m. S. , a Pennsylvania corporation, for the City to lease the building located at 667-677 North Broad Street and adjacent parking lot located at 1360-1364 Ridge Avenue and 1319 Wallace Street, under certain terms and conditions. Bill 970793 - An Ordinance authorizing the Commissioner of Public Property to convey to the Redevelopment Authority of the City of Philadelphia without consideration, a deed conveying fee simple title of certain premises located at 216 West Somerset Street and authorizing the Commissioner of Public Property to enter into or to execute such other agreements as may be necessary or desirable to effectuate the provisions of this Ordinance; all under certain terms and conditions. Bill 970833 - An Ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Redevelopment Authority, without consideration, a deed conveying fee simple title a certain tract of City-owned land with the buildings and improvements thereon, situated at the northwest corner of Fifth and Huntingdon Streets and authorizing the Commissioner of Public Property to enter into or to execute such other agreements as may be necessary or desirable to effectuate the provisions of the ordinance, all under certain terms and conditions. VINCENT VARALLO ASSOCIATES, INC. , for the use of certain property located on the northeast corner of Byberry-Southampton Road and Townsend Road, to provide for an extension of the city's responsibility for the payment of charges and fees for public utilities, sewer rents, water rents, water charges, and heating charges, under certain terms and conditions. Bill 980270 - An Ordinance amending an ordinance, approved September 29, 1981, as amended, which ordinance authorized a lease between the City of Philadelphia and Twenty-first Ward Athletic Association relating to the lease of the two parcels of ground located on the westerly side of Harner Street, southeast of Cathedral Road, by authorizing amendments to such lease to change the area of land leased to the Twenty-first Ward Athletic Association and to make other amendments to the lease agreement all under certain terms and conditions. Bill 980407 - An Ordinance authorizing a Director of Commerce and the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a Deed of Dedication of Easement and Agreement with Tinicum Township, ("Tinicum") granting Tinicum a perpetual easement for public roadway and right-of-way purposes through certain property on the Philadelphia International Airport located in Tinicum Township, Delaware County, Pennsylvania. Bill 980442 - An Ordinance authorizing the Commissioner of the Department of Public Property, on behalf of the City of Philadelphia, to execute and deliver to the Redevelopment Authority of the City of Philadelphia, for no consideration, deed or deeds conveying fee simple title to certain parcels of City-owned land situate at 800 North Broad Street and 1438-1414 Brown Street and 1441-1419 Ridge Avenue, under certain terms and conditions. Bill 980458 - An Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a real estate purchase contract with Louis Fox, an individual, and Catherine Katz, an individual, and to accept a deed, for the purchase of properties located at 700-04 North Third Street and 309-11 Fairmount Avenue 3 ("Property") in Philadelphia, Pennsylvania, under certain terms and conditions. Bill 980459 - An Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a lease agreement with Spring-Del Associates, a partnership, for use by the City of premises located at 520-534 North Delaware Avenue, also known as North Columbus Boulevard, Philadelphia, Pennsylvania, under and being subject to certain terms and conditions.
Bill 980460 - An Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a sublease agreement with the Philadelphia Authority for Industrial Development for use by the City and affiliated agencies of office space located at 990 Spring Garden Street, Philadelphia, Pennsylvania, under and being subject to certain terms and conditions. , under certain terms and conditions. PRESENT: HONORABLE COUNCILWOMAN AUGUSTA A. CLARK, Chairlady COUNCILWOMAN JANNIE L. BLACKWELL COUNCILMAN JAMES F. KENNEY COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN FRANK RIZZO COUNCILMAN DAVID COHEN COUNCILMAN ANGEL L. ORTIZ 4 I N D E X BILL 980147 PAGE Andres Perez, Comm. of Dept. of Public Property- 6 BILL 970793 Andres Perez, Comm. of Dept. of Public Property- 9 Alva Martinez, Executive Director, Congresso de Latinos Unidos ------------------------- 10 BILL 907777 Andres Perez, Comm. of Dept. of Public Property-18 BILL 980270 Andres Perez, Comm. of Dept. of Public Property-20 BILL 980407 Thomas Moore, Government Affairs Officer, Division of Aviation -------------------- Janet Moore, City of Phila. Law Dept. -------- 27 9 Thomas Jensen, Dept. of Public Affairs, UPS --- 27 Andres Perez, Comm. of Dept. of Public Property-32 10 BILL 980442 Andres Perez, Comm. of Dept. of Public Property-33 11 Noel Eisenstat, Exec. , City Redevelopment Authority ------------------------------- 35 12 BILL 980458 Andres Perez, Comm. of Dept. of Public Property-38 13 BILL 980460 Andres Perez, Comm. of Dept. of Public Property-39 14 David Grasso, Spring Pack Assocs. ------------ 50 BILL 980882 15 Joseph James, Deputy Comm. Dept. of Public Property -------------------------------- 56 16 Vincent Costello, Dept. Of Public Property --- 66 Ed Pardini, Vice President, Comcast ---------- 69 17 Stephanie Lowe, Director of Community and Govt. Relations, Comcast --------------------- 108 18 James Jackson, Exec. Vice President, PCDC --- 109 Marilyn Carraccio, Admin, Asst. of 19 State Senator Shirley Kitchen ---------- 118 Marlene G. Patterson, PCAC ------------------ 121 20 William Goldsby, PCAC ----------------------- 124 Gretien Claushing, PCAC --------------------- 130 21 Keith Brand, Adjunct Prof. - Ursinis College, Temple University ---------------------- 133 22 William Butcher, PCAC ----------------------- 137 Robert Sorrell, Pres. - Phila. Urban League -- 141 23 Dr. Voung Thuy, Exec. Dir. Indonesian American Council --------------------------------- 144 Robert Yancy, Principal, Germantown High ----- 145 Lee Webster, Director Enterprize Communications for Phila. School District ------------- 149 5 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
We're getting ready to have a meeting of the Council Committee on Public Property. The Council Committee of the Whole is in recess. We had a public hearing earlier today, we recessed until 4 o'clock. We're running just a little bit late so the hearing of the Council Committee of the Whole will stand in recess until 5 o'clock. We appreciate very much your patience. Those people who are here on the sidewalk bill and other bills that are before the Council Committee of the Whole, we appreciate your indulgence, but we will make every effort to be ready at 5 o'clock. THE CHAIRLADY: Good afternoon, ladies and gentlemen. The Committee of Public Property and Public Works is now in session. Please disregard these technicians who are in the process of setting up for testimony that will be taken later. The rest of us will proceed with a fairly substantial list before the Committee today. For purposes of the record, let me establish that a quorum has been established. Present at the table today is Councilman Frank Rizzo 6 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS to my far left. To the left of me is Councilman Angel Ortiz. To the right is Councilman Michael Nutter and Councilwoman Joan Krajewski. I'm Chair of this Committee and my name is Augusta Clark. Will the clerk please read the first bill before us?
Bill No. 980147, an Ordinance authorizing the Commissioner of Public Property, on behalf of the City to enter into an amendment to the Lease dated July 10, 1990, between the City and the Far Northeast Senior Citizens, Inc., for the use of certain property located on the northeast corner of Byberry-Southampton Road and Townsend Road, to provide for an extension of the City's responsibility for the payment of charges and fees for public utilities, sewer rents, water rents, water charges, and heating charges, under certain terms and conditions. THE CHAIRLADY: Thank you. Good afternoon. Please introduce yourself to the record, spell your name for benefit of the stenographer, and proceed with your testimony.
