Committee Hearing, June 4, 2007

COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON FINANCE - - - Room 400, City Hall Philadelphia, Pennsylvania Monday, June 4, 2007, 1:00 p.m. - - - Bills 060108, 109 - (Biosolids bills) Recessed to 6/7/07. Bills 070125, 151, 170, 260, 262, 388, 393, 401, 402 - RCAP Bills Bill 070368 - Re PGW Capital Budget Bill 070230 - City depository bill 12 Bill 070049 - Re claim checks, parking stickers Bill 070387, Res. 070405 - Re CDBG and NTI (Full text of all legislation attached hereto.) COUNCILMEMBERS PRESENT: Jannie Blackwell, Chair Blondell Reynolds-Brown William K. Greenlee Carol Ann Campbell Brian J. O'Neill Frank DiCicco Juan Ramos W. Wilson Goode, Jr. Marian B. Tasco - - - 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 Monday, 6/4/07 - COUNCIL COMMITTEE ON FINANCE WITNESS RCAP Bills Paul Deegan, PIDC, PAID................. Janet Parrish, Executive Director....... 20 Philadelphia Gas Commission Bill 070230 John Nacchio, City Treasurer............ 9 10 Bill No. 070049 11 Nancy Kammerdeiner, Dept. of Revenue.... 30 Bill 070387, Res. 070405 Veronica Pankey, President, Local 1971 34 Rick Sauer, Executive Director.......... 49 Philadelphia Association of CDCs Bernard Hawkins, Executive Director..... 57 Philadelphia Neighborhood Housing Services John Rowe, Executive Director........... 70 Utility Emergencies Services Fund John Gallery, Preservation Alliance..... 90 Mike Groman, Philadelphia Green......... 94 Will Gonzales, CEIBA Executive Director 111 Liz Robinson, ECA....................... 124 Judith Robinson, Realtor................ 138 3 Monday, 6/4/07 - COUNCIL COMMITTEE ON FINANCE WITNESS S. Wall, People's Energy Center CDC..... 159 Kevin Hanna, Housing Secretary.......... 162 Eva Gladstein, NTI Director............. 170 Debra McCullough, First Deputy.......... 196 Housing and Community Development Anthony MacIntosh, PHDC................. 222 Executive Vice President * * * 4 Monday, 6/4/07 - COUNCIL COMMITTEE ON FINANCE

Good afternoon. Thank you for your patience. We are now calling into session our Finance Committee slated for today. We note that the Biosolid bills for all who are present -- that is, Bill No.s 060108 and 060109 -- will not be heard today. Those bills will be considered on Thursday, June 7th, at 9:30 a.m. Again, anybody who's here on the Biosolids bills, Bill No.'s 060108 and 109, please note that they are not being considered today. They are rescheduled to Thursday, June 7th at, 9:30 a.m. Thank you very much. We note -- the Chair notes that we have a quorum. Present are -- is Councilman W. Wilson Goode, Councilman William Greenlee; and to my right, Councilman DiCicco and Councilwoman Blondell Reynolds-Brown. 5 6/4/07 FINANCE COMMITTEE - RCAP BILLS The Chair like-wise notes that Councilwoman Carol Campbell is like-wise here, and we are happy to have all of our colleagues in attendance. The first bills that will be heard will be read by our clerk. They are called the "RCAP bills," and Paul Deegan is here, who will testify, and the clerk will please read the titles of those bills.

Okay, this may take about five minutes. (Laughter.)

Bill No. 070260, an ordinance authorizing the Philadelphia Authority for Industrial Development ("PAID") to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program, in an aggregate amount not to exceed $1,400,000 to assist in the redevelopment of the Roosevelt 6 6/4/07 FINANCE COMMITTEE - RCAP BILLS Boulevard and Bustleton Avenue area and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements, all under certain terms and conditions. And Bill No. 070151, an ordinance authorizing the Philadelphia Authority for Industrial Development ("PAID") to file an application with the Office of the Budget Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program, in an aggregate amount not to exceed $3 million to assist in the development of the Lutheran Theological Seminary Learning Center, the Allen's Lane Art Center, and the Chestnut Hill College Student and Community Center; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements, all under certain terms and conditions. And Bill No. 070125, an ordinance authorizing the Philadelphia 7 6/4/07 FINANCE COMMITTEE - RCAP BILLS Authority for Industrial Development ("PAID") to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program, in an aggregate amount not to exceed $7,500,000 to assist in the development of the Free Library of Philadelphia; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements, all under certain terms and conditions. And Bill No. 070170, an ordinance authorizing the Philadelphia Authority for Industrial Development ("PAID") to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program in an aggregate amount not to exceed $500,000 to assist in the development of the Lutheran Settlement House; and authorizing the City to enter into an agreement with PAID in 8 6/4/07 FINANCE COMMITTEE - RCAP BILLS furtherance of grant requirements, all under certain terms and conditions. And Bill No. 070262, an ordinance authorizing the Philadelphia Authority for Industrial Development ("PAID") to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program, in an aggregate amount not to exceed $2,900,000 to assist in the development of Nueva Esperanza II; and authorizing the City to enter into an agreement with the PAID in furtherance of grants requirements, all under certain terms and conditions. Bill No. 070388, an ordinance 19 authorizing the Philadelphia Authority for Industrial Development ("PAID") to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program, in an aggregate amount not to exceed 9 6/4/07 FINANCE COMMITTEE - RCAP BILLS $400,000, to assist in the development of the Diversified Community Services Project; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements; all under certain terms and conditions. And Bill No. 070393, an ordinance authorizing the Philadelphia Authority for Industrial Development ("PAID") to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program, in an aggregate amount not to exceed $500,000, to assist in the conversion of the former Wills Eye Hospital in Philadelphia to the Jefferson Hospital for Neuroscience; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements, all under certain terms and conditions. And Bill No.

070401, an ordinance authorizing the Philadelphia 10 6/4/07 FINANCE COMMITTEE - RCAP BILLS Authority for Industrial Development ("PAID") to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program, in an aggregate amount not to exceed $500,000, to assist in the development of the North Philadelphia Health System; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements, all under certain terms and conditions. And, finally, Bill No. 070402, an ordinance authorizing the Philadelphia Authority for Industrial Development ("PAID") to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program in, an aggregate amount not to exceed $500,000, to assist in the development of Old Metropolitan Opera House; and authorizing the City to enter into an agreement with PAID in 11 6/4/07 FINANCE COMMITTEE - RCAP BILLS furtherance of grant requirements, all under certain terms and conditions.

Thank you very much. The Chair notes that Councilman O'Neill is here; he's also a member of this committee, and thank him for his attendance. Councilwoman Marian Tasco is here, and so all of our members are present. The Chair now recognizes Mr. Paul Deegan.

My name is Paul Deegan, D-E-E-G-A-N, and I represent PIDC and PAID. I think I'm going to be shorter in reading the titles, but I have submitted testimony that summarizes the projects. These projects are funded through the State Capital Budget. Typically, the projects are sponsored by the local legislator, and the money flows through PAID to the recipients. 5 million is a project that I think you've seen before. It's the Central Library branch expansion; they're adding 180,000 square feet. 5 million. Bill No. 070170 is for the Lutheran Supplement House. We're applying for a grant of $500,000. They will be renovating two buildings in the Fishtown area of the City to provide social services, which will include an education center, a domestic violence counseling center, and senior citizen housing. Bill No. " It's going to be owned by 13 6/4/07 FINANCE COMMITTEE - RCAP BILLS COPF, Incorporated. 4 million. Bill 070262 is for a grant for a RCAP grant for the Nueva Esperanza project. 9 million. Nueva Esperanza is a social-service provider to the Hispanic within the area bounded by Olney Avenue, Girard Avenue, Front Street, and Ninth Street. They intend to renovate two existing buildings to provide new commercial space and off-street parking for their administrative services and commercial space, which they'll rent out to provide income for their programs. And the total project costs is $5 million. Bill No. 070388 is for a grant for Diversified Community Services. We're applying for a grant of $400,000. The project will provide new 14 6/4/07 FINANCE COMMITTEE - RCAP BILLS administrative headquarters and a community services center at 22nd and Tasker streets and, this will allow Diversified to expand program and services to include day care, after-school programs, and adult education. 9 million. Bill No. 070393 is for a $500,000 grant for Jefferson Hospital for Neuroscience. Jefferson is converting the former Wills Eye Hospital to a dedicated hospital for neurological research and disease management. 2 million. I think we just approved the grant for this project back in February, as a matter of fact, but the Governor decided they needed some more money. Bill No. 070401 is for a grant for North Philadelphia Health System, $500,000. They're renovating their 15 6/4/07 FINANCE COMMITTEE - RCAP BILLS existing hospital at 16th and Girard, which I think is one of the few hospitals that are serving the inner-city area in North Philadelphia. And they're also adding a new emergency room. 5 million. And, finally, Bill No. 070402 is for a $500,000 grant for the old Metropolitan Opera House; the old Met is at Broad and Poplar Streets. It's a historically certified building and it's going to be become the headquarters for the Holy Ghost Headquarters Church, the North Philadelphia Community Development Corporation, and commercial retail space. The total project cost is $10 million. Bill No. 070151 authorizes us to apply for three grants totaling $3 million for Lutheran Theological Seminary, Allen's Lane Art Center, and Chestnut Hill College. 16 6/4/07 FINANCE COMMITTEE - RCAP BILLS Lutheran Theological Seminary, at 7301 Germantown Avenue, is building a new facility to house the seminary's public archive collection. The total project cost is approximately $19 million, and the redevelopment grant is $500,000. Allen's Lane Art Center is going to renovate its current building, which it leases on a seven-acre portion of Fairmount Park Allen's Lane in East Mt. Airy. The project includes new mechanical systems, new rest rooms, upgrades to all of the program spaces, new windows, and minor exterior cosmetic upgrades. The total project cost is approximately $2,250,000, and the RCAP grant is $ million. And Chestnut Hill College is renovating the existing Greenfield mansion facility at 9220-9250 Germantown Avenue.

