COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING BEFORE THE COMMITTEE OF THE WHOLE - - - Room 400, City Hall Philadelphia, Pennsylvania Monday, April 7, 2008, 10:15 a.m. - - - Bill 080022 - Amending Philadelphia Code re tax rates, credits, and alternative tax computation... Bill 080157 - Amending Philadelphia Code re tax rates, credits, and alternative tax computation... Bill 080160 - Re Parking Tax, establishing rate of taxation on parking transactions... Bill 080164 - Re construction, encroachments, projections over, on, and under streets... Bill 080165 - Re Philadelphia Building Construction and Occupancy Code, amending fee schedule for various construction-related activities... Committee Members Present: Anna C. Verna, Chair Marian B. Tasco, Co-Chair Darrell L. Clarke Bill Green William K. Greenlee Curtis Jones, Jr. Jack Kelly James F. Kenney Donna Reed Miller Frank Rizzo Maria D. Quinones-Sanchez - - - V A R A L L O Incorporated Litigation Support Specialists 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2 4/7/08 - Whole - 080022, 157, 160, 164, 165 I N D E X WITNESS L&I John Elfrey, Acting Commissioner.......... Bridget Greenwald, Admin. Services Dir. Deputy Commissioner Dominic Verdi......... 29 5 Deputy Commissioner Eileen Evans.......... 63 Otis Haigler, Legislative Affairs Dir. 173 6 Steve Agostini, Budget Director........... 85 7 Board of L&I Review 8 Bridget Greenwald, Admin. Services Dir. 181 9 Board of Building Standards Bridget Greenwald, Admin. Services Dir. 183 10 Board of L&I Review 11 Bridget Greenwald, Admin. Services Dir. 184 Susan Jaffe, Zoning Board Chair........... 187 Water Department Bernard Brunwasser, Commissioner.......... 199 Debra McCartey, Deputy Commissioner....... 217 Joseph Clare, Deputy Commissioner......... 222 Steve Furtek, Chief Engineer.............. 247 Rhina Cutler, Deputy Mayor................ 269 for Transportation and Utilities Steve Agostini, Budget Director........... 300 Board of Ethics Richard Glazer, Chair..................... 322 Shane Creamer, Executive Director......... 332 Youth Commission Benjamin Dubow, Appointee................. 411 Steve Agostini, Budget Director........... 417 3 4/7/08 - Whole - 080022, 157, 160, 164, 165
Good morning, everyone. This is a continued public hearing of the Committee of the Whole regarding Bill No.'s 080022, 080157, 080160, 080164, and 080165. The first department to testify... MR. McPHERSON: ... is the Department of Licenses and Inspections. (Witnesses come forward.)
Good morning. COMMISSIONER ELFREY: Good morning.
Please identify yourself for the record. COMMISSIONER ELFREY: I'm John Elfrey, Acting Commissioner for the Department of Licenses and Inspections.
Proceed with your testimony, please. COMMISSIONER ELFREY: Good morning, Council President Verna and 4 4/7/08 - Whole - 080022, 157, 160, 164, 165 members of Council. I am John Elfrey, Acting Commissioner for the Department of Licenses and Inspections. Accompanying me today are key members of the department's management team, including Deputy Commissioner Eileen Evans, Deputy Commissioner Dominic Verdi, and our administrative services director, Bridget Collins-Greenwald. We appreciate the opportunity to present our Fiscal Year 2009 Operating Budget request to City Council and to provide you with our plans for the upcoming year. The Department of Licenses and Inspections is requesting a total FY '09 budget of $40,602,397, of which $29,635,668 is in the City's General Fund, $10,250,000 is in the Grants Revenue Fund, and $716 729 is in the Community Development Fund. The FY '09 request will fund 374 General Fund positions and includes a total of $10 million in 5 4/7/08 - Whole - 080022, 157, 160, 164, 165 demolition funding. As always, we will continue to prioritize emergency, public safety, and economic development concerns, and will maximize productivity with current resources. The mission of the Department of Licenses and Inspections is to administer and enforce the City's Code requirements for the enhancement of public safety. Through the issuance the building, electrical, fire, plumbing and zoning permits, we will enhance public safety, foster economic development, contribute to healthy and sustainable neighborhoods, provide excellent customer service, and contribute to a high-performing government. Through our inspection process, we will enhance public safety, educate our customers, and improve the quality of life in our city. 6 4/7/08 - Whole - 080022, 157, 160, 164, 165 Finally, through our licensing process, we will provide exemplary customer service, foster healthy and sustainable neighborhoods, and contribute to the economic development of the City. We will develop plans for publicizing our customer service standards on our website and in waiting areas of the department. We are also working with the Law Department to determine redress standards if do not meet our established goals. We will develop more accurate measures to describe the benefits of the department's activities. Finally, we will coordinate our clean-and-seal, demolition, and inspection activity with the Philadelphia Police Department in the nine designated high-crime areas as well as other sections of the City. We will design our customer 7 4/7/08 - Whole - 080022, 157, 160, 164, 165 service standards through information gathered from focus groups and customer surveys. We will then implement customized customer-service training to improve the level of understanding of our customers' needs and begin to develop a comprehensive leadership team-building training to ensure that all of our managerial and supervisory personnel clearly understand and are working toward the same customer-service standards. We will electronically store historic zoning information and make it easily available for our customers and staff to access for research. We will also conduct an analysis to determine an appropriate fee structure to offset these costs. We are investigating establishing a local international code council chapter comprised of code officials, design professionals, developers, contractors, and others in 8 4/7/08 - Whole - 080022, 157, 160, 164, 165 the industry to work outside the Code -- to work together outside the Code enforcement arena to improve the built environment through cooperation, consistency, and integrity. This chapter will also sponsor training seminars on local codes and how to properly submit plans for the City, thus saving customers and employees the time they spend conducting multiple reviews for projects.
In cooperation with Licenses and Inspections, the Building Industry Association has recommended that the City more efficiently L&I sections of the public-area concourse in the Municipal Services Building. We will develop a plan to more efficiently utilize the back office space to raise the productivity level of our existing staff. Overall, through the use of FY '09 budgetary funds, the department is committed to achieving the maximum 9 4/7/08 - Whole - 080022, 157, 160, 164, 165 customer-service satisfaction, contributing to the safety of all citizens, and providing assistance in the areas of neighborhood sustainability and economic development. I would be happy to answer any questions at this time.
Thank you very much, Commissioner. Can you tell us how many General Fund positions you were budgeted for in Fiscal 2008? COMMISSIONER ELFREY: Council President, that number is 375.
I think -- I believe it was 386, according to the detail. COMMISSIONER ELFREY: The additional people were probably the Vacant Lot folks that are funded under the Managing Director's Office along with the CLIP personnel that would make up the difference. 10 4/7/08 - Whole - 080022, 157, 160, 164, 165
Would you look at of the detail, please. (Witness complies.) COMMISSIONER ELFREY: Yeah, the difference would be with the Vacant Lot folks funded in the Managing Director's Office and the CLIP Program.
So who's -- where are they going, to the Managing Director's Office or -- COMMISSIONER ELFREY: They've been there for quite some time, ma'am. Licenses and Inspections funds -- I'm sorry. Licenses and Inspections is reimbursed through the Managing Director's Office for the Vacant Lot Program and the CLIP Program. And we'll be happy to provide you a detailed analysis on that, but that's been happening for sometime.
Really? 11 4/7/08 - Whole - 080022, 157, 160, 164, 165 COMMISSIONER ELFREY: Yes.
I don't quite understand that, but -- so we're going to have approximately 6 positions eliminated or -- explain that 7 to me, because I'm not quite 8 understanding. 9 Somebody's doing the work in 10 your department and they had been in 11 your budget and they're not going to 12 be in '09; does that mean that we're eliminating positions? COMMISSIONER ELFREY: No, ma'am. I don't know that we're eliminating any positions. And we'll be happy to give you a detailed analysis of that.
Are you going to look at of the detail? COMMISSIONER ELFREY: I'm going to ask Bridget Greenwald to step up.
Good morning. I'm Bridget Collins-Greenwald, the 12 4/7/08 - Whole - 080022, 157, 160, 164, 165 administrative services director for the Department of Licenses and Inspections. In our target budget in FY '08, we were targeted for 375 General Fund positions. I don't think you're seeing that in the detail on ; you're looking at the original appropriation.
It was 386. In our target budget, though, for Fiscal Year '08, we were at 375. So basically, our Fiscal Year '09 budget mirrors our Fiscal Year '08 target budget.
So it's still a reduction of 12 positions, as we understand it.
There was a reduction from the original appropriation to the target budget last year, yes, but we're actually working 13 4/7/08 - Whole - 080022, 157, 160, 164, 165 within that target budget right now, so we're actually not really losing a position from where we're at currently.
Can you tell us how many vacancies you currently have? COMMISSIONER ELFREY: We have vacancies... all of which we're in 10 the process of filling. 11
I beg 12 your pardon? 13 COMMISSIONER ELFREY: All of 14 which we're in the process of filling; 15 we expect to have them all filled 16 within the next three months. 17
Yes. 22 The Chair recognizes Councilman Rizzo. 23
Could you be 24 specific and tell us where those 25 vacancies are, the 25, for the record, 14 4/7/08 - Whole - 080022, 157, 160, 164, 165 please? COMMISSIONER ELFREY: Sure. We have nine abatement workers for our clean-and-seal unit, four field investigators, a programmer analyst, a housing -- two housing and fire inspectors, public administration analyst, an engineering specialist, a contract clerk, two civil engineers, three service reps, and two more housing and fire inspectors.
That obviously would have an impact on any organization, Madam President, so I'm pleased to hear that -- within three months you're telling us -- COMMISSIONER ELFREY: We're confident.
We're going to follow up on that because when it's my turn, I have some questions about field inspections, so we'll talk more about that in a minute, but thank you for reporting that. 15 4/7/08 - Whole - 080022, 157, 160, 164, 165 COMMISSIONER ELFREY: Okay.
Are there any existing civil service lists for the vacancies that exist? COMMISSIONER ELFREY: Yes, there are.
Well, why would it take three months to fill these positions? COMMISSIONER ELFREY: I said for all of them, ma'am. There's lists for some. I think one or two we don't have a list, but I'll be happy to provide that information. We have lists for clean-and-seal workers, and that accounts for nine of the vacancies. We also have lists for some of the inspectors, and we're in the process of interviewing and pulling them off the list.
And you say that will take three months? COMMISSIONER ELFREY: I said 16 4/7/08 - Whole - 080022, 157, 160, 164, 165 that would take three -- I'm saying from this point forward for three months, we should have all filled, 5 okay. So I'm not saying for those that 6 have an existing -- 7
Well, 8 how about the nine that you say we have 9 an existing list for; when would they 10 be hired? 11 COMMISSIONER ELFREY: First 12 week of May. 13
14 That's a little different. 15 Commissioner, you mentioned in 16 your testimony that you will be 17 developing customer-service standards; 18 when do you expect to have them 19 developed? 20 COMMISSIONER ELFREY: Working 21 with Philly Stat and the Managing 22 Director's Office, we hope to have our 23 customer-service standards developed by 24 the middle to the end of May. 25
The 17 4/7/08 - Whole - 080022, 157, 160, 164, 165 revenue projection for your department are $45.6 million for Fiscal Year 2009. The projections indicate that you will be collecting $2.9 million from street use, an increase of $500,000 over Fiscal '08. Can you explain what street use is and how you will be able to generate an additional $500,000 in '09? COMMISSIONER ELFREY: I'm going to ask Miss Greenwald to give you an answer.
Yes. We projected that based on looking at historical data of the revenue that was coming in, so we increased the revenue projection somewhat for Fiscal Year '09. As for the street-use permit, I'm not exactly -- (Addressing colleagues.) Can you say exactly what that one is, the street-use permit? Hmm, I'd have to get back to 18 4/7/08 - Whole - 080022, 157, 160, 164, 165 you exactly on the specifics of that. We just looked at the historical trend of the revenue that was coming in. The street-use permit exactly, I, unfortunately, am not familiar exactly what that is.
Does anybody know? COMMISSIONER ELFREY: We will get that information for you.
You're also projecting to collect $20 million in building structure and equipment, which is also an increase of $500,000 over FY '08. Can you explain what permits generate these funds and how you will increase collections?
Yes. Those permits are our building permits, and we have had in the past -- historically in the past five years, we've seen the 19 4/7/08 - Whole - 080022, 157, 160, 164, 165 trend increasing in our building-permit fees, so we just based that projection on what we've seen over the past few years.
You know, with the current economy and I think -- I don't see much building going on these days.
Well, we actually -- excuse me. We actually haven't seen that decrease in our permit revenue coming in to date, so we've actually still have been pretty optimistic of with our revenue projections. We're actually ahead in Fiscal Year '08 of where we thought we would actually be at this point.
Commissioner, on of the Five-Year Plan, it states: L&I will develop a comprehensive public relations campaign to communicate about the services offered by the department. The campaign will involve print-media 20 4/7/08 - Whole - 080022, 157, 160, 164, 165 outreach of community and business groups and the distribution of fact sheets outlining services to more specifically-defined groups within the City. To deal with abandoned buildings, Neighborhood Services Division will formulate a targeted demolition plan. L&I will work with operating departments, City Council, and residents to coordinate efforts to bring neighborhoods into Code compliance. The department will develop measures to monitor success and communicate achievements to City residents. What is the projected cost of the public relations campaign? COMMISSIONER ELFREY: Most of the public relations -- it -- we project it to be minimal. I don't have a solid number yet, but most of that campaign will be through community meetings, working through City Council, working with neighborhood groups to get 21 4/7/08 - Whole - 080022, 157, 160, 164, 165 the word out. We also plan to enhance our website tremendously. We want to get the word out on what L&I does, how it does it, and how the community can help us to do our job, using the Web. We -- that's basically how we plan to do it.
Where would we find these minimal funds budgeted? COMMISSIONER ELFREY: They're basically on our Class 200 administrative costs. As I said, we don't have a solid dollar number yet; when we do, we will publicize it.
Can you tell us the status of the targeted demolition plan. COMMISSIONER ELFREY: Deputy Commissioner Evans, along with staff, is working with the amount that we have budgeted to try and do small 22 4/7/08 - Whole - 080022, 157, 160, 164, 165 neighborhood packages. We haven't identified completely where they are. We will, of course, talk to Council when we do. But the thought is that instead of going in and maybe doing one demolition on Fourth Street and then coming back two months later and another demolition on Fifth Street, we would try to target them in a package. Basically, it's a customer service issue too. Less disruption to the neighborhood. We're hoping to reduce costs with economies of scale, and we hope to have that plan started in July or August of this year.
What is the cost of a demolition these days for a two-story building? COMMISSIONER ELFREY: About $26,000, three-story.
26,000? I remember it being 8,000. 23 4/7/08 - Whole - 080022, 157, 160, 164, 165 COMMISSIONER ELFREY: Excuse me, ma'am?
I said, 26,000? I remember L&I doing them for 8,000 -- COMMISSIONER ELFREY: Oh.
-- a couple of years ago. COMMISSIONER ELFREY: Well, that includes --
I know time goes by when you're having fun. COMMISSIONER ELFREY: Well, I don't have fun knocking down buildings.
But it just seems to me that it was a couple of years ago that it was costing 8,000. Is this -- COMMISSIONER ELFREY: But that includes everything.
Is this for -- when you talk about demolition, are you including cleaning 24 4/7/08 - Whole - 080022, 157, 160, 164, 165 the lot and grassing and the fencing? Is all of that included -- COMMISSIONER ELFREY: Yes, ma'am, it is.
-- in the price? COMMISSIONER ELFREY: Yes, including the stuccoing on the side houses, if necessary. That's basically soup to nuts, yes.
Commissioner, can you tell us how you propose to bring neighborhoods into Code compliance? COMMISSIONER ELFREY: I think, basically, through education and enforcement. Of course, we don't like to use enforcement, but I think the more we get the word out to folks -- and I this Saturday was a perfect example with the Mayor's cleanup. We need to build on that and focus on keeping our neighborhoods and our properties clean. 25 4/7/08 - Whole - 080022, 157, 160, 164, 165 We're just going to try to educate the public through Council, through community groups, through community meetings, whichever, in any way we possibly can.
And can you tell us how you propose to bring City Council into the process? COMMISSIONER ELFREY: We would like to meet with City Council and ask us -- ask you to help us to get the word out. I think it's very important that we leverage the knowledge and the experience you have with the neighborhoods to help us.
In your opinion, does the proposed L&I budget for Fiscal Year '09 fund all of the initiatives as stated in the Five-Year Plan? How do we propose -- do you think we're going to be able to do all of that? COMMISSIONER ELFREY: We're certainly going to try, ma'am, yes. 4/7/08 - Whole - 080022, 157, 160, 164, 165
Okay. We wish you success. COMMISSIONER ELFREY: Thank you.
The Chair recognizes Councilman Rizzo. Oh, I'm sorry. Each Councilmember will get five minutes because there are a number of Councilmembers that do want to be recognized. Councilman Rizzo.
Thank you, Madam Chair. Prior to NTI, the budget item for demolitions, to follow up on President Verna's question, was $20 million per year. That money was committed to NTI bond debt service for thirty years to fund what essentially was a five-year program. In this budget, I see that the funding for the Five-Year Plan for demolition is now $10 million a year. 27 4/7/08 - Whole - 080022, 157, 160, 164, 165 Why -- you know, what's that about, and is that an adequate funding level at this time? COMMISSIONER ELFREY: You're speaking of the NTI funding or the General Fund demolition?
The NTI funding went from twenty to ten. COMMISSIONER ELFREY: Yeah, and I think that's basically being reduced because it's towards the end of the program. There's demolitions left in approximately five Council Districts, totaling, I believe, about 198 demolitions.
But it was initially planned for million, so 19 someone changed the number. 20 COMMISSIONER ELFREY: I can't answer that question, sir.
Could you get back to us on that. COMMISSIONER ELFREY: Certainly.
How that 28 4/7/08 - Whole - 080022, 157, 160, 164, 165 number got changed, please. COMMISSIONER ELFREY: Sure.
Going back now to the vacancies that you have 6 -- 7 COMMISSIONER ELFREY: Mm-hmm. 8
-- let's 9 talk about the ones that I kind of 10 think are very, very important. Let's 11 talk about inspections that you -- your 12 department does. Could you go over the 13 various types of inspections that you 14 do? 15 COMMISSIONER ELFREY: The 16 neighborhood services unit does 17 quality-of-life inspections basically 18 for exterior quality-of-life property 19 maintenance violation. We do housing 20 and fire inspections, both in 21 commercial buildings, we do inspections 22 inside homes. We do inspections for 23 demolition activity. We do weights and 24 measures inspections. We visit gas 25 stations and supermarkets to check the 29 4/7/08 - Whole - 080022, 157, 160, 164, 165 scales and check to make sure that the proper amount of gas is being issued.
Restaurants. COMMISSIONER ELFREY: Permitting, construction services.
Restaurants? COMMISSIONER ELFREY: Well, we do restaurants as it relates to housing and fire and electrical -- not housing and fire, but fire and electrical inspections. The Health Department does inspections for restaurants.
Let me ask you, are some of those inspections that you just described, are they required annually, semiannually? How frequently are you required to do that work? COMMISSIONER ELFREY: Let me ask Deputy Commissioner Verdi to step up. (Witness comes forward.) DEPT. COMMISSIONER VERDI: Good morning. Deputy Commissioner Dominic Verdi. 30 4/7/08 - Whole - 080022, 157, 160, 164, 165 To answer your questions, Councilman, some are required yearly, some are required every two years. I'd have to give you a list of what type of -- if you'd let me know what type of inspection you're speaking of, I can give you a better answer.
I'll get right to my point; we don't need to go do a lot of research. Are you current -- based on 13 vacancies -- and I did hear in the 14 list some inspectors -- are you 15 meeting your mandate? Are you doing 16 all you're supposed to do annually 17 where you're required to do annually 18 and every two years? Are you on 19 target? Are you behind in any 20 inspections in our city? 21 COMMISSIONER ELFREY: I am told 22 we are behind, yes. 23
You are 24 behind. 25 COMMISSIONER ELFREY: Yes. And 31 4/7/08 - Whole - 080022, 157, 160, 164, 165 we are currently --
Where are you behind? COMMISSIONER ELFREY: We are behind in housing inspections, quality-of-life inspections.
That's it? COMMISSIONER ELFREY: I've asked Deputy Commissioner Verdi and Deputy Commissioner Evans to compile of list of what we are behind in --
How significant -- COMMISSIONER ELFREY: -- and how -- I don't have the final numbers yet, sir.
Well, let's -- if you're behind, somebody has a feeling how significant it is. I don't need to know if it's six months, two hours and 43 minutes. Do we have a problem or don't we? COMMISSIONER ELFREY: I don't know that we have a problem that we 32 4/7/08 - Whole - 080022, 157, 160, 164, 165 can't overcome once we get our full inspection staff on board.
Well, how many inspectors in that are you 6 missing? That doesn't sound like -- I 7 heard two, three. 8 COMMISSIONER ELFREY: No. I 9 think it's more than that. 10
Well, tell 11 me again. 12 COMMISSIONER ELFREY: It was a 13 total of seven. 14
So you're 15 down seven inspectors and you have a 16 list for those inspectors? 17 COMMISSIONER ELFREY: Correct. 18
You're 19 behind and you don't hire them? 20 COMMISSIONER ELFREY: Yes, we 21 are hiring them, sir. We're in the 22 process of hiring them now. 23
Okay. So 24 you'll have all -- 25 COMMISSIONER ELFREY: What I 33 4/7/08 - Whole - 080022, 157, 160, 164, 165 said was, all 25 would be on board in three months in total.
When will the seven inspectors be hired? COMMISSIONER ELFREY: I think we have lists. They should be on board, I would assume, by the middle of May.
So you're telling me the reason we're behind -- at least you believe we're behind is because of the lack of these seven inspectors? I mean, it makes sense. COMMISSIONER ELFREY: Sure. It contributes to it, absolutely.
So we need to -- we would appreciate a report on how behind we are. And you anticipate that when you employ these seven inspectors, there's certainly a learning curve, how quickly you're going to be back on track, because obviously, we would want the most -- that inspection should be prioritized 34 4/7/08 - Whole - 080022, 157, 160, 164, 165 in my opinion. The most significant inspections should be conducted first; would you agree with me on that? COMMISSIONER ELFREY: You're simply right, sir, and that's exactly what we've asked for.
Mm-hmm. Okay. Well, we really need to get a report. And I think we need to re-call L&I, Madam President, to talk about the significance of the backlog of work that they have. You're okay with that?
We're going to ask you to come back here with that information for the record. Thank you, Madam President.
You're welcome. The Chair recognizes Councilman Jones. 35 4/7/08 - Whole - 080022, 157, 160, 164, 165
Thank you, Madam President. I understand that you're behind, but can you enlighten me with the types of inspections we are behind on, the categories? I know there are inspectors that inspect buildings, I mean, but can you give us the categories of which we are behind on? COMMISSIONER ELFREY: Okay.
And while the clock is still ticking, I'd like to also know, when it comes to landlords and renters and housing conditions, is that one of the categories we are behind on? COMMISSIONER ELFREY: Go ahead. DEPT. COMMISSIONER VERDI: One of the categories we are behind on is some of the housing-related issues. We -- there's a staffing need, which the Commissioner has addressed, and we are going to prioritize all complaints and inspections regarding 36 4/7/08 - Whole - 080022, 157, 160, 164, 165 fire and life safety.
I have "A Tale of Two Cities," and I'm going to try describe 'em. In one part of my district, which is the lower end of my district, which is the low- to moderate-income end of my district, I have a high concentration of renters and landlords, where conditions are falling below standard. And there is a need for L&I to come out and assist tenants on the conditions of those properties that they live in. In another part of my district -- East Falls, Roxborough and Manayunk -- we have a high degree of renters. The difference is quality-of-life issues, town-and-gown issues, where they aren't given a high degree of priority, because when you have to choose between an imminently dangerous party and someone's beer party, you tend to go to the 37 4/7/08 - Whole - 080022, 157, 160, 164, 165 imminently dangerous party, which is logical. What I want to know is two things: One, can we ask that in high-renter districts that we tack on a -- and let's say if we came up with a formula that says when a neighborhood has over 40 percent renters that there be a zoning overlay or a requirement that they help to defray some of the costs by way of inspections or added inspections, both for areas like that, but also town-and-gown areas where we have high degrees of populations of students that are kind of running amok and the owners don't tend to care as much about the people who are actually stakeholders and home owners that get besieged with beer parties. So is there a way to -- I know there's a law on the books, I know it's not being enforced as much 38 4/7/08 - Whole - 080022, 157, 160, 164, 165 because we don't have inspectors, but is there something we can do about that? DEPT. COMMISSIONER VERDI: We could work with Council to look at any type of a zoning overlay or any overlay that Council would like to have initiated. But just to let you know, just to clear up one issue: There is no -- I mean, we do have different types of inspectors. And when you say we respond to a dangerous building case before we respond to beer parties, we respond to them both in the same manner. We have two different inspectors that deal with that. We have inspectors that do deal with just dangerous buildings, and they come under Deputy Commissioner Eileen Evans. I have a group that deals with beer parties or those type of issues, 39 4/7/08 - Whole - 080022, 157, 160, 164, 165 and we work closely with the Fifth District captain up in the Manayunk area in reference to the Nuisance Task Force. So we do address those issues equally when the complaints come to our attention.
I can assure you -- I've spent -- and I'm, in fact, going to invite the at-large Councilmembers to join me in a walking tour on a Friday or a Saturday night that shows what people have to live -- the conditions they have to live under. And I'm going to encourage my colleagues to join me on that. And I'm going encourage you to come with me -- DEPT. COMMISSIONER VERDI: I'd be happy to do that.
-- to see if we are addressing that issue. And I would argue that we're not. And I'm not blaming you here 40 4/7/08 - Whole - 080022, 157, 160, 164, 165 today. I'm saying that we have to address that issue. We have a good law on the books. What we don't have is enforcement. Same thing on the other end of my district, where we have a high degree of renters and we have a high degree of landlords who tend to know that they can, in fact, duck L&I inspections for a period of time because of the long degree of rotation; they know this. I know for a fact that Councilman Green and Councilman Rizzo have addressed that in different parts of this city. So maybe you're not up on it and but the owners are. And what we want to do is not point fingers or blame. We want to figure out what it takes to resolve these issues, and that's what we want a commitment to work with you on. COMMISSIONER ELFREY: Councilman, we'll be happy to work with 41 4/7/08 - Whole - 080022, 157, 160, 164, 165 you and we look forwarded to doing and resolving these issues. That's why we're here and that's what we plan to do, sir.
Well, the first thing, we're going take that walk with the at-larges and walk around the district and kind of take a bird's eye look at what many of the residents of the 4th District already know, which is that we need to get you some more resources up there. COMMISSIONER ELFREY: We will be happy to accompany you and we will bring staff.
Thank you. The Chair recognizes Councilman Greenlee.
Good morning. My questions are kind of along 42 4/7/08 - Whole - 080022, 157, 160, 164, 165 the same line as Councilman Rizzo and Councilman Jones. And particularly Councilman Jones said the one word, "enforcement," and that seems to be in my previous life, working with Councilman Cohen for many, many years, dealt with L&I a lot. And it seems like this is still pretty much the same situation. A person calls in with a complaint, a citizen, we do, whatever. And the original inspection gets done maybe not too bad a period of time, but that's when -- that's when it seems like it almost halts. The follow-up time, especially if it's not like a really, really major life-and-death thing. And then if still the violation isn't solved on the -- upon the second inspection, to get to enforcement through court seems to take forever. And these problems sit for long, long periods of time 43 4/7/08 - Whole - 080022, 157, 160, 164, 165 again. Again, a lot of them may not be life and death,but they're certainly, as Councilman Jones said, a real problem in the community. And I was wondering -- and I know, when it gets to the enforcement or court, that's somewhat out of your hands 'cause you got court backlog and all, but could you just take me through the timeframe of what ideally you would like to see as far as original inspection, how long it takes, how long for a follow-up, and then if, again, the violator either refuses or is unable to do something, you know, how we finally get it done through enforcement. COMMISSIONER ELFREY: I would like to see, after the original inspection, depending on the severity of the violation, that a reinspection occur within 30 days.
Mm-hmm. COMMISSIONER ELFREY: That 44 4/7/08 - Whole - 080022, 157, 160, 164, 165 would be the best-case scenario. Now, some violations do not require a 30-day reinspection; I think some are a little bit longer than that. And, Dominic, you can jump in in a second if you wish. But I would like to see us get into a program and follow that program and monitor it and track it and chart it and give this information to the public where we say, you know, inspection one is July 1st, inspection 2 is July 31st.
Right. COMMISSIONER ELFREY: And then soon after, another reinspection, if they don't comply, it goes to court. And we're going to do everything on our end because we control some of the flow with the Equity Court cases to get the cases out our shop as quickly as we possibly can and into the Law Department's hands. And, Dominic, if you can -- 45 4/7/08 - Whole - 080022, 157, 160, 164, 165 DEPT. COMMISSIONER VERDI: Councilman, I understand. The one part of your question is a valid question in reference to court cases. We have an issue -- our inspector will write a violation. The problem is, we don't always have physical contact with the owner.
Right. DEPT. COMMISSIONER VERDI: We have to make sure that the ownership is a valid ownership, then we have to -- and we go do the reinspection. For the moment, the reinspections are being done on a timely fashion. We have a new system that is able to track it and the supervisors will track it. Our problem is -- and you're correct in stating that our problem becomes an issue when it goes to the Municipal Court. The issue with Municipal Court is that it's then turned over to the court system to 46 4/7/08 - Whole - 080022, 157, 160, 164, 165 actually or physically get a body to accept the subpoena that requires us to get them into court. Now, what happens is, in most cases -- in cases that involve major public safety, like if there's a fire alarm issue or if there's things of that nature, we'll try to abate the situation, and most of the times, 90 percent of that abatement means evacuating the building based upon its occupancy. But the issue does become a little -- it becomes cumbersome when it does have to go into the municipal court system. In larger buildings or buildings that we know we have a viable owner, we'll send it to Common Pleas Court, where we're able to get to give us judge --
Right. That's for equity -- DEPT. COMMISSIONER VERDI: Right, Equity Court, to be able to get 47 4/7/08 - Whole - 080022, 157, 160, 164, 165 a judge to give this person a total deadline on when that case needs to be, you know, back before the judge. And even in them cases, we have issues where the judge may continue it, the lawyers may continue it; it becomes more or less a court issue.
Mm-hmm. DEPT. COMMISSIONER VERDI: But years ago, when we had the availability for some abatement, we were actually physically fixing the problem. But, unfortunately, we don't have that funding.
You talk about -- COMMISSIONER ELFREY: And, Councilman, I'd just like to add that. We plan to take a wholistic approach and work with the Law Department on these issues too.
Okay. COMMISSIONER ELFREY: Go ahead. 48 4/7/08 - Whole - 080022, 157, 160, 164, 165
When you talk about abatement, it brings up one particular issue that I see one of the signs back here talked about and I was going to ask anyway. Landlords providing heat to residents, to tenants, you know, there's some, maybe they don't know, but there's obviously isn't adequate heat at certain times during the winter and people call in and complain. That seems to be that that should take a real priority; that should just go through, well, in 30 days, you're supposed to fix it. COMMISSIONER ELFREY: No, it doesn't, it doesn't.
And I -- yeah, that's what I was going to say. Could you take me through that? I mean, is there a issue when, say, a heater is just plain-out broken, the landlord won't fix it? Does L&I have the ability to just force the issue, go 49 4/7/08 - Whole - 080022, 157, 160, 164, 165 in, fix it, bill the owner, that kind of thing? DEPT. COMMISSIONER VERDI: In some cases, we do have the ability -- we have emergency processes to repair the heat.
Mm-hmm. DEPT. COMMISSIONER VERDI: Just to give you -- to let you know that most heat complaints are answered within a 24-hour period; I should say mostly. From what I see, all, 14 hours. 15
Mm-hmm. 16 DEPT. COMMISSIONER VERDI: We 17 have a heat hotline that's answered 18 nights and weekends. 19
Right. 20 DEPT. COMMISSIONER VERDI: We 21 have an emergency-duty person on 22 standby seven days a week, twenty-four 23 hours a day. So the heat complaints 24 are being responded to. I can't tell you how many 50 4/7/08 - Whole - 080022, 157, 160, 164, 165 times I was called throughout the winter of people telling me they had to evacuate a building because of no 5 heat. We're not going to let people stay in the building, we're not giving that that 30-day process. Now, with our new reinspection fees, we're able to actually find the owner for any lengthy noncompliance, so we are taking a proactive stance on those type of violations, or those complaints.
You're welcome. The Chair recognizes Councilman Green.
Thank you, Madam President. I was reviewing a bunch of questions I had for you when Councilman Greenlee was asking 51 4/7/08 - Whole - 080022, 157, 160, 164, 165 questions, so I apologize if he's already asked you this. One of his early questions related to following up after the initial inspection and then being able to keep track of that. You mentioned a, I guess, relatively new computer system that -- can you -- do you have essentially a work order entry or work order management system or an inspection computer system that creates deadlines and alerts for people to go out at different times, and can you talk about that briefly? COMMISSIONER ELFREY: Yes. It's called the Hansen (sp?) system, and cases care created when a customer calls in. A case number's assigned, it's assigned to an inspector, depending on the type of violation it is. And there is something within the system that tickles -- for lack of a better term -- a reinspection date 52 4/7/08 - Whole - 080022, 157, 160, 164, 165 once the original inspection is made.
So the only question that I think we have is: What if a customer didn't call in; how does -- routine inspections or inspections, you know, every few years of a particular property or a property, whether it was trouble, how does that get into a system that generates additional -- COMMISSIONER ELFREY: It's -- that's entered by the inspector. I think it's commonly referred to as "a pickup."
Commonly referred to as a...? COMMISSIONER ELFREY: As "a pickup." If the inspector's out on the street and notices something that doesn't look right or sees a violation of a particular property, they can enter the violation information themselves.
But what 53 4/7/08 - Whole - 080022, 157, 160, 164, 165 about standard inspections? COMMISSIONER ELFREY: Same thing. An inspector enters that too. They'll go out onto the site at a particular location; if there are violations, they would be entered into the Hansen system by the inspector.
But what about things where you -- I mean, don't you, every once in a while, inspect major apartment buildings? don't you, every once in a while, inspect restaurants? COMMISSIONER ELFREY: Mm-hmm.
Don't you -- COMMISSIONER ELFREY: They're called "program inspections," yes, sir.
Are they in the Hansen system also? COMMISSIONER ELFREY: Yes.
Okay. So now, every single inspection that the City is required to do on some sort of annual or biannual basis -- whether 54 4/7/08 - Whole - 080022, 157, 160, 164, 165 it's a restaurant, whether it's an apartment building, whether it's a follow-up -- is now in the Hansen system? COMMISSIONER ELFREY: That's correct.
Okay. That sounds promising. COMMISSIONER ELFREY: Yeah, I think it is. And we're looking forward to --
How long has that system been up and running? COMMISSIONER ELFREY: Final implementation was last year. We're still working internally to identify management reports and tools that we can better utilize to make our jobs easier in exactly this type of situation. So it's been in operation for a year, but we're still tweaking it.
Is there a paper report implemented in addition to 55 4/7/08 - Whole - 080022, 157, 160, 164, 165 reporting within Hansen? COMMISSIONER ELFREY: What type of report, sir?
So an inspector's in a field, they notice a violation; do they write something on paper in addition to putting something in Hansen? COMMISSIONER ELFREY: They may jot down a location if they don't have their computer with them at the time and then transfer that information into Hansen. And correct me if I'm wrong, Dominic that's -- DEPT. COMMISSIONER VERDI: Yeah. Councilman, every inspector now is assigned a laptop or notebook. There is really no need for any paperwork for them to turn back into the department. Everything is able to be reviewed by the supervisor, that inspector's supervisor, as it's being written. The only paper that's 56 4/7/08 - Whole - 080022, 157, 160, 164, 165 generated from that system is a violation notice or any subsequent paperwork that's required to go to owner or tenant or whoever's the building property manager, but there isn't any paper to be submitted to the City.
Do you have any estimate on how much time or how much more productive inspectors and other people can be now that you've eliminated paper record-keeping? COMMISSIONER ELFREY: I don't. I don't have that information with me, no, sir.
Mr. Verdi? DEPT. COMMISSIONER VERDI: As far as the information, I mean, I've seen an upswing as far as inspections compared to four or five years ago. As far as a definite number, I couldn't give you that information until we look into how much clerical staff we -- before, the process would be that the 57 4/7/08 - Whole - 080022, 157, 160, 164, 165 inspector had to write the violation. I think the bigger issue is the time it takes for notification at this point. To give you a look back historically, a violation was written on paper, then given to a supervisor who had to sign off. Then that supervisor would then have to put it on a clerical person's desk to be input into the system. As we declined in the clerical staff, that backlog got bigger and bigger. Now -- and it would take -- if, for instance, a violation was written today, an owner may not get it for ten days. If that violation is put in the system today by the inspector, tomorrow morning, a paper copy is printed out in the mailroom and it's mailed out by sometime tomorrow afternoon. COMMISSIONER ELFREY: And that's exactly the type of information we're looking to track with the system 58 4/7/08 - Whole - 080022, 157, 160, 164, 165 moving forward. When I said "tweaking it," those are the type of reports that I want to see and, I'm sure, the deputy commissioners and our management team want to see because that's going to help us manage and guide our day-to-day process.
Oh, well, I'll talk to you in a second. Thank you. (Laughter.)
Thank you. The Chair recognizes Councilman Clarke.
Thank you, Madam President. Good morning. COMMISSIONER ELFREY: Good morning.
I'd like to 59 4/7/08 - Whole - 080022, 157, 160, 164, 165 shift the focus a little bit briefly. The City of Philadelphia recently did a bond initiative, and we floated approximately $150 million in bonds for demolitions, and the number may be off. And the assumption is that we have depleted those bond dollars, 'cause I know I'm pretty much out of my money in my Council District, so I'm assuming that most of the other Councilmembers are also. And I know we have a debt service payment that we have to pay on the bond. And you have allocated $10 million per year for demolition? COMMISSIONER ELFREY: Correct.
And you mentioned earlier in your statement that you were going to do bid packages, I think I heard you say? COMMISSIONER ELFREY: That is correct.
Will the 60 4/7/08 - Whole - 080022, 157, 160, 164, 165 bid packages be similar to the old process under the NTI Program? COMMISSIONER ELFREY: We want to take the best of both worlds Licenses and Inspections has some very good work processes internally relating to curbside bids. And in the NTI Program, there were economies of scale in doing the bid packages. So what our staff is doing, and it's actually being directed by Eileen Evans, Deputy Commissioner Evans, is trying to get the best of best of worlds to make us the most efficient and productive that we can be with these demolition packages.
Meaning that if the bond dollars had been available, or were available, and you had to utilize -- instead of hiring -- I forget the name of the company that we hired. We hired a company to oversee the process; who was -- COMMISSIONER ELFREY: Hill 61 4/7/08 - Whole - 080022, 157, 160, 164, 165 International.
Hill International. So had we internally been in the position to use a process that included economies of scale and had the ability to implement a somewhat, quote/unquote, curbside process to expedite the demolitions, done that internally, we wouldn't have had to have hired Hill International. COMMISSIONER ELFREY: I can't say that, sir. I don't know the answer to that question. And I wouldn't know.
I always wondered why we did that if we had internal systems. And I know you're relatively new, so that's why you -- COMMISSIONER ELFREY: Yeah, that's --
It's fortunate for you that you can't answer that question. COMMISSIONER ELFREY: Right. I can't -- 62 4/7/08 - Whole - 080022, 157, 160, 164, 165
You also referenced that you had 198, I think you said, properties to be demolished? COMMISSIONER ELFREY: Over five Council Districts, yeah.
Why do you think it's only 198. Is that -- that's what's on your list or -- COMMISSIONER ELFREY: That's what was left on the NTI, five active demolition bid packages, and it was about 198 properties.
Does that mean that that's all you intend on doing? COMMISSIONER ELFREY: Oh, no, that's -- no. 22 Eileen, do you want to explain that.
Explain that to me. 63 4/7/08 - Whole - 080022, 157, 160, 164, 165 DEPT. COMMISSIONER EVANS: Good morning. Deputy Commissioner Evans.
Good morning. DEPT. COMMISSIONER EVANS: The 198 properties refer to what's left in the existing NTI bid packages. That doesn't speak at all to what we intend to do going forward, just what's currently existing in the NTI bid packages as NTI phases out.
And that will be done under utilizing NTI bonds or using General Fund -- DEPT. COMMISSIONER EVANS: NTI bonds.
NTI bonds. DEPT. COMMISSIONER EVANS: Yes. COMMISSIONER ELFREY: And then all those NTI bonds will be depleted. DEPT. COMMISSIONER EVANS: Yes.
Okay. COMMISSIONER ELFREY: Just for a point of clarification, sir, we've, 64 4/7/08 - Whole - 080022, 157, 160, 164, 165 with the General Fund dollars, we've done about 224 demolitions to date, and we think we can do about 156 more by the end of the fiscal year.
Wait a minute. Say that again. DEPT. COMMISSIONER EVANS: Out of the General Fund money to date, we have demolished 224 properties by curbside, not counting NTI bond money or NTI demolitions.
Right. DEPT. COMMISSIONER EVANS: And the projection is that by the end of the fiscal year, we will demolish another 156 by curbside.
And then we will be relegated to $10 million in demolition. DEPT. COMMISSIONER EVANS: That's correct.
How does that compare to prior years prior to the NTI Program in terms of available 65 4/7/08 - Whole - 080022, 157, 160, 164, 165 revenue for demolition; is that low, high, or about the same? COMMISSIONER ELFREY: I'd have to go back and get that information. I don't have that information, sir. Eileen, do you remember? DEPT. COMMISSIONER EVANS: No, I don't. I'm going to wait for the Commissioner to go back and get that information.
Excuse me, please. The Chair recognizes Councilman Green for a point of information.
Thank you, Madam Chair. Just to follow up on Councilman Clarke's question, for the record, can you tell us the difference between the cost of L&I, the traditional cost of L&I demolishing a property versus the cost of the 66 4/7/08 - Whole - 080022, 157, 160, 164, 165 per-property, the average cost of demolishing it under the NTI bid package process? COMMISSIONER ELFREY: We'd have to go back and get that for you, sir. I don't have that information with me today.
I believe it's $9,000 for L&I and $20,000 under the NTI bid package process. So you may want to re-look at whether or not we can do twice as many homes by taking -- by, you know, perhaps going back to the old systems. I don't know if that's where Councilman Clarke was going with his question about, you know, efficient -- about how many are done, but if you could report that number back to the Chair, I'd appreciate it. COMMISSIONER ELFREY: We sure will.
Thank you, Madam Chair. 67 4/7/08 - Whole - 080022, 157, 160, 164, 165
All right. The Chair recognizes Councilman Clarke.
Thank you, Madam President. I actually wasn't going there, but just to expound on that particular reference -- and correct me if I'm wrong -- we asked that question earlier on about the process 'cause we noticed the increase in demolition costs in NTI years versus prior years under these traditional systems. And we were told that the treatment level on demolitions under NTI was different than the treatment level under the traditional L&I demolitions, where L&I would essentially go out. There was a lower-cost stucco process, there was no treatment to the ground that remained, and I'm assuming that there was some level of costs associated with the administrative fees from Hill 68 4/7/08 - Whole - 080022, 157, 160, 164, 165 International. COMMISSIONER ELFREY: Right. I --
And my question to that is, since Councilman Green brought it up, as we move forward under the process in the next fiscal year, what level of treatment on demolitions will we have moving forward? (Timer bell rings.)
'Cause under the old NTI demolition, we used to have, like I said, a higher level of sidewalk, stucco, it was the greening and the fencing, and it at least made it -- on an interim basis, it made the lot look somewhat decent until we could figure out what to do with it on a long-term basis. COMMISSIONER ELFREY: Correct me if I'm wrong, Eileen, but we're going to be providing the same level of treatment with the grading of the lot 69 4/7/08 - Whole - 080022, 157, 160, 164, 165 after the demolition and the stucco on the side walls, but we will not be doing fencing. DEPT. COMMISSIONER EVANS: No, that's correct. Councilman Clarke, your assessment is correct. The answer that we have given was that there was a difference in the quality of the demolitions between NTI and traditional L&I. There were some discussion that we should bring them both up to the same standard, which accounts, to some degree, for the increase in cost, but also explains the difference in the cost in the past. We are going to do stucco of the same quality, greening and seeding. And as Commissioner has indicated, it will not include fences.
And participation goals were extremely high in the last -- 70 4/7/08 - Whole - 080022, 157, 160, 164, 165 DEPT. COMMISSIONER EVANS: Yes, exactly.
That's all going to be a part of the new process? DEPT. COMMISSIONER EVANS: Yes. COMMISSIONER ELFREY: Absolutely.
Okay. I tried to sneak that in. Sorry, Madam President. (Laughter.)
I think you just said fencing would not be included? COMMISSIONER ELFREY: No, fencing is not included on General Fund demolitions moving forward; it is included on NTI. And if I misspoke, I apologize for that.
Okay. The Chair recognizes -- COMMISSIONER ELFREY: I think I said "soup to nuts," ma'am, and maybe I -- I'm sorry if -- 71 4/7/08 - Whole - 080022, 157, 160, 164, 165
That's okay. The Chair recognizes Councilman Jones.
Thank you, Madam President. On the minority participation, it says you spent, I believe, $8 million last fiscal year; is that right? And what was your participating -- COMMISSIONER ELFREY: Yes. That's the figures we have, $8,029,420, correct.
And how much went to MBE and WBE/DBE firms? COMMISSIONER ELFREY: I don't have that breakdown in front of me, but we will provide that information. I have it as a percentage but I don't have it as a dollar number.
Well, what's the percentage roughly? COMMISSIONER ELFREY: 72 4/7/08 - Whole - 080022, 157, 160, 164, 165 African-American was 15.48 percent. Asian was 12.7 percent. Indian was 1.77 percent. Women were 9.94 percent. And there was another approximate percent in two or more 9 categories. 10
And did that -- COMMISSIONER ELFREY: But I can get you -- I'm sorry.
It says you contracted with 32 non-governmental agencies; what does that mean? COMMISSIONER ELFREY: That's 32 private entities.
So these are the contracts in question. COMMISSIONER ELFREY: Mm-hmm, correct.
Okay. Let me shift questioning to commercial corridors. What types of inspections 73 4/7/08 - Whole - 080022, 157, 160, 164, 165 do you do along inner-city commercial corridors to the businesses that are there? And what I'm specifically talking about is internal but also signage, unified signage; are you on top of that? What type of inspections do you conduct? COMMISSIONER ELFREY: There's several types of inspections. There's the business compliance unit to make sure the folks have their business- privilege licenses, that everything is in order within the business, and they're up to date with whatever license, depending on the type of business that is required. As far as external signage is concerned, there's also inspections on that. If there are signs that are out there on the commercial corridors and they shouldn't be there, they're not permitted, they're there illegally, they don't have the zoning for them, we will write a violation. 74 4/7/08 - Whole - 080022, 157, 160, 164, 165
So we are on the corridors within the 4th Councilmatic District in compliance with the signage? DEPT. COMMISSIONER VERDI: Councilman, unfortunately, it changes daily. Our inspectors go out today and get those -- some of those businesses in compliance, and then tomorrow, they seem to add signs all over the building. Our inspectors have been in all of those corridors, and we have worked together with some of the community groups in that district. And we do inspect yearly those businesses. The problem with those businesses is, a lot of them will get extra income from cigarette companies or whatever to put these signs up. When we get complaints, it's -- we do do a programmatic inspection throughout the business corridors 75 4/7/08 - Whole - 080022, 157, 160, 164, 165 every year, but we also respond to complaints when they're sent to our office in reference to excessive signage.
My issue -- and I led you to this point -- is that there are several issues. One, there are good businesses. And then there are businesses that need some incentive to be good. And so, in cases like that, I'm going to look to a cooperation with L&I so that the community deserves a good, unified, well-kept shopping district. So when businesses aren't good neighbors, whether they put their trash out, short-dump, whether they have illegal signage, whether they sell drug paraphernalia, we want to keep them as good neighbors. So we want to work with you. As we get complaints in our office, we want to refer them to you. When businesses don't close when they are 76 4/7/08 - Whole - 080022, 157, 160, 164, 165 supposed to and are attractions to elements that aren't altogether law-abiding, we want to work with you to help those businesses become better neighbors, if you would. I believe that L&I can play an important developmental role in inner-cities to keep the standards high. We deserve a healthy shopping environment, and we believe that you are strategic partners in that and want to utilize you fully. We're trying to hold -- we're getting ready to put $1.2 million worth of site improvements to Lansdowne Avenue, for example. It doesn't matter if we do trees, sidewalks, curbs if the existing businesses don't understand because they are absentee landlords reaping investments as they sit on the beach in Florida, that we are serious about upgrading the shopping experience for people in that corridor. 77 4/7/08 - Whole - 080022, 157, 160, 164, 165 So we're going to need you to kind of help us to make them better citizens and good neighbors. COMMISSIONER ELFREY: Councilman, many of things that you just said fit nicely with the Mayor's Strategic Plan, and we are a big part of that, and we look forward to working with you.
Thank you. The Chair recognizes Councilman Greenlee.
Thank you, Madam President. Just to follow up quickly on the other questions I had when I ran out of time, Deputy Commissioner Verdi, you had -- we were talking about the problems with enforcement and particularly in Municipal Court, 78 4/7/08 - Whole - 080022, 157, 160, 164, 165 has there been some conversations with some of the officials at Municipal Court? Is there a way to sort of speed the process up, address those a little bit better? DEPT. COMMISSIONER VERDI: We've spoken to some of the judges, and we have an enforcement person that's working very closely with them. I don't want to put the full blame again, like I said, on them totally.
No, I understand. DEPT. COMMISSIONER VERDI: It's also an issue with actual servicing of the paperwork.
Mm-hmm. DEPT. COMMISSIONER VERDI: In some cases, they -- if we can't find an owner to serve with a subpoena, that also could be a delay.
Mm-hmm. And you talked about some cases go to 79 4/7/08 - Whole - 080022, 157, 160, 164, 165 Common Pleas Court, and I know over the years I've tried to push some of those cases, 'cause the court can actually order you or instruct you to do something, you know. What is roughly the percentage of cases that would wind up in Equity Court? And what's kind of the rough, defining line there, you know, to get it to Equity Court. DEPT. COMMISSIONER VERDI: It's based on the severity of the situation. As far as percentage, I can get -- we can get you a percentage of our cases that go to Common Pleas Court.
Okay. DEPT. COMMISSIONER VERDI: But it's relatively -- it's an issue whether or not it imposes immediate life-safety issues.
Talking about that and about the heat complaints that I referenced before, in order to actually go in and fix the 80 4/7/08 - Whole - 080022, 157, 160, 164, 165 heater and bill the owner, do you have to get a court order -- I guess you have to get some kind of court order to do that, or do you have the ability to just go in and do it or -- DEPT. COMMISSIONER VERDI: We have the ability in some cases to go in and just do it.
Okay. And as -- do you do that a lot? I mean, if it's -- DEPT. COMMISSIONER VERDI: I wouldn't say a lot.
Mm-hmm, okay. 'Cause I'm just thinking -- I guess -- is it accurate to say that a lot of times, it's either the same properties or the same landlords that are delinquent in this kind of thing or guilty in this kind of thing? DEPT. COMMISSIONER VERDI: It's just -- it's just that -- it's -- I'm not saying it's the same type -- it's the same types of landlords. 81 4/7/08 - Whole - 080022, 157, 160, 164, 165
Mm-hmm. DEPT. COMMISSIONER VERDI: Land lords as, Councilman Jones mentioned, who are not good neighbors --
Right. DEPT. COMMISSIONER VERDI: Where somebody wants to live on a beach in Florida and have someone live in their apartment here.
Mm-hmm. And on that line, is there -- do you have a mechanism for that kind of landlord; if he or she applies for another property, you know, for a license or whatever, can you hold up those licenses, saying, you know, You've screwed up six other properties and we're not letting you screw up three or four more. DEPT. COMMISSIONER VERDI: Yes. There's a process that we have. We're able to flag licenses and flag owners.
Okay. DEPT. COMMISSIONER VERDI: And 82 4/7/08 - Whole - 080022, 157, 160, 164, 165 we do have, in fact -- and in some cases, when we have -- our inspectors notice a pattern of a certain landlord, we'll actually get all of the properties of that landlord together in one package and take that type of package into Equity Court.
Okay, good. That's kind of what I was going to say, 'cause, you know, sometimes the person can be really a bad neighbor but then they get other properties and it just makes 'em worse neighbors. DEPT. COMMISSIONER VERDI: One of the difficult situations is, a lot of the tenants may know it's the same person. We, in fact, might get it as "that address, LLC."
A different name. DEPT. COMMISSIONER VERDI: And then another address is a different LLC. So it's kind of hard for us in some in cases to physically track the 83 4/7/08 - Whole - 080022, 157, 160, 164, 165 person that's behind the corporations.
Mm-mm. And I think, since we're complaining here, let me give you some -- I think what everybody admits is good news, it seems like the line down there in the MSB has really gotten a lot better as far as getting licenses and -- COMMISSIONER ELFREY: Thank you. Well, thank you. I hear that --
Thank you. COMMISSIONER ELFREY: That's on behalf of the staff.
Right. COMMISSIONER ELFREY: I mean, Deputy Commissioner Verdi and Evans and the folks at L&I have been tremendous over the last couple of months and are really trying to get that done.
I've heard that from a lot of people. COMMISSIONER ELFREY: Yeah. And the credit goes to them. 84 4/7/08 - Whole - 080022, 157, 160, 164, 165
And I know I -- and that's good because there were those individuals who just got frustrated and actually wanted to do the right thing and didn't do it because they just didn't want to wait that long. Now at least they don't have that excuse. DEPT. COMMISSIONER VERDI: There's no excuse anymore.
Right. COMMISSIONER ELFREY: And we want everyone to do the right thing, and we want to make it as painless as possible for them.
And along that line, Madam President, for the record, certainly over the years, Deputy Commissioners Verdi and Evans in their various positions have been very helpful, and I appreciate that. So I know you guys try to do the best you can sometimes, but it's -- the system is the problem, but 85 4/7/08 - Whole - 080022, 157, 160, 164, 165 we appreciate all of your help. Thank you. COMMISSIONER ELFREY: Thank you. DEPT. COMMISSIONER VERDI: Thank you.
You're welcome. I understand the budget director would like to come to the witness table to explain something that was addressed earlier. (Witness comes forward.)
Good morning, Madam President. Steve Agostini, Budget Director. Good morning, members. I understand and I apologize I wasn't here earlier. I had a personal matter I was trying to take care of. 86 4/7/08 - Whole - 080022, 157, 160, 164, 165 With respect to the issues that have been raised today but in other days, the issues with respect to the budget targets that were implemented by the prior administration and that we have been working with as we've put together the for the budget for '09 as well as the Five-Year Plan, with respect to the issues of the number of vacancies that have been clearly identified for a number of departments, including L&I, where services are very critical and those vacancies have not helped that situation, the Administration understands what your concerns and frustrations are. We're trying to get our hands around that. I would just ask you to be patient. Today, I think, marks the beginning -- or the end of the third month for us. For myself, I'm trying to get a handle on what all of that means and what the impacts are. 87 4/7/08 - Whole - 080022, 157, 160, 164, 165 As I've said to you and committed to this body and to you, Madam President, we're planning to get our hands around those vacancies, we're planning to get our hands around the target budgets and in an attempt to be sure that the services that you expect and that citizens expect are, indeed, delivered. I would just ask you to give us a little time, be patient with us as we try to work through what has been issues that have taken some time to get to this point, and it's going to take us a little time to get our hands around and try to resolve. We understand your frustrations; we've heard them loud and clear and we're working through them and expect that you will point those out and keep us to task on that, and I would appreciate that as well. But if you would give us a little patience and -- and we're 88 4/7/08 - Whole - 080022, 157, 160, 164, 165 trying to get our hands around it.
Thank you. We appreciate that. Okay. Councilman Green.
Thank you, Madam Chair. To follow up once again on the line of questioning from Councilman Greenlee, I don't understand why you can't serve process to people, and maybe we can go through that a little bit, because every LLC, every partnership, every corporation, every entity formed in the State of Pennsylvania is required to have an agent for service of process listed with the Department of State. If they don't, then the State will go after them and find out who they are at the State's expense, because every person, every LLC -- so you don't have to find the person behind the owner; you just go to the Department of State, you look up who 89 4/7/08 - Whole - 080022, 157, 160, 164, 165 their agent for service to process is, and you send the process there via certified mail, and you're done. They have notice, they don't show up, the court grants the relief you want, you go in and do it, it's a lien against the property, it's over. I don't understand with a extraordinary efforts people are taking to contact people behind the LLC. DEPT. COMMISSIONER VERDI: Councilman, I guess to answer your question, first of all, we don't serve our own writs; it's done by the court system. That's number one. Number two is, when I mentioned LLCs, I'm mentioning different properties. The Councilman asked, Could we track an owner? Now, LLCs, a lot of owners hide will behind --
I'm not -- I understand that point. 90 4/7/08 - Whole - 080022, 157, 160, 164, 165 DEPT. COMMISSIONER VERDI: Okay.
I'm not asking about that point. DEPT. COMMISSIONER VERDI: Okay. The third thing is, we want the owner to show up; we try our best to get that owner to show up. We don't want the court to give us, in some cases, relief by a fine, 'cause what happens with that relief by a fine, if the owner is served and the court -- and the person does not show up in court, the judge is going to normally give him a $5,000 fine. It doesn't solve the violation issue.
But why can't -- but if there's a violation and the owner doesn't show up, why isn't part of the relief you're seeking the ability to go in and remediate at the owner's expense, putting a lien against the property? DEPT. COMMISSIONER VERDI: The 91 4/7/08 - Whole - 080022, 157, 160, 164, 165 fine -- as far as the $5,000 fine that sits there, because that $5,000 fine does not go into the General Fund, we don't have the funds to go in and relieve every violation on every property.
So what you're saying is -- do you seek the relief of being -- when someone doesn't show up, do you then take it upon yourself to go remediate and put a lien against the property? DEPT. COMMISSIONER VERDI: The judge -- there is a lien put against the property by a court fine.
Do you go in and remediate? DEPT. COMMISSIONER VERDI: In some cases, we may remediate.
Why not in every case, because of a lack of funds; is that what you're -- DEPT. COMMISSIONER VERDI: More or less, yes. 92 4/7/08 - Whole - 080022, 157, 160, 164, 165
How much would -- here -- here -- if you get back, it's this big circle, right? You don't contact the individual owner, he doesn't show up, there's a lien put on the property, but you don't actually go in and do the work, so the situation continues to spiral downward for the people who live in that property. You can put more fines on them, but that just is a lien against the property. Nobody is taking care of the problem because you didn't go in and remediate the problem and put a lien against the property, and then -- and then get paid back based on (indiscernible) or we didn't take the property once there's a lien of over $850 and sharing it at sheriff's sale to let someone responsible come in and buy it and, you know, pay off the lien and do the (indiscernible). So what I'm suggesting is, the reason that L&I has the problem it has 93 4/7/08 - Whole - 080022, 157, 160, 164, 165 is because it doesn't go in and remediate the problem. We don't take the properties from these absentee landlords and we don't put them up for sale to someone who may be more responsible as a new landlord. It's a very simple problem to solve, and that is, just seek the relief to give you an order that allows you to go in and remediate whatever the cost to that is, apply it to the property, and then let's sell the property if they don't show up the next time they come into court. It's not difficult. The individual owner is an entity, not a person, and we can get whatever relief we want or service of process we want against that entity just by going to their agent for service to process that they list under the Department of State records. It's simple. I don't -- I guess I don't understand why our process 94 4/7/08 - Whole - 080022, 157, 160, 164, 165 doesn't solve this problem. Does anyone have any comment on that? COMMISSIONER ELFREY: We will look at the entire process and do a pleat review with the Law Department to see how we can make it better.
Okay. Well, I'm giving you a suggestion as to how to make it better. And if you need additional funds in your budget that allow you to go in to remediate where these situations occur, let us know how much that is, because that would solve the problem. If landlords knew if they didn't show up or their agent of service of process got a notice, that you would go in, fix it, charge 'em, and then if they don't show up next time, you'd sell their property out from under them, if knew that, they'd be there. But because there's no real enforcement, they know they can hide. 95 4/7/08 - Whole - 080022, 157, 160, 164, 165 I've heard you testify -- or L&I testify before that you can't find them, and that's a problem. L&I has created that problem by making that our process. That's all I suggest to you. So let's change the process so we can protect people who are -- COMMISSIONER ELFREY: Thank you for the suggestion, and we will look at the process.
I guess I'm almost out of time, Madam President? I have additional questions. Thank you.
Good morning. I'm going to piggyback on Councilman Green's questions regarding 96 4/7/08 - Whole - 080022, 157, 160, 164, 165 remediating properties of absentee landlords. And I'm sure in all Council Districts, we have these problems with these absentee landlords who just come in, particularly over the last couple of years, and purchase lots of houses, lots of lots, form their LLCs, and disappear. We have a house in our district that has been vacant for more than two years. People from the community clean it; I've even had relatives go out just as a favor to me to clean it. And the owners actually live in Saudi, Arabia, so they could care less about this particular property. And I have a whole disk of pictures of lots that speculators have purchased, and that's it. Now, if I call 'em and if they answer the phone, I'll tell them to clean, and they will go out and clean, but why should I have to call them? I 97 4/7/08 - Whole - 080022, 157, 160, 164, 165 shouldn't have to monitor this. So I was actually thinking that maybe whomever cleans the lot should send them a bill or just keep a record of them cleaning and have a bill. Is there a estimated -- I'm sure you work along with the CLIP Program. Is there a list of estimated costs for cleaning a lot, for remediating a house, for any of that? COMMISSIONER ELFREY: It --
I mean, what would be the average cost for that? I know it depends on the size, but -- COMMISSIONER ELFREY: Yeah, I don't have that information, ma'am, but to your point on the cleaning of vacant lots, the Vacant Lot Program, under the direction of the Managing Director's Office, does go out and clean lots, and they are subsequently billed, the owner of record, for that cleaning, including 98 4/7/08 - Whole - 080022, 157, 160, 164, 165 administrative costs.
So once the person gets the bill, who tracks whether they pay it? COMMISSIONER ELFREY: Once it's billed, it goes to the Department of Revenue, who is then responsible for liening the property. The Department of Licenses and Inspections does not track nor collect those dollars.
I'm sure you don't, but I just wanted to know who did that, because I'm wondering if any of these people have ever paid these fines. I mean, this is -- we have lots, we have too many lots that are just left and they're not cleaned. I mean, people don't care. COMMISSIONER ELFREY: I know.
And out in the neighborhoods, people care about that. I mean, I care when I ride by the same building or same lot week 99 4/7/08 - Whole - 080022, 157, 160, 164, 165 after week, you call it and it gets cleaned, then it grows again. I mean, it just has to be some kind of end. And I support the question that Councilman Green asked: Why can't we just get these people in court and put these properties up for sheriff's sale? COMMISSIONER ELFREY: I agree.
And maybe someone will buy it that will take care of it because it's becomes just a continuing, continuing headache. So I would like to see if you guys can work on coming up with a quicker method. It just seems like it takes too long to get people into Equity Court. It just takes too long. COMMISSIONER ELFREY: We agree and we will look at the process.
100 4/7/08 - Whole - 080022, 157, 160, 164, 165 You're welcome. The Chair recognizes Councilman Clarke.
Thank you, Madam President. I wanted to do a follow-up on the earlier questioning. I snuck in a question at the end about participation and you said yes. Let me elaborate a little more. Under the NTI Program, there was an aggressive, proactive program that -- I think it was called "The Emergent Contractor's Program" that actually went out and identified minority contractors particularly for demolition, and we got substantial numbers and actually created a number of businesses in the demolition field. Moving ahead, now that NTI is being phased out as it relates to funding, what's the process that's going to be utilized to ensure that we continue those aggressive numbers on 101 4/7/08 - Whole - 080022, 157, 160, 164, 165 participation of demolition? COMMISSIONER ELFREY: We are going to closely work with the Administration and MBEC and the Procurement Department and --
No, you are the Administration. COMMISSIONER ELFREY: Pardon me?
You said you're going to work with -- COMMISSIONER ELFREY: I'm sorry. I meant the Mayor's Office.
You are the Administration. COMMISSIONER ELFREY: Yes. The Mayor's Office, the Managing Director's Office, Procurement, MBEC, and the community to get as many minority contractors on board as we can.