Good afternoon, 7 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Chairwoman Clark and Members of the Committee on Publish Property and Public Works. My name is Andres Perez, A-n-d-r-e-s, P-e-r-e-z. I'm Commissioner of the Department of Public Property. The written testimony that have been provided to you. I assume that my staff would be making the presentation. In the interest of expediting the various bills, I will try to speed through them and use the summary paragraph regarding Bill No. 980147. It will permit the City to extend the City's responsibility for the payment of charges and fees for utilities, rents, sewer rents, water rents, and water charges and heating charges under certain terms and conditions. The Department of Public Property supports this measure. This is actually an extension of an existing arrangement including some utility charges that have not been previously included, and I respectfully ask that the Bill be proceeded with under the suspension of the rules. THE CHAIRLADY: Just so record will be clear, will you give a little bit of background about what Bill No. 980147 is about and why this action is taken at this time? Please proceed. 8 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
My recollection, briefly, is that some years ago the Northeast Senior Citizens facility was constructed on previous city-owned land and I believe with state funding. In exchange, the Councilperson for the area did seek to have the basic operating expenses absorbed by the City through our blanket bill arrangements benefitting from the various discounts that the City has through the utility providers. That's in very summary fashion. THE CHAIRLADY: Are there any questions by Members of the Committee. Any questions?
No questions, Madam Chairwoman. THE CHAIRLADY: Thank you very much, sir.
Bill No. 970793, an Ordinance authorizing the Commissioner of Public Property to convey to the Redevelopment Authority of the City of Philadelphia without consideration, a deed conveying fee simple title of certain premises located at 216 West Somerset Street and authorizing 9 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS the Commissioner of Public Property to enter into or to execute such other agreements as may be necessary or desirable to effectuate the provisions of this Ordinance; all under certain terms and conditions. THE CHAIRLADY: Please proceed, sir.
Bill No. 970793 will permit the City to transfer the premises situated at 216 West Somerset Street to the Redevelopment Authority of the City of Philadelphia for further development by the Congresso de Latinos Unidos, Incorporated, a Pennsylvania corporation to accommodate the City's Anti-graffiti Network among other terms and condition. The Department of Public Property supports this measure and, again, respectfully request for the suspension of the rules to proceed. THE CHAIRLADY: Thank you. Are there questions by the members of the Committee? There being none.
There may be persons present wishing to testify. THE CHAIRLADY: You wish to be heard on this? Please come forward. Introduce yourself for the record, spell 10 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS your name for the benefit of the stenographer, and procedure with your testimony.
Good afternoon, Members of City Council. It is a pleasure to be here. My name is Alva Martinez. I am Executive Director of Congesso de Latinos Unidos, and I'm here to give testimony in support of Bill No. 970793. There are a number of Congresso board members here, and I ask them to stand and be acknowledged. (Applause.)
Congresso was founded in 1977, and it's the City's largest most comprehensive non-profit social service agency for North Philadelphia's Latino community. Congresso is innovative and cost efficient bilingual, bicultural service programs are widely praised and reach nearly 4,500 low-income individuals and families each year. Our public education campaigns reach 40,000 more. Congresso is grateful to have the opportunity to offer testimony regarding the possible use of the city-owned property at 216 West Somerset a future headquarters. We seek to 11 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS redevelop this nearly vacant former industrial property as our headquarters for the delivery of our employment and training, family support, health promotion, adult education, housing, and youth services to the Latino community and its neighbors. We will invest six million dollars and intend to transform this building into a state-of-the-art social services facility. Planned renovation will bring this structure up to contemporary office standards in terms of mechanical systems, safety, security, handicap accessibility attractiveness of interior and exterior, and fit out for reception, administration, and a variety of program and training uses. Congresso will create between 40 and 60 new jobs, thus stimulating economic activity in that area. We have identified and are pursuing funding sources to help us reach our goal, and we'd like the best use of the summer for this purpose. Therefore, we request that the Committee on Public Property and Public Works recommend passage of this bill today and suspend the rules for City Council's passage of the bill prior to its adjournment. 12 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Thank you very much. THE CHAIRLADY: Thank you for your testimony. May I just ask you a few questions? Please describe the premises being conveyed and any building to other structures located thereupon and what is that fair market value of the property and the proposed sale price? And, Commissioner, you can answer that question, if you will.
Roughly it's an approximately six-story former industrial building located at the southeast corner of American and Somerset. The parcel includes an adjacent parking lot. And I'm sorry, I don't recall the square footage associated with that. This is not a capital asset. This was acquired many years ago as a small business incubator building and was turned over to the custody of Public Property approximately seven years ago. It's been largely unused since then. We took advantage of having the space in the building to support our storage needs associated with the construction of the courthouse and the new prison. However, since those projects were completed, we've only had a small L & I component in that building, 13 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS and we've used it as the storage facility for anti-graffiti operations. THE CHAIRLADY: So the structure was essentially vacant?
It was substantially vacant. We continue to support it and maintain it because of the staff group that we had in there and we also didn't want it to be left to be victimized by the neighborhood. THE CHAIRLADY: What is the fair market value?
I don't know what the fair market value is. THE CHAIRLADY: Sales price?
The intent was to convey for nominal consideration redevelopment authority for the continued use of the current space for the anti-graffiti operations and, of course, the substantial investment of several million dollars to be made by Congresso and the building itself, so the investment overall will be many times the market value.
What is plan for the City Outreach L & I office? 14 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
I'm not familiar with the city plans. I have yet been told to relocate them. I do recall that it would be contemplated moving them to space renovated at the library at Sixth and L.
You don't have a plan or a set programmatic idea where we're going?
It has no department jurisdiction. I'm not aware what those are.
Forty and sixty. A hundred employees, 40 full-time and part-time. 16
40 or 60 above that. 19 THE CHAIRLADY: Any other questions by 20 any other Members of the Committee? Thank you.
Thank you very much. THE CHAIRLADY: The clerk will read the next bill, please.
Bill No. 970833, an 15 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Ordinance authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Redevelopment Authority, without consideration, a deed conveying fee simple title a certain tract of City-owned land with the buildings and improvements thereon, situated at the northwest corner of Fifth and Huntingdon Streets and authorizing the Commissioner of Public Property to enter into or to execute such other agreements as may be necessary or desirable to effectuate the provisions of the ordinance, all under certain terms and conditions. THE CHAIRLADY: Proceed, Commissioner.
Bill No. 970833 will permit the City to transfer the premises situated at Fifth and Huntingdon Street to the Redevelopment Authority for further development by the Association de Musicos Latino Americanos, otherwise referred to as AMLA, A-M-L-A, a Pennsylvania corporation to accommodate the Latino musical education programs, among other certain terms and conditions. The Department of Public Property supports this measure, and again, I respectfully request that Council approve the Bill with a suspension of the rules. 16 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS THE CHAIRLADY: Are there any questions from Members of the Committee?
Madam Chair, I'd like to speak to the Bill. I don't think Jesse Bermudas (ph)is here. He is the executive director and president and founder of AMLA. And the purpose of this transference of property is to build a music school adjacent or right in front of the Puerto Rican Workshop, and begin the process of building a cultural and arts economic development district within the Latino area. The Pew Foundation, the Governor's Office, and other funding sources have been committed to building -- this will be a brand-new building. In is currently a parking lot. Right, Commissioner?
Currently it's being used as a parking lot to support some nearby school district offices.
This will be a brand-new building housing and music and cultural center that will hopefully provide, one, a good number of jobs, around 40 or so jobs, and perhaps serve as the anchor together with the Puerto Rican 17 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Workshop for an economic district, cultural and economic district in the neighborhood. And that's the plan along these lines. THE CHAIRLADY: Certainly is an exiting plan. Are there Members of Council that have questions or comments that wish to be heard with respect to this bill? First of all, were there any parties interested in this property, Commissioner?
