COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON APPROPRIATIONS - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, March 14, 2007, 10:20 a.m. - - - PRESENT: COUNCILMAN DARRELL CLARKE, Chair COUNCILMAN JACK KELLY COUNCILWOMAN DONNA REED MILLER COUNCILMAN JUAN RAMOS COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN FRANK RIZZO COUNCILWOMAN CAROL ANN CAMPBELL COUNCILMAN FRANK DICICCO BILL NOS. 070121, 070122, 070123, 070124 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 CHAIRMAN CLARKE: Good morning. This is a public hearing of the Committee on Appropriations. We have a quorum present: Councilman Goode, Councilman Rizzo, Councilman Kelly, and Councilman Ramos. Will the clerk please read the title of the first bill.
Bill No. 070121, an ordinance authorizing transfers in appropriations for fiscal year 2007 within the Housing Trust Fund from certain or all City offices, departments, boards and commissions to certain or all City offices, departments, boards and commissions; and Bill No. 070122, an ordinance authorizing transfers in appropriations for fiscal year 2007 within the Aviation Fund from certain or all City offices, departments, boards and commissions to certain or all City offices, departments, boards and commissions; Bill No. 070123, an ordinance authorizing transfers in 3 3/14/07 - Appropriations appropriations for fiscal year 2007 from the General Fund, certain or all City offices, departments, boards and commissions and from the Grants Revenue Fund, the Director of Finance - Provision for Other Grants to the General Fund, certain or all City offices, departments, boards and commissions. CHAIRMAN CLARKE: Thank you. Anyone to testify? Ms. Reed? Ms. Reed, have you circulated your testimony?
Budget director Dianne Reed. Yes, sir, I think so. CHAIRMAN CLARKE: What we'd like to do is we have the testimony in the record, and if you could just highlight the most important aspects of the transfers in the various departments in your testimony.
Good morning, Councilman Clarke and members of the Appropriation Committee. I'm Dianne Reed, budget director, and I'm here to 4 3/14/07 - Appropriations testify on Bill 070121, 122, and 123. I have with me the commissioners and other agency heads of the departments who have transfers in these bills in case you need to talk with them. Bill No. 070121 is a transfer within the Housing Trust Fund from Class 100 to Class 200 to enable funds to be spent on affordable housing activities. Bill 070122 is within the Aviation Fund and enables the pension costs of aviation to be funded. As you may know, as a result of the fact that we have had a reduction in staff in the General Fund, other funds are bearing a little bit larger share of the total cost for the pension fund. Bill 070123 is the transfer of about $71 and a half million largely from human services excess appropriations from interest rates lower than anticipated, surplus in the Sinking Fund and the Grants Revenue Fund. Those will be the bulk of the sources. And some of the uses include replenishing employee benefits which were originally 5 3/14/07 - Appropriations used as a source of funding for 070019. We also have $12 million for the Philadelphia Prisons because of the increase in the census which we've talked about a few times. 2 million to fund retroactive salaries for the appeal that the City has. We've dropped the wage portion of that from the appeal and are funding that at this time for '06. That's 2 percent. 85 million to cover the numbers of people who have been in the academy. There are a couple classes that will be coming out soon. And then we have about $800,000 for a second set of bunker gear that was in the contract as well as gear for the new employees. 5 million for OHCD to pay for seven months of Redevelopment Authority staffing because we had thought the reorganization would go through seven 6 3/14/07 - Appropriations months earlier in the year than it actually did do and we have to fund that and bring the spending into alignment with the HUD plan. We also have about $3 million of utility bills, fuel for fleet, and we have money for overtime costs for mechanics. In Streets, we have a pass-through of about a million dollars to EarthLink. And we have costs for purchasing asphalt and paying for electricity for street lighting. Police Department, we're funding $2 and a half million for the new additional 100 officers for the Police on Patrol program, and we also have class 300/400 expenditures for uniforms and equipment for the new officers. The Public Property department has about $2 million in gas and electrical costs because of the increase in the rates, which we've also discussed before. OSH, they have been running a deficit because of their higher census and we're funding all the needed shelter for those people. 7 3/14/07 - Appropriations And for FJD, we are funding Title IV-E staff where they are rolling over some funding for last year and we're making that available for expenditures this year. And we also have about $200,000 in electronic monitors which were bought in September and we're getting the transfer for those at this time. The Human Services department has about a million eight for additional staff to monitor more closely services being provided. And MOIS has additional Class 200 contracts. And also for legal services, you may remember that we have mentioned a couple times we funded a couple of paralegals so that we could increase the number of petitions per month by about a hundred for early release. And also their contract did not include some of the new felony courtrooms that have opened, so we had to increase their contract to cover that expansion by the courts. Recreation, we're funding in 8 3/14/07 - Appropriations recreation in Fairmount Park City commissioners, we're funding both the new Pennsylvania minimum wage increase as well as the living wage multiplier for those departments.
