That those2 employees should be -- certainly reflect3 what the City looks like and the business4 community that you're serving.5 So, we'll ask that question.6 And when you come back, we want to have7 some better numbers.8
-- and as I went12 through, as you can see, the sort of the13 executive staff here, and then, you know,14 in terms of the middle management, what15 we consider the middle management16 division managers. So I'm happy to17 provide that in writing for you.18 But your point about -- and19 we've talked about this. We do have20 someone who's very good, who done a lot21 of outreach, as you know, to the Asian-22 American community.23
Unfortunately, we25 219 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 only have one person doing that. And2 with the budget constraints we've had, we3 obviously haven't been able to hire more4 people, but it is something that we're5 looking at doing 'cause of the demand6 that's there. And there's no question7 the need in the commercial corridors.8
Maybe you9 could get employees from other10 departments to provide any direct contact11 or services to the community.12
Thank you,18 Madam Chair.19 On of the detail,20 you've got a-million-452 for PCDC for --21 the purpose described is economic22 stimulus.23
What does25 220 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 that mean?2
That number is...3 Yeah, that number, this fiscal year, is4 largely a staffing number. And that's5 one of the numbers that's included in the6 testimony under -- of sources. That's7 one of the other sources of staffing8 money.9
I'm sorry.10 Why is it described as "economic11 stimulus"?12
This is a fund13 that has -- there's a stimulus fund that,14 I guess, historically has always -- it15 has been steadily declining over the16 years. That's been used for a whole17 variety of different uses from grants to18 businesses to doing different development19 deals to staffing.20 Most of that money, as you can21 see, has declined over the years. You22 can see, in '08, it was about $4 million,23 and before that, it was at significantly24 greater levels. It's now down to about25 221 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 $1.4 million.2
Well, this3 isn't a fund. This is, from the General4 Fund, an appropriation to PIDC.5
As it was in7 2008. It was a $4 million appropriation8 from the General Fund.9
Right. It's a13 fund. It's a general -- I'm sorry. I14 meant it's a line item, not a separate15 fund. And the line item now, really the16 core of it, is just paying for staffing.17 It used to pay for a lot more when we had18 a greater number.19
What do20 these people do and how much do they21 earn? Can you please provide the Chair22 with a copy of that?23
A job25 222 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 description of each person in PIDC --2
How much7 they earn and, you know, why we feel8 like, with all of the fees and the other9 things that they generate as a result of10 doing a lot of business for the City, we11 need to supplement their staff and we12 can't make them self-sustaining.13
Just to give20 some background.21 Even before Mr. Altman was22 here, the Economic Stimulus Fund was23 actually started under the Rendell24 Administration and different sources of25 223 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 funding, including tax lien sales, a2 portion of which went to the School3 District; the other portion went toward4 economic development projects, some other5 sources of funding through the sales6 support proceeds. At one point, it was7 at 70 or $80 million or more.8 When that money was depleted,9 we began to plug in General Fund money to10 keep the Economic Stimulus Program going,11 but it could be only appropriated at the12 level about of 4 or $5 million.13 And so, PIDC simply administers14 the fund.15
It's still a18 fund, but it's funded through the General19 Fund.20
Let me try to make22 the -- I think -- and, Councilmember,23 you're right.24
To the25 224 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 extent that they were loans made that are2 paid back to the Economic Stimulus3 Program, that money goes back into the4 fund.5
Right. What's7 happened -- and Councilmember is8 absolutely right. It -- just to be9 clear, this is funding -- the line item10 that you refer to, the $1.4 million --11
-- that money pays13 for staff at Commerce not at PIDC. So,14 in other words, it's just funded15 through -- and this is just -- this is16 part of what I wanted to do in the17 testimony, because Commerce has18 historically --19
No. I'm20 sorry. This is Class 200 detail. This21 is a contract -- this is money that goes22 to PIDC.23
This is25 225 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 Class 200 detail. This does not pay for2 Class 100 staff at Commerce.3
I -- it -- that's4 why I'm showing -- in the testimony, I5 say we have a variety of sources that6 have paid for staffing. If you look at7 the chart --8
So you're9 saying that what we do is, we appropriate10 money to PIDC, and then somewhere in the11 five-year budget detail, under Commerce,12 there's money that comes back to Commerce13 from PIDC?14
