COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON PARKS, RECREATION AND CULTURAL AFFAIRS - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, February 12, 2008 2:15 p.m. - - - PRESENT: COUNCILWOMAN BLONDELL REYNOLDS BROWN, CHAIR COUNCILMAN DARRELL L. CLARKE COUNCILMAN FRANK DiCICCO COUNCILMAN CURTIS JONES, JR. COUNCILMAN JAMES F. KENNEY COUNCILMAN BRIAN J. O'NEILL COUNCILWOMAN MARIA QUINONES-SANCHEZ BILL 080078 - An ordinance authorizing the President of the Fairmount Park Commission, the Executive Director of Fairmount Park, and the Procurement Commissioner... BILL 080084 - An ordinance authorizing the President of the Fairmount Park Commission, the Executive Director of Fairmount Park, and the Public Property Commissioner... - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2
Good afternoon, everyone. We wish to say good afternoon to all in attendance. The City Council Committee on Parks, Recreation and Cultural Affairs is now in a public hearing to hear testimony on Bill Nos. 080078 and 080084. Those Councilmembers in attendance are Co-Chair of this Committee, Councilman of the 4th Councilmanic District, Councilman Curtis Jones, and Councilwoman Maria Quinones-Sanchez, Councilmember of the 7th Councilmanic District. Might we add two wonderful members of the Philadelphia City Council. Pleased to have them on this Committee. We will now ask our Clerk, Joseph Meade, to read the title of Bill 21 No. 080084.
An ordinance 23 authorizing the President of the Fairmount Park Commission, the Executive Director of Fairmount Park and the Public 3 2/12/08 - PARKS - BILLS 080078 and 080084 Property Commissioner, on behalf of the City of Philadelphia, to enter into a lease with the Philadelphia Authority for Industrial Development to lease City-owned land south of Shelmire Avenue adjacent to the campus of the Fox Chase Cancer Center to PAID, under which PAID will enter into a sublease with the Fairmount Park Conservancy, a Pennsylvania non-profit corporation, under which the Conservancy would enter into a sublease and other agreements with Fox Chase, pursuant to which Fox Chase will construct, maintain and operate cancer research and treatment facilities on the property; and authorizing the President of the Fairmount Park Commission, the Executive Director of Fairmount Park, the Public Property Commissioner and the City Solicitor to enter into additional agreements and take all other actions necessary to complete the transaction contemplated by this ordinance; all under certain provisions. 4 2/12/08 - PARKS - BILLS 080078 and 080084
Thank you. With that said, then, we would like to call up our first panel of testifiers. And for the record, by way of procedure, we want to alert everyone that once we've heard from all testifiers, we will then hear from the Councilman representing this councilmanic district. So if we could please ask the Commerce Department, Duane Bumb -- please forgive me if I'm mispronouncing your name -- Fairmount Park leadership, Mark Focht, and the Streets Department representative, Charles Denny. With that said, then we would like to hear first from the Commerce -- forgive me. Let's start with the Philadelphia Fairmount Park, the context of this enterprise.
Good afternoon, Chairwoman Reynolds Brown, Vice-Chair Jones, members of the Committee. I'm Mark Focht, Executive Director of 5 2/12/08 - PARKS - BILLS 080078 and 080084 Fairmount Park, and I'm very pleased to appear before you today on behalf of Fairmount Park Commission in support of Bill No. 080084 authorizing the City of Philadelphia, through its Fairmount Park Commission, to enter into a lease with the Philadelphia Authority for Industrial Development, PAID, for a portion of property located in Burholme Park, a park under the jurisdiction of the Fairmount Park Commission, and under which PAID will enter into a sublease with the Fairmount Park Conservancy and under which the Fairmount Park Conservancy will enter into a sub-sublease and other agreements with the Fox Chase Cancer Center, pursuant to which Fox Chase will expand its cancer research and treatment facility. One of the missions of the Fairmount Park Commission is to preserve, protect and maintain the open space, trees, natural and cultural resources of Philadelphia's parks for the recreation 6 2/12/08 - PARKS - BILLS 080078 and 080084 and enjoyment of citizens and visitors. However, the Commission understands that sometimes it is essential to balance our mission of preserving open space with the City's critical need for economic stability and development. The Commission believes that this bill 9 strikes that balance. At a special meeting of the Fairmount Park Commission held only last Friday, February 8th, the Commission approved revisions to the lease that it had previously approved on July 24, 2006 and which is the subject of this ordinance. The bill before you today is a result of over three years of careful consideration and negotiation. 25 million over the term of the project in support of both Burholme Park and the Fairmount Park system. 5 million development fee paid to 7 2/12/08 - PARKS - BILLS 080078 and 080084 Fairmount Park. The base rent will be paid within two years from the date that Fox Chase exercises its first expansion onto parkland. One-point-one-two-five million of this base rent must be used exclusively for the maintenance, repair, improvements of the playgrounds, ball fields, wooded parcel and the Ryerss Museum located in Burholme Park. This includes the creation of an endowment to ensure the support, maintenance, improvement and well-being of these facilities far into the future. Six hundred and sixty-five thousand of this development fee will be payable to the Park on the commencement date of the agreement, and the remainder will be paid over the first two phases of Fox Chase's expansion. The Commission will strive to minimize the effects of this expansion on the Park. 4 acres. 4 acres. Prior to expansion, Fox Chase must acquire the approval of their master plan for the new facility from the Fairmount Park Commission. The Fairmount Park Commission has also addressed impact on the site through terms contained in the lease. Accordingly, the lease includes general design guidelines governing height, scale and exterior appearance of the new campus. A design review committee consisting of Fox Chase, Fairmount Park and a neutral third party will review all design plans for compliance with these guidelines. Fox Chase is required, at its sole cost and expense, to either relocate mature trees up to ten inches in diameter or replace each tree removed in connection with the expansion project at a ratio of two to one with new trees at least four inches in diameter. So the new campus building will be set amongst a 9 2/12/08 - PARKS - BILLS 080078 and 080084 canopy of trees and an extension of the Park. In addition, Fox Chase will pay to the City $4 million for improvements to existing City facilities in the 10th Councilmanic District. These funds will be paid in four $1 million yearly installments beginning on the first anniversary of Fox Chase's first expansion.
The Commission takes its fiduciary responsibility and role over the protection and preservation of the Park under its jurisdiction very seriously. On very few occasions over our over 140-year history has the Commission been willing to consider encroachment on parkland. Yet, this Commission believes that a park is an anchor for a thriving community and recognizes the critical mission of the Fox Chase Cancer Center. The Cancer Center's $800 million expansion positions the City for 10 2/12/08 - PARKS - BILLS 080078 and 080084 creation of permanent jobs and the opportunity to generate millions and increase tax revenue for the City, including Fairmount Park. The Cancer Center must expand its current facilities in order to maintain its high standards of service to cancer patients and to maintain its profile as one of the nation's leading cancer research and treatment centers. I, therefore, appear before you today to pledge the full support of the Fairmount Park Commission and staff for this legislation and respectfully ask that this Committee vote in favor of Bill 17 No. 080084. I would also offer the proposed amendments to the bill, which I have before me and I believe were distributed, but here are additional copies if other Councilmembers would like them. I would also request suspension of the rules for consideration of this matter at the next session of City Council, and I would be 11 2/12/08 - PARKS - BILLS 080078 and 080084 pleased to answer any questions you may have. Thank you.
We thank you for your testimony. We'll hear testimony from the entire panel and then open it up to questions from the members of the Committee. Let us please acknowledge the presence of Councilman Frank DiCicco. Please, Commerce Department.
Good afternoon, Chairwoman Reynolds Brown and members of the Committee on Parks and Recreation. My name is Duane Bumb. I am the Acting Commerce Director for the City of Philadelphia, and I am pleased to be here today to testify in support of Bill 20 080084 authorizing the City, through the Fairmount Park Commission and the Department of Public Property, to enter into a lease allowing the Fox Chase Cancer Center to expand its medical campus into a portion of Burholme Park. 12 2/12/08 - PARKS - BILLS 080078 and 080084 The transaction authorized by this ordinance had been previously introduced as Bill 070956 by Councilman O'Neill on November 1, 2007 and received a public hearing before this Committee on November 26, 2007. Although that bill 8 did not receive final passage before City Council adjourned in December, a companion zoning bill did receive final approval. Bill No. 070955 authorizing a change to Institutional Development District zoning for the area to be leased to Fox Chase was enacted. I am pleased to report that the ordinance before you today is responsive to the concerns expressed by Councilmembers last fall at that hearing. For example, the Economic Opportunity Plan attached to this bill -- it's actually attached to the amendment today -- reflects the increases in participation levels that had been requested by City Council. The lease agreement authorized by this ordinance 13 2/12/08 - PARKS - BILLS 080078 and 080084 also updates the terms under which Fox Chase can draw down land for development and clearly identifies the compensation for those development rights. Most importantly, the current bill allows Fox Chase to proceed with its strategic expansion. As noted in a 2005 Milken Institute study, Philadelphia's competitive advantage as a business location for the life sciences includes assets other regions can only aspire to develop. That report, entitled "The Greater Philadelphia Life Sciences Cluster," ranked this region as having the third largest life science cluster in the country. 1 percent, more than any other sector in the City's economy. Given the growing importance of the City's life sciences and other knowledge-based industries to our future, it is critical that we support those institutions like Fox Chase whose growth 14 2/12/08 - PARKS - BILLS 080078 and 080084 is so critical to the City as we seek to maintain a competitive advantage in this vital sector. Fox Chase Cancer Center has long played a central role in the local economy. It was founded in 1904 and, in the last 100 years, has become the second largest employer in Northeast Philadelphia, with over 2,400 employees. Fox Chase has also become an internationally recognized center for cancer treatment and prevention, attracting patients, doctors, researchers, skilled employees and funding from around the world. Fox Chase researchers have been recognized for their work with numerous awards and honors, including Nobel Prizes for chemistry and medicine and American Cancer Society medals of honor. To address growing patient care and research needs, Fox Chase has launched a 25-year $1 billion expansion program. This expansion will double Fox 15 2/12/08 - PARKS - BILLS 080078 and 080084 Chase's clinical enterprise and significantly increase its research capabilities. When the expansion is complete, Fox Chase will be one of the largest comprehensive cancer centers in the country. 7 million square feet of usable space and an annual budget in excess of $800 million. A February 2006 economic impact report by Fairmount Capital Advisors for Fox Chase quantified the total economic impact on the City during Fox Chase's 25-year capital investment program as almost $2 billion. Over the course of this multi-phased development schedule, the City directly benefits from this investment by the creation of over 4,000 direct jobs, wage tax collections from Fox Chase Cancer employees totalling over $260 million.
4 million 16 2/12/08 - PARKS - BILLS 080078 and 080084 annually in wage tax revenue from Fox Chase operations. 2 million in City sales tax receipts from construction sources alone. With that level of projected financial impact, it is clear that the growth of Fox Chase will result in significant economic growth benefiting not only the City but the entire region. I urge you to support this bill allowing for the critical expansion of the Fox Chase Cancer Center. Thank you for allowing me to provide testimony on this important matter, and I also would be happy to answer any questions you may have.
Thank you for the testimony and the very clear financial impact. Please. Good afternoon.
Good afternoon, Madam Chairman, members of the Committee. 17 2/12/08 - PARKS - BILLS 080078 and 080084 Thank you for the opportunity to appear before you today. My name is Charles Denny. I am the Acting Chief Traffic Engineer for the Department of Streets and I am here today to offer testimony on Bill 080084 which pertains to the expansion of the Fox Chase Cancer Center. On August 20, 2007, the Traffic Engineering Unit of the Streets Department met with Mr. Thomas K. Garvey, Vice-President of Community and Government Relations at Fox Chase Cancer Center, in the presence of the designated neighborhood consultant, Mr. Charles Trainor, former Chief Traffic Engineer with the City Streets Department. The following points were discussed and agreed upon regarding the Fox Chase Cancer Expansion Project into Burholme Park. The Fox Chase Cancer expansion will spread over several phases and years, and under the initial phase, the traffic impact will be comprehensively 18 2/12/08 - PARKS - BILLS 080078 and 080084 studied and full mitigation measures will be recommended in consultation with the community and the Streets Department. A few of the mitigation measures identified at the meeting are all signalized intersections along Cottman Avenue between Oxford and Central Avenue will be fully upgraded for which appropriate designs will be developed by Fox Chase Cancer Center's consultant for the City's review and approval. This will assure safe and efficient traffic flow along this major arterial street. The Streets Department and the Fox Chase Cancer Center are in agreement to install new traffic signals at the intersection of Cottman Avenue and Park Drive and also at Central Avenue and Shelmire Street. Fox Chase Cancer Center will be responsible for all the costs pertaining to the design and construction of these signals. Fox Chase Cancer Center will work with Joseph Scoffield of Jeanes 19 2/12/08 - PARKS - BILLS 080078 and 080084 Hospital to reroute their main driveway so as to share the main exit at the intersection of Central Avenue and Shelmire. A new signal will be installed here again. Fox Chase Cancer Center agrees to bear all the costs pertaining to this new driveway design, construction and its signalization. Fox Chase Cancer Center will obtain a written commitment from Jeanes Hospital pertaining to this project. Under Phase II, Fox Chase Cancer Center's consultant will study Oxford Avenue and its impact on traffic circulation. These are just some of the traffic mitigation measures discussed and agreed upon as of now. The Streets Department or Fox Chase Cancer Center reserves the right to identify other measures as this project moves forward. The Streets Department will work with Cheltenham Township to ensure coordination of the construction and to 20 2/12/08 - PARKS - BILLS 080078 and 080084 mitigate its impact. Fox Chase Cancer Center will bear all the costs pertaining to the design and construction of all the mitigation measures agreed to now and in the future. Thank you for the opportunity to speak to you today, and I'll be here to answer any questions.