I think they purchased this from Temple 17 6/4/07 FINANCE COMMITTEE - RCAP BILLS University -- I think they purchased the building from Temple University. And it's going to become a going to provide new classroom space for Chestnut Hill College and event space for both the students and the surrounding community. 5 million. I think I've lost track. Did I miss any? I think I've gotten them all. This concludes my testimony, and I request the Finance Committee's favorable consideration of these bills and ask that the rules of Council be suspended to permit first reading at the next regularly scheduled session of City Council. And I thank you for the opportunity to testify and for listening to all of these bills on one hearing schedule. I appreciate it very 18 6/4/07 FINANCE COMMITTEE - RCAP BILLS much. And I'd be happy to answer any questions you may have about any of the projects.

Thank you very much. Are there any questions for Mr. Deegan on any of these bills? Councilwoman Tasco?

Did I hear you say that -- I missed -- I think it was 070170. Did I hear you talk about a car dealership on Broad Street?

That's going to be at the Roosevelt Boulevard and Bustleton Avenue intersection in Northeast Philadelphia.

Okay, thank you.

I believe it's in the 6th Council District, and it was something sponsored by -- I believe, State Senator Tartaglione's office sponsored it in the State budget. 19 6/4/07 FINANCE COMMITTEE - RCAP BILLS And they are three vacant buildings, and I think they're having a deteriorating influence on the commercial section in the lower northeast, and this will renovate those buildings and provide -- you know, a new company will move in and provide jobs in the area.

Thank you very much.

You're welcome.

Are there any further questions on any of the RCAP bills for Mr. Deegan? (No further questions.)

Thank you.

Thank you, Madam Chairwoman and members of the committee.

Certainly. We will now consider the PGW Capital Budget bill, Bill No. 070368. 20 6/4/07 FINANCE COMMITTEE - RCAP BILLS We invite those willing to testify: Janet Parrish, Executive Director of the Commission; and Craig White, the Executive Vice President of Philadelphia Gas Works. Thank you very much. (Witnesses come forward.)

Thank you.

Thank you.

Good afternoon, Chairwoman Blackwell and members of the committee. I'm Janet Parrish, the Executive Director of the Philadelphia Gas Commission.

Thank you very much. I neglected to read the title of the bills excuse me. Will the clerk please read the title of the bill.

Yes. Bill No. 22 070368, an ordinance approving the Fiscal Year 2008 Capital Budget provided for expenditures for the capital purposes of the Philadelphia 21 6/4/07 FINANCE COMMITTEE - RCAP BILLS Gas Works, including the supplying of funds in connection therewith, subject to certain constraints and conditions; and acknowledging receipt of the forecast of capital budgets for Fiscal Years 2009 through 2013.

Thank you very much. Please continue, Ms. Parrish.

Thank you, thank you. And I appreciate the opportunity to be here today to present this testimony on behalf of the Philadelphia Gas Commission. We have, as usual, submitted our written testimony, and attached to that testimony is a copy of the Commission's resolution in order adopted at its April 25th meeting, which sets forth all of the Commission's recommendations with respect to PGW's capital budget for Fiscal Year 2008. The ordinance, or the proposed 22 6/4/07 FINANCE COMMITTEE - RCAP BILLS bill before you, is a reflection of the Commission's recommendations in this matter. So, of course, we are here today to urge your support and approval of that bill and also are requesting a suspension of the rules so that first reading can occur at the next regularly scheduled session of Council. As you note, Mr. White, PGW's Acting Chief Operating Officer, seated to my left, has also submitted written testimony, which provides further detail on the capital budget itself. And I'd simply like to note that, as we indicate in both of our testimonies, the Commission this year has recommended a continuation and also an expansion of the framework that Council has approved for the past five fiscal years, according to which line-item transfers within the capital budget may take place, some at PGW's discretion intradepartmentally and others with the Commission's approval 23 6/4/07 FINANCE COMMITTEE - RCAP BILLS interdepartmentally. And we are recommending some expansion of PGW's discretion in this regard on a trial basis for this fiscal year's budget, which will have the result of giving PGW increased responsibility for managing within each individual department. The Commission, of course, would continue to maintain oversight and would report to Council at the conclusion of the year as to our further recommendations. I would be happy to go into any further detail you might wish to her or answer any questions that you may have today. But with that, Mr. White also is available should you have questions of him. Thank you.

Thank you very much. Are there questions from 24 6/4/07 FINANCE COMMITTEE - RCAP BILLS members of the committee? (No questions.)

Thank you very much. We will know, as is on your schedule, again, that the Biosolids bills, No. 060108 and 109, are recessed until Thursday, June 7th, at 9:30 a.m. Thank you.

Thank you. * * * 25 6/4/07 FINANCE - BILL 070230

We will now here the City depository bill, Bill No. 070230, and we ask the clerk to read the title of the bill.

Bill No. 070230, an ordinance amending Chapter 19-200 of the Philadelphia Code, entitled "City Funds - Depositories, Investments, Disbursements," by amending Section 11 19-201, entitled "City Depositories," by authorizing the City Treasurer to deposit funds in CitiBank, under certain terms and circumstances.

Thank you very much. We welcome our City Treasurer and ask him to identify himself for the record and begin your testimony.

Good afternoon I'm John Nacchio, Treasurer of the City of Philadelphia.

Thank you.

Just part of my 6/4/07 FINANCE - BILL 070230 written testimony. Good day, Madam Chairwoman and members of the Committee Finance. I am John Nacchio, the City Treasurer for Philadelphia. I appreciate this opportunity to testify before you on matters related to City depositories, financial institutions authorized to accept City deposits. In this proposed legislation, CitiBank is being added to the existing list of ten authorized depositories. This proposed depository meets the four basic financial criteria required by the Philadelphia Code, which requires depositories to have at least $100 million in assets, been in business for the last five years, been profitable for the last two years, and are federally insured. This criteria assessment is conditional in that CitiBank would need to meet all of the criteria requirements to maintain annually its 27 6/4/07 FINANCE - BILL 070230 depository status as set forth in Chapter 19-200 and 17-104 of the Philadelphia Code. There is no objection in the provision of the Philadelphia Code to add CitiBank as an authorized City depository. That concludes my written testimony.

thank you. Are there any questions for Mr. Nacchio?

Madam Chairwoman?

Yes, Councilman Goode?

Thank you, Madam Chair. Good afternoon Mr. Nacchio.

Good afternoon.

In addition to the basic requirements that need to be met for City depositories, in 28 6/4/07 FINANCE - BILL 070230 addition, has City bank responded to the requested information to give those depositories?

Yes. I've created an annual request for information from all City depositories, and they've completed that kind of application format for me and submitted information about their bank and financial institutions with their statements.

And does that information include anti-predatory lending information and community reinvestments goals?

There's a statement on both of those, yes.

Thank you.

Are there any further questions for Mr. Nacchio? (No further questions.)

Are you requesting a suspension of the 29 6/4/07 FINANCE - BILL 070230 rules, sir?

Yes, yes, I am.

Thank you very much.

Okay. Thank you. * * * 30 6/4/07 FINANCE - BILL 0700049

The next bill is the claim checks and parking sticker bill, Bill No. 070049, and we will ask the clerk to read the title of the bill.

Bill No. 070049, an ordinance amending Section 19-1204 of the Philadelphia Code, entitled "Books and Records," and Section 11 19-1205 of the Philadelphia Code, entitled "Claim Checks and Parking Stickers," by no longer requiring the retention of claim check stubs, all under certain terms and conditions.

Would Miss Nancy Kammerdeiner of the Department please come forward. (Witness comes forward.)

Thank you very much. Good afternoon, Commissioner. Welcome, and please identify yourself and begin your testimony. COMMISSIONER KAMMERDIENER: 31 6/4/07 FINANCE - BILL 0700049 Good afternoon, Councilwoman Blackwell and members of the Committee on Finance. My name is Nancy Kammerdeiner, Revenue Commissioner, and I'm pleased to be with you to testify in favor of Bill No. 070049. As the title indicates, this bill would amend two sections of the code and would eliminate the need for parking tax operators to maintain claim-check stubs for six years subsequent to the year of the transaction. At one time, these claim-check stubs were used by the Department of Revenue in the audit of parking lot operators. With changes and technology and improvements in the books and records maintained by these businesses, the actual stubs are no longer an integral part of the audit process. The continued storage of these claim-check stubs places an unnecessary burden on the parking lot operators. 32 6/4/07 FINANCE - BILL 0700049 However, without these amendments to the code, the Department of Revenue could not waive the need for their retention as a part of the record. This concludes my testimony, and I'd be happy to answer any questions that you might have.