I'm sorry, Councilwoman. THE CHAIRLADY: Were there any parties interested in the property?
Over the years the property has garnered the interest of a number of parties. All of them have essentially backed out. Council's most recent action regarding this was the authorizing of an agreement with PIDC who was to in turn enter into an agreement with a development entity. None of those projects ever came to fruition. It remains a fairly substantial, fenced-in vacant lot occasionally used for parking. THE CHAIRLADY: Now, I assume they need site control? 18 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
Yes. This is obviously conditional on the eventual receipt of those grants. THE CHAIRLADY: Of course. If there are no further questions, are the there persons in the audience who wish to be heard in favor of or against this bill? There being none, I thank you, sir. Would you read the next bill.
Bill No. 970777, an Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into an agreement of Lease between the City of Philadelphia and U.S. Four, Inc., a Pennsylvania corporation, for the City to lease the building located at 667-677 North Broad Street and adjacent parking lot located at 1360-1364 Ridge Avenue and 1319 Wallace Street, under certain terms and conditions. THE CHAIRLADY: Commissioner?
Thank you. Bill No. 970077 will permit the City to lease the premises situated at 667 North Broad Street and adjacent parking lots at 1360 through 1364 Ridge Avenue as well as 1319 Wallace Street from the US Four, Incorporated, a 19 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Pennsylvania corporation. This is a renewal of a lease for a homeless shelter under certain terms of the conditions. The Department of Public Property supports this measure, and again, respectfully ask Council's approval and suspension of the rules. Thank you. THE CHAIRLADY: Are there any questions or comments by Members of the Committee? Are there persons present who wish to be heard to speak in favor or against the bill? There being none -- just a minute. Councilwoman Miller does have a question.
Hi, good afternoon. Commissioner, are shelters there now?
Yes. It was one of the City's original shelters. This agreement goes back, I believe, to 1987.
Thank you. Thank you, Madam Chair. THE CHAIRLADY: Thank you. The clerk will read the next Bill.
Bill No. 980270, an Ordinance amending an ordinance, approved September 20 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS 29, 1981, as amended, which ordinance authorized a lease between the City of Philadelphia and Twenty-first Ward Athletic Association relating to the lease of the two parcels of ground located on the westerly side of Harner Street, southeast of Cathedral Road, by authorizing amendments to such lease to change the area of land leased to the Twenty-first Ward Athletic Association and to make other amendments to the lease agreement all under certain terms and conditions. THE CHAIRLADY: Thank you. Proceed, Commissioner.
Bill No. 980270 will permit the City to amend the City's lease between the Twenty-first Ward Athletic Association by increasing the land area under certain terms and conditions, and the Department of Public Property supports this measure. We are distributing to you an Amendment inserting a new Section 2. The section reads as follows: "The exact size and metes and bounds description of the leased property shall be determined by an official survey which shall be subject to the approval of the Commissioner of 21 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Public Property and a copy of which shall be kept on file with the Chief Clerk of City Council to be made available for inspection by the public during regular office hours." In addition, we're distributing a copy of the lease amendment which had been omitted from the earlier submission to the Committee. THE CHAIRLADY: That is marked Exhibit A?
Yes, Exhibit A. I respectfully request approval of the Bill with suspension of the rules. THE CHAIRLADY: Thank you.
Commissioner, thank you for your testimony. I also wanted to put on the record that I appreciate all the work that you and other members of the Public Property Department, the Law Department, Mary Mahdavi who worked on this and Joe Perrello from the Risk Management Unit and a couple other departments in the government. The Twenty-first Ward Athletic Association, which is a longstanding authorization is deeply appreciative of all the work, and this is something they've been seeking for some time, and 22 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS I'm glad that we're at the point of getting the Bill 3 introduced and hopefully passed as soon as possible. Thank you very much, Commissioner.
This is a city facility commonly known or covering an area generally referred to as the Al Pearlman Sports Complex in the Twenty-first Ward. There are a series of various ball fields that are used by the Twenty-first Ward Athletic Association, it's a recreational facility, and we're consolidating leases and getting an area that apparently did not have a lease that was being used that's being incorporated in this bill as well. This wraps up all of the various fields of this complex and gets them under one lease document. THE CHAIRLADY: Thank you. Are there persons in the room who wish to be speak in favor of or against this bill? Seeing none, are there members of the Committee who wish to be heard to speak? Would the clerk read the next bill, please? For purposes of the record, there is a 23 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS substantial Amendment which will be set forth as if it had been read in its entirety here.
980407, an Ordinance 6 authorizing the Director of Commerce and the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a Deed of Dedication of Easement and Agreement with Tinicum Township, ("Tinicum") granting Tinicum a perpetual easement for public roadway and right-of-way purposes through certain property on the Philadelphia International Airport located in Tinicum Township, Delaware County, Pennsylvania. THE CHAIRLADY: Good afternoon. Please identify yourself for the record, spell your name for the stenographer, and proceed with your testimony.
Thank you, Madam Chairlady. Good afternoon. My name is Thomas Moore, T-H-O-M-A-S, M-O-O-O-R-E. I serve as a Government Affairs Officer for the Division of Aviation, Department of Commerce. I'm here today on behalf of the Division of Aviation requesting the Committee's approval of Bill 980407. 24 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Passage of this Bill would approve an easement agreement or public right-of-way and roadway purposes between the City and Tinicum Township. " The easement area will be located over a to-be-improved stretch of roadway located along the southwestern perimeter of the Philadelphia International Airport that is located in Tinicum Township, Delaware County. This new stretch of roadway, which will be constructed by the Delaware County Industrial Development Authority, will, upon completion, be assumed by Tinicum as a Tinicum public roadway pursuant to the easement agreement. Once the roadway is constructed, Tinicum will be responsible for, and will pay for, all necessary repair and maintenance. Tinicum will be responsible for enforcing all applicable public roadway regulations under state law and township ordinance. So that you are aware, the City will continue to be able to enjoy the use of the roadway once it is improved. It will also retain a right to relocate the roadway, if necessary. Further, in the event 25 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS that Tinicum ceases to use the easement area for public roadway purposes, the easement agreement would terminate automatically. As it currently exists, Hog Island Road is essentially two dead end roads, separated by a locked gate which marks the City property line just beyond the United Parcel Service facility. The Bill, which would enable the rejoining, enhancement and maintenance of this roadway, is consistent with the Airport's good neighbor policy and would further strengthen our improving relations with Tinicum. From the standpoint of safety, rehabilitation of Hog Island Road is critical. The road is subject to heavy flood which, along with the obvious hazards this causes, restricts access in both directions for UPS employees, other business entities, and police, fire and rescue personnel. Refurbishment of this roadway would enhance its safety and alleviate congestion at a time when UPS is planning to expand its Hog Island air freight hub and more vehicles would be using Hog Island Road than ever before. Improvements to Hog Island Road would also promote the regional economy by making job COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS opportunities more accessible. SEPTA has indicated that it would initiate bus service along Hog Island Road if the road were improved and made a throughway. This would enable many low income Philadelphians to commute directly to UPS, the Tinicum Industrial Park, and other Tinicum work sites for the first time. In short, the Division of Aviation feels that the rejoining, improvement, and expansion of Hog Island Road is a worthwhile undertaking and supports the Delaware County Industrial Development Authority and Tinicum Township's efforts to accomplish this goal. We ask that you give your approval to the granting of this permanent and perpetual easement to Tinicum. We also ask that the rules be suspended so the Bill may be passed upon second reading at Council. I thank you again for this opportunity to address you today. I also have with me representatives of the City's Law Department to answer any questions you may have about the easement agreement. Additionally, also present are representatives of the Department of Public Property, Tinicum Township, and the Delaware County 27 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Industrial Department Authority who can also answer questions concerning this transaction. It is my understanding that there are representatives of UPS present today as well who would like to offer testimony in support of this bill. Thank you. THE CHAIRLADY: Would you like to speak now?
