COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON APPROPRIATIONS - - - Room 400, City Hall Philadelphia, Pennsylvania Thursday, December 1, 2005 9:15 a.m. - - - PRESENT: COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN DARRELL L. CLARKE COUNCILMAN W. WILSON GOODE, JR. COUNCILWOMAN DONNA REED MILLER COUNCILMAN JUAN RAMOS COUNCILMAN FRANK RIZZO COUNCILMAN JACK KELLY BILLS 051091, 051092, 051093 and 051101 - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2
Good morning. The Committee on Appropriations is now in session. Will the Clerk please read the bills.
Bill No. 051091, an ordinance authorizing transfers in appropriations for Fiscal Year 2005 within the Aviation Fund from the Director of Finance to the Director of Finance - Fringe Benefits; and Bill No. 051092, an ordinance 14 authorizing transfers in appropriations for Fiscal Year 2005 within the Water Fund from the Water Department to the Water Department; and Bill No. 051093, an ordinance 19 authorizing transfers in appropriations for Fiscal Year 2005 within the General Fund from certain or all City offices, departments, boards and commissions to certain or all City offices, departments, boards and commissions; and Bill No. 051101, an ordinance 3 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. authorizing transfers in appropriations for Fiscal Year 2006 within the General Fund from certain or all City offices, departments, boards and commissions to certain or all City offices, departments, boards and commissions.
Thank you. Is there someone from the Administration here? Just one moment. I just want to announce a quorum. To my left, we have Councilman Rizzo, Councilwoman Miller, and to my right, Councilman Ramos and Councilman Goode, and myself.
Good morning, Councilwoman Krajewski and members of the Appropriations Committee. I'm Dianne Reed, Budget Director, and I'm here to testify on Bills 051091, 92, 93 and 051101. I also have with me members of the Administration who are prepared to provide detail if you have questions on any specific parts of the proposed 4 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. transfer. This is the year-end transfer ordinance which will provide appropriations for areas where there were deficits from areas where there were surpluses. Most of the surpluses resulted from the workforce reduction and some better management of overtime and things like that. I'm speaking now of Bill 12 051093, which is the General Fund bill. Some of the purposes that were funded in the transfer include Public Property. We have about $5 million of Oracle licenses that the Water Department funded for us. We have to pay them back. We also have $3 million of increased costs in water bills. In finance, we have upgrades to the FAMIS finance system and a new procurement system called Web Procure, because the other one was ceasing to be optimally functional. We also have a transfer to pay for the Core Scholarships 5 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. Funds, which are of particular interest to City Council. We also have a few other finance expenses. One is for higher workers' comp claims, which we've been experiencing the general claims in procurement. We have had to transfer about $600,000 in last year to pay for the ads in multiple languages, as required, and this year we actually funded that in the budget, so we will not have to make this transfer again, because we have not been able to achieve any of those savings which we had been anticipating. We're also giving about $200,000 to the Law Department for additional outside counsel and to the District Attorney partly for some Class 100 chart fall for the Line Squad and for repayment of productivity bank loan. City Commissioners, the savings that we hoped were achievable with the new voting machines haven't quite worked out to plan and so we do have some 6 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. increased costs in overtime and also for voting machine maintenance and so forth, and that adds up to about a million, and then we also have an additional payment to the First Judicial District for their AOPC Procurement Fund. And for the Bill 051091, that is a transfer from Finance, purchase of services to fringe benefits, and this covers cost of pensions for Aviation Fund employees, because as the workforce was reduced in the General Fund, that made Aviation's share of the cost a little bit higher on a proportionate basis. 051092, this is a transfer within the Water Department from personal services, not as many positions being filled, to the indemnities line item for higher claims. And the Bill 051101 is a transfer from fringe benefits in Fiscal '06 budget, not Fiscal '05, to the Office of Housing and Community Development to cover the costs for weatherization 7 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. initiatives. And this concludes our testimony. We are asking for a suspension of the rules, and we'd be happy to answer any questions of the Committee.
Thank you. I noticed your testimony given by the Prisons Commissioner. Is there someone here that could answer any questions?
Do you know the current population of the prison system?
He's hovering around 8,000. So the population was up last year and it continues to be up this year as well.
I'm aware that the contractual agreement with Delaware County will not be renewed once 8 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. it expires. What plans do you have to house these additional inmates?
Well, part of the answer to that, and I think we'd have to give you a definitive answer on that, but is that we are moving into the time of the year when the census is the lowest. Additionally, the prison system has been able to get an extension from Delaware County to May, so there will be more time to look at alternatives.
Thank you. I would like to announce that we have Councilman Kelly here as well and Councilman Clarke. Are there any other questions from members of the Committee? Councilman Rizzo.
