COUNCIL OF THE CITY OF PHILADELPHIA STATED MEETING Room 400, City Hall Philadelphia, Pennsylvania Thursday, June 28, 2012 11:00 a.m. PRESENT: COUNCIL PRESIDENT DARRELL L. CLARKE COUNCILWOMAN CINDY BASS COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN BILL GREEN COUNCILMAN WILLIAM K. GREENLEE COUNCILMAN BOBBY HENON COUNCILMAN KENYATTA JOHNSON COUNCILMAN CURTIS JONES, JR. COUNCILMAN JAMES KENNEY COUNCILMAN DENNIS O'BRIEN COUNCILMAN DAVID OH COUNCILMAN BRIAN J. O'NEILL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN MARK SQUILLA COUNCILWOMAN MARIAN B. TASCO MICHAEL A. DECKER,
Good morning, everyone. (Good morning.)
I note that the hour has come. We've established a quorum. I'd ask all guests and visitors to please retire behind the rail. I see all my colleagues have taken their seat. To give our invocation this morning, the Chair recognizes Father Richard Robyn, Pastor of Trinity Church Oxford Circle. He is here today as the guest of Councilwoman Marian Tasco. I'd ask all members and guests to please rise. (Members and guests rise.)
Let us pray. Oh, Lord, our Governor, bless the leaders of our land that we may be a people at peace among ourselves and a blessing to other nations of the earth. To the President and members of the cabinet, to Governors of states, to all in administrative authority, grant wisdom and peace in the exercise of their duties. To Senators and Representatives and those who make our laws in states, cities and towns, and especially to the City Council of Philadelphia, give courage, wisdom and foresight to provide for the needs of all our people and to fulfill our obligations in the community of nations. To the judges and officers of our courts, give understanding and integrity that human rights may be safeguarded and justice served. And, finally, teach our people to rely on your strength and to accept their responsibility to their fellow citizens that they may elect trustworthy leaders and make wise decisions for the wellbeing of our society, that we may serve you faithfully in our generation and honor your holy name. For yours is kingdom, oh Lord, and you are exalted as head above all. Amen. (Amen.)
Thank you so much, Pastor. Council will be at ease. (Council at ease.)
Thank you so much, Pastor. At this time, I would like to recognize Councilman Goode. We have a correction on the Calendar. Councilman Goode.
Thank you, Mr. President. After further discussion, we will be calling up Bill 120556 to transfer $20 million to the Finance Department to eventually transfer to the School District, after certain accountability measures are met by the School District.
Thank you. the record, the members of Council, along with the Administration and the School District, will be submitting an accountability grant, Councilwoman. And, Councilwoman Blackwell, I know you all are working on that, and that will be available for the public at its conclusion. Thank you. The next order of business is the approval of the Journal of the meeting of Thursday, June 21st, 2012. The Chair recognizes Councilman Greenlee.
Thank you, Mr. President. I move that the Journal of the meeting of Thursday, June 21st, 2012 be approved. (Duly seconded.)
It has been moved and properly seconded that the Journal of the meeting of Thursday, June 21st, 2012 stand approved. All in favor say aye. (Aye.)
The ayes have it. The Journal is approved. The next order of business is requests for leaves of absence, and the Chair recognizes Councilman Jones.
Thank you, Mr. President. A leave of absence request has been made by Councilwoman Maria Quinones-Sanchez.
Thank you. That leave has been granted. The Chair now recognizes Councilman O'Neill.
Thank you, Mr. President. On behalf of the republicans, there are no requests for leave of absence.
Thank you, Councilman. At this time, I'd like to dispense with the regular order of our guests and visitors today. We have really appreciated a lot of you coming down. I see some repeat members here again. We want to thank you for your continued interest in City Council. (Applause.)
And as always, we will continue to try to do, to the best of our ability, the people's business in the City Council of Philadelphia. So thank you again. We look forward to seeing you again very soon. Today I know some people are a little sad. We will have no presentations. I know. I know.
I know. We'll double up next time. The next order of business is communications. The Chair requests that the Sergeant-of-Arms please deliver the messages from the Mayor to the Chief Decker, please read those messages.
To the President and members of the Council of the City of Philadelphia, pursuant to Sections 4-604 and 2-307 of the Home Rule Charter, I am today transmitting to the Council the recommendation of the City Planning Commission regarding the following bills: Bill No. 120164 and 120165; and I am pleased to advise you that on June 27, 2012, I signed all of the bills that were passed by Council at its session on June 14, 2012, and that I signed the following bills that were passed by Council at its session on June 21, 2012: Bill Nos. 120173-A, 120329, 120389, 120431, 120433, 120482 and 120486.
Thank you, sir. The next order of business is the introduction of bills and resolutions. The Chair will now recognize Councilman Kenney.
Thank you, Mr. President. I offer two resolutions and one bill.
An ordinance providing for the submission to the qualified electors of the City of Philadelphia of the proposal set forth in a Resolution approved by Council proposing an amendment to The Philadelphia Home Rule Charter to authorize the City Council to adopt the City's Annual Operating Budget Ordinance within thirty days of the adoption of the State Budget; providing for interim revenue and spending measures and procedures.
That bill will be referred to the appropriate committee.
And a resolution proposing an amendment to The Philadelphia Home Rule Charter to authorize City Council to adopt the City's Annual Operating Budget Ordinance within thirty days of the adoption of the State Budget.
That resolution will also be referred to the appropriate committee.
And a privileged resolution recognizing the 40th anniversary of Title IX, the groundbreaking gender equality legislation that increased educational and athletic access to generations of women and girls.
That resolution will be placed on today's Final Passage Calendar. The Chair recognizes Councilwoman Blackwell.
Thank you, Mr. President. We have one privileged resolution, for which we request consideration today.
A privileged resolution authorizing the City Council Committee on Rules to hold hearings to investigate the creation of Registered Community Organizations and the impact they will leave on the community.
