Well, when you're submitting $164,000, all this money, $1 million on lobbyists, basically it boils down to the Mayor and to the leadership in Harrisburg.
Some of the money is 108 Bill 040255 - 4/13/04 spent in Harrisburg. I think that you can't discount how significant relationships are. Some of what we get out of lobbyists are people who are actually tracking legislation. There's a lot of legislation that you hear about that is not necessarily --
-- real. And it takes -- You know, it takes having a presence in Harrisburg, in order to have that kind of background information. But, you know, I think you're right. I mean, a lot of it is about relationships. But the Mayor is not in a position to be in Harrisburg on an ongoing basis. And so, you need support. I think at the federal level, we spend probably more of our resources lobbying on the federal level. We are using firms to help us track dollars for the City, NTI dollars, homeland 109 Bill 040255 - 4/13/04 security dollars, IT dollars. And without people following the opportunities, you really don't win out at the federal lobbying game.
Thank you. I'll keep my light on. I have more questions, but my time is up.
Thank you, Councilwoman. We'd like to call on Councilman Goode because this is his first opportunity.
Many people will focus on the number of cuts in this budget over the course of budget testimony, but there are a number of increases, including within the Mayor's Office and the Finance Department, some of which I assume are 110 Bill 040255 - 4/13/04 supposed to be strategic investments. But do we have any specific plans, in terms of what's going to happen, in terms of the Inspector General's Office? For instance, there are three more people, and it's supposed to promote new ethical standards for what specifically these three new people are going to do. And what are the actual outcomes from hiring these three new people?
I don't have that level of detail. What we've done historically is put a lot of money out in contracts. A lot of the forensic auditing has been done outside of the City. We want to increase to just a bare bones staffing, really, the Inspector General. But I'll have it --
So you believe that three additional people is cheaper than outsourcing.
Again, what is 111 Bill 040255 - 4/13/04 the proposed -- Again, what is the proposed outcome? Not necessarily a specific plan, but what is the proposed outcome?
The Administration has been focused on a number of things over the last few years. As I had mentioned earlier, the City has a substantial problem with internal controls. We've been working on projects now for probably a year-and-a-half, trying to rebuild some of the internal controls within government that have broken down over years. I would expect the Inspector General to continue with that initiative. We also have just calls that are made to the Inspector General on an ongoing basis about, you know, people having concerns about corruption in government.
But there's nothing specifically you can offer to me this morning that suggests that we need three more people, what those three new people are going to do specifically. 112 Bill 040255 - 4/13/04
Okay. I would also wait for the Finance Director to comment tomorrow on the new people at MBEC. But from your knowledge, what are the new people at MBEC going to do without a specific plan? And I think the previous testimony on the five-year plan, when the issue of minority participation was brought up, it was said that there is not a plan yet, that you were waiting for a leader. And after there was a leader, there would be a plan. But the question is, I believe there may be four new positions at MBEC. Do we know what those people are going to do absent a plan?
Thank you very much. 113 Bill 040255 - 4/13/04 The question is, if this area, not only including adding other staff members, but also that the service portion was also increased, then it seems to me that these people will be doing it in-house. Can you clarify that? Because it looks like not only have you increased personnel, but you've also increased the service part of the budget.
To the extent that -- We are out trying to fill those positions. To the extent that we bring all the people in-house, I wouldn't expect to use all the professional service dollars that have been allocated.
To the extent we're able actually to fill positions for the Inspector General's Office, my expectation is we wouldn't need to utilize all the contract and capacity we have for professional services.
How much 114 Bill 040255 - 4/13/04 excess, then, is included?
I believe... I think 200,000. I can get you the exact dollar figure.
I'm sorry, Madam Chair. I didn't mean to cut across your question. Is the Chief of Staff referring to the professional services item of $250,000 for the internal auditing services? Is that --
Thank you. Councilman Nutter, you can continue your questions. 115 Bill 040255 - 4/13/04
And afterward we'll call on Councilman Cohen. You'll be next after Councilman Nutter.
