Committee Hearing, February 9, 1999

COUNCIL OF THE CITY OF PHILADELPHIA CAPITAL PROGRAM & BUDGET HEARINGS BEFORE THE COMMITTEE OF THE WHOLE - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, February 9, 1999 9:30 a.m. - - - Bill 990021 - An ordinance to adopt a Capital Program for the six fiscal years 2000-2005 inclusive. Bill 990022 - An ordinance to adopt a Fiscal 2000 Capital Budget PRESENT: COUNCIL PRESIDENT ANNA C. VERNA, Chair COUNCILWOMAN AUGUSTA A. CLARK COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN DAVID COHEN COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN JAMES F. KENNEY COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILWOMAN MARIAN B. TASCO COUNCILMAN ANGEL L. ORTIZ COUNCILMAN FRANK DICICCO COUNCILMAN BRIAN J. O'NEILL COUNCILMAN RICHARD T. MARIANO COUNCILMAN W. THACHER LONGSTRETH COUNCILMAN FRANK RIZZO CHARLES MCPHERSON, Chief Financial Officer - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2 2/9/99 WHOLE COMM. - Budget Hearings I N D E X Dean Kaplan, City's Budget Director . . . . . 5 Barbara Kaplan, Executive Director. . . . . . Planning Commission 6 Emily Bittenbender, Director, CPO . . . . . . 24 Lawrence Moy, Streets Commissioner. . . . . . 42 Pete Hoskins, Philadelphia Zoo. . . . . . . . 68 Joseph Resta, First Deputy Director, CPO. . . 83 William Hankowsky, President, PIDC. . . . . . 94 Thomas Nestel, Deputy Police Commissioner . . 111 Louis Applebaum, Procurement Commissioner . . 167 Charles Isdell, Acting Director of Aviation 184 Vincent Costello, Director. . . . . . . . . . 199 Comm. and Engineering Denise Goren, Deputy Mayor, Transportation. . 209 Eric Iffrig, Director . . . . . . . . . . . . 222 Planning and Construction, Recreation Depart. Dina Mendros, Member. . . . . . . . . . . . . 226 Philadelphia Community Access Coalition, Gretchen Clausing Member. . . . . . . . . . . 239 Philadelphia Community Access Coalition, Karen Talarico, Executive Director. . . . . . 242 Friends of the Free Library John Christmas, Esquire, Law Department . . . 248 3 2/9/99 WHOLE COMM. - Budget Hearings P R O C E E D I N G S

Good morning everyone. Sorry for the delay. The Committee of the Whole public hearings are ready to begin on Bill No.'s 990021, 9900022, 99023, 990024, 990025, 990026, 990027, and 990028. I would ask Mr. McPherson to please read the titles of the bills. We'll take testimony today on Bill No. 990021 and 990022.

Bill No. 990021, an ordinance to adopt a Capital Program for the six fiscal years 2000-2005 inclusive. Bill No. 990022, an ordinance to adopt a Fiscal 2000 Capital Budget. Bill No. 990023, an ordinance adopting the Operating Budget for the Fiscal Year 2000. Bill No. 990024, an ordinance amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Privilege taxes," by decreasing the rates of the tax based upon gross receipts. Bill No. 990025, an ordinance amending Chapter 19-1500 of the Philadelphia Code, entitled "Wage and Net Profits Tax," by decreasing the rates of the tax. 4 2/9/99 WHOLE COMM. - Budget Hearings Bill No. 990026, an ordinance amending Chapter 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending Section 5 19-1801 to further authorize the Board of Education of the School District of Philadelphia to impose a tax on real estate within the City of Philadelphia. Bill No. 990027, an ordinance amending Chapter 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1806 to further authorize the Board of Education of the School District of Philadelphia to impose a tax on the use or occupancy real estate within the School District of Philadelphia. Bill No. 990028, an ordinance amending Chapter 19-1800 of the Philadelphia Code, entitled "School Tax Authorization," by amending Section 19 19-1804 to further authorize the Board of Education of the School District of Philadelphia to impose a tax on net income from real property and tangible and intangible personal property of residents of the School District of Philadelphia.

Thank you. I would also like the record to reflect that a 5 2/9/99 WHOLE COMM. - Budget Hearings quorum is present. Good morning.

Good morning. And thank you, Madame President. This morning's panel is here to testify on the FY 2000 Capital Budget Proposal and the Proposed FY 2000-2005 Capital Program. I'm Dean Kaplan, the City's Budget Director. With me, to my immediate left is Emily Bittenbender, the Director of the Capital Program Office. To her left is Barbara Kaplan, the Executive Director of the City Planning Commission. And to her left is Ernie Leonardo, Chief of the Comprehensive Planning Division within City Planning. As is our tradition, City Planning will make the initial presentation today, and then Capital Program will follow with some additional detail. With that, I turn it over to Barbara Kaplan. (Councilman Cohen addresses Council President Verna off-mike.)

I'm sorry, Councilman, I can't hear you. 6 2/9/99 WHOLE COMM. - Budget Hearings

Written testimony was filed with Council on the normal schedule. I believe it should be available and hopefully here.

Extra copies are being distributed. Councilman Kenney, would you approach the table. (Councilman Kenney assumes the Chair.)

Good morning, Council President Verna and members of Council. I'm pleased to present to City Council the 2000-2005 Capital Program and the 2000 Capital Budget, as recommended by the City Planning Commission. And I'm also pleased to be able to show some of the progress we have made using capital funds and will continue to make toward the renewal of our physical plant. This is a $3.7 billion Capital Program.

Miss Kaplan, I'm sorry, you haven't identified yourself for the record.

Barbara Kaplan, Executive Director of the Planning Commission. I thought 7 2/9/99 WHOLE COMM. - Budget Hearings Dean had identified me; that's why I skipped it. This is a $3.7 billion Capital Program that builds on the initiative that began at the beginning of this Administration of substantially increasing the rate of investment in the City's capital stock of buildings, streets, recreation centers, libraries, and the numerous other facilities which serve our citizens. There are 156 projects in the six-year program, and 129 of these are proposed for the budget year. Our sustained fiscal health allows us to present a Fiscal 2000 Capital Budget that requires $125 million in new tax-supported loan funding and $49 million in reallocated funds previously borrowed through PICA. This investment is supplemented by self-sustaining federal, State, and other non-tax-supported funds, resulting in a total proposed budget spending of $845 million -- an increase of more than $100 million over last year's appropriation. My testimony will focus on FY 2000 since the budget year funding represents an actual appropriation and is usually subject to minimal changes throughout the year. The projects and 8 2/9/99 WHOLE COMM. - Budget Hearings priorities for the next five years of the program will be revisited next year and each year thereafter and may be expected to change significantly. (Ms. Kaplan begins to present slide show.)

The first category of projects is the neighborhood improvement projects. This is about percent of the budget year 11 funding. And we focus here on basic renewal of 12 community facilities, such as streets, water 13 facilities, recreation, fire, police, library, and 14 health facilities. 5 million for site improvements in support of housing initiatives to be undertaken by both of the Office of Housing & Community Development and the Philadelphia Housing Authority. This is the Richard Allen Holmes public housing development in the eastern part of the North Philadelphia. And this is kind of the before, and this is the under-construction. And 9 2/9/99 WHOLE COMM. - Budget Hearings actually having been out there myself, this slide really doesn't do it justice. This housing development is really going to look like any garden apartment development that you would see in a suburban community. You'll also notice a widened and newly-constructed street, and that's where the capital funds are used to support the federal dollars that we get for the housing rehabilitation. This is one of a number of public housing developments that are going to be either totally rehabilitated -- as is the case here -- or demolition and a reconstruction, as is the case with Schuykill Falls and the Martin Luther King project and Southwark in South Philadelphia. So we're really remaking our stock of public housing, and we're using capital funds to replace the infrastructure for the next 50, 100 years. We also use some of the site improvement money for other neighborhood housing developments. This one happens to be in North Philadelphia, at 17th and Susquehannah, where we put in new curbs, sidewalks, street light when we do intensive rehabilitation or new construction in 10 2/9/99 WHOLE COMM. - Budget Hearings a neighborhood. And this one is in West Philadelphia, at 40th and Parrish. We've been embarking on major renewal of our health centers, trying to make them more attractive, trying to make them more like private-sector doctor's offices. This is the health center for District 4, at 4400 Haverford Avenue. It's an example of what we've done to the outside on some of our health centers to make them handicap-accessible, to make them more attractive and welcoming to the public that uses them. And this is an example of the interior at District 10 in the 2200 block of Cottman Avenue in the Northeast. Also in the Northeast -- in fact, right next door to the health center -- is the regional library for the Northeast. And this has received major renovation under the library's Changing Lives Campaign, where they have run a tremendously successful capital campaign, and the City has provided $5 million a year for five years. In fact, this year 2000 program will be the end of this five-year program to restore all of the 11 2/9/99 WHOLE COMM. - Budget Hearings branch libraries. This is in South Philadelphia, the Passyunk branch, in the 1900 block of Shunk Street. The outside. The inside. One of the main features of this branch library program has been a tremendous upgrading of the computer infrastructure in all the branch libraries, with a special focus on the children's reading areas and computer areas. And this is the Southward branch in the 900 block of South Seventh Street, also the children's reading area. We also have provided $11 million in the Recreation Department for the upgrading of neighborhood recreation facilities. This is at 11th and Mifflin, an example of new play equipment in a tot lot. And we've also been working on renewing our swimming pools. We have more than 80 swimming pools under the jurisdiction of the Recreation Department. This is at 33rd and Diamond, at the Mander Rec Center. This is an example of a rehabilitated pool. A lot of our pools were built in the 1960s and '70's, and they need major 12 2/9/99 WHOLE COMM. - Budget Hearings rehabilitation.

This is the (unintelligible) fields along the Parkway, at 23rd and the Parkway, and we have money in there for restoring the fields for the surrounding sidewalk and landscape and for new play equipment. This is under the jurisdiction of Fairmount Park. Also under the jurisdiction of the Park, the mouth of the Pennypack ball fields were completed in 1997. )

This is the only toilet facility right now, and this field is used by hundreds of people, this area. And we have money in the program. Unfortunately, this is a very expensive project because we have to bring in the water AND sewer lines from State Road, and I think it's about a half a mile. So this is going to cost us about $900,000 to equip this area with bathrooms, mainly because of the cost of bringing in the lines to the area. In economic development, 51 percent of 13 2/9/99 WHOLE COMM. - Budget Hearings the budget year funding from all sources is being dedicated to this area. One of reasons that it is such a large percentage of the total is that we have a major program underway at the airport, about $347 million in the budget year alone. We're going to be building three new passenger terminals: Terminal 1, to be used for international passengers; Terminal F, to provide more modern service for commuter aircraft; and Terminal G, which is for domestic flights. In addition, we're also expanding Terminals D and E, to provide additional gates. We added 3,000 workers at the airport last year. As a result of this expansion, we've now gone from being the 24th busiest airport in the country to the 21st busiest airport, and we continue to find new markets. In the area of tourism and hospitality, we're making some repairs to the Chinatown Gateway, which has been in place for about 15 years and needs some restoration. This is an example at Fifth and Lehigh of some of our site improvements that go into neighborhood commercial strips. This year, we're 14 2/9/99 WHOLE COMM. - Budget Hearings pleased to have more than doubled the amount of money that we're allocating for neighborhood commercial strips. 5 million, which is more than twice as much as we had last year. This is in Germantown Avenue and Armat, which is another area where we will be making site improvements in a commercial area. And this is in South Philadelphia -- East Passyunk Avenue, where there will also be streetscape improvements. And South Street, west of Broad. These are just a few examples. Some of these will be started with funds that we already have on hand from previous years, and others will use funding from what is newly allocated. This is in North Philadelphia, at Sixth and Berks. This is the Gateway Shopping Center that is being developed by APM, the largest community development corporation in the City. And this also received site improvements money from our neighborhood commercial center line. This should be opening, I think, pretty soon, this spring. 15 2/9/99 WHOLE COMM. - Budget Hearings And this is an example of some of the improvements at the airport, with the new express walkway. In addition to adding facilities, we will have also been improving the facilities we have, making them more attractive, more comfortable. We have the Marketplace Mall that opened in the past year and the express walkway. Also down in the airport, this is another place that we've used money for site improvements through PIDC to provide the street infrastructure to make possible the expansion of the PNC facility in that vicinity. And this is on American Street. This is an example of how we used some money from the Capital Program in combination with funding that we get from the State and the federal government for brown fields remediation. This was a site that was seriously contaminated. The funds were used for environmental remediation, and it's now a site for the relocation expansion of Asia Foods. Infrastructure renewal is an area where we provide funding for those facilities that are used by everybody in the city. They're not necessarily in anybody's neighborhood, but 16 2/9/99 WHOLE COMM. - Budget Hearings nevertheless, they're important to everyone. We have money in there for the continued restoration of the Manyunk Canal. " Some of the money will be used to make this area safer and more accessible for all the people who want to go fishing here.