What I'm asking you is that we had a very detailed, comprehensive program in place to deal with minority 102 4/7/08 - Whole - 080022, 157, 160, 164, 165 participation on this issue. And I'm -- I would like to think there's a little more beyond just, you know, the tradition "We're going to sit down and everybody work together." COMMISSIONER ELFREY: Mm-hmm.
Is that program, as structured, going to be eliminated or be changed? will it be continued? Or have you all not given any thought to that? COMMISSIONER ELFREY: We haven't gotten to that point yet but we will.
Okay. Eileen, do you want to give a little more -- DEPT. COMMISSIONER EVANS: Yeah. COMMISSIONER ELFREY: Eileen, do you want to comment? DEPT. COMMISSIONER EVANS: Councilman, we have not eliminated the ranges or the percentages that are 103 4/7/08 - Whole - 080022, 157, 160, 164, 165 required for minority participation. The change in the program from NTI to L&I is simply that the bid packages will be smaller. As opposed to 50, 60, 100 properties, we're looking at to 8 max, but the ranges are still in place 9 that were in place through Procurement 10 and MBEC, so haven't changed that 11 aspect is at all. 12
And those 13 ranges were what? 14 DEPT. COMMISSIONER EVANS: I 15 don't know the ranges; I'd have to look 16 that up. But whatever they are, we are 17 not changing those ranges. 18 As you said, we did work 19 closely, and NTI worked closely with 20 MBEC, to establish those, and with 21 Procurement, and we so have no intent 22 of changing the minority 23 participation. 24 We have -- the Emerging 25 Contractors Program came through the 104 4/7/08 - Whole - 080022, 157, 160, 164, 165 African-American Chamber of Commerce, and they're actually reaching out to be a part of NTI. We do have contacts with the Asian-American Chamber of Commerce we still maintain. Those who went through the Emerging Contractors Program are now active participants in the demolition program. And so the graduates are now active participants as prime contractors and not as subs. And so we can see that there's been some progress through that program.
And we will continue that process. DEPT. COMMISSIONER EVANS: Yes.
It may have a different name but it will be the same. DEPT. COMMISSIONER EVANS: Yes, exactly. COMMISSIONER ELFREY: And the goal is to continue that process and 105 4/7/08 - Whole - 080022, 157, 160, 164, 165 try to make it even better if we can.
Okay. And in terms of being able to track the participation, how is that going to be done? Because if the NTI process is phasing out, how will we know that those goals are being reached? DEPT. COMMISSIONER EVANS: We know which contractors are MBEC- and WBEC-certified, and we also know that labor standards has particular percentages of participation in place. And so the entire process involves a review by Procurement, a review by MBEC to ensure that those percentages are met.
So we should depend on MBEC -- DEPT. COMMISSIONER EVANS: Yes.
-- is what you're saying? DEPT. COMMISSIONER EVANS: Mm-hmm.
With the 106 4/7/08 - Whole - 080022, 157, 160, 164, 165 assumption that MBEC is going to be around? DEPT. COMMISSIONER EVANS: It's a part of the process.
Okay. DEPT. COMMISSIONER EVANS: Oh - - well, it's a part of the process. If MBEC isn't around in its present form, the requirements of MBEC will be absorbed by Procurement.
Okay. An earlier question about the dollar- amount for demolition prior to NTI, and now I'm being told it was approximately $20 million 'cause that set the threshold for the debt service on the NTI bond, and we're now talking about half of that. And I recall, prior to that, there was always concerns about demolition. And, unfortunately, the NTI did not get to as many properties that we had earlier anticipated, so there are still a significant number of 107 4/7/08 - Whole - 080022, 157, 160, 164, 165 vacant properties in the City of Philadelphia. And I'm glad to hear that you're talking about bid packages, 'cause we hope that that will deal with economies of scale and somehow reduce the price. My concern is that with $10 million, utilizing a process of bid packaging and the fact that the NTI significantly supported not only the traditional safety issues but also supported development initiatives 'cause we're in areas where we're going to clear space for development, we utilize NTI bonds. How do we think that the $10 million, given the fact that we're talking about 26, $25,000 per building, will reasonably make an impact on those issues? DEPT. COMMISSIONER EVANS: The $10 million is earmarked for demolition demolitions. L&I is not going to be 108 4/7/08 - Whole - 080022, 157, 160, 164, 165 involved in the development aspect of --
No, I understand that. DEPT. COMMISSIONER EVANS: Okay, all right.
But when you develop a track of land, you have to clear the site. DEPT. COMMISSIONER EVANS: Mm-hmm.
And what we've been doing is using demolition dollars to clear the site -- (Timing bell rings.) DEPT. COMMISSIONER EVANS: Mm-hmm.
So the question is, you know, if you reduced it by half of what it was prior to -- and I understand it was $30 million under NTI and prior to that it was 20. DEPT. COMMISSIONER EVANS: Mm-hmm. 109 4/7/08 - Whole - 080022, 157, 160, 164, 165
-- and now we're talking about 10, how are we going to realistically make an impact dealing with both life-safety issues and possible development issues? And if we're not going to use it for development issues, I need to know that 'cause we have to look at other pots of money to support that. DEPT. COMMISSIONER EVANS: Well, we are anticipating that out of the 10 million that we'll be able to demolish 400 properties, just using the bid packages. Whatever the other properties that need to be immediately addressed will be addressed by curbsides. And so, again, out of the 10 million, our expectations is that 400 properties will be able to be demolished.
And curbsides will come out of -- I'm sorry. Curbsides will come out of what 110 4/7/08 - Whole - 080022, 157, 160, 164, 165 budget? DEPT. COMMISSIONER EVANS: It's out the of the same pot of money, actually.
You sound like you're double-counting. DEPT. COMMISSIONER EVANS: No. 9 With 400 --
You said that 400 will be done -- (Indiscernible; parties talking over each other.)
Four hundred will be done out the 10 million, and then curbsides will be done -- DEPT. COMMISSIONER EVANS: Four hundred is total, including curbsides --
Including the curbsides -- DEPT. COMMISSIONER EVANS: All of this is coming out of the 10 million. 111 4/7/08 - Whole - 080022, 157, 160, 164, 165
Thank you, Madam Chair. I want to talk about the Department of L&I's proaction when it comes to seeing the things that we as Councilmembers see and the people that all of us represent. How many employees do you have in L&I? COMMISSIONER ELFREY: We're budgeted for 374.
Okay. When you're at that number, that tells me that you've got 374 pair of eyes that know more about -- even the clerical people, I think, eventually know what L&I's responsibility is. 112 4/7/08 - Whole - 080022, 157, 160, 164, 165 Do you still, in the spring, have inspectors work the weekends? What is the responsibility of an employee of L&I. If you see that lot that is dirty -- what amazes me, when I call L&I on occasion, something that's existed for a long, long time, I'm told, "We have nothing on this. This is, like, the first time that we've ever heard about this problem." I would hope -- and I'm sure you would, too -- that your organization is very proactive and out there looking for the things that the people that we work for are complaining about. The house -- I mean, I just can't imagine driving through a community and still seeing a home that is not boarded up, but there are probably hundreds that have not been. It takes a Councilperson to call L&I to get a house that is open 113 4/7/08 - Whole - 080022, 157, 160, 164, 165 closed? It shouldn't be that way. COMMISSIONER ELFREY: And it isn't, sir. We have clean-and-seal crews out on the street every day cleaning and sealing properties throughout the City. In fact, I think year, we're targeted to do about a thousand, and we'll probably do another thousand next fiscal year. So we do work proactively internally based on inspections by our inspectors. And if it's an open property that needs to be cleaned and sealed, it's referred to the clean-and-seal unit, and that action is taken.
I used that just as an example of many situations that L&I's responsible for. Are you behind on clean-and-seals? COMMISSIONER ELFREY: Yes. We believe we are behind on clean-and- seals. And that's a part of the package that I've asked the managers to 114 4/7/08 - Whole - 080022, 157, 160, 164, 165 put together to find out exactly what we're behind on and by how much. Early indications are, with the hiring, the nine clean-and-seal abatement workers scheduled for the first week in May, that any backlogs which we have will be cleaned up within a matter of less than six months.
Are you anticipating -- you said next year another thousand. Are you expecting that there are properties in the pipeline that will become abandoned? Where did you come up with the thousand next year if you're not behind? COMMISSIONER ELFREY: That's basically what we're budgeted for and based on the productivity of a clean- and-seal crew on the daily basis. So in other words, we have a budget, we know about how many clean-and-seals we can do per day. And that's our goal, about a thousand. 115 4/7/08 - Whole - 080022, 157, 160, 164, 165
So you will be able to tell us -- see, I'm a little confused on -- where is the thousand from next year; are they already out there or are they becoming abandoned as we sit here? COMMISSIONER ELFREY: Well, where we want to be is, it's sort of like the inventory on the shelf. I want our folks to tell me what our beginning inventory is, and I think this will answer your question. Do we have -- and I'm just though this number out there -- 5,000 open properties right now. During the year through our inspection process, how many do we add to that, okay? And how many do we end up at the end of the year based on what we can do? And that's where we need to be, and that's where we will be.
Do you -- if you come back at us and find out that 116 4/7/08 - Whole - 080022, 157, 160, 164, 165 -- and I'll let my colleague speak on his question directly 'cause I'm sure he'll get it out better than I will. If you determine that you've got a issue here with several hundred backed up into the pipeline, what can you do as a manager? Can you hire contractors? can you put more people on? I mean, I can't imagine just seven people -- you have to get trucks for them, equipment. Is there trucks parked that this seven people are not able to get out of the garage? Or how do you deal with a backlog if, in fact, you have one? COMMISSIONER ELFREY: Well, as part of the Mayor's Strategic Plan, we're going to work smarter, better, and faster. So we're going to take a good look at those numbers, we're going to take a good look at our productivity levels and see where we are at the end of the year. 117 4/7/08 - Whole - 080022, 157, 160, 164, 165 I don't know if we're going to need more money in the budget. I don't know if, by working smarter, better and faster, that we can really eat into that backlog and we won't need more money in the budget. It's -- but at the end, we're going to have to take a look at those numbers and make those decisions.
I come through -- and no disrespect to Streets or L&I, and I know the clock's going to sound momentarily, but I took a little shortcut coming off of Allegheny Avenue to get up to Germantown Avenue, and there were -- I could not imagine that I was in a major city; it was so, so bad. I mean lots just strewn with debris and other -- and I know the District Council office has been trying to get it cleaned up. (Timer bell rings.)
So in my opinion, just looking at some of the 118 4/7/08 - Whole - 080022, 157, 160, 164, 165 places that I go, somebody else should have seen that because, I understand from the neighbors, it's been like that for months. COMMISSIONER ELFREY: If you pass that information -- I talk to Josh Cohen from your staff; quite often he calls me. If you have him provide those addresses, I will be glad to pass that on to Tom Conway in the Vacant Lot Program.
Okay, good. Thank you, Madam Chair. And can -- Councilman Green had a quick question on that.
I just have one question that I would like to ask before recognizing Councilman Green. Do we have a backlog for the 119 4/7/08 - Whole - 080022, 157, 160, 164, 165 demolition of eminently dangerous properties? DEPT. COMMISSIONER EVANS: No, no, we don't. We defined "eminently dangerous" such that if we cited a property as eminently dangerous, our responsibility is to immediately demolish it, and so we are current with all ID properties.
How about dangerous properties? I know we label them either "dangerous" or "eminently dangerous." DEPT. COMMISSIONER EVANS: We only use the two categories of eminently dangerous or unsafe.
All right. DEPT. COMMISSIONER EVANS: So there are a number of unsafe properties but those properties are not in threat of collapse or eminent danger.
Thank you very much. 120 4/7/08 - Whole - 080022, 157, 160, 164, 165 The Chair recognizes Councilman Green.
Thank you, Madam Chair. I'd like to spend a second talking about online applications. I think the PowerPoint presentation on , there was a report issued in October of 2001 by the Managing Director's Office, L&I, and the Commerce Department that said that 71 percent of permits and 82 percent of licenses issued by L&I were routine, and as a result, the application approval process for them could be automated. Of the 71 and 82 percent identified in the October 2001 report, what percentage have online applications? COMMISSIONER ELFREY: Sir, I have not seen that report, but I will get that information for you.
If you could 121 4/7/08 - Whole - 080022, 157, 160, 164, 165 provide that to the Chair. What percentage of your applications are actually made online for permits and licenses? COMMISSIONER ELFREY: I don't have that information in front of me. I can tell you, the most recent -- I believe it was the housing inspection licenses that we made available online in January, I believe it was percent 12 as of this date were filed online, 13 which is encouraging. 14
Um -- 15 COMMISSIONER ELFREY: Bridget, 16 did you have something to add to that? 17
I don't know the exact percentage of our licenses and permits that we do have online, but we do, as the Commissioner stated, the housing renewal license just went on. You can get a fast-form building permit online, which is your building permits that don't need plans. You can also get your real 122 4/7/08 - Whole - 080022, 157, 160, 164, 165 estate certs on line, which has been a big one for us. Most people just -- that requires a simple zoning check and then, automatically, someone's sent back their real estate cert.
Right. If you could provide the Chair with a chart showing the comparison of the permits and licenses that were recommended to go online in 2001 compared to which are actually on line -- COMMISSIONER ELFREY: Mm-hmm.
-- and then also tell us the total percentage of permits and licenses that are applied for online. And, also, do you know, is there any additional cost to the customer for applying online versus -- or paying a fee online versus coming in and paying it? COMMISSIONER ELFREY: In some cases, there are, sir, depending on the 123 4/7/08 - Whole - 080022, 157, 160, 164, 165 circumstance, but our goal, I think, is to reduce those costs because, as we get more people to apply and get their permits and licenses online, at some point down the road, I would think that our costs would be reduced and we can pass that onto the customer.
Well, if 10 percent of just this one item, housing 11 approvals, are on line, that's 17 12 percent fewer pieces of paper that are 13 coming in just on that exact process at 14 L&I. 15 COMMISSIONER ELFREY: Exactly, 16 exactly. 17
And if you haven't captured savings from that, obviously, you should be redesigning your work-flow processes to do so. COMMISSIONER ELFREY: And we will. Sir, could I have the name of that report? I'm sorry. You mentioned a report back, I think it 124 4/7/08 - Whole - 080022, 157, 160, 164, 165 was, seven or eight years ago?
It's an October 2001 report prepared in joint effort by the MDO's office, L&I, and the Commerce Department. I don't have the exact name of the report. COMMISSIONER ELFREY: Okay.
My -- I'd be happy to have my staff forward it to you if you would like. COMMISSIONER ELFREY: That would be great. I would appreciate that.
Okay. The other thing I wanted to talk about was, it's my understanding that there are available commercially-permitting processes that would allow people to submit plans electronically, allow those plans to be automatically sent to the Water Department, the Streets Department, and other places so that they don't have to fill out 14 different applications, et cetera. 125 4/7/08 - Whole - 080022, 157, 160, 164, 165 Can you discuss where the Department is on that? And I think in October 2007, there was testimony that you were looking at such changes in your processes in coordination with Water, Streets, and the other people who have to review the same plans. COMMISSIONER ELFREY: That's correct, sir. And, as a matter of fact, staff have identified a couple of packages that are out there currently being used in other cities. We are going to be meeting with Streets, Planning, and the Water Department -- I think the meeting is tomorrow -- to discuss what our needs would be internally to implement such a process. I mean, I think that's a big win for the development community and it's a big win for the City departments if we can get to the point where we're submitting electronic plan reviews and approving them online so 126 4/7/08 - Whole - 080022, 157, 160, 164, 165 that not only we see what's going on, but our customers see what going on at the same time. We are in very preliminary discussions about this process and about these programs that are out there. But, as I said, we are going to meet for the first time tomorrow to see what that might look like for the City.
Do you have an estimate of what the efficiencies and/or the savings are? COMMISSIONER ELFREY: No, not at this time, sir. It's too early in the game.
Would you please provide those to the Chair when you get them? COMMISSIONER ELFREY: Absolutely. (Timer bell rings.)
Thank you. (Councilwoman Tasco assumes 127 4/7/08 - Whole - 080022, 157, 160, 164, 165 position as Committee Chair.)
Thank you. Thank you, folks. Along the lines -- as I was listening to the testimony earlier from the office, President Verna and you folks were talking about the public relations campaign, and I wanted to go on record the importance of making sure that any education campaign that we have be done in several different languages, which is one of the challenges that we face. And I say that, understanding that I have a district with probably one of the highest noncompliance issues as it relates to both businesses and housing. But, also, as I work with folks, you know, their inability to navigate how to come to compliance because of sometimes our lack of 128 4/7/08 - Whole - 080022, 157, 160, 164, 165 coordination. So I want to make sure that I go on the record saying that. I also notice that in your contracting, on your minority contracting, there were no Hispanic firms. Is there a reason? COMMISSIONER ELFREY: I cannot speak for the last year as to why there were no firms, but I can promise you that we will do everything in our power to make sure for the coming fiscal year that there will be.
Okay. Going back to some of the discussions around NTI and CLIP, one of the things that I hear -- and I get inconsistent messaging around it -- is, all of the remediation work that we do doesn't necessarily get liened, and it didn't under NTI, some of the work that we're doing. Does every service that we provide, as it relates to remediation, 129 4/7/08 - Whole - 080022, 157, 160, 164, 165 being liened, and at what rate? And if you could share that with Chair, I'd be very much interested. I have about 300 vacant properties, lots that we have as a result of our work through NTI, so I want to know, moving forward, that they are in a pipeline for potential acquisition. COMMISSIONER ELFREY: Just one point of clarification, Councilwoman: At what rate? What do you mean by that?
If we provide a clean-and-seal on a particular lot, how are we liening those properties. COMMISSIONER ELFREY: Oh.
What's the rate that we're charging? COMMISSIONER ELFREY: Oh, I understand, okay.
Those types of things. That would be 130 4/7/08 - Whole - 080022, 157, 160, 164, 165 important for me to see. Years ago, probably '93, '94, there was a District Services Office that on American Street, and that was very helpful in helping us direct people there for some basic questions, especially when folks were doing some minor work, remods in the house that didn't require major plans. What types of services are we offering in the six different locations where we have staffing and sites like the Northeast City Hall at sixth and Lehigh as it relates to L&I? COMMISSIONER ELFREY: Presently, we are not in the Northeast City Hall. We are looking internally to expand, and I don't know at what rate or when yet some of the services we offer. I believe Eileen Evans' group is starting in May or June, a Saturday service, where all of the district operations will offer appointments to 131 4/7/08 - Whole - 080022, 157, 160, 164, 165 those that want to do minor home repairs and want to get permits for that and would need advice on what the L&I process is. And we're going to be rolling that out in a public relations campaign, once all the T's are dotted and the I's are crossed. (Laughter.) COMMISSIONER ELFREY: As far as the other services, could you just repeat your question again?
What are we doing at Sixth and Lehigh? I know a there's a staff person there; what's the function of that staff person there from L&I? COMMISSIONER ELFREY: Go ahead, Eileen. DEPT. COMMISSIONER EVANS: That particular office is a fully-staffed district office, and so clerical there are several building inspectors there, there's clerical support staff, and 132 4/7/08 - Whole - 080022, 157, 160, 164, 165 their function is to address within defined boundaries all of the building- and construction-related complaints that are in that particular service area.
So I can go over there and get information? DEPT. COMMISSIONER EVANS: Yes.
That's not the feedback that I've gotten. I don't know if Councilman Clarke -- DEPT. COMMISSIONER EVANS: Well, it is a fully-staffed -- I mean, if they're not providing service, I would love to know that.
I would like to know what services we're supposed to be providing over there. DEPT. COMMISSIONER EVANS: Okay.
That would be helpful. And when you say "fully staffed," what does that mean? Does that mean that anybody can go in 133 4/7/08 - Whole - 080022, 157, 160, 164, 165 there and pretty much get answers to some of the basic quality-of-life questions that we're talking about? DEPT. COMMISSIONER EVANS: No. 6 Those -- the district offices are construction-related district offices, so it's not necessarily -- the staff is aware of clean-and-seal activities, but they don't necessarily deal with quality of life. These are building inspectors, plumbing inspectors, and so we're dealing with construction-related issues in the local district offices.
So you're reviewing plans; no permits get issued out of there? DEPT. COMMISSIONER EVANS: Fast- form building permits that do not require plans can be issued from the district offices.
I was not aware of that. Okay. Well, I'd like to get a full scope of services -- DEPT. COMMISSIONER EVANS: Sure. 134 4/7/08 - Whole - 080022, 157, 160, 164, 165
-- that are being offered there, because that's where I was getting to. The district office that we had before, there was some issuance of some of the permits on American and Lehigh, but I -- DEPT. COMMISSIONER EVANS: If I may, as the Commissioner stated, we are reviewing internally whether or not we can actually, and should, expand services in the district offices so that you can receive licenses in the district offices and a different variety of permits in those district offices. Traditionally, it has just been construction-related.
Okay. COMMISSIONER ELFREY: I'd like to emphasize we're reviewing that.
Well, it seems to me that we have several different types of offices throughout the City probably strategically located, and as we look at becoming 135 4/7/08 - Whole - 080022, 157, 160, 164, 165 more customer-friendly that we would look at all of the staffing. We have six different sites with L&I staff. (Timer bell rings.) COMMISSIONER ELFREY: Absolutely. We need to leverage the resources that we have in the field throughout the City to provide the best service that we can, and that's some of the things that we're looking at.
Good morning and thank you. I'm Councilwoman Tasco, and I just -- I -- probably you've gotten this question about inspections, but I want to talk about the large apartment buildings. We have one building in the 9th District called the Linley Towers, and it has a history of inspection violations and issues. And this has been a long, long, long, long, 136 4/7/08 - Whole - 080022, 157, 160, 164, 165 long-term problem. And they store trash in the wells. At one point, I thought we tried to close this building down, but they continue to operate. And so what follows a complaint? And when you file your -- what follows your inspection and what follows when there are violations and the violations pile up and pile up? And then they're allowed to continue to remain open. DEPT. COMMISSIONER VERDI: Councilwoman, to address that issue, we recently inspected that building two weeks ago, all right? The building -- the case itself is in Equity Court. We were prepared to evacuate the entire building based on complaints that we were getting in reference to fire alarm. The problem with the building is, to evacuate a building with a hundred people is somewhat an issue. 137 4/7/08 - Whole - 080022, 157, 160, 164, 165 We have been working with the owner. The case has got a continued date in Common Pleas Court, and I'll be happy to give you a full report on it when I get back. I'm not quite sure what the attorneys talked about last week. But we do know that the firearm alarm system is back in working order. Most of the property violations have -- are starting to be complied. We have an inspector that's supposed to go up there this weekend again to look at some issues with the management company, but the property is coming into compliance steadily. Unfortunately, it did take quite some time to get that person again into Equity Court, which we did. And we were prepared again to evacuate the building even though it had a hundred residents.
I think we evacuated a building similar -- it may 138 4/7/08 - Whole - 080022, 157, 160, 164, 165 have been the same building -- some years back, and the Department of Human Services helped to evacuate the people and find locations for them. So if that's an issue, maybe we -- have you talk to the Department of Human Services to try and -- DEPT. COMMISSIONER VERDI: Our manager from Housing did talk to Human Services. We also have been coordinating with the Managing Director's Office of Emergency Services if we had to evacuate the building. And, again, the good part of it is, the fire alarm systems and the safety systems are back in working order. Now it's a matter of having the inspectors go through each individual violation with the courts to make sure that the quality-of-life issues are being addressed.
Yeah, but what happens, they go into court, they make these promises, they do a little 139 4/7/08 - Whole - 080022, 157, 160, 164, 165 bit of a fix-up, and then they start the next week back to business as usual. That's why there's such a long history. They continue to collect rent and then they let the services, the quality-of-life services decline, and then we -- it's a constant circle. It's going round and round and round all the time. (Applause.) DEPT. COMMISSIONER VERDI: In this case and other cases, we do notice that's what happens when they have a court case. The court case in this matter, we're asking the Law Department to have a request put in where this case stays open. If, in fact, this person does not stay in compliance, it would be immediately -- we could immediately order him back into court. It's not similar to a Municipal Court hearing; this is a Common Pleas hearing. 140 4/7/08 - Whole - 080022, 157, 160, 164, 165 We can have that added to the order, so we could have an open order that could stand for two, three, four years if we have to, and it's something I have to discuss with the Law Department today, as a matter of fact in reference to --
Who's -- DEPT. COMMISSIONER VERDI: -- allowing us to go back there and --
Who in the Law Department is handling this case? DEPT. COMMISSIONER VERDI: I'd have to get that information for you.
If you could get that to me -- DEPT. COMMISSIONER VERDI: Sure.
-- and would you get me the court date, please? DEPT. COMMISSIONER VERDI: Absolutely.
All right. Thank you. 141 4/7/08 - Whole - 080022, 157, 160, 164, 165 What is the inspection process -- this is an ongoing problem for us also -- in the commercial districts on trash pickup? The Zoning Board of Adjustment, the business owners are told that they're required to have commercial trash pickup for their businesses; however, they do not have commercial trash pickup. And on Fifth Street, they put their trash out on Sunday. And also in some of the other business districts in my district and, I'm sure, in other districts, trash is put out on Saturday. It sits over Sunday if trash is on Mondays. And they're supposed to have commercial trash pickup. What are you all doing to work with these businesses to let them understand what the requirements for trash pickup are? DEPT. COMMISSIONER VERDI: Well, one of the issues -- not only -- 142 4/7/08 - Whole - 080022, 157, 160, 164, 165 the Zoning Board does, in fact, in some cases -- I shouldn't say in all cases -- require commercial trash pickup, but there are some businesses that are not required to go before the Zoning Board. Now, the issue as far as trash pickup, Commissioner, I think that would have to be addressed by the Streets Department.
Yeah, but if they are in violation -- because the Streets Department will pick the trash up. They pack it in such a way that it's not something -- it doesn't look like a bin requirement, so you have these small boxes all along the sidewalk littering the sidewalk. So the Trash Department, when they come by on Monday, they pick the trash up, but they should have commercial bins, they should have large bins for their trash but they don't. 143 4/7/08 - Whole - 080022, 157, 160, 164, 165 This is nothing new; it's been going on for years, ever since I've been there. COMMISSIONER ELFREY: Ma'am, if you'd give us those exact locations or I could reach out to your staff --
I would love to. COMMISSIONER ELFREY: -- today or tomorrow where they are, we'll look into that for you.
Well, why -- what I think ought to happen, there has to be a collaboration between L&I -- COMMISSIONER ELFREY: And the Streets Department.
-- and the Streets Department. COMMISSIONER ELFREY: Absolutely. That's exactly what we --
-- on how you're going to enforce the Code. COMMISSIONER ELFREY: Yes. 144 4/7/08 - Whole - 080022, 157, 160, 164, 165
That's what I think has to happen. COMMISSIONER ELFREY: You're right.
Because if the Trash Department picks it up -- because we're going to call if the trash is not picked up, but the businesses don't have a -- they get away with it, so they don't comply. COMMISSIONER ELFREY: Right.
The other thing about these commercial trash bins, they're supposed to be enclosed, and there's no enforcement. I don't know how long you've been in the department, so these issue are ongoing. COMMISSIONER ELFREY: Three months, ma'am.
I want you to know that this is a problem. Another thing, working with the trash bins -- well, that's your area on the trash bins. They got to 145 4/7/08 - Whole - 080022, 157, 160, 164, 165 be required to have those trash bins, so the trash is out -- (Indiscernible; parties talking over each other.) COMMISSIONER ELFREY: They should have a licensed Dumpster. Those that are required should have a licensed Dumpster. It should be graffiti-free, by the way, and that's --
But there's no enforcement. COMMISSIONER ELFREY: That's a pet peeve of mine. And it also needs to be closed; it shouldn't be overflowing. And, again, we'll get with the Streets Department.
Well, I know you have some staffing issues, but the enforcement and the -- the inspection and enforcement are the two most important things in the L&I Department because the L&I Department, 146 4/7/08 - Whole - 080022, 157, 160, 164, 165 I've always been supportive of you having more staff because you have the greatest impact on the quality of life for people in this city because of the various issues and the areas that you have to cover. So I certainly hope that our mayor will find within his budget to be able to hire more people so that we can take care of some of the issues that my office has been -- I've been here twenty years and these problems are twenty years old. They never get resolved.
Commissioner, a few years ago, this Council passed legislation requiring Dumpsters to be licensed, and Mr. Haigler, I believe, was the person that I was speaking with. And we were 147 4/7/08 - Whole - 080022, 157, 160, 164, 165 told because of the delay for implementation was that it was going to roll out at the beginning of the year. Would you provide to the Chair a report on where we are with the legislation that this Council passed about leaving Dumpsters in the right-of-way, all of the issues associated with Dumpsters. Some contractors will drop them in Center City in the operating line. So that legislation -- and I've been very patient. L&I was telling me that they needed time to get this all together. So if Mr. Haigler, when the Chair feels it's appropriate, because I've seen no 19 improvement, and we have legislation signed by the Mayor, and we still -- and there's Mr. Haigler, so if you could let him hang closer here for a minute -- COMMISSIONER ELFREY: Yeah. And Mr. Verdi's here -- 148 4/7/08 - Whole - 080022, 157, 160, 164, 165
And then when it's my turn again, I would like to get an update on where we are because I don't like wasting my time on this. DEPT. COMMISSIONER VERDI: Councilman, I think you have -- there's two different issues that the Councilwoman is dealing with trash Dumpsters; your issue is construction Dumpsters.
I'm talking about Dumpsters, Dumpsters that are -- DEPT. COMMISSIONER VERDI: These are -- the legislation that Mr. Haigler had passed is in reference to construction Dumpsters.
I'm talking about -- it's about all kinds of Dumpsters. I'm talking about Dumpsters, construction Dumpsters that are -- DEPT. COMMISSIONER VERDI: But that ordinance that -- you just 149 4/7/08 - Whole - 080022, 157, 160, 164, 165 referenced the ordinance. The ordinance that you spoke to Mr. Haigler about is in reference to construction Dumpsters. The legislation was passed and signed by the Mayor, and it is being enforced between the Streets Department and our construction people.
Where's the licenses for the Dumpsters? DEPT. COMMISSIONER VERDI: The licenses for the Dumpsters come through our office but are approved by the Streets Department.
Okay. We need to get together on this because this is a problem. These Dumpsters are all over the place, and they're supposed to have licenses. I ask for the licenses, they say, "Oh, we're waiting for L&I," so I think if there's confusion here, we really need to get our arms around it. DEPT. COMMISSIONER VERDI: Just to give you some background as far as 150 4/7/08 - Whole - 080022, 157, 160, 164, 165 Dumpsters are concerned, if you see a Dumpster on the sidewalk, the Dumpster on sidewalk has to be approved by the Streets Department as a public Dumpster or -- it's not a private Dumpster. If a Dumpster is on private property, it's considered a private Dumpster, and we have the licenses for both of those. The third type of which you're speaking about is strictly to deal with construction debris at a construction site, and that's what that legislation was for. And we'll get you the information.
Okay. Thank you. And I'll come back and talk to you about that. Thank you for that opportunity, Madam Chair.
Thank you very much. The Chair recognizes Councilman Green. 151 4/7/08 - Whole - 080022, 157, 160, 164, 165
Thank you, Madam Chair. I just want to say that you guys are where the rubber meets the road, and that's why we all have so many questions. You know, many of the quality-of-life issue, as Councilwoman Tasco was saying, are affected by how effective, efficient, you know, better, smarter, faster your office is. And so I think we're all looking for ways to recommend solutions or possible efficiencies or advantages that you may consider and decide to take advantage of or not. But I just want to say, you know, my office, every dealing we've had with L&I so far has been extremely positive. You have been effective and efficient. And, you know, I want to acknowledge that and thank you for that and don't want you to think that because we're asking questions on the 152 4/7/08 - Whole - 080022, 157, 160, 164, 165 negative side that -- or, you know, it may sound like criticism, but you should take it as our way of suggesting perhaps how to be even better. COMMISSIONER ELFREY: Thank you, Councilman. I appreciate that. And we're always open to suggestions. We want to think outside the box, and we want to be in a partnership with the citizens of Philadelphia and Council to help us do that. And we welcome --
In particular, your electronic initiatives -- although, I think, for my tastes, we're moving too slowly on something that I applaud you on. You did -- you were one of the first departments to have forms up some time ago in the Street administration, and I think it can bring tremendous savings or perhaps decrease backloads of cases if you -- the more efficient you get 153 4/7/08 - Whole - 080022, 157, 160, 164, 165 with that, and I encourage you to continue that activity as quickly as possible. And if there is not money in this year's budget to make those changes if you could provide what you need for the Chair in order to implement a full paperless system to the extent that that's practicable, that's something that I'm looking to support. Thank you very much for your testimony today. COMMISSIONER ELFREY: Thank you.