Thank you for your testimony. To the Streets Department, Mr. Denny, would it be fair to assume based on your testimony that there is no 15 check-back with the District Councilmember in case you run into what I'll call a bump in the road where the parties are not able to work through any of the mitigation measures you just cited, or what provision is there to check back with the stakeholders should you hit an unreconcilable bump in the road?
Well, I was under the impression that somewhere along the 21 2/12/08 - PARKS - BILLS 080078 and 080084 process the District Councilman would be briefed as to what is planned and what's being done and, therefore, the community would also be briefed.
Madam Chair, it's probably a good time for me to mention this item. There's a first initial phase piece that's not in Mr. Denny's testimony. It wasn't in place on August 20, 2007.
Which is the date of the meeting that's referenced in his testimony. But it was the biggest and most important stumbling block in the traffic mitigation, traffic improvement area, and, that is, on Cottman Avenue in the block from Park Drive going east to Central Avenue, the creation of a center lane dedicated to turns, requiring PennDOT to remove parking in front of 22 2/12/08 - PARKS - BILLS 080078 and 080084 residents on the south side of Cottman Avenue. Those residents live in Cheltenham Township. The hospital is responsible for mitigating the loss of that parking. The Governor had to get involved in this to get proper language and the proper letter from PennDOT before I introduced the bills in early November. It's not mentioned anywhere in this letter, and PennDOT did agree to do that. They have the power to do it. And I would want -- I think a letter was actually brought up at the last hearing back in '07, late '07, and it may be, if not Mr. Denny, then the Traffic Engineer that was engaged by the hospital I believe is in attendance and was in all the meetings with PennDOT to put that on the record, because that is key both for the turns in and out of the -- safe turns in and out of the hospital on Cottman Avenue at the new signalized intersection at Park Drive and also turns from Cottman Avenue onto Central Avenue going north, 23 2/12/08 - PARKS - BILLS 080078 and 080084 that those cars be taken out of the traffic flow and be able to turn. It was the highest -- I'm looking at the letter, and we may want to have this letter read into the record, because this is very, very important. Of all these things, they're all good. They cost, I'm told, upwards of $4 million, but this is the one that will make the biggest difference for the hospital and the neighborhood in terms -- and for the park users that come by car in terms of safety and also traffic flow.
I was not aware of the criticalness of this, but we will have it read into the record given the background you presented, Councilman Brian O'Neill.
Any other questions from members of the Committee? (No response.)
Could I have Mr. Denny look at it and read it 24 2/12/08 - PARKS - BILLS 080078 and 080084 himself, if he has any problems with it?
Because I really want this not just slipped in as a piece of paper but actually as further testimony on the traffic issue.
And if we could have an explanation as to why it wasn't in the testimony initially, because I consider it the most important part and it's not even -- and it's in the initial phase. It's not a later phase or something that we looked at.
Well, having had the good opportunity to tour that area last summer with you, Councilman, the one thing I was struck by is the potential not only dangerous but 25 2/12/08 - PARKS - BILLS 080078 and 080084 uncomfortable doesn't even begin to capture the angst that neighbors would have given what's coming to their community. So if you would, please.
Sure. It's addressed to the Honorable Brian J. O'Neill. It says, "Dear Mr. O'Neill, PennDOT is committed to working with both the City of Philadelphia and Cheltenham Township to resolve traffic and parking issues in order for the Fox Chase Cancer Center project to proceed. It is my understanding that the project will include a controlled build-out over a number of years. These phases are likely to require PennDOT review and approvals at the appropriate time to resolve any traffic impacts. "The initial phase of the build-out directly impacts the operation of the Cottman Avenue and Central Avenue intersection. PennDOT owns the right-of-way on Cottman Avenue and agrees 2/12/08 - PARKS - BILLS 080078 and 080084 to remove the current parking within the right-of-way. The stopping/parking prohibition is needed to accommodate the additional lane for current and projected eastbound traffic volumes. Fox Chase Cancer Center will be responsible for the cost and implementation of the stopping/parking prohibition and lane markings. "While the prohibition of parking on Cottman Avenue is not dependent on mitigating its impact, Fox Chase Cancer Center will investigate all aspects of the mitigation for those residences" with off-street parking.
Without. Sorry. "Mitigation measures could include, but will not be limited to, constructing off-street driveways. Fox Chase Cancer Center will also be responsible for the cost and the implementation of the mitigation measures. 27 2/12/08 - PARKS - BILLS 080078 and 080084 "Fox Chase Cancer Center will coordinate traffic signal ownership, installation and modification issues between the City and Cheltenham Township." Then it ends, "We look forward to working with you to bring this to a conclusion." Signed, Rina Cutler, Deputy Secretary for Administration with PennDOT.
And let us just state for the record the date that this letter says.
I just would like Mr. Denny to state for the record that as far as the Streets Department is concerned -- I mean, Ms. Cutler is now our Deputy Mayor for Transportation, as things turned out, but this means that this will happen as part of the Phase I improvements. 28 2/12/08 - PARKS - BILLS 080078 and 080084
This is the document we needed or agreement or approval we needed, commitment from PennDOT. Okay.
It will be part of the design of Cottman Avenue from the Park driveway to Central Avenue.
Thank you, Mr. Denny. Any other questions, comments or observation from members of the Committee? (No response.)
I do have one question here to Mark Focht. I'm curious to know, is this agreement that Fox Chase Cancer Center and Philadelphia 10th Councilmanic District and Fairmount Park, would it be conventional or unconventional in its nature when you look at the complexity of it and the long-term benefits to the community? 29 2/12/08 - PARKS - BILLS 080078 and 080084
I'd say it's unconventional in its magnitude in length. It's certainly not unconventional in the sphere that we've done other agreements like this. Obviously we built the School of the Future on Park property. We've done other major civic improvements on Fairmount Park property to serve the communities and the populus in general. I think the length of this arrangement, the magnitude of it, the significant impact of it positively is what makes this one a little bit more unique. But the fact that Fairmount Park would structure such an arrangement to benefit the community, work with the Councilman, work with a private institution and the City is not unusual.
Yes. Thank you. And I think it would be good rather than when I testify for the Park 30 2/12/08 - PARKS - BILLS 080078 and 080084 Commission's representative, Mr. Focht, and their leader to put on the record that what is being leased -- the ground that's being leased to the hospital does not impact on the ball fields, which is the largest public use in the facility. It does not impact on the sledding hill, which is a long time-honored tradition in the community. It does not impact on the picnic pavilion, which is a major part of the Park for the community. It does not impact on the Mansion, the Ryerss Mansion, at the top of the hill, and it does not impact on the play equipment area, which is quite large, was very expensive and probably will be very expensive to redo very shortly in terms of its capital life. But not only if Mr. Focht would talk about that, but also what is taken and in what way the public either doesn't use it or has very limited use because there's a cost and a fence around the area, part of the area.
Mr. Focht? 31 2/12/08 - PARKS - BILLS 080078 and 080084
Be pleased to do that. Every park use that the Councilman just cited is all correct, and all those uses are outside the area that will be impacted by the expansion of the Fox Chase Cancer complex. What will be impacted is wooded lawn area with a number of trees and, hence, the speculation -- the stipulation that I reference in my testimony about the movement or replacement of trees so that we don't lose significant tree canopy, and then the golf driving range, which is the Burholme Driving Range, which has a number of functions to it. It's a golf driving range. There's also a miniature golf course and some batting cages. In the farther-out phases of Fox Chase's expansion, that facility would be impacted. The driving range portion would be closed, because as the expansion would move to the south, deeper 32 2/12/08 - PARKS - BILLS 080078 and 080084 into the park, it would impact the driving range component. We have not yet made a decision as to the other uses, such as the miniature golf and batting cages and other uses which are beyond the area of impact by the Cancer Center's expansion and we could or could not choose to keep those uses in the park. I think that's a decision for many years down the road as the Cancer Center gets closer to that portion of the park.
Okay. Now, you said there will be an impact of the driving ranges. That's both short term and long term?
That's in the outer phases of the plan. It's in subsequent phases. I believe the Fox Chase's current master plan is four phases of expansion, and in the outer phases, I believe Phase III and IV, there's impact on the golf driving range. But, again, only the driving range component of that complex, not the miniature golf or 33 2/12/08 - PARKS - BILLS 080078 and 080084 batting cages or clubhouse that's farther down closer to Cottman Avenue.
Which would still be available to the local residents?
And on the financial side, I think it's important to note and have the record show with Fairmount Park represented here that right now that concession gets upwards of $200,000, and that's only recently that it's gotten up that high from the vendor. That money goes into the General Fund under the Charter. That's where it has to go. Under this lease agreement that has been worked out, the Park Commission, through its Conservancy, which can take money, is the recipient of roughly 8 plus million dollars over a period of a few years as payment of this lease. The City 34 2/12/08 - PARKS - BILLS 080078 and 080084 did not say, Oh, we're entitled to -- we're losing the 200, we're entitled to whatever. We're talking about trying to raise money for the Park Commission. This is a very real dollar value, that they've got nothing out of this. I think there's only 1.25 million out of the eight-point-some million that has to be used at Burholme Park under the different agreements that are going to be handed in as an amendment.
A couple of 35 2/12/08 - PARKS - BILLS 080078 and 080084 questions from the side of patient participation at this point. What is the volume of people that are seen at the facility now and what will be the volume under each of the phases of construction as I understand they're going to go?
I think it would be best to have representatives of Fox Chase answer that question, so I don't know if you'd like them to come up now --
No. Here's how we'll do it: We'll put a pin in that one, go back to it a little later. While I have you here, you mention the Milken study, Mr. Bumb, about how important life sciences are. As this construction and project comes underway, what will be the phases of job creation in that that is beneficial to the City of 36 2/12/08 - PARKS - BILLS 080078 and 080084 Philadelphia? What types of jobs are going to be created and under what phase of this development?
I think for the detail for that, I think I'm going to defer to Fox Chase officials as well, but to say that I think that each of the sort of -- again, as Mr. Focht had mentioned, there are four phases of development that will happen within the City property, and each of those is an expansion of either a research or treatment facilities, and there's a sort of whole range of jobs, permanent jobs, that are attached to each of those. I think I mentioned in my testimony the growth of over 4,000 jobs over the full 25-year expansion of the project. To the extent that Fox Chase knows specifically how much -- sort of what facilities are in each phase, they can probably better answer your question of what jobs are attached and the economic impact attached to each of those 37 2/12/08 - PARKS - BILLS 080078 and 080084 phases.
I mention it because it seems to me that we need to be proactive. If it's going to be this type of economic benefit, if in fact we are going to develop these type of jobs, that we might be of assistance to them in creating training programs that are designed for those jobs of the future. If life sciences is a major cornerstone in which we will build our economy, then we might want to know per phase and what to expect by way of training dollars that might be needed for a facility like this so that Philadelphians can benefit. All too often what happens with a project like this, we get an injection of new Philadelphians, which I'm fine with because they pay taxes, but as much as we can, as proactively as we can, I'd like to design into the construction and the expansion of these projects home-grown talent that might be developed. 38 2/12/08 - PARKS - BILLS 080078 and 080084 If we have a nursing academy in the City of Philadelphia that can gear its curriculum towards jobs of the future at the completion of this project, I think that's a worthwhile endeavor. If we in fact can start to better coordinate that understanding of life sciences, we can incorporate that into the curriculum of our fine public school institutions. So I like reading these kinds of numbers. I've liked saying them in the past, but I think what we can do as a city is when private sector money comes in here like this, that we can do a better job of anticipating their workforce needs, and I think that always needs to be an integral part of our planning.
Councilman, I agree with that, and we in fact for this sort of project would be working closely with the Philadelphia Workforce Development Corporation as this first phase, for example, comes online to make sure that 39 2/12/08 - PARKS - BILLS 080078 and 080084 we are anticipating the types of jobs and job growth needs of Fox Chase so that we can with, as much as possible, with Philadelphians fill those jobs. Agreed.
And that agreement that you just mentioned is actually written into the documentation of this bill?
What I just mentioned is in fact standard operating practice for any sort of major growth within the City of Philadelphia. Anything that goes -- for example, major projects go through our Development and Services Committee and that's where that's linked.
Madam Chairman, as -- and that is a worthwhile goal and that is what exactly we should be doing, but the devil is in the details. After ground-breaking, everybody shakes hands, slaps each other 40 2/12/08 - PARKS - BILLS 080078 and 080084 on the back and we go about our merry business to the next deal, and what does not happen enough is the follow-up to make sure that the job creation numbers, expectations actually happen. And what I'm saying to you, I know -- I used to be on that side of the table and I spoke from that side of the table. I'm on this side of the table now. I used to play defense. Now I'm playing offense. I'm just telling you, we're going to look for that in the future.
