Mr. Shelkrot, with all due respect, I think the paint analogy is an inapt one. That isn't apples and apples. 1996 technology or 1998 technology and 2007 technology, or whenever the Central library addition will be on board, is not the same thing. All I'm looking -- I think it was mentioned earlier. People aren't here to criticize, at least that's not the way we start from. But in terms of trying to help you, I'm trying to -- if I help my constituents and they have better library services, they have a more advanced library, technologically speaking, I'm helping the library system as well, and I'm trying to get you to -- if you don't have the numbers, can you get us that?
Sure. I can get the number and I can tell you -- 119 Whole - 5/4/04 - Bill No. 020455
Okay. I can get the number for you and I can tell you that it is -- that upgrade of all the computers in the branches and regional libraries will take place in '05 and '06, because it's under an ongoing program. But we have never done any renovation of any consequence or upgrade at the Central library. But there is a program of constant renovation for the branches, and I'll get you the dollar figures for it.
Okay. I know the cuts are severe this year, the unmentionables, as Councilman Nutter referred to. The state really threw a knockout punch or a near knockout punch at you last year. I'm looking at the 9.4 reduction to 5.9 million. And then coming back this year with only a ten percent increase after, I guess, close to a 40 percent cut. That's pretty devastating. And it was devastating last year and it's going to 120 Whole - 5/4/04 - Bill No. 020455 continue, because now you're getting the cumulative hit but for the ten percent increase. So over two years, the cut is somewhere around 6 million or so, the state cut, based on the '03 level. I've got a question. The City spends a lot of money on lobbyists, some pretty high-powered professional lobbyists, and I know they work hard. I just wonder if you could explain to us, do you ever get to talk to them?
And do they correspond with you regularly that they are so successful, they were able to have you only get a $3 million cut this year from your '03 level instead of 3.5 like last year? I mean, I just would like to have some idea where that priority is with us. I mean, last week there was an announcement that we were going to lose, I don't know, three-quarters of a million dollars from the Welcome America pot from the state that we go to Welcome America. And 121 Whole - 5/4/04 - Bill No. 020455 yesterday before it was announced that it was going back in within a few days of it being announced it wasn't going to be in, the Administration was on the radio saying that they'd be able to make it up with corporate giving, it wasn't that bad a thing. They were putting a happy face on it, which is fine, but the libraries lost three and a half million last year, about three million this year, and I haven't seen any kind of ruckus like I heard for two straight days over Welcome America, funding for parades and fireworks. Not that that's not important, but I would hope we don't come to put it above libraries. And whether it's public relations, whether it's lobbying, it seems like the public is much more aware that they're getting their fireworks back than they are even at what they've lost and are going to lose again this year from what had been pretty steady state funding. So I really want to deal with the lobbying question, because that to me -- we're being let down by our lobbyists and our public 122 Whole - 5/4/04 - Bill No. 020455 relations people if that's what's happening, before we ever get to what the City is contemplating doing this year.
The state funding is a statewide issue, and the libraries and the library associations and the friends of libraries have been extremely active, as has our own friends of libraries and the lobbyists. As we went through the process last year, we were being -- the legislators said they had nothing that even compared to the kind of pressure and communications, as well as the Administration said the same thing. Now, we were quite encouraged at various times with promises that were made. It didn't happen. We are working and the lobbyists are working, and throughout the state there is a great deal of activity. Philadelphia will be and has been, people have been writing to their legislators, they have been working with the lobbyists. And the response to us is, All right, we didn't get what we wanted last year, but don't 123 Whole - 5/4/04 - Bill No. 020455 give up now, because sometimes it takes longer.
Do you have any indication that there's going to be any more than the ten percent increase after the three and a half million dollar cut the year before this year, because you only have less than 60 days for the state budget.
No. There is some indication that one problem with a State Senator has been ironed out. Sometimes things get down to local issues and local unhappiness. And in the central part of the state, one important Senator, we didn't realize until the end of the year -- until December, as a matter of fact, was very upset with something. When that was determined, there was an accommodation worked out and that Senator is very encouraging. He did not, however, say that he would expect a full restoration, but something considerably more than the ten percent. And we're continuing to work that way across the state.
I can just 124 Whole - 5/4/04 - Bill No. 020455 leave you with this: You mentioned one important Senator. There are no unimportant Senators. In fact, they are so important, that you just have to ask them why they insist on being called Senator and nothing else. It's the House of Lords. They are very, very important individually and collectively, and from what I understand, when one Senator is upset or when one of the Lords is upset, they're all upset. So I'm glad you're working on it. I hope you have more success than you had last year, and I hope our lobbying dollars --
I think we're encouraging and the friends of the library are encouraging everybody to send the letters to make sure that the Senators and Representatives know how important libraries are.
There's no 22 copyright. Feel free to use the Welcome America analogy. Thank you.
Thank 125 Whole - 5/4/04 - Bill No. 020455 you very much. The Chair recognizes Councilman Kenney.
Thank you, Madam President. Mr. Shelkrot, let me give you a little bit of advice, going back to Councilman O'Neill's point. If we're being asked to put up $30 million for a Central library expansion and renovation, which I think is extremely worthwhile, find the number that he needs to understand that a regional library in his district could experience the same kind of excitement, despite what you've done already, despite what you've done already, because if we're going to borrow 30, what's the difference in borrowing 40 or 45. If you can get the votes you need together and get other people in their districts something that they can point to, because Councilman is right, in the Northeast and other places, a lot of people don't go into town a lot. But it does generate more enthusiasm and excitement for your Central project, which makes sense, but 126 Whole - 5/4/04 - Bill No. 020455 at the same time, can get other people where they want to be. So just get the number. If it's doable, it's doable. If it's not, it's not, but at least we'll know what the number is.