Let me just ask you another question. What is the diversity of the staff of L&I?
Currently, we are at -- we have: About 40 percent of our staff is white. 53 percent black. 5 percent Hispanic. 154 4/7/08 - Whole - 080022, 157, 160, 164, 165 percent Asian. And then we have percent are "other." (Laughter.)
That's a category that's established by the Central Personnel Unit. It's THE people that don't actually want to put -- they actually go into the "other" category.
Because, you know, the City is very diverse and if you look at the diversity of the City, particularly when you're dealing with the commercial community, and you look at the racial makeup of the 155 4/7/08 - Whole - 080022, 157, 160, 164, 165 business owners, it would seem to me that we would try to increase that number because we do have a number of Asian merchants where communication is very important. And if we have people who could really communicate with the merchant to work with them on some of the issues, we might have a better response because, you know, they come to the country, they don't know the -- understand all of the laws, and they feel a little intimidated sometimes in responding. So I think if we could find a more effective way to be more inclusive of that community and then deploy those employees to those areas where you have a diverse community and require that connection, that's very important when you're dealing with people. DEPT. COMMISSIONER VERDI: Just, Councilwoman, so you understand, 156 4/7/08 - Whole - 080022, 157, 160, 164, 165 we do take that into conversation, especially the fact that we do have a language line in our concourse and is available at other offices for someone that doesn't speak or doesn't understand English, and it has quite a different variety of Asian dialects. We also have -- we also, if we need to, have the Department of Human Services, and one of the other issues that when our inspectors are out in the field, we do instruct them, if they have a problem with the language issue, that we do sometimes contact the Police Department, who will send us someone that speaks the dialect or language of the person that we're trying to bring into compliance.
Well, it's much more effective if you have somebody on the staff who can speak the language and not have to call the Police Department. Now, when you're talking to a businessman about trash 157 4/7/08 - Whole - 080022, 157, 160, 164, 165 containers and you call the Police Department, in some of the countries they came from, that's very intimidating. So if there's someone on staff who can communicate and educate at the same time about what their requirements are, I think it would be much more effective in terms of getting the results that we would like to have. COMMISSIONER ELFREY: I agree with you, Councilwoman, and we'll work with Central Personnel on that.
At one time, we had asked the mayor Ed Rendell at the time to hire more people in the Commerce Department because they had these business action centers. COMMISSIONER ELFREY: Mm-hmm, the Mayor's Business Action Center.
And we asked them to make sure that there was a diverse staff so that, whether it's 158 4/7/08 - Whole - 080022, 157, 160, 164, 165 Latino or Columbian or whatever, there's that connection 'cause people relate to people they feel comfortable with. COMMISSIONER ELFREY: You're right and we agree.
So that's something I think that would be a good idea. COMMISSIONER ELFREY: Thank you.
Thank you. The Chair recognizes -- is Councilman Clarke around? Maybe he'll come back, but for the moment, we will recognize Councilwoman Sanchez.
Thank you. Let's talk a little bit more about CLIP. And as we move forward with the funding not coming through NTI, how is it that we're looking to -- 'cause we've talked about it and I think the Mayor's talked about it, 159 4/7/08 - Whole - 080022, 157, 160, 164, 165 we've all talked about it and we've all ran on it, expanding a CLIP-like program in other parts of the City because of its intensive service. So what are we doing next year that's going to be different, better? COMMISSIONER ELFREY: In reference to the CLIP Program, that is run out of the Managing Director's Office.
Okay. But it has L&I staff assigned to it? COMMISSIONER ELFREY: Yes. Yes, it is does.
Okay. So then let me ask you, based on L&I's needs and resources. What would you say we could do differently in moving forward on the program to be able to expand it? COMMISSIONER ELFREY: To expand the CLIP Program?
Mm-hmm. COMMISSIONER ELFREY: What we 160 4/7/08 - Whole - 080022, 157, 160, 164, 165 would do differently?
Mm-hmm. Given the resources that we're talking about, is expansion possible? because it would require more L&I support. COMMISSIONER ELFREY: I don't know the answer to that question yet. We would have to know what the expansion would look like, where it would be, and how many folks. I don't feel comfortable answering that question right now, ma'am.
Okay. As it relates to -- again, I'm going to go back to business-compliance issues in looking at cease-operations, I know for a fact that I have a lot of folks who skirt the permit process for a lot of reasons; some of it is financial, other is lack of understanding of the system. And I want to do my part in ensuring people that if they comply, that we will be supportive, but I have 161 4/7/08 - Whole - 080022, 157, 160, 164, 165 encountered situations where we asked people to go through the permit process, which triggers an inspection, which immediately triggers a cease-operations, leaving people frustrated that I'm telling them to go, you got to go get your permits, you got to get your stuff in order. They go in, you know, and then when the inspection is triggered, there's a cease-operation. How can we better close that loop? Because to me, the cease-operation, if there's a public safety measure, is important, but we also are not articulating what compliance issues they need to come -- COMMISSIONER ELFREY: Exactly. And that's a partnership with the community, with City Council, with L&I in the City. We need to do a good job of educating our customers and constituents so that if someone wants to start a business in the City and 162 4/7/08 - Whole - 080022, 157, 160, 164, 165 they're doing due diligence in trying to do the right thing and get the permits and the license, which is, of course, what we want them to do, they have a full understanding of the process is and what they need to comply with and how so it doesn't trigger a cease-operations.
When trigger a cease-operation, what do we do to folks? We go in, we put up that red sticker; what do we do, what do we say to folks? COMMISSIONER ELFREY: Dominic, do you want to -- DEPT. COMMISSIONER VERDI: First of all, Co9uncilwoman, I think it's a misconception on how fast we issue a cease-operations.
Mm-hmm. DEPT. COMMISSIONER VERDI: A cease-operations does not get triggered by someone coming in and asking for a permit. 163 4/7/08 - Whole - 080022, 157, 160, 164, 165
Mm-hmm. DEPT. COMMISSIONER VERDI: The inspection, that process -- if somebody came in and asked for the permit, it's probably 'cause that inspector three or four times prior, before, to look into the process.
Mm-hmm, mm-hmm. DEPT. COMMISSIONER VERDI: And why I say that, if the inspector went out to the location and it didn't have the proper zoning, zoning is usually a three-step processes that will take -- before we issue a cease-operations, there's the initial violation, then there's an intent-to-cease order and an administrative hearing that will call a person into. Then there's an intent-to- cease, which we try to give in that last warning and say, We're coming back in five days if you don't try to follow this process. And then we 164 4/7/08 - Whole - 080022, 157, 160, 164, 165 initiate the cease-operations. If we initiate the cease- operations and the business must be closed, we turn the paperwork over to the Police Department, who then enforce the cease-operations.
Question: In all those times when we say we have an intent, all of the different processes, are we giving to folks in writing what corrective actions they must meet and how they come back and trigger the reinspection? DEPT. COMMISSIONER VERDI: Absolutely. They have a copy of the violation notice. The violation has a phone number. If they do not understand what's in that violation -- and there is a written part of the Code that explains to them what they need to do to come into compliance. There are several phone numbers or one phone number for that inspector on that form, which they can 165 4/7/08 - Whole - 080022, 157, 160, 164, 165 get the information.
Is that phone number regularly answered? And I'll give you an example. I had a situation, and Commissioner Evans had to reassure me where there was in error an eminent domain sign posted. And I told my staff, let's go through the process and call the number. We called the number connectively five days at all different times and never got a pickup. DEPT. COMMISSIONER VERDI: I could tell you the phones at Business Compliance are operational. Between the hours of 8:30 and 4 o'clock every day, someone answers the phones that have anything to do with business compliance. And there's also -- if those phone lines aren't answered, there is -- the businesses are aware that 166 4/7/08 - Whole - 080022, 157, 160, 164, 165 there's licenses -- on their license there's also phone numbers that could be called, and they are answered. (Timer bill rings.)
But this is a personal -- we just did this two weeks ago. DEPT. COMMISSIONER VERDI: I don't know --
And we called at all times. I had them start calling from 8:00 in the morning. We called a different day around 10:30. So I don't know how we do a job -- how do we monitor to make sure those calls are being answered? because then, you know -- DEPT. COMMISSIONER VERDI: Do you have that --
I shouldn't have to call, you know, shouldn't have to ask Eileen Evans just for assurance that it was in error; we knew it was in error. We wanted 167 4/7/08 - Whole - 080022, 157, 160, 164, 165 someone do give us something in writing to assure the owner that it was in error. DEPT. COMMISSIONER VERDI: Could your staff e-mail us or send us that number? And we'll look into why that number wasn't answered.
Yes, we'll share it with you. I would also like to ask -- and I'll come back. All of these packages that we're talking about, I'd like to -- if I can get a sample package of those and I want to say if there's an English and a Spanish one when necessary, when we're giving out some of these -- specifically when we go out and we know that the business owner does not speak English or doesn't do it readily and -- 'Cause I had a situation where a woman was put through Zoning because she was doing an accessory sign outside. She went to the Zoning 168 4/7/08 - Whole - 080022, 157, 160, 164, 165 hearing and did the phone call situation for the translator. And at the end of the day, they told us don't put the sign out. She had spent all of this money and had spent three months in a process when it was just a sign that she sometimes posted her specials on.
Well, I just have to say you have a tough department. (Laughter.) COMMISSIONER ELFREY: And we're up to the challenge.
And we really want to help you. COMMISSIONER ELFREY: We have a lot of good folks at L&I and --
You really do. COMMISSIONER ELFREY: And we have a lot of --
But you don't have enough folks at L&I; that's 169 4/7/08 - Whole - 080022, 157, 160, 164, 165 the problem. COMMISSIONER ELFREY: We have a lot of good folks at L&I that really care and do a good job, and we're going to leverage that.
And I wasn't here earlier, but I see one of the comments that the President had made about your public relations campaign. You know, we've been in Council and we go to the community meetings two and three times a week, and it's the same scenario over and over again. We think the public knows -- they know what to do in terms of their neighborhood. What we lack is enforcement. That's what we lack, enforcement. (Applause.)
So if you have money to spend, I would rather you hire whoever -- more staff to provide 170 4/7/08 - Whole - 080022, 157, 160, 164, 165 the inspections and the enforcement and whatever is needed to make sure that things get taken care of. And then you'll -- the public will know that you are doing your job, 'cause if I have to call five times because there's a problem someplace -- and I won't say I've called five times 'cause you've been real good on responding to us. COMMISSIONER ELFREY: Good. That's good to hear.
But the bad guys kind of outmaneuver you because there are more of them and fewer of you, and they know that it's going to take some time for you to get back out to do a reinspection, so they do what they want to do. So I just -- the department has been very supportive, very responsive to my office, and I wanted to say that, but the system is overwhelming, and we do have a lot of 171 4/7/08 - Whole - 080022, 157, 160, 164, 165 problems in this city. Councilman Rizzo?
Commissioner, I'd like to go back to the construction Dumpsters, and could you assemble the people that you think would be the ones to discuss that with me. COMMISSIONER ELFREY: Sure, absolutely. We'll have the Streets --
Yeah. Two years ago, we had no legislation on construction Dumpsters, where a contractor would put one on a sidewalk, force pedestrians into the street. We had contractors doing demolition or doing remodeling; they would place a Dumpster in the running lane of a roadway. I'd like to know, three years 172 4/7/08 - Whole - 080022, 157, 160, 164, 165 ago, before the legislation, what's different today and the status of that legislation that this Council worked very hard on to deal with the issues. If you're limiting et right now to construction Dumpsters, that's fine with me but we'll find out if it does embrace other Dumpsters that are left on the right-of-way. COMMISSIONER ELFREY: If I may, Councilman,I'm going to ask Otis Haigler to explain the legislation issue, but we'll be more than happy to provide your office and the Council President a full report on where we are with Dumpsters, what has happened in the past, so that you can review that. (Witness comes forward.)
First of all, to Mr. Haigler, Mr. Haigler, you know that I've been dealing with the implementation of this for many, many years now. And out of courtesy to you and to the Streets Department and L&I, 173 4/7/08 - Whole - 080022, 157, 160, 164, 165 I backed off and allowed it to implement on the timeline that you described. Is this legislation implemented today?
Could you describe that legislation and what is required of it? Because earlier, you had questions about enforcement, L&I, Streets, who's responsible. Could you go over it briefly?
And please specifically the licensing and the enforcement of Dumpsters that are especially left and impede the flow of pedestrian traffic and vehicle traffic. And the requirement to cover them I think you added at night; I don't see any of that. But let's listen to what you have to say.
Yes. For the 174 4/7/08 - Whole - 080022, 157, 160, 164, 165 record my name is Otis Haigler, Jr. I'm the Director of Legislative Affairs for the Department of Licenses and Inspections. The legislation that Councilman Rizzo speaks of is legislation that was passed, I believe, about two, three years ago related to construction equipment, and the construction equipment includes construction Dumpsters; the other parts of the equipment was scaffolding and other things that are a part of the public right-of-way. But specifically towards construction Dumpsters, we have implemented that with the Streets Department. L&I's responsibility deals with licensing of the companies. We license the various companies that have construction Dumpsters in their fleet. Now, the requirements of the Code, on that section of the Code, 175 4/7/08 - Whole - 080022, 157, 160, 164, 165 deals with all Dumpsters that are placed in the public right-of-way, not private Dumpsters that's within the property line, not Dumpsters in restaurants, but Dumpsters that are specifically in the public right-of-way that could be used for a variety of issues in the public right-of-way, not necessarily just for construction debris, but it could be utilized for cleaning purposes or whatever, as long as it's in the public right-of-way. We work with the Streets Department. The Streets Department's responsibility there is to issue a permit for the actual placement of the Dumpster in the right-of-way. L&I's responsibility is to license annually the companies, their fleet of Dumpsters, and we issue what we call "fleet licenses" to license the various Dumpsters of every individual company that proposes to 176 4/7/08 - Whole - 080022, 157, 160, 164, 165 put their Dumpster in the public right-of-way. The Streets Department, along with L&I, develops certain regulations to regulate the Dumpsters. As Councilman is aware, there were requirements that they would have reflectors on the Dumpsters. There was a specific requirement that the Councilman requested that the Dumpsters would be covered when they're not in use. There were requirements that there be something placed underneath the Dumpsters. All of those things have been placed in the regulations as a requirement. And, as we know right now, we are enforcing that.
So L&I's role is strictly to license the Dumpsters that are in the right-of-way?
Are -- to 177 4/7/08 - Whole - 080022, 157, 160, 164, 165 your knowledge, how many licenses have you issued?
I don't have the exact number, but I can get back to you with that.
Could you get back to the Chair with that? Commissioners, what I'm trying to get to, we went through a lot of work to get that legislation passed and the other processes. I just want to make sure that the license -- these companies that come into Philadelphia that place those Dumpsters in the right-of-way, that they're doing it according to the regulations, and that's all I would like to catch up with you on, to make sure that when we back away from this issue and start dealing with something else, that at least that's in place. It took three years to get it implemented. COMMISSIONER ELFREY: We don't 178 4/7/08 - Whole - 080022, 157, 160, 164, 165 want to let all of that hard work go to waste, sir, and it's an important quality-of-life issue for the citizens; it's a public-safety issue. And we're with you.
'Cause, you know, there's nothing like this windy weather that we've had recently. A construction Dumpster's left on the highway; the next thing, you have pieces of drywall blowing all over the place, trash all over the neighborhood. COMMISSIONER ELFREY: I agree with you.
And it really -- the regulation needs to be enforced. Thanks for your acknowledgment of that. Thank you, Madam Chair.
Point of information. I think that one of the 179 4/7/08 - Whole - 080022, 157, 160, 164, 165 things that Councilman Rizzo is speaking to -- and I just wanted to add it as we review this whole Dumpster situation. When we issue the permits, when we're giving out those permits, I think there needs to be strong language around the collection and the placement of the Dumpster in the appropriate location. I have several sites in Frankford, for instance, where I have multifamily dwellings and buildings who have the private Dumpster collection. In one case, we've tried work with the manager, but the collection company comes, picks it up, and then leaves it and blocks sometimes two parking spots for folks. So I think in whatever we're giving when we issue some of these commercial Dumpsters needs to really articulate that they are responsible for that Dumpster, or the company that 180 4/7/08 - Whole - 080022, 157, 160, 164, 165 they contract, putting the Dumpster back where it belongs. And I think we've shared with your offices some pictures and examples of where we have had problems historically and if you look at the file. And I just think that, you know, going back to Councilwoman Tasco's point, you know, we keep spinning the wheels on the same, same issue, that we have to figure out how we stop it, because it just -- it seems petty for us to make the same call over and over on one Dumpster, but for the people who live on that block whose two parkings or driveways -- COMMISSIONER ELFREY: It's not petty to them. They live with it everyday and they shouldn't have to.
Yeah. I think we need to look at what we're doing in that permitting process and 181 4/7/08 - Whole - 080022, 157, 160, 164, 165 what can we be doing there to send a strong message that, you know, not only that we're going to cite them but that they comply with this. And I think that the pickup companies, the companies have a lot to do with that. COMMISSIONER ELFREY: Thank you.
Thank you very much. Thank you for your testimony, and we wish you well. Thank you. COMMISSIONER ELFREY: Thank you. MR. McPHERSON: The next department is the Board of L&I Review.
Good morning, Councilwoman Tasco and members of Council. I'm Bridget Collins- Greenwald, the administrative services director for the Department of Licenses and Inspections. I appreciate the opportunity to present the Board of L&I 182 4/7/08 - Whole - 080022, 157, 160, 164, 165 Review Fiscal Year '09 Operating Budget. The Board of L&I Review is requesting a total FY '09 budget of $222,458 in the City's General Fund. For the General Fund breakout, we are requesting: $198,108 in Class 100. $23,722 in Class 200. $628 in class 300. The FY '09 request will fund three full-time General Fund positions comparable to the FY '08 authorized General Fund position level. Thank you. I will be happy to answer any questions you may have.
Are there any questions of this witness? (No questions.)
Thank you very much. Next? MR. McPHERSON: Board of Building Standards. 183 4/7/08 - Whole - 080022, 157, 160, 164, 165
Good morning, Councilwoman Tasco and members of Council. I'm Bridget Collins- Greenwald, the administrative services director for the Department of Licenses and Inspections. I appreciate the opportunity to present the Board of Building Standards Fiscal Year 2009 Operating Budget request. The Board of Building Standards is requesting a total FY '09 budget of $112,792 in the City's General Fund. For the General Fund breakout we are requesting: $112,733 in Class 100 and $59 in Class 200. The FY '09 request will fund two General Fund positions comparable to the FY '08 authorized General Fund position level. I'd be happy to answer any questions you may have.
The Board of 184 4/7/08 - Whole - 080022, 157, 160, 164, 165 Building Standards hears appeals from the construction permits. So if you have an appeal or an opinion you would like on any type of construction permit, it would go to the Board of Building Standards.
By the Mayor, same as the Zoning Board of Adjustments.
Good morning, Councilwoman Tasco and members of Council. I'm Bridget Collins- Greenwald, the administrative services director for the Department of Licenses and Inspections. I appreciate the 185 4/7/08 - Whole - 080022, 157, 160, 164, 165 opportunity to present the Zoning Board of Adjustment's Fiscal Year Operating Budget request. The Zoning Board of Adjustment is requesting a total FY '09 budget of $445,810 in the City's General Fund. For the General Fund breakout, we are requesting: $402,272 in Class 100 and $43,538 in Class 200. The FY '09 request will fund five full-time General Fund positions comparable to the FY '08 authorized General Fund position level. Thank you. I will be happy to answer any questions you may have.
Thank you very much. I see Miss Jaffe is here, who is the Chair of the Zoning Board. Thank you for coming, welcome, and we're glad to see you back on the Zoning Board.
Any 186 4/7/08 - Whole - 080022, 157, 160, 164, 165 questions of the Zoning Board? Councilwoman Sanchez.
Yes. As it relates to the Zoning Board, I know that we're going through several adjustments, but I had a question. When we are reviewing Zoning Board variances, do we look and factor in the history of the business as part of our decision-making process to grant certain variances and expanded uses for facilities?
When we -- when the Zoning Board is making a decision, factoring in a decision, for a permitted use of an existing business or expansion of a current business, do we factor in any of its previous history in terms of noncompliance, Code violations, any of that stuff, when we're issuing variances?
If it appears on 187 4/7/08 - Whole - 080022, 157, 160, 164, 165 the paperwork.
Susan Jaffe, Chair of the Zoning Board. If it appears on the paperwork or we have anything in the file, it would be factored in.
So unless it's in your file, you wouldn't factor that in?
We wouldn't know to factor that in. We -- unless there was something in the file or there were neighbors there or we received information about it, it would not be factored in. If there were violations, absolutely. If we had paperwork, yes.
So then my question to the Commissioner is: As the staffing of the Zoning Board prepares its paperwork on properties, is that something that we consistently 188 4/7/08 - Whole - 080022, 157, 160, 164, 165 make sure that we go back and re-review any previous complaints or history on the properties? COMMISSIONER ELFREY: Yes. They check the Hansen system to ensure that all of the violations and any supporting documentations are in the package.
So that's in the file? COMMISSIONER ELFREY: It should be.
I have a serious situation with 2429 North Palethorpe. It's an illegal garage that has operated for a long time. Three weeks ago, they came before the Zoning Board. There was a lot of opposition to it because he did not have the proper equipment to paint. Saturday, I went over there and, lo and behold, he's painting. We issued a cease-operations. The Zoning Board authorized his usage one day, 189 4/7/08 - Whole - 080022, 157, 160, 164, 165 and two days later, we had a cease-operations because of its history. And he's just blatant about it and he's painting. And we knew, based on the history of the property, that his intent was not just to do body and fender but to paint. But the Zoning Board -- and there was plenty of opposition, both community folks, our office. There was a history on the case and we issued the variance, obviously, with the proviso that he's not doing painting, but historically, that's what he's been doing, and that's what he was doing Saturday at 4 o'clock.
As I understand it, that case -- we actually had L&I go out and take a look at that case because there were complaints that he was doing work at night. And I wish Dominic were here, but he said there was no work being done at night, although some of 190 4/7/08 - Whole - 080022, 157, 160, 164, 165 the protestants had said that. I'm familiar with the case, though, because it's one of the few cases that stands out in my mind as, you know, a case that could have gone either way, and perhaps we made the wrong decision on it. I don't know. I can only say that when I got that information, I did ask L&I to go out and check and --
There is a cease on it, but the gentleman is very blatant. He does work Saturdays and Sundays. It's about four blocks from my house. I get at least two neighbors a week that come to my house. I drive by there deliberately every time, and he's still doing it; he's working -- it's a very small street, he's still working out on the 191 4/7/08 - Whole - 080022, 157, 160, 164, 165 street. And, like I said, at o'clock on Saturday, when we 4 finished our cleanup, I said, Let me go drive by there. Lo and behold, he was painting. Now, they're telling us we got to call the Police Department. I've talked to the captain, I have the neighbors constantly calling. But, as you know, that's a low-priority call. So we're in a -- it's in a section of the City where there's other things that are much, much more important. In a case like that, it would seem to me that that's not something that we want to consistently trouble the Police Department about, because it's not going to get on the top of the priority list. And as much as neighbors call and it's always on -- we put it on roll call, it's still functioning. We have not been able to get the Police Department to go out there and close it down. 192 4/7/08 - Whole - 080022, 157, 160, 164, 165 COMMISSIONER ELFREY: At the conclusion of this meeting, I'll speak to Deputy Commissioner Verdi, and we'll reach out to the Police Department and try to coordinate our efforts to alleviate that situation.
He has -- I've spoken to the captain. I mean, he sent me a text this morning and we were still on it.
I would offer one other suggestion. I mean, I don't like to talk about specific cases; I'd rather talk in general terms, and your question started out as a general question and then got very specific.
But, you know, if you feel that we voted in the wrong way, you can ask for a reconsideration or you can go through the process and file an appeal with Common Pleas Court.
There is going to be an appeal coming through, 193 4/7/08 - Whole - 080022, 157, 160, 164, 165 but I wondered if there was a reconsideration process that --
There is. We're getting tons of them because we're dealing with the former board, but I know this case was our -- you know, at least the most recent was our responsibility. Thank you.
Another point. I mean -- and I know this is really complicated. I have 12 ward leaders and civic groups doing 15 zoning in the district, and that is one that we are working with them to streamline, and every zoning volunteer group has its own processes not necessarily documented. We've gotten them to the point where they're defining boundaries. I'm meeting with each -- I met with all the groups on an initial round, all 15 of them, to say we need to do this in a more thoughtful feel 194 4/7/08 - Whole - 080022, 157, 160, 164, 165 way, and as much as I appreciate all of their energy, I'd love them to talk about what they want in their neighborhoods versus what they don't want. So we're working to help make this process smoother. And part of it is by sending a consistent message around processes in terms of who do they talk to, what are some of the problems that some of the civic groups have with certain types of businesses, so is that when someone is going before the Zoning, they're informed, and that has not been an easy process. I've mediated several meetings where I think the neighbors were out of bounds in how they treated folks and definitely don't create a culture and an environment where people want to go in, even along the corridors as we talk about corridor development. But this is something that I encourage -- and I know when I worked 195 4/7/08 - Whole - 080022, 157, 160, 164, 165 with Councilwoman Tasco, she has the Zoning -- a powerful woman over there, Miss Johnson, who lives off of that stuff. I really think that we should put together, my suggestion is, a task force based on some of the experience that is in Council, based on the reality of all of the different stakeholders who want to have a say, and try to come up with one process or as close to one process as possible, 'cause I think it's going make our lives easier. I know we're going to do it in the 7th. People can get upset me if they want, but I'm not doing three hours of zoning meetings with 15 different groups. But just something that we need to give thought to, because as much as we say the zoning reform piece is going to happen, it's going to take three or four years. And in the 196 4/7/08 - Whole - 080022, 157, 160, 164, 165 meantime, we have people spending hundreds and hundreds of hours in these discussions. I just think we need to do a better job. Again, for me to sit through a community meeting for three hours to talk about one business and have 50 people, where we could be talking about a whole host of, you know, more proactive issues, is very difficult. And I don't have the answer. I know we're looking to try to streamline that and create a more -- a fairer process. Even for businesses coming in and making some recommendations to them, but this is something that we really need to, in the interim, kind of work at. So I know that this is new for you. At some point, I'd love to just kind of brainstorm 'cause, again, we want to make this easier, but it's just very, very complicated 'cause it's just -- it's been going on for 30 197 4/7/08 - Whole - 080022, 157, 160, 164, 165 years. COMMISSIONER ELFREY: Councilwoman, at your convenience, have your staff contact us, and we will be happy to set up a meeting with you and do that brainstorming; that's a good idea.
Yeah, we definitely want someone assigned to work with us. We're going to do a retreat with all of my civic groups, and we would definitely like to have someone from L&I to come talk to us, because, as great as all those provisos are, I know you don't have the staff to do the enforcement. And as much as I tell the groups, you can do ten provisos; we're not going to be able to enforce some of the stuff, so... COMMISSIONER ELFREY: We'll be happy to work with you.
Thank you. 198 4/7/08 - Whole - 080022, 157, 160, 164, 165
Okay. Are there any other questions? (No further questions.)
There being none, thank you so much. Thank you so much for your testimony. We will recess this hearing until 1:30. Thank you so much. (Committee stands in recess.) (Proceedings resume at 1:55 p.m.)
The Committee of the Whole is now back in session. The next department to testify... MR. McPHERSON: ... is the Water Department. (Witnesses come forward.)
Good afternoon. Please identify yourself for the record and proceed with your testimony. COMMISSIONER BRUNWASSER: Good 199 4/7/08 - Whole - 080022, 157, 160, 164, 165 afternoon.
Good afternoon. COMMISSIONER BRUNWASSER: Good afternoon, President Verna and members of Council. I am Bernard Brunwasser, Water Commissioner, appearing before you today to testify on behalf of the Philadelphia Water Department's Fiscal 2009 Operating Budget request. On my right is Deputy Commissioner of Operations Debra McCarty, and on my left is Deputy Commissioner for Finance and Administration, Joseph Clare. Our proposal for a Water Department budget of $297 million is augmented by an additional $292 million for other Water Fund activities, including the Water Revenue Bureau, debt service, and central agency support, for a total Water Fund budget of $598 million. 4 million over the Fiscal 2008 appropriation level due primarily to a grant-funded water security initiative and for additional staff for storm water plan review and the partial funding of current vacancies. 8 million over FY 2008 appropriation levels due to increased costs for utilities and inflation. 8 million over Fiscal 2008 appropriation levels due primarily to large increases in the cost of chemicals used at the department's water-treatment and water-pollution 201 4/7/08 - Whole - 080022, 157, 160, 164, 165 control plants. The proposed Fiscal Year '09 total Water Fund Operating budget of $589 million is $115 million lower than our Fiscal 2008 appropriation. The reduction results from the removal of the nonrecurring Fiscal Year 2008 costs for the City's New River City Economic Development project, which was budgeted in Fiscal Year 2008 through the Water Fund at $125 million. As you know, the Philadelphia Water Department is a municipal utility serving the citizens of the Philadelphia region by providing integrated water, waste-water, and storm-water services. Our primary mission is to operate and maintain the infrastructure necessary to provide high-quality, affordable drinking water to protect the public health, to provide an adequate and reliable water supply for all residential, business, 202 4/7/08 - Whole - 080022, 157, 160, 164, 165 and public needs, and to sustain and enhance the region's watersheds and quality of life by managing waste water and storm water effectively. Philadelphia's drinking water is safer than ever, substantially better than state and federal regulations for purity require. Philadelphians have recognized the high-quality services provided by the Water Department, and our most recent citizen surveys show an 80 percent customer satisfaction level, with overly PWD services and overall water quality. The Water Department is also treating waste water to award-winning levels, overseeing the cleanest water environment in over 150 years and making progress in protecting our watersheds to keep our streams and rivers clean. This year, the Southeast and Southwest water-pollution control 203 4/7/08 - Whole - 080022, 157, 160, 164, 165 plants will receive platinum awards of perfect effluent compliance respectively from the National Association of Clean Water Agencies. These platinum awards are for a minimum of five years of perfect regulatory compliance. Southeast now has eight years of perfect regulatory compliance and Southwest has five years of perfect regulatory compliance. The Northeast plant will receive a gold award for perfect compliance in calendar-year 2007, its third year in a row with perfect compliance. The Water Department plans to monitor water quality and waste-water treatment performance through participation in the City's Philly Stat Program. Performance measures for these areas as well as other critical areas such as main breaks, hydrant availability, asset replacement, and storm-drain cleaning 204 4/7/08 - Whole - 080022, 157, 160, 164, 165 will be closely monitored and reported on a monthly basis. 6 million in additional revenues from a proposed rate increase. 5 percent increase starting July 1, 2011, for a typical customer.
These rate adjustments are largely driven by costs for employee fringe benefits and pensions, debt service on the department's next bond issue, and general inflation. Even with these revisions to 205 4/7/08 - Whole - 080022, 157, 160, 164, 165 rates, Philadelphia's water and sewer charges will continue to be among the lowest in the region. The department also plans to transmit legislation to City Council that will provide additional charges for the setting of charges for storm-water service. The legislation would amend Section 13-201 and clarify that all properties are responsible for storm- water-related charges and that the charges may be based on property characteristics. Under the proposed rates, the storm-water service charge for non-residential properties will transition from charges based on meter size to charges based on property characteristics. The transition will address inequities in how some non-residential customers currently pay for storm-water management. These rates will also incentivize smart 206 4/7/08 - Whole - 080022, 157, 160, 164, 165 storm-water practices such as the use of green roofs and porous pavement. This proposed change in property-based storm water rates will have no negative impact on the storm water charge for residential customers. The Water Department remains committed to providing utility services consistent with the highest level of customer service as set forth in the City's Strategic Plan. This would not be possible without the Water Department's dedicated and professional staff, many of whom hold leadership positions in the American Water Works Association, the National Association of Clean Water Agencies, the Delaware River Basin Commission, the Eastern Meter Management Association, the Partnership for the Delaware Estuary, the Coastal Zone Management Steering Committee for Pennsylvania, the Water Environment 207 4/7/08 - Whole - 080022, 157, 160, 164, 165 Federation, the Pennsylvania Department of Environmental Protection Water Advisory Council, and the Pennsylvania Section of the American Water Works Association. We look forward to continued partnership with City Council toward further improvement in Fiscal 2009 and the years ahead. At this time, I would be happy to answer any questions that you may have.