Thank you, Madam Chair. Well, it's actually on the same area. I guess I'm now trying to understand the Chief of Staff's response. Were you saying that to the extent that you're in -- response to the Chair. To the extent that you're able to fill the positions -- these are three positions -- you're saying that it would then reduce by some amount the $250,000 budgeted for the internal auditing services? Is that what you're saying?
Yes. I don't know whether it would get rid of it entirely, but it would --
Madam Chief of 116 Bill 040255 - 4/13/04 Staff, actually, I would like to have an opportunity to ask some questions of the Inspector General. Who is the Inspector General?
I could ask -- He's not here now. I can ask him to come over.
Okay. With the Chair's permission, if the Chief of Staff is able to track down the Inspector General, I'd like -- whenever he arrives, I'd like to have the opportunity to ask the Inspector General some questions.
I'll hold those 117 Bill 040255 - 4/13/04 questions until then. I don't think I have any other... Well, Madam Chief of Staff, I heard your response to the Chair's question, which I think was the first question this morning with regard to the proposed increase which I think is in Class 100, and is percent, 9 and then there were some reductions. 10 The net increase is 11 percent in 11 the Mayor's Office. At the same time, 12 again, the question revolves around the 13 other proposed cuts in the budget, 14 including other independent elected 15 officials. The answer was... or at least the explanation was what?
The explanation is that we have increased resources for the office of the Inspector General, and have decreased positions but increased the seniority of the positions that we've allocated for managing the external relationships, both in Harrisburg and at the federal level, and also with City 118 Bill 040255 - 4/13/04 Council.
Well, I certainly always look forward to more contact with the Administration. And... you know, however that's decided. Councilman Clarke raised some issues about things that are going on in Harrisburg. And I guess what I'd like to maybe better understand is for any number of things that have happened -- and we don't have to go into the specifics of what people liked or didn't like or how did they happen. But I guess... What kind of things did the people working on our behalf, I guess, either stop or prevent or shape in a way that without their involvement things would have been worse?
I think they had a critical -- they played a critical role with the state's budget, FY '04 budget, with assisting the Administration in servicing the needs of the delegation. I think they played a critical role 119 Bill 040255 - 4/13/04 in some of the tax proposals in Harrisburg last year that would have capped the City's ability to capture increases in the real estate taxes. I think they played a critical role around issues like reshaping the KOZ program. The City on a weekly basis tracks any number of pieces of legislation. Some were successful; others were not. We worked with members of the delegation on HB-300, trying to get additional dollars at the table for acquisition in support of the City's Neighborhood Transformation Initiative. There are a whole host of issues that we have been engaged with, and Human Service issues. I mean, just issues across the board. There's recording legislation. Public Records Act was changed. We think that, you know, working with -- Joan Deckert did a good job trying to shape that, to better serve or to reflect the City's concerns, their concerns 120 Bill 040255 - 4/13/04 about Workers' Comp that we've been pursuing. There are a lot of things that don't -- that don't surface, that the City is lobbying on on an ongoing basis. And I think that our Harrisburg delegation has been effective in representing our interests.
And at the same time it appears that all of the lobbying services contracts are decreasing from FY '04 to FY '05; is that correct?
Okay. And I mean, does that reflect any last need in Harrisburg or Washington or anywhere else that the lobbying is going on or is that more reflective of the current budget environment?
I think it reflects an increase or a change in the City strategy. Some of the work can be done in-house, and the intent to do it with in-house staffing. 121 Bill 040255 - 4/13/04 I don't think it reflects any diminution in our sense of how important it is to have effective relationships. But we do have fewer dollars to work with, and...
I understand. And the in-house staff has, I guess, in the Mayor's opinion or the Chief of Staff's opinion either the necessary contacts and relations to further these efforts?
How many lobbyists are there that works for the City substantially, whether they're on staff or whether they're outside of staff?
We have eight firms that are working for the City at the state 122 Bill 040255 - 4/13/04 and local level. And then we have three -- four members in the Administration in the Mayor's Office who are working either state, federal or locally. And as I indicated earlier, they are supported by individuals throughout government that provide the technical expertise that is frequently critical when it comes to developing the City's position or defending the City's position.