Why don't we let them all speak now, Mr. Rizzo, and then you ask your questions; is that okay?
That's fine. THE CHAIRLADY: Please introduce yourself to the record. Specifically tell us which of the various agencies he mentioned you might represent and proceed with your testimony.
My name is Janet Moore. I'm with the City of Philadelphia Law Department. I'm not here to testify, but I'm here to answer questions if there are any of City Council. THE CHAIRLADY: Thank you. I appreciate that. Good afternoon, sir.
Good afternoon, 28 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Councilwoman Clark, Members of the Committee on Public Property and Public Works. My name is Tom Jensen, J-e-n-s-e-n, of the Department of Public Affairs of United Parcel Service of America. I'm here this afternoon to testify in support of Bill 7 No. 980407. This bill would authorize certain real estate transactions necessary to permit the City to grant an easement over land upon which Delaware County Industrial Development will construct an extension to a currently existing public road known as Hog Island Road. Upon completion of the Hog Island Road extension, the new road will be dedicated to and accepted by Tinicum Township as a public roadway of the Township. United Parcel Service operates its principal East Coast air hub at a site on Hog Island Road adjacent to the Philadelphia International Airport. The UPS Philadelphia air hub currently employs over 3,000 people and processes an average of approximately 300,000 parcels each day. THE CHAIRLADY: Mr. Jensen, thank you for your testimony in full. Could you summarize it?
United Parcel Service is 29 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS 110 percent behind Bill No. 980407. We're happy to be in Philadelphia. We want to stay and grow in Philadelphia, and we appreciate your consideration. THE CHAIRLADY: We thank you so much. Are there questions? Have you presented your case-in-chief? Are there other persons present who you wish to speak?
Madam Chairlady, we presented everyone that we care to at this time. THE CHAIRLADY: All right, thank you. Mr. Jensen, we will put your entire testimony in the record as if you had set it forth earlier here.
Thank you. THE CHAIRLADY: I was dogging you a little bit, but if you do have points that you wish to emphasize by speaking that are not clearly made in this record, you certainly have the opportunity and this is the time to do it. But I flipped through your testimony, and it seems fairly clear to me.
Everything is summarized in there, Councilwoman. But again, United Parcel Service is a very important project for us so that 30 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS we can grow and continue to prosper in Philadelphia, and particularly it's of interest so we can continue to help in the areas of welfare to work. We're one of the country's leading employers in moving folks from the welfare roles to the workplace, and the road is going to help us dramatically given the additional bus routes from SEPTA and the access to not only UPS, but to other employers throughout the corridor. THE CHAIRLADY: Thank you. I think that's an important point to make, and we appreciate your emphasis here. Mr. Rizzo wishes to be heard.
Thank you. My question is to Mr. Moore from the Division of Aviation. A curiosity question here which I'll appreciate you answering. I'll read, "So that you are aware the City will continue to be able to enjoy the use of the roadway once it's improved. It will also retain a right to relocate the roadway if necessary." Could you comment on that, please?
Yes, Councilman Rizzo. That clause indicates that if the airport needed for this 31 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS roadway to be located for our purposes to stay within the mandates of the FAA or for other such relocation purposes that that such relocation would be allowed under this easement agreement.
The relocation would be at the City's expense. THE CHAIRLADY: Of course, if you decide to move it. And your testimony is that should they ever cease to use it in this designated way that the easement would terminate?
That's correct. This easement is in effect only so long as this is a public roadway.
So to be clear about this, if the airport would ever expand or FAA rules would change that would not allow a roadway because of aviation operations, that the City of Philadelphia would be committed to relocating this roadway or there would be an option to close it again? What would be the --
I think that what would happen is if for some reason the airport had a 32 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS need to relocate the roadway, the airport would be entitled to do that. It would be at the airport's cost, at the City of Philadelphia's cost but out of the airport budget, and there are certain requirements in the agreement that allow the City to do that, to relocate the road if it needs to because maybe there needs to be a bigger clear zone or something, we can do that. This agreement retains that for the City. THE CHAIRLADY: Expressly reserves that right.
Thank you, Madam Chair. THE CHAIRLADY: Are there any other questions, sir? No more? Thank you very much. I appreciate your help there.
Thank you, Madam Chairlady. THE CHAIRLADY: You wish to be heard on this bill?
Yes, Councilwoman. As Commissioner of Public Property, we support the 33 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS measure and respectfully ask Council's approval through suspension of the rules. Thank you. THE CHAIRLADY: Thank you very much. Other bills?
Bill 980442, an Ordinance 7 authorizing the Commissioner of the Department of Public Property, on behalf of the City of Philadelphia, to execute and deliver to the Redevelopment Authority of the City of Philadelphia, for no consideration, deed or deeds conveying fee simple title to certain parcels of City-owned land situate at 800 North Broad Street and 1438-1414 Brown Street and 1441-1419 Ridge Avenue, under certain terms and conditions. THE CHAIRLADY: Please proceed, sir.
Bill No. 980442 will permit the City to execute and deliver a deed conveying the premises at 800 North Broad Street, 1414-1438 Brown Street as well as 1441-1419 Ridge Avenue to the Redevelopment Authority of Philadelphia for further development as an outreach center by the People for People, Incorporated. The Department of Public Property supports this measure and respectfully asks a 34 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS suspension of rules, favorable considerable and passage. THE CHAIRLADY: Sir, this is the old traffic court building, is it not?
This is the old traffic court and other the associated parking lot. THE CHAIRLADY: And the parking lots behind it?
Yes. THE CHAIRLADY: And briefly, what is the intended new use?
The best way to describe the proposed reuse, as I understand it, and the Redevelopment Authority may be closer to it and better versed in the details of the proposed plan, is to take the building and convert it into a multipurpose human service center by People to People, Incorporated. THE CHAIRLADY: Is there anybody from the Redevelopment Authority who wishes to speak on this? Are there persons in the room who wish to be speak in favor of or against the bill? Are you rushing to be heard, Mr. 35 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Redevelopment Authority? Good afternoon.
Good afternoon my name is Noel Eisenstat, E-i-s-e-n-s-t-a-t. I'm the Executive Director of the City's Redevelopment Authority, and I'm here just to say that we really have no additional comment on this bill other than that supplied by the Commissioner of Public Property. We're prepared to take title to the property from the City in order to work out further redevelopment agreement with the organization known as People to People for a multipurpose facility. THE CHAIRLADY: May we infer from that that you support the passage of the Bill?
You may do more than infer. I can state that the Authority is here to lend support to the Bill and serve as a conduit on behalf on the City to facilitate this future redevelopment. THE CHAIRLADY: Thank you very much. You wish to be heard Councilwoman Blackwell?
Yes, Madam Chair. I was just informed of a meeting that I'm 36 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS due to be in at 319. I'll step out a minute. Should you finish the last two before I come back, I wish to be voting as aye on all bills and amendments before this Committee. THE CHAIRLADY: Thank you very much.
