Committee Hearing, November 14, 2006

COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE OF THE WHOLE - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, November 14, 2006 10:30 a.m. PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN DARRELL L. CLARKE COUNCILMAN FRANK DiCICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILWOMAN DONNA REED MILLER COUNCILMAN JUAN RAMOS COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN B. TASCO RESOLUTION 060772 - Resolution confirming the appointment of Richard Glazer, Esquire as a member of the Board of Ethics... RESOLUTION 060773 - Resolution confirming the appointment of Richard Negrin, Esquire as a member of the Board of Ethics... RESOLUTION 060774 - Resolution confirming the appointment of Reverend Dr. Alyn E. Waller as a member of the Board of Ethics... RESOLUTION 060775 - Resolution confirming the appointment of Pauline Abernathy as a member of the Board of Ethics... RESOLUTION 060776 - Resolution confirming the appointment of Stella M. Tsai, Esquire as a member of the Board of Ethics... 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, everyone. I apologize for the delay. This is the public hearing of the Committee of the Whole. I would ask Mr. McPherson to please read the title of the resolutions that we will be considering. MR. McPHERSON: Resolution 10 060772, resolution confirming the appointment of Richard Glazer, Esquire as a member of the Board of Ethics to serve in the term ending November 1, 2011. Resolution No. 060773, resolution confirming the appointment of Richard Negrin, Esquire as a member of the Board of Ethics to serve in the term ending November 1, 2010. Resolution 060774, resolution 20 confirming the appointment of Reverend Dr. Alyn E. Waller as a member of the Board of Ethics to serve in the term ending November 1, 2009. Resolution 060775, resolution 25 confirming the appointment of Pauline 3 11/14/06 - WHOLE - RES. 060772, ETC. Abernathy as a member of the Board of Ethics to serve in the term ending November 1, 2008. Resolution 060776, resolution 6 confirming the appointment of Stella M. Tsai, Esquire as a member of the Board of Ethics to serve in the term ending November 1, 2007.

Ms. Wilkerson, are you going to be testifying?

Yes. I'd like to ask for the proposed candidates of the Commission to come forward so I can introduce them. Good morning.

Good morning.

My name is Joyce Wilkerson. I'm Chief of Staff for Mayor Street. I'm delighted to appear before you today to introduce the five nominees to the new independent Board of Ethics. Before I introduce the nominees, 4 11/14/06 - WHOLE - RES. 060772, ETC. however, I'd like to first provide some context for this morning's hearing by reviewing recent ethics reform in Philadelphia and then by highlighting some of the main features of the new Ethics Board. As Council is well aware, Philadelphia has taken strides forward in ethics reform over the recent years. In 2004, the Mayor issued two Executive Orders which reconstituted a previously existing Ethics Board and strengthened rules prohibiting City employees from accepting gifts or meals from anyone seeking to do business with the City. The City had also passed laws to limit political contributions to elected officials and candidates and, in December 2005, passed regulations to prevent campaign contributions making contributions in excess of certain levels from receiving -- making contributors who make contributions in excess of certain levels, prohibiting them from receiving 5 11/14/06 - WHOLE - RES. 060772, ETC. City contracts that are not required to be competitively bid. At the same time the City passed contract reform measures in December 2005, the City also established legislation that would create a new independent Board of Ethics subject to voter approval of an amendment to the Home Rule Charter. On May 16, 2006, Philadelphia voters overwhelmingly approved the amendment to the Charter. The new Board of Ethics joins six other independent boards and commissions under the Home Rule Charter. The new Ethics Board will have investigative and enforcement powers and jurisdiction over all City government, not just the executive branch of government. To ensure that everyone knows where the boundaries of acceptable conduct are, it will be responsible for providing guidance and education on ethics rules to the entire City workforce, as well as to City vendors. 6 11/14/06 - WHOLE - RES. 060772, ETC. Unlike the rest of City government, the Ethics Board will be supported by its own legal staff in significant areas, including campaign contributions, contracting, in addition to more traditional ethics areas. The new Ethics Board will also promote greater transparency in government by overseeing financial disclosures by City officials and by publishing campaign finance disclosures by elected officials and candidates. Finally, provisions that will permit removal of Board members only for cause and that will protect the new Board's budget from cuts will assure its independence. Under the new law, the Mayor nominates five members to the new Ethics Board, with the advice and consent of a majority of the members of City Council. Soon after the City passed the legislation in December 2005, the Administration began to search for 7 11/14/06 - WHOLE - RES. 060772, ETC. eligible candidates with impeccable judgment and a willingness to serve on this vital new Board. Eligibility restrictions under the new law made the search challenging. Members are restricted from seeking or holding a position as an appointed or elected public official. They may not be an officer of a political party, and they are prohibited from making political contributions to local officials or candidates. After their service on the Board, they and the Executive Director and counsel are prohibited from seeking any City elected office for a period of two years. But in the end, we were able to select five candidates with high integrity and diverse experience. The initial terms are staggered from one to five years. After the initial terms, all members serve for a term of five years. Board members are limited to serving no more than two five-year terms. There are additional 8 11/14/06 - WHOLE - RES. 060772, ETC. restrictions on the activities of Board members both during and after their service.

Once they are confirmed, members to the new Ethics Board may be removed only for cause after notice from the Mayor, a hearing before City Council and a vote of two-thirds of City Council. With that background, it is my pleasure to introduce the five nominees to the Philadelphia's Board of Ethics. They are Pauline Abernathy, who is to my left. Pauline is Deputy Director for Policy Initiatives and Health and Human Services for the Pew Charitable Trusts. Ms. Abernathy served in the Clinton administration on its Domestic Policy Council and its National Economic Council as well. Ms. Abernathy's term on the Ethics Board will be for two years. Richard Glazer, sitting to my right, is a founder of Cozen O'Connor, one of the 100 largest law firms in the United States. Mr. Glazer has served on the board of a number of local non-profit 9 11/14/06 - WHOLE - RES. 060772, ETC. organizations, including the Committee of Seventy and also the Public Interest Law Center and did a stint with local government as "a dollar a year" employee. Mr. Glazer's term on the Board will run for five years. Richard Negrin, to my right, is Vice-President and Associate General Counsel of Aramark. He served previously as an attorney at Morgan Lewis and is a prosecutor in the Major Trials Unit of the Philadelphia District Attorney's Office. Some of his responsibilities at Aramark include ethics work in the area of regulatory affairs, and so he brings that expertise to this Board. To my right, too, is Stella Tsai. Stella is an attorney from the law firm of Christie, Pabarue, Mortensen and Young. Previously she served as Chair of the Administrative Law for the Philadelphia Law Department and also as counsel for the Civil Service Commission. Her term on the Board will run for one 10 11/14/06 - WHOLE - RES. 060772, ETC. year. And, finally, to my left is Reverend Dr. Alyn E. Waller. He's the Senior Pastor for Enon Tabernacle Baptist Church. Under Dr. Waller's leadership, Enon Tabernacle congregation has grown to over 7,000 members, including a dozen new ministries and such community outreach programs as a computer lab and technology-based ministry. Reverend Waller's term on the Board will run for three years. These five candidates were chosen for their independence, integrity, civic commitment and high ethical standards. On behalf of the Administration, I respectfully request that you confirm these five nominees to the new independent Board of Ethics by approving Resolutions 060772 through 060776 so that they can begin their important work as soon as possible. I also have amendments that I would like to submit to the Committee. 11 11/14/06 - WHOLE - RES. 060772, ETC. The resolutions as transmitted had each member serving a term ending November 1st of the particular year when their term was to expire. It's not anticipated that the adoption will occur until this coming Thursday, and so we would ask that the resolutions be amended to have terms ending on November 16th of the various years. I believe these were circulated previously with a letter of explanation from the City Solicitor's Office.

They were. Thank you. Thank you very much. The Chair recognizes Councilman Clarke.

Thank you, Madam President. I had a real quick question with respect to the roles and responsibilities of the new Ethics Board, and you've explained that somewhat in your testimony. My question centers around the fact that we currently have an Inspector General whose primary 12 11/14/06 - WHOLE - RES. 060772, ETC. responsibility is to oversee any unethical or actually illegal activity by City employees. We also have a City Controller, who most people believe that's the Controller's role and responsibility to a degree, and we now have a reconstituted Ethics Board. And my question is, do you anticipate any overlap that could possibly cause problems with the three entities essentially having jurisdiction over that?

I think one of the major challenges of the new Ethics Board is working through those difficult areas. I think the Inspector General's major responsibility is conducting investigations. Their responsibility is largely limited to the executive branch of government. It doesn't extend across all of government. Under the new law, it is, to some extent, an investigative arm of the new Ethics Board, but I think inevitably 13 11/14/06 - WHOLE - RES. 060772, ETC. there are going to be conflicts and a little bit of confusion, and one of the things that the Board will have to do is chart that course, help define where the boundaries are between the Controller, the Ethics Board and the Inspector General.

Well, in your testimony, since you referenced DIG's role as being more investigative, you did state in your testimony that the Ethics Board will also have investigative powers. My concern -- and I don't know how this would happen. I'm assuming that, to some degree, these various entities have autonomy. Will there be some sort of coordinated effort or will this be this turf war in terms of who gets to investigate the City employee or whose investigation takes precedence over whom? I'm just a little concerned that we can have somewhat of a conflict and some duplication.

