Thank you very much. I apologize for this interruption and I apologize for the delay in reconvening the Council of the Whole. As most people can tell who are here, this is a very important hearing. The Council Committee of the Whole will be in session for probably several hours after this committee hearing. Councilwoman Clark assures me that this Committee hearing will be over by not later than 7 o'clock probably. So the Council Committee of the Whole will stand in recess until 7 o'clock p.m., which is approximately an hour. Thank you very much. THE CHAIRLADY: Thank you. The Chair now recognizes Mr. Nutter.
Thank you, Madam Chair. Mr. Pardini, we were talking about the 1.35 million. And I guess it's being put in place ten or 78 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS so years ago whatever we could have gotten for that back then is a lot different than what we'd be able to get for it now. Was there any discussion about an increase in that amount given the additional interest in public access, the wide variety of -- even if you do get up to 250 channels, there still might be one other thing that somebody might want to look at and given your presence in our marketplace, 55 percent share, good corporate citizenship and all of that, has there been any discussion about increasing that amount?
Your question is an incisive one. There was much thought and discussion given to the topic reaffirming our commitment. What we found was that the purchasing power of video equipment has in fact gone up significantly such that the equipment that was contemplated to be purchased in 1987 like computer prices today has actually dropped. We could recently in 1994 we supplied the government access channel with equipment. The prices on that same equipment now are some 13 percent less than they were in 1994. So we feel by reviewing a 1986 or '87 video catalog, 79 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS what we've been able to show is that in fact there will be an percent increase in the capacity of 4 the equipment compared -- since it was bought today 5 compared to having been purchased then with the same 6 amount of funding the Public Access Corporation 7 would be able to purchase significantly more 8 production capability than it would have ten years 9 ago. 10
And just for the 11 record while you're here, the process that we're going through, and please don't give us the long drawn out version of it. Comcast, as is its right, it's my understanding that there are two methods of cable franchise renewal according the FCC guidelines. There is a formal process and an informal process. You've chosen to go the informal process route, is that my understand?
And according to that process there is a minimum requirement of n one public hearing?
And for your purposes and on behalf of the Department of Public 80 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Property, this is that one public meeting?
Yes. And in addition to the efforts of the law department, Comcast has helped to publicize this meeting by airing notice of this meeting for five days in the past week between 7:00 and 9:00 p.m. on our channel 66 local origination.
Can you get us a copy through the Chair -- you make reference to customer service standards to comply with NCTA, which I do not what that is, and FCC, and I do know what that is, customer service standards. Could you supply that information to us?
I'll be happy to supply our information on our compliance with that. That's the National Cable Television Association standards. They are standards with respect to how quickly we answer our phones, how fast we respond to requests for installation and service, how we do on resolving outages as quickly as possible.
Lastly, on your point number 12, basic tier rate freeze. What type of programming or what level of programming is on your basic tier level of service? 81 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
This tier is called our limited basic tier. It's $10.07 per month currently and it includes channels which includes crystal 5 clear reception of off air and tennis signals like 6 3, 6, and 10 and others as well as all the access 7 channels are on this tier as well. 8
Government access, 11 educational access, Comcast channel 66 is on there 12 and public access would be on there as well if the 13 City were to move forward on that. 14
And how did you -- 15 and it's certainly a nice thing. How did you decide 16 on the rate freeze to March 1999, is that about a 17 nine-month time period? 18
Nine months from the point 19 of now yes. We have not increased this rate since 20 late 1997. This rate is a rate which is regulated 21 by the FCC. And normally we would be allowed to 22 increase this pending their formulas for 23 inflationary increases. We're foregoing that 24 through March of 1999. 25
Was there any 82 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS discussion about lengthening the rate freeze, or was that subject to negotiation or you just decided that as part of your package?
It was a subject of much discussion, and we felt that March of 1999 was as good as we could go through at this point in time.
Thank you, Madam Chair. THE CHAIRLADY: May I just clarify one point that Michael raised, Councilwoman Miller, before I go to you? With respect to the notice, clarify the notice requirements. There were two notices of this hearing published in local newspapers, one ten days in advance to comply with FCC regulations, and one five days in advance to comply with the City Council normal notice requirements. Is that correct?
Yes. THE CHAIRLADY: And in addition to that, you ran it on your channel?
Thank you, Madam 83 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Chair. I want to follow-up on a question regarding the basic service and the freeze. The real expense is not the basic, it's with the premium channels, and I'd like to know is there anything you can do to hold the cost on the premium or Pay-Per-View? And a second question is when you expand to 250 channels, what will basic look like? If basic has channels now, what will the estimated 12 cost be? 13
Thank you for the 14 opportunity to clear some of those things up. 15 Comcast has worked long and hard to provide 16 affordable programming options for all of its 17 customers. In addition to a 26-channel limited 18 basic tier, our full basic package consists of in 19 excess of 75 channels. Our limited basic tier is 26 20 channels, no converter is required. It is designed 21 to be the most affordable service for residents of 22 this City. 23 THE CHAIRLADY: But, Mr. Pardini, her 24 question is what will that most basic tier look 25 like. 84 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
We anticipate keeping our basic packages between 75 and 80 channels. The channels up to 250 that we have contemplated or calculated based on the frequencies we will expand to will largely be optional, and based upon the desire of the customer to subscribe to additional services. It is not Comcast's intention in any way to force additional programming down to its customers.
So then the cost will pretty much be the same because they can still get basic channels and then take the option to 14 get an increase. 15
Yes. All of our basic 16 rates, the limited basic rate and the preferred 17 basic rate for the 75 channels are regulated under 18 FCC regulations. 19
Who controls the 20 cost of Pay-Per-View or premium channels? 21
That is solely a pricing 22 decision made by Comcast. One of the things that we 23 were most proud of is that with the advent of 24 Comcast Sports Network, we were able save many 25 customers the expense $14.99 a month for Prism just 85 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS to get the Phillies and the Flyers and the 76ers just by taking Comcast Sports Net and putting that on basic, we made accessibility to the local sports team in what is a crazy sports town accessible to everybody.
I have a couple more questions. THE CHAIRLADY: Please proceed.
On of your appendix or contract or whatever, there is a provision in there talking about the trimming of trees.
Now, it just doesn't seem to me that it's going to work out all that well because unless you discuss -- and I guess that's my question. Have you talked to the Fairmount Park Commission for putting together a time frame from when you request tree trimming until when it's done, because right now that's a long, slow process.
I agree with you. Let me put your mind at ease with respect to tree trimming. On an ongoing basis Comcast does not engage in any 86 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS regular tree trimming program. We rent our space, our wires rent space on the poles owned by either PECO or Bell Atlantic. It is their program to do any necessary tree trimming that may go on an ongoing case basis. Comcast does not engage in that. The only time that we would get involved in a tree trimming would be if there were a particular installation on private property and we would be dealing with the property owner on that.
So really PECO and the City will do the actual trimming, you will just make the request?
Well then that's my question. Around the request, from the time it's made to the time it's completed, what kind of impact will that have on service if it's not done in a timely fashion?
I'm very lucky to be supported by a number of innovative engineers who've been known to get around more than one technical problem, so there should be absolutely no impact on service.
Okay, that's it. 87 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Thank you. THE CHAIRLADY: Thank you very much. Let's talk about MBE, WBE. Have you set goals for each of the areas that comprise your service area?