I feel kind of sorry, to tell you the truth, for people like yourself, the library people, the Art Museum people, the Rec people who come in here and get battered around by us on things that you really don't have much control over, because you didn't do this budget. This budget was done to you. And what I don't get and what I don't think the Administration gets is that of the $11 million or so that's involved with these kinds of cuts, they all deal with kids. And you can talk about the year of the child and the child's report card, the annual report card and it's all about the kids and we're here for the kids and don't forget the kids. The first place that this budget gets cut, not runaway overtime, not runaway police overtime, not unaccounted 127 Whole - 5/4/04 - Bill No. 020455 overtime, not all the stuff that we waste and really haven't even paid attention to yet, and hopefully this Council will, it's $11 million in cuts that deal with kids. Reduction in programs to outreach for kids in -- urban kids in the Art Museum. Very successful program. Closure of libraries, closure of rec centers, sale of ice rinks. I don't get it, and I feel sorry when I'm either in my office listening or here watching Councilman Nutter and other people grill you on something that you really don't have any control over. And I think that what this Council needs to do is to find the 11 million or so or maybe even a little more in this budget, and it's there, it's definitely there, and there are areas that we've already privately discussed, and put it back, just put it back where it belongs so that you can continue at least to do the minimal service you've been able to do over the last four years with very dedicated people. And the departments that we're talking about, rec and library, for example, I think probably have 128 Whole - 5/4/04 - Bill No. 020455 the most dedicated, unselfish people on the City payroll. They do things without overtime. They do things because they're doing something on a Saturday or doing something on a holiday. They go out and do it, and they don't whine and they don't ask for extra money. So I think this Council needs to really sit down with each other and figure out a way to find that 11, 12, million dollars 12 and put it back where it belongs. 13 One thing I want to caution, 14 however, is, if we do that, we do not have the 15 authority or ability to force the Mayor to spend it that way. Our job ends when this budget is completed. And if we move money around and put money in certain places, put money back where it belongs and we send him the budget, he can veto it or he can ignore it and do what he wants to do anyway. But I just get increasingly disappointed and saddened that people like yourself have to come in here and get grilled on something that was handed to you and you 129 Whole - 5/4/04 - Bill No. 020455 have to go out and defend it, and to me it's just simply unfair. I just want to ask you one operational question. Have you looked at the possibility of maybe closing on a Monday to find a way to keep it open on a Saturday? Like restaurants always have one day off, the barber shop has one day closed to recover, but does it make sense to kind of maybe close on a Monday and open on a Saturday? I know it's probably not comparable when it comes to payroll, but it's got to be close.
No. The conundrum, if you will, for libraries is that Monday is the busiest day of the week.
It is? All right. Is there another day that you're slow?
Well, we go through the week and we look for what is the -- and we've even looked should we not be open mornings or should we not be open evenings, and no matter where we look, we find that we are penalizing some significant part of the population. 130 Whole - 5/4/04 - Bill No. 020455 Saturdays is certainly not the least busy day. I mean, as you look through the week, there are ups and downs, but it varies. What I'm trying to say, Councilman, is that there is no easy answer. There is no 7 clear one day of the week that is least used so that we could close. If we closed on a Friday, let's say, then our after-school program is shot. And that's part of the dilemma. We don't want to create an after-school program that's after school for only four days of the school week.
Well, if you've looked at it and studied it and can't figure it out and it doesn't make sense, then I understand. It just seemed to me that whatever the least busy day was perhaps could make up for Saturday, but if you've examined it and you're really robbing Peter to pay Paul, it's not --
Just one final comment on the Central branch process. 131 Whole - 5/4/04 - Bill No. 020455 I want to commend you and your staff. I think it was one of the best public processes I've seen when it comes to a capital project this size. Everything was open and above board and done in the public. I think it's generated a lot of enthusiasm. I think the selection of the design architect was tremendous. We were going to get a great product out of this. And one of the things I've always liked to see was our Central library become perhaps as famous and as visited as the New York City Central branch, where it's actually its own tourist attraction. And I think it's going to enhance the Parkway tremendously. But I just want to compliment you on the process. You kept the public involved. It was very professionally done, professionally handled. And the one thing I would advise the people who are looking at Penns Landing is to try to replicate that project and get it out in the public so we can generate some support and enthusiasm amongst the taxpayers and the citizens. So thanks. 132 Whole - 5/4/04 - Bill No. 020455
Thank you. The Chair recognizes Councilman Rizzo.
Thank you, Madam Chair. First of all, Mr. Shelkrot and your staff, I want to thank you for -- and I won't be specific, but I brought a concern recently to you, and I thank you and your staff's immediate response to that need. What I'd like to ask and you haven't at least -- if you did, I missed it. How much would it cost -- we went from 15 to 17, and I'd like to know, are there any more in the pipeline than that 17 to close for Saturdays? How much money will it cost to keep these libraries open? I haven't heard a number. How much money do you need to keep the 17, and is this list going to grow beyond 17?
Councilman, let me first say that the list will only grow if 133 Whole - 5/4/04 - Bill No. 020455 the attrition continues to grow throughout this month. I don't know if anybody has at this moment an idea of exactly -- we can tell when people announce the retirement, but sometimes they stop work and let their accumulated pay, et cetera, et cetera, cover some time, and the fact is that we don't have them on board. So we can try to estimate what a person's intentions are once they reach retirement or approach retirement, I should say. And we can try to put that together for you, but in terms of the amount of money that we would need, we do have an estimate that we put together for that and I mentioned it earlier, I believe, that an additional one point --
1.3 million. I said that before. What we need is an additional 30 full-time and an additional 20 part-time people.
So you're 134 Whole - 5/4/04 - Bill No. 020455 talking $1.3 million stops any future closings on Saturdays and will reopen all that are 4 presently closed? 5
Tell me 7 about part time. It seems as though your 8 operation is a natural for part-time workers, 9 and I don't really hear a lot about additional 10 part-timers or what contractually you're 11 allowed to do, what the relationship is with 12 the union. But it doesn't sound to me as 13 though a system this big has utilized 14 part-time help to the degree that you could, 15 if you can. 16
No, no. We had -- there are 67 scheduled to be in the '05 budget.
How many are on 135 Whole - 5/4/04 - Bill No. 020455 board at this time? I believe -- well, Kevin, you have that information.
It would depend on the position. There would be a part-time laborer and it could be a part-time library assistant. I can get you those numbers.
A ballpark. All right. Forget that. My point being here is that it sounds to me that this is a process that should be utilized a bit more than it is, especially if you're not going to get additional full-time people.
Let me explain one of the challenges, if you will, in part-time people. When we need them, often the people who are willing to work part time 136 Whole - 5/4/04 - Bill No. 020455 have families. There are certainly some people who have jobs and are willing to work a second job, but regardless of whether it's a second job or whether it's a person who only wants to work part time, they are seldom available at the hours that we need the extra staff; in other words, after school hours, evening -- well, evening sometimes, but after school hours are very, very difficult for us to --
Well, I honestly think that you need -- I consider this an emergency. And I don't know whether you need maybe to get some type of an exemption temporarily to bring back some retired people and let them work part time. I know that's a no-no in many cases in government. But I think right now that you got to get creative. You don't have a whole lot of money to deal with, and the full-time positions, which are obviously the most important position that you could fill, but if you're not going to get those, that you shift some money around to get some part-time people 137 Whole - 5/4/04 - Bill No. 020455 that want to work. I know a lot of people that work part time at Home Depot and Lowes and a lot of places, and I don't particularly buy into what you just described about the part-timers not willing to work. Then they shouldn't be considered part-time workers if they're not willing to work. They shouldn't even be on the roll as a part-time worker if they're not willing to support your need. When we hear about libraries 13 closed, really management-wise you have to do 14 something to make it work, and if part time is 15 a way to make it work, then do it. 16
No. I agree with you, and that million three that I said, that does include some 20 seasonal or part-time workers. And we do recruit for them, but when there is a freeze across the board and we don't have the money to pay for them, then we don't have the money to pay for 138 Whole - 5/4/04 - Bill No. 020455 them, which is currently the situation. As the new year comes along, if there is some relief from the state or somehow, our goal is to have nearly a hundred part-time workers across the City.
Would you please let us know what the job requirement is for that position? Because if you have people that are on the rolls right now carried part time and aren't performing, they should be out of there.
I'd like to know -- and if you can provide what the job requirement, what the specs are to the Chair, I'll make sure that the word gets out there and you get some people. There's obviously money in the budget for these 60 people that aren't working, right?
Well, there is not more money in the budget at this time. There will be money in the budget when we start the new fiscal year.
Okay. So 139 Whole - 5/4/04 - Bill No. 020455 I'd appreciate knowing what the requirement is to be a librarian.
You're welcome. The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. Councilwoman Blondell Reynolds Brown is not here and has asked me to submit these requests for you. We thank you. We love our Walnut West branch, and certainly we are not happy with any cuts to our library system. I've been here long enough to have seen us fight to get this far, and we hate to see any roll-back. So we're definitely on your side in this issue. For her, I will make the following requests: She's requesting, and you can submit them to the Chair and she'll have them. 140 Whole - 5/4/04 - Bill No. 020455 One, a list of upper level management broken down by race and gender; number two, how large is the budget cut and what will have to be cut; three, minority participation goals for the expansion of the Central branch. Is it possible to get this information?
Yes, absolutely. Some of that I could provide now, but why don't I put it all together in writing for the Council President to distribute.
Thank you. Thank you very much. Thank you, Madam President.
Thank you. Are there any other questions or comments from Members of the Committee? (No response.)
You've been very patient. The Human Relations Commission is next. Good afternoon. Kindly identify yourself for the record and proceed with your testimony.
Good afternoon, President Verna and Members of City Council. I would like to thank you for the opportunity to speak today. My name is Rachel Lawton.
My name is Rachel Lawton. I'm the Acting Executive Director of the Philadelphia Commission on Human Relations, PCHR, the City agency charged with enforcing civil rights laws under the Philadelphia Fair Practices Ordinance. I am here today with Jackie Henry, who is our Assistant Director of Administration and Budget. PCHR is also charged with addressing all matters of inter-group conflict and 142 Whole - 5/4/04 - Bill No. 020455 neighborhood disputes within the City. In addition, we provide staff for the City's Fair Housing Commission. The Fair Housing Commission is charged with addressing unfair rental practices in the City. The Commission on Human Relations and the Fair Housing Commission are requesting a combined budget of $2,259,408 in fiscal year 2005, which reflects $20,465 less than fiscal year 2004 estimated obligations. PCHR is authorized 40 staff positions, which is a decrease of one position from the number of fiscal year '04 filled positions. These fund reductions will help offset the City's projected deficit. PCHR, through a contract with the United States Equal Employment Opportunity Commission, EEOC, investigated discrimination complaints that have been filed with both agencies. PCHR received a work-sharing contract with the EEOC to investigate 321 complaints in federal fiscal year 2003 and was paid $500 per case, generating $161,600, which included $1,100 for training. A total of 143 Whole - 5/4/04 - Bill No. 020455 $215,850 was received from the EEOC during fiscal year 2003 due to additional payments from the previous federal fiscal year. In federal fiscal year '04, PCHR received a contract from the EEOC for $168,500. PCHR anticipates receiving a similar size contract in federal fiscal year '05 due to the fact that contracts are directly tied to the previous year's productivity and we are on track to close as many cases this year as we did last. In fiscal year 2003, the PCHR investigated and closed a total of 382 discrimination cases and negotiated $627,928 in settlements for complainants. To date in fiscal year '04, PCHR has closed 269 discrimination cases and we project that we will close approximately 383 cases by the end of fiscal year '04. Projections for fiscal year '05 are to close 421 cases. While settlement amounts are difficult to predict, staff anticipates complainants receiving well over $500,000 in fiscal year '05 from negotiated settlements. 144 Whole - 5/4/04 - Bill No. 020455 A significant portion of staff time is spent doing outreach into the various ethnic Philadelphia communities. By virtue of our mandate, we educate the broader community about its rights and responsibilities under the City's Fair Practices Ordinance. We also acted as the trusted bridge of communication among many groups in Philadelphia. To accomplish the latter, PCHR provided a variety of services in the community. As you will see below, these outreach efforts served residents of this City well in the past year. PCHR continued its effort to reach out to some of Philadelphia's newest immigrants and refugees. This included aiding Pennsylvania Immigration Citizenship Coalition, arranging a police workshop on protecting the rights of immigrants, assisting the Pan Asian Association of Greater Philadelphia and meeting with school officials teaching African immigrant students problem-solving skills. In response to tensions that were 145 Whole - 5/4/04 - Bill No. 020455 reported to PCHR between students, staff began working with schools on several projects to promote better communication. PCHR helped one school recruit a full-time bilingual counselor and helped to implement a better safety system for Chinese students. PCHR also assisted schools in forming a student association and worked to address racial tension and promote cultural diversity.
