Will you contract it out or is it done in-house? Are you going to hire someone to do the training?
Well, the money that we have in the budget would be for consultant services to contract it out, although I would add that we do a good bit of training within the City government with our own staff.
Do you presently have as consultants any training consultants presently hired by the Department?
The Office of Personnel Management, as part of the work that they're doing with us, that includes a training component, but it's training in terms of using --
How diverse is 1448 2/23/99 - WHOLE COMM. - Budget - 990023 their staff?
But still, in whatever you do there, it has to be people who are sensitive to the entire cross-section of the population, so how diverse is their staff? No 12 matter what they're doing.
What consultants are working now with the Department of Personnel, and what does their staff look like?
Currently, the consultants that we have on board at the present time include a number of psychologists. They -- and the psychologists are responsible for the pre-employment psychological evaluations for police officers and correctional officers. They represent a diverse group of individuals. We -- in addition to the OPM 1449 2/23/99 - WHOLE COMM. - Budget - 990023 consultants, who are women, the principals we're working with our women, I think we also have one other fairly sizeable contract, and that's a test development contract for one of our uniform tests.
No, the last group you just mentioned. The last group you just mentioned.
Oh. The consultant who's doing the work on one of our uniform tests is a -- is a white male. However, he's a white male who has a demonstrated record of addressing diversity issues.
What are career advancement promotions and who do they affect?
Career advancement promotions are for individuals who come into the City government at the entrance level and promote 1450 2/23/99 - WHOLE COMM. - Budget - 990023 up through -- up to a journeyman level or full-performance level based upon satisfactory completion of their training and experience. For example, someone who comes into the City as an entrance-level clerical person is automatically eligible for a promotion to the next level upon completion of a certain amount of experience and satisfactory job performance. And there are -- there are a fairly sizeable number of classes within the City government that work the same way. I can provide you with a complete list if you'd like to see it.
So every promotion now is not specifically based on an examination?
No. A career advancement promotion is an automatic promotion, assuming that the individual, you know, meets the requirements and has, you know, performed satisfactorily.
Thank you. Miss Seyda, I realize that since we went out of order, you never made your oral presentation, but we do have copies of your 1451 2/23/99 - WHOLE COMM. - Budget - 990023 testimony. And I will give a copy of your written testimony to the stenographer so that it will be made a part of the record. I don't know if there's something that you would like to add to what has already been asked of you.
Thank you. At this time, the Chair recognizes Councilman Kenney.
Thank you, Madam Chair, and I apologize for being late. I heard a portion of Councilmember DiCicco's questions relative to the legislation that was introduced by myself relative to the waiver of the pre-residency requirement for application. Just for the record is clear, there were two pieces of legislation introduced. One dealt specifically with the Police Department because at the time, the assessment was that that was the easiest to get passed or at least to have considered. And it was confined to the military 1452 2/23/99 - WHOLE COMM. - Budget - 990023 bases because of the discussion I had with both the Department and with the union as it related to waiving this pre-residency requirement. The second piece of legislation is a request to waive the residency requirement for all City employment because in the end, it's my belief that because of the City's situation competitively now, it is inappropriate to have this one-year pre-application requirement, although I am in favor of requiring employees that are offered jobs to move within the City within six months. I think, and it's my personal belief that we should extend that pre-residency waiver to any person from anywhere in this country that would like to apply for any job, whether it's the Police Department, Fire Department, clerical, or any position in the City. I think that what we can do, hopefully, is use our employment opportunities as a resource to bring new families and new people into the City of Philadelphia to live. That's something that the Civil Service Commission's dealing with the Police Department end of it. Whether or not this Council this term 1453 2/23/99 - WHOLE COMM. - Budget - 990023 will deal with the overall residency issue or whether it's something that has to be in arrearages next term, but that's the clarification that I'd like to add to the record as a result of Councilmember DiCicco's question. Thank you, Madam Chair.
Thank you. The Chair recognizes Councilman Rizzo.
Thank you, Madam Chair. I want to follow up on the question when I asked about the Police Department not reaching out to part-time police officers in the suburban communities, and you responded that they hadn't asked. Could you tell me the services that the Personnel Department provides the operating departments? If they're not doing something that's obviously something they should be doing, does the Personnel Department ever proactively write or send a letter to a commissioner saying, Here are some things that the rest of the world does, maybe you would want to consider doing them? If they haven't asked, did the Personnel 1454 2/23/99 - WHOLE COMM. - Budget - 990023 Department ever suggest they should?