Our proposal sets forth goals for both areas. Our capital spending and operating expenditures now at this point are consolidated for both areas. Our goals of 38 percent of capital expenditures for minority business enterprises, 10 percent for women business enterprises, and we've also set goals on an ongoing basis out of our operating expenses of 22 percent for MBE's, I believe, and 10 percent for women-owned enterprises -- 32 and 10, I'm sorry. THE CHAIRLADY: Now I'm confused. What is it?
It is 32 percent of operating expenditures for minority business enterprises and 10 percent of operating expenditures on a going-forward basis to women owned certified enterprises. THE CHAIRLADY: So it's 32, not 38.
It is 38 on capital 88 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS expenditures. THE CHAIRLADY: On capital. And on operating it's 32 and 10, 32 percent for minorities and percent for woman? 6
Yes, on operating 7 expenditures. 8 THE CHAIRLADY: On operating? 9
32.5. 10 THE CHAIRLADY: 32.5, all right. I want to talk about the revolving loan fund, the PCDC loan fund for small business. Would you tell us something of its history and how it operates.
Sure. The Comcast loan fund operated by PCDC is one of our best success stories. It began with the $250,000 grant. The funds that have been generated now total on its most recent reporting over 3.4 million dollars has been loaned out to minority and women owned certified enterprises in the City of Philadelphia. Under our proposal, and thanks to your great help, we've been able to expand that program and increase it to $500,000, an amount of $250,000 per area. 89 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS THE CHAIRLADY: Now, you say that through rolling over and paybacks you have been able to lend out the equivalent of 3.4 million dollars. What's been your experience, though, have you had a lot of trouble with defaults, and what has been your experience? How many people have you loaned to?
James Jackson, the executive director of PCDC is here and perhaps in his testimony he can speak more authoritatively as to the number of loans that have been generated. I am aware that it is an extremely successful loan fund with a default rate below 2 percent, about 1.6 percent. Only one of the loans has ever defaulted on this. You have to recognize that these MBE and WBE firms often times this is their first loan. These are for people starting new businesses. It's not just for cable activities. It's been expanded for any business operating under a government contract here, and often times this is their first source of financing. The delinquency rate has been minimal. THE CHAIRLADY: Fine. Are you going to tell us about --
Actually, I would like to 90 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS tell you about a lot of things. I have a short presentation that I can -- THE CHAIRLADY: Well, why don't you do that and you may give me with the pictures and I won't have to have so many words.
Okay. Gentlemen, if we can fire up. THE CHAIRLADY: Ladies and gentlemen, if any of you are here for the L & I that was recessed until 6 o'clock, please be patient. Between the end of this meeting and the beginning of the Committee of the Whole, we will reconvene L & I for purposes of reporting back to you. So keep the faith, we're going to get to you.
On behalf of Comcast of Philadelphia, I'd like to take a few minutes here. This is about a 15-minute presentation. We'll run through it quickly. It will go through the points and it includes a short video on some of our local programming efforts. Joining me today is Stephanie Lowe, our Director of Community and Government Relations; Cilio DeCosta, our Director of Engineering; and Doug Gaston, our Deputy General Counsel. As I mentioned 91 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS before, I'm Ed Pardini, Vice President and General Manager. Comcast has a long association with both Philadelphia and a large presence in the Delaware Valley. Our corporate headquarters is directly across the street at 1500 Market Street and we employ over 1200 full-time employees in the Delaware Valley. This is also -- we employ 1600 part-time, 1600 part-timers employed basically through CoreStates Center. And beyond just the cable division, there is an entire Comcast family of companies operating under the Comcast Corporation here in the Delaware Valley. This includes QVC, our cellular operations, E Entertainment Television, and of course the brand names, Flyers, 76ers, as well as the Phantoms, and our newest member of our corporate family, Comcast Sports Net. Comcast has been a long-time supporter of our neighborhood community. We've been operated with Philly Cares wherein the Comcast employees have renovated public schools and painted. Town watch groups receive over 500 free cellular phones. We've adopted the Powell Center for renovations and volunteering. And we've extensively worked with 92 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Habitat for Humanity on fund raising campaigns. In the educational community, Comcast is involved intimately with cable in the classroom where over 500 hours of programming monthly are made available to teachers along with material to help them with their lesson plans. Our 76ers, Flyers and Phantoms all have school programs where athletes go and stress the importance of staying in school. Scholarships: Comcast corporation donates tens of thousands of dollars each year through the United Negro College Fund, the Police Athletic League, and now the Center for Performing Arts High School, our first recipient on Monday, it's graduation actually. Contributions in the community have been numerous to community groups. In the arts, our chairman Mr. Roberts has donated over $100,000 towards the Media Center at the High School for Performing Arts. We've been a long-time Arts and Business Council sponsor, and our sponsorships for the American Music Theater Festival World Cinema, the Big Picture Alliance, and Freedom Theater have been many and varied. These are just a few of some of our 93 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS employees. I'd also to take the time to introduce to you Barbara Edwards, our Director of Customer Service; Sheryl Williams, our area business manager; and Wayne Tuttle, our area marketing director at our Philadelphia system. 8 million dollars per year in franchise fees which go to the general fund for the City's use for fire, police, and other municipal services. 8 million dollars per year. This generates over a half million dollars a year in payroll taxes to the City and $750,000 in other taxes, business privilege, real estate and the like. Comcast of Philadelphia has 171,000 customers in its Area III and Area IV franchises out of 320,000 homes or roughly 53 percent of the market. We have 1400 miles of miles of plant and we offer 87 channels, seven premium services and three Pay-Per-View channels. Our commitment to education under this proposal is significant. We will make a lump sum payment of $500,000 to the school district. We will be supplying in every school a free cable modem to 94 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS give free internet access to the children.
Our cable in the classroom program continues and we will also be providing all the necessary digital equipment and dedicated digital channel upon completion of our upgrade. Our EEO and MBE commitments are significant. We've talked about our hiring commitments. We've also discussed the half million dollars Comcast loan fund. Our MBE and capital operating requirements are spelled out. And under public access, Comcast reaffirms its existing commitments for funding and channels as outlined under existing public access agreements with the City. I'd like to take this opportunity now to show you a short video on some of Comcast's local programming. )
Comcast provides over 150 hours a week of local affairs programming. If we can switch back to the PC, I'd like to talk for a moment about the system upgrade and tell you about their activities there for just two minutes. 95 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Our upgrade involves the placement of fiberoptic facilities throughout the City. We'll begin by designing a fiberoptic ring that will extend out towards our facilities both in Chestnut Hill, Kensington and on to -- the design of this is such that if our ring is broken at any point in time, the signal would be fed from another area. This makes our system far more reliable. In upgrading the system, we're talking about upgrading 750 megahertz, it's a five-year program with 12 million dollars involved. Currently about 20 13 percent of our system has 750 megahertz capability. 14 Over the next five years, because of our fiberoptic 15 backbone, we will be able to upgrade our system in 16 all areas of the City regardless of any kind of 17 structural, socio or economic backgrounds. Over the 18 five-year period we'll work in all areas until we're 19 done. These services will include digital TV, as a 20 result of this, improved picture quality, added 21 channel capacity, increased reliability, and finally the availability of internet access to all residents of Areas III and IV. Also included in our proposal is a $700,000 ATM network for police and fire. All 44 96 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS police and fire locations in the City will be wired for data transportation.
Mr. Pardini, I'm sorry, what do you mean by ATM network?
It does not mean that we will give you a card and you can take $700,000 out of our ATM.
In technical jargon it's an asynchronistic transfer mode network. What it means is a method transporting data from point to point. We'll be able to supply all kinds of transportation opportunities for emergency services.