You mentioned something that I have an 9 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. interest in, this Oracle Water Department billing system. Could you just for the record tell us what you know about the, what I'll call, delays and plots of money being spent, million plus so far, on a 7 project that hasn't even seen the light 8 of day, other than some licensing issues? 9 Now you tell me that we're going to have 10 to pay the Water Department back for the 11 licensing of the product -- 12
-- a product 14 that's going to support their billing 15 system? 16
Yes. That was 17 expenses for last year. I think we'll 18 probably have to get somebody from MOIS 19 to give you a definitive description of 20 where that project stands right now.
I'll deal with that. I don't need to do that in 10 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. public with them, but I just wanted you to be aware, it seems as though you are, that there are some significant issues with the Oracle Ocean Project, I believe it's called.
I have a question regarding Bill 051093. It relates to the Core Scholarships. What was the original amount allocated to the Core Scholarship? I thought it was 4 million.
Yes. Not all of the amount was sent over originally and so this makes the correction to the amount that was agreed on to Council.
I'm pretty sure. Yeah. 11 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC.
Are there any graduating high school seniors in public and parochial schools that are not eligible for this scholarship?
I think I should call Jackie Barnett to the table, who is the Secretary for Education, who can, I think, address some of those specifics.
Good morning. To answer your question about who is not eligible for Core Philly Scholarships --
I'm sorry. Excuse me. Please identify yourself for the record.
Jacqueline Barnett, Secretary of Education for the City of Philadelphia. Students who are not eligible for Core Philly Scholarships are students who are choosing to attend schools other than state or state-related universities. As long as they are high school graduates from private, parochial and public school students, they can receive up to $3,000 12 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. to attend one of the 20 state institutions in which we support. There is no grade recommendation. There is no 5 essay requirement. It is their will and their desire to go to college that we will support.
How are these scholarships advertised? Is it up to the individual school to make students aware this money is available or does the City promote them? What really is the process?
The process is such that we have an Executive Director that has maintained relationships with all of the high school principals, with the Administration to promote the Core Philly Scholarships. At the beginning of the year and the middle of semester, they receive an e-mail, principals and counselors alike, to let every graduating high school senior know that they are eligible for this money. With regard to the City of 13 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. Philadelphia, I think that we could do an improved job in promoting it within the community. Now, we are receiving money from the Sallie Mae Fund that will hold and host lots of financial aid workshops in a variety of communities to sort of target specific populations, and those have been successful.
Could you forward to the Chair a list of the students receiving these scholarships?
Is 14 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. there anyone else here to testify regarding all these bills?
My name is Lance Haver. I'm the Director of Consumer Affairs. I'll be very brief. I'll submit my written testimony. I know I'm often up here complaining. I wanted to come up here and say thank you very much to Councilman Ramos, Councilwoman Krajewski and the rest of Council. This bill is very necessary. We face a real crisis. And I don't want to take any more of your time.
If you have any questions, I'd be happy to answer them either here or in private. Thank you.
Thank you. 15 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. Are there any questions? (No response.)
I believe Councilman Clarke has deferred to me. Thank you, Councilman Clarke.
Councilwoman Krajewski and all the members of Council feel very strongly about this transfer ordinance of $2 million to help people that will be struggling with their gas bills very, very soon. Some are already struggling with them. This is very important for the people of Philadelphia to have access for some extra help if they need so given the energy crisis that we're facing in this country. Thank you, Madam Chair, for bringing this bill up for a vote today. Thank you.
Thank you. I believe that ends our hearing 16 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. on appropriations. Now we'll go into our public meeting. The Chair recognizes Councilman Clarke.
Thank you, Madam Chair. Madam Chair, I move that Bill 9 051091 be reported out of committee with a favorable recommendation and a request for a rules suspension as to allow reading at the next session of Council. (Duly seconded.)
Therefore, Bill 051091 will be reported out of this committee with a favorable recommendation, with a suspension of rules so as to permit first reading at the next session of Council. 17 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC. The Chair recognizes Councilman Kelly.
Madam Chair, I move that Bill No. 051092 be reported out of this committee with a favorable recommendation and also ask for the suspension of rules in order that this bill may have first reading at the next session of Council. (Duly seconded.)
Therefore, Bill 051092 will be reported out of this committee with a favorable recommendation, with a suspension of rules so as to permit first reading at the next session of Council. The Chair recognizes Councilman Goode. 18 12/1/05 - APPROPRIATIONS - BILLS 051091, ETC.
Thank you, Madam Chair. I move that Bill 051093 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. (Duly seconded.)
Therefore, Bill 051093 will be reported out of this committee with a favorable recommendation, with a suspension of rules so as to permit first reading at the next session of Council. The Chair recognizes Councilman Rizzo.
051101, we'll move this bill from this committee 19 and a suspension of the rules. (Duly seconded.)
Therefore, Bill 051101 will be reported out of this committee with a favorable recommendation, with a suspension of rules so as to permit first reading at the next session of Council. That ends our hearing on appropriations. Thank you very much. (Committee on Appropriations adjourned at 9:35 a.m.) - - - 20 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 December 1, 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.)