Well, the 14 11/14/06 - WHOLE - RES. 060772, ETC. Inspector General serves at the direction of the Mayor and does not rise to the level of being a Charter-created position. I think that they're -- I would anticipate there are going to be matters that the Administration might send to the Inspector General to have the Inspector General investigate. Not everything will necessarily go to the Ethics Commission. But we're going to have to work through those issues. I think that --

So -- I'm sorry. Go ahead. I guess I'm wondering, why do we need an Inspector General?

I think the Administration is interested in having that ability to conduct discreet and secretive investigations of matters that may not fall under the Ethics Board.

All right. I'm going to leave it at that. I would like to probably inquire a little more further in-depth about the roles and 15 11/14/06 - WHOLE - RES. 060772, ETC. responsibilities off the record so I can get a better understanding of who will be doing what.

All right.

Thank you. Thank you, Madam President.

You're welcome. The Chair recognizes Councilwoman Miller.

Thank you. Thank you, Madam President. Good morning, Ms. Wilkerson.

Good morning.

On of your testimony at, I guess, the last full paragraph, it says, "Board members are limited to serving no more than two five-year terms" and "there are additional restrictions on the activities of Board members both during and after their service." What are those restrictions?

I believe 16 11/14/06 - WHOLE - RES. 060772, ETC. they're -- Shane, you can help me. I believe they're restricted -- some of it is in the testimony. Their political activities are restricted. They can't serve on boards and commissions. I don't believe they can contract with the City.

Good morning. Shane Creamer, Executive Director to the current Philadelphia Board of Ethics. Good morning, Councilwoman. Yes, that's correct. The main restriction I think on both the members of the Ethics Board, the new Ethics Board, and also on the Executive Director and General Counsel is that they are prohibited from running for a local City office for a period of two years after they leave the Board. That's the primary restriction after they leave service.

And can you tell me what's the difference between the old Ethics Board and the new? Because I just don't know. 17 11/14/06 - WHOLE - RES. 060772, ETC.

Certainly. The current Ethics Board was reconstituted by Executive Order in August of 2004. It is an advisory body only, in that it lacks investigative enforcement powers. It also has its jurisdiction limited to the administrative branch of government since it was created by Executive Order. It cannot reach conduct by those in independently elected offices. The new Ethics Board as a Charter organization will have jurisdiction over all of City government, all the independently elected offices, and it will also have investigative and enforcement powers that the current Board lacks. There is also a provision for monetary fines that are unavailable for violations currently. They escalate in each calendar year. And then the new Board will also have jurisdiction over certain disclosures, including financial disclosures. It will take over that 18 11/14/06 - WHOLE - RES. 060772, ETC. function from the Records Department, and it will also take over the new campaign finance reporting functions that the Records Department is currently managing. Under one of the ordinances that was passed last year, candidates and campaigns have to report the same campaign finance information that they are required to report to the City Commissioners and to the Secretary of State to now the Records Department and then the new Ethics Board when that gets online. And the new Ethics Board will be required to publish that information online in a searchable database. And the new Board will also have enforcement powers over the campaign finance disclosure process. To the extent that there are material misstatements or omissions in those filings, they will be able to enforce those disclosures.

So just the practical question of filing, so we will still take our campaign finance 19 11/14/06 - WHOLE - RES. 060772, ETC. reports or disclosures and take them downstairs the way we normally do, and then it's their responsibility to get the copies to the Ethics Board?

You will still have to take it downstairs to the City Commissioners. However, you will simultaneously be required to transmit it to the Ethics Board. I think that the Records Department has been working on an electronic filing system. I'm not sure where they are. I think they were testing it the last time I spoke to Commissioner Decker. I believe it may be up and running and available for some candidates to take advantage of that electronic filing system, but they also accept paper filing at this time, it's my understanding, and those paper filings are then scanned into the database by the Records Department. The future Ethics Board will have to develop rules and regulations around the campaign finance reporting 20 11/14/06 - WHOLE - RES. 060772, ETC. function, and under the ordinance, they're also required to reach out to candidates and campaigns to offer instruction on the system and I think also to work with the county commissioners, City commissioners, on that outreach effort.

All right.

Madam President, point of order.

Yes. The Chair recognizes Councilman Clarke.

Thank you, Madam President. With respect to Councilwoman Miller's question on the filing, currently under the current system if the candidate does not file certain information on their disclosure form, there can be a court challenge and subsequently that candidate can be taken off the ballot. Will there be a similar potential for penalty if they do not file 21 11/14/06 - WHOLE - RES. 060772, ETC. adequately with the Ethics Board?

Not a similar penalty. I believe -- I think that a lot of this has to be sorted out, but the sanctions that the new Board can issue --

Will it be sorted out before May?

Oh, yes.

The May primary?

Yes. The sanctions are in the statute. I think the Board has to develop rules and regulations on how it's going to enforce those rules, but there is not an available sanction that they would be taken off the ballot under this legislation.

Because that's state mandated, that's a state regulation?

That's correct, but there are monetary fines. If you fail to file a report, you could be 22 11/14/06 - WHOLE - RES. 060772, ETC. sanctioned a monetary fine by the new Ethics Board.

Okay. Thank you. Thank you, Madam President.

I do have a follow-up on your question, Councilman, on the Inspector General and the relationship between the new Ethics Board and the Inspector General. Originally in the ordinance that has the powers and duties of the new Ethics Board, Bill 14 051024 contained a provision where the new Ethics Board could, if it chose to, refer matters for investigation to the Inspector General, and the Inspector General would thereafter have to issue a report back to the Ethics Board. And I think on the advice of the Law Department, it's my understanding that provision was removed because of concerns over counsel directing an appointee of the Mayor to do certain things. So that language was taken out and what was left 23 11/14/06 - WHOLE - RES. 060772, ETC. in there was that the new Ethics Board can refer matters for investigation to the Inspector General if they choose to. And I think getting back to your question about overlap, I think there is going to be a lot of overlap between what the new Ethics Board does, what the Inspector General does, what the Controller does and even what the prosecutors do both locally and federally, and I think that the new Ethics Board and the Inspector General and the Controller and even the prosecutors are going to have to work on those relationships. I think that you may see many cases of overlap where, for example, you have what I consider to be an integrity issue, which is the primary jurisdiction of the Inspector General; for instance, maybe misuse of City property. There may be a conflict of interest violation in there that the Ethics Board would pursue, but there's also an integrity issue that the 24 11/14/06 - WHOLE - RES. 060772, ETC. Inspector General may pursue or the Controller may pursue, and you may see both of those or all three bodies investigating at different times, and they're going to have to work out what sequence is appropriate, particularly if you have a case where you have criminal investigations ongoing. Criminal prosecution may take a priority or it may not. We're going to have to sort out how those investigations relate to one another. But to give you another example of an overlap, the simple case of bribery, if there is a simple case, clearly has -- there's an ethical violation in there, but there's also a criminal violation or potential criminal violation. So the Ethics Board may still act in those cases that are prosecuted criminally, and they're going to have to determine at what point they initiate their enforcement, whether it's simultaneous or whether it's before or 25 11/14/06 - WHOLE - RES. 060772, ETC. after the criminal prosecution.

But those things happen now. The Inspector General will refer matters for prosecution. I mean, you have that overlap now.

I understand, and I'm just -- I guess I'm a little concerned that sometimes when you have multiple investigations taking place, it can sometimes create problems for the investigation because of the overlap and because --

That's right. And I think one of the challenges in government is to maintain efficiencies and not to duplicate --

Exactly.

-- work and to have inconsistent findings or outcomes or discovery. So I think that I've already had some conversations with the Inspector General about the need for working on a relationship with the new Ethics Board. I don't work for the new Ethics Board, 11/14/06 - WHOLE - RES. 060772, ETC. but I'm preparing the nominees and I'm working on the process here. So I think it's appropriate at this point to consider how they're going to be interacting, and I think that's already occurring. People are already talking about that.

Thank you.

Council President, I just have one more question. Mr. Creamer, you stated when Councilman Clarke asked his question that certain things have not been sorted out yet. So once it's sorted out, is there going to be some type of process to inform Council about policies, procedures, steps, whatever?

I'm sorry. I apologize. Sorting out is probably not the most descriptive language I could have used, but under the statute, the new Ethics Board has to adopt policies and procedures for enforcement, for investigations, for rendering informal 27 11/14/06 - WHOLE - RES. 060772, ETC. advice and for rendering formal advice. They also have to issue rules and regulations around financial disclosure and also on campaign finance. And so the Board is going to have to meet in, I think, a public way to consider what those policies and procedures should be. They're going to have to vote on them, I would imagine, and approve and adopt them, and that would be done in a public way, I would imagine, under the Sunshine Act. And I think that would be the opportunity for Council and the public at large to learn about what the process will be in those areas.

I think there's also an acknowledged role in educating people generally. It's something that started with the current Executive Board. There's been just months and months of education for everybody in local government on a department-by-department basis about what's required of them. I mean, I think as the new Ethics Board 28 11/14/06 - WHOLE - RES. 060772, ETC. develops its policies, develops its standards, issues opinions, there will be an ongoing need to really meet with the people in the departments. There's currently a system of integrity officers in all City departments, and the new Ethics Board will have to decide whether it wants to continue working through integrity officers in the various departments. But that's been an effective way of helping to educate people in various levels of government as to their responsibilities.