So that's not to be confused with what most people know as an ATM network, which is money access machines?
Absolutely. It's completely different. THE CHAIRLADY: Isn't it more often thought of as IDD?
I have not heard the term IDD. I'll pass on that one. THE CHAIRLADY: No extraneous acronyms, 97 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS I take it back.
It's probably the one that hasn't been taken yet. One of the most cost saving features to the City is our proposal for a bidirectional video network for the prisons. What this means is that from the prison complex in Northeast Philadelphia we'll connect the fiberoptic cable wires to our Wayne Avenue headend and then down here the City will take it from on Wayne Avenue facility to the Justice Center. This will allow for video arraignments and considerable cost savings to the City. To review, our comments: An upgraded system to 750 megahertz, the police and fire Inet, the bidirectional video for the prison, we're reaffirming all our out programming and funding commitments for public access, a limited basic rate freeze through March of 1999, increased loans available for the PCDC, and MBE, WBE spending. In a reaffirmation of the three R's, now to become the four R's, reading, writing, 'rithmatic and renewals, we'll be paying $500,000 to the school district cable modems and digital channels all for the school 98 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS district. On behalf of Comcast Corporation, I want to thank you for your time today. Any questions? THE CHAIRLADY: Thank you. We apologize for rushing you through that presentation, but this has been such a jam-packed two or three days with two or three more to come. Let me ask you if you can briefly outline for us the material differences between the proposed renewal agreements and the original agreements? Just those that are material, sir.
I think probably the material changes in terms would have to do with the loan of the government access channel, the reaffirming the three existing college channels. There was a fourth at one point, Temple was programming, that is no longer contemplated in this agreement. The prison network is something that we've never done and will be a first in this area. Those are by and large the differences. Most everything that was in that original agreement has been reaffirmed and carried forward. THE CHAIRLADY: Questions? 99 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
Yes. Thank you, Madam Chair. Mr. Pardini, is there any cost associated with this bidirectional network video for the prisons?
Not to the City, no. The entire network is maintained and operated, constructed by Comcast for the City.
And you also make in your $500,000 -- did you say a one-time cash grant?
Grant to the school district to be used for their communication needs as they see fit.
One of their two educational access channels will become a closed digital channel. In essence, digital TV on a closed circuit basis for the school district to use for educational programming. This would be programming that they would be able to offer in every classroom. Virtually every classroom in the middle schools and high schools has been wired for cable at this point in time over the last ten years. Now, what this 100 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS will do is give them a closed circuit digital channel for educational distance learning applications. THE CHAIRLADY: How does the school district feel about it?
I think from the testimony you may hear today, you'll find that they're very happy about these advancements. THE CHAIRLADY: Thank you.
When you upgrade your system to a digital network, is that also with the assumption that people will have a digital TV? Is this the high definition television, or is that a totally different issue?
Okay, then don't go into it. When we were talking about the public access earlier and the 1.35 million dollars, you were a making the argument that given the price drops over time that purchasing power may actually increase; does that analogy hold true for if you have a digital network, then I assume that public 101 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS access would have to operate in a digital access as well? Isn't that equipment fairly more expensive?
No, actually they won't necessarily need to operate in a digital environment. Our commitment is for five analog channels, so the existing television production equipment that's available now would be totally compatible with our network.
The five public access channels are going to be part of our basic service which are analog delivery system. The enhancements, the additional channel capacity comes through digitals. We will supply each customer with a box that can handle both analog and digital, via our customers will not need a special TV to do that.
So depending on what kind of service you have determines whether you're on the analog system or the digital system?
Yes. If you are a basic customer, a limited basic customer, you'll be receiving analog signals just as you are today.
Why don't you just 102 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS have one total digital network.
A lot of it has to do with the equipment that customers may or may not want in their homes. Some people do not necessarily want a converter in their home. By having a basic channel --
Doesn't everybody have a converter in their home today?
No. Our limited basic customers, of which there are approximately 6,000, do not require a converter. The wire goes right to the back of the TV.
The one thing I do have to put on the record, and maybe we didn't discuss this, although I think we may have some time ago. Part of your presentation, and maybe it's just because you feel it's a significant item for you, is when you put up the figures on what I guess you return to the City by way of the franchise fees which on its face would seem to be a great number and I'm sure of which you're very proud. The 103 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS reality, though, that that is not actually Comcast's money. Doesn't that actually come from the customers who have a franchise fee line item on their bill? They pay you the money, you transfer the money to us; that's not Comcast's money, that's the customers' money, right?
It is collected by Comcast from its customers based on business that we conduct. So in similar to a sales tax or other tax based on the revenues that are generated, it is collected from the customer. It's not necessarily Comcast money; it's collected from our customers.
I understand. But for the uninformed, the people that know the intricacies of the franchise arrangement, there's a 5 percent franchise fee that we're allowed to collect based on your revenues. You then pass that 5 percent tax, if you will, or assessment on to the customers so that every month on their bill there's a franchise fee. The customer pays the bill, you take the 5 percent, ship it to us, and a quarterly or annual payments. And but for all the other things that you are doing, and they are to your credit or they're coming directly from the company, 104 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS to say that you're turning over, what is it, four million dollars?
They're not the actual revenues of Comcast as if you are making some contribution to the City of Philadelphia; you are returning the money that you collected from the customers on franchise fee, right?
That is correct. To put a historical perspective when the franchise was first awarded, the franchise fee was built into the company's rates. It was in 1993 when the FCC issued its rate regulations that cable operators were -- cable operators delineated the franchise fee on the customer's bill.
Certainly has also come as a result of numerous complaints from customers who couldn't figure out what their bill is about or why they were being charged for different things being on the same system in their house when they had two or three TV's. You unbundled the bills and as a result of that, the franchise fee sat as a separate item so people could see what was going on. 105 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
Thank you. Thank you, Madam Chair. THE CHAIRLADY: Thank you.
Madam Chair, I have a couple questions. THE CHAIRLADY: Councilwoman Miller.
I have a question. Will one modem allow various classrooms to get the internet?
One modem has a capability of operating up to about eight or ten PC's. Its best application in a classroom setting would be in a school's computer lab. We have several that are up and running right now at Father Judge High School and at George Washington High School.
Also, it says PCDC administers loan fund. What is the maximum amount of loan a business could get? Are you involved in that in any way?
No involvement in who gets a loan or how much. We simply provide the money.
Okay, good. THE CHAIRLADY: Then who does? 106 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS
PCDC administers the whole thing. I need to know because I see all the signs in back that says "Public access television now." Weren't we just talking about public access? I guess I don't understand the issue. THE CHAIRLADY: The commitment in the renewal application is to retain the same public access responsibility as you had in the beginning. It is neither larger nor smaller, is that correct?
But isn't it so, though, I think we need to be clear what we're talking about. Government access, public access, you have five public access channels that are not on the air because there's no studios that have been built and there's no City operating funds to make it work? Could you explain, because I thing that confused some folks here?
Comcast simply provides the funding. The studio, the personnel, the operating budget is all approved when the public access corporation is incorporated by City Council. So Comcast will support whatever City Council's 107 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS decision is with respect to public access. Our obligation is to provide up to five public access channels.
But they are not today of this data available because government has not done their part of the deal?
I have one last question regarding the digital services. Does that mean that in the future you'll be similar to a Prime Star or some of those other satellite disks, digital satellite disks?
You're absolutely correct with your question. We will be competitive with the hundred channels that they are offering.
