Oh, we have the13 objectives and goals for minority14 participation and workforce including --15
No, I'm16 saying for the actual services delivered.17 If we have, as you're saying, a whole18 host of nonprofits to do some of the work19 that PCDC does throughout City, right,20 commercial corridor work?21
Yes, yes. In our --25 168 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
As it8 relates to them, the biggest complaint I9 get around commercial corridors and10 Commerce Department contracting is11 exactly that. The fiscal year starts12 July 1st, people don't get contracts13 until January. Can you tell me where are14 you as it relates to our ability to15 contract? What's the turnaround time for16 our contracts?17
Good afternoon,18 Council. I'm Sade Olanipekun-Lewis.19 You are right. We have been20 having challenges. The contract21 processing comes under my unit. And22 through the rebalancing, we've lost two23 contracting staff. We're hoping to bring24 on another two through the25 169 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 reorganization.2 We manage about 109 contracts,3 and there have been challenges, we agree,4 in terms of processing them.5 We're working through a --6 we're going through an exercise where we7 determine how to better process these8 contracts so that the providers don't get9 their contacts middle of fiscal year or10 the latter part; we believe that's11 unacceptable.12 And so, we hope to have a plan13 together for the fiscal year based on our14 contracting.15
So what16 is your date? Is it 90 days out? What17 can I expect this year?18
We're still looking19 at -- all of our contracts have different20 demands. And so, we're trying to21 determine those contracts that are easily22 able to roll out --23 (Timer bell rings.)24
-- which may happen25 170 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 in as little as 30 days and those that2 may need a little more support in terms3 of completing the contracting process.4 And when I say "support," some5 of the providers may need some technical6 assistance in beginning to provide the7 services, so we may deploy staff to try8 to work on that deficiency in the9 contract.10 So it depends on the provided.11 And so, we're working through that12 process.13
What we're looking14 to do and what Sade's doing is to set15 clear targets for each of the different16 contracts. And right now, that, as you17 say -- you're right, that doesn't exist,18 and it's confusing and difficult for19 groups, and -- and we want to fix that.20
Okay.21 What's the goal, though? I mean, it's --22 is it 90 days? Am I calling you November23 1st because my contractors don't have24 contracts, or am I calling you December25 171 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 1st? What is our goal? What is our2 aspirational goal?3 Because it's not good business.4 I mean, we're the Commerce Department.5
If we7 don't have good business practices, how8 do we expect nonprofits for cash flow to9 manage what we're asking them to do? So10 that has to be seen as urgent.11
And 90 days is not12 an unreasonable amount, again, being the13 average, depending on the provider.14
Well, a15 lot of these are re-ups. These are16 people that contract with us every year?17 Why is someone who we contract for 2018 years having to wait 120 days, 180 days19 if it's the same contract?20
We have a very21 painful contracting process,22 Councilwoman. And we're looking to23 see if we can --24
I can't25 172 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 hear you.2
We have a very3 painful contracting process, a long4 contracting process that we're looking to5 streamline.6 In fact, we're working through7 the Mayor's Private-Sector Task Force,8 we're working with Temple University. We9 have a graduate team, a team with10 graduate students, who are looking to see11 how we can better perfect our contracting12 process. And that is underway right now.13 So when that analysis is14 complete, we should hopefully have in15 place some recommendations that can16 streamline our contracting process.17
Thank18 you, Madam President. Or can I keep19 asking questions?20
Point of21 information. And don't take me off the22 list.23 (Laughter.)24 COUNCIL PRESIDENT VERNA:25 173 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 Councilwoman Tasco.2
Have -- in3 streamlining the process, have you -- are4 you having conversations with the5 organizations to see what -- how they see6 the impediment? Are you talking to them?7
Not -- right now,8 we're looking internally, Councilwoman,9 at our processes, which we believe is the10 first step. I think once we've done11 that, we're going to look globally at the12 providers. Again, our providers have13 different capacity, so we will look at14 them to see where we can better expedite15 their processes.16