That resolution will be placed on today's Final Passage Calendar. The Chair recognizes Councilman Greenlee.
Thank you, Mr. President. On your behalf, I offer one bill.
An ordinance establishing a no parking anytime regulation on certain cul-de-sacs within the area bounded by 13th Street to the West, 9th Street to the East, Girard Avenue to the South, and Cecil B. Moore Avenue to the North.
Thank you. That bill will be referred to the appropriate committee. The Chair recognizes Councilman Henon.
Thank you, Mr. President. I have no bills or resolutions today.
Thank you, Councilman. The Chair now recognizes Councilwoman Tasco.
Thank you, Mr. President. I have no bills or resolutions today.
Thank you, Councilwoman. The Chair recognizes Councilman Johnson.
Thank you, Mr. President. I have one resolution. I would like to be recognized after reading of the title.
A resolution urging the Pennsylvania Auditor General to conduct a forensic audit of the School District to provide a greater degree of transparency into the District's finances so that the City of Philadelphia can consider solutions to the School District's current fiscal crisis.
Thank you. Councilman, you want that placed on today's Final Passage Calendar?
It will be on today's Final Passage Calendar. The Chair recognizes Councilman Green.
Thank you, Councilman. The Chair recognizes Councilman O'Brien.
Thank you, Mr. President. I have no bills or resolutions today.
Thank you, Councilman. The Chair recognizes Councilman Goode.
Thank you, Mr. President. I offer no bills or resolutions.
Thank you, Councilman. The Chair recognizes Councilwoman Brown.
Thank you, Mr. President. No bills or resolutions today.
Two bills co-sponsored by Councilman Green and Councilwoman Reynolds Brown.
An ordinance amending Chapter 19-2604 of The Philadelphia Code, entitled "Business Privilege Taxes," by providing a visibility tax credit -- "Visitability Tax Credit" for cost incurred to make newly constructed single and multi-family dwellings accessible for disabled persons, all under certain terms and conditions.
That bill will be referred to the appropriate committee.
And an ordinance to amend the Philadelphia Zoning Maps by changing the zoning designations of certain areas of land located within an area bounded by Parkside Avenue, 50th Street (Extended), Merion Avenue, 52nd Street, Columbia Avenue, and 51st Street.
That bill will also be referred to the appropriate committee. The Chair recognizes Councilman O'Neill.
Mr. President, thank you. I have no bills or resolutions.
Thank you, Councilman. The Chair now recognizes Councilman Squilla.
Thank you, Mr. President. I have no bills or resolutions today.
Thank you, Councilman. The Chair recognizes 2ND READING Councilwoman Bass.
Thank you. The Chair now recognizes Councilman Oh.
Thank you so much. Today we have no reports from committee. The next order of business is the consideration of the Calendar. As there are no bills on the First Reading Calendar, the Chair now recognizes Councilman Jones for the purpose of calling up bills and resolutions on the Final Passage Calendar.
Thank you, Mr. President. The following resolutions and bills are being called up for Second Reading and Final Passage Calendar today: Nos. 120619, 120621, 120175-AA, 120174, 120164-A, 120165-A, 120166-A, 120556-A, 120432, 120392, 120483, 120119, 120108, 120540, 120531 and 120561. All other resolutions and bills are being held.
Thank you, Councilman. Before considering these resolutions and bills, we will have public comment. The public comment will go as follows: We will have a podium that will be placed in the middle of the Council. On the podium you will see a device. The current rules in Council call for three minutes per person. If there's anyone who is interested to speak today, testify on any bills on the Final Passage Calendar that hasn't already done so, we'd ask that you please sign up at the table at my left. As I said, you will be given three minutes. When you come to the podium, you will see a device on that podium, and when the light turns green, it is your time to speak. When the light turns yellow, it indicates that you have 30 seconds left, and when the light turns red, it means that your time has concluded. We ask that you adhere to these regulations, because we want to make sure that everybody has an opportunity to speak. Sometimes we have extremely lengthy lists of individuals interested in testifying. So, Mr. Decker, with that, would you please call the name of the first individual who wishes to testify.
Anne Gemmell, commenting on 120432. (Applause.) (Witness approached podium.)
Good morning, City Council. Thanks for all your hard work on a tough budget. I'm here today on behalf of community members from Fight for Philly and all of Philadelphia citizens urging you to carefully consider who our city chooses to do business with. As so many community members know, every dollar counts these days, and our city's payroll contract is up for one year -- for a one-year renewal in Bill 120432. Although I recognize that we do need to have a bank, I call on you to send me a sole vote, the way that Councilman Jones did a few weeks ago, and stake out your willingness to reconsider who our city does business with, not just payroll contract but bond business, all the financial services contracts. We need to think carefully about who we do business with. Most years payroll contract renewal is just routine, passing easily through Council, rubber stamping the City Treasurer's recommendation, but things are so much different now for so many Philadelphians. Business as usual is not working out for too many of us. Philadelphia workers and communities are seeing more inequality, more layoffs, more injustice and a bleaker future for Philadelphia and countless other towns and cities in America. Wells Fargo is America's biggest tax-dodger. Wells Fargo put taxpayers on the hook after the 2008 meltdown for 43 billion in bailout funds, made record profits and then paid negative, negative federal income taxes over the last three years. I pay my taxes. You all pay your taxes, but Wells Fargo doesn't seem to think that they need to pay taxes. While we struggle to save our homes and schools and our jobs, Wells Fargo refuses to pay its fair share. In addition, Wells Fargo engages in discriminatory and predatory lending, targeting the most vulnerable communities with payday schemes and ghetto loans, quote/unquote. From 2007 to 2009, Wells Fargo was 188 percent more likely to put African American and 117 percent more likely to put Latino borrowers into high-cost subprime loans. Lawsuits have been brought. I can't even keep up with the Google Alert news on Wells Fargo that I get. I would like to send it off to you, all the bad news about Wells Fargo, but I cannot keep up. One of the other things that Wells Fargo does is lobby. They lobby very hard. They spent over $18 million over the years following the bailout from 2008 to 2011 against consumer-friendly bills on issues like mortgage reform, foreclosure prevention, anti-predatory lending laws, overdraft fees, credit card reform, the list goes on. All the good stuff, they lobby against it. Here in Philly during the economic crisis of 2008, Wells Fargo acquired Wachovia, a bank with a large presence, and their slogan was "Hello, Philadelphia. We're here to help." But everything they do indicates the opposite. I'm asking Council -- I know we need a bank, but I would like your sole vote. Please vote no on this payroll contract for the sake of Philadelphia's soul. (Applause.)