What about Council staff and members? Because we have not had the departmental workshops that you're talking about that you've had.

That's right. It's always been our intention to offer training to City Council and staff. Regrettably -- and I have a statement from the Ethics Board that mentions our City-wide ethics training program, and 29 11/14/06 - WHOLE - RES. 060772, ETC. what we did was, we had a "train the trainer" model. We've trained 263 embedded trainers throughout City government, and they report to what's called the Training Consortium, which reports to the Personnel Department or is coordinated by the Personnel Department. And the Training Consortium consists of 41 Human Resource managers throughout the City, and we were able to sort of use them as the middle men to reach the trainers embedded in the departments and coordinate the training for the trainers. Unfortunately, I think we don't have a staffer from City Council on the Training Consortium currently and so we just sort of -- we were outside that loop. The other issue was that we couldn't compel City Council or staff to accept the training, because we only have jurisdiction over the administrative branch. But it was always our intention to offer that training at some point, and 30 11/14/06 - WHOLE - RES. 060772, ETC. I think that we would probably want to arrange for different training for Councilmembers and perhaps their top staff than we would for rank and file 6 staff. But that's all to be worked out. We are ready, willing and able to adapt our program for Council's needs, but at a certain point, I think we decided we would just wait for this new Board to come online since there is a provision in there that requires all elected officials, all board and commission members, all department heads to receive mandated ethics training within one year of the effective date of the legislation, which will be June 15th, I believe, 2007. So by June 15th, 2007, City Council will be required under the law to receive ethics training. So at one point -- I'm not sure when it was over the spring or summer -- we decided we would defer offering the training to City Council. We thought it would make more sense to make that 31 11/14/06 - WHOLE - RES. 060772, ETC. something for the new Board to take up with City Council since you're going to be required to do it anyway. We didn't want to duplicate the training for you.

Thank you. Thank you, Madam President.

You're welcome. The Chair recognizes Councilwoman Tasco.

Thank you. Good morning. Good morning, everyone. Welcome. I just want clarification. Some of the questions I had have been answered. I understand we will file our financial disclosure forms with you. In terms of what those disclosures should contain, are we in compliance with the state law or will you -- well, no. The City has its own form, right?

Well, yeah. You're talking about financial 32 11/14/06 - WHOLE - RES. 060772, ETC. disclosure?

Right.

There are three financial disclosure forms. There is the state form, the City form and then there's a Mayor form that was created by Executive Order, and only certain people have to file that. I think the Mayor and cabinet members and maybe certain department heads have to file that. So there are three forms. Those forms remain unchanged at the moment. And I think it's really just the function of receiving those disclosures will transfer from the Records Department to the new Ethics Board. However, there will be that enforcement layer that does not exist presently that will exist in the future. So if there is a failure to file or a failure to disclose a material misstatement on a financial disclosure form, the new Ethics Board would be able to investigate that and enforce the rules. They may issue sanctions for 33 11/14/06 - WHOLE - RES. 060772, ETC. those violations.

So we would file -- all of the forms would go to the --

To the Ethics Board.

What about the campaign finance disclosure form that goes to the state?

They still will have to -- whatever you have to file with the state will still be filed with the state. Whatever is filed with the City Commissioners still will be filed with the City Commissioners. In addition to those filings, you have to file the same exact information with the new Ethics Board in the future.

Do we have to file campaign expense reports with this Ethics Board?

I believe the law says all contributions, financial information on contributions and 34 11/14/06 - WHOLE - RES. 060772, ETC. expenditures, have to be reported to the Ethics Board and it's -- I think the way it's described is in the same information that you have to disclose to the state and to the City Commissioners has to be disclosed.

So we file 9 one with you, one with the state and one with the City Commissioners?

Correct. And an effort has been made by Commissioner Decker currently, because the law became effective when it was passed earlier this year and before the new Ethics Board was installed, the Records Department was responsible for implementing that provision, and they have made a great effort to make the filing process as consistent with the state process as possible. I think they use the same templates. They work with -- I think there's several vendors that have computer systems, software systems, for candidate finance management, and I 35 11/14/06 - WHOLE - RES. 060772, ETC. believe their application is consistent with those systems in a way that it should be as painless as possible to duplicate the filing for the Ethics Board.

What is the process for review of the financial disclosure forms and/or campaign expense reports? Would the Board have the authority to question expenditures?

No. 13

You are just to receive them?

That's a very good question. The jurisdiction is limited to enforcing for material misstatements or omissions and that's it. So we cannot question -- and I guess -- no. That's it. That is it. We cannot question the nature of the expenditures in any way.

But it also overlaps with the contracting laws, and so City Council enacted the "Nutter 36 11/14/06 - WHOLE - RES. 060772, ETC. rules" that require that parties doing business with the City for non-competitive contracts disclose certain contributions. That's also enforced by the new Ethics Commission. So there will be disqualification decisions made by the new Ethics Board as a result of campaign contributions. So it's not direct to the Councilperson or the elected official, but it may impact contractors with the City.

Right. The new Board will have jurisdiction over the disclosures in the contract process, the new contract process. So in that process, for certain qualifying no-bid contracts, vendors must disclose certain political contributions they've made and their firm has made over the past two years, and they also have to disclose consultants who have been hired to assist them get the contract. So the new Ethics Board, its jurisdiction is essentially limited to the ethics rules, but the 37 11/14/06 - WHOLE - RES. 060772, ETC. jurisdiction is extended under the law to govern and regulate, again, material misstatements and omissions of the disclosures in that contract procedure.

How much staff will you have?

Well, that will be up to the new Ethics Board to determine. They're required under the law to hire an Executive Director and a General Counsel, and they're left to determine such other staff as necessary. I suspect that for the functions that they're going to be required to carry out and comparing our program to other municipal ethics programs around the country, I think initially a fair number might be anywhere from four to eight, but it would certainly grow up from there. I think if you look around at some other models around the country with programs that are doing similar functions to what this new Board will be required to do, staff tends to be in the low 20's. But I 38 11/14/06 - WHOLE - RES. 060772, ETC. think it's certainly going to take us quite a time to get to that level, to grow into that size of a program.

Under what department will this Ethics Board fall?

It's an independent commission.

Now, what is their budget, line item budget costs?

I think their budget is 1.6 or 1.2.

No. It's $1 million in each of the first two fiscal years of operation.

Okay.

And then after that, there's language that it has to be an amount that's appropriate for it to fulfill its function, something like that. So there's a guaranteed budget of a million dollars in each of the first two years.

You can buy whatever you want to buy. There's no 39 11/14/06 - WHOLE - RES. 060772, ETC. limit, right?

Well, I don't know if it says that.

Okay. I think that's all the questions I have right now. Thank you.

You're welcome.

Thank you. The Chair recognizes Councilwoman Brown.

Thank you, Madam President. Good morning, everyone. In response to Councilwoman Tasco's question regarding staff, first repeat the answer, please.

Certainly. Under the law, the new Board is required to hire an Executive Director and a General Counsel, and then the law also says that they can hire such staff as they deem necessary and appropriate. Beyond that, my prediction was that at least initially 40 11/14/06 - WHOLE - RES. 060772, ETC. it would need four to eight people to run the operation initially, within the first six to ten months or so. And then sort of looking forward, if you compare our program and what it's going to be required to do to other municipal ethics programs around the country and what they're required to do, there's some more mature programs out there. There's New York that has been in existence for 12 years. They don't have campaign finance 13 responsibilities. That's a different 14 board in New York. There's Los Angeles. 15 They have jurisdiction over campaign 16 finance. They have enforcement 17 responsibilities. I think Los Angeles has a staff of about 23 and a budget of about 2.3 million. I think New York's budget is 1.7 million. Chicago has a staff of, I think, 15. They have a budget of about $800,000, I believe. I have the details in my --

You can forward that to the Chair just for my own 41 11/14/06 - WHOLE - RES. 060772, ETC. information.

Certainly.

So given the current state of the department or agency, who is the go-to person for candidates and/or a candidate's team members when they need clarity of the law so that they are in compliance?

Currently that would be the Law Department, I believe.

That would be the Law Department?

And it is the Law Department who I think has been answering those questions. Lewis Rosman in particular I think --

Repeat that person's name.

Lewis Rosman in the Law Department I believe is the person who has been answering and interpreting those questions.

But I think once the new Commission is up and 42 11/14/06 - WHOLE - RES. 060772, ETC. operating, it will have an Executive Director. I think it's very unclear where the jurisdiction between the Law Department and the ethics legal department begins and ends. And those are the kinds of conflicts that have to be resolved. There's going to have to be a lot of conversation. I think there's a body of law that currently exists within the City. Evan and other people in the Law Department have been writing opinions for a pretty long time, and whether or not that becomes the law under the new Ethics Board is something that will have to -- all those things have to be thought about and resolved moving forward.

Well, then recognizing that in 90 short days a number of us will be moving to candidate posture and wanting to honor the letter of the law with regards to the completion of those forms, who is the go-to person? Is it the person you just stated? 43 11/14/06 - WHOLE - RES. 060772, ETC.