In fairness, we do17 hear from them regularly. I mean, I --18 so we have spoken with them, because19 they -- the ones who run into problems20 talk to us and say, Here's how I think21 you can do it better. Different22 organizations have made a number of23 suggestions.24 We're pulling all of that25 174 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 together to try to get to this 90-day2 goal, if we can, for the majority of3 contracts. And we've heard from many of4 them.5 So I think we have some pretty6 good outreach to the groups.7
I'm13 going to recognize Councilman Jones, and14 after he questions the witnesses, we're15 going to recess until 1:45. So I'd like16 everybody in the audience to know that.17 Councilman Jones.18
Thank you,19 Madam President.20 And now it's "good afternoon."21 We've been here that long.22 Two things. One, there's the23 Office of Economic Opportunity, and then24 there's the Economic Opportunity Cabinet,25 175 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 and I need to kind of delineate what the2 responsibilities of one are and whether3 they're working together to create this4 opportunity.5 I give that question in context6 to the American Recovery Investment Act,7 and I notice that you're scheduled -- or8 at least applying in part for funds under9 the Economic Development Assistance, the10 Broadband Expansion, Weatherization, High11 Grow Industry Green Jobs, and Brown12 Fields Cleanup, and Training. Those are13 all categories by which the Commerce14 Department may be eligible for some of15 those Stimulus dollars.16 My question is in the context17 of how we evaluate what levels of18 minority participation should be involved19 in these kinds of opportunities and how20 we are going to, going forward, kind of21 implement that and making sure that, you22 know, there's some equity by way of23 distribution of these dollars.24
Yeah. I think the25 176 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 answer, Councilman, is: Most of these2 are under federal guidelines, and they3 set specific goals, I think.4 So our role with respect to the5 recovery dollars is more connecting firms6 to those opportunities as most of those7 mandates -- you know, most of the8 requirements and goals are set by the9 federal government.10 But I think what we're trying11 to do is set up a pipeline of different12 opportunities for service providers and13 others to take advantage of those as they14 come in.15
What you16 hear from various Councilmembers is that,17 you know, as we start to look at these18 opportunities, historically as a body,19 whether it was cable in the last century,20 whether it is the hope of gambling21 revenues now, whether it is the Stimulus22 Package, what we need to have is better23 kind of coordination and then24 matriculation to opportunities for25 177 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 minority firms.2
And at the4 end of the day, when we start counting5 these things up, what we want to say is6 what I asked for in the beginning: A7 quantitative measurement that says we're8 going to be better next year than we were9 this year, better the year following10 that, and being able to quantify that in11 ways of opportunities.12 For example, in weatherization,13 there's going to be two types of14 opportunities: Those that come from15 departments within the City of16 Philadelphia and then those that come17 from subcontracting opportunities.18 I'll give you an example. If,19 in fact, the Water Department or the Gas20 Works does a certain amount of piping21 that it does in-house, through its own22 crews, then there is a opportunity to23 hire people through that Stimulus24 Package, but many of those contract25 178 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 opportunities are subcontracted out.2
So the4 question becomes: Are we talking, are we5 coordinating with various agencies to6 make sure there's a pathway to7 opportunity for female companies, for8 minority companies, because in most of9 the spending, we're talking about a10 180-day window from start to completion,11 or obligation of the funds at least.12 So if we're not talking now13 then this wave of opportunity is going to14 hit us, go right over us, and we're not15 going to benefit from it in a substantial16 way if those mechanisms aren't being put17 in place right now.18
I agree, yes. I19 mean, weatherization is a good example20 where, you know, we're starting now to21 look at a few fronts. I mean, one is the22 training front, clearly because that's23 going to be a significant source of jobs.24 About two weeks ago from -- two25 179 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 weeks ago today, we launched a training2 class with ECA, the first class of 20,3 which will be going through for training4 in weatherization.5
These are8 individuals; we're just talking about9 people for the moment.10
