No, that's for construction. That oversight committee is for construction.
Okay. And once the project is completed, when you still have X-number of contractors waiting for their final payment?
That oversight committee does not give -- if I can use the American Friends Service group -- lay down until our board requires such. So they stay on because we do know that a lot of the action happens after the project is completed.
Indeed. It was two years after the stadiums were built and finished when 175 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 we were beginning to hear awful stories about MBE and WBEs. So will that -- that's a formal agreement outside of the legislation, or is that actually written in the body and in the text of the legislation?
It is in the body and the text of the legislation. And, in fact, it's in the lease and service agreement. There has always been an oversight committee of the Convention Center, and it will be working through construction and after.
Excellent. The final question is, I clearly remember being a citizen during the discussions and debate of the first convention center and the interest to ensure that women and people of color get in the pipeline for a career path in the hospitality industry. And at that time 176 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 Philadelphia OIC, became one of the institutions in our city that became a part of the text of the legislation to ensure that there would be a pipeline for training. Speak to, if you will, what the plans are for the second convention center, what will be different from the construction of the first as it relates to getting young people in the pipeline so that they can start a career in this industry.
Councilwoman, I'll start with that, and then Amina Young can finish and talk about some of the implementation of it. But right from the beginning, when we began our discussions with the Commonwealth and the Authority, we were insistent. Mayor Street indicated in the very first meeting that he was insistent that there be a provision for continuing the education and training fund, which would expire 177 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 under its currents term next year.
And we did negotiate a provision that provides for twenty years further funding --
And that's all it says, for the funding of the education fund; it doesn't discuss specifics like the academies or any other training, institutional? Does it provide flexibility, if you will, in who those partnerships might be?
I think under such a long period, there has got to be some flexibility about who can carry it out, but I'll turn it over to Ms. Young, and she can talk a little bit about what their thoughts about 178 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 the program.
Actually, Councilwoman, you know, one of the things I hate to do is be a person who says, "Look at the past" to talk about the future.
Well, sometimes the best predictors of future behavior is past behavior, unfortunately.
But, in fact -- and that is, in fact, true with both these areas that we are doing to train people for the industry. These programs have been so successful in this city that they have been a adopted by other cities who are constructing various portions of convention centers, et cetera. What we have enjoyed and delighted in, that not only had in our academies program one school that we could point to but five schools that we could point to, and that included a 179 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 parochial school.
So we were going wide in terms of who we included. And for us, it was a way for any parent to say, This is why I care about the Convention Center. All of the parents of these kids in our program became stakeholders in the project because they then understood what this Convention Center meant, even if they never used it because they didn't belong to a large association, but they could take pride in saying that their children were being prepared for this growing industry. And so I thank you so much for asking and making sure that we are certainly going to continue with that line of success with preparing people for our industry.
Okay. I thank you. That covers all 180 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 of my questions. Thank you, Madam President.
Are there any other questions from members of the committee? The Chair recognizes Councilwoman Miller.
Hi. Thank you. Thank you, Madam President. Good afternoon, everyone. PANEL MEMBERS: Good afternoon.
I just want to know a little bit more about the education and training fund. When I read it in this testimony, I was wondering exactly what it is, what you actually train people in, and how successful has it been, and do you currently have that?
We certainly currently have it. It's been very successful. In fact, we have Bob 181 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 Nelson here, who I hoped would have an opportunity to testify early on, who runs the OIC program. But almost in every hotel, there has been one of our either students or people through our OIC programs that have been placed. It has made a difference in the way that probably no industry, emergent industry, in the City of Philadelphia has done because we have taken the extra step. If you ever have an opportunity, we would love for you to go up to OIC, where they have, in fact, simulated a hotel. And it's not only back of the house; these people have moved on to other jobs in the industry because we wanted to ensure that these just weren't the beginning jobs, even though this is an industry where you can easily assimilate from the front to the back. But we were preparing 182 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 people for the managerial level and front-desk jobs in hotels, et cetera, and these programs have been very successful in doing so. Same is true for in our high schools, in our junior high schools. Sometimes the students didn't know it was an option. I mean, what is this hospital industry and what can we do? We're right there in the schools with good course work. And in some schools, they have had the highest attendance, kids who are in the Hospitality Academy. So we've been very successful it.
That's really good. Certainly I've been to OIC. And the last time I went, we were to meet with Mr. Nelson, and we were served lunch by those in the business out of that training school.
Are 183 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 there any other schools similar to OIC, any other training for adults? Or is it just pretty much all for --
The only one that we fund is the OIC for the unemployed and underemployed. And, of course, the academies train in a number of, areas but we are training in the hospitality area. So there are a lot of industries who are involved with the academies program.
Okay. And would that include the casinos if they ever come?
We are not involved in their training for the casinos, but I believe that OIC is involved in the training.