Kate Goodman, commenting on 120174. (Witness approached podium.)
Good morning. My name is Kate Goodman and I'm from Philadelphians Allied for a Responsible Economy, which is a working group of Occupy Philadelphia and an all-volunteer group working for bank accountability in the City of Philadelphia. I'm here today to speak in opposition to repealing the Cohen wage tax rebate. We all know that we live in a city that's struggling. Residents, families, communities, City agencies are all reeling from the effects of the recession. Money is short for both the City and for Philadelphia families, but increasing the burden on working families is not the way to help the people or the City of Philadelphia, because the truth is, not every single entity in the City is hard-up. In fact, corporate citizens are doing better than ever. Take one of our city's largest banks, Wells Fargo, as an example. Wells Fargo posted record profits last year, but through tax loopholes and corporate handouts, the bank avoids paying many city, state and federal taxes. For example, Wells Fargo takes advantage of the Delaware Loophole. By maintaining more than 1,100 corporate subsidiaries in the State of Delaware, they avoid paying many Pennsylvania and Philadelphia business taxes. In addition, Wells Fargo's federal 2009 refund was so large that they actually made money on their taxes. The bank's three-year net was a $681 million refund, or a tax rate of negative 1.4 percent. The federal corporate income tax rate is 35 percent. Again, Wells Fargo paid negative 1.4. In comparison, I make $10 an hour working 34 hours a week at a popsicle store. Out of $340 I make a week, I pay $50 in taxes. How is it possible that I'm paying more taxes than Wells Fargo? In a city where people are struggling to get by, provide for their families and ensure strong communities, in a city that is forced to close schools, libraries, cancel programs for youth and put services in our neighborhood, it is outrageous, it is literally impossible to comprehend that Wells Fargo and other corporations are permitted by the City to avoid paying their fair share of taxes. I understand and agree that the City needs money to provide essential services in our neighborhoods. By repealing this Cohen tax rebate before it even takes effect in 2014 is not a healthy or acceptable way to get it. Rather, we need to reverse the trend of tax reform that takes more and more of the tax burden away from corporations and places more and more of the tax burden onto people like us, who are struggling. That has to change. We need to stop asking for money from the people who don't have it and start taxing corporations who have more than enough to pay their fair share. (Applause.)
I stand with the Councilmembers and all others here in opposition to repealing the Cohen wage tax rebate, a progressive tax rebate that our city and our families desperately need, and I ask that all Council stand and vote with us. Vote to uphold the Cohen wage tax rebate. (Applause.)
Gina Apuzzo, commenting on 120432. (Witness approached podium.)
Good morning. My name is Gina Apuzzo. I'm from Philadelphians Allied for a Responsible Economy, a community organization focused on bank accountability. I am also here today as a teacher. I teach ballet to students ages 6 to 17 in Northeast Philadelphia. All of my students attend public schools. I care about my students. I care about the children and the City of Philadelphia. (Applause.)
And I'm here today to voice my strong discontent with Wells Fargo Bank and their role in de-funding our school system and hurting our communities. The School District of Philadelphia engaged in a number of soft deals with Wells Fargo, exchanging variable interest rates on the bonds they issue for supposedly safer fixed interest rates provided by banks. Through these deals, characterized by Pennsylvania State Auditor General Jack Wagner as, quote, impenetrably complex and, quote, designed for the sole benefit of big banks, end quote, Wells Fargo and other banks took $72 million from the School District. When the School District then tried to get out of the deals, Wells Fargo and other banks charged them $90 million in cancelling fees. In fact, the School District spent more on fees to exit the swap deals than they spent on books and school supplies in 2010. (Audience members booing.)
In fact, Wells Fargo and other banks took more than $161 million from the School District. That's money that should be going to books and supplies, bus drivers and security guards, nurses and teachers -(Applause.)
-- nurses and teachers and to keeping our schools open and safe. The decision to renew the payroll contract with Wells Fargo implies that the people of Philadelphia are happy with the business the bank is conducting in our city. We are not. We are counting on City Council to stand with us and vote no to renewing the City's payroll contract with Wells Fargo. Thank you. (Applause.)
Sonia Williams, commenting on 120432. (Witness approached podium.)
My name is Sonia Williams and I am also with Philadelphians Allied for a Responsible Economy. City Council should not renew the payroll contract with Wells Fargo, a bank that divests so much money from our city. In addition to taking money from our schools, Wells Fargo also engages in racist, predatory lending practices. According to the Pennsylvania Human Relations Commission, these practices include -- so the following are not my words. The following are the words of people who are paid to diligently research the truth. These practices include, and I quote, excessive fees, excessively high interest rates not justified by borrowers' credit worthiness, requiring large pre-payment penalties while deliberately misleading borrowers about penalties, using deceptive sales practices to wrap insurance products into mortgages, convincing borrowers to refinance mortgages into new loans that only benefit Wells Fargo. So these people already had loans, convincing them to refinance. Deceiving borrowers into believing they are getting fixed rate loans when they are really getting adjustable rate loans and more, end quote. These words that the Pennsylvania Human Relations Commission chose to use do not imply practices that happened to not work well for the people. The words include convincing, deceiving. These words imply a knowing. These people imply malicious intent to dupe our community into financial deals that are meant to fail. The Human Relations Commission goes on to conclude that the Home Mortgage Disclosure Act -- this is again a quote -- shows that these high-cost loans are disproportionately provided in African American neighborhoods to African Americans. The good news, as City Councilmembers, as you all know, is that we in Philadelphia now have a law to discourage these practices. According to Section (d) -(Applause.)
According to Section (d) of City Code 19-200, banks that engage in predatory lending are not allowed to be depositors and cannot do business with the City. According to this code, it is illegal for a bank doing business with the City to engage in predatory lending. It is obvious that Wells Fargo is not living up to the business standards that you all put forward. We, therefore, cannot renew the payroll contract with Wells Fargo. Now, I know how it works. I know this change is probably not going to happen this year. The decision has probably already been made. What I do know is that how change happens is by the people bringing together their voices collectively to call for change. (Applause.)
Some of our voices like mine are small and some of our voices like those of yours City Councilmembers are bigger. (Time expired.) (Microphone turned off.) (Applause.)
Good morning, Council President Clarke and all members of City Council. My name is Tim Kearney. I'm speaking this morning for the Southeastern Pennsylvania Chapter of Americans for Democratic Action. Our President, Glenavie Norton, is unable to appear this morning and she has asked me to speak for the Chapter. In May of this year, the Southeastern Pennsylvania Chapter of the Americans for Democratic Action voted to oppose Bill 120174. It's the bill that I saw this morning on many of the signs all around the room. Americans for Democratic Action thank the eight Councilmembers who voted against this bill in the Committee of the Whole two weeks ago. Today our Chapter asks City Council to table this bill, but if the sponsor insists and persists in calling it up for a vote -- and that's my understanding -- then we adamantly request Councilmembers to vote against it. Local government should join state and federal government in providing a negative income tax for the poorest paid workers in Philadelphia, workers so poor that they qualify for numerous government assistance programs. As we all know, the wage tax is a horribly regressive tax. It is even much larger than the state income tax. It has an effect that's almost twice as big as the state income tax. It disproportionately hurts the poor. It literally takes food, rent and utility money away from working Philadelphians. Because our society has no across-the-board livable wage, taxing workers making minimum wage or just above minimum wage makes no sense. Their wages do not reach a livable level, so why do we tax them further down below that level further into poverty? Why are we trying to balance the City budget on the backs of the poorest workers in the City? (Applause.)
The obvious solution to get the needed City revenue is to tax the rich, those who can easily afford to pay more for the City's General Fund. There are many ways to do this that are already in place in the City tax code. You can increase these taxes or you can create a new tax to tax the rich. On behalf of the Southeastern Chapter of the Americans for Democratic Action and our President, Glenavie Norton, I request all Councilmembers to vote against Bill 120174 this morning. Thank you. (Applause.)
George Ricchezza. (Standing ovation.) (Witness approached podium.)
Good morning, Council President, Councilmembers, friends, visitors and Local 32BJ members. (Applause.)
Thank you for your support of children and public education. The state has not lived up to their obligation and placed a burden on this Council to fund public education of Philadelphia. You stepped up and you approved U&O, and Local 32BJ members want to thank you for that. (Standing ovation.)
We last met with the District two weeks ago today. We have reached out to the District to meet with us to bargain in good faith, and no response. Our children are at risk if we cannot stop the layoffs of 2,700 hard-working men and women who clean, heat, cool, maintain our buildings and transport our most precious commodity, our children. We are not the problem. (Applause.)
We are not the problem. We are part of the solution. We are asking you to vote yes for Bill 120175-AA and send a message to parents, children, teachers, administrators and Local 32BJ members that this Council cares about the workers but, more importantly, the children of Philadelphia and that you support public education in Philadelphia. And we thank you. (Standing ovation.)
Hello, City Councilmembers and guests. My name is Denise Ward. I've been with the School District 33 years. I would have never thought in all these years that I would have to fight for my job. But that's okay, because the fight is just beginning. (Applause.)
I work at the Shawmont School with an autistic kid, and she depends on me, you know, because she won't start her work. You know, you have to keep on coaching her. And a lot of times I'm out sometimes for union work and she asks the teacher, Well, where's Ms. Ward at? Where's Ms. Ward at? And when the teacher tells her and I bring her something -- you know I got to bring her something back when I return. But anyway, to make a long story short, she needs me and I need her, and I'm just here to say today -(Applause.)
-- without me, the job falls back on the teacher, because nine times out of ten, there is nobody to take your place, because the schools are short. But I just came here today to ask you to support us and the kids that we take care of every day and vote for Bill 120175-AA. Thank you. (Applause.)
Ernie Bennett. (Standing ovation.) (Witness approached podium.)
Ladies and gentlemen. My name is Ernie Bennett. I've been here before. The name is getting known around here, but it's continuing to be a struggle around here that I'm standing here before you. I'm a building engineer for the School District of Philadelphia. I worked 26 years for the School District of Philadelphia. I am asking on behalf of 2,700 members facing layoffs, some of us in two weeks, Council, our message is clear. It's clear, as our district leader just said and Ms. Ward just said. I'm asking Council to support Bill 120175-AAA (sic) that will help fund the School District and help our kids as well as working families in Philadelphia. I'd like to take this time to thank y'all for your past support and the present support, and I hope that I don't have to continue to come here, but if I do, this, oh God, be the glory and give me the courage and the strength to stand up. Thank you. (Standing ovation.)
Good morning, Mr. President, City Council. I've been here before, like Ernie, on several occasions. My name is Melanie Hobbs. I am a five-hour worker. I work for ten months. It's not just about my job. It's about the children of Philadelphia. Please let's think for the kids. They can't do it. They need us. I've been working with the School District for 25 years. I was born and raised in North Philadelphia. I have two children that went through the public system. Now I'm worried about my four grand-kids that's in the public School District now. My job with the School District is teaching special need children. Not just teaching them; I change diapers, I tube feed and I assist them with all their needs. We have children that's non-verbal, cannot walk, cannot talk. I'm here for them. (Applause.)
I ask the School District today why is the School District willing to jeopardize the welfare of unprivileged handicapped children? Twenty-five years I have caring for the children, seeing them grow, prosperous, under me. I am proud of my job. I take my job serious. (Applause.)
I'm here today to urge City Council, not to ask, to urge, please pass 120175-AA. (Applause.)
I'm here today not just for myself. It's not just about me. It's about the children and also about 27 (sic) workers that I work with that will be receiving a layoff letter as early as July the 15th. That's days. That's not weeks and months. It's days. So please help us. Thank you. (Standing ovation.)
Good morning, Mr. President. Good morning, City Council. Good morning, 32BJ. Good morning, everyone. (Applause.)
I've been here before, as along with other members of 32BJ. I'd like to thank City Council. My name is Angela Miller. I am a custodial assistant for the Philadelphia School District for 24 years. I am one of the first faces the kids see in the morning at 6:00 a.m. We are working on getting and still getting a deal. We would like you to help support the working-class people. I have to work two jobs just to support myself. I couldn't imagine having to raise a family on one income that the Philadelphia School District pays me. The majority -(Applause.)
The majority of our custodial staff are single parents. I can't imagine the devastation that will occur with these families if the School District doesn't continue to negotiate with us to save the 2,700 members that received layoff notices. I emphatically urge you to please pass 120175-AA. Thank you. (Standing ovation.) (Audience members yelling, "32BJ.")
Hello, everyone. I'm Stan Shapiro. I'm the Vice Chair of Neighborhood Networks. I'm here to testify on Bill 120174. First, I want to say on behalf of Neighborhood Networks, we are in solidarity with 32BJ. (Applause.)
Workers need a living wage. Bill 120174 will put another nail in the coffin of a living wage in Philadelphia. Income inequality is surging throughout the United States. Philadelphia is not immune from that. We do not exist in a bubble. As you all know, Philadelphia has one of the highest poverty rates in any city in the United States, and many of those who are poor or near poor are working folks. It's fundamentally against the social contract for people to be working and not be able to bring home a living wage. But that is the case all too frequently in our country and in our city. I want to thank Republican Councilman O'Brien for voting against repeal of the Cohen wage tax cut in the Committee of the Whole and the seven democrats who did the same, but as a democrat myself, I'm now speaking to any democrats who may be thinking of voting for repeal of the Cohen wage tax credit today. Ladies and gentlemen, that is why we lose elections. With rare exception, the republicans are unabashedly for the 1 percent. For whatever office they are elected to, they vote in every possible way to serve the interest of the well-off. They support subsidies for huge corporations, tax breaks for moving money overseas, weakening the regulations on banks, insurance companies, oil companies and other predatory businesses and, most predictably of all, tax cuts for the rich. Their supporters know exactly where they stand. We democrats, on the other hand, can't seem to make up our minds. Check us out on Mondays, Wednesdays and Fridays and we may be taking populous stance. Tuesdays, Thursdays and Saturdays we're behind the heavy contributors. Nothing shows that schizophrenic stance better than the voting committee on this bill, seven democrats for it, seven against. How could that be? Let's be clear. The underlying agenda of those seeking to repeal the Cohen wage tax credit is a core republican idea, use the cover of tax cuts for everyone to make the rich richer. The Mayor has already told us that he intends to propose next year an across-the-board cut in the wage tax. Across-the-board tax cuts, since they are more valuable with every extra dollar you make, are right out of the George Bush playbook. They completely serve the interest of the 1 percent. To make budgetary room for it, the Mayor needs to get rid of the Cohen wage tax credit. So this repeal boils nothing less than an open bid to take money from the already empty pockets of the poor and give it to the rich. That's the entire effect of combining an across-the-board wage tax cut with the repeal of a targeted wage tax credit. Is that what our party stands for? (Audience members yelling "no.")
This repeal just means -(Time expired.) (Microphone turned off.) (Applause.)
You know, when my father, the late Councilman David Cohen, was in his 70's, his 80's, when he was 90 years old, people would ask him, Councilman, why are you still on City Council? Why don't you just retire? He always had one answer. He said, If I am not on City Council, who will speak for the poor? (Applause.)
Today represents the third time since this bill was passed -- the low-income wage tax credit ordinance was passed in 2004. In 2006, when Mayor Street first sought to repeal the ordinance, Councilman Kenney shouted, The Mayor is smacking David Cohen in his grave. Another Councilperson here today plans to hold a poverty summit. How will he vote today? For poor people or against poor people? (Applause.)
The Mayor, who is now seeking repeal of this historic ordinance, was once a strong supporter of it. In 2006 -- I have the letter right here -- he wrote, Please be assured I support this legislation and will oppose any attempt to repeal it, and that's what he's trying to do. (Applause.)
Now, why is this vote for repeal coming up today? This is legislation that helps the working poor. You know what? I guess it means there are less poor people in Philadelphia. Is that right? (Audience members yelling "no.")
Since 2004, what was the poverty rate? 24.9 percent. I guess it's less now. We don't need this legislation anymore. What is the poverty rate in Philadelphia today? It's 26.7 percent. It's only increasing, and if Council votes to repeal this ordinance, they are increasing the misery and hardship of low-income working poor Philadelphians. (Applause.)
Now, some people say, you know, the Philadelphia wage tax, you know, everybody hates wage tax. We need to lower the rates across the board. Everyone complains about the City wage tax. Well, you know what? There is a difference between complaining and hurting. Though everyone might complain about the wage tax, not everyone is hurting. The working poor can barely survive, though they are working, in this time of great economic pain and near depression, targeting a tax increase. If Council votes to repeal this ordinance, they are increasing taxes only on working poor people in Philadelphia. To do that in this economy and near depression is heartless and cruel. Who will be a profile encouraged today? We are all watching. Thank you. (Applause.)