So -- 'cause we12 know there's going to be a number of --13 we don't know yet the total14 weatherization dollar number, but it15 could be pretty substantial, so we're16 trying to get that training up and going17 now.18 We did that -- as an example of19 what you proposed, I mean, we didn't wait20 to receive weatherization dollars; we21 haven't actually received new recovery22 weatherization dollars, 'cause they go23 through the State, which then disburses24 those to the cities, but we've already25 180 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 set up the training program, using some2 workforce dollars.3 And we're now starting to get4 organized around what business5 opportunities may come from6 weatherization. We're analyzing,7 actually, where the business8 opportunities may be in terms of supplies9 to try to figure out what -- how we can10 support potentially some smaller11 contractors and businesses to take12 advantage of it.13 So we're trying to do that14 ground work now.15
My16 question -- because, again, I want people17 to go to lunch -- is: If I have 3018 contractors right outside of City Hall19 ready to go, ready to participate,20 where's their first port of entry?21 Where's their first door they go through?22
Well, in terms of23 weatherization or just in general?24 COUNCILMAN JONES:25 181 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 Weatherization.2
Weatherization3 right now, it's going to -- we are4 working with the State. The State has5 not -- the dollars are going to go6 through the State. The State then7 distributes it -- is deciding how they8 want to distribute it to the City.9 They may distribute those10 funds, we hope, to PHDC, they may11 distribute some of those directly to ECA12 as a provider. We're working with them13 now to try to figure out that system.14
Here's my15 point: Right now, there's 30 contractors16 lined up, ready for this Stimulus17 Package, Recovery Package to hit.18
Right now,20 when I say to you, Where do they line up21 at to get the opportunity --22 (Timer bell rings.)23
-- we don't24 have that answer.25 182 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
That's the7 180-day, that's the $100 million dollar8 question we have to give them a answer9 to.10
So whether12 it's a PCDC, PIDC, Commerce, it -- the13 acronym matters less than where do they14 line up for the opportunities?15
I'd say the easy16 answer to that right now would just be17 Commerce, that if there's a list of 30,18 we're organizing that.19 But I would say, again, part of20 what we're doing is figuring out that21 provider system in weatherization, but we22 will be compiling, and we have actually a23 grant to help us organize specifically24 weatherization, because of those25 183 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 opportunities, to get that system in2 place, so that we can have a -- where3 they can sign up.4 And whomever it is, if the5 dollars go to X, Y, and Z they're lined6 up to take advantage of it.7
Just so you8 know, we're talking about a considerable9 amount of dollars expended in a short10 amount of time.11
And my only13 concern is, I don't want to be here next14 year, and my colleagues are asking these15 same questions for which we cannot give16 them answers.17
So it is19 important -- if it ain't measured -- and20 I say it in broken English, just to make21 the point -- it ain't managed. And we22 have to measure where those opportunities23 are, who they're going to. Whatever the24 door is, tell us. And we have25 184 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 constituents that are waiting right2 outside of this hall, ready to go, but3 they don't know where to report to.4
Thank11 you.12 We will stand in recess until13 1:45.14 (Lunch break taken.)15 (Proceedings resume.)16
Good17 afternoon. We will reconvene the18 hearings this afternoon, and we'll19 continue with the Commerce Department.20 I think Councilman Clarke --21 he's not here, Councilman Green is not22 here.23 Councilwoman...24
He's25 185 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 here.2
Oh, I'm3 sorry. I'm trying to do this like --4 okay, Councilman Green.5
Thank you,6 Madam Chair.7 Good afternoon. I appreciate8 your patience with us today. I will try9 to get through my questions in five10 minutes, so if you don't have the answer11 right away, if you could just provide12 them to the Chair.13 I'd like to look at your14 revenue projections. So if you look at15 , which details revenue from other16 governments, funding is falling by17 2 million, or 24.8 percent. What was18 this revenue and how was it allocated and19 why is it dropping?20
I'm sorry. Okay,24 hold on one second.25 186 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
Yes, ma'am. The9 difference of the 2-million-171 is10 actually, the effect of two items in the11 budget.12 On of the budget13 details, the Grants Revenue, we are14 expecting an increase -- we've asked for15 an increase of $519,000 of appropriations16 power for various grants that we will17 receive over the fiscal years; it's a18 continuation of grant.19 You net that against of20 the budget details, which shows a line21 item of about 3,191,000, and that22 represents a revenue source of UDAG23 repayment the City received from a24 project that was done, I guess, in FY --25 187 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 it was done years ago, but the payment to2 support the project was done in FY '09.3
Okay. So7 then there's a FY '09 original budget,8 including 5 million from Other9 Governments, and it's now -- and this is10 also on 42, and now it's only 728. Can11 you explain this change?12
That part of the --13 if I can refer to you of the14 budget details, Commerce Budget, on15 Section 19, , this -- there are a16 number of grants that City Commerce will17 be requesting -- will be receiving over18 the course of the fiscal year, and the19 net increase is going to be 19,093, and20 these come from different sources.21 I can provide you the details22 of the differential of the 600,000 over23 the 728, but the 5 million -- one of the24 things, when we look at the budget, we25 188 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 request an appropriations power to2 receive certain grants over the course of3 the fiscal year. We may not receive up4 to the appropriations power, but it's5 there to allow us to receive grants that6 we anticipate during fiscal years, and7 those grants that we never anticipate.8 It's a placeholder for us to receive the9 funding.10
Okay, I11 understand. If you could provide detail12 about what you expected to receive and13 then what you are planning to receive on14 .15
So that we17 can understand what we're giving you18 appropriation power for potentially.19
On Page21 49 -- I'm going to skip that question22 'cause it's the same thing.23 On of the summary,24 which is CDBG --25 189 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
Yes, sir. That9 also is a net effect of three things:10 The first effect is on of your budget. shows the12 $238,000 appropriations for PCDC, and13 that number has been zeroed out because14 of proposed reorganization.15
But that's16 an expenditure number, and I'm asking17 about revenue.18
50.25 190 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
Oh, I'm sorry.2 Wrong page.3 Yes. These are -- again, these4 are appropriations powers, Councilor, and5 this is money that we will receive in the6 fiscal -- that we expect to receive in7 the course of the fiscal year. And these8 numbers are estimates. It includes9 original appropriations, plus prior10 years' appropriations.11
If you could15 provide the detail about that is going to16 be for, you expect, in addition to the17 detail you're going to provide with18 respect to , I'd appreciate that.19
Let me22 just follow up on the -- I may have23 missed something you said. What was24 zeroed out of what portion of your budget25 191 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 for PCDC?2
There's a -- on3 , there's a $238,0004 appropriations in FY '09. There's no5 allocation for that in Fiscal Year 2008.6
There -- the 2389 was typically -- was used by PCDC for10 loan programs. Each year, PCDC gets an11 appropriations through the Community12 Development Block Grant. Monies that13 aren't expended that year go into14 reserve, and so, this 238 represents15 additional entitlement dollars, new16 dollars, but it doesn't represent the17 true spending for loan origination.18 Based on our numbers, they've19 originated about a-million-9 in loans20 this year, but this 238 is just a portion21 of the amount of loans they've originated22 because they have prior reserves -- they23 have reserves from prior fiscal years.24 So the appropriation authority25 192 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 is just not there.2
So where3 does it go if -- according to the4 testimony, you're moving PCDC to Commerce5 and part of it's commercial corridors and6 Commerce and part of the loan program and7 PCDC, where will that appropriation go?8
The appropriation9 will still with the iteration, the new10 iteration, of PCDC; it will sit with11 that. They will still -- it's12 anticipated that they will still provide13 loan services pursuant to their mandate,14 but it may not necessarily come through15 this vehicle in terms of the funding.16
The answer is,17 it's not an actual -- many of these, as18 Councilmember Green has pointed out, are19 not actual dollars but are authority to20 spend a certain amount of dollars.21 I this think what -- in this22 instance, with the lending capacity, if23 it goes to PIDC, there's loan authority24 there that they'd be able to use.25 193 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 There's not an actual dollar amount that2 would be a decrease in loan activity3 because, in fact, we want to increase4 loan activity.5 So, it's just shifting -- it6 would shift to a different authority and7 a different vehicle to do that.8