Well, in answer to the first part of your question, we work cooperatively with the departments. And I think that when I talked about recruiting and setting up a recruitment advisory committee, I think that's a good example of where the Personnel Department is working cooperatively with the departments to improve on an overall citywide basis how we recruit people for employment in the City. We also, on an ongoing basis, work with the departments in terms of looking at their affirmative action activities, and each of the departments reports to us on a biannual basis in terms of what their activities are in terms of meeting their affirmative action goals. We work with the departments in terms of, you know, monitoring different types of employment transactions. So I think we'd like it to be a cooperative kind of give-and-take kind of situation. But, yes, we very much so, on an ongoing basis, work with the departments to ensure that the employment practices throughout the City 1455 2/23/99 - WHOLE COMM. - Budget - 990023 are fair, that they're equitable, and that we are hiring the best qualified -- that we are hiring and promoting the best qualified employees for the City government. Your more specific question, I believe goes to recruiting police officers. I think, as I indicated earlier, we are having some ongoing discussions with the Police Department concerning police recruiting, and I think it's, you know, premature to say that they haven't asked, but we are talking with them.
Do the various departments that you hire for look at you as a consultant person that can be a problem-solver in the event that they have an issue that they're dealing with, a dilemma, that you have staff that can analyze a particular problem that they're experiencing with and say, Here's how you solve it in a cooperative manner? I've asked various departments the role that the Personnel Department has, and I haven't hoard anyone that I've talked to anyway express that that service is something that you provide.
Well, we certainly -- it's 1456 2/23/99 - WHOLE COMM. - Budget - 990023 certainly a service that we would like to encourage.
What does that mean? That they're not asking, and you're not --
I mean philosophically, the Personnel Department plays two roles. And one of our roles -- and it's a primary role -- is to serve and support the needs of the operating departments. We also, on the other hand, wear sort of an enforcement hat, and we also have responsibilities under the Charter to ensure that the City's employment practices are fair and are merit-based. And in that role, we play -- we have more of a control role. So we have a dual role. Sometimes it's a conflicting role, but we have both a service role and a control role. We try very hard to encourage and support our departments and to do it in a way that that's cooperative and helps them meet their objectives.
The only reason I ask this question is that you were very quick to point out that they hadn't asked. Now, if you 1457 2/23/99 - WHOLE COMM. - Budget - 990023 were doing what I described, they might not have had to ask; they might have had a few solutions to the dilemma, the problem that they're dealing with. My point is that possibly your organization has the expertise to deal with some of these hiring issues, and I think they'd be more than happy to hear from you.
Thank you, Madam Chair. Miss Seyda, could we go to your statement, your written testimony. Under "Diversity of the Workforce," your second paragraph, the City has been making steady progress in this area. Since 1987, minority representation the City workforce has grown 12 percent. Could you tell me what the percentage 1458 2/23/99 - WHOLE COMM. - Budget - 990023 was back in 1987 and what the percentage is mow? I'm not sure how to interpret percent. It may 4 be a meaningless, insignificant figure 'cause if 5 it's 12 percent, say, of 12 percent, it's hardly 6 anything, but I just can't interpret that 7 sentence, I'm not sure what it says. 8 It looks good but I'm just not sure 9 that it means anything. 10
What was the 12 percentage of minority representation in the City workforce in 1987? And then what is it today?
In 1987, the African- American representation in the workforce was 42.8 percent.
Yes. And the Hispanic representation in the workforce in 1987 was 1459 2/23/99 - WHOLE COMM. - Budget - 990023 1.68 percent; it's now 3.02 percent.
Could you give me the 1987 again? I couldn't quite get it. It was 1. what?
Latino representation in the workforce in 1987 was 1.68 percent.
How does that Latino representation compare with Latino representation or portion of the population? My impression is that the Latino percentage of population is much larger than 3.2 percent in the City today, but I'm not certain of what the percentage is.
Well, the comparative employment market for African-Americans at the end of 1998, was 38.1 percent; and for Hispanics, 3.8 percent.
That's the comparative employment market. 1460 2/23/99 - WHOLE COMM. - Budget - 990023
What does that mean, "the comparative employment market"?
That's not what Miss Seyda is saying; she saying 3.8 percent.
Yeah. That's looking at the employment market as opposed to the population of the City. If you --
The employment market, that's those individuals who are in the workforce, are eligible to be in the workforce. It's not necessarily your total population because, obviously, it doesn't include --
So that would indicate -- so you're saying, for example, in the Latino population, it may be that there are more children and, therