. I would suggest that the both of you or whoever else is with you to speak to this gentleman over here who is Councilwoman Blackwell's person, Darwin, because this is a police matter. Right now we're on another subject with SEPTA. All right? I want to thank both of you anyway for coming in to testify, but I do believe that if you meet with Councilwoman Blackwell 33 10/14/04 - APPROPRIATIONS - BILL 040760 and her aid that something will come about. Thank you. And I would also add that we have Councilman Nutter with us.
Do we have the businesses from 60th Street here? Good afternoon.
My name is Denise Garris. I am business owner and past president of 60 Street Business Association. I have lived in the area for over 50 years. MY parents opened the business in '47, and I took it over '81. I'm going to speak about the drop in business. This is Mr. Poc.
I'm 60th Market Korean American Business Association. The same problem, same story. 34 10/14/04 - APPROPRIATIONS - BILL 040760
My business and our businesses have dropped about 75 percent or more due to the El Project. I am sure that the people on Market Street, their businesses dropped even more due to the extensive inconvenience and access to their business via walking, driving, and taking the bus. The bus detour signs are made of paper, and a lot of times they are either torn down or the rain destroys them. They have metal signs up for everything else. They need to put metal signs up indicating the detour for their buses. So that is not clearly noted. Another thing is that the notice for constructions are not given in a timely fashion to the businesses so we can make other arrangements due to the construction. A lot of times, businesses are given notice two to three days before construction. I have spoken to the contractors in the beginning and they said, well, they can't do that due to the fact that they don't know what's going to happen or what's coming up a few days before because they don't have the procurement for the 35 10/14/04 - APPROPRIATIONS - BILL 040760 contracts or anything like that until the phase is finished. In other words, the first phase is finished, and then it's two to three weeks before the second phase starts due to the fact that they have to make a bid on the contract for the second phase. This is not conducive to the businesses. If this keeps going on, then West Philadelphia will end up being a ghost town.
Have you met with SEPTA? We do have a representative here today. Francis Jones I see. Have you met with her?
Yes, I've met with her on the several occasions. I've met with the contractors on several occasions. I've met with people from James Baker Associates. They know the concerns. As a matter of fact, 60th Street has given SEPTA proposals concerning the situations, and they have not really done anything about anything as far as the proposal is concerned. And I understand SEPTA did have contingency fees in the beginning to help with the businesses, and now those contingency fees 36 10/14/04 - APPROPRIATIONS - BILL 040760 have been misappropriated or appropriated to another situation or fund. And West Philadelphia in the long run will end up being a ghost town due to the fact that the businesses are leaving.
Excuse me. My question is, are you here to testify in favor of the bill?
Yes. Definitely. I really thank Councilwoman Blackwell for helping us get that through.
I would suggest that you stay in touch with Councilwoman Blackwell as far as the problems that you have with SEPTA and as well as with SEPTA itself. But right now we're hearing testimony on the bill per se.
And we are all definitely in favor of the bill. It did help us for this particular year, but something is better than nothing and I thank you very much. 37 10/14/04 - APPROPRIATIONS - BILL 040760
Thank you very much for coming in. I appreciate it. Anyone else here to testify? Good afternoon.
Good afternoon. I am Jackie Willis and I'm an officer of the present 60th Street Business Association. I'm the secretary, and I am representing the business association as well as my business that has been on Market Street for over 30 years. We, too, are all concerned and we are impacted by all of this devastation. We see the heavy equipment coming in and so forth. We understand -- it's my understanding that this project differs from Frankford in that the whole structure is going to be taken down, heavy equipment. We feel that as business people we know that we'll shut down part of the time and deserve to be compensated. I understand that the State was supposed to have a matching fund. We appreciate Councilwoman Blackwell's efforts to 38 10/14/04 - APPROPRIATIONS - BILL 040760 give us some monies, but we need more to sustain us and we are in favor of that bill. I want to make a couple other issues. We notice that -- I notice that the station at 63rd Street has not been completed. Yet they're now working on the station at 60th Street. So that means on either end all the businesses in between, including us, it's going to add to the anguish and the loss of monies because you haven't finished one project and you're starting on another. The other thing specifically from our business, they're going to put 50 giant pillows in front of businesses of which Wilcrest is one, and it will be almost blocking our door and we have no input. SEPTA has not come to us to talk about it and it will just be there. We've been meeting since the beginning of this project, and it was my understanding that any large structure such as that would come between buildings, not in front of buildings. The other thing I wanted to make 39 10/14/04 - APPROPRIATIONS - BILL 040760 sure that you have the understanding that when these delays occur, we are not compensated when SEPTA goes four, five, six, seven years over time. And hopefully, we would like -- it's one thing to have political power, but a stronger power is economic power. And as a business person, we'd like to be there when this project is over and not just die off as a business community.