All right. Thank you. You know, I just want to say 184 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 this, Council President. You know, I've sat here now for about 13, 4 years, and every time large 5 developments come across through City 6 Council, we have to talk and we have 7 to sort of fight for -- we have to 8 fight for minority inclusion, minority 9 participation. 10 It's very frustrating, 'cause 11 in the end, it's like, Well, did we 12 really do anything? So you get to the 13 point -- you know, it's just 14 frustrating. We just you want to make sure it is an inclusive project and that everybody gets a chance to participate in a fair way. I mean, it has to happen. I am so frustrated by all of this. It kind of shuts me down because you sit here and you want to fight for it and you want to bring up the issues. And in the end, you still don't get anything. So I need to say that. I just 185 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 wanted to put that on the record. You know, you hate to sit back two to three years from now and still say, Oh, damn, we're still over there fighting to get people included in the Convention Center project. It's just not fair. SOLICITOR DIAZ: I wonder, Madam Chair, if I might respond to the Councilwoman's statement and questions that were posed earlier about the EOP. Madam Chair, I was just asking if I might respond to the statement by the Councilwoman and others earlier about the EOP. Clearly, this is an important issue, not only for the parties to the agreement before you, but clearly we've heard and taken to heart the message delivered today by various Councilmembers. I would also say that there's never been a difference of opinion here. I think it's frankly perhaps 186 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 the lawyer in me and others serving as a barrier to what people are truly committed to achieving. What we are proposing, we being the City -- the Commonwealth and the Authority, having conferred during a break earlier -- is that we prepare a document for an amendment of the bill that would reflect an EOP that hopefully would be acceptable and serve as a standard for this kind of approval process. And having had the discussion about what a legally mandatory goal is versus an aspirational goal, which I believe is certainly acceptable as an aspirational goal at a higher level, and we all need to work hard to achieve those. Numbers but we would propose to set an aspirational goal of 30 percent for minority participation, 20 percent for women participation. The prequalification 187 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 statements have already been issued and responded to by contractors at the lower mandatory goals that have been discussed previously. We would propose to reissue the prequalification statement and reflect the higher aspirational goals that I have just mentioned. And with the committee's approval, we would, as I said earlier, paper this understanding and request that an amendment to the bill be accepted under a suspension of the rules at Council's next meeting.
Okay. Thank you. I just need to say one more thing. And systems have to be put in place that doesn't create -- that people won't be able to put up a barrier to payment, and the lack of payment is what drives some of these firms into bankruptcy and severe financial problems. 188 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 But all of that has to take place for it to be successful. Just putting a plan on paper is good, it's great, but it's the implementation and all of those things that we need to do to ensure that it's a smooth as possible. I know nothing runs a hundred percent smooth, but so that we can really, really, really have people feel good about participating and not have to call me and other Councilmembers about getting a payment. So it's just really frustrating. SOLICITOR DIAZ: Well, in fact, I think I had alluded to this earlier, Councilwoman, but in the famous Appendix J that I keep referring to, or Exhibit J, there is a requirement, and the Authority has agreed in a legally binding way about how receipt of payments by contractors will trigger a five-day deadline in 189 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 connection with the payment of subcontractors. We know this has been historically an area of concern, and that is specifically already addressed in Exhibit J to the bill.
Okay. Very good. Thank you. Thank you, Madam President.
Thank you. Are there any other questions? The Chair recognizes Councilman DiCicco.
Thank you, Madam Chair, and I will try to be brief. To sum up what has taken probably the last two hours in discussion, and Councilwoman Miller is exactly right: Project after project comes before this Council, many of which require either City funding or approvals, and it's always the same 190 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 issue about participation of thresholds quotas, what have you. And I can see that the posse that normally follows me around is not here today. I suspect, when they heard that I was about ready to blow things up, they figured it was in their best interest not to come here and taunt me. I almost miss those guys today, believe it or not, because if they were here, I think it would speak to the issue that we're all trying to get to. When you look at the racial makeup of the people in the building trades today, it's probably not much different than it was 12 years ago, when I first entered this chamber. And nothing has ever changed. And it really never change. And those quotas and those objectives that we've all been trying to achieve, as Councilwoman Miller, Councilwoman Brown and Wilson and 191 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 Darrell have talked to, we just keep talking about the same old thing, and we talk about these one percentages or this half a percent to stay in the game, if you will. And until the building trades -- and until the building trades in the City of Philadelphia open up their doors and get serious about not only bringing in young people as apprentices but letting them getting to the point of being journeyman, we will always have difficulties trying to attain goals. And those goals, whichever are established, will always be minimal at best. It never gets any better. And that's not for all of you folks, obviously, but it kind of fits in the largest public works contract in the Commonwealth's history. I can remember a few years back, we were talking about the largest public investment in the City 192 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 of Philadelphia's history -- stadiums. And I don't have the facts and figures in front of me, but I would venture to say that we haven't made any advances in the issue of hiring of minorities and women firms and getting people into the trades any further along than we were years ago. 10 And for a lot of other 11 reasons, I would almost like to see 12 this project not happen. And I can certainly say that this is one of them that has me on the edge. And it's not because of the good work -- and I sit on the Convention Center Authority Board and all of the good work that's gone into this. It's dealing with a lot of personalities over the last few years that have slowed this process down. But that's where it is. The posse, again, is not here. If they were here, like they were here for the Fox Chase bill the other day 193 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 in Councilman Brian O'Neill's district, it was interesting to see the Local 98 guys were lined up in the back probably. There were probably about of them, and there were 7 maybe -- maybe -- maybe three faces of 8 color, and they were apprentices. 9 And that's the way it was 12 10 years ago, when we were being harassed 11 in this chamber because we were asking 12 serious questions of the building 13 trades, and it's exactly the way it is 14 today. 15 So I'm not confident that it's 16 going to change, but maybe this a good 17 opportunity for us to figure it out 18 between now and next Tuesday because 19 I'm going to ask, Madam President, 20 that you recess this hearing until next Tuesday, and maybe there's a better way that we can figure this out, because I think this is probably one of our last big opportunities. Thank you. 194 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994
Thank you, Madam President. And so, to Councilman Frank DiCicco's sentiments, it isn't strong enough. The reality he just painted, what conversations, what strategies, what thinking has the leadership at the Convention Center given to that very real reality? What stipulations have you placed on any of the trades that will ultimately be engaged there at the center around this reality? What clawbacks is in the language of the legislation that says if X-Y-Z doesn't happen within 30 days or 90 days, et cetera? 'Cause that is the reality. And we know that, going into this. What conversations or discussions have been had with the 195 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 leadership of the trades and the role they can play to fix that reality? (Witness comes forward.)