It doesn't come15 back to Commerce. It's appropriated.16 And this is historically just17 -- I mean, what's happened, it's been, I18 guess, appropriated to PIDC, and then it19 has paid for staff at Commerce. They're20 PIDC employees, but they are deployed to21 Commerce, and they do various activities22 at the Commerce Department.23
Where are24 they, in your office building?25 226 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
That's the way --7 and, again, it's one of these -- like8 there's funds at MDO that work at9 Commerce, there's money through PIDC that10 had staff at Commerce. And just, it's --11
I see no14 reason to have Class 200 funding for PIDC15 employees if they work in your office.16 It should be Class 100 in your office or,17 you know, it's just -- there's no18 transparency or even accountability; they19 don't work for you.20
So, you22 know, let's get the information to the23 Chair. And then we'll see if we can24 clean it up in this budget, maybe.25 227 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 Madam Chair, I had a point of2 information, which took about three3 minutes roughly. You weren't here so --4 (Laughter.)5
I have one10 final question, and that is: In the11 Controller's audit, one of the main12 complaints was that PAID did not remit13 land bank sales to you, to this General14 Fund quickly, and that costs us a great15 deal in interest expense.16 The Commerce Department's17 response, in the 2007 audit, was that the18 department will modify its contract to19 require it to remit -- with PAID, to20 require it to remit the proceeds of land21 bank properties in a timely manner. And22 in those instances, where PAID has failed23 to comply, it will assess interest and24 get reimbursed.25 228 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 Can you please tell me, have2 you actually done this revision with your3 contract? And, if so, provide to the4 Chair a chart that shows when the sale5 happened and when the funds were remitted6 since 2007.7
Councilman Green,8 Sade Olanipekun-Lewis.9 The 2007 audit, the exit10 conference, was had last fall. And in11 our response, we committed to what you12 just shared on the record. And we13 anticipate in FY '10, in the beginning of14 July, all of the contracts will be15 modified to reflect the interest payment16 that we're going to assess if the land17 proceeds are not remitted in a timely18 basis.19
It was in24 the fall, you said.25 229 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
Right, in the fall.2 We're updating all of our3 contracts with the new fiscal year,4 although the current contracts were5 already let. So for the new fiscal year,6 we're going to modify --7
I'd say we8 have a little bit of hand with PAID,9 given that the Mayor appoints all five10 members of the board. And maybe we ought11 to revise that contract when we know12 there's a problem.13 Thank you, Madam Chair.14 COUNCIL PRESIDENT VERNA:15 You're welcome.16 The Chair recognizes17 Councilwoman Brown.18
Thank you,19 Madam President.20 Good afternoon.21 As a matter of record, Michael22 Bell reports directly to...?23
Kevin Dow.25 230 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
Are any2 one of you at the table when Michael Bell3 is sitting with the department heads to4 think through and strategically determine5 what MBE/WBE goals will be?6
Okay. It9 gets back to Councilman Goode's and all10 of our concern, who do we ultimately hold11 accountable and responsible when it comes12 to what is essential for us, and that is13 leveling the playing field for women- and14 minority-owned businesses.15 To the Mayor's Advisory16 Commission Report on Construction17 Industry Diversity, what are the18 Administration's next steps in regards to19 any of those recommendations?20
We are taking those21 recommendations into hand now and we are22 going to be integrating some of our23 responses in the strategic plan for the24 economic opportunity that we'll take into25 231 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 conversation, the 75 recommendations2 there. So there were 75.3 We're going to try to do best4 to respond to all of them. We might not5 get 'em all, probably won't.6
But they have help us8 and influence what we do in the strategic9 plan.10
Okay. In11 an effort to lead by example, and in12 response to the First Judicial District's13 comments that they weren't a City14 department, so therefore, they don't have15 to provide us numbers, is your department16 at all involved with non-city,17 quasi-government agencies in helping them18 understand that this is an expectation of19 this administration, here are the goals,20 what are you doing?21 Do they get any kind of reach,22 contact, conversation, dialogue, from23 your office on this issue?24
And you're talking25 232 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 about Courts and the --2
Right. No, not at5 this time. We have not have been6 involved with them over the years,7 involving them in their minority8 participation.9