We also helped form a task force of school administrators, school security, City police and interested agencies to make schools a safer place where students of many races and ethnicities can learn together in a peaceful environment. PCHR also mediated disputes involving African immigrant students and other students at a middle school, as well as a high school teen who got into a fight because of perceptions regarding his sexual orientation. Staff worked with organizations to offer counseling to this teen. In another incident, PCHR was asked by school administrators to diffuse an 146 Whole - 5/4/04 - Bill No. 020455 inter-group event in a high school. A white student used racial slurs and a black student wanted to retaliate. Staff met with both students and an agreement was developed. PCHR also worked with the Latino Workforce Development Task Force in developing strategy for the year. The LWDT mission is to increase and improve conditions for employment among Latinos. PCHR assisted a Chinese family following an attack at their take-out restaurant. In addition to assisting the family, PCHR contacted crime victim's compensation, interviewed Asian and African-American neighbors and involved appropriate police units, as well as Philadelphia Anti-Drug/Anti-Violence Network. PCHR monitored several demonstrations in Center City this past year. Staff's role was to observe and facilitate communication between authorities and demonstrators, insure individual civil rights and to avoid any potential negative impact on nearby neighborhoods. 147 Whole - 5/4/04 - Bill No. 020455 One of the demonstrations protested the registration of immigrants. Another demonstration protested national public radio's pro-Palestinian, anti-Israel perceived news bias. Another demonstration followed a World Affairs Council event that featured guest speaker Archbishop Desmond Tutu. PCHR monitored a demonstration and protest of a Chinese restaurant. Our involvement was requested by the Captain of the district police. Staff interviewed all participants in the situation and monitored the event. We also set up a meeting between all factions and assisted in bringing about an informal agreement between the parties. PCHR led discussion groups on resolving disputes with your neighbor at the Third Annual Neighborhood Summit in West Mount Airy. PCHR facilitated a meeting of neighbors in North Philadelphia who were seeking help in dealing with neighbor-to-neighbor issues, some of which were possibly of a criminal nature. PCHR's 148 Whole - 5/4/04 - Bill No. 020455 staff enlisted the help of the block captain. The results was a multi-faceted plan of action that involved residents, town watch, local police and its narcotics unit, the Philadelphia Anti-Drug/Anti-Violence Network, the Department of License and Inspection, Philadelphia More Beautiful Committee and the PCHR. PCHR also participated at Vare Beacon Community School in the Student Problem Identification and Resolution of Issues Together Program, or SPIRIT, sponsored by the United States Department of Justice. PCHR participated as a facilitator to assist school administrators in gaining insight into students' perceptions of racial problems. PCHR helped to develop at William Penn High School a safety dialogue to address violence around school areas. PCHR was to bridge relationships between area business owners and the school. PCHR invited an area of Chinese store owners suspected of allowing students to gather at his store during school hours. We also invited Philadelphia 149 Whole - 5/4/04 - Bill No. 020455 Anti-Drug/Anti-Violence Network and Operation Town Watch to join subsequent dialogues. PCHR was invited to attend a strategy meeting at a synagogue, Mishkan Shalom Synagogue, in the Manayunk and Roxborough area to discuss the third incident of vandalism during the past year. Staff suggested that the President and Rabbi invite the Captain of the police district.
The Captain offered support and protection for the congregation, as well as some crime prevention tips. Staff then developed proven steps that could make the congregation feel more welcomed as a member of the community. Staff scheduled formal mediation sessions in four police districts. One of these was requested by a municipal court judge to get disputants to talk things out. The case involved two PHA families that were facing eviction because of ongoing feuding. PHA wanted to evict both families, but the judge ruled that the families must first go through a PCHR mediation to see if any peaceful arrangement could be reached. A PCHR 150 Whole - 5/4/04 - Bill No. 020455 staff member was subpoenaed to testify regarding the outcome. Because a resolution 4 was reached by the parties, the judge ordered that both families could stay in their homes, provided that they adhere to the signed agreement. The agreement became part of the court order. PCHR arranged a meeting between Middle Eastern cab drivers and representatives of a police district. Some of the drivers had been harassed by African-American youth while driving. The discussion focused on the reported incidents. None of the incidents involving Middle Eastern drivers were reported to police. A preventive plan was established that called for a Middle Eastern leader to educate all Middle Eastern drivers about the importance of timely and appropriate police reports, conducting an immediate roll-call complaint in the general area and establishing periodic communication between the Middle Eastern leader and the Community Relations officer, with the PCHR as their liaison. 151 Whole - 5/4/04 - Bill No. 020455 PCHR was called --
If you could just abbreviate it, the stenographer does have a copy and she will transcribe it in full. (Please see attached.)
If you could simply abbreviate it, I'd appreciate it.
Okay. The last three examples really are more representative of the kinds of things that I've spoken about before, so I'll just simply summarize and say often what does not boil up into a major problem is a result of early intervention and information-sharing with the inter-agencies, Civil Rights Task Force and agencies throughout the City. 152 Whole - 5/4/04 - Bill No. 020455 In fiscal year '05, PCHR will continue to build and nurture a broad network of communication between immigrant groups, community organizations, schools and law enforcement to effectively respond to inter-group tension and promote understanding among the many races, religions and cultures that make up the great fabric of this City. This concludes my testimony, and at this time, I'd be happy to answer any questions.
Thank you. I don't think there's any. Councilman, do you have any questions? I don't.
But we do applaud you for the fine work you're doing. Thank you.
The next department is the City Rep and the Director of Commerce. 153 Whole - 5/4/04 - Bill No. 020455 Good afternoon.
May I offer a suggestion, please? We do have a copy of your testimony. It has been given to the stenographer. It will be transcribed in whole. If you can abbreviate your testimony, we would appreciate it. Thank you. (Please see attached.)