Thank you, Commissioner. Are there any questions for Commissioner Kammerdeiner? (No questions.)

Are you requesting a suspension of the rules, Commissioner? COMMISSIONER KAMMERDIENER: That would be helpful so that this could be in place the next time our auditors go out to parking lot operators and we don't look for this.

Thank you very much. COMMISSIONER KAMMERDIENER: Okay, thank you. 33 6/4/07 FINANCE - BILL 070387, RES. 070405

Certainly. The next bills are Bill No.'s 070387, the Community Development Block Grant; and NTI, the Neighborhood Transformation Initiative bills. So it's Bill No. 070387 and Resolution No. 9 070405. We will ask the clerk to please read the titles of the bills, and while he's coming forward, we're going to have testimony by those present and then answer questions, if that is okay with the members of the committee. And so I suppose what we'll do, then, is skip Mr. Hanna and Miss Eva Gladstein, have all of the other testimony come in, and then you can respond to all of the testimony you hear in addition to any questions members of this committee and members of Council may have. Is that satisfactory to everyone? Great. 34 6/4/07 FINANCE - BILL 070387, RES. 070405 Then the first person here, after the clerk reads the title of the bills, is Veronica Pankey, if she's here.

Yes.

Thank you. Please come forward. And, Clerk, please read the title of the bill and the resolution.

Bill No. 070387, an ordinance authorizing the Secretary of Housing or his designee (Secretary of Housing) on behalf of the City, to file applications with the United States Department of Housing and Urban Development (HUD) for a Community Development Block Grant CDBG (CDBG), to participate in the HOME Investment Partnership Program and the Emergency Shelter Grant (ESG) Program; and for a Housing Opportunity for Persons With AIDS HOPWA grant; and with the Commonwealth to obtain grants under the act of April 12, 1956, P.L. 1449, 35 6/4/07 FINANCE - BILL 070387, RES. 070405 Section 4, as amended, to prevent and eliminate blight, authorizing the Director of Commerce to use the Section 5 108 loan Guarantee program; and authorizing the Secretary of Housing and the Director of Commerce to enter into all understandings and assurances contained in such applications and take all necessary actions to accept the grants, all under certain terms and conditions. And Resolution No. 070405, a resolution approving the Annual Program Statement and Budget for the expenditure of the Neighborhood Transformation Initiative (NTI) bond proceeds for Fiscal Year 2008. (Witnesses come forward.)

Thank you very much. The Chair notes that we have many people, those as well as members of the union, many employees present and past who are here. We thank you 36 6/4/07 FINANCE - BILL 070387, RES. 070405 all for coming. We know we've had a long haul, and we regret those who have -- I'm sure Miss Pankey will deal with the issue -- those who are unemployed I see Mr. Wills sitting in front of us, and we thank you all for your continued interest and sacrifice over hard times and long days to this whole issue of housing reorganization. Good afternoon, Miss Pankey, President, Local 1971. Thank you for being here, and we're glad to see that you're well. Haven't seen you in a while.

Thank you. Good afternoon, Councilwoman Blackwell, members of the Finance Committee, and attendees.

Good afternoon.

And my name is Veronica M. Pankey, President of AFSCME Local 1971, District Council 33, 37 6/4/07 FINANCE - BILL 070387, RES. 070405 AFL-CIO. And this is our Vice President, Matthew J. Foster. We are here today speaking with regard to the Year 33 proposed consolidated plan and appealing to this committee and members of City Council to not support said plan as presented by the Office of Housing and Community Development, known as OHCD. Permit me to introduce to the members of this committee the work performed by AFSCME Local 1971 left union members and the agencies for which we work: The Redevelopment Authority of the City of Philadelphia, known as RDA; the Philadelphia Housing Development Corporation, known as PHDC; and the Office of Housing and Community Development, known as OHCD. The Redevelopment Authority coordinates real-estate activity, and it acquires and disposes of properties for development purposes. It finances and oversees the development of housing 38 6/4/07 FINANCE - BILL 070387, RES. 070405 and rental projects undertaken by nonprofit and for-profit developers. It also issues debts to finance-specific projects and for programmatic purposes such as low-interest home-improvement loans. The Redevelopment Authority is, by State law, the only body in Philadelphia that can issue housing bonds and acquire land through eminent domain for the public good. PHDC administers the weatherization and basic system repair programs and oversees the rehabilitation services performed by contractors to income-eligible occupants. PHDC acts as developer for project, as directed by OHCD, and is responsible for the Home Ownership Rehabilitation, known as HRP, and is the Home Start Program, which involves the rehabilitation of homes for sale to income-eligible first-time home buyers. 39 6/4/07 FINANCE - BILL 070387, RES. 070405 It administers the adaptive modification program to eligible disabled citizens to afford them safe mobility throughout their home. It also manages and maintains a few low- to moderate-income scattered sites rental properties. OHCD is responsible for establishing housing and developing community development policy for the entire city housing agencies, setting priorities and coordinating planning efforts. It administers the housing budget and contracts with the Redevelopment Authority, PHDC, the Philadelphia Housing Authority, as well as subrecipient nonprofit organizations to conduct planning activities and perform service and support of the overall housing plan. As a result of the housing organization of 2006 in which 69 of our members were laid off, OHCD is 40 6/4/07 FINANCE - BILL 070387, RES. " Currently, a Vacant Property Review Committee advises the Commission of public property on the acceptance and disposition of City-owned properties. Currently, in accordance with Section 16-406 of the Philadelphia Code, the Redevelopment Authority disposes of properties. OHCD's ability to acquire this authority remains to be seen. On May 14, 2007, AFSCME Local 1971 received from OHCD the Year 33 Proposed Consolidated Plan. The budget, as presented, clearly depicted not only a decrease in allocation of CDBG and other funding resources, but also an unrealistic projection of 41 6/4/07 FINANCE - BILL 070387, RES. 070405 program income to be raised during the operating year July 1, 2007 through June 30, 2008. 35 million less from their overall funding sources. What is unrealistic regarding programming income is, PHDC's primary source of generating such income is through the sale of its real estate inventory. Given its real estate department was dissolved with the 2006 layoffs and 30 of our union members and the implementation of a bogus housing reorganization, the only employed qualified staff are no longer available to market PHCD's inventory. 42 6/4/07 FINANCE - BILL 070387, RES.

070405 Additionally, as it currently stands, those structures, which will be classified as prime, are being given to CDCs and other nonprofit entities for nominal consideration at the directive of this administration, as such leaving PHDC with little to nothing to sell at market rate, impeding its ability to generate the substantial monies for program income. The Redevelopment Authority primarily generates its program income through the sales of its assets. This has occurred over the past five years to assist in sustaining not only themselves but also shortfalls of PHDC and OHCD, as was the case in 2003 to avoid layoffs. Should such requirements or directives continue to be mandated, it is clear that in the not-so-distant future, there will be major financial woes for the Redevelopment Authority. OHCD has nothing, owns 43 6/4/07 FINANCE - BILL 070387, RES. 070405 nothing; therefore, does not have the ability to earn program income, waits in the winds, raking in the efforts of PHDC and RDA. And as a thanks, we get laid off, reorganized, no respect, no 7 recognition, no labor agreement, and no 8 cost-of-living increase. )

It is time for this administration to be held accountable for the decisions they make and the projections they forecast. Over the past five years, substantial budget deficits have been dealt to the housing industry, and these agencies have been direct targets; in particular, labor has been the outsource of resolving these deficits. Time and again, layoffs and staff reduction results in decreased productivity. However, this administration's annual completion projection for each program was increased over the previous 44 6/4/07 FINANCE - BILL 070387, RES. 070405 years with less staff to perform. In 2004, we were issued 28 layoffs; in 2006, 70 layoffs, early retirements, 5 and a bogus housing reorganization. 6 The desire of this 7 administration to achieve a savings for 8 which we have not been made aware of 9 the amount and to become more effective 10 and efficient, which, at this time, is 11 worse, has left these agencies in 12 shambles. There has been at least 13 seven housing reorganizations in the 14 past 32 years, and never has any been 15 as unorganized, disruptive, 16 non-productive, and unnecessary as this. (Applause.)