Well, maybe it's being cut down from what it's been in the past, but that seems like a tremendous staff of people. Is it that the Mayor doesn't like to be in touch with people? Because it seems to me the Mayor's always the best lobbyist for anything the City needs. And I get very uncomfortable when I hear the word relationship's so important. That sounds like the lobbyists that had been the subject of various articles for years in the newspapers, that lobbyists have relationships with people, as a result 123 Bill 040255 - 4/13/04 of which legislation occurs. I think people feel much better when they feel that legislation comes not from relationships but from needs that have to be addressed, and that competent people in government speak to each other. If the Mayor changed his tactics more and viewed himself as the chief lobbyist for the City, it would seem to me that maybe we could get rid of 90 percent of the lobbyists, and have a much better explanation of things, and have a much greater level of success. What's your thought on that? Why doesn't it work?
I think that there certainly is a role for the Mayor. A lot of what... A lot of the value that the lobbyists bring, they bring because they are actually on the ground either in Washington or Harrisburg and in a position to track the day-to-day developments with legislation. There are literally hundreds and 124 Bill 040255 - 4/13/04 hundreds of pieces of legislation that are moved in each forum. And the City does not -- Certainly the Mayor's Office doesn't have the capacity to track the legislation, to analyze the legislation as it moves to figure out what's real, what's not real. At the federal level, even when it's not legislation, it's trying to find opportunities to pursue earmarked dollars. A lot of the greening that happens in neighborhoods, the homeland security money, the City's lobbyists had a major role in putting together the team that went after first a legislative increase in the dollars available for homeland security. Ultimately, Philadelphia probably benefited to the tune of $15 million. The City had lobbyists actively engaged on that issue. So I think that, you know, the day-to-day pursuit of issues, analyzing them, following up on them, are the kinds of things that you can't -- that we don't have the capacity to do in-house. That's 125 Bill 040255 - 4/13/04 part of the value you get when you hire the lobbying firms. Somewhat -- And another part is the relationship. From time to time you are buying into relationships that some of the lobbyists have. But that by no means is all that you get from having some of those services available.
Well, it sounds to me like you do an excellent job preparing a brochure that a lobbyist's firm could circulate to other people. But respectfully, I have to say it doesn't bring with any real clarity, at a time, particularly, when the Administration claims that funds are short. I think the Administration has two clear, direct paths to dealing with finances. One is to decrease and honestly the costs of lobbyists; and, secondly, at the same time that we decrease those costs, I think we'd get a much more effective government response from the groups we're lobbying. 126 Bill 040255 - 4/13/04 I don't for a minute doubt the ability of a two- or three-person office in the Mayor's Office handling all of the details, maintaining whatever relationships, whatever that may mean, have to be maintained in order to keep up. I just think that it's a lot of words without any serious meaning. Do we have any estimate? Could I ask you to produce an estimate on the costs of lobbying, specifying the amounts of money spent by the City to outside lobbyists, and another column indicating how much of people's time that their salary is, and what portion of that time is devoted to lobbying activities and staff employees. Because it seems to me that that's a sure waste of time. Doesn't begin to produce the results that would be produced if the Mayor would directly involve himself in the lobbying activities. Couldn't it show that his knowledge of the City... And knowing him, I know 127 Bill 040255 - 4/13/04 that he has full knowledge, probably better knowledge than anybody, than any of the lobbyists have, as to the particular programs involved, and why he needs it. And that would save money, and an enormous amount of money, and be very effective.
I will develop a report. I think that there is a lot that the Administration has pursued over the course of the last four years. A lot of it is not the big issues that you read about in the newspaper. It is the little things, like the changes in Workers' Comp or it's the little things, like the changes in recording that the City has a real critical interest in, that... that we have the capacity to track and follow up on because we have some of these extra resources. But I will prepare a report for you that details that also; identifies the 128 Bill 040255 - 4/13/04 people in government that we currently use in support of our legislative activity and how much we pay the City people versus the consultants.
Yeah. Now, on another subject, I'm going to use the person's name, but I don't mean it personally. Joe Grace, who's been assigned to us, City Council. Has there been anything said about the purpose of that? I raise it particularly with him because in the race last year for City Council-at-Large, it was my theory -- because you have to have theories in which you run -- was that he was the only candidate who was really running against me. So I'm wondering, is he here to perform service for Council or is he here to better his program? He didn't do very well against me in the election on the votes because he talked in his campaign about energy. And is he being sent to Council to learn some substance, so that 129 Bill 040255 - 4/13/04 in the next campaign he can talk about substance. And he said about having lots of energy which I always took to mean that he didn't know me if he thought I didn't have energy. No matter how old I get to be, I think I'll always have energy.
I've felt sorry for him. Did somebody suddenly realize that he needed substance, and the best way to get substance is to be here with us in City Council, knowing what the City's problems are. One of those I'm asking, is he assigned for the purpose of finding out from me how it's best to defeat me.
Councilman, we have a point of information from Councilman Goode.
Point of information to clarify the record. I was 130 Bill 040255 - 4/13/04 actually the who one was cut for Joe Grace.
Point of information is noted. Point of information, Councilwoman Brown.
Point of information. Let the record show that in the greater northeast there were no women on the at-large ballot, and no people of color. Thank you very much.
Well, I wonder if it would be better for Joe Grace to respond.
No. The Administration recognized a need to have better communication with City Council. 131 Bill 040255 - 4/13/04 We hire Joe Grace. We think he has the understanding of some aspects of politics and appreciation for the issues confronting the Administration across the City. And he has some of the legal background, I believe. He also has history, having worked with the press. I think when you take those, you know, those combined talents, you end up with someone who I think is a valuable and has already proven himself to be a valuable member of the team. I think in any situation there are going to be some people with whom he can work better than with others. And so, I would hope to continue to have a close working relationship with you. You know, as in any situation, not everybody's going to, you know, going to have...
Let me ask you. We'll leave Joe alone for a while, until we get closer to the next election. 132 Bill 040255 - 4/13/04 But Joe, I'm not resigning. And if I clam up on you, it's because I don't want you to know certain things that I may know and I may want to use in the next campaign. So, forgive me, Joe, if I can't always answer things for fear of arming an opponent of mine. Miss Wilkerson...
...who pays -- How does a businessman recover the campaign contributions he makes to the City government or to the Mayor or candidates for City Council? When a businessman contributes money, does he -- does he then have to make up that money somehow or is that sort of he takes it out, in your view, of personal funds and just supports people because he's a public well wisher and he thinks governments ought to get support from somebody? I mean, who pays -- Who's paying for that contribution, really? Say in the 133 Bill 040255 - 4/13/04 large sums that occur in this last four years, maybe last eight years, maybe since Rendell was Mayor, since I think the contributions took a sharp upward swing during the Rendell Administration. They may have continued during the Street Administration. But what does a businessman -- How does he recover that money?
I don't have a specific answer for that. I think that people give for a whole host of reasons. I think some probably give with the expectation of recouping their -- their... See it as an investment and recoup it dollar for dollar. I think that we do have people that are generally concerned and want to participate in the democratic process. I don't know that this is a sole reason for what motivates people, and what they think they're getting in return for it.
Well, what would 134 Bill 040255 - 4/13/04 be a likely -- One may be among a number, but one of the likely reasons that a businessman makes a large contribution, because he hopes in some way or another to increase his income as a result of that. He's doing business with governments. He knows they need money. He knows individuals need money if they're running for election. Wouldn't that be one of the reasons? The reason I suggest that is, I think, a very quick way in order to cut down heavily on what the City needs in the way of meeting a deficit, would be to reduce the cost of all contracts to the City of Philadelphia, by eliminating the need for businessmen to recapture contributions they've made. Seems to me a businessman would in all phases of his life think like a businessman. If he makes an investment, he wants to get a return on it. And businessmen are not the kind of idealists that people think of. They are 135 Bill 040255 - 4/13/04 not apt to throw money out on something because of wild feeling. They expect a return. But isn't that at least a plausible argument? And wouldn't it lead to the final conclusion that the costs of government would sharply go down if businessmen did not have to make those contributions which many of them would probably feel they have to recover, and the way to recover it is buying into the cost of a contract for services.