Councilwoman, thank you for those comments. And, again, you know, it has been, to say the least, a struggle on so many levels. And it is an opportunity with projects like this that we're able to make some progress in our city around those issues. Our apprentice program, which is attached to the documents, for the first time that there's been a major project that we are moving apprentice to journeyman status and using project hours there to do so.
And so you can make that decision, and not the leadership of the trade union to make that kind of move for a worker?
We can certainly 196 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 attach it to our construction documents.
And this is a first, and it's very different from the first convention center. It's unprecedented in many ways.
Unprecedented in many ways because, in the past, everyone trained folks to get apprentice hours. We are taking those people who have been sitting and not 197 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 having the opportunity to move to the journeyman status.
And I'm being redundant, but I want to make sure I've heard it clearly. When that doesn't happen, there is a -- it wouldn't be a bonus, it would be a punishment or a -- help me out.
-- in the way that if you're not meeting your minority and female goals for subcontracting, you're out of compliance.
Okay. All right then. Thank you. Thank you, Madam President. 198 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994
You're welcome. Are there any other questions or comments? The Chair recognizes Councilman Clarke.
Thank you, Madam President. I just want to, first of all, thank you for giving us this opportunity. I just want to clarify for the record, 'cause we had some sidebar conversations, what we're looking to achieve by next Tuesday with respects to this particular issue. One issue that came up, there was some concerns about -- and I don't know if we can do that by next Tuesday, probably not -- the diversity study essentially applying to only the local community, therefore establishing an extremely low ceiling -- floor rather, because of the fact 199 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 that there's not a lot of large-scale, quote/unquote, qualified contractors in a number of these particular trades on a local basis, but there will be, if we can't do it in a disparity study, a solicitation done at a much broader level so there's a possibility of bringing in general contractors and other significant subcontractors to meet some of these hopefully very aggressive goals that we are establishing. Two, with respects to the equal opportunity plan that talks about, quote/unquote, aspirational goals, I wanted to be clear that while hear the very detailed discussion about apprentices, and that's laudable, but we're talking about journeypersons, 'cause I don't want the building and trades people to think the only thing they have to do is give us commitment on the apprentices and not do what they need 200 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 to do as it relates to journeypersons throughout the trades. Additionally, on contracts, we must be probably more aggressive on contracts 'cause the likelihood that if you get minority contractors and female contractors, the numbers associated with their employees are going to be reflective of the head of the organization. And so I want to make sure that we reflect that in our amended EOP plan, that all of that is addressed, not just simply the issue that we spoke about on the record. Am I okay?
So we're on the same page 'cause we don't want to end up Tuesday not having, you know, some consensus on some that.
Thank you, Madam President. 201 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994
Thank you. And I would ask the City Solicitor, if he would, to please have the amendment on this issue prepared by Monday and circulated by Monday so that we don't walk into the chambers on Tuesday and some people have questions that you may not be able to answer at that time. I know you can always answer questions. But if, in fact, we do receive it on Monday, it would be very much appreciated. SOLICITOR DIAZ: It's understood that it will be our responsibility to meet that deadline.
Fine. Thank you. If no one has any further questions of this panel, the committee will stand in recess until Tuesday, December 4th at 10 a.m. Thank you all very much. 202 11/30/07 COMMITTEE OF THE WHOLE - BILL 070994 (Proceedings end at 1:29 p.m) * * * 203 C E R T I F I C A T E I HEREBY CERTIFY that the proceedings of the City of Philadelphia Council Committee of the Whole are contained fully and accurately in the stenographic notes taken by me on Friday, November 30, 2007, and that this is a true and correct statement of same. __________________________________ JOSEPHINE CARDILLO Registered Professional Reporter (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.)