Thank you, Madam Chair. THE CHAIRLADY: Thank you, gentlemen. Clerk, we have other bills before us?
Bill No. 980458, an Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a real estate purchase contract with Louis Fox, an individual, and Catherine Katz, an individual, and to accept a deed, for the purchase of properties located at 700-04 North Third Street and 309-11 Fairmount Avenue ("Property") in Philadelphia, Pennsylvania, under certain terms and conditions. THE CHAIRLADY: Commissioner?
Bill No. 980458 will permit the City to purchase those certain properties located at 700 through 704 North Third Street and 309 through 311 Fairmount Avenue for recreation 37 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS purposes. The Department supports this measure, and I respectfully ask a suspension of the rules and favorable consideration of the bill. Thank you. THE CHAIRLADY: Thank you. Are there persons in the room who wish to be heard in favor of or against this bill? Are there comments from Members of the Committee? There being none, thank you, sir.
Thank you. THE CHAIRLADY: Clerk, are there any other bills before us?
Bill No. 980459, an Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a lease agreement with Spring-Del Associates, a partnership, for use by the City of premises located at 520-534 North Delaware Avenue, also known as North Columbus Boulevard, Philadelphia, Pennsylvania, under and being subject to certain terms and conditions. THE CHAIRLADY: Commissioner, please proceed. 38 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
Bill No. 980459 will permit the City to lease certain property located at 520-34 North Delaware Avenue for primarily the City Commissioner's purposes. The Department of Public Property supports this measure and respectfully ask for a suspension of the rules and favorable consideration. This is actually a restructuring of the existing lease agreement and extending it. THE CHAIRLADY: Commissioner, I apologize for being distracted. Tell me again what you said when you I wasn't listening.
The Department of Public Property supports the measure, and we ask for a suspension of the rules and favorable consideration. The measure is intended to continue the existing lease with changes in certain terms and conditions. This is more commonly known as the City Commissioner's office space at Delaware and Spring Garden. THE CHAIRLADY: On Delaware Avenue?
Yes. THE CHAIRLADY: All right. Are there any questions by the Members of the Committee? 39 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Are there persons in the room who wish to be heard speak in favor of or against this bill? There being none, thank you, sir. Clerk.
Bill No. 980460, an Ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a sublease agreement with the Philadelphia Authority for Industrial Development for use by the City and affiliated agencies of office space located at 990 Spring Garden Street, Philadelphia, Pennsylvania, under and being subject to certain terms and conditions. THE CHAIRLADY: Please.
Bill No. 980460 will permit the City to sublease certain property located at 990 Spring Garden Street for City agencies including 911 training, Streets Third Survey District, Licenses & Inspections, Police Conflict Prevention. The Department of Public Property supports this measure, and respectfully request a suspension of the rules and favorable consideration. Thank you. THE CHAIRLADY: Thank you, sir. 40 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Mr. Nutter, you wish to be heard on this?
Yes, I do, Madam Chair, thank you. Commissioner, this bill had been the subject of some discussion a while ago. The agencies that you make reference to who would by this proposal be located the 990 Spring Garden, where are they coming from.
The Police 911 Training Unit is currently at 1600 Arch Street. The Streets Department Third Survey District is also at 1600 Arch Street. The Department of Licenses & Inspections, Weights and Measures Unit, as well as their Commercial Industrial Inspection Unit are coming from 1600 Arch Street. The Department of L & I Housing Office, and I'm sorry, I don't recall what area district they serve, which is currently located at 1415 North Broad Street will be coming to this building. The Police Civil Affairs in Conflict Resolution and EEO units are currently at 319 Race Street, and they will be relocating to this building.
One of the items 41 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS under discussion about this Bill was the relocation of the personnel out of the 1415 North Broad Street location. I believe -- is that somewhere about Broad and Jefferson, Master?
Broad and Jefferson. If I may clarify in responding to your previous question, I did leave the Police Advanced Training Unit out which is also at 1415 North Broad Street.
What's the total number of personnel out the 1415 North Broad Street location? And what's the square footage of space that they have up there right now?
The Broad Street group, unfortunately, is not in my printed summary. My recollection is that the training -- you made reference to the police group, right?
L & I had 53 people, and I think since then they hired 15. They require approximately 4,000 square feet for that function. 42 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS However, all those L & I units together at 990 will occupy an entire floor of approximately 19,000 square feet. My recollection of the Police Advanced Training Unit is that it's a staff of about six or seven, but the training space required is in the neighborhood of or 13,000 square feet, mostly 9 classroom training space. 10
Madam Chair. 11 THE CHAIRLADY: What does it do to the 12 continued viability of 1415 to have the City move its two units out of that building?
I have no doubt that there's an adverse financial impact. It's very difficult for me to gauge because they seem to be able to rent the rest of the building. I don't know what their success would be in quickly renting the spaces that we vacate. THE CHAIRLADY: Has anybody asked what it does to them?
If you mean asking them directly, no. 24 THE CHAIRLADY: Well, what percent of the space available did you occupy? 43 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
I don't know that. I can find out for you. Shooting from the hip based on walking through the building, maybe percent. 5 THE CHAIRLADY: 20 percent? 6
Yes. They have a number of 7 smaller tenants in smaller suites. 8 THE CHAIRLADY: Smaller transient kinds 9 of tenants as opposed to a dependable tenant like a 10 City agency? 11
I saw federal agencies, 12 state agencies, and what were probably nonprofit 13 service providers. 14 THE CHAIRLADY: I'm very familiar with 15 the building. I can't imagine that they can afford 16 to lose 20 percent of the tenants being stable 17 financially secure as the City. Sometimes we go 18 into buildings to keep a building viable, don't we? 19
It's been done in the past 20 for economic development purposes. THE CHAIRLADY: Well, I would like to have you assess for this Committee the impact on that building's continued viability of having the City move its facilities, its agencies from there, recognizing that there's not a whole lot of business 44 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS in North Philadelphia. So at this point, I would be unwilling to report this bill out until I got your assessment of the impact of your moving would have. Can you guess how long it will take for you to provide us with that?
Difficult question to answer, and it's directly dependent on how forthcoming the owners are. I think I've been clear in my earlier testimony that there's been difficulty in having the building supported by them. A proper gauge of the impact would mean that they would be divulging to me what would normally be, I think, proprietary information. THE CHAIRLADY: Well, is there anything --
But I can confirm proportionately what our piece of it is. We can ask them to -- THE CHAIRLADY: Is time of the essence in moving this building?
It is for the most obvious reasons that the bulk of the people are coming from -- not the bulk, but a substantial number of 45 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS the people are coming from an expiring lease where we don't want to face holdover and penalty rents. The people coming from Third and Race are leaving a decaying building which continues -- THE CHAIRLADY: Whatever those reasons are, they would likely encourage you to hurry? I wait to be persuaded this that is good for the City, particularly to the North Philadelphia area of the City. Let me give it back to you.
Thank you. Commissioner, the only thing I can add to this is when we talk about steps that have been taken in the past to help ensure economic viability of a building, you're probably familiar with I believe it's Six Pen Center?
Isn't it being 46 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS renovated with the assistance of the City of Philadelphia.
It is. It's a major renovation project because we decided it was economically viable and in our best interest in the downtown corridor to do so. Based on the testimony here today, it does not appear, not saying that it's your fault, but it does not appear that that same kind of analysis was done for a much smaller building in another part of the City the impact of which could be as significant for that section as the Six Penn Center job could be for this part of town. And I think that's a very serious issue, and I would agree with the Chair.