Could you speculate as to that? I'm not asking you to give any answer.
I have no idea. That would be an interesting issue to explore. I don't -- I don't -- I don't know -- I'd like to see the empirical evidence of something like that. 136 Bill 040255 - 4/13/04
Well, you hear all the talk about pay to play, which incorporates that theory, and the fact that businessmen are businessmen. And that's why those that succeed succeed, if they're good with the numbers. They know an investment has to yield a return. They may disagree as to how much of a return. But somebody's got to pay for that, and ultimately the only way a businessman can recover is by including that as a cost of doing business. I'm not talking about morality here. I'm just talking about figures. And among the figures alone, it would seem to me that the two fastest ways for the City to reduce its financial needs quickly is by cutting down our cost of lobbying. And the City is well equipped to handle it. Between George Burrell and yourself, you'd make an excellent, quote, lobbyist, for City causes because you speak so well, and from the heart about them. 137 Bill 040255 - 4/13/04 And the Mayor does the same thing. It seems to me that's one quick way. The other way is to issue an executive order where we state the written policy that this Administration does not believe in the concept of pay to play. And in order to reduce the costs of government from every possible angle, announce a policy of refusing any contributions or setting an artificial limit of a hundred dollars or a thousand dollars as a limit of a contribution, so that it can't in any way really cost the City anything, if a businessman wants to recover his investment. It seems to me if we did that, we would save more than enough money that would be needed to balance the budget over the whole five-year plan. So I'm raising with you the questions I think you ought to be considering. Now, is there anything new? If you can answer that, I have perhaps one or two more questions. 138 Bill 040255 - 4/13/04
We will take that into consideration. We will also look at ways of trying to, you know, track the impact of the legislation that was passed by Council during the last term.
Thank you, Councilman. Can you wait until your next round?
All right. Can you wait until the next round for your last two questions, since your time is up? Is that all right, Councilman Cohen?
It really isn't all right. Council members have had indefinite time this morning to ask questions. I don't think I've had anything like the indefinite time that other Council members have had this morning.
And whoever 139 Bill 040255 - 4/13/04 occupies that Chair, whether it's the Council President or yourself as Majority Leader and Chairman, I am concerned when I hear restrictions for the first time when I talk. It may be even the nature of the questions. I don't know what it is that attracts everybody's concern to limit my questioning.
Councilman, we're happy to have you talk all day if you like. It is never our intent to have anyone not talk or express their concerns. We're only trying to spread it around a little bit; just have everybody speak. But okay, Councilman. We're going to -- Incidentally, on a side note, for anyone who heard about the shooting in the CJC, the issue is resolved. And it was a deputy sheriff who did the shooting for a defendant who jumped or lunged at a judge, because they had all kinds of rumors.
So I announced that anybody who heard that on the 11th floor.
Okay. I'll wait until the next turn to finish the questions.
Yes. I'd like to ask a question about the Mural Arts Program. This year it's going to be in the Mayor's Office at a budget of $816,015. Do you have the amount that was budgeted in the year 2004? Is that an increase or a cut?
Mr. Dubow, the Chair would also like to ask for information on all the lobbyists, all their contracts, since we know they're disbursed throughout the budget and to within various departments. So we'd like to ask the Chief 141 Bill 040255 - 4/13/04 of Staff if you would provide that information to the Chair.
Rob Dubow, Budget Director. The FY '04 number was $864,000. So it's a decrease of $48,000.
They'll actually be here. They don't think it's going to have an impact on services, but they'll be here with the Managing Director, so...
Right. I think my questions are for other departments that are to come.
All right. 142 Bill 040255 - 4/13/04 Thank you very much. Councilwoman Brown.
