COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE OF THE WHOLE - - - Room 400, City Hall4 Philadelphia, Pennsylvania Monday, March 28, 2011, 10:27 p.m.5 - - - Bill 110135 - Adopt a Capital Program for the six Fiscal Years 2012-2017 inclusive.7 Bill 110136 - Adopt a FY '12 Capital Budget.8 Bill 110137 - Adopting the Operating Budget9 for Fiscal Year 2012. 10 Bill 110138 - Amending Chapter 19-1500 of The Philadelphia Code, entitled "Wage and Net11 Profits Tax," by revising certain tax rates and making technical changes, all under12 certain terms and conditions. 13 COMMITTEE MEMBERS PRESENT:14 Anna C. Verna, Chair Marian B. Tasco, Co-Chair15 Jannie C. Blackwell Darrell L. Clarke16 W. Wilson Goode, Jr. Bill Green17 William K. Greenlee Curtis Jones, Jr.18 James F. Kenney Frank Rizzo19 - - -20 21 22 23 24 25 2 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Good2 morning, everyone. This is a public3 hearing of the Committee of the Whole.4 I would ask Mr. McPherson to5 please read the title of the bills.6 MR. McPHERSON: Bill No.7 110135, a Capital Program, 2012 through8 2017.9 Bill No. 110136, the Capital10 Budget, 2012.11 Bill No. 110137, the Operating12 Budget for Fiscal Year 2012.13 Bill 110138, a wage-tax bill.14 And today, we will be taking15 testimony on Bill No. 110137, the16 Operating Budget.17 And the first department is the18 Mayor's Office.19 (Witness comes forward.)20
Good21 morning. Would you please identify22 yourself for the record and proceed with23 your testimony.24
Good morning,25 3 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Council President Verna and members of2 City Council. I am Clarence Armbrister,3 Chief of Staff in The Office of The4 Mayor. 20 Of the 35 people employed full-time by21 the Mayor's office 26 are women and 9 are22 men. 24 The requested FY '12 Budget25 4 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 also includes $650,336 in Class 200;2 $45,903 in Class 300/400, and $200,000 in3 Class 500 (scholarships), for a total4 General Fund Budget of $3,839,665. The5 Mayor's Office Scholarship Program, which6 is funded at $200,000, allows qualified7 Philadelphia students to attend classes8 at area colleges and universities, is9 being level-funded, and we are once again10 recommending that no reduction be made in11 this category. 15 The proposed budget also16 includes over $2 million in Grants17 Revenue funds to support the activities18 of the Mayor's Commission on Aging and19 the Office of Civic Engagement and20 Volunteer Service. This grant funding21 represents an increase of over $500,00022 when compared to the FY 2011 funding23 levels and comes principally from the24 federal government to enable the Mayor's25 5 3/28/11 COMM. 22 The Mayor's Office is committed23 to supporting the Administration's goal24 of 25 percent minority-, woman-, and25 6 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 disabled-owned business (M/W/DSBE)2 participation on City contracting. 6 You will be hearing testimony7 from additional departments in the8 Mayor's Office later today. The Mayor's9 Office of Community Services will give10 testimony as to how their agency helps to11 move vulnerable Philadelphians towards12 self-sufficiency. 21 The Mayor's Office has22 increased its focus on human capital23 development to ensure that low-income and24 poor Philadelphians are served to the25 7 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 best of our capabilities. 9 I want to thank you for your10 support, and I appreciate this11 opportunity to provide testimony12 regarding the Mayor's proposed Fiscal13 2012 Operating Budget. 16
Thank17 you very much.18 Mr. Armbrister, on of19 your budget detail, you reflect a20 transfer of $24,495 from the General Fund21 to the Grants Revenue Fund. Can you give22 us a breakdown of these dollars by23 position and to which grants?24
Council25 8 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 President, excuse me, I'm going to have2 to get back to you on that particular3 transfer, all right? I'll have to talk4 to the Budget Office about that.5
Thank6 you.7 On of your detail, it8 has $665,000 in Fiscal 2010 for9 indemnities. Can you tell us what10 settlements the Law Department made on11 behalf of the Mayor's Office?12
I'm going to13 have to get back to you on that as well,14 Council President.15
Page16 16, you're requesting $486,290 for17 consultant fees. Can you tell us the18 types of services you will be contracting19 for? What is the total amount the20 Administration is requesting in the21 proposed 2012 Operating Budget for22 lobbying services by department?23
Yes, let me24 answer the first question first, Council25 9 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 President.2 The lobbying services that the3 Mayor's Office typically directs are4 related to our agendas at both the State5 and the federal levels. These services6 typically involve monitoring legislation7 as well as advising the Administration on8 strategic objectives in terms of getting9 legislation adopted, maybe sometimes10 trying to get legislation not to be11 adopted in a defensive posture. So12 that's what those services are.13 From time to time -- this is14 what the Mayor's Office contributes to15 that effort. From time to time, we do16 get contributions from other departments.17 So for example, the Airport may18 contribute from time to time with respect19 to lobbying services as well because of20 the work that they need done specifically21 at the federal level in the Department of22 Transportation.23 But we can get you a breakdown24 of costs --25 10 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Can2 you give us a list of who the consultants3 are?4
And9 whether they're lobbying in Harrisburg or10 with the federal government?11
Thank14 you.15 On of your detail, you16 list under "Dues," the National League of17 Cities, but you do not request any18 funding for this organization. Can you19 tell us why?20
I suspect that25 11 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 the Administration is not looking to join2 the National League of Cities in this3 year, I guess, or hasn't for the last --4 I'm looking here, in the last three5 years.6 Unless it came out of the7 Miscellaneous. I'm not sure why it's8 listed there. I'd have to check.9
Let me find12 out if that 41,000 is paid... I think I13 may actually have backup on that.14 I'll have to check to see what15 the 41,000 is allocable to.16
Thank17 you.18 You mention on of your19 testimony that the Commission on Aging is20 anticipating funding to support expansion21 of Naturally Occurring Retirement22 Communities.23 Can you explain what this24 program is all about, please.25 12 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Yes. If I2 could have the Assistant Managing3 Director, Lydia Velez, come up and4 explain that to you.5
Good9 morning. Kindly identify yourself for10 the record.11 DEPT. MANAGING DIR. VELEZ:12 Good morning. My name is Lydia13 Hernandez-Velez, and I am the Deputy14 Managing Director for Aging.15 The future of the City is going16 to be greatly impacted by the expansion17 of the population age 55 and over in18 addition to a significant increase in19 those residents who are 75 years old and20 over.21 The need for the opportunity to22 keep people in their homes, in a safe23 environment, will be an important agenda24 for the City and an important and25 13 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 explored -- actually, we have several2 naturally-occurring retirement programs3 in the City to enable folks to get the4 services, the companionship, and the5 engagement that they need in order to6 keep them vital and active in their --7 where they live, in their residential8 community.9 So the effort is to look at how10 these trends are affecting different11 neighborhoods in the City and be able to12 make some agenda, incorporating all of13 the other City departments to support14 folks remaining in their homes.15
I16 still don't quite understand what the17 expansion will be.18 DEPT. MANAGING DIR. VELEZ:19 Well, supporting -- for example, seeking20 funding to support communities that come21 to our office and say, "We'd like to22 explore a possibility," so some23 demonstration projects, the ability to24 fund some programs directly in terms of25 14 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 having community organizations begin to2 focus and look at themselves and say,3 "Well, this is an area where we need4 additional support to enable folks to5 have the network of services."6 And that could be everything7 from services to clean their homes or8 maintain their homes, to services to9 engage people and connect people who are10 willing -- and a perfect example would be11 folks who would like to, for example,12 walk in their own neighborhood but don't13 feel comfortable because of their14 physical condition and would need to15 buddy up with somebody do make sure that16 they engage in that activity safely.17 There may be some needs to fund18 some activities in community19 organizations to promote that kind of a20 program.21
Do we22 have a dollar figure attached to the23 expansion of this program?24 DEPT. MANAGING DIR. VELEZ: Not25 15 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 specifically. We wanted to explore some2 of the funding. We've also been told3 from the Department of Aging that there4 may be the opportunity to expand some of5 that funding for health-related in6 conjunction with the Health Department or7 in conjunction with the Police Department8 to expand services to seniors.9 COUNCIL PRESIDENT VERNA:10 That's great. Thank you.11 DEPT. MANAGING DIR. VELEZ:12 Thank you.13
Thank you,17 Madam President.18 Good morning, Mr. Armbrister.19
Your Class21 200 request for Fiscal Year '12 is22 $650,000?23
Okay. The3 questions that I will ask are not4 necessarily related or targeted toward5 your office, because that's not a lot of6 money, but they're the same questions7 I'll be asking of every department.8 The first is: What is the9 largest contract you awarded in Fiscal10 Year '12?11
Well, based on12 prior history, and it's likely to be the13 same, it will probably be the lobbying14 contract.15
Well, again,18 if the past is any indication of the19 future, the last one we issued was20 $420,000 for Wojak & Associates, followed21 closely by $100,000 to Blank Rome.22
Okay. I'm23 just interested in actually the largest.24 Is that a renewable contract?25 17 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Typically not.5 But, in fact, we are in the process of6 preparing an RFP to rebid that contract7 as we speak.8
Well, this --11 the current formulation of that contract12 was based on a bid that we did --13 completed last year. So it was just14 awarded last February.15 But I understand that prior16 administrations had engaged that firm --17
How far back21 can you go in terms of how many years22 that firm has held --23
I can go24 back -- we can go back and check that.25 18 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Okay.2 Please submit that to the Chair.3 Can you briefly describe the4 contract requirements.5
The contract6 requirements are basically the same for7 all of our lobbyists in that they provide8 analysis, strategic recommendations9 regarding legislation.10 The Wojak contract relates to11 State lobbying, it's limited to State12 lobbying, so they do that in that regard.13
Okay. And14 that is not a certified disadvantaged15 business.16
Does the18 firm subcontract with any disadvantaged19 businesses?20
Not to my21 knowledge, but as part of our lobbying22 team, we do have a disadvantaged business23 that does get one of the several24 contracts.25 19 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 I know we've been only talking2 about the largest one, but there is a3 minority firm that does have one of our4 lobbying contracts.5
So when you6 issue RFPs, is the RFP broad, and does it7 have a goal for DBE participation in it?8
Well, based on9 our -- and we've had this discussion with10 OEO. Their recommendation, after we've11 gone back and forth, is to use the best12 efforts for -- that's been their13 recommendation to us in consultation with14 them.15 But we feel very confident that16 we're going to be in the position to meet17 our 25 percent goal, as we have, I think,18 each of the last couple years.19
I think the22 goal is imposed on us, as the23 Administration, to make sure that among24 the teams that we get as part of our25 20 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 lobbying contract, we meet the2 requirement, which we have been able to3 do the last several years.4
Okay. How5 that has the goal changed during your6 tenure?7
I think it's14 been based on -- the experience has been15 a best-efforts recommendation each of the16 years that I've been involved.17
Are there21 any subcontracting opportunities that22 exist within the contract?23
There may be.24 But as I said, on this particular25 21 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 contract, what we've been able to do,2 because we hire a stable of firms, we've3 been able to make sure that among the4 firms that we select, there is, you know,5 a minority firm, or firms, who6 participate. And we'll try to do the7 same when we go out with this RFP as8 well.9
Okay. Is10 the firm currently in compliance with the11 City's living-wage-and-benefits standard?12
Is the firm15 currently in compliance with the City's16 living-wage-and-benefits standards?17
Will the20 firm be required to be in compliance in21 Fiscal Year '12?22
We try to make23 sure that the firms are in compliance24 with all requirements that the City25 22 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 imposes.2
Okay. And3 who is directly responsible for4 monitoring wage-and-benefits standards5 for your department?6
Well, I guess,7 as the contract compliance -- ultimately,8 it would be my responsibility as the9 person who's monitoring that contract.10 But that broad authority is11 within the government. Probably Labor12 and Standards is my guess.13
Thank you,18 Madam President.19 COUNCIL PRESIDENT VERNA:20 You're welcome.21 The Chair recognizes Councilman22 Jones.23
Good24 morning, Madam President. Thank you.25 23 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Mr. Armbrister, how are you2 today?3
Resolution6 100848 requires -- you don't have to look7 it up. It requires an analysis or is8 looking into the analysis of whether or9 not a department should contract out a10 good or a service or attempt to do it11 in-house.12 So, for example, snow removal13 was cited as one of the things that14 should undergo those types of analysis,15 so that if in fact it is better to16 contract out, we do that, if it's more17 cost-effective and cheaper to do.18 But if the opposite is true, if19 it is indeed cheaper to do it in-house,20 that we would pursue those options in21 light of our budgets constraints and22 potential deficits at the State and23 federal level.24 And I just want you to be aware25 24 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 of that, that we are going to -- at least2 I am going to ask each and every3 department to start to look to that.4 My question to you is: The5 stimulus committee that was formulated as6 a result of the opportunities from the7 federal government, it was testified we8 had received somewhere in the9 neighborhood, as a city, $2 billion. It10 was a great format that was set up to11 look at opportunities coming from the12 federal government.13 I want to know post-stimulus,14 are we going to continue that format to15 ferret out opportunities? And will a16 broader committee, like we had with for17 the stimulus package, be employed to do18 that?19
I think, as we20 talked about this briefly at the21 Five-Year Plan testimony, that's22 certainly something that we can look at,23 Councilman.24
I just want25 25 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 to reiterate that --2
-- it's not4 going to go away, and I really want to5 talk about it.6 The second thing I have to talk7 about is the Aging -- the Philadelphia8 Corporation for the Aging; I'm excited9 about that.10 As a part of a joint committee,11 we will be doing a conference May 9th.12 It will be -- it's sponsored by WHYY. It13 will be all day, simulcast in three14 locations. Your new liaison for the15 retiring, soon-to-be-retiring, and has-16 retired community will be a part of that.17
But I want19 to also express that we need to -- one of20 the goals in outcomes that we hope to21 come from that conference is to have each22 department look at the fact that we are23 gray, to be a part of their planning24 process going forward.25 26 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Meaning that3 is it better -- if you're the Recreation4 Department, should we be building more5 swimming pools, or should we be building6 more passive walking tracks?7 But each department, whether8 you talk about the Police Department,9 Transportation, or even the Prisons, the10 average age of inmates is going up.11
But we want13 that to be a part of their strategic14 thinking going forward.15
So this is a17 good opportunity to incorporate that in18 our planning.19
And if I could20 just add, Councilman, on that, the21 Administration is -- it's no accident22 that Miss Lydia Velez was just with us.23 The Mayor commissioned a study that was24 done internally to our office by our25 27 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Director of Policy about this time last2 year, or maybe it was during the summer,3 and it was really an outgrowth of that4 research that was done where the Mayor5 said that he wanted to have more of a6 focus on aging issues.7 And so, we wanted to kind of8 ramp up. We reconstituted the Commission9 on Aging. So we're going to be very10 aggressive as an administration about11 trying to look at all of the things that12 you just suggested.13
I think14 those two things have a long-term impact15 on the City's budget and outlook.16
So I'm glad18 to see that we're doing that.19 Finally, speaking of budget,20 have you anticipated in your presentation21 the impact of the Governor's budget and22 how that's going to change our23 perspective that we had on the Mayor's24 budget address, and how is the impact --25 28 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
As we've said2 before, we continue to do that. That3 process is ongoing particularly as4 information becomes more available about5 the specifics of what the Governor has6 proposed.7 And I can, again, continue to8 report, as I did last week, that as far9 as the General Fund is concerned, the10 proposed budget that the Governor has put11 forth is not as drastically deleterious12 to the City as we would have thought, but13 we are concerned about the effects of14 that budget on the City and its15 institutions.16 So we continue to work with our17 stakeholders to look at some of the18 changes that were proposed by the19 Governor as it relates to, you know,20 social-service agencies, our hospitals --21
-- our higher-24 education institutions. So we are25 29 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 concerned.2
-- those16 things that are quiet threads of our17 communities. Are we anticipating any of18 those impacts to negatively affect our19 budget outlook?20
Yes. And you21 will hear more about some of those as we22 learn more.23 One of the things in working24 with the Council staff we've done is25 30 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 that -- we rearranged the schedule so2 that the DHS testimony can come as late3 in this process as possible. Hopefully4 by that time, we'll have a much better5 sense of the specifics of what the6 proposals are going forth.7 But just as we sit here in8 budget hearings, the State is also going9 through their appropriations hearings as10 well, and we'll get a much better sense11 during the course of those hearings as to12 what some of the effects of the proposals13 are, and we'll be in a much better14 position as we come to the conclusion of15 our hearings to give you a better idea as16 to what those effects are.17
In the18 notorious and memorialized Freshmen 15,19 one of the things that we recommended was20 recovery and saving as it relates to21 electronic transfer of checks and22 receivables coming from the State and23 federal government.24 Can you report on any progress25 31 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 made on that?2
If I could3 maybe defer to the Finance Director --4 former Treasurer and now Finance5 Director; she may have some update on6 that.7 (Witness comes forward.)8
Good morning.9 Rebecca Rhynhart, Budget Director.10 Good morning, Councilman.11
The Treasurer's14 Office, together with other departments15 in Finance, is working with departments16 across the City to improve direct deposit17 so that we get more and more of the18 revenues from the State and the feds19 through direct deposit.20 When I last looked at it, we21 were up to, I believe, close to 9022 percent, so it's a big portion of what23 we're getting.24 What we're down to is the25 32 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 smaller payments, which are harder to2 capture on direct deposit, just because3 it's much easier to -- when you sort them4 to say, Okay, all of the payments over a5 million dollars, we're going to go after6 those and convert those to direct7 deposit.8 Now we're into the smaller9 numbers, but we're working very hard to10 get there.11
