That's because this is the third time that it's been introduced. The first time, it did not have a Section 11 in it.
This is the one that got held in committee? 74 6/8/05 - Bills 040876, 050369, 050506 - Finance
But the problem is coming back the next day with a bill.
-- (continued) it just had the requirement of a resolution 13 for swaps. The third time, the 69 bill, it has the 15-day requirement also. We have done our 1919 act advertising summarizing all three versions, one without Section 11, one with Section 11 only requiring an ordinance and one with Section 11 having 15 days' notice. So from the 1919 act, we're covered.
I understand. So your concern is that if there were a new amendment that required some adherence to the previously passed resolution, you don't have a bill that's been advertised with that particular provision and you would 75 6/8/05 - Bills 040876, 050369, 050506 - Finance then have to go back to the start?
That's correct. And we would not be able to comport with those advertising requirements prior to enactment on the 16th.
Okay. So the bill you really wanted in front of us is the bill that has whatever the start of it is, but has 06?
So now you need us to amend 369 to make it appear similar to the 06 bill even though we're not moving on the 06 bill?
Right, because 76 6/8/05 - Bills 040876, 050369, 050506 - Finance everything else reads the same.
Sorry for the confusion. I'm told that it's not 06, Councilman. It's 050507.
Well, then we have to go back through all the same discussion again so the record is clear so that I'm talking about the right bill. Okay. Let's start again. No. Okay. All right. I think you win that round, inadvertently. Okay. My last question, though, Mr. Jannetti, is, but for this advertising issue and let's say this transaction -- let's say we're at an earlier point in the year and all the other issues, would you be able to comply with the particular resolution 21 utilizing this Section 6 unusual circumstance provision and not interfere with your transaction, assuming that you had the proper time you needed for advertising purposes and everything else? 77 6/8/05 - Bills 040876, 050369, 050506 - Finance
Okay. Great. Thanks. Thank you, Madam Chair. I'll have a question on the other bill whenever we get to it.
Thank you, Councilman. Are there other questions with regard to this bill? (No response.)
All right. Then we will have the clerk read the title of Bill No. 050506.
Bill No. 050506, an Ordinance authorizing the creation of a loan or loans to provide funds for and toward various capital municipal purposes; authorizing the Mayor, City Controller and City Solicitor, or a majority of them, to sell bonds at public or private negotiated sale; setting forth the capital purposes and the amounts for which the proceeds of the loan or 78 6/8/05 - Bills 040876, 050369, 050506 - Finance loans would be expended, including reimbursement of City capital expenditures; providing for the maturities and for other terms and conditions and for the form of the bonds; providing that certain bonds may be redeemable prior to maturity; providing sinking funds for the bonds and for appropriations to the Sinking Fund Commission for the payment thereof; authorizing agreements to provide credit or payment or liquidity sources for the bonds and interest rate swaps in connection with issuance of the bonds, and certain other actions; provided for obtaining the consent of the electors to increasing the indebtedness of the City of Philadelphia; and fixing a day for holding the election for obtaining such consent and providing for the arrangements for holding such election.
Thank you. Would you identify yourself again and make your testimony.
Yes. Good 79 6/8/05 - Bills 040876, 050369, 050506 - Finance afternoon, Councilwoman Blackwell, members of the Finance Committee. My name is Vince Jannetti, Acting Director of Finance, and with me are various officials from the Office of the Director of Finance and the Capital Program office. I am here today to propose amendments to Bill No. 050506, which was introduced on May 26, 2005, and to testify in support of these amendments. The first request is to amend the bill to increase the total borrowing amount to $69,680,000 to reflect the FY2006 capital budget as passed by City Council on June 2, 2005. The second request is to amend the bill to reflect the change of the ballot from the primary election date to the general election date. The purpose of this bill is to obtain approval from City Council to place a loan authorization question on the General Election Ballot on Tuesday, November 8, 2005. The loan question requests an increase in indebtedness from the electorate in an amount 80 6/8/05 - Bills 040876, 050369, 050506 - Finance not to exceed $69,680,000 to fund the City's fiscal year 2006 capital budget, which is an increase of $8,025,000 from the amount in the ordinance as introduced. State law requires the City to place a question before the electorate during an election to increase its borrowing authority. The loan authorization, if approved, would finance capital projects classified for the following purposes and in the following aggregate amounts: For transit, $5,067,000; for streets and sanitation, $17,678,000; for municipal buildings, $25,738,000; for parks, recreation and museums, $17,558,000; and, finally, for economic and community development, $3,639,000. In order to provide appropriate time to advertise and print the ballot question to ensure that it's placed on the November 8, 2005 General Election Day Ballot, the bill 22 should be enacted no later than October 6, 2005. Normally the City Commissioners need to have the certified copy of the loan authorization ordinance in time to mail the 81 6/8/05 - Bills 040876, 050369, 050506 - Finance absentee ballots 30 days prior to the election date. Finally, attached as part of this testimony is the proposed ballot question requesting loan authorization from the electorate of the City of Philadelphia. This concludes my written testimony. I would be happy to answer any questions Council might have at this time.
Thank you very much. Questions? Councilman O'Neill.
Mr. Jannetti, without looking through the numbers and checking them with the capital budget that just passed City Council, the capital budget was amended in City Council, $7 million was added back as it was last year for recreation, and while we still don't have an agreement with the Administration on either year, last year when the $7 million was added back, that was placed on the ballot in that amount, that added additional amount. 82 6/8/05 - Bills 040876, 050369, 050506 - Finance Can you tell me what's in this ordinance in relation to what we did last week and this, whether it conforms as it did last year?
Yes, Councilman, I can do it. Councilman, it was $7 million even was added to the authorization for Council's projects and another million dollars for, I think it's, MDO projects.
What is 1,000,025 in the municipal buildings? It's on the amendment.
Do I have the right one? 83 6/8/05 - Bills 040876, 050369, 050506 - Finance
Diane Reed, Budget Director. The million 025 is the hundred thousand dollars per district that the Mayor added for Council districts in the MDO's line, plus cost of issuance.
Thank you, Madam Chair. Mr. Jannetti, let's go back to the issue with regard to the resolution on the bond offering itself. Now, when do you expect to do the borrowing for this transaction?
I think the next borrowing is in 2006, I think in December of '06.
And so in 84 6/8/05 - Bills 040876, 050369, 050506 - Finance that context then, you would not have any difficulty in complying with the Council resolution on this particular transaction; is that correct?
Okay. So it will not interfere with your ability to conduct a transaction?
Are there other questions on this bill or any of those discussed at this time? (No response.)
Madam Chair, again, thank you very much for the opportunity to speak. I would only suggest, if possible -- I know that the Administration has forwarded amendments. They've obviously incorporated the $7 million into the parks item and I think 85 6/8/05 - Bills 040876, 050369, 050506 - Finance there's been an explanation about why their overall number is now a little higher than the amendments that were handed out a little while ago by Councilwoman Tasco. I would only ask if there might be consideration by the committee based on the comments made by the Acting Finance Director, the difference between the two sets of amendments are the numbers, which I'm sure is easily rectified, as well as the provision in the back of the amendments offered by Councilwoman Tasco, which is this new Section 14 8, which would seek to incorporate at least the guidelines based on the resolution passed by Council to apply to this particular bill. The team has not been put together. It's been testified that there's no potential for interference in the issuance of debt. I'm obviously not on the committee, but I would at least ask the committee for its consideration with regard to that particular section being amended into the bill, as well as clarifying what the actual numbers are based on the numbers that were proposed by the 86 6/8/05 - Bills 040876, 050369, 050506 - Finance Administration's proposed amendment and make sure that everything gets put together in the proper fashion.
Thank you. Thank you very much. If all minds are clear, we will conclude this part of our hearing and enter into the stated meeting. (Public hearing of Committee on Finance concluded at 4:00 p.m.) - - - 87 6/8/05 - Bills 040876, 050369, 050506 - Finance CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on June 8, 2005, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.) 88 6/8/05 - Bills 040876, 050369, 050506 - Finance COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING - COMMITTEE ON FINANCE - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, June 8, 2005, 4:00 p.m. BILL NOS. 040876, 050369 and 050506 PRESENT: COUNCILWOMAN JANNIE L. BLACKWELL COUNCILMAN JUAN F. RAMOS COUNCILWOMAN MARIAN TASCO COUNCILWOMAN DONNA REED MILLER COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN FRANK DiCICCO COUNCILMAN BRIAN J. O'NEILL COUNCILMAN MICHAEL A. NUTTER COUNCILMAN FRANK RIZZO COUNCILMAN DARRELL CLARKE COUNCILMAN JAMES KENNEY V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, PA 19103 215.561.2220 215.567.2670 89 6/8/05 - Bills 040876, 050369, 050506 - Finance
The Chair recognizes Councilwoman Blondell Reynolds Brown with a motion with regard to reporting out Bill 040876 with a favorable recommendation and a suspension of the rules so as to permit first reading at our next session of Council.
Thank you, Madam Chair. I move that Bill No. 040876 be reported out of committee with a favorable recommendation and suspension of the rules so that we can hear this at the next regularly scheduled session of City Council.
It has been moved and seconded that Bill No. 040976 be reported out of committee with a favorable recommendation and, furthermore, that the rules of Council be suspended so as to permit first reading at our next session of Council. All in favor will say aye. COUNCIL MEMBERS: Aye.
Opposed? 90 6/8/05 - Bills 040876, 050369, 050506 - Finance (No response.)
The ayes have it and so Bill No. 040876 is reported out of committee. The Chair recognizes Councilman Ramos with regard to an administrative amendment and request that you ask for an adoption of said amendment to Bill No. 050369. This amendment has been circulated. It is the one that was read where on there is a period after the word "Council" and the rest of the line deleted. This is an Administration amendment and the Chair asks Councilman Ramos if he would ask that said amendment be adopted.
Thank you, Madam Chair. I move for the amendment to Bill 19 No. 050369. COUNCILMAN DiCICCO: Second.
It has been moved and seconded that the amendment just referenced to Bill No. 050369 be adopted. All in favor will say aye. COUNCIL MEMBERS: Aye. 91 6/8/05 - Bills 040876, 050369, 050506 - Finance
The ayes are having it, so the amendment is adopted. The Chair recognizes Councilwoman Tasco with regard to another amendment concerning Bill No. 050369.
Thank you very much. Councilman Ramos, you were in order.
Thank you, Madam Chair. I move that Bill No. 050369 as amended be reported out of committee with a favorable recommendation. I further move that the rules of Council be suspended to permit first reading of this bill at our next Council meeting.
It has been moved and seconded that Bill No. 050369 92 6/8/05 - Bills 040876, 050369, 050506 - Finance as amended be reported out of committee with a favorable recommendation and a recommendation for suspension of the rules to permit first reading at our next session of Council. All in favor will say aye. COUNCIL MEMBERS: Aye.
The ayes have it and so the bill is reported out. The Chair recognizes Councilman Goode with reference to Bill No. 050 -- no; with reference to an amendment, an Administration amendment, to Bill No. 050506 for its adoption.
Thank you, Madam Chair. I move that the amendment to bill 050506 be adopted.
93 6/8/05 - Bills 040876, 050369, 050506 - Finance Opposed? (No response.)
The ayes have it and so the Administration amendment to Bill No. 050506 is adopted. The Chair recognizes Councilwoman Tasco.
Madam Chair, I offer two amendments. If you turn to , Section 5, I offer this amendment on behalf of Councilman Nutter. On his page, it just has proposed amendments to Bill 050506, in Section 5, there's a request to delete the line "and to enter into interest rate swap agreements," so that just as we did on the airport issue regarding swaps, that they will have to come back to City Council regarding swaps. And on a new line, Section 8, at the bottom, new Section 8, "Notwithstanding the authorization set forth in Section 1, the Bond Committee may not issue and sell general obligation bonds of the City until Council, by resolution, has determined that the sale of 94 6/8/05 - Bills 040876, 050369, 050506 - Finance bonds and the selection of professionals paid out of the costs of issuance will be conducted under a process that conforms to Resolution 5 No. 050429, adopted May 26, 2005. The provisions of this Section 8 are not severable from the remaining provisions of this Ordinance, but are essentially and inseparably connected with all other provisions of this Ordinance, and it is hereby declared to be the legislative intent of Council that Council would not have enacted this Ordinance or any portion of this Ordinance unless the Section 8 were a valid part of such enactment."
Thank you, Madam Chair. This resolution that was passed I was originally a sponsor of and I withdrew my sponsorship. I do not believe that the resolution, which is non-binding, should be memorialized. I think there are members of 95 6/8/05 - Bills 040876, 050369, 050506 - Finance Council, including myself, that did not vote in favor or against it, but let it become approved by affirmation. Therefore, I don't believe it should be asserted into this bill 6 in this way.
Thank you. There is a motion on the floor for the adoption of this amendment. Is there a second?
There is a second. All in favor will say aye to this adoption. SOME COUNCIL MEMBERS: Aye.
Then we will take a roll call with regard to the adoption of this amendment. Councilman Ramos?
The motion is not adopted as the vote is four to three. Am I correct, gentlemen? THE CLERKS: Yes.
And this amendment fails. The Chair recognizes Councilman 97 6/8/05 - Bills 040876, 050369, 050506 - Finance Goode with regard to Bill No. 050506 as amended.
Thank you, Madam Chair. I move that Bill 050506 as amended be reported out of committee with a favorable recommendation and that the rules of Council be suspended so as to permit first reading at our next Council session.
All those in favor will say aye. COUNCIL MEMBERS: Aye.
Then Bill No. 050506 as amended will be reported out of committee with a favorable recommendation and a recommendation that the rules of Council be suspended so as to permit first reading at our next session of Council. We thank you all. This will conclude our hearing and meeting. We thank you all for your patience and for coming and getting through all of this. Thank you very much. (Public meeting of Committee on 98 6/8/05 - Bills 040876, 050369, 050506 - Finance Finance concluded at 4:15 p.m.) - - - 99 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on June 8, 2005, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)