Thank you. Let us please acknowledge the presence of Councilman Darrell Clarke, a member of this Committee. Any other questions, observations or comments from members of the Committee? Councilwoman.
Since I'm new to this discussion, what would you say, Mark, in particular is not 41 2/12/08 - PARKS - BILLS 080078 and 080084 addressed based on the concerns raised from residents in this agreement? You've highlighted what you think are some of the achievements. Is there anything that we were not able to accommodate residents on, and what are those issues?
I think we were able to -- I'm confident that we were able to address all the concerns balancing everyone's input, and that includes the Cancer Center, their constituents, all the constituents that have been involved in this dialogue for three years or so. About two and a half years ago, we had a special public Park Commission meeting in the neighborhood. Many, many people testified in support of or opposed to this project. There was very ardent feelings on both sides. I respect both sides. I think we have negotiated, through lots of hard work and many people beyond this table, have negotiated a very sound, thoughtful arrangement for the 42 2/12/08 - PARKS - BILLS 080078 and 080084 Park and the City. I don't think everyone is going to be happy with this arrangement. That's the nature of doing the deal.
What would be some of the issues that you think still may fall short if I were to speak to someone from --
Well, I think the most ardent critics of this agreement are any development on parkland. Most people are opposed to any --
Outside of that. I'm talking about quality of life issues, traffic.
Outside of that, I don't think there are any issues that have not been addressed by this plan.
I might add, Councilwoman, that it really was not last summer, Councilman O'Neill. It was two summers ago that I had the chance to tour that entire community, meet and talk 43 2/12/08 - PARKS - BILLS 080078 and 080084 with --
Yes. But I say that to indicate that the homework and ground work that's been done on a number of levels has transpired. That is not to say that there is 100 percent acceptance. There's never 100 percent acceptance of anything anywhere on the planet, but my sense is that due diligence at every corner, at every juncture has occurred and in a meaningful way, and this hearing is actually a continuation of work done prior to the end of the year where we still needed to work out some kinks and some wrinkles in the process. Would you agree, Councilman O'Neill?
Thank you very much. 44 2/12/08 - PARKS - BILLS 080078 and 080084 Any other questions? (No response.)
Madam Chair, I believe there were questions for the Cancer Center representatives.
Yes, we will, indeed. If we can now ask to come forward members of the Fox Chase Cancer Center team: Carl Primavera, Esquire, Klehr Harrison; Dr. Robert Young, Fox Chase Cancer Center; Mr. Thomas Garvey, Fox Chase Cancer Center. And if the need arises, Ms. Susan Phillips, Traffic Engineer, is available to address any questions or concerns. (Witnesses approached the witness table.)
Good afternoon, everyone. Welcome back. We'll ask you to please begin with your 45 2/12/08 - PARKS - BILLS 080078 and 080084 testimony. Please.
Honorable Committee Chair, members of the Committee, I'm Dr. Robert Young, Chancellor of Fox Chase Cancer Center. In the four years since we began this effort, we have had over 85 meetings with representatives of the City, the Fairmount Park Commission, our City Council Councilman Brian O'Neill, our two homeowners associations, the Commonwealth of Pennsylvania, PennDOT and our neighbors. We have had two open houses at Fox Chase where neighbors could come, see, hear and comment on our expansion plans, which are shown up there, and representatives of Fox Chase Cancer Center have attended every homeowners association meeting held in the past four years. During this complex process, the representatives of each of these groups have sought to balance the 46 2/12/08 - PARKS - BILLS 080078 and 080084 interests of the various constituencies with the overall goal of the project. Through their hard work and dedication, this has been accomplished. Special thanks go to Mayor Nutter, who was instrumental in resolving some of the residual difficulties which prevented this legislation's consideration back in December. The product of this four-year effort is reflected in the bill proposed today. Its passage will result in a healthier and safer Burholme Park, funding for much-needed public projects in our neighborhood, traffic improvement measures linked to the expansion, the creation of 4,000 new non-outsourceable jobs for the City, and the opportunity of Fox Chase Cancer Center to fulfill its mission of scientific discovery and the delivery of state-of-the-art cancer care to those who need it. We urge its passage. Thanks again to Mayor Nutter 47 2/12/08 - PARKS - BILLS 080078 and 080084 and his staff, the Fairmount Park Commission and the City Council members for all of their help and guidance during this process. I would be happy to answer any questions you might have.
We thank you for your testimony, and we'll be sure to entertain questions once all the members of the panel have offered testimony. Please, Mr. Thomas Garvey.
Good afternoon, Honorable Chairwoman Reynolds Brown, honorable members of Council. We respectfully request your enthusiastic support for this legislation. It's so vitally important to Fox Chase, to our patients and to our community. It is vitally important not for the ability to plan these buildings. It is vitally important so that we can establish a direction for Fox Chase Cancer Center into the future. 48 2/12/08 - PARKS - BILLS 080078 and 080084 Without this ability to plan for our future, we, in essence, support the status quo and ultimately mediocrity. We must have this direction in order to identify and attract the scientific research programs of the future, which are in many ways upon us now, and to support and maintain the excellence of care for our patients and their families. It is this ability to plan our future that is so vitally important. I'd also like to note and build upon Dr. Young's comment for this Committee that this expansion was developed from the very beginning in partnership with the City, with Fairmount Park, with our community, with our City Councilman, with our community leadership. We have held well over 30 public meetings specifically dedicated to these plans, which in fact yielded many important suggestions, which in turn caused the plan to be twice revised. We believe that we have a very 49 2/12/08 - PARKS - BILLS 080078 and 080084 long track record of working closely and openly with our community and the leadership of the community and the Park. We do look forward to a true partnership as we move forward. We believe in the importance and vitality of our community, which is our home. We respectfully request your enthusiastic support for this legislation and certainly be available to answer questions or go through details, if you choose. Thank you.
Madam Chair, members of the Committee, Carl Primavera, attorney for Fox Chase Cancer Center. As was mentioned, this really is a continuation of the end of last year's hearing where we had additional testimony, which we don't want to repeat or belabor, but I'm going to ask my colleague, Darwin Beauvais, to make sure that the record has the testimony from Mark Schweiker, who appeared in person on 50 2/12/08 - PARKS - BILLS 080078 and 080084 behalf of the Philadelphia Chamber of Commerce, Joseph Frick, who is the Chairman of Independence Blue Cross who was here to testify in support, as well as Bill Sasso, another member of the Chamber of Commerce, who has worked very closely with all parties, really as an ambassador of the City, to accomplish what we are here seeking today. In addition, two of our Board members testified, David Marshall from Amerimar and William Avery, who is the former Chairman of what used to be Crown Cork and Seal, I guess it's Crown Holdings, two really important Philadelphians. And then we had the Building Trades represented by Bernard Griggs and Mike Nakowski, Mike Nakowski also being a resident of the area. And, finally, Maria Carasella, who spoke passionately as a member of the community and someone who received care at the facility. We're also handing up into the 51 2/12/08 - PARKS - BILLS 080078 and 080084 record the Economic Development Plan prepared by Fairmount Capital Investors, which really does, Councilman Jones, go into a lot of the details as to the phasing and the number of jobs and the capital directed to each of the phases. And then, finally, there's a book, which I want to make sure again it's in the record, which shows the general growth pattern associated with the phases, and as you'll see, and as hopefully you can see from the boards which have been mounted, the wonderful nature of this expansion. It will happen gradually so as not to cause a dramatic change. We're also doing Phase I on our own property, which is a hospital addition as well as a garage. The need for this, which was testified to last time, is astounding. The demands on our facilities are beyond that which we're able to reasonably accommodate. So we've already started Phase I on our own land. That was one of the 52 2/12/08 - PARKS - BILLS 080078 and 080084 reasons we asked the Councilman to hold up on this ordinance at the end of last year. Some of the phasing was out of order, because we moved ahead in a different way, but ultimately designed to bring the facilities online for the benefit of the community that we serve. So with that and with the introduction of the materials that we've spoken about and with thanks to Councilman O'Neill, who has worked tirelessly with the full development team, we thank you for your attention today, and we're answering any questions you may have.
Thank you for your testimony, gentlemen. Councilman Jones.
Gentlemen, on behalf of myself, I'd like to say thank you. I understand in the testimony you started this process how long ago?
Well, we started it four years ago. We actually began to 53 2/12/08 - PARKS - BILLS 080078 and 080084 think about what the needs of the Center were likely to be in a series of retreats with our Board of Directors in 2002. So the process is five years, but it's four years interacting with the City and the Fairmount Park Commission and the Council.
Well, I said 85. There are certainly at least 85. There may be more than that.
So I want to say thank you, because you must really, really, really want it to be in this location and be Philadelphians. So I want to say thank you at the outset. But let me go back to some of my questions. I'd be interested in understanding -- I appreciate the briefing that was provided here and the briefings that we got along the way, but 54 2/12/08 - PARKS - BILLS 080078 and 080084 made easy for a freshman Councilperson. My colleagues are far more adept at digesting quickly information. Tell me and for the record what phases are the jobs going to be created and what opportunities are there for folk, Philadelphians, and in particular young people that are recently graduating from both high school and some of the great colleges and medical facilities that we have here to train the brightest and best and these are the kind of jobs that get them to commit to stay, and that is the framework of why I'm asking these questions and in what phases are they coming so that we can assist you in marketing them to Philadelphians, assist in getting them to the PCOMs and Drexels, particularly in the 4th Councilmanic District. No disrespect to any other district, but I have some fine medical institutions there. So if you can help me with that kind of information, that would be good. 55 2/12/08 - PARKS - BILLS 080078 and 080084
It's a great question, and one of the nice things about the expansion is, as has been said, it's going to be done over time at a fairly well-defined pace. The major increase in jobs that will be permanent at Fox Chase will follow the first phase on the park, in which we will build a 200-bed hospital and a major expansion of our research capacity. The subsequent phases are smaller and, therefore, will accumulate smaller positions. The other nice thing about this is that while the science that will be explored within the institution, we anticipate will explore brand new edges of the science of cancer treatment, the background and expertise of the people involved with that exploration are already well defined. We're going to be looking for M.D.s, Ph.D.s, nurses, laboratory technicians, food managing folks, maintenance people, the kinds of individuals that we can define in advance 56 2/12/08 - PARKS - BILLS 080078 and 080084 and anticipate in advance. Many of our faculty, although not all, have emerged out of the medical centers right here in Philadelphia, and certainly that is one of the major sources of our nurses. We've added to the program by having our own cancer nurses training program in which we supplement the experience that they have had in their individual university training settings, and that's been enormously successful in giving nurses the confidence to continue in a career of cancer nursing. It's not that they aren't committed. It's that they're unsure about whether or not their training has been sufficiently robust to provide the kind of service that the patients need, and we can give them that comfort level. So I applaud your interest and enthusiasm in trying to identify in advance the kinds of jobs that will be required, and I think we could actually give you a very clear estimate by each 57 2/12/08 - PARKS - BILLS 080078 and 080084 phase of the kinds of positions that would be anticipated through that expansion.
I appreciate that information. To what degree are you interacting with job-training entities in the City of Philadelphia proper or privately that are using a reservoir of Philadelphia talent? Is there any dialogue, interaction with that type of entity?
I'm at a loss to say as Duane did of specific entities. We've not worked with the City in the way that Duane described. Certainly that's where we want to be. We have an affiliation or training program with nearly every nursing school, not only for the kind of program that Dr. Young describes where we provide supplemental training on site after a hire, but also 58 2/12/08 - PARKS - BILLS 080078 and 080084 for recruiting to our operations at Fox Chase. We also have affiliations with nearly every major Allied Health program for individuals who are working in medical laboratories, x-ray and diagnostic imaging programs, and there aren't that many programs, so it's to a lesser extent with radiation therapy programs. Quite frankly, we do an awful lot of our training inside, because oncology care and the care of oncology patients and the technology in many respects is very specialized. I do know we have working relationships with Drexel, because you mentioned Drexel, with the University of Pennsylvania and certainly with Temple University, and I hope maybe that would help answer the question.
As a kid I grew up on the sci-fi movies, and there's always the scene in a sci-fi movie where 59 2/12/08 - PARKS - BILLS 080078 and 080084 the clumsy janitor knocks over the vile and then the chemicals merge and there's this monster that arises. Since then, because of biohazards and things like that, there is no such thing as a dim-witted janitor. The sophistication, level of skill sets for environmental engineering, I want to know about those types of jobs, and where do you train and get those people from?
Well, certainly we have those types of jobs and, again, at the risk of beating this drum again, we have found -- you're actually, Councilman, taking me back to earlier in my career in human resources, where I began my -- and training was where I began my career. We have found that many individuals come in with the basic skills but are not properly experienced with the kinds of precautions that you're speaking of for handling biohazardous material, for handling today cleaning chemicals, 60 2/12/08 - PARKS - BILLS 080078 and 080084 and we have found it incumbent upon us to offer those training programs on site on all three shifts, if it is all three shifts that are affected.