So have you12 chronicled how much that has meant by way13 of savings and/or interest payments that14 we've been able to get based on that15 90 percent increase?16
Mm-hmm. It17 would be hard to do a hard and fast18 calculation, but if you think about19 getting the money going right into our20 without a delay compared to, you know,21 one, two weeks through the mail, and then22 waiting for someone to actually open it23 and deposit it, it's significant.24 I mean, interest rates are so25 33 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 low right now that it's perhaps not as2 much as it would have been in the3 high-interest rate environment, but every4 dollar counts so it's adding money.5
We had6 estimated that it would be about a7 million-dollar saving a year.8
And I would10 be interested if you could provide this11 committee and the Chair that kind of12 documentation. I know we will never get13 to a hundred percent.14
And some16 small checks just don't warrant the17 paperwork, but I am pleased that at least18 that recommendation was followed.19
You're21 right. Efficiencies and effectiveness in22 making sure that checks go cashed and23 some not go uncashed. We had chronicled24 that a check had sat on someone's desk25 34 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 for approximately a year, and I'm glad to2 hear that we're not doing that now.3
Thank you,5 Madam Chair.6 COUNCIL PRESIDENT VERNA:7 You're welcome.8 The Chair recognizes Councilman9 Green.10
Thank you,11 Madam Chair.12 Last week, during the Five-Year13 Plan testimony, we discussed the 1.5 to14 3 percent budget reduction scenarios,15 which I believe I'm supposed to get16 today?17
Just one18 second.19 I know you had made that20 request, and I think the answer was that21 they were going to try to get 'em to you22 in some format that made some sense. I23 don't --24
Right. We had25 35 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 expected to get them to you early this2 week. You had -- I mean, we can get them3 to you, I would think, by -- in the next4 few days. I wasn't aware that you wanted5 them by today.6
Okay, thank18 you.19 Did the Mayor's Office prepare20 its own reduction scenarios?21
Probably, yes.22 I don't -- I can't remember specifically23 what they were, but we probably did, yes.24
Okay, great.25 36 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 So I'll just wait for the list.2 In the budget detail, I guess3 this would be in the division summary and4 then in the Chief of Staff's testimony,5 you indicated the budget proposes a6 decrease of four positions, from 39 to7 35.8 Is anybody losing their job, or9 is this just --10
There was a --14 there was some people who left who we15 didn't replace, and there were a couple16 of positions that were in the budget last17 year that we took out.18 So there were a couple of what19 were, in effect, unfilled positions that20 we got rid of, and then there were a21 couple of people who left whom we didn't22 replace, so people are, you know, picking23 up and doing more.24
Okay. So if25 37 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 you could just -- how many people left2 and how many of the positions were3 unfilled? is my question, I guess.4
Well, there5 are only two positions that were unfilled6 that are --7
And then there10 was a net change. There were -- in11 effect what happened was, there were12 seven positions that we cut and three13 that we filled, for a net four.14 So that's effectively how we15 got to the net four reduction.16
Not unfilled.19 There were seven positions that were20 eliminated from the budget, and not all21 of them were unfilled. They might have22 become vacant during the course of the23 year.24 So, for example, we lost Doug25 38 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Oliver during the course of the year, as2 our press secretary, right? We filled3 that position with Mark McDonald. So we4 didn't add anybody new, and that position5 just went away.6
So when you8 look at the net -- when you look at the9 net effect of those changes, the net10 effect is that we're down four positions11 that we were last year.12
So you had13 35 filled in June, 35 filled in December,14 and it looks like you're going to have 3515 filled next year.16
No, those19 were actual filled positions as of June20 last year, December of last year, and it21 looks like it will be 35 this year.22
So24 basically, it's -- four positions you25 39 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 didn't fill last year is what you're2 cutting.3
No, that's4 really not correct. I can give you the5 detail on that.6
I'm just7 looking at of the Operating8 Budget, and if you look at the --9
Right, but10 those are points in time. And what I'm11 saying is, there were things that12 happened during the course of the year13 that -- just bear with me here. Let me14 get my notes here.15 This is what happened during16 the course of the year: We lost the17 senior advisor of economic development.18 We lost a philanthropic --19
And that20 person was moved to another position in21 the Mayor's Office budget --22
That's right,25 40 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 it did. So I'm going to give you all the2 ones that we lost.3 We lost a communications4 specialist, we lost a deputy press5 secretary. And then there were two6 positions that were not filled: a7 director and a project manager. And then8 we moved a receptionist over from9 part-time to full-time and added an10 external affairs coordinator.11 So the net effect of all of12 those changes was that we're down four.13
No, no, we did16 not. Doug was the press secretary. We17 didn't have a communications director.18 And Doug was the press secretary, and we19 moved Mark over to Doug's position.20
Okay. I21 don't want to beat a dead horse. It just22 looks to me like the testimony is23 basically saying we reduced four24 positions when there were only 3525 41 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 positions budgeted and filled last year.2
Yeah. We don't19 have -- the filled positions as of June20 30, 2010, was 38. The Adopted Budget was21 39.22
And now we're24 down to 35.25 42 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Hmm. Well,3 it's not what the budget detail shows on4 , so I don't know how they're5 inconsistent. At any rate, I will move6 on.7 Okay. Following up on some of8 the questions relating to contracts, for9 each lobbying contract, when you provide10 the information, could you please note11 how long the City has used the lobbying12 firm and how the City monitors the firm's13 performance?14
The firm and17 how you monitor their performance. In18 other words, how do you judge success or19 failure in terms of outcomes; why are we20 deciding to renew the contract versus,21 you know, open it up to somebody else.22
Well, at least23 in the current formulation of contract,24 we are going back out probably, in the25 43 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 next week or so, with an RFP for our2 lobbying contracts.3 But typically, we judge and4 evaluate the performance of our lobbyists5 based on a number of factors, which would6 include: their responsiveness to our7 requests; their ability to provide8 strategic advice which results in9 positive outcomes for the City, be it in10 the adoption of legislation or the11 failure to adopt legislation that we12 don't.13 So those are all kind of some14 of factors that we use in determining15 whether or not to evaluate or renew a16 contract.17 As I mentioned, we are in the18 process now of going through a new RFP19 process, and that will probably be out in20 the next week or so.21
What effect22 will the appointment of Ms. Gillen as the23 Mayor's Director of Legislative Affairs24 have on the need for, you know, federal25 44 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 lobbyists as compared to last year since2 we know that they --3
As opposed7 to -- I'm sorry, I missed the end of your8 question.9
Since we now10 have a fairly high-paid full-time11 position in that job, how will that12 affect lobbying efforts in terms of13 contracts?14
Well, one of15 the -- and it's interesting, Ms. Gillen16 wrote me a note not too long ago,17 wondering whether or not, you know, we18 could maybe cut back, and that's19 something that we're going to look at in20 terms of this next formulation of21 lobbying evidence.22 She is providing great23 coordination services to the24 Administration on the federal side,25 45 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 something that I must say that was2 probably lacking prior to her taking up3 the rein. So we are evaluating that, and4 that's one of the reasons why we're going5 back out on the street for lobbying.6
Okay.7 That's all I have Madam President. Thank8 you.9 COUNCIL PRESIDENT VERNA:10 You're welcome.11 The Chair recognizes Councilman12 Jones.13
Thank you,14 Madam President.15 I'd be interested in trying to16 take a look at some of the impacts on the17 stimulus money drying up by way of --18 it's my understanding that we spent maybe19 50 percent of that.20 Have you kind of looked at how21 we phase out -- and I have you on the22 record saying that we didn't, like other23 entities, have a drunken free-for-all24 with the federal money.25 46 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Well, I'll5 give you a kind of broad overview, and I6 would ask you to maybe ask specific7 departments about stimulus money about8 how they're doing it.9 But overall, as I mentioned10 before, we were fairly conservative in11 our use of stimulus funds in that we did12 not try to incorporate them into our13 Operating Budget.14 The one exception that I noted15 in my testimony last week was for16 probation officers, and we are going to17 basically cover those costs and bring18 those into the General Fund. So that's19 one area that committed to. We know that20 we need those officers so those will be21 (indiscernible).22 As for other projects -- and I23 think of one in particular -- is in terms24 of the obesity area, in which we are25 47 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 making some commitment of additional2 funds beyond ARA. We think that that's a3 very important initiative to continue,4 and Dr. Schwarz will be in a position5 when he comes up to give you testimony6 about the Health Department.7
I'm8 surprised you committed and kept with9 that after the sugar tax failed, that10 this is still a priority for this11 administration. I don't --12
Because the13 health of our citizens is very, very,14 very important to us and for all of us15 because it costs in the long run;16 everybody recognizes that. And we all17 know that particularly some of the more18 insidious diseases that are a result of19 obesity, you know, be it diabetes, high20 blood pressure, those things.21 So those are the things that,22 if we can make some inroads early on and23 not have the long-term effects of those24 diseases is very important. And25 48 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Dr. Schwarz has been not only an advocate2 here but a national advocate and is3 recognized for his ability to do that.4 So those are the kinds of5 things -- and I would ask you to maybe6 ask maybe each of those departments.7 But, you know, we've made some very8 strategic and targeted investments with9 those monies and --10
Well, an11 example was PHDC, the Philadelphia12 Housing Development Corporation, received13 considerable resources --14
And I just19 wanted to know, you know, now post the20 stimulus, whether or not we had some way21 of continuing --22
Well, I don't23 know. You know, in the absence of those24 funds, it may be somewhat difficult, but25 49 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 certainly are appreciative of the fact2 that we were able to increase our3 minority participation, per a lot of4 small businesses, to work.5 And hopefully, oftentimes6 government can be kind of like the7 starter of the engine, that, hopefully,8 some of these businesses who have been9 able to use those funds to start work10 will be able to, with their own11 reputations, go out and get additional12 money.13 But we're not in a position14 probably to be able to sustain them with15 government dollars, and that's what we16 always talk about, is trying to make sure17 that we are the engine of starting, but18 we can't be the final provider of those19 dollars.20 So hopefully, if it's suppose21 to stimulate activity, we hope it did,22 and we think that it has, in fact. But23 we are not going to be able to, on a24 long-term basis, continue to make those25 50 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 funds available.2
I just -- I3 keep thinking of the School Board and the4 drastic halt that those dollars mean, and5 I'm just cautiously -- I'm actually6 pleasantly surprised that we didn't get7 on a diet of that and then it come to a8 screeching halt, where we couldn't manage9 without it.10
Right, right.11 I mean, I think it's a testament to, you12 know, to give -- sing some small praises13 of the Administration's ability to try to14 kind of manage through these tough times.15 It is very easy, you know, to16 try to manage with one-timers, but we've17 had some very good discipline enforced by18 the folks over in Finance, much to the19 regret of some of the operating20 departments who think that sometimes21 finances are -- overrule things that they22 would like to do.23 But, you know, it's very24 important that the City's fiscal health25 51 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 be maintained as a very top priority.2 And I really want to take my hats off to3 the Finance officials who have done just4 a great job, and I think you'll be5 hearing more about them and the6 recognition that they're going to be7 getting for the City in their ability to8 maintain the fiscal integrity of the9 City.10 And I'll just leave it at that.11
And I agree.12 The proof is in the pudding. We received13 close to $2 billion worth of stimulus14 money. As a city, we put together a good15 committee to bring that down. And with16 the help of the IG, the Inspector17 General, we didn't have, to my knowledge,18 any financial defalcations. We argued a19 lot, but we did not run afoul of any of20 that, which is a good thing.21 But I want that model the22 continue because even though there are no23 stimulus packages, there is stimulus24 within the departments, they're still25 52 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 going to do contracting out for services,2 we still will be eligible for certain3 grants, but we can't if we don't look for4 them and don't apply to them.5 And I think in these tough6 budget times, we need to continue that7 model. Maybe we won't get 2 billion, but8 if we got a quarter of a billion, that's9 better than nothing, and I'd like us to10 do that.11 And so, I'm going to continue12 on that until we kind of formulate a13 committee.14
Thank you,16 Madam Chair.17 COUNCIL PRESIDENT VERNA:18 You're welcome.19 The Chair recognizes20 Councilwoman Tasco.21
Yeah,22 Madam President, I think, asked a23 question about the National League of24 Cities.25 53 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
You have7 to be a member of the State in order to8 be a member of the national.9
Thank you.13 COUNCIL PRESIDENT VERNA:14 You're welcome.15 I think I may have asked this16 question during the Five-Year Plan, and17 I'm going to ask it again because I don't18 know that we got an answer that was quite19 satisfactory.20 Philadelphia County alone is21 slated to receive $2.3 billion in22 Recovery Act funds, which will spur23 advances in science, health, and energy24 efficiency, and create thousands of jobs.25 54 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 I think I did ask how --2
Can8 you tell us how much of the $2.1 billion9 has been spent?10
Council11 President, we can get you -- you know, we12 on a, I guess, quarterly basis, put out a13 report, and we can get that report to14 you. I can't give you the number off the15 top of my head.16
All17 right. And while you're doing that, can18 you give us the breakdown of who received19 the funds, what were the projects, and20 how much money -- or how many jobs have21 been created, permanent jobs?22
Right. And23 we'll get you a copy of our report.24 I just want to underscore that25 55 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 our report deals with those monies for2 which the City -- that the City proper is3 responsible as a recipient.4 The $2 billion, if I'm not5 mistaken, that you're quoting reflects6 the receipt of funds throughout the7 region. So it would include, for8 example, SEPTA and other recipients for9 whom we are not the reporting authority.10 So I just want to caution you.11 So we'll get you our report and to the12 best --13
And20 how many permanent jobs have been21 created.22
Thank25 56 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 you.2
Are4 there any other questions from members of5 the committee?6 (No further questions.)7 Seeing none, thank you.8
And11 when can we expect to receive the12 responses to questions that you were13 going to get back to us on?14
We're getting15 them as soon as we can, Councilwoman. We16 have someone who is taking notes, and17 we'll try to get those to you within 7218 hours.19 COUNCIL PRESIDENT VERNA:20 Within 72 hours?21
Thank24 you.25 57 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Okay.3 MR. McPHERSON: The next4 department is Inspector General.5 (Witnesses come forward.)6
Good7 morning, welcome. 10 INSP. GEN. KURLAND: Good11 morning, President Verna. 21 Over the past three years, the22 Office of the Inspector General has23 evolved. It has become a more skillful,24 more efficient, more successful agency,25 58 3/28/11 COMM. 3 million6 budget. 10 Thank you for the opportunity11 to present the Operating Budget. 25 59 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 We also manage for the City of2 Philadelphia a contract for surveillance3 services, which will expire in June of4 2011. For reissue of that contract,5 we're working with OEO to develop a6 strategy to maximize the participation in7 the bid process of businesses owned by8 minority, women, and disabled persons9 residing in Philadelphia. 22 Additionally, we'll be increasing the23 surveillance contracts from one company24 to five to increase minority25 60 3/28/11 COMM. 2 We're strongly committed to3 maintaining a diverse workforce. The4 current makeup of the OIG staff is5 75 percent women and minorities. 8 I'd like to start by saying9 that in my experience, most City10 employees are honest and hard-working and11 resent being stigmatized by the small12 number who are engaged in dishonest13 activities. 16 This year, the OIG has achieved17 an unprecedented level of success in18 criminal and administrative19 investigations. For example, in the last20 three years, we helped to get rid of21 nearly 100 City employees who engaged in22 misconduct, and no employee has23 successfully appealed our recommended24 termination and one reinstatement with25 61 3/28/11 COMM. 9 This means that we make decisions about10 what to investigate or what not to11 investigate based on what we think is the12 right thing to do. 16 Second, we've begun to work17 with departments to make institutional18 change and to prevent corruption and19 fraud in the future. 24 Third, we have initiated25 62 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 several proactive projects. 17 Fourth, we've streamlined our18 procedures for savings and recovery. 23 We also have a new procedure to24 recover money from employees who have25 63 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 stolen from the City, and that money is2 subtracted from their separation3 payments. 19 Even though we are an investigative body20 that conducts confidential21 investigations, we have engaged taxpayers22 through providing more information on our23 website and, again, providing an annual24 report that shows our statistics and25 64 3/28/11 COMM. 2 I'd like to briefly describe3 our performance this year, and the4 results have been strong. 10 All of our criminal cases were11 felony cases. In one situation, we12 discovered a scheme that defrauded the13 City of approximately $600,000. A clerk14 in the Records Department had been15 copying accident reports, selling them,16 and pocketing the cash. 20 In another joint investigation21 with the FBI, a former title registration22 aid for the Records Department was23 sentenced to prison for accepting over24 $46,000 to prepare and record fraudulent25 65 3/28/11 COMM. 13 We worked again with the14 Philadelphia Police Department to arrest15 a City health inspector on 85 counts of16 prescription fraud-related charges. 24 I'd like to briefly describe25 66 3/28/11 COMM. 3 We track all of our sustained4 cases. 8 When there were appeals, the9 Civil Service Commission upheld the10 imposition of discipline, and not one11 individual has appealed the imposition of12 discipline and received his or her job13 back. 25 67 3/28/11 COMM. 7 In calendar year 2010, we8 recommended disciplinary action against9 44 City employees. Of these, 3710 employees were terminated and seven were11 suspended or demoted. 21 Several of those are as follows:22 We discovered uncashed wage23 checks from a federal agency, and we had24 the federal agency reissue those checks,25 68 3/28/11 COMM.