And also in rec we're funding the cost of materials and supplies for the maintenance team's repair of recreation facilities. The sheriff has increased over time -- this is also a court-related augmentation to try to step up the level of felony case discharges. The MDO, we're funding a half a year for the Office of Emergency Management following on the EPRC recommendations. And public health, we are increasing their funding to help pay for repairs that are needed at the nursing home. And that's an operating budget kind of capital expenditure because the City does not own that building so it couldn't use the capital funds for that. The Office of the Mayor, we're funding the Education Task Force 9 3/14/07 - Appropriations and related consultants. And then we have some internal transfers among departments that make up the rest of it. And we are asking for the suspension of the rules so that Bills 121, 122, and 123 can be considered at the next meeting of Council. This concludes my testimony. I'd be happy to answer any questions you may have as well as the officials who come with me. CHAIRMAN CLARKE: Thank you, Ms. Reed. Ms. Reed, with respect to Bill 14 No. 121, I want to be clear. In the earlier part of your testimony, it references the City's Housing Trust Fund, but the language under the bill and in your testimony you talk about reorganization. Is this for both components or is that a misprint?
121 has the Housing Trust Fund. This is taking money out of Class 100 and putting it back into Class 200. And 123 has the reorganization to fund the RDA positions back to July 1. 10 3/14/07 - Appropriations CHAIRMAN CLARKE: I'd actually like to ask a couple of questions about 23. I don't know if you --
Would you like Mr. Hanna to come up? CHAIRMAN CLARKE: That would probably be appropriate. Good morning.
Good morning. CHAIRMAN CLARKE: Mr. Hanna, can you tell me what the status of the reorganization is? I know there were a number of people laid off earlier and then there were some call-backs. And I want to know how many people have been called back that were laid off in terms of the salaries, because I know I'm getting some calls about salaries not being comparable to the salaries that they had in the RDA. Now that they've gone to OHD, there's been some reductions, in some cases relatively drastic.
I have to go back 11 3/14/07 - Appropriations to November-December. We were in the process of -- in fact, had hired several people moving folks pursuant to the -- I'm sorry. My name is Kevin Hanna. I serve as a secretary of housing. We were at the point where we were migrating jobs out of RDA and PHCD into OHCD. At that point in December there was an issue with another transfer ordinance which when it was delayed required that we lay those and other people off. That transfer ordinance was finally passed last month or some time ago, maybe six weeks or so ago, which allowed us to start or restart the interview process and rehire the people who had been laid off in December. The problem I think to which you're referring to, Councilman, has to do with the terms on which people moved to OHCD. I'm only hesitating because I want to make sure I don't say more than I need to given that we're in the process of a union negotiation. But the things that will govern the basis on which 12 3/14/07 - Appropriations people migrate from RDA and PHCD is called a transition agreement. That transition agreement speaks to things like the salary that the person -- just take a generic employee from RDA. If a clerk typist was making $30,000 at the RDA, without a transition agreement, that clerk typist would have to be brought in to OHCD at the first step of the clerk typist pay range, which typically is going to mean a decrease. In addition, that person would not be able to come over with any seniority, meaning vacation time and sick leave and all the other things they had earned at their previous employer, RDA or PHCD, but would come in and be considered a new employee. I think that's probably where the complaints you may be getting are coming from, the fact that without a transition agreement we have to bring people on as if they were new employees. Again, I'm trying to be careful. We in management have been trying to negotiate that 13 3/14/07 - Appropriations transition agreement with union leadership but to date have been unable to. CHAIRMAN CLARKE: So the decision was made to proceed with the reorganization without a transition agreement?
That aspect of reorganization, yes. I mean, we could either hire the people and bring them on at that first step without a transition agreement, do it with a transition agreement, which to some extent is out of our control without being able to negotiate with the union, or we could just not hire people at all. And of those three, the one we chose is probably the lesser of the evils. CHAIRMAN CLARKE: And you didn't anticipate a problem with negotiating a transition agreement?