This is the view of the middle area, where you can see how the water is stagnant. One of the goals of this project is to get the water moving again so that we don't have a lot of algae and we don't have an unpleasant odor. And this is at the lower independent of the canal. The Art Museum. We've been involved in a major program to renew the landscape and the setting for the Art Museum. This is an example of the new access road that was developed with capital funds. And the first phase of the landscape project was -- this was part of the first phase of the landscape project, which was completed. The second phase is in the budget for the current year, which is the rebuilding -- 17 2/9/99 WHOLE COMM. - Budget Hearings replacement really -- of Eakins Plaza at the front, which is a gathering place for a lot of events. And then there's money in the coming next two years of the program for later phases of the landscape renewal. This is behind the Art Museum. This is the water works. This is about a $5 million project. Most of this is State money. This is the construction. This is at the bottom of that same site, where we've put in an application for federal transportation enhancement money, which, hopefully, we'll be successful at receiving in order to put a boat dock here. Also in Fairmount Park is the Ohio House, which is an example of one of the Park House mansions. People think about the park as essentially an outdoor experience, but the park is really the caretaker for dozens of historic structures that need a lot of care and renewal. We have over $1 million in the budget year in Fairmount Park for the restoration of historic structures located within the park. At the Zoo, this was the Primate House 18 2/9/99 WHOLE COMM. - Budget Hearings under construction, which is scheduled to open on July 1st. We're all looking forward to that. And then we have a lot of other projects at the Zoo that are not so glamorous. This is in the Reptile House; this is sort of the front of the main show that everybody sees. This is the back-of-the-house function, where we have the kind of basic infrastructure at the Zoo that needs constant upgrading. This is where we're going to replace a tank and the filtration system that provide the water for the Reptile House. We also have another project at the Zoo that will pay for the demolition of the monorail and deteriorated cabling. The Zoo needs the space that was formerly occupied by the monorail in order to undertake other projects and to install a modern communications network and other pathway improvements. We have about $3 million overall in the program in the budget year for Zoo improvement projects. A major part of our infrastructure renewal on a continuing basis is the resurfacing of streets. 5 million in the budget 19 2/9/99 WHOLE COMM. - Budget Hearings year, which is a substantial increase over the million we had previously for the continued 4 renewal and resurfacing of neighborhood streets. 5 This is in addition to the money we 6 have for the major arterials that are on the 7 Federal Aid to Highway System, where they're 8 eligible for federal and State funds and where the 9 City's share of the cost is much smaller. These 10 are the local streets where we pay the full cost 11 of the restoration. 12 The Streets Department has been using 13 some new methodology where they actually take up the existing pavement; and through a process involving heat and fire, are able to reuse that material and lay it back down. It seems to be a very cost-effective technique. " There's also much less disruption to the traffic network. Our bridges also need constant work. This is the Strawberry Mansion Bridge of the first phase which is underway. 5 million. Phase II will be another $3 million. This is the work in progress. This is Chestnut Street, which, I think 20 2/9/99 WHOLE COMM. - Budget Hearings we are all looking forward to see reconstructed and reconfigured.

This is the sorry state of some of the paving material. The first phase will begin in early spring, and the whole thing should be completed by early summer of 2000 -- coincidentally, in time for the Republican Convention. This is a $15 million project. This is the Frankford Transportation Center at Bridge and Pratt. This is the current condition of the outside, of the inside. And this is the future. This, I think, will be a truly monumental transportation improvement -- not only for the SEPTA network and for the people who use it, but I think it's going to make a major statement and be a major boost to economic development in this area of the city, in the Frankford area. This is going to get started in the current year. This is the Erie Torresdale Station, which has just been finished for $13 million. And this is the Manayunk Station, which is just about complete. This was a major project involving not only the station but also the Crescent Street viaduct and the bridge over the 21 2/9/99 WHOLE COMM. - Budget Hearings Schuykill River. This was a $10 million project altogether. On the PATCO line, the DRPA is refurbishing the station. This is an example of the 12th and Locust station. The City is paying for the areas that are owned and maintained by the City, which is the area outside of the turnstile. And we have about $1,300,000 in the budget year for this -- about 600,000 of which is City money; the rest is federal money. There's also a major project that SEPTA's undertaking to redo the viaduct -- to rehabilitate the viaduct and the bridges that lead from Suburban Station out to 30th Street. This will be a $42 million over the next few years. In the area of improving government effectiveness, a lot of this are projects that take advantage of modern technology and new techniques to make government more effective and more efficient. This is the Wister School at Eighth and Poplar, which was vacated by the School District -- oh, I think at least 15 years ago. And this is going to be redeveloped for forensic labs and 22 2/9/99 WHOLE COMM. - Budget Hearings offices of the Scientific Services Division of the Police Department. 6 million project to be funded in the budget year. This is the Geographic Information System. We have funding here both in the Mayor's Office of Information Services and in the Records Department, and there's also funding in the Streets Department as we continue to develop this geographic information network so that it's available and accessible to more and more City departments. In the area of health and safety will be about $7 million in the budget year. We're including basic funding for improvements to the City's elderly care facilities at Riverview and the Philadelphia Nursing Home and the City's homeless family shelters. We also provide money here for underground tank removal and replacement for hazardous material abatement and for handicapped accessibility. And we also have one kind of special project that we've been looking forward to for a long time, which is, we've allocated $1 million to replace one of the City's fire boats. This one is 23 2/9/99 WHOLE COMM. - Budget Hearings 50 years old. And this is kind of a custom -- you can't just go out and buy one of these; this is a custom-designed effort. I tried to give you some of the highlights of the budget. I'll be available, as will members and heads of other City departments to respond to more detailed questions. I would just like to say in conclusion that the Planning Commission believes that this recommended program and budget will allow us to continue on the course that we laid out at the beginning of this Administration to revitalize the City's neighborhoods and its economic base by continuing to renew our physical plant.

This Capital Program provides for a high level of investment in Philadelphia's future; and at the same time, strategically allocates our limited resources so as to ensure the City's capacity to effectively and efficiently deliver needed public services. Thank you.

Thank you very much for your testimony. At this, we'd ask Miss Bittenbender to give her testimony and then open 24 2/9/99 WHOLE COMM. - Budget Hearings up the floor for questions. (Emily Bittenbender comes forward.)

Please proceed.

Good morning President Verna and members of City Council -- or Councilman Kenney, I should say. My name is Emily Bittenbender, and I'm the Director of the Capital Program Office for the City of Philadelphia. And I'm here today to present our request for our Operating and Capital Budgets for Fiscal Year 2000. The request includes an appropriation of $2,450,345 in the Operating Budget, with an additional request of $6,146,000 in the Capital Budgets. The ongoing operations of the Capital Program Office are supported by both budgets because accounting rules only permit certain types of costs to be charged as capital. 3 million for the purchases of City services, including: 25 2/9/99 WHOLE COMM. - Budget Hearings Design services to support the CPO's yearly general requirements contracts. These requirements contracts are used for the prepare and maintenance of City buildings; Cost estimating services that support the yearly Capital Budget requests; Space planning services to support the City's real estate consolidation efforts; Employee development services; Staff training, software, and maintenance required to support the PEGA System IT initiative for the enhancement of our budget and project management capabilities; And $110,000 for materials, supplies, and equipment upgrades. 3 million -- attributable to a shift in funding for field tank compliance projects that are now contained in the Capital Budget of the Office of Fleet Management. The CPO Fiscal Year 2000 requests includes dollars to support 79 positions, as well as the cost for consultants to provide technical 2/9/99 WHOLE COMM. - Budget Hearings assistance to our five project-management teams. These teams oversee all capital efforts, from budget development through construction, for public, safety, health and human services, criminal justice, Fairmount Park, as well as the Center City government buildings that are leased. $250,000 for environmental remediation involving asbestos abatement. $100,000 to continue the City's efforts to comply with the Americans with Disabilities Act. By approving the appropriations that we are requesting today, City Council will assist the Capital Program Office in its mission to maximize the value of taxpayers capital investments in public facilities through careful budget planning, proper financial controls, and informed, timely, and cost-effective project management of design and construction. Prior support of the Council and the Administration has afforded the CPO an opportunity to realize the ongoing achievement of the following goals: The CPO has completed 300 construction 27 2/9/99 WHOLE COMM. - Budget Hearings projects, equaling over $450 million since its creation in August 1996. At the beginning of Fiscal Year 1998, there were 137 backlog projects funded prior to Fiscal Year 1997. To date, the CPO has completed 124 of these backlog projects and fully expects to complete the remaining by the end of the Fiscal 9 Year. 10 The Capital Project duration has been 11 reduced from an average of 938 days in Fiscal Year 12 '96, to the current Fiscal Year '99 average of 13 477 days. With continued support from this Council, the CPO could realize its ultimate goal of completing our capital projects within the fiscal year that they are funded. The CPO is dedicated to keeping control of its yearly design costs, reducing the time it takes to conform professional services contracts. Prior studies indicate that the average conformance duration was 387 days. The CPO now averages 33 days to conform a contract. And by promptly paying our design consultants' invoices, we significantly reduced the fees of our professional design services on capital projects. 28 2/9/99 WHOLE COMM. 9 in Fiscal 6 Year '99.

7 The CPO has consistently maintained its 8 commitment to the City's anti-discrimination 9 policy by increasing the percentage of minority 10 business participation on our professional 11 services contracts -- from 17 percent in Fiscal 12 Year '97 to 34 percent in Fiscal Year '98 to 39 13 percent in Fiscal Year '99. In addition to its management of capital projects, the CPO also has the responsibility to manage the design and construction and employee relocation into consolidated leased office space. The CPO has successfully managed the movement of 3,467 employees into four leased facilities -- located at the One Parkway Building, the Land Title Building, 990 Spring Garden, and 1101 Market Street. In the two years since this effort began, the CPO has managed over 635,000 square feet of leased space consolidation projects. And this is 29 2/9/99 WHOLE COMM. - Budget Hearings on top of the capital projects. The CPO has initiated the design of a new information technology system named "PEGA System" that will combine the project management and budget management functions of the Capital Program Office into a single integrated user-friendly computerized environment. PEGA System will allow for the improved operation efficiencies, enhanced tracking of work flow and process, timely and consistent reporting, and will ultimately permit the CPO to better manage the City's projects and funds. In closing, I would like to state that the Capital Program Office has worked diligently to improve the process by which capital projects are accomplished in the City. We look forward to living up to the expectations of this Council in the next millennium. Our Fiscal Year 2000 performance goals, which are attached for your information, clearly reflects the emphasis and the mission with which we have been entrusted. Thank you, and I will be happy to answer any questions. 30 2/9/99 WHOLE COMM. - Budget Hearings

Thank you very much for your testimony. As per the Council President's instructions, we will begin questioning of these witnesses on a five-minute interval. And the Chair recognizes Councilmember Nutter.

Thank you, Mr. Chairman. Miss Kaplan, from reading through your testimony, I'd like to ask you a couple questions. In the first line, you say, "I am pleased to present to City Council the recommended 2000-2005 Capital Program and the 2000 Capital Budget." Can you -- what's the -- in that context, what's the definition of "recommended"?

It's being recommended to the Mayor and to City Council by the Planning Commission.

Okay.

Actually, it's already been recommend to the Mayor, and the Mayor is sending it here.

Okay. And can you explain the process that the Planning Commission 31 2/9/99 WHOLE COMM. - Budget Hearings utilizes to develop this recommended program and budget?

Well, the process begins in the early fall. The Finance Department puts out a budget, calls all the departments, and asks them to submit their requested projects for the budget year and for the six-year program. We review all of those requests at a staff level at the Planning Commission. We have a meeting with every sitting -- with every City department that has made a budget request. Typically, these meetings are about an hour in duration. And in addition, the meetings are run by the staff of the Planning Commission. I'm present at all of these meetings. I chair each of these meetings. We also have Emily Bittenbender and her staff, members of her staff present at these meetings. And most of the time, we also have the Budget Director and people from his staff present at these meetings. And that's an opportunity to review every single request that's made by every department, to ask a lot of questions about each 32 2/9/99 WHOLE COMM. - Budget Hearings request, to understand why they want the money, what they would do if they were given the money, how it relates to money that may have previously been appropriated for a similar type of project or a continuing project, how this fits into the overall picture for that department, sometimes how one department's projects relate to another department's projects in cases where that's relevant. We always get substantially more in terms of requests than we do -- than we have borrowing capacity. But we attempt to try to come up with what we call "a balanced program," where we have -- there's a geographic balance, there's a balance among departments. We try to meet the most critical needs. I mean, if roofs are falling in and heating systems are failing, those things certainly get addressed. We're always, you know, mindful of the opportunity to leverage other funds. If we know that there are federal funds coming, as in the case with SEPTA, and we need a relatively small match to secure a very large amount of federal and 33 2/9/99 WHOLE COMM. - Budget Hearings State funding for SEPTA projects, those projects do get priority. I mean, there are very few projects that SEPTA requests that get cut because I think leverage this year, in terms of City funding verses funding from State and federal sources is about 27 times the City money that goes in. So those are some of the considerations that go into the staff. Then coming up with a program that we recommend to our Commission, and we usually discuss the program with the Commission at least three times during the course of -- the staff will discuss it with the Commission at a public meeting at least three times in the preparation of the budget. And once we have --

Is there kind of a first-cut list made to determine if you have more demand than you have dollars to supply which projects are more than likely going to be in and which projects are going to be out?

Well, there's several cuts. I mean, you know, to try to get it down where we want it. We give the departments an 34 2/9/99 WHOLE COMM. - Budget Hearings opportunity to review what we initially think should be the cuts. We'll send that back to the departments in usually early December and give them a week or so to say, Look, this is the way we see your budget. You know, let us know if you can't live with that, you know. And we do, you know, kind of take appeals from the departments.

And where is the City Council in this part of the process at that point in time?

Well, the Budget Director meets with staff of City Council and sometimes with individual members of City Council to determine, you know, some of their projects and preferences. There's also money allocated to City Council that each District Councilperson has an opportunity to allocate to individual projects. Mostly, those are -- for the most part, those go to projects in the Recreation Department, but some Councilpeople allocate those funds to other projects and other departments as well.

All right, okay. I know I just got the beep. 35 2/9/99 WHOLE COMM. - Budget Hearings I'm trying to figure out where the two projects that I expressed the most interest in to the Department and to the Administration representatives, where they were in the book. Actually, they're not in the book, so I'm trying to figure out what happened to them, but I'll come back.

Thank you very much.

Thank you.

The Chair recognizes Councilmember Blackwell.