Thank you very much, Commissioner. You mentioned the New River City Economic Development project in your testimony. For the record, can you tell us the benefits that the Water Fund and the water ratepayers receive from this program? COMMISSIONER BRUNWASSER: Yes. All of the money that has been appropriated for the New River City Program is for public water and sewer 208 4/7/08 - Whole - 080022, 157, 160, 164, 165 infrastructure, and virtually all of it is earmarked for use in the Navy Yard. As you may know, the Navy Yard's water and sewer infrastructure was not up to par as far as the City's requirements were concerned, and this will allow us to bring that parcel, that huge parcel, up to City standards and also have it expand to reach more customers.
Thank you. This wasn't done at the Navy Yard simply because we were under the impression that the Food Distribution Center would be located there; it's for the entire complex, is it not? COMMISSIONER BRUNWASSER: Yes.
Thank you. You also mention in your testimony the quality of our drinking water, and I know that it was quite a talk about a month ago about the trace 209 4/7/08 - Whole - 080022, 157, 160, 164, 165 elements of certain drugs that were found in our water. Would you mind commenting on that, please. COMMISSIONER BRUNWASSER: Of course. The article that appeared was, I believe, written by an Associated Press reporter, and what he did was look at some -- ask many of the water utilities in the country if they had been testing for pharmaceuticals in their source water and their drinking water. Some have, some have not. Recently -- in recent years, we have been able to test at parts per trillion and even parts per quadrillion, which are so infinitesimally small. What Philadelphia did, when we found out from a US GS survey in 2000 that pharmaceuticals were showing up in trace amounts throughout the country, or in various areas of the country, we decided to begin testing ourselves. 210 4/7/08 - Whole - 080022, 157, 160, 164, 165 We do not have the capability of measuring parts per trillion. We had to use a special lab, and there's only a handful of laboratories that can even measure in these very minute quantities. And what we discovered -- the numbers that you saw in that report were not accurate. What we discovered was that there were 32 pharmaceuticals in our source-water supplies out of 75 that we specifically looked for. In our finished water supply, there were trace pharmaceuticals 16 found. These include caffeine, these 17 include Tylenol, and some of the relatively common over-the-counter or prescription drugs. What we have discovered in Philadelphia is very much the same as has been discovered not only in the United States, all over the United States, but also in Europe and in other parts of world. 211 4/7/08 - Whole - 080022, 157, 160, 164, 165 The problem is that when you test at these phenomenally small amounts -- we used to test in parts per billion. One part per billion is the equivalent of one thousand parts per trillion. And all of the pharmaceuticals that we found traces of were in the parts per trillion; we didn't find a single pharmaceutical in parts per billion. So now, since we want to be in the forefront of water research -- and we are. We have so many experts. s on staff who are the head of the laboratory and head of planning and research and also one of heads of our laboratories. s, and they're in the forefront of researching this. And we want to know what's in the water even if we're sure it's not harmful. The federal government has no 24 standards, no guidelines for pharmaceuticals in water. This is an 212 4/7/08 - Whole - 080022, 157, 160, 164, 165 emerging science, and we've only been looking at this for the past seven years or so. And Philadelphia tested more thoroughly than almost any other water utility in the country. So we found perhaps a few more compounds than most, but they were in such small quantities. " What I have to tell you is, nobody in the scientific community at this stage of the game believes that this is a danger or a problem today, a human health issue. But we want to be sure that we begin to monitor this from time to time to make sure that if we're to discover any pharmaceutical in our water, in our whole water supply or the whole chain of water that we see, 213 4/7/08 - Whole - 080022, 157, 160, 164, 165 that they either remain minute and will not cause a problem in the future. We're -- the federal government is just beginning to look into this now and also the state government, and I think the state government is now developing -- has developed a bill which addresses the disposal of unused medication. And we have already put information on our website telling folks what to do, you know, what we've discovered, telling them what they can do in the future in order to make sure that this does not become a problem. We don't think it's a serious health concern today for human beings.
But, you know, we -- clearly we know what we have, and that's saying more than many of the utilities at this point in time. Again, not everybody can test for this because there's only a couple 214 4/7/08 - Whole - 080022, 157, 160, 164, 165 of laboratories in the country that can measure in parts per trillion. And even the measurement at those levels hasn't been vetted entirely because it's been done for a very short period of time. But we are -- yeah, this is part of our research, and that's why we really didn't want to give this out to the media yet; but at the same time, we didn't want to be seen as holding back information.
Thank you very much. I appreciate your explanation. Commissioner, what initiatives is the Water Department implementing with regards to the storm water runoff problems that we are experiencing? COMMISSIONER BRUNWASSER: Well, we have just completed our two-and-a- half-year study of our sewer system in those areas of the City that have experienced sewer backups into their 215 4/7/08 - Whole - 080022, 157, 160, 164, 165 basements. The good news is that we have found solutions, a solution to virtually all of these problems. And the unfortunate thing is that to correct longtime sewer problems over a large area within the City will take some time. We have projects that we will be designing to relieve storm water backups -- or sewage backups in the neighborhoods of Northern Liberties, many areas of South Philadelphia and Washington Square West and Lower Kensington. I believe that that's basically it. And what is happening in these areas is, during these highly intense storms -- and we had a number of them between 2004 and 2006, as we all know. During these highly intense storms, the sewer itself can fill up very quickly, and before it's able to send the flow to the waste-water treatment 216 4/7/08 - Whole - 080022, 157, 160, 164, 165 plant, it will back up at times into -- you know, water seeks its own level. It will back up into some low-lying basements and cellars in these neighborhoods. Usually, it's the lowest fixture in the house that will go first. If someone has a toilet in their basement, if they have a sink in their basement, if that's the lowest point, it will start to come out. We also have a program for back-flow prevention. And we will, at our cost, install a back-flow preventer in some of these homes where we believe we can see that they have a problem. And that should resolve it. If it's done correctly and the people maintain the installation appropriately, that should help them out until the more permanent solution, such as a large intercepting sewer being built into their neighborhood to relieve storm flooding, to capture as 217 4/7/08 - Whole - 080022, 157, 160, 164, 165 much storm water as possible and take it directly to the river. Until those solutions are completed, this will be a -- this would be an area that we can help now. We've actually budgeted money in the current year's budget for this, and we certainly have money budgeted in next year's budget as well.
Thank you. The Chair recognizes Councilman Jones for a point of order.
What exactly is a back-flow (inaudible). Can you describe that? COMMISSIONER BRUNWASSER: I'll let Debra McCarty explain that one. DEPT. COMMISSIONER McCARTY: Debra McCartey Deputy Commissioner of operations. Councilman, it's a device that you can put on either your drain line feeding the sewer, so it would be a 218 4/7/08 - Whole - 080022, 157, 160, 164, 165 single point that -- basically, it allows flow to go in one direction and not other. Just very simply, it's like a flap. You can also put it on the individual fixtures, as the commissioner mentioned, the drain in the basement, the wash sink drain, things like that. And that's the basement protection program, that's what our goal is, to put it on the individual devices because if your downspout is connected to your drain line, we have to, you know, make sure it's upstream of where that connection is or disconnect the downspout. So it's less problematic, we believe, if we put it on individual fixtures. But, basically, it's a simple device, and the homeowner, as the Commissioner mentioned, needs to make sure it stays clean because you don't want anything stuck on it when the 219 4/7/08 - Whole - 080022, 157, 160, 164, 165 sewer is backing up. It's supposed to be closed.
If it's that simple -- I have constituents that call, that they just know when it rains -- and if the installation of a simple device like that is all it takes to stop that? DEPT. COMMISSIONER McCARTY: Well, it depends upon what's causing the problem. There are many reasons that you could get sewage in your basement.
Thank you. DEPT. COMMISSIONER McCARTY: So, you know, we would encourage folks, if they have a problem like that, to call 685-6800, and we'll investigate it.
You're welcome. Commissioner, you mentioned 220 4/7/08 - Whole - 080022, 157, 160, 164, 165 one of the causes for the water rate increase being debt service on the department's new bond issue. Several of us were not able to attend the briefing that you had in the caucus room last week because we were in here on the budget hearings. Would you mind explaining rather quickly what bond issue and why will it require an increase in our rates? COMMISSIONER BRUNWASSER: Well, President Verna, as you know, the department has a huge infrastructure which we maintain, and we have a capital budget, I think, currently of approximately $142 million. This is approximately -- this is along the order of what we need for normal maintenance and replacement of water mains or replacement of sewer mains and repairs and renewals at our seven plants right now. It's -- the value of our 221 4/7/08 - Whole - 080022, 157, 160, 164, 165 infrastructure would run into the tens of billions of dollars, and so we have a -- it's a very expensive proposition to keep ourselves ahead of the curve. Many water and sewer utilities are way behind the curve and are looking for thing federal government to bail them out with their infrastructure needs. There's no bailout coming, at least not while there's a war on, so they're still waiting. We've been aggressive at replacing water mains and sewer mains. And in the long run, it saves us a great deal of cost. We now add to our burden of 140 million or so with additional -- with the need to fund these corrections and improvements to our sewer system in South Philadelphia, Northern Liberties, and these other areas of the City. And in order to do that appropriately, we will have to raise more capital. 222 4/7/08 - Whole - 080022, 157, 160, 164, 165 Now, the department raises close to 30 percent of its capital needs through its own revenues, and so we do a lot of pay-as-you-go type of financing, but we sill have to go out for relatively large bonds issues. Mr. Clare could certainly tell you what the effect that the project bond issue do over the four-year rate period. DEPUTY COMMISSIONER CLARE: Council President, there's actually one new bond issue planned in this rate period. It was already approved. It's a $323 million issue that now looks like it -- the bonds will be issued in approximately February 2009. The first debt service will hit in July 2007 for approximately $22 million a year. We'll also need authorization for another bond issue, approximately $350 million in the fall of next year, and those bonds will likely be issued 223 4/7/08 - Whole - 080022, 157, 160, 164, 165 in February of 2012. The debt service would fall outside this rate period but would be in the order of about $25 million a year. Neither of those are in our current rate projections. They're in our rate study, but they're not in our current rate set that were set in July of last year.
Thank you very much. The Chair recognizes Councilman Clarke.
Thank you, Madam President. Good afternoon. I was actually going to ask you some questions about water shutoff policy, but I think Councilman Greenlee will take that mantle in questioning particularly related to a more recent activity in my Council District. And since Councilman Greenlee is an at-large Councilperson, 224 4/7/08 - Whole - 080022, 157, 160, 164, 165 he gets to be involved in everybody's district. I wanted to talk to you about an issue that I've talked about for quite some time, storm-water management. As you know, it was a recently enacted policy that was required by the federal government. COMMISSIONER BRUNWASSER: Ultimately, it's the federal government, yes.
All right. And while I understand the need for it essentially because of the antiquated systems that we have, both our water and sewer flowing into the same system -- and I live in one of those areas that has been affected by flooding -- it has created a substantial problem with development in particular both in terms of ability to move the process and in terms of the ultimate cost. And I know I've been talking 225 4/7/08 - Whole - 080022, 157, 160, 164, 165 to you about it. I give you a call all the time about a project that's being stalled because of this issue. COMMISSIONER BRUNWASSER: Yes.
Is there anything, both from a perspective of expediting that process -- and I know we apparently did something with the nonprofit development corporations and the costs associated, because regardless of expediting the process, there is a cost, and I'm seeing some developers spending upwards of a quarter of a million dollars that was an unbudgeted expense. Are we going to, one, come up with a process that expedites that across the board, not just with nonprofits? And, two, do we take into account the increased costs to developer, given the difficulties associated with the housing market and other development-related activities 226 4/7/08 - Whole - 080022, 157, 160, 164, 165 right now? I know that was a very long question but -- because I've talked to you about it for quite some time. COMMISSIONER BRUNWASSER: Right. We have taken steps. Some of the steps are in this Fiscal '09 Operating Budget. We are hoping to add engineers to the process of plan review.
Staff? COMMISSIONER BRUNWASSER: Staff, yes. And not only staff but also to continue to augment with contractual engineers who we will bring in under contract to augment our staff until, you know, until we, you know, have -- have gotten to the point where we believe our level of service is as good as it can be.
Is that a part of the $7 million increase request? COMMISSIONER BRUNWASSER: Yes. 227 4/7/08 - Whole - 080022, 157, 160, 164, 165 Now, what I should tell you is, you know, Licenses and Inspections, L&I, used to be known as kind of the holdup on these permitting problems, and now we've sort of taken the mantle since our new regulations went into effect in January of 2006. Some of these engineering reviews that we have to do take dozens of engineering man hours to accomplish. We can't kind of -- we're not in the position that we can ever rubber stamp these things. We actually have to do the modeling to see if the engineering firm has adequately taken care of storm water that hits this parcel. They have to collect the first inch of rain of any rain event, and that is a tough task for some of these parcels, particularly the parcels that have not left themselves very much land in which to, you know, in which to answer this challenge. 228 4/7/08 - Whole - 080022, 157, 160, 164, 165
Have we established guidelines that the developers can use as a blueprint for -- COMMISSIONER BRUNWASSER: Yes.
So we know -- they get -- COMMISSIONER BRUNWASSER: Yes. They are -- (Indiscernible; parties talking over each other.)
-- they're following types of remediation. COMMISSIONER BRUNWASSER: Yes. And they're posted on our website as well. And we're working with L&I. I think the L&I Commissioner was in here this morning, and we're working with 229 4/7/08 - Whole - 080022, 157, 160, 164, 165 L&I and others in the Law Department to speed up the process as best we can. One of things, as you mentioned, for these nonprofit builders or the builders who are building subsidized housing, we have given them the option, if time is of the essence, and I know often they come in and they say, you know, "I've got to get this approved, I've got to get my loan approved by the bank. I can't do that until this process is done." We have given them the option to go to any licensed professional engineer in Pennsylvania to get him to approve the plans. We will accept those plans.
If it's a approved -- COMMISSIONER BRUNWASSER: By A professional --
-- by you guys? 230 4/7/08 - Whole - 080022, 157, 160, 164, 165 COMMISSIONER BRUNWASSER: Yes. A licensed professional engineer in Pennsylvania, we will accept that for these types of projects.
So why don't we do that for everybody? COMMISSIONER BRUNWASSER: Because some of these projects -- we're talking about -- we're thinking about the larger projects?
Yes. COMMISSIONER BRUNWASSER: We don't want to do that for those. We want to take a closer look at those.
Why? I'm asking you why. COMMISSIONER BRUNWASSER: Because it's a complicated process. (Timer bell rings.) COMMISSIONER BRUNWASSER: And we have other -- we have State permits to also help these developers with Act 537 plans. The really large projects are 231 4/7/08 - Whole - 080022, 157, 160, 164, 165 ones that we absolutely want to have a hand in reviewing. Some of the projects that are subsidized housing, like I said, we have made an accommodation. We say, Okay, if it helps you -- if it helps you -- it's a pilot program. If it helps you, we will allow you to go get your approval from a licensed professional engineer in Pennsylvania.
Okay. My time is up, but that answer is -- does not past muster, and I'm going to come back. I have a follow-up question.
The Chair recognizes Councilman Green for a point of information.
(Inaudible, off-mic.) ... Councilman Clarke's question. Why don't you allow anybody who's doing a development to submit 232 4/7/08 - Whole - 080022, 157, 160, 164, 165 plans from a licensed professional engineer? COMMISSIONER BRUNWASSER: Well --
Every jurisdiction surrounding the City of Philadelphia -- Montgomery County, Chester County, Delaware County, Bucks County -- all permit private engineers to submit stamped. COMMISSIONER BRUNWASSER: Right.
And that's acceptable to their local storm-water management agencies. We do not do that. I'm aware of many developers; it's taken them nine months to a year to get storm water approval management. Why don't we allow that? COMMISSIONER BRUNWASSER: This particular program that we began is a pilot program, and we have offered that option to these particular folks who are -- who are -- basically have sometimes a very short timetable of 233 4/7/08 - Whole - 080022, 157, 160, 164, 165 getting their funding.
That is every person doing development in the City of Philadelphia. COMMISSIONER BRUNWASSER: Correct. (Indiscernible; parties talking over each other.) COMMISSIONER BRUNWASSER: Correct.
That's not just (indiscernible). That's all of our developers. The question is: Why don't you allow everyone to do that? Not why you allow the nonprofit to do it. Why don't you allow everyone to do it? That's the question. COMMISSIONER BRUNWASSER: We may if we see that this program is working out well. Now, any of the large parcels, they have professional engineers doing their work now. They have to do it, 234 4/7/08 - Whole - 080022, 157, 160, 164, 165 they have to have professional engineers doing their work.
Yes, but you don't -- but then it takes them nine months to go through an approval with you, and the changes that are asked for are very, very -- COMMISSIONER BRUNWASSER: Generally speaking, Councilman, since this program has started, the submissions that we have gotten were not the best. We have -- we -- despite the fact that we have open house every week in our -- for our storm water program, and we invite contractors and developers and engineers in every week to our place. Even at the beginning of this process, back in January of 2006, we actually gave contractors a CD ROM outlining everything they needed to do.
You still haven't answered the question, but I'll 235 4/7/08 - Whole - 080022, 157, 160, 164, 165 get back to it during my time for questioning. Thank you, Madam Chair.
You're welcome. The Chair recognizes Councilman Greenlee.
Thank you, Madam President. Good afternoon. First on the issue that Councilman Clarke touched on, I'll facetiously call it "our favorite subject" between the Water Department and me. On the barring of shutoffs Friday, Saturday, Sunday, and the day before holidays, Councilman Clarke alluded to an issue in his district last week on Friday, which was apparently a former school building, the former Sartain building, and it was -- almost got shut off; I know it got stopped at the end. What -- I understand -- and I 236 4/7/08 - Whole - 080022, 157, 160, 164, 165 also talked to Revenue Commissioner Richardson on this. COMMISSIONER BRUNWASSER: Mm-hmm.
It appears to be still some problem on how properties are coded, whether they're coded residential or not. And how far back is that; do you know? I mean, I don't know if you know or if that's more a Revenue question, but I think the Sartain School has been a residence for quite a while, right? Am I not right, Councilman.
Yeah, right, okay. You're absolutely right. I mean, it was a school at one time, but it hasn't been in a long time, I know that. So I -- it sounds like the coding issue is pretty old. Is that -- I mean, is that fair to say or 237 4/7/08 - Whole - 080022, 157, 160, 164, 165 do you know or -- COMMISSIONER BRUNWASSER: No, I don't know too much in the way of specifics. Now, remember, since we do get our information from the Water Revenue Bureau, it's supposed to have gone through, you know, due processes. And unless we see something that is unusual and we see some kind of mismatch, chances are we believe it's a clean property to shut off. Now, there are some miscoded properties, believe me, in this database.
Mm-hmm. COMMISSIONER BRUNWASSER: We have over 470,000 customers. Guaranteed, if even if it's one tenth of percent, that's a high number --
Mm-hmm. COMMISSIONER BRUNWASSER: -- of these coded properties. And we are kind of hoping that over time, 238 4/7/08 - Whole - 080022, 157, 160, 164, 165 particularly with a new billing system, the data that we cleansed, so to speak, to get into a new billing system will straighten most of that out.
Sort of clean that out? COMMISSIONER BRUNWASSER: Clean most of that out, but it's certainly not our intent to shut somebody off who is not supposed to be shut off.
Yeah, I understand. And -- but I guess it seems to be particularly with schools 'cause I know there's a lot of -- at least Commissioner Richardson lead me to believe that that's a problem that -- because there have been a lot of school buildings over the years that have been converted to residences of varying kinds. But on that where you just said about where -- that unless there's something obviously wrong, will there -- or has there been or 239 4/7/08 - Whole - 080022, 157, 160, 164, 165 will there be communication with the actual people that go out? because, I mean, I think, from what I know of this building, it's clearly a residential building now. Now, maybe it didn't see that on the person's paper that went out. But are the workers told now about this law, that you can't shut off on Friday, Saturday, and Sunday. And it would seem like in this case, the person that went out there who, by the way was very aggressive, but I won't get into that, said, you know, could have said, Well, geez, you know, we're not supposed to shut off on Friday; this is clearly a senior building. COMMISSIONER BRUNWASSER: Yeah. If it's clearly -- and you know I had told our shutoff people back in November not to shut off apartment buildings.
Right. I 240 4/7/08 - Whole - 080022, 157, 160, 164, 165 was going to get to that too. COMMISSIONER BRUNWASSER: So it was still -- so we still preceded the ordinance by a few months --
Right. COMMISSIONER BRUNWASSER: -- at least when it came to apartments houses.
Mm-hmm. COMMISSIONER BRUNWASSER: I guess it was not clear to him. I don't know all of the details.
No, I understand, I understand, I'm particularly concerned with school buildings 'cause my guess is this might not be the only one that this could happen with because there are -- I can think of the Daroff School, and that's near me, where I live, and a lot of others that have been -- if they're still coded "non-residential," we could still have that problem, you know. DEPT. COMMISSIONER McCARTY: 241 4/7/08 - Whole - 080022, 157, 160, 164, 165 (Inaudible, off-mic.)
Yeah, well, if they pay the bill, then we got no problem, but we always agreed, if they pay the bill, we have no problem. Another question on something I think we agree on more. The -- is it called the "Help Program" where you -- where there's a person that has a violation and the Water Department arranges for the work to be done and the bills -- COMMISSIONER BRUNWASSER: Yes.
-- and payback on their bills. COMMISSIONER BRUNWASSER: Yes.
I mean, it seems -- COMMISSIONER BRUNWASSER: It's a low-interest loan.
Yeah, a low-interest loan. That seems to have been a -- is it -- would you classify that as a successful program? It 242 4/7/08 - Whole - 080022, 157, 160, 164, 165 certainly seems to have worked very well, helps people either get their water back on quickly or keep their water on. Is that -- COMMISSIONER BRUNWASSER: We think it's been a very successful program, yes.
Mm-hmm. And I guess as far as getting the money back it's paid -- is it paid directly on the water bill, or is there a separate bill sent? COMMISSIONER BRUNWASSER: No, no, it's a separate bill.
A separate bill? COMMISSIONER BRUNWASSER: There's a separate bill.
And for the most part, have you had pretty good success in getting the money back? COMMISSIONER BRUNWASSER: Uh, again, I'm not so sure.
Okay. 243 4/7/08 - Whole - 080022, 157, 160, 164, 165 COMMISSIONER BRUNWASSER: I don't have a separate way of checking that.
Uh-huh, okay. COMMISSIONER BRUNWASSER: But the Water Revenue Bureau may.
Okay, gotcha. Last question: In that cleaning, which seems, for the most part, particularly when there's requests made, seem to get done pretty quickly. I know certainly the people that we work with in your department seem to communicate that very well. The one problem that seems to come up is sometimes when cars are parked, particularly if that inlet's in the middle of the back. Is there -- I know, for example, when the Streets Department is going to do some work around a pothole or a plumber's ditch or whatever, they can put signs 244 4/7/08 - Whole - 080022, 157, 160, 164, 165 up blocking parking. Is -- does the Water Department have that ability? Do you think that would be helpful? 'Cause I know sometimes that's the issue we get back when it hasn't been cleaned in a long time. (Timer bell rings.)
That that's been the problem, that cars are parked there, legally parked, but parked there. COMMISSIONER BRUNWASSER: Right, right. I think, you know, we do a lot of our work on a scheduled basis, which is good because it helps us to be more efficient.
Mm-hmm. COMMISSIONER BRUNWASSER: And we do -- I think we can do that if we don't already. We do that, you know.
245 4/7/08 - Whole - 080022, 157, 160, 164, 165 You're welcome. The Chair recognizes Councilman Green.
Thank you, Madam Chair. I -- back to the storm-water management briefly. I'm aware of numerous developers who follow guidelines that were published at one point and then fill out paperwork under existing guidelines at the time they applied for a permit. You then change your guidelines. Everything's approved, except now they're told to fill out new paperwork to match your existing current paperwork so that you can't fill out -- I think, you know, I think this is something that maybe the Water Department shouldn't be involved in because my understanding is the software package you're using is something that works very well for large suburban-type developments, 246 4/7/08 - Whole - 080022, 157, 160, 164, 165 where there's lots of land, but you're not using the software packages that are existing and available for urban infill projects, where a lot of these situations come up, where essentially, there's no back yard allowed because you've got to have these ditches and, you know, runoff. And you're not taking ponds for runoff, you're not taking into account the fact that the lots may have been blacktopped. Now there's going to be grass on them prior to change. I mean, it just -- it doesn't seem to me that this is working. And, you know, I don't know if you have specific plans for making it work that you want to share with us, or this is something we can just follow up on in separate hearings? COMMISSIONER BRUNWASSER: No. 23 We -- we do have plans. We have improved a great deal. We don't have the kind of backlog that we had 247 4/7/08 - Whole - 080022, 157, 160, 164, 165 sometime in the past. As I said, we're augmenting our forces, and this is a learning process for us, it's been a learning process for us; but also, for these builders, particularly for those builders that do not very much suburban experience, because the suburbs have been doing this for a longer period than we have.
But the suburbs don't have urban infill like we have, and that's where many of the delays and problems are. COMMISSIONER BRUNWASSER: Right. Well, I'm going to have Mr. Steve Furtek, who is our chief engineer and our general manager for planning and engineering, address the question about storm water.
Councilman, to some degree, you're absolutely correct. The infill issue with very small lot sizes is a little bit problematic for 248 4/7/08 - Whole - 080022, 157, 160, 164, 165 us and for the developer. We're looking at introducing a fee-in-lieu system, where the developer could pay into a fund rather than do onsite management. We would, in turn, use that money for storm-water management somewhere in that watershed or in the City. We're also looking at trading options for the developer. Now, these are a work in progress; we don't have them available as of yet, but we're getting there.
Okay. And what about the software program specifically?
I'm not quite certain exactly what you're referring to in that comment.
There are different programs that people apply to different types of lots. And, apparently, the City of Philadelphia is using only one program, which is a 249 4/7/08 - Whole - 080022, 157, 160, 164, 165 program that generally applies when you're doing sort of Lowe's or Home Depot-type developments. When you apply that to an urban infill project, you're never going to get the kind of water storage that you could get on a big site like that. And there are different specific software packages using similar models but that take into account the specific situation of urban infill and are somewhat more permissive. They also take into account factors like maybe you're, by putting a home on it, actually improving the watershed because there's going to be grass where there was none, et cetera.
Okay. I'm not quite versed on the details of the software programs. Generically speaking, I think we'll accept programs of a variety of nature as long as they provide that one inch of rain capture 250 4/7/08 - Whole - 080022, 157, 160, 164, 165 on the site, but I can get back to you with more information on that.
Yeah, please provide that to the Chair, because I don't believe that to be the case.
Also, there seems to be -- in storm-water management, there seems to be a feeling among developers almost that the staff is not trained properly or up to speed, and as a consequence, every decision is being made by managers. Managers may not be trained, and as a consequence, basically, the whole system is shutting down because people are afraid to say yes. Would you --
We've made tremendous strides in trying to improve the system. We had -- we probably went from about a 26-day review time to about a 10-day review time as of recently on technical submittals. We 251 4/7/08 - Whole - 080022, 157, 160, 164, 165 invested about a million dollars in outside consulting services to help us. We've reallocated resources within the department to this issue.
If you look at our department in this issue now today versus a year ago or a year-and-a-half ago, it's a tremendous difference. And, unfortunately, I think we're living off a bad reputation from a year-and-a-half ago.
I think you'll see that the difference is quite dramatic, if you really ask people.
Okay. I just have a lot of calls from developers that asked this question this week, not a year-and-a-half ago.
I mean, our number of reviews per project averaged over six; we're down to about three now. So 252 4/7/08 - Whole - 080022, 157, 160, 164, 165 that's a significant change. The number of days we take to review each submittal has gone down tremendously. So there are huge strides here.
Thank you. The Chair recognizes Councilman Jones.
Thank you, Madam President. A couple of quick questions. On clean-water pipelines, how much water do we lose? What percentage of water do we lose annually to breaks? COMMISSIONER BRUNWASSER: I'm not sure exactly how much we lose. We have approximately on average two breaks a year -- I mean, two breaks a day. That's a -- for an entire year. So we have about 3300 miles of water mains and we have 253 4/7/08 - Whole - 080022, 157, 160, 164, 165 approximately -- the five-year average is about 230 breaks per thousand miles of water main, and so we're talking something over 700. Some of them are on small mains losing a little bit of water relatively speaking, and some are on big transmission mains that could be 30 inches in diameter, 48 inches in diameter. And those can lose thousands -- thousands of gallons in minutes.
Does 15 percent of our fresh water sound a 16 little high annually? 17 COMMISSIONER BRUNWASSER: Of 18 loss to water main breaks? 19
What would 22 you estimate it as? 23 COMMISSIONER BRUNWASSER: I don't have that with me. We do have estimates of what the breaks -- I think 254 4/7/08 - Whole - 080022, 157, 160, 164, 165 we do have some estimates of the breaks. There's a lot of leakage in the system --
Combined leakages and breaks, what percentage would you guesstimate that we lose a year to the dirt? COMMISSIONER BRUNWASSER: Leakage and water main breaks?
That's a 18 figure I got from a study, which I will 19 forward to you -- 20 COMMISSIONER BRUNWASSER: Yes, 21 yes. 22
-- that said 23 that 23 percent of our fresh water annually we lose to water main breaks. Now, it's my understanding that we're 255 4/7/08 - Whole - 080022, 157, 160, 164, 165 -- COMMISSIONER BRUNWASSER: I think that's a probably a combination of breaks and leakage.
But the report goes on to say it's because of the aging infrastructure that we have, which is understandable. Is it, in fact, then logical that if we start to repair that, that those savings alone would pay for the repairs? COMMISSIONER BRUNWASSER: The -- one could -- there is a -- there is an analysis that one could do to kind of figure out where the payoff point is, yes. I don't -- I'm not sure where that is today, but --
I think if we're talking about somewhere in the neighborhood of percent clean water 22 loss, we're talking about the 23 possibility that the repairs could be paid for by the savings, the value of the product that we produce -- 256 4/7/08 - Whole - 080022, 157, 160, 164, 165 COMMISSIONER BRUNWASSER: Right.
That it merits us looking into it -- COMMISSIONER BRUNWASSER: Yes. Well --
-- because most of those job opportunities are labor-intense, correct? COMMISSIONER BRUNWASSER: Correct. Now, I should tell you that 230 breaks per thousand miles of pipe is better than the American Water Works Association average of water utilities, even though our system is older than most.
All right. We'll put that on the record for today. COMMISSIONER BRUNWASSER: And 270 is the average number of breaks per thousand miles of water main per year because, you know, you have 1,000 miles, and it could happen, you know, at an infinite number of locations on 257 4/7/08 - Whole - 080022, 157, 160, 164, 165 that thousand miles of main. But we are better than most. And we have stepped up our water-main replacement program since the mid-1990s, and we have a system in-house that we've had actually for quite a long time, where we assess all of the water mains that are in service currently and designate the worst ones for the next round of renewals.
My point here is that, as we start to look at shrinking resources, as we start talking about going green and having green water urinals, I think the first place we could start is in percent 18 of the leakage being repaired if, in 19 fact, the commodity that we're trying 20 to save is actually worth enough to 21 sell to other municipalities to bottle 22 as -- if they can bottle that water 23 that they're bottling based on some of the surveys I've seen about the quality of our water, we could bottle our own. 258 4/7/08 - Whole - 080022, 157, 160, 164, 165 So if the product is worth what it's worth, then we might want to take a look at investing in repairs, which are labor-intense. We can hire Philadelphians and put them to work in honest jobs to do some of the repairs if we just looked at it as a potential revenue increase to our municipality. And I'd like you to look at that. Twenty-three percent may be less than some; it's still too much, in my opinion. COMMISSIONER BRUNWASSER: Right. Well, our -- the major cost factors with the lose of water are the loss of the chemicals that you use to purify the water and also the electricity that you use to pump it.
Okay. COMMISSIONER BRUNWASSER: And those are the two major components because we do not have to pay for the source itself.
