COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING BEFORE THE COUNCIL COMMITTEE ON APPROPRIATIONS (FY '03 BUDGET HEARING) - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, 2/19/02 9:55 a.m. - - - BILL 020037 Authorizing transfers in appropriations for FY '02 within Grants Revenue Fund from the Director of Finance - Provision for Other Grants to the Police Department and the Board of Trustees of the Free Library of Philadelphia. BILL 020038 Authorizing transfers in appropriations for FY '02 from the General Fund, certain or all City offices, departments, boards, and commission 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. BILL 020039 Authorizing transfers in appropriations for Fiscal Year 2002 within the Aviation Fund from certain or all City offices, departments, boards, and commissions to certain or all City offices, departments, boards, and commissions. COUNCILMEMBERS PRESENT: Joan L. Krajewski, Chairperson Michael A. Nutter, Vice Chairperson Jannie L. Blackwell Darrell L. Clarke Donna Reed Miller Angel L. Ortiz - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2 2/19/02 APPROPRIATIONS COMMITTEE HEARING INDEX WITNESS Robert Dubow, Budget Director.................... Rick Tustin, Capital Program Office.............. 6 Thomas Costello, Commissioner Of prisons......... 22 7 Ed McLaughlin, Commissioner of L&I............... 34 8 Robert Solvibile, First Deputy Commissioner, L&I 34 9 Patricia Smith, Director, NTI.................... 39 10 Mary Platt-Coles, Deputy Commissioner............ 67 Department of Recreation Donna Mouzayck, Esquire, Law Department.......... 71 Nelson Diaz, Esquire, City Solicitor............. 73 Eva Gladstein, Executive Director................ 80 Philadelphia Empowerment Zone Linda Berkowitz, Deputy Secretary................ 82 Financial Oversight Karl Bortnick, MOIS.............................. 89 Kevin Cross, Deputy Court Administrator.......... 93 Financial Services, First Judicial District William Mifflin, Executive Director.............. 96 Fairmount Park Commission 3 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39
Good morning. The Committee on Appropriations is now in session. Will the clerk please read the title of the bills.
Bill No. 020037, an ordinance 6 authorizing transfers in appropriations for Fiscal Year 2002 within the Grants Revenue Fund from the Director of Finance - Provision for Other Grants to the Police Department and the Board of Trustees of the Free Library of Philadelphia. Bill No. 020038, an ordinance authorizing transfers in appropriations for Fiscal Year 2002 from the General Fund, certain or all City offices, departments, boards, and commission 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. And Bill No. 020039, an ordinance 20 authorizing transfers in appropriations for Fiscal Year 2002 within the Aviation Fund from certain or all City offices, departments, boards, and commissions to certain or all City offices, departments, boards, and commissions.
Before we begin, 4 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 I would just like to take a moment to recognize Troupe from the Boy Scouts of America. They're 4 here today with their troupe leader, Mr. Wayne 5 White, working towards their citizenship merit 6 badges. Welcome. 7 Do you want to stand up so we can see you? 8 (Troupe members stand up.) 9 (Applause.) 10
Welcome to City 11 Council. You are indeed a credit, believe me. 12 Do we have someone from the Administration 13 to testify? 14 (Witness comes forward.) 15
Good morning, Councilwoman 16 Krajewski and members of the Appropriations 17 Committee. My name is Rob Dubow, and I serve as 18 Budget Director for the City of Philadelphia. 19 I appear before you today to offer testimony on Bills No. 020037, 020038, and 020039, which make Fiscal Year 2002 budget appropriation transfers between and among classes and departments in the City's General Fund, Grants Revenue Fund, and Aviation Fund. I have shown in Exhibit A, attached to 5 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 this testimony, that there is a total of 36 transfers requested in Bill No. 0020038, including transfers involving a net change in departmental 5 appropriations and 9 transfers between classes 6 within departments that do not result in any net 7 change in appropriations. 