COUNCIL OF THE CITY OF PHILADELPHIA STATED MEETING - BUDGET ADDRESS Room 400, City Hall Philadelphia, Pennsylvania Thursday, February 14, 2008 10:00 a.m. PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN DARRELL L. CLARKE COUNCILMAN FRANK DiCICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN BILL GREEN COUNCILMAN WILLIAM GREENLEE COUNCILMAN CURTIS JONES, JR. COUNCILMAN JACK KELLY COUNCILMAN JAMES F. KENNEY COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN BRIAN J. O'NEILL COUNCILWOMAN MARIA QUINONES-SANCHEZ COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN B. TASCO PATRICIA RAFFERTY, CHIEF CLERK 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
May I have your attention, please. Thank you. I note that the hour has come and that a quorum of this Council is present. The Council will come to order. Members will take their seats and visitors will retire to the seats outside the rails. To give our invocation this morning, the Chair welcomes Reverend Jeffrey Jordan from the Metropolitan Community Church. He is here today as the guest of Councilman DiCicco. I ask all members and guests to please rise. (Members and guests rise.)
Madam President, members of the Council, yesterday I had the opportunity to demonstrate outside of the Jamaican Embassy, and someone asked me why am I this, and I said because this is what God would have me to do and it's the right thing to do. Amos 5:24 says let justice roll on like a river, righteousness like a never-failing stream. Dear God of power and might, wisdom and justice, through you authority is rightly administered, laws are enacted and judgment is decreed. Today we pray that you will assist, with your spirit of counsel and fortitude, the members of this Council and other government leaders of this great city. We pray that they may always seek the ways of righteousness, justice and mercy. Help them in every situation to know and to do the things that are right and just, with soundness of judgment in making vital decisions. Help them to think clearly, and give them wisdom in every decision that they must make. Grant them discernment and be strong and effective leaders. As they do the difficult job of leading this city, we pray that the barriers of fear, suspicion and hatred may fall. Help them to lead and govern with integrity and that their integrity guides them and keeps them on track. We pray that they may be strong and courageous. Encourage and strengthen them. Give them wisdom that they need. Be their defender and their protector, and keep them always on guard. We pray that you not only defend and protect this Council, but that you will shield their families and loved ones from all evil and violence. And, God, we pray that you may bless this great city. We pray that it may indeed be a city of brotherly love. We pray that you bind out the spirits of violence, worthlessness and poverty, and release spirits of hope, love, peace and determination. now, oh, God, may your spirit rest, rule and abide over this Council and this Council meeting. This we pray in the name which is known by many names. Amen. (Amen.)
The Chair thanks Reverend Jordan for his very inspiring invocation. Council will be at ease. (Council at ease.)
The next order of business is the approval of the Journal of the meeting of Thursday, February 7, 2008, and the Chair recognizes Councilwoman Tasco.
Thank you, Madam President. I move that the Journal of the meeting of February 7th stand approved. (Duly seconded.)
It has been moved and properly seconded that meeting of Thursday, February 7, 2008 stand approved. All in favor will indicate by saying aye. (Aye.)
The ayes have it, and the Journal is approved. The next order of business is requests for leave of absence, and, again, the Chair recognizes Councilwoman Tasco.
Thank you, Madam President. On behalf of the majority, there are no requests for leave of absence today.
The Chair thanks the Councilwoman. The Chair recognizes Councilman O'Neill.
Madam President, on behalf of the republicans, there are no requests for leave of absence at this time.
Thank you. The Chair will dispense with the regular order of business to recognize the guests and visitors joining us in Chambers this morning. On behalf of all members of City Council, I welcome you to our Council session. We appreciate your taking the time to join us as we attend to the legislative affairs of our city. We have many distinguished visitors with us today, including elected officials, heads of departments, boards and commissions, and many representatives of the Administration. Although I would like to individually acknowledge each of you, owing to the constraints of time, I am unable to do so. Please know that we deeply appreciate your being with us today. We want to extend a warm welcome. time, I would ask all of our distinguished guests, elected officials and representatives of the Administration to please stand so that we may acknowledge you with a round of applause. Please stand. (Guests, elected officials and representatives of the Administration all stand.) (Applause.)
Welcome and thank you. The next order of business is communications. The Chair requests that the Sergeant-At-Arms deliver the messages to the Chief Clerk. The Chief Clerk will please read the messages from the Mayor.