3 We also, at the request of the4 Delaware River Waterfront Corporation,5 oversaw an audit and investigation of6 grants that were awarded to two nonprofit7 organizations. 24 Thank you for the opportunity25 69 3/28/11 COMM. 3
Thank4 you.5 The Chair recognizes Councilman6 Goode.7
Thank you,8 Madam President.9 Good morning, Miss Kulrand.10 How are you?11 INSP. GEN. KURLAND: Good12 morning.13
The14 questions are the same as I asked15 Mr. Armbrister and they're the questions16 that I'll be asking of every department.17 Your Class 200 request is18 roughly $120,000?19 INSP. GEN. KURLAND: That's20 correct.21
And almost22 all of that is going toward one contract?23 24 INSP. GEN. KURLAND: Two25 70 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 contracts.2
Okay. Well,3 what is the largest contract?4 INSP. GEN. KURLAND: They are5 both -- it's equally split between the6 two contracts.7
So what size8 are the contracts?9 INSP. GEN. KURLAND: They're10 65,000 apiece.11
Okay. And12 who currently holds the contracts?13 INSP. GEN. KURLAND: One14 contract is held by a retired FBI agent,15 and one contract is held by a retired IRS16 investigator.17 And let me correct what I said18 a few minutes ago. It's 60,000 a apiece,19 not 65.20
Okay. And21 are they renewable contracts?22 INSP. GEN. KURLAND: They are23 renewable. They have not been rolled24 over yet; this is the first year.25 71 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
So when was2 the last time they were bid?3 INSP. GEN. KURLAND: If I can4 just have one moment.5 (Ms. Kurland confers off the6 record with staff.)7 The contract period was July8 1st of 2010 through July 30th of 2011.9
So how many10 years has either of these two firms held11 the contract?12 INSP. GEN. KURLAND: One of the13 parties held the contract before I became14 the Inspector General, and that contract15 has been continued. The other party has16 held the contract just for one year.17
So one has18 held it for about three or four years?19 INSP. GEN. KURLAND: That's20 correct.21
Okay. I22 think you've described the contract23 requirements somewhat. Are either one of24 the firms a disadvantaged business?25 72 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 INSP. GEN. KURLAND: Neither of2 them are.3
Okay. Does4 either of the firms subcontract with a5 disadvantaged business?6 INSP. GEN. KURLAND: No.7 They're all just individual.8
Was there a9 goal for disadvantaged business10 participation in the RFP?11 INSP. GEN. KURLAND: Yes. Our12 goal, as the Inspector General's Office,13 I believe, was 17 percent. And14 unfortunately, we did not meet that goal.15
I'm actually16 speaking specifically about the RFPs for17 two contracts. Was a goal set within18 those contracts?19 INSP. GEN. KURLAND: Within20 those contracts?21
Within those22 RFPs, first.23 INSP. GEN. KURLAND: May I just24 have a moment?25 73 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 (Ms. Kurland confers off the2 record with staff.)3 It was set for 55 percent.4
And what7 about the contract itself?8 INSP. GEN. KURLAND: We9 received a waiver from OEO when we10 established the steps that we had taken11 to try to find minority businesses.12
So there was13 a goal but not a goal in the RFP.14 INSP. GEN. KURLAND: Excuse me?15
There was a16 goal and not a goal in the RFP?17 INSP. GEN. KURLAND: Yes.18
There was a19 goal?20 INSP. GEN. KURLAND: There was21 a goal, yes.22
And then23 because the responses did not contain24 meaningful participation, there was not a25 74 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 goal in the contract.2 INSP. GEN. KURLAND: That's3 right.4
Okay. How5 has the participation goal changed during6 your tenure?7 INSP. GEN. KURLAND: The8 participation goal is the same.9
Okay.10 INSP. GEN. KURLAND: We11 continue to take steps to try to locate12 and find minority businesses to respond13 to the contract.14
But there15 are no subcontracting opportunities.16 INSP. GEN. KURLAND: There are17 no contracting opportunities.18
Okay. So19 what have you done differently during20 this fiscal year to change or increase21 DBE participation?22 INSP. GEN. KURLAND: We have23 contacted the organization known as24 "FLEOA," which is the federal law25 75 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 enforcement organization. We have2 contacted the Association of Government3 Accountants, we have posted our job on4 the Certified Fraud Examiner website, and5 we've worked very closely with OEO to try6 to identify people that they may know who7 could respond to our contracts.8 Additionally, before the RFPs9 were posted, we searched the current10 registered vendors and found none. We11 searched the African-American Chamber of12 Commerce database and found none. And we13 additionally reached out to qualified14 individuals who we knew, but none of them15 responded to the RFP.16
Okay. Thank17 you for your testimony.18 Thank you, Madam President.19 MR. McPHERSON: Councilman20 Jones.21
Thank you,22 "Madam President."23 I have a real quick question.24 Is it the purview of the Inspector25 76 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 General's to investigate political2 activities in general of Civil Service3 employees?4 INSP. GEN. KURLAND: We have5 jurisdiction over all citizens -- of all6 City employees in the executive branch.7 There may be misconduct8 regarding political activity. In those9 cases, we would either refer the case to10 the Ethics Board or work very closely11 with them to do the investigation.12
So I guess13 the bookkeeping organizational chart14 piece that I'm trying to find out, is it15 you who investigates and they then follow16 up after your investigation? So it's the17 chicken or the egg?18 INSP. GEN. KURLAND: Well, the19 Ethics Board also has juris -- we have20 concurrent jurisdiction in those matters.21 But because the Ethics Board has more22 expertise regarding political activity,23 we would work with them.24 We're in the process of25 77 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 developing a memorandum of understanding2 with the Ethics Board to make sure that3 we don't do the same thing twice or4 overlap and that we're consistent in5 investigations.6
'Cause I got7 a little bit confused about who actually8 does what. That would be, I mean,9 helpful to at least to understand who's10 on first and what's on second.11 Thank you, "Absent Chair."12 MR. McPHERSON: Councilman13 Greenlee.14
Thank15 you.16 Good morning, Miss Kurland.17 INSP. GEN. KURLAND: Good18 morning.19
I just20 had a question on the criminal cases you21 talk about. Does your office also make22 recommendations to the departments about23 changes they could make to maybe not have24 these problems occur in the future?25 78 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 INSP. GEN. KURLAND:2 Absolutely. That's one of the new3 initiatives that we have this year.4
Okay.5 INSP. GEN. KURLAND: For6 example, in the Records Department case7 --8
I was9 going to ask that, yes.10 INSP. GEN. KURLAND: Yes. Once11 that woman was indicted and convicted, we12 worked very closely with Commissioner13 Decker to basically rearrange the entire14 office.15 Cameras are installed, walls16 were moved, and she has much closer17 supervision over the employees who work18 there now.19
Okay.20 Those recommendations particularly to the21 Records Department -- 'cause, as you22 might know, I've had some history23 there -- are they public? I mean, I'd24 like to know what those recommendations25 79 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 were, is what I'm getting at.2 INSP. GEN. KURLAND: Okay.3
If you4 could submit those or --5 INSP. GEN. KURLAND: In three6 cases, we wrote policy reports and7 recommendations, and those are posted on8 our website.9
Okay.10 INSP. GEN. KURLAND: Two of11 them were with regard to the Revenue12 Department after the $600,000 was13 discovered. And another one was14 regarding the Delaware River Waterfront15 Corporation audit and investigation that16 we did.17
Okay.18 INSP. GEN. KURLAND: With19 regard to the Records Department, we20 didn't write anything up. We just worked21 closely with Commissioner Decker.22
So I23 guess it would be more appropriate maybe24 to ask her, when she comes in, about.25 80 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 INSP. GEN. KURLAND: Yes.2
All3 right. Thank you.4 MR. McPHERSON: Councilman5 Green.6
Thank you.7 Good morning.8 INSP. GEN. KURLAND: Good9 morning.10
During your11 testimony at last year's budget hearing,12 there was discussion about interaction13 between the Office of the Inspector14 General and the Controller's Office. I15 think the exchange ended with your16 testifying that you were trying to work17 things out with the Controller in terms18 of being able to work together on19 matters.20 Could you please provide an21 update on how that effort is proceeding?22 INSP. GEN. KURLAND: We are23 basically in the same situation we were24 in last year. My door is open, I welcome25 81 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 any cooperation with the Controller's2 Office, but it has not happened.3
So there's4 still cooperation with the Controller's5 Office or ability to work together?6 INSP. GEN. KURLAND: Nothing7 more than we had in the last year.8
Okay. Do9 you know if the Controller is using the10 OIG's investigations to help aid its11 broader, Charter-mandated annual audits?12 INSP. GEN. KURLAND: I'm sorry.13 Could you repeat that?14
Do you know15 if they're using your investigations and16 reports to help them perform their annual17 mandated Charter audits?18 INSP. GEN. KURLAND: I don't19 know, I don't know.20
Okay. So21 they have never -- when they're22 investigating a department, they've never23 reached out and asked about specific24 things that are in any report that you've25 82 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 ever prepared?2 INSP. GEN. KURLAND: No, they3 haven't.4
Okay. That5 doesn't seem to make a lot of sense,6 considering the work that you guys are7 doing.8 Your 2010 annual report9 indicates that your financial10 accomplishments -- and we went through11 this last year. Your financial12 accomplishments include $3.1 million in13 salary savings from terminations which14 are based on two years of salary15 projections.16 And what I suggested last year17 was that the only fair way to look at18 this is whether or not positions were19 permanently eliminated or whether or not20 they were filled; or, you know, they21 hired a different person to perform the22 work, say, at a lower level so the23 savings would only be the difference24 between the higher salary and the lower25 83 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 salary; you know, the supervisor's gone2 but there's now, you know, another person3 performing that function, et cetera.4 Can you explain why you5 continue to count this as -- and tout6 this as what you've saved the City as7 opposed to, you know, what I and many8 others think would be a much more actual9 accurate measure?10 INSP. GEN. KURLAND: Okay. In11 my testimony, I believe that I said that12 our savings was over $6 million. I13 didn't include that $3 million because14 there really is no way for us to15 determine exactly whether a position has16 been eliminated; whether somebody moved17 into that position, thus eliminating a18 different position.19 The savings that would have20 occurred in pension because of a newer21 employee, whether DROP was involved,22 there were too many variables. And so,23 we really need to just stick with that24 estimate.25 84 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 But I did not include it in my2 testimony when I said that the savings3 were over 6 million.4
So, for5 example, in -- I understand what you said6 in your testimony, but what you're7 sending around and is available in your8 office as people walk in and what the9 Administration gives to people who are10 asking what's happening in the Office of11 the Inspector General is your annual12 report.13 INSP. GEN. KURLAND: Right.14
And your15 annual report has terminations,16 $3,113,480.17 INSP. GEN. KURLAND: That's18 right. And I dropped a footnote to19 explain that this is a very conservative20 approach to documenting the savings.21
It's a22 very -- it's not conservative; it's a23 very aggressive approach to documenting24 savings, right? 'Cause you're assuming25 85 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 positions remain unfilled for two years2 as a consequence of a termination.3 INSP. GEN. KURLAND: That's4 correct. But compared to the way these5 estimates are done in federal government6 and in other government entities, it is7 conservative.8
Well, I'm --9 I'm only interested in accurate10 information and not how other agencies11 measure what they do.12 And so, I'd ask that in the13 future, since this is the second year14 we've had to discuss this, you simply15 either don't include it, or you provide16 actual data. Now that, you know, you've17 been there several years, it should be18 available at least for 2009.19 INSP. GEN. KURLAND: Okay.20 Thank you. I'll take that into account21 for next year's annual report.22
Thank you.23 Miss Rhynhart, did you have24 anything to add?25 86 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Okay. Your3 testimony noted the proactive efforts of4 the Office to make institutional change5 and prevent corruption and fraud in the6 future. It references policy reports7 recommending changes the OIG has issued8 to departments where you uncovered fraud9 and corruption, and says the departments10 have enthusiastically adopted these11 changes.12 How many and which departments13 have you issued policy reports to?14 INSP. GEN. KURLAND: We issued15 two policy reports to the Revenue16 Department. One involved the case where17 federal wage tax -- I'm sorry. One of18 them involved the case where a Revenue19 examiner or a Revenue employee was able20 to steal money. And as a result of that,21 we discovered the uncashed federal wage22 tax.23 I don't have the exact24 recommendations off the top of my head;25 87 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 they're on our website. But, for2 example, we recommended that the City3 pursue using direct deposit with regard4 to money coming in from other agencies,5 and I believe that that has -- I think6 the testimony was that's the case in7 approximately 90 percent now.8 We also made recommendations to9 the Revenue Department regarding10 overtime. Supervisors had been giving11 overtime to people before the overtime12 actually happened, had been signing off13 on the paperwork.14 And we made recommendations15 about how they should approve overtime16 beforehand, make sure the person actually17 did the overtime, and then document that.18 And those changes were made in the19 Revenue Department.20
So for the21 record, it wasn't departments; it was a22 department.23 INSP. GEN. KURLAND: No. That24 was the Revenue Department.25 88 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 We also made recommendations to2 the Records Department, after the3 $600,000 was stolen, about how to more4 closely supervise the employees, install5 cameras, move walls so that employees6 were not alone with somebody coming in7 with cash, and to take greater control8 measures over the cash coming in. And9 those recommendations were adopted.10
So why not,11 as many organizations do, not accept12 cash?13 INSP. GEN. KURLAND: That's14 something you would have to ask the15 Records Department.16
But that17 wasn't one of your recommendations?18 INSP. GEN. KURLAND: No, it19 wasn't.20
Okay. With21 respect to the computer systems and the22 way things get recorded in the City, with23 respect to those, did your24 recommendations include any changes in25 89 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 workflow processes involving computers2 that would prevent people from being able3 to see somebody until what they were4 there for was in the system?5 INSP. GEN. KURLAND: I'm not6 sure I understand.7
Well, for8 example, if people are required to9 register on a computer to go see somebody10 as to what the reason they are there11 for -- to pay cash for whatever -- or12 there's somebody in line with an iPad or13 an iPod or some other electronic device14 that can communicate with our servers,15 and they basically find out why people16 are there, then someone giving cash to17 another person, it will be recorded as to18 why somebody was there, and it will be19 much harder for people to take cash.20 Our computer systems themselves21 and the way our workflow processes work22 in the City, all being paper-based, make23 it harder to hold people accountable who24 deal with or accept cash.25 90 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Would you agree that that is a2 true statement?3 INSP. GEN. KURLAND: That is4 true.5
And did your6 recommendations involve updating the7 systems so that it is harder to do that8 and easier to hold people accountable and9 have an actual record of everything that10 comes into the City?11 INSP. GEN. KURLAND: We've12 spoken with all of the departments about13 the need to upgrade the computer systems.14 For example, the computer15 system in the Water Revenue Department16 doesn't really speak to the computer17 system in L&I, and that can cause a18 number of problems, and it has caused a19 number of problems in the past.20
That's21 right. And so, when you're looking at --22 for example, have you looked at the23 computer systems to determine whether or24 not changes can be made to people's25 91 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 records without leaving an audit trail of2 who made that change?3 INSP. GEN. KURLAND: We've4 found situations where you can go back on5 the computer and determine what computer6 was used to do something, but we can't7 determine what individual used it.8 Somebody could have been sitting at9 another person's desk.10
Somebody11 left computer on --12 INSP. GEN. KURLAND: Exactly.13
Like, for14 example, if somebody was at the basement15 in MSB, at a main terminal, they could16 have -- and a lot of people go to the17 computers at the desk. Any person could18 have changed that; there'd be no way of19 determining because there's not specific20 log-in information, say, as there is, for21 example, even in restaurants, where each22 server has to swipe a card before they23 can make any kind of change to the menu24 or a bill or something like that.25 92 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 INSP. GEN. KURLAND: This is2 one of the changes we'd like to see.3
Has it been4 a part of your recommendations to any5 department?6 INSP. GEN. KURLAND:7 Specifically, as it relates to individual8 cases, we have not made broad9 recommendations to the Department of10 Technology in that sense. Really, all of11 our recommendations are case-specific.12
Doesn't13 that -- I mean, for three years, I've14 been asking the question, you know, is it15 possible to do what we just described,16 change people's accounts. There are many17 stories that, you know, people's water18 bills accounts have gone from, you know,19 20,000 to 500 and other things like that.20 And I'm told that at Water Revenue, the21 new computer system prevents that from22 happening.23 I don't know that 'cause I24 don't know that -- you know, as you say,25 93 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 you can only identify the computer, not2 the user that's putting in information.3 And there's no alert that if a certain4 percentage or other kind of change made5 that automatically goes to a supervisor6 or something like that, right? You7 either have access to the accounts or you8 don't.9 INSP. GEN. KURLAND: I'm sorry.10 I don't really know all of the details11 about how the computer system works at12 Water Revenue.13
Or anywhere14 else.15 INSP. GEN. KURLAND: Again, you16 know, it would be, when we were in the17 middle of an investigation, we would18 determine a problem, and that's when we19 would recommend a change.20
Well, I21 think it's a huge area of a lack of22 accountability and transparency that23 still exists that only modernizing our24 systems will allow.25 94 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 We've appropriated the money2 for that, and I'd certainly be anxious3 about your input, as we look forward to4 spending that money, to put in place5 systems that will make it clear who made6 a change to what account -- when, why --7 so that there is a true trail for8 supervisors and your office and the9 Controller's Office, et cetera.10 INSP. GEN. KURLAND: Right.11
So I hope12 that's something we can work on over the13 next year or so.14 INSP. GEN. KURLAND: I hope so15 too. And thank you for that suggestion.16 We will be working with the Department of17 Technology to do that.18
The19 Administration testified that there were20 1.5 and 3 percent budget reduction21 scenarios. Did your office prepare those22 scenarios?23 INSP. GEN. KURLAND: Prepare it24 for this coming year?25 95 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
It their7 testimony that every department was asked8 to prepare a 1.5 and 3 percent budget9 reduction.10 INSP. GEN. KURLAND: We have11 not been asked to do that.12
Okay. For13 FY '11, $1,379,000 was appropriated for14 the IG's office, an amount that was15 reduced by $100,000 in its revisited16 Five-Year Plan submitted to PICA. The17 projected spend is $1,281,000.18 As of September 10th, the19 increment run noted, in the budget20 detail, that you had 14 staff. The21 detail indicates that you plan to add 422 new Investigator II positions in FY '12,23 bringing staff total to 18.24 I understand that department25 96 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 heads managed the -- managed to the2 dollars budget, not to position levels,3 but just wanted to hear from you about4 how you're going to be able to hire these5 positions with the same funding level as6 FY '11.7 INSP. GEN. KURLAND: In FY --8 last year, we had 19 positions, and this9 year, we have 18. We have had a lot of10 attrition, and we've kind of reorganized11 who we hired.12 We lost a supervisor and we13 replaced that supervisor with a regular14 investigator, which give us additional15 funding, plus some of the surplus to hire16 another investigator.17 On the whole, we just look at18 the dollar amount, but we do have one19 fewer position this year from last.20