Second 259 4/7/08 - Whole - 080022, 157, 160, 164, 165 question: Under the Controller's report, we see that some of our larger institutional customers that owe us money happen to be the federal government, state government, and others? And what are we doing to collect some of those outstanding balances owed by them? (Timer bell rings.) COMMISSIONER BRUNWASSER: We would like to shut them off. (Laughter.) COMMISSIONER BRUNWASSER: But we -- you know, again, we don't make that determination ourselves, and I think -- I think the new revenue commissioner, I think, has promised to become, you know, much more aggressive, and hopefully, at first, he will hold out the olive branch to these other governments and these other agencies and maybe nonprofit or quasi-city or state, government agencies and, you know, hope for the best, that we 260 4/7/08 - Whole - 080022, 157, 160, 164, 165 collect before we're forced to do a shutoff.
Okay. I'd like to see them become current. Uncle Sam has gotten a free ride off of the City of Philadelphia long enough. Thank you, Madam President.
You're welcome. The Chair recognizes Councilman Clarke.
Okay, thank you. Thank you, Madam President. Storm-water management, I'm going to follow up on that, but before I do, do I understand that to the Councilman's question with respects to government entities that we do not -- or you cannot make the decision to shut 'em off, but yet we can shut off a senior citizens' building because of a dispute in a billing? I see some inconsistencies in that. COMMISSIONER BRUNWASSER: What 261 4/7/08 - Whole - 080022, 157, 160, 164, 165 we found out with the senior citizen building was, apparently --
I know what you found out. COMMISSIONER BRUNWASSER: -- we did not know it was a senior citizen building.
I'm just talking about as a matter of respect. And I'm really ticked off about that; that's why I let Councilman Greenlee ask the questions your guy out there and came back two times after apparently being told, allegedly being told by a supervisor to terminate the shutoff notice, and came back in spite of the fact that he saw the senior citizens sitting in that building, then he's made a decision that he didn't care what anybody did; he was going to cut that off anyway. But yet, we have some hesitancy in shutting off a government building, right? A government that 262 4/7/08 - Whole - 080022, 157, 160, 164, 165 clearly -- COMMISSIONER BRUNWASSER: But the hesitancy wasn't on the Water Department's part, Councilman.
Pardon me? COMMISSIONER BRUNWASSER: The hesitancy wasn't on the Water Department's part; it was on the -- you know, we do not -- we can only shut off those buildings that --
You get authorized? COMMISSIONER BRUNWASSER: -- that we've been authorized to shut off by the Revenue Department.
All right. Well, I'll deal with the Revenue. Storm-water management. And I apologize, I had to step out of the room a minute 'cause I knew Councilman Green was doing a follow-up. What was the answer to the question about whether or not we can expand the program to allow licensed 263 4/7/08 - Whole - 080022, 157, 160, 164, 165 recognized engineers to submit storm-water management plans that we would simply, based on understanding the nature of the entity that we were dealing with, approve and move this processes along as opposed to hiring as many additional engineers that you're talking about hiring to do the actual analysis? What was the answer to that question?
When we tried that program, it was a pilot program we stated with the public agencies of subsidized housing. And we were going to see how it worked. It may have worked well and we might roll it out to others. Ironically, it has not been used once, so the program's been put out there; no one's tried it or attempted it yet.
Are we going to find out? Or we don't think it's our responsibility to find out?
Well, I think the program's available and people have not availed themselves of it at this point. I'm not sure why.
'Cause it just started. I mean, it's not like we implemented that program a long time ago.
'Cause it happened as a result of the Norris Square project --
-- in Councilwoman Sanchez's -- and that was five months ago, so we're not talking about --
So are we going to -- I mean, what are we going to do? I mean, I understand you do 265 4/7/08 - Whole - 080022, 157, 160, 164, 165 what you do in your department, but I, like Councilman Green, at the end of the day, people look at -- they say, you know, Councilman -- and I heard earlier reference about a ten-day process, but right now, I have two projects in my district that I just dealt with that had to do three resubmissions that went beyond the ten-day process.
I mean, I can certainly control the amount of time a submittal is in my hands and how long it takes me to review that. I can control that with resources, with consulting services. What I can't control is the quality of that submission. So when we're seeing six, seven submissions and we write a three-page letter defining exactly what needs to be done, that's a 266 4/7/08 - Whole - 080022, 157, 160, 164, 165 problem. So we went on a proactive approach and said, okay, we need more training. We've had several outside sessions where, you know, basically seminars, workshops with developers, with the development community, in the hopes that we can all get on the same page to make this all quicker. The submittal level has come down; it's down to about three submittals now for a project approved. Our time to review has come down very much; it's probably one-fourth or one-fifth of the time it was a mere eight months ago. So there's been dramatic steps taken. Is it perfect? No, I'll grant you, it's not perfect.
So why wouldn't we entertain expanding the program that has worked in the suburban counties that allows licensed, recognized, knowledgeable engineers to 267 4/7/08 - Whole - 080022, 157, 160, 164, 165 simply submit a plan --
Don't forget. We're coming from the experience that the engineering firms that are submitting are all licensed engineers and we're having a problem with that. I mean, that's the foundation -- (Timer bell rings.)
The problem is with the nonprofit, it's with the engineers; it's not with the Water Department.
No, no. So we took a smaller pool and said let's try it, let's see how it works, let's see how successful it is. If it works good for both parties, hey, I'm all for it. 268 4/7/08 - Whole - 080022, 157, 160, 164, 165
But if there's no submissions, you won't know if that works 'cause said that nobody's taken advantage of the program because we've limited it to a. (Indiscernible; parties talking over each other.)
And you did point out very appropriately that it's been a relatively short period of time.
You're still not answering the question. Why don't we authorize everybody to -- why can't we do a pilot program -- I heard the bell, Madam President, I'm winding down. Why can't we widen the pool of people to do the submissions in a pilot program? I mean, the problem with nonprofits, nonprofits run on cycles, so when the funding is available at PHFA, which is one time a year, then you may get submissions. Developers want to develop every day 269 4/7/08 - Whole - 080022, 157, 160, 164, 165 of the week, so the ability to submit storm-water management proposals are probably going to be on a more consistent basis.
Council President Verna, Rhina Cutler, Deputy Mayor for Transportation and Utilities. Councilman, I am unaware of the issue of the pilot program. I have heard, although not recently, that there were issues with the development community in terms of the time it takes to processes the plans for the development. I'd like the opportunity to go back and take a look at the pilot program and see if it can it, in fact, be expanded. I will say for the record that even on road projects and bridge 270 4/7/08 - Whole - 080022, 157, 160, 164, 165 projects for engineers, oftentimes the engineers that the private developers use are not familiar with the standards that we require them to be familiar with. But that, in fact, should be our job to provide that outreach to tell me people what it is we want from them. So I will make a commitment to go back and look at this and see where the gaps are and then get back to the President with information for you all.
Thank you. The Chair recognizes Councilman Rizzo.
Commissioner, I think we really need to correct the record. With the government agencies that owe the Revenue Department for water, in many 271 4/7/08 - Whole - 080022, 157, 160, 164, 165 cases, it's slow pay for reasons of bureaucracy, and they know that it's slow pay. The money arrives; it's not like -- and I'd like you to tell me if I'm wrong here. There's no government agencies that have refused to pay us. It's the fact that they're slow in paying us; is that correct? Is that exactly what the scenario is? COMMISSIONER BRUNWASSER: I presume you're correct, Councilman. I don't know enough on these individual properties but, presumably, the federal government has enough money to pay us.
-- we just can't say here in Council that the government isn't paying our utility bills when, in fact, I don't know if they're subject to penalties for slow pay, but I'm sure the Commonwealth of Pennsylvania pays their water bills; at 272 4/7/08 - Whole - 080022, 157, 160, 164, 165 least I would hope so. And if that's not the case, I think we need the Deputy Mayor of Utilities to have the Revenue Department come back here to tell us if any government agency owes the City of Philadelphia money, whether federal or state. DEPUTY
Councilman, it's my understanding -- and, again, we are not the agency that collects the water bills, but it is my understanding that they not only owe us the original amount, but they are subject to penalties and they owe us that as well.
But the issue is that they're not refusing to pay, it's slow pay; is that correct. DEPUTY
That is my understanding. Perhaps I could just call them and nudge them along a little.
Well, let me 273 4/7/08 - Whole - 080022, 157, 160, 164, 165 tell you, if anybody can nudge, you can do it. (Laughter.)
Let's go back to something very basic, Commissioner, I want to talk to you about. I'm having a tough time understanding the impact on this new rate that you're trying to develop for storm water. I'd like to know what effect it's going to have on the average residential customer. COMMISSIONER BRUNWASSER: Councilman, most residential customers will basically not be affected by the new ordinance that we're seeking as part of the next rate process. What happened in Fiscal Years 2002 through 2004 was that we had discovered in the 1990s that we had -- the model that we used as a surrogate for storm water, which is meter size, was not allocated approximately, and the residential customer was 274 4/7/08 - Whole - 080022, 157, 160, 164, 165 overpaying for storm water in their service charge, and the large properties were underpaying, the commercial/industrial group was underpaying. So between the years 2002 and 2004, in three gulps, we straightened out the difference between residentials and commercial/ industrials so that most residentials are now paying appropriately for storm water in their bill. Their service charge is allocated based on a typical or average-size residential parcel. So that's what we did back then. At the end of Fiscal 2004, the commercial/industrial customers, as a whole, were appropriately charged for storm water, but within that group, using meter size, which is still a surrogate, was not the best method. The best method would actually be to -- using GIS and BRT and Records Department information to actually 275 4/7/08 - Whole - 080022, 157, 160, 164, 165 take a look and see what the size of their parcels are and the characteristics of those parcels vis-a-vis storm water. In other words if you have two identical-sized lots and one is completely paved and one is completely grassed, the one that is paved should pay more than the one that is all grassed, because there's a higher runoff coefficient from the paved parcel. So this is the gist of what we're planning to do. Beginning in Fiscal 2010 through Fiscal 2012, we hope to reallocate within the commercial/industrial group appropriately based on lot size and not on meter size.
So you do it presently by meter size? COMMISSIONER BRUNWASSER: Yes.
Scattered throughout the City, there are under 276 4/7/08 - Whole - 080022, 157, 160, 164, 165 2,000 water-only customers; that means they have onsite sewage, septic tanks. (Timer bill rings.) COMMISSIONER BRUNWASSER: Yes.
In your testimony, you're encouraging people to recover storm water. COMMISSIONER BRUNWASSER: We are, but we are able to offer the large-meter customers who can make a real dent in storm water --
Commissioner, I'm talking past. I started off my conversation talking about the average residential customer. COMMISSIONER BRUNWASSER: Right.
You have 2,000 customers that have no sewage at all going to you that's going into a septic tank, it's pumped out. Why would we want to go after those? And I think you better check with the Law Department; I think there was a lawsuit that stopped that. 277 4/7/08 - Whole - 080022, 157, 160, 164, 165 COMMISSIONER BRUNWASSER: There was in the 1980s.
And the -- so I think we have to understand what the lawsuit said before we move forward, to see if it's even appropriate to do, but those 2,000 customers that you're encouraging to recover their storm water that have no 11 tie to the City's sewage systems to try to recover or charge them for storm- water runoff when, in many cases, it goes, in the northeast or the northwest, into Wissahickon Creek. So I'm going not to be very supportive of that effort to charge these -- especially the water-only customers an additional fee for water runoff, where they pay zero right now, correct? COMMISSIONER BRUNWASSER: Yes. They do not pay for storm water.
Okay, all right. We're going to need to learn 278 4/7/08 - Whole - 080022, 157, 160, 164, 165 more about that. You know, I personally try to be very supportive of what you folks do over there, but sometimes I don't want to see you get unreasonable. And that one to me seems a little unreasonable. Thank you, Madam Chair.
You're welcome. The Chair recognizes Councilman Kelly.
Thank you, Madam Chair. First of all, good luck in trying to get money from the federal government. The way they're spending our money today, with the national debt going up, I'm not so sure they could afford a water cooler at this point. But good luck to you, anyway. Commissioner, what I want to ask you is what's -- maybe it's more appropriate if I ask this to the Revenue Commissioner, but I want to 279 4/7/08 - Whole - 080022, 157, 160, 164, 165 know the criteria used to shut off any facility. In other words, do you have a different policy regarding -- whether it be apartments, whether it be nonprofits, whether it be a business or government building -- is there any difference there? COMMISSIONER BRUNWASSER: Well, actually, the major division is between residentials and commercial/ industrials. So when it comes to a residential shutoff, the criteria is two cycles, two billings, two payments missed, with a total of at least $75 owed before the Bureau would start a shutoff procedure. Now, the reason it's only $75 is, we made a commitment that it's much better to head off these problems before the money gets out of hand. So $75 isn't a lot of money, but it's best to begin your collection effort in the early stages, when the person 280 4/7/08 - Whole - 080022, 157, 160, 164, 165 has a better chance to resolve a reasonably small bill.
Would that include apartments also? COMMISSIONER BRUNWASSER: Yes, I believe so, yeah. I think it's the -- when you get to commercial, to a business establishment, they only have to be one month in arrears before we can start the procedure. Now, the shutoff procedure, with due process, the sending of two notices, adds a good two months or so, two to two-and-a-half months to the process before someone actually shows up to shut off the property. And most folks do make an agreement, or they either pay their bill off or call for an agreement and make a partial payment to the Revenue Department and an agreement to pay off the old balance perhaps over the next six months or so.
All right. 281 4/7/08 - Whole - 080022, 157, 160, 164, 165 In other words, it's two months, and after two months, the Revenue Department would send you a list of properties to be shut off? COMMISSIONER BRUNWASSER: Well, it would be two months of them missing the bill -- not making payment. They have to have at least a $75 delinquency.
And then it's an additional two month to send out the notice? COMMISSIONER BRUNWASSER: Not, it will -- they will send out, I guess, a 30-day notice, a first notice, which basically tells you that in 45 days -- after 45 days, if you've not paid your bill or come in to make an agreement, that you will be --
Okay. COMMISSIONER BRUNWASSER: Now, 282 4/7/08 - Whole - 080022, 157, 160, 164, 165 30 days after that 45-day notice, they get a 15-day -- they get a second notice of shutoff, telling them that they have about days to come in. 6 And then anytime after that 7 date, which is at least 15 days out, 8 the Water Department will come out and 9 shut you off. 10
In other 11 words, you work very, very closely with 12 the Revenue Department. 13 COMMISSIONER BRUNWASSER: Yes. 14
In other 15 words, they would notify you, if the person made a payment -- COMMISSIONER BRUNWASSER: Yes.
And that would be within the 15 days, I assume; is that right? COMMISSIONER BRUNWASSER: Yes. You know, so what you've got is a 283 4/7/08 - Whole - 080022, 157, 160, 164, 165 minimum of two months of nonpayment of the bill plus a very minimum of 45 days. Now, there's some administrative time that may go by, maybe another week to ten days, so you're talking -- generally speaking, when the Water Department gets a property for shutoff, it's generally a good four months since they've paid their bill, I would say, on average.
And is that policy still with -- include nonprofits or government offices? COMMISSIONER BRUNWASSER: Yes.
In other words, it includes everyone. COMMISSIONER BRUNWASSER: Yes.
Okay. All right. Thank you. Thank you, Madam President. Thank you, Commissioner.
The Chair recognizes Councilman Green. 284 4/7/08 - Whole - 080022, 157, 160, 164, 165
Thank you, Madam Chair. Do you negotiate your own electric rates? COMMISSIONER BRUNWASSER: No, no, we don't.
Who does that? COMMISSIONER BRUNWASSER: The City does that on our behalf.
The City -- COMMISSIONER BRUNWASSER: Of Philadelphia, the Public Property.
Public Property negotiates that. COMMISSIONER BRUNWASSER: Energy office.
Okay. How much electricity -- how much do you buy; do you know what your rate is compared to commercial industry or -- COMMISSIONER BRUNWASSER: We have been governed up until -- well, actually, I think we're still under it. 285 4/7/08 - Whole - 080022, 157, 160, 164, 165 We've gotten a discount that the City negotiated some years back, and I think it's still in effect until, oh, I don't know, maybe January, January of 2009.
How much do we pay for chemicals for the processes? COMMISSIONER BRUNWASSER: Quite a bit. It's been going up. Our chemical costs have gone up about $5 million just in one fiscal year.
Do you know what the total dollar-amount is? COMMISSIONER BRUNWASSER: Yeah. I could tell that you in a second. This year, we expect to spend $19.6 million.
And how much do you pay -- do you know the dollar-amount you pay for electricity? COMMISSIONER BRUNWASSER: It's -- well, I'm -- give or take a million or two, we're about a $20 million- a-year user of electricity. We --
And that 286 4/7/08 - Whole - 080022, 157, 160, 164, 165 involves operating the facilities to make clean water? COMMISSIONER BRUNWASSER: Yes.
And then also pumping? COMMISSIONER BRUNWASSER: Yes. The pumping is probably the single most expensive part of our operation.
Okay. So it's roughly $40 million if -- as Councilman Jones is pointing out, if we could -- what is real -- if we were to repair the infrastructure so that we don't lose percent of our water a 16 year, how much would that cost? 17 COMMISSIONER BRUNWASSER: Uh -- 18
What's a 19 realistic number to get down to, 5 20 percent loss, a 10 percent loss? 21 COMMISSIONER BRUNWASSER: This 22 is a big controversy within the water 23 industry. We have on hand -- the head of our system for distributing water, he is the quintessential expert in the 287 4/7/08 - Whole - 080022, 157, 160, 164, 165 U.S. There's a limit to what we can do, but there's leakage in every system.
Sure. COMMISSIONER BRUNWASSER: Even new systems. And there's an engineering --
I'm not being -- I'm just asking the question. COMMISSIONER BRUNWASSER: No. 12
What's realistic to get down to? Is there an investment we could make that could lower our leakage? And what is it? COMMISSIONER BRUNWASSER: We are investing, but what that investment dollar is, I don't know.
Okay. It just seems we could save 9 million a year roughly in chemicals and electricity if we got down to zero leakage; that's unrealistic. But what is the most efficient system in the country; do you know? 288 4/7/08 - Whole - 080022, 157, 160, 164, 165 COMMISSIONER BRUNWASSER: No, because most of the water utilities have varying ways of reporting unaccounted-for water. Some utilities account for one hundred percent of their water, but -- which -- and none of it is leakage. So it's a -- the -- our people have tried to get the American Water Works Association to adopt a standard of what leakage means. And I would say that it would be wonderful to lose only 10 percent of your water. Remember, now, some of the water losses that we have are in firefighting or in legitimate uses of our hydrants.
Sure. COMMISSIONER BRUNWASSER: But it would be a tremendous investment to try to really bring down the leakage. And it's a amazing 'cause --
Do you know if it would be a tremendous investment, 289 4/7/08 - Whole - 080022, 157, 160, 164, 165 or is that a -- COMMISSIONER BRUNWASSER: Oh, we're --
So what's it on the order of? COMMISSIONER BRUNWASSER: We go through 1500 miles of water main inspection each year, but -- just for inspecting, and it's not as obvious as one would think, but it would be a large number to try to, for example, to say we're going to replace all of the lydite pipes in our distribution system; this is pipe that was laid about 60 years ago. Probably because of the war, we did not have the best materials at that time. That's a group pipes we'd love to replace. And we have pipes that are over a hundred years old in the system, some of which are doing perfectly well. But if you were to replace all of that and somehow go into all the old parts of the City, especially the 290 4/7/08 - Whole - 080022, 157, 160, 164, 165 parts that have, you know, subway cars near them or heavy truck traffic, et cetera, that would be a monumental task. (Timer bell rings.) COMMISSIONER BRUNWASSER: It costs us, I think, per one mile of sewer main -- about $3 million in miles per sewer main and about 1 million per water main per mile. So we have 3300 miles of water main and --
And how much of the kind you're talking about, lydite and over a hundred years old? COMMISSIONER BRUNWASSER: I don't have that percentage. I would say that our average age of pipe is about 75 years.
Okay. Does anyone else have questions? (Councilman Clarke assumes position as Committee Chair.)
Yes, 291 4/7/08 - Whole - 080022, 157, 160, 164, 165 Councilman.
Thank you Mr. Chairman. You know, you guys are pretty innovative. I heard from one of my contacts in the suburban company that you're -- in trying to deal with this leak issue, you've done something very -- or you're considering -- you're going to lower the pressure in certain areas when the pressure is not needed to minimize the amount of water that's lost, you know. And I think that's a pretty smart thing for you guys to even think of. So there's a perfect example of thinking out of the box and being able to reduce the loss of water when water pressure's not required. Good thought there. One of the things that really 292 4/7/08 - Whole - 080022, 157, 160, 164, 165 bothers me, and I've talked to this issue before, is the permits that we give to contractors, landscape gardeners, or whoever, to come to a -- to come to a hydrant and fill up a tanker truck and pay only a few dollars for that water. I mean, I saw personally -- not recently, but in the recent past, a tanker truck pulling up to a City limit hydrant, Northwestern and Germantown Avenue, loading up many thousands of gallons of water and heading right back to the suburbs with it. I would hope that we are scrutinizing as carefully as possible, especially -- you know, when water was cheap, I guess it wasn't a big deal, but more people, I think, are taking advantage of those construction permits and taking water to wash down driveways at their facility or whatever, and that's not the purpose 293 4/7/08 - Whole - 080022, 157, 160, 164, 165 of that permit for them to take water without -- it's blanket. They can take, from what I understand, as many gallons of water as they want with that permit and have to self-report on how much they take? COMMISSIONER BRUNWASSER: Well --
I don't know how it works, but could you please send a copy to the Chair of how many of those type of arrangements we have and the purpose of them and if we need to refresh the requirements for those, I'd appreciate it. Do you have any knowledge of that right now? COMMISSIONER BRUNWASSER: Well, I can say, Councilman, I know you have raised the issue in the past, and due to you raising that issue, we made sure that we raised the cost of these permits to reflect what we believed were accurate, true costs of the 294 4/7/08 - Whole - 080022, 157, 160, 164, 165 department.
How does a suburban contractor come to a Philadelphia hydrant and take thousands of gallons of water someplace? How do we get compensated for that? I mean, tell me, how much is this permit? Maybe I'll buy an old used truck. I don't know. COMMISSIONER BRUNWASSER: I'm not sure this guy had a permit.
How much is the permit? Somebody knows. COMMISSIONER BRUNWASSER: I do know we raised the cost significantly. It's $200 for a one-week permit and $2,000 for a six-month permit. Now, believe it or not, our water, as you say, it's not as cheap as it used to be but it's still very cheap, and it's less than half of Philly's -- well, Aqua, Pennsylvania and Pennsylvania (indiscernible).
That's my 295 4/7/08 - Whole - 080022, 157, 160, 164, 165 point. That's why a particular contractor got the permit, had his business in Montgomery County, came to Philadelphia, filled up 5, 6,000 -- I don't know how many a truck, took it back, and they're watering the lawn with it. So I really think that there should be a better way. COMMISSIONER BRUNWASSER: Right.
If they want our water, they should pay for it by the gallon, just like any other commercial customer pays. I mean, for 2,000 bucks for six months, they can take a lot of our water. COMMISSIONER BRUNWASSER: I agree with you, Councilman. If you see him again, if you could, you know -- of if you give us the location, we may take -- you know, we have people who live up that way, and we'll look for him and see --
I just think 296 4/7/08 - Whole - 080022, 157, 160, 164, 165 the whole process should be as tight as humanly possible. It's got to have real justification for it. Just a person to just show up with 2,000 bucks and to give them six months, especially during the summer months, a blanket access to a hydrant, that if a policeman shows up, I mean, that's how I learned about it, I called the police on this guy. And they went over and he showed 'em a permit and drove off to Montgomery County. So I really think it's too loose, and I'd appreciate your revisiting it. COMMISSIONER BRUNWASSER: We will, and we will check all of our existing permits. And it's not as many as one would think, but -- so we'll be able -- should be able to pin down who this is.
Good. And do you have any comments on that lowering the pressure thing? I forgot 297 4/7/08 - Whole - 080022, 157, 160, 164, 165 to ask you about that. Have you started to do that yet? COMMISSIONER BRUNWASSER: Yes, yes, we have. As I said, we have one of the foremost experts in the water industry on unaccounted-for water, or lost water, as some would say. And we isolated -- we were able to isolate a piece of our area, our service area in one of the neighborhoods. And so we get good readings going in. We actually have a meter of the water going into feed this neighborhood. And we know, with AMR now, what all of the meter readings are on any given day. So when we play with the pressure, for instance, perhaps after midnight till 8:00 a.m., or what have you, we are able to tell -- have a pretty good idea of what kind of leakage there is in the system. (Timer bill rings.) COMMISSIONER BRUNWASSER: -- 298 4/7/08 - Whole - 080022, 157, 160, 164, 165 and then test as to water pressure. I think our water pressure is approximately 55 pounds per square inch. If we lower that to 30 or something like that during these offpeak hours, we get an idea of how much is getting lost, you know, and how much is not getting lost, so...
Thank you, Councilman. Councilman Green, Councilman Kenney was here earlier.
Thank you, Mr. Chairman. I just have a -- I have a question about your testimony and about the explanation for why rates are going up that you provided. One 299 4/7/08 - Whole - 080022, 157, 160, 164, 165 of my staff members was at your meeting the other day. I don't understand how pension health care and other fringe benefit costs are causing your rates to go up in the future because, you know, if we do the pension obligation bond, those costs are going down for the city as a whole, and that would presumably include you. COMMISSIONER BRUNWASSER: We will adjust -- I mean, the budget can be adjusted if that actually happens. I'm assuming it can happen, but I have not -- we have not heard exactly what the parameters of that will be for us.
So these rate increases assume that the bond's not issued; is that correct? DEPUTY COMMISSIONER CLARE: It --
In other words, it assumes your contribution to the MMO. 300 4/7/08 - Whole - 080022, 157, 160, 164, 165 DEPUTY COMMISSIONER CLARE: It assumes a roughly percent increase 4 over Fiscal '08 costs. In the last 5 four years roughly, our pension and health-care costs have doubled. So what was provided in the last rate case is roughly one half of our current costs. So we're -- although we've saved money in our areas, you know, the current rates do not have enough even to cover what our Fiscal '08 pension obligations are.
Madam President, Steve Agostini, Budget Director. Councilmember, we will go back and look at those rates as they are affected by pension. It's our anticipation that if we do move forward with a pension obligation bond that, indeed, there will be savings that will accrue not only to the Water Department but to the Airport 301 4/7/08 - Whole - 080022, 157, 160, 164, 165 Commission as well, and they will get reflected in rates.
Thank you. Along the lines of what Councilman Rizzo was asking, it's come to my attention that we have deals with surrounding municipalities, counties, water authorities, et cetera, where we charge them for our water far less than we charge our own citizens. Can you explain why we do that, why we don't charge them the same thing we charge a business in our jurisdiction or a citizen? COMMISSIONER BRUNWASSER: Basically, it's -- this is -- these are wholesale rates. We are not allowed to retail to the suburbs. We don't have individual homes or businesses that are our customers in the suburbs. So what we do is, we bring, for instance, the water to our border, where it is then taken by Bucks County 302 4/7/08 - Whole - 080022, 157, 160, 164, 165 or Aqua, Pennsylvania, and distributed into their system, into their series of water mains, et cetera. And they are the ones that collect from their retail customers thereafter. So what we're doing is, we're providing wholesale water at -- for example, Bucks County, it's one pipe, one pipeline at a reasonably steady amount of flow 24/7, and there's a cost associated with that, and we have fully captured all of the costs associated with providing water to Bucks County. And when their current contract, which was signed in 1966, when that contract expires in 2011, we will also be charging them a management fee over and above the cost of service rates.
We only charge for the cost of service; we don't make a profit on that? COMMISSIONER BRUNWASSER: We 303 4/7/08 - Whole - 080022, 157, 160, 164, 165 have on virtually all, I think, all of our other wholesale contract -- wholesale contracts, most of which are the waste-water side, we do charge a management fee of at least percent. 7
Were those 8 contracts -- are those contracts 9 required -- was that 1966 contract 10 approved by City Council? DEPUTY COMMISSIONER CLARE: We have an ordinance that enables us to wholesale both water and waste water.
But any contract over a year requires the approval of City Council? DEPUTY COMMISSIONER CLARE: No, not based on the enabling legislation from Council, which allows to enter into long-term agreements.
That's a Charter provision; we can't overrule a Charter provision, I don't think. COMMISSIONER BRUNWASSER: No, these are -- I think the Charter 304 4/7/08 - Whole - 080022, 157, 160, 164, 165 provisions were written for the expenditures, not for -- not for receiving revenues --
Okay, that's true. COMMISSIONER BRUNWASSER: -- from outsiders.
Yeah, okay. Well, who sets the wholesale rate? COMMISSIONER BRUNWASSER: The Water Department.
So why is our wholesale rate not making us a, you know, at least a percent internal 17 rate of return like private industry 18 would require? 19 (Timer bell rings.) 20 COMMISSIONER BRUNWASSER: I think most of the water industries in Pennsylvania are probably not making much more than 10 percent currently.
Okay. Why aren't we making a 10 percent internal 305 4/7/08 - Whole - 080022, 157, 160, 164, 165 rate of return? Why don't we set wholesale rates at a point that lowers the cost of operation to the citizens of the City of Philadelphia who subsidize this every year with capital expenditures, floating bonds, et cetera? COMMISSIONER BRUNWASSER: Yeah, the citizens of Philadelphia do not subsidize the townships, neither do townships subsidize the City. What we are able to do through these contracts is to spread the large fixed costs of our -- of our water plants, our waste-water plants, and the appropriate -- the appropriate water mains and sewer mains that we have servicing, you know, both the City and the suburbs; in other words, they also pay for capital separately.
To us. COMMISSIONER BRUNWASSER: Yes, yes. They get a capital charge in addition to their operating charge. 306 4/7/08 - Whole - 080022, 157, 160, 164, 165 Now, this brings us about $35 million in annually in revenue. And, obviously, that -- the owners of the system, the citizens of Philadelphia, the government of Philadelphia owns us. That accrues to our benefit. And I should say that they have already received notice of the rate increase, and they will begin paying new higher rates beginning July 1st.
Can we, by ordinance, set what rates minimum for that you are required to charge? COMMISSIONER BRUNWASSER: I don't believe so, I don't believe that's in the Charter.
If we've enabled you to enter into these contracts, can't we set a floor on rates?
I don't think so. 307 4/7/08 - Whole - 080022, 157, 160, 164, 165 COMMISSIONER BRUNWASSER: I think you can set standards, certain standards. We set rates -- the Water Department sets rates within the standards set by City Council. In other words, City Council has told us, We want eligible seniors below a certain income level to get a 10 percent discount. So when we set 11 rates, that is part of our standard, 12 the standards that the Council has set. 13 So I think in the Charter, it 14 says that the Department sets rates 15 subject to the standards of the 16 Council. But the Council does not set 17 rates. 18
Okay, 19 Councilman Green, if you have other 20 questions -- 21
-- 24 you're going to have to wait for the 25 next go-around. 308 4/7/08 - Whole - 080022, 157, 160, 164, 165 Thank you. The Chair recognizes Councilman Kenney.
Thank you, Madam President. I was in my office, listening to the testimony, and the time I was up here, I was listening to all of the things that you do wrong. I figured I'd come up and tell you about something you're doing right. I think in the last years 14 I've been here, I think the Water 15 Department has been one of the more 16 professional and competent departments in our government. But I want to compliment you on one particular effort that you've made, and that's relative to the flooding conditions and situations in South Philadelphia, especially during heavy rains. First of all, I think that the seminars or meetings that you have 309 4/7/08 - Whole - 080022, 157, 160, 164, 165 held, the town meetings, have been extremely informative, extremely helpful in helping people understand how a lot of these issues started with the angle of their outflow pipes and all of these things that I sat actually for the first time and learned a lot myself. So I think it's done a great deal of education in getting people to be less -- not less annoyed about their flooding problems but more understanding of what the physical and engineering issues are surrounding it. Secondly, on your capital program, your capital projects in that South Philadelphia area, especially the huge water mains, storm drains, and storm mains that you've been reinstalling and refurbishing and fixing down there have gone a long way in reducing the number of complaints that I know I get and for sure that Councilman DiCicco has gotten over the 310 4/7/08 - Whole - 080022, 157, 160, 164, 165 years 'cause he's gotten slammed as heavy as the rain has slammed us in the area. So a lot of these capital projects that have been completed, that are ongoing, and that are planned have really calmed down the real serious concerns that people had. We have a little way to go, but I just want to thank you for your attention to this issue because, as you know, a flooded basement can ruin a couple years of your life in trying to get your house back together. So I want to thank you for that and thank you for your professionalism that you've always shown here and in conducting your mission. And that's all I have to say. COMMISSIONER BRUNWASSER: Thank you.