To the President and members of the Council of the City of Philadelphia, I am transmitting for the consideration of your honorable body a draft of a resolution approving the redevelopment contract and disposition Authority, the City of Philadelphia, for the redevelopment and urban renewal of a portion of the Kingsessing Urban Renewal Area; and A resolution providing for the approval by the Council of the City of Philadelphia of a Revised Five-Year Financial Plan for the City of Philadelphia covering Fiscal Years 2009 through 2013; and An ordinance to adopt a Capital Program for the six Fiscal Years 2009 to 2014 inclusive; and An ordinance adopting an Operating Budget for Fiscal Year 2009; and An ordinance amending Chapter 19-1200 of The Philadelphia Code, entitled "Parking Tax," by establishing a rate of taxation on parking transactions for Fiscal Year 2009; and A resolution amending Chapter 19-1500 of The Philadelphia Code, "Wage and Net Profits Tax," by revising certain tax rates and making technical changes, all under certain terms and conditions; and An ordinance amending Chapter 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1806, entitled "Authorization of Realty Use and Occupancy Tax"; and An ordinance amending Section 19-1801 of The Philadelphia Code, entitled "Authorization of Tax," to further authorize the Board of Education of the School District of Philadelphia to impose to tax on real estate within the City of Philadelphia; and An ordinance amending Section 19-2604 of The Philadelphia Code, relating to tax credits, rates, alternative tax computation for the business privilege tax, by reducing certain tax rates, under certain terms and conditions; and in appropriations for Fiscal Year 2008 from the General Fund to the General Fund, certain or all City offices, departments, boards and commissions; and An ordinance authorizing transfers in appropriations for Fiscal Year 2008 to the Managing Director Office of Fleet Management; and An ordinance authorizing transfers in appropriations for Fiscal Year 2008 within the Grants Revenue Fund from the Director of Finance to the Law Department and the Board of Trustees of the Free Library of Philadelphia; and An ordinance authorizing transfers in appropriations for Fiscal Year 2008 within the Aviation Fund Office of Fleet Management to the Managing Director - Office of Fleet Management; and An ordinance amending Subcode "A" of the Philadelphia Administrative 4 of The Philadelphia Code, entitled "The Philadelphia Building Construction and Occupancy Code," by amending the fee schedule for various construction-related activities and amending Section 14-1706 of The Philadelphia Code, entitled "Schedule of Fees"; and An ordinance amending Title 9 of The Philadelphia Code and Title 11 of The Philadelphia Code, entitled "Streets," to provide authorization to the Streets Department to adopt regulations establishing fees for issuing permits for hauling oversized and overweight vehicles; and An ordinance amending Chapter 11-600 of The Philadelphia Code, entitled "Construction, Encroachments and Projects Over, On and Under Streets," all under certain terms and conditions; and An ordinance amending Chapter 11-200 of The Philadelphia Code, entitled "Openings and Excavations in the Streets," to revise the operative period of permits to break streets and footways for the installation and repair of underground conduit; all under certain terms and conditions.
Thank you. The messages will be printed in the Journal. The Chief Clerk will please read any other communications in her possession.
Thank you. The next order of business is the introduction of bills and resolutions, and at this time, the Chair recognizes Councilman Kenney.
Thank you, Madam President. I offer one resolution and two bills.
Thank you. The Chief Clerk will please read the title of the bill.
An ordinance amending Section 17-107 of The Philadelphia Code, entitled "Contractors: Labor-Management Relationships," to change the method by which the prevailing wage and prevailing working conditions are calculated for certain occupational classifications.
The bill will be referred to the appropriate committee.
And an ordinance amending Section 12-1117 of The Philadelphia Code, entitled "Physically Handicapped and Disabled or Severely Disabled Veteran Parking," and Section 12-2809, entitled "Civil Penalties and Costs," by expressly prohibiting certain improper uses of Disabled Parking Permits and providing for penalties, all under certain terms and conditions.
This bill will be referred to the appropriate committee.
And a resolution encouraging Major League Soccer to bring its 16th team to Philadelphia.
Thank you. The Chair recognizes Councilman Kenney.
I move the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will signify by saying aye. (Aye.)
The ayes have it and the resolution is adopted. The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. Today I introduce two resolutions, the housing one co-sponsored by Councilwoman Quinones.
Thank you. The Chief Clerk will please read the title of the first resolution.
A resolution calling on the United States Senate to pass and the President of the United States to sign into law the National Affordable Housing Trust Fund Act of 2007.
The Chair recognizes Councilwoman Blackwell for a motion on the resolution.
Thank you, Madam President. I move for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will say aye. (Aye.)
And a resolution commending Dr. Lawrence Caplin and the Oral Health Impact Project and recognizing the week of February 21, 2008 as Oral Health Week.
Again, the Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. I move for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will indicate by saying aye. (Aye.)
The ayes have it and the resolution is adopted. The Chair recognizes Councilman Greenlee.
Thank you, Madam President. I have no bills or resolutions today.
The Chair thanks the gentleman. The Chair recognizes Councilwoman Krajewski.
Thank you. The Chief Clerk will please read the title of the first bill.
An ordinance authorizing transfers in appropriations for Fiscal Year 2008 within the Water Fund from the Managing Director - Office of Fleet Management to the Managing Director - Office of Fleet Management.
The bill will be referred to the appropriate committee.
And an ordinance authorizing transfers in appropriations for Fiscal Year 2008 within the Aviation Fund from the Managing Director - Office of Fleet Management to the Managing Director - Office of Fleet Management.
This bill will be referred to the appropriate committee. The Chair recognizes Councilwoman Tasco.
Madam President, I offer 12 bills on your behalf and one resolution -- the Administration bills on your behalf, one resolution for you and one resolution for me.
Thank you. The Chief Clerk will please read the title of the first bill.
An ordinance to adopt a Capital Program for the six Fiscal Years 2009 to 2014 inclusive.
The bill will be referred to the appropriate committee.
This bill will be referred to the appropriate committee.
And an ordinance adopting the Operating Budget for Fiscal Year 2009.
The bill will be referred to the appropriate committee.
And an ordinance amending Title 9 of The Philadelphia Code, entitled "Regulation of Businesses, Trades and Professions," and Title 11 of The Philadelphia Code, entitled "Streets."
The bill will be referred to the appropriate committee.
And an ordinance amending Subcode "A," the Philadelphia Administrative Code, of The Philadelphia Code, entitled "The Philadelphia Building Construction and Occupancy Code," by amending the fee schedule for various construction-related activities.
The bill will be referred to the appropriate committee.
And an ordinance amending Chapter 11-200 of The Philadelphia Code, entitled "Opening and Excavations in the Streets."
This bill will also be referred to the appropriate committee.
And an ordinance amending Chapter 11-600 of The Philadelphia Code, entitled "Construction, Encroachments and Projections Over, On and Under the Streets."
The bill will be referred to the appropriate committee.
And an ordinance amending Section 19-2604 of The Philadelphia Code, relating to tax rates, credits and alternative tax computation for the business privilege tax, by reducing certain tax rates, under certain terms and conditions.
The bill will be referred to the appropriate committee.
And an ordinance amending Section 19-1801 of The Philadelphia Code, entitled "Authorization of Tax," to further authorize the Board of Education of the School District of Philadelphia to impose a tax on real estate within the City of Philadelphia.