Well, you21 had 14 people in December 2010.22 INSP. GEN. KURLAND: It was a23 very short time that we had 14 people.24
Okay.25 97 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 INSP. GEN. KURLAND: As I said,2 we had a lot of people come and go.3
So how many4 people do you have now?5 INSP. GEN. KURLAND: Now we6 have 18.7
And so, you8 don't have money for new Investigator II9 positions --10 INSP. GEN. KURLAND: No, we11 don't.12
Okay. The16 detail indicates that you plan to add17 four new Investigator II positions.18 That's why I asked.19 INSP. GEN. KURLAND: What20 happened was, we used to have a position21 just called "Investigator." We divided22 that into Investigator I and Investigator23 II. We had some internal promotions, and24 then we hired some new investigators.25 98 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Okay.2 INSP. GEN. KURLAND: We do have3 four Investigator II positions at this4 time, and part of that was because of a5 reorganization.6
Okay. I may7 have missed contracts for investigators.8 Was that covered?9 Okay. In your testimony, you10 noted planning to increasing surveillance11 contracts from one to five, to increase12 minority participation.13 The detail shows that you had14 two contractors for FY '11, and you'll be15 using the same two contractors for FY16 '12. Is this just a typo in the detail?17 INSP. GEN. KURLAND: We have18 two investigative consultants; that is19 the retired FBI agent and the retired IRS20 agent.21 In addition to those two22 positions, which is -- that's our Class23 200 money -- we manage the surveillance24 contracts. And right now, we have one --25 99 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 I think we have two surveillance2 contractors now and we intend to increase3 that to five.4
And that's5 where you're going to increase your6 minority participation?7 INSP. GEN. KURLAND: Yes.8
By focusing9 on trying to get qualified minorities to10 fill -- to perform those other four11 contracts?12 INSP. GEN. KURLAND: That's13 correct.14
Okay.15 Where is that in the budget, the16 surveillance contracts?17 INSP. GEN. KURLAND: The18 individual departments pay for19 surveillance when they request it.20 For example, we'll have an21 investigation and get to a certain point22 where we believe that we can't go any23 further unless there's surveillance.24 If that individual that we're25 100 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 investigating is in DHS, our Integrity2 Officer will ask the Commissioner if they3 would like to pay for surveillance. And4 then the individual department pays for5 it.6
Okay. Thank7 you very much for your testimony.8 INSP. GEN. KURLAND: Thank you.9
Good12 afternoon.13 INSP. GEN. KURLAND: Good14 afternoon.15
And thanks16 for you and your organization's good17 work.18 I just have a quick question19 just so I understand. There's a lot of20 different types at the IRS,21 investigators. Is this person a Criminal22 Division IRS, or is he just -- or not23 "just," but is he -- what specifically --24 when you say "retired IRS," boy, there's25 101 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 a whole range of folks.2 INSP. GEN. KURLAND: Yes. He3 was a criminal investigator.4
The Criminal5 Division of the IRS?6 INSP. GEN. KURLAND: Yes.7
Thank10 you.11 Any other questions from12 members of the committee?13 (No further questions.)14 Thank you very much.15 INSP. GEN. KURLAND: Thank you.16 MR. McPHERSON: Our next17 department is Mural Arts.18 (Witness comes forward.)19
Good20 morning, welcome. Identify yourself for21 the record and proceed with your22 testimony.23
Thank you. My24 name is Jane Golden, and I'm the25 102 3/28/11 COMM. 3 Good morning President Verna4 and members of City Council. 8 The Mural Arts Program's9 mission is to unite artists and10 communities through a collaborative11 process rooted in the traditions of12 mural-making to create art that13 transforms public spaces and individual14 lives. 18 Throughout 2010 and in 2011, we19 have been working diligently to implement20 elements of our five-year strategic plan,21 with the goal of claiming on our role on22 behalf of the City of Philadelphia as a23 national and international resource for24 mural-making and community-based public25 103 3/28/11 COMM. 2 The establishment of a new3 project management office has given us4 the capacity to streamline our programs5 and oversee all new projects to ensure6 that they remain aligned with established7 organization-wide goals. 23 We intend to achieve this by making24 considerable strides in the following25 104 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 areas:2 One, jobs and economic3 development. Mural Arts contributes to4 the creative economy of Philadelphia by5 employing more than 300 artists each6 year. 23 Working in conjunction with the24 Philadelphia Convention and Visitors25 105 3/28/11 COMM. 5 Citizens and delegates from6 cities all over the world visit us to7 view the work, often with an interest in8 replicating our programs of. 13 Education. In FY '10, our free14 art-education programs provided more than15 1,425 underserved Philadelphia youth at16 40 sites, with access to quality art17 education and youth-development18 experiences through mural-making. Our19 programs engage these young people at a20 critical out-of-school time through a21 variety of projects and programs that22 focus on presenting them not only with23 creative opportunities but also24 constructive alternatives to juvenile25 106 3/28/11 COMM. 2 Our three distinct programs3 are: Big Picture, which serves kids ages4 10 to 14; our Mural Core Program, which5 is our teen program serving young people6 ages 15 to 21; and Art Works, serving7 severely at-risk delinquent and truant8 youth. 24 Throughout 2010 our Mural Core25 107 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 students have been working with artists2 to transform Bodine High School for3 International Affairs. 14 In 2011, our Mural Core15 students at E-3 power centers are working16 to address the serious issue of housing17 and homelessness faced by many local18 youth through a project called "A Place19 to Call Home," combining photo20 elicitation, educational meetings,21 awareness-raising, and a large-scale22 collaborative work of public art. The23 project will publicize the unique housing24 challenges facing young urban youth while25 108 3/28/11 COMM. 5 Public safety. 12 During the three-year grant13 period, Mural Arts is providing critical14 job-skills training and temporary15 opportunities to 125 individuals who are16 recommended to the program by the court17 system. 23 In conjunction with the24 Philadelphia Prison System, our ongoing25 109 3/28/11 COMM. 12 In addition, through our13 ongoing partnership with IBM, we have had14 the distinct opportunity to facilitate15 the invaluable IBM Reading Companion16 Program within the Philadelphia Prison17 System through participants in our18 Restorative Justice Program. 23 Mural Arts also contributes to24 public safety through our previously25 110 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 mentioned art education and youth2 development programs; specifically, the3 Youth Study Center in St. 9 Healthy and sustainable10 communities. 20 In 2010, we created 169 murals,21 hosted hundreds of community meetings,22 held paint days throughout the City, and23 cleaned up lots. 25 111 3/28/11 COMM. 6 Our ongoing partnership with7 the Department of Behavioral Health and8 Intellectual Disability Services.
To9 help reduce the stigma around behavioral10 health issues through, through a series11 of meaningful and transformative mural12 projects and three North Philadelphia13 neighborhoods. 25 112 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Innovation. Over the last few2 years, Mural Arts has been embracing3 innovation and considering what muralism4 means in the 21st century. 12 Among these projects, a very13 exciting one is "How Philadelphia Moves,"14 which will be at the Philadelphia15 International Airport. 22 At nearly 55,000 square feet,23 the mural will be the second-largest in24 the world. It is being created in25 113 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 partnership with the Department of2 Transportation and will be visible to3 traffic entering and leaving the airport4 as well as from 95. 7 In addition to this, in8 February of 2011, we launched the Albert9 M. 21 To continue our focus on22 innovation, we are also planning several23 major corridor projects at Germantown and24 Lehigh and Manayunk and along Chestnut25 114 3/28/11 COMM. 15 Funding needs and uses. The16 Mural Arts operates as a public/private17 partnership, with an annual operating18 budget of 7 million, one million of which19 comes from this allocation for which I am20 testifying today. This allocation from21 the City funds the salaries of 1222 employees, including my own; a great23 mural operations crew member, an24 executive assistant, a reception manager,25 115 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 and two staff muralists. 10 The Office of Economic11 Opportunity. The Mural Arts Program is12 committed to supporting the13 Administration's goal of 25 percent14 minority-, woman-, and disabled-owned15 business participation in City16 contracting. 19 I would like to thank the20 Office of Arts, Culture and the Creative21 Economy as well as the Managing22 Director's Office. After 27 years of23 Mural Arts, I am more certain than ever24 that art has the unique power to ignite25 116 3/28/11 COMM. 20
And21 we thank you.22 On of your testimony,23 you mentioned that you were requesting24 $562,614 in the Grants Revenue for Fiscal25 117 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 2012. The funding source for this grant2 appears to be federal ARRA funds. Isn't3 this the last year for these grants?4
We are in the5 last -- we have a year-and-a-half left6 with that one grant. So I think we7 are -- I mean, we're in the final stretch8 of it, yes.9 But I thought -- I can get back10 to you. I can check on that. I thought11 there was a year-and-a-half left.12
I'm13 just curious. Does the proposed14 Five-Year Plan increase your General Fund15 budget for Fiscal 2013?16
It's a great24 question.25 118 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Thank you,4 Madam President.5 Following up on the Council6 President's question, your Class 2007 request is $514,000.8
Your Class10 200 request is for $514,000. What is11 that money for?12
That is going for13 projects -- mostly projects, some staff.14 But that's -- and some art education.15 It's a variety.16 It's divided up. One part of17 the City request is for salaries, the18 City employees, the 12. The other part19 goes for -- it's a combination of20 large-scale projects, some art education,21 and some staff.22 And I can get you a detail of23 that if you'd like.24
And is any25 119 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 of that money contracted out?2
Okay. Thank4 you.5 Thank you, Madam President.6 COUNCIL PRESIDENT VERNA:7 You're welcome.8 The Chair recognizes Councilman9 Kenney.10
Thank you,11 Madam President.12 I don't have a question but I13 do have a comment.14 I would venture to argue that15 your organization, your private/public16 partnership, probably maximizes more than17 any other entity in the City the best use18 of tax dollars.19 If you look at what you get20 from us and what you generate, if you21 look at every single action that you guys22 do, it has some effect in multiple23 departments and multiple issues, whether24 it's neighborhood improvement, economic25 120 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 development, ex-offender and current2 people incarcerated, mental health,3 children and youth, public safety,4 international and national tourism,5 'cause we have people coming from all6 over the place.7 It's just an amazing set of8 circumstance and actions that you9 accomplish every single year. And I just10 want to commend you and your people.11 I've been on the Mural Arts12 board now for about a year or so, and13 I've seen even closer -- closeup the work14 that you are able to accomplish. And it15 is amazing with what we're give you and16 what you generate the work that you turn17 out and the reputation that the City has18 internationally -- I mean, we have19 muralists from Paris coming to20 Philadelphia to see how you do that.21 And then not only that, as time22 has gone on, we've come from just the23 kind of flat painted murals to much24 different types and techniques, different25 121 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 types of materials, the use of light, the2 use of computers. I mean, it's just --3 it seems like the possibilities are4 endless.5 So you "thank you, thank you,6 thank you" to us, but thank you to you7 and your folks because it's just a8 tremendous thing. I'm so proud to be a9 part of it and so proud to watch what you10 do and how you change people's lives and11 people's neighborhoods. It's wonderful.12
Well, thank you13 very much, thank you. It's a labor of14 love.15
The16 Chair recognizes Councilwoman Blackwell.17
Thank18 you, Madam President.19 I certainly agree with20 everything my colleague has said. You21 know, Jane Golden always says, "Art22 changes lives," but we know why. She's23 saved so many kids in trouble, so many24 people, homelessness, people in trouble,25 122 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 adults and youth alike, employees,2 inmates, and kids who have problems, and3 has as, we heard, an age group for4 everybody in our society is.5 I know why she says that art6 saves lives: because she's made it save7 lives in her approach.8 And what's ironic to me is that9 she raises more. What she asks for is10 such a small pittance compared to all of11 the money she raises. And I am proud to12 support her, her request for this raise.13 And I would like to ask her,14 and I hope that Clay Armbrister is15 listening, because we want to ask again16 about the Tiberino Museum. I'm going to17 ask about this until we get an answer.18 And we want to be able to fund it, their19 program.20 And, Miss Golden, if there is a21 way for them to fund -- to put funds in22 your area, would you believe to work with23 Mr. Tiberino to make this project a24 reality?25 123 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Oh, absolutely.2 And I have conferred with the Chief3 Cultural Officer, Gary Sawyer, and I know4 that he's open to working with us; it5 would be a nice team effort.6 And we really -- Mr. Tiberino7 has -- you know, he's an institution in8 the City, and I think that we're all in9 agreement that we would like to support10 and help him however possible.11 The idea is a good one, and we12 just have to figure out a way to do it so13 that it's fiscally possible.14
Rebecca Rhyhart,17 Budget Director.18 Just to add that, following up19 on our conversation, the answer to part20 of the testimony in the Five-Year Plan,21 that that is something that we're talking22 about, and we'll get back to you. We23 know that it's important to you.24 COUNCILWOMAN BLACKWELL:25 124 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Absolutely. Thank you.2 Thank you, Madam President.3
Any10 more questions from members of the11 committee?12 (No further questions.)13
Could I correct14 the record from the IG's testimony if we15 have just a moment?16 I just wanted to say that all17 departments were asked to do 1.5 and 318 percent cuts, and they did provide 1.519 and 3 percent cuts.20
Thank21 you.22 Very good, we're right on23 schedule.24 The committee will stand in25 125 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 recess until 1 o'clock.2 (Lunch break taken.)3 (Proceedings resume.)4
Okay.5 This is a continued public hearing of the6 Committee of the Whole.7 Mr. McPherson?8 MR. McPHERSON: Our next9 department is the Mayor's Office of10 Community Services.11 (Witness comes forward.)12
Time19 goes by when your having fun.20 Please identify yourself for21 the record and proceed with your22 testimony.23
25 126 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Good afternoon, Council2 President Verna and members of City3 Council. I am Otis Bullock, Executive4 Director of the Mayor's Office of5 Community Services. 8 The Mayor's Office of Community9 Services requests an FY 201210 appropriation of $9,006,887, all deriving11 from grant funding. The Mayor's Office12 of Community Services is the community13 action agency for the City of14 Philadelphia. 18 It is important to note that19 our CSBG funding may be impacted by20 conversations currently happening in21 Congress. MOCS major grant requires that22 the agency provide service to low-income23 individuals and families that live at or24 below 125 percent of the federal25 127 3/28/11 COMM. 18 MOCS has a staff of 72, ten of19 whom are bilingual. Our Community20 Engagement Unit staff is deployed to21 targeted high-crime, low-income22 neighborhoods to facilitate and support23 the wide range of activities related to24 mayoral initiatives which are designed to25 128 3/28/11 COMM. 13 The CEU staff also provides14 residents with the necessary referrals to15 emergency services and/or linkages to16 meet their needs. 22 This is accomplished by23 developing formal and informal24 partnerships with community-based25 129 3/28/11 COMM. 22 FEP will help low-income,23 noncustodial fathers and their children:24 advance out of poverty by providing25 130 3/28/11 COMM. 6 Our Foster Grandparents Program7 (FGP) is charged with meeting critical8 community needs for two of our most9 vulnerable populations: senior citizens10 and special-needs children. 18 Over 130 foster grandparents19 volunteer, representing the diversity of20 Philadelphia's neighborhoods. 24 Our WorkWise program, a25 131 3/28/11 COMM. 18 Work Ready targets TANF19 recipients in danger of losing their20 benefits. 25 132 3/28/11 COMM. 5 The Mayor's Office of Community6 Services is committed to supporting the7 Administration's goal of 25 percent8 minority-, women-, and disabled-owned9 business participation in City10 contracting. 19 We subcontract with the Office20 of Supportive Housing. 23 We contract with the Department24 of Heath's lead-abatement program. And25 133 3/28/11 COMM. 4 We also subcontract with the5 Department of Recreation. 22 So if any Councilmembers wish23 to engage in further discussion on any of24 these matters, my staff and I are happy25 134 3/28/11 COMM. 4
Thank5 you.6 You mention on of your7 testimony that your agency provides8 services to low-income individuals and9 families that live at or below 12510 percent --11
-- of13 the federal poverty level. Can you state14 for the record what those income levels15 are?16
Yes. For a17 family of four, those levels are at18 $27,938 or less. A family of one is19 about $13,613. There's actually a20 federal chart that outlines --21
There's actually24 a federal chart that outlines all of25 135 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 these guidelines.2 But for a family of four, about3 $27,934.4
Thank5 you.6 You mention also on of7 your testimony that your CSBG funding may8 be ended by actions taken at the federal9 level. What programs and services do you10 see that might be impacted?11
You know, at this12 moment, it's hard to say. Right now,13 we're trying to plan for, you know,14 what's a moving target.15 We know that the -- in16 Congress, the President had put a17 proposal, you know, on the table to cut18 CSBG by 50 percent and possibly make it a19 competitive grant. Right now, that's20 been, you know, debated and fought over21 in Congress.22 So we really don't know what's23 going to happen at the end of these24 negotiations in Congress. It's still25 136 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 there. We we're planning for a moving2 target right now.3
And4 you say it's being said that it may be5 cut by 50 percent?6
I9 know that MOCS used to have an office at10 South Broad Street, at Reed.11
Have20 they relocated anywhere in South21 Philadelphia?22
Is it24 throughout the City, or are we just in25 137 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 certain sections of the City?2
It pretty much3 happened throughout the City a number of4 years ago, and this was in the previous5 administration.6 There once was, you know,7 twelve branch offices that MOCS held8 throughout the City. We no longer hold9 twelve. Right now we have two: one at10 Sixth and Lehigh and another at 22nd and11 Sommerset.12
So13 how many clients can you serve with two14 offices being open?15
Well, not as many16 as we could with twelve.17 COUNCIL PRESIDENT VERNA:18 That's obvious.19
But our total20 count for last year is roughly 34,00021 clients that we served. And from my22 understanding, these offices were closed23 because of, you know, lack of funding.24
Okay.25 138 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 I just have a couple of other questions.2 Okay, you say over 130 foster3 grandparents volunteer. Now, can you4 explain all of that to me, about the5 foster program? I thought that came6 under DHS. Tell me how this differs from7 what happens with DHS.8
Actually, this9 foster grandparents grant is a separate10 grant, separate from CSBG, separate from11 DHS. It's actually a national program12 through the National Office of Community13 Services.14 And basically what the program15 does is, you know, we take 130, you know,16 senior volunteers. We provide them with17 a stipend. And they provide, you know,18 services and help to at-risk children who19 are either, you know, in school or20 daycare special-needs kids. And some of21 these children are even in our hospital22 beds. And the really, you know, help23 these kids on it.24 We service over 6,000 kids per25 139 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 year through the use of these 1302 volunteers.3
They receive a6 very small stipend. I can get you the7 exact amount at a later date.8
Thank12 you.13 The Chair recognizes Councilman14 Goode.15