Thank you, Councilman. 311 4/7/08 - Whole - 080022, 157, 160, 164, 165 The Chair recognizes Councilman Jones.
I just thank you for your endurance, having sat through these many hours of testimony. And I would just ask real quick: Your Water Ways Restoration Team, I understand that you've dedicated a crew to remove large debris from streams and tributaries. Can you give me some idea where you've decided to focus your efforts? COMMISSIONER BRUNWASSER: Well, Councilman, I think we have six water ways -- I mean, we have watersheds in the City and so, you know, obviously, Fairmount Park everyone is familiar with, but we have water -- we have a number of watersheds and we have Pennypack Park and Cobbs Creek and places like that. I think they go where they believe is the most -- is the most problematic spot, but they're working 312 4/7/08 - Whole - 080022, 157, 160, 164, 165 their way through the park, and they've removed a tremendous amount of tonnage. I believe we may be reporting this in Philly Stat, you know, from now on how much debris has been removed from waterways inside the City. This goes all the way from abandoned vehicles to the usual shopping carts and trash. And this is the -- the group that does this is very energetic and very happy to do this kind of environmental work. So we're going to see whether or not we can augment them in the future as well. We'll see what the need is.
It says you have five new projects. I just -- for purposes of -- if you could give to the President those projects, that would be helpful to me. COMMISSIONER BRUNWASSER: Okay. 313 4/7/08 - Whole - 080022, 157, 160, 164, 165 Great.
Thank you, Madam Chair. Back to this issue of what we charge the suburbs. Isn't there one place where you sell water directly, to Philadelphia Park? DEPUTY COMMISSIONER CLARE: There is one building. We do waste water directly on City Line Avenue, the GSB Building, I believe, and the Friends Select Building.
I thought in the '70s, when Philadelphia Park was built, we put a water line right into that property. COMMISSIONER BRUNWASSER: There 314 4/7/08 - Whole - 080022, 157, 160, 164, 165 may have been a pipeline at one time, but since the late '70s, Philadelphia Park has been a customer of Bensalem.
You might want to check on that. COMMISSIONER BRUNWASSER: Okay, we will.
Maybe that's where percent of our water's going. 11 I don't know. But there was a direct 12 line from us to them, I believe. I 13 could be wrong. 14 But in this time, when we're 15 -- yes? 16
Point of 17 information. 18 COMMISSIONER BRUNWASSER: The 19 Chair recognizes Councilman Jones. 20
Thank you, Madam President. That's percent of our fresh 23 water that we lose annually to leaks from breakage.
Thank you, 315 4/7/08 - Whole - 080022, 157, 160, 164, 165 Councilman Jones. So I note -- can you tell me -- I'm trying to figure out what we can make by having different wholesale rates. And we're making a lot of tough choices in this budget year for us. I don't know whether we can recapture, as the owner of the Water Department, any revenue or profits you have or whether we can place a tax on water that's put outside the City. We can't do that? COMMISSIONER BRUNWASSER: That was -- there was a time in the 1970s, when the Water Department was charged a payment in lieu of taxes, and that was thrown out by the State Supreme Court.
Well, we can tax water that crosses the City line from Philadelphia to Bucks County or place a tax in addition to the wholesale rate? Has that ever been tried? COMMISSIONER BRUNWASSER: I 316 4/7/08 - Whole - 080022, 157, 160, 164, 165 don't know if that would be legal or not. I mean, that would be a question, obviously, for the Law Department, I suppose.
I just note that we're charging our -- for water charges, we're charging our residential customers here in the City of Philadelphia $20.36; I don't know what that is per -- what is that per thousand gallons? COMMISSIONER BRUNWASSER: No, that's a typical customer. That's 7,000 gallons.
That's 7,000 gallons, okay. COMMISSIONER BRUNWASSER: Or, excuse me, 7,000 cubic feet, which is much, much more than 7,000 gallons.
For 7,000 cubic feet. And what would we charge, say, Bucks County for example? COMMISSIONER BRUNWASSER: I don't have that number at my 317 4/7/08 - Whole - 080022, 157, 160, 164, 165 fingertips. But, again, it's --
Yeah, I understand your point. They charge their customers, what; do you have any sense? COMMISSIONER BRUNWASSER: I think Bucks County, they may be in the table.
They're not -- they're in the table for sewer charges at 49.76 compared to our 18. COMMISSIONER BRUNWASSER: Yeah. I think Bucks County Water & Sewer is a wholesaler. I think Aqua -- well --
So we sell to Aqua in Bucks County? COMMISSIONER BRUNWASSER: We sell -- we sell to Aqua, we sell to Bucks County.
Well, I can tell you Aqua, Pennsylvania, charges its customers in Bucks County 46.51 for the water that we're selling them for 5, 7, 8. They don't have any of the 318 4/7/08 - Whole - 080022, 157, 160, 164, 165 production costs associated with that. It seems to me, you know, with no risk, they're just a resaler, and they're marking us up 4, 5, 600 percent; that doesn't make sense for the City of Philadelphia to do that. COMMISSIONER BRUNWASSER: Yeah. They -- they -- they provide -- there's a provision -- somebody's providing the service of -- you know, most of the cost in the utility is providing the other services associated with providing water, you know, and --
What is the cost of production, including all of the, you know, fixed costs of water? COMMISSIONER BRUNWASSER: It's --
Compared to the -- COMMISSIONER BRUNWASSER: I don't have that number, but the number is quite a bit less.
Well -- 319 4/7/08 - Whole - 080022, 157, 160, 164, 165 DEPUTY COMMISSIONER CLARE: They're charged at full cost of service plus a depreciation and return on investment that exceeds what our retail customers pay. And in addition to that, on top of all that, they pay a 8 percent management fee. 9 (Timer bell rings.) 10
Not currently. Maybe they will start to in 2011. DEPUTY COMMISSIONER CLARE: (Inaudible) ... permitted by contract so most of our. COMMISSIONER BRUNWASSER: Aqua pays that because they're a recent -- they're a relatively recent customer of ours. They signed an agreement, I believe, in 2001.
Well, I would just suggest that I think this is something that we ought to consider hearings on because there seems to me to be the opportunity to capture 320 4/7/08 - Whole - 080022, 157, 160, 164, 165 revenue that we're not capturing that would allow us to avoid some of the other taxes we're considering or increase services to the citizens of Philadelphia and other areas. And I don't hear you guys suggesting that, Hey, that's a good idea, that we should be capturing more money. I don't understand that. COMMISSIONER BRUNWASSER: I think we're charging appropriately to the townships, and I know we've had these discussions in the past. What we'd like -- beginning in 2011, we'll certainly be charging more appropriately for Bucks County. Remember, this is an old -- it's a contract that's been in force for over 40 years now, and, you know --
Can you just provide to the Chair a comparison of other major-city water departments, what they charge surrounding areas for their water compared to what we do. 321 4/7/08 - Whole - 080022, 157, 160, 164, 165 And let's look at best practices around the country and see whether or not your guess is correct. COMMISSIONER BRUNWASSER: No, I'm not guessing about what other utilities charge suburbanites, for example.
No, no. I'm saying, you know, I'm sure Detroit's water system, maybe Atlanta's water system, other people that treat a lot of water, sell to surrounding areas, and we ought to look at that and see what their margins are on that and see whether or not within the industry we're charging appropriate rates or not. Unless you already have that researched. COMMISSIONER BRUNWASSER: Okay. That would be a good piece of research.
Okay. Thank you. No more questions, Madam Chair. Thank you. 322 4/7/08 - Whole - 080022, 157, 160, 164, 165
Are there any other questions from members of the committee? (No further questions.)
Seeing none, thank you very much. MR. McPHERSON: Our next department is the Board of Ethics. (Witnesses come forward.)
Good afternoon. Please identify yourself for the record and proceed with your testimony.
Good afternoon, Council President Verna and members of City Council. My name is Richard Glazer. I'm Chair of the Philadelphia Board of Ethics. Thank you for this opportunity to speak on the proposed budget for the Philadelphia Board of Ethics. With me today at the table is Shane Creamer, who's the executive director of the board. 323 4/7/08 - Whole - 080022, 157, 160, 164, 165
The Ethics Board's FY '09 total appropriation request is $1 million. This amount is the same as the amount specified in Section 2-300 of the Charter, which states that the Ethics Board's budget shall be at least $1 million for the first two fiscal years following the effective date of the Charter amendment. FY '09 is actually the Ethics Board's third fiscal year because the Ethics Board was installed approximately halfway through FY '07, and that was on November 27, 2006. Therefore, this is the first fiscal year that the Ethics Board's budget is not set by Section 2-300 of the Charter. The Board believes its FY '09 budget is the key component in meeting the Administration's ethics priority. If Philadelphia wishes to demonstrate that City government is trustworthy, 324 4/7/08 - Whole - 080022, 157, 160, 164, 165 then the Board's education and advice are the cornerstones of our efforts to create an ethical culture for the City's officers and employees. The Ethics Board's proposed operating budget for FY '09 includes: $835,000 for personnel. $125,000 for services. $13,000 for materialities and supplies. And $27,000 for equipment. Needless to say, these allocations are based on our best estimates of staff needs and operating requirements as the Board continues to meet the mandates established by the Charter and Code. Since the Board was sworn in on November 27, 2006, it has accomplished much: The Board is open and renovated a new office, hired its executive director, office administrator, general counsel, and 325 4/7/08 - Whole - 080022, 157, 160, 164, 165 deputy executive director; Administered an election with the first-ever contribution limits for candidates for city elective office; Implemented electronic filing of campaign-finance reports with exceptional support from the Records Department; And approved regulations for electronic filing of campaign-finance reports and enforcement proceedings. The Board has issued nine advisory opinions, five advices of counsel, and more than 50 informal responses offering guidelines guidance on the City's ethics and campaign-finance laws. Training seminars were provided for candidates and treasurers on the campaign-finance law, and the Board is actively engaged in enforce. The campaign-finance requirements. Perhaps most important of all of its accomplishments, the Board has 326 4/7/08 - Whole - 080022, 157, 160, 164, 165 provided live and in-person ethics training to more than 25,000 City officers and employees in the past year. To our knowledge, no other city has accomplished a live ethic-training program of this magnitude. The assistance of the Personnel Department was critical in meeting this goal. These many accomplishments are set forth in more detail in our first annual report that has been filed with the Mayor and City Council. The budget for FY '08 anticipated nine full-time staff members; however, due to the demands of the 2007 election cycle and the complexity of launching a completely new agency, the Board was only able to hire four of these positions. We expect to add four new full-time staff members in the next few months, including two who will start within the next three to four weeks. The Board's FY '09 budget 327 4/7/08 - Whole - 080022, 157, 160, 164, 165 represents a commitment to expand the staffing level to 11; to increase the Board's capacity to meet three major goals; to provide advice; to conduct training and adjudication; and to ensure compliance with the City's public-integrity laws. More staff will enable the Board to provide more specialized training for City officers and employees to prevent ethics problems before they occur. New public outreach programs and materials will enhance citizens' opinion of City government, and a new business education initiative for vendors will supplement and reinforce broader efforts to eliminate the perception of a pay-to-play culture.
It should be noted that the Board relied heavily during its first two years on pro bono legal counsel to support its litigation activity. The Board can no longer assume that such 328 4/7/08 - Whole - 080022, 157, 160, 164, 165 volunteer legal services will always be available to support its growing volume of litigation activity. The Board has, therefore, requested an additional hundred thousand dollars for its FY '09 budget to meet the need for outside legal representation. Philadelphia has worked long and hard to establish the essential elements of a robust ethics program. With its FY '09 budget, the independent Board of Ethics will continue to build the infrastructure necessary to implement and promote the City's public integrity laws. The Board will continue to work diligently and fairly to restore and maintain public confidence in the integrity of City government. Thank you.
At this time, either I or Mr. Creamer to my left or 329 4/7/08 - Whole - 080022, 157, 160, 164, 165 other staff members who are here with us today would be policed to answer any questions.
Thank you very much, Mr. Glazer. You mentioned in your testimony that you will be implementing a new business education initiative for vendors. Could you share your thought as to how this program will work?
A few particulars, yes. In fact, we have started some of the outreach already in terms of going to the ABA, to the Chamber of Commerce. And recently, I attended a board meeting of the Philadelphia contributionship. But essentially, the idea is to sensitize people who do interact with the City as vendors to the provisions of 17-1400, the laws that relate to noncompetitive bidding contracts, as well as those things 330 4/7/08 - Whole - 080022, 157, 160, 164, 165 that affect City employees when vendors interact with them, such as, for example, gifts at Christmas, conflicts of interest, resolving door, et cetera. Those things not only need to be addressed with the City employees but also with businesses that interact with City employees.
Thank you very much. The Chair recognizes Councilman Greenlee.
Thank you, Madam President. Good afternoon, gentlemen.
I guess this is kind of a general question. And I know you -- and I'm well aware of the ethics training you've done. And in your testimony, Mr. Glazer, you talk about the non-advisory opinions, advices of 331 4/7/08 - Whole - 080022, 157, 160, 164, 165 counsel, and you said more than 50 informal responses. I guess my general question is: Has there ever been what I would call like a written dos and don'ts sent -- do public employees, have they ever been directly informed like that? 'Cause I know the training sessions -- I'm sure there's things you cover in every single one, but they're all, I guess, somewhat different, depending on questions, whatever. Has there ever actually been -- I guess I can't say it any other way -- a dos and don'ts that each employee has?
I'm not sure exactly what you're talking to, but I think I can address it in some respects.
On our website, at a minimum, there are a series of 332 4/7/08 - Whole - 080022, 157, 160, 164, 165 questions and answers with respect to the ethics laws. The City Law Department has also regularly published information on particular issues. The Board itself provides newsletters as well as the training that has been implemented for City employees. And perhaps there's other things that I'm not thinking about.
Yes. There -- we have on our website a list of what we call "Ten Things Every City Employee Should Know About the Ethics Rules."
And I think in terms of topic, it covers about 80 percent of the Ethics Code. It's not exactly what I think you're contemplating in dos and don'ts.
But that may be something that we can consider doing in the future as part of our education and 333 4/7/08 - Whole - 080022, 157, 160, 164, 165 training mandate.
I guess what I'm getting at -- and I you and I had a conversation a while back, and you used the term even before I had a chance to say it, that you didn't want to play "Gotcha," and I appreciate that and I understand that.
But I still think there are questions sometimes that people have, and maybe they're Councilmembers, employees, employees elsewhere, and they're not quite sure, you know. And I know -- I guess it's impossible to cover every single thing that somebody might think about, but there's still seems to be a lot of questions out there. And I guess when I see 50 informal responses, you know, obviously, there's things that come up that people think about. And, again, 334 4/7/08 - Whole - 080022, 157, 160, 164, 165 in fairness, I'm not saying you're out there trying to just catch people, you know. And, you know, I think you have in many ways worked on the education aspect of it, and I appreciate that. But I still -- like I said, I know this is sort of vague and general, and I understand what Mr. Glazer said when he said he wasn't quite sure where I was going, and I'm not totally sure I'm going on this. But I'm just -- I guess I still have a little discomfort, you know, sometimes that people maybe have no idea that they could be doing something at least -- I won't say it's wrong, maybe you guys consider it wrong okay? And that's where I'm kind of asking.
Okay. 335 4/7/08 - Whole - 080022, 157, 160, 164, 165
And that is, there are a relatively finite number of rules for people to follow.
And it is in everyone's interest to make them as clear as possible. But having said that, the fact of the matter is, as our general counsel always says, these issues are fact-sensitive. So the slight changing of a fact, as it relates to conflict of interest or resolving door or gifts or any of these other things, affects the conclusion.
So the bottom line is that we would hope to sensitize people to, when there is doubt in their mind, to ask, to come and ask. And we will be as responsive as we possibly can as promptly as we can, because it's very, very hard to anticipate every 336 4/7/08 - Whole - 080022, 157, 160, 164, 165 imaginable scenario that might arise.
If I could also address your concern. I think the overall mission of the Ethics Board is to enhance and promote public confidence in City government, and there are many ways of doing that. Playing a "Gotcha" game, I think, is not the only to way to do it and it's probably not the best way to do it, and that's why I would --
That's not what we're about. Education and training is another way that we can publicly demonstrate that people are interested in learning about the rules, they are leering about the rules, and we are answering questions about the rules. But there are also other ways 337 4/7/08 - Whole - 080022, 157, 160, 164, 165 that we can exercise our discretion. We can enter into resolutions, which we've done in the past. Even when people are not in violation, where they've been technically out of compliance, we've encouraged them to come to compliance, and they have. And we can demonstrate to the public that these individuals and committees are following our advice and recommendations to come into compliance, and I think those are all important ways to enhance publication public confidence in City government.
Okay. All right. Thank you. Thank you, Madam President.
You're welcome. The Chair recognizes Councilman Kelly.
Thank you, Madam President. Gentlemen, I just want to go 338 4/7/08 - Whole - 080022, 157, 160, 164, 165 back no our ethics bills relating to campaign finances. Now, I voted for those bills, incidentally. I just want to go back and find out if there has been any changes to the effect -- to the effect that contributing limits to any person, any candidate running for office.
Yes, there has been. And there has not been a change by legislation, but the legislation that was originally passed, I'm not sure -- there have been several amendments to the campaign-finance law. I'm not sure whether it was in the original law. I think it was. There's a cost-of-living increase that's built into the contribution limit that goes into effect every four years. The first cost-of-living increase occurred in January of this year, and so individual contribution limits are now $2600 for PACs; and for firms, it is 339 4/7/08 - Whole - 080022, 157, 160, 164, 165 now $10,600. And those will be the limit for the next four years.
I'm not sure I know what you mean by "multiple partnerships."
Well, I mean someone that really is -- it's more or less a person with like common ownership, various ownership with one common company.
That would certainly depend on the circumstance, and we'd look very carefully to see what the sources of the money --
Well, in other words, is it perfectly legal for multiple partnerships with common ownership to make the contributions up 340 4/7/08 - Whole - 080022, 157, 160, 164, 165 to the limit of $2600 -- or 10,600?
10,600 now. I think it would depend on how those contributions were made, what the source of the money was, who authorized the --
Well, according to the ethics bills that we passed, multiple partnerships are limited to $10,600. Now, are they not or are they?
But if someone were to contribute that, what would you do? What advice would you give them?
Well, I'd like to get the question first; that would be the start. We haven't had such a question. We could issue an advisory opinion if we did get such a question, but after the fact, we're left with an enforcement situation, and it would 341 4/7/08 - Whole - 080022, 157, 160, 164, 165 depend upon whether's a violation, it would depend upon whether --
Mr. Creamer, I don't want to disagree with you, but you did have that question, and it was October of last year, and you replied the way you just did now. You replied that it was perfectly legal --
I beg your pardon, Councilman, but I did not answer that question that way. And that was at a training session. I have clarified that.
Well, let me ask you another question: If someone were to contribute above the limits by the ethics bills, what happens there?
Well, if -- it would depend on when it occurred. If it -- and when we've discovered it. If we've discovered it quickly, before the 342 4/7/08 - Whole - 080022, 157, 160, 164, 165 money was spent, we might be able to resolve the matter by having the money returned.
Now, what I'm asking about is, what is the penalty? Is the penalty against the person contributing, or is the penalty against the candidate or the campaign committee?
That's a good question. They're actually both violations. So let's say an individual gives an excess contribution to a candidate for City office; it's a violation of Section 10-102. I think it is Subsection 6 for the candidate to receive it. And it's a violation of Subsection 2 for the individual to make that contribution. So it's both a violation to give and a violation to receive.
Well, what penalties does a person contributing receive? How do you do that? Are you 343 4/7/08 - Whole - 080022, 157, 160, 164, 165 responsible for putting the fine in?
Well, we can recommend fines, yes. The violations are punishable by a fine of $1500 in 2007 and $1900 in 2008.
This would be an adjudication proceeding that either would be done in accordance with our internal adjudication procedure and the Board would make those findings, or by going to Common Pleas Court to seek the enforcement. (Timer bell rings.) 344 4/7/08 - Whole - 080022, 157, 160, 164, 165
But you're still responsible for sending out the enforcement. If someone were to -- well, I'll ask that in the next round.
Very well. The Chair recognizes Councilman Green.
Thank you, Madam Chair. Good afternoon, Mr. Glazer and Mr. Creamer. How are you?
Good. I was looking for -- I'm not really following up on Councilman Kelly's line of inquiry, but I was looking for 10-102. Is that a Charter or a Code reference?
10-1026 and 10 -- 345 4/7/08 - Whole - 080022, 157, 160, 164, 165
So it's section 10 1002, Subsection 6 for candidates and Subsection 2 for individuals.
Excuse me for a second while I get rid of my Water notes. Could you just talk -- you mentioned that the mandate of the Ethics Board is to increase public confidence, and I agree that that would be the end-result of the Ethics Board doing the job well. But the mandate of the Ethics Board is to administer and enforce the 346 4/7/08 - Whole - 080022, 157, 160, 164, 165 ethics provisions of the Charter on the Ethics Code; would you agree with that?
I agree with that. I guess that was really sort of our larger mission, is to increase public confidence in government.
No, your mission is to administer and enforce the ethics provisions of the Charter and the Code.
Okay. I just -- and then, if you do that effectively, I'm confident that people in government -- or the citizens will view government more favorably. Just the fact of your existence probably helps out in that to a great degree. Also, I would say the rest of us in government also have that same broader mission.
That we 347 4/7/08 - Whole - 080022, 157, 160, 164, 165 could all, you know, claim that as our mission, but it's how we conduct ourselves also in public office or the civil servants and the other people you have jurisdiction over. It's how every individual employee conducts themselves can increase confidence in government. And that's certainly a part of the training sessions that you have, and I just wanted to say that that's a role far bigger than the Ethics Board. Everyone in City government --
And the people outside of government have a role in that, too.
I agree. So can you just briefly describe -- in your testimony, you mentioned a number of sort of new areas where you're going to go 348 4/7/08 - Whole - 080022, 157, 160, 164, 165 forward, advice and training to -- new-business education initiatives, I know the President mentioned that. And can you describe at what point in the process -- what is the process of your investigatory function; in other words, the enforcement? Everything that's sort of mentioned in here is proactive and it's not really discussed. The enforcement side or the investigation increase side is not really mentioned in your testimony. And it seems to me that there's a lot of work that can be done on that side. Could you discuss how you intend to do that or what your plans are for the trees, not the forest?
Certainly. The testimony does mention the additional requests for $100,000 for outside counsel, which is necessary due to enforcement matters primarily. 349 4/7/08 - Whole - 080022, 157, 160, 164, 165 The budget details also include some investigatory staff and also a director of enforcement, who will be joining us on April 22nd. So that's in the information as well.
Well, it just seems like we're heavily weighted towards policy in the Ethics Board in terms of -- versus enforcement investigation and inquiry. For example, there's -- I can't remember how many members of boards and commissions there are in the City of Philadelphia, plus public officials. Each one of them files financial-disclosure forms, other statements, both with the City and with the State. You know, obviously you're a part of that filing system. People file campaign-finance reports during campaign season. Vendors, you know, are looking to do contracting with the City. Sometimes people on boards and commissions work 350 4/7/08 - Whole - 080022, 157, 160, 164, 165 for City vendors. There's a lot of just sort of work that has to be done going through each of those filings to see if conflicts have arisen that were not disclosed, or make sure people are properly abstaining from votes. And I'd like you to talk about that aspect of what you do, how much you've done to date and you plan to deal with that in the future.
No, with the enforcement, investigation, inquiry side in general. I mean, the thing that's going to really in theory help you, you know, let people know that you're doing that side of your job. (Timer bell rings.)
Let me start off, and then I'll hand it off to Shane. I'm not sure I totally agree with the thrust of your statement, 351 4/7/08 - Whole - 080022, 157, 160, 164, 165 which seems to suggest that enforcement's the key. We like to think that education, training, and those sorts of things are the more important thing. But, as we did say -- as I did say in the testimony, the Board is actively engaged in enforcement of the campaign-finance requirements today. And I'm sure you know that all of our investigations are confidential until there's a resolution of them. So there are many, many things going on behind the scenes right now on campaign finance. And I don't know if that's responsive directly to your inquiry.
I'm just talking generally proactive behavior in the enforcement, inquiry, and 352 4/7/08 - Whole - 080022, 157, 160, 164, 165 investigation side, like looking at financial-disclosure statements.
You know, comparing those to people's voting records on that board of commission, seeing if they had any salary from somebody that they, you know, voted on. That's sort of -- that's a lot of grunt work, and it may not be very -- you know, a lot of fun, but that's -- in theory, I think we've assigned that task to you guys.
With financial disclosure -- I'll start there -- we really only have jurisdiction over the City financial form. That's in the Ethics Code; it's required in Section 24 20-610 of the Ethics Code. The other two forms -- the 353 4/7/08 - Whole - 080022, 157, 160, 164, 165 Mayor's form exists by executive order. We don't have jurisdiction to enforce executive orders. And then the third form is, of course, the State form. We advise everybody who has to file any combination of all three forms on what they have to file, but we only have jurisdiction to enforce the City form. And so, what we did last year with very limited staff -- there were two of us -- is first to identify who we think has to file the City form, and it's kind of easy and hard at the same time. There are basically about 48 individuals in City government that have to file. All elected City officials, all department heads have to file. And then the third category is all board and commission members. And that's the hard piece to figure out. There are 81 board and commissions of 354 4/7/08 - Whole - 080022, 157, 160, 164, 165 the City, and all of them have to file 3 the City form. Some of them have to also file the State form, depending on their authority. And others still have to file the Mayor's form, and some have to file different combinations of those three. We have had a very difficult time identifying who are on the boards and commissions. Last year we reached out to all of the chairs of the boards and commissions and asked them to notify their membership that they had to file whatever forms we had determined they had to file. But we -- and we're working with the new administration to identify who's on these boards and commissions. The problem is that when these people get assigned to or appointed to boards and commissions, the boards and commissions tend to go off and do their work, and some of them get are related to different departments and 355 4/7/08 - Whole - 080022, 157, 160, 164, 165 get tracked better. And others work more independently. And so, when there's turnover, there may be new appointments, but the administration may not be capturing that turnover and change and identifying the new members and eliminating the old members from their list. It's my understanding that the new administration has someone who's working on gathering up more information, getting better control over the boards and commissions so that we'll be able to better identify who those people are. So the first cut last year with financial disclosure forms was to first check to see who filed, who we know have to file, and we did that. The second cut is to check the forms to see whether there are obvious errors. Frequently -- this happens every year -- people fill out the form 356 4/7/08 - Whole - 080022, 157, 160, 164, 165 and they'll check -- in the box for income, they'll check "none," or source of income, they'll check "none," even though the instructions say that you have to declare your City income as a source of income. So that would be an obvious mistake that we could capture by just looking at the four corners of the report. The third cut would be to do what you're suggesting, is to sort of look outside the four corners of the finance disclosure statement and see if you can find some conflicts or other violations. And we don't have the capacity to do that, nor would we, I think, even with the 11 staff members that we are hoping to get by the end of Fiscal Year '09.
So, basically. I'm sorry, Madam Chair. My time was up; I don't know if other people have questions. 357 4/7/08 - Whole - 080022, 157, 160, 164, 165
So if you don't mind waiting until the next go-around. The Chair recognizes Councilman Kelly.
Thank you, Madam President. Mr. Creamer, I just want to go back to the penalties process according to the ethics. You mentioned in your testimony that if anyone gives a contribution above those limits, 10,600 or the 2600 for an individual, you mentioned that they can get fined; is that correct?
And that's either the person giving it or the person receiving it.
Mow, is there any other penalties involved with a person giving more? Suppose it's a business; would there be another penalty that you know of?
The penalty would be under what we call "the pay-to-play contract law." Potentially to the extent that they were a City vendor for a no-bid contract or were seeking a no-bid contract or if they were receiving certain financial assistance from the City or were seeking financial assistance from the City they would become ineligible to receive those contracts or to receive that financial assistance under 17-1400.
Okay. And they would be notified; is that true? Would the company be notified if they 359 4/7/08 - Whole - 080022, 157, 160, 164, 165 were not going to have the opportunity to obtain contracts with the City?
I don't believe so. The way the process works is, when you apply for a no-bid contract or for financial assistance, there are a series of disclosures. There are five disclosures that you have to make, and one of the disclosures are the political contributions that you've made throughout the State actually in the past two years and all your affiliated companies --
But you're telling me that they wouldn't be given any notice of the fact that they wouldn't be eligible for City contracts?
That's up to the Finance Director to determine eligibility. And it's my understanding that a vendor who is requesting a no-bid contract submits a bid, makes the disclosures -- 360 4/7/08 - Whole - 080022, 157, 160, 164, 165
Well, are you the one that recommends that the person not be eligible for a City contract?
No, it's the Finance Director that makes the determination of whether someone is eligible or not.
Well, how would the Finance Director know? In other words, isn't that your responsibility to notify the Finance Director?
I think that that could be something that we can do, and we can do that. We have a database that has the contributions information --
Well, I find it peculiar that the company wouldn't be notified. If the City was going to say, We're not going to accept any of your bids or anything else, these people are getting to be wasting their 361 4/7/08 - Whole - 080022, 157, 160, 164, 165 time; is that true? I mean, that's the way I look at it.
I guess the other way of looking at it is that everyone is supposed to know --
If I could maybe say something else. In the pay-to-play contract law, you could give -- a company could give legal contributions. And let's say it's a law firm. Let's say a hundred partners at a law firm each made a maximum $2500 contribution to a City Council candidate. I don't know how much money that is; it's a lot of money.
Each of the contributions was lawful and within the limit; and yet, that law firm will be ineligible to receive any no-bid 362 4/7/08 - Whole - 080022, 157, 160, 164, 165 contracts because all of those contributions get added together. And if they're over the limit collectively, when they're aggregated, that firm becomes ineligible to receive any no-bid contracts. So it is lawful for a firm or business to --
But would the firm know about that? Would the firm be apprised of that of situation?
No, they wouldn't, unless they were tracking it themselves, and I think all law firms are tracking their --
Is that public knowledge that companies, you know, individuals cannot give -- if there's more than, say, 40 or 50 individuals giving up to 2500, it would exceed the limits for that firm; is that right? Then you'd have to go above 10,600.
Right, right. 363 4/7/08 - Whole - 080022, 157, 160, 164, 165
Well, let me ask you something, and I'm going to be very blunt about this. What if someone gives a contribution and it's a legal contribution and it's up to the maximum, it's $10,600 or $10,000 at the time; would they be penalized from accepting no-bid contracts or doing business with the city?
Well, let me say it another way. How about if they were -- if this was one of the multiple partnerships and they gave over $10,000, would they be penalized?
Potentially. If 364 4/7/08 - Whole - 080022, 157, 160, 164, 165 the multiple partnerships were used as straw donors to exceed the contribution limits, then yes, we would pursue that case.
Well, investigations are confidential, but we would gather facts, seek more information, and make a determination. I'd make a recommendation to the Board on -- (Timer bell rings.)
Well, if you're going to -- if -- for instance, if you're going to probably discourage them or actually not permit them the 365 4/7/08 - Whole - 080022, 157, 160, 164, 165 opportunity to gain contracts, whether they be no-bid or whatever, with the City, then it seems to me that you would have to almost -- you'd have to notify them, number one, and you would have to fine them if it was illegal, what they did.
Councilman, let me make sure that there's clarity on this issue. Eligibility under 17-1400 is not the responsibility of the Ethics Board. Our only responsibility --
Our only responsibility is in misrepresentation that would appear when --
Yeah, but you're the outfit that's supposed to be doing the investigating. And when you do the investigating, do you get back to the Finance Department and tell them that these people are fined? That's what I'm trying to get at. 366 4/7/08 - Whole - 080022, 157, 160, 164, 165
We haven't reached that point yet, but we have notified the Finance Department in one instance where certain firms would be ineligible if they sought -- we first -- we checked to see if they had any no-bid contracts or had any financial assistance from the City; they did not. And then we notified the Finance Department that if they were to seek any --
That would be up to the Finance Department; it's not require in the law, to my knowledge.
In other words, they just go along, not knowing that they have been -- they have been 367 4/7/08 - Whole - 080022, 157, 160, 164, 165 probably -- well, never mind, I won't get into that. All right. I'm sorry, Madam President. I know I ran over my time.