Madam President, I certainly intend to do that. Thank you very much. And because of the timing change, I have some other people who are planning to be here with me and they're on their way over. So if you don't mind, I'll introduce them when they get here.
Good morning, President Verna and Members of City Council. My name is Stephanie Naidoff and I'm the City Representative and Director of Commerce, and seated with me at this point at the table is Jeff Shull from the Department of Aviation. 154 Whole - 5/4/04 - Bill No. 020455 Jeff is here because, as you may know, Charlie Isdell's mother just died.
Sorry about that. We will have some other people, as I mentioned, in just a minute. I am not going to read my testimony. I'm going to just give you some of what I consider the highlights, if you don't mind.
With respect to the Office of the City Representative, I'd like to start there and talk about the fact that the proposed general fund budget includes $1 million in Class 500 dollars for the Philadelphia Cultural Fund. Utilizing an independent peer-review process, the Philadelphia Cultural Fund made grants during FY2004 to 220 local arts and cultural institutions. The proposed FY2005 Cultural Fund allocation of $1 million is a reduction from the larger allocations the City 155 Whole - 5/4/04 - Bill No. 020455 was able to provide in recent years. The Administration remains committed to supporting Philadelphia's cultural institutions, but in an amount consistent with the difficult budget constraints we're facing this year. The FY2005 $1 million allocation matches the Cultural Fund allocation of similarly lean economic times through the mid to late '90s. The Administration fully appreciates the concerns raised by members of the cultural community, media, funders and all those who have expressed a strong concern to continue funding cultural activities. The arts, of course, bring tremendous value to Philadelphia's quality of life and they are important engines in our regional economy. But the fact remains that the Administration faces very difficult fiscal choices and the City must focus on supporting the fundamental core services of municipal government, public safety, trash collection, public health, protection of our children, and we want to continue incremental tax 156 Whole - 5/4/04 - Bill No. 020455 reductions, which are deemed so critical by the residents and businesses of our City. Streamlining internal service delivery mechanisms is another key component of the City's strategy to lowering the cost of conducting business in the City, as outlined in our five-year plan. In that regard, the Office of Arts and Culture is proposed to be removed from the department's budget in FY2005, as we prepare to find new homes for those important functions within other appropriate offices of City government. This one effort to streamline the delivery of services through the larger initiative of right-sizing City government can provide for a total savings of over $400,000. And discussions are already underway with other departments that should be able to integrate important programs like the Percent for Art, the Art Commission and the sculpture conservation efforts in a way that improves the efficiency and effectiveness of program delivery. Despite the reductions, the City is 157 Whole - 5/4/04 - Bill No. 020455 and will continue to be a strong supporter of the arts. For example, the City will continue to support the Art Museum's costs by funding the entire utility bill, almost $2 million per year. 2 million in the FY2005 capital budget. My written testimony details other cultural organizations where the City is committing operating and capital money, and I won't go through that. It is on the record. In addition to the assistance that goes directly to organizations, City-related agencies spend a tremendous amount of funding on promotion of arts and culture activities and destinations. The Greater Philadelphia Tourism and Marketing Corporation, for example, will spend almost $6 million in FY2004 on advertising the region's tourism assets, largely referencing arts and cultural destinations. With regard to the Office of City Representative for Ceremonial and Special 158 Whole - 5/4/04 - Bill No. 020455 Events, in FY2005 it will also be home to the City's consolidated Public Relations Services unit. This is another example of the repositioning I've mentioned earlier and is designed to streamline and make more efficient how our government operates. By centralizing communication and public information activities for departments, we will increase capacity and consistency in terms of materials, outreach and media strategy. On the Commerce side of the department, I'd like to just mention briefly some of the new initiatives.
Philadelphia's business community has been energized by Mayor Street's commitment to making economic development the cornerstone of his second term. At the close of FY2004 and throughout 2005, the business community and the City are poised to begin a structured process of thoughtful reflection and planning that will direct the City in its evaluation and support of Philadelphia's economic 159 Whole - 5/4/04 - Bill No. 020455 development during the next four years. We're undertaking a comprehensive and strategic process which will begin with the Economic Development Summit initiative and will culminate with an Economic Development Blueprint that will serve as a strategic plan for all of the City's economic development investments for the rest of this term and hopefully beyond. To accomplish this, the Summit will be constituted as a series of events throughout the summer which will focus on, among other things, the following: Reducing and streamlining the cost of doing business in Philadelphia, evaluating the use and productivity of targeted incentives, encouraging increased neighborhood and minority business development, collaborating with regional, state and federal agencies, increasing the efficiency of the City's administration of economic development and improving the quality of the labor force. The hope for the Summit is that a broad range of constituents will participate. And the rest 160 Whole - 5/4/04 - Bill No. 020455 of that testimony is in written form. In addition to the Summit and Blueprint process, we're proposing a new $500 million economic development fund to tackle the challenges presented by declining neighborhoods and to create new neighborhoods. The fund will increase financial incentives, targeted outreach through place-based initiatives and major infrastructure improvements. " We're proposing to use this money to seed economic development at the Navy Yard, Delaware River North, Schuylkill River South and selected NTI neighborhoods. Full-scale planning for the development and use of the funds will occur during the Economic Development Blueprint process, and the Administration will come back to Council in the fall of 2004 before any funds are expended to present a more detailed 161 Whole - 5/4/04 - Bill No. 020455 plan for fund uses. With respect to large-scale development projects, I would just call your attention to the number of large projects that are detailed in my testimony, including the new condominium projects in Center City and the exciting effort out of the Civic Center that is being organized by the University of Pennsylvania and Children's Hospital. While much of our focus may be on neighborhood development, we will continue to support such major projects which generate thousands of jobs for our residents. My testimony also details retail development. I won't go into that and I'd like to turn to neighborhood economic development. It will continue to be a priority of this Administration and of the Department of Commerce. Commercial development in our neighborhoods is key and an integral part of our neighborhood transformation initiative. The City recognizes the value of small neighborhood businesses and the fact 162 Whole - 5/4/04 - Bill No. 020455 that convenient amenities serve to make a community more livable. Through grant and loan programs, capital projects and technical assistance, the City is projected to serve over 2,000 individual neighborhood businesses in 2004 alone. I'd Like to turn to the Business Attraction and Retention section and just point out that starting in March of 2002, the City and PIDC, working with the Center City District, began to visit the large businesses whose leases were going to be expiring over the next few years. That effort is formalized through biweekly meetings of a Corporate Retention/Attraction Committee consisting of Commerce, PIDC, Center City District, the Chamber of Commerce and the Governor's action team.