Okay.9 The Chair recognizes10 Councilwoman Brown.11 Councilwoman Brown is not here.12 Councilman Goode.13
Thank you,14 Madam Chair.15 Good afternoon.16 Following up on a question that17 Councilman Jones asked before the break,18 which wasn't fully answered -- and I19 think he went on to other matters -- the20 Economic Opportunity Cabinet, what's its21 purpose? how long ago was it created? and22 how many times has it met?23
Very good. We'll24 get you the actual number of times it25 194 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 met.2 It was created, Councilmember,3 to, I think, bring to the highest level4 of attention that the Mayor wanted to set5 up -- because many of the issues that6 you've pointed out and that we went7 through before the break in terms of how8 goals are set, how seriously they're9 taken, how they're implemented, felt that10 that needed to come from the Mayor, from11 the deputy mayors, from the Cabinet, so12 that all of the departments, there was13 accountability at the highest level.14 So the Equal Opportunity15 Cabinet was set up. It is intended, I16 believe, to meet, I want to say,17 quarterly. We have met --18
The second22 question what was, when was it created?23 How many times has it met since it was24 created?25 195 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
I think it's met3 once since it was created, but it met two4 -- the Cabinet met a couple of -- at5 least two times before the actual6 creation in terms of organizing itself7 and the executive order, reviewing the8 executive order. So I think we've come9 together, in the past year. Probably10 three times. And I think it's intended11 to get together quarterly.12 So we had planning some13 meetings, where cabinet members were14 there went, through what the goals would15 be, went through what the --16
So be a17 little bit more specific, if you can18 remember. When did it meet?19
Oh, I'd have to20 get you the specific dates. Unless Kevin21 you have it.22
Okay.25 196 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
Excuse me,6 Councilman.7 My question -- if you could8 answer Councilman Goode's one question9 I'm very curious about, which is one of10 the parts of his question is: What is11 the actual authority of the Economic12 Opportunity Cabinet? In other words,13 what is it deciding? It's a cabinet14 meeting for a purpose; what is it15 deciding? what decisions does it make?16 Thank you, Madam Chair.17
I mean, the goal18 of it, I don't have the executive order19 in front of me -- you may Councilman20 Goode, but the intent of it was to, at21 the high level, set -- have the22 coordinated policy and strategy related23 to our equal opportunity goals.24 And we talked before about the25 197 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 strategic plan. We'll be bringing2 forward a strategic plan, which would be3 presented to that cabinet, to the Equal4 Opportunity Cabinet. It would be5 adopted, in the sense of the buy-in, by6 all of the deputy mayors and the Finance7 Director and cabinet officials so that it8 becomes an operating policy document that9 all -- everyone is held accountable to.10 So adoption of the strategic11 plan and, I'd say, execution,12 implementation of that strategic plan.13 And then to have this kind of a14 conversation that we're having today,15 where, I think, that what the Mayor and16 what we envision is that the deputy17 mayors would have to come before and say,18 How did we meet -- are we establishing19 goals? did we meet our goals? why did we20 meet our goals? And that we would21 literally be accountable for that22 performance over the next year.23
I guess24 that's where I'm going at the end of the25 198 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 day, and I thank Councilman Green for the2 question, 'cause, to some extent, there's3 no need to just try to hold you4 accountable or Mr. Dow accountable or5 Mr. Bell accountable, because that's not6 where we're trying to get to. We're7 trying to hold every department8 accountable.9
And all of11 those departments report to deputy12 mayors, and it seems, in terms of how13 this was structured, that the Economic14 Opportunity Cabinet is actually the15 entity itself that we want to hold16 responsible, yet it appears that it may17 not have actually made any decisions yet18 since its creation.19
The next piece20 that we're waiting on is -- or that will21 be the meeting will be bringing forward22 the strategic plan, which, as Kevin said,23 we're going to complete in the next24 couple of months.25 199 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 And that will be, I think, very2 important 'cause that's where the goals3 and objectives are going to be set for4 this cabinet, and we're now incorporating5 the recommendations of the Structure and6 Diversity Task Force, and we're working7 on that. So that's right.8 And then it will be, from that9 point forward, held accountable the,10 deputy mayors and then departments.11