Thank you, Madam Chair. I'm a bit confused by that colloquy just because I thought you were saying that the Finance Department was responsible for no-bid contracts, or that people, when they apply, are required to disclose the contributions they've given. And I also thought I heard you say that, you know, we have to do an investigation. If somebody's violated the rule, you know, there's some due process or that it has to be applied before that person is not eligible for a City contract. And then I also thought I heard you say that you alerted the 368 4/7/08 - Whole - 080022, 157, 160, 164, 165 Finance Department to people who are not eligible for City contracts. What due process occurred prior to you notifying the Finance Department?
You're right. You heard all three things. And I think the problem is, we're talking -- we're jumping back and forth between different topics. One is eligibility for no-bid contracts under 17-1400.
But I have a resource -- or the Ethics Board has a resource that the Finance Director does not, a database of all contributions to City candidates over the past a couple of years.
I'm not -- I'm not questioning -- 369 4/7/08 - Whole - 080022, 157, 160, 164, 165
And I think if you see something that's, you know, possibly improper or maybe you view as improper, certainly you should alert whatever departments that might not have the information you have so that everybody's aware of it. I wasn't suggesting you shouldn't do that, so --
Right. And I just provided information to the Finance Director in that one case that, although --
They may not. It's up to the Finance Department. That they possibly may not be eligible, but that determination would be made by the Finance Director, not us. We have limted jurisdiction to the disclosure process. If there's a material mistake or an omission, let's say these related companies didn't report the other 370 4/7/08 - Whole - 080022, 157, 160, 164, 165 contributions from their related firm, affiliated firms or, let's say, a law firm, it doesn't --
On that small point, I just wanted a clarification. I don't want to use up more of my time on that. I just, you know, I had a -- we had some good training from you guys. It included a PowerPoint presentation running thirty pages as well as commentary from you guys. We asked for a copy of the PowerPoint, which included a great deal of information and, I understand, is not available on your website or other places for people to flip through. You know, if people want to remember something they heard at the session, they can't find it. 371 4/7/08 - Whole - 080022, 157, 160, 164, 165
And, I guess, to put it generously, you were extremely dismissive -- some would say rude -- in your response to my staff person that asked for it. I just would like to understand why.
I'm not sure I understand what you're referring to in terms of my conduct, but --
I'll read to you the e-mail my staffer sent: Dear Mr. Creamer, I am writing to thank you for the ethics training on Monday afternoon, which was informative and helpful and to ask if we could get a copy of the PowerPoint presentation that you and Mr. Meyer used. Your response: "What do you think?"
Oh. I made a mistake; I meant to send that to Evan. Evan drafted the PowerPoint and that's 372 4/7/08 - Whole - 080022, 157, 160, 164, 165 why I never got a response from Evan. (Laughter.)
I consider it his work product. We've had a lot of requests. I apologize. I meant to forward that message to Evan to ask him, What do you think? do you want do share it with them?
We called about it and we were told it was the policy of the Ethics Board not to share the PowerPoint.
We have not in the past. We've had a PowerPoint -- different iterations of it the past few years, and we typically have not shared it, but I thought I was forwarding the question to Evan. And now I know why he never respond to me. I was asking him whether he wanted to make an exception in this case. I apologize, Lauren.
It was Sophie, but that's okay. I accept that 373 4/7/08 - Whole - 080022, 157, 160, 164, 165 explanation. Thank you very much. And I'm sorry for the characterization of your e-mail.
I understand under the circumstances. Thank you for restraining yourself. (Laughter.)
So I guess -- well, when my time ended, we were talking about inquiries investigation and enforcement. And it sounds to me like your role in that regard is going to be limited to based on budget and staffing. And I guess what you're defining as your mission --
-- is going to be limited to complaints referred to you or that you just happened to pick up; is that correct? (Timer bell rings.)
Well, we do get complaints, but also, we see things, 374 4/7/08 - Whole - 080022, 157, 160, 164, 165 you know, that we -- that I can initiate an investigation on my own initiative as well. So we have some investigations that are underway that were initiated by a complaint and others that I've started on my own initiative. And oftentimes you start looking at something and you think it's X and it really is Y, and investigations sort of shift their focus from one committee perhaps in the area of campaign finance to another committee.
And then there may be other issues that arise too so that the issues can sort of change and add and decrease. You may look into something -- I've taken depositions off people who I thought were violating the law, and they provided explanations to me, and I've accepted that, and we have 375 4/7/08 - Whole - 080022, 157, 160, 164, 165 terminated the investigations. So, again, the most critical thing is to get the facts, get the information, and that's why I think it's important to conduct these investigations confidently, and that's why it's required by the law.
I'm not questioning that. Madam Chair, I don't know if there's other people --
Mm-hmm. Thank you, Councilman. The Chair recognizes Councilman Rizzo.
Thank you. Could you explain to me the interaction that you have with these new folks that just got hired from the federal government? Could you explain the relationship? What are their titles? Ethics...?
Amy Kerlin is the new inspector general, and Joan Markman 376 4/7/08 - Whole - 080022, 157, 160, 164, 165 is the chief integrity officer.
I'll first start with the inspector general. The Ethics Board, as you know, has jurisdiction over the City's public integrity laws, which include the Ethics Code. The campaign-finance law, and certain provisions of the Home Rule Charter, including the restrictions on political activities; and finally, the disclosures in the pay-to-play contract lawsuit. The inspector general was created by a series of executive orders in the 1980s. And to summarize those orders, I think that the way I describe the inspector general's jurisdiction is this: The inspector general has jurisdiction to enforce fraud committed against the City, whether it be by a City employee or by someone 377 4/7/08 - Whole - 080022, 157, 160, 164, 165 outside City government; a vendor perhaps, who's stealing City property or things like that; an employee who's lying about where they live or stealing City property or lying about the time that they're working for the City. Those are all within the jurisdiction of the inspector general, but they are not necessarily the jurisdiction of the Ethics Board. Joan Markman -- I can't speak for the Administration but my understanding is that she is really looking at the contracting process and trying to improve that system and is sort of an internal advisor within the Administration on matters of ethics and integrity. I can tell that you we do work closely with Joan Markman. We also have a good relationship with Amy Kerlin; we have had many meetings with her. We are providing training to the 378 4/7/08 - Whole - 080022, 157, 160, 164, 165 integrity officers that report to her currently; we had one session last week, we have another one tomorrow. And that's --
The third federal employee that you may have been mentioning was Kenya Mann who was appointed, and Kenya was appointed to the Board. She's a member now of the Ethics Board.
It would have been nice to meet these folks so we know who we were looking for. It would be nice to meet those folks some day in this environment. There was a Solicitor's opinion that I think would interest you if you haven't caught up to it yet. It was a question about a law firm that would -- a partner of a law firm that would serve on a host committee. What -- if they put their name on a fundraising host committee, 379 4/7/08 - Whole - 080022, 157, 160, 164, 165 what effect would that have on that law firm's ability to do business with the City? Are you familiar with that opinion?
I'm not familiar with the Solicitor's opinion, but we issued an advisory alert last fall on point. In other words, under 17-1400, the pay-to-play contract law, there are broad-reaching attribution rules that would include if any shareholder or partner of a firm or business was a co-host of a fundraiser -- let's say there were five cohosts and they raise a $100,000, that 100,000 raised at that fundraiser gets attributed to each of the five cohosts and, in turn, to their firms and businesses. So you could have -- one fundraiser could make five law firms ineligible, for example, and yet, it's the same money. And it's because the 380 4/7/08 - Whole - 080022, 157, 160, 164, 165 pay-to-play contract law, again, has these aggregation and attribution rules. You collate all of the direct contributions by members of the firm, by shareholders and certain members of the firm,k and then any affiliated firms or businesses get added to that. And then on top of that, all of the money at any fundraisers that any partners or shareholders were hosts of, you know, if you were a fundraiser or a bundler, all of that money gets captured and added into determination of whether your firm is eligible or not to receive a no-bid contract or financial assistance from the City.
In a nutshell, you're saying that the dollars raised at that fundraiser would be attributed to the -- I think that's in conflict -- I think that doesn't -- it's not consistent with the City Solicitor's opinion, I think, and I'm 381 4/7/08 - Whole - 080022, 157, 160, 164, 165 doing this from memory. I think --
'Cause, as a matter of fact, the Law Department just asked permission to release that opinion for that bound book that they do. So I think that you really need to know about that. And I'll try get you a copy of that as soon as possible, 'cause I think that con -- I'm betting that that's not consistent with what you just reported.
Would you be bound to be consistent with that Solicitor's opinion?
That's a good question. I'd like to see it. And we -- let's talk about it after we produce it. 382 4/7/08 - Whole - 080022, 157, 160, 164, 165
Okay. You know, I want to be right on the money here and make sure that I'm on the same page as you are.
Oh, I think it is. And that's why we issued the advisory alert last fall. It was because we became aware of fundraising events where there were hosts of major law firms, architectural firms, all sorts of folks who regularly do business with the City, and we didn't believe that they were aware of the potential consequences of that potential fundraising activity, and that's why we (indiscernible).
Thank you, 383 4/7/08 - Whole - 080022, 157, 160, 164, 165 Madam Chair.
Thank you. The Chair recognizes Councilman Kelly.
Thank you. Thank you, Madam President. I just want to be clear about this; that's all I want to be. Is that if a law firm, for instance, has six or more members of their firm who contributed to a candidate and they contributed to the maximum, which would have been $2500, it would have been over -- that firm would be --
-- in violation -- it would be a violation to the bill, right?
Well, it's not a violation of the law. Again, firms can choose to not bid for City contracts and --
Oh, yeah. 384 4/7/08 - Whole - 080022, 157, 160, 164, 165 Well, I --
-- contributions, and that's -- (Indiscernible; parties talking over each other.)
No. Again, if you had a hundred partners at that law firm each give a $2500 contribution, nobody's violated the law; that firm just can't get a no-bid contract. And that's perfectly legal. That's not a violation.
Okay. So 385 4/7/08 - Whole - 080022, 157, 160, 164, 165 that wouldn't be a violation.
Okay, yeah. I think we were talking -- we were switching back between two different issues.
Yeah. And I was just wondering if the person, say, used their own check, for instance, rather than a firm, it would be an individual; would that count?
In other words, if he was more or less a friend of yours and he just happened to belong 386 4/7/08 - Whole - 080022, 157, 160, 164, 165 to that firm --
It would still be attributed to the firm for purposes of 17-1400, the pay-to-play contract law.
For purposes of the campaign finance law, it's just an individual contribution, and there is nothing wrong with it.
Okay. But as far as you're concerned, since he belongs to the firm, it goes under that.
If he were a partner, if he were an associate, it would not be aggregated.
That's what 387 4/7/08 - Whole - 080022, 157, 160, 164, 165 I didn't understand.
-- individuals within the firm of business. The law firm could be a big group, but --
Thank you, Madam Chair. Councilman Rizzo mentioned something that I want to talk about, which is (indiscernible) effect of former Solicitor's opinion, but just to follow up on the attribution rules, to what extent do you look at whether or not the -- prior to enforcing something, to what extent do you look at whether or not it complies with federal constitutional law, our local laws, or our local Charter provisions? In other words, the right to assembly, the right to free speech, those things 388 4/7/08 - Whole - 080022, 157, 160, 164, 165 that would probably apply to aggregation of contributions, et cetera.
Well, let me first say we have not looked into any aggregation issues yet, nor would we be asked to. The way I think it would possibly come up -- I mean, the way it would work, that law firm would have to disclose --
Yeah, I don't want to get into hypotheticals so -- but do you look at outside the four corners of the Charter and the Code, whether or not you can -- something is, in fact, enforceable under federal constitutional law with respect to campaign contributions?
That's a broad question. I think, you know, hypothetically, we certainly, you know, consider issues outside of the four corners of the Code and the Charter. 389 4/7/08 - Whole - 080022, 157, 160, 164, 165 And I think the Board has exercised its jurisdiction with discretion, you know, with its enforcement power, with its discretion under a range of circumstances, not just in consideration of federal law or constitutional law. But in the totality of the circumstances, I'd like to think that we try to treat every situation fairly within the law in considering matters outside the Code.
Right. Well, I mean, I'd like to work with the Board to try and clarify some of these things. And one of the things that I'd maybe ask you if you can -- you probably can't get to it this year, but I think you're going to shortly -- or if you already have, maybe I haven't had a chance to look at it -- give us recommendations for changes to the laws.
One of those things next year might include whether or not you can actually enforce a current law, because, in my view, some of what is there is not enforceable under federal constitutional standards. And rather than waste time and effort trying to enforce it, let's fix it so that we can have it applied properly.
I appreciate that. I want to be careful how I recommend or suggest that my laws aren't enforceable.
The Chair recognizes Councilman Rizzo for a point of information.
Don't you think, Mr. Creamer, that it would be -- 391 4/7/08 - Whole - 080022, 157, 160, 164, 165 you know, we live and pretty much die by the Solicitor's opinion. Before you put out that, don't you think it would have been helpful to check to see if the Law Department had a legal opinion that you might not be consistent with? Now, what happens if we did, based on the Solicitor's opinion -- and I can't recollect it; it's on its way down here -- and we did allow someone to be on a host committee based on the Solicitor's opinion? I mean, you have to be on the same here.
I agree. I'd like to see the City Solicitor's opinion. Again, the advisory alert was just that. It was not an advisory opinion; it was just warning people, cautioning them that there may be consequences. We weren't saying there were consequences in any particular case.
The 392 4/7/08 - Whole - 080022, 157, 160, 164, 165 consequences that a person will go on a political candidate's political action -- or their host committee, that's a ramification when you scare people away from the process if it's not illegal, or it's not going to have the impact that you suggested.
Well, I think a plain reading of 17-1400, there is a separate section on attribution, there is a separate section on aggregation, I believe. And I think these specific things are captured in that law, and I think it really isn't up for debate.
I cannot recollect -- (Indiscernible; parties talking over each other.)
But my point is, there is one, and you're not aware of it. And, you know, that's no 23 disrespect that you're not aware of it; you can't be aware of everything. But, I mean, this just 393 4/7/08 - Whole - 080022, 157, 160, 164, 165 identified there's a potential that we're doing something based on Solicitor's opinion that you're not aware of.
But going forward, I'm sure that that will be kind of an automatic, but I assume Solicitor's opinions are confidential to the person asking for it. And the -- that you might not be in the loop and get those opinions until there's permission for it to be released. So I'm a little concerned that there's two potentially different opinions here over.
Councilman Rizzo, excuse me. I think we're really going around in circles here. If you have a copy of that opinion --
It's coming down right now. 394 4/7/08 - Whole - 080022, 157, 160, 164, 165
-- I suggest that you share it with the gentleman at the table and if you consider it confidential, and then you could discuss it. And then, sir, Mr. Creamer or whoever wants to answer it can answer it. Councilman Rizzo, are you complete with your questioning?
Thank you, Madam President. Could you just for the record -- I'm not aware that this has been done in Council before -- briefly describe your view of your requirement as any other board or commission is to adhere to opinions of the Solicitor issued, you know, prior to the date of your existence? 395 4/7/08 - Whole - 080022, 157, 160, 164, 165
Okay. As you know, under Section 4-1100 of the City Charter, the Ethics Board has jurisdiction to administer and enforce the public integrity laws of the City, which include the Ethics Code, the campaign-finance law, the political activity restrictions, and such our laws as City Council may time to time provide us with jurisdiction. It goes on to say that -- and I don't have it in front of me right now, but it basically says that we do not have to rely upon the advice of the Law Department for enforcement purposes.
Excuse me. And would you not supersede the Law Department's opinion?
I believe currently, Madam President, the new Ethics Board has jurisdiction to -- actually, under 4-1100 also, to render 396 4/7/08 - Whole - 080022, 157, 160, 164, 165 opinions on the laws that we have jurisdiction over: the Ethics Code, the campaign-finance law, et cetera. And so we -- the Solicitor is without jurisdiction to interpret or advise on the laws that we now have jurisdiction over.
I have a book down here that doesn't have 4-1100 in it, so --
I have 4-1100 here. I could read this. It's a long paragraph; I could read it if you want.
Okay. The first sentence: "The Board of Ethics shall administer and enforce all provisions of this Charter and ordinances pertaining to ethical matters, which, for purposes of this chapter, shall include conflicts of interest, 397 4/7/08 - Whole - 080022, 157, 160, 164, 165 financial disclosure, standards of governmental conduct, campaign-finance matters, prohibited political activities, and such additional related matters as the Council may from time to time assign to the Board. The Board shall handle ail inquiries and complaints surrounding ethical matters and notwithstanding the provisions of Section 4-400(a) and Section 8-410 of this Charter, the Board shall render advisory opinions provided that, with respect to opinions regarding State law, the Law Department, at the option of an employee requesting advice, shall have concurrent authority to render advisory opinions." And then the rest is about enforcement.
Right. So with respect to inquiries and complaints -- I don't want to get into a debate about what modifies what in that paragraph. I just -- what I want 398 4/7/08 - Whole - 080022, 157, 160, 164, 165 toad is state for the record that many members of City Council do not believe that they took away authority from the City Solicitor to issue them advisory opinions on ethical matters or any other matter; and that, in fact, under the City Charter, the only opinion we can rely on for a complete indemnification of our actions is an opinion of the City Solicitor and not opinion of the Ethics Board. And I look forward to working with you to try to resolve this one way or the other. Hopefully, we can get indemnification for opinions from you also.
Actually, if I could address that first. Actually, as 4-1100 of the Charter states, the Law Department has concurrent jurisdiction with the Ethics Board to render advisory opinions under the State Ethics Act, 399 4/7/08 - Whole - 080022, 157, 160, 164, 165 and that is because there's a provision in the State Ethics Act that gives safe harbor to individuals who follow the advice of a solicitor in good faith; it doesn't say anything about ethics boards. And, therefore, that's why I believe City Council included that exception. However, under the Ethics Code, you have to -- you only get a safe harbor from prosecution if you follow the advice of the Ethics Board in an advisory opinion, not the Law Department.
Well, the Charter supersedes the Code, and the only protection we have under the Charter is for opinions from the City Solicitor.
You only have protection from prosecution by the State Ethics Act for violations under the State --
We can't 400 4/7/08 - Whole - 080022, 157, 160, 164, 165 take away powers of the Solicitor implicitly; we would have to do it explicitly. And nowhere in the City Charter did these changes do that. And I don't want to -- we can go back and forth all day. I accept what you're saying as your honest interpretation; you can accept what I'm saying as my honest interpretation. My only point is that I -- I think we need to work to resolve this to everyone's satisfaction.
I agree with that. And, actually, frankly, I believe it's the authority and jurisdiction of the Solicitor to interpret this kind of a question of the Charter.
It's not for us to interpret; I think it's up to the Solicitor.
That's what I was 401 4/7/08 - Whole - 080022, 157, 160, 164, 165 going to say: I believe that the Solicitor has an opinion on this.
But we should certainly include the Solicitor in any discussions about resolving this issue.
I agree. So with respect to the process, then, of your issuing advisory opinions, I'd like to discuss that briefly. I had a -- (Timer bell rings.)
Thank you. I had a person at your -- Lauren was at your last Ethics Board meeting and she made two suggestions. 402 4/7/08 - Whole - 080022, 157, 160, 164, 165 One was that all regulations be posted up on the website; is that something that you're going to be able to do so that people know --
We were actually talking about that this morning, and we haven't reached a decision yet; we're still talking about that. But I think we may choose to hold hearings on all regulations regardless that was a part of our discussion today.
Well, I'm glad you mentioned that, because the other suggestion was that you publicly post your agenda, or certainly publicly advertise your agenda, prior to each meeting. And the reaction was that you couldn't do that.
Well, the 403 4/7/08 - Whole - 080022, 157, 160, 164, 165 reaction was we'd love to do that, but we have two limitations: Number one, frequently we don't have the agenda until a day or two before the meeting; we're still putting it together. And secondly, once we have the agenda -- once we want to post anything on the website, we have to go to MOIS, and sometimes they're very responsive, but other times, it may take a few days.
Perhaps you ought to have a meeting where you don't really cover anything so that you can be a month in advance. (Laughter.)
And let me -- that's a serious comment because in the discussion on the boards and commissions decisions that we've had privately and in other places, the reaction has that, Well, we had meetings on that, even though we didn't issue regulations that would give people a chance to comment on a new 404 4/7/08 - Whole - 080022, 157, 160, 164, 165 rule, which I think is the appropriate way to change -- to essentially overall solicitors' opinions. We had hearings on it in our open meetings. But if you don't publish an agenda ahead of time, nobody knows to go to discuss the issues that are up for debate at that hearing, at that meeting.
I disagree. For the issue that you're talking about, we held discussions in, I believe, five public meetings over a six-month period. And at the end of each of those discussions, up until the last one, we said publicly at that meeting that we would continue the discussion at the next meeting.
Was there ever an agenda issued letting the people know of the general public that you were --
There were minutes of the meeting that were posted on our 405 4/7/08 - Whole - 080022, 157, 160, 164, 165 website that made reference to the fact that it was discussed and it was going to continue to be discussed.
Well, as a practical matter, nobody's going to read every minutes of the --
What I'm suggesting is, if you publish an agenda, then you'll get more input from citizens, from people who are involved, from the Committee of Seventy. Even though they send somebody there every time, they might not be prepared to discuss a new issue that wasn't in an agenda.
Certainly my office is very interested in what's going on. And publishing an agenda is an open, transparent way to conduct your business. And not publishing an agenda leaves you open to criticism 406 4/7/08 - Whole - 080022, 157, 160, 164, 165 when you make decisions or issue advisory opinions that the public didn't have a chance for input and maybe raise issues that, because you didn't have a chance for public input, you weren't able to address.
Well, I think it's a good suggestion, and I think we'll make every effort to do that. I'm just trying to indicate that there are a couple of limitations: One, because of the nature of the work and because we have monthly meetings, the agenda doesn't get put together until very late; we can try to expedite that but sometimes, you know, we have to change it. We don't have a draft ready that we thought we were going to have ready or something else comes in the last couple of days. But we can make an effort to at least post a preliminary agenda maybe subject to change; we can do 407 4/7/08 - Whole - 080022, 157, 160, 164, 165 that.
Okay. Well, I'm going to, I think, perhaps propose legislation that would require an agenda to be published in advance so that it's just -- I think it's the right away to go about things in the conduct of your business. And I want to be a strong ally of yours on Council. I want to fight for more funds if you think you need them for enforcement, inquiry, and investigation side. I think that the fact that you don't have the resources to sort of go look outside the four corners of the forms that are supposed to disclose conflicts, if you're not doing it, I'm not sure who is. You know, an increase in that activity, pointing things out, even if we're -- I don't think we should be making examples of people, but I think raising issues, making them aware, and having the 408 4/7/08 - Whole - 080022, 157, 160, 164, 165 ability to have those resources is going to be important to your success, and we all want you to succeed; all employees of the City of Philadelphia do because we do want the public to think of us as serving in their interests.
Thank you very much for your testimony. And if you have specific recommendations for the Chair that would enhance what you're doing, please provide them, and we'll take a look at them.
We did, by the way, provide a detailed annual report that we hope everyone in Council got a copy of it, and included in there are a series of legislative recommendations 409 4/7/08 - Whole - 080022, 157, 160, 164, 165 as well as some of the highlights of the last year.
Thank you very much for your testimony and your patience with us.
Until you figure out how to get that accomplished, why couldn't you simply e-mail the agenda to interested parties such as Council offices until you figure out how to get it on the --
Actually, for over a year, I've been e-mailing the agenda and whatever other documents are available to the reporters that come to every meeting. And now that we have others that are interested in coming, I 410 4/7/08 - Whole - 080022, 157, 160, 164, 165 would be happy to send it to your office, Councilman Rizzo or --
And we can disseminate it -- we can send it to other people that are interested --
Maybe there's a way that MOIS can give you access to put things, you know, in a way on your website that you can do it directly.
We're working on that actually, but it's going to take time. We basically have to recreate the entire website in a different application, and then we'll have control over it, but that's going to take time, and, again, we only have four staff members right now.
Thanks. I have that opinion. The Councilman wants to read it and then I'll hand it off to you once I get 411 4/7/08 - Whole - 080022, 157, 160, 164, 165 another copy.
You've been extremely patient. Thank you so much.
Thank you. MR. McPHERSON: The last department for the day is the Youth Commission. (Witnesses come forward.)
Thank you, Council President. My name is Benjamin Dubow. I am the appointee of Councilman Reynolds-Brown to the Philadelphia Youth Commission. I am pleased to appear before you today to present our proposed Operating Budget for Fiscal Year 2009. 412 4/7/08 - Whole - 080022, 157, 160, 164, 165 We are still in discussion with the Budget Office on the size of that budget and where those expenditures will be placed and expect to conclude these discussions in the next two weeks. When completed, we will bring that detail back for Council's consideration. The mission of the Youth Commission is the representation of Philadelphia youth in City Hall. Four-hundred-thousand youth live in Philadelphia. Many of the problems we face today stem from issues affecting youth a decade ago, and may of the problems we will face in a decade stem from issues affecting youth today. We believe in the ability of your Council to bring about change in this city. We believe in the ability of City youth to improve their condition. We hope to unite the abilities of our constituents and their government to better their lives 413 4/7/08 - Whole - 080022, 157, 160, 164, 165 and the lives of their fellow residents. As a new organization, we plan to dedicate much of our budget to creating an effective Youth Commission in the years to come. The fulfillment of this goal supports three of Mayor Nutter's in the City's Strategic Plan: Education. America flourished under the principle that the governed can better their government. So too can our students better their schools. An effective Youth Commission is a power channel through which students are able to improve their education. Public safety. Youth is the biggest factor in determining the likelihood of committing crime. Many youth find themselves disillusioned with their situation. They turn to crime as the most available means to change. An effective youth commission gives these youths a path to engage their government to find that change 414 4/7/08 - Whole - 080022, 157, 160, 164, 165 instead of turning to the streets. Healthy and sustainable communities. Youth have often taken a back seat in community involvement. The Youth Commission is a movement towards greater participation of young people in our city. We tell our constituents that they have the opportunity to become an important part of their communities and that their concerns are valid and will be heard. The upcoming year will focus on gaining clout among City youth and in City Hall. Our goals reflect our need to become a leader for young people and a professional organization. To measure our success we have three goals: List serve. We have to expand serve to at least 2,500 members by year's end. A list serve is a good measure of how many are showing interest in our organization. It also 415 4/7/08 - Whole - 080022, 157, 160, 164, 165 provides a valuable means to spread word of the issues affecting youth. Events. Major gatherings are among the best ways to spread awareness. Throughout the summer and fall, community organizations from throughout the City (indiscernible) major events on the Parkway and in the neighborhoods. We seek to be present at no less than five major events and attach our name to at least one. The new session. Many other youth commissions around the country are missing members. This shows a lack of commitment for both government officials and youth and the lack of ability from the commission which must connect the two. We hope to begin a new session next year with all 21 members of the Youth Commission appointed by the end of January. I would like to thank this Council for putting forth the 416 4/7/08 - Whole - 080022, 157, 160, 164, 165 referendum on the Youth Commission and the votes you represent for its passage. I believe both you and your constituents improve the referendum because of the great potential of the Youth Commission. I'm honored to be a part of realizing our promise, and I hope I have shown you how we plan to do so.
I thank you for your time and I would be pleased to answer any questions.
Thank you very much. Mr. Dubow, do you know anybody in the Finance Department? (Laughter.)
Or who the Finance Director is? And can you tell me why they would not have included your budget in the Youth Commission's budget in the present City budget that we have?
To answer your 417 4/7/08 - Whole - 080022, 157, 160, 164, 165 first question, I'm pretty familiar with the Finance Director; he's my father, so I have a pretty close relationship with him. To answer the question about why the exact numbers are not included, I turn to Mr. Agostini.
Madam President and members, one apology before we begin. The Youth Commission has been very diligent, the members of the Youth Commission have been very diligent. We're sorry we didn't get the testimony to you on time; that was the Administration not following through, and we apologize. They were doing what they needed to do; we didn't. Secondly, we are discussing with the Youth Commission the size of the budget. The original budget we saw was about what we thought it would 418 4/7/08 - Whole - 080022, 157, 160, 164, 165 be, but we don't have it in the right lines and items, so we're going to go back and discuss that and bring that back to you in the next week or two.
Thank you. The Chair recognizes Councilman Greenlee.
Thank you, Madam President. Just very quickly. I know it's the end of the day, but I just want to put on record that I went to the opening swearing-in of the Youth Commission and was just very impressed. In fact, I guess we should congratulate ourselves; we appointed some, I thought, really impressive people that really showed the diversity of this city, and I think they will serve extremely well. I know the person I appointed, Nicole Rubin, who lives in the northeast, just recently told me how 419 4/7/08 - Whole - 080022, 157, 160, 164, 165 impressed she was. She's met people from different parts of the City and she's learned a lot. And just talking to those people, I think Steve has a tough road. They're going to be tough on you, Steve. You better come up with that money. In any event, I wish him good luck, and I know Councilwoman Brown, who was the leader in pushing this, I think we did the right thing. And I'm very happy to say it was my first hearing of the Law and Government Committee was to put that Youth Commission on the ballot, so I'm proud to be part of that too. So good luck to you.
Allow me to also echo my colleague's sentiments and 420 4/7/08 - Whole - 080022, 157, 160, 164, 165 congratulate the administration of this Council and the Commission for its establishment. I understand there are several other Commission members here, and I'd like them to come up and introduce themselves. I'd be interested in, if there's one priority you have, Mr. Dubow, what will it be for this year? If each commissioner could answer that.
Okay. I'll start. I think the most important part -- thing the Youth Commission can accomplish this year is spreading awareness of our organization and organizing youth in the City. As a new organization, the only people who know about us are the people who have taken it upon themselves to find out. We need to -- in order to have an effective Youth Commission, we need to gain clout and we need to have the backing of youth 421 4/7/08 - Whole - 080022, 157, 160, 164, 165 throughout this city, 'cause as of right now, it's a little more than the members who are saying something 5 when the Youth Commission has a -- 6 when the Youth Commission recommends 7 or doesn't recommend a bill. 8 So raising awareness, 9 expanding our list serve, and being 10 present at major events are two of our 11 most important goals for the upcoming 12 year jean. 13
Saturday I 14 happened to see you at one of Mayor 15 Nutter's cleanups, weren't you? Were 16 you at the cleanups? 17
Oh, that was 19 the other handsome gentleman, your 20 father, who was there at the cleanup. 21 Okay, my mistake.
All right. Would the members of the Commission that are here please identify themselves just by name and 422 4/7/08 - Whole - 080022, 157, 160, 164, 165 just I guess what part of the City you're from. Thank you. MISS JONES: My name is Tyeena Jones.
And where you from? MISS JONES: I'm from West Philadelphia. I represent the 4th District.
My name is Charlotte Jones. I'm from North Philadelphia and I represent the 8th District.
If each one 423 4/7/08 - Whole - 080022, 157, 160, 164, 165 of you -- and for the record, Madam President, none of them are my children. There were a lot of Joneses there. But for the record, what issue are you most concerned about? MISS JONES: Well, I am mostly concerned about young youth who are unaware of their surroundings, who aren't safe. I'm concerned about safety. I'm concerned about education. I am concern about their well-beings at home as well as in school. I'm concerned about the respect levels. I'm concerned about basically everything that has something to do with the youth, not just about events and things of that sort. I'm really concerned about getting down to why are the youth so angry nowadays. So I think that the Youth Commission, us altogether, all 20 of us now, can work together to get to the bottom of why the youth nowadays 424 4/7/08 - Whole - 080022, 157, 160, 164, 165 are so angry, and why they consist [sic] on doing the jumpings and things of that nature. So once we get to the bottom of that then, I guess we done got to the source of the problem.
Thank you very much. I congratulate all of you and wish you the very best. We look forward to work with you.
And thank you, Councilpeople for appointing all your Youth Commissioners and for being present for our first hearing.
Thank you very much. This concludes our public hearing for today. The committee will 425 4/7/08 - Whole - 080022, 157, 160, 164, 165 stand in recess until tomorrow, Tuesday, April the 8th, at a.m. 4 Thank you very much. 5 (Proceedings end at 5:05 p.m.) 6 * * * 7 8 9 10 426 C E R T I F I C A T E I HEREBY CERTIFY that the proceedings of the City of Philadelphia Council Committee of the Whole are contained fully and accurately in the stenographic notes taken by me on Monday, April 7, 2008, and that this is a true and correct statement of same. __________________________________ JOSEPHINE CARDILLO Registered Professional Reporter (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.)