Thank you. I don't have anymore questions. THE CHAIRLADY: Thank you very much. As enticing as it would be to ask you many, many more questions, I have a short space of time and a long list of people who have signed up and who wish to be heard. So if all the Members of the Committee have 108 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS exhausted their questions, I'm going to ask this group if they will move aside so as to a permit another group of people to come and be heard on the subject of renewal of Comcast franchise agreement.
Thank you for your time today. THE CHAIRLADY: Thank you very much for your presentation. I wish we could have seen it all. Some day we'll just stop by and look at it. Christina James Brown, Sergeant Dan Buckley, Ernie Burgos, Kathleen DeCrescio, and James I. Jackson, Jr., please join us. We're going to bungle you so as to get you on and get you off. Yes sir?
My name is William Butcher and I'm not on that list and I called in. THE CHAIRLADY: Sir, I understand that. I didn't call all the people on the list, I called a few. You're on my list. Are none of the people I called here?
Councilwoman, I'm Stephanie Lowe from Comcast Cable, and Mr. Jackson is here from the Minority Business Enterprize Council. The others I believe had to leave early, 109 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS but you have their written statements to be submitted for the record. THE CHAIRLADY: Fine. Thank you very much. THE CHAIRLADY: Mr. Jackson is here. How about Raymond Schwiegel? Elliot Shelkrot?
Councilwoman, neither of them are here either, but we do have some others who you haven't called yet who are here. THE CHAIRLADY: Please proceed with your testimony. Good afternoon.
Good afternoon, Councilwoman Clark and Councilmembers. My name James Jackson. I am the Executive Vice President of the Philadelphia Commercial Development Corporation, not IMBAC. I want to make that very clear. THE CHAIRLADY: Who are you?
Executive Vice President with the Philadelphia Commercial Development Corporation. THE CHAIRLADY: PCDC?
Yes, ma'am. THE CHAIRLADY: And if we had questions with respect to how the Comcast Small Business Loan 110 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Fund were administered, you would be the person to whom we should direct those questions, correct?
That is correct. THE CHAIRLADY: Please proceed with your testimony, and we will have some questions, I believe.
Thank you. I am here today to provide testimony on behalf of Comcast Cablevision to demonstrate its support of the minority business community and Philadelphia by way of the Comcast Loan Fund. In June of 1987, Comcast Cablevision of Philadelphia established the Comcast Loan Fund at PCDC with a $250,000 grant for the purpose of providing loans to minority and women owned businesses on their contracts with Philadelphia's major cable franchises. Later the fund scope was expanded to allow financing of City or other public contracts or subcontracts. Under the fund agreement, PCDC performs outreach activities and advertises the fund, interviews perspective applicants, performs credit evaluations, prepares loan approvals, secure loan approvals through the Comcast Loan Fund Committee, and closes services and 111 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS collects Comcast Loan Fund loans. PCDC also provides free business consulting for each of the fund borrowers on an ongoing basis. THE CHAIRLADY: Mr. Jackson, permit me to interrupt your testimony for one minute to do a housekeeping chore. Councilwoman Miller.
Thank you, Madam Chair. I must leave the Council chambers for a few minutes and I would like to be recorded as leaving my aye vote to suspend the rules for the first reading at the next Council session and for all amendments. Thank you. THE CHAIRLADY: Thank you so much. Thank you, sir. I apologize for the interruption.
Not a problem. To qualify for financing and technical assistance, a firm must be certified by the City's Minority Business Enterprize Council as a minority woman or disabled owned business. The firm must have a contract or anticipate a contract award with a Philadelphia-based public entity such as the City, a City housing agency, the airport, the school 112 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS district, the Convention Center, SEPTA, or another City, State or Federal agency. The fund also finances subcontracts arising from public projects. In his 1991 Affirmative Action ruling pertaining to the Philadelphia Convention Center, Judge Bechtle warned that Public Authority should consider providing low-interest loans, instruction and technical assistance to minority and woman owned contractors as a part of their efforts to meet affirmative action goals. We are pleased to say that the Comcast Loan Fund successfully does all of this. Until recently, the Comcast Fund was the only loan pool in this City targeting revolving lines of credit to minority and woman owned contractors. The fund's success has been growing and loan requests far surpass the fund's current capital. With additional dollars, the fund will be able to meet the current backlog, will provide funding to new contractors, and will also be able to increase loan amounts to borrowers whose financing needs surpass the current loan limits. For the first 11 months of fiscal year 1998, a total of nine new Comcast loans were 113 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS approved in the aggregate amount of $395,000. As May 31, 1998, loans were outstanding with a 4 combined balance of $252,000 and loan packages for 5 three new applicants and four loan renewals were in 6 process. To date, a total of 76 loans surpassing 7 3.4 million have been approved by the Fund. Total 8 loan disbursements have amounted to 3.6 million with 9 nearly $700,000 or 20 percent of this fiscal year. 10 And just in summary, Comcast Cablevision 11 have demonstrated strong support of minority 12 businesses through the Comcast Loan Fund. Without 13 this fund, some of the firms served would have gone 14 out of business, others would not have been able to 15 achieve growth or demonstrate their potential. 16 Due to the Comcast Cablevision's support, a favorable vote with regard to their franchise extension is requested and recommended. THE CHAIRLADY: Thank you, sir. Are you going to provide us with your text so that we may put it in the record?
I have copies here, Madam Chair. THE CHAIRLADY: Thank you. Does your text give any analysis of the 114 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS loans you have made by size, type, whether they're minority women or disabled?
100 percent of our loans are to minority and women contractors. And the loan size, the largest loan -- again, we do a hundred percent of revolving credit loans and the maximum loan is $50,000. THE CHAIRLADY: The rules by which you administer the loan fund has set 50,000 as the maximum?
Yes. THE CHAIRLADY: Now, have you kept separate statistics on which of your loans went to minorities and which went to woman? Can you tell that?
Yes. That I can provide for you. THE CHAIRLADY: We'd be interested in that. Do you administer any other fund other than Comcast?
Well, not that Comcast 115 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS funds. Through PCDC we do have three other loan programs. THE CHAIRLADY: And do they operate about the same way as Comcast?
We have one other revolving loan program called the Housing Contractors Program that has a revolving loan program that lends up to a maximum of $125,000 and that lends to any contractor who is engaged in a housing-related contract. The other main loan program that we have is called the Small Business Revolving Loan Fund, and that is a term loan program with the highest dollar amount being a hundred thousand dollars. And there are other restrictions with that in that the dollars to the Small Business Revolving Loan fund are used, CDBD are used so there are other restrictions that apply. As Comcast's private dollars, some of the restrictions under CDBD do not apply. THE CHAIRLADY: What is the current interest rate charged on a Comcast loan?
On the Comcast Loan Fund the interest rate is 5 percent, which is 116 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS significantly below the prime rate, which is 8 1/2, percent. And typically, this type of customer would borrow prime plus one or two percent. So we're 50 to 60 percent below a market rate, if you will. THE CHAIRLADY: Questions?
No questions for the Chair. I need to put a question on the record for the government officials that were here earlier. THE CHAIRLADY: Wait a minute. Do you have questions of this witness?
I'm fine. THE CHAIRLADY: Thank you. Thank you very much, sir. I would appreciate you provide us with an analysis of the loans that you have made according to the categories that we've outlined.