Thank you,16 Madam President.17 Good afternoon, Mr. Bullock.18
Good afternoon,19 Councilman.20 COUNCILMAN GOODE:21 Congratulations and welcome back.22
In your24 testimony, your Class 200 allocation is25 140 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 roughly $5 million?2
What is the4 largest contract that you will award in5 Fiscal '12?6
Well, actually,7 we contract quite a bit with other City8 agencies and nonprofits. So I would say9 that our biggest contractors would be the10 Department of Recreation for about 552 --11
What's the12 largest non-City agency? What's the13 largest --14
The largest15 non-City agency would be North16 Philadelphia Human Services at $200,000,17 which is a nonprofit.18
Okay. And19 is that a renewable contract? Or would20 that be bid?21
It has not been22 bid. It's been renewable, you know, for23 several years now.24
How many25 141 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 years have they held the contract?2
Okay. Can5 you briefly describe the contract6 requirements?7
They provide us11 with case-management services for our12 clients in North Philadelphia. They also13 do, um... I'll just take a moment real14 quick.15 So they provide case-management16 services and emergency services to about17 200 low-income families in North18 Philadelphia. And some of these services19 involve entitlements, like, LIHEAP20 Crisis, and other direct-support21 services.22
Okay. Are23 there any subcontract opportunity for24 for-profit companies within that25 142 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 contract?2
Within the North3 Philadelphia Human Services contract?4 No.5
Okay. Is9 that firm currently in compliance with10 the City's living-wage-and-benefits11 standard?12
Okay. Will15 the firm be required to be in compliance16 with the living-wage standard for Fiscal17 Year '12.18
Okay. And21 who is directly responsible for22 monitoring wage-and-benefits standards23 for your department's contractors?24
We have appointed25 143 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 an OEO officer who works with the OEO to2 make sure that we're in compliance.3
No, I'm4 actually speaking about the wage-and-5 benefits standard, not the business6 diversity.7
No, the10 living-wage-and-benefits standard.11 There's a requirement that nonprofit12 firms receive that receive at least13 $100,000 a more a year pay at least 15014 percent of the federal minimum wage to15 their employees.16 I don't believe that that's17 been implemented in the past, but through18 a Charter amendment that was done, it now19 applies to all contracts, including those20 contracts. And so, we want to make sure21 that it is absolutely being implemented22 and enforced for Fiscal Year '12, which23 would probably be the first yore that it24 would be required under the Charter25 144 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 amendment.2 Just two other questions. The3 Administration is currently --4
Well, I will just5 add that I will make note of that,6 Councilman, and be sure that we're in7 compliance with that.8
Thank you,9 thank you very much.10 Just two other quick questions.11 One, the Administration is currently12 realigning its workforce development13 system. There's talk of merging the14 Philadelphia Workforce Development15 Corporation with the Workforce Investment16 Board.17 MOCS has a couple of workforce18 development programs. How is MOCS19 involved in that conversation?20
Well, we're very21 involved in that conversation. In fact,22 currently, through our Work Watch23 Program, which is a workforce development24 program, we're working on a partnership25 145 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 with PWDC at the current moment, which2 has been organized by our funder, the3 Bureau of Employment and Training4 programs.5
So how do6 you anticipate the transition? I know7 the Workforce Development Corporation and8 the Workforce Investment Board are9 expected to merge. How would MOCS --10 would MOCS programs stay under MOCS, or11 would those programs go to a new entity?12
MOCS programs13 will still stay under MOCS. And we plan14 to work with the other workforce15 development corps to serve as a capacity16 builder and a collaborator.17
Okay, thank18 you.19 Last question. I think this is20 probably the first year I haven't seen21 any money from the Empowerment Zone; is22 all of that money gone now?23
Okay, all25 146 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 right. Thank you.2 Thank you, Madam President.3
Thank you,6 Madam President.7 Good afternoon.8 Can you -- I'm referring back9 to your testimony that you submitted. I10 see $6 million from the DCED Fund?11
And I think13 that's $1.9 million from welfare. And14 the Human Services Fund, a 100,000. And15 then there's the foster grandparents,16 which is 500; is that a State-related17 agency?18
That's24 federal.25 147 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
So of the4 $9 million you receive, $500,000 only5 comes from outside of the State?6
No. Actually,7 the 6 million for the Community Services8 Block Grant comes from out of the State9 as well. And the feds, they funnel it10 through the State, and then it's given to11 us through a DCED. So that's kind of how12 that works.13 But that's a federal grant14 that's administered by the State.15
But it's16 from the Department of Community and17 Economic Development, DCED.18
All right.20 And then you have welfare. Is there a21 reason why -- and you're a nonprofit?22
Well, we're a23 City agency. We actually serve a dual24 role as a City agency and a community25 148 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 action agency, which is why we receive2 CSBG in the first beginning.3
You are not.7 So it seems that most of these are8 federal and then State-funded.9
Is there a11 reason why you don't go after any other12 pools of money? Are you restricted in13 any way?14
That's a good15 question. And, no, we are not restricted16 in any way from going after additional17 pools of money. In the past, we have not18 done that, but it's my intention to start19 to do that.20
I mean, I'm21 just curious, in light of the fact that22 you can anticipate cuts from the federal23 government.24
That's correct.25 149 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
The Governor2 has all but said that he is going to make3 severe cuts at the State level. And to4 narrowly have those two sources, it might5 be time to diversify your funding by way6 of other philanthropic organizations7 whose mission also is to alleviate8 poverty, 'cause without that, you're9 going to take, you know, maybe not this10 year, but definitely as we go forward and11 they tighten these budgets, it seems as12 though you're in the direct line path and13 those 24 percent of people living under14 the poverty guidelines are in the direct15 path of that.16
I agree17 wholeheartedly, Councilman. You know, I18 would say pretty much that you're on the19 money.20
Is your21 board looking at that at all? Do you22 have a board of directors?23
We do have a24 board, yes.25 150 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
I can give you a7 list. We have a list of 37 board8 members, and we have a --9
I mean, that13 would be interesting. Based on your14 board, it tells how you can kind of look15 into different spheres of and potential16 revenue sources.17 Can we look at some of the18 production? MOCS provides services to19 34,000 people?20
That are 12522 percent below the poverty guideline,23 correct?24
That is correct.25 151 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
What2 categories of services are we talking3 about when you say "services"?4
Well, we have5 about nine categories for services:6 employment, education, income management,7 housing, emergency services, nutrition,8 linkages, self-sufficiency, health, and9 various other --10
Absolutely. And13 I can provide it to you broken down by14 the numbers that we provide the services15 to.16
Can the17 Sergeant-at-Arms get us a copy of that18 possibly? Hello? Hello? Can the19 Sergeant-at-Arms get a copy of that20 possibly?21 (Copy of list distributed.)22
Nine categories,25 152 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 yes, sir.2
All right.3 So under employment, how many people did4 MOCS get a job for last year?5
How many8 people -- how many clients received a job9 under your job-training program?10
And where13 did -- do you have a breakdown of where14 they got jobs? I mean, not -- I don't --15 I would not think you had it right here,16 but you can provide us with who the17 employers were?18
All right.20 And I'd be interested in -- how many of21 them were ex-offenders?22
One second,23 'cause I do think we have that info.24 All right, 75 of them were25 153 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 ex-offenders.2
Okay. It6 would be good -- are you allowed to7 provide a list of those people who8 received those services under the9 ex-offenders and under employment?10 Because I sent you a letter --11 not you, but your predecessor about that,12 and there was some privacy issue that was13 raised, and I've later found out that14 that is -- you can share that15 information.16
Well, you know,17 that would be something that we would18 need to look into. We couldn't share the19 actual files with you, but the --20
So while25 154 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 you're getting us the list of the2 employers, the list of the individuals,3 what would also be helpful to me would4 be -- you talked about bringing families5 into self-sufficiency. How many families6 did you bring from poverty, the 1257 percent below, above that poverty8 threshold last year.9
One sec, please.10 Councilman, that is a number11 that we do not have at the moment. That12 would be something that we would have to13 look into and get back to you.14
If you could15 provide the Chair with that, that would16 be good.17 And there would probably be a18 corresponding -- when you say documenting19 how you did that, they would be, someone20 that was on welfare is now off of21 welfare, or some type of cash assistance?22 Or how do you qualify --23
There's various24 different levels of self-sufficiency and25 155 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 moving towards it.2 So what we typically try to3 measure is the incremental steps towards,4 you know, self-sufficiency.5 So, for example, if we're6 providing, you know, a literacy program,7 which we do, and have individuals who8 start at a certain grade level and we're9 able to, you know, move them up, although10 they may not have moved up enough to, you11 know, gain a GED, we do, you know, count12 those incremental steps towards that13 goal, that self-sufficiency goal.14 So when we talk about self-15 sufficiency, you know, we don't talk16 about, All right, you're not self-17 sufficient today, and now you're self-18 sufficient tomorrow. It really is an19 incremental process moving towards that20 goal. And that's how we measure it.21
So those22 standards of incremental movement towards23 self-sufficiency are standardized by you?24 So you say, this is a "Class A family,"25 156 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 whatever that definition is.2
So many4 people in a household, so many -- a5 certain level of income. And then you6 say, in six months, a year, now you're at7 B level.8
And so, you11 would be able to share with us what those12 gradual steps are and those people who13 have made those steps.14
Yeah. I can even15 show you -- you know, I would love to16 show you our brand-new database and17 case-management tracking system called18 "e-logic."19
That's Bill20 Green. You could do me 3-by-5 cards or21 electronic 3-by-5 cards or something.22 I'm not that --23
Because this new24 system that we have would measure exactly25 157 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 that and all of the different, you know,2 service categories from education, you3 know, to income level to housing to4 wherever the person was when they met us5 and where they are now.6
So we'll7 allow you some time and you'll come back8 to this body and be able to give us that9 information?10
Okay. I'm13 excited now.14 I see you have the Community15 Engagement Unit. I think you answered in16 Councilman Goode's question about your17 largest contract that you do in North18 Philadelphia and what was that again?19 Could you repeat that? The company that20 you engage in in North Philly?21
And they do24 exactly what?25 158 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
They provide2 emergency services, you know, some of the3 same services that CEU currently provides4 at 990, only they do it in North5 Philadelphia.6
So is there7 a companion organization in West8 Philadelphia that does those kinds of --9 'cause I know Maria often tells us that10 the only poor district in the City of11 Philadelphia is the Seventh, but I happen12 to know a couple of poor people in the13 Fourth that probably could use some help.14 Do you have a companion15 organization that services West Philly?16
Oh, no, there is17 not a companion organization in West18 Philadelphia that we're providing a19 contract to provide those services.20
Well, I'm21 going to ask Councilman Clarke, does that22 come with seniority, or how does that23 work?24
Oh,25 159 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 if it does, I'd like to know why we don't2 have one in South Philadelphia.3
Yeah, you're4 wondering.5 So is there a reason why you6 picked North Philadelphia?7
I would like you8 guys to keep in mind that we're looking9 at potential cuts. But, honestly, I10 couldn't tell you why, because this11 contract actually predates me, and it12 also predates this administration; you13 know, I would say that.14 But it has been a organization15 that provided a good service for us.16
Keep in mind17 that I represent a good part of North18 Philadelphia that needs services.19 However, there's some folk I know in West20 Philly that also need it.21 We sent you a letter -- not22 you. Again, this precedes you probably.23 A letter requesting the breakdown of24 where and what zip codes your clients25 160 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 come from, because it may not be just a2 question of need but a question of3 marketing, because if people don't know4 that you have those services, they don't5 apply for those services, and maybe the6 contracting firm in North Philadelphia7 does a real good job of it and just8 doesn't get to West Philly.9
But we'd11 like to have it broken down by zip code12 because it is an important part of the13 anti-poverty effort of the City -- South14 Philly, included Madam President, all15 right?16 So could you give us -- we17 really need a breakdown, if not the18 clients' name, at least the zip code of19 origin would be helpful to us.20
Sure, sure, we21 could do that.22 And in the past, we were unable23 to that because we didn't have a database24 or a tracking system, and now we do.25 161 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Okay. Tell2 me about your Fatherhood Employment3 Program.4
Yes, Fatherhood5 Employment Program. The program is6 geared toward reconnected, noncustodial7 fathers with their children and building8 better relationships not only with their9 children but with their children's10 mother.11 We added an employment12 component to it just last year because13 it's hard to be a good father if you14 can't financially care for that child.15 So we added an employment component to16 help these guys get some job skills, get17 some job training, and get some18 meaningful employment.19
How many20 fathers did you assist and how many of21 them got jobs and what was the payment22 reduction of past-due child support that23 was received as a result?24
Now, the25 162 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 employment piece is new, so the verdict2 is still out as to, you know, how many3 jobs are going to happen throughout this4 year.5 What last year -- give me one6 moment. Last year, we serviced about 4007 noncustodial fathers from last year.8 And one of the issues that we9 had -- the reason we changed the program10 into an employment program is because we11 wasn't sure we were getting into the hard12 outcomes that we wanted, which was an13 increase in payment of child support.14 And that's why we added the employment15 program to it.16 But the verdict is still out17 this year on it.18
Well, what I19 would be interested in knowing is what20 the net impact on child support was. Are21 you familiar with, I think, Act 75 --22 Recommendation 75? I'm sorry. Are you23 familiar with that?24
I'm not familiar.25 163 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Okay. Well,2 Recommendation 75 has caused a lot of3 arrearages by parents -- not men or4 women, but parents -- that owed child5 support to be wiped out, to just be6 deemed uncollectible.7 I personally find that8 offensive, and I think that as you work9 with this program, to look at those10 arrears and to make sure that those11 people that are trained and then employed12 actually go back and pay their child13 support is a key component of this14 program. And we'll be looking for15 measurements for that.16 All too often, when this17 Recommendation 75 came out, we got a18 flood of calls in my office about, you19 know, "I've been tracking this guy for20 all these years and now they're telling21 me, Oh, well, and they're throwing their22 hands up."23 So any participant in that24 program I want them to actually pay their25 164 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 child support. I think it's important.2
Well, if5 ain't measured, it ain't managed. We got6 to make sure we measure it.7
Under your9 Grandparents Foster Parents, I see you10 have 130 foster grandparent volunteers?11
The Foster15 Grandparents Program came into existence16 in 1965, at the same time that the17 Mayor's Office of Community Services did,18 and it's been a program of ours since the19 beginning part. It's part of one of them20 "Great Society" programs.21
Oh, wow. I22 haven't hear that in a while.23 So, is this 130 for this year24 that you have?25 165 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
So how many4 young people have benefited from that5 program?6
Well, I'm14 going to take a look at that be -- and15 what -- help me -- what --16
That's like22 casting bread upon water and feeding a23 whole multitude with one fish, 'cause if24 130 can help 6,000, I'd really -- we need25 166 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 to replicate that, and I'd like you to2 provide the Chair with some details about3 that because that's amazing to me.4
Foster5 Grandparents is one of our better6 programs; it receives national acclaim7 year in and year out every year.8
Mm-hmm. All9 right, okay. What new programs has MOCS10 created, or what should we be looking11 forward to in light of our economy? I12 mean, what new innovations over the last13 couple of years have you done?14
Well, you know,15 some of the things that I mentioned in16 the budget testimony was what was new,17 like the Choice Food Cupboard that we've18 done with Philabundance, which I think is19 pretty innovative.20 You know, it basically takes21 the concept of a food cupboard and turns22 it into, you know, a soup and23 market-style shopping experience for24 free. We're doing that down on Sixth and25 167 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Lehigh.2 I would love to be able to3 replicate that, you know, in other4 Council District as well. But, you know,5 we started in, you know, Councilwoman --6
Yeah, 'cause7 there are, you know, other poor people8 than other --9
-- in the11 Fifth and in the Seventh.12 (Addressing Council President13 Verna.) And there's some in South14 Philly, right?15
I mean, we'd18 like to see geographically how these --19
That's why21 the zip codes of where the participants22 come from is important.23 As I drive through -- and24 Councilman Clarke should be given high25 168 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 praise for his ability to turn North2 Philly around. I see construction there3 all the time. But, you know, every now4 and then, you can on our side of the5 water and help out.6
Right, right.7 Well, not to speak for PhilAbundance, but8 I'm pretty sure that they would love to9 replicate that.10
All right.11 And, finally, do you guys -- out of your12 $9 million, can you give us a breakdown13 of what other City departments you give14 assist to --15
Sure. We have19 the Department of Recreation, where we20 help to support six older-adult centers21 across the City.22 We have the Department of23 Health, where we help to support the24 lead-abatement program.25 169 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 We help the Mayor's Commission2 on People with Disabilities.3 We have Mural Arts that we help4 support.5 And I wanted to make sure --6 and the Office of Supportive Housing,7 where we support it by three family8 shelters.9
And can you10 give us a breakdown of what dollars go11 the those respective programs?12
All right.14 Thank you, Madam President.15 COUNCIL PRESIDENT VERNA:16 You're welcome.17 The Chair recognizes18 Councilwoman Blackwell.19
Thank20 you, Madam President.21 I only have one question. With22 regard to -- well, maybe two. How do you23 get your Fatherhood Employment Program --24 how do you solicit the men, or do you?25 170 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 How do they come to you?2
We get a lot of3 referrals from the courts, from Family4 Court, mostly guys who are behind in5 their child support, they get referred to6 us.7 And, you know, we do a lot of8 outreach. We do do open enrollment, but9 we definitely do do more of it, but most10 of our guys come through the courts.11
And12 your Foster Grandparent Program, we have13 one -- we introduced about five education14 resolutions, and one of 'em calls for us15 to supplement counseling in schools. Can16 this program help us in that regard?17
All24 right. Then I'll be in touch with you on25 171 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 that.2