8 The largest increase in appropriation 9 requested is $12 million in Class 200 funds for the 10 Department of Licenses and Inspections to cover 11 demolitions and other NTI-related activities. 1 million in Class 100 and 200 14 appropriations for the Philadelphia prison system 15 to cover overtime expenses resulting from 16 higher-than- anticipated inmate population levels 17 and the cost of inmates being housed in Delaware 18 County. 8 million for the Department of Public 21 Property's Class 200 appropriation of which $3 million is an internal transfer from its Class 800 and $1 million transferred from telecommunications Class 200 appropriation. The increased appropriations will cover the costs of 6 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 security upgrades in City facilities made in response to the terrorist attacks on September 11th. 1 million is requested in the Fire Department's appropriation to offset overtime expenses incurred as a result of the bioterrorism response and costs related to the arbitration award. 5 million to fully fund expected contractual obligations for outside legal counsel. Increases are requested in the Department of Recreation's Class 200 Veterans Stadium Complex appropriation in the amount of $413,698 to cover higher insurance costs and contract costs due to prevailing-wage rate clauses. And in the Department's Class 100 appropriation, the amount of $73,197 to cover overtime costs related to conversions of Veterans Stadium field for football and baseball uses and for salary increases. The Sheriff requests an additional $400,000 in Class 100 appropriation to cover overtime costs related to increased anti-terrorism 7 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 security in. Additionally, the Administration requests $361,875 to fund increases in the City's contract for legal services with the Defender Association of Philadelphia to cover office moving expenses and additional rent in the Association's new location. An increase of $327,509 is requested from the Mayor's Office of Community Services to fund Empowerment Zone staff salaries and related expenses that were previously funded through a grant. The Administration also requests $300,000 in the Director of Finance Class 200 appropriation and $289,938 in the First Judicial District appropriation for lease payments for Community Court. Another increase in appropriation is requested for the Fairmount Park Commission. This appropriation of $240,731 is primarily to fund volunteer coordinator positions and maintenance of the Johnson art collection. Other departments requesting increases include the Commission on Human Relations, $105,000; and the Atwater Kent Museum, $9,809. 2 million from the Director of Finance - Employee Benefits line -- those funds are available because there were fewer employees than had been included in the budget. Additionally, there's $872,493 available from the Department of Human Services because the State did not include funding for some requested support in the needs-based budget.
Internal transfers, where there's no net increase in appropriation level, includes $469,108 from Class 100 to Class 200 within the Mayor's Office of Information Services to cover contractual staff support; $225,00 from 200 to 300 and 400 within the Department of Public Health to purchase medical supplies for neighborhood health-care centers and the public lab; $129,062 from Classes 300 and 400 to Class 200 within the Police Department to cover drug testing, helicopter 9 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 insurance increases, and automated fingerprint identification system maintenance. Other internal transfers include the Office of Fleet Management for $85,842 to be transferred from Class to Class and 400; City Treasurer for $19,844 from 2 to 100; and the Capital Program Office for $4200 from Class 200 to Classes 3 and 400. I have testimony on the other bills. Would you like me to read those now, or should we just do questions on the first bill first?
My question is, can someone give us more detail regarding the security improvements planned for City Hall and the MSB?
What kind of improvements? how long will the improvements take? and when will they begin?
I'm going to have Rick Tustin of the Capital Program Office to come up here and give that detail. 10 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 (Witness comes forward.)