Well, that function is currently being handled by the Records Department. So they have been receiving campaign finance reports since January of this year, I believe. They have an electronic database that is available online if you go to the City's website. It is searchable in four different categories, as required by the law. And if you have any questions, technical questions, about how you physically go about submitting the information, I would contact Commissioner Decker, and then if you have questions about interpretation of the law --

Which is what my greater question is, the issue of interpretation.

I think for the moment, you'd have to go to the Law Department. In the future, once the Ethics Board has counsel, the law provides that the Ethics Board does not have to rely on the advice of the Law 44 11/14/06 - WHOLE - RES. 060772, ETC. Department, and, therefore, I would think in the future at some point when the new Board has the capacity to answer those questions, then you'll have to go to the General Counsel of the new Ethics Board for questions interpreting that provision.

But with respect to the filing, one thing that the City has been able to do is to support a lot of these varying filing requirements with technology. So, for example, under the "Nutter contracting laws," reports have to get filed, documents filed. The rules aren't necessarily consistent. And with the help of MOIS, a system has been created so that once a document is created electronically, it automatically gets filed in the places that it needs to be filed. And so we'll be working with the Ethics Commission to try to integrate the various filing requirements and support them with technology, give everybody a fighting chance at some of 45 11/14/06 - WHOLE - RES. 060772, ETC. this.

All right. So for the record, in the short term, the point person is?

I would go to Commissioner Decker if you need to -- and if she can't answer your question, she will refer you to the Law Department, I believe. But we have a system that is up and running. It is working well. I think Commissioner Decker did a phenomenal job of getting that database up and running in a very short time. I think she did it in less than a month. And I think they have a lot of experience now with the several reporting requirements this year already with receiving reports and voting them into the database and answering questions of candidates and campaigns. So I would certainly go to her first with your questions, and then if she can't answer them, she'll direct you to the right 46 11/14/06 - WHOLE - RES. 060772, ETC. people.

Very well. Thank you. Thank you, Madam President.

You're welcome. The Chair recognizes Councilman Clarke.

Thank you, Madam President. I'll be brief, because I know we have to get to a vote at some point. Question, you just referenced the Ethics Board not necessarily being subject to the City Solicitor. So I'm a City employee and I want to get a ruling as to whether or not something that I'm going to get involved with is a conflict of interest. City Solicitor does the opinion and says, That's not a conflict of interest. Ethics Board gets involved and says, after I, the employee, go out and do whatever it is, with the understanding it's not a conflict of 47 11/14/06 - WHOLE - RES. 060772, ETC. interest, now the Ethics Board comes in and says, Well, that is a conflict of interest, and starts an investigation. Where does that put --

You've put your finger on one of the more intriguing parts of the new law, and I think the intention there -- and you are correct, there can be a difference of opinion. The new Ethics Board is not bound by the opinion of the Law Department, and that does create the potential for some conflict in opinions and interpretation. But I think they are potential conflicts. I think that it is possible for the new Ethics Board to work with the Law Department in a way in the future that would minimize, if not eliminate, the potential for conflict there. But there is that provision in the law, and I think there are several reasons why that is so. I think if you ask the people who wrote the law, they'd probably tell you that they wanted this 48 11/14/06 - WHOLE - RES. 060772, ETC. new Board to be completely independent in every way. It is financially independent. It is politically independent. It is an independent City Charter organization and it is not -- it is independent legally in terms of interpreting the law. It is independent from the City Law Department. I think that's one reason why they did that. A second reason I think that they had --

I understand the intent. The issue is the practical application.

Right.

And I've heard you on several occasions say that we're going to work it out and we're going to talk about it, and I'm concerned that we, the Council, we can confirm these members today -- and I believe they're all fine individuals. I happen to know a couple of them, so I have no 25 problem with respect to the vote, but the 49 11/14/06 - WHOLE - RES. 060772, ETC. practical application of the regulatory portion of this Board concerns me, because I keep hearing you say, We're going to work it out, we're going to work it out. The reality is, if we vote to confirm today, we probably won't hear from you again as it relates to the Ethics Board. So --

Right. The law does --

Let me finish.

I'm sorry.

So my question is -- and I'm probably going to get into a little trouble. Somebody will criticize me in saying that I'm not for ethics reform, but is there a way that you can work some of these nuances of this whole regulatory function of the Board prior to final approval? And I know you probably can't, but I guess I'm just concerned that we'll take a vote and we won't hear about it and then these 50 11/14/06 - WHOLE - RES. 060772, ETC. problems will creep up as we move through the process of --

No. I appreciate your question. I think it is a legitimate concern, and I think it's one that's difficult for me to answer because the statute says that the new Board must issue and adopt rules and regulations in certain categories. So that's a process left to be done. It doesn't say how they're supposed to interact with some of these other offices and agencies. That something is a practical matter that they should strive to do.

Well, who makes that happen?

Well, I think that the Board members or working through staff can reach out to people like the Inspector General. I've had conversations already with the Inspector General about anticipating the new Board coming online and how we would work together. The Inspector General, both 51 11/14/06 - WHOLE - RES. 060772, ETC. this Inspector General and the previous Inspector General, came to several of the current Ethics Board's meetings and they were invited to speak, and one session I think the current Inspector General even participated in an executive session on a matter that we had referred to him and he was reporting back to us at that point on that referral. So we have worked with the current Inspector General. The current Board has in the past. So we have some basis of experience to work from to guide us in the future as we try to work out where the boundaries are and how we're going to work together.

I think when Council enacted this legislation, a lot of these concerns were on the table. I think people understood that we would have to kind of figure it all out, and there's really no way of doing it before you have a Board, because the Board is the entity that has to make the 52 11/14/06 - WHOLE - RES. 060772, ETC. decisions.

I understand. I am in no way, shape or form trying to take us out of the equation as it relates to some of the potential problems. We in Council sometimes vote for things and we don't look at the details and the nuances of the details, but we are here today in a confirmation hearing and I just would like to feel comfortable that there is going to be a real process to make sure that some of these details get dealt with in a reasonable way. While we want to create an independent Ethics Board, we don't want to create a board --

Don't want them to be independent.

-- with reproach. We don't want them to just like -- we're not trying to create kings. And I in no way want to imply that any of these individuals would even accept that role if in fact we tried to make them 53 11/14/06 - WHOLE - RES. 060772, ETC. kings or queens, but I'm just a little concerned that once we do this, the genie is out of the box and we're not in a position to be ensured that these things will be resolved.

Just a couple of comments. I don't know if it will really truly alleviate your concerns, but technically there is a reporting requirement. The new Ethics Board will have to issue periodic reports to City Council and to the Administration. I think there is a requirement for an annual report and then there's a second fiscal report that has to be reported out to Council. And then practically, I think the mission of this new Ethics Board, if you interpret all of the provisions together, is one where they really have a responsibility for educating not only those people within City government but people outside government. They're actually required to reach out. They 54 11/14/06 - WHOLE - RES. 060772, ETC. have to provide ethics training to businesses. They have to develop a business code of ethics for people that are doing business with the City. And then they have to do the internal training. So I think that the new Board is going to have to think about how it operates functionally in a way that instills confidence in both the people within government and outside of City government, and I think that in order to do that, it's got to be working in sync with some of these other offices. And so I think they will have the right incentive to work cooperatively with some of these other agencies that they have overlapping jurisdiction with, whether they're prosecutors or the Inspector General or the Controller's Office.

And I just want to add, a lot of these laws aren't new laws that they'll be interpreting. The state law has been around for a long 55 11/14/06 - WHOLE - RES. 060772, ETC. time. A lot of the City's constraints are not new constraints on the activities of employees. The Law Department, Evan and others, have been interpreting these laws for a long time, and this becomes part of what the new Ethics Commission will inherit. You wouldn't expect them to wake up making decisions 180 degrees different, and so they will be drawing on all the case law that precedes their coming into effect.

All right. If the Administration -- I'd like to get, if at all possible, the budget, to have it forwarded to the Chair, the budget of the Inspector General's Office, and you've already indicated what the budget of the Ethics Board will be. If you can just include that in the information. And if at all possible, the budget of the investigative arm of the City Controller's Office and indicate how many investigators are currently on staff with the Controller, with the Inspector 56 11/14/06 - WHOLE - RES. 060772, ETC. General and proposed number of investigators on the Ethics Board.

Do you have a point of information?

I'm done, Madam President.

Councilwoman, is that a point of information? Because Councilman Rizzo's light has been on.

He's done.

But Councilman Rizzo's light has been on.

Yes, on this issue.

Okay.

You made me forget my question.

We were talking about budgets.

Yeah, right. I guess this is a new issue. I'll wait until -- I'd better write it down. 57 11/14/06 - WHOLE - RES. 060772, ETC.

I can appreciate that.

Councilman Rizzo, I'll wait until you finish.

The Chair recognizes Councilman Rizzo.

Thank you. Good morning.

Good morning, Councilman.

During our briefing last week, I think it was, in the Caucus Room, which I appreciate, I learned a lot there and had an opportunity to meet the nominees, what I'd like to know, we had a lot of discussion there with some of the members, some of the Councilmembers and their staff. Anything that we discuss develop into anything? Did the one point that was made about the fact that I have a concern that there could be an investigation going in an operating department and the Ethics Board not know 58 11/14/06 - WHOLE - RES. 060772, ETC. about it because there's no requirement for that particular department to notify you that there is an active investigation. And there were some other points, but that's the one that concerned me the most, that that could be held back because there's no requirement to bring that forward to you.