Thank you very much for your testimony. I just wanted to ask. When you mentioned and also when Ms. Denise Garris mentioned that you've had meetings from time to time, could you give me some sense of how often those meetings are, what are the nature of the meetings, what's the general purpose of the meetings?
SEPTA has held meetings with the community. They have had meetings with business people. Now, in recent months, 40 10/14/04 - APPROPRIATIONS - BILL 040760 they have not been as frequent.
How often are those meetings with the business people and what is usually covered at those meetings?
Let's take last year, because it slowed up this year. Not many meetings, not as frequent, let's say. I would say three or four meetings yearly.
Is there a working committee or an advisory type of committee that's representative of the business community -- I know you're with 60th Street -- that meets either directly with SEPTA or with the contractor on a regular basis about what's going to happen over the next two, three, four weeks in terms of the project?
I don't know of any. We don't meet in that capacity. We go to the larger meetings. But I'm glad you brought that up because it's my understanding -- I was talking about that pillow that's going to be placed in front our building. It's my understanding that in Frankford, their 41 10/14/04 - APPROPRIATIONS - BILL 040760 business association was able to get the engineers to change the plan. So that's the kind of input we would like to have. If things impact our businesses in that way, we would have liked SEPTA to not just have large meetings but smaller meetings smaller groups of business people that are affected so that we could have some input before these things are put in place.
Right. That would make some sense. I know Ms. Jones is here from SEPTA. Have you had any opportunity to speak with her?
But you haven't the kind of regular meetings that you need?
The second question is, with regard to the economic impact, have you received any financial assistance or repayment for losses?
We have received a 42 10/14/04 - APPROPRIATIONS - BILL 040760 compensation that came through Jannie Blackwell's efforts.
Very good. Is it your sense that -- and obviously we have a bill here today to try to deal with ongoing issues. Have people been able to lay out what they think either their past losses have been or what their anticipating over, say, the course of the next year or two.
Well, just from talking -- I can only talk about us, that we keep making changes. We brought in the lottery. We're trying to do things that will improve our business. But I think as a rule, everybody's loss maybe 70, 75 percent of their business.
Any other questions Members of the Committee? 43 10/14/04 - APPROPRIATIONS - BILL 040760 (No response.)
Thank you very much for coming in. Is there anyone else here to testify?
Lossy Waters (ph) from 5904 Market Street, and I have been in business since 1961. And I haven't received anything, but I have been very inconvenienced with that work that's been going on there. So I haven't received anything. I'm one of the oldest businesses on Market Street.
If you will see Ms. Sneed, she will give you an application.
I can't tell you why, off the top of my head. I can only tell you if there was a mistake made, then we're happy to have rectify it. Just see 44 10/14/04 - APPROPRIATIONS - BILL 040760 Alisa Sneed, she'll work with you.
Hi. My name is Randy Slaten. I'm the owner of Ran's barber shop, 5910 Market Street. I'm speaking on behalf of all of the beauty salons and barber shops and surrounding area. I opened my business in 2001. I hired two barbers. My business has been very successful. As soon as SEPTA came in, I lost maybe 60, 70 percent of my business. The two barbers that I had is now gone. I opened my business and tried to hire youth, keep them off of the streets and everything. So with this SEPTA project going on, it's no telling what these people that was employed went on to do. My business is falling. I have kids to feed.
Well, isn't this what this bill addresses, some compensation?
Yes. We strongly need 45 10/14/04 - APPROPRIATIONS - BILL 040760 some kind of funding, grant.
Well, I know Councilwoman Blackwell has been working very hard on the situation. Yes, Councilwoman.
Absolutely. And we know most of you -- and I don't know happened with your check. It's only a stipend. All we asked for was a business license because it's not enough money to change their lives, but we do want the business to know that we do care about them. We've had battles. We had to fight SEPTA about lights, about putting port-a-toilets out there when workmen were urinating on the sidewalk at 55th and Market. For the first time, a church was robbed. We've had past hearings about this. So we fight about this all the time. We really sympathize and empathize what these businesses are going through. And we don't want a new SEPTA El track and no businesses left. SO we are very, very upset about the impact of this and why it has been a battle 46 10/14/04 - APPROPRIATIONS - BILL 040760 from the beginning. It still is. But we're still with these businesses. We thank them all for taking time you don't have, given the financial problems you have for coming down to City Council today. And the Council people support you and have been sympathetic to these concerns from the beginning and we thank you.
I have one other thing. Not only does SEPTA inconvenience our clients and everyone else, but they also have all the buildings under the NTI program, they have them on hold. So now it's to the point where not only do our clients not have anywhere to park, but SEPTA don't even want us to have parking for our clients.
That's something that Councilwoman Blackwell -- I'm sure she will address that problem.