Good morning, Councilwoman. My name is Rick Tustin and I'm actually the Director of the Capital Program Office. After the events of September the 11th, our office was asked to come in and look at City Hall, MSB, and One Parkway as the initial areas of improved security, for improved security. We met with several firms, outside firms, to put together a plan of what we feel needed to be done for these three buildings to increase the security. And we actually ended up with a detailed list of for 15 City Hall in particular, 16 subprojects that we 16 felt needed to be done. Those projects include: Site security work, which includes installation of new bollards around the perimeter of City Hall. These are what they call "pipe bollards," which actually go at the curbline, which protect the building from vehicles being able to be driven up on the sidewalk and getting underneath the building or adjacent to the building. Addition of some security cameras around 11 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 the exterior of the building as well so that security personnel can see what's happening outside the building before it gets inside the building and hopefully be proactive in taking counter measures. In addition to that, we would be making security improvements to all the exterior doors, looking at putting in a card-access system on all the exterior doors so that people who want to access the building, employees in particular, would use a card-swipe system that would allow them to enter the building at any time. It would also record the time and date that they entered the building as well. In addition to that, on the exterior of the building, we would be putting in new portal gates around the exterior of the buildings. Those portal gates would be opened and closed daily by the Department of Public Property so that it would restrict access to the courtyard of City Hall during after-hour times. And, also, we looked at how you could enter the building of City Hall, because that's always a concern, how you can get unauthorized entrance to the building. We found there are 12 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 several ways of getting entrance to the building itself without being observed. One area is through the basement area. On the northeast corner, there's an old tunnel that goes into a concourse entrance that has been inactive for years, but yet it's still -- people can get through if they want to, so we'd be sealing off that entrance. We'd also be looking at securing all of the grating around the perimeter of City Hall. Right now, the grating, which goes over an area, which would then lead you down into the basement area, can be picked up. They're only in four-foot sections of metal grating, so we would have to secure that so it would not be able to be picked up and get moved so people could get access down there. In addition to that, after we looked at the exterior of the building and how you get into the building, then we started to look at the interior of the building itself and what we could do to improve security within the building. The northeast corner and the northwest corner have been traditionally the public access into City Hall during normal working hours. We met with the 13 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 Department of Public Property and the Police Department and other departments as well to look at putting in a security kiosk at each one of those entrances that would have security personnel staff there, as well as a turnstile system that again would be activated through a card access. There would also be a queuing area for visitors to come and sign in, to leave some form of identification, at which point they would be given a security badge to go into the building.
We have not resolved the issue of whether those people should be escorted from staff within the building up into the building or whether they would be just given a visitor's badge, and as long as they had some sort of identification that they would leave at the security desk, they would have to come back and pick it up. In addition to that, we're also looking at improving the security within the floors of City Hall. We're looking at doing that through a series of cameras within the hallways of City Hall as well as metal detectors as well at several of the entrances. In addition to that, we're looking at 14 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 this City Council chamber here. We've been asked to look at what we can do to secure this room and provide some sort of a separation between the gallery area and the Council area itself up front here. We've looked at putting in some sort of a plexiglass system so that people would be able to observe what's going on, but there would be a level of enhanced security, enhanced security, for City Council sitting in chambers. In addition to that, we're going to create a security fire command center, which will be located in the northeast corner behind what's known as freight elevator, and that security console and that security command center will be the point where all the cameras throughout City Hall as all of the detectors on the doors would be tied back into that station. People manning those consoles will, through walkie-talkies, have direct access to the security staff that would roam through City Hall, and so if there was a breach of an entrance or if they were notified of something that was inappropriate, they would be able to contact somebody to go investigate it right away. So we've actually looked at many, many 15 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 ways of improving the security of City Hall, and we've put together some preliminary numbers to do that work. And although I've just given you a brief overview, we actually do have a full PowerPoint presentation -- I'd be willing to come and give you one -- of the actual security of the building. As far as timing is concerned, several of the projects I just mentioned we've already designing in-house: The bollard system around the perimeter, the securing of the tunnel, the grating around the perimeter, as well as the modifications of the first-floor windows we've already started documenting in-house. We can't implement it until we have the funding to do that, but we wanted to get the design done. We've met with the Historic Commission and Art Commission on several of the projects. We've discussed them with the Department of Licenses and Inspections and Procurement so that the normal time that it takes to move projects through, we can try to cut some of that down and move projects through quicker on this type of work, 'cause it is security for the building. 5 million of security.
There were recent articles in newspapers regarding federal money becoming available for the homeland security for cities wishing this type of improvement. This money would be available through grants. Will the City's expenditure, the $8 million or so, be replaced if and when the federal dollars become available? Could you walk us through this process? When will the federal money become available and what other plans does the City have for federal money?
We're actually in the process -- let me take a step back. As we understand what President Bush included in his budget was reimbursement for costs going forward for security matters that we're actually putting together estimates of our costs like from this point forward and we'll put it in a package that we'll send to the feds to seek reimbursement, and we will include these costs in that package. We're not sure of what their timing is and we don't know what amount of money we would get out of that.
But it will 17 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 become available?
There's money available in the federal budget, but we don't know what they'll wind up approving and what they won't approve.
Thank you, Madam Chair. Mr. Tustin, thank you for the overview. Now, does that somehow relate to -- testimony in our package today in Public Property talks about security improvements to City Hall, MSB, and One Parkway. These improvements include close-circuit cameras, etc. The estimated cost of these improvements is $8 million
Is that the same as the -- is the 6.5 million for City Hall a part of the 8 million?