Good morning, City Councilmembers. I'm Jonathan Stein. I'm general counsel at Community Legal Services and, as many of you know, a former member of the Tax Reform Commission. I'd first like to thank the eight members of Council who two weeks ago voted against repeal of the wage tax rebate, and I would address the others who voted at that point in that initial vote to simply report the bill out of committee to respectfully reconsider that vote. I know many of you have serious misgivings about the vote you felt you had to give two weeks ago, and we ask you to reconsider. We ask you to reconsider because there's not one sound reason to repeal the wage tax rebate. The reason that we've heard is that somehow a Five Year Plan, which never even comes before City Council for a vote in an ordinance, needs to have the rebate not be present in a five-year projection. But that five-year projection that is coming out of the second floor at City Hall includes a wage tax cut. So is there hardly -- if there are dollars, in fact more dollars, going to a broad wage tax cut than a targeted wage tax cut, there's no real sound reason to repeal this law for simply adjusting a line in a Five Year Plan that's not even before City Council. But, more importantly, I think people are losing sight of two main elements. I'd like to ask those who voted for repeal to consider these two facts. One is that the beneficiaries of a targeted wage tax cut are not only the people below the poverty line, but there are those 40 percent of the City, 40 percent of the City, who are above the poverty line, but are not earning an adequate income, and many of them are here with 32BJ. They're the people who are not below poverty, but they're not earning an adequate income with their wages. They are below 200 percent of the poverty line, which is considered a minimum, very minimum, market basket to live on. That 40 percent of the City, they're not the very poor. They're the working class. They're the low/middle income people who all of you represent. They are the beneficiaries of this targeted wage tax cut. The last and second point I would say is that when you hear about the voices that say from the second floor of City Hall that we should have a broad wage tax cut, remember that the Keystone Research Center has found that when you go that route instead of a targeted route, you bleed off great numbers of City dollars to non-City residents, people in Southern New Jersey, people in the suburbs who are more well-to-do, and over one-third of City wage tax dollars that are cut in a broad way tax cut flow out of the City, not to your residents, not to the local businesses that you want to promote in your neighborhoods, but to businesses outside the City where non-residents spend their wage tax cut if they're spending any -(Time expired.) (Microphone turned off.) (Applause.)
Andre Butler. (Applause.) (Witness approached witness table.)
Good morning, Councilmembers. Good morning, everyone in Chambers. My name is Andre Butler. I'm the Vice Chair of the Board of PUP, the Philadelphia Unemployment Project; Coordinating Committee of TURN, Tenants Union Representative Network; and also several other non-profit organizations, but I'm also here as a low-wage taxpayer, low-income worker. First of all, I want to acknowledge and thank those of you here from 32BJ. Know that PUP has stood -(Applause.)
PUP has stood with you for the years that you've been around, and you all have stood with us for the years that PUP has been around. So we thank you, and we're with all of you. Thank you. (Applause.)
As a low-wage worker in the City of Philadelphia, my wage taxes are approximately $100 a year. That's the dollars I'm going to lose if this repeal goes through. Put a hundred dollars in a low-income person's pocket. What will the low-income people do with that money? We spend it. We don't invest it. That's what the rich folks do. They invest their money overseas and in stocks and bonds. But we're going to spend that money in the economy right here in this city. A hundred dollars for me is going to be co-pays for my parents' prescriptions, it's going to be co-pays for my prescriptions, going to help me pay a late fee that I owe on my rent. (Applause.)
We at PUP see hundreds of people a year who are back in their mortgage because they couldn't pay the hundred-dollar late fee for that one month, and that becomes the foreclosure issue. Give us the hundred dollars. We want our money. The rich folks have their money. We want our money, and we want it as soon as you can get it. (Applause.)
So I want to, in closing, thank the eight members of Council who last week voted, quote/unquote, the right way in favor of this tax cut, and as a citizen of Philadelphia, I would like to personally ask Councilman Bill Greenlee, who is sitting in David Cohen's former seat, to please vote the right way. (Applause.)
Terrence Meachan. (Applause.) (Witness approached witness table.)
Good morning, City Councilmembers and guests. Again, Terrence Meachan, an organizer for the Philadelphia Unemployment Project. The first thing I want to say, 32BJ, we're with you. (Applause.)
What's important is our schools. Speaking up for lower income and to middle Philadelphians, I guess I could say, when is enough enough? We're asking City Council here to oppose Bill 120174, the repeal of the wage tax relief. When is enough enough? We witnessed most Philadelphians have experienced a recession that we did not cause. We've experienced high unbelievable foreclosures and got displaced, moved around with our children. We've experienced high unemployment rates, and now trying to get work (unintelligible), who did the right thing, who have degrees or have a rich work history of 15 to 20 years to be underemployed now, living from check to check, trying to make it. But guess what? The word is out, because we know that there are tax breaks for the wealthy, the higher income, millionaires and billionaires. We know -- I'm talking Delaware Loophole. What did we see? A bailout to the tune of several hundred billion dollars for our most wealthy Americans. We saw a secret fed loan with hardly no interest to our most wealthy Americans. Here we have something for the working-class people and, of course, people want to throw it to the wayside. (Applause.)
We're asking City Council to represent the 99 percent. The 1 percent have theirs. And you talk about a wage tax across the board? Well, we understand that the tax burden has been on the backs of the low-income Americans. (Applause.)
All I ask this day is that it's tabled or that people oppose that bill and speak up for working-class Americans. Speak up for the 99 percent. Speak up for your constituents who voted you in office. Let our voice be heard. Thank you. (Applause.) (Audience members yelling "32BJ.")