It is a very serious issue, Councilman. We've made attempts in the past to correct the conditions in this space, the space we're talking about that is in reference to 1415 North Broad Street. While for a period of time it appeared that management wasn't interested in dealing with the problems, they did eventually come around to try to work with us on a series of code 47 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS violations, sanitary conditions based on the level janitorial work and the usual issues with HVAC. I won't say that they are not interested, but they appear to be unwilling to finance -- I'm sorry, they're not unwilling. They appear to be unable to finance the improvements it would have taken to keep us there for an indefinite period of time. THE CHAIRLADY: Will your leaving make it easier or harder for them to just bring the building into code?
Well, in one sense it would be easier because we're not in their way. And we know from our own renovation experiences that working around people is extraordinarily expensive. THE CHAIRLADY: I understand that, sir, but I don't want to be complicit in taking from their revenue stream City dollars which they may need just to keep their doors open. So why don't you look at the impact, talk to the people over there, report back to us? We've made it clear on the record that I am disinclined to report this Bill out. If forced, I will report it out with an unfavorable 48 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS recommendation and then I would politic against the passing.
Your position is quite clear. Unfortunately, I'm in a position where I feel compelled to ask you to reconsider that because -- THE CHAIRLADY: You did and I did and we're in the same spot.
We do need to relocate. If on the other hand there's an opportunity to bring other City tenants into an improved space, that's not a closed issue. I still have some moves to do. THE CHAIRLADY: What I'd like to do, and you and I are guessing now on a point that could be cleared up with just the rudimentary of investigations. Let's find out what the move does to them, okay, and whether stretching it out permits them to bring themselves into compliance so you wouldn't have to leave. I don't want to guess at that, and you seem unwilling to guess at it. Let's find out and make an informed decision.
We'll attempt to that. THE CHAIRLADY: Thank you, sir. I appreciate that. 49 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Are there any other comments or questions from members? Councilman Rizzo?
Commissioner Perez, could you restate the units of the Police Department that are going to locate at Spring Garden Street, please?
The Equal Employment Opportunity Unit; the Conflict Resolution Team, which is always co-located with the Civil Affairs Division of the Department; the Police Advanced Training Unit, which is coming from Broad Street.
Has that changed since our initial conversation? Was there some indication that Internal Affairs was going to be housed there?
The original program did assume that Internal Affairs and possibly Accident Investigation could be accommodated in the building. And once the detailed program reviews were done, and once newly appointed Commissioner Timoney had an opportunity to examine the set the problems associated with that, we decided to leave them out of that program. 50 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
Yet to be determined. The Police Department has reorganized and created a larger Internal Affairs group, so we have to find -- we actually have to find a space for them and we're in the process of trying to identify locations.
Thank you, Commissioner. Thank you, Madam Chair. THE CHAIRLADY: Thank you. Are there persons that wish to be heard to speak in favor of or against this bill? Please, sir. Good afternoon. Please introduce yourself to the record spell your name for the stenographer and proceed with your testimony.
Good afternoon. My name is David Grasso, G-r-a-s-s-o. I represent Spring Pack Associates who is the owner of the property located at 990 Spring Garden Street, the landlord that would be leasing to -- subleasing to the City of Philadelphia. There's just a few things I'd like to point out. One of which, I understand the Council's concern about not bringing an area of the City -- 51 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS not taking away a critical tenant away from a property and possibly bringing it to, you know, making not viable, a viable property. 990 Spring Garden Street has been vacant. It's about 155,000 square foot building which has been vacant for about to years, roughly. And in that 12 to 15 years 8 the building has been inhabited by drug users, and 9 the building has been a drug crack house, so to 10 speak. The building -- there's been numerous fires 11 in the building from the people who have been living 12 in there. 13 THE CHAIRLADY: Excuse me. Is the old 14 Packard Press building? 15
That is correct. The City would be the major tenant in this building. I just want to point out that if substantial delay is taken by in this lease being signed, this property may go right back to the status it was in before. And although the building on Broad Street is already up and running and has tenants in it and is viable right now, this building would not be. THE CHAIRLADY: So this is like one of those Solomon-like decisions, isn't it? We don't want to split the baby. We do not want to split the 52 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS baby.
Well, that's really not my decision. Our concern is obviously we have a financial stake in this. THE CHAIRLADY: Of course.
And so does the owner of the property on Broad Street. I don't see why his would be any more paramount than ours. THE CHAIRLADY: Well, it may not be that we have to decide that one lives so the other one dies. Let's let the Commissioner go and do the due diligence so that we can make an informed decision and we won't just act on emotion. We have every interest in that building being brought back to life, the one on Spring Garden Street. But we don't want it to be done at the expense of the one on Broad Street. So let's balance the equities, let's be fair to both. And Commissioner, it's all in your court. You come back and tell us what we can do to invigorate the Spring Garden Street building without killing off the North Broad Street building.
May I just make one point? THE CHAIRLADY: Yes, sir, please do. 53 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
The property on Broad Street, as you know, is an older property and it's rather antiquated. The property on Spring Garden Street -- THE CHAIRLADY: No, it's not. I don't know what you're thinking of, but this is that big white building that sets in a field between Master and Jefferson on Broad Street.
Is the OIC in this building? THE CHAIRLADY: It's the OIC building, but it's not an old building. It may be the newest building in North Philadelphia.
Very well. We're trying to provide -- we will be providing a state-of-the-art facility for the City of Philadelphia, other tenants if possible, at a cost that would be equal to or less than what the City is currently paying. I just want to point that out for the record, that we're in essence saving the City money at the same time as giving them brand-new space. THE CHAIRLADY: I hear you and your pleas do not fall on deaf ears. I understand where you're going and why. I don't disagree with you. I have a different responsibility, and I'm balancing 54 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS equities here. The Commissioner knows what I'm trying to do here and he knows the urgency, and you have added to the urgency of his providing us with the kind of information that we have to have to make an informed decision. We want to take emotion out of it and do a business decision. But killing one so that the other one can live is not good business. Thank you. Sir, have I stepped on your line, were you through?
No, ma'am. What you said is fine. THE CHAIRLADY: Thank you. I appreciate your coming. I hope you feel that we've respected you here because we surely do and we'll do the best that we can. Thank you. Are there other persons present who wish to be heard in favor of or against this bill? Thank you, Commissioner. Now before us comes the issue of renewal of cable franchise. The clerk will read the Bill.
Bill No. 960882, an Ordinance renewing the Area III and Area IV cable television franchises held by Comcast Cablevision of 55 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Philadelphia, L.P., under certain terms and conditions.
Thank you, Councilwoman Clark. THE CHAIRLADY: Excuse me one minute. Thank you. Proceed with your testimony after introduce yourself to the record.
I am Andres Perez, Commissioner of Public Property, and with me today is Joseph James, Deputy Commissioner for Communications, and Mr. Vincent Costello, Director of Communications for the Department of Public Property. It's a pleasure to appear before the Committee to briefly review the substantive provisions of the cable franchise proposal submitted to the City by Comcast Cablevision of Philadelphia. Based upon the negotiations pursuant to this proposal it's my recommendation that this City renew the cable television franchise for Areas III and IV served by Comcast. Bill No. 960882 was introduced in December of 1996. Representatives from my department have engaged in continuous discussions 56 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS with representatives from Comcast concerning renewal of the franchises as permitted by the Bill. Through the franchise renewal process, we've sought terms for an agreement that will best serve the needs of the communities in which Comcast operates as well as the needs of the City. Specifically these terms include issues such as term of renewal, franchise fee, system upgrade, institutional network services, public education on public access, local origination programming, MBE, WBE, and EEO commitments, customer service standards, and billing. In summary conclusion, much briefer than the text that was provided to you earlier, I again respectfully ask suspension of the rules and favorable consideration of this bill. THE CHAIRLADY: Thank you.