Yes, yes it, does, Councilman. 18 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39
All right. And let's talk about funding. I understand from Mr. Dubow's testimony that we're going to make application to the federal government, but as he indicated, and I think as we all know, that remains to be seen, and the feds' fiscal year starts in October. What are we going to do on our own to speed up this process and allocate any dollars to make sure that funds are available for these three main buildings here in Center City? The $8 million in the Public Property testimony, where is that?
Okay, all right. And what's the timetable for these various projects?
Well, as I said previously, we've broken 'em down to 16 subprojects because it was a good way of us getting our hands around the 19 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 amount of work. The first four projects, which are the bollard projects and the security grating enclosing the tunnel area and the windows, we would hope to start the implementation of that as soon as the transfer money is available. As I said, the design work is almost complete for those four subprojects, so we'll be able to move on them very quickly once we have money available. One of the things I forgot to mention was the elevators on the northeast and northwest side of the building will also be improved as part of the security. We will be adding some additional cameras to that as well. And that design work is actually already underway; we had funding to proceed with hiring a design firm to evaluate all of the elevators within the building and then give us the cost to upgrade the elevators, particularly in the northeast and northwest corner. So that work underway as well. And actually, none of the installation can actually start until we have the funding approved through this transfer ordinance to start the work.
Can you forward to the 20 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 Chair a fairly detailed schedule with your estimations on start and completion date of the various projects?
And, Mr. Dubow, just so that I better understand, on your Schedule A, the reason I asked the earlier question, I didn't see $8 million for Public Property.
Oh, because there's some internal transfers in Public Property, so you see less than the full amount because there are savings in their Class 800, which is the water bill, and there's savings in 100, which is telecommunications, so we used that to offset some of these costs
Okay, all right. Thank you. That's all I have on that particular issue, Madam Chair. I will have other questions.
I would like to 21 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 get into the prisons.
You don't really want to get into the prisons; you just want to talk about them. (Laughter.)
Good morning, Commissioner. COMMISSIONER COSTELLO: Good morning, Councilwoman.
As much as I respect you, I take back that other statement. What is the current prison population? COMMISSIONER COSTELLO: The current prison population today is a little over 7600.
I'm sorry, I'm sorry, excuse me. Please state your name for the 22 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 record. COMMISSIONER COSTELLO: Thomas Costello, C-O-S-T-E-L-L-O, Commissioner Of Prisons. To my left Ed Semanski, who is our Fiscal Officer.
Thank you. You may continue, Commissioner. COMMISSIONER COSTELLO: Our population today -- I just received the latest number -- is a little over 7600; that's the total population that the prison system is responsible for. The actual number is 7667, and that includes 6,860 males and 797 female inmates.
Excuse me, repeat that. COMMISSIONER COSTELLO: That's 6,860 male inmates and 797 female inmates.
What is the capacity for prisoners outside the City, for example, in Delaware County and other areas where we transport our prisoners when our jails become overcrowded? COMMISSIONER COSTELLO: The capacity right now is 450.
Is the prison cap 23 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 going to become an issue again, do you believe, and what is the City doing to address the growing number of prisoners in our prison system? COMMISSIONER COSTELLO: I'm sorry, Councilwoman. Could you repeat the first part?
Is the prison cap going to become an issue again? What is the City doing to address the growing number of prisoners in our prison system? COMMISSIONER COSTELLO: The City cap -- the actual cap for the prison system, as far as the courts are concerned, was eliminated in 1995. The last cap, the official cap that we had, was 5600. We do have a goal to reduce the population at least to the level that we would not require to take inmates or house inmates outside of the prison system. Looking at the numbers today, the self-imposed goal, I guess, for the City would be around 7,000. Given the numbers that we're housing outside the prison system, that would be a reasonable goal to try to maintain. There are a number of initiatives that are -- that have been undertaken by the Office of Population Management, including a lot of 24 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 alternatives to incarceration. There are -- there's also a new facility being constructed that will open in the early part of 2003, which will also will add relief to the system and provide additional beds, about 768 additional beds total.