Thank you. I wanted to ask, you know, every year -- in fact, I ran into Audrey Johnson Thornton with regard to Belmont Mansion. I'm concerned about that. Every year we come, and every year they still seem to be threatened with trying to force them to move, etc. even though, in spite of their contract with the City as one of the Fairmount Park homes. So I'm asking that also look into that and report back. And also the Paul Robeson House. That is one of the newer exciting buildings and homes in our city, and they've been trying to get 36 2/9/99 WHOLE COMM. - Budget Hearings on the register so that when people come to the City, they could --

I didn't hear the second one.

The Paul Robeson House.

Oh, okay.

And they're trying to get on the City's register as one of the historic sites that people come to visit. And also, they're still not -- they're newer, one of the newer historic homes, but they're still out of the loop. I mean, they do more bake sales and more sale sales and more begging sales than anybody I know. We would absolutely like to have them mainstreamed into the City's historical sites and ask that you would in both areas look into those and get back to us. Thank you.

Thank you very much. The Chair recognizes Councilmember DiCicco. 37 2/9/99 WHOLE COMM. - Budget Hearings

Thank you, Mr. Chairman. Good morning, Miss Kaplan. Miss Kaplan, good morning. Last year when you were here in front of Council, we had discussed some resources going into the Avenue of the Arts -- North Broad Street and South Broad Street. I think last year, it was something in the range of about $5 million for the North Broad Street streetscape improvements. We never came to any -- I don't think we identified any dollar amount for the south of the Avenue of the Arts -- meaning from Washington Avenue, going south to Oregon or Patterson. But you had indicated at that time that that would be something that we would be looking into. Is there anything in the budget this year for that streetscape improvement?

No, there isn't.

Is there any reason why? I mean, because we did discuss this last year. I think we looked at some -- what you originally said last year was that you were looking into maybe not a full streetscape 38 2/9/99 WHOLE COMM. - Budget Hearings improvement, but to identify certain high-traveled intersections -- Passyunk Avenue, Washington Avenue, Snyder Avenue.

It wasn't requested by any department in the budget process, so it was not included. It's possible that some of the money that's allocated for neighborhood commercial strips could potentially, you know, be devoted to that. But there wasn't a specific request to do that.

Again, I was under the impression from our conversation last year that even though we had not allocated a specific dollar amount to the streetscape improvement on South Broad Street, given the fact that we're investing about 5 million on the north side, on North Broad Street, that we would look into dedicating some funds. I had a conversation not too long with Denise Goren. She's shaking her head yes. What is the process now for us to see if we can get some money for that streetscape improvement? What do we need to do? When I say "we," I'm obviously talking about myself and 39 2/9/99 WHOLE COMM. - Budget Hearings Councilwoman Verna, because Broad Street is the boundary between the two districts.

Well, funds could be reallocated from another project for that, or some of the money that you allocated from your District Council appropriations could go toward that.

Aside from my District Council programs, where else would I be able to get that money reallocated from?

Over here. (Laughter.)

Well, I would say probably, you know, that some of the money from the neighborhood commercial strip line would probably be the best bet. It might be possible -- I don't know this without looking at it -- but, you know, I think Broad Street's eligible under the Federal Aid Highway List. Whether there's some money in the Streets Department under that line item, that could also go toward that; I'd have to discuss that -- well, we could discuss that with the Streets Department.

So there is no 25 plan, though. 'Cause I was under the impression, 40 2/9/99 WHOLE COMM. - Budget Hearings again, when we spoke last year that the Planning Commission was looking into identifying particular intersections and coming up with some sort of a streetscape plan for those intersections at the very least. I mean, I had talked about additional lighting.

I guess there was a misunderstanding. I did not realize that that was something that you had expected the Planning Commission itself to take a look at. I thought that that would be something that either the Commerce Department or the Streets Department would do or would request.

Well, the Streets Department has come up with some budget at least on the additional street lighting, but as far as the other improvements -- whether it's planters, any other kind of more elaborate kind of streetscape improvement -- I was under the impression -- again, it might have been a miscommunication between you and I that that would have been something that would come out of the Planning Commission. But that not being the case, I guess we 41 2/9/99 WHOLE COMM. - Budget Hearings need to talk further on this.

Okay.

Okay, thank you.

Thank you very much. The Chair recognizes Councilmember Tasco.

Thank you very much. Good morning.

Good morning.

Talking about street lights, some years ago, there was a plan developed to increase the lighting on all of the street lights. Is that plan still on the table? I mean, is it still ongoing?

Perhaps somebody should speak to that from the Streets Department because I'm not --

Well, they can answer it later when they come up.

We did have money in the program to --

It was supposed to be a ten-year program. 42 2/9/99 WHOLE COMM. - Budget Hearings

Well, we were going to redo a lot of the electric light fixtures because there was a safety hazard. I recall that, but I don't recall the program that you're referring to.

Remember when Pete Hoskins was -- was he in Streets?

He was. That goes back a little.

It was a ten-year program.

Perhaps the Streets Commissioner could refresh all our memories. (Commissioner Lawrence Moy comes forward.) COMMISSIONER MOY: This is Larry Moy, Streets Commissioner. Councilwoman, we're in the final two years of that program. You have a good memory there. We are finishing up the group replacement program for street lights throughout the City.

Well, could you tell us where the lights -- was that a citywide project or a targeted area? COMMISSIONER MOY: It was a citywide 43 2/9/99 WHOLE COMM. - Budget Hearings project. I believe the last areas are in the -- I think they're in the lower northeast, I'm not positive. I could let you know where the last areas are that we're trying to --

Was that to change all of the lights on every street? COMMISSIONER MOY: Actually, it's an upgrade -- yes, an upgrade of the lamping to a more efficient light system, and we're probably about 80 percent complete there.

It's not. COMMISSIONER MOY: It's about 80 percent complete throughout the City.

Okay. Should we see a difference in the lighting? Are the streets brighter? I'm talking about the illumination. COMMISSIONER MOY: Yeah. The luminaires are being changed, so it is a more efficient light, so you should see more light on the street. That does not mean, though, that you're going to see supplemental lighting if there are holes in the system -- if that's what you're asking. If there are missing street lights, that's not a part of that program. 44 2/9/99 WHOLE COMM. - Budget Hearings

Okay. Well, there are streets where the lighting is not very good. And I'd like to know if you install a new fixture, would the lighting be better, or would you just have a safer fixture but the lighting is not -- the illumination is not any brighter? COMMISSIONER MOY: The illumination is slightly better. If there's a missing street lamp, though, well, I mean that's a different situation. If there's a gap, this doesn't really cover that.

Thank you. COMMISSIONER MOY: Okay.

Back to Miss Kaplan -- Mrs. Kaplan. I understand that there is a Brown Fields Task Force. Have you given any thought to looking at Logan as possibly a brown fields area to help with what we're trying to do over there to remediate the problems?

It hasn't -- it hasn't been looked at to this point, but we're in the process of getting information from the Army Corps of Engineers who have been undertaking a study of Logan in order to tell us, you know, what can be 45 2/9/99 WHOLE COMM. - Budget Hearings developed there. And, in fact, I did get just last Friday a preliminary report of their findings. I think that's an excellent suggestion, that once we have that data from the Army Corps, that the Brown Fields Task Force ought to consider that site for possible funding. It doesn't appear that there's anything on that site that's that toxic. But the preliminary conclusions indicate that we're going to have to remove four or five feet of soil from the entire site before we can develop anything because there's been so much construction debris that's been put back onto the site. So it seems to me that that definitely fits into the category that should be considered by this Brown Fields Task Force. Of course, you know we have an additional problem in Logan, which is the subsidence problem, and I'm not so sure whether or not, you know, that's a different kind of an issue, but I think in terms of the removal of soil and the replacement of that soil with clean fill, which is going to be a precondition to any 46 2/9/99 WHOLE COMM. - Budget Hearings development, certainly that deserves some kind of consideration. You know, the task force ought to take a look at that. I think that that's an excellent suggestion.

Okay. I --

Councilwoman, that's five minutes on the first round.

Oh, I only had one other question, then I'm done.

Okay, thank you.

Do you provide any technical assistance? I guess what assistance do you provide to a special services district? We're trying to work out a program with Cheltenham.

We have somebody on our staff that is familiar with the laws and the process for establishing a services district, and we certainly can, you know, have that person talk to the people and give them some advice, the people who are interested in establishing that district. We would be glad to do that. We can't actually -- we don't have the staff to actually go out and do the organizing that would be required door to door to get people 47 2/9/99 WHOLE COMM. - Budget Hearings to participate, but we certainly can give some initial information about what it takes to do a district and that kind of thing.

Okay, thank you.

Thank you very much. The Chair recognizes Councilmember Krajewski.

Thank you. Miss Kaplan, do you have anything in the budget as far as the Police Academy or the 8th or the 15th District?

I believe there is -- let's see. . . We have -- on , there's going to be a new modular building provided. This is actually -- this is not in the first year, it's in the second year of the budget for training facilities at the Police Academy. I think that's the only thing that's at the Police Academy. And what was the other question?

The 15th or the 8th District.

Uh. . . 48 2/9/99 WHOLE COMM. - Budget Hearings

I guess you don't see it in there.

Councilwoman, let us get back to you on that.

Pardon me?

Let us get back to you. Some of the sites are not listed. The majority of them are, but it does not appear at this moment that they're here. We'll come back to you.

Thank you. I would like to go back to the Police Academy. Wouldn't it be a lot less expensive to add on to the Police Academy than putting these modulars and trailers and what have you.

Not necessarily. There was a double modular that was actually constructed about two or three years ago called "Valor Hall" that, I believe, the Police Department is happy with. And it provides a cheaper level of construction, and the construction can happen rather quickly. And I think that the Police Department was pleased with that facility and, therefore, 49 2/9/99 WHOLE COMM. - Budget Hearings asked for another modular. I believe I'm correct. Is there anyone here from the Police Department?

There are no 6 plans for the interior of the Police Academy as far as the. . .

They didn't request anything of that nature.

Well, I'm sure a lot of departments don't request.

No, they're not shy; they usually ask for way more than we can give them.

They have a budget as well, as we all know. But I would like to invite you, if possible, to go through the Police Academy in the 15th District 'cause I've been up there and I know that they need an awful lot of work up there.

I think -- obviously, we'd be happy to do that. In addition, one of the reasons that the modular approach was taken the first time was that with the Crime Bill officers being brought on line, there was a necessity for getting the facility out very quickly. 50 2/9/99 WHOLE COMM. - Budget Hearings There was also a peak because we increased the number of classes we were putting through the Academy each year. We're expecting that now to reduce a bit to a more steady level, and I think that will give us a chance to look at the kinds of different approaches that --

Because I understand they were having problems with their air-conditioning and also with their heating system. Half of them were freezing in there at one time. But, again, I would like to make an appointment. Maybe we can --

Councilwoman, I'll make an appointment with you, and we'll go up and check out the facility.

Thank you.

Thank you very much. The Chair recognizes Councilmember Rizzo.

Thank you, Mr. Chairman. My question is to Barbara Kaplan. What 51 2/9/99 WHOLE COMM. - Budget Hearings criteria do you use to strategically allocate our limited resources as between the neighborhoods and economic development?

I don't think we kind of do it as an either/or situation. We try to address the most pressing needs, wherever they occur. I mean, if we have, you know, a building that is failing in some way, or if there's a health and safety hazard, that gets the first priority -- whether it's, you know, a neighborhood facility or a citywide, you know, kind of facility. And as I said, we also give high priority in cases where a small amount of City money is going to leverage federal funds or funds from other sources. We -- we really feel that -- you know, we depend on the departments to identify the needs in the neighborhood facilities that they operate -- the recreation centers, the health departments, the libraries. We feel that the departments, you know, are running those facilities and that, you know, they know what the conditions are. That goes for police stations and 52 2/9/99 WHOLE COMM. - Budget Hearings fire facilities as well.

Well, what Councilwoman Krajewski just pointed out is a perfect example of what I hear constantly -- the deplorable condition that our police officers have to work in, not just at the Academy and the 8th and the 15th but in most of the police districts. So are you suggesting that the budget of the Police Department is so fat that they don't need to come to you? They feel as though they can deal with this?

No, they do come to us, and pretty much, we have satisfied the requests that they made. I mean, we really gave them almost all of the money that they requested. The other thing is that there was a study undertaken by the Police Department several years ago that surveyed all of their facilities to try to identify, you know, what the most pressing needs are. And we have been working our way through that report. Each year the Police Department, you know, gives us a request, and in large part, because it's been previously identified as a need. 53 2/9/99 WHOLE COMM. - Budget Hearings And then if other things come up since that study -- if other things have come up since that study was undertaken, they request those things as well.

Councilman Rizzo, I think I can probably help to answer part of your question. The Capital Program Office, the Police Department is one of our client agencies, and we work daily with them during the design and construction of previously funded capital projects. But we also work with them throughout the year to put together a list of priorities of projects that we are going to request to the Planning Commission at budget call. And before budget call happens, the Capital Program Office works with them to identify a list and to develop the scopes and the schedules and the cost estimates, and we help to prioritize that list.

Well, I happen to agree with Councilwoman Krajewski. Mr. Kaplan said that this building, this modular building isn't planned for the second year, so we have a 54 2/9/99 WHOLE COMM. - Budget Hearings lot of time here to build a permanent facility. I just can't understand why we build a temporary modular facility -- especially when this thing's not even on the drawing board yet. We're talking, what, two years away?

No, they're not necessarily temporary; they actually have a life span of about years. 10

Well, I hope our 11 Police Department plans to be here more than 25 12 years. But it seems as though that is not a very 13 good decision, as far as I'm concerned, to suggest 14 that the Police Department or the training 15 facility can operate in a modular building. 16 Granted, some of these modular 17 buildings are fine, they're very nice, but I think 18 it sends a message that I don't particularly 19 like. That we need a permanent structure there 20 and we're wasting money building a permanent 21 structure that you just stated has a life 22 expectancy of 25 years. 23 And based on my experience touring the 24 city and seeing the condition of our police 25 stations, I'd be embarrassed to take a visitor to 55 2/9/99 WHOLE COMM. - Budget Hearings any police station in the City of Philadelphia. They're disgraceful, they're dirty, and it's just -- they're unsightly. I don't have any more adjectives to use to describe some of those facilities. Thank you.