I'm going to ask Deputy Commissioner James to add some further clarification. THE CHAIRLADY: I appreciate that.
Good afternoon Councilwomen and Members of the Committee. THE CHAIRLADY: Good afternoon. A little louder, please, sir. 57 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
Thank you. In addition to the suspension of the rules, we'd also ask that -- THE CHAIRLADY: Give your name to the stenographer.
I'm sorry. My name is Joseph James, Deputy Commissioner for the Department of Public Property responsible for communications. In addition to the suspension of the rules, we also ask that the original bill be amended to include the franchise renewal agreement and those modifications. THE CHAIRLADY: Do we have those agreements? Has that been passed out to us?
The agreement has been passed out. If not, we have copies available. THE CHAIRLADY: Commissioner, do you have copies of testimony? You can provide that to us, too. We don't seem to have it. Commissioner, it might be useful for you to read your testimony into the record because this is such a substantial agreement that lasts so long, we don't want the record to be frail or flimsy. I'm talking about your five-page testimony which you just passed out to us. 58 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Mr. Perez: I'll skip page one which I had stated earlier. Moving to page two, the specific terms, the renewal term Comcast seeks renewal of the franchise agreement for years for 6 each of the franchise Areas III and IV commencing 7 upon expiration of the current agreements. A 8 15-year term will provide the City with an improved 9 telecommunications infrastructure, new cable-related 10 services and technology, and additional franchise 11 fee revenues. 12 The franchise fee determined by the 13 Federal Cable Act may not exceed 5 percent of the 14 cable operator's gross derived from cable services 15 per year. Comcast has agreed to continue to pay the City 5 percent of the annual gross revenues including revenue from Home Shopping Channel sales and cable modem service. 4 million dollars a year. We expect this revenue to increase over the length of term given the addition of home shopping sales and cable modem service. System upgrade: Comcast has agreed to 59 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS upgrade its systems in Areas III and IV to a minimum of 750 megahertz band width by installing fiberoptic cable which will provide a minimum capacity of 82 downstream analog channels and 200 megahertz available for digital video and data services. The upgraded system will be capable of two-way operation for the provision of interactive services such as home banking, home shopping, travel information and reservation, news and information retrieval and will permit access to the internet and digital data transmission utilizing high speed cable modems. Comcast will submit a detailed implementation plan for system upgrade not later than 12 months before expiration of current franchises. The construction of the upgrade will commence only after the City's review and approval. Comcast will complete the upgrade for both areas no 19 later than 60 months after approval. Institutional network services: Comcast has agreed to interconnect 44 police and fire department locations in Areas III and IV using fiber and coaxial cable to provide data exchange capability at a minimum speed of 56 kilobytes per second. Additionally, Comcast will provide basic 60 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS data change serve among connected locations at no 3 cost to the City. Comcast has also agreed to construct and maintain at Comcast's expense a fiberoptic telecommunications network consisting of one bidirectional video channel with transmission capacity equivalent to seven T1 lines between the municipal prison complex in North Philadelphia and Comcast Wayne Avenue head-end. Signal transmission from the prison's complex to the headend will be at no cost to the City. The cost for signal transmission from the headend to locations outside the franchise area will be the City's responsibility. The fiberoptic network will be used for video arraignments and other City-determined uses. Publish educational government access: Comcast has agreed to renew commitments to publish educational and governmental access programming, however, Comcast has requested revision of specific provisions of educational and governmental access.
Regarding public access, Comcast has agreed to roll forward on the same terms provided in the current franchise agreements its commitment to fund equipment and capital facilities for publish access 61 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS and its commitment to forward annual operating funds to the public access corporation upon City request. 4 million dollars total for Areas III and IV. Annual obligation deductible from franchise fees paid to the City totals 150,000 to $250,000 as directed by Council. Five public access channels currently on loan to Comcast remain returnable to the City upon demand pending implementation of a public access corporation. Educational access, local universities: Three channels will continue to be available for educational programming by local colleges and universities. The school district: Two channels will continue to be available for Philadelphia School District for distribution of educational programming. The City will exchange one analog channel presently used by the school district upon Comcast provision of a digital closed circuit channel for school district use. Comcast will ensure implementation of cable in the classroom programming throughout the City's public schools within the Comcast service area. Additionally, 62 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Comcast will make a lump sum grant to the Philadelphia School District of $500,000, $250,000 each for Areas III and IV for use by the District at its discretion to fund video programming and the communications needs of the schools. Upon my request as the Commissioner of Public Property and once cable modem service is available in the franchise areas, Comcast will equip each publish and private K through school within Area III and Area 11 IV with one free cable modem. 12 Government access: Comcast has requested the use of one of the two government channels presently available, but will return the channel to the City upon demand following completion of the upgrade. The City will continue to use one government access channel for City broadcast activities. Local origination programming: Comcast has agreed to continue its commitment to Comcast each week a combined minimum of 112 hours of programming originating locally and to continue to operate and maintain production facility and staffing necessary to fulfill this commitment, MBE, WBE commitments. 63 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Throughout the renewal term, Comcast has agreed to comply with minority-owned and women-owned business enterprize participation and employment goals and which will meet participation levels established by the City. Comcast has agreed to increase its contribution to the Philadelphia Commercial Development Corporation to underwrite low-cost small business loans to certified local minority and women-owned enterprises. Equal Employment Opportunity commitments: Comcast agrees to comply with all applicable federal, state local requirements related to minority female and other special group employment, training and promotional opportunities. Comcast is committed to make available 30 percent of all jobs within Comcast Cablevision of Philadelphia to minority employees and percent of all the jobs 20 within the company will be allocated to woman. Customer service standards: Comcast agrees to adhere to the National Cable Television Association and Federal Communications Commission customer service standards and requirements. Comcast specifically adopts the NCTA long-time 64 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS guarantee which provides for free standard installation if a technician does not arrive within a four-hour appointment window and a $20 credit if a technician does not arrive for service within the four-hour window.
Billing: Comcast agrees to freeze rates for its basic T or B1 programming service through March 1999 and agrees to preclude negative option billing, a procedure where the failure to object to a billing term resulted in a customer being billed for a service or item. In conclusion, the terms to which Comcast is committed is acceptable to the Department. And we're available to answer any questions you may have. THE CHAIRLADY: Thank you. Mr. Rizzo.
Commissioner, I just have a question in reference to publish access. My question is about our government channel. I got numerous telephone calls today about this hearing, and people wanted to participate in it by watching at home, they couldn't get here. Commissioner, we need to do something about making that channel have 65 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS more access to it. We telecast Council sessions, key hearings. Around here, people that want to participate, want to learn, can't. What can you do to fix that. I constantly hear there's not enough people, at least the audio. What can we do about that?
Councilman Rizzo, we appreciate the question you raised about the use of our governmental channel, and we are working very hard to increase the services that we provide on that channel. We have made an arrangement for this hearing to be broadcast.
We are broadcasting this session. What we have done over the last six months is worked very hard to improve the equipment that we're currently using in our government access channels as we improve the type of information that we put out there and increase the amount of information we get from the department.
My point being is that we can't even talk about public access until we have public access of our own channel. 66 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
Thank you. THE CHAIRLADY: I'm not sure I understood the answer. Was your question whether we use the government channel to the maximum?