I do recall that question, Councilman, and after we had that conversation, I did go back and check the law. I've read it a hundred times and I keep finding new things in there. In the backdrop of your question, I looked at this provision a little differently. It sort of jumped out at me. But there is a provision in there that whenever a City agency receives a complaint alleging a violation of the provisions of this chapter or determines that a violation of this chapter may have occurred, it shall refer such matter to the Board. And so that means that any City agency that knows about a potential 59 11/14/06 - WHOLE - RES. 060772, ETC. violation of the Ethics Code must report that to the Ethics Board. If they don't, I would think that would be a violation of the Ethics Code, because this is in the Code now. And we have to determine a couple of things, what does it mean for an agency to know. I think that's a matter of interpretation. I think it's something more than just the head of that agency or department knowing about it. I think if a staff worker reports something to a supervisor or manager, I think at that point that would rise to the level of the agency knowing about the potential violation in a way that would force them to refer the matter to the Ethics Board, whether they're conducting an action on it or not. And so we need to teach people in these departments and agencies about this requirement, and they're going to have to develop a process for ensuring that they're in compliance with this provision and that they are capturing all 60 11/14/06 - WHOLE - RES. 060772, ETC. potential violations that they're aware of and reporting it on to the new Ethics Board.

That's good to hear. I'm glad that you clarified that. And so I understand, even an internal investigation that is not the result of a phone call, your notification to the Board would be required if an internal investigation --

That's correct, as long as it involves a potential violation of the Ethics Code, yes, they would be required to report that on to the Ethics Board, notwithstanding their own investigation.

What's the mechanism for confidentiality? The more people that know, there's the possibility of leaks. There's the possibility of compromise to the investigation. I think somebody else concerned about a lot of people involved. What is the process and what is 61 11/14/06 - WHOLE - RES. 060772, ETC. the ramification for a member that would violate or leak or call a friend, say, Hey, look, you're under scrutiny?

Right. Actually, just a couple paragraphs down from the provision I just read, there's a provision on confidentiality that says that all of the records, reports, memoranda and filings of the Board shall be confidential. And so I think that up to the point until there is an adjudication perhaps -- and, again, a lot of this process has to be worked out, but I interpret this provision to mean that you cannot disclose a complaint or any information about an investigation or any information or materials that have been discovered in the course of an investigation or an enforcement action until you're at a stage where the enforcement proceeding is going public.

What happens if -- not this Board, but what happens if in fact it is determined, a wire tap or 62 11/14/06 - WHOLE - RES. 060772, ETC. something picks up a Board member saying to a person that's under investigation that you're being investigated? There's got to be a consequence.

That's a violation of the Ethics Code, I would think. This confidentiality provision is in the Ethics Code, and, therefore, if you violate this provision, that's a violation of the Ethics Code and you'd be subject to the sanctions of the Code.

Well, I think it even should be more severe. There should be, I think, even stiffer --

Well, I think as a practical matter, if a Board member or staffer did that, I think they would probably have more serious consequences than just the enforcement action.

Well, I would hope. There's a lot of trust here.

That's correct.

Thank you. Thank you, Madam President. 63 11/14/06 - WHOLE - RES. 060772, ETC.

You're welcome. I would like to remind my colleagues that this is a confirmation of the recommended appointees. I think we've gotten off of the confirmation issue. I think we're now actually having a public meeting on the contents of the bill itself. Councilwoman, it's my understanding that Reverend Waller apparently has a 12 o'clock service and would like to be recognized now. So, Ms. Wilkerson, if you'd just remain there. Thank you. Reverend Waller.

Good morning. Please allow me to thank you for this opportunity to come before you this morning. I'm honored to be one of the five nominees announced by the Honorable John F. Street for consideration for the new City Board of Ethics. Please allow me to share with you an overview of my 64 11/14/06 - WHOLE - RES. 060772, ETC. qualifications and experience as it relates to the Board of Ethics. My name is Reverend Dr. Alyn Waller. I'm the Senior Pastor of the Enon Tabernacle Baptist Church in Germantown and the Mt. Airy sections of Philadelphia. I am a revivalist and a lecturer and a musician, and in the February of 1999 edition of the Upscale Magazine, I was described as a true visionary, an individual who has been called to operate far beyond the restraints of traditionalism. My partner in ministry and marriage is Ellyn Jo Waller. She serves as the leader of our women's ministry and is a devoted mother to our two daughters, Elynn Morgan and Eryka Lynn. I am not from Philadelphia. I'm born in Cleveland, Ohio, 1964, to the late Reverend Dr. Alfred M. Waller and Belva J. Waller. I was awarded a Bachelor degree in music, or a BGS, in 1985 from Ohio University in Athens, 65 11/14/06 - WHOLE - RES. 060772, ETC. Ohio. In June of 1987, I received my license to preach the gospel and was ordained in November of 1988 at the Shiloh Baptist Church in Cleveland, Ohio. Min, from Eastern Baptist Theological Seminary in Wynnewood, Pennsylvania. In September of 1990, the Lord led me to accept a call to the pastorate at the First Baptist Church of Donora in Pennsylvania, which is Southwest Pennsylvania. In July of 1994, I became the Pastor of the Enon Tabernacle Baptist Church. God's anointing on this pastorate has been evidenced by unprecedented numerical and spiritual 66 11/14/06 - WHOLE - RES. 060772, ETC. growth. As a result of Enon's growth, four worship services are held each weekend and Saturday evenings, along with three Bible studies during the week, which includes the Hour of Power lunch Bible study, which is held here in Center City, which I'm on my way to, and we have over 50 ministries that serve the community. Responding to the specific needs of the local community and hearing the needs of the community, we established the Enon Coulter Community Development Corporation, a non-profit community development corporation that provides educational and support services to children and families. The ECDC sponsors innovative programs, including a pre-school preparatory program for neighborhood children, after-school advanced computer program for teens and a Christian summer camp experience. My background has been varied and extensive as it relates to my 67 11/14/06 - WHOLE - RES. 060772, ETC. ministry. I have lectured at numerous institutions throughout the United States, including a number of seminaries, including Union Theological Seminary in New York City, Eastern Baptist Theological Seminary, Center for Urban Theological Studies in Philadelphia, Pennsylvania, Southern Baptist Theological Seminary and Lutheran Theological Seminary, the National Bible Conference presented by the California State Baptist Convention, and I continue to have an extensive music ministry as well. " November 2004, we began a radio outreach ministry on WURD 900 AM in Philadelphia on Sunday evenings. We expanded that to include "It's Family Time" every Wednesday from to o'clock with my lovely wife and best friend, Ellyn Jo, as co-host. 68 11/14/06 - WHOLE - RES. 060772, ETC. Again, in 2006, I released my first book "Enjoy Your Journey," which had an international release date of March 2006 and was released locally April 5, 2006. On July 29, 2006, the Lord answered the prayers of Enon Tabernacle Baptist Church and we held our Inaugural Worship Service in our new edifice at Enon East. We are now one church in two locations. Enon West is in Germantown and Enon East in Mt. Airy. The official dedication service was held on Saturday, September 16, 2006.

I have been involved with numerous service organizations and have been awarded countless honors for my leadership in the community. Please know that I am looking forward to serving and working as one of the participants of this new Board of Ethics in the City of Philadelphia, if confirmed. We are being asked to serve, for lack of better words, as guardian 69 11/14/06 - WHOLE - RES. 060772, ETC. angels for the people of Philadelphia. One of our goals is to restore the confidence of our citizens in local governance. The Greek philosopher Plato wrote that good government is wise, brave, temperate and just, which is what this Board will strive to accomplish. Thank you for your indulgence and the opportunity to serve. God bless each one of you.

Thank you, Reverend. Are there any questions or comments from any members of the Committee? The Chair recognizes Councilwoman Tasco.

I'd like to congratulate Reverend Waller on his appointment. I think it's a good choice. His church is about three blocks from my house and he does a wonderful service and is a man of honesty, high integrity, and I believe he will be fair and just. 70 11/14/06 - WHOLE - RES. 060772, ETC.

Thank you. The Chair recognizes Councilwoman Miller.

Thank you, Madam President. I, too, want to welcome Reverend Waller to the world of City Hall, and I also agree with the comments of Councilwoman Tasco and I believe, too, this was an excellent choice. Thank you.

Thank you. Thank you very much, Reverend. We appreciate your coming in. Thank you.

Thank you. MR. McPHERSON: Richard Glazer.

Good morning. Welcome.

Thank you. Thank you, President Verna. Good morning. My name is Richard Glazer. Thank you for giving me the opportunity to speak in 71 11/14/06 - WHOLE - RES. 060772, ETC. connection with my nomination by Mayor Street for a seat on the newly constituted Philadelphia --

Mr. Glazer, excuse me a moment, please. The Chair recognizes Councilman Clarke.