The deficits the housing industry continues to face should not be resolved on the backs of labor. It is the responsibility of this administration to find and supply a realistic source to the budgetary woes of PHDC, OHCD, and the 45 6/4/07 FINANCE - BILL 070387, RES. 070405 Redevelopment Authority. The administration has the resources available, and that is the General Fund. At July 1, 2006, AFSCME Local 1971 watched the surplus of the General Fund grow, and not one penny was allocated to meet the shortfall of the $7.3 million deficit. This administration, rather, laid off 70 employees. A view across the nation shows that other large municipalities facing the very same deficits obtain assistance from their general fund. It is the position of Local 1971 that if such action is not permissible by City Charter, that the necessary steps be taken in order that monies be committed to the annual CDBG budget beginning with operating year July 1, 2007. While this administration to date has not given a definitive answer as to whether they are proposing 46 6/4/07 FINANCE - BILL 070387, RES. 070405 reductions in the current staffing level at the three housing agencies, it is the opinion and position of AFSCME Local 1971 that not one body can be afford to be lost specifically at PHDC and the Redevelopment Authority, and we look forward to the additional new 9 hires committed as a result of the 10 transfer ordinance. 11 People are needed to make the housing and blight elimination programs function. The current housing agencies have been understaffed for years, and despite what some efficient experts with no housing experience may think, we cannot get more work in this field out of fewer workers; there is a point of diminishing returns. AFSCME Local 1971 is extremely concerned about the employees we represent. We are exceedingly apprehensive about the future employment and working conditions of our union members. 47 6/4/07 FINANCE - BILL 070387, RES. 070405 We come before this committee, requesting assistance, and obtaining a commitment of fair treatment of employees by the City administration not only to finding other resources to offset the budget deficits but obtaining a fair contract. Their claim that it wants to work cooperatively with Local 1971 and to assure fair treatment of employees does not clearly demonstrate said desire. The evasive response to layoffs for Fiscal Year '08 and the numerous concessions regarding our contracts remain on the table, and no 17 cost-of-living increase is being offered after three years of production rendered. Local 1971 reiterates our desire to meet with the City administration to assume negotiation sessions and obtain a fair contract. Madam Chairwoman and members of the committee, on behalf of the 48 6/4/07 FINANCE - BILL 070387, RES. 070405 membership of Local 1971, I respectfully ask City Council not to approve this Year 33 proposed consolidated plan as presented; but rather, charge this administration to take the necessary steps to committing General Fund dollars to meet all, if not some portion, of this all and CDBG budgets presented for approval. We of Local 1971 District Council 33 thank you, Madam Chairwoman and the committees in City Council for your support. (Applause.)

Thank you, Miss Pankey and Mr. Foster. Let me say that we will ask Mr. Hanna to be prepared when he comes forward to respond to some of the issues mentioned and to let the committee know, given this housing reorg and all of the battles and the myriad hearings we've had in the past, how we are made better, how the 49 6/4/07 FINANCE - BILL 070387, RES. 070405 departments are working now, given the employment levels, and how housing production is now faring with -- given the housing reorganization. So we'll let you prepare to respond to those questions. If it is okay with the committee, unless there are some questions for Miss Pankey and Mr. Foster, thank you very much.

Thank you.

We're going to ask Rick Sauer, Executive Director of Philadelphia Association of CDCs to come forward. (Witness comes forward.)

Thank you very much. Thank you all for your patience. Good afternoon.

Good afternoon, Chairwoman Blackwell and members of Council.

50 6/4/07 FINANCE - BILL 070387, RES. 070405 Excuse me one moment. I neglected to mention the presence of Juan Ramos, so all who are on the committee are present. Thank you.

Thanks. As I mentioned, my name is Rick Sauer, and I'm the Executive Director of the Philadelphia Association of Community Development Corporations. And as I think you all know, we're a citywide of CDCs and other housing and economic development work throughout the City. I'm going to keep my comments brief today, and there's three points in particular that I wanted to focus on. The first is around affordable housing; in particular, the need to if identify increased dedicated funding for the Philadelphia Housing Trust Fund. The trust fund's been operational now for about a year-and-a-half. 51 6/4/07 FINANCE - BILL 070387, RES. 070405 We've had a good track record of getting some funds out in the streets, but what we're seeing, which I think we already knew, is that the demand for those resources are way beyond what is available. As the price of buying a home in Philadelphia has gone up, as the cost of renting an apartment has gone up, there are more and more folks in need of adequate affordable housing. 7 million available. And while they did forward-commit some additional funds, that's not going to be a solution in the longer term. So there's a number of possible dedicated funding sources that 52 6/4/07 FINANCE - BILL 070387, RES. 070405 are out there that could be tapped into. The Housing Trust Fund Oversight Board is actually starting to give thought to this issue as well, and we would look to work with City Council to identify appropriate sources that can expand funding for the trust fund and enable the City to better address its affordable housing needs. Second is around neighbor economic development. We're certainly supportive of the effort to pass the bond funds to implement the Restore Philadelphia Commercial Corridor Initiative. Commercial corridors provide a critical role in our neighborhoods, not only to provide local access to goods and services and jobs, but they're the focal point; you know, sorts of the heart of many neighborhoods. And, unfortunately, through the last couple decades, we've seen a lot of these corridors decline dramatically. 53 6/4/07 FINANCE - BILL 070387, RES. 070405 So the infusion of the funds that City Council has approved will provide a big boost. Most of those dollars are sort of capital-oriented, doing streetscape improvements, things like that, which is very important. At the same time, we also know that it's important to have an entity on the ground that can sort of manage the process of improving commercial corridors, so it would be the facilitator or the coordinator of that effort. Many CDCs play that role as well as other organizations, and it's critical that there's also adequate operating support to carry out those myriad of activities that they're involved in if those revitalization efforts are going to be successful. So we certainly support the implementation of the bond ordinance, but we need to identify and ensure there's adequate operating support for 54 6/4/07 FINANCE - BILL 070387, RES. 070405 those groups as well, whether it's through the CDC tax credit program that Councilman Goode has been the leadership on before or whether it's more CDBG funds or whatever the source, we know that's important. Also, another critical issue around commercial corridor revitalization -- and it ties into the larger issue of safety and crime prevention in these neighborhoods -- is the whole issue of pedestrian-friendly lighting. There has not been strong support from the Streets Department in the past to put in more -- instead of the high street lights, the more pedestrian-oriented light to make our sidewalks and streets safer and more secure. Many groups are now tapping into funds elsewhere, whether from the State or from other sources that require a local match, and more groups are looking to implement the strategy 55 6/4/07 FINANCE - BILL 070387, RES. 070405 on a targeted commercial corridor basis.

So we need the support from City Council to work with the administration to get a good strategy in place to make sure that we can address this issue more effectively. And the final issue that I wanted to focus on is around property acquisition and disposition. We know, with NTI, there was a fairly substantial push to acquire properties, vacant properties, throughout the City. I think the City committed to acquiring over 6,000 such parcels, a number of those parcels have been acquired for projects that are already going forward. A number of other properties that have been committed to are still sort of stuck in the pipeline, and there are numerous reasons for that, we all know. But if we're going to be successful in actually redeveloping 56 6/4/07 FINANCE - BILL 070387, RES. 070405 these vacant properties and moving some projects forward, we need to expedite that process a little bit quicker. So we know that this has been an ongoing issue. Again, we're looking to work with City Council to figure out ways that we can better address this -- both the process issue but also the funding issue, because while each Council District had their own allocation of funds for acquisition and the City had another pool of funds available on a citywide basis to acquire property, as we all know, I think those funds are pretty much committed and expended. And while there's a slight bit more NTI money, I think, for acquisition in Logan Triangle for the upcoming year, pretty much all of the acquisition funds are tapped out, so the real question becomes: How do we support that critical activity as we move forward? 'Cause, as we know, if 57 6/4/07 FINANCE - BILL 070387, RES. 070405 we don't have land, if we don't have property, you can't build on it, and that's a key to the success of turning many of these neighborhoods around. So I want to thank City Council for their past support of housing and economic-development efforts, and we look forward to working with you in the future to address these key issues.

Thank you very much. Any questions for Mr. Sauer? (No questions.)

Thank you. Bernard Hawkins, Executive Director of PNHS, Philadelphia Neighborhood Housing Services. (Witness comes forward.)

Good afternoon. Thank you.

Good afternoon. Philadelphia Neighborhood 58 6/4/07 FINANCE - BILL 070387, RES. 070405 Housing Services, PNHS, is one of the leading providers of services to low-income homeowners in the City of Philadelphia. Annually, through our contract with OHCD, PNHS provides low-income homeowners in our targeted neighborhoods and on targeted blocks with financial services and resources needed to maintain and improve their homes. PNHS's menu of service includes exterior facade treatment programs, in which qualified homeowners can receive subsidies for sidewalk and step replacement work; porch repairs; window and door replacement; roof repair; and new heating systems. These services improve the appearance of the community and the residents' quality of life. PHNS leverages public funds with homeowner reinvestment. With our programs and services, homeowners are required to pay a minimum of 20 percent 59 6/4/07 FINANCE - BILL 070387, RES. 070405 of the cost of their improvements. In addition, PNHS provides loans for home improvements through our Revolving Loan Fund and also through referrals to reputable conventional lending institutions. PNHS maintains partnerships with several banks in the City: PNC Bank, Commerce, Citizens, Beneficial, Wachovia, Nova, Sovereign, TD Bank North, and M&T Bank. These private institutions support PNHS's preservation and revitalization in west and southwest Philadelphia, providing programming support and access to capital. Another PHNS partner is State Farm Insurance Company, which supports PHNS activities by providing funding for our major systems repair program. Providing subsidies to low-income homeowners for plumbing, heating electrical, and roofing repairs. This private support allows 60 6/4/07 FINANCE - BILL 070387, RES. 070405 PHNS to deliver our services at a minimum cost to the homeowners while leveraging significant private investment. Over the past three years, federal budget cuts and other factors have resulted in funding cuts to PHNS which have dramatically our ability to continue to provide valuable and needed services to low-income homeowners, who would likely defer maintenance on these repairs, become victims of predatory lenders and contractors, or just continue to live in substandard conditions that could potentially present a risk to their health and safety while also becoming a blight on the neighborhood. The City of Philadelphia has made great strides in recent years, developing in new programs and financial resources to help those in need. We commend the City for these efforts. We, however, implore you not 61 6/4/07 FINANCE - BILL 070387, RES. 070405 to forsake a program that has consistently been working for well over 30 years. The current Year 33 plan calls for PHNS to receive 150,000 in the convenient improvements and model block program delivery funds. This number represents a reduction of (indiscernible) be reconsidered and that 50,000 of the reduced funds be restored. In Fiscal Year 2008, Philadelphia Neighborhood Housing Services will deliver community improvements and model block program services in the Cobbs Creek, Morris Park, and East Parkside neighborhoods of West Philadelphia. PHNS has demonstrated the capacity to deliver these services. Under our current contract, PHNS has committed all but $3700 of the 215,000 that was made available to us. Over $126,000 in improvements have already 62 6/4/07 FINANCE - BILL 070387, RES. 070405 been completed. Another 149 in improvements are under contract. This work has leveraged $75,000 in homeowner reinvestment. This program is working now and will continue to work for years as long as their funding is continued. I want to thank you for your time and attention, and I'll answer any questions.