Thank you, Madam Chair. Two things. One, in the interest of clarity, particularly as it relates to the record, I need to offer an addendum to my earlier comment. It was specifically the northeast pines that did not support anyone of color or a female. My second -- And it's not a question, but a comment in the spirit of -- to the spirit of Councilman Clarke, but more specifically follow up to Councilman Cohen. I want to offer a thank you, actually, for Mr. Fornan's team of professionals, as my experience comparing this part of my second term to my last term, there has been a level of consistency, and the operative word is consistency, with the presence of the local lobbyists in these chambers. And that's been helpful to me when it comes to the 143 Bill 040255 - 4/13/04 flow of information in the time that I've been here. So thank you to that team of professionals for their consistency and the work they're doing. Thank you.
Thank you, Madam Chair. I also agree with Councilman Cohen that this information on what these lobbyists do, and where they're out doing the lobbying be provided to us. I have... You know, I have a very serious concern about our lobbyists, especially up in Harrisburg. And given my limited understanding of their particular work, I just assumed that they're assigned to cover specific areas, maybe even specific members of the House. But when... in the last few years we 144 Bill 040255 - 4/13/04 have seen this State of Pennsylvania take over the Philadelphia Parking Authority, take over the Convention Center, talks about taking over the Airport, I wonder if... you know, what's going on with our lobbyists. As a Mayor... And I have no 9 intention of running for Mayor. But I would have fired all my lobbyists. What are they doing? They've taken over my Convention Center. They've taken over my Parking Authority, and they're threatening to take over my Airport. What are they doing? The Gas works, too? I have... You want me to yield to you? I'd be glad to.
Miss Wilkerson, I would hope those lobbyists are working on getting us that 6 million a year from the state for the patrol of those expressways. 145 Bill 040255 - 4/13/04
On a very serious note, that I don't know what's going on. But there is... I don't know if it's a... I'm not clear of the directions that we can have these lobbyists. And some of them... You know, we have lobbyists here from a 521 management group that is going to be still under contract for workforce development. And my question would be, since my main objective around my time here in the City Council is going to be job creation and related matters to job creation, that, you know, does this group help us create jobs, and how many jobs? And we're give a group called TAC and Associates $55,000 to do investigation. Investigation... You know, investigation of what? I think that we need to take a very close look at what our lobby teams are doing. I... I don't feel as -- as bad about whatever we're doing in Washington because the Madam Chief of Staff has talked 146 Bill 040255 - 4/13/04 a little bit about some of the stuff that's brought back home. But I'm very concerned about what kind of work we're doing up there in Harrisburg with our lobbyists.
RTA Steel works with the Inspector General's Office. That's not a lobbying firm. And 521, during the first term the Administration or the City Workforce Investment Board and PWDC had substantial issues with the state. And 521 was very effective in helping us work through those issues.
Did it get us more -- Did it get us more jobs for the people of Philadelphia?
It was a question of preserving the federal resources that we have for workforce investment and training. If we need -- If we need those services moving forward, we'll use them. And if not, we don't. But we project that there will be some need for those services.
And I see that 147 Bill 040255 - 4/13/04 through fiscal year of FY 2005, under the Mayor's Office professional services that are... The budget is actually going to go up by the year 2005. And this category here of miscellaneous seems to be driving that up. And I sure would like to know what's the miscellaneous; you know, what kind of services, what kind of... you know, what kind of things do -- does this miscellaneous category do, that it brings up -- brings up your budget to a higher number than FY 2003 and '4.
I will get you a breakdown for how the miscellaneous was spent in previous years. I think, if you look at where the dollars are, we have a substantial internal auditing services figure, to the extent that we can hire staff who won't be needing all those dollars. The other lobbying contracts that we have are being reduced, some by almost half. 148 Bill 040255 - 4/13/04
You're welcome. Councilman Nutter. And we're watching your time closely so that Councilman --
It was just you and Councilman Cohen left for this round.