Okay.10 Councilman Jones has spoken at length11 about our interest in ensuring that,12 again, the playing field is even and13 level for persons in neighborhoods having14 access to jobs and subcontractors having15 access to opportunities.16 What is OEO going -- doing to17 assist MBE contractors to prepare and18 ramp up for these dollars? Given the19 fact that the Commerce Director has20 indicated you're still waiting for21 additional guidance from the State, what22 are you doing to ramp up in anticipation23 of those dollars?24
We hold a number of25 233 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 outreach sessions with a number of2 different organizations to prepare them3 in terms of making them aware of what the4 opportunities are.5 So right now, it's a lot about6 let's make sure that folks understand7 what opportunities are coming down the8 pike for weatherization, the Neighborhood9 Stabilization Program. We've done the --10 we've done the Hispanic Chamber, we've11 done MSDC, we've done a number of12 different outreach programs to engage13 that community so that they can14 understand what they need to do to get15 their ducks in order in advance, and so,16 when they come and they are ready and we17 get these funding sources, they'll be18 prepared to take advantage of it.19
There may20 be a role for District Councilmembers as21 well --22
-- to be24 aware of those efforts so that they can25 234 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 reach to their constituencies even in2 their way to really make sure that the3 word gets deep as far as wide, in4 addition to wide.5
Agreed.6 And we are, by the way, holding7 on Monday, next Monday, an event with8 the -- on the 11th -- with the SBA, the9 Small Business Administration with the10 federal government, which will be a major11 outreach effort to small businesses to12 make them aware of the SBA opportunities13 for -- they've changed some of their14 lending criteria, they have a number of15 outreach programs that serves small16 business development. So we're going to17 be hosting a major event with them as a18 first of series of how do we get ready19 Recovery dollars --20
-- and here are22 the opportunities of the federal23 government, and here's what we can24 prepare for. So we're launching that.25 235 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 (Timer bell rings.)2
And I'll be happy5 to send it to everybody. Hopefully, if6 you haven't received the invitation, you7 will receive one.8
Terrific.9 The bell has rung, and I'll10 honor the bell.11 Thank you, Madam President.12
Thank13 you.14 The Chair recognizes15 Councilwoman Tasco.16
Thank you17 very much.18 Mr. Altman, you talk about of19 the 28 of 5 million dollars that's of20 your budget that's for the General Fund,21 $25 million is the Convention Center22 lease-service fee.23
Now, isn't25 236 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 the Governor supposed to re -- aren't we2 supposed to stop paying that fee?3
Yeah, I'm not the4 expert on that. I mean, that would5 really be through the Finance Office.6 We're a pass-through, but that number is7 supposed to go down to a fixed amount. I8 believe it goes to, I want to say,9 $15 million a year. And then that term10 was extended.11 So our -- we're never relieved12 of total responsibility. What the State13 is going to do is, I believe, they have14 to issue a bond. They have to defease15 the current bonds, and then --16
Is21 the Budget Director available?22 (Steve Agostino returns to the23 witness table.)24
But, essentially,25 237 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 what's happening is, they just have to2 defease the bonds; they haven't been able3 to do that, given the market condition.4 So, therefore, we're holding on to -- we5 have to continue payments a bit longer6 until they're able to do that, and then7 the amount will go down to 15 over a8 longer term, but I'll let...9
Steve Agostini.10 Good afternoon.11 Pretty much what he said,12 almost verbatim.13
I forget if the15 number is 15 or 19 million; it has been16 extended out. We're still in discussions17 with the State. We do function as a18 pass-through, so what Andy said for the19 record pretty much --20
So the24 State is not picking up the entire cost?25 238 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
No, they're not,2 and there is still some discussion about3 some elements of that, but no, they have4 not alleviated us of that cost.5
When we6 did the Convention Center, weren't they7 supposed to pick up that whole fee?8 Okay, we'll check on it and will come9 back to you on that; that's not the10 Commerce Department, but yes, they are --11 I have one other question,12 Mr. Altman. It's my understanding that13 OHCD reports to you. In addition, and14 according to your testimony, one of your15 five economic development strategies is16 to build liveable neighborhoods.17 In this regard, I find it18 troubling that in this year's preliminary19 consolidated plan for OHCD, which will20 come to this Council, there is no21 proposed funding for anti-predatory22 lending products. Since 2003, the City23 has provided funding to support the24 program costs, and you know it's my25 239 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 favorite program, the Fill Plus and the2 Mini Fill Home Improvement Loans.3 Considering your economic4 development strategies, Philadelphia's5 foreclosure crisis, America's stagnant6 economy, and a reduced amount of7 available credit from financial8 institutions, why have these programs9 been cut?10