Mr. Costello -- or Commissioner Costello, I didn't understand a part of your response. The cap that had been lifted was 5600; did you say that? COMMISSIONER COSTELLO: Yes, sir.
Okay. And where did that number come from? COMMISSIONER COSTELLO: That number came from the court, from the federal court.
Okay. And what was that based upon? COMMISSIONER COSTELLO: That was based upon the standardized capacity of the Philadelphia prison system, I believe, in 1990, when the 25 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 moratorium first kicked in.
Okay. And so why would we have a goal that is 1400 more? COMMISSIONER COSTELLO: Because since the time of the cap that was placed on the City, we've added several thousand beds to the system.
Well, what's the capacity of the system now? COMMISSIONER COSTELLO: Well, the operating capacity right now inside the system would be determined on the classification of the overall population and how much space would be needed to dedicate to each aspect of that classification. On a normal day, with the number of beds --
I have no idea what you just said. I heard the words; I do not know what they mean. COMMISSIONER COSTELLO: For example, we have about 850 beds dedicated to the female population. On any given day, if the population is below 850, then those beds -- then we do not take -- we have -- that's the capacity for the female population. If the population grows and we 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 have to -- based on the classification of the inmate, that would be the first classification right now, male and female. If the population would increase, then we would have to take beds away from the males, and that would affect the total number of male beds that would be available. So --
Do you move the females into the male area? COMMISSIONER COSTELLO: We would not move the females into the male area; we would take beds from the male population and --
Physically move beds out of the male area into the female area? COMMISSIONER COSTELLO: Not move beds. Probably operations, or pick a part of the facility or another small facility.
All right, let me ask it this way: How many beds do we have available for people to sleep on? Or how many cells do we have to house people? What -- I mean, I'm still back at the first question. What is the capacity of the system?
Councilman? 27 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39
We keep speaking about beds and you could place beds in the hallway.
No, I understand that; that's why I wanted to talk about cells.
Okay, that's the point that I wanted to get to. COMMISSIONER COSTELLO: There are no beds in the hallway, Councilman.
All right, good. COMMISSIONER COSTELLO: Councilman Ortiz, there are no beds in the hallway.
How many cells are there, how many rooms are there? What is the physical capacity of the system? COMMISSIONER COSTELLO: Councilman, I will give you the physical capacity of the system. I will give you the number of beds in the system, but that will not give you the physical capacity at any given time.
Why. Does everybody not get a bed? COMMISSIONER COSTELLO: Because there are 28 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 beds that are dedicated to certain classifications that cannot be used for anything but that classification. For example, we have 400 beds dedicated for intake; those 400 beds have to be available at all times for an intake population that cannot used by anyone else but new inmates coming into the system that are quarantined for three days.
Right. COMMISSIONER COSTELLO: So even though I'm going to give you a number, the number will not reflect, for instance, the number of inmates that we can hold in the prison system under standardized conditions. And that number is 7256.
What? What is 7256? COMMISSIONER COSTELLO: 7,256 beds within the system either in cells or in dormitory settings.
All right, why don't we do this: Why don't you give us, through the Chair, a chart laying out all of the facilities, all of the beds, who they are dedicated to, and how they're used; and then in a separate box, show me how they are being used today, as we speak, for the 29 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 population that you have. COMMISSIONER COSTELLO: Okay, Councilman.
That would be helpful 'cause, I mean, we could, like, stay for the rest of the day, the Chair would be very upset with me, and eventually we could get, like, to an answer, but why don't we do that. COMMISSIONER COSTELLO: Okay.
You said cells and dormitory settings. What is the difference between a dormitory setting and a cell? COMMISSIONER COSTELLO: A cell holds no 16 more than two inmates. Under the American Correctional Association's definition for a cell, under the physical plant standards, a cell holds one or two individuals. A dorm holds anywhere between 3 and 50. So 3 and 50 are considered dormitories -- a dormitory, and a cell would be considered one or two.
How many of the inmates today are in dormitory settings? By "dorm," you mean sort of like a barracks-type of setting in 30 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 which they share one bathroom, the shower, or whatever it is? COMMISSIONER COSTELLO: They would be in an area that would hold less than two and three or more. I could give that information to you, Councilman. I'd have to break it down.