The majority of business retention activity has been completed, and because many of the tenants entered Philadelphia during the office boom of the mid '80s, these lease expirations were clustered around the same time period. 163 Whole - 5/4/04 - Bill No. 020455 We are proud to point out that at this point 80 out of 81 of the targeted companies have decided to remain in Philadelphia. So we will now be able to turn our attention to business attraction, and building on these recent successes, we'll try to be selling Philadelphia's story to regional, national and international corporations. To do this, the City was proposing investing $1 million over four years to partner with the Greater Philadelphia Chamber of Commerce in the Select Greater Philadelphia campaign. One other thing I'd like to point out in the business attraction and retention is the exciting student retention initiatives, like the Knowledge Industry Partnership, which has become a national model. It's a unique collaboration of universities, businesses and tourism leaders intending to foster programs, not only to bolster our economy and keep our work force strong, but obviously to attract, engage and retain our college students after 164 Whole - 5/4/04 - Bill No. 020455 they complete their studies here in Philadelphia. With regard to hospitality and tourism, I would just like to point out that in building on the continuing successes of the hospitality and tourism industry, expansion of the Convention Center continues to be a top priority of this Administration. Although a state authority owns the Convention Center, the City's hospitality industry benefits directly by the major conventions and meetings held in this facility. Because of the impact on one of the key sectors in the local economy, the City continues to advocate for additional state funding that will be needed to allow for the expansion. Unless we remain competitive in this critical market, the City could risk lost jobs, lost tax revenues and a withering hospitality community. Expansion of the Center to 700,000 square feet of exhibit space would make Philadelphia the eighth largest Center in the country. I'll turn to the Aviation Fund and 165 Whole - 5/4/04 - Bill No. 020455 point out that Philadelphia International Airport continues to be a driving force in the local economy, providing jobs for approximately 21,000 employees, working for over 200 employers. 2 billion to the regional economy. The most significant development of 2004 is the arrival of Southwest Airlines in Philadelphia. In 2003, the largest and most profitable low-fare carrier announced it would commence daily flights to seven cities in 14 May of 2004. Frontier Airlines, another low-fare carrier based in Denver, will initiate daily non-stop service to Los Angeles and Denver. The addition of Southwest and Frontier to our existing array of low-fare carriers will provide air travelers with lower cost alternatives to the established network carriers. A key ingredient in PHL's quest for increased international service and attraction of new entrant airlines has been the creation 166 Whole - 5/4/04 - Bill No. 020455 of new gate capacity. Since April of 2003, the airport has added new international 4 gates and expanded federal inspection service 5 areas. The airport, which contains 65 gates 6 as recently as May 2001, now has 120 gates. 7 An additional goal of the City is to 8 gain greater control over airport gates and 9 the related facilities. Under the Use and 10 Lease agreement with the scheduled airlines, 11 gates were leased exclusively. The airport 12 plans to begin negotiations on a new agreement 13 because the current one expires in June 2006, and one of our primary objectives will be for a shorter contract term and non-exclusivity of gates. There is also an expansion project which we detail in our testimony. That will not be completed under one of two options.
It won't be completed until either 2012 or 2015, so I'll leave that on the written record. The airport has proposed that it acquire the airport parking facilities. PHL is the only major airport that does not control its own parking operations. 167 Whole - 5/4/04 - Bill No. 7 million in net annual savings, as well as operational efficiencies and security, ground transportation and cash management. In closing, I want to acknowledge that this is truly a year of incredibly tough budget choices in difficult economic times, but it's also an opportunity for the City, indeed an obligation, for us to make some hard choices allowing for our world-class City to right-size and reposition itself for the future. I submit that fiscal discipline now is the only responsible course and will lead the way to dramatic improvements for Philadelphia's economic health and brighter times for us all. Thank you.
Thank you very much. Ms. Naidoff, on of your detail, you are eliminating arts and cultural funding for a savings of $380,000. Please explain what you are eliminating and your 168 Whole - 5/4/04 - Bill No. 020455 rationale.
of the budget. I'm sorry. That's the portion of the budget that proposes the elimination of the arts and culture unit of our department and the transfer of those functions to other departments of City government.
What other departments and do they appear in the budget? How do we save $380,000 by transferring to other departments?
We have begun conversations with other departments, and I'll be glad to go through the various functions and the departments to which we think they could transfer. We believe that the capacity exists within the existing departments to assume those functions. The Art Commission, for example, we 169 Whole - 5/4/04 - Bill No. 020455 believe would be appropriately placed with -- the oversight of that would be appropriately placed within the Planning Commission. It's a Charter-mandated design review board, and the other design-related services that are done in the Planning Commission make it a fairly natural fit. Would you like me to go through some of the others?
With regard to the art in City Hall exhibits, we are obviously very proud of that program and we believe that there is a demand for exhibit space in high-profile locations, such as City Hall, for our art education institutions and programs, and what we'd like to do here is to develop a partnership program with these institutions so that they might pick up some of the responsibility for curating such exhibits and then to work with the Department of Public Property, which would work with those institutions on an individual basis to 170 Whole - 5/4/04 - Bill No. 020455 coordinate the installation of the exhibits as we move forward. With respect to the sculpture conservation efforts, we believe that would be suitably placed with the Capital Programs Office. There's an opportunity there to better coordinate the work of the sculpture conservation unit and to streamline internal service delivery mechanisms. We think the Capital Programs Office could be an excellent --
Excuse me. I don't mean to interrupt you, but is the Capital Program Office aware of this? Because when they came in for their budget hearing, they certainly did not indicate this. I don't know that it's even in the budget.