Councilwoman, I'll11 have to look at that and get back to you.12 I do understand how important that is,13 and we've been a national model in this14 regard.15
So let me look at17 the comp. plan and the funding and then18 get back to you, and I know we'll have a19 hearing on that, but --20
Thank you21 very much.22 We did get some testimony from23 the GPUAC, who testified before the -- on24 the consolidated plan.25 240 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
And from3 that testimony, I gather that the program4 has not been funded. So I hope you will5 look into it, please.6
Let me look at7 that before the hearing, and then we'll8 get together with you.9
Okay. One10 more question.11 It's my understanding that OHCD12 will have access to additional CDBG13 dollars as a result of the federal14 Stimulus Program. With the Stimulus15 funds, additional federal regulations are16 being developed to instruct recipients,17 like Philadelphia, on how they must use18 these funds.19
In this21 regard, the Administration will present22 to Council the Consolidated Plan23 Ordinance, which must be passed by this24 spring. And considering that the federal25 241 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 Stimulus regulations may not be released2 before the need to pass the plan, what is3 the Administration's plan to address this4 issue?5
Well, we are6 waiting for guidance. We do anticipate,7 in terms of the Block Grant, somewhere8 around --9
Madam President17 and Councilmembers, we have been very18 concerned about the reporting19 requirements, and we've been doing a lot20 of research across all of the Stimulus21 areas.22 We are in the process now of23 putting together a list of the steps that24 we need to take for the reporting25 242 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 requirements.2
We've even gone4 so far as to actually put together a5 description of the people we would need6 to administer the Recovery Act funds and7 the reporting requirements, 'cause they8 are very onerous. So we're putting that9 together. And it's our intent to come10 back at some point and sort of explain11 all of those pieces that we're putting12 together.13 But you're right: The14 requirements are going to be very15 onerous. And we're trying to prepare16 ourselves, particularly for those17 entities, most notably CDBG and a couple18 Health Department grants, where there's19 money that's coming in right now, and we20 haven't put all of those reporting21 requirement and reporting mechanisms in22 place, and we have to do that.23
Do you24 have any ideas when the feds are going to25 243 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 release their --2
We've been --3 Councilmember, we've been checking on a4 regular basis. Some of the departments5 are a little further along.6
For example, the8 Economic Development Administration, as a9 part of Commerce, which I'm familiar10 with, is a little further along in terms11 of the reporting requirements that they12 are going to be under.13
Others are not15 there yet. And until they put those16 together, we're not going to know one.17 Of the things we're looking to18 do, probably in the next week or two,19 actually, is a couple members of the20 Administration are actually going to go21 to Washington, D.C. and talk to the22 President's appointee for Stimulus23 oversight to try and get a handle on what24 that would be.25 244 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
And with2 the clock ticking for -- on the months3 this money will be available, is there4 any effort to lobby the extension time5 for these dollars through maybe the6 National League of Cities? because we're7 not the only one facing this problem.8 Maybe there's something that they could9 lobby on to get the time period extended10 to spend these dollars.11
That's a very12 good suggestion. And when we go down to13 Washington, we should probably take that14 up with them. That's a very good15 suggestion.16
All right.17 Thank you.18 Thank you, Madam President.19 COUNCIL PRESIDENT VERNA:20 You're welcome.21 The Chair recognizes Councilman22 Green. Is he in the room?23 UNIDENTIFIED SPEAKER: No.24
Well,25 245 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 we're not going to wait.2 Are there any other questions3 from members of the committee?4 The Chair recognizes5 Councilwoman Brown. No?6 Any other questions from7 members of the committee?8 (No further questions.)9
We14 will now hear from the Commerce Aviation.15 (Witnesses come forward.)16
Madam17 President.18 COUNCIL PRESIDENT VERNA:19 Councilwoman Brown?20
I'll have21 a conversation offline. I did have a22 couple of other questions -- additional23 questions for OEO; I'll just have it24 offline.25 246 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
Okay,2 thank you.3 Good afternoon. Kindly4 identify yourself for the record.5
Good afternoon,6 President Verna and members of City7 Council. My name is Mark Gale, and I am8 the Acting Director of Aviation.9