Thank you. My name is Fred Maurer. I read the bill. Can you hear me? My name is Fred Maurer. I have read the bill. This is on 174. I want to give you my comments. First, I'm very disappointed in our City Council's attitude to renege and to repeal this discounted public rights that were established for the poverty-level citizen class. We have too many residents who are forced to be in this working-class poverty category. The bill admits that it is about taxing poverty, not wealth. I ask, when did we solve urban poverty by taxing them more in taxes? I have -- we have a two-tier wage tax system since the last time when City Council tried to increase the flat wage City tax rate. It was halted in Harrisburg by suburban legislators who compromised it for their own deals. Result: We have two tax suburbanites with a different City tax rate than the current City residents. From that suburban tax category, we had this debate in City Council that the tax -- this was done in Harrisburg -- the tax is already too aggressive and it was threatened to be reduced in Harrisburg. The harms from overtaxing the poor led to a legislative solution to allow a poverty exemption in this city. That grand compromise is now in danger with this ordinance against the legislative intention and their interest. I ask, is this the way to regard and value the legislators who gave us this special exemption? As a result of the debate in Harrisburg, they did not reduce the City flat tax. When City Council received this authorization, the City wrote a conforming poverty exemption ordinance. This ordinance was a substitute for the excess flat wage tax. It was done to satisfy Harrisburg. It also made us parity with the suburbanites, but the City working poor are the only ones who benefited. Now in this proposal, City Council will tax only the working poor, poverty wage earners. I question the motives who sponsor this repeal and their understanding of the law. Are they aware that it was done in Harrisburg to help us? How can the City Council stoop so low to create more harms? The low-income wage earners are already impacted with new aggressive sales tax that the wage tax was to prevent. In the short time after the poverty tax exemption was in place, our City Council created real estate exemptions called abatements for the benefit of developers and high income buyers. (Time expired.) (Microphone turned off.) (Applause. )
Is this on? It's not showing green. Thank you. Thank you to members of Council for allowing me to speak, along with the press and our fine members of the audience for being here. I'm here representing Philadelphia Unemployment Project, Neighborhood Networks and Move On. Several weeks ago I attended a shareholders meeting at Comcast on behalf of Fight for Philly to voice our disagreement with Comcast not paying their fair share because of the Delaware Loophole. They don't pay their fair share. Mr. Lurie and the Eagles don't pay their fair share. The Phillies don't pay their fair share, the Sixers, the Flyers. You are talking about multi-million-dollar businesses, giant enterprises. But the Council doesn't mind dipping their hands into the pockets of working people, you know, people who actually work, who do something for the City. I've heard from a number of sources that Council cut a deal with Mayor Nutter. He didn't get anything -excuse me. He didn't get everything he wanted for education, and the wage tax rebate gets sold down the river. Last week I read an article on a survey that was conducted among American voters for who they blame for the national economic situation or the fiasco, if you'd like to call it. It wasn't Barack Obama they blamed. It wasn't even Geithner. It was George Bush. And I don't say that in any partisan way, because Councilman O'Brien voted in opposition to the repeal, and he should be applauded for that, certainly more than the seven democrats that didn't vote for it. (Applause.)
I looked at that survey, because in some situations, American voters have better memories than usual. Among those situations is when someone is ripping off their hard-earned money. Mayor Nutter has an advantage that Councilmembers don't have. He's not running again, because he can't. He can't run again. Most of the Council will be trying to retain their positions. Some will even be trying to get a promotion. But, like I said, American voters do have better memories than many situations, and all those races would be decided on how the voters' memories are and, of course, how Council votes on issues that concern the citizens' wallets. The extra percent between this Bill 120174 and the bill that Nutter wants basically would pay for my cell phone. I also don't understand why the Mayor is trying to -- he's more concerned with giving suburbanites who work in the City a rebate than he is with giving low-income people who stay and who live, work and spend in the City. (Applause.)
Unless he's thinking of running for Governor, and that's a frightening situation. Thank you very much. (Applause.)
Good afternoon, City Council. I'm here to advocate for you to vote against 120174. I'm a current Board member of the Philadelphia Unemployment Project. I represent the single mothers who make less than $34,000 a year. (Applause.)
The current wage tax is 4 percent. I need the 1 percent for utilities, food, clothing such as uniforms, shoes, co-pays for medical insurance, child care and perhaps that special birthday party. It's a difference of about $340. Again, stop 120174. The money is needed. It helps the working poor. Thank you. (Applause.)
Judith Robinson, commenting on 120619. (Witness approached podium.)
Good morning, all. I'm here to comment on Resolution No. 120619. This was a non-privileged resolution, so there was no hearing, and that concerns the homeowners of North Philadelphia. It was introduced on June 21st and it's on final reading today. I want to refer back to Bill No. 120020, which was the neighborhood improvement district slated for North Central Philadelphia. That bill is being held in committee, in the Rules Committee now. One of the major concerns with that neighborhood improvement district, the NID, is that land would be disposed of to developers who were developing for Temple student housing. Now, according to the Redevelopment Authority document, this land is being disposed per this resolution for market-rate housing, but when you're competing with Temple student housing, Temple students win, because they pay higher prices. So I just want to be clear on that. We're concerned that we went from Bill No. 110636 that was introduced September 22nd, 2011 to here, fast forward it to today, to this resolution disposing of land to developers who were the face of TAPA group, Temple student housing. So we just want to put all of this on record just to make sure that we're all on the same page, that we're clear that we are watching land movement from our communities, especially because this land resolution today will be combined with some PHA properties and it will not be for market value to low-income people who were formerly living in PHA properties. So I just want to put all of this on record on behalf of the homeowners of North Central Philadelphia. Thank you much for your attention. (Applause.)
There are no other speakers on the public comment list, Mr. President. (Witness approached podium.)
My name is Chester Skaziak and I reside in the Bustleton area of Philadelphia, and I'm a taxpayer. I'm here to comment on Bill No. 120165-A. Good afternoon, Council President Clarke and members of Council.
