Brokerage Concepts, Inc. is located in King of Prussia. I believe they have 84 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 a subsidiary office on Walnut Street. They are considered to be one of the leading firms in employee health-benefit consulting. And the principal is a gentleman by the name of Arnold Katz.
Okay. And so what are they going to do or what have they done?
Well, they've done a big portion of what we contracted with them to do. We asked for a very quick turnaround on the development of an RFP; in fact, we gave them only two to three weeks to develop it. They've developed it, they've put together a list of potential bidders. They handled the entire RFP process. They evaluated the proposals that the City received. They worked the City folks through the assessment that they prepared, and they then they actually worked with us in negotiating the agreement with Independence Blue Cross. That's what they've done so far.
They are in the employee health-benefits business. 85 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39
They advise -- they do consulting for organizations, including governmental organizations, and I believe that they also do brokering services
And what's the nature of their relationship with the various benefits providers?
Well, I'm assuming that they've also negotiated with Independence Blue Cross on behalf of other clients.
Again, they're only doing the medical portion of the plan for us. And as most of you know, the plan consists of four major 86 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 portions: One is medical, then there's dental, optical, and prescription.
And you're saying that the only benefit to the company out of this relationship with the City is the $300,000 flat-fee contract?
Okay. And no other dollars flow to them as a result of any negotiations for the development from outside parties?
Okay. And the result of which is the current benefits plan that we have?
Okay. And if we have issues or problems with the benefits plan, do we talk to you now, or do we talk to Brokerage Concepts, or do we talk to the personnel director? Or who's in charge?
Well, I think it's a dual responsibility between the personnel director and myself.
Okay, all right. 87 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 Mr. Dubow, there's $12 million in leftover money because, what, positions are vacant?
We have about 600 fewer positions now than were included in the budget.
Well, for a number of reasons, but one is that we've had a hiring freeze since November, which we imposed as we start to see what's happening with the economy.
I mean, when you funded the positions in the '02 budget, you must have had a sense either, one, that they were going to be filled; or, two, that they were possibly never going to be filled and you maybe have about 10, $12 million sitting around off to the side in the employee benefits account. Which was it?
When we put together the budget, we anticipated that they'd be filled.
All 600 of them? 88 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39
Yeah. But as the year went on, they have not been filled. I mean, in part, because we haven't been hiring people for the last three months.
Mm-hmm. And what's been the impact on City services as a result of not filling the 600 positions?
Well, we've challenged our departments to do more with less, and so far, they've been able to.
And they'll be able to for the rest of the fiscal year?
$469,000 for contracted staff support. What does that mean? (Witness comes forward.)
In part, I'll give a short answer, and Mr. Bortnick can give the longer answer. The Mayor's Office of Information Services had problems keeping and retaining people, and 89 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 they've had to supplement that through contracts, and so --
I'm sorry. What's the first part of what you said? MOIS has had a problem keeping people?
Karl Bortnick. Madam Chair and members of City Council, my name is Karl Bortnick. MOIS is a competitor agency in the high-tech industry, and like a lot of companies -- in this case, a public company -- our wage rates are frequently not competitive most often so, and we lose people to a more competitive private sector and are, therefore, obliged to supplement our services with contractors.
Who are some of these contractors and why do you need $469,000 more?
The contracted areas that frequently we are hiring into are in the areas of networking and desktop support service. In this particular year, one additional area was important. We began to work in the area of electronic 90 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 government and also with services to provide RFPs in areas that we talked about at the previous hearing on Friday, the customer information work order management system.
If you could forward to the Chair a listing of who all these cover -- I'm reading from the testimony -- to cover contracted staff support for the $469,000, I'd be very interested in that.
Through the Chair, we'd like to know for each of the contractors what they're being paid, the nature of their contract, the length of the contract, and the services to be provided.
Not for the information services. Councilman Nutter began a line of 91 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 questioning in which I was interested in, and that's the transference of -- and Eva Gladstein is not here, okay. The transference of the Empowerment Zone staff to the City General Fund, and I'd like to find out what is going to be the impact of that on the General Fund. Is it going to be an increase beyond what we have here on the budget? And we don't have very many details as to the Empowerment Zone's projects and functioning, and maybe we would like to begin looking into that. And if you can forward to us the projects that they have, loans, staffing levels, and where this money is going to go to, and I think we would be highly interested to begin finding out what new departments are being added to the General Fund. And are they going to come under the Managing Director's Office, or what department is going to be overseeing --
Yeah, we can get you all that information, and in addition, they're included in the '03 budget, and we'll give you the amount of that.
Well, I'd like to get 92 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 the details in terms of projects, loans, and so on down the line and what has transpired with the money that they did get from the federal government and their grants.
Okay, that's all I have on this bill. By the way, is the new Health Commissioner here?
I just want to say congratulations to him, that's all. Congratulations, sir.
I just have one question about the Judicial District.