My point is today these hearings, significant hearings from early this morning to this moment, were not available to the citizens of Philadelphia. THE CHAIRLADY: Mr. Costello, does that sound like an echo in this room to you? Didn't you and I have that discussion about 9:30 or 10 o'clock this morning.
Yes, ma'am. And we did subsequently decide -- or not decide but really scramble around and find some personnel to actually operate the channel today. THE CHAIRLADY: And you forgot to tell me?
I did. I'm sorry, I apologize. THE CHAIRLADY: Lowell is reminding me that you need to tell your name to the stenographer.
Vincent Costello, the 67 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Department of Public Property. We have been given the green light recently to bring some additional personnel, not necessarily dedicated to running the government access channel, but personnel who can be flip-flopped into different assignments and hopefully get a little bit more flexibility than we have right now. I think better days are coming and we will have the opportunity shortly to do more of the broadcast of the Council, different Council hearings as opposed to the normal Thursday hearings that we traditionally carry. THE CHAIRLADY: Mr. Costello, is there a short answer? Let me try it this way: Are you committed to televising on the government channel significant City Council hearings?
Are we committed, Councilwoman, yes. THE CHAIRLADY: And will you perform regularly and in a workman-like manner?
I believe the answer is also yes. THE CHAIRLADY: I was fine until you said "I believe." I need an unconditional promise. 68 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
We will do that, Councilwoman. THE CHAIRLADY: Thank you, Commissioner. How do you feel about that, Deputy Commissioner James?
I too affirm what the Commissioner has just said. THE CHAIRLADY: So we're going to have our hearings what?
Televised. THE CHAIRLADY: Televised. Thank you very much. First let me have Councilwoman Miller and then Councilman Nutter.
Thank you, Madam Chair. When you talk about the EEO requirements, can you further explain whether the 20 percent female is 20 percent of a hundred percent of your employees, or is that 20 percent included in 30 percent of minority.
We'll ask a Comcast representative to step forward. THE CHAIRLADY: Will you join us at the 69 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS table, representatives of Comcast?
My name is Ed Pardini. I'm the vice president and general manager of Comcast Cable. THE CHAIRLADY: Just spell your last name.
P-a-r-d-i-n-i. THE CHAIRLADY: Please proceed with your testimony. Did you hear and understand the question that Councilwoman Miller asked.
Yes, and I'm very happy to report that Comcast is committed to supply 30 percent of all jobs, 100 percent of all jobs to minorities; and percent of all jobs, 20 percent 18 of the 100 percent to women. 19 THE CHAIRLADY: Is your question whether 20 minority women are counted --
Counted in the 30. THE CHAIRLADY: Are they two-fors?
Do you count them twice? 70 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
Under FCC Report 395A which we're required to file for all EEO hiring, a minority female would be counted in both columns. I'm very happy to report that Comcast is well in excess of both requirements with a total employment of 47 percent woman and 45 percent minorities in our current work force.
Thank you. Thank you, Madam Chair. THE CHAIRLADY: Mr. Nutter.
Thank you, Madam Chair. Mr. Pardini, I actually planned the ask the government representatives this question, but it's actually in your document so I'll ask you the question. This is in your executive summary number 5, public educational and government access. You 71 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS make mention of the City will loan one of its two government access channels to Comcast pending completion of the system upgrade. Can you explain why?
What we will do is once our system is upgraded, and I'd be happy to go through a presentation in a little bit to explain that upgrade, but upon completion of that upgrade we expect to have significantly more channel capacity such that at some point in time we will have additional channels that to loan it to City's access channel, one of the two, would no longer be necessary.
Currently, when we complete our upgrade, we will be able to offer several hundred channels to residents of this City. At that point, we would be able to return the loan back to the City or at any point during the upgrade upon 60 days notice by the Commissioner.
I guess what I'm trying to understand is why does the City need loan you one of our two government access channels? 72 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
Well, currently on channel 63 and 64 the programming is redundant, it's the same programming on both channels. In order to provide greater programming and more flexibility for our customers, we thought that we would borrow one of those channels until such time as we complete the upgrade and have extended channel capacity.
We might be able to offer additional programming opportunities. I can't speak to what specific channel would be added, it would all depend upon market research at the time.
Well, if the earlier discussion -- I'd like to talk about the broadcast of our various sessions or hearings, but if the earlier discussion carries forward, there will be more broadcasts. I believe the current broadcast is on channel 64, and usually, at least on the system I'm familiar with, there is a rolling screen of all kinds of activities on 63. Now, maybe that are going on on 63 and 64. I don't get much of a chance to watch them. But if there's more activity going on on 64, don't you need to kept 63 for whatever is 73 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS on there right now.
I understand that. If you take one of the channels away, and then there's more broadcasts of City Council sessions or public hearings, then whatever is on there even in a duplicated fashion, there's only one channel then whatever you were watching on the other channel before, you won't be able to see anymore.
And towards that end, our representatives will be happy to work with the Department of Telecommunications to take those scrolling notices and include them on our own community bulletin board on channel 66. THE CHAIRLADY: Or on 60 days notice to give us back the channel that we loaned to you.
That part's not mentioned in your executive summary. 74 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS With regard to the issue of the broadcasts of the various sessions, I do want to say on behalf the Public Property that to the best of my knowledge and anytime that the Department has been asked to broadcast anything outside of regular City Council sessions on Thursday and all of our budget hearings, to the best of my knowledge, the Department has always cooperated. The Department, again, to the best of my knowledge, is not set up for a regular maintenance of watching the affairs of City Council. This is not C-Span. And so we need to make a decision in conjunction with the Department of Public Property do we want to set up an actual unit. It's a financial issue more than anything else. It's not a non-compliance issue, it's not a lack of interest issue or a lack of will, it's a lack of personnel that Public Property suffers from. THE CHAIRLADY: In that regard, Mr. Costello, and I had that discussion today and we've talked about his perhaps needing an additional three persons to provide the kind of service that we believe the Council's deliberations warrant. And I have said to him that we will enter into a series of 75 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS negotiations toward the end of providing permanent staffing so that you don't have a mad scramble each time Council has to have its hearings broadcast. Of course, you have already demonstrated the capacity, the willingness to do the Council meetings. We now recognize that we are expanding and extending the charter and that there would be additional charge involved.
Mr. Pardini, with regard to the previous paragraph in the executive summary, you state the Comcast will roll forward the obligations for public access as outlined in the existing franchise allocation of five channels for public access use and a total 1.35 million for public access facilities and equipment. To the best of my knowledge, the only expenditures from that fund, and I assume this was done by Comcast and the other two providers in Philadelphia, is actually the equipment that has now been the subject of much discussion. Our broadcast facility's right here in the Council chambers. Is that your understanding?
No, sir. The funding for the equipment on the government access channel comes 76 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS out of a fund established in 1986 with the original franchises where approximately either three or $400,000 was set aside along with replacement equipment costs specifically for the government access channels.
Now, is your testimony that 1.35 million dollars for public access facilities and equipment which was put in place at the time, I guess, of the original franchise consummation, that those dollars are still available and that you're just going to continue that same commitment?
Those dollars have been set aside, they are funded, they will be ready when the City decides to move forward.
Do you have any history on how that figure was arrived at?
Unfortunately, I don't. It was a matter of negotiation with the original negotiations agreements. We are reaffirming our commitments for that funding in its full amount:
Only from a perspective of I guess whatever 1.3 million may have gotten you back then what it may -- I'm getting 77 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS ready to get the hook. THE CHAIRLADY: Excuse me one minute. Mr. Nutter, would you forgive us for this interruption and permit the President to recess the Committee of the Whole to a date and time certain?