I testified at the June 11th Finance hearings and raised the questions to the acquisition of 4700 Parkside Avenue. This was a result of the Council passing Resolution 120242. It is my opinion that the use of the Neighborhood Transformation bond funds violated Resolution 110453 and the original intent of this program. If my instincts are correct, the tax-exempt bonds are no longer tax exempt, which compromises this bill. For brevity, with your permission, I would like my remaining testimony to be included into the minutes. I have written testimony, sir.
If I have time. At the hearings, Mr. Covington, Executive Director of the Philadelphia Redevelopment Authority, stated, I don't have all the details of this transaction, but essentially we were asked through the IART to provide GAAP financing on an acquisition that the address that the gentleman referred to and we provided that in the form of taking back a note. I believe it was for around $200,000. We are not there. There was no condemnation involved. There was no acquisition by the RDA involved in the transaction. We are simply utilizing NTI funds through IART to assist in the acquisition. This was a transaction requested by Councilman Jones' office to use IART funds allocated to his district in support of this acquisition, and we responded accordingly. Councilman Green asked, And the transaction is complete? Mr. Covington responded it was not. What Mr. Covington failed to tell the committee was of the PRA's involvement. The IART process was established to create a systematic method of reviewing and approving requests for land acquisition. The process follows these steps: One, the Councilperson completes a land acquisition application to ask for information such as the nature of the proposed development project, the street addresses of the parcel of land that need to be purchased, the name of proposed developer and the sources of funding for the project; Two, the RDA staff prepares an acquisition for the budget; Councilmembers are invited to present this proposed project at monthly IART meetings; IART meets privately to review projects based upon criteria and decides to approve, disapprove or place on hold until questions about the project have been answered; The RDA prepares an acquisition budget using formal appraisals; Six, the IART decision is communicated to the City Councilperson. If IART has recommended the project, the Councilperson must approve its moving forward; Seven, the chief of staff approves the project; Eight, if appraisals yield a 6/28/12 - STATED - 2ND READING higher budget for the project, this information is to be communicated to the IART and the Councilperson -(Time expired.) (Microphone turned off.)
Sir, sir, you can leave it. We'll put it in the record. Thank you. (Applause.)
Mr. Decker, we will now consider the resolutions and bills on the Second Reading and Final Passage Calendar. Mr. Decker, please read the title of Resolution No. 120619.
A resolution approving the redevelopment contract and disposition supplement of the Philadelphia Redevelopment Authority for the redevelopment and urban renewal of a portion of the Model Cities Urban Renewal Area, identified by house numbers and street addresses as 1800, 1804 through 1808, 1812 and 1820 North Sixteenth 6/28/12 - STATED - 2ND READING Street.
Thank you, Mr. President. I move the adoption of the resolution. (Duly seconded.)
It's been moved and properly seconded. Those in favor? (Aye.)
The ayes have it. Resolution 120619 is adopted. Mr. Decker, please read the title of 120621.
A resolution respectfully urging the Pennsylvania General Assembly to reject House Bill 2405 because it would halt state funding for important women's healthcare 6/28/12 - STATED - 2ND READING services.
Thank you, Mr. President. I move for the adoption of the resolution. (Duly seconded.)
It's been moved and properly seconded. Those in favor? (Aye.)
The ayes have it. Resolution 120621 is adopted. Mr. Decker, please read the title of 120175-AA.
An ordinance authorizing real estate taxes for the City of Philadelphia and the School District of Philadelphia for Fiscal Year 2013 and thereafter, by amending Chapter 6/28/12 - STATED - 2ND READING 19-1300 of The Philadelphia Code, entitled "Real Estate Taxes," to provide for a tax and tax rate on real property, for exclusions, and for an established pre-determined ratio.
Thank you. This bill having been read on two different days, the question now is shall the bill pass finally. Mr. Decker, please call the roll.
Mr. Decker, hold on one second, please. The Chair recognizes Councilman Goode.
Thank you, Mr. President. I have a few remarks. Some have referred to the pending implementation of the Actual Value Initiative, AVI, as diving into 6/28/12 - STATED - 2ND READING water without knowing how deep it is, suggesting it might not be safe; therefore, it might not be wise. That's good advice for kids and most adults, but not for lifeguards. If lifeguards see someone drowning, do they save them or do they ask how deep is the water? Lifeguards dive in. When we took on the issue of fair lending, some said the banks might stop lending or refuse to do business with the City, but we dove in anyway to rescue underserved borrowers. When we took on the issue of fair contracting, some said the cost of contracting might rise, the quality of goods and services might suffer, but we dove in anyway to rescue underutilized businesses. When we took on the issue of fair wages, some said it might stop business from locating in the City or cause job loss, but we dove in anyway to rescue underpaid workers. We dove in 6/28/12 - STATED - 2ND READING anyway because we saw people treading water for too long, struggling too hard. It was about economic justice. So as we took on the issue of fair assessments, some said the water might be too deep and ignored the fact that too many people are already in too deep economically. We know that many homes are currently overassessed. That means many people are paying more than they should be. They have been for years, and they really don't have the money. So we'll approve AVI and increase the homestead exemption to $30,000 and many homeowners will pay less, but later. Ironically, that was the Administration's plan all along. They called it smoothing. Those who would get a tax cut would have to wait for a full tax cut. But we accelerated that full tax cut to 2014. Some want you to believe the vote we're about to take is not approving 6/28/12 - STATED - 2ND READING AVI. That's not true. Just read the bill. We're approving two tax plans one for tax year 2013, another for 2014 and beyond, which means there will be tax cuts for many. Today we dive in where it's safely shallow, knowing still we're going to get dangerously deep real soon. Today we also stand up for lower value homeowners. Simply because their houses are worth less doesn't make them lower value. So we're standing up for them too today. Thank you, Mr. President. (Applause.)
Thank you, Councilman. Mr. Decker, will you start again from the beginning, please.