Yes. I knew instinctively that Councilman Cohen was talking about me. I've appreciated him not 149 Bill 040255 - 4/13/04 mentioning me by reference, but... You know, as they say, if the shoe fits, you have to wear it. Madam Chief of Staff, just quickly, first, do we know the whereabouts of our Inspector General?
I understand. Could you provide to the Chair a list of the positions that were in the Mayor's Office, the name of the individuals and the salaries or the titles -- and the titles as of November of last year, say November 1st, and could you give the same list as of today with the same information?
Thank you. And if you could have the Inspector 150 Bill 040255 - 4/13/04 General up, I'd appreciate it.
Councilman Cohen. I'd ask Councilman Cohen to finish his questioning before the Inspector General is here.
Councilman Cohen, would you like to finish? You said you had two questions.
Thank you. When you first learned in the report that came out sometime between six months, maybe a year ago, that the actual number of successes as recorded by MBEC had gone down during the current Administration, as against, say, the previous Administration, Rendell Administration? Did that come as a surprise to you?
Yes. I think... But I've also learned to have real questions about those reports. I think that there's a difference between, you know, the opportunity that appears to be there when the contract's, you know, 151 Bill 040255 - 4/13/04 awarded, you know, what actually ends up being dollars that end up in minority businesses. I think that there are problems with the quality of the reporting that goes on. Not all contracting opportunities are recorded in the City's computer system. I also think that there are any number of minority businesses that don't register in the City as minority or disadvantaged businesses, and so you don't -- You know, the reports don't tell the whole story in the City.
Well, do you think that the reports totally were wrong or...
I just think that -- I -- I think they -- that they're not as accurate as we would like for them to be. Janice Davis will talk to you tomorrow about what the City intends to do to improve the quality of reporting so that we have systems that are capturing accurate information that can produce reports that 152 Bill 040255 - 4/13/04 are helpful monitoring tools. But there are any number of changes that need to be made to improve our understanding of what we are doing, with respect to minority contracts.
Could you tell us what the Mayor himself is doing to produce a much better record of performance in that area.
Or do you think the City is already at its maximum level of performance?
No. I think the City has to do much better. We have committed resources to the Emerging Contractors Program. I believe that that's the kind of initiative the City ought to have to grow real businesses, so that... Because I think it's those kind of businesses that will grow jobs within our community. And so, the Emerging Contractors Program meets contractors where they are. 153 Bill 040255 - 4/13/04 If they have problems with their finances, it works with them to try to clean up the finances. If they need working capital loans in order to be effective, it works with them to do that. If they need expertise or if they need to develop expertise in bidding, it has training programs to assist them with that. I think it's that kind of investment that we make at this point that is going to help us increase the numbers of minority businesses participating and also increase the quality of their participation, once the --
What's the role of the Mayor in all of that? What's he going to do?
The Mayor directed us to work with the African American Chamber to develop that program. He made the decision to allocate resources there. He's had that same kind of leadership role, 154 Bill 040255 - 4/13/04 with respect to the MBEC program. We... You know, we have committed additional resources in order to put the systems in place. We have... We're identifying... We're going -- looking at various programs across the country in order to try to put the best practices in place in Philadelphia. There are other cities that do a much better job than we do. And we're taking a look at what they do. We'll be working to get away from some of the certification emphasis that this City has had, and getting more of an emphasis on monitoring or putting in place those kinds of -- those kinds of programs that minority businesses need in order to compete effectively. We have also created the Small Order Purchasing Program in the City. And with City Council's assistance, it now makes contracts up to $25,000, I believe largely available to small businesses. We've seen a huge increase. Now 47 percent of the 155 Bill 040255 - 4/13/04 small purchases in the City are done through MBEC eligible firms. And so I think there's, you know, there's been some substantial changes, some substantial investments. And we hope that when the new MBEC program is put in place, that we'll see even greater gains.