I would look to try to provide entry-level opportunities to folk. These are the kinds of opportunities that a young person right out of high school can be mentored and nurtured. And the sky is the limit in a facility like yours on what they can wind up becoming in ten years, years, and hopefully they'll 15 still be Philadelphians. So what I would like to do -- and I'm going to encourage and get used to this theme for all development -- I want to know how that impact trickles down to neighborhoods and things like that. So I'm going to be looking to Duane and -- he's my colleague and he knows I care a great deal. They give him all the hard work while he was acting so 61 2/12/08 - PARKS - BILLS 080078 and 080084 that someone can come and take the bows, I understand that, but I'm going to ask the tough questions that are always on behalf of the people who have an opportunity to -- you have an opportunity to change lives by way of dealing with the suffering that your patients have, but you also have a way to change lives of people who want economic opportunity, jobs to be able to support their families, and I'm always going to speak up and be a voice for that.
Well, we welcome that. As we embark on this tremendous campus expansion and undertake growth of our mission, I think we've learned a lot going through this councilmanic process about the need to have greater outreach and to, in effect, link our future with that of people in Philadelphia all over the City. So we'll be aware of that. We'll be focused on that, and it's also good business, because the availability of trained, 62 2/12/08 - PARKS - BILLS 080078 and 080084 diligent local workforce is going to make it easier to fill these positions and more likely they're going to stay. So we think they're good comments and we're going to be focused on them.
Well, I have one more, if Madam Chairman will indulge me.
Every facility in Philadelphia is probably going to be asked this question, which is the greening question and what types of jobs will be created out of that experience, whether it's the use of --
-- solar panels or other things like that. I just wanted to know if you could speak to that briefly.
In terms of the 63 2/12/08 - PARKS - BILLS 080078 and 080084 green technology?
Well, we are working with Ewing Cole. They are an international engineering and architectural firm. The materials that they've prepared and we've submitted speak to that, and we're going to try to meet and exceed basically the latest cutting-edge requirements. I'm not going to say whether we're platinum LEED certified in green roofs, but everything we do, if you look at our campus, really suggests that the environment where we treat our patients is, in large part, part of the success in their recovery. And our campus really is a campus. It doesn't look like a traditional hospital. And Dr. Young and Tom Garvey and the design team and we have representatives from Ewing Cole here today if you want to get into more detail, but their heart and soul was put into the design and meeting the highest standards, both in design and 64 2/12/08 - PARKS - BILLS 080078 and 080084 in materials and operations. So we think our campus is going to continue to be an example of how to do things right.
Again, even the maintenance person in a green environment is not that clumsy janitor of our grandfathers. They are a better trained workforce that has to deal with a variety of new technologies, and as we go forward, the more we can put retro-engineering into our public schools, the better prepared they are to take on these new opportunities.
Well taken, Councilman Jones. Any other comments, observations from members of the panel?
Well, Councilman Jones earlier asked the question about patient volume. Just to give you an idea of the growth and the need in our area of the City and elsewhere, in about 1980 we 65 2/12/08 - PARKS - BILLS 080078 and 080084 took care of about just a little less than 800 new patients that year. This year we will exceed 7,000 new patients a year and have about 70,000 outpatient visits. This whole thing got initiated in 2002 because we recognized that with a five to seven percent growth per year in volume of patients needing cancer care of the type we deliver, that we were going to be seeing and caring for something in the range of 12,000 new patients each year, and that simply exceeds our capacity, both inpatient hospital capacity and outpatient facility. So that's been the major driver of this need to expand, to care for the patients in need. And about somewhere around a third -- somewhere between a fourth and a third of our patients come from right around our neighborhood area. And so we deliver a substantial amount of care to patients in need right around our institution. 66 2/12/08 - PARKS - BILLS 080078 and 080084
Well, let me say finally on behalf of members of this Committee thank you for not only listening to the concerns raised by the District Councilmember and members of this Committee around the EOP plan, but actually listening to what our concerns were and then acting in a way we certainly believe is responsible and acceptable. Thank you very, very much.
If we could please ask Ms. Denise Earley representing the Chamber of Commerce to come forward and offer testimony. (Ms. Earley approached the witness table.)
Good afternoon, Chairwoman Reynolds Brown and members of the Committee. For the record, I am 67 2/12/08 - PARKS - BILLS 080078 and 080084 Denise Earley. I'm the Director of Public Policy for the Greater Philadelphia Chamber of Commerce, and I am pleased to come here before you today in support of Bill 080084. This bill provides the lease agreements between the City of Philadelphia, the Fairmount Park Commission and the Fox Chase Cancer Center that would finally bring this much-needed expansion project underway. As you are aware, the Greater Philadelphia Chamber of Commerce has been a very staunch supporter of the expansion plan for a number of years, and Mark Schweiker has personally testified in support of it before this Council on a number of occasions, most recently on November 26, 2007 on a companion bill 21 that approved the zoning for this project, and attached to my testimony today is an article from January 2005, over three years ago, that appeared in the Philadelphia Inquirer from Mark 68 2/12/08 - PARKS - BILLS 080078 and 080084 Schweiker urging the Fairmount Park Commission to approve this plan. For 100 years, the hospital of Fox Chase Cancer has been providing the highest level of cancer care while making important research discoveries which have contributed to the transformation of our understanding of cancer. Utilizing a current 750,000 square foot facility, the Fox Chase Cancer Center is a world-renowned comprehensive cancer center that is literately bursting at its structural seams. Fox Chase treated 740 new patients in 1980 and is expected to treat between 9,000 and 12,000 new patients in 2010. As you likely know, the problem of cancer in the Commonwealth and the nation is growing with the aging of our population. At Fox Chase, patient care now represents 40 percent of its mission, while research and scientific enterprise account for the other 60 percent. From the medical standpoint, 69 2/12/08 - PARKS - BILLS 080078 and 080084 let me emphasize that a preeminent institution like Fox Chase Cancer Center reflects well on Philadelphia and the entire region. Its life-improving research and care is well known and attracts not only needy patients and their families but the world's finest cancer researchers. In fact, researchers at Fox Chase Cancer have earned recognition and significant honors, including the Nobel Prize in medicine. The facts are clear. This $1 billion expansion over years will 15 create 4,000 new jobs and more than $40 16 million in additional tax revenues for 17 Philadelphia and Pennsylvania. More 18 importantly, the expansion would enable 19 Fox Chase to double its ability to treat 20 cancer patients from around the world as 21 well as those in its own backyard. 22 It is worth noting that the 23 plan has been significantly scaled back 24 from 35 to 19.4 acres in order to 25 preserve as much parkland as possible. 70 2/12/08 - PARKS - BILLS 080078 and 080084 In addition, Fox Chase is a proven and good neighbor and an asset to the community, providing beautifully landscaped grounds and added security in the neighborhood. Fox Chase has worked hard to provide employee off-street parking to address residential parking concerns, and they have more than met each and every request made of them to bring this project forward, and they deserve to be commended for their diligence and perseverance over the last four years. Finally, I would like to applaud the sponsor, Councilman Brian O'Neill, for his tireless efforts in working with the community and Fox Chase to bring this project to fruition. Thank you for this opportunity.
You're welcome, Ms. Earley. Any comments, observations, questions from members of the Committee? (No response.) 71 2/12/08 - PARKS - BILLS 080078 and 080084
What I will simply offer to the Chamber is in the few years that I've been here, it's rare for me to be a part of a discussion where the developer in question has looked to and taken seriously issues raised by this Committee. Going forward, I think when representatives of corporate Philadelphia come before the Chamber seeking Chamber support, it behooves the Chamber leadership to now help them understand that questions around green buildings is going to become the norm, questions around training opportunities and linkages with members of the higher education community and the School District is going to become the norm. Just like now, questions around an EOP plan is now the norm. So we want and appreciate and need the jobs that grow exponentially from enormous projects like this. Fox Chase has led by example in honoring requests by this Committee. Going 72 2/12/08 - PARKS - BILLS 080078 and 080084 forward, developers and corporations who come before us need to be more than adequately prepared to answer and address the questions of green buildings and training programs, et cetera.
We now will ask residents of the community. Jean Gavin -- forgive me. Councilman Brian O'Neill.
I'll keep it short. Rather than be in between the two groups.
And I'll try to be very brief. 73 2/12/08 - PARKS - BILLS 080078 and 080084 First I want to thank my colleagues for supporting me in late last term, in December, when there was a lot of bad information out there about this project and why it wasn't moving and a lot of finger pointing, mostly at me, and I had the support of my colleagues that I knew more about this project than what it needed, still needed at that time, to warrant it being held up, even though it was the end of an administration and a Council term. Again, I thank all my colleagues for that, and this is an example of District Council prerogative working the way it should. A District Councilmember working with community groups, knowing the community better than anybody else and trying to balance all the interests in as best a way as possible, and even bringing the Chair of the Committee three years earlier or two and a half years earlier to get a real feel for the area and the project site.
But a 74 2/12/08 - PARKS - BILLS 080078 and 080084 useful effort.
Absolutely. I probably in the last two and a half years during this period, or almost three years -- March will be the third year anniversary of the Fairmount Park resolution approving this project -- have probably attended 40 to 50 community meetings in Burholme Civic and Town Watch and the Fox Chase Homeowners Association, both areas impacted by this project. And while I don't think there's ever been unanimous support, as I've explained each time, the traffic solutions necessary that were still being worked on, the potential land purchase, which never materialized -- but money to facilitate land purchase, should it become available, has materialized -- always had overwhelming support from those present, always had opposition from people you're going to hear today, who have their own view, and they're very much entitled to 75 2/12/08 - PARKS - BILLS 080078 and 080084 it, that no park ground under any circumstances should ever be taken for any reason. And there will be a court hearing on that, because it involves the will of Mr. Ryerss. This land was granted by Mr. Ryerss' will years and years ago, but we need final City action before the judge will hear that case.
And I feel very comfortable with this project in terms of balancing all those interests. And I particularly want to thank our former colleague and new Mayor, Michael Nutter. He met with me on his first full day in office. We discussed the project, what had happened, what I thought could be done, and Mayor Nutter within three weeks on -- two weeks ago today, I think it was the 29th of January, convened a meeting in his office with members of the hospital, the Fairmount Park Commission, myself and some legal people from the City and the other entities, and within 76 2/12/08 - PARKS - BILLS 080078 and 080084 an hour, hour and a half, we had a consensus on all the issues that had been outstanding at the end of last year that were unresolvable in December were resolved by the Mayor. Even the community benefits agreement, which the hospital couldn't sign until they actually signed an agreement with the Park Commission, the Mayor came up with the solution, which I think is preferable to anything I had envisioned, and, that is, just taking the money, putting it in our Capital Projects Fund. So there's clearly a public purpose, it clearly has to go through all the hurdles of what is a capital project for those neighborhoods. And it just broke every problem down, and we didn't leave until it was settled. And here we are two weeks later, all the agreements -- if you've seen, it's about an inch thick -- have been put together. Everyone gave a little. Everyone got a lot. And I really want to compliment him. If it's 77 2/12/08 - PARKS - BILLS 080078 and 080084 any indication of what the next four years are going to be like, I think we're in for a good ride. Thank you.
Please, if we could ask residents Jean Gavin and Michael Hardy to come forward, offer testimony. (Witnesses approached the witness table.)
You may want to take them separately, because they're opposing -- I think you're going to get opposing testimony from them.
How are you? 78 2/12/08 - PARKS - BILLS 080078 and 080084 Sir, Mr. Hardy, I'm going to exercise what's called a chairperson's prerogative and ask you to please allow her to speak and then you'll have the table. Okay?
You're an at-large Councilperson. How could you do prerogative things? I don't see how that works. (Laughter.)
Madam Chair, there's a group of people who are very dedicated to opposing this project and they're very clear from the beginning. Ms. Gavin is one of them. There are others here. I'm just thinking it may be better, as you hear their views at one time, especially since we had this before -- and Mr. Hardy is probably one of the few people here in support of it 79 2/12/08 - PARKS - BILLS 080078 and 080084 from the community.
See, I misunderstood. Forgive me. I thought you were also not in favor of this enterprise. So if I could just ask you to step behind the gate, we can give everybody an opportunity to have their say. Good afternoon. For the record, Ms. Gavin, were you here with us in November?
Okay, then. Thank you very much. Please state your name for the record and provide your testimony. Let me ask, do you have written testimony?
Well, I have notes, only because I only read about this this morning in the public record. That's how I am here today.
It's not a problem. We don't mind you having notes. 80 2/12/08 - PARKS - BILLS 080078 and 080084 We just want you to stay on point with your testimony.