You don't have how many there are today in dormitory settings? COMMISSIONER COSTELLO: I have the number here. I have the housing and assignment plan which delineates each area, but I would have to break that down in each facility because, for example, some facilities have both dorms and cells. So I would have to break that down and just tell you how many dormitory beds are available in each facility and how many cells are available.
I took a tour the other day, and I -- well, it was more or less the medical facilities, so I didn't -- I didn't go through the whole system, but, yeah, I'd like to see the Chairperson get a framework of where these dormitory settings are and how many are currently in the system at this point. And I would like to -- for you to give us, 31 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 if you can, the number of -- I know that it's not here, but the number of prisoners diagnosed with hepatitis C and HIV as they come into the system, the current number of prisoners with hepatitis C and HIV. COMMISSIONER COSTELLO: Okay.
Is any of this money going for the prison system health contract? COMMISSIONER COSTELLO: The transfer ordinance, no, sir.
Thank you, Madam Chair. Good morning, Mr. Costello. COMMISSIONER COSTELLO: Good morning, Councilwoman.
How many inmates do we have housed in Delaware County? COMMISSIONER COSTELLO: This morning, we have 414.
Okay, so when you 32 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 speak of completing a new facility that will allow you to have a greater capacity here in Philadelphia, you're talking about the female facility that you're currently building? COMMISSIONER COSTELLO: Yes, ma'am.
Okay. COMMISSIONER COSTELLO: The female facility that's going to provide us relief next year.
Next year is when it's completed? COMMISSIONER COSTELLO: Yes, ma'am.
Okay. So then, therefore, you won't need to send people to Delaware County, hopefully. I mean, it depends on how many people get arrested, I do understand that. What is the capacity at the women's facility at 17th and Indiana? COMMISSIONER COSTELLO: 232.
What is the current population? COMMISSIONER COSTELLO: Today the population there is at 223.
Okay. So it's 33 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 almost at full capacity, actually. COMMISSIONER COSTELLO: Yes, ma'am.
Okay. All right, those were my questions. Thank you.
Thank you very much, Commissioner. COMMISSIONER COSTELLO: Thank you, Councilwoman.
Mr. Dubow, could you tell me how much money has been appropriated to L&I specifically for demolitions since January the 1st? I recall a $10 million appropriation and there have been others.
The original FY 2002 budget had $2 million for demolitions, and then we added a transfer that had $8 million, to bring the total to 10.
How many buildings have been demolished under the program since last year? Are broken down by Council Districts or Council offices receiving a list of properties scheduled for demolition in their districts? 34 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39
Commissioner McLaughlin, do you have that? (Commissioner McLaughlin and Bob Solvibile come forward.)
Good morning, Commissioner. Please state your name for the record. COMMISSIONER MCLAUGHLIN: Ed McLaughlin, Commissioner of Licenses and Inspections.
Good morning, gentlemen. You heard the question? COMMISSIONER MCLAUGHLIN: I'm sorry, what was it?
Shall I repeat it? COMMISSIONER MCLAUGHLIN: Yes, please.
Can you tell me how many buildings have demolished under the program since last year? Are they broken down by Council Districts? Are Council offices receiving the names of the properties within their Council District? 35 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 COMMISSIONER MCLAUGHLIN: We do break it down by Councilmatic District, and I don't have that with me, but we can get that information
You can get it to the Chair? COMMISSIONER MCLAUGHLIN: Yes.
Thank you. COMMISSIONER MCLAUGHLIN: Can we expand on that?
Also, Councilwoman, we manually send out a monthly report to the Council Districts with the addresses of the buildings that were demolished. We had some difficulty 'cause the young lady doing it is ill with a serious problem, and we haven't done it for a month, but we did catch up recently, and you should get that now on a steady basis, on a monthly basis, a breakdown of the buildings demolished in your districts.
Thank you. While we're on the subject of demolition, I'd like to go one step further and discuss vacant 36 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 lots. I have been trying to get various fencing jobs completed at recreation centers in my district. Some of these jobs have been pending since last year. When our office calls to inquire about these ridiculous delays, we are given all kinds of excuses. The new one is that the contractor executing the City while fencing contract is busy fencing vacant lots. I wasn't aware that we were fencing vacant lots under the vacant lot program. Are we fencing vacant lots? COMMISSIONER MCLAUGHLIN: No, not unless we get a special request, but nobody should be busy because they're doing vacant lots. That is not correct.