The Mayor, does he use what people call the bully pulpit? That's the role of his Office, that he gives weight to different programs. What he has done in this instance is rewarding to the highest levels people who commonly and anecdotally -- And I think that two documents are known to have read the minority discrimination permitted to continue to exist, maybe strengthened the discriminatory practices of the building trades union, say. and does the Mayor understand that when he rewards the leadership of those organizations and puts them at the highest levels of City government that, in fact, he is saying to everybody he approves their 156 Bill 040255 - 4/13/04 policies? That's the content of the message. And maybe that's why nothing has happened during the Administration of a positive nature. What does the Mayor himself do as an individual? Not putting resources. But how does he get across to people that he personally is committed to bringing about a change? Now, that's the real use of a bully pulpit, is for a Mayor to get behind the program, and let people know that either something good happens or else those people that he has power over won't be in their same positions tomorrow if they don't correct things that they're doing wrong today. And that's the question I'm raising with you. What is the Mayor's own involvement? And is he sending the wrong message?
I will raise that with him. I think... I don't know exactly 157 Bill 040255 - 4/13/04 how to respond to that. I will raise that concern with him.
You're welcome. The Chair notes that I read in some communications over the weekend that minorities are getting 2.2 percent of the contracts let in the City. When Lucien introduced the set-aside, minorities were getting less than one-tenth of one percent. So I guess we're a lot better than one-tenth of one percent. We got a little bit more. Now we're 2.2 percent, so... I really think all of this debate over inclusion is the fact that minorities aren't included, and they're still not getting the jobs. So I thank you for raising that issue, Councilman Cohen. Councilman Goode.
Thank you, Madam 158 Bill 040255 - 4/13/04 Chair. Miss Wilkerson, I was going to let you off the hook discussing MBEC, but since you responded to Councilman Cohen...
I saw that, and I'm very sorry, very truthfully. I was suckered into that.
First and foremost, does the Administration plan to do new a executive order, based upon the new leadership, a new program being developed at MBEC?
I think we need to do one, for no other reason than the time has lapsed, but --
There was a new executive order that was offered a year ago. I'm asking does the Administration need to update that executive order?
So I'm assuming that at the time it was stated that that executive order would bring us up to date, and that executive order was based upon the best practices, in terms of putting systems into place; is that correct?
And... But my better understanding is that that executive order was actually based upon legislation that was passed by this Council.
Are you familiar with the legislation that was passed by Council?
Are you familiar with what municipality it was based upon?
It was based upon the Baltimore model, which was already 160 Bill 040255 - 4/13/04 studied by many members of this Council, many people within the community that are truly concerned with minority participation. And the Baltimore model actually requires strong Mayoral involvement. So I concur with a lot of the questions that Councilman Cohen is asking. But beyond that, one of the biggest issues on the Baltimore model, and in terms of best practices, in terms of minority participation, is the actual study of capacity, in terms of where we realize -- how we realize what disparity actually exists, in other words, in the field of construction per se, what capacity exists, in terms of disadvantaged businesses, what we actually have the capacity to do, and then where we fail, in terms of actual numbers. And that same type of capacity study, data driven process, has to be done, not just for construction or demolition but for legal services, accounting services, 161 Bill 040255 - 4/13/04 all professional services. Rather than just hiring four new staff people at MBEC to do, I'm assuming what they would be doing, if you have not necessarily engaged in this type of data driven approach, that determines what is the actual capacity level, and then where we follow short, and where the disparity actually exists.
You're not talking about the disparity study from 1998, are you?
Disparity -- First of all, the disparity study from 1998 eliminates total years, and so the information is incorrect. I think it eliminates 1996, in terms of some data; eliminates other years in the late '80s, in terms of data. That disparity study was not only 162 Bill 040255 - 4/13/04 too long coming, in terms of taking four or five, six years to complete it; it is inaccurate. But what I'm talking about is a process that says on an annual basis there's some analysis of what is the capacity of disadvantaged businesses in each sector of opportunity; and then, where we are falling short. And we are not looking at the capacity that actually exists, in terms of businesses, and where we're falling short, in terms of delivering the contracts, there is no need to hire a new director or for new staff people. Is there any response to that?
I am not -- I am not familiar with that level of detail of the disparity study that the City's undertaken.