Thank8 you, Council President.9 COUNCIL PRESIDENT VERNA:10 You're welcome.11 The Chair recognizes Councilman12 Green.13
Thank you,14 Madam Chair. And you'll be very pleased15 to hear, I think all of you, that I have16 six minutes before I have to go get on a17 phonecall.18 Congratulations.19
Welcome, on21 your new position. How long have you22 been in the role?23
It's been since24 October.25 172 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
I expect4 you've started to put your mark on the5 department a little bit?6
Okay. I was8 a bit surprised to see that your budget9 testimony is, word-for-word, the same10 exact testimony as given by the Acting11 Executive Director last year.12
The programs are16 the same. You know, our programs, you17 know, are what they are. You know, we18 still have the fatherhood program.19
There's20 nothing new --21 (Indiscernible; parties talking22 over each other.)23
No new24 priorities, no new things that you're25 173 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 doing?2
Right now, we're3 really focused right now on trying to4 prepare for what may be coming down the5 pike next year, which could be, you know,6 budget cuts, so --7
And you know8 it's basically substantially the same as9 the testimony given two years ago --10
I pointed15 out last year that the testimony was16 basically the same.17 And so, what I'm going to focus18 on in a bunch of questions I'm going to19 send you, and they're very similar to the20 questions that I sent last year, is21 outcomes for the programs.22 Like, I do find it hard to23 believe that 130 foster grandparents24 serve 43 children apiece, 'cause that's25 174 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 what the numbers would have to work out2 to be.3 And MOCS is one area where,4 frankly, I'm not sure we're getting value5 for our dollar; we spend a lot of money6 in there.7 And you seem to replicate what8 other departments do, perhaps do more9 efficiently and better; like, for10 example, workforce development and other11 things that are happening in your office.12 And there are other agencies that do that13 full-time, why we're funding you with14 that, and stuff like that.15 So I'll be sending you -- I'm16 not going to go through it now, but I'll17 send you a list of detailed questions18 that I'd like to understand exactly what19 it is you you're going to achieve with20 the dollars you're appropriating for each21 program, how many people you're going to22 sow, and what the outcome of that is23 expected to be in the next year.24 But I will ask you: In, I25 175 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 think, a July 7th press release from the2 Mayor's Office of Communications, there3 was an announcement of a two-year4 $500,000 grant for the Department of5 Agriculture to work with BenePhilly,6 which is something the freshmen learned7 about in our freshmen orientation.8 Could you -- the release noted9 that BenePhilly assists seniors in10 applying for benefits through innovative11 and unprecedented outreach and12 application assistance efforts. It was13 encouraging to learn that this effort14 included proactive outreach to seniors15 who are unenrolled but believed to be16 eligible.17 Has MOCS coordinated with18 BenePhilly to adopt some of its best19 practices?20
To what22 extent does MOCS engage in similar23 proactive efforts where you go looking24 for people you can serve as opposed to25 176 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 sort of having people walk in the door?2
Well, we do that3 with our community organizers in CEU,4 when we send 'em out to community5 organizations and community events out in6 the community, to provide them with their7 servicers --8
So what do9 you mean when you say you're community10 organizers? Do you have people on your11 staff whose job it is to be a community12 organizer?13
Ten. Part18 of the question I'll be asking you is,19 can you please send me a list of how20 often those ten people have been out in21 the field, and what specifically results22 from each of their efforts in order to23 roach out to the community?24
Absolutely. And,25 177 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 actually, they're out in the field as we2 speak, at our northeast site, doing taxes3 and also at our Center City site.4
And that's in7 partnership with the Campaign for Working8 Families.9
And who pays17 for that? Is that grant money from the18 federal government, or is that --19
That's grant20 money. All of our money is grant money21 from either the federal government or the22 State.23
So we don't use25 178 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 our own General Fund dollars.2
That's3 right. Okay. Well, I'll send you the4 rest of my questions in writing, and I5 look forward to your response.6 Thank you.7
But, Councilman,8 I just wanted to note that, you know, I'm9 very aware of your concerns, and I didn't10 forget.11 I came here prepared to talk12 about e-logic with you.13 (Laughter.)14
Well, I'm17 glad that it's up and running, and it18 hasn't been up and running long enough19 for us to be able measure --20
But we should be24 able to, you know, be fully at it in25 179 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 maybe June. And I would love to --2
So it will3 be up and running in June, so we'll have4 a whole fiscal year -- or most of a5 fiscal year of data to look at next6 year's budget --7
And perhaps12 it could result in different testimony13 next year.14
The24 Chair recognizes Councilman Rizzo.25 180 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Thank you.2 Forgive me if you've already3 addressed this. It's about the $634,8i84 increase for the purchase of services.5 Did you already discuss that today?6
It's in9 section, let me see. I think it's10 section 6, .11
Is that in the12 Operating Budget, or is that in the13 testimony?14
In the15 Operating Budget.16 (Mr. Bullock looks through17 documents.)18
If you can2 find it, it indicates that there's a3 request for that amount in the budget.4
A couple of22 quick ones.23 In terms of your physical24 locations, do you -- in terms --25 182 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 satellite offices -- do you -- I know, in2 the olden days, when we had a lot of3 money, it used to be the Mayor's Office4 of Community Services.5
We just have two9 satellite offices. We have our main10 office at 990 Spring Garden Street. And11 we have two satellite offices: one at12 Sixth and Lehigh and another at the mini13 City Hall at 22nd and Sommerset.14
You have15 one at 22nd? So do you have a staff16 person there or in the office?17
At any of24 the locations.25 183 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Right. The mini2 City Hall location is a City building.3 And Sixth and Lehigh is right under the4 Free Library.5
Okay. In9 terms of your locations and the10 organizations that you service, is it11 based on census track data as it relates12 to median income or information that's13 associated with poverty levels?14 I mean, how do you make the15 determinations --16
We have twelve20 poverty areas that we service, which is21 based upon the census track. That should22 probably change this year with the new,23 you know, census, you know, coming out24 anyhow.25 184 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 But it's not based upon, you2 know, Council District or zip code or3 anything like that.4
-- in spite9 of some of the earlier questions.10 (Laughter.)11
As it12 relates to your ability -- and it was a13 earlier question and I got distracted and14 I didn't quite -- your ability to solicit15 or capture a broader cadre of resources,16 how is that done, soley through your17 office?18 Or who basically goes out and19 solicits grants for your office; is it20 done by support from the City or the21 various agencies or support from the22 federal government or the federal23 agencies -- or federally-elected24 officials, I guess I should say.25 185 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Right. I mean,2 it would be done through our office. In3 the past, it has not been done. I can't4 answer as to why it has not been done,5 but I know there has been a new concerted6 effort to solicit, you know, and7 diversify our funding streams.8
Okay, all9 right. As we move forward, I guess this10 will pretty much tell after the census11 data is compiled and analyzed in terms of12 your ability.13 I guess what I'm getting at is,14 from my perspective, I don't think that a15 lot of people know but the Mayor's Office16 of Community Services. A lot of people17 know about the Mayor's Office.18 But in terms of being able to19 access this information -- and I was20 actually talking to my colleague21 Councilman Rizzo about this, and there22 was some concerns about making a lot of23 this information available without the24 necessary resource.25 186 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 My preference would actually be2 that we have more people than we can3 serve, and then we can always make the4 argument to go out and get additional5 resources to service our population.6 Do we have a strategy, or do7 you think that you're at a point where8 you need to be in terms of making people9 aware of the services that you offer?10
Being ordained as14 the City's antipoverty agency, you're not15 going to, you know, end poverty with $816 million.17
So, I mean, my19 strategy is to become more of a capacity20 builder.21 The one thing about22 Philadelphia that we're fortunate to have23 is a number of, you know, different24 nonprofits and other, you know, entities25 187 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 providing many of the same services. And2 I know Councilman Green has brought that3 up.4
So what we're6 trying to do is become a facilitator, you7 know, a collaborator and a capacity8 builder with these other agencies that9 are, you know, doing what they did pretty10 well. And then we bring it back at to11 the table and bring everybody together12 and try to measure it instead of being a13 competitor.14
All right.25 188 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
We're working2 towards having a full online presence3 including, you know, social media and so4 on and so forth.5
Hopefully, this7 will be the year get that we really get8 that done.9 And this database that I've10 been, you know, really talking about, you11 know, that's a start, because in the12 past, we haven't measured what we've been13 doing, and this database will all us to14 do so.15
All right.16 You know, the reason I -- one of the17 reasons that I mention that is that18 recently, I guess, at the end of last19 year, there was a request for us to20 support a stimulus grant that would allow21 broader access to Internet services for22 individuals.23 And they selected a number of24 organizations, nonprofits and locations25 189 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 throughout the City where individuals can2 go and get online with the computers that3 are going to be placed in those4 locations.5 And I thought that, you know,6 not only what you're taking about but a7 lot of the services that would be offered8 and one -- we were actually trying to do9 a pilot program with Al Franks, but then10 he up and resigned -- up at 22nd and11 Cecil B. Moore, the Cecil B. Moore12 Recreation Center.13
I'm sorry,15 not the recreation center, at the16 library, because I think that our ability17 to get that information out there can be18 maximized by online --19
Well, that would20 be something that we would be willing to21 support --22
-- and, you know,24 submit our own resources into making that25 190 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 happen.2
Yeah,3 'cause we have a number of locations4 where, fortunately -- we're from the same5 neighborhood.6
30th and8 Dauphin, you probably know Kevin Upshore.9 He took a -- it used to be his mother's10 bar, you know, and then he took this11 building.12 And I walked in there last13 week, and they had, like, 30 children in14 there with computers.15
And, you17 know, I got to tell you, they weren't18 necessarily accessing the type of19 information that you provide at that20 time.21
But if we23 had the capability of having direct feed24 into those locations right in the heart25 191 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 of those areas --2
And, you know,6 through these, you know, partnerships,7 you know, we won't just have to have, you8 know, twelve MOCS, you know, offices.9
You know, every11 community organization in the community,12 you know, can be a MOCS office, you know,13 through appropriate partnerships.14
What is18 your current interaction, speaking of19 that, with the NACs, Neighborhood Action20 Centers, or NSAs?21
Do you all24 have an online presence, so can you go to25 192 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 the Strawberry Mansion NAC and say,2 "Lenore, I want to get online on the3 computers that you have in here and pull4 up all the information that" --5
But, yeah, we9 do -- we have a great relationship with10 the NACs all over the City. We work very11 closely with them, you know, especially12 in sharing information, information13 coming from them, but also information14 coming from us.15 And coming this year, what I16 would like to do, particularly with the17 NACs and the smaller community groups is,18 you know, to assist them in, you know,19 funding opportunities and things of that20 sort.21
I mean I --22 I'm kind of focusing on online services.23
Do you have25 193 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 that interaction currently?2
If somebody5 goes to the NAC office at West Poplar and6 says, "I need to find out all of the7 information that is offered by the8 Mayor's Office of Community Services,"9 and then go on their terminal and pull10 all of that up, can we do that?11
We can't do it --12 we can't do it -- well, we have not been13 doing that. I won't say that can't do14 it; we have not been doing it.15 I see my IT guy right here16 shaking his head. So he knows it's a17 good idea.18 Can we do it?19
Yes. The20 information is available. You just can't21 do it --22
Marc Spearman,25 194 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Director of Programs and Information2 Technology.3 They can access the services4 that are available to us. They can't do5 online applications.6 But we are partnering with the7 State, through a program called "My8 Compass," which will allow people to sign9 up for entitlements themselves. They10 would have to go online, they would click11 in, select the site, and they can fill12 out an application and see what was13 available to them.14
Okay.15 Yeah, that would be very helpful, 'cause16 I know the days when we had twelve MOCSs17 is not going to come back maybe in the18 foreseeable future or maybe never, but if19 we had the ability to --20
(Not24 completely audible; off-mic.) There's25 195 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 two Marc Spearmans.2
Yeah, but I11 thought -- I will always -- okay, thank12 you.13 Thank you, Madam President.14
That's not15 the Marc Spearman that we all know, you16 know.17 So in terms of timeline, now18 that we're getting this out here in a19 somewhat public way, in terms of20 timeline -- and I know that all of these21 hearings are monitored by the22 Administration.23 What's the timeline as it24 relates to you being in a position where25 196 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 you will have the capabilities that we2 just spoke of? From your best-case --3
Presently, the4 website is up that lists the services5 that MOCS provides. That's already up6 and running.7
It probably is a9 little static now. But in terms of10 adding links like My Compass and links of11 that sort, I'm sure it could be done in a12 matter of weeks.13
Now, the thing17 is, it would go to -- once someone goes18 through or creates the relationship and19 folks know to go to the Strawberry20 Mansion NAC or the United Communities21 around the City to get that, that I22 couldn't tell you -- there are23 partnerships that we still have to24 solidify to make that happen.25 197 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Right.2 Yeah, I mean I think we, as Council3 people, should play a role in that also.4 I mean, we have our own networks, and5 it's important that we get this6 information out.7 Because, you know, coming and8 living in a community that has those9 challenges, I mean I just think that a10 lot of people just don't know that the11 information is available.12 And, you know, we send out what13 we get from you to the block captains and14 committee people, but you never know how15 much of that they share with the general16 population.17 So, at least from my18 perspective, I think that, you know, we19 will be willing to work with you on that20 once we get that capability to get it out21 there in a very aggressive way.22 All right, okay. Thank you.23
Thank you,24 Councilman.25 198 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Thank you,2 Madam President.3 COUNCIL PRESIDENT VERNA:4 You're welcome.5 The Chair recognizes Councilman6 Jones.7
The only8 thing I would add as a comment is, I9 think that there's enough unanswered10 questions to allow the agency to come11 back, possibly before the end of the12 budget process, with that information so13 that we don't wait a whole fiscal year to14 get the information like we tend to do.15 Their mission is way to16 important for that. To alleviate poverty17 in the City of Philadelphia any way that18 we can get that information before the19 end of the budget, we'd like to have them20 maybe come back and be able to present --21
Thank you.24 Thank you, Madam President.25 199 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 COUNCIL PRESIDENT VERNA:2 You're welcome.3 I would just, like, to have the4 record to be very specific. Actually, in5 your Operating Budget, you are, in6 fact -- if I could find it. You are7 taking monies from Class 200 and you're8 adding them to Class 100?9
This is Rebecca14 Rhynhart, Budget Director.15 It probably has to do with what16 the grants are funding, but they probably17 need to get an answer back to you.18
All19 right. And there will be -- there are20 seven vacancies?21
All2 right. I wanted the record to reflect3 that. Thank you.4 Are there any other questions5 from members of the committee?6 (No further questions.)7
Is8 there any indication of when we will hear9 what the federal government is doing as10 far as these various cuts?11
No, not really.12 You know, I was just out in Harrisburg13 last week, and even the State don't know,14 you know, what the feds are going to do15 or how this is all going to end up at16 this point.17
We will keep18 updating you, though, as we find out19 information.20
So21 till then, we'll just have to work in the22 dark.23
Unfortunately,24 we can't...25 201 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Thank5 you very much.6 MR. McPHERSON: The next7 department is the Mayor's Office of8 Housing and Community Development.9 (Witnesses come forward.)10
12 MS. 15 MS. McCOLLOCH: Good afternoon,16 President Verna and members of City17 Council. 23 The proposed Operating Budget24 under the Community Development Fund -25 202 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Grants Revenue Fund, Housing Trust Fund,2 and General Fund will also be presented3 in the spring to the Finance Committee at4 its hearing on the Consolidated Plan5 Ordinance. 11 Ideally, the Consolidated Plan12 hearing should occur prior to the13 consideration of the Operating Budget by14 City Council. 17 Should the results of the18 Consolidated Plan hearing require19 adjustments to OHCD's Operating Budget,20 as adopted by City Council, there will21 still be time subsequent to the adoption22 of the Consolidated Plan to amend the23 Operating Budget. The complete Fiscal24 Year 2012 proposed budget will be25 203 3/28/11 COMM. The enclosed budget projects a4 percent reduction in community5 development funding for FY '12. R. 11 This bill is currently being12 negotiated and, if finalized, the13 appropriate reductions will need to be14 reflected in the Year 37 Consolidated15 Plan. 20 HUD's mandated goals are the21 creation of suitable living environments,22 the provision of decent and affordable23 housing, and the creation of economic24 opportunities. In FY '12, OHCD will25 204 3/28/11 COMM. 2 million in total development12 costs. 14 These housing developments15 included 106 homeownership units, 36716 rental units, and 160 special-needs17 units. 8 million in Community24 Development Block Grant funds to the25 205 3/28/11 COMM. 4 The Office of Housing and5 Community Development is committed to6 supporting the Administration's goal of7 25 percent minority-, woman-, disabled-8 owned businesses participating in City9 contracting. 23 It should be noted that the24 General Fund supports only approximately25 206 3/28/11 COMM. 25 207 3/28/11 COMM. 9 The decrease in budget Class10 200 is primarily the result of the11 reduction in funding from the American12 Recovery & Reinvestment Act. 24 OHCD will return to City25 208 3/28/11 COMM. 6
Thank7 you. As usual, you do a great job.8 MS. McCOLLOCH: Thank you.9
You10 mention in your testimony that House Bill11 H.R. 1 is proposing a 66 percent cut in12 CDBG funding for FY '12. Have you13 determined what you would propose to cut14 if the bill passes?15 MS. McCOLLOCH: We haven't16 determined that yet, in part, because17 we're hoping that we don't have a 6618 percent cut in our funding.19 Our hope certainly is that, as20 the federal budget is negotiated --21 there's currently a continuing resolution22 in place now, as you know, through next23 week.24 MR. McPHERSON: It expires25 209 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 April 8th.2 MS. McCOLLOCH: Correct, it3 expires -- the current continuing4 resolution will expire April 8th.5
April6 8th.7 MS. McCOLLOCH: And that the8 House and the Senate are negotiating a9 budget back and forth. At some point,10 they'll pass a budget, and then we'll11 know what our reduction will be, and12 that's when we'll have to bring the13 Consolidated Plan before you with14 whatever those reductions are, and we'll15 have to submit a proposed budget.16