Right. Okay. Let me know if I go off the point. My name is Jean Gavin. I live in Fox Chase. My home is on Rhawn Street. Rhawn Street is one of the major thoroughfares. The other one is Cottman Avenue. They're the only two major thoroughfares we have, and yet I can't get a copy of this traffic report that they keep talking about. I cannot see any way that the traffic can do anything but make our neighborhood turn into a slum, because people are going to move out. And nobody mentions that bridge, that CSX bridge, on Cottman Avenue that's ready to fall in. Try walking across that. When you come to Burholme Park the next time -- and I wish you would come. I give tours at the Mansion every Sunday afternoon from 2:00 to 4:00. I am happy to have people come, and Councilman included, because I don't 81 2/12/08 - PARKS - BILLS 080078 and 080084 think he's been in that place in a long time or walked that park. Now, we're losing all of that park. It certainly will be safer because it won't exist, and it certainly -- there won't be anything happening there, because the Fox Chase Cancer Center intends to take the guts out of our park. They will go from Shelmire Avenue that they're admitting is a street here in this public hearing notice. They've been saying all along it's their driveway, Shelmire Avenue. They are taking our park from there to Cottman Avenue, and it's going from the street that goes up to the Mansion over to the river that's in the middle of the woods. They're taking the guts of the park. What we have left is west of that little stream in the woods. That is at such an angle, the reason why the City bought that was because they're trying to protect that waterway there, that we use that for drinking. And the other side they're 82 2/12/08 - PARKS - BILLS 080078 and 080084 taking -- they're saying they're saving the playground. That playground -- they'll find a reason to take that playground. They intend to go right up to the part of the Mansion that is the Carriage House. So they will be taking all of the central part of our park. We will have the building, the Mansion, the Carriage House, I'll bet very little, if any, parking and coming down the road to the ball fields in the front that Councilman O'Neill made sure that was no 14 longer open. He's put ten- or 12-foot fences all around that area so you can't -- that's not an open field any longer. Saying to protect the field. Give us a break. There's plenty of land between the playing area and the streets. Plus he wants to make Cottman Avenue wider really. He could have put trees there between the playing area and Cottman, or bushes at least. No, he has to put up great big fences. I thought that we needed a 83 2/12/08 - PARKS - BILLS 080078 and 080084 two-week notice before we have meetings like this here today. My notice was today, and this public record came out February 7th. Today is the 12th. Two weeks have not passed. If this really was a public hearing, it would be held in Fox Chase and Burholme and it would be held in the evening when the working people would be able to attend, and that two-week notice would have been in the local papers so people would know about it. Now, I watch the Inquirer every day. I watch this public record, and I didn't know until this morning, because I got this paper yesterday, that this meeting was being held today.
Let me just advise you, you've spoken out for about five minutes offering testimony. You say you do have notes and you've re-articulated a number of answers that were addressed by previous testifiers. So I'm going to give you about five more 84 2/12/08 - PARKS - BILLS 080078 and 080084 minutes to honor your notes and then we need to move on.
Okay. We hear that the Fox Chase Cancer Center is here to study, to cure cancer. I have a book that says it cures cancer. It's called The Cure for All Cancers and it was written by Hulda Clark, and she is a researcher, and Fox Chase Cancer Center does research. I think they should research from what she is doing, at least study it. It says, "We are accustomed to thinking about a cure for cancer. We think of remission as the only possibility. But this book is not about remission. This is about cure. This is possible, because in 1990, I discovered the true cause of cancer. The cause is a certain parasite, for which I have found evidence in every cancer case regardless of the type of cancer. So lung cancer is not caused by smoking. Colon cancer is not caused by a low roughage diet. 85 2/12/08 - PARKS - BILLS 080078 and 080084 Breast cancer is not caused by a fatty diet." I know that because I've had breast cancer and I don't eat fatty things. "Retinol blastoma is not caused by a rare gene, and pancreatic cancer is not caused by alcohol consumption. Although these are all contributing factors, they are not the cause. "Once the true cause was found, the cure became obvious. But would it work? "I set a goal of a hundred cases to be cured of cancer before publishing my findings. That mark was passed in December 1992. The discovery of the cause and the cure of all cancers has stood the test of time," and here it is. And if they really wanted to cure cancer, they would investigate this woman's work.
With that 86 2/12/08 - PARKS - BILLS 080078 and 080084 said --
-- let me remind you that any and all documents shared by members of the Committee are public documents. So you're welcome to get that over here. You had one comment about not being privy to information. Councilman Brian O'Neill stipulated what areas of the park are indeed being protected by this new expansion, and your issues raised around the Streets Department lanes, traffic lanes and the like, in my view, have been fully researched and stipulated by Rina Cutler.
Please let me finish. All of these documents are available for you to have and take with you over here on this side table.
And then, 87 2/12/08 - PARKS - BILLS 080078 and 080084 finally, with regards to the advertising of meetings, I've checked with my technician colleague friend, Councilman Frank DiCicco, that because you saw it recently in the public record, we have to follow the law which says there has to be at least seven days' notice. Is that correct? COUNCILMAN DiCICCO: Yes.
And so there may have been other publications where there was notice of this meeting. But know that the Chief Clerk's Office is clear and thorough in making sure we follow the law and give citizens adequate notice of meetings. So I needed to respond --
Should it have been in The Breeze, the local paper, letting people know that this meeting was being 88 2/12/08 - PARKS - BILLS 080078 and 080084 held?
It should have been in The Breeze. That's the local throw-away paper. Everybody gets it. They don't have to pay for it.
Well, the bottom line is this: We honored the law and stipulated by the Chief Clerk's Office. We thank you for your testimony.
Thank you for caring about your community. Thank you very much. Anyone else here to testify on Bill No. 080084? 89 2/12/08 - PARKS - BILLS 080078 and 080084 (Witness approached the witness table.)
Sir, you want to state your name for the record? Good afternoon.
I will give the Clerk my written testimony. I only made one copy. Unfortunately, I can't distribute anything else.
Not a problem. We'll make copies. We simply ask that you stick with your testimony, as we have a few more witnesses before we take action on this measure. Were you here in November as well?
Okay. My name is 90 2/12/08 - PARKS - BILLS 080078 and 080084 Fred Maurer. m. today I was informed of this Committee hearing on Bill 080084. This day to honor the accomplishments of President Lincoln should recall his message that the union cannot be dissolved or allowed to split because it is perpetual once signed and ratified by the states. This notion of not dissolved or split in perpetuity should ring in your ears today. Lincoln did not have an easy time in Philadelphia because the businessmen and the cotton manufacturers wanted free trade and bales of cotton to create their private wealth. This ordinance today is designed to remove perpetual care of Burholme Park and to split it for a private user and their private wealth, and cotton money still leads today. The sponsor of this bill is a lawyer and he knows it is wrong. It is wrong. The sponsor has a long private 91 2/12/08 - PARKS - BILLS 080078 and 080084 motive to harm the general public welfare and the good of this park. This bill is a renewal of Bill 070596 that he allowed to lapse in December after it was amended. This is the same bill disguised with a few words to include the City PAID agency as a straw man and with no 9 amendments as a continuance. The preface of this bill as authorizing the President and Executive Director of Fairmount Park Commission to enter into land leases for the sole benefit of Fox Chase Cancer Center is the intent continuity. There is significant opposition -- there is significant public opposition to this park taking when you received and recorded the testimony at the Parks and Rules Committee on November 26th, '06 on Bill 070956 as sworn testimony from seven, actually eight persons. The names were Fred Maurer, Gerald Waln, Paul Canty, Mary Tracy, Doris Simon, Jean Gavin, Kate Friend and 92 2/12/08 - PARKS - BILLS 080078 and 080084 Fred Guass. The testimony of Gerald Waln was as one of the heirs of the park and its donation forever. My testimony that day was stopped when the Chairman said that she did not want to hear anymore. The Chairman promised to include my written testimony into the transcript. When I checked later, it was not done. The testimony of Mr. Tim Kearney, who was present for two hours that day, and he was called. His printed testimony was received and passed out for all 16 Councilmembers as a public record. After he was called and after he left, the Chairman promised to write his testimony into the record, but that testimony has not been recorded into the transcript. At a joint hearing in November, with only a few Councilmembers changed in this year, all of this sworn testimony is still fresh and relevant testimony today. 93 2/12/08 - PARKS - BILLS 080078 and 080084 As the Councilmember expressed after the November hearing, Councilmembers I should say, that they don't know what to do, so let the courts decide. If that is your attitude as lawmakers, then it is useless for the public to testify and to expect justice or honor before you. I'll close with a message I made at the February 8th Commission meeting -- that's this year -- on the same matter as for the amended resolution 14 of March '05 to refresh the situation for them. We have had only one public meeting on November 30, 2004 at the Fox Chase Cancer Center -- Fox Chase public school. The room was full, and I noticed about 40 Labor members were present in the audience to pack the audience and to cheer. Most were the Carpenters and the Electricians Union. The public testimony was from 83 persons. I examined the content and 94 2/12/08 - PARKS - BILLS 080078 and 080084 counted 46 persons' support to save the park, including employees of Fox Chase Cancer Center, including four persons who said you had to compromise because it was a done deal and you can't win against them. Of the 45 percent others to kill the park, many were purely Fox Chase Center officers and the Northeast Chamber of Commerce.
Of the few local residents who supported to give away the park, there was a constant repeated theme: Give it away to keep out the undesirables. Of the businessmen and unions talking to take the park -- I would point out they had a money interest in it, they did not have a park -- they had a money interest in it. The person who talked last was Mr. Pat Gillespie. He said that they are willing to demolish a park and build it anew. I did not hear of any free land or free labor and free materials, but we did 95 2/12/08 - PARKS - BILLS 080078 and 080084 hear Fox Chase Cancer Center, Dr. Young, call the golf course a commercial use in a park. When that public meeting ended, there was a promise to call a second public meeting, but we are still waiting for that promise to be held. Thank you.
Thank you very much for your testimony. Any questions for this witness? (No response.)
We thank you, sir, for your testimony. Any other witnesses pleased to speak on this bill? Please come forward to the table. (Witness approached the witness table.)
Good afternoon, sir. State your name for the record and proceed with your testimony.
My name is Michael Hardy and I'm one of the co-founders of 96 2/12/08 - PARKS - BILLS 080078 and 080084 the Burholme Civic Association and Town Watch. I have lived in Burholme for over 40 years a few blocks from the park. I have been a user of the park, my children are users of the park, and my grandchildren now are users of the park. As a private resident, I strongly support the Fox Chase Cancer Center expansion. The benefit of the park --
-- to our community remains after the expansion. That is, the Ryerss Museum, playground, sledding hill, ball fields and picnic grove area stay. In fact, when the existing commercial establishments are removed, the golf driving range, the miniature golf course and shops, there's more park area available for use, and you create a flow from east to west in the park. The nature of the work of the Cancer Center in treating and finding a cure for cancer far surpasses any 97 2/12/08 - PARKS - BILLS 080078 and 080084 perceived loss of parkland to our community. All of our lives have been affected or will be by this terrible disease. In my life I've lost my mother, my wife and my sister-in-law. How can one not support this humanitarian work? I thank you very much.
We thank you very much for your testimony. Any questions, comments for this witness? (No response.)
Sir, we do have a question from Councilmember Maria Quinones Sanchez.
Are you still part of the Burholme Park organization?
I no longer hold a position or an officer, but the meetings I attend. And where they're held is only 98 2/12/08 - PARKS - BILLS 080078 and 080084 a block from where I live, so I generally go to the meetings on the second Thursday of the month.
How many members? The average attendance at a meeting would be 50 to 70 depending upon an issue, and if it's an issue like the Burholme Park, it could go to a hundred.
In an interest to respect and honor the schedules of testifiers on this particular bill, we're going to do the following: We're going to bring this hearing to a close, go into a public meeting, move this bill out of Committee, vote on this bill up or down, move it out of Committee, then go back to a public 99 2/12/08 - PARKS - BILLS 080078 and 080084 hearing to take care of our second order of business. So with that said, this concludes our public hearing. We are now going to go into a public meeting. I will ask Councilmember Frank DiCicco to please make a motion on Bill 9 No. 080084. And we want to ask or request that there be a suspension of the rules. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that Bill No. 080084 be reported out of this Committee with a favorable recommendation -- is there amendments? (Yes.) COUNCILMAN DiCICCO: I'm sorry. I will rephrase that. I move that the amendments to Bill No. 080084 be approved. (Duly seconded.)
The amendments have been moved and seconded. All in favor say aye. 100 2/12/08 - PARKS - BILLS 080078 and 080084 (Aye.)
Therefore, the amendments to Bill No. 080084 have been approved for consideration. We will now ask for a motion on the bill as amended, Bill No. 080084. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that Bill No. 080084 as amended be reported out of this Committee with a favorable recommendation and a further recommendation that the rules of Council be suspended so as to permit first reading in our next session of City Council. (Duly seconded.)
This bill 21 has been moved and properly seconded. All in favor say aye. (Aye.)
All opposed? 101 2/12/08 - PARKS - BILLS 080078 and 080084 (No response.)
Therefore, Bill No. 080084 as amended will be reported out of this Committee with a favorable recommendation and further moved that the rules of Council be suspended so as to permit first reading at the next scheduled session of Philadelphia City Council. We thank you all here for this bill number. We thank you for your attendance and your presence. We will now move back into a public meeting, and I will ask our Clerk, Joe Meade, to read the title of Bill No. 17 080078.
An ordinance 19 authorizing the President of the Fairmount Park Commission, the Executive Director of Fairmount Park and the Procurement Commissioner, on behalf of the City of Philadelphia, to enter into a Concession Agreement with Billy Casper Golf, LLC, under which Billy Casper Golf 102 2/12/08 - PARKS - BILLS 080078 and 080084 LLC, would improve, operate, manage and maintain four 18-hole golf courses and one sports center under the jurisdiction of the Fairmount Park Commission, including Olde Course and Karakung Course at Cobb's Creek Golf Club, Franklin D. Roosevelt Golf Course, John D. Byrne Golf Course and the City Line Sports Center; all under certain terms and conditions.