Thank you very much. A very important program. Councilwoman Reynolds-Brown.

Thank you. Good afternoon.

Good afternoon.

Where's Morris Park?

It's in the area from Market Street north to about Landsdowne Avenue and above 63rd.

63 6/4/07 FINANCE - BILL 070387, RES. 070405 Over the past 30 years, have the boundaries changed at all?

Excuse me?

Have the boundaries of your program changed at all?

Yes. Our program originally started in the Frankford neighborhood. We've also operated in Fern Rock Ogontz Bellfield, Allegheny West, and other neighborhoods, Carol Park and Overbrook in West Philadelphia. Our model block program has serviced other neighborhoods. It originally was funded by the William Penn Foundation. There we worked with other community groups such as (indiscernible), WCRP, Francisville CDC, Allegheny West, and several other organizations, Fern Rock Ogontz Bellfield Community Development Corporation, PEC. So we've worked with a number 64 6/4/07 FINANCE - BILL 070387, RES. 070405 of other organizations in delivering our programs and services to the specific targeted blocks.

And so how do these organizations that you just mentioned ultimately end up in the mix of beneficiaries of your program?

They target blocks for the program services, they facilitate our relationships with the residents in the community, and our program, we deliver the actual services to the representatives there.

And approximately how many would you say families are served or blocks are served? What's the records of performance over the last couple of years?

In the last few years, we probably have varied somewhere in the neighborhood of about 75 to 100 families being served each 65 6/4/07 FINANCE - BILL 070387, RES. 070405 year. In terms of blocks, you might be looking at about a dozen blocks. Although we don't restrict some of our services to specific blocks, we will service people who have needs for roof repair and heating systems anywhere in the targeted area.

And so with this proposed reduction, what would be the impact?

The impact for us would that be many of the people who've already applied for services under our program will not be served; we won't have enough resources to serve them.

Which is, in many ways, typical that the need is always greater and stronger than the available resources.

That's true.

So are these new families, or is it a 66 6/4/07 FINANCE - BILL 070387, RES. 070405 practice to have repeat service to families?

We generally try to move on. We encourage families that participate in our program to take full advantage of all of the services that are needed that are available to them in a one-shot deal. Frequently, because of their contribution requirements, they're not able to do that. So people will, you know, have some work done one year and then attempt to come back in another year to have other work done. We discourage it. We encourage them to take out a loan if they need to to leverage all of the investment that's, you know, available to them at one shot. It doesn't always happen. Some of them are repeaters. Many of them are new home openers. We'll just be targeting the East Parkside area. That will be the first 67 6/4/07 FINANCE - BILL 070387, RES. 070405 year for the residents of three blocks in East Parkside.

Any partnering with -- I believe it's East Parkside CDC?

East Parkside Community Revitalization Corporation?

Yes.

Yes. We'll be working on three blocks in their area -- the 4200 block of Stiles, the 4200 block of Viola, and the 3800 block of popular.

Thank you for your testimony.

Thank you.

Thank you, Madam Chair.

You're welcome. Councilman Greenlee?

Thank you, Madam Chair. 68 6/4/07 FINANCE - BILL 070387, RES. 070405 As a follow-up to Councilwoman Reynolds-Brown's question, with this proposed $65,000 cut, have you determined, if that indeed happens, how you're going to decide which -- how you deal with that less money? In other words, what criteria you're going to use? Are you just going to cut down on the number? is the criteria going to be different? That kind of thing.

What we do, we have targeted blocks that we've made commitments to and also targeted neighborhoods. We serve people on a first-come-first-served basis. So these people who come in with their share of the project costs that are ready to execute their contracts, they're the ones who get served most immediately. On occasions where people have made service requests that we have not been able to address in the current contract year, we will extend our 69 6/4/07 FINANCE - BILL 070387, RES. 070405 services to that block for an additional year or more.

So the ones you've already had contact some with, you'll try to deal with first.

Yes.

Okay. Thank you. Thank you, Madam Chair.

Thank you very much. Are there any further questions? (No further questions.)

Thank you, Mr. Hawkins. Good program. We just need more of you.

Thank you.

Mr. John Rowe, Executive Director Utility Emergencies Services Fund. (Witness comes forward.)

Good afternoon. 70 6/4/07 FINANCE - BILL 070387, RES. 070405

Good afternoon, Madam Chairwoman. Thank you for the opportunity to speak today.

Certainly.

On behalf of our board, our staff, and the families that we serve and myself, I extend our appreciation to the Philadelphia City Council and the Office of Housing and Community Development for the support provided to UESF. Year 33 will be the 25th year that City Council and OHCD have continued to recognize the direct link between the energy and housing needs of low-income families. The support provided to you UESF through the Community Development Block Grant has played a major role in our ability to take a preventive approach to the problems of housing abandonment and homeless necessary. UESF has had an outstanding 71 6/4/07 FINANCE - BILL 070387, RES. 070405 record of service to the Philadelphia community. We leverage every dollar received from contributions with a dollar-for-dollar match from our three participating utility companies. In addition, PECO Energy, PGW, and the Philadelphia Water Department pay UESF's administrative costs. Since 1983, UESF has assisted almost 130,000 families not only to settle their utility bills but to achieve a new start. 7 million of grants and utility credits. UESF is a year-round program. We are the last resort for many during the non-heating months of the year. UESF provides financial assistance to families to pay utility bills, but UESF is not merely an income supplement program; our goal is self-sufficiency and independence. We are about solving the problem, not just 72 6/4/07 FINANCE - BILL 070387, RES. 070405 managing the problem. UESF assists only those who are shut off or who are in imminent danger of being shutoff. Participation in the program requires that families completely settle utility bills, resulting in a zero balance. Our maximum grant is $500, which is made up of $250 in contributions and $250 in utility-matched bill credits. If the bill is higher, to make up the difference, participants must seek help from other programs and pay the remaining balance themselves. Last year, the almost 4,000 families paid remaining balances, totaling over $123,000. UESF works to strengthen the process by which families gain access to energy and energy-related self-sufficiency services. Our strategy is to leverage the many services already available at the 73 6/4/07 FINANCE - BILL 070387, RES. 070405 community-based level. Our intake sites are a part of the larger nonprofit community organizations that provide various energy services such as LIHEAP, Crisis, Intake for Weatherization, Water Conservation, Energy Counseling, Weatherization Workshops, and referrals to utility universal-service programs. In addition to energy services, our intake sites provide many other needed stabilization services such as: Tenant counseling; default delinquency counseling; homeowner emergency mortgage assistance programs; anti-predatory lending; food, clothing and furniture assistance; individual development accounts; and workforce development. Families do not come back year after year; they must wait two years to receive our services again. Over the last five years, 73 percent of the families we served have not returned 74 6/4/07 FINANCE - BILL 070387, RES. 070405 for additional assistance. If we factor out those who are not permitted to return yet for the past two years, over 10,000 families remain independent and self-sufficient from UESF services at least for five years. Every year since 1938, we have chosen to be audited by top-tier accounting firms. The audits have all been excellent, with no findings of material noncompliance, and we have never had any of our costs questioned. There has never been a negative finding in our 24-year history. We have all seen that the cost of utility service can go up drastically, almost without warning. We have all experienced firsthand the rising cost of utility service. We all know firsthand how difficult it can be to pay our own utility bills. According to a study performed by the Energy Coordinating Agency, from 75 6/4/07 FINANCE - BILL 070387, RES.