Just10 a moment, please.11 The noise level is much too12 high.13 Please proceed, Mr. Gale.14 Thank you.15
Would you like me to16 read the full testimony, Madam President?17
You18 can abbreviate it. And we'll give a copy19 a copy of your testimony to the20 stenographer, and she will transcribe it21 in full.22 (Mr. Gale's written testimony23 is attached hereto.)24
Okay. I'm here25 247 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 today to present testimony on behalf of2 the Division of Aviation FY '10 operating3 budget. 3 million over Fiscal Year 20097 estimated obligations. 17 The Airport deferred several18 maintenance projects and equipment19 purchases from Fiscal Year '09 to Fiscal20 '10. 8 million to fund materials, supplies,23 and equipment. 1 million are required to fund25 248 5/4/09 COMM. 25 million in new Class 40012 appropriations for additional electric13 GSE, or ground service equipment,14 recharging stations. 9 million. This includes23 appropriation in the Police, Fire, Fleet24 Management, Public Property, Law, and25 249 5/4/09 COMM. D. 20 Our airport is one of the21 largest economic engines in Pennsylvania,22 generating $14 billion annually into the23 local economy. Over 200 businesses24 linked to the Airport employ some 42,00025 250 5/4/09 COMM. 7 PHL is currently the8 tenth-busiest airport in the United9 States in terms of annual takeoff and10 landings. 14 Twenty-nine tenant airlines15 operate more than 600 flights to 12416 cities, including 58 daily nonstop17 flights, to 40 international18 destinations. 22 Also, USAirways has just23 announced PHL's first-ever direct service24 to South America. This new service to25 251 5/4/09 COMM. 7 In addition to good8 international reach, low-fare carriers9 continue to positively impact our10 domestic airfares. 21 During the past year, passenger traffic22 slightly decreased at the Airport, albeit23 at a lesser rate than many other24 airports, and also less than the national25 252 5/4/09 COMM. 3 percent. 15 We are pleased to report that solutions16 have been put in place to meet these17 challenges. Specifically:18 We remarketed our 2005 C19 variable-rate bonds, 179 million in20 December 2008, with a bank letter of21 credit obtained through a competitive22 process;23 And in April of 2009, we24 refunded our 2005 B -- excuse me -- 2005B25 253 5/4/09 COMM. 11 The refunding bonds also take12 advantage of the two-year alternative13 minimum tax exemption on Airport bonds14 under the Economic Stimulus Law. 24 Within an anticipated return to25 254 5/4/09 COMM. 5 The most significant terminal6 improvement project is the $300 million7 expansion and renovation of Terminals D8 and E. 25 255 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 The first level of a new2 connector building housing a3 state-of-the-art check baggage handling4 system that will include the most modern5 explosive-detection technology will be6 complete and on line by the summer of7 2010. The baggage-claim renovations are8 scheduled to be complete in late 2009,9 the gate expansion is scheduled to be10 complete by March of 2010. 13
I14 don't mean to interrupt you, but I15 thought you were going to abbreviate.16
The Airport just21 recently completed its work on the 173522 expansion. This runway expansion23 extended the runway by 1,040 feet, but in24 the total, the 6500 feet, which gives us25 256 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 the ability to handle additional aircraft2 on that runway, reducing congestion and3 delay, and adding capacity at the same4 time, saving the airlines an estimated5 $20 million in direct operating costs and6 an estimated value of passenger time of7 $29 million annually.8 During Fiscal '10, the Airport9 will focus on three terminal building10 projects: The first is a multiple-11 airline relocation, which will provide12 additional gates for USAirways'13 international growth; it will handle or14 facilitate the merger of Delta and15 Northwest Airlines; and would also16 efficiently -- or maximize utilization of17 the terminal facility by relocating18 AirTran Airways to Terminal E.19 The second project will be the20 expansion of Terminal F, which will also21 move the baggage-claim facility for22 Terminal F from its current location23 across the road onto the arrival side,24 which would be consistent with all of the25 257 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 other terminals. It will expand the2 offerings in terms of the concession3 amenities program, and it will also4 increase the size of the security5 checkpoint.6 We also are going to be working7 on a project with USAirways to create a8 new check-baggage handling system in9 Terminals B and C, again to provide the10 most modern and efficient baggage-11 handling system, with inline explosive-12 detection technology.13 The last two projects, the14 Terminal F renovations, and the B and C15 check-baggage handling system, we expect16 to have the designs for both of those17 projects complete by the end of this18 year, or early next year, and out to bid.19 The Airport did -- or is20 expected to receive significant financial21 benefit from the Stimulus, or the ARRA22 Act. We anticipate receiving as