This bill will be referred to the appropriate committee.
And an ordinance amending Chapter 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1806, entitled "Authorization of Realty Use and Occupancy Tax."
The bill will be referred to the appropriate committee.
And an ordinance amending Section 19-1200 of The Philadelphia Code, entitled "Parking Tax."
This bill will be referred to the appropriate committee.
And an ordinance amending Chapter 19-1500 of The Philadelphia Code, entitled "Wage and Net Profits Tax."
This bill will also be referred to the appropriate committee.
And a resolution providing for the approval by the Council of the City of Philadelphia of a Revised Five-Year Financial Plan for the City of Philadelphia covering Fiscal Years 2009 through 2013.
This resolution will be referred to the appropriate committee.
And a resolution honoring Women's History Month, the 99th anniversary of International Women's Day and declaring March 8, 2008 as "International Women's Day in Philadelphia."
The Chair recognizes Councilwoman Tasco for a motion on the resolution.
I move for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will indicate by saying aye. (Aye.)
And a resolution approving the redevelopment contract and disposition supplement of the Redevelopment Authority, the City of Philadelphia, for the redevelopment and urban renewal of a portion of the Kingsessing Urban Renewal Area.
I move for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will indicate by saying aye. (Aye.)
The ayes have it and the resolution is adopted. The Chair recognizes Councilwoman Miller.
Thank you, Madam President, and good morning. Today I offer one resolution co-sponsored by Councilman Greenlee.
Thank you. The Chief Clerk will please read the title.
A resolution authorizing City Council's Committee on Law and Government to hold public hearings to investigate current policies and procedures relating to real estate transfers and the problem of fraudulent real estate transfers and creating a Task Force on Fraudulent Real Estate Transfers.
I move for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will say aye. (Aye.)
The ayes have it, and the resolution will be referred to the appropriate committee. The Chair recognizes Councilwoman Sanchez.
Thank you. The Chief Clerk will please read the title of the bill.
An ordinance naming and designating the Department of Recreation-owned field located at 4th and York Streets as the "Eric Casiano Field."
This bill will be referred to the appropriate committee. The Chair recognizes Councilman Green.
The Chair thanks the gentleman. The Chair recognizes Councilman Jones.
Thank you. The Chief Clerk will please read the title.
A resolution authorizing the Council Committee on Public Safety to investigate the expansion of the Philadelphia Community Court in order to reduce cost, reduce overcrowding within the prison system and empower the community.
I move for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will say aye. (Aye.)
The ayes have it, and the resolution will be referred to the appropriate committee. The Chair recognizes Councilman Goode.
Thank you, Madam President. I offer no bills or resolutions today.
The Chair thanks the gentleman. The Chair recognizes Councilwoman Brown.
Thank you, Madam President. I offer two bills, one bill co-sponsored by Councilman Goode and one resolution co-sponsored by Councilwoman Donna Reed Miller.
Thank you. The Chief Clerk will please read the title of the first bill.
An ordinance amending Title 6 of The Philadelphia Code, entitled "Health Code," by adding a new section requiring that chain restaurants and retail food establishments make available certain nutrition information for food and beverage items offered for sale, all under certain terms and conditions.
The bill will be referred to the appropriate committee.
And an ordinance amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Privilege Taxes," by revising certain types of business privilege licenses, under certain terms and conditions.
This bill will be referred to the appropriate committee.
And a resolution authorizing the Committees on Parks, Recreation and Cultural Affairs and Public Safety to hold hearings regarding the purchase and training in the use of automated external defibrillators for recreation centers throughout the City of Philadelphia.
Thank you, Madam President. I move for the adoption. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will say aye. (Aye.)
The ayes have it, and the resolution will be referred to the appropriate committee. The Chair recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam President. I offer two resolutions.
Thank you. The Chief Clerk will please read the title of the first resolution.
A resolution urging Jamaican authorities to take immediate action to curb violence against the lesbian, gay, bisexual and transgender community and to provide appropriate police protection for all of their citizens.
The Chair recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam President. I move for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will please say aye. (Aye.)
And a resolution authorizing the Commissioner of Public Property to execute and deliver to the Redevelopment Authority deeds located in the 31st Ward of the City of Philadelphia.
Again, the Chair recognizes Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam President. I move for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will say aye. (Aye.)
The ayes have it and the resolution is adopted. The Chair recognizes Councilman O'Neill.
The Chair thanks the gentleman. The Chair recognizes Councilman Clarke.
Thank you, Madam President. I have one resolution and two -- actually, two resolutions, one co-sponsored by Councilwoman Brown and myself, and one ordinance co-sponsored by Councilwoman Brown and myself.
Thank you. The Chief Clerk will please read the title of the bill.
An ordinance providing for the submission to the qualified electors of the City of Philadelphia of the proposal set forth in a Resolution approved by Council proposing an amendment of the Philadelphia Home Rule Charter relating to the transfer of powers and duties of the Fairmount Park Commission to the Department of Recreation, to be named the "Department of Parks and Recreation," and reconstituting the Fairmount Park Commission as the Commission on Parks and Recreation.
The bill will be referred to the appropriate committee.
And a resolution proposing an amendment to the Philadelphia Home Rule Charter relating to the transfer of powers and duties of the Fairmount Park Commission to the Department of Recreation, to be renamed the "Department of Parks and Recreation."
This resolution will be referred to the appropriate committee.
And a resolution authorizing the Commissioner of Public Property to execute and deliver to the Redevelopment Authority deeds located in the 15th, 16th and 32nd Wards of the City of Philadelphia.
It has been moved and properly seconded that the resolution be adopted. All in favor will indicate by saying aye. (Aye.)
The ayes have it and the resolution is adopted. The Chair recognizes Councilman Kelly.
Thank you. The Chair recognizes Councilman Rizzo.