We thank you very, very much. If we could please ask the leadership, the Executive Director of Fairmount Park, to please come forward, Mark A. Focht, and provide testimony on this bill. (Mr. Focht approached the witness table.)
Let me start off first by saying thank you very, very much for the briefing last Thursday.
It was quite informative and gave us an 103 2/12/08 - PARKS - BILLS 080078 and 080084 opportunity to at least hear what lies before us and discuss any potential wrinkles that we're able to figure out today.
It was our pleasure. Thank you. And, again, good afternoon, Chairwoman Reynolds Brown, Vice-Chair Jones, Committee members. I'm Mark Focht, Executive Director of Fairmount Park. On my left is Barry Bessler, the Chief of Staff for Fairmount Park. On my right is Doug Kubinski, Director of Properties and Concessions Management for Fairmount Park. We appear before you today on behalf of the Fairmount Park Commission in support of Council Bill 080078 authorizing the City of Philadelphia, through the Procurement Department and Fairmount Park Commission, to enter into a long-term Concession Agreement with Billy Casper Golf, LLC, to improve, operate, manage and maintain the golf courses specified in this bill. Golf facilities under the 104 2/12/08 - PARKS - BILLS 080078 and 080084 jurisdiction of the Fairmount Park Commission have been operated through private concession agreements since 1985. Improvement in our approach to management of the golf facilities is a significant recommendation of the Fairmount Park Strategic Plan, of which you are very aware and supportive of, and Park staff has been working diligently for over a year to address this recommendation through the City's required request for proposal, or RFP, process. Prior to issuing the RFP, Fairmount Park staff conducted research on best practices used in other municipalities with multiple golf courses. The RFP was drafted and reviewed by an array of City agencies, including the Mayor's Office, Managing Director's Office, Finance, Budget, Procurement, City Solicitor, Health, Recreation, Minority Business Enterprise Council and Fairmount Park staff. We met in very large meeting rooms to 105 2/12/08 - PARKS - BILLS 080078 and 080084 accommodate everyone's interest. The RFP was publicly advertised, and golf management companies from across the country were directly solicited. An RFP selection committee was formed, comprised of representatives of many of these same City agencies. In addition to close scrutiny of each proposal submitted in response to the RFP, the committee conducted interviews with each respondent and reviewed references, financial data and planning strategies. Ultimately, Billy Casper Golf, LLC of Vienna, Virginia was selected for the concession agreement. Billy Casper Golf has an 18-year history as a management golf company, including experience managing more than 50 municipal golf courses throughout the United States. Their mission is solidly based in golf operations, and they have a national reputation as a leader in facility management and maintenance, marketing, 106 2/12/08 - PARKS - BILLS 080078 and 080084 agronomy and customer service. Their references, which include multiple public course arrangements in Cook County, Illinois, outside of Chicago, West Chester, New York and Cincinnati, Ohio, are impeccable. The public golf industry has become increasingly competitive and in order for the City's courses to be successful, improvements must be made to both the condition and the management of the courses. Therefore, the business terms of this Concession Agreement are aimed at improving the courses so they can operate at their full potential, serving all users. 5 million in payments and capital improvements to the courses, including a $350,000 investment in the first year of the agreement. The golf facilities will also benefit from an aggressive revenue-sharing structure. 107 2/12/08 - PARKS - BILLS 080078 and 080084 The more revenue that is generated at the courses, the more money will be available for course improvements. Along with annual savings to the Park from no longer operating the facilities as we have for the last two and a half years, the positive financial results from this agreement exceed $8 million over ten years, and the conditions of the courses will improve. We are also confident that increased use of the golf facilities resulting from capital investment, improved conditions and aggressive marketing will drive that amount even higher.
Several issues were raised when we briefed members of the Council and this Committee last week on the Concession Agreement, and I would like to address them directly. The first issue involved maintenance of the courses, particularly along the perimeters. This Concession Agreement obligates Billy Casper Golf 108 2/12/08 - PARKS - BILLS 080078 and 080084 full responsibility and expense for all care of the golf facilities. This care and maintenance extends beyond the actual courses to the perimeters of the facilities and includes turf and tree maintenance and snow removal, and seeks to establish good working relations with neighborhood residents. 2 of Exhibit B of the proposed Concession Agreement. The next issue involved outreach to schools in the vicinities of each course. Fairmount Park golf courses have had a long history of providing high schools, PAL centers and summer camps with golf opportunities. In addition to improvement to the condition and management of the golf facilities, Billy Casper Golf is contractually committed to expand and enhance youth golf opportunities, especially for those 109 2/12/08 - PARKS - BILLS 080078 and 080084 schools that may not currently use the facilities. And based upon our conversation last week, an amendment to Bill 080078 will specifically require Billy Casper Golf to provide to Fairmount Park and City Council a school outreach plan by June 1st of this year for engaging local schools in the sport of golf, as well as programming and seasonal employment opportunities available at the courses. Again, this plan will be submitted to Fairmount Park and City Council by June 1st of this year. The plan will then be implemented beginning with the 2008-'09 school year. In addition, Fairmount Park staff will also investigate the potential throughout the City for increased public golf programs with the School District of Philadelphia. The third item that was raised in our meeting was a possible future use of our golf facilities for tournament play. Fairmount Park's golf facilities, specifically Cobbs Creek or especially 110 2/12/08 - PARKS - BILLS 080078 and 080084 Cobbs Creek Golf Course, have hosted many local and regional tournaments over the years. The idea of hosting a more national golf tournament is appealing and has been discussed with our partners at the Philadelphia Sports Congress, on whose Board I serve, and with our prior management operators. While there are some obvious challenges of size and space at our courses, particularly Cobbs Creek, Billy Casper Golf has experience and knowledge to pursue such an undertaking, having renovated other courses in their portfolio for tournament play. To be clear, such a national event would require significant capital investment to bring the Cobbs Creek Golf Course up to an appropriate standard for such an event, but we have already discussed this with Billy Casper Golf. The fourth item from our meeting last week involved a request for periodic reports on the status of golf operations. Billy Casper has agreed to 111 2/12/08 - PARKS - BILLS 080078 and 080084 an amendment to the Concession Agreement which will require that they provide to Fairmount Park and City Council a, quote/unquote, "State of the Courses" report every two years on the anniversary date of the Concession Agreement. This document will report on provisions of the Concession Agreement, including, but obviously not limited to, course conditions, the financial performance, special activities, compliance with the employment opportunity plan and school outreach and engagement. The final issue that we discussed last week was the Equal Opportunity Plan, or EOP, its monitoring and enforcement. As I stated at our meeting, the obligation to monitor and enforce the EOP rests with us at Fairmount Park, as does any provision of any of our legal agreements.
I and Park staff take this role very seriously and will monitor this Concession Agreement to ensure compliance with all of its 112 2/12/08 - PARKS - BILLS 080078 and 080084 provisions, including the EOP, throughout the term of the agreement. However, in response to concerns heard from this Committee, additionally, Billy Casper's EOP, Equal Opportunity Plan, Exhibit F, Section 4(D)4 has been amended to specifically make non-compliance with the EOP an event of default under the Concession Agreement. In order to implement the above, we request that this Committee amend Ordinance No. 080087 by replacing the prior version of Exhibit 1 with a version we forwarded to the Committee members yesterday and which was just passed out to you. 7 of the Concession Agreement to require Billy Casper Golf to submit to Fairmount Park and City Council by June 1, 2008 a plan of outreach and engagement to local schools surrounding the four courses to 113 2/12/08 - PARKS - BILLS 080078 and 080084 be implemented at the beginning of the 2008-'09 school year. No. 9 of the Concession Agreement to require Billy Casper Golf to provide to Fairmount Park and City Council a "State of the Courses" report every two years on the anniversary date of the Concession Agreement. And, finally, 3, amend Billy Casper's Equal Opportunity Plan, Exhibit F, Section 4(D)4 to specifically make non-compliance with the Equal Opportunity Plan an event of default under the Concession Agreement. We are confident that this new Concession Agreement with Billy Casper Golf Management promises a bright future for the City golf courses. The Concession Agreement before you today was approved unanimously by the Fairmount Park Commission in November 2007. I, therefore, appear before you today to pledge the strong support of the 114 2/12/08 - PARKS - BILLS 080078 and 080084 Fairmount Park Commission and staff for Bill 080078. I would also request of this Committee a suspension of the rules for consideration at the next session of City Council. And I would like to thank you for your time, and I would be very pleased to answer any questions.
Any other testimony from other members of the panel there before we move to questions?
Very well. Councilman Frank DiCicco. COUNCILMAN DiCICCO: Thank you, Madam Chair, and good afternoon, almost good evening. I was not able to make the briefing. I apologize for that. I really wanted to go there and hear what you had to say. I actually started playing golf a few years ago. Let me rephrase that. I bought a set of golf clubs, and I hope 115 2/12/08 - PARKS - BILLS 080078 and 080084 that I'm not embarrassing the company whose logo is on those clubs. But in any event, I live in South Philadelphia and FDR, which is more commonly known as The Lakes, has been a place that I have frequented from a very young age, and more recently since I took up the game of golf I had the opportunity to go down there a few times. I don't know how to compare that with the other three golf courses, but rumor has it that it's probably the worst of the four, and a lot of it has to do with the flood tides and all those things. I was not aware until several months ago when I was down there on a very hot day and it was very dusty, there's no irrigation system down there, other than when the river exceeds high tide and the ground gets saturated and you have to wait a few days for it to recede and then presume to then resume playing golf or whatever. I know it's an expensive 116 2/12/08 - PARKS - BILLS 080078 and 080084 ordeal, irrigation. I can't imagine what it would cost. Is there any consideration long term? I know there are other improvements that need to be made, and that may not be the priority, but I just was curious if that's -- and it's not a deal-breaker. I'm not putting you on the witness stand as a deal-breaker. I'm just kind of curious. The interesting thing -- and I suspect this may happen at the other courses as well -- when I first started going to the course -- again, I was a kid, I played on the fields but never on the golf course -- I was surprised at the number of people who play golf, number one, and who are from the area or even from South Jersey who maybe were former South Philadelphians who come back on a daily basis. It's a social gathering place in addition to the game of golf, which pretty much is what golf is really all about. And I was just kind of dreaming one day about if that place was 117 2/12/08 - PARKS - BILLS 080078 and 080084 ever to be given some sort of a really upgrade, improvements and maybe a clubhouse kind of an environment, I think there's a real potential there. But, again, it takes money, and I was just kind of curious of what -- and I'm not discounting the other courses. I really don't know anything about them. That's kind of in my neighborhood, so I was just concerned and have some questions about that.
Certainly, Councilman. The issue of irrigation system at all of our courses is a very significant one for the long-term sustainability of the courses, and as I said in my testimony, increasing the rounds of play to increase more revenue, which, through our revenue-sharing, will funnel more improvements back into the courses. So you are correct, it is an expensive item, but we can probably, in the case of FDR, no longer rely on Mother 118 2/12/08 - PARKS - BILLS 080078 and 080084 Nature's irrigation down there when they flood the courses, particularly that one, as you know. So putting in irrigation in all four of our courses will be one of our first issues of priority for capital improvements in our conversations with Billy Casper. As I testified, they will be making $350,000 worth of improvements in the first year of the contract alone. We have not yet sat with them to determine exactly how that will be allocated over the four courses and the sports center and what exactly will be done, but I would give you my assurance that irrigation is high on that list for all the courses. COUNCILMAN DiCICCO: This might be late in the game, no pun intended, but I was wondering if -- and I know a lot of work went into this agreement from all parties -- if there was an opportunity to tweak some of the numbers as it relates to what your contribution in regards to 119 2/12/08 - PARKS - BILLS 080078 and 080084 the contract was that will enable you to have more money for capital so you can get the capital stuff done sooner. Because from a business standpoint, the quicker you get that done, the likelihood is you're going to increase participation. But I don't want to rewrite this. I'm just thinking out loud.
The financial arrangements in the agreement have been the results of several months actually of negotiations. These were not the numbers that were in the original RFP, and, frankly, most of the respondents to the original RFP, which were, frankly, more aggressive financially for the benefit of the courses, the operators -- all proposers, I should say, came back to us and basically said we were a little crazy in thinking, based upon the condition of our courses now, how much money the rounds of play could generate that could then be plowed back into the courses. 120 2/12/08 - PARKS - BILLS 080078 and 080084 And so there's been a very delicate balance in wanting to make sure -- we have a long history of these courses, 5 years. They've been operated through a 6 string of private contracts, private 7 concession agreements, each of which at 8 some point in time have failed for 9 financial reasons, one or the other. So 10 going into this, that's why all those 11 City operating departments were involved, 12 with Budget and Finance and everyone, to 13 try and figure out what's the best 14 financial agreement for both parties, for 15 the City and for the operator. Because, 16 clearly, if we want a private operator to 17 operate the courses, we want them to be 18 successful. 19 Billy Casper has a great 20 history in this, so I think the financial 21 package that we're at is probably the 22 best we could do in this marketplace now considering the conditions of our courses. COUNCILMAN DiCICCO: Is there 121 2/12/08 - PARKS - BILLS 080078 and 080084 any opportunity -- I tried to get through it as quickly as I could. Is there any opportunity to revisit the financial considerations in a year or two that may make some of the business sense that I just talked about? If there was some further relief to the Billy Casper organization to say, look, we had committed to X, but if we get a little bit of relief here, we will plow additional money into the capital. We want it to work. I mean, everybody wants it to work. Is there any language in that document that --
That's addressed through a progressive revenue-sharing agreement that has certain thresholds, that the more money that they achieve at the courses through a series of thresholds, the more comes back into the courses. So it's in their best interest to meet those thresholds obviously from a business perspective, but also for us to help them reach those to get more money 122 2/12/08 - PARKS - BILLS 080078 and 080084 back into the courses. COUNCILMAN DiCICCO: Thank you.