much as23 $63 million through a combination of24 Stimulus monies that would come from the25 258 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 FAA and the TSA for various projects,2 including airfield renovations and3 security.4 Looking forward to the future,5 we continue to work on the Airport's6 master plan, or the Capacity Enhancement7 Program, as it is often referred. We8 anticipate that the FAA will issue a9 final environment impact statement with10 respect to our project by late this year11 and, hopefully, a record of decision by12 early 2010.13 The Airport is committed, as we14 sit here, to environmentally-sound15 practices and green initiatives. We have16 over 50 recycling bins placed throughout17 our terminal facility, and we also have a18 number of other environmental initiatives19 underway, including one that's in our20 budget, to continue the purchase of the21 recharging stations for electric ground22 service equipment to reduce knocks23 emissions on the airfield.24 Diversity in our professional25 259 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 services and construction and contracting2 is a priority at the Airport. During3 Fiscal Year '09, 34.4 percent of4 professional service contracts were5 awarded to DBE firms, representing6 13.8 million of the 40.8 million total.7 For construction, $15.8 million8 of the contracts, totaling $74.9 million,9 or 21 percent, were awarded to minority,10 female, or disabled firms.11 Over the past four years,12 35.2 percent of professional-service13 contracts and 17.3 percent of14 construction contracts were awarded to15 DBE firms.16 Thank you for the opportunity17 to testify. Both myself and senior18 airport representatives are here to19 answer any questions you may have.20
The24 Chair recognizes Councilwoman Brown, if25 260 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 she's in the room. She's not?2 Councilman Jones.3
She actually4 asked me to ask some of her questions5 seriously.6
So when she8 left, she let me know.9 Gentlemen, thank you for coming10 in, and it did not fall on deaf ears,11 your participation numbers, and some of12 them were 34 percent MBE by way of13 professional service contracts, equaling14 about $18 million, and I think it was15 18 percent in your construction?16
Right.22 Which did not fall on deaf ears and23 which -- is that a federal requirement24 that you followed? You followed the25 261 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 federal guidelines on participation; is2 that correct?3
For anything that4 involves the use of federal functions5 fundings, that's correct.6
How did you7 fare in -- and I'm assuming that you and8 the Northeast Airport administratively9 are connected; is that correct?10
That is correct. We11 oversee the operation of the Northeast12 Philadelphia Airport.13
And it's my14 understanding that through the Stimulus15 dollars, that we're also expanding, or16 are gaining a runway; is that correct?17
Just recently, the18 Mayor, along with Governor Rendell and19 our Deputy Mayor for Transportation and20 Utilities, were at the Airport to accept21 a check from the Secretary of22 Transportation LaHood that actually23 awarded Philadelphia International $524 million in Stimulus monies for work at25 262 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 Philadelphia International and $1 million2 for taxiway repair work at Northeast3 Philadelphia Airport.4 These are projects that5 otherwise probably would have sat there6 and not have gotten done as quickly7 without these monies.8
So I took9 note also in your testimony that we now10 have a directing flight out to Beijing,11 China, whereas, before, we -- in order to12 make it to China, we would have to go up13 to New York. What does that mean for14 revenues to the City of Philadelphia?15
We do not have a16 current flight to Beijing today.17 USAirways had applied, through the18 Department of Transportation, for the19 rights to fly to China and receive that20 for 2009, as did a couple of other21 airlines.22 Most all those -- I think all23 of those airlines deferred the right to24 fly to Beijing, given the economy, and25 263 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 requested that they begin flying those2 routes in the spring of 2010.3
We're anticipating6 that USAirways will continue to honor7 that and fly that Beijing route in the8 spring of 2010.9
In your10 market research of flights from New York11 airport to Beijing, what does that mean12 by way of market share, market potential13 and revenue to the City of Philadelphia,14 just expanding that flight?15
I don't have exact16 figures on what it means in terms of17 market share. Obviously, I think that,18 for the longest time, Philadelphia19 International Airport was often20 characterized as being an airport that21 only had reach into Europe and was never22 able to get beyond that.23 So to take the bold steps and24 to see USAirways actually reach into the25 264 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 Pacific Rim, into Asia, and hopefully2 into many other spots in the Far East3 area in the coming year, I think, is a4 great tool for Philadelphia to use going5 forth in the future as a world-class6 facility.7