Thank you, Madam Chair. For Commissioner Perez and the other Department of Public Property employees, I would like to get a written explanation as to what the problem is or has been and how you plan to solve it 117 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS in the future with regard to the public access corporation, what is the needed funding on the City side. I will say, Madam Chair, there is one element of discomfort in the current hearing with regard to public access in that it is a discussion that should take place in the context of all three cable franchises. We should have the public access up and running in all four areas or City-wide similar to what we did when the City system that was put into place such that our deliberations could be broadcast. All three of the companies participated in those discussions and we made sure that all citizens throughout the City could see whatever proceedings they might be interested in. So I would like to have a much clearer and better understanding of what the Department of Public Property and the City administration plan is for completing our part since it's obvious that the various cable companies did sometime ago their part. There have been changes in federal law that did impact what we do. What I'd like to know is what we plan to do coming out of these contract renewals. All three cable companies contracts are set to renew somewhere 118 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS within the next two to two and a half years. Thank you very much. (Applause.) THE CHAIRLADY: Thank you. Are you going to testify, ma'am? Please come to the table and give us your name. And while you're coming may I say that being put in the record as though set forth fully by their presence is the testimony of Christine James Brown, of Sergeant Daniel Buckley, of Ernie Burgos.
I'm here for Mr. Burgos. THE CHAIRLADY: We'll hear his testimony now then.
Hi, my name is Marilyn Carraccio. I'm an Administrative Assistant to State Senator Shirley Kitchen. I have the honor today to testify on behalf of my coworker Mr. Ernie Burgos. He is also an Administrative Assistant to Senator Kitchen. THE CHAIRLADY: Excuse me. I'm going to ask you to go right in the microphone because we can't hear you.
Unfortunately, Ernie 119 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS today was in Harrisburg working on another project with the Senator, but my purpose here today is to inform you of a very important youth program that Comcast helps Ernie finance. His program is called the Youth Leadership Development Program. The purpose of his program is to develop and strengthen leadership skills by incorporating field trips and workshop presentations included in the regular academic schedule of the students. These activities enhance the leadership experience of the students by instilling in them a deeper knowledge of leadership and the skills required to be effective leaders and role models in their community. There are six workshop presentations over the course of the school year, in particular he tries to get Latino and African-American professionals to discuss topics that serve to expose the students to different issues and elements of the world around them. A series of six field trips also take place during the course of the program. They serve to provide the students with a bridge to understanding the historical, political, cultural and educational importance of their local community as well communities outside of their own. 120 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Each year Comcast Cablevision of Philadelphia has been the prime sponsor of the annual field trip to the to the State Capitol in Harrisburg. These visits to Harrisburg give our students the opportunity to meet with their State Senator and State Representative. They also get to see first hand how their state government works. Comcast has been a supporter of the Youth Leadership Development Program since its inception in 1990. We have come to rely on their commitment to the youth of Philadelphia many times over the past nine years. They have become an essential part of this program both financially and as an excellent role model for inspiring others toward community involvement. I would urge the Members of City Council to vote favorably for the renewal of the Comcast Cablevision franchise. They are a true asset to the Philadelphia community with particular attention paid to the youth of our City. Thank you so much. THE CHAIRLADY: Thank you very much for your patience and for your testimony.
You're welcome. Thank you. 121 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS THE CHAIRLADY: The Public Access Coalition, Philadelphia Community Access Coalition. I understand there are going to be five speakers. Please join us here. Good afternoon.
Good evening, Councilwoman Clark and other Members of the City Council. My name is Marlene G. Patterson. Shall I spell it? M-a-r-l-e-n-e G. P-a-t-t-e-r-s-o-n. I'm a member of the Philadelphia Community Access Coalition. Will the members of the group please stand? (Applause.)
I am here to speak briefly and in support of public access cable television and the establishment by the City of a nonprofit corporation to operate the same. THE CHAIRLADY: Dr. Paterson, are you here to speak in favor or against the renewal of this application? And then anything else you want to tell me.
In favor of the application providing the public access commitments are met with a reasonable increase according to 122 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS inflation for the price associated with it. THE CHAIRLADY: But, Ms. Paterson, you heard their presentation. Their presentation is that they renew their commitment as it is, and you are now negotiating for an increase. It's not up to me to negotiate for them, but I heard their testimony. Their testimony is we're putting it in the way it used to be.
We are not in favor of that. THE CHAIRLADY: So you are here to be heard to speak against the renewal because it does not have the increase that you believe is necessary?
That's correct. THE CHAIRLADY: All right. I just want to be able to characterize your testimony and know what I'm hearing.
Thank you for clarifying that. We believe that public access cable television is important to support the free speech provisions of the Constitution. Democracy is one of the most precarious forms of government, requires continued vigilance and updating of the 123 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS methodologies to keep pace with the existing and emerging technologies. Consequently, the first amendment writes of free speech in this age of telecommunications, we believe must rightfully now include community access to cable television and free internet and whatever new technologies will be developed. It's critical to be alert to the forces that continue to try to ghetto-ize a large segment of the community which by virtue of marginal finances or limited discretionary funds cannot provide for private access. The public access television, we believe, is also vital to media literacy which is important to foster education, exchange of information and jobs. And last of all we believe that television as a powerful medium shaping our lives must continue to have a public space that is free from commercial influence and interest, just as the visionary 19th century citizens of Philadelphia had the vision to set aside public space for Fairmount Park, an environment that can be enjoyed by all and is essential to the better quality of life. In such a similar way it is important to create public 124 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS electronic zones that can be enjoyed by all and will have similar benefits over future generates. Others will speak briefly. THE CHAIRLADY: Thank you very much. Just a minute. Are there questions by Members of the Committee? There being none. Good afternoon, sir.
Good evening. THE CHAIRLADY: Okay, you won that one.
I been working all day. THE CHAIRLADY: So have I. I feel like I been carrying you on my back all day.
Again, my name is William Goldsby, that's spelled G-o-l-d-s-b-y. And I'm from North Philly. I'd like to take this opportunity before I get started with my testimony -- THE CHAIRLADY: Would you just bring the microphone down so that you're speaking directly in it?
I would just like to share an appreciation for Ms. Miller Donna Reed Miller office. I'm from her area. Her and her staff -- THE CHAIRLADY: Mr. Cohen, I'm trying to 125 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS help you here. Bring it closer and lean forward.
Let me start over again. THE CHAIRLADY: No, we got it from there. You expressed your appreciation for Councilwomen Miller whose district you live in.
Correct. And I just wanted to make that a public statement. THE CHAIRLADY: All right, we appreciate that. Unfortunately, she's not here, but I will pass it on to her.
I hope you do. Again, I'm here to oppose the previous presenters. My background is I've been in Philadelphia for about ten years. I'm from Selma, Alabama. I want to share my purpose first. My purpose is to ask the City Council to put forward a board of directors that would govern a public access channel, to put forth a board of directors that would govern a public access channel. And my vision if I was to see a public 126 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS access channel in place in Philadelphia, I will see programs such as children activities that is put on by the public, I will see different other cultural activity put on by the public, I will see educational programs that will begin to educate people about racism, sexism, and all of the other "isms" that are here in our society. A board of directors that would govern a public access channel means that the citizens who are on that board will be in a position to make decisions about what is being aired. The type of programs that I'm involved in that are good programs but notwithstanding other programs, one is I work with Echaris (ph) youth in North Philly. I also work with people who have been victimized by crime, and I also work with a commission that was formed by some of the Supreme Court Justices, the Pennsylvania Futures Commission. Again, the work that I am doing I feel is very, very, very, very important. It is work that is for the public and I feel that this type of work should be made available to citizens through a public access channel. Again, I was born in Selma, Alabama, and 127 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS I can remember the Jim Crow Era. And as I reflect back on the Jim Crow era, my interpretation of that time of the period in the south was that African-Americans did not have a voice, did not access to the decision-making process, and was disenfranchised. And as I'm seeing today that we're talking about public access, to me today in Philadelphia it seems to me that we are now in a technological Jim Crow era where the public does not have a voice, free access to the media. Again, I'm here to ask City Council to facilitate and design and create a board of directors that would govern a public access channel. Thank you. THE CHAIRLADY: Any questions of the witness?