Thank you.14 That's your strategic plan for15 its Commerce Department?16
So you'll21 have -- when is that due? When do you22 plan to have it for?23
What we intend --24 I believe we said earlier we'll have that25 200 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 completed for the -- well, the end of the2 year, for July, for the fiscal year.3
Thank7 you.8 Going back to the commercial9 corridors discussion, we talked about the10 187 neighborhood-based commercial11 corridors. How many are under the12 current management of PCDC?13
They prioritize their20 commercial corridors, so they prioritize21 27.22
And how23 many do with we do internally through our24 subs?25 201 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
We have --2 neighborhood commercial corridors are3 187, which we define.4
I think we10 should call up Mr. Sabor, 'cause, from my11 recollection, there are a lot more than12 27 corridors that are under the13 management contractual obligation of14 PCDC, and I think we might save ourselves15 a couple of questions and steps by16 bringing him up so he could speak to17 those issues that my colleague wants18 answered.19
The Chair20 recognizes Mr. Sabor; is he available?21 (Witness comes forward.)22
State your25 202 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 name, please, for the record.2
Kiel Sabor,3 President of the Philadelphia Commercial4 Development Corporation.5 With respect to the contractual6 obligation that PCDC has regarding7 commercial corridors, there are 458 corridors that we are responsible for, of9 which 20 have been designated as priority10 corridors.11
So of16 the 45, can you please provide to the17 Chair that clarification in terms of the18 45 under contractual arrangements versus19 the 27 that are priorities. You said 20?20
The22 Councilman said 27, okay.23 And then -- 'cause I guess my24 point is, part of the streamlining line25 203 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 is, we're going to be able -- going back2 to Councilman Jones' point earlier -- do3 more corridors or develop more4 efficiencies. So I would like to see5 where we are today and then what the6 goals is in terms of servicing some of7 those corridors.8 So, if you could provide that9 as part of your transition plan, that10 would be important.11 One thing that's missing -- and12 I had this conversation with the Commerce13 Director and Kevin Dow. One of the14 things that's missing in the15 conversation, as we talk about business16 development, is manufacturing. I have17 600 manufacturing jobs in my district18 that I'd like to protect.19 Can you articulate for me what20 our agenda is as it relates to21 manufacturing, light manufacturing?22
I was just23 checking on one thing.24 I think there are two -- well,25 204 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 at least two, but let's just talk about2 two things.3 One is, as you know4 Councilmember, we have funded over the5 past few -- Commerce has funded over the6 past few years the Urban Industry7 Initiative, UII. They have been the8 principal organization doing outreach to9 the manufacturing sectors, Steve Jurash.10 They -- I've gone to a number of meetings11 with them, with manufacturers.12 Their goal is both to do13 advocacy for that sector as well as14 problem-solving. One of the things15 they've been working on -- and I met with16 Mr. Jurash about two weeks ago -- is17 actually a training module with the18 community colleges, which has been19 designed with manufacturers.20 Apparently -- and I'm not sure21 of the exact number -- but there are22 something close to 800 job openings in23 manufacturing.24
In the25 205 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 city, in the City.2
In the City. And3 they have found that it's been hard to4 fill those jobs in terms of just basic5 skill requirements, the manufacturers6 have. So they've designed this program.7 I believe they've received some funding8 for it. And so they've been doing that9 kind of outreach.10 They also work on referring11 many manufacturers to us in Commerce just12 on a day-to-day basis in terms of their13 needs. Many of them -- a lot of their14 needs have to do with licensing, getting15 through permitting processes, business-16 license issues because of the17 classification of the industries. So18 there's a lot of interaction day-to-day19 between our staff and UII. So that's20 kind of on the daily basis.21 On a policy level, we are22 working with the -- I think you heard23 this, I think, maybe in Allen24 Greenberger's testimony during the25 206 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 Planning Commission, the -- the2 Industrial Land Use Study that we're3 doing with PIDC and the Planning4 Commission, which is looking at all of5 the supply of industrial land, looking at6 what the demand is for industrial land.7 So taking a longer-term view in terms of8 the manufacturing sector and what its9 needs are because we are either10 land-constrained or, if not land-11 constrained, the parcels we have are12 either brownfield sites or difficult13 sites when the manufacturing wants to14 expand.15 (Timer bell rings.)16