The lots SEPTA has, we're preparing lease forms. They wanted us to convey them; we didn't. We've agreed to lease them from the City for parking for business owners for parking for members of the community and for patrons or customers who 47 10/14/04 - APPROPRIATIONS - BILL 040760 want to use your businesses. We also talked to them about using 48th Street between Market and Haverford. Those areas -- there are several areas that are used for parking that we have gotten the Parking Authority to work us and SEPTA during the length of this whole project. So if you're not clear on where they are, you can see Alisa. But all the lots that SEPTA is trying to get, they're only leased, and we're leasing them and they have agreed to pay them and all of that so that you have places to park as well as 48th Street between Market and Haverford. And I believe -- is it just 48th Street? It's 48th Street between Market and Haverford. We've tried to make an agreement for any vacant space to try to permit parking. And as all of you know, under the tracks in between the posts people can park there as well.
Well, I'm adjacent to an open lot. Again, my address 5910 Market Street. I'm requesting to have the lot at 5914 Street. SEPTA don't do anything to keep 48 10/14/04 - APPROPRIATIONS - BILL 040760 the grounds clean. They're not keeping people from loitering back there or doing whatever they want to do. I do. So if they want to have that lot on hold, then they need to step up and do what they need to to maintain it. It's theirs. Why am I doing all the work?
That is why we have as part of this money for cleaning. You know we went through that. We asked them before to let a neighborhood community group do cleaning. And they still don't keep it clean, so part of this transfer allows for cleaning, whether it be the partnership CDC or another community-based organization to do that. And let me finally say, so I don't belabor the point, that we're having hearings approximately the second week in November to explore all the other areas. This is really appropriations where money is transferred. But all the areas related to the West Philadelphia Market El reconstruction project and its status will be heard at that hearing. We did have a date of October 26th, but we're 49 10/14/04 - APPROPRIATIONS - BILL 040760 told Councilman Nutter who would be involved because it's Transportation and Public Utilities will not be available on that date. So we will change it to approximately the second week in November and have full hearings where SEPTA can explain all of their intentions. Because there were rumors that the project was being extended from '08 to '10. We found out that's not true. '08 is still the finishing date, but we want to have a full discussion on these issues.
Well, Councilwoman, I believe the quicker that we pass this bill, the better that the residents will be. Before we know it '08 will be here.
Are there any other questions? Councilman Nutter.
Madam Chair, is 50 10/14/04 - APPROPRIATIONS - BILL 040760 there anyone from the City Administration here?
Is there anyone here from the Administration? (No response.)
The reason I ask, Madam Chair, is I was trying to get a little better understanding. Councilwoman Blackwell over the past couple years, we share a significant part of the El project, and the Councilwoman has it literally from when it comes out of the ground from Center City. What I wanted to know from the City Administration is what level of support and cooperation and coordination might be put forward to deal with certainly the business people, some of these parking, the NTI issues. The Councilwoman has obviously been carrying a great share of the load trying to make a variety of arrangements and we've done some things jointly, but it would seem to me that given the massive nature of the project, the length of time -- this project is not scheduled to be completed '08, '09 if we're 51 10/14/04 - APPROPRIATIONS - BILL 040760 lucky. We have a long road to go. And it would seem to me that much more attention should be put forward and resources because I know the City Administration cares about the neighborhoods; clearly, very focused on those kinds of issues. But this is the type of project that really needs that kind of support. So if any administration representatives were here, I just wanted to ask them for a plan of how we would better coordinate all of our various efforts. Unfortunately, they are not presently here. Obviously, SEPTA needs to be a part of that as well. So I think these residents, these great residents of West Philadelphia deserve that much more support. As the Councilwoman said, we may not be able to fully compensate them for losses. We're trying to make what efforts we can. But I think when everyone is participating in a plan, it could help things go a little smoother. So maybe we'll get a response. 52 10/14/04 - APPROPRIATIONS - BILL 040760
Good afternoon. My name Donna Sterling and I'm from 63rd Street, 63rd and Market. We have a business on Market Street. The business, I've been there about 10 years. My business since 2002, it has fallen down, I would say, 100 percent. I have no business. This summer I really closed down. But I really closed down to renovate my building because of all the construction, the buildings are so dirty. The inside is dirty. The outside is dirty. The sidewalks are cracked up. I've lost 100 percent of my business. I'm getting ready now to go get some financial help, but I don't think I should have to get financial help and have to pay a monthly loan. I can't even pay my 53 10/14/04 - APPROPRIATIONS - BILL 040760 monthly bills as it is. I'm looking for some sort of financial help, and I am here to vote the bill in.
Thank you. Thank you for coming in, too. Yes, ma'am.
