Good afternoon, Councilwoman Blackwell and members of the City Council Finance Committee. My name is Richard Tustin and I serve as Director of the City's Capital Program Office. I appear before you today to offer testimony in support of Bills 060961 and 060966, which will shift the total of 10.5 million -- 3.5 each year in FY05, '06 and '07 -- from Recreation's Improvements to Existing Facilities line to the Police Department, Fire Departments' Interior and Exterior Renovations Capital Budget lines. As you know, the Police and Fire Departments operate hours a day, 24 seven days a week, and are critical to the life and safety of the citizens of 161 1/31/07 - FINANCE - BILLS 060052, ETC. the City. Due to their long hours and the intense nature of their work, Police and Fire buildings, infrastructures and systems require replacement, renovations and upgrades more frequently than the average municipal building. Due to the constrained capital budgets of the past and the competing needs of other City departments, which also provide valuable services to citizens, most departments receive only enough capital funding each year to cover the life safety and basic infrastructure replacements needed to keep their facilities open or operating. Since no 17 new capital funds have been available or have been available since FY05, the City has had to further prioritize even these projects for implementation with the dwindling City carry-forward funds, leaving many projects on hold. The additional funds made available through these two bills will not only allow our office to move forward 162 1/31/07 - FINANCE - BILLS 060052, ETC. with the previously planned projects but also will allow us to start implementing those types of projects which may not be considered life safety in nature but will certainly have a meaningful impact on the quality of life for police officers and firefighters. For example, heating and ventilation and air conditioning upgrades, operation room renovations, electrical and lighting upgrades, kitchen and bathroom upgrades, site improvements will all help to create a better working environment. In closing, I would like to address the questions some may have regarding what impact the transfer of these funds will have on Recreation Department's facilities. Ongoing improvements to the City's recreation centers are vital to communities and neighborhoods. District Councilpeople carefully use their improvements to existing facility funds, ITEF, to provide recreation facilities for their 163 1/31/07 - FINANCE - BILLS 060052, ETC. constituents, and I'm confident they will continue to do so with the $20 million of funding provided to Councilmembers with the passage of Bill 070018, the FY05 loan authorization amendment, and Bill No. 7 070021, which will fund the FY06 and FY07 capital budgets. I believe that the passage of Bill 060961 and 060966 will have a limited and manageable impact on the Councilmembers' abilities to continue their good work. Thank you for allowing me the opportunity to speak on this important issue, and I'll be happy to answer any questions you may have at this time.
Thank you very much. Are there questions for Mr. Tustin? (No response.)
Are you prepared to continue to testify on the other bills?
Yes, 164 1/31/07 - FINANCE - BILLS 060052, ETC. Councilwoman. Good afternoon, Councilwoman Blackwell and members of the Finance Committee. I'm Vince Jannetti, Acting Director of Finance. I'm here today to testify on behalf of Bill No. 070018, which was introduced on January 25th, and to testify in support of this bill. Bill No. 070018 will amend Bill 11 040328-A, the FY05 loan authorization ordinance, in accordance with the amendments to the FY07 capital budget and program, proposed in Bill Nos. 060961 and 060966 introduced by Councilman Clarke on December 14, 2006. These bills propose transferring a total of $10.5 million - or $3.5 million each year in Fiscal '05, Fiscal '06 and '07 - from the Recreation Improvements to Existing Facilities to Police and Fire for interior and exterior renovations. Assuming passage of these two bills, the FY05 loan authorization, which was approved on September 30, 2004, will need to be amended to transfer 165 1/31/07 - FINANCE - BILLS 060052, ETC. authorization from the purpose category of "Recreation, Parks and Museums" to the purpose category of "Municipal Buildings." I would also like to request the suspension of rules to allow for first reading at the next session of Council. On Bill No. 070021, I'm also here to testify on behalf of the bill and to testify in support. The purpose of this bill is to obtain approval from City Council to place a loan authorization on the Primary Ballot on Tuesday, May 15, 2007. The loan question requests an increase in indebtedness from the electorate in an amount not to exceed $129,695,000 to fund the City's Fiscal Year 2006 and 2007 Capital Budgets. State law requires the City to place a ballot before the electorate during an election to increase its borrowing authority. The loan authorization, if 166 1/31/07 - FINANCE - BILLS 060052, ETC. approved, would finance capital projects classified for the following purposes and in the following aggregate amounts: for Transit, $9,797,000; for Streets and Sanitation, $33,774,000; for Municipal Buildings, $51,863,000; for Parks, Recreations and Museums, $27,376,000; and for Economic and Community Development, $6,885,000. It is essential that this loan authorization be passed in order to continue the funding of critical capital projects. Without the passage of this bill, at the estimated level of capital obligations for the remainder of the current fiscal year, there will be extremely little authorized carry-forward funding available to meet current capital needs or to fund unforeseen emergencies. Approximately 185 projects have been delayed as a result of loan authorizations to fund the '06 and '07 capital budgets. In order to provide appropriate 167 1/31/07 - FINANCE - BILLS 060052, ETC. time to advertise and print the ballot question to ensure it is placed on the May 15, 2007 Primary Election Day ballot, the bill should be enacted no later than March 15, 2007. The City Commissioners need to have a certified copy of the Loan Authorization ordinance and ballot question by April 1st, 2007. Finally, attached as part of this testimony is the proposed ballot question requesting loan authorization from the electorate of the City of Philadelphia. "Should the City of Philadelphia borrow $129,695,000 to be spent for and toward capital purposes as follows: Transit; Streets and Sanitation; Municipal Buildings; Parks, Recreation and Museums; and Economic and Community Development?" Also, I would like to request a suspension of the rules to allow for a first reading at the next session of Council. Thank you, Madam Chair. If 168 1/31/07 - FINANCE - BILLS 060052, ETC. there are any questions, I'd be happy to answer them.