So I'd say two17 fronts: One is day-to-day problem-18 solving related to both their training19 needs and business needs, and then taking20 the long-term view of what we need to do21 to prepare ourselves to keep this sector22 vibrant in the City.23
Okay.24 One of my concerns is, and Councilwoman25 207 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 Tasco's, who shares part of Cardone2 Industries, they've recently started3 moving out of the area. And when I4 attempted to speak with them prior to5 this administration, their issue was,6 they had some financing issues and some7 other things that the City did not8 respond to that led to them moving to9 McAllen, Texas, some of their10 manufacturing plants, 'cause they're11 trying to be competitive globally.12 And I'm very concerned because,13 going back to job retention, this market14 does not get the same attention from our15 business component but provides for those16 of us in the neighborhood critical17 entry-level jobs.18 And it is -- when you hear the19 number, there's 800 jobs they can't fill,20 and we're not creating a pipeline either21 through our technical component at the22 School District or through our community23 college. That is of great concern,24 because these are jobs that, in some25 208 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 cases, don't require high school diplomas2 but are good-paying jobs because they3 start immediately at anywhere between $154 and $17.5 I'd like us to be a little bit6 more aggressive. I have a lot of this in7 my district. I know, for Councilwoman8 Tasco, we lost hundreds of employees9 through Cardone Industries, hundreds.10 And they're going to continue to divest11 from the City because they didn't feel12 that the City was as proactive as we can13 be, so we need to put that on our radar;14 it's important.15
Yeah. And let me16 just make two very quick points on that,17 Councilmember.18 One is, we agree with you. And19 we met with Cardone as recently as, I20 would say, in the past maybe 60, 90 days,21 met with actually their whole leadership22 team. And all of us, we went out there23 and met with them. And they signed up24 for our Home, Buy Now Program the25 209 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 expanded program, because one of the2 issues that they said they had is that3 they wanted to have an incentive, you4 know, to keep for employees in the5 neighborhoods.6 And, as you know, they probably7 employ -- I don't want to say an exact8 number, but let's say 50 percent, 609 percent of their employees -- they have,10 let's say, 4,000 employees -- are within11 the northeast area, in Northeast12 Philadelphia.13 So they signed up first --14 actually, Michael Cardone himself. And15 we did a tour of their facility. And16 they are participating.17 We've also gone out to18 manufacturers, like Agusta, of19 helicopters in Northeast Philadelphia.20 We really wanted to hit these21 manufacturers, and, I agree with you,22 both on the training front and also in23 terms of employee retention.24 So, you know, there's always25 210 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 more we can do, but it's a very important2 sector, and we do see that these are3 firms that are in the neighborhoods and4 providing jobs in the neighborhoods,5 which is why we started with them on some6 of these incentive programs.7
Thank you.10 The Chair recognizes Councilman11 Jones.12
Thank you,13 Madam Chair.14 And I know by now that you at15 that table think we just like hearing16 ourselves talk, but such is not the case.17 We like being -- we like being heard,18 however, when we do talk, and one of the19 things that we want you to hear loud and20 clear is that the inclusion factor, the21 diversity factor is something that we22 take very seriously.23 And that when -- I'm a little24 distressed when I hear that we've only25 211 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 met -- the Cabinet has only met one or2 possibly even three times in this period3 -- wait a minute -- and that we haven't4 gotten together a plan yet.5 We are 15 months into this6 administration. And the projects aren't7 starting up while we plan our way through8 this. Groundbreakings happen every day,9 there's shovel-ready projects going10 through the Stimulus