And by8 way -- there's been a lot of publicity by9 the way of the swine flu and how people10 are trying to prevent traffic of that11 particular flu, and one of the pieces of12 equipment that is used is a recognition13 of body temperature equipment, and I14 wanted to know if Philadelphia has that15 same type of identification mechanism.16
We currently don't17 have thermal imaging, or body heat,18 scanners at the Airport. We are looking19 at to see how much they would be to20 deploy those at our facility.21 I would say that we have been22 working extremely closely with the Center23 for Disease Control and the Philadelphia24 Health Department as well as our Customs25 265 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 and Border Protection folks on2 identifying flights that were coming in3 from Mexico and taking necessary4 precautions, again, to spread the word5 that the best way to prevent the disease6 from spreading any further is just7 through good hygiene practices -- washing8 your hands, coughing into a tissue and9 disposing of it.10 So we're keeping in very close11 contact with them, as we could for any12 other possible pandemic that would occur,13 being an international gateway company --14
Do you15 anticipate in the near future investing16 in that type of equipment?17
I believe that if it18 proves to be cost-effective and the19 equipment that we would use, if we20 weren't able to get it from one of the21 federal agencies such as the CDC that22 might have it, to be able to be used --23 (Timer bell rings.)24
We do have a CDC25 266 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 officer that resides at the Airport, and2 so, we can confer with them to see if3 that would be use in the future.4
My final5 point and question, and this comes from6 Councilwoman Blondell Reynolds-Brown.7 She has informed me that you are a leader8 in greening and recycling and wanted you9 to expound upon that.10 And, by way of point of11 information, is Dennis Waller with you at12 the Airport?13
Then that16 explains the participation numbers. He's17 a former Minority Business Enterprise guy18 and a deputy over there, and he had a19 real hard boss when he was there. So I20 understand why you achieved such good21 numbers.22
You can25 267 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 answer the recycling and greening2 question.3
Well, as in my4 testimony, we do have a public-venue5 recycling program underway, with over 506 receptacles throughout the Airport.7 We are working on several8 different environmental initiatives that9 include the use of electric ground10 service equipment, going after federal11 and state grant dollars to be able to12 purchase the equipment to put it at the13 Airport.14 We're work on LEEDS-initiatives15 buildings that we are currently throwing16 into design to make sure that they are17 LEEDS-certified moving forward.18 And I don't want to take all of19 it, but if you would like further20 information, our Deputy Director for21 Planning and Environmental Stewardship,22 Calvin Davenger, is here, and he actually23 spearheads all of these initiatives for24 the Airport and has done a wonderful job.25 268 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 If you'd like to hear from him --2
Yeah, I3 would, but just -- and I'm going to let4 my other colleagues take this, but how do5 we compare with other airports in that6 regard?7 So I'll take that answer from8 whomever.9
Okay. I'll let10 Mr. Davenger respond to that.11 I think that we're doing very12 well compared to other airports these13 days.14
Thank you,15 Madam President.16 COUNCIL PRESIDENT VERNA:17 You're welcome.18 (Witness comes forward.)19
Good afternoon.20 My name is Calvin Davenger. I'm the21 Deputy Director for Planning and22 Environmental Stewardship at the Airport.23 And, Councilman Jones, I'll be24 happy to fill you in on what the Airport25 269 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 is doing and how we compare to other2 large-hub airports.3 I recently returned from a4 conference in L.A. on climate change.5 And at these various conferences, we do6 get a sense for how we're doing in7 relation to other large-hub airports that8 have the same issues that we have.9 To start, though, the Mayor10 recently introduced his Green Works11 Philadelphia Plan, and we have any number12 of initiatives either in place or are13 being planned or will soon be in place14 that certainly are parallel what I tend15 to term his "5 Es" that were mentioned in16 his plan.17 And as it relates to that, the18 first E he talked about was energy. And19 when it comes to energy, we look at how20 we can best reduce the demand or reduce21 the demand for energy.22 And what we have done there is,23 we're -- we have an RFP which will be24 released very soon for an energy audit.25 270 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 And the goals of an energy audit would2 be, first of all, to parallel the City's3 plan for climate change as it relates to4 a 5 percent reduction in energy by 2010,5 another 10 percent by year 2015.6 And also, there will be7 measures, which will be introduced, to8 