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Minutes

Committee Hearing, October 10, 2001

Philadelphia City Council Committee HearingsOct 10, 2001

COUNCIL OF THE CITY OF PHILADELPHIA CONTINUED PUBLIC HEARING COMMITTEE ON LAW AND GOVERNMENT - - - Wednesday 10/10/01 2:19 p.m. Room 400, City Hall Philadelphia, PA - - - RESOLUTION NO. 000476 - Authorizing the Committee on Law and Government to investigate whether the City-administered health plan, current and in the past, has provided the most comprehensive and cost-efficient coverage to City employees for the premiums paid, and whether the City could provide more comprehensive and less costly coverage to the approximately 8,000 employees and retirees currently covered by this plan if the other option were pursued. PRESENT: COUNCILMAN DAVID COHEN, Chair COUNCILMAN ANGEL L. ORTIZ, Vice Chair COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN MICHAEL A. NUTTER COUNCILMAN FRANK RIZZO COUNCIL PRESIDENT ANNA C. VERNA - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 I N D E X Linda Berkowitz......................... Deputy Secretary of Financial Oversight 3 10/10/01 LAW & GOV'T RES. 00476

Councilman Cohen

The Committee on Law and Government considering Resolution 476 is now in session. There is a continuing quorum: Councilman Nutter is present; I'm David Cohen, the chairman of the committee; to my left, not really, but he sits there to my left, is Councilman Ortiz, the vice chair of the committee. The committee would like to call very briefly Miss Berkowitz to the stand. (Witness comes forward.)

Councilman Cohen

Miss Berkowitz, one major thread that's run throughout these hearings is the question as to the documentation by the City Administration of a certain statement made during labor negotiations, that the Administration had documentation to establish that consolidating all the health plans, the four union plans, together with those of the non-represented employees would produce more efficient and more economical returns. The committee has endeavored on a number of occasions to obtain that documentation. You've indicated that as a result of your study, you could only find one document that might relate to that, though you weren't certain that it did, but you 4 10/10/01 LAW & GOV'T RES. 00476 thought it might. We sought to obtain that, and we've thus far been told that either it's privileged or it's a work product and that if for some reason, it were to be found to establish that it's a confidential matter, which the Administration has the right to withhold from City Council. I'm asking you now, are you prepared today to furnish this committee with the documentation which you believe might deal with the situation to support the Administration's contention that I stated earlier? That is my question. Are you prepared to give this committee that document? (Witness comes forward.)

Councilman Ortiz

Have her identify herself for the record.

Councilman Cohen

Would you identify yourself for the record, Miss Berkowitz.

Ms. Berkowitz

Yes, I was planning to do that. I'm Linda Berkowitz, Deputy Secretary of Financial Oversight. I believe that you received correspondence from the City Solicitor addressing the question that you have just raised, and I cannot go beyond that.

Councilman Cohen

And could you give us 5 10/10/01 LAW & GOV'T RES. 00476 what decision you feel you have to make based upon whatever conclusions you are referring to. Are you in a position to give us --

Ms. Berkowitz

I am not in a position to give that document to the committee

Councilman Cohen

Based on what you stated before?

Ms. Berkowitz

That is correct.

Councilman Cohen

Okay, thank you.

Ms. Berkowitz

Thank you. We have no further questions of the witness. The committee stands in recess. I've got to call the president to bring two more members to have a quorum because the chairman intends to present to the committee for its consideration the adoption by the committee of a report, which has been circulated to the members of the committee and which has already been attested to by six of the eight members of the committee. The other two I've not yet been able to reach today, though I've been in telephone contact with their office So the committee will stand momentarily in recess while the chairman makes a call to the 6 10/10/01 LAW & GOV'T RES. 00476 president's office to get two members of the committee who are meeting with her at this point. Incidentally, I will note for the record that the President of City Council is one of the signatories that I referred to when I mentioned the six Councilmembers on the committee. The committee will stand in recess for three minutes, till I make the call. (Committee stands in recess.) - - - (Proceedings resume.) - - - 7 10/10/01 LAW & GOV'T PUBLIC MEETING

Councilman Cohen

The committee session is now resumed. The committee is joined by Councilman Frank Rizzo, City Council President Anna Verna, and Councilwoman Jannie Blackwell. This constitute six members of the committee and is far more than a quorum. I ask for a motion that the Committee on Law and Government adopt the interim report that has been distributed to committee members in connection with Resolution 000476 and that it recommend the report for approval by the Council at the next stated meeting, which is tomorrow. Is there such a motion?

Councilman Ortiz

I move that the report be adopted, Mr. Chairman.

Councilman Cohen

Is there a second? (Duly seconded.)

Councilman Cohen

Any discussion? (No response.)

Councilman Cohen

If not all, in favor, please say aye. Those opposed, say nay. There are no nays, there are six ayes. The report is adopted and will be reported to the 8 10/10/01 LAW & GOV'T PUBLIC MEETING Council for approval by the whole of the Council. the committee now stands in recess until Wednesday, November the 14th, at 2 p.m., when there may be a supplementary report covering other material made public. Thank you very much, everybody. For attending. Thank you especially to Council President and to Councilwoman Blackwell. I hated to interrupt the meeting that I know that was ongoing. Thank you very much. - - - (Hearing ends at 2:32 p.m.) - - - 9 CERTIFICATE I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia's meeting of the Council Committee on Law and Government held on Wednesday, October 10, 2001, at 2:00 p.m, 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: Resolution No.000476 _______________________________, 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.)