You should visit 24th and Wolf -- it's not too bad. The Chair recognizes Councilmember Mariano.

Thank you, Mr. Chairman. This pretty much is really to the Streets Commissioner, but maybe you can help Mr. Moy out. We spoke a little bit yesterday about the hot in-place paving, and I was wonder if -- Commissioner, could you help us with that? Can you give us some information, the cost, the difference between doing that or saving on that and the projected costs for the life span of these streets? COMMISSIONER MOY: Good morning, Councilman. The hot in-place recycling, you're asking the relative costs? 56 2/9/99 WHOLE COMM. - Budget Hearings

It's obviously cheaper to do this, right? COMMISSIONER MOY: Yes.

But will it last as long? 'Cause we've never had it before. And the streets that I visited, now, they may have been the worst ones, but they weren't working out too good, 'cause they've only been a year or so. I mean, I visited Somerdale Avenue in my district, and that one worked fine 'cause that's a very, very wide street, and it goes for miles and miles. But the other ones -- a couple up in Mayfair I looked at, and we spoke about this yesterday, where there's intersections, and all the people I know in construction have concerns about the diameters and intersecting street. We don't have any data saying how long this will work, correct? COMMISSIONER MOY: Right. What we did was, this year, we began a pilot program with the hot in-place recycling, and we did start in the Northeast, the lower Northeast, some portions of Oak Lane, and then down into Center City. There were some things that we proved 57 2/9/99 WHOLE COMM. - Budget Hearings through that pilot. We're going to work on a program this year, trying to address some of those problems and concerns that we experienced over the summer. We're confident it's a good program, though.

Good. And we spoke yesterday, and I want to officially ask you, could I get a cost breakdown of what we save doing this now as opposed to doing it the other way as a projected savings over five or ten years. The streets should last ten years? COMMISSIONER MOY: Depending on the volume, yeah, that's a --

Now, we don't really know if this new hot repaving -- I mean, it makes a lot of sense. I mean, it really does -- if it works. We don't know if it really works, and the first indications are that it doesn't work as well as they may think it works, or that the people that sold us this idea works. COMMISSIONER MOY: Well, we have some testing and we will be glad to furnish that and the pricing to you.

But can I get the 58 2/9/99 WHOLE COMM. - Budget Hearings pricing and cost estimates over ten years, what we save by doing it this way, what it would be if we had to do it the other way? Like, we don't know. I mean I don't think we know if it lasts ten years, we have to wait and see. If we're going to go back in five years and do something double that we might have done once for a little bit more money but may have lasted -- do you understand what I'm asking? COMMISSIONER MOY: I understand what you're asking, and we'll try and --

Can you get that to me and every member of Council? COMMISSIONER MOY: Yes, we will.

Thank you. The next question would be the street lighting, to touch onto what Councilwoman Tasco started. We talked about replacing lamps. We're putting new modern than lamps that have a different luminous effect? COMMISSIONER MOY: Yes.

Correct? But we're not doing any -- I mean, as long as you have been Streets Commissioner, have we replaced any 59 2/9/99 WHOLE COMM. - Budget Hearings new street lights? 'Cause there's a lot of dark spots and new spots that never had a light. COMMISSIONER MOY: Right. That's not the rule. We do not have funding for regular replacements of missing --

So if a community group comes to me or one of the other Councilpeople and says, "This is a bad spot here, this is a spot where people have been getting raped, people have been getting mugged, carjacked." It's been my experience that we don't get new lights, it's been my experience from the Streets Department Lighting Division that there's no money for new lights. Now, maybe I'm wrong. Can you help me with that? COMMISSIONER MOY: There is there is no 18 dedicated funding for any large-scale program, Councilman. We would try to -- if you had a specific acute situation, we would try to help you and address that.

Well, in a city of this size, as neighborhoods change and old neighborhoods rebuild, you know, we're always adding more money to infrastructure. 60 2/9/99 WHOLE COMM. - Budget Hearings Is there any way we could put money, Miss Bittenbender or Miss Kaplan? Is there any way we could put any money away looking at this plan in the future? Where as neighborhoods change in a crime area, an area where the lighting was sufficient. I mean, I understand they're putting new light bulbs in, and that's fine. But new lamps in -- "lamps" in is the correct word. But there's areas where things are changing, and it may be an area where we never had anything. There's nothing projected for that in this five-year budget?

There's nothing in this budget, you know, that specifically provides for that. I think, as the Streets Commissioner was indicating, when there are circumstances that arise, certainly there's an opportunity to discuss that on a case-by-case basis with the Streets Department. I think, you know, if you're suggesting that maybe there ought to be dedicated funding to do this --

I think it's 61 2/9/99 WHOLE COMM. - Budget Hearings better to be proactive than reactive. If something happens somewhere, then we say, "Geez, if there was a street light here. . . " There's no villains here; I'm just looking to be proactive.

I mean, we haven't included that in this budget because that's just not -- as I said, that's sort of not been the program up to now.

Could we?

Well, I think that's something that maybe the Streets Department ought to think about and perhaps make that request next year if they think that there's a need for dedicated funding for that purpose.

Could we do that, Commissioner Moy? COMMISSIONER MOY: Yes, we can, Councilman.

And you would do that for us? COMMISSIONER MOY: Yes.

Next year? COMMISSIONER MOY: Yes, sir. 62 2/9/99 WHOLE COMM. - Budget Hearings

Thank you.

Thank you very much. I just have a few questions on the first round, and then we'll go to Round 2. And these are for -- Commissioner, there's a couple questions for the Streets Department. One is to follow up on Councilmember Mariano's questions on hot in-place recycling on street paving. I need, in addition to what he's asked for, any information we have on the environmental or pollution problems associated with this process going on the way it does. We've gotten complaints from people in Center City and other areas that the fumes and everything else that's created as a result of this has given them some concern, and we'd like to have that looked at. Secondly, the areas that are paved around manhole covers are in terrible condition. Even stuff that's been paved over the last few months has already broken down and is creating both pedestrian and vehicular potential hazards. And the third thing, and I think 63 2/9/99 WHOLE COMM. - Budget Hearings Councilman Mariano alluded to it, was the size of -- when the street is a wide street, it seems like it works. But when streets are narrowed for either turning lanes or other things, there's areas that are not being paved at all, and the process is not contiguous. When we come back and do another process, it doesn't create a bond that allows for one smooth paving. Larger streets are okay, but smaller streets and Center City streets just don't seem that they're getting the right treatment. So that's a real concern for a number of us. Secondly, street signs. I had thought originally when I started to see street signs that faded, that someone, some vandals were climbing up poles and spray-painting them in order to change the name of the street or to do -- as I've gone through the City, in many, many parts of the City, it seems as if these signs have simply faded to the point of not being able to read them at all. Who provided those signs? Is there some type of way to recover the cost for the defective signage? I mean, outdoor street signs should last in weather, and it seems as if weather 64 2/9/99 WHOLE COMM. - Budget Hearings and rain or whatever is what has caused these signs to fade. And in many neighborhoods, they're totally useless now. I assume they're going to have to be replaced. Who is the contractor and what warranty or what way of recovery can we find to get those signs paid for again? COMMISSIONER MOY: Are you talking about traffic regulatory signs?

No, I'm talking about street signs. COMMISSIONER MOY: The street designation --

The green street-designated signs. COMMISSIONER MOY: They --

In areas of the Northeast and in some other areas, they are just completely faded. And, again, originally, I thought it was vandalism but I can't believe they climbed on every pole on Harbison Avenue and spray-painted all of the signs green. COMMISSIONER MOY: No, I think that's a part of their normal life process for some of 65 2/9/99 WHOLE COMM. - Budget Hearings these signs.

But these just went up. I mean, these have been up less than two years. I mean, they're brand-new green signs. COMMISSIONER MOY: We'll have to get with you and get that --

And I see it more -- I mean, I see it all over the City, not just the Northeast. COMMISSIONER MOY: Okay, we'll look into that.

Third, what do we currently have allocated, appropriated for alley light installation? Which I understand has not been totally completed. And what monies do we have currently appropriated or proposed to be appropriated for alley light maintenance? COMMISSIONER MOY: I don't have the exact figures in front of me, but the last part of the process there is Center City, Councilman. We have some remaining alleys to be addressed there. We expect to get that funding and have a contract in place to complete that this summer.

I guess 66 2/9/99 WHOLE COMM. - Budget Hearings Councilwoman Tasco in the second round can raise that if she desires, but I mean, I know she has indicated that not all of the lights that she had expected to be installed have been installed -- even from the first go-around of appropriations. COMMISSIONER MOY: Ell, in terms of the alley lights and in that district --

She's not here now.

I'm here.

Oh, she is here, I'm sorry. COMMISSIONER MOY: We had a policy in which we were not necessarily replacing alley lights exactly where they were. I think there was a better placement of lights where we were trying to address largely the portals first, where you enter the alleys. And so there may have been -- if there were four lights there, there could have been three replaced because there was more efficient lighting, better lighting. And this is the pattern that we've developed throughout the City. Now, I thought there were a couple locations that we had addressed that the 67 2/9/99 WHOLE COMM. - Budget Hearings Councilwoman had concerns about last year. Were they taken care of?

No. So what do we have as far as maintenance is concerned into the future? COMMISSIONER MOY: We have some residual funding still remaining from the PECO credit there to address maintenance.

Okay. Are we requesting any additional funds for -- COMMISSIONER MOY: Not at this time.

So you have enough for how long? COMMISSIONER MOY: Enough for -- I'd have to check how long the credit will last. It's at least this year, though, Councilman.

Okay. And just one final question as it relates to the Zoo and the monorail. The last time I was on it, I agree -- it was not too long ago. I did agree that it was in pretty bad condition and now the decision has been made to remove it. Has there been any discussion about potential upgrade or replacement as an attraction 68 2/9/99 WHOLE COMM. - Budget Hearings to bring people into the Zoo and to create maybe a revenue stream that isn't there because of the condition of the monorail now? (Pete Hoskins comes forward.)

All of the developers are coming in -- Disney and Simon and others. Maybe we could have an innovative attempt made at creating an attraction for the Zoo, as opposed to removing the monorail, or replacing it might have been in order.

My name is Pete Hoskins, from the Philadelphia Zoo. I'd like the record to show that Councilman Kenney is the only person I know that actually remembers all of the words to the original advertisement for the Talking Story Book keys.

And I'm not going to sing it for you. No, I want, no. 21 (Laughter.)

I learned from the Mayor not to sing.

In answer to your question about the monorail, the system is 30 69 2/9/99 WHOLE COMM. - Budget Hearings years old. It was installed 30 years ago, December of 1968. And it was a contract that was intended to be extended to about 30 years. And at the end of that period, the system basically was really no longer able to be upgraded to a safe state. And so we reluctantly agreed that the safety was actually the most important thing here and that we would not be able to replace it in kind. So we will be demolishing the system as part of the master plan. And in terms of other rides, the plan that it looks like we're moving to now would be rides on the lake in addition to the rides we have with the animals, of course. So we appreciate the nostalgia that goes with that, but I think safety here is probably the most important issue.

Okay, thank you very much. (Council President Verna returns to the Chair.)

The Chair recognizes Councilman Nutter.

Thank you, Madame 70 2/9/99 WHOLE COMM. - Budget Hearings Chair. So, Miss Kaplan and Mr. Kaplan -- although, to the best of my knowledge, you're unrelated Kaplans. Is that -- (Laughter.)

Okay, but you're friends. (Laughter.)

Maybe not after today. (Laughter.)

I'd like to talk about three specific projects. Actually, one was raised earlier that was on my list, which is Belmont Mansion. It's my understanding that the Fairmount Park Commission either directly or indirectly, and one of the commissioners who happens to be the president, expressed interest in the Belmont Mansion for its completion. I believe that's upwards of $1 million. Last year at budget time, I specifically asked about two projects -- the 21st Ward ice rink and the Wynnefield Recreation Center. In budget hearings, we subsequently had 71 2/9/99 WHOLE COMM. - Budget Hearings discussions with the Recreation Department about those two projects and a discussion with Mr. Kaplan and Mr. Rost. Ms. Kaplan, can you tell me what happened to those projects over at the Planning Commission?

I wasn't involved in any of those discussions, so I --

No, you were not. Were they presented to the Planning Commission as items of interest or discussion based on the process that you laid out earlier?

The Belmont Mansion was requested by Fairmount Park.

Okay, what happened?

We did not include it in the budget year or in the program because we have spent, I think, over a million dollars already on Belmont Mansion, and I guess we were not persuaded, when we looked at it in combination with some of the other projects, that to spend another million or more dollars on it seemed excessive in terms of how much we had already 72 2/9/99 WHOLE COMM. - Budget Hearings spent and --

But it's not finished.

And what the nature of the facility was. Well, I think the solution to this was that I believe the Capital Program Office agreed to make an independent evaluation of it, to make a determination of what they thought was really needed there, to see if we could meet the essential needs of that facility without spending that much money.

Well, I'm not advocating for a particular dollar figure. What I'm advocating for is that the project be completed. It was initially allocated a certain amount of City dollars in conjunction with foundation dollars. The early estimates apparently were not adequate. The project is not complete. So I'm not sitting here asking for a million dollars if a million dollars is not needed. What I'm asking for is the sufficient dollars to complete the project and get it over with so that we can all go 73 2/9/99 WHOLE COMM. - Budget Hearings on with our lives. That's what I'm asking for. Miss Bittenbender, do you have something you wanted to add to that?

The previous project that was completed was the Caretakers House, and the dollars that were requested this year was for the mansion.

Right.

And as Barbara had said, we had agreed to take on engineering study and cost estimate to see what the phases of those renovations would actually entail in a more detailed review.