I think the observations you made in the speaker before you about the need for public access are very important statements. I have only one disagreement with you. I think the public community ought to get together and submit to the City Council and to the Mayor suggestions for the board of governors. Don't trust government to do the public's work, because the days when government 128 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS could be relied on to act on behalf of the people are long ago gone. There may be some public officials who have a public interest, but today often times government seems to move against the public rather than for it as witnessed by the bill 7 we're going to have hearings on tonight. So I'd like to suggest that the community ought to get people together. Madam Chair, was there an explanation as to why there is less funds for public access now than there were originally? Because I remember when Comcast -- THE CHAIRLADY: They're not less. They are exactly the same. Marlene Patterson is against the renewal of the franchise because it does not have what she considers an appropriate increase. She is not complaining of it being cut.
Well, the original amount was made many years ago when Comcast was a struggling company, not being sure whether or not it was going to get a franchise at all for any part of the City because there was a fair amount of competition. And it would seem to me that Comcast's present position as compared to its financial 129 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS position when it originally set the figure are two worlds apart. THE CHAIRLADY: While I don't disagree with you, Mr. Cohen, this is neither the time nor the place nor are we parties to that deliberation. We are here to hear from the public in as fulsome a method as we can consistent with a very tight schedule what they think. Now, if they want to negotiate with Comcast, I'm not going to stop them from doing that.
Well, I would like to hear their views and therefore was very pleased to hear the expression -- THE CHAIRLADY: That's we're here for. We're going to hear from a substantial list of them.
I would like to respond to that. I want to respect the time, but I definitely would like to respond to it. THE CHAIRLADY: But I want you to respond to it in the tightest --
Please, I will. THE CHAIRLADY: Consistent with a very long list which I have access to which you do not.
I trust my City 130 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Councilperson. I do not separate myself from government. I'm very active in making sure that they are accountable to me. That's why I'm here. City Council voted years ago to have a board of 6 directors to govern this process, and 14 years later 7 I'm here holding City Council accountable, and 8 expect that. Thank you. 9 (Applause.) 10 THE CHAIRLADY: Thank you, sir. 11 Please introduce yourself to the record. 12 We thank you for your patience. Spell your last 13 name for the stenographer. 14
Good evening. My name is Gretien Claushing, C-l-a-u-s-i-n-g. And I'm vary pleased to be mere this evening and thank you for this opportunity. I'm a member of the Philadelphia Community Access Coalition, and my day job as the coordinator of the Philadelphia Independent Film Video Association, so I have the opportunity on a daily basis to work with the very talented and skilled film and video community here in Philadelphia. And for that community alone and all the citizens of Philadelphia, I think that it's imperative that the citizens of Philadelphia finally 131 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS be given access to the technology of television and the new developing technologies that were also discussed here today. We've been denied this right for years, and I think it's now a good 6 opportunity for us to sort of take Philadelphia into 7 the 21st century. 8 I want to first address a couple points. 9 I have to say I'm against today's proposal from 10 Comcast for a couple reasons. I think that it's 11 very clear to me that the amount of money that they 12 are allocating for the capital expenses and the 13 setting up of the public access channels at this 14 point just really isn't sufficient. I think that 15 that was an amount that was set 15 years ago, and I do question their arguments about the fact that video technology is more affordable these days. I really have to urge Council to seriously look at these things in this agreement. These five public access channels that we are requesting that you finally get set up should not be analog channels. They should be digital along with the others. In a few years' time we're yet beyond the curb again, and we have an opportunity right now to really set up a 132 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS state-of-the-art facility in Philadelphia and put Philadelphia in the forefront of telecommunications and access to those telecommunications by the general public, and I think that is very important. (Applause.)
I also think that it's very important that in the negotiating for the public access channels, there was no discussion from Comcast or from Council about allocating digital band width also to public access. So I think that there needs some assessment done about this. I don't think this is an informal process. We're talking about a lot of money here. I think there needs to be a much more formal look at this agreement. And I just want to say in closing that there is a very talented film and video community here. I work with them on a daily basis. They're recognized naturally. Their work is broadcast nationally. Their work can barely be seen here in Philadelphia. This would be a tremendous opportunity to highlight the work of those individuals and then for them to provide mentorship to other people from various communities and from 133 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS young people and would thereby create an incredibly strong work force here for, again, making Philadelphia a very attractive City for telecommunications and jobs. Thank you. (Applause.) THE CHAIRLADY: Are there any questions of this witness? Thank you. Good afternoon, sir. How are you?
Good evening. My name is Keith Brand, B-r-a-n-d. I'm an adjunct professor of communications at Ursinis College and Temple University. I'm also here to testify against franchise renewal for Comcast. I've been listening with interest to the plans for infrastructure upgrade and some of the predictions and premonitions about new communications technologies that will be driving economic and social force of the new millennium. It's kind of funny listening to this stuff because it's a bit like praising the canary while the 900-pound gorilla is loose and reeking havoc in your apartment. The introduction of television has 134 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS already fundamentally and measurably changed society in more ways than we can imagine. It's changed the way we teach, it's changed the way interact with our families, and it's changed the way we engage in political debate. It is indeed come to rival the dominant institutions of society for its ability to pass on values and beliefs which served to keep our social fabric together. As a student of communications, I have also read with interest the predictions that surrounded the introduction of cable television back in 1960's and early 1970's. Back then it was referred to as the information highway. Does this sound familiar? We were going to be introduced to interactivity, shopping, banking from the home, all the schools would be wired, education would be transformed, and we would create a global village. These were just some of the promises of cable. It is now 1988, and we are here in a since asking ourselves whether this promise has been fulfilled. THE CHAIRLADY: It' actually 1998.
1998, sorry about that. Asking ourselves whether this promise has been fulfilled. 135 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS The landscape of television surely changed in terms of quantity, but are we better off now, in the words of a politician, than we were back in 1984? Has the proliferation of movie channels, sports networks, music television, pay cable, court TV, cartoon networks, and nostalgic sitcoms made our streets safer, our family's stronger? Has it erased racism and homophobia, cured disease, or made our schools any measurably better? Some will argue that it has exacerbated these problems. Entertainment is now our major cultural export, enduring legacy of a great society. One of the most successful experiments to come out of the sixties cable revolution is public access cable television. It's a very simple idea. The cable companies us the public rights-of-way in order to string their wiring which is their infrastructure. They're given a monopoly to operate in the City. In return they turn over any number of channels back to the community. The community is then given the tools, the training, and the technology to make their own television. Irrespective of content, public access to the medium of television allows people to directly participate in the most important 136 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS conduit for the diffusion of information in history. And yet Philadelphia has yet to institute a public access system. And while Comcast would be the first to wash their hands of any obligation in the public creation of the public access corporation, this is very important, they are currently earning income on these unused channels with Pay-Per-View programming to which we receive nothing. Indeed, if anyone had the foresight to escrow the equipment and capital costs incumbent on these cable companies from the franchise agreements, Philadelphia would have one of the best public access systems in the country. Instead we're left with an empty obligation. Although it has been the responsibility of the City to form the public access corporation, the cable companies share in this burden. We would like to see a commitment, not only from the City, but from each of our franchisees to finally make public access a reality. We would like to see a renegotiation of the capital requirements in the original agreement, we don't think they're enough. These companies bargain for this channels in order 137 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS to receive their monopoly, they should also move forward and actively work with the City for the institution of this system. Comcast has included in its renewal proposal that, quote, "Unused PEG channels will be available for use by Comcast." We should demand that any profits from the use of these channels go to support public access. They're the people's channels and they belong to the community. We're tired of everybody waiting us out, and we don't want to be here in years still lobbying for 13 public access. In the words of Council President 14 Street, "It doesn't take a rocket scientist to see 15 that this is good for the City." (Applause.) THE CHAIRLADY: Are there any questions? Thank you. Are you next, sir. Thank you for your patience.