I could go through all of them, but we have begun conversations on each of the programs that are currently --
It was about a 171 Whole - 5/4/04 - Bill No. 020455 month ago that we started. And we have had conversations with the Planning Commission, with the Capital Programs Office, with the Public Property department and have begun to talk about how we would implement these programs with existing staff of those departments.
And I assume that you're anticipating that these changes will commence July 1?
Again, as I said, we have no knowledge of that and it certainly does not reflect in the detailed budget.
I'm not sure there would be any increase in the budget, Madam President. I think what we're talking about --
Well, if you're transferring employees, it would have to reflect in the detailed budget.
Yes. I'm sorry. That part of it would be a functional transfer 172 Whole - 5/4/04 - Bill No. 020455 and obviously would take place after this Council would approve such a budget change.
You are reducing the funding to the cultural fund by over 50 percent. What impact will this have on the cultural community and what is your reasoning for these cuts?
I think that with respect to almost all of the reductions we're talking about, these are difficult choices, these are difficult times, and they are sad and unpopular decisions. We recognize that. But with respect to the constraints facing the City budget at this point, we think this is the only responsible course. We do believe that we can work with the cultural organizations, hopefully to find other mechanisms for support, and the Mayor has committed to do that personally. I will certainly be doing that. That's something I've spent a lot of time on in my past. And I think that there are a number of alternatives, such as the United Art Fund, which they have in cities like Charlotte and Pittsburgh, they 173 Whole - 5/4/04 - Bill No. 020455 have it in Delaware. There are opportunities to talk about regional dedicated funding streams. I think that there are a number of constructive solutions here, and sometimes the hardest times are what gives the incentive for people to come together and in a united way to try to find some of those solutions.
You made mention of the fact that we pay $2 million in utility bills to the Art Museum. That is our house. I mean, why would I expect somebody else to pay my utility bills? Isn't that our responsibility? I believe under the agreement of 1923, the City was obligated to pay all utilities and security charges and maintenance charges. I don't know why we boast about paying the utility bill. Aren't we obligated to do that?
I don't know about an agreement, but what I could say about the general principal of owning the building, that with respect to many of our other 174 Whole - 5/4/04 - Bill No. 020455 institutions, and I know this for a fact from the Kimmel Center, organizations have had to go out and raise the money to build their facility.
Well, I know that people from the Art Museum did take an agreement that was signed in 1923, I believe, which indicated what our responsibilities would be.
I would appreciate it if you would. Can you tell us what the total amount of funds the City has contracted with PIDC for economic stimulus programs?
I'm going to have to turn to my colleague, Peter Longstreth.
I'm afraid we don't have that information. Maybe we can just get back to you on that. 175 Whole - 5/4/04 - Bill No. 020455
We have to have that information. We have to have that information.
I'm not sure we have the total amount right at hand. The number that sort of comes to mind is $180 million. It's something of that magnitude. But we have the report and can provide you with all the detail. Obviously, this is a program that was funded rather generously four or five years ago to the tune of maybe $30 million a year, and in recent years it's closer to four, four and a half million dollars a year. So the cumulative number is something I'll get for you.
Well, I think when you get that number, Mr. Longstreth, out of that amount I'd like to know what has actually been spent by project since its inception, how much has been committed but not spent by project and date it was committed and the status of the pending projects. 176 Whole - 5/4/04 - Bill No. 020455
We certainly have all of that information and be happy to provide it.
And let us know what the balance of these uncommitted funds are.
I'll do that. There have been many, many transactions, so it's a lengthy report, but we have it and have it updated as of March.
We have transactions, but many of them have been committed but never complete. So we want to know just how much is in that fund.
Yes. That's precisely what's in the report and we'll get it to you.
Okay. Fine. I'd appreciate it. Thank you. Ms. Naidoff, how did you impact the Film Office? Because I know you were talking about the millions of dollars that we have been successful in leveraging in local economy. I do hope that there weren't any 177 Whole - 5/4/04 - Bill No. 020455 cuts made to that office, because I will tell you, I think they're doing a fabulous job and I know in my district alone, I think in the past maybe six months there have been a number of films that have been produced. Are they being cut in any way? I hope not.
But I agree with you, it is an extraordinarily wonderfully run organization and does wonderful things for our economy, as well as great promotion for Philadelphia. So we are sorry that we have to do that, but we are also going to work with them to try to raise the additional funds.
How will that 178 Whole - 5/4/04 - Bill No. 020455 affect their office?
Mr. McPherson is just telling me they were cut by percent, not 10 percent. 6
You may be right, 7 Mr. McPherson. I just have the absolute 8 numbers. I don't have the percentage change 9 here. But I have had conversations with 10 Sharon Pinkenson about trying to work with her 11 to find additional funding and that's what we 12 were going to try to do. 13
I 14 think it would be very foolish for us to be 15 cutting something like that when it probably 16 doesn't amount to that much and in the end 17 we're going to be losing a great deal of 18 money. However -- 19
-- I have several other questions, but at this time, I'll recognize Councilman Goode.
Thank you, Madam President. Good afternoon, Ms. Naidoff. 179 Whole - 5/4/04 - Bill No. 020455
Welcome and I look forward to working with you, but I am somewhat at a disadvantage in terms of this budget hearing when most of the economic development decisions that are going to be made won't be made until there is an Economic Development Summit and a strategy developed. I don't understand why one was not developed in the first term of the Administration, but nevertheless, I have to ask a question to create some context for the questions I need to ask you. First is, what percentage or portion of your testimony did you write or was developed by staff or based upon previous budget processes?
If you're asking about the budget itself, those decisions were made when I --
I'm asking specifically about your testimony. What portion did you write that is new that comes 180 Whole - 5/4/04 - Bill No. 020455 from your vision or what portion was developed by staff which is based upon other budget processes? How much is old economic development strategy and techniques?
It's hard for me to answer that. The budget testimony was prepared by staff. A number of different staff people submitted pieces of it to me and then I reviewed it all.
And also probably based upon previous budget processes?
Let me deal with some questions in that context, then. On of your testimony where you talk about large-scale development projects, there's a statement at the end of that paragraph that says, "So while much of our focus may be on neighborhood development, we will continue to support major projects which generate thousands of jobs for our residents." What does that mean?