Thank you very much. Are there any questions from the Committee? (No response.)
Thank you very much. If there is no other discussion on the hearing part of our hearing, our meeting, we will now leave this part and enter into our stated -- Councilman Clarke.
Thanks, Madam Chair. Madam Chair, I just wanted to reference Bills 61, 21 and 66. There are amendments that have been circulated. These amendments reflect a recent change in the allocation on all portions of the '06 and '07 loan authorization and 169 1/31/07 - FINANCE - BILLS 060052, ETC. capital budget. The previously introduced legislation called for an $850,000 per Council district and then the remaining dollars were for municipal facilities. These amendments will change that number from 850,000 to 900,000 per Council district. The reductions will come from various categories in municipal facilities, but it is a reduction of an increase. So the previously introduced bills all call for increases to the municipal facilities, so it's not -- at the end of the day, it's still an increase over the prior fiscal years. So I just wanted to make reference to those amendments and the purpose for those amendments and ask that a member of the Committee introduce those amendments.
Thank you very much, Councilman. Any questions? Councilwoman Tasco.
So the 170 1/31/07 - FINANCE - BILLS 060052, ETC. amendment is to --
Councilman Clarke, there's a question coming forth from Councilwoman Tasco. I think while you were talking she was talking to our colleague, Councilman O'Neill, so she probably didn't hear you. Maybe you could repeat what we have.
966 refers to what year? I don't have the bill in front of me.
This is '06-'07. Actually, '06 was actually a carry-forward. So '06 capital budget was a carry-forward to '07. So these 171 1/31/07 - FINANCE - BILLS 060052, ETC. amendments reflect both of those particular years.
Now, one of our discussion you had on the table was '05.
One of the issues that I have had about '05 is that that bill was approved by the voters for the $1.2 million for recreation and we have not been able to spend that money. We are only able to spend $500,000.
Will there be any action taken to renegotiate that figure with the Administration?
I think that some discussions have already been had with respect to the '05 capital budget.
So my vote today will be conditioned on what happens with 2005.
Thank you very much. Further questions or concerns? (No response.)
All right. Then we will continue on our discussion. As we mentioned earlier, the biosolid bills were being held, so that we don't have to review that again. So we won't hear that in stated meeting. We will now consider Bill No. 060052 and note that it will be held, as the sponsor has requested and agreed to Wachovia people, until February 20th at 10:00 a.m. We will now entertain a motion 173 1/31/07 - FINANCE - BILLS 060052, ETC. from Councilwoman Tasco with regard to -- we are now in the stated meeting part of our gathering where we will make our decisions. Our hearing is over. We're in the stated meeting. Thank you very much. Councilwoman Tasco, we will now call on you for a motion with regard to Bill No. 060832. The next two are yours.
Okay. I move that Bill 060832 be reported out of Committee with a favorable recommendation and that the rules of Council be suspended so as to have this reading on the next session of Council. (Duly seconded.)
It has been moved and seconded that Bill No. 20 060832 be reported out of Committee with a favorable recommendation and, furthermore, that the rules be suspended so as to permit first reading at our next session of Council. All in favor will say aye. 174 1/31/07 - FINANCE - BILLS 060052, ETC. (Aye.)
The Chair calls on Councilwoman Tasco for a motion with regard to your second bill, 060834.
Madam Chair, I move that Bill 060834 be reported out of Committee with a favorable recommendation and that the rules of Council be suspended so as to have this read at the next session of Council. (Duly seconded.)
The ayes have it. Therefore, Bill No. 060834 175 1/31/07 - FINANCE - BILLS 060052, ETC. is reported out of Committee with a favorable recommendation and also a recommendation that the rules of Council be suspended so as to permit consideration at our next session of Council. The Chair recognizes Councilman Goode with regard to Bill No. 060939.