My name is Wanda Glover. I also have a business at 6237 market. I'm in the process relocating. The partnership group has helped me with the relocation, but I have to take out loans and refinance my home just to keep up. There's no 14 grant money. It's like I'm deeper in debt than I was before, before all of this started. I have no problem with loans or anything like that, I just wasn't ready for that at this particular time. My customers come to get their hair done, they get a boot on their car, get a ticket. So they tell me, "I can't come up there any more." It's an inconvenience to have to get hair done and pay a parking ticket at the same time. I had my car ticketed yesterday for parking tickets on Market Street 54 10/14/04 - APPROPRIATIONS - BILL 040760 and I have a business there. I pay rent, I pay bills.
So evidently, you're in favor of this bill as well?
In terms of tickets, we thought that problem was solved. Nobody should be getting tickets or have their cars booted. If you see me or see Alisa in my office, we'll work with you. We had meetings with all these departments. And apparently, times change and other people come in and the problems start over again. But if you keep in touch with us and my office at 408 City Hall, we'll try to deal with that issue. That's terrible.
Thank you, Madam Chair. I just have a question for 55 10/14/04 - APPROPRIATIONS - BILL 040760 Councilwoman Blackwell. Councilwoman, do you know if SEPTA has an office located at the construction site to work with the community groups on a daily basis for different problems that may arise on any particular day?
They have an office at 54th and Chestnut. But sometimes it's open and sometimes it isn't.
Because we had the same problem up in Frankford when they started the construction from Bridge and Pratt all the way down. They did put up a headquarters or at least an office where people could go into and give them their complaints or whatnot and tell them what kind of services they need or help they need.
And they have someone on site, a gentleman named Mike Tucker who's out there everyday. They have people out there, but it's like --
They are 56 10/14/04 - APPROPRIATIONS - BILL 040760 empowered to deal with one issue at a time. They will never -- SEPTA won't make it easy for everybody all the time. We had this traffic stuff worked out. They shouldn't be getting tickets. We met with Parking Authority. We met with the Lights Department. We met with the Streets Department. We did all this, and now we have to do it all over again. It's just so unfair to businesses who have to still pay taxes try to find a way to survive and feed their families. It's just not fair that people aren't given the respect of given a chance to survive in our City on our commercial corridors. It's just so unfair. And you feel bad about it all the time because no matter how many problems you solve, SEPTA start again the next day with the same problems over and over. But we're going to stay with them I'm hopeful that when we have these hearings on or about November the 10th when we have these hearings that we can have a full discussion and have enough people here from the City as well as SEPTA to try to 57 10/14/04 - APPROPRIATIONS - BILL 040760 maybe formalize it. And we'll bring old records about the lighting we created and all of those things so that people will have a better idea of what system is in place. Thank you, Councilman.
Thank you. I believe that ends our public hearing. - - - - 58 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON APPROPRIATIONS - - - - Thursday, October 14, 2004 - - - - Public meeting conducted by the Committee on Appropriations, held in Room 400, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILLS 040760, 040779. PRESENT: COUNCILWOMAN JOAN KRAJEWSKI, Chair COUNCIL PRESIDENT ANNA C. VERNA COUNCILMAN W. WILSON GOODE COUNCILMAN JACK KELLY COUNCILMAN FRANK DICICCO COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN BRIAN O'NEILL COUNCILMAN JAMES KENNEY COUNCILMAN DARRELL CLARKE COUNCILWOMAN DONNA REED MILLER COUNCILMAN JUAN RAMOS COUNCILMAN MICHAEL NUTTER 59 10/14/04 - APPROPRIATIONS - PUBLIC MEETING
We'll go into our public meeting. The Chair recognizes Councilman Goode for Bill 040760.
Thank you, Madam Chair. I move that Bill 040760 be reported out of the Committee with a favorable recommendation, a further recommendation that the Rules of Council be suspended so as to permit first reading at your next Council session.
Therefor, Bill 040760 will be reported out of this Committee with a favorable recommendation with a suspension of Rules so as to permit first reading at the next Session of Council. I believe Councilman Mariano just arrived. The Chair recognizes Councilman 60 10/14/04 - APPROPRIATIONS - PUBLIC MEETING DiCicco.
Thank you, Madam Chair. I have an amendment I believe that all Members of the Committee have a copy. I would move that this amendment be accepted. (Duly seconded.)
I move that Bill No. 040770, as amended, be reported out of this Committee with favorable recommendation and that the Rules of Council be suspended.
Therefor, Bill 040779, as amended, will be reported out 61 10/14/04 - APPROPRIATIONS - PUBLIC MEETING of this Committee with a favorable recommendation with a suspension of the Rules so as permit first reading at our next Session of Council. That ends our public hearing on appropriations. And thank you all very much. (Council adjourned at 2:20 p.m.) - - - - 62 C E R T I F I C A T I O N. I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of October 14, 2004, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE ON APPROPRIATIONS _________________________ Lisa C. Bradley, RPR