No, we didn't. In fact -- no, we didn't anticipate a problem. In fact, we were led to believe 14 3/14/07 - Appropriations that the union was motivated to, in fact, negotiate that agreement. CHAIRMAN CLARKE: So there's a possibility that those people that are being brought back may go at the lower step till the end of the administration or forever?
In fact, that's not just possible. That is what will happen without a transition agreement. CHAIRMAN CLARKE: Do you think that's fair for the people?
Absolutely not. That's why we're working as hard as we are and have been to get the union to come back to the negotiating table to talk about that transition agreement. Like I said, to date we've been unsuccessful getting them back to the table, much less negotiating. CHAIRMAN CLARKE: And there's no alternative, these people can go on forever --
Unfortunately, 15 3/14/07 - Appropriations those type of issues are historically the types of issues that have been negotiated -- it's been called a side letter in the past, but those agreements have been negotiated and not just been administratively implemented. To answer your question, no, Councilman, I don't think that's fair. It's about as unfair as anything can get, but unfortunately our hands are tied to some extent. CHAIRMAN CLARKE: All right. We'll deal with this at a later date. I know Councilman Rizzo had a question and then Councilman Kelly.
I just want to touch upon what Councilman Clarke was saying. Is there any time table that you have with this transition agreement at this point? You're still negotiating?
Our time table was to have had the transition agreement signed, sealed and delivered before we started bringing people back. That way we could have brought people back at 16 3/14/07 - Appropriations their then current salary and brought with them their time, et cetera. But obviously that's not going to happen. To answer that question, no. Right now we're just kind of in limbo.
And what's your feeling about getting a transition agreement approved or enacted?
That's a question I think that would be better asked of the other side because we're sitting on go ready to discuss it, ready to negotiate, but we've been stymied in that the union has been unwilling to come back to the table to talk about it.
Okay. I'd rather discuss it with the other side I guess to see what their objections are with the transition agreement. Thank you, Mr. Chairman.
I'd encourage you to. CHAIRMAN CLARKE: So if you move the people back to where they came 17 3/14/07 - Appropriations from, you can give them the salary they got prior to the reorg; right?
I'm sorry? CHAIRMAN CLARKE: If you move the people back to the department they came from, they can go back up to the prior salary?
Yeah, but that would unravel the entire reorganization. I mean -- CHAIRMAN CLARKE: I understand but that is an alternative. If the emphasis were on making those individuals whole, there is an opportunity to give them back the salary that they had prior to the reorg?
I suppose that's an alternative. We could also just bump them up to their salary that they had in their previous jobs now, but that -- CHAIRMAN CLARKE: But you're pretty much telling me the likelihood of getting a transition agreement is pretty slim? 18 3/14/07 - Appropriations
No, no, that's not what I'm saying. What I am saying is it's not from a lack of effort on our part. CHAIRMAN CLARKE: I understand that. You can't negotiate with yourself.
That's correct. What I am saying is I can't speak to how motivated the union is to come back to the table or how quickly, therefore, they'd be willing to come back. Maybe as a result of a couple of phone calls from the legislative branch they'll be willing to come back tomorrow. I can't lay odds on the likelihood of getting a transition agreement deal right now. CHAIRMAN CLARKE: Okay. Councilwoman Miller, did you want to add on this particular issue?
Yes. CHAIRMAN CLARKE: Councilman Rizzo I know has a different issue.
Yes, I want to ask the question on this same 19 3/14/07 - Appropriations issue. What exactly is a transitional agreement? What things are included in it or is that part of your --
No, I think I can -- I wish I had counsel here. I think I can tell you some of the elements. I can't tell you exactly what we're offering or what they want, but, among other things, the salary that a person moving from one organization to OHCD would receive, their vacation time, their leave time, their sick time from -- basically those benefits -- not even benefits -- the time and salary type benefits that they had at the other organization, what that would look like in the new -- at OHCD.
What if they left RDA or whatever with 20 sick days; what happens to those sick days? 20 3/14/07 - Appropriations
Without a transition agreement, they come in with whatever -- I think you get ten sick days or whatever the number of sick days you would get as a new hire, somebody fresh off the street.
I understand as a new hire they would come in just like any other new hire and they'd begin to earn their time, but they actually lose all their built-up time without the transition agreement?