Can you explain the appropriation to the First Judicial District. The $289,000, what is this funding used for?
For the First Judicial District's costs related to the opening of the 93 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 Community Court.
How much is that? 289 goes to the Community Court?
Yes, all of the funding for the First Judicial District, including these transfer ordinances, is for Community Court expenses.
Kevin Cross from the First Judicial District is going to answer. (Witnesses come forward.)
Good morning, Councilman. I'm Kevin Cross, Deputy Court Administrator for Financial Services for the First Judicial District. With me is Glen (indiscernible), Deputy Court Administrator for the Municipal Court. The Community Court is being funded by various funding sources, some of it being the City's General Fund, but also some from the Pew Foundation also.
I don't have those figures 94 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 with me directly, and I can get them for you today.
There's the sources and uses of funds that the City has prepared that I have a copy of, and I can provide that to you.
Thank you. Are there any other questions on this bill? Councilman Nutter.
Mr. Dubow, at the bottom of of your testimony and, then I'm going to have, I think, three other questions. Generally it's been understood within some range that most costs out at the airport --
Actually, that does go into 39. Are you prepared or do need a few moments to get ready for that? 95 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39
No, I'm prepared for questions. Do you want me to read the testimony before we go into any questions on it?
Does anyone have any questions on 38 yet? (No further questions.)
Did you want me to read the testimony on the other two into the record?
There's been kind of a general belief within some range that most costs out at the airport are pretty much borne to some extent by the airlines and that the City's costs out there are actually relatively small compared to the sprawling nature of that operation. Obviously, with September 11th, we have to 96 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 put an additional group of people out there, and I'm sure that much of that service continues. How will any of those additional costs be absorbed by airline-related activity as opposed to staying essentially on the City's side of the financial ledger? Has there been any discussion about that?
None of these costs are being absorbed by the City; it's all coming out of the Aviation Fund.
Okay, all right. Why don't we go to the Fairmount Commission. In the testimony, since Fairmount Park has recently been assigned responsibility for maintaining the turf at Logan Triangle, Ninth Street, and Roosevelt Boulevard, the question is, who had responsibility for these before? And why is the park picking this up? (Witness comes forward.)
Good morning, Councilman Nutter and Councilpeople. I'm William Mifflin, the Executive Director of the Fairmount Park 97 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 Commission, and I can answer directly the second part of your question first, if I may. The Logan Triangle, Ninth and Roosevelt Boulevard, and Wingahocken Street is the former area of the sinking homes, and the area was cleared, and vegetation grew after the demolition. And we have been using our requirements contract, mowing contractor, now to maintain that area. Who was doing it previously, I'm actually not certain, but we were asked last year to include this in our mowing contract, so we've done so.
And through this transfer, you're going to have the money to be able to do it?
That is one in the -- the Logan -- it's the Logan area of the City of Philadelphia.
Oh, that Logan Triangle. I'm sorry. I was confused between Logan Circle and Logan Square.
I apologize. Right, it's a 98 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 little confusing.
I would just like to take a moment, I believe, with the Fire Commissioner and our Managing Director, I believe that you can leave 'cause I know that you have a very busy schedule. Thank you very much. I'm sorry.
Thank you, Mr. Mifflin. With regard to DHS, the $873,000, can someone just tell us what happened there?
When we put together the budget, we assumed that the State funds -- I'm being deserted -- will fund everything that's in our needs-based budget.
The ship is going down quick, Rob. You better jump while you can. (Laughter.)
We assume that the State will 99 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 fund the needs-based budget. To the extent that they don't fund our requests, there are things that we can't do, and that's what that relates to.
Okay. Last question. Capital Program Office. In Mr. Tustin's testimony, he --
We had some discussion just last week about -- during the Capital Budget time about staff -- excuse me -- being funded on the Capital Program Office, the salaries of which are being paid from Capital Program dollars
In this testimony, we now have, it looks like, the Recreation people coming over to the Capital Program Office, but you're apparently now deciding to pay them out of the Operating Budget. So last week, you defended paying people from the Capital Budget; this week, you're having people pay out of the Operating Budget. What's it going to be?
The salaries are paid out of 100 2/19/02 APPROPRIATIONS - BILLS 020037, 38, 39 capital. This is just some of the office supplies and equipment for those people that we've always paid out of operating.
All right. So even these folks, their salaries are still being paid out of capital.
But you're getting them pens and pencils and drafting paper out of operating.
Any questions on the other bills? No other questions? (No further questions.)
I believe this ends the public hearing. This committee will stand in recess till the call of the Chair. Thank you very much. (Proceeding ends at 11:50 a.m.) 101 CERTIFICATE I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia's meeting of the Committee on Appropriations of Tuesday, February 19, 2002, are contained fully and accurately in the stenographic notes taken by me upon, and that this is a true and correct transcript of same. RE: Ordinance No.'s 020037, 020038, 020039 _______________________________, Josephine Cardillo Registered Professional Reporter and 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.)