Thank17 you.18 The Chair recognizes Councilman19 Clarke.20
Thank you,21 Madam President.22 I tried to hit my button before23 Councilman Goode, and I beat him this24 time.25 210 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 (Laughter.)2
The first6 question I was going to actually ask you7 is about the continuing resolution. I8 guess at what point -- the federal fiscal9 year is what, July 1?10 MS. McCOLLOCH: No, the federal11 fiscal year is October 1 to September12 30th.13
October 1,14 so the CR could conceivably --15 MS. McCOLLOCH: This is -- the16 continuing resolution is the federal17 budget that started October 1st.18
Right.19 MS. McCOLLOCH: Our comp plan20 budget that we bring to this council is21 our --22 (Indiscernible; parties talking23 over each other.)24
So25 211 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 conceivably, if the continuing2 resolution, or some resolution, as it3 relates to this whole ongoing issue of4 funding this budget piecemeal, if there's5 an agreement reached that we'll have a6 significant reduction in the continuing7 resolution or a budget deal, we could8 conceivably seek dramatic cuts in this9 current fiscal year -- or how does that10 work?11 MS. McCOLLOCH: It won't be in12 the current -- it will be in our fiscal13 year that starts July 1st.14
Yes.15 I'm -- right.16 MS. McCOLLOCH: In our fiscal17 year that starts July 1st.18
Right.19 Wait a minute. Let me understand this.20 So if there is a continuing21 resolution -- 'cause I think the deadline22 is the next of days?23 MS. McCOLLOCH: It's now been24 continued throughout the --25 212 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
And that2 continuing resolution says there's going3 to be a reduction in the current federal4 fiscal year --5 MS. McCOLLOCH: Right.6
-- that7 won't impact us in our fiscal year --8 MS. McCOLLOCH: Right.9
-- because10 of the time --11 MS. McCOLLOCH: It will not12 impact us until July the 1st.13
And then we17 have a problem, okay.18 MS. McCOLLOCH: Yes.19
So I was20 wondering if we had to give some money21 back.22 MS. McCOLLOCH: No.23
So we're24 okay with that.25 213 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Okay. I just want to ask you a2 question on the record, and I talked to3 you in the hallway about this, and it's4 not administrative-related, but it is a5 question I need to get a better handle on6 terms of the NTI budget process, and you7 signed the letter, so I got to ask you8 the question.9 MS. McCOLLOCH: That's fine.10
This whole11 issue about appraisals, I continue to12 have some concerns about the appraisals13 because -- in particularly as it relates14 to parts of district that I represent15 when I look at the comps that have been16 set as it relates to acquisitions or17 sales in these varies areas, particularly18 in the North Philadelphia area, that we,19 the City of Philadelphia, are always20 driving the numbers higher and higher.21 And on the private side -- and22 I spoke to you but this one, this lot at23 28th and Oakdale Street, which is just24 below Lehigh, where there's a vacant lot.25 214 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 MS. McCOLLOCH: Mm-hmm.2
It's been3 vacant for thirty years or more. And4 therefore, for whatever reason, we're5 saying that the appraised value of that6 lot is $16,000 and --7 MS. McCOLLOCH: The appraised8 value that the Redevelopment Authority --9 the budget in question is to acquire one10 vacant lot in the 2800 lot of Oakdale11 Street. The appraised value that was12 presented by the Redevelopment Authority13 was $16,000 for one lot.14 It was based on appraisals that15 the Redevelopment Authority secured. I16 don't have any independent information17 about it other than what I was given by18 the RDA. I can go back and check with19 them again, but I'm just saying that I20 don't have any independent information.21
All right,22 'cause it seems like all the appraisals23 that we, the City, get, particularly the24 Redevelopment Authority, are always on25 215 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 the high side.2 And I don't know of anybody3 that would pay $16,000 for a vacant lot4 at 20th and Oakdale. And throughout the5 district, all these appraisals, they just6 come in.7 MS. McCOLLOCH: Right. I can8 --9
My concern10 is that -- I mean, I understand that we11 have to pay money in the event that12 there's an appeal for the compensation,13 but this is not that. And is it required14 that the Redevelopment Authority get the15 appraisals?16 MS. McCOLLOCH: Yes, 'cause the17 Redevelopment Authority is doing -- in18 this case, it's an urban renewal taking;19 the Redevelopment Authority is acquiring20 the property.21
All right.22 It just sounds pretty ridiculous.23 MS. McCOLLOCH: I mean, I can24 go back and ask them -- I can get the25 216 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 detailed information for you. I just2 don't know it, sitting here today.3
All right.4 In addition to which on advertising5 costs, are you operating under the same6 guidelines as we, City Council, or the7 Administration are operating on in terms8 of who we have to advertise or where we9 have to advertise?10 MS. McCOLLOCH: Well, the11 requirements for advertising are part of12 the law surrounding how you can take13 properties. You have to advertise in --14 for so many days and so forth.15 And so, the advertising16 costs -- and you have to advertise in17 newspapers of general circulation. So18 the advertising costs are high.19 And what I -- and what the20 Councilman and I talked about earlier21 today is that those costs are spread out22 for however many properties are in the23 particular ad. Like the ad will be about24 the same cost if it's one property or25 217 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 twenty priorities. And so, if it's2 twenty properties, the cost of the ad3 gets spread out over those twenty4 properties.5
Right.6 MS. McCOLLOCH: And what7 happens in some of these budgets is that8 it shows the cost as if it's a single9 property, which, in the particular case10 we were discussing, it is only one11 property, but that property will be12 included in an ad with multiple13 properties; and so, the cost is spread14 out.15
So let me16 understand. The requirement in terms of17 criteria for the advertisement is18 established by the State?19 MS. McCOLLOCH: Yes, 'cause20 it's State law.21
The State22 authorizes the acquisition. So if we23 change -- if we, the City, change our24 advertising requirements, it wouldn't25 218 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 impact this.2 MS. McCOLLOCH: Correct.3
It would4 still be the same.5 MS. McCOLLOCH: Correct.6
All right.7 In terms of the ability to negotiate a8 fee for advertisement done, through OH,9 or is it done through Procurement?10 MS. McCOLLOCH: It's --11
'Cause I12 would think that if there's -- if we say,13 for instance, we will have several14 requirements for advertisement during the15 course of the year for OHCD-related --16 and I know this is probably a little too17 detailed, it's not at your level.18 But if we had negotiated a fee19 with the entities that we're required to20 advertise with as it relates to the21 number of properties or the time frame22 associated with that as opposed to every23 time we come up with an acquisition24 package, boom, we're hit with this25 219 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 advertising fee?2 MS. McCOLLOCH: I understand3 what you're saying, Councilman. I don't4 know whether that negotiation has taken5 place. I can find out.6
Can you7 find out?8 MS. McCOLLOCH: Right. I don't9 know.10
This whole11 advertising thing just always amazed me12 where, you know, the cost of this13 advertising is $20,000 --14 MS. McCOLLOCH: The cost of the15 advertising is higher than the cost of16 the property. I understand that.17
Yeah.18 It's, like, pretty bizarre.19 MS. McCOLLOCH: Right. I20 understand your concern.21
Yeah.22 Okay, all right. I'm good. Thank you.23 I'm good. See you later on in the year.24
The25 220 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Chair recognizes Councilman Goode.2
Thank you,3 Madam President.4 Good afternoon, Miss McColloch.5 How are you?6 MS. McCOLLOCH: Good afternoon.7
Your Class8 200 allocation is technically over9 $200 million. What's the largest10 contract that you will award in Fiscal11 Year '12?12 MS. McCOLLOCH: It would be13 with the Redevelopment Authority.14 COUNCILMAN GOODE:15 Nongovernmental.16 MS. McCOLLOCH: I beg your17 pardon?18
The largest19 nongovernmental contract.20 MS. McCOLLOCH: That OHCD21 awards?22
Mm-hmm.23 MS. McCOLLOCH: We have small24 -- we have fairly small contracts through25 221 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 OHCD. We have one with Tiger2 Productions, and I can give you the3 amount on that.4
The question5 is: What is the largest?6 MS. McCOLLOCH: Yeah.7
I'm talking11 about for-profit contracts.12 MS. McCOLLOCH: Oh. The13 largest contract with a nongovernment14 entity that we award is with Tiger15 Productions, which is a for-profit16 contractor, but --17
Okay. So18 what's your largest nonprofit?19 MS. McCOLLOCH: The only ones20 we award are the Redevelopment Authority21 and PHDC.22
And then23 they make awards --24 MS. McCOLLOCH: Correct.25 222 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
-- to2 community groups beyond that.3 MS. McCOLLOCH: I beg your4 pardon, I beg your pardon.5 We award -- I'm sorry. We6 award a series of contracts with housing7 counseling agencies and NACs. I'm sorry.8
Okay. So12 what's the largest contract?13 MS. McCOLLOCH: I'm sorry.14
The largest15 nongovernmental contract that you awarded16 in Fiscal '12?17 MS. McCOLLOCH: I don't know18 off the top of my head, but I can --19
Okay. What20 type of contract?21 MS. McCOLLOCH: It would be a22 housing counseling contract.23
A housing24 counseling contract.25 223 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 MS. McCOLLOCH: Yes.2
I don't know3 whether we need a name for the purpose of4 the rest of the questions. So you know5 which firms hold those contracts for this6 fiscal year?7 MS. McCOLLOCH: Yes. I just8 don't have --9
And are they10 renewable contracts?11 MS. McCOLLOCH: They are12 renewable, the housing counseling13 contracts. We put out a request for14 proposals every three years, and we're in15 the middle of that period.16
The next17 question was: How many years have these18 firms held the contract?19 MS. McCOLLOCH: It -- this is20 the second -- we're in the second year of21 that, so we won't do an RFP this year.22
Okay.23 Briefly describe the contract24 requirements.25 224 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 MS. McCOLLOCH: For the housing2 counseling contracts?3
Mm-hmm.4 MS. McCOLLOCH: The agencies5 are required to provide housing6 counseling services to homeowners, people7 who want to become first-time homeowners8 and people who are facing foreclosure9 issues and also some tenant counseling.10
And what's11 the average size of those contracts?12 MS. McCOLLOCH: The average13 size. Hold on.14 (Ms. McColloch confers with15 staff.)16 I'm being told that the average17 size is approximately 150,000.18
Okay. And19 you mentioned the other contracts that20 you award would be NAC contracts?21 MS. McCOLLOCH: NAC contracts.22
And the23 average size of those contracts?24 MS. McCOLLOCH: About 75,000 or25 225 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 80,000 dollars.2
Okay. And3 all of those are providing services, so4 these are all personnel costs.5 MS. McCOLLOCH: Yes.6
So there are7 no subcontracting opportunities for for-8 profit entities.9 MS. McCOLLOCH: No. The only10 possibilities would perhaps be some11 supplies and printing contracts.12
Okay. On13 the housing counseling contracts, will14 those firms be required to be in15 compliance with the City's living-wage-16 and-benefits standard for Fiscal Year17 '12.18 MS. McCOLLOCH: I don't know19 the answer to that, Councilman. Um...20
Heretofore21 the standard did not necessarily apply to22 them until we changed the Charter in the23 fall, which allowed the standard to apply24 to noncompetitively bid and professional25 226 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 services contracts.2 And under the ordinance, those3 nonprofits with contracts of more than4 $100,000 must comply unless they apply5 for a waiver or are given one.6 MS. McCOLLOCH: Okay. No one7 has applied for a waiver at this time.8
Okay.9 MS. McCOLLOCH: So as of right10 now, they would all be in compliance.11
Okay. So12 I'm just going to ask for the record,13 will you submit to the Chair a statement14 that says that all of those agencies will15 be required to be in compliance with the16 City's living-wage-and-benefits standard17 unless they receive a waiver.18 MS. McCOLLOCH: Yes.19
Just lastly,20 who is directly responsible for21 monitoring living-wage-and-benefits22 standards for your department?23 MS. McCOLLOCH: We have a24 compliance officer, a woman named Lynn25 227 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Newsome.2
Okay. Thank3 you.4 Thank you, Madam Chair.5 COUNCIL PRESIDENT VERNA:6 You're welcome.7 The Chair recognizes Councilman8 Jones.9
Thank you,10 Madam President.11 Good afternoon.12 MS. McCOLLOCH: Good afternoon.13
I'm going to14 be very brief. I'm going to point out15 several things.16 The first thing is another one17 of those Freshman 15 ideas that, you18 know, was put forth, Madam President,19 under your watch.20 This is the last paper copy of21 the newsletter put out by the OHCD, and22 from now on, it will be an electronic23 copy. The OHCD Bulletin will be an24 electronic copy, and we're proud of that.25 228 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 The reduction of paper is one of the2 goals of saving in City government.3 And then the second thing that4 I'd like to point out is on of5 your newsletter, which talks about two6 mixed-use projects that were done. One7 was Osan Village, which is a mixed-use8 property that was developed, I believe,9 in your district, Councilwoman Verna.10 And then one in Councilwoman Jannie11 Blackwell's district, which was the12 Fattah Homes, both with residents above13 and storefronts below.14 And we are happy that that15 happened because, you know, this Council16 put forth a bill that requires 5 percent17 of all CDBG dollars to be used for18 projects like this, that bring19 storefronts back to inner-city areas.20 So I just want to say thank you21 for doing two progressive things, which22 is the reduction of paper, and then the23 inclusion of the mixed-use developments.24 And you can just nod and say,25 229 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 "You're welcome."2 MS. McCOLLOCH: You're welcome,3 Councilman. You're welcome.4
That's all I5 want. All right.6 Thank you, Madam President.7
Thank8 you.9 Are there any other questions10 or comments from members of the11 committee?12 (No further questions.)13
Thank14 you very much.15 MS. McCOLLOCH: See you in May.16 MR. McPHERSON: Our next office17 is the Mayor's Office of Labor Relations.18 (Witness comes forward.)19
Good afternoon.21 COUNCIL PRESIDENT VERNA:22 Please identify yourself for the record23 and proceed with your testimony.24
Good afternoon,25 230 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 President Verna and members of City2 Council. My name is Joseph Tolan, and I3 am the director of the Office of Labor4 Relations. 19 Our objectives include20 facilitating dispute resolution and labor21 management cooperation, educating22 managers and supervisors about labor law23 and the contracts, supporting24 collective-bargaining efforts by25 231 3/28/11 COMM. 7 In regard to collective-8 bargaining, the collective-bargaining9 agreements with all four major municipal10 unions expired on June 30, 2009. 15 An award was issued in16 connection with the Act 111 interest17 arbitration concerning the City and FOP18 in December of 2009. And as a part of19 that award, the parties met to design a20 new pension plan. 23 An award was issued in24 connection with the Firefighters25 232 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 arbitration in October of 2010. 4 The only provision that has not5 been challenged is the implementation of6 a new pension plan. 22 The course covers the law and the23 contracts and provides supervisors with24 strategies for administering the labor25 233 3/28/11 COMM. 2 In regard to contract3 administration, the Office of Labor4 Relations works with managers of City5 departments to implement change in the6 delivery of services. 17 In regards to dispute18 resolution, the OLR is responsible for19 handling District Council 33 and District20 Council 47 grievances that departments21 have not resolved. Combined, AFSCME22 submitted to our office a total of 9323 grievances in Calendar 2010. During that24 same period, we disposed of 6825 234 3/28/11 COMM. 16 The Office of Labor Relations17 is requesting $552,416 in the FY '1218 General Fund budget, which represents an19 increase of $50,000 from our FY '1120 estimated obligations. 23 Overall, we're requesting:24 $540,979 in Class 100 to25 235 3/28/11 COMM. 8 The Mayor's Office of Labor9 Relations is committed to supporting the10 Administration's goal of 25 percent11 minority-, women-, disabled-owned12 business participation in City13 contracting. 25 236 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Thank2 you.3 I understand that the FOP4 arbitration award allows the City to5 furlough police officers for up to thirty6 days a year; is that correct?7
Are10 there any restrictions as to when an11 officer can be furloughed?12
The14 issue of contracting out continues to be15 of concern with the City unions. Does16 the Administration have a formalized17 procedure that it must follow when18 considering these opportunities in order19 to ensure that the City's unions are20 included in the process?21
The collective-22 bargaining agreements with the two AFSCME23 District Councils address the issue of24 contracting out. There is an opportunity25 237 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 for the City to contract out work2 provided that it does not lay off3 employees who are displaced as a result4 of the contracting out.5 There is no formal process at6 this time that's in place to be followed7 in terms of costing out a specific8 initiative.9
Thank10 you.11 The Chair recognizes Councilman12 Greenlee.13
Thank14 you, Madam President.15 Good afternoon, Mr. Tolan.16
I know18 you'll be back with us before you retire,19 but thanks for all of your service to the20 City.21
This is23 kind of a follow-up to the President's24 last question. I remember there was a --25 238 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 and I think I'm calling it the right2 thing. It's the Redesigning Government3 Initiative?4
Didn't6 that kind of cover what we're talking7 about, where there was sort of -- either8 a formal or an informal sitdown with the9 unions, and they kind of discussed10 whether, you know, the jobs could stay11 in-house or not? From what I understand,12 it worked for a while so --13
Well, actually, the14 Redesigning Government Initiative was a15 formalized program for certain types of16 labor-management cooperation.17
It had a specific19 set of rules about when it would apply20 and when it wouldn't apply. It could go21 beyond the issue of contracting out.22
It could go to24 anything that could produce efficiencies25 239 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 and --2
-- economies for4 the government.5 Even though that existed for a6 number of years -- and under status quo,7 it's a little bit difficult to determine8 what its status would be today while9 we're still negotiating a successor10 agreement.11 Certainly, if the union or a12 department identifies an area that they13 want to work together, they don't14 actually have to call it the RGI.15
They can always sit17 down and meet and talk about things. And18 most departments are open to that in my19 experience, willing to sit down and hear20 what the union has to say and to try to21 explore it.22
I23 understand. I guess why did it sort of24 go away as a formal procedure, though? I25 240 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 mean, how did that -- 'cause, obviously,2 the contract's still going on with 33 and3 47.4
Even when it was,5 you know, arguably new and in place, it6 didn't apply to a lot of different types7 of initiatives that called for labor8 management cooperation.9 It was something that was a10 very spell form of cooperation, where11 there was an absolute sharing of12 authority between the union and the labor13 organization, so it had to be a special14 type of project to fit. And there were15 not always that many projects that did16 fit. In fact, in District Council 33, it17 was much more common, if we had a18 cooperative project, for it not to come19 under that umbrella.20 So I would say that there's21 still opportunities, but as always, both22 sides had to look closely at what the23 project was to decide what the rules24 should be for it. But, again, I think25 241 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 that there are a lot of opportunities for2 departments to work with the unions on3 areas to try to improve economies.4 It's a little bit difficult in5 this environment, where RGI was really6 designed to enhance job security in many7 ways, and because of the budget8 difficulties that many departments faced9 in the last couple of years where they've10 been reducing size, it's very difficult11 to talk about economies and efficiencies12 there because it -- I think it's believed13 that it would lead only to more layoffs14 or more reduction in size of the15 departments.16
So just17 so I'm clear, not to belabor the point --18 no pun intended. So it still exists but19 only in certain circumstances?20
If the parties had25 242 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 a project that they agreed they could2 make it work but --3
Mm-hmm.8 So this administration really hasn't9 agreed to it as much; is that a fair10 statement?11