Well, that's what we're being told. COMMISSIONER MCLAUGHLIN: By who?
The Recreation Department, 'cause we need fencing in the recreation centers and they said they're too busy putting fencing around the vacant lots. I'll have to look into that, but that's what we're being told. 37 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 COMMISSIONER MCLAUGHLIN: For me, I can tell you that we're not putting any burden on anybody.
Maybe he's not telling the Licenses and Inspections that they're doing that.
Because we are having a problem getting fencing in the recreation centers, but they're saying this is what they're doing. Okay, you will get back to me on that, Mr. Dubow?
Thank you. Councilman Ortiz, do you have questions?
Yes. Commissioner and Mr. Dubow, with the 10 million plus the $12 million, that's $22 million that have been transferred to Licenses and Inspections during the current year for demolition and other NTI-related activities. Do you have a record of -- the Chairman asked you for the 38 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 demolitions. What other related activities -- this goes beyond the bond issue that we have that we passed the other day, right?
Is this an advance on the bond issue, or is this going to be deducted from the bond issue?
Last January when we testified on the budget, we said that if we did not pay the full -- at that point, we had $20 million budgeted for debt service on the bonds. We said if we did not spend that on debt service, we would apply it to other NTI activities. So it's separate from the bond issue. In other words, the money's available because the bond issue's being issued later than when we had anticipated.
Do we have details as to what the $10 million and the $12 million have been used in terms of all of the related NTI activities? I see Pat shaking her head so --
Yeah, the 10 million is what 39 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 Commissioner McLaughlin committed to getting more detail on, and I'll let Pat Smith answer about the additional 12. COMMISSIONER MCLAUGHLIN: But the answer is yes, we do have detailed information.
Good morning. My name is Patricia Smith, the Director of Neighborhood Transformation Initiative. In addition, the $12 million will be broken down into basically four categories. Approximately a little bit more than 6 million will continue to support demolition activities through the end of the fiscal year. In addition, we are allocating $4 million to support acquisitions that have been in the pipeline for which we did not have sufficient community development block grant activities 'and that represents, I think, about eight or nine projects for which there were acquisition requests, and it's a combination of supporting Act 94 and urban renewal taking. In addition, the City to date has encapsulated approximately 54 vacant properties to prevent deterioration. We will also use some of the 4 million to support the Act 94 condemnations 40 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 of the encapsulated properties so that we can be in a position to have them rehabbed and put back into occupancy, as opposed to their staying there. I do have a list of the projects available for the committee. We've also --
The work that has already been done, not what is being planned only, but what already has been done.
Well, out of the million, 12 this is all going forward as opposed to retroactively, so this is new activity.
Yes. You'll have a combination between what the Commissioner's giving you of what we've done so far and what Pat's giving you of what we're going to do. So between those two things, you'll have all $22 million.
All right, okay. Normally in a transfer ordinance situation -- I'm sorry, Councilman.
Go ahead. 41 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39
Often, we're giving the department money to pay for things that have actually already been done in some instances.
I understand, okay. I have my own questions about these issues but, Councilman, I cut across you, sorry.
Miss Smith, were you saying that you're going to give us -- I'm looking at the Commissioner's testimony for Bill 38, and there's $6.4 million for demolition and activities related to demolition, $4.1 million for redevelopment activities?
And that is what is our land acquisition/land assembly pipeline. I do have a list of the outstanding -- what we've been calling "the acquisition pipeline." These represent projects that we hadn't been able to fund the condemnations either through Act 94, urban renewal takings.
Because they hadn't been 42 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 sufficient. It's sort of like the demand was greater than our resources out of CDBG for the past year or so. So this is representing us clearing up that backlog of outstanding requests.
Well, how long have these projects not had money available?
I couldn't speak to the exact timeline; these are just funded requests that we have not been able to support out of the CDBG block grant. I could find out specifically how long they've been in the pipeline.
Out of -- now, what year are we in, 26? Or are we in 27?
Year 27. And you're saying out of the -- what was the Year 27, $71 million, 77?