Well, isn't there material already in existence about that from the Fairmount Park Commission?

Yes.

This is not a new project, right?

No. 22

Okay. So where does that leave me for today?

We did not include it in the budget because, I guess, compared to other 74 2/9/99 WHOLE COMM. - Budget Hearings projects, we were not convinced that the amount of money that was being requested was -- was really going to yield the kind of benefits that you would expect from putting a million dollars into that project, and we felt that it should be reevaluated independently by the Capital Budget Office. I think a lot of us were, you know, somewhat -- "dismayed," I guess, is the best way to express it. When we had put in the money which was going to be used in combination with private funds, we had thought it was going to go into the Mansion, where we thought, you know, there would be, you know, more -- more public use, more benefit. But -- and then we later found out that it all went in to the Caretakers Cottage. And we're not sure whether that was because, you know, the overall cost of the project was not adequately, you know, understood at the beginning, and we just never -- we're not satisfied that we're really getting our money's worth.

Right.

Not our money's worth, but the City's money's worth --

Right, I 75 2/9/99 WHOLE COMM. - Budget Hearings understand.

-- you know, for that project. And compared to a lot of the other projects that were requested, we just felt that it didn't compete well with those projects, but we agrees that --

Well, I appreciate your sense of dissatisfaction. And you have to understand that I'm dissatisfied that the project's not done. Let me ask you this question: How much money do we have in the Regional Performing Arts Center -- for past years and last year?

I don't know what the total dollars are. I can get that figure for you.

Is it 10 million, million, 30 million? 19

I don't recall what the 20 number is.

Okay. And that's a project that still has a funding gap; is that correct?

I believe so, yes..

Okay, all right. 76 2/9/99 WHOLE COMM. - Budget Hearings Mr. Kaplan?

Yes.

How do we determine that we were going to issue $124 million in debt to fund this year's Capital Budget? And what's the debt ceiling?

The overall -- I don't have the debt ceiling with me at this moment, but it's in the range of about a billion, 200 million.

I'm sorry?

It's in the range of about a billion, 200 million, and I don't have that number in front of me. Our goal over the past several years has been to limit our general obligation portion of the Capital Budget to about $125 million a year for two reasons: one is that that would leave us under the debt ceiling for at least until the middle of the next decade -- perhaps longer depending on how real estate assessments turn out and give the City some time to make up for the several years where there was no capital borrowing.

Did we -- 77 2/9/99 WHOLE COMM. - Budget Hearings

But the more important issue is the ability to afford debt service on the operating side of the budget.

Right. Last year, did the Mayor propose a Capital Budget at one amount; and during the course of the budget hearings, was that amount changed?

I don't think we changed the amount. I think we redirected the appropriations from defense conversation to libraries.

Okay. So there is an ability to move dollars around, even after the recommended budget is proposed?

That's why it's recommend.

That's why it's recommended.

Right. And we're also using this year $49 million in past PICA dollars that were, I assume, for emergency projects at the time, and we're now using them for other things; is that correct?

Yes. Although they still must meet general PICA criteria. 78 2/9/99 WHOLE COMM. - Budget Hearings

I understand that. And are there any PICA dollars still outstanding from previous borrowings that have been not been directly programmed for projects?

Those are the dollars that are at issue this year. There's a combination of funds which were for projects which were completed under budget or, for various reasons, not completed and interest earnings on the current PICA balances.

All right. Madame Chair, I know that the timer went off a while ago. I'd like to be able to come back and talk about two other things. Thank you.

Thank you. The Chair recognizes Councilwoman Tasco.

I thought I was finished, but I have a couple questions. Miss Kaplan, can you tell me, were you involved in the plans for the bicycle lanes?

No. 24 (Laughter.)

That was very quick. 79 2/9/99 WHOLE COMM. - Budget Hearings

I believe that's the Streets Department.

So your department wouldn't have anything to --

No, our only role in this is to allocate the capital funds that have been necessary for the bicycle network.

Okay. Well, I guess I have to ask Mr. Moy this question then. Mr. Moy, is there any rhyme or reason to how the lanes were -- were -- to which streets were identified for these bike lanes? And was there any pattern to them? COMMISSIONER MOY: Yes, Councilwoman. We have a group of folks that had been planning a bicycle network plan there. Now, what you may see, however, is, in the execution of the plan, they have not have had a lot of funding there to do the plan all at once. And what you've seen is pieces of the plan started to be put in place. Some of this has taken place when there's been resurfacing of the streets. They have tried to put the lines in when they resurfaced. 80 2/9/99 WHOLE COMM. - Budget Hearings It will take a while for that plan to take hold, but there is an overall plan.

Will there be bike lanes on most streets in Philadelphia? How did they determine where the bike lanes should be placed? COMMISSIONER MOY: Well, they had a series of neighborhood meetings to try to get input from communities to develop bike lanes and biking lanes for certain areas. So they would not get every street, but you would have concentrations of where there would be corridors where you could permit bicycles. We could share that with you if you'd like.

Well, were there meetings held throughout the City? COMMISSIONER MOY: Throughout the City, yes.

I don't know if they were held up in my area 'cause I have one block of one street with bike lanes, and I don't even know why the lanes are there. They're terrible. 81 2/9/99 WHOLE COMM. - Budget Hearings COMMISSIONER MOY: We'll be glad to look at that. If you want to give me that location, we'll take a look at that situation.

Well, I'd just like to know that there's a plan, and I'd like to know what the plan is for my district. COMMISSIONER MOY: Okay. We'll set up a meeting.

Because I'd like to have some input into whether or not we need bike lanes on certain streets or not, 'cause it doesn't make sense to me right now, how a lane on Williams Avenue -- I have one block where probably there are no children, and it's hardly likely for anybody to ride a bike. And I have one block of a street that goes from Ivy Hill Road to Upsal. COMMISSIONER MOY: Okay.

And I have one block with a bike lane. COMMISSIONER MOY: We'll be glad to meet with you.

Well, people are afraid to park their cars, and one person in the district right directly across the street from 82 2/9/99 WHOLE COMM. - Budget Hearings where I live parked there and got a ticket. I think they're horrible.

And I would like to add to that. A businessman on Washington Avenue absolutely refused to have Washington Avenue reconstructed, if, in fact, bicycle lanes had to be included, and they were told they definitely had to be included. So that presents a very dangerous, dangerous problem, when you have large trucks that would be going in and out of the buildings. I think it's something we really have to look at. COMMISSIONER MOY: We'll look at that, Councilwoman.

I have one other question of Miss Bittenbender. Are there any regulations that would require the City to hold up payment from a contractor if he or she does not pay the subcontractor?

Uh. . . you ask excellent questions, Councilwoman two days in a row. Not to my knowledge. It is very difficult for us to have regulations regarding 83 2/9/99 WHOLE COMM. - Budget Hearings payments, due to the fact that we do not directly contract with the subcontractor. I will tell you that we spend much of our time interfacing on behalf of those subconsultants both on professional services as well as construction. But unless. . . The Deputy Commissioner from the Procurement Department has some of these regulations. Hold on one second. It appears as though I'm incorrect. (Joe Resta comes forward.)

Good morning. I'm Joe Resta, the First Deputy Director of the Capital Program Office. There actually is a mechanism in place for nonpayment of subcontractors on construction contracts on public works only. It is a labor and material bond. It basically goes hand in hand with the performance bond. Should a subcontractor not be paid by the prime contractor, they can execute against that bond with the bonding company. But because the City does not directly contract with the subcontractors, we are basically -- we are an 84 2/9/99 WHOLE COMM. - Budget Hearings observer to that process.

Well, you know the nature of contracting. A lot of contractors are not going to do that 'cause they want to continue to work. And if they can create that -- initiate that action against a major contractor, they may not get work in the future. I'm thinking about introducing an ordinance that will require us to have the major contractors submit -- when they put their request in for payment, that they certify that their subcontractors have been paid. Is that something you could deal with?

It would probably help that situation, but I currently know of no ordinance in draft.

I beg your pardon?

I currently know of no such ordinance in draft.

No, I'm telling you that I'm going to introduce that ordinance. That would give you some assistance.

I agree that it would help. 85 2/9/99 WHOLE COMM. - Budget Hearings

Thank you, thank you.

Councilwoman, do you have any other questions?

No. Thank you.

Thank you. The Chair recognizes Councilman Rizzo.

Thank you, Madame President. I'm disappointed to hear that we don't have a plan that includes adding additional street lights, that we basically have to use our offices to appeal to the Streets Department to survey and to consider an additional street light. What I would like to recommend to the Planning Commission is that we do a citywide survey to look -- or to the Streets Department. I don't know that --

I think that's something -- I mean, not something that the Planning Commission has the expertise or the training to do.

Okay, but everyone here in charge is listening. To hear that we 86 2/9/99 WHOLE COMM. - Budget Hearings don't have a plan to add additional street lights, that it's just something there's no money budgeted, there's nothing, no operation that could make that happen other than a letter from a Councilperson to get that consideration, that I would like to recommend that we conduct a citywide survey of the entire city to see if our city is lit properly. Right now, we rely on the contractor that has the street light maintenance contract to tell us whether we have street lights on, off. Because we pay for them. Whatever the number of street lights that we have, we pay every day to operate them. So if there's 500 off, we have to depend on that contractor to back-bill us or do whatever the process is to give us credit for that number of lights that aren't operational on any given day. So I would like to see the entire city surveyed to see if we have adequate street lighting or maybe too much in a certain area, and have some of them removed if necessary -- in front of an abandoned house or where they're not needed. But, obviously, where they're needed, they should 87 2/9/99 WHOLE COMM. - Budget Hearings be. Something that I'm interested in, and I can't find it. I just saw all the additional lighting added along Kelly Drive on the jogging path and foot path. I can't see -- I can't find in the budget where that money came from.

That money, I believe -- let's see.

I'm talking about the lights that are already installed along the Art Museum, all the way up to the reviewing stands, the decorative ornamental lights that have been installed to light a footway. Could somebody show me, please?

We did do that with the funding from a previous capital program.

'Cause I never heard that discussed, mentioned. And then, all of a sudden, we see all of these lights pop up on Kelly Drive, along the footway. But I'm going somewhere with this. Right now --

It was in last year's -- actually, it was originally proposed in 1998 and 88 2/9/99 WHOLE COMM. - Budget Hearings it was carried over into the 1999 budget, and there's a project called "Kelly Drive Street Light Modernization." It's on of the last year's capital budget.

Okay. We presently have a dangerous situation on Kelly Drive. It's unsafe. It also is unsightly. The underground network of street lights on Kelly Drive has failed. To make those lights work, temporarily function, wire that is not meant for the application -- the fixtures aren't designed to support the cables that have been tied off to those. I don't see anything in this budget to rewire the underground network on Kelly Drive to get rid of these overhead wires that aren't supposed to be there. Are they in the budget? Is that a capital program for the Kelly Drive rewiring? Again, I repeat, those wires are supposed to be underground. The very beautiful Kelly Drive has wires strung from one street light post to the other, and those structures are not designed to accommodate those wires hanging on 89 2/9/99 WHOLE COMM. - Budget Hearings there. We've already had situations where vehicles have hit a pole and it's taken down two or three as a result of the incident. So I'd like to see where the money is for that project. If you need to get back to me on that, that's fine if it's readily available. But I'm concerned because I've looked through this and I don't see, other than some monies on where it says "Citywide Fairmount Park Curbing Footways Installation of Concrete Curbing." COMMISSIONER MOY: Councilman, we will get back to you. We agree with you about the concerns on Kelly. And as you know, that responsibility is PECO Energy's in terms of that underground system right now. The Streets Department was preparing plans with federal aid there to replace that system. I believe it's in our federal aid line item. We're going to double-check on that.

Commissioner, you know we've had this conversation frequently. It's a bad situation, it's unsafe, it's unsightly. And I don't see it here, and I was told by representatives of the Streets Department and 90 2/9/99 WHOLE COMM. - Budget Hearings Fairmount Park that this condition -- and I'm sure Fairmount Park isn't thrilled about having these wires running all over the aluminum light standards. They weren't meant for that. That is dangerous. If someone gets hurt, we have a big problem with this. COMMISSIONER MOY: We'll double-check and make sure it's in -- if it's in that federal aid line item, and we'll get back to you.

But it should be in this Capital Budget? COMMISSIONER MOY: I think there's a line item with federal aid, and I think it's lumped in there, I believe.

Well, I'd like to see it lumped out. COMMISSIONER MOY: Okay.

Is that a word?

Are you finished, Councilman?

Yeah. Thank you, Madame President.

Thank you. I have just have a question if I may. 91 2/9/99 WHOLE COMM. - Budget Hearings The FY '2000 Capital Budget proposes to use $48.9 million in PICA pre-financed loans. What is the total amount of Pike-available funds, and can you tell us what are the restrictions, if any, on the use of these funds?

I believe that this is the total amount of unused PICA loans that is available now. I would let -- I will defer to Dean Kaplan to give you more specific information about that.

Thank you.

Yes. As I mentioned in a response to a question from Councilman Nutter earlier, the approximately $49 million is a combination of approximately $30 million in interest on some of the PICA bonds which had not been spent, which was over and above their original projections. And about 18 million in a variety of projects which either were not completed or were -- more likely, were completed under budget, or funded from a different source. Those are the currently available PICA funds that we've identified. It is possible that in the future, depending on how projects -- the 92 2/9/99 WHOLE COMM. - Budget Hearings timing of when projects are completed and the amount of time PICA funds are held, that there may be future funds as well. This is the sum total of funds that are available now. Projects which are completed with this money have to meet the normal PICA criteria, which is fundamentally an emergency kind of --

I'm sorry. The noise level in here is much too high, and we can't hear the witness. Please proceed.

I believe I'm done.

You're finished? Thank you. The Capital Program Office is requesting $5.8 million in funding for FY 2000. What is the breakdown of how these funds will be used? Can you tell us the number and salaries of the positions that you're requesting in FY 2000? And can you compare that to FY '99?