Thank you. COUNCILMAN DiCICCO: No further questions. Thank you very much.
You're welcome, Councilman DiCicco. Councilwoman Maria Quinones.
You mentioned that your initial proposal, folks came back to you and said it was unrealistic. When we allowed to change the bid, did we send that back out nationally?
Yes. Working with Procurement then, we revised some of the terms and conditions of the RFP, and though it was not a formal reissue, it was sent back out to all the folks who had indicated interest in the project by coming to the pre-proposal meeting, going on the tours of the courses, basically working with us through the whole process. They got the information back, 123 2/12/08 - PARKS - BILLS 080078 and 080084 yes.
So it was only the folks who had expressed interest. We didn't go back to a national pool based on the revised RFP to see if there were some other folks --
Okay. I noticed that the terms of this agreement, initially we started with five and we went up to ten, but in the community setting one, we set up for one year. Are we working with them? I had an opportunity to spend time yesterday with both of the community operators, one which is Juniata, which is physically in the district, and Impact Services, which the course is not in the district but the provider is in the district. Are we working with them to make sure that whatever goals that we put in -- I was trying to skim through the contract before coming down, and these things are legalese stuff. 124 2/12/08 - PARKS - BILLS 080078 and 080084 What are we doing to secure their success in that one year so that in a year from now -- and my concern specifically is the community groups making investments and then in a year from now, we're not renewing their leases.
Sure. I'll speak specifically first to Juniata, because the Juniata Golf Foundation sent us plans that they have developed to take a portion of the building that they store the golf carts in and do renovation in it to convert it into a clubhouse, which, as we discussed when we were out there a few months ago, burned to the ground a few years ago via an arson fire. So we reviewed those plans. We've already given them feedback on those plans. Those have been approved by staff. We'll work them any ways they need it to make sure that they can build that renovation to build the clubhouse so they have a real setting. 125 2/12/08 - PARKS - BILLS 080078 and 080084 That's just one example. That's really the first one that they've come to us with a request for that specific course, but I would look to the Chief of Staff, who has had regular interaction with both operators. It's only been a few weeks, but it's been great so far in our relationship with them.
This is Barry Bessler. I would just add that also at Juniata they've submitted some preliminary plans for expansion of tee boxes and some turf renovation projects, as well as some cart path replacement that is sorely needed at that particular facility. And both of those projects, in addition to the clubhouse renovations that Mark suggested, have been met by our staff with resounding approval, because we know that these are things that are very much necessary on the course and can only improve conditions, which drives 126 2/12/08 - PARKS - BILLS 080078 and 080084 rounds, and everybody is happy at that point.
Their revenue goals are pretty aggressive, because they always count on -- well, it counts on them sustaining the same type of revenue. How realistic is that?
Well, their revenue projections are based on, I think, the past five years of history that they've done. So they are very confident and ambitious that they can meet those goals. And allowing them to do the kind of improvements that they're talking about can only add to that. I would also say from Fairmount Park's standpoint that just after the first of the year, we committed to an extensive tree work contract of $75,000, I believe, for much-needed tree work at all of our courses as a way of showing our good faith to them for the enterprise that they were undertaking, that this is stuff that normally would fall to either 127 2/12/08 - PARKS - BILLS 080078 and 080084 a concession operator or a non-profit operator to be responsible for, and we took that on and said, This is something that we would like to do for you in exchange of you helping us with these contract arrangements.
Are there any trigger points where we're reviewing this to make sure that the revenues are being met? Because they're going to spend at a certain rate. I mean, other than the lease agreement and they're responsible -- because this is the first time they're doing this.
Right. They have a $1 per year non-profit lease arrangement with us, and the revenue projections that they made, if they're on target, is obviously in their best interest. If they're not, that's why we've entered into one-year agreements with both of these operators. If they feel after a certain period of time that they cannot do it financially, it gives 128 2/12/08 - PARKS - BILLS 080078 and 080084 them a bail-out, as well as us if we would seek to do something else with the properties.
I would also add, I think, to your question, there's no 7 specific trigger points. We don't have anything in our lease with them where we look at their financials on a monthly basis or a quarterly basis. The way the lease is drafted, it's annually. I think certainly we could do it. Particularly if you have a concern or we have a concern, we could look at their financials on a quarterly basis.
I want them to be successful, but I don't want to have the conversation in September when they're due up for renewal in October.
I was concerned after our briefing and that's why I scheduled those visits yesterday, and I want to make sure that we're being 129 2/12/08 - PARKS - BILLS 080078 and 080084 as proactive as possible, because unlike these other folks, they got one year to make it or break it. I have a vested interest that Juniata is successful. It's in a more challenging community because the demographics are changing. There's more vandalism and some other issues. So I'll ask Mr. Bessler to join me as we kind of look at some of those real challenges, because my goal is to make them successful. I just want to make sure that we're just not leaving them out there.
No. I agree, and they've been able to -- that group in particular has been able to garner a tremendous amount of community support and the support of other legislators and other community interest groups, if you will, to further their cause. So I really think that they will be successful, and we certainly hope that that's the case.
Thank you. 130 2/12/08 - PARKS - BILLS 080078 and 080084 What I have been struggling with trying to find here is the exhibit that stipulates that Philadelphia area public or charter schools adjacent to the golf courses will be involved with the Casper enterprise.
Councilwoman, what it is is, it's Exhibit B, Section 3.7, and what it requires is that, again, Billy Casper Golf submit to Fairmount Park and City Council by June 1st this outreach plan of engagement to City schools, both engaging them about the sport of golf, employment opportunities, health and fitness opportunities. So, again, the way it's structured, the way the amendment is structured, is, Billy Casper would produce a plan to submit to Fairmount Park and City Council by June 1st for our review for them to put in effect when schools commerce again this September, for school year '08-'09.
Okay. I'm 131 2/12/08 - PARKS - BILLS 080078 and 080084 going to need you to find out, is that in this document here? I need you to help me find out where it is.
I did some of the drafting on this and some of it is done kind of circuitously, especially the amendments, but if you look at the Concession Agreement, Section 16.07. So it would actually be 16.07(a). That's where we put in the provision that "Billy Casper Golf shall submit to Fairmount Park and Philadelphia City Council by June 1, 2008 a plan of outreach and engagement to local schools surrounding the four courses to be implemented at the beginning of the 2008-2009 school year for the duration of the Concession Agreement," and then "such plan shall 132 2/12/08 - PARKS - BILLS 080078 and 080084 include, but not be limited to, outreach to promote school golf programs, youth programs and seasonal employment." That's , Section 16.07.
That is actually stronger. The language here is actually stronger than that reflected in the letter, which speaks, I guess, somewhat generically. Okay. So that was one concern raised at the briefing. And then the other, in the body of the letter presented to us on February 11th, Item No. 3, it says, the Equal Opportunity Plan as an, quote, "event of default," end quote. What does that mean, "event of default"?
Sure. An event of default is when you default someone under the contract. So if Billy Casper in this case didn't comply with the terms of the EOP, then we could hold them in default of the contract. Hopefully we would never get to that point. We would 133 2/12/08 - PARKS - BILLS 080078 and 080084 never plan on getting to that point, but it's an item of recourse.
Okay. And so what is the recourse? What's the penalty? What is the clawback?
It's severing our contract with them. This was done in direct response to your question at our meeting last week, what is the claws, I think you asked us. This is that. What it is is that if Billy Casper is not in compliance with their EOP, it gives us, the City, the ability to sever our agreement with Billy Casper so they no 16 longer operate the courses and we move on. Then we figure out what to do. I don't know what the options would be, but you asked specifically for what is the remedy, if you will.
Does this document -- it stipulates that we will 134 2/12/08 - PARKS - BILLS 080078 and 080084 get a plan by June 1st. However, it does not provide either the Fairmount Park or City Council an opportunity to comment on the plan should we deem it incomplete or unacceptable.
I apologize. That was implicit. We felt that by them submitting the plan, the submitting is for both Fairmount Park and City Council to comment on the plan. We can make that very clear if you'd like. So they would submit the plan by June 1st for both of our comments for them to implement with the beginning of the school year.
Yes. For our comments and for them to respond to our comments.
I'm just leaning on limited experience now. If it's not written down, it doesn't exist.
And we can't presume that those seeking to do 135 2/12/08 - PARKS - BILLS 080078 and 080084 business with the City are going to do the right thing, because we've had too many examples where they say it and then you listen to what people say and then you watch what they do.
I certainly appreciate that. It was our full intention at Fairmount Park that if someone shares a report with us and, on this particular report, with City Council, we comment on it and we give those comments back, with the expectation that they act on those comments.
Can you briefly, very briefly, tell me where we are with Strawberry Fields, 33rd and Oxford? 136 2/12/08 - PARKS - BILLS 080078 and 080084
We are waiting on another response from Sintera on their most recent revision to their financial package. They came back to us about a month ago with a new financial package that was very, very different than what I had agreed to about ten months ago with the leadership there, and, frankly, it was so dramatic that it might have triggered rebidding the entire project. So we went back to them through the Law Department, through Larry Copeland, and said, This isn't acceptable to the City or the Park. They have come back verbally via telephone call to Larry Copeland from their attorney saying, Well, here's what we're thinking about. But we've not received anything in writing yet. So we're squarely waiting for Sintera Partners to give us a revised proposal, knowing that the one they gave us about a month ago was not acceptable to the City or the Park. 137 2/12/08 - PARKS - BILLS 080078 and 080084
The verbal discussion reflects something that could be acceptable?
It was very vague. It was very vague. What they did is, they acknowledged that what they had offered previously was not acceptable to us and that they understood that this may cause us to have to rebid the project and so they wanted to retrench and come back to us, and we're waiting.
Is there a timeline on the submission of the most recent?
We ask for them -- every time we speak with them, Councilman, we remind them that we want them in the ground this spring, but the ball is squarely in their court to get us information. Right now we don't have a deal.
This is a back and 138 2/12/08 - PARKS - BILLS 080078 and 080084 forth volley between --
Is there some point where we say, You haven't met your responsibilities and duties as it relates to this submission?
It could come to that, yes. I mean, we don't have a set -- we have not set a time for that. I mean, we've been trying to work with them in good faith. They were the successful bidder. They're a known quantity. And the plans they've done, the physical plans they've done, have been accepted by the Park Commission, had been vetted on any number of levels, and we consider the physical plans ready to go. The financial component of the deal is where we're still apart on.
Councilwoman Quinones Sanchez. 139 2/12/08 - PARKS - BILLS 080078 and 080084
Any other questions for these witnesses? (No response.)
Let me say thank you for working closely with my staff to ensure that concerns raised at the briefing were more than adequately addressed in the amendments. Thank you very much.
Anyone else to testify on this bill? Please. (Witness approached the witness table.)
Good afternoon. State your name for the record and offer your testimony.
Good afternoon. Thank you very much for this opportunity to testify this afternoon. My name is Lance Haver. I'm the Director of 140 2/12/08 - PARKS - BILLS 080078 and 080084 Consumer Affairs for the City of Philadelphia. I'm here to raise a very small point. I'm here to ask Council to consider requiring a discount for all City residents on golf fees. Historically we have not done that. The golf fees set by other contractors have been the same whether you're a City resident paying City taxes or you're a suburbanite not paying City taxes. While I recognize that golf fees are not a critical issue for most citizens, I believe that Philadelphia should price fees in accordance with what is done on other municipally owned courses. Other municipalities offer discounts to their residents. The reason is simple: Citizens of the municipality are already supporting the course with their tax dollars. The same is true in Philadelphia. Philadelphians, unlike others, have paid through their tax 141 2/12/08 - PARKS - BILLS 080078 and 080084 dollars for the courses and should be entitled to similar discounts that residents of other municipalities receive. Thank you.
Councilman DiCicco. COUNCILMAN DiCICCO: Thank you. Thank you, Madam Chair. Good afternoon, Mr. Haver.
Good afternoon. COUNCILMAN DiCICCO: You reference other municipalities. What is the structure in those other municipalities? Are they privately run? Are they municipally run?