Thank you. You said something very important tonight, and I will tell you what it is. THE CHAIRLADY: Thank you.
Thank you. Good evening. 138 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS My name is William Butcher. I'm a member of PCAC, but I'm also a lobbyist for the Acquired By Children Civic Educational League, I'm a lobbyist and advocate for the children which to my total would be around 200,000 of all colors, all backgrounds. I would like to say that I'm here to support Comcast and every way I can only if we do what you said, negotiate on our own, Mrs. Clark. Because at this point in time, we cannot look to the City Council, Mayor, or the President of the City Council to keep their word. I'll just go back to the best kept secret in Philadelphia. And the best kept secret in Philadelphia is public access. " And the reason why is because in 1983, somewhere along there, City Council ordained the Mayor and the President of City Council to form the Philadelphia Public Access Corporation. The principle purpose of the corporation agreed to promote and encourage use of public access channels for all citizens of Philadelphia. The corporation shall conduct 139 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS ongoing, this is what they said, ongoing outreach activities to ensure understanding and to promote the use of public access opportunities. The corporation shall foster a cooperative working relationship between franchisees, cable operators, and the public access users. " As everyone know, that was years 10 ago. 11 So Madam Chair, I'm here to ask you and 12 all the others to step down and let the public 13 handle this because we the public are the ones that 14 gives them that 160 to 200 million dollars for 15 entertainment. You, the public servant and others, don't seem to have any intentions of agreeing to this ordinance. Therefore, the Mayor and President of City Council have violated the law. The law states they were supposed to incorporate. The children call them law-makers and law-breakers. That's not a good message to send to the youth. As the others so eloquently stated, how useful this would be for everyone. It's needed for our little kids, especially the ones of my complexion who give so much by being the biggest 140 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS consumer in the City and receive so little. Now, Mr. Pardini, nice man, offered me to take my children out to the Main Line, Lower Marion because they have cable out there, public cable. They have public cable in Jersey. But I wouldn't take my kids out there. We the public spend more money than they do out here. I grant you, those people in the suburbs get the best of everything. They get a cheaper City wage tax. So if you guys got a problem with money, just put them on the same level of taxes you tax us. Give us, which we're going to take anyway I guess, the opportunity to do this ourselves. That's all I'm saying. Lastly, I want it to be known right now that there's going to be a March the kids going to New York or somewhere in September to do a Million Kids March. I'm going to ask them would they mind if starting the march right here at City Hall and at 1500 Market Street and let the world know why in Philadelphia that they have been denied public access. And I thank you. ) THE CHAIRLADY: Are there any questions? 141 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Thank you, Mr. Butcher. Mr. Shelkrot is not here. Mr. Bob Sorrell, Dr. Thuy, you can join us. How about Lee Webster, Gail Williams, and Robert Yancey? Gentlemen, I thank you for your patience. You have been here a long time. I'm fully aware of that. Having waited as long as your have, it takes real nerve for me to ask you to summarize your statement. But if you can give us an annotation -- if you have a written text, we will set it forth fully. But if you could annotate your presentation, we'd be very happy to hear that, too. What Lowell is saying to me is the stenographer already has it. Please identify yourself to the record, spell your last name for the stenographer and proceed. Thank you.
I'm Bob Sorrell, S-o-r-r-e-l-l, and I'm president of the Philadelphia Urban League. I will consolidate. Much has already been said. I just wanted to share with you that since September of 1996, I have served as the Chairman of the Comcast Community Advisory Board. 142 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS It's other people who serve on that, an active capacity advisory to Comcast on matters policy. We've received a great orientation on technology, not only the current technology, but also the technology of the future. We've been involved in customer satisfaction. There's a company that is concerned about customer satisfaction because people can turn it on or turn it off. We've also been involved in employment opportunities. The company shares with the variety of institutions and organizations employment opportunities within the corporation. They are shared, gives the organizations an opportunity to refer people to the corporation for employment opportunities. On a personal note, Comcast has been very helpful to my work in the Urban League. Besides supporting activities, they are also helping us bring National Urban League Conference to Philadelphia as a corporate sponsor. And on June 3rd, they helped us record a forum on economic development which was held at Community College. So I just wanted to appraise you of the fact that there is such a body. It meets quarterly with Comcast, Ed Pardini, Stephanie Lowe, and the 143 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS management of the operations to advise and to consult on a variety of issues, but also to relay to the corporation what people feel and what people are saying about the service that they receive. THE CHAIRLADY: Mr. Sorrell, I asked Ms. Patterson how she would characterize her testimony. How would you characterize your testimony?
It would be in favor of renewal. THE CHAIRLADY: In favor of the renewal.
Yes, ma'am. What point I left out, and it's mentioned in the presentation. I mean, you got a whole lot visually today, but the principals of the corporation, Ralph and Brian Roberts, are essentially Philadelphians. They're here. Unlike when you talk about banking banks that are located in North Carolina and they only operate here, these are people who are here and over the years have demonstrated a commitment to the City at large, but also with Comcast has demonstrated a commitment to diversity from their corporate board all the way down. THE CHAIRLADY: Thank you. Are there any questions of this witness? 144 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Thank you again for your patience. Dr. Thuy, how are you?
I'm okay. THE CHAIRLADY: Please introduce yourself to the record, spell your last name, and proceed with your testimony.
The honorable members of City Council, my name Voung Thuy, V-o-u-n-g, last name, T-h-u-y. I am the executive director of the Indonesian American Council. I have been in this chamber so many times to testify on different subjects. Today I am honored to come out and testify on behalf of Comcast Cablevision because of my firsthand knowledge of what they have done for our community. For the past several years Comcast Cablevision has never failed to support our effort to provide much needed service to multiracial, low income, and this population including refugees and immigrants. And they have done their best to hire Asian and provide employment opportunity to other minorities. As a member of the Comcast Cablevision 145 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Advisory Board, I also have firsthand knowledge of their effort to communicate with different communities in support of different events. Realizing that it's getting late, I would like to conclude my presentation by saying that I'm here today to support the effort to renew their franchise. And for me and as far as I'm concerned, Comcast Cablevision is a community oriented company. Thank you very much for the opportunity to speak. THE CHAIRLADY: Thank you. And thank you for your patience in waiting. Are there questions of this witness? Thank you very much. Good evening, sir. Please identify yourself, spell your last name for the stenographer, and proceed with your testimony.