070405 1999 to 2006, the average low-income family's utility costs in Philadelphia rose by 71 percent -- from $2300 a year to over $4100 a year. The average family that we serve is made up of one female adult with between one and two children. Thirty percent of the families we serve derive income from employment. The average annual income of these families is $10,900. Families are struggling to exist financially and struggling to reach some level of self-sufficiency. Seven years ago, a low-income family paid 28 percent of its income for utilities; today, that same family pays 38 percent of its income. By way of a brief example: If a family is paying $340 a month for gas, oil, water, electric, $450 a month for rent or mortgage, what is left for everything else -- for clothing, transportation, food, telephone, child 76 6/4/07 FINANCE - BILL 070387, RES. 070405 care, taxes, Nyquil for a sick child -- is $27 per week for the family. That's about a dollar and a half per day for each family member. If utility and housing costs go up by percent, the arithmetic 8 would say that there would be nothing 9 left for anything else. Natural gas 10 prices have quadrupled, oil prices have 11 doubled, we are at war in the 12 oil-producing region of the Middle 13 East, electricity rates are directly 14 affected by the natural gas and oil 15 used to generate electricity. 16 Sub prime lending practices by 17 mortgage institutions have caused 18 housing payments to skyrocket and a 19 record number of foreclosures. 20 The problem is large. We see 21 no outlook for price relief. 22 Low-income families, moderate-income 23 families, middle-income families are 24 awe experiencing greater difficulty in 25 meeting utility and housing costs. 77 6/4/07 FINANCE - BILL 070387, RES. 070405 People suffer physically from the loss of utility service. More seniors die from the summer from the effects of heat and during the cold winter months. The very young and the very old are greatly affected by low temperatures. The Medical Legal Partnership for Children recently released its child health impact assessment, studying the longer-term effects of unmanageable utility costs. Number one. Since utility costs represent such a high percentage of a low-income family budget, families must choose to heat or eat; and even more appalling, to heat or adequately feed their children. The study clearly demonstrates that choosing to pay for energy costs over food has dire consequences for children: malnutrition, leading to increased illness; poor growth; cognitive and developmental deficits, leading poor school attendance and poor 78 6/4/07 FINANCE - BILL 070387, RES. 070405 performance. Number two. When alternative heating sources are used such as space heaters and stove burners, children are especially susceptible to contact burns, the long-term effects of carbon monoxide poisoning, and, of course, fires. And, lastly, as utility costs consume more of a family's budget, families are more likely to live in substandard housing. The children, again, are greatly affected by this. Substandard housing along with the associated rodent infestation, mold, water leaks, lead poisoning produce the long-term effects of increased asthma, increased risk of diarrhea, cognitive and developmental deficits and respiratory conditions. Overall, the child health impact assessment stated that the effects of not managing high utility costs caused in children mental and 79 6/4/07 FINANCE - BILL 070387, RES. 070405 physical problems, depression, anxiety, and behavioral disorders. UESF has experienced a decline in utility-customer contributions. They've represented about 50 percent of our budget, our budget about seven years ago, but it has decreased to about percent now. We have made up 10 about 50 percent of the losses in customer contributions by intensifying our fundraising efforts. With the increase in utility costs and the decrease in funding, the need for our services is increasingly vital.

Our income limit is 175 percent of the poverty level. At that level, about 220,000 Philadelphia families could qualify for our services. We could serve those families if we had the resources. And if not, utility shutoffs will increase, homelessness will increase -- homelessness is directly related to utility terminations, 80 6/4/07 FINANCE - BILL 070387, RES. 070405 neighborhoods will deteriorate with increasing housing abandonment. A recent study showed that in Philadelphia, after termination of electric service, 32 percent were abandoned within one year, percent 8 after termination of gas service. 9 UESF currently receives 10 $525,000 in OHCD funds. UESF has been 11 funded at this constant level since 12 1993. When this amount is matched with 13 utility-bill credits, we are able to 14 assist 2,400 Philadelphia families. 5 million 19 in utility bill credits to use as a 20 match for the funds which we raise from 21 many different sources, including OHCD 22 funds. 5 million due to a lack of 81 6/4/07 FINANCE - BILL 070387, RES. 070405 funding. UESF is requesting that OHCD increase its funding to UESF so that we can maximize the available matched so that we can serve those who are in need. For every $1,000 increase, UESF can help four families get a fresh start. We respectfully request an increase of $300,000. With that increase, we would be able to leverage an additional $300,000, and we would be able to assist an additional 1,400 families, a great many of whom may never come back for service because they will no longer need UESF. I thank you for the opportunity to submit this testimony.

Thank you very much. Are there any questions?

Yes, ma'am.

Councilwoman Reynolds-Brown? 82 6/4/07 FINANCE - BILL 070387, RES. 070405

Good afternoon.

Good afternoon.

Let me first thank you for very your compelling testimony.

Thank you.

Has your funding remained constant since the inception, which, you say, was 1993?

Well, we've seen a drastic reduction in the contributions from the utility customers. There's a little chart on where back in 1997, for example, the amount of -- at the bottom of the page, the amount of contributions that we received from utility customers was in the neighborhood of $325,000 a year. As you see the downward slope of that, this year, it's in the neighborhood of around $70,000, less than a quarter of what it used to be. 83 6/4/07 FINANCE - BILL 070387, RES. 070405 There's been a dramatic decrease from contributions by the common utility customer. I'm sure there's a lot of reasons for it. There's a lot of other national emergencies that have happened where we have lost contributors and they've never come back. And also, customers are experiencing their own problems with utility bills.

Mm-hmm.

That's what I think What I know is, it has decreased, though, like that.

You mentioned on of your testimony a number of the partnerships you enjoy with others who are trying to make a difference for these families. On , you talk about the senior citizen community. What is the nature of the relationship with PCA, Philadelphia Corporation for Aging. 84 6/4/07 FINANCE - BILL 070387, RES. 070405

We have a real strong proprietorship with PCA. I'm a member of their group that comes up with the programs for the elderly. A representative of PCA is on our board also.

So, are they one of the entities that assist with this leveraging you talked about earlier in your testimony?

In terms of the social services? We go more for the community-based organizations. I believe on the copy of the testimony that you have, on the back of it is a map.

Yes, I see it.

And what we do is, these organizations have been serving UESF for the past at least three years. I'm new as the executive director; I've been around for about two-and-a-half months. 85 6/4/07 FINANCE - BILL 070387, RES. 070405 And we try to -- we put one group in as an emergency basis out in the Strawberry Mansion area because we weren't covered geographically. We're not covered in the Germantown area, and we lost a site there. We will have an RFP that will go out to make sure that we adequately cover the entire city. We tend to go for the community-based organizations that have roots in the community. PCA is not one of those, but some of the intakes sites for PCA are shared by us; I don't know which ones, but they are.

Okay. Do you seek any foundation support at all?

We have had support from two foundations in the past two years -- the Philadelphia Foundation and the William Penn Foundation. We've put together an active fundraising plan where we will go after more foundation support and we'll go 86 6/4/07 FINANCE - BILL 070387, RES. 070405 after some of the corporate community. We have a database of individual donors who did contribute at the $70,000 level, and we will solicit them also. We have an active plan to go after anything we can really.

Okay. You give a lot of discussion to what happens with children when their needs are not met. What are the linkages with CHIP, the Children's Health Insurance Program?

We don't have a relationship with CHIP.

Okay. I mention that because I think that when you list and consider the issues raised here around children, it could play an important role in filling that gap.

Part of what I intend to do is to partner with a variety of organizations that have common needs that we have, and what we 87 6/4/07 FINANCE - BILL 070387, RES. 070405 would do is that we would do joint proposals perhaps. This is an idea that we're entertaining now. So that the need of that organization and the need for UESF could be fulfilled at the same time. We have not considered CHIP. It's something that we would do, though. It's just -- my plate has been full for the last ten weeks or so.

Sure, sure.

But there have been other health organizations that we've talked with, and perhaps an idea would be to dedicate some of the services to their customers and, at the same time, make that kind of proposal attractive to a funder for whatever services are offered by the health organization.

Sure. And then, finally, you mentioned on of your testimony that -- at least you allude to the fact that every 88 6/4/07 FINANCE - BILL 070387, RES. 070405 dollar raised is matched.

Yes.

Every dollar raised is matched?

Every dollar raised is matched. There's an agreement with the utility company. What typically happens is that a customer will come into the Friends Neighborhood Guild as one of our intake sites. And if the bill is perhaps $600, we would solve that by paying $250 from our own contributions, including the OHCD amounts of $525,000. The other $250 would come from a utility credit in terms of forgiving the bill. And the maximum that we can do is $500. And then the other $100 would have to come from some other source. We'll do more than that, though, because we're trying to get away from just being a financial assistance program. We'll make a 89 6/4/07 FINANCE - BILL 070387, RES. 070405 referral for the same customer perhaps to a utility -- a universal services program because if we merely give the financial assistance without look looking at what the cause is, that family will go back and still have that bill of $175 a month, and that's the exact situation that brought them to this crisis mode. If they went on a universal services program, if it's possible, then perhaps their bill could go down and get down to maybe $25, $30 a month, say, if it's a PECO bill, and their arrearage could be sort of frozen for a while and perhaps forgiven. And then we would still have that same UESF grant for someone else, so we're cautious about that.

Well, thank you very much your testimony.

Thank you very much. 90 6/4/07 FINANCE - BILL 070387, RES. 070405

Thank you very much. Are there any further questions? (No further questions.)

Mr. John Gallery, Preservation Alliance. (Witness comes forward.)

Good afternoon.

Good afternoon if the committee would indulge me in a moment of nostalgia. The last time I testified on the Community Development Block Grant was Year 5. (Laughter.)