Fund. And if we11 don't get our kind of collective acts12 together, these opportunities are going13 to pass right by us.14 And so, it's not that we like15 hearing ourselves talk, but we want to be16 heard when we do.17 And we want you to understand18 that, just like I want to see a increase19 of 15 to 20 percent in the loan20 production, the business development side21 of this, I'd like for us to have a real22 land that includes real businesses in23 some of these opportunities that we can24 all be proud of when -- I don't know if25 212 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 we're having the mid-week this year or2 budget cuts prevent it, but at the3 mid-week luncheon, we have really need to4 have something substantial to point to by5 way of our work.6 And the other suggestion that I7 would add is that you might want to8 invite Council, or a member or two from9 Council, to work with that office,10 because, as you do things in an11 administrative capacity that needs12 legislative action, we can be a part of13 the team as well.14 And we can help you. When a15 developer comes in here, trying to get16 relief from us or different things from17 us, we want to be able to help you to18 help them to be diverse. And that's19 something that we're going to look20 forward from you guys in the couple of21 months -- not years.22 We don't want to take windows23 of years in between, but we want to look24 at this on a quarterly basis, maybe under25 213 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 the Fiscal Stability Committee and see2 how we're doing.3
You can say5 "yes" in the mic so that it's on the6 record.7 (Laughter.)8
I mean yes is that14 we -- look, we also are taking it very15 seriously. We're going to -- we're not16 just waiting for this plan. We're17 looking at every opportunity we can to18 increase this. And we will -- we hear19 you that this is on the top of our radar20 screen as well.21
Just as a22 friendly amendment, I was told just now23 that we're doing it through the Commerce24 Committee, of which Wilson Goode is the25 214 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 Chair.2 So thank you, Madam Chair.3
Thank you.4 And speaking of diversity, I5 note earlier we had gotten some concerns,6 and Councilwoman Sanchez raised the issue7 of the number of people who left your8 department and that the majority of them9 were minorities.10 And what is the breakdown, the11 minority breakdown, of your executive12 staff?13
I mean, there21 is also -- I mean, there's also -- right22 here, we have here the key people, my --23 you know, Kevin's in charge of overall24 Neighborhood Business Service, as well as25 215 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 Equal Opportunity Employment reports to2 Kevin.3 Sade is in charge of all4 finance and operations.5 And Dwayne's in charge of both6 the policy as well as the development arm7 of -- within Commerce.8
In the middle11 managers, we have Mike Bell, Andrew12 Frishkoff, and Dawn Summerville. I would13 say that's it.14 Dawn's running under Kevin, the15 Business Team. Andy Frishkoff runs the16 Neighborhood Commercial Corridor Group.17 Michael Bell runs Equal Opportunity.18 Those are kind the of the three19 principal divisions, I would say.20
Okay. Are21 they the only three in middle management?22
Yeah, we only23 have -- remember, Commerce is only -- I24 mean, in total, we're -- when you25 216 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 integrate, I mean, the Office of Economic2 Opportunity and Commerce, we're 653 people. I mean, Commerce itself today is4 about 49 people, so --5
What I6 would like for you to do is give us a7 list of your staff members.8
One of the10 things that we talked about when we met,11 one of the issues we talked about, was12 increasing the Asian diversity, Asian13 representation in your office.14
Due to the16 fact that many of our commercial17 corridors are -- the businesses are owned18 by Asians and other ethnic groups, one of19 the problems we have found with the --20 (Timer bell rings.)21
--22 particularly in my area, on Fifth23 Street -- Fifth Street, particularly, and24 some of the other areas not quite as bad,25 217 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 but the language issue and having the2 business owners understand, you know, how3 to do business with the City, how to do4 business in the City. And just the5 inability to communicate with someone who6 works for the City.7 And not just your department8 but all of the City departments,9 particularly those departments where they10 -- that impacts on their business, L&I,11 for instance.12
And14 understanding the L&I rules and15 regulations as well as having someone16 communicate with them who can speak their17 language and work with them.18 And so, I think there ought to19 be some effort to, particularly in your20 business --21