Maybe that's why they don't want to sign. Let me ask you this --
What 21 3/14/07 - Appropriations about the qualifications for the actual job? What I've heard is that people are coming back and I'll just say applying for their old position or old type of work, but they're saying that they're not qualified because the qualifications have changed, people that have, you know, been doing a job for a number of years are no 10 longer eligible for that particular position.
No, that's not necessarily true. You're kind of delving now into another important though related issue. If we're talking about people moving from RDA in particular to OHCD, there are certain jobs which existed at RDA which either does not exist at OHCD or existed in a different form. In other words, the specs were different from RDA to OHCD. That is another issue that we're negotiating with the union on, the modification of job specs, in most cases the modernization of job specs. That's an issue I cannot go into any detail on, 22 3/14/07 - Appropriations but in those situations where the job spec differed, without an agreement between us and the union, we have to use the old job spec. In situations where a job spec existed at RDA but did not exist at OHCD, we've been unable to hire because we haven't been able to get an agreement on the creation of a new job spec. And I don't know if that was the situation with the people you're talking about or not.
Actually, what they're saying is under the old classification they were not -- in terms of their competencies, abilities, the qualifications, that people are now -- people that have worked there for lots of years are now required to have college degrees.
No, that's not true. That's not true. In certain situations where there were multiple applicants for given positions, we interviewed those folks who wanted or who 23 3/14/07 - Appropriations applied for a given position. And in certain cases -- I'm pulling numbers out of the air -- there may be seven people interviewing for two slots, in which case obviously we'd have to make some difficult decisions.
So the educational qualifications for certain positions did not go up?
Councilman, Catherine Califano, office of housing, Philadelphia office of housing. In OHCD's job specifications, we have language that has an equivalent. So for every education requirement, there is an experience equivalent which allows us to be more broad or have a broader interpretation of qualifications for individuals for positions.
So no one is actually being denied their former position, similar former position because of lack of a college degree?
That's correct. In 24 3/14/07 - Appropriations fact, I will tell you we've interviewed some folks who had similar positions, if not identical positions, at OHCD and have been turned down for the job. Some folks have come back to us and said no, we don't want your job.
And I believe we were told that there is employment assistance help.
That's still available. In fact, if you need that person's contact information, I can give it to you at the end of my testimony.
All right. Thank you. CHAIRMAN CLARKE: Thank you. Let the record reflect Councilwoman Campbell and Councilwoman Miller have joined the committee, and Councilman DiCicco is also in attendance. Councilman Rizzo? 25 3/14/07 - Appropriations
Thank you, Mr. Chairman. This is for Dianne Reed. This is a different issue.
For now anyway. You're always in demand. You know that. In reference to the transfer ordinance for the Police Department, you have here class 300 for uniforms and equipment. Could you have the Police Department come forward and respond to an e-mail that I received that the bulletproof vests that police officers are wearing may be out of date and not be, for lack of a better word, certified? And in this transfer ordinance that lists equipment, is that one of the issues that the Police Department's dealing with? If that's not true, I want to know. If it is true that there are some deficiencies with body armor for our police officers, I really need to know that. 3/14/07 - Appropriations
Good morning. My name's Tom Dewall. I'd administrative services director for the Police Department. With regards to the class 300 $239,000, the vests are included in that for the 100 police officers.
Can you confirm whether or not we have deficiencies in bulletproof vests?
I cannot confirm at this time. I would be able to get you an answer.
During the process here, could you check on that and come back to the witness stand and report on that? This is for the new officers you're reporting on. I'm talking about for the officers already out there.
I've been told by a police officer that the vest that he presently wears has lost its certification. Apparently, there is a 27 3/14/07 - Appropriations life expectancy or a life to a bulletproof vest and I understand some of the vests that our officers are wearing -- whether that's accurate or not I don't know, but I'm concerned about that.
The question to the budget director is that the Pennsylvania State Police have now slowly started to take over the patrol of the expressway. I'd like to know what impact when that is completed -- I'm sure it's too early now to have any significant impact on the Police Department's budget. When the state patrols are taking over completely, I think it's by 2008, what impact will that have on the Police Department's budget and what are you going to do to adjust your budget to 28 3/14/07 - Appropriations compensate for that service that the Pennsylvania State Police will provide?
Councilman, we are anticipating that since the state will patrol the highways in the city fully that we will be relieved of that responsibility and so we are showing $5.6 million as a savings in the out years.