conserve energy, in the hopes of helping9 to offset some of the deregulation of10 energy, which is due to happen in the11 year 2011.12 Mark, Mr. Gale, has already13 mentioned the fact that we're tied to14 leadership in energy and environmental15 design, LEEDS. We are members of the16 U.S. Green Building Council.17 We also have introduced a18 program for our tenants for LEEDS,19 Commercial Interiors, and USAirways has20 taken that a step further; they have a21 maintenance repair facility that's being22 constructed which they intend to have as23 a LEEDS gold facility.24 Mr. Gale had mentioned our25 271 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 upcoming Terminal F project. That is2 being legislated to be, at minimum, a3 LEEDS silver facility.4 When it comes to alternative5 energy, we're going to continue our6 renewal of wind energy purchase at the7 level of 8 percent.8 We're looking at solar power.9 We're looking at a pilot10 project at our vehicle storage facility11 And we're also considering or12 looking at the possibility of hot13 water -- solar hot water at our new14 international terminal, Terminal A, if we15 can find space to place collectors on the16 vicinity -- in the area of the roof to17 make that happen.18 When it comes to environment,19 which is or carbon footprint, greenhouse20 gas emissions, we are undergoing a21 greenhouse gas inventory right now.22 We've started it, but since we've begun,23 we have new resources that have come into24 play. The Delaware Valley Regional25 272 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 Commission has since released their2 greenhouse gas report, so we're looking3 at that.4 Also, the Airport Cooperative5 Resource Program, which is part of the6 Transportation Resource Board, they have7 released a document that outlines how8 airports need to accomplish this task, so9 we'll go back and review that.10 Also, airline conservation as,11 Mr. Gale mentioned, with regard to12 converting diesel ground support13 equipment to electric equipment. We have14 a program now where about one-third of15 the inventory of the Airport's airlines'16 ground support equipment could possibly17 be switched over to electric, thus18 eliminating, again, additional greenhouse19 gas emissions.20
I just want21 to say, last year, when you testified,22 you said in earnest that you were going23 to start to look at all of the greenhouse24 and green carbon reduction methods that25 273 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 the Airport could have. You've been2 extremely busy over the last year, and I3 want to compliment you, the Airport, and4 Deputy Mayor Cutler for your work on5 that. And that is progress.6 So I appreciate the update.7
Thank12 you.13 The Chair recognizes14 Councilwoman Tasco.15
Good16 afternoon, gentlemen, and I know you've17 been here a long time. Thank you so much18 for your good work that you're doing at19 the Airport.20 I just have one question I'm21 curious about. On , Section 19 of22 the budget, under your, I guess, your23 contractors, contracting out services,24 you have one line item that I'm curious25 274 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 about.2 You have a contract with the3 Mental Health Association of4 Pennsylvania. Would you explain that?5
Yes, Councilwoman.6 I'll let Tom take the question.7 He's been handling it.8
Tom Becker,10 Assistant Director of Aviation.11 Councilwoman, that contract's12 actually with the Health Department, but13 the Airport -- the Aviation Fund has14 funded outreach services at the Airport15 since January of 2007. And we use a16 contract with the Mental Health17 Association of Southeast Pennsylvania to18 send outreach workers to the Airport.19 It was five nights a week, now20 it's going to be seven nights a week --21 to -- they've been out there for the22 homeless. We've gotten pretty good press23 out of it.24
Mm-hmm.25 275 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1
It's been a2 combined effort with the Office of3 Behavioral Health, Dr. McGuire, Dainette4 Mintz's staff, and Airport Police and5 Operations to take an approach to do6 outreach before -- we had intended all7 along to -- there's a regulation on the8 books that to be in the terminal9 buildings between midnight and 5, you10 need to be a ticketed passenger or an11 employee.12 So since, I guess, January of13 2007, we've had the outreach workers14 there. And it's been a very successful15 program, and we've been able to do a16 soup-to-nuts approach, where the outreach17 workers can place the homeless at the18 Airport in shelters or get the services19 that they need.20 So it's very successful, and21 we're going to continue that program on22 in 2010.23
Thank you.24 Thank you, Madam President.25 276 5/4/09 COMM. OF THE WHOLE - FISCAL '10 BUDGET1 COUNCIL PRESIDENT VERNA:2 You're welcome.3 The Chair recognizes4 Councilwoman Sanchez.5
Thank6 you, Madam President.7 We were having a sidebar here8 with Councilman Green because I was9 trying to understand how the police10 officers at the Airport are paid for.11 And I'm aware that you fully pay them12 through your Aviation Fund, so none of it13 is General Fund money, right?14