Thank you, Madam President. Madam President, I have around people across the hall waiting for me 13 for an 11 o'clock meeting. I'm clearly 14 late. I'd like to be able to leave my 15 vote for the amendments, all the 16 amendments to the resolutions, and a vote 17 aye on the confirmation of all of these 18 members. 19

Thank 20 you. 21

You're 22 welcome. 23

24 Please proceed, Mr. Glazer. 25

Thank you. 72 11/14/06 - WHOLE - RES. 060772, ETC. I'd like to share with you some information on my background and my motivation for wanting to serve on this important new Board. My legal career of 32 years was spent at one law firm, Cozen O'Connor. Joining as the fifth attorney in 1972 as a litigator, Department Chair of the largest department of 125 lawyers and with firm-wide management responsibility, I helped to build the firm into one of the 100 largest and most successful law firms in the United States. Retiring from Cozen O'Connor at year end 2003, in February 2004 I began service as "a dollar a year" Senior Advisor to Philadelphia Managing Director Phil Goldsmith, responsible for strategic oversight of special projects, continuing in that role for his successor, Pedro Ramos. Members of Council may be familiar with some of these projects. First, oversight of a working group for the reduction of police overtime for 73 11/14/06 - WHOLE - RES. 060772, ETC. court attendance; second, liaison with the Law Department in negotiating pedestrian at-grade crossings to access Schuylkill River Park at Race and Locust Streets; third, providing strategic direction to OSH in the development of a comprehensive facilities plan to improve and obtain additional shelters; and assisting Commissioner of Public Property Schlotterbeck in the sale of City assets. My thoughts on this experience in municipal government are perhaps best described in a fairwell e-mail that I have passed on to my City colleagues and has been provided to Council in advance of this testimony. Public service both locally and internationally has always been part of my core values. From two years' service in the Peace Corps in Malawi, Central Africa in my twenties, I have continued my commitment to social justice and good government with active membership on the Boards of Public Interest Law Center of 74 11/14/06 - WHOLE - RES. 060772, ETC. Philadelphia and the Committee of Seventy. Sensitive to the potential of a conflict of interest, I have tendered resignations to both these organizations. Internationally, I remain active with Malawi Children's Village as a founder, general counsel and Board member of this non-governmental organization that provides physical facilities and village-based assistance to families for the care of their children orphaned by the AIDS pandemic. Additionally, I'm serving as a founding Director of the Board and general counsel for Peace Corps Encore, a national organization created to utilize the cross-cultural skills of returned Peace Corps volunteers to serve again in socially responsible projects in developing countries. As a lifelong native son of Philadelphia who cares deeply about the vitality of the City, being part of this ground-breaking, independent, Charter-sanctioned Board provides another 75 11/14/06 - WHOLE - RES. 060772, ETC. opportunity for service. Working in the Managing Director's Office for the last two and a half years gives me, I believe, a unique and valuable perspective from within. Having recently met the four other nominees, I am convinced that the Mayor has chosen wisely. They are talented, committed and represent, in the best possible way, Philadelphia's diversity. The citizens of Philadelphia deserve honest and efficient government. They spoke loudly and clearly last May 16th when the Charter amendment creating the Ethics Board was approved by over an 80 percent margin. Moreover, it does not overstate the case to suggest that meaningful ethics reform, besides its intrinsic value, will help to enhance the economic competitiveness of Philadelphia. If confirmed, I commit to you my energy, equanimity and judgment to create an Ethics Board of which we all can be proud. 76 11/14/06 - WHOLE - RES. 060772, ETC. Thank you.

Thank you. Are there any questions or comments from members of the Committee? (No response.)

Seeing none, I thank you very much.

Thank you. MR. McPHERSON: The next witness is Richard Negrin.

Good morning. My name is Richard Negrin. I currently serve as Vice-President and Associate General Counsel to Aramark Corporation here in Philadelphia. First, let me thank you, and I want to acknowledge my wife Karen, who is in the back, who was a distinguished prosecutor here in Philadelphia for ten years in the Child Abuse and Rape Unit of the Philadelphia District Attorney's Office. Thank you for your time. I 77 11/14/06 - WHOLE - RES. 060772, ETC. think that it is an honor for me to be included with such a distinguished group. We come from different backgrounds, but the one thing that I think we all have in common is, we have a love for the City and the people and our deeply held belief that we can do our part to help move things forward. As Chief Counsel to Aramark Healthcare, I oversee approximately 60,000 employees and help enforce what we call a Business Conduct Policy, which is short for the BCP at Aramark. That Business Conduct Policy is not unlike the Philadelphia Code of Ethics. There is a gift policy. There is a conflict of laws policy. There's rules and regulations regarding inappropriate conduct and what people should and should not do. But, most importantly, what I think is significant for this Code of Ethics in the City is, the BCP at Aramark actually creates a culture that is more than just a set of rules but it really is a guiding 78 11/14/06 - WHOLE - RES. 060772, ETC. principle that everyone takes very seriously. I hope to bring that experience from the corporate environment here to work for the City. Prior to working for Aramark, I was an attorney here with a large law firm called Morgan Lewis & Bockius. At Morgan Lewis, I worked as a litigator in what is commonly referred to as the white collar group, where I helped corporations navigate heavily regulated industries, helped them in their compliance with laws and meeting the regulatory needs and performing internal investigations with regard to employee misconduct. I think that experience and the fact that I bring that to bear is going to be a huge asset based on what we've heard today and what the mission of this Ethics Board is. Prior to Morgan Lewis, I started my career, cut my teeth in the rough and tumble courtrooms here in Philadelphia as a young District Attorney, where I rose to the level of 79 11/14/06 - WHOLE - RES. 060772, ETC. the Major Trials Unit, prosecuting far too many felony crimes here in Philadelphia but gained a lot of trial experience but, most importantly, learned a very valuable lesson that I think is important for every young lawyer to learn, and, that is, the concept of fairness, the concept of discretion and the concept that the search for justice is of the utmost importance in any endeavor. And I think this endeavor is no different. It's easy when we see this Board being submitted for confirmation to think that this is the beginning of a process. I want to thank City Council, I want to thank the Mayor and I want to thank the staff and the former Board, because I think a lot of work has already been done, and as evidenced by the binder that we received, which is about six inches thick in our orientation packets. But there's been a lot of thought and a lot of time invested in helping us get to 80 11/14/06 - WHOLE - RES. 060772, ETC. where we are today, and I think that there's a great foundation in place here to help move things forward, and I think everyone is to be commended for that. Throughout my career, when I left the District Attorney's Office to go into private practice, it was critically important for me to keep doing things in the public sector, because I've always had a heart for the City and wanted to give back to it. In recent years, I've served as the Chair of the Governor's Homeland Security Committee for the Pennsylvania Commission on Crime and Delinquency.

I've had the honor of serving the City on a task force to examine police discipline, and most recently, I helped work with Pedro Ramos and the City as part of the City's Emergency Preparedness Committee and submitted a report in that regard. I see this Board as an extension of that work, an opportunity on the part of all of us to give back and 81 11/14/06 - WHOLE - RES. 060772, ETC. help make the City a better place. I look forward to working with all of you, and thank you very much.

Thank you. Are there any questions or comments from members of the Committee? (No response.)

Thank you again.

Thanks. MR. McPHERSON: Pauline Abernathy.

Good morning.

Good morning. Thank you, Council President Verna, members of City Council and staff, for the opportunity to speak with you this morning and for your leadership in creating an independent City Board of Ethics and enacting other important ethics reforms. My name is Pauline Abernathy, and I'm honored to be 82 11/14/06 - WHOLE - RES. 060772, ETC. nominated to serve on this Board. In May, Philadelphia residents voted overwhelmingly to amend the City Charter to establish an independent Ethics Board with investigative and enforcement powers, reflecting widespread support for transparent, accountable and effective government. This is not only what residents want, it is also essential for attracting businesses to invest and create jobs in the City. As many have noted, and Rich just did as well, my fellow nominees and I are a diverse group that shares a common love for the City. Whether we were born here or we moved here, we have stayed because of the qualities that make Philadelphia unique. When I moved to Philadelphia in 2000 to work for the Pew Charitable Trusts, I immediately felt at home. At the time, I didn't know anyone in Philadelphia. Today as I walk my dog in Center City or as I walk to work, I 83 11/14/06 - WHOLE - RES. 060772, ETC. invariably see and greet neighbors and friends. Through Leadership Philadelphia, I quickly met community leaders. I joined Tabernacle United Church in West Philadelphia, where I currently serve on the church council. For the last three and a half years, through Philadelphia Futures, I have mentored an extraordinary young woman, who is now a senior at Lincoln High School and applying to college. While I have not been involved in City government, I have spent my entire career working in government at the federal level, both in the legislative and executive branches, as well as in the non-profit sector. My experience has underscored for me both the need for and value of clear ethics rules that are consistently applied and enforced. As a legislative assistant in the Senate, I encountered lobbyists who respected the legislative process and those who did not, who thought they were 84 11/14/06 - WHOLE - RES. 060772, ETC. entitled to special treatment. S. Deputy Secretary of Education, I saw how the behavior of a small number of employees can demoralize and tarnish the reputation of the vast majority of hard-working and dedicated civil servants. In the course of my work, on multiple occasions, I sought advice from the relevant ethics counsel to ensure I acted within both the letter and the spirit of federal ethics rules and laws. These and other experiences underscored for me the need for public officials to reinforce the importance of ethics rules, for ongoing employee education and training, and for clear rules that are consistently and fairly applied and enforced. City policies, actions and words need to reinforce the expectation and the reality that the City takes ethics seriously and that those who break the rules will be sanctioned. Across the country, the ethical bar for public 85 11/14/06 - WHOLE - RES. 060772, ETC. officials is indeed rising. That something was acceptable or common in the past is no longer a defense for actions that violate current ethics rules and laws. In setting our priorities and agenda consistent with the City Charter, if confirmed, I expect and am confident that my colleagues and I will immediately seek input from a broad range of people and organizations within and outside of City government. As Rich just said, the new Board of Ethics will benefit greatly from the work of the current Board chaired by Charisse Lillie. We owe its members and staff gratitude for successfully launching the first City-wide ethics education and training program and creating a website that explains City ethics rules and laws, answers frequent questions and provides a place to submit concerns. If confirmed, I will work to ensure the new Ethics Board does its part 86 11/14/06 - WHOLE - RES.