Absolutely. I'll have to send that list over to you. But it's 79 positions -- 74 of them are in our department and I think 5 are in the Department of Public 93 2/9/99 WHOLE COMM. - Budget Hearings Property's Communication Division. And I can give you a listing of all the employees and their salaries both from this year and from last year.

And could you tell us what the project management services will be providing, and to whom?

I'm sorry, I didn't hear the last thing that you said.

I said, could you tell us what the project management services will be providing, and to whom?

Sure, yeah, I'll give you a breakdown of everything that we have put together for the budget for the year of what our anticipation is.

Thank you. Commerce Economic Development, line 41, deals with the Naval Business Center. Was a portion of the Naval Business Center included in the City's Keystone application? And if so, will the Administration have to revise the TIF plan that Council has approved for the Navy Yard? And if so, will the sources of financing be changed?

I think I would defer to 94 2/9/99 WHOLE COMM. - Budget Hearings Bill Hankowsky to answer that question. Is he here? (Bill Hankowsky comes forward.)

Bill Hankowsky, President of the Philadelphia Industrial Development Corporation. And the short answers are: yes, yes, and yes. A portion was included in the Keystone Opportunity Zone. We included approximately 40 acres at the very entrance, where you come in from Broad Street to your left, where the dorms were and the officers' housing.

Mm-hmm.

And we included a portion of what we call Girard Point, where the -- excuse me, I take that back. We included that portion of the shipyard where there are vacant industrial buildings where we don't have tenants yet. So we did not include, for example, Kvaerner or Metro or the Marine Associates. Any existing tenants were not included, so they will continue to pay whatever taxes they're paying or will pay. 95 2/9/99 WHOLE COMM. - Budget Hearings It is also correct that we will have to amend the Tax Increment Financing District to reflect this, and we will be submitting an ordinance shortly to Council to do that. And that will slightly modify the source and uses of that. As you recall, that TIF district was the only one we've done where it was prospective -- in other words, where we didn't bring a project in hand, and it was meant to induce firms to come. And so we did an analysis, which I'm happy to share with Council and Council's technical staff. We actually had the accounting firm of Deloitte Haskins do a tax analysis of the comparative benefit of the KOZ versus TIF, and then made decisions based on that.

Do we have many businesses that are locating now at the Navy Yard?

I think it's fair to say that we have a good stream of interest. And we are intensely at the moment working with the Navy to attempt to finalize an agreement such that we can acquire the property. One of threshold problems we have is 96 2/9/99 WHOLE COMM. - Budget Hearings being able to either sell in fee to a company or to enter into a long-term lease on the base side. We have the capacity to do long-term leases on the shipyard side.

Thank you. On Line 103, One Parkway Building, the elevator is to be upgraded by over $100 million. What was the total cost to renovate One Parkway? And when did the City take possession of the building? And during the building renovations, what was the extent of the work done on the elevators and at what cost? Why is it needed at this time?

Council President Verna, I'll accept that question and answer. Let me just start at the beginning. The City did an evaluation of seven candidate buildings for purchase. That evaluation began in, I believe, 1993. By the time the building was actually selected and the bond was floated, the original engineering assessments of all the base building systems had been evaluated. And the response back from our consultants were that those 97 2/9/99 WHOLE COMM. - Budget Hearings elevators would be able to last another six-plus years. It was the City's intention at that time, when doing the bond deal, that we were not going to put in for the full replacement of those elevators in hopes that we would be able to get an additional years of life out of them. The City did actually occupy that facility starting in May of '98 and completed the move-in in November. Since then, those elevators have deteriorated beyond what we had expected of them, and we are requesting additional dollars in the Capital Program to actually replace them.

Thank you. I think I have used my time. The Chair recognizes Councilman Nutter.

Thank you, Madame Chair. Mr. Kaplan, I'd like to go back to our discussion about a couple projects and also get some clarification on the total dollars that are available for the FY 2000 Capital Budget. In reading Miss Kaplan's testimony, it says $125 million of new tax-supported loan 98 2/9/99 WHOLE COMM. - Budget Hearings funding and $49 million in reallocated funds previously borrowed through PICA. So now, is that total of 174? Or is the 49 a part of the 125?

That's a total of 174.

Okay. Now, you indicated that, in our previous discussion, the PICA dollars are being reallocated to certain projects having been appropriated for certain other projects at some other point in time, maybe deemed an emergency -- now, five, six years later, the emergency has either resolved itself or is not as much of an emergency as we thought it was. What are the qualifications for a project to get reallocated PICA dollars?

There are usually two criteria. One is that, in fact, that there is some sort of emergency condition. And usually, under most -- there's some disagreement as to exact definition, but there has to be a relatively long-standing condition that we can normally establish was either existing or in some way close to existing at the time of the PICA bond, the PICA Act's passage in 1991. 99 2/9/99 WHOLE COMM. - Budget Hearings So, as you can imagine, that makes almost anything you might want to reprogram funding for very difficult. There's a fair amount of creativity in those definitions. The other area of --

I'm sorry, what did you say?

There's a fair amount of creativity.

Creativity.

Creativity.

In the definition.

Yes.

Of emergency.

Of emergency.

Okay, all right.

The alternative, I believe, would be to not have access to any of the PICA dollars. So we have in general tried to choose projects which may or may not -- which are related to a problem, a significant problem which has existed for some time. In some cases, we have specific evaluations dating back to that time; in other cases, we can draw some fairly direct 100 2/9/99 WHOLE COMM. - Budget Hearings connection to the time when the Act was passed. The other alternative is, in the case of certain projects where we can show that the City might have certain negative financial consequences, there are projects which are in a category called "deficit reduction" or "deficit avoidance." Those projects have to be approved by -- once agreed to by us and approved by Council and approved by PICA, they need to have approval from the governor's office and either the State treasurer or the State auditor general. So the bar on those projects is quite high. And in general, we --

Well what's the emergency for Line Item No. 46, the Independence Mall site improvement? They have $5 million worth of emergency down there. Why don't you tell me about that.

I think that's -- that is the one case where we are approaching the State to seek a deficit criteria. As you know, the Independence Mall project is fundamental to the City's ability to successfully host the Republican National Convention in the year 2000. And in 101 2/9/99 WHOLE COMM. - Budget Hearings order to --

You know, with all due respect to the Republicans, I wish that they'd have come here a couple years ago 'cause we're getting so much stuff done as a result of the Republicans coming to Philadelphia. Councilman O'Neill, I really wish you had worked on this project about ten years ago.

It was the tie.

It was the tie. I understand, I understand.

All right, go ahead, Mr. Kaplan, if you want to go down there, to "the Republican emergency."

"The Republican emergency," yes. I think I'm done. (Laughter.)

So you can be creative and you can figure out ways to get PICA dollars to get reallocated to various projects. Can you tell me what happened to the 21st Ward Ice Rink project and the Wynnefield Recreation Center project in the Capital Budget go-round? 102 2/9/99 WHOLE COMM. - Budget Hearings

Yeah, I think I can. The normal procedure we follow with new projects -- which, incidently, normally are not eligible for PICA funding -- is, and this is one we followed in a number of cases over the last several years -- is to consult with the departments and then put together a funding package, assuming that there's some agreement on the Administration side that the project is desirable. Although I know that you're recall of prior Council meetings is encyclopedic, I'd have to respectfully say that I do not recall the discussion this -- of either of these projects before we discussed them this fall.

For today, Mr. Kaplan --

But I will be happy to concede that that's true.

For today, flattery will get you nowhere.

What's that?

For today, flattery will get you nowhere.

But assuming that that's 103 2/9/99 WHOLE COMM. - Budget Hearings the case --

I understand.

-- when we learned about the projects at the budget level in the fall, we were clearly not as far along when we discussed them with Recreation as we normally would be on these. Let me give you a couple of cases of what we've done in the last several years. In the 8th District, the Lonnie Young Rec Center; and bordering in the 2nd District, the Ritner Library; and in the 9th, the Dorothy Emanuel project. We have, in all of those cases, spent somewhere between a year and two years reviewing the project, determining whether -- what the operating costs were to the relevant department seeking funding from sources other than the City's portion of General Fund dollars and putting together a package usually -- no, in fact, in all of those cases, with State dollars to do the project.

Mr. Kaplan, if I can mention to you, and you know I never mean to be rude, but I'm now operating on borrowed time. 104 2/9/99 WHOLE COMM. - Budget Hearings

Mm-hmm.

And I'd really like to talk about the two projects that I'm interested in.

Mm-hmm.

Which are the 21st Ward Ice Rink and the Wynnefield Recreation Center. Now, I'm trying to figure how to get them in the budget because we are trying to seek some additional dollars. They are new project they are new projects, but they're greatly needed projects. For instance, the Recreation Commissioner knows that by way of a map produced by the Planning Commission, if you look at the five centers that exist in the city now and take a two-mile radius around them, every part of the city is covered except the northwest. And in the Wynnefield situation, there is no major recreation center in the Wynnefield community. So I just want to really talk about those two projects and figure out how we can creatively get them in the budget, where they below. I made the request a year ago; a year later, I have nothing. That's what I want to talk 105 2/9/99 WHOLE COMM. - Budget Hearings about.

Mm-hmm, mm-hmm. Well, I think, taking them separately, in both cases, I'm telling you, I was not aware of them before this fall. And in most cases, we do not fund large new projects -- in this case, a $2 million or so rec center or a $4 million or so skating rink -- directly out of GO funding from the City's portion of funding. We normally try to leverage State recreation grants and other funding, which is not an overnight process.

Well, Mr. Kaplan, I didn't ask for all the money all at one time. Now, you may or may not be aware of that. I can be difficult, but I'm not completely unreasonable. I think what I'd like to see is some best effort by the City to start, and we can certainly work on it over time. For the moment, it is zero. Now, you can't sit at the table and say that it has never occurred in the past that the City put some dollars in the Capital Budget and in the rest of the Capital Program to demonstrate support for projects. I would not want to take you through the history of that. 106 2/9/99 WHOLE COMM. - Budget Hearings

Well, I think in the case of the rec center there, is a clearly documented need, and my understanding is that the Recreation Department has begun looking for specific sites for that project. And I think that in that case, I would agree with your point. In the case of the skating rink, I think that although we have had a general discussion with Recreation, and I realize that from what I have learned since then that there is some community demand for that site, there also is a non-city rink that covers that area that is relatively close to that site. And when we look at limited resources in the budget, to spend $4 million for an indoor ice rink --

Which? I'm sorry, where?

Wissahickon.

Where is this rink?

Wissahickon.

Okay, but it's a non-city facility.

It's a non-city facility.

Right. 107 2/9/99 WHOLE COMM. - Budget Hearings

Which isn't to say that we shouldn't necessarily construct a new indoor facility in Roxborough. But I think that when we look at the overall needs in the Budget, we need to think about, A, what are the places we should build new facilities; and second of all, whether we may be able to leverage other resources as well.

By way of the geographic dispersement of the rec centers that we have, that is the most likely location to put a new one. It's the only unserved area by a city facility. I can't account for what private facilities do or don't do. This is a discussion about public facilities. If you look at the map, which I'll be glad to run down to the office and get, you'll see a big hole on that side of the city. That's the issue.

Well, I'm not sure the City's in the financial position where we can necessarily ignore other available facilities. I'm not saying that we should or shouldn't; I'm just saying that since I learned about this in October or November, now I don't think we're in a 108 2/9/99 WHOLE COMM. - Budget Hearings position to say that in a budget which is the Capital Budget, which is relatively constrained, where we normally have twice the amount of requests that we can fund, that a $4 million new facility relatively close to a private facility which is open to the public and of a quality that's hosted national skating events is necessarily something that we should decide on immediately, and that perhaps some more careful investigation is warranted on the part of Administration.

Well, I don't think there's any doubt that there's more careful insight that needs to be made on behalf of the Administration. I think what I'm trying to get to is some level of accommodation that at least starts the project. We don't have to make this decision today, but I think my decision on this is very clear. This is the recommended budget, there are other things that are going to come through this particular budget. And for the moment, we could leave it at that, but I think you're pretty clear on where 109 2/9/99 WHOLE COMM. - Budget Hearings I stand on this particular issue? Right?

Yes, I hear you.

Okay, thank you. Thank you, Madame Chair.

Thank you. The Chair recognizes Councilman Mariano.

Thank you, Madame President. Mr. Kaplan, you may be able to help me with this. Abandoned cars. I'm like really going nuts with abandoned cars, and I'm sure it's under the Police Department's germane (sic). Inspector? I mean, Commissioner, I'm sorry. Could we get the Commissioner.

The removal of abandoned cars would be in the Operating Budget rather than in the Capital Budget.

Okay, but I still want to talk about it 'cause I have you all here and I don't get this chance.

Well, they'll be back for the Operating Budget.

But, excuse me, 110 2/9/99 WHOLE COMM. - Budget Hearings Madame President, but yesterday I was up in the 42nd Ward at Castor -- I mean, at Rising Sun and Front Street. I mean, I can't wait for them to come back; it's that bad. All of a sudden -- and I'm sure that some other Council districts are the same way, but I can speak for mine. We need to do something about abandoned cars. I was up there with Inspector Sadler yesterday -- great guy, but I don't know if he has the wherewithal to remove all these abandoned cars. I never seen anything like it. I mean, there's hulks everywhere. There's cars that if you watch 'em over two, three weeks, I guess they're stolen. I mean, you know, who abandons a 1996 car unless it's stolen. But in a matter of days, it's stripped and it's in the middle of Rising Sun Avenue, in the middle of Rising Sun and Front Street. It just becomes a quality-of-life issue. And we're doing good things here, and I realize this is the Operating Budget, but is there any plans or anything we can do to do something? Do we need to bring the National Guard in to do this, or do we have the facilities? Should we 111 2/9/99 WHOLE COMM. - Budget Hearings transfer it out of the Police Department's hands, into maybe the Streets Department's hands like they do in New York City? (Deputy Police Commissioner Thomas Nestel comes forward.)