That we didn't have $4.1 million for acquisition -- 43 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39
No, the money was all committed mostly to other developmental activities, and I can have, you know, the Office of Housing and Community Development speak specifically to that. We did not allocate any funds for acquisition in Year 27.
Because, you know, you have X-amount of dollars that are available, and there were a number of development projects that were in the pipeline that were funded as well as the other traditional, you know, OHCD-type activities.
Councilman, is there a timeline being set now? Is there a timeline that you're setting for the expenditure of the monies that you're asking for?
Yes. I mean, as usual, to complete the whole process for urban renewal taking or Act 94 taking can take, you know, anywhere up to 12 months. What we would be doing is to begin to contract with the RDA to fund up to $4 million by the end of the year then begin to put together specific acquisition budgets for projects that are in the pipeline. Like I said, I have a list of 44 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 projects that we're looking at. We're also looking at initiating the Act 94 condemnations for encapsulated and stabilized properties that haven't been (indiscernible) over the last year or so.
One last intervention. Out of this money, how much of it is being contracted out and how much is being done by L&I in-house?
My understanding with demolition, that's all purchase of services activities. The Act 94 activities, the City contracts with the Redevelopment Authority and funds that activity. The preservation and stabilization activities, again, that's been primarily funded -- done through a contract with the Housing Authority, but the preservation activity also includes a home improvement grant program called "It's Your Turn," which is the City's contribution.
Do we have details as to those transactions, and can those details be 45 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 given to the Chair?
We would like to see a list of people that have been contracted out and to whom and what is the timeline and the amount of monies.
Miss Smith, again, I thought there was some discussion about this back in the spring of '01 when we were dealing with the Year 27 CDBG budget. I'm still, I guess, not really understanding why we wouldn't allocate some of those dollars for acquisition activity especially for projects that are, quote/unquote, in the pipeline. I mean, what was -- when did you think these dollars were going to become available or where were they going to come from?
Well, initially when we were putting together the block grant application for Year 27, in the preliminary plan, we indicated funding acquisition land assembly out of bond 46 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 proceeds in the upcoming fiscal year. That freed up, you know, the dollars to go ahead to fund a number of development projects and other --
Well, I understand that, but my recollection is that by the time -- by the time the CDBG final plan was approved, I think that that was in early June?
And in another couple weeks, the session was ended, so I think it was pretty clear by CDBG time that there weren't going to be any bond proceeds, right?
Well, we were still hoping that we would be able to get, you know, the ordinance and everything passed and some time to do something this fiscal year.
Well, I understand that, but then this past fall, we also had a budget transfer ordinance. Do you have any recollection of that? Or, Mr. Dubow, weren't you here sometime last fall on a transfer ordinance?
The demolition portion of the transfer ordinance, you're talking about? 47 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39
Could have been. I just remember there being an Appropriations Committee hearing sometime last fall.
We came in for a transfer ordinance in the fall for increases in appropriations for commissioners, sheriff, and the defender. We had promised to make those transfers as part of the process last year.
Yeah, and that's all we included in that transfer. They were the things that we had promised to do in the budget process.
Well, I understand that. Did someone consciously decide not to include either this demolition money or this acquisition money at that time?
We consciously decided that that transfer ordinance was going to have only the things we promised to do in budget, so that was all it was. 48 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 I mean, this is typically when we come with our transfer ordinance.
Okay. Now, Miss Smith, did you commit to one of my colleagues that there would be a detailed listing of the $4.1 million?
Actually, I have a listing now of the acquisition pipeline and the projects listed.
Okay. And what's the $1 million for preservation activities; what does that mean?
That would include what we call our preservation, encapsulation, stabilization work going forward.
That's basically citywide, and what we said we would do is work with the Councilperson on identifying properties to be stabilized within their Council District. It also includes money for the It's Your Turn Program in West Oak Lane.
The what? 49 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39
It's Your Turn program is a program, a home-improvement grant and program initiated by the local initiative support corporation, GMAC, and the Nationwide Insurance Company. It was a program working with a CDC in the northwest to provide over 700 loans and grants to home owners in that area to do home-improvement loans.
How many encapsulations do you think you'll be able to do?
We generally budget between -- I mean, we probably -- I think we do around 30 or 40 a year. So I think we'll be able to do about 50.
What is that, Management Information Systems and -- what's IT, Information Technology