Madam President, no bills or resolutions today. Thank you.
Thank you. The next order of business is reports from committees, and the Chair recognizes -- oh, Councilwoman Krajewski, did you want to be recognized?
Thank you, Madam President. I'd like to add two additional bills.
Thank you. The Chief Clerk will please read the title of the first bill.
An ordinance authorizing transfers in appropriations for Fiscal Year 2008 within the Grants Revenue Fund from the Director of Finance - Provision for other grants to the Law Department and the Board of Trustees of the Free Library of Philadelphia.
The bill will be referred to the appropriate committee.
And an ordinance authorizing transfers in appropriations for Fiscal Year 2008 from the General Fund, certain or all City offices, departments, boards and commissions from Fund, the Director of Finance - Provision for other grants to the General Fund, certain or all City offices, departments, boards and commissions.
This bill will be referred to the appropriate committee. The next order of business is reports from committees, and the Chair recognizes Councilwoman Brown for a report from the Committee on Parks, Recreation and Cultural Affairs. Councilwoman Brown.
Yes, Madam President. The Committee on Parks, Recreation and Cultural Affairs reports two bills with a favorable recommendation.
Thank you. The Chief Clerk will please read the report.
To the President Council of the City of Philadelphia, the Committee on Parks, Recreation and Cultural Affairs, to which was referred Bill No. 080078, entitled "An ordinance authorizing the President of the Fairmount Park Commission, the Executive Director of Fairmount Park and the Procurement Commissioner, on behalf of the City of Philadelphia, to enter into a Concession Agreement with Billy Casper Golf"; and Bill No. 080084, entitled "An ordinance authorizing the President of the Fairmount Park Commission, the Executive Director of Fairmount Park and the Public Property Commissioner, on behalf of the City of Philadelphia, to enter into a lease with the Philadelphia Authority for Industrial Development to lease City-owned land south of Shelmire Avenue adjacent to the campus of the Fox Chase Cancer Center, all under certain terms and provisions," respectfully reports it has considered and amended the attached bills to Council with a favorable recommendation.
Thank you. The Chair recognizes Councilwoman Brown.
Thank you, Madam President. I move that the rules of Council be suspended so as to permit first reading this day of Bill Nos. 080078 and 080084. (Duly seconded.)
It has been moved and properly seconded that the rules of Council be suspended so as to permit first reading this day of the bills just reported from committee. All in favor will say aye. (Aye.)
The ayes have it, and the bills just read our First Reading Calendar for today.
The next order of business is the consideration of the Calendar. Oh, I'm sorry. Councilman Green.
I'm sorry, Madam President. I would like to be recorded as abstaining on the previous motion. Because the law firm at which I am employed represents a party in litigation involving Fox Chase Cancer Center, I will be abstaining on all matters before Council that affect Fox Chase Cancer Center to avoid the appearance of impropriety. Thank you.
Thank you. The record will so note that. The next order of business is the consideration of the Calendar. I 2/14/08 - STATED - 1ST READING would ask the Chief Clerk to please read the bills on the First Reading Calendar.
Bill No. 080078, an ordinance authorizing the President of the Fairmount Park Commission, the Executive Director of Fairmount Park and the Procurement Commissioner, on behalf of the City of Philadelphia, to enter into a Concession Agreement with Billy Casper Golf.
And Bill No. 080084, an ordinance authorizing the President of the Fairmount Park Commission, the Executive Director of Fairmount Park and the Public Property Commissioner, on behalf of the City of Philadelphia, to enter into a lease with the Philadelphia Authority for Industrial Development to lease City-owned land south of Shelmire Avenue adjacent to the campus of the Fox Chase Cancer Center, all under certain terms and conditions. 2/14/08 - STATED - 2ND READING
The Chair agrees. At this time, the Chair recognizes Councilwoman Tasco for the purpose of calling up the bills on the Second Reading and Final Passage Calendar to be considered today.
Thank you, Madam President. Today Bills No. 080009 and 080010 are being called up for Second Reading and Final Passage Calendar for today.
Thank you very much. The Chief Clerk will please read the title of Bill No. 080009.
An ordinance authorizing transfers in appropriations for Fiscal Year 2008 within the Grants Revenue Fund from the Director of Finance - Provision for other grants to the Police Department, the Law Department and the City Commissioners.
This 2/14/08 - STATED - 2ND READING bill having been read on two different days, the question now is shall the bill pass finally. The Chief Clerk will please call the roll.
Aye. The ayes are 17; the nays are zero. A majority of all members having voted in the affirmative, the bill passes. The Chief Clerk will now read Bill No. 080010.
An ordinance authorizing transfers in appropriations for Fiscal Year 2008 from the General Fund, certain or all City offices, departments, boards and commissions and from the Grants Revenue Fund, the Director of Finance - Provision for other grants to the General Fund, certain or all City offices, departments, boards and commissions.
This bill having been read on two different days, the question now is shall the bill pass finally. The Chief Clerk will please 2/14/08 - STATED - 2ND READING call the roll.
Councilwoman Krajewski, how are you voting on this bill?
Aye. The ayes are 17; the nays are zero. A majority of all members having voted in the affirmative, this bill passes. That completes our Calendar for today. The time has come for us to consider the Mayor's presentation of his first budget message. The Philadelphia Home Rule Charter states that the Mayor shall submit to Council no later than 90 days before the end of the fiscal year his Operating Budget message and proposed Operating Budget ordinance for the ensuing fiscal year. At the same time, the Mayor shall submit to Council the recommended Capital Program and Capital Budget as received from the City Planning Commission, to the extent approved by the Mayor. the following committee to escort the Mayor into the Council Chambers: Councilwoman Tasco, Councilman Clarke, Councilman O'Neill and Councilman Rizzo. (Councilmembers escort Mayor Nutter into Chambers.)
Madam President, the Mayor has arrived. (Applause.) (School kids chanting "save our people.")
Would everyone please be seated. Thank you very much. Thank you. May we have silence, please. Silence, please. Thank you. Ladies and gentlemen, I am pleased to introduce the Mayor of the City of Philadelphia, Michael A. Nutter. Mayor Nutter. (Applause.)
Mayor, just a moment. I think the children in the balcony want to be quiet so that they can hear what you have to say. Thank you. Thank you, Mr. Mayor.
Thank you, Madam President. It's a wonderful occasion, with great pride and excitement and humility, that I find myself here today with you back in these Chambers. I spent a little bit of time here and it's always great to come back. If memory serves me correctly, I think the last time I was at this podium, Madam President, I was announcing that I was leaving these Chambers. I'm back. (Applause.)
And, Madam President, the reason I came back is because the voters of this city were kind enough to give me one more opportunity to serve them in a different way, and I will cherish that opportunity. this morning that 26 years ago -- there's a lady in the back, maybe with a brownish outfit on. I think it says PTO on it. Dr. Wortman, my eye doctor, would be thrilled that I could actually see that. It's the wonder of progressive lenses. Twenty-six years ago -- and there's a photo, see the front page of of the Philadelphia Daily News back from, I believe, early 1982. Myself and my best friend, Robert Bynum, came here to City Council just to see what was going on. I had no idea at that time that I would ever end up here as a member of Philadelphia City Council, but certainly could have never imagined that I'd be here today. I spent a lot of time here. My mentor, Councilman John Anderson, who brought me here as a staff person, first as a volunteer. Councilman Ortiz brought me into this Chamber as a staff person. City Council staff, you know I've teased you on many occasions that ultimately I'm still just a staff person here in City Council, but it's because of that experience that I've always appreciated the great staff people here in City Council. And first let me say that a big part of the reason that I'm here today is because of the great staff that I had when I was in City Council. And so let me also recognize, because the last time I was here I recognized them, Julia Chapman, Denise Dixon. (Applause.)
Deborah Brown and Katherine Kiefski, Mary Turtle, Bobby Johnson, Wadall Ridley. Thank you. (Applause.)
Staff people help to make things possible. As the great City Council staff here and I would only say to the members, every now and then -- and I'm sure you -- we get to make big speeches, we get to be big people on TV and other places. Thank the staff. (Applause.)
Madam President, Majority Leader Tasco, Majority Whip Clarke, Minority Leader O'Neill, Minority Whip Rizzo, members of City Council, guests, my fellow Philadelphians and especially the great children of this city -(Applause.)
-- it really is an incredible pleasure to come back to these great Chambers where the public's business has been guided now as of this year for a decade by our great Council President Anna C. Verna. (Applause.)
I was pleased to be her supporter back then, and that partnership and friendship has served us time together and will serve this Administration to the utmost. The Council President provides strong leadership and direction. She is honest, straightforward, and you never have to wonder what's on her mind. Sometimes I'd like to be left to wonder what's on her mind, but she always tells me. Five weeks ago we all took our oath of office and pledged to work together, to make Philadelphia the city of dreams, the safest, cleanest, best educated, most productive city in the United States of America. For all of us, it was a new day. Now it's time for a new way. As I present a proposed budget for 2009 and the Five-Year Plan for your consideration, my message is straightforward: We confront fiscal issues that have been ignored for too long. The time for heavy lifting has arrived. work together in partnership, if we make smart investments, we'll secure our future and make this city and region strong as we face the global economic challenges in this century. This is not a message of fear or doubt. It really is a message about hope and change. Yet, as the elected and appointed officials of this government, we must recognize some unvarnished truths. Many Philadelphians hold a cynical view of local government, and in some cases you'd be hard pressed to wonder why. They've sent their hard-earned tax dollars to us and in return sometimes they've encountered an unresponsive bureaucracy where a pay-to-play culture and a "who you know" is perceived as the standard of service. We must do better, and today we embark on a new journey. Think about this: Imagine a brag about the great service they receive from the City government, when those services are delivered quickly and at the lowest possible cost and with a smile instead of a frown. We are going to make that happen, and it starts with old-fashioned respect. This government is here for only one reason: We're in the customer service business, and that's what we're going to provide, high-quality customer service every day to every citizen, because they deserve it. (Applause.)
And in our actions, we're going to be open, transparent and accountable. We're going to identify problems, map out solutions and then get the job done. But it does not end there. We're not going to create another bureaucracy, feed it scarce tax dollars and then walk away saying "job done." Absolutely not. Results matter, and we're going to manage for results. Providing quality service is a constant conversation with the customer. That's our citizens, customers, the people and businesses of this city, and we're going to become very good listeners as well. We're going to track our performance very carefully and make continuous adjustments to ongoing situations. This proposed budget and strategic plan identifies core service areas that we all agree upon are important: Public safety, education, jobs, healthy, sustainable communities, delivered by a government with the highest ethical standards and a commitment to top-quality customer service. But as we begin this lengthy budget process, let us not get lost in big numbers or obscure budget principles. Our actions will impact the lives of real people, real Philadelphians, real children, real adults, real senior citizens. That's what a budget is all about. I was reading the other day a document that came to mind and I thought very important in this discussion. In Ancient Greece, in Athens, before a person became a full citizen, they took the Athenian Creed. I think it's pertinent to our discussion. I think it should be a guiding principle for us, and I'd like to share it with you. We will never bring disgrace on this our city by an act of dishonesty or cowardice. We will fight for the ideals and sacred things of the city, both alone and with many. We will revere and obey the city's laws, and we will do our best to insight a like reverence and respect to those above us who are prone to annul them or set them at naught. We will strive increasingly to quicken the public sense of civic duty. these ways, we will transmit this city not only not less, but greater and more beautiful than it was transmitted to us. Let that be our guiding theme as public servants who expect the highest of ourselves. Let that be our code and creed as citizens of this city, to expect no less of each other. As I made clear on my first day in office, public safety is going to be a central concern for all of us. In the last few years, the echoes of gunshots on our streets, the sound of police sirens in the night, the tragic and unacceptably large number of homicides have ripped out the heart and soul of our great city. But I believe the new crime-fighting strategy put together by Police Commissioner Ramsey is going to change the dynamic in our neighborhoods as more than 200 police officers, new officers, on the streets of Philadelphia by May 1st and many more to follow in the going to focus on high-crime areas and use proven policing strategies, lawful, constitutional strategies like stop and frisk, dedicated to the effort of getting guns off the streets of Philadelphia. In the next five years, we're going to spend $78 million in new funds to hire more police officers. By the end of FY09, there will be 400 more uniform police officers on patrol on the streets of our city. (Applause.)