Terrific. The issue I'd like to have addressed is the issue with the bulletproof vests. And if there is an issue with the existing vests, I'd like to know how many are at issue and what our plan is if there is an issue.
Thank you, sir. Thank you, Mr. Chairman. 29 3/14/07 - Appropriations CHAIRMAN CLARKE: Thank you, Councilman. Any other questions of this witness on any of these bills by members of the committee? (No response.) CHAIRMAN CLARKE: There being none, let the record reflect that Council President Verna has authorized Councilman DiCicco to be a member of this committee for purposes of making a quorum. Councilman, I knew you'd be ecstatic about that. Thank you for hanging around. Ms. Reed, do you have any other testimony to offer?
No, sir. CHAIRMAN CLARKE: Anyone else to testify on these bills?
Mr. Chairman, I didn't want to deal with this, but I asked a question that couldn't be responded to. They're going to check. So whether the record can be 30 3/14/07 - Appropriations kept open or whatever the legislative process would be, I have asked the Police Department to answer a question about the possibility that there be a deficiency in the bulletproof vests. CHAIRMAN CLARKE: Ms. Reed, can we have -- the Police Department's testimony is next week?
Yes. CHAIRMAN CLARKE: In the normal budget process. Councilman, is it okay if --
That would be fine, but I want to make sure if there is a deficiency this transfer ordinance 17 covers the dollars that are required to fix the problem. CHAIRMAN CLARKE: So, Ms. Reed, you'll make sure that the appropriate testimony with respect to Councilman Rizzo's request will be a part of the Police Department's testimony?
And if it's 31 3/14/07 - Appropriations not true, between now and then we'll forget it. If there is an issue, we'll deal with it. CHAIRMAN CLARKE: Councilwoman Miller?
I think I may be able to wait for the budget hearing, but I had a question about Wireless Philadelphia. I'll wait until the budget hearing.
Thank you, ma'am. CHAIRMAN CLARKE: If there are no other witnesses, no more testimony, and no more questions from the committee of this witness, we will now leave the public hearing and go into the public meeting of the Committee on Appropriations. Councilwoman Miller, can you please give me a motion on Bill 070121?
Yes. I move that Bill No. 070121 be reported out of this committee with a favorable recommendation and further move that the 32 3/14/07 - Appropriations rules of Council be suspended so as to permit first reading at our next session. CHAIRMAN CLARKE: Is there a second? (Motion seconded.) CHAIRMAN CLARKE: It being moved and seconded, Bill No. 070121 -- I'm sorry. Let me take a vote. All in favor? (Chorus of "ayes.") CHAIRMAN CLARKE: Those opposed? (No response.) CHAIRMAN CLARKE: The ayes have it. Bill No. 070121 will be reported out of committee with a favorable recommendation with rules suspension as to allow reading at the next session of Council. Councilwoman Miller, can I please have a motion on Bill No. 070122?
I move that Bill 070122 be reported out of this committee with a favorable recommendation 33 3/14/07 - Appropriations and further move that the rules of Council be suspended so as to permit first reading at our next session. (Motion seconded.) CHAIRMAN CLARKE: It being moved and seconded, those approve? Those in favor? (Chorus of "ayes.") CHAIRMAN CLARKE: Those opposed? (No response.) CHAIRMAN CLARKE: The ayes have it. Bill 070122 is reported out of committee with a favorable recommendation and rules suspension as to allow reading at the next session of Council. Councilwoman Miller, can you please make a motion on Bill 070123?
I move that Bill No. 070123 be reported out of this committee with a favorable recommendation and further move that the rules of Council be suspended so as to permit reading at our next session. 34 3/14/07 - Appropriations (Motion seconded.) CHAIRMAN CLARKE: It being moved and seconded, those approve? (Chorus of "ayes.") CHAIRMAN CLARKE: Those opposed? (No response.) CHAIRMAN CLARKE: The ayes have it. Bill 070123 will be reported out of committee with a favorable recommendation with rules suspension as to allow reading at the next session of Council. Bill No. 070124 has been held at the request of the sponsor. This concludes the Committee on Appropriations. Thank you all very much. - - - 35 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence, and objections are contained fully and accurately in the stenographic notes taken by me on March 14, 2007, and that this is a true and correct transcript of same. _____________________________ Kimberly A. Overwise Certified Realtime Reporter Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means unless under the direct control and/or supervision of the certifying reporter.)