The hearings went three to four hours. And, in fact, there were substantial reasons for that. One was a member of City Council who usually sat to the Chair's right, Councilman Lucien Blackwell, who 91 6/4/07 FINANCE - BILL 070387, RES. 070405 was one of my most vigorous critics, and I usually had seated about two rows back in the audience a very young housing activist attorney from North Philadelphia named John Street. It's wonderful to see that the block grant has continued and continued to serve the important purposes of helping lower-income people. I'm here today just to make a few comments about a portion of the program that is funded from the NTI parts of this budget and, that is the Historic Property Repair Program. This program was begun in Fiscal Year 2006 with an appropriation from NTI and with the support of City Council. And the objective of the program is to assist low- and moderate-income homeowners who live in historically designated properties or in historic districts to be able to make repairs to their properties that meet the standards that they are 92 6/4/07 FINANCE - BILL 070387, RES. 070405 required to meet as an owner of an historic property. Preservation Alliance administers this program for OHCD and NTI. Of the original million-dollar grant, we have expended or have commitments to work in progress of $700,000. We have been able to leverage that with contributions from the individual property owners, which represent about percent of the 13 grants. And in addition to that, we 14 received a $100,000 grant from the 15 National Trust for Historic 16 Preservation to also support the 17 program. 18 The program has been very well 19 received. We have more applicants than 20 the funds that are currently available. 21 The work has occurred in properties 22 throughout the City, and we believe 23 that the continuation of the program 24 fills a very important and very special 25 need of low- and moderate-income 93 6/4/07 FINANCE - BILL 070387, RES. 070405 homeowners who do live in historic properties. We also believe that the additional funding proposed in the NTI budget may also lead us to obtain an initial grant from the National Trust to help support a continuation of the program. So I'm very supportive and very appreciative of the OHCD and NTI commitment to this program and also to City Council for appropriating the funds, and I hope you will approve the budget and allow this program to continue. Thank you very much.

Thank you, Mr. Gallery. Maybe I've been too easy on you since Lou was a critic; do you think? (Laughter.)

Any questions from members of the 94 6/4/07 FINANCE - BILL 070387, RES. 070405 committee? (No questions.)

Thank you very much. Bob Grossman, Associate Director, Philadelphia Green. Mike Groman, Senior Director, Philadelphia Green. (Witness comes forward.)

Good afternoon, thank you.

Good afternoon, everyone. Mike Groman here. Bob Grossman, unfortunately, couldn't make it today, so I'll speak for everybody at the Pennsylvania Horticultural Society. Thank you, Councilwoman --

Thank you.

-- for having us here and the opportunity and all the members of the committee. You should have copies of my 95 6/4/07 FINANCE - BILL 070387, RES. 070405 testimony. I passed it out to John, so I think he's doing that now. And what I'll do is, I'll try to truncate my testimony and keep it as short and impactful as possible here and efficient. The Pennsylvania Horticultural Society, through its Philadelphia Green Program, promotes greening as a vital part of the City of Philadelphia's ongoing revitalization. And over the past three decades, with significant investment from the Office of Housing, through community block grants, and, more recently, throughout the Mayor's Neighborhood Transformation Initiative, Philadelphia Green has demonstrated that greening not only improves the quality of life in the City's neighborhoods but also strengthens community bonds and attracts investment and also creates community wealth. We very much appreciate the support and have put these resources to 96 6/4/07 FINANCE - BILL 070387, RES. 070405 good use. And, more importantly, we've been able to leverage City dollars into significant support from foundations, businesses, and other entities in the private sector. All of our public funding for the Philadelphia Green programs is about 40 percent so about 60 percent of our finding is from private sources, which we think is fairly significant. So let me move on and talk a little about how the resources that we hope to receive this year through Fiscal Year '08 will be spent. And one of the things that we were looking to pursue is this thing called "a green city strategy," and basically what that is, it's a major and significant investment in the City's green infrastructure. So just as you have streets, roads, buildings, utilities as infrastructure, we talk about parks, trees, and open space as part of the green infrastructure of the 97 6/4/07 FINANCE - BILL 070387, RES. 070405 City of Philadelphia, which means ongoing investment, ongoing care in order to create quality of life in the City's neighborhoods. So this is really a seven-point programs, and let me go through the seven points, and these are the areas that are going to take the major investment. Number one is managing vacant land as a community asset. And this is where most of the dollars for NTI will be focused. So since Fiscal Year 2004, over 5,000 vacant and blighted parcels of land have been cleaned and greened with grass, trees fencing; and others are being maintained on a regular basis. We have this thing called "Community Land Care Project" that actually hires community organizations to go out and continue to maintain the sites that were cleaned and greened by the City of Philadelphia to keep the 98 6/4/07 FINANCE - BILL 070387, RES. 070405 weeds down, to remove the trash, so there's an additional 2500 lots there that have been taken care of in that way. This project not only engages community organizations in this process but also has the added benefit of hiring 80 Philadelphia residents to partake in this, so we think it's a good sort of employment program for the neighborhood of the City of Philadelphia. So in this coming year, Fiscal Year 2008, Philadelphia Green plans to maintain the existing 5,000 stabilized vacant parcels and clean and green an additional 600 parcels out there in the neighborhoods and select another community organization to participate in our Community Land Care Program. Number 2 is, part of the program is to support the development of community-managed green spaces. Philadelphia is known for its community 99 6/4/07 FINANCE - BILL 070387, RES. 070405 gardens. Philadelphia Green is producing community gardens throughout the City for the past 30 or so years. They've become very important spaces in the City of Philadelphia. They're very important to the people that live there. They also help to promote security and safety in the neighborhoods.

And when you talk about private investment, we've been to secure a large grant for the Albert M. Greenfield Foundation to produce this program called "City Harvest," and City Harvest is a partnership between the Philadelphia prison system, about 18 community gardeners out there, and the 19 Pennsylvania Horticultural Society and 20 an organization called "Share," which 21 is a food distribution system, to grow 22 out fresh produce and distribute it to 23 those who are need in our city's 24 neighborhoods. 25 So this year, we've actually 100 6/4/07 FINANCE - BILL 070387, RES. 070405 grown 7500 pounds of produce, which has been distributed, and our goal for next year is 9,000 pounds of produce, so we're very excited about that program. Number 3 is to promote and invest in what we called "a localized approach" to storm-water management. And as you're probably familiar, in the City of Philadelphia, we do have a combined sewer system which frequently overflows and sends untreated waste into our rivers and streams. So we've been working closely with the Philadelphia Water Department to test out an experiment on vacant lots and the neighborhood parks to actually create them as sponges for storm water to eliminate some of the localized flooding problems and help that storm water infiltrate back into the ground, where it needs to be. So we're going to expand that program, we're going to have some additional funding from the 101 6/4/07 FINANCE - BILL 070387, RES. 070405 Philadelphia Water Department, and, hopefully, we're going to come up with some great, creative ways to manage the storm water in the City of Philadelphia. Number 4 is to revitalize our neighborhood parks, and research is out there that shows, you know, great parks mean great neighborhoods. If you have a bad park, it means a very bad neighborhood. So we're going to continue with what we call our Philadelphia Green Park Revitalization Program. It's been around about 14 years. We are working now in close partnership with the Department of Recreation and the Fairmount Park Commission to target 80 neighborhood parks throughout the City. It's a great program, it's very popular, and we're going to continue to do improvements of parks, host community events around parks, and work to do some training and build the 102 6/4/07 FINANCE - BILL 070387, RES. 070405 capacity of the parks' volunteers so that they can be good stewards of their neighborhood parks. Number 5 is to support the development and management of the City's urban forest. Trees are very important to the urban environment not only environmentally but socially. And so we are now -- and one of the things to note is also we've just recently completed a study that says that planting street trees in the City of Philadelphia actually increases the values of the homes on that block by about 10 percent. So that's pretty significant. So we are now a major nonprofit partner with the State's Treevitalize Program, and we're working in partnership with the Fairmount Park Commission, and we've planted over 2,000 trees in 19 neighborhoods throughout the City of Philadelphia since 2004, which is pretty 103 6/4/07 FINANCE - BILL 070387, RES. 070405 significant. And in the coming year, what we intend to do is, we will work with NTI and use this funding to plant an additional 600 trees on vacant lots, plant 200 street trees in commercial corridors throughout the City, and provide maintains to 300 maintenance mature trees scattered throughout the City. Number 6 is to invest in our civic landscapes, and you may have seen recently since last fall the major transformation of the landscape of the swan fountain at Logan Square, and we did that in partnership with the Fairmount Park Commission, with funding from Pew Charitable Trusts. It's a great spot and it gets a lot of great people out there now.

So we're saying that we will continue to raise private dollars to improve and manage these landscapes throughout the City such as the Art Museum, the Azalea Garden, Penn's 104 6/4/07 FINANCE - BILL 070387, RES. 070405 Landing, the cover parks over I-95 and Society Hill, and many other high- profile spaces that really identify Philadelphia as a world-class city. And, finally, number is to 7 help to implement Green Plan Philadelphia. And Philadelphia Green has partnered with the Neighborhood Transformation Initiative, the Managing Director's Office, and the City Planning Commission to support the creation of Green Plan Philadelphia, which is, as far as we know, is first -- the City's first comprehensive open space program. Philadelphia Green has managed a community-engagement process which involved all twelve planning areas throughout the City of Philadelphia. We had over 350 residents come out to talk to us about what their hopes, dreams, desires, and issues were about open space in the City of Philadelphia. And over the next year, we 105 6/4/07 FINANCE - BILL 070387, RES. 070405 will host additional community engagement sessions to share the preliminary plans that are coming out and also to get additional feedback before Green Plan is finalized by the end of the year. So that sort of winds up my testimony. But, again, I want to say that the Pennsylvania Horticultural Society is very grateful for the long-term support provided for its Philadelphia Green Program through OHCD and NTI. We look forward to continuing our work in the neighborhoods, using greening as a community development tool, and we also look forward to do expanding our impact and building on the landmark investment that's been made to date through the Neighborhood Transformation Initiative in open space revitalization. We hope this green city strategy holds tremendous promise for 106 6/4/07 FINANCE - BILL 070387, RES. 070405 Philadelphia's continuing revitalization. So thank you very much for your support. )

Thank you very much. Are there any questions? Councilwoman Reynolds-Brown?