As part of our new capital plan, we will invest $16 million for desperately needed improvements to police buildings and for the use of technology. In addition, we propose to spend $2 million each year to create a network of surveillance cameras throughout the City that will enhance our safety. By the end of this year alone, we will have installed over 250 surveillance cameras and there are more pipeline. But even a return to basic policing informed by the latest data-driven techniques and strategies is not enough. That's why I am recommending a substantial increase in City funding, $5 million in the coming year and $25 million over the next five years, for the Youth Violence Reduction Partnership, which provides intensive services to young people aged 15 to 24 who have been identified as most likely to either be killed or to engage in violent behavior. This program has a proven track -(Applause.)
This program has a proven track record, and many vocal advocates such as Councilwoman Donna Reed Miller has pushed for more resources. The new funding will help us expand the program beyond the current police virtually cover the entire City. Related to our efforts to protect our City youth and our young people, I want to say that the 14,000 children who have been receiving child protective services have not been forgotten. I've directed the Commissioner of Human Services to notify our contractors that they will be funded through the end of this year and into next year. Our children will not be put in danger. (Applause.)
Let me also say that we will engage this budget in a fiscally responsible fashion, and inappropriate behavior by adults will not be an excuse to damage the lives of kids. But we will manage our resources and we cannot spend what we do not have. And I'll have more to say about these issues and our after-school programs in another day or so. safe also means getting to the sick and injured as quickly as possible. We need to improve our response time in Emergency Medical Services. Already we've added $1.2 million this year to increase the number of medic units and the number of units we deploy during peak hours. On Tuesday, I proposed spending an additional $3.8 million to increase the Emergency Medical Services budget, which will support increased overtime and staffing of 40 new EMTs, as well as two new vehicles in the coming fiscal year, with three more to follow in 2010. (Applause.)
These changes could not have been made without the quite persuasive advocacy of Councilwoman Joan Krajewski, the analytical spotlight cast on the issue by our City Controller, Alan Butkovitz, and the technical expertise of our Fire Commissioner, Lloyd Ayers, and I want to thank each and every for their assistance and the support of all members of City Council. Councilwoman, thank you. (Applause.)
Increasing our EMS capacity is going to help us improve our response time to life-threatening emergencies, but it will also help us unburden our 9-1-1 system, where fully a third of the calls we receive are not emergencies. Heeding the advice and the hard work done by Councilman Jim Kenney in this area, we are going to establish a 3-1-1 non-emergency system with an annual allocation of $2 million. Councilman, thank you.
This 3-1-1 system will also enable us to enter a new world of customer service. Citizens will no longer have to search all over for the right number to call with a wide range of beset us, from potholes and abandoned cars to tree limbs and trash complaints. Our goal is that by the end of this year to have a new system in place, our own version of CityStat in other cities, but ours is PhillyStat, which will track these services from start to finish. We are in the customer service business. We'll know how long it takes the Streets Department or L&I to respond to a particular issue and when the problem is resolved. It will become a key element in our drive toward accountability and greater efficiency. And I also know that PhillyStat will probably please City Councilman Bill Greenlee, who has been pushing hard for more efficient delivery of City services. Councilman, thank you for your advocacy as well. (Applause.)
Philadelphia has always been one of America's great cities, and part of its charm is its thriving Center City, but also, of course, we're a city of neighborhoods, distinct, unique, but always quite interesting. As a part of our plan to promote healthy and sustainable neighborhoods, I want to establish Philadelphia as the "green city" in America, from an emphasis on green construction practices to a national leadership role in the recycling movement. For too long, for too long, for much too long, Philadelphia has been at the fringe of the recycling movement, with a collection rate estimated at just over 6 percent. In the coming year, we will invest $6 million and over $25 million over the next five years to create a process that is more user friendly and will increase our participation rate. In May, we're going to expand North Philadelphia. Initially this new effort will provide for every other week collection, but by January 2009, we will have weekly, citywide, single-stream recycling in Philadelphia. (Applause.)
Along with our emphasis on recycling, we're also moving to implement a citywide litter prevention strategy, and for his interest in a clean, sustainable city, I want to thank Councilman Frank DiCicco for his help in this area. Frank is always looking to clean up. (Applause.)
Shortly I will name a director of the new Office of Sustainability who will focus on best practices in sustainability, energy efficiency and green-collar jobs and work with our City departments whose missions will impact our environment. No plan to make Philadelphia a complete without focusing on our incredible Fairmount Park, one of the greatest park systems in the United States of America. (Applause.)
For those who have had the experience, it's been said that Fairmount Park can sooth our urban souls and attract visitors from all over the region, across the country and around the world. I want to make this park the best in the country without dispute, and to do that, we must give our park system the resources it has been denied for too many years. I propose providing a $1.5 million increase to Fairmount Park in FY09, and over the five years of this plan, the budget of Fairmount Park will rise from $13 million to $19 million, an increase of 46 percent. And I want to thank Councilman Darrell Clarke for his determined stewardship in this area. (Applause.)
