COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - - Room 400, City Hall Philadelphia, Pennsylvania Thursday, December 16, 2004 TIME - - - - BILL 040701, an ordinance approving certain contracts and transactions... BILL 041045, an ordinance amending Bill No. 12 990728... PRESENT: COUNCILMAN DARRELL CLARKE, Chair COUNCIL PRESIDENT ANNA VERNA COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN TASCO COUNCILMAN JUAN RAMOS COUNCILMAN JACK KELLY COUNCILWOMAN DONNA REED MILLER - - - - 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 040701 PAGE JANET PARRISH, Phila. Gas Commission... BILL 041045 KENNETH SIPOS, Public Property......... 7 8 3 12/16/04 - PUBLIC PROPERTY - BILL 040701
Good morning. This is the Committee on Public Property and Public Works. We have a quorum present. Councilman Frank Rizzo, Councilwoman Marian Tasco, to my right, Councilman Juan Ramos, the Council President is also available. Will the Clerk please read the title of the first bill.
Bill 040701, an ordinance approving certain contracts and transactions arising thereunder for the purchase, storage, distribution and transportation and or transmission of natural gas entered into by the Philadelphia Facilities Management Corporation on behalf of the Philadelphia Gas Works, under certain terms and conditions.
Good morning, Mr. Chairman. My name is Janet Parrish. I'm the Executive Director of the Philadelphia Gas Commission. Thank you for the opportunity to 4 12/16/04 - PUBLIC PROPERTY - BILL 040701 be here this morning on behalf of the Gas Commission to present this testimony in support of Bill No. 040701. We have submitted written testimony, of course, for you committee and that does have three appendices. The first of those is the Gas Commission's order and resolution, dated June 25, 2004.
Excuse me. Could you please turn up the mic and hold the noise down, please. Thank you.
Is the order in which the Gas Commission approved these contracts that are at issue here, and also recommended to Council its approval as well. As you recall, we've been before your Committee several times, a couple times in the past recent months on related issues. Those bills, 040367 in which eight gas contracts were approved after the fact, and also 040558 which was creating the pre-authorization framework for PGW to enter into certain gas purchase contracts were both approved by Council on June 21, 2004. The 5 12/16/04 - PUBLIC PROPERTY - BILL 040701 timing is such that with this particular contract that's at issue here. It's in essence an amendment to one of the eight contracts that this Council already approved. However, it was entered into the end of April 2004, in other words, prior to the passage of the other two ordinances. So therefore, this one had to be submitted for a separate approval. Without belaboring the approval process, I think you're now familiar with that under the management agreement for pre-approval of certain contracts and post-approval of others. Let me just note that PGW entered into this transaction at the end of April in order to secure gas supply for this winter season that is actually now upon us literally as of today. And the particulars of the transaction are set forth in our written testimony as well as in the ordinance 22 itself. And just very briefly, so you have that before you, we're talking about a purchase of close to $60 million of gas 6 12/16/04 - PUBLIC PROPERTY - BILL 040701 supply. That constitutes about 15 percent of PGW's total firm gas supply. And those volumes have already been delivered. They were delivered in the period of May through September of this year. And rather than paying the cost upfront, this transaction permitted PGW to pay in essence through the winter months as the gas was being used. The total purchase price does include approximately a $3 million premium on the transaction effectively its interest because of the deferred payment terms. And as I said, the Gas Commission has approved these contracts already and does recommend your favorable treatment of this bill. We also are asking for a suspension of the Rules so that first reading can occur at the next Council Session. I'll be happy to answer any questions you may have.
Let the record reflect that Councilman Jack Kelly and Councilwoman Donna Miller are also present. Are there any questions of this 7 12/16/04 - PUBLIC PROPERTY - BILL 041045 witness by Members of the Committee? (No response.)
There being none, thank you very much for your testimony.
Thank you. Will the Clerk read the title of the next bill?
Bill No. 041045, an ordinance amending Bill No. 990728, approved December 6, 1999, entitled "An ordinance 16 authorizing the Commissioner of Public Property to convey to the Redevelopment Authority of Philadelphia certain premises located at 1823-35 Callowhill Street, and authorizing the Commissioner of Public Property to enter into or execute such other instruments that may be necessary or desirable to effectuate the provisions of this ordinance; all under certain terms and conditions," by extending the time for 8 12/16/04 - PUBLIC PROPERTY - BILL 041045 compliance with conditions until December 31, 2005.
Good morning, Chairman Clarke and Members of the Committee. My name is Ken Sipos. I'm with the Department of Public Property. This bill will permit an extension of time for the City to transfer a certain property located at 1823-35 Callowhill Street to the Redevelopment Authority for further transfer to the Children's Crisis Treatment Center who have been the sole tenant of this building since November 30, 1978, and they will become the ultimate owner of the building. The property consist of a three-story masonry building with 12,166 square feet. The Department acquired the property in 1947. The Department supports the measure and I ask that Council approve the Bill 24 041045. I also ask the Rules be suspended so the ordinance may be passed upon the second 9 12/16/04 - PUBLIC PROPERTY - BILL 041045 reading at Council.
Thank you. Are there any questions of this witness by Members of the Committee? (No response.)
There being none, thank you for your testimony. Anyone else to testify on this bill? (No response.)
There being none, I'd also recognize Council President Verna is present at this particular Committee hearing. No one else to testify on either of the bills, we will now go from our public hearing into our public meeting. - - - - 10 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - - Thursday, December 16, 2004 - - - - Public meeting conducted by the Committee on Public Property and Public Works, held in Room 400, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILL 040701, 041045. PRESENT: COUNCILMAN DARRELL CLARKE, Chair COUNCIL PRESIDENT ANNA VERNA COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN TASCO COUNCILMAN JUAN RAMOS COUNCILMAN JACK KELLY COUNCILWOMAN DONNA REED MILLER 11 12/16/04 - PUBLIC PROPERTY - PUBLIC MEETING
I ask Councilwoman Tasco to make a motion on Bill 4 No. 040701.
Mr. Chair, I move that Bill 040701 be voted out of Committee with a favorable recommendation and that the Council Rules be suspended so as to have first reading on this bill at the next Council Session.
The ayes have it. Councilman Ramos, please make a motion on Bill No. 041045.
Thank you, Mr. Chairman. I move that Bill No. 041045 be reported out of Committee with a favorable 12 12/16/04 - PUBLIC PROPERTY - PUBLIC MEETING recommendation, and further move that the Rules of Council be suspended to permit first reading of this bill at our next Council Meeting. (Duly seconded.)
Thank you. Let the record reflect that Bill No. 13 040701 and Bill 041045 will be reported out of this Committee with a favorable recommendation and the Rules will be suspended as to allow reading at the next Session of Council. Thank you very much. This concludes the public meeting. (Council adjourned at CK.) - - - - 13 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 Thursday, December 16, 2004, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS _________________________ Lisa C. Bradley, RPR