060772, ETC. to strengthen public trust and ensure that City employees serve the public with integrity. Thank you.

Thank you very much. Are there any questions or comments from members of the Committee of this witness? (No response.)

Thank you again. MR. McPHERSON: The next witness is Stella Tsai.

Good morning. It's always difficult to bat clean-up, but here I am. I wanted to acknowledge my husband, Paul McCarthy, who is Associate General Counsel at the Philadelphia School District, and he also is probably known best to you as the guy at the Law Department who worked on the (unintelligible). So anyway... 87 11/14/06 - WHOLE - RES. 060772, ETC. I am a shareholder at the Philadelphia office of Christie, Pabarue, Mortensen and Young and a nominee for the Philadelphia Board of Ethics. Thank you for giving us an opportunity to testify before the City Council and your consideration of our nominations for the Philadelphia Board of Ethics. I am honored to be nominated for the Board along with my colleagues Richard Glazer, Pauline Abernathy, Richard Negrin and Reverend Alyn Waller, individuals for whom I have the highest regard. We each have diverse backgrounds, ideas and opinions, but we all share the common goal of wanting to ensure that the public servants uphold the public trust by conducting the business of government ethically and responsibly. We are also keenly aware that the people of Philadelphia are counting on us to act as an independent voice in government to protect against the influence of special interests and 88 11/14/06 - WHOLE - RES. 060772, ETC. self-interest. Fortunately, we are not working from a blank slate, but rather the extensive body of research and expertise provided by Shane Creamer, the current Executive Director, and Law Department colleague, Evan Meyer of the Law Department. We also have the rather excellent and thoughtful work of the former Ethics Board, which is chaired by Charisse Lillie. I was born and raised in Harrisburg, Pennsylvania and first enjoyed an opportunity at public service as a page for the State House of Representative. I then became a legislative fellow of the Bipartisan Management Committee of the House of Representatives, and there I met members of the Philadelphia Caucus. And when I interviewed members of the Philadelphia Delegation, members of the Legislative Black Caucus, I there learned perspectives of the world and politics 89 11/14/06 - WHOLE - RES. 060772, ETC. that I did not have myself, and these individuals gave me the opportunity to learn about the world other than my narrow perspective from living and growing up in Harrisburg. Soon thereafter, I moved to Philadelphia to start law school at the University of Pennsylvania, and I've worked and lived here ever since. Not only is there incredible architecture and social institutions and incredible sports obsessions here, but I found, more importantly, that the people of Philadelphia have a great deal of empathy for each other and strive to live justly and harmoniously. After working in private practice for 12 years, in 2000 I joined the City Law Department where I was Chair of Administrative Law, where I supervised 45, at the end, 45 Law Department attorneys who handled thousands of child welfare cases and mental health proceedings which affects the most 90 11/14/06 - WHOLE - RES. 060772, ETC. frumbled populations of our City. During my tenure, I worked with the Department of Human Services, the Law Department attorneys, the judges and staff at Family Court and the child/parent advocates to institute court reforms which would provide families of basic procedural norms that are otherwise taken for granted in the court system. I returned to private practice in 2003, but I was not done with public service, because then I became the counsel of the City Service Commission where I helped conduct civil service proceedings and I helped to draft the opinions. These cases, which ranged from disciplinary proceedings to disputed oral examination scores, provided me with a unique opportunity to examine the civil service system and understand both its challenges and its merits. I believe that the people of Philadelphia deserve effective and efficient government and an excellent 91 11/14/06 - WHOLE - RES. 060772, ETC.

return on their tax dollars. The public has entrusted the government and its elected officials to provide a significant portion of its resources -- to provide these resources and make appropriate investments in -- provide these services and make significant and appropriate investments in the community. If confirmed, I will work with my fellow Board members to ensure that there are clear, basic rules and procedures that will protect the public's interest. We will help to educate the government and the public on the meaning and value of ethics government and use good, sound judgment in the application and enforcement of these rules and procedures. Thank you very much for your time. I really appreciate the opportunity to serve.

Thank you very much. Are there any questions or 92 11/14/06 - WHOLE - RES. 060772, ETC. comments from members of the Committee of this witness? (No response.)

Again, I thank you. Does anyone else wish to testify on the resolutions?

I just have one question.

The Chair recognizes Councilwoman Tasco.

Ms. Wilkerson, I just want to ask a question. Will the staff of the Ethics Board be civil service or appointments?

I believe they are exempt employees, not civil service.

The Chair recognizes Councilman Goode.

I just have one question for all the proposed members of the Board of Ethics. I did not want to ask it after individual testimonies, but wanted to ask it after everyone was 93 11/14/06 - WHOLE - RES. 060772, ETC. done their individual testimonies. The question is, we've talked about the work of the Ethics Board that was done through Executive Order. Somewhat lost in the conversation is the fact that there were a number of pieces of legislation offered by the Mayor and City Council over the last few years, many of which were not voted on, considered or enacted, and my question to the Ethics Board is, to what extent do you think it appropriate for Council to continue to legislate on ethics issues from this point on? That's for each of the members of the Board.

I think I can speak for all of us in saying that the work of ethics work is never done and there is always room for improvement, and as the world changes, laws need to change as well. So I would expect there would continue to be work in this area, as in every other area.

And to the extent 94 11/14/06 - WHOLE - RES. 060772, ETC. that we would observe some areas that might need amendment because of some practical realities in facing and dealing with these laws, that we would turn perhaps to City Council to help us make these changes. So I see a role for City Council -- I think we all do -- in the continuing work of this particular Board.

Councilman, part of the ordinances that were passed do require and charge the new Board with providing recommendations for additional ethics legislation, so that that should and would be part of our duties and responsibilities.

I guess my question is a little bit more direct. Of the several pieces of legislation that were offered, there was not a lot of consensus on several pieces of them. Therefore, we were pleased to be able to pass an independent Board of Ethics, believing that to be the most important piece of legislation that we could pass. 95 11/14/06 - WHOLE - RES. 060772, ETC. To what extent is it appropriate, after the new independent Board of Ethics takes power, for us to individually or independently legislate on the issue of ethics, particularly around those issues that may or may not become policies of the Board?

If I can answer that. To the extent that -- I think it was Pauline --

I think you ought to identify yourself if you're responding, please.

Richard Negrin. I think it was Pauline who stated that one of the things we want to do as a Board is talk to people as broadly as possible, so that when we sit down to talk about our processes and logistics of doing what we do in helping to work out some of the things that we were talking about earlier today in terms of there's gaps that are going to have to be filled in terms of how we go about 96 11/14/06 - WHOLE - RES. 060772, ETC. doing this important work, I certainly think it's appropriate for anyone in this room and anyone who has a vested interest to have input in that process and to talk to us about how we might do that, to the extent that there's anything that did not make it, to answer your question directly.

I'll try it one more time. How do we distinguish between policy by the independent Board of Ethics or legislation that may be passed by this Council and signed into law by the Mayor in the future? Does one override the other?

Well, I'll take a stab at this. I would think that if there is a piece of legislation that were passed by this body and that was then signed off by the Mayor, or however it would become law, certainly with respect to procedures and policies, that would have certainly some binding effect on the Board, I believe. So if you were to 97 11/14/06 - WHOLE - RES. 060772, ETC. adopt policies and procedures inconsistent with those that we used as operating procedures internally, I would think that we'd have to abide by whatever rules and procedures are enacted as legislation. Am I missing it?

Let me try it. The statute provides to the Ethics Board the exclusive jurisdiction for interpreting the particular Ethics Codes, which are included in the Home Rule Charter, the City Code and the State Code. To the extent that you are making reference to new legislation, that would clearly be the prerogative of Council, but, again, I think that we are charged with if we see something that seems to work, to be a remedy, we would report to you and suggest that that is possible future legislation.

Okay. Thank you. Thank you, Madam President. 98 11/14/06 - WHOLE - RES. 060772, ETC.

Thank you. Any other questions or comments from members of the Committee? Yes. Ms. Wilkerson.

Joyce Wilkerson, Chief of Staff. I've been corrected by the City Solicitor Evan Meyer. I said that I thought that employees of the Commission would probably not be civil service. The Executive Director in fact would be exempt. The lawyers for the Commission would be exempt. Those are the only exempt positions. The staff to the Commission, the other staff to the Commission, would probably need to be civil service. But we can get an opinion from the Law Department before they go out of business in this area. We'll get clarity somehow.