To fund this initiative and a few others, I am proposing an increase in the parking tax from the current 15 percent rate to 20 percent. We estimate this increase will generate an additional $16 million, which will support the Park, an aggressive tree-planting program and our first "pay as you go" capital program, and those dollars will be used for street resurfacing throughout Philadelphia. With City Council approval, we will continue the City's efforts to rejuvenate neighborhoods by adding at least $1 million per year to the City's Housing Trust Fund. With this new money, we'll leverage other public and private funding and aim to produce at least 1,000 affordable units of housing each year. Building more low- and moderate-income housing in this city for homeowners is one of the key goals of our Administration, and I want to thank Councilwoman Jannie Blackwell for her particular area. Councilwoman, thank you. (Applause.)
City Council has been loud and clear expressing its concerns over our funding commitment to the Department of Public Health, and I want to thank our Majority Leader Councilwoman Marian Tasco for her advocacy in this area. Councilwoman, we heard you. We're proposing an additional $3 million per year to enhance our health centers, add key professional personnel and upgrade technology. (Applause.)
Earlier I spoke about the need to improve performance, about setting the bar high, but when it comes to educating our children and preparing a skilled workforce, the bar can never be set too high. We now have before us a series of aggressive goals, cutting in half the rate, doubling the number of Philadelphians with college degrees and encouraging people to re-enroll and complete their college course work. If we succeed -- and we must -- our city will be the richer for it, because an educated employee makes more money across a lifetime than a lower skilled, less educated worker. Philadelphia already is heavily invested in our schools, spending over $800 million a year on educating our children. And Governor Rendell's new funding formula for public schools will help us, and we need to tell our friends and ask our friends in Harrisburg that this new funding formula must be passed, because it is critical to support education not just in Philadelphia but across the Commonwealth of Pennsylvania. (Applause.)
We are addressing the dropout crisis by reprogramming the money we now have and social services funding to do a better job of linking students to schools. Reducing the dropout rate is also about helping students understand the meaning of their education in their march toward work and careers. Following City Council's lead last year, we will provide $1 million for summer internships, helping 860 Philadelphia students see the link between school and life after school. And as I announced yesterday, we will add 100 more slots this upcoming summer. (Applause.)
As part of our plan to encourage more Philadelphians to go to college, we need to help Community College of Philadelphia, our city's community college, in its mission. Community College of Philadelphia serves as a critical gateway to higher education. Many Philadelphians start their college experience at Community two-year degree and often move on to a four-year degree. I propose to bolster the College's funding with an annual increase of $4 million, or $20 million over the course of the Five-Year Plan. (Applause.)
This new funding for Community College will help to lessen the blow of escalating costs of college education and make it more affordable for young Philadelphians and the not so young to go to college and remain in their course of study. A better educated workforce, a cleaner, safer city with a customer-oriented government, all of this is part of a broad strategy to change this city's direction. Between 2001 and 2006, our job base contracted by 4.5 percent. It was a slower decline than in the '80s and the '90s, but we cannot let this trend continue. committing the resources of this government to the goal of halting, once and for all, the drain of jobs and people. We're seeking to reverse the directions of both and grow this city by 75,000 residents in the next five to ten years. (Applause.)
And one of the assets we'll use is our cultural institutions, our museums and libraries, entertainment venues and historical treasures. We're going to reopen the Office of Arts and Culture, founded with foresight by Mayor W. Wilson Goode, Sr., and increase funding to the City's Cultural Fund by $2 million in 2009. (Applause.)
And at this moment, let me cite the substantial contributions and, again, advocacy by Councilmembers Blondell Reynolds Brown, Councilman Jack Kelly, Councilman Frank Rizzo, who vigorously pushed for more and culture all throughout Philadelphia. Thank you all. (Applause.)
But using culture as a magnet to attract jobs and population must be part of a broad effort to make Philadelphia a more business-friendly environment. We must continue the steady reduction of wage and business taxes if we are to retain business that we have, attract new businesses and secure the prosperity that Philadelphians deserve. In recent days, we've seen what a new spirit of cooperation can do. After lengthy negotiations, City Councilman Brian O'Neill and the leadership at Fox Chase Cancer Center have reached agreement on the expansion that the world-renowned institution desperately needs. Councilman O'Neill, thank you for your leadership in this regard. (Applause.)
I also want to thank Councilman W. Wilson Goode, Jr., who has proposed a series of aggressive reductions in the City's onerous business privilege tax. Those proposals will help enhance our City's competitiveness. Following the Councilman's lead, I'm proposing to eliminate the gross receipts portion of the business privilege tax in eight years. We must also target the other onerous part of the business privilege tax, the net income portion. For the first time, we will begin to take down that tax from its current 6.5 percent rate to 6 percent by Fiscal Year 2013. Councilman, thank you. (Applause.)
At the same time, we will also continue the wage tax reductions that began under then-Mayor Rendell in 1995. Over the course of the next five years, the rate will drop below 4 percent in FY11 for the first time since 1976. (Applause.)
Earlier I said our message today about the 2009 budget and our Five-Year Plan was one of hope, not fear. The spending initiatives I've announced and outlined today are exciting and doable, but as I've said on many occasions in the past, we also have serious fiscal challenges to face and the time for heavy lifting has arrived. As we start our journey toward a consensus on this budget, we all have to acknowledge that there are storm clouds on the horizon. Some, in fact, are upon us as we speak. Our national economy is struggling. Whether we're in a recession or not, this much is clear: We're already seeing a flattening in some of our tax revenues, particularly in the real estate transfer tax. And while we have a healthy fund balance at the moment, we also face enormous needs and challenges. For too long we have not invested enough in our buildings and other infrastructure. The Philadelphia Gas Works, despite recent improvements, remains a threat to the City's fiscal stability. The School District faces major financial challenges, and our tax structure is a complete dead weight on every business and taxpayer in this city. But our most pressing problem is much closer to home, and we all know what it is. The single largest expense in our budget is the salaries and benefits we pay to our hard-working, deserving public employees, who deserve a round of applause right now. (Applause.)