It means that we 181 Whole - 5/4/04 - Bill No. 020455 are -- I think there has been a pronounced emphasis in the first term of this Administration on neighborhood economic development, and the point we were trying to make is that we are balancing that with the large-scale economic development and trying to keep our eyes on both parts.
I'm not sure there's been a significant focus on neighborhood economic development. There may have been a significant focus on neighborhood development. And it says neighborhood development, so I'm quite interested in what that means in terms of neighborhood development.
I would like to call on my colleague, Mjenzi Traylor, who is responsible for neighborhood economic development in the department, and maybe he can give you some examples of the --
Or whoever wrote that portion of the testimony, I'd like them to respond to that question, why they would say much of our focus may have been on 182 Whole - 5/4/04 - Bill No. 020455 neighborhood development, but we will continue to support major projects which generate thousands of jobs, which suggests that we can't generate thousands of jobs from neighborhood small business development.
No. I don't think that was intended at all. We expect that both neighborhood economic development and large-scale development will be tied to job creation.
For me you still have to explain what the statement means, "while much of our focus has been on neighborhood development, we will continue to support major projects which generate thousands of jobs." I mean, that is an actual problem with our economic development strategy, the thought that there is no small business development strategy, the thought that you can't generate economic development within neighborhoods, the thought that where you talk about neighborhood development, you're talking about residential development, but when you 183 Whole - 5/4/04 - Bill No. 020455 talk about economic development, you're talking about major projects. Someone has to begin to resolve that for me.
I think at least from the very short time I've been there, my sense is that there is a very balanced approach, that there is a very strong neighborhood economic development section of the department that keeps its eye on neighborhood creation of businesses, of entrepreneurship.
There's not a balanced approach in terms of strategy or investment. I'll move on, though. Let's talk about something new. The $500 million economic development fund of which only $125 million is partially planned, on of your testimony you talk about stimulating mixed-use waterfront development. What portion of that mixed-use waterfront development is residential and what portion of it is actually economic development?
That is all part 184 Whole - 5/4/04 - Bill No. 020455 of the activity that we will be undertaking in the Summit and the Blueprint process, and as we've committed, we will be back here talking in the fall about what the plans are including, what portion of it would be residential, what portion of it would be business development.
And you would concede that that's not traditional economic development?
I mean, my concern, once again, is that we had a neighborhood transformation initiative that really doesn't have any economic development components. Now we have an economic development investment fund that may once again be focused on residential development.
Well, I think the 185 Whole - 5/4/04 - Bill No. 020455 notion of the Blueprint process is to do exactly what I think you're getting at, which is that we've got to start doing a better job at tying all the pieces together. This City, like most other major cities, has not had a comprehensive economic development strategy. We've done economic development on a transactional basis. We've done it successfully, but it's time now for us to sit down and try to figure out on an overall basis, on a wholesale basis, if you will, what a strategy should look like, and that's what the Summit and the Blueprint is intended to do.
Let's talk about how you describe that process on of your testimony. It says, "The hope for the Summit is that a broad range of constituents will participate in an intensive and instructive process of introspection." What does that mean?
Well, what we're hoping for is to get a very large group of different perspectives, people coming together 186 Whole - 5/4/04 - Bill No. 020455 with different perspectives so that there can be some serious comprehensive thoughtful analysis of what the economic development strategy will be.
But how do you create a process for introspection with regard to economic development? It really doesn't make any sense to me. That's why I'm asking the question.
I think what our goal when using that word was to indicate that we're going to be -- we're going to try to get past the normal rhetoric that people have been used to talking about these projects or their particular agendas in and get them to talk to one another in serious thoughtful ways in which we pierce that kind of rhetoric and get people to think introspectively about what really is best for the City.
And with all due respect, the testimony does not really reflect, as I said, any introspection, any new strategy, any new creative thought process yet, and part of my concern is not just that 187 Whole - 5/4/04 - Bill No. 020455 we can accomplish that within this budget process, but also whoever wrote this took the time to develop five points of focus on what that process should entail, and I'm not sure those five points of focus make much sense either. Let's start with the first point, "reducing and streamlining the cost of doing business in Philadelphia." What does that mean?
It seems to me that that is one issue that comes up over and over and over again.
In the short time that I have been on the job, I have heard it dozens and dozens of times. So it seemed to me that that was an important --
Well, but it's an important issue to address and hopefully new and creative ways to find ways to streamline 188 Whole - 5/4/04 - Bill No. 020455 and make more efficient the way we do economic development and the way we do business.
I think that tax reform is a piece of that and that will be part of the discussion at the Summit. We will be talking about streamlining in a number of different ways.
But from your own vision, what does that mean in terms of tax reform, in terms of reducing and streamlining the cost of doing business in Philadelphia?
I don't have a point of view on that part. What I'm hoping to get from the Summit process is the input of very thoughtful people on it.
When you came to the department, did anyone talk to you about regulatory reform?
When you came to the department, did anyone talk to you 189 Whole - 5/4/04 - Bill No. 020455 about regulatory reform in terms of how to reduce and streamline the cost of doing business?
That's, again, part of what we're hoping to solicit as we go through this process.
So we're just supposed to approve this budget and assume that everything is going to happen in this process? Let me move on to Point No. 2, "Evaluating the use and productivity of targeted incentives/encouraging increased neighborhood and minority business development." Why are those two grouped together?
They actually should not have been, and when I delivered my testimony, I listed them separately.
But they are grouped together. That's why I asked you if 190 Whole - 5/4/04 - Bill No. 020455 you wrote the testimony. Do you know who wrote that portion that grouped those two together?
Okay. "Collaborating with regional, state and federal agencies," is that supposed to be something new?
I don't think any of these things are new. The question is that we --
We have a lot of people who are giving thought to these things, and we're hoping to bring them together and get new ideas from them.
"Increasing the efficiency of the City's administration of economic development," is that something new?
It's not new, but we certainly think we can improve the way we administer our economic development programs, and we want input and help in trying to design 191 Whole - 5/4/04 - Bill No. 020455 that.