Tom Nestel Deputy, Police Commissioner. Councilman, we can handle that problem. What we do with the abandoned vehicles, they are contracted out to salvers to remove. We have abandoned-vehicle officers in each direct. I will personally go back and speak to Inspector Sadler, and I guarantee you, there will be some improvement.

I appreciate that, Commissioner, but you got to understand my frustration. As I ride down Rising Sun Avenue, I could be three hours late getting here for this hearing; there's that many cars. I don't think we could do it. We'd have to have 20 tow trucks -- it's beyond tow trucks now, they're flat beds. And we'd have to do it seven days a week, probably three months to get rid of some of these cars. And that's just in the 42nd Ward. We 112 2/9/99 WHOLE COMM. - Budget Hearings get down into the 19th and the 17th -- and Operation Sunrise has been helping on that, but it seems like they know where to stay out of Operation Sunrise and now it's on the perimeter areas where they're abandoning these cars. There must be some people making millions and millions of dollars stealing cars here. COMMISSIONER NESTEL: We have several salvers involved in this program, and I will ensure that they get each one of those salvers involved in removing those vehicles.

Thank you.

Commissioner, if someone reports an abandoned car, the police simply cannot go out and tow it. I think what you have to do is explain what the process is. COMMISSIONER NESTEL: Yes. But I believe that the majority of the situations that Councilman Mariano was talking about are vehicles that are actually hulks. And in those cases, we can remove those cars that are a danger to the community; we can have those remove rather quickly. Other vehicles that are abandoned 113 2/9/99 WHOLE COMM. - Budget Hearings because they don't have the proper registration or because they've been -- there is something wrong with the car but not to the point where it is dangerous, that there is a process where we have to identify the owner, we have to send out certified letters to the owner, we have to give that individual a minimum of ten days to remove it before we can then write a summons for the abandoned vehicle. We then notify the salver, who removes the vehicle. So it does take time to get that process done. But if it is a situation where there is broken glass, there is something dangerous about the vehicle, we can expedite the removal of those vehicles.

Commissioner and Madame President, that's my frustration. The whole system is antiquated. If there's a car in front of someone's house and it's blocking a driveway, certainly we can get it moved; and if it's a hulk, there's a lot of hulks now happening there because of the beginning of this process. But there's something going on in this city. All of a sudden, over the last five, six, 114 2/9/99 WHOLE COMM. - Budget Hearings maybe ten years, and it's really picked up over last two years where everybody's in the car business all of a sudden. Everybody has cars backed up against each other -- right, Councilwoman? -- so we can't see that there's no 7 tag or there's a T tag. The whole system is antiquated. If I have to have a police officer from the 25th District to go up there, he's a police officer; he's not a salver. He could be out on the street being a police officer. This whole system needs to be changed. And I would appreciate it -- I know what goes on. What happens is, they go up there and they say, Well, the gas tank's not leaking, somebody bends over and takes a ice pick and bangs the gas tank. Sure, if I was a copy, I would do it. That gets that out of there, then it becomes a hazard for the community. Or they break a piece of glass. But we need to be back at the beginning of this process and create something where actually it's out of the Police Department's hands 'cause I think, you know, the way it's always 115 2/9/99 WHOLE COMM. - Budget Hearings been here, and the new commissioner who's come -- I hear New York has a great system, and he's coming from there so he's obviously known, and I've talked to him in private. It's something we need to do. But today I'm just saying that's something we got to get into here because the quality of life for the people up in the 42nd Ward -- we talk about "quality of life" as the great buzz word, it's terrible when you walk down your street and there's hulks, plus there's cars 13 that are going to be hulks in a matter of a month. COMMISSIONER NESTEL: Councilman, we will look at the whole process, but I can tell you, believe the number of abandoned vehicles that have been removed from the past year was about 22,000. I mean, we do a lot of removal of those vehicles.

Commissioner, I don't doubt that, but I think if we remove 22,000, we're going to remove 25,000 next year, and then 30,000. Somewhere along the line, the people that create the Avenue of the Arts and create all the good things that we've been seeing here -- at 116 2/9/99 WHOLE COMM. - Budget Hearings least as long as I've been Councilman, and it has something to do with it, I guess. But we got to be able to figure out how to help the people at Rising Sun and Front with just abandoned cars. And there's other issues we're going to work on, but that is something that's really amazing. I mean, it just chases people out of the city in droves. Thank you.

I think, Councilman, you've hit a nerve. I see other that Councilpeople that want to be recognized on that. The Chair recognizes Councilwoman Miller.

Thank you, Madame Chair. I was going to ask this during the Operating Budget; however, I have the same issue. I just want to follow up on some of the items that Councilman Mariano spoke of. And one of the things I found out lately is that the City contracts with 16 salvagers to remove cars, and their yards are full. So one of problems is that there's no space 117 2/9/99 WHOLE COMM. - Budget Hearings and nowhere for them to take these cars. And we've done tours constantly. In fact, we have a nice little pilot project we're going to try in the 14th District, adding instead of one abandoned-car officer, but four more to do that to help in the effort, using injured officers that can help at least tag those cars. So my question, though, would be: Do you think you need to consider contracting with more salvagers or finding someplace else where these cars can go? Because they're all over the streets, everywhere. COMMISSIONER NESTEL: Councilwoman, in the past several years, we have increased that program from 6 or 7 salvers to salvers. We 17 accept every salary salver who fits in the criteria and meets all of the qualifications; we don't turn anyone down, as long as they meet the qualifications. So if there are other salvers who are interested in that program, we certainly will accept their application and look into getting them into part of the program. And I'll also discuss that problem with the captain of the 14th. 118 2/9/99 WHOLE COMM. - Budget Hearings

Okay, thank you.

Thank you. The Chair recognizes Councilman Rizzo.

Thank you, Madame Chair.

In the same line of questioning, Councilman?

Yes. I'd like to district my comment to the Police Department. Commissioner, I think again we have a process problem here. I have identified a vehicle that I have started to report as an abandoned vehicle approximately three to four weeks ago. The first day that that vehicle was left, it had the license plate on it. The second day, it didn't have the license plate. The third day, it had the wheel covers missing. I personally -- and I documented my calls to 911. 911 wasn't very interested in even discussing a report of an abandoned vehicle. And I'm not convinced that the police ever even got dispatched because the neighbors at this particular location -- and I'd like to not burden you with it, but I'd appreciate you having someone 119 2/9/99 WHOLE COMM. - Budget Hearings follow up with me. I think the process stinks. I think that the way we deal with it -- my three calls to 911, I was kind of like bothering the dispatchers or the call-takers even calling 911 to tell 'em about this. I said, Here's a brand-new vehicle left at an intersection. Monday, it's nice and clean. Tuesday, there's no license plate. Wednesday, there's no wheel covers. Well, I was questioned, like why am I calling because how do you know it's stolen? I said I don't know it's stolen; that's why I called the police. It's a brand-new vehicle, it's been left in the middle of the intersection. And every day, it's deteriorating more and more. Again, I think this whole process, if you need it fixed. Then you should recommend to this Council to do a new ordinance to make it easier for the Police Department to deal with this problem. Because it's a shame to have a person's car stolen, left on a city street. A citizen goes to the trouble to report it, and there's no 24 response from the Police Department. I was told by the one dispatcher that 120 2/9/99 WHOLE COMM. - Budget Hearings this probably won't get dispatched till o'clock 3 in the morning when we're slow.

Commissioner, I think you fully understand the concerns that many of the Councilmembers have regarding this issue. It is an operating budget issue. When you come in to testify -- I believe it's next week -- I would suggest that you be fully prepared to address this. COMMISSIONER NESTEL: Okay, Council President, I will.

Thank you, thank you very much. COMMISSIONER NESTEL: Councilman Rizzo, could you give me the information on that vehicle?

Sure.

Thank you. The Chair recognizes Councilman Ortiz.

This is about the budget. The Mayor gave a speech the other day at the Chamber of Commerce. And one of the things he mentioned was that the Association of Latin-American Musicians had gotten a grant from 121 2/9/99 WHOLE COMM. - Budget Hearings Governor Ridge for $2.5 million. And Congreso had gotten a grant for capital building. And for the last years, we've been trying to build a 5 cultural and art center within the barrio with an 6 anchor of the Association and the Puerto Rican 7 workshop. 8 And I've asked Greg Rost and yourself 9 about including that within the Capital Budget. 10 If the Governor is willing to put in some capital 11 funding and the mayor mentioned it as an extension 12 really of our cultural expansion and expanding our 13 art attractions and cultural attractions into the 14 neighborhood. 15 I haven't found it within the Capital 16 Budget. And I was wondering what we have to do in 17 order to begin getting the City to put as many 18 capital monies into art institutions in the barrio 19 as the Governor is -- a Republican governor is 20 doing. 21

I think -- I believe that 22 our understanding was that the State Capital 23 Redevelopment Assistance Grants in certain cases 24 were sufficient to complete projects, and others 25 weren't. In the cases where there were additional 122 2/9/99 WHOLE COMM. - Budget Hearings City funds required, our understanding was that between FY '99 and FY 2000 funds, that they were in the commerce lines. But I don't think that either of the projects you mentioned were among those, so I'll have to look into that and get back to you.

Well. It is not sufficient to complete, and I would appreciate it if we could begin being as responsive, I would imagine, as a State government. I don't expect that our contribution would be as large as the Governor's, but I think that if we're going to have an Avenue of the Arts and Center City and we're trying to create our art institutions within the neighborhoods, I think this is the best project we can have. And I'd like to begin discussions as to when we begin to include that within the budget.

Right. My understanding was that in certain cases -- the one that comes to mind immediately is Point Breeze, where the State made a significant commitment and we committed some money around that project to finish the details, that we had get covered most of those. 123 2/9/99 WHOLE COMM. - Budget Hearings But I may be mistaken. So I'll look into it and get back to you.

I understand Point Breeze, but I'm talking about extending the same aspects of Point Breeze to North Philadelphia. Thank you, Madame Chair.

You're welcome. The Chair recognizes Councilman O'Neill.

Thank you, Madame Chair. Mr. or Ms. Kaplan, I guess, to start out with, on the Vet Stadium line --

Gee, Brian, I looked at that, and I was afraid to ask a question on that. (Laughter.)

Well, maybe I should be too, but I just have a question. We were told and we've read in the newspaper as well that one of the anticipated methods of paying part of the stadium costs will 124 2/9/99 WHOLE COMM. - Budget Hearings be to bond $5 million a year because that's what it costs us t maintain the Vet. It sounds perfectly valid, if that's what it costs us to maintain the Vet and we're not going to have the maintenance cost of a new facility. But I'm just trying to see. I haven't gone back over the last ten years. But looking at these, it seems like it's a little bit less than that -- half a million, a million, three million. And could you explain that? 'Cause this anticipates us still having the Vet, I assume.

Yes. The Capital Budget, as it's presented, takes into account the fairly significant capital funding -- approximately $40 million spent this decade on the Vet.

I'm sorry. Would you mind repeating that, please?

Sure. The Capital Budget, as presented, takes into account the significant capital funding expended on the Vet over the last decade or so, about $40 million. And much of that work was completed in response to a study about in the late '80s which 125 2/9/99 WHOLE COMM. - Budget Hearings identified specific projects which needed to be completed in the then-20-year-old building to keep it operating. What we have presumed in the Capital Budget going forward was that this year, we would conduct a similar study and identify projects that are needed to take the building in and through the next decade. And that over the next several years, as we design and start building those projects, you'll see that the Capital Budget starts at $500,000 this year and runs up to $5 million by the last year of the program.

Right.

It's our belief, based on the discussions we've had with people who are managing similar-aged stadiums around the country and also our experience the last several years, that we would probably need to continue that level of $5 million a year throughout the life of the Vet, where we'd maintain that as our primary sports venue in the city. Although I have not seen the most recent proposal or a detailed proposal, but the estimates that would be spending $5 million year 126 2/9/99 WHOLE COMM. - Budget Hearings in capital are based on that assumption in our baseline budget. In addition, if we are spending $5 million in capital a year, you'll quite quickly end up spending $5 million a year in debt service. So that's -- I believe that's where the assumptions about the potential funding source for a new stadium come from.

It seems a little high to a layperson in terms of engineering and all that, because I know one of the problems with the Vet, before that ten-year period you mentioned where it was $40 million, was that there had been a whole lot of neglect to the point where there was some safety issues and things, and the Phillies started making repairs under their lease and things.

We thought that as well, actually, when we first started looking at it. And the more time we spent with this number, actually, the more comfortable we've been in the fact that this is probably in the correct range.

Okay.

Especially since, by the time we're at the end of this program, the 127 2/9/99 WHOLE COMM. - Budget Hearings building will be well over 30 years old. And you're talking about -- when you're comparing it on a stadium financing basis, you're talking about a building that will eventually be over 50 years old before the comparison term is up.

Is it paid off?

The original debt from the original construction of the Vet, I believe when we looked at it last in the fall, it will be paid off in 2001, I think. There's a fairly steep decline in the last couple years, but there are several million dollars still outstanding on that debt -- mostly principal. But that debt would be paid off before any new stadium could be constructed and opened.

Thank you.

Excuse me, don't we have PICA debt outstanding on that, too?

There is additional debt for the work which has been conducted since the facility was opened. I was referring to the debt that was used originally to construct the facility.

Madame Chair, I 128 2/9/99 WHOLE COMM. - Budget Hearings have a question on the same subject just to keep the continuity going.

I'm kind of interested in why we're talking of additional capital expenditures for the Vet Stadium. It's been my understanding that the capital funding is the long-range planning different from maintenance. It seems to me, in view of the action taken on the stadiums, that all we ought to be doing at this stage, no matter how I may happen to vote on the matter later on, it seems to me that there's a real possibility that the Veteran Stadium (unintelligible) is very rare and that we ought not to be spending on capital expenditures but on maintenance. Is there something wrong with that understanding?