As I mentioned earlier, the citizens of this city gave me one more opportunity to come back and serve them in a different way, and one of the most exciting aspects of coming back is that I have an opportunity to work with close to 23,000 of the finest public servants you will see and meet anywhere in the United States of America. You should applaud on that, too. (Applause.)
The hard, cold facts are that salaries and benefits consume 60 percent of our budget. Healthcare and pension costs, now roughly a quarter of our budget and are increasing at rates that cannot be sustained into the future. With contracts for our City's four municipal unions set to expire at the end of June, we have an historic opportunity to establish a new partnership for progress between City government and our employees. I've said that City employees deserve a fair and reasonable contract, but also one that is fair and reasonable who must pay for it. The Administration and City employees have very tough choices to make together. The right choices will result in the smart investments and the long-term security that we all want for our City employees and our government. With that in mind, let me first address the issue of our Pension Fund. Based on the needs of current and future retirees, the City's Pension Fund has an unfunded liability of $3.9 billion. Looked at another way, only 52 percent of our pension obligation is actually funded. And yet, in 2001, the City's General Fund set aside $194 million to the Pension Fund. This year that payment will top $437 million. Larger pension payments are expected in the future. And still the unfunded liability remains. Our current employees and our retirees should not have to worry about their future after years of loyal service and our citizens. We need to act. (Applause.)
We need to act and we need to act now. We need to correct a succession of decisions that have resulted in an underfunded Pension Fund and increased General Fund obligations that endanger the future of the our pension system. Today I'm proposing that we issue a new pension obligation bond, roughly $4.5 billion, that will stabilize the Pension Fund at a 95 percent funding level. (Applause.)
The new debt service on these bonds will be far lower than the projected payments we are now scheduled to make into the current pension system. And part of the savings that we'll achieve, roughly $50 million per year, will be returned to the City's General Fund to help us improve our heart of our upcoming negotiations with our labor unions and our labor leaders, all of whom I've known for some time and respect tremendously, at the heart of all of it will be the compensation packages, the combination of wages and benefits, including, of course, healthcare. The City's contributions to employee healthcare have increased by double digits every year for the past few years. During the same period, a national survey of employer-sponsored health plans showed increases less than double digit rates. Our Administration is committed to an open and honest dialogue with our unions. As the Five-Year Plan makes clear, there isn't much wiggle room and there are dozens of worthy demands for our scarce resources. But to our union leaders -- Cathy Scott, John McNesby, Brian McBride and Pete Matthews -- all of and respect and have had opportunities to talk with, let me say in the greatest spirit of partnership and collaboration, we'll give you our books, please test our revenue estimates and examine the many demands for our City resources that we face. This is a new spirit of openness and transparency that I pledged during last year's campaign, and I continue that promise today. As I've mentioned many times publicly, let's all pledge to negotiate in honesty and good faith for the benefit of our employees. And as John F. Kennedy once said, let us never fear to negotiate, but let us never negotiate in fear. (Applause.)
Yesterday when I addressed the Greater Philadelphia Chamber of Commerce, I posed a challenge to our business community. I said that together all of us, we, us, we are on a quest for a better life, but government all. We owe it to ourselves and to our children and to our grandchildren to make the hard choices now so that we can meet the great challenges of the future. More than two centuries ago a group of leaders gathered here in Philadelphia and said quite simply they'd had enough, that they cut their ties from the old ways and established something new. It's now time for the City, our employees and our taxpayers to form a new partnership based on trust, cooperation and a recognition that the old ways simply won't work anymore. In the coming weeks, City Council, our public employees, Administration officials and our fellow Philadelphians will examine every assumption and projection in this budget and Five-Year Plan. I expect a full discussion of these proposals, and I also know that newest members of City Council -- Councilwoman Maria Quinones-Sanchez, Councilman Bill Green and Councilman Curtis Jones -- are going to be well prepared, because they spent weeks and weeks studying the operations of City government before taking office. And I'd like to officially welcome them to the greatest legislative body in the free world. (Applause.)
It's that kind of commitment, it's this kind of commitment that will make the new way of doing business here in City Hall a clear benefit to all Philadelphians. We don't walk into this process under the assumption that we have a monopoly on ideas, but we believe the proposals we've set out and put forth here today will put us on a course for a safer, cleaner, greener city, where our children are protected and educated, where government performs its tasks in an open, honest and efficient manner, and where performance is measured, improvements are made, services delivered. Madam President and members of City Council, ladies and gentlemen, this is the new way of doing the public's business, and so I urge all of us to stand together and embark on a new day. I look forward to working with each and every one of you. Thank you very much. (Applause.)
We are still in session. Please make your exit very quietly. Thank you. Before we adjourn, I would just like to make a statement that although Council is not scheduled to meet next Thursday, I would like to announce that an executive session briefing will be held for all Councilmembers next Tuesday, February 19th, at 1:30 in the Caucus Room so that we may consult with our attorneys Council and the SugarHouse and Foxwoods Casinos. I believe that you all should have received a memorandum to that effect yesterday. Are there any speeches on the part of the minority? (No response.)
Any speeches on the part of the majority? (No response.)
I see that the Mayor outspoke us all. Since there are no speeches, at this time, the Chair recognizes Councilman Clarke for a motion to adjourn.
Thank you, Madam President. Madam President, I move that Council stand adjourned until Thursday, February the 28th, 2008, 10:00 a.m. (Duly seconded.)
It seconded that Council stand adjourned until Thursday, February 28th at 10:00 a.m. All in favor will say aye. (Aye.)
The ayes have it. The motion carries. Thank you. (Stated Meeting adjourned at 11:25 a.m.) CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on February 14, 2008, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)