With all due deference, I would say that this is a significant positive change, bringing in this firm to run the City's courses. This is a big step forward for us. Other courses have very different structures. Some are done privately, some are done municipally. 142 2/12/08 - PARKS - BILLS 080078 and 080084 The one thing that unites almost every municipally owned course in Pennsylvania is the discount for the residents. The management is sometimes contracted out, sometimes done through their own park system. COUNCILMAN DiCICCO: Look, I'm all for promoting Philadelphia and giving Philadelphians opportunities. I just don't know the business structure enough to know if it would make that much sense, because they do have an obligation to plow a certain amount of money back into the course. I think from their standpoint, once they get up and running, they may make a business decision to offer those discounts, because it may bring more people in or something like that. Again, on the one hand, I'm pro Philadelphia and buy Philadelphia and all that. I just don't know, since it's a whole new venture we're getting into, if we want to put another financial requirement, if you 143 2/12/08 - PARKS - BILLS 080078 and 080084 will, on the new folks that are coming in.
I would just point out, sometimes it's done during off -- COUNCILMAN DiCICCO: And I'm not arguing with you. I'm just trying to --
Sometimes it's done in the form of off-peak hours or twilight hours, that what has been set up in another places is non-prime time use of the courses, there's a discount for city residents. I'm sure that they will tell you -- if you're now golfing yourself, you must know -- there are certain times where it's harder to get on the greens than others, and there are ways of balancing that out. This is a very professional firm, has shown an excellent track record. COUNCILMAN DiCICCO: And, again, because of their professionalism and their desire obviously from a business standpoint to increase revenues 144 2/12/08 - PARKS - BILLS 080078 and 080084 by bringing more people to the facility, I think that would be a business decision that they would make, a conscious decision about offering some of those programs going forward.
I understand the wisdom of your statement. COUNCILMAN DiCICCO: But I appreciate your comments, though. Thank you.
It is a very, very interesting consideration, and I'll reserve my comment. We'll call on Councilwoman Maria Quinones Sanchez.
Well, I wasn't sure if Mark and them were prepared to respond. I'm sure if Lance was testifying, they knew this was coming.
Okay. So we'll have a friendly discussion about 145 2/12/08 - PARKS - BILLS 080078 and 080084 what is the financial impact, particularly if we're looking at off-peak hours.
Thank you. Again, Mark Focht, Fairmount Park. As Mr. Haver referenced, we have discussed this many times over the years in relation to our golf operations, and we have discussed this issue with Billy Casper Golf, and, in fact, their financial model in some of their other municipally run courses does offer different discounts for different users at different times of the day. However, my concern would be going into this particular arrangement -- Councilman, kind of along your train of thought -- kind of tying their hands financially before they really know the market, before they're in here operating these courses. Again, their business model in other urban courses outside Chicago, other places, Cincinnati, do have a tiered structure. 146 2/12/08 - PARKS - BILLS 080078 and 080084 I'm very concerned about the concept of pre-determining that that's what we should do with our courses, considering the very significant level of investment that needs to be made in our courses. And over the years when we've discussed this in the past with Mr. Haver and others, part of the lack of financial performance of our courses has been a number of stipulations or conditions that were put on the operator to address certain user groups. So I completely understand it and I'm philosophically in support of the concept, but I would prefer not to have it be part of the legislation. I would prefer it to be part of their business model, and perhaps in their reports back to the Park and Council every two years where they have to report on the business model and the financial performance of the courses, it could be a subject for evaluation, discussion as we move forward on these two-year intervals. 147 2/12/08 - PARKS - BILLS 080078 and 080084 Thank you.
And so how does the subject for evaluation or re-evaluation X number of years down the line differ from actually putting in the legislation that at whatever point you are at whatever revenue profit margin, you are then subject to discount for Philadelphia residents?
I guess part of the conversation, Councilwoman, would be not yet knowing what those points are, if it's a year, a year and a half, two years, if it's X millions of dollars. Again, they're not on the ground yet. They're not operating these courses. We know from operating them for the last year and a half that we lost a million dollars in the operations of these courses, as we shared with you last week, in operating all six courses at that time, not just these four, but that historically these courses have not performed financially. 148 2/12/08 - PARKS - BILLS 080078 and 080084 So, again, I would be concerned about setting a certain date in time or a certain financial threshold that would require that. Instead, and it's in the agreement, any changes of rates to the agreement have to be approved by the Executive Director of the Park. So Billy Casper Golf cannot just change the rates of the courses without us knowing it. It has to come back to staff. It has to be vetted, and at the end, I have to approve any changes to the rate structure. So as part of that continual evaluation, we can determine through their financial performance if we think it's appropriate, collectively we, all of us think it's appropriate to offer that rate structure, while at the same time knowing that we're not going to be taking away revenue that's so sorely needed to go back into the courses.
I guess 149 2/12/08 - PARKS - BILLS 080078 and 080084 my concern with this is that when we write these agreements, we either are very deliberate in specifying a spirit or we're not, and I happen to agree with Mr. Haver. Because we're subsidizing the maintenance of these fields and we are starting a new agreement, I prefer it to be the opposite, that we ask for some accommodations on non-peak, because then you're not infringing on their main revenue stream, but potentially creating a new revenue stream of people who would likely use the golf courses if they were more affordable. I mean, that has always been my concern with golf, and it was one of the discussions I had yesterday with Juniata, was the fact that it is not affordable. Someone like me should be able to afford it, and it's pretty expensive given the market, the marketplace. I mean, we know the profile of the person who is using it, and I look at this as an opportunity to create a new 150 2/12/08 - PARKS - BILLS 080078 and 080084 profile of someone, a Philadelphian who may not look at golf as an option, to look at golf, given the height behind the Tiger Woods and all those folks of the world. So since we are saying aggressively we want the schools to use it, if we're really serious about that, then we have to make it more affordable for the school to use it, because then they'd be doing outreach to a population who couldn't afford your traditional fees.
If I could address two points, please. One is, I think you referenced resources that we put into the courses. I just want to be very clear that under this Concession Agreement, the City has no obligation to put any money into these courses. So we're not actually subsidizing golf, because we're not spending anything. We have no staff at these courses. We have no operating or capital expenses into these courses. 151 2/12/08 - PARKS - BILLS 080078 and 080084 So, in fact --
But we have lost money, and those are taxpayer monies over the years.
But we've lost money during the time that we were managing them as a City entity, not as a for-profit business on a concession agreement. Also, the second thing with --
Correct, but they were doing it under a management agreement with the City, not a concession agreement, which is very different. The second component is, on the teams, I mean, there's a whole different structure for team play and school play that doesn't involve extensive fees. So the whole school issue -- and when they develop their school plan, they'll address it even more. The whole school issue is very separate from resident 152 2/12/08 - PARKS - BILLS 080078 and 080084 versus non-resident play. Again, I completely understand it. I just think that it is in Billy Casper's best interest to develop a multi-tiered fee structure to get as many people playing the golf as possible, because that improves their revenue via the revenue-sharing agreement we have. I'm just concerned about us dictating financial terms of an agreement which wasn't part of an RFP, wasn't part of a whole vetting process of selecting an operator for these courses, and that might tie their hands financially.
My question is, why wasn't it if it was an issue that Lance Haver brought up before?
It was chosen, again, through all the agencies that were involved in reviewing this to leave the financial operations of the course to be as wide open as possible to entice as many potential operators to bid on this -- and, again, we only got three, 153 2/12/08 - PARKS - BILLS 080078 and 080084 two national and one local. Fortunately, we're very pleased with the ones we got -- for them to structure the best business model to produce as much revenue back into these courses as possible. So it was discussed during the development of the RFP and it was specifically chosen not to put it in as a requirement because it felt that it was -- again, I keep going back to this phrase, but tying the hands of the operator.
Everyone that was on my list. I'm sorry. Procurement, Finance, Mayor's Office, MDO, Fairmount Park, Recreation, Health. Everyone that was on my list in developing the RFP.
Perhaps a way of balancing it would be to ask if we could re-examine it two years from now to give the new firm an opportunity to look at what's going on, and perhaps Council 154 2/12/08 - PARKS - BILLS 080078 and 080084 could just ask in two years to revisit the idea. If Billy Casper hasn't implemented themselves a discount for City residents, that City Council would then be able to enter that as a negotiation two years from now.
I'm going to take it a step further. When they come back on June 1st with the plan that accommodates and outreaches to the area schools, they would be well advised to indicate how those families of those kids that attend those schools have a chance to play golf at those courses.
Understood. And then in addition to that, if I may, Councilwoman, I would fully agree with Mr. Haver's suggestion that on the two-year anniversary -- again, our proposal is at the two-year anniversary of the commencement date. So if this Committee passes this, it is eventually passed by Council, we would hope to have an April 1st contract date so that Billy 155 2/12/08 - PARKS - BILLS 080078 and 080084 Casper would begin operating the golf courses on April 1st under this Concession Agreement, assuming it's signed by the Mayor and we execute the contract. So it would be April 1st of 2010, which be would the first two-year anniversary date and the first report is due in addition to your June 1st of 2008 that you just mentioned. So there would be an April 1st contract start, June 1st report, which could address the point you just made, and then an April 1st, 2010 full report, at which point we may find that Casper has already implemented the tiered structure, and if not, as we talked earlier, we jointly assess the report and come back to them with requirements.
Okay. Let me make sure I heard something. You said that somewhere in this document is a discussion or recommendation for a multi-tiered fee structure?
No. It's not in 156 2/12/08 - PARKS - BILLS 080078 and 080084 the proposal. It's in their business -- how they structure their businesses at the other cities.
Almost every single course does that, because certain times have greater value than other times. I know -- and there are a number of people who are dedicated to golf. I, unlike the Councilman, am not a golfer, but I've studied the structure. There is no 15 structure that I've ever looked at that has a single fee.
And we have never had a single fee either. I don't want to confuse issues here. We've always had structured fees for different times of play, different times of play, different types of play. So I don't want Mr. Haver to confuse the issues here. We have always had a structured fee system. It just has not had a -- historically it's 157 2/12/08 - PARKS - BILLS 080078 and 080084 not had a discount for City residents, which was your first point.
No. I guess if we're understanding -- because we're going to have to pass this, so I just want to be clear on the passing. At a two-year point, we will revisit the Philadelphia residency discount, and that's satisfactory to you, Mr. Haver?
Yes, Councilwoman. That would be a great step forward, in my opinion, in bringing this company --
Right. But bringing in this company -- and I feel awkward saying it, but bringing in this company is a big step forward.
And the friendly amendment I would make to your comment, Councilwoman, is that we first get a chance to look-see on June 1 when we see how they accommodate the families of the young people attending the area high schools.
Any other questions of these witnesses? (No response.) COUNCILMAN DiCICCO: No 17 discounts for elected officials? (Laughter.)
Soon, Councilman, seniors, retirees. COUNCILMAN DiCICCO: You know about pay-to-play, so we don't want to go down that road.
Councilman, 159 2/12/08 - PARKS - BILLS 080078 and 080084 retirees. COUNCILWOMAN DiCICCO: For the record.
Anyone else here to testify, please, on Bill No. 13 080078? (Witness approached the witness table.)
Fred Maurer. I didn't know this bill was up at all. I do monitor the golf situation in Fairmount Park, so I have some familiarity with it. I've always been pleased that they were trying to do a good job even though the City takes away their assets. 160 2/12/08 - PARKS - BILLS 080078 and 080084 I think if it comes to fees, you got to be very careful. You should know that the ex-Director, Bill Mifflin, tried to bring Tiger Woods here in order to stimulate golf in Philadelphia. It never happened, but I think that was a good attempt as part of the Commission to do a better job for golf. So it's a difficult problem. If you screw around with your fee system, you're going to mess up the negotiation, what they're doing. I do want to caution you, there is a state law that says you cannot charge non-residents a different fee for any facility in the park. It's a state law, and we have already tiered things, graduated to the needs of the business community, but once you put a fee in and it's a different one for non-residents, then you are violating state law. So be very careful how you discuss this matter. You're running afoul of these things. Philadelphia has been great to 161 2/12/08 - PARKS - BILLS 080078 and 080084 deal with residents, because we are a bigger thing than a city park and we have different rules. So be very careful. Don't mess around with their fee systems and violate the residency rules that Philadelphia committed to by the state.
Thank you very much, sir. Anyone else to testify on this bill? (No response.)
This concludes our public hearing on Bill No. 15 080078. We will now move into a public meeting. I would ask Councilman DiCicco for a motion on the amendment to this bill. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that the amendment to Bill No. 080078 be approved.
Any seconds? (Duly seconded.) 162 2/12/08 - PARKS - BILLS 080078 and 080084
Very well. Then we state that Bill No. 080078 has been amended. We now ask that Bill No. 080078 be moved as amended. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that Bill No. 080078 as amended be reported out of this Committee with a favorable recommendation, that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.)
Bill No. 22 080078 has been moved and properly seconded. All in favor say aye. (Aye.) 163 2/12/08 - PARKS - BILLS 080078 and 080084
Therefore, Bill No. 080078 will be reported out of this Committee with a favorable recommendation and further moved that the rules of Council be suspended so as to permit first reading at the next scheduled session of Philadelphia City Council. This concludes the meeting of the Committee on Parks, Recreation and Cultural Affairs. Thank you all very, very much. (Committee on Parks, Recreation and Cultural Affairs adjourned at 4:40 p.m.) - - - 164 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on February 12, 2008, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)