Okay. Thank you very much. Thank you. Do we have anyone else that 99 11/14/06 - WHOLE - RES. 060772, ETC. would like to testify?

Shane Creamer, Executive Director of the current Board of Ethics. Madam President, I have a statement from the current Board of Ethics, which has been submitted this morning, that I would like to read to you, if I could.

Please.

Thank you. To the Committee of the Whole, the members of the current Philadelphia Board of Ethics, reconstituted by Executive Order 001-04 in August 2004, regret that they are unable to appear before City Council to testify on Resolutions 060773 (sic) through 060776 regarding confirmation of the five nominees to the new independent Board of Ethics. Nevertheless, the current Ethics Board respectfully requests that the Committee of the Whole accept the Board's 100 11/14/06 - WHOLE - RES. 060772, ETC. unanimous support of the confirmation process for the five nominees to the new independent Board of Ethics. In early 2004, the Ethics Committee of the Philadelphia 21st Century Review Forum recommended that the Philadelphia Home Rule Charter be amended to create a new Board of Ethics with all necessary adjudicatory and enforcement powers. Both the Chair and Vice-Chair of the current Ethics Board were members of that Committee. All members of the current Ethics Board have advocated that an independent Ethics Board with enforcement powers be created to replace the current Board since it was reconstituted in August 2004. The current Board has always supported the legislative process necessary to produce an independent Ethics Board. Our support for an independent Ethics Board was first expressed in a statement issued on September 22, 2004 and was later expressed in the form of testimony 101 11/14/06 - WHOLE - RES. 060772, ETC. presented to the Committee on Law and Government almost exactly a year ago, on November 16, 2005. The current Board understood that the legislative process would take time. In the interim, we have worked to build a foundation for a robust ethics program, which we knew that one day the new independent Ethics Board would continue to build upon. We have created a City-wide Ethics Training Program, which provided ethics training to 16,224 City officials and employees in the first ten months of operation. This ongoing initiative will provide ethics training to most of the City's workforce by the end of this calendar year. No other city in the country has trained as much of its workforce over a similar time period as we have already trained in Philadelphia. We have created an Ethics Board website that is a powerful resource for anyone who seeks to learn more about the 102 11/14/06 - WHOLE - RES. 060772, ETC. ethics rules, recent ethics legislation or about the current Board's activities and operation. The current Board facilitated the distribution of The Philadelphia Code of Ethics to every City official and employee in July of this year, as required by the same ordinance 9 that contains the powers and duties for the new Ethics Board. We have also rendered advisory opinions to those seeking guidance on the ethics rules and conducted a review of conduct that raised an appearance of impropriety. The current Board supports this penultimate step in the legislative process necessary to establish the new Ethics Board, the confirmation of the Mayor's five nominees to the new Board by a majority of the members of City Council. We applaud City Council for scheduling this confirmation hearing promptly. The five nominees to the new Ethics Board are highly qualified candidates with diverse backgrounds and 103 11/14/06 - WHOLE - RES. 060772, ETC. experiences. We urge Council to vote on the nominees quickly in order to move Philadelphia further along the road to a new independent Board of Ethics as swiftly as possible. Once the new Ethics Board is installed, we will work with it to ensure a smooth transition of the City's ethics program from one Board to the next. To that end, we will submit a report to the new Board and to the Administration that will describe our work over the past two years and will include our recommendations to the new Board and to the Administration. Respectfully submitted, Charisse R. Lillie, Esquire, Chair; Dan P. McElhatton, Esquire, Vice-Chair; and Romulo L. Diaz, Jr., Esquire, Member. Thank you.

Thank you very much. Any questions or comments from members of the Committee? 104 11/14/06 - WHOLE - RES. 060772, ETC. (No response.)

Seeing none, thank you again.

Thank you.

I would like to place on the record a memo I received from the Law Department that encloses proposed amendments to each of the five resolutions confirming the Board of Ethics appointments. I circulated a copy of that memo and the amendments to all members yesterday. As explained in the memo, both the title and the body of each of the resolutions need to be amended to correct the date each term will end. That date depends on the date the resolutions are adopted. So the amendments would insert November 16th of the appropriate year in each resolution, of course, on the assumption that Council will approve these resolutions at this Thursday's session of Council. If for any reason Council does not approve these 105 11/14/06 - WHOLE - RES. 060772, ETC. resolutions on Thursday, they can be amended again to reflect any later approval date. Are there any questions on the amendments? (No response.)

Seeing none, this will conclude the public hearing. We will now go into our public meeting of the Committee of the Whole, and the Chair recognizes Councilwoman Blackwell for a motion to amend Resolution No. 060772.

Thank you, Madam President. I move that the amendment to Resolution No. 060772 as circulated and described by you be adopted. (Duly seconded.)

It has been moved and seconded that the amendment stand approved. All in favor will please say aye. 106 11/14/06 - WHOLE - RES. 060772, ETC. (Aye.)

Those opposed? (No response.)

The ayes have it and the amendment is adopted. Again, the Chair recognizes Councilwoman Blackwell.

Thank you, Madam President. I move that the amendment to Resolution 060773 be adopted.

Be what? I'm sorry. I didn't hear you.

I'm sorry. Madam President, I move that Resolution No. 060772 as amended be reported out of Committee with a favorable recommendation. (Duly seconded.)

It has been moved and properly seconded that Resolution No. 060772 be reported out of 107 11/14/06 - WHOLE - RES. 060772, ETC. Committee with a favorable recommendation as amended. All in favor will indicate by saying aye. (Aye.)

Those opposed? (No response.)

The ayes have it and the motion carries. Again, the Chair recognizes Councilwoman Blackwell regarding Resolution No. 060773.

Thank you, Madam President. I move that the amendment as circulated to Resolution No. 18 060773 be adopted. (Duly seconded.)

It has been moved and seconded that the amendment as submitted be adopted. All in favor will signify by saying aye. (Aye.) 108 11/14/06 - WHOLE - RES. 060772, ETC.

Those opposed? (No response.)

The ayes have it and the motion carries. Again, the Chair recognizes Councilwoman Blackwell.

Thank you, Madam President. I move that Resolution No. 060773 as amended be reported out of Committee with a favorable recommendation. (Duly seconded.)

It has been moved and seconded that Resolution No. 060773 be reported out of Committee with a favorable recommendation as amended. All in favor will say aye. (Aye.)

Those opposed? (No response.)

The 109 11/14/06 - WHOLE - RES. 060772, ETC. ayes have it and the motion carries. The Chair recognizes Councilwoman Blackwell regarding Resolution No. 060774.

Thank you, Madam President. I move that the amendment to Resolution No. 060774 be adopted. (Duly seconded.)

It has been moved and seconded that the amendments as circulated be adopted. All in favor will say aye. (Aye.)

Those opposed? (No response.)

The ayes have it and the motion carries. Again, the Chair recognizes Councilwoman Blackwell.

Thank you, Madam President. I move that Resolution No. 060774 as amended be 110 11/14/06 - WHOLE - RES. 060772, ETC. reported out of Committee with a favorable recommendation. (Duly seconded.)

It has been moved and seconded that Resolution No. 060774 be reported out of Committee with a favorable recommendation as amended. All in favor will signify by saying aye. (Aye.)

Those opposed? (No response.)

The ayes have it and the motion carries. Again, the Chair recognizes Councilwoman Blackwell regarding Resolution No. 060775.

Thank you, Madam President. I move that the amendment to Resolution No. 060775 be adopted. (Duly seconded.) 111 11/14/06 - WHOLE - RES. 060772, ETC.

It has been moved and seconded that the amendment as proposed be adopted. All in favor will say aye. (Aye.)

Those opposed? (No response.)

The ayes have it and the amendment is adopted. Councilwoman Blackwell.

Thank you, Madam President. I move that Resolution No. 060775 as amended be reported out of Committee with a favorable recommendation. (Duly seconded.)

It has been moved and seconded that Resolution No. 060775 be reported out of Committee with a favorable recommendation as amended. All in favor will please say 112 11/14/06 - WHOLE - RES. 060772, ETC. aye. (Aye.)

Those opposed? (No response.)

The ayes have it and the resolution as amended will be reported out of Committee. Again, the Chair recognizes Councilwoman Blackwell regarding Resolution No. 060776.

Thank you, Madam President. I move that the amendment to Resolution No. 060776 be adopted. (Duly seconded.)

It has been moved and seconded that the amendment as proposed to Resolution No. 22 060776 be adopted. All in favor will say aye. (Aye.)

Those 113 11/14/06 - WHOLE - RES. 060772, ETC. opposed? (No response.)

The ayes have it and the amendment is adopted. Councilwoman Blackwell.

Thank you, Madam President. I move that Resolution No. 060776 as amended be reported out of Committee with a favorable recommendation. (Duly seconded.)

It has been moved and seconded that Resolution No. 060776 be reported out of Committee with a favorable recommendation as amended. All in favor will signify by saying aye. (Aye.)

Those opposed? (No response.)

The 114 11/14/06 - WHOLE - RES. 060772, ETC. ayes have it. And this will conclude our public meeting. I thank you all for your patience. You've been extremely patient. Thank you. (Committee of the Whole adjourned at 12:10 p.m.) - - - 115 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 November 14, 2006, 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.)