Well, at the time this budget was prepared, we had no knowledge that there was going to be a bill in Harrisburg or that the possibility of a new stadium was that imminent. And even now, even though there's money coming from Harrisburg, there still is not a done deal, there's not a total financing package put 129 2/9/99 WHOLE COMM. - Budget Hearings together. There's still not a site selected. And I was think we felt it was the right thing to do to put a certain amount of money in this program to prepare for the continued existence of Vet Stadium, you know, if it's going to be here for, you know, a few years. I mean, that -- the amount of money that is budgeted can, of course, be not spent, or the future year appropriations not made if, in the next few months, you know, the course of events changes. But at the time we prepared this budget, we felt that it was the right thing to do, to maintain our assets, to put in a certain amount of money. And, as Dean Kaplan just indicated, this is a -- in the early years of this program, it's a relatively small amount of money compared to the average annual expenditure we have made over the past decade to keep the Vet in good condition.

May I suggest that there be further consideration by those who prepare the Capital Budget? There are still many, many unmet needs, and I believe that there ought to be a counter series of proposals to meet other 130 2/9/99 WHOLE COMM. - Budget Hearings needs to replace the figure of $5 million --

It's only thing $500,000, which is a very small amount of money to kind of keep pace with, you know, current capital reinvestment. And some of that money was intended to go toward a survey -- a condition or an engineering survey to determine what expenditures this facility might need over the next six to ten years, just the way a study had been done about eleven -- I guess it was ten or eleven years ago, to project what we would need for the past decade. So this is a relatively minimal amount of money. And if -- as I said, if the decision-making process should be accelerated and we really knew very quickly that we're not going to be needing this facility, we would, of course, not spend this money at all.

Well, I just thought that the Capital Budget information that you furnished us with ought to include what items have been added to the Capital Budget as a result of the availability of funding that used to go for capital funds for the Vet Stadium and which are not now needed. 131 2/9/99 WHOLE COMM. - Budget Hearings Tell us, what have you added, say, in the form of neighborhood services, that kind of thing that has been made available since you only have a half a million instead of the average of 5 million.

Well, we didn't specifically take money that would have gone for this project or any other project that's been completed and dedicate it to another project. Each year, we evaluate all of the project requests that we get to determine what are the most pressing needs, you know. And sometimes, you know, if we have a very large commitment in a year, like we had appropriated a lot of money for the new House of Corrections, for example, that means that everything in the program winds up getting proportionally less to make way for a big project. But we never sort of say, Okay, we're not spending $5 million on the Vet this year so we have $5 million to put on these five other specific projects. We have a total amount of money, as indicated by the Finance Department, and we revaluate all of the projects. 132 2/9/99 WHOLE COMM. - Budget Hearings We also look at, you know, what departments -- you know, what had been programmed previously because departments -- we encourage departments to do their planning in five- or six-year increment so that, you know, we know that if we're going to do Phase I of the Strawberry Mansion Bridge one year, we know we're going to do the second phase of it in the second year, and we better plan to have that money available, you know, while the contractor's still on the case so that there's no gap in the completion of that project.

All right. I thank Councilman O'Neill for yielding, but that's as far as I was going to go on the Vet Stadium, so I yield back to him.

There's two items mentioned. You mentioned GIS, Geographic Information Systems. Could you just tell us generally what that means and what it means to us in terms of what we have in it and what we could have in it if we had the full-blown GIS that many large cities particularly have, and what some of the capabilities are if you have the full-blown. 133 2/9/99 WHOLE COMM. - Budget Hearings I mean, there's cities that have their streets department trucks hooked up with equipment that they just -- they see a pothole and it goes right in while the trash truck, or whatever it is, is out on the street. They're very, very sophisticated. But if you could just explain just sort of some basics of what we have and what is the potential of this system, including PECO and the Gas Works and the, Water Department having everything on a --

Well, I can't tell you everything; I could tell you a certain amount.

Okay.

Or we could probably arrange for a real presentation to City Council, which might be a good idea at another time -- maybe after this budget process is over. But the Planning Commission developed the initial Geographic Information System, I guess, in the early '90s. And basically, our interest was that we could no longer maintain the City's paper maps and every time a street changed or every time a zoning changed, record that on the 134 2/9/99 WHOLE COMM. - Budget Hearings maps; we just didn't have the staff to be able to do that. We knew that there was this new technology that seemed like the way to go. And we also recognized that once we developed the basic map of the City -- that is, put the map of the City in digital form so that it could be, you know, printed out by computer, that other departments would find this useful. And, in fact, we worked really from the beginning with a task force of departments that would be most likely to be interested in this. It's developed to the point where -- I mean, there's certain information we have. The City zoning map is in the computer, the basic street map is in the computer. We have all of the City's capital facilities in the computer. And I think it was two or three years ago that we provided each District Councilperson with a map in their district of all the capital facilities, which is the first time I think we've ever been able to really do that so that the people could see at a glance the relationships of these facilities. We --

Are all of our 135 2/9/99 WHOLE COMM. - Budget Hearings underground utilities in the system?

No. I think --

As some cities, I believe have.

No, I don't believe they are now. Probably you could get more technical information from the Water Commissioner and the Streets Commissioner here. The Water Department undertook an aerial photography program to be able to improve the quality of the maps. We put in the computer the maps that we had the Planning Commission -- warts and all. Whatever inaccuracies there were in the paper-copy maps, that's the way they went in the computer because to stop and correct all them, those maps, and make them perfect, we would never be able to develop a system. But now those maps are being perfected as a result of the aerial photography that was undertaken by the Water Department. And perhaps the Water Department is undertaking its own enhancement to the system, as is the Streets Department. They could tell you in 136 2/9/99 WHOLE COMM. - Budget Hearings more in detail exactly what those enhancements are.

Who would coordinate it? I mean, is someone in charge that would say if the Gas Works, you know, all of their systems should be in our GIS, and let's get that done. The Water Department, everything, all the pipes in the city and everything should be in our GIS, let's get that done. Or go over to the electric company and say, We think it would be in your best interest and ours -- 'cause they probably have their own GIS anyway -- and incorporate it into ours. It just makes all kinds of sense to have as much information in there as you can. Is it part of your structure or --

I don't know currently. I know in the early stages of this, the gas company and the electric company were not interested in participating directly in the development of the system. That may have changed because I haven't been at recent meetings to discuss this. The MOIS is kind of -- now that, you know, we kind of got it past the developmental 137 2/9/99 WHOLE COMM. - Budget Hearings stages, is really taking the lead on this.

Okay.

There is a users group that meets periodically with all of the agencies so that everybody knows what they're doing and there's sort of common protocols for making additions or changes to the file. I mean, there's a lot of activity going on around us. I don't pretend to know everything that is going on; I have a general sense of what is going on. As I said, it might be a good idea for Councilpeople and their staff that are interested in this if we arrange a special session where we can get into more of the technical details, and you can have an opportunity -- maybe have it either over at the Planning Commission or MOIS and see exactly what's involved in the system.

Okay.

Certainly, I agree with you. WE haven't moved as fast as some other cities in doing this. Largely, that's just a question of how much in the way of financial resources we could devote to this. 138 2/9/99 WHOLE COMM. - Budget Hearings But I think the more the system has become developed, the more departments are finding it useful and starting to understand in what way they could further enhance the system to suit their own particular needs.

Okay, okay.

So that's a general answer.

Madame Chair, I don't want to be disrespectful, but I would hope we could have either MOIS or someone that is over this just give us a brief -- we don't need the full-blown, you know, techie. We want to understand just what is in it, what could be in it, what do other cities have, what's our long-range goal. 'Cause my understanding is from other cities that have really gotten into this, that it has been nothing short of miraculous, what they've been able to save, what they've been able to stretch their resources to do. And it's a good economic development tool as well, from what I understand. So I would just that hope at some 139 2/9/99 WHOLE COMM. - Budget Hearings point, we could plug it in. I don't mean to disagree. It's just -- I'm thinking of something a little smaller than what would be more of a technical presentation outside the budget process. I'd just rather see -- it's all capital money, I think, that's used for --

Well, no. There's also a lot of --

Operating money too?

Operating money is also --

To set it up as well?

-- used because a lot of parts of this are not really capital.

Software, that type of --

It's only when we make a major investment --

Okay.

-- in something that we put it in the capital.

We can wait for the operating. I don't have a particular problem 140 2/9/99 WHOLE COMM. - Budget Hearings with that.

Thank you. The Chair recognizes Councilman Rizzo.

Yeah, to follow up on a subject that Councilman O'Neill's discussing, I'd like to ask about this PEGA system -- Project Enterprise Government Application System. I understand that we're developing a system from scratch or possibly that being software at a cost of three quarters of a million dollars. I'd like to know if so and we're developing this program, are we licensing it? Or why are we developing a program if there's something out there? I mean, this costs three quarters of a million dollars.

Councilman Rizzo, we went through a multi-, multi-month make-vs.-buy analysis where we looked at all of the software systems that are available on the marketplace, and did demos of them and had cost estimates done to see if they fit the needs of the City. And, in fact, what we decided was to actually do a "make situation" based on the Microsoft Office projects -- excuse me, the Microsoft family of products. 141 2/9/99 WHOLE COMM. - Budget Hearings And we're going to be changing our Paradox data base that the City has used for the last, I don't know, eight, ten years, converting it into an access data base, and we're going to be doing integration using the Microsoft Project products to actually incorporate a complete hand-in-glove relationship between the budget management and the project management.

Well, if we're developing something, are we possibly going to make some money from developing this product? Are we going to license it or are we going try to sell it to other municipalities and cities? Currently, we put a lot of effort beyond this 750,000 into this project, so is this going to benefit us and other places and make some money on this thing?

I think that's a good suggestion. My understanding is that there's some fairly tough restrictions on how the City can charge for products like this that it develops beyond recouping its own costs, but we can --

Just recoup our own cost. 142 2/9/99 WHOLE COMM. - Budget Hearings

Right. We can explore that with the Law Department, and I think that's a good suggestion.

Okay. Now, I have a question to Dean Kaplan. It's in reference to Fleet Management. I really try to read this stuff, and I don't want to use the word "confused," but sometimes I scratch my head. Who does Fleet Management report to?

The Fleet Management office is run by Deputy Managing Director Riley Harrison, and he reports to the Deputy Mayor for Management and Productivity, Linda Berkowitz.

Why isn't Fleet Management part of the Operating Department since they support all of the operating departments? Why isn't the Managing Director have oversight of Fleet Management?

When the original executive order was drafted for Fleet Management -- and this predates my taking this position so I'm not familiar with all of the details, but it was originally a Management and Productivity initiative of the Administration, so it was placed 143 2/9/99 WHOLE COMM. - Budget Hearings under the Management and Productivity umbrella. The executive order does provide for the eventual return of Fleet Management to the Managing Director's supervision.

The reason I bring this up is the that it seems as though monies that support the fleet are just spread all over the place. I see a million dollars for a new fire boat in Fleet Management's budget. Then -- a department near and dear to you -- I go and see $6.5 million for vehicles in the Water Department. I find out that when we go to get a City vehicle washed, that it's being charged to the department that operates that operating department. Has anybody ever thought of bringing all this back into Fleet Management so that there's some semblance of order? It just doesn't make any sense to me that we have a Fleet Management department that's responsible for all of the vehicles and all of the operating departments, and then the operating departments don't have any -- well, they do have input, but it appears that the Managing Director doesn't have 144 2/9/99 WHOLE COMM. - Budget Hearings any responsibility of Fleet Management.

A couple of different issues. In general, fleet monies are appropriated to Fleet in the Operating Budget, with the one exception you mentioned, which I'll address in a second. What happens is that when you go back and look in the Operating Budget, you'll see that the Fleet Management has an appropriation in several different funds, so that won't see it in the Capital so much, but in the Operating, you'll see Fleet Management. And under that, they have a Water Fund appropriation and an Aviation Fund appropriation because, obviously, those, for a variety of reasons from an accounting point of view, it's more sensible for us to appropriate the Water and Aviation and other fund expenses to Fleet directly from those funds. So the reason you'll see different departments listed that way in Operating is for that reason. The specific case you mentioned in Operating about car washing is one that you had raised last year, and we did change in this year's budget, in the proposed 2000 Budget, all of the 145 2/9/99 WHOLE COMM. - Budget Hearings car-washing expenses are in Fleet Management. On the Capital side, the reason you see a difference is that due to a quirk in the way that the Water Department's vehicle purchases are charged to their suburban wholesale customers. It is to the great advantage of the City for the Water Department to purchase vehicles with -- with using the Capital Budget and using debt that approximates the life span of the vehicle so that you would issue a five-year bond for a vehicle that was going to last five years -- although most of them last longer. And I'd be -- that's a fairly -- it's a fairly lengthy discussion which I'd be happy to go over in more detail whenever that's appropriate. In the Capital Budget, most of the Fleet expenditures are in Fleet. The Water vehicles are in Water. The Aviation vehicles, again, because of the quirks of accounting and how they receive their funding from the airlines, their vehicles are in the Operating Budget in Aviation appropriation to fleet. So the fleet is in different pieces and mostly for accounting reasons, but if you ask 146 2/9/99 WHOLE COMM. - Budget Hearings Fleet what their budget is, they'll say, We have X-number of dollars in Water capital, Water Operating, General Fund Operating. I mean, they're coming from different places, but it is an integrated budget, which is not unlike a number of other departments.

Does the Water Department have automotive engineers and people within the Water Department that oversee the fleet? Of we combined and gave Fleet Management the responsibility that we could save some money in consolidating that effort? Because, Dean Kaplan, knowing you, you could probably figure a way to do these accounting things and maintain that -- and have Fleet Management be that responsible agency.