Thank you, Madam Chair. I'm proposing an amendment to Bill No. 060939 that would change the notification from 120 days to 90 days in order to conform with federal regulations and to avoid a preemption battle. So I'm simply striking the number "120" and replacing it with the number "90." And I move for approving the amendment. (Duly seconded.)
It has been moved and seconded that the amendment to Bill No. 060939 be adopted. All in favor will say aye. (Aye.)
176 1/31/07 - FINANCE - BILLS 060052, ETC. Opposed? (No response.)
Therefore, the ayes have it and, therefore, the amendment to Bill No. 7 060939 has been adopted. The Chair now recognizes Councilman Goode for a motion on the amended bill.
Thank you, Madam Chair. I move that Bill No. 060939 as amended be reported out of Committee with a favorable recommendation and that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
The 177 1/31/07 - FINANCE - BILLS 060052, ETC. ayes have it and, therefore, Bill No. 3 060939 as amended will be reported out of Committee with a favorable recommendation and with a suspension of the rules so as to permit first reading at our next session. As has been stated, the Councilman has recommended that 060052 be postponed until February 20th where it will be considered at 10:00 a.m. The Chair recognizes Councilwoman Blondell Reynolds Brown for a motion with regard to Bill No. 070018.
I move that Bill No. 070018 be reported out of Committee with a favorable recommendation and further move that the rules of City Council be suspended so as to permit first reading at our next scheduled session. (Duly seconded.)
It has been moved and seconded that Bill No. 25 070018 be reported out of Committee with 178 1/31/07 - FINANCE - BILLS 060052, ETC. a favorable recommendation and, furthermore, that the rules of Council be suspended so as to permit at our next session of Council its reading. All in favor will say aye. (Aye.)
The ayes have it and so the bill passes. Bill No. 070020 again we note is being held at the request of the sponsor. They tell me it is a redundant bill. It is considered with other bills. We now call on Councilman Greenlee with regard to Bill No. 070021, an amendment that has been circulated.
Madam Chair, I move the amendment of Bill No. 22 070021. (Duly seconded.)
It has been moved and seconded that the 179 1/31/07 - FINANCE - BILLS 060052, ETC. amendment to Bill No. 070021 be adopted. All in favor will say aye. (Aye.)
The ayes have it and so the amendment to Bill 10 No. 070021 is adopted. The Chair now calls on Councilman Greenlee for a motion on the approval of the amended bill.
Madam Chair, I move that Bill 070021 as amended be approved by this Committee, with a suspension of rules to provide for first reading at the next session of Council. (Duly seconded.)
Opposed? (No response.) 180 1/31/07 - FINANCE - BILLS 060052, ETC.
The ayes have it and so, therefore, Bill No. 4 070021 as amended is reported out of Committee with a favorable recommendation, also a recommendation that it be heard at our next session of Council. The Chair now recognizes Councilman DiCicco for a motion to amend Bill No. 060961. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that the amendments to Bill No. 060961 be approved. (Duly seconded.)
It has been moved and seconded that the amendment to Bill No. 060961 be approved. All in favor will say aye. (Aye.)
The ayes have it and so the amendment to Bill 181 1/31/07 - FINANCE - BILLS 060052, ETC. 060961 is adopted. The Chair now recognizes Councilman DiCicco with regard to a motion on the amended bill. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that Bill No. 060961 as amended be reported out of this Committee with a favorable recommendation and that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
It has been moved and seconded that Bill No. 16 060961 as amended be reported out of Committee with a favorable recommendation and, furthermore, that the rules of Council be suspended so as to permit first reading at our next session. All in favor will say aye. (Aye.)
Opposed? (No response.) 182 1/31/07 - FINANCE - BILLS 060052, ETC.
The ayes have it and so the bill passes. The Chair now recognizes Councilman Savage for a motion to adopt the amendment to Bill No. 060966.
I move the amendment for Bill No. 060966 be approved. (Duly seconded.)
It has been moved and seconded that the amendment to Bill No. 060966 be adopted. All in favor will say aye. (Aye.)
The ayes have it and so the amendment is adopted. The Chair now recognizes Councilman Savage with regard to a motion on the amended bill.
I move that 183 1/31/07 - FINANCE - BILLS 060052, ETC. 060966 as amended be moved and approved and further request for a suspension of the rules to be moved. (Duly seconded.)
It has been moved and seconded that Bill No. 8 060966 as amende be reported out of Committee with a favorable recommendation and, furthermore, that the rules be suspended so as to permit first reading at our next session of Council. All in favor will say aye. (Aye.)
The ayes have it and so the bill is reported out. I believe that takes care of our agenda for today. It was very long. I thank you all for your patience. This hearing is recessed. Remember the February 20th hearing on the 184 1/31/07 - FINANCE - BILLS 060052, ETC. biosolids and the other bill with Wachovia Bank. I thank you all for your patience and all the hard work. Thank you. This hearing is recessed. (Committee on Finance adjourned at 1:00 p.m.) - - - 185 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 January 31, 2007, 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.)