Well, I think that12 what's happened is that since we have13 been in the middle of this latest round14 of negotiations with job reductions, it's15 something that it really was designed to16 be able to say that nobody would lose a17 job as a result of the efficiencies. And18 when you're looking at all of the19 cutbacks we have, it's something that's20 very difficult to put into play here.21
Okay.22 Now, as far as collective-bargaining, I23 don't expect you to get into any details24 here, but has the Administration and the25 243 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Unions 33 and 47, the leadership of those2 unions, when's the last time they3 actually sat down? Are there any4 discussions going on? Again, without5 getting into any detail.6
Well, we are7 scheduled to meet with District Council8 47 on Wednesday of this week.9
On10 Wednesday, okay. Before that, had there11 been --12
Not for sometime,13 not at a large formal session. I mean, I14 talk to the leadership of the union15 probably on a weekly basis about these16 issues. There's decisions kind of17 jointly about when does it make sense to18 get back together in this forum.19
So you're20 saying that the two sides really didn't21 agree to sit down; is that what you're22 kind of saying?23
We didn't feel that24 it would be productive to get into those25 244 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 sessions.2
You3 didn't feel -- okay. All right, 'cause4 it just seems like you can't get anything5 done unless you talk, right? I mean,6 that kind of over-simplifies it, but --7
But in that kind of11 a setting, we have not done that for a12 while. We did recently with District13 Council 33, and we are doing that this14 week with District Council 47.15
Okay,16 last question. When you say "a while,"17 how long has it been that there was a18 formal --19
Several22 month? Okay, all right.23 Thank you, Madam President.24 COUNCIL PRESIDENT VERNA:25 245 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 You're welcome.2 Thank you very much.3
You're welcome.4 MR. McPHERSON: The Youth5 Commission.6 (Witnesses come forward.)7
Good afternoon.10 COUNCIL PRESIDENT VERNA:11 Please identify yourself for the record12 and proceed with your testimony.13
Good afternoon,14 President Verna and members of City15 Council. My name is Max Weiss, and I'm16 the chairman of the Philadelphia Youth17 Commission. And I'm joined by Jordan18 Harris, our executive director.19 Thank you for giving us the20 opportunity to speak about the proposed21 budget for the Philadelphia Youth22 Commission.23 This past year, the Youth24 Commission aimed to increase its role in25 246 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 the legislative arena while working to2 improve its visibility and internal3 functions. I'm happy to say that we have4 made drastic improvements in each of5 these areas.6 Over the past year, the Youth7 Commission has testified in front of City8 Council four separate times. On three9 occasions, recommendations that we10 presented either at those hearings or in11 meetings with Council and/or mayoral12 staff were added to into the legislation.13 Besides testifying at Council14 hearings, the Commission has partnerships15 with other local youth-led organizations16 in order to advocate for non-violent17 schools. Our involvement in the18 legislative process has increased19 dramatically from the last year.20 Clearly, the Commission is21 successfully fulfilling its Charter-22 mandated duties by participating in23 public hearings and other meetings with24 public officials. In addition to being25 247 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 heavily involved in local legislative2 issues, the Commission has worked to3 expand its visibility.4 This entailed creating a5 monthly radio show where we interviewed6 guests such as Councilman Green, Senator7 Casey, and State Rep Tony Payton about8 issues that are currently affecting the9 youth of Philadelphia. The Commission10 also has been submitting regular updates11 to members of Council.12 In addition, this past winter,13 the Commission partnered with Councilman14 Jones, the Department of Public Safety,15 and other organizations to put together a16 forum to inform youth of their rights and17 responsibilities when interacting with18 the police.19 A huge reason for the20 Commission's success over the past year21 was the newly-found stability of the22 body. This stability can be credited to23 the commitment of the commissioners and24 also to the hard work of our executive25 248 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 director, Jordan Harris. With his help,2 we have televised monthly public3 meetings, and we have met over twelve4 times over the past year.5 In addition to public meetings,6 the Commission has held several committee7 meetings to discuss specific policy8 ideas. And for the first time in its9 short history, the Commission has also10 produced an annual report, which11 highlights all of our accomplishments.12 Finally, in order to ensure the13 future success of the Commission, we are14 working on a three-year strategic plan15 with funding from the William Penn16 Foundation. The future of the Youth17 Commission looks very bright. In the18 next fiscal year, the Commission hopes19 the build on its current success. We20 will continue to reach out to youth and21 work diligently to adequately represent22 their voice in local government.23 I now would like to introduce24 Jordan Harris, our executive director,25 249 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 who will provide details on our budget.2 Thank you.3
10 Just shy of a year ago, I11 embarked on this journey as executive12 director for the Youth Commission. 21 As I reflect upon last year, a22 few highlights emerge. We have23 instituted a standard monthly meeting24 date for the Youth Commission on the25 250 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 second Thursday of every month. These2 meetings are open to the public, and we3 encourage youth from across the City to4 come and join in the dialogue. 13 Commissioners and youth in attendance are14 able to pose questions to policy-makers15 and stakeholders about these pressing16 issues17 The Youth Commission meetings18 have grown to become an opportunity for19 youth to engage in the policy process20 while learning about various issues. The21 monthly Youth Commission meetings have22 helped stabilize the Commission and raise23 its profile across the City24 With the support of the William25 251 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Penn Foundation, the Commission was able2 to fund the completion of a three-year3 strategic plan. 7 To keep in regular contact with8 our constituency, we have formed a9 partnership with Instarter, Incorporated,10 which provides us with the capability of11 sending mass text messages and message12 polls. 19 The legislation that created20 the Youth Commission calls for the21 Commission to advise and comment to22 Council, the Mayor, agencies, and23 departments of the City on proposed24 ordinances, other legislative matters and25 252 3/28/11 COMM. 3 This year, I am proud to say4 that the Youth Commission has done just5 that. The number of times the Commission6 has commented or advised on legislative7 matters or policies which are of concern8 of youth of our city has quadrupled9 compared to last fiscal year. 14 Finally, this year, we focused15 on creating informed and engaged youth16 throughout the City. To achieve this17 goal, the Commission created four18 subcommittees. 22 Additionally, the Commission23 hosted several outreach events that24 offered youth the opportunity to engage25 253 3/28/11 COMM. 6 Onto the budget. 16 Only in its second full year17 with staff, the Youth Commission is18 establishing itself as a meaningful and19 vital part of City government. 23 The Commission looks to24 continue providing a voice and an avenue25 254 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 for engagement of youth in this city. I2 look forward to the challenges of next3 fiscal year but also look to the promise4 that can found in the eye of every young5 Philadelphian. 9 I now close my testimony and10 would like to thank you for this11 opportunity. 15
Thank you,21 Madam Chair.22 I want to thank both Jordan and23 Max for your testimony. I want to24 commend you both for the work of the25 255 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Commission this year.2 Max is my appointee and -- but3 volunteered for the Commission before he4 was appointed as the chair and has put in5 place a committee structure and the6 Commission with the hiring of Jordan and7 other things is really starting to8 fulfill the Charter-mandated roles, and9 you are advising us on different pieces10 of legislation. For the first time,11 you've prepared an annual report.12 And so, I just want to thank13 you for the work you've done this year14 and look forward to more of the same.15 I have some questions that I16 ask every department. So there was no17 detail about the $17,337 that you're18 spending on professional services. You19 don't have to answer it now, but if you20 could provide it to the Chair, unless you21 know it.22
Council Bill5 100634 passed last year, which was the6 tobacco and cigarette legislation, which7 raised the fine on vendors that sold8 tobacco products to minors.9 The Youth Commission actually10 worked very hard on that legislation with11 the Health Department and were happy to12 see the Mayor sign it into law in13 December of last year.14 As a part of that work, the15 Youth Commission has worked with the16 Health Department to secure a grant from17 the Health Department to actually do18 youth engagement work throughout the City19 around tobacco advocacy. So with that,20 the Youth Commission will be able to21 bring another staffperson in to work on22 that grant.23 And a part of that, the Youth24 Commission is dedicating $5,000 from our25 257 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 budget to work on that initiative as2 well. Part of that money will be used to3 do a youth summit around tobacco issues4 next year in the City.5 The Youth Commission is also6 involved in the Campaign for Nonviolent7 Schools. Last Tuesday, we released -- I8 should say this. The campaign is ten9 youth-led organizations that come10 together to talk about the major issue of11 violence in our schools. I'm sure12 everybody is reading the series that is13 going on in the Daily News right now14 about youth violence.15 So last November, we had a16 youth power summit that talked about17 youth violence, and it was hosted by the18 Campaign for Nonviolent Schools. We put19 some money up to do that. And in our20 budget for next year, we have dedicated21 $3,000 to work with the Campaign for22 Nonviolent Schools again this year.23 Every -- for most of our Youth24 Commission meetings, for most of our25 258 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 events, we do flyers, so we have $12002 for that.3
Great.4 If you could just submit the balance of5 the detail to the President, we'll take a6 look at it.7
That would9 be great.10 And also, were you asked for a11 1.5 and 3 percent budget-reduction12 scenario from the Finance Department?13
Okay. Well,15 they're forwarding that to us, so we'll16 take a look at that.17 Once again, thanks for a great18 year and thank you for your work.19 And Max is moving on to better20 things. He's going to Teach for America,21 and hopefully will get a Philadelphia22 school so you can do some more work here.23 Thank you very much.24
Thank3 you.4 The Chair recognizes Councilman5 Goode.6
Thank you,7 Madam President.8 Very briefly. You have $46,0009 and $43,000 this year in Class 200.10
The Youth14 Commission, we really don't do contracts15 per say.16
There's really no25 260 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 contract, per say. So we're doing $5,0002 for the tobacco, we're doing $3,000 for3 the Campaign for Nonviolent Schools.4 I guess you would say the money5 that we spent on producing flyers for all6 of the different events we do every year,7 but it's not a lump sum that we do just8 to, say, flyers, but it's ongoing.9
So there's10 nothing larger than $5,000 except for11 your printing expenses.12
And how do14 you handle do handle your printing15 expenses? Do you use the same contractor16 for printing service --17
Yes. We don't22 do -- like we don't get a printer.23 Now, the annual report, we did24 get a printer, and we used someone that25 261 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 one of the other departments used.2
Okay, thank6 you.7 Thank you, Madam President.8 COUNCIL PRESIDENT VERNA:9 You're welcome.10 Thank you both very much.11 PANEL MEMBERS: Thank you.12 MR. McPHERSON: The last13 department for today is the Office of Art14 and Culture.15 (Witnesses come forward.)16
If17 you'd like, you could abbreviate your18 testimony. We will give a copy of your19 testimony to the stenographer, and it20 will be transcribed in full.21
22 Good afternoon, President Verna23 and members of Council. 24 I am the Chief Cultural Officer and the25 262 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Director of the Office of Arts, Culture,2 and the Creative Economy. 10 Over this past year, we have11 actually occupied our new office and art12 gallery in June of 2010, and, for the13 first time, we're in one place. 5 million, 81 percent of the23 funding was distributed in the form of24 grants to the cultural community. And25 263 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 very few of the programs and initiatives2 operated out of the office are funded3 with General Fund dollars. 6 million to 200 Philadelphia cultural10 organizations. There's also a new11 program, the Youth Arts Enrichment12 Grants, which is another $100,000. 19 The African-American Museum in20 Philadelphia is also funded through our21 office. This year, it's celebrating its22 35th anniversary. They have an annual23 grant of roughly $230,000 that helps them24 to continue to serve the public and25 264 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 deliver high-quality programming. 22 We're also developing new tools23 to reach out to the public through blogs,24 partnerships, and social media. We are25 265 3/28/11 COMM. 4 With a $25,000 planning grant5 from the National Endowment for the Arts6 matched by funding from the William Penn7 Foundation, we have also partnered with8 the Reinvestment Fund and Social Impact9 of the Arts Project at Penn to create a10 creative assets mapping database. And11 this initiative is a comprehensive effort12 to identify and promote arts culture and13 creative assets in Philadelphia. 25 266 3/28/11 COMM. 17 Currently, on the fifth floor18 of City Hall, we have Build A Bridge, a19 community nonprofit providing assistance20 for families in transition. 24 And in May, the Village of Arts25 267 3/28/11 COMM. 20 Currently, there are 11 percent21 projects in various stages of22 development, including the Race Street23 connector, two projects at the24 Philadelphia International Airport, and25 268 3/28/11 COMM. 2 And I particularly want to talk3 about one of the recommendations of a4 2009 PennPraxis study that the office did5 on public art in Philadelphia that talked6 about the need for doing more temporary7 public art. 13 And there was a big story about14 that in the Philadelphia Inquirer today15 that we're very excited about. 24 We will also launch our new website,25 269 3/28/11 COMM. 4 We hope to continue the5 Creative Industry Grant Program. 19 One of the exciting pieces20 we're working on there is a reinstallment21 of an important piece by the Puerto Rican22 artist Raphael Ferrer, called "El Gran23 Teatro de la Luna" that has been in24 storage for a long time, and we hope to25 270 3/28/11 COMM. Okay. The FY '12 budget shows increases to5 Class 100 and Class 200 funds, which6 reflect really just a final and accurate7 consolidation of cultural staff within8 the office's budget. 20 Class 500 reflects two annual21 grants: a $1,840,000 allocation to the22 Philadelphia Cultural Fund, which23 regrants the funding to Philadelphia24 cultural organizations; and the $230,000,25 271 3/28/11 COMM. 5 The office is committed to supporting the6 Administration's goal of 25 percent7 minority-, women-, and disabled-owned8 businesses in City contracting. 11 For FY '11, no RFPs were sent12 out from the office. 24 And should any Councilmember25 272 3/28/11 COMM. 4
Thank5 you very much.6 On of your budget7 detail, you were requesting $390,800 for8 PIDC for administrative support. What9 administrative support? And I don't10 understand what PIDC provides.11
Essentially, it12 represents several task force positions.13 So when the office was consolidated,14 several of my staff were being paid15 through PIDC. And so, that's really what16 it represents, is paying PIDC for salary17 and benefits for certain staff people who18 serve on my staff.19
That20 confuses me. First of all, what were21 their titles? How much were they being22 paid? And why would they just be23 transferred over to your department?24
Well, it's really25 273 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 a question for budget. When my2 department was created, there was no3 staff and no budget, but there were a4 number of staff people running arts-5 related programs.6 So three of the staff were7 working through Public Property, managing8 the Public Art and Art in City Hall9 Program, and one staff person was with10 Commerce.11 And so, those staff positions12 were moved from the agencies that they13 were in, into my office as a way of14 creating staffing capacity without15 increasing expense to the City or adding16 new lines. And they were already working17 on arts-related programs.18
Are19 they City employees? If they're coming20 from PIDC, I'm sure they're Civil21 Service-exempt. Why don't we make them22 City employees?23
Hi. Rebecca24 Rhynhart, Budget Director.25 274 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 I think this is the way it's2 been done historically. So there's no --3 that is something we could look at. I4 mean, I think, historically, there's a5 payment that's gone from the City to PIDC6 to cover the staff. So this is a7 continuation of that, but that is8 something that we could look at.9
I'm10 not going to say what I'm thinking.11 The Chair recognizes Councilman12 Goode.13
Thank you,14 Madam President.15 Good afternoon, Mr. Steuer.16 Per the Council President's17 question, your Class 200 funds are18 strictly funds that go to PIDC to cover19 staff; is that correct?20
Hi. Moira21 Baylson.22 $2,000 of those funds remain in23 Class 200 for purchase of services for24 the administration of the department, but25 275 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 the remaining goes out in a contract.2
Okay. So6 let's move to Class 500, then. Your7 Class 500 request is over $2 million; is8 that correct?9
What is the12 largest contract you will award in Fiscal13 '12?14
That is the22 African-American Museum, which is awarded23 $230,688.24
Okay. Among25 276 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 the Philadelphia Cultural Fund dollars,2 there are subcontractors?3
They run a4 grant-making process that, in turn, makes5 grants through a peer review grant6 system.7
Okay. So12 the only contract I see that might need13 to be in compliance with the City's14 living-wage-and-benefits standard might15 be the African-American Museum in terms16 of formal contract; is that correct?17
The standard20 is, nonprofits with at least $100,000 in21 City contracts over a twelve-month22 period.23
Yeah, then that24 would be true, yes.25 277 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81
Okay.2 That's under your formal budget. You3 also are responsible for the line item4 that contains the subsidy to the Art5 Museum; is that correct?6
Not in a formal7 way. They have a separate line item.8 But in my role, I'm responsible for9 overseeing and advising on all of the10 City's cultural investments.11
And you are12 familiar with the living-wage-and-13 benefits issues at the museum, are you14 not?15
This is the24 actual amendment to the budget for this25 278 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 year that will transfer the money if we2 don't work it out.3 There was a commitment made in4 writing last year that the RFP and/or5 contract would contain language6 consistent with the City's living-wage-7 and-benefits policy; that has not8 happened.9 If it does not happen, the10 appropriate time is budget process. The11 proposed amendment is already drafted. I12 already have considerable support among13 my colleagues, particularly because they14 don't locate to be played with.15 And the Art Museum went as far16 as to say, "We promise we're going to do17 the right thing, we don't have a problem18 putting it in writing. Next year, at19 this time, there will not be a problem.20 As of right now, there is sill21 a problem.22
Well, all I can23 say is that as far as I know, they are24 working on being able to come before25 279 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 Council with a proposal that will satisfy2 Council. And their testimony, I think,3 is on April 6th so --4
I'm familiar5 with that. If they are not prepared,6 it's very simple; the amendment is7 already drafted.8
Thank19 you.20 This committee will stand in21 recess until tomorrow, Tuesday, March22 29th, at 10 a.m.23 Thank you all very much.24 (Proceedings end at 3:19 p.m.)25 280 3/28/11 COMM. OF THE WHOLE - 110135,6,7,81 * * *2 281 C E R T I F I C A T E2 I HEREBY CERTIFY that the4 proceedings of the City of Philadelphia5 Council Committee of the Whole are contained6 fully and accurately in the stenographic notes7 taken by me on Monday, March 28, 2011, and8 that this is a true and correct statement of9 same.10 _________________________________ JOSEPHINE CARDILLO Registered Professional Reporter15 (The foregoing certification of21 this transcript does not apply to any22 reproduction of the same by any means, unless23 under the direct control and/or supervision of24 the certifying reporter.)25