My name is Robert Yancey, last name, Y-a-n-c-e-y. I'm principal of Germantown High School here in Philadelphia, Pennsylvania. I thank you for the opportunity to be here tonight to speak on behalf Comcast Corporation. I would characterize my testimony to follow as in support of renewal of the contract for 146 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Comcast Cable Corporation. I'm here to testify essentially that Comcast Cablevision is a valuable and continuing partner with Germantown High School. They've done a number of things that have been in support of our efforts to provide a quality education to our students. Beginning this year in September, past September 1997, Comcast Cablevision and its other affiliate organizations came to Germantown High School during the Philadelphia Cares Volunteer Day. They brought in excess of a hundred employees. They fixed up and painted up Germantown High School, and this has had a lasting and absolutely positive effect on the climate and the atmosphere at Germantown High School. Shortly following that event, they assigned 16 of our students who are members of -- they're students within our applied communications and applied technologies small learning communities. They assign those students to different Comcast installations for school to careers apprenticeships. Those students received a valuable work experience. Those students had been profoundly enriched. We're hoping to continue that relationship into next year. 147 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Also, Comcast has provided the services of a number of their employees to give us technical assistance and advice in terms of TV production and set design within our communications small learning community. They've allowed members of their employees still again to come and serve as speakers and presenters at a number of our annual events. For instance, they sent a speaker to your National Honor Society induction ceremony. They sent a couple of people to be presenters at our annual career conference. And most recently, they've committed themselves to underwrite a picnic lunch and a gift for each and every one of our graduating seniors. So these are just some of the reasons why given the generous and continuing support of Comcast Cablevision, I'm totally in support of the renewal of their contract and I'd like to testify that they are committed and continuing partner with Germantown High School. Thank you. THE CHAIRLADY: Thank you, sir. Are there questions of this witness? Thank you. I appreciate your patience. Sir, please introduce yourself to the record, tell 148 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS us last name, spell it for us and proceed.
My name is Lee Webster, W-e-b-s-t-e-r. I'm director of Enterprize Communications for the School District of Philadelphia. The principal from Germantown gave you an insight as to what Comcast is doing outside of the contract. I'd like to give you a little insight of what Comcast and Wade and Greater Media gave the school district inside. Fifteen years ago when the agreement was worked out, the school district received $900,000 from the four cable areas. We've used that money very effectively to create a cable headend which feeds into the two cable channels going out. We have a studio which produces live inactive programming with the schools. It was stated that all schools have access to the cable. They're providing cable boxes which allow access to the different programming cable in the classroom to the individual schools. It's been a long day. I don't want to go into a lot of detail, but I would like to say that I really feel that Comcast has really been a 149 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS community benefactor for the school district and would like to see that continue. THE CHAIRLADY: And you would characterize your testimony as being in favor of the renewal?
In favor of renewal, yes. THE CHAIRLADY: Thank you, sir. Are there other persons present who wish to be heard to speak in favor of or against? Is your hand in the air to be heard, Miss? The call went out. There are none. Thank you very much. You have been a very patient audience and we appreciate you. We have heard you. We didn't engage you in conversation, but we have heard you. You have been eloquent in stating a very simple message and we have heard. Now is the time to do something with all these bills. I need some motions.
Madam Chair, I move that the Committee on Public Property and Public Works adjourn its public hearing and move into a public meeting. (Duly seconded.) 150 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS THE CHAIRLADY: Properly moved and seconded that the public hearing be adjourned. We are now in public meeting. And Councilman Nutter?
Madam Chair, I move that Bill 970777 be reported out of Committee with a favorable recommendation and with the further recommendation that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.) THE CHAIRLADY: All in favor say aye. Then Bill No. 970777 has been reported out of this Committee with the favorable recommendation and with the recommendation that the rules of Council be suspended so as to permit first reading at out next stated session. All in favor say aye. Opposed is nay. So ordered.
Madam Chair, I move that Bill 970793 be reported out of Committee with a favorable recommendation and with the further recommendation that the rules of Council be suspended so as to permit first reading at our next 151 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS session. (Duly seconded.) THE CHAIRLADY: All in favor? Opposes? Then Bill No. 970793 will be reported out of this Committee with a favorable recommendation and with the recommendation that the rules of Council be suspended so as to permit first reading at the next stated session.
Madam Chair, I move that Bill. 970833 be reported out of Committee with a favorable recommendation and with the further recommendation that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.) THE CHAIRLADY: All in favor? Opposes? Then Bill No. 970833 has been reported out of this Committee with a favorable recommendation and with the recommendation that the rules of Council be suspended so as to permit first reading at our next stated session.
Madam Chair, I move 152 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS that Bill 980147 be reported out of Committee with a favorable recommendation and with the further recommendation that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.) THE CHAIRLADY: All in favor say aye. Opposes? Then Bill No. 980147 will be reported out of this Committee with a favorable recommendation and with the recommendation that the rules of Council be suspended so as to permit first reading at the next session. Bill number?
980270. Madam Chair, this bill had amendments read into the record by the Commissioner of Public Property as well as an attachment or Exhibit A which is the lease. I move that the amendments be adopted. (Duly seconded.) THE CHAIRLADY: All in favor? Opposes? Bill No. 980270 has been amended.
Madam Chair, I move that Bill 980270 as amended be reported out of 153 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Committee with a favorable recommendation and with the further recommendation that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.) THE CHAIRLADY: All in favor? Opposes? Bill No. 980270 as amended has been reported out of this Committee with a favorable recommendation and with the recommendation that the rules of Council be suspended so as to permit first reading at the next stated session. All in favor say aye. Oppose is nay. So ordered.
Madam Chair, I move that Bill 980407 be reported out of Committee with a favorable recommendation and with the further recommendation that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded). THE CHAIRLADY: All in favor say aye. Oppose is nay. 154 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS Then Bill No. 980407 has been reported out of this Committee with a favorable recommendation and with the recommendation that the rules of Council be suspended so as to permit first reading of this at our next stated session.
Madam Chair, I move that Bill 980442 be reported out of Committee with a favorable recommendation and with the further recommendation that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.) THE CHAIRLADY: All in favor say aye. Opposes? In that case Bill No. 980442 has been reported out of this Committee with a favorable recommendation and with the further recommendation that the rules of Council suspended so as to permit first reading at next stated session of Council.
Madam Chair, I move that Bill 980458 be reported out of Committee with a favorable recommendation and with the further recommendation that the rules of Council be suspended so as to permit first reading at our next 155 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS session. (Duly seconded.) THE CHAIRLADY: All in favor say aye. Opposes? Then Bill No. 980458 will be reported out of this Committee with a favorable recommendation and with the further recommendation that the rules of Council be suspended so as to permit first reading at our next stated session.
Madam Chair, I move that bill 980459 be reported out of Committee with a favorable recommendation and with the further recommendation that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.) THE CHAIRLADY: All in favor say aye. Opposes? Then Bill No. 980459 will be reported out of Committee with a favorable recommendation and with the further recommendation that the rules of Council be suspended so as to permit first reading at our next stated session.
Madam Chair, Bill 156 COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS No. 980460 is being held in Committee. THE CHAIRLADY: Then the record will show that Bill No. 980460 was called up and held for a later consideration.
Madam Chair, I move that Bill 960882 be reported out of Committee with a favorable recommendation and with the further recommendation that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.) THE CHAIRLADY: All in favor? Opposes? Then Bill No. 960882 is reported out of this Committee with a favorable recommendation and with the further recommendation that the rules of Council be suspended so as to permit first reading of this bill at our nex state session. Thank you very much. Ladies and gentlemen, thank you for your attendance. Is this meeting is now adjourned. (Adjourned at 7:45 p.m.) 157 C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Wednesday, June 10, 1998, were reported fully and accurately by me and that this is a correct transcript of same. RE: COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS ___________________________________, LISA C. BRADLEY, RPR