Thank you. Good afternoon.

Hello.

I want to compliment you on the number of partners you've engaged in all the work that you do. Speak more about what you're doing with the Philadelphia prison system.

This has been an interesting partnership and one that we would have never envisioned until we received from this Albert M. Greenfield. We're working with the prison 107 6/4/07 FINANCE - BILL 070387, RES. 070405 up on State Road. And they have -- originally had a greenhouse that was funded many, many years ago to produce some similar type program where they would grow plants out to distribute to the community. And, unfortunately, because of lack of funding from the prison system, the greenhouse fell into disrepair and was no longer functional. So we sought them out, we knew that there was a problem up there. We also saw this other organization called "Share," which runs a number of food cupboards throughout the City.

Very familiar.

And we started to put two and two together and said, what if we just took some of this money and revitalized the greenhouse up there, worked with the prisoners who are there to grow out additional plants, which are then transferred to community gardens in this city, the community 108 6/4/07 FINANCE - BILL 070387, RES. 070405 gardens grow out the extra produce, and then it's given to share, and they distribute it to the food cupboards. It's not only been a great way to revitalize that greenhouse, but it's been a great way to revitalize people and spirits up there who are in the prison system. And they love it, they love the project. And we, fortunately, have received another year of funding to support the program, and we're going to hopefully continue with it throughout this next year.

So take a leap. What are the criteria for the Philadelphia Flower Show participants?

For the flower show participants or for the program participants?

Those who ultimately exhibit at the flower show? 109 6/4/07 FINANCE - BILL 070387, RES. 070405

Oh, oh, oh, I see. Are you trying to make the connection between the prison and the flower show?

I am, I am.

Well, we tried to make that connection this year and we thought it would be a great idea to get the prisoners connected to the flower show just to help them see what greening is all about. And we actually organized something and had a bus tour come with the prisoners. And, unfortunately, when we got there, we ran into some problems with security from the Convention Center. Long story short: We were able to make a number of negotiations, we were able to make sure that we could take the chains off of the prisoners; we didn't require that, which was unfortunate that they were even 110 6/4/07 FINANCE - BILL 070387, RES. 070405 required to have chains. And we had a professional guided tour for them to go through early in the morning to actually get inspired and see what the flower show is all about.

Mm-hmm.

So we're hoping that some day, you know, particularly when some of the prisoners are released or maybe there's a program that can be hatched out of the prison system that they may be able to exhibit in the flower show, and I think that that would be a great idea.

That's where I'm headed, yes, because the mix of those who exhibit at the flower show is rich and is very diverse.

Absolutely.

And it really should include people 111 6/4/07 FINANCE - BILL 070387, RES. 070405 from all walks of life.

Absolutely.

Okay. Thank you for your testimony.

Sure. Thank you.

Thank you very much.

Thank you.

If there are no more questions, the next witness is Will Gonzales, Executive Director of CEIBA. (Witness comes forward.)

Thank you. Feel free to identify yourself for the record and begin your testimony.

My name is Will Gonzales, and I am the Executive Director of CEIBA, a coalition of Latino community-based organizations in Philadelphia. We thank you very much for providing us with the opportunity to testify today. 112 6/4/07 FINANCE - BILL 070387, RES. 070405 The members of CEIBA are the (indiscernible) Federal Credit Union, Centro (indiscernible), (indiscernible) de Philadelphia, the Norris Square Civic Association, and Nueva Esperanza. We testify here regarding the Office of Housing and Community Development's Year 33 Consolidated Plan. We are happy to see in the plan that OHCD will continue to work on housing development projects in the Latino community with organizations like (indiscernible), APM, the Norris Square Civic Association, and Nueva Esperanza. We have a limited amount of time today, so we want to focus on remarks to a number of areas where we would like to see further improvements in the plan. They relate mostly to homeownership. We are glad that the housing market in Philadelphia is flourishing today in comparison to what the market 113 6/4/07 FINANCE - BILL 070387, RES. 070405 was like at the turn of the 20th century. That blessing, however, has created some challenges in the area of housing affordability and the preservation of homeownership for working families. We are glad to see a modest increase in funding for neighborhood and citywide housing counseling, but we are disappointed in seeing a $300,000 cut in settlement grants. As the prices of homes go up, the importance of settlement grants increases. We understand that the settlement grant assistance provided under the program is modest, $800, but it is a very good bait to get buyers to come in for housing counseling. The size of the OHCD settlement grant has not been increased for over ten years. Instead, the grant amount was reduced from what it was at one time, $1,000. Over the last ten years, however, housing values in the 114 6/4/07 FINANCE - BILL 070387, RES. 070405 City have quickly outpaced what many of our residents can afford. 8 percent over the same period. We respectfully request a restoration of the $300,000 to the Settlement Grant Program of OHCD. 8 percent of Latino households are owner -occupied in the City. The increase in home prices and the threats from a foreclosure crisis are a big threat to our community. But we have one more thing to worry about in order to protect some of the gains that we have already made in terms of homeownership: We need effective and responsive basic system repair and weatherization programs. The plan's proposed elimination of $619,000 in weatherization and basic 115 6/4/07 FINANCE - BILL 070387, RES. 070405 system repair program tier II is not good. Philadelphia has an old housing stock. For example, one third of Latinos live in homes built prior to 1940, and over 60 percent of them live in homes built in 1959 or earlier. While we welcome the increase in money allocated to the Weatherization Assistance Program, we feel that these are Band-Aid repairs compared to the ones offered through the BSRP Tier II Program. Some of our older homes need a lot more than caulk on the windows; they need total systems replaced and repaired. Our homes are deteriorating, and because of that, residents in the City are paying more for health care and home energy. The inability of poor families to meet the demands of repairs for their older homes is fueling a tide of gentrification. We would like to see money for the Weatherization and 116 6/4/07 FINANCE - BILL 070387, RES. 070405 Basic System Program Tier II restored and the efficiency of all home repair programs improved. You know well about the problems of the long wait that clients face to go through the program and the problems that the limits on the size of grants pose for clients whose old homes need sizable repairs. One problem that also needs attention is the need to fix and ensure that language is not a barrier for people who do not speak English.

Spanish-speaking families in the City have difficulty accessing and getting grants under the home repair programs. 7 percent of BSRP funding was spent in the American Street Empowerment Zone last year. We believe that language barriers to that inequity, and we respectfully ask that OHCD ensure that non-English-speaking people have full access to all of its programs. 117 6/4/07 FINANCE - BILL 070387, RES. 070405 We have heard anecdotal evidence from applicants to the programs that when inspectors from the program come to their homes to assess their property's needs -- not only inspectors, but also contractors, when they come to their home, there are problems communicating, and important matters are lost in translation. A report entitled "Pursuing Equitable Community Development in the American Street Empowerment Zone," prepared by (indiscernible), in collaboration with the Reinvestment Fund, offers a good insight into the shortcomings of the various housing preservation programs in the City and offer solutions to address them. We refer to you that report. Latinos have been priced out of Spring Garden, they have priced out of Northern Liberties, and they are on the path to being priced out of a number of other surrounding 118 6/4/07 FINANCE - BILL 070387, RES. 070405 neighborhoods in Philadelphia. While gentrification has the potential to bring some benefits to the City and its neighborhoods, there needs to be institutional mechanisms in place to ensure that the residents who endured sacrifices to protect their communities that are being gentrified are not punished or pushed out for their good work. There's a lot more that we can talk about relating to the plan, but in the interest of time, we will cut our remarks short and attempt to follow up later if we see a need to. Thank you for attention. We hope that we can work together to address these concerns. Gracias.

Thank you very much. Councilman Greenlee?

Thank you, Madam Chair. 119 6/4/07 FINANCE - BILL 070387, RES. 070405 Mr. Gonzales, when you talk about the language problems, you know, particularly with the home repairs and all, have you had discussions with OHCD people about that? and if so, any kind of response?

Well, preliminary discussions but nothing that we've gone deeply in. We've testified on this on previous plans. We have done some work around Title 6. As you know, there is a requirement that every entity that receives federal funding must ensure equal access based on language. We've devoted more of the time in dealing with other departments in the City. We're looking forward to working this year with OHCD on that.

Any kind of -- rough kind of numbers of how many people you feel have somehow gotten lost because of the language problem? particularly focusing in on the home 120 6/4/07 FINANCE - BILL 070387, RES. 070405 repair thing, which is obviously very key, you know, to be able to stay in your home.

Well, I referred you to that report by Mr. Wilson. He tried to take a chunk of the City, a relatively small chunk, which was the American Street Empowerment Zone area, and tried to study that deeply. He did have some difficulty in terms of getting that full picture of the number of people. We hope that we can work with OHCD in the coming year to get that type of information that he needs not only for that area but for larger areas. No, we don't have large set numbers. We're basically dealing with anecdotal evidence with clients that come to our office.

Mm-hmm. All right, okay. Thank you. Thank you, Madam Chair. 121 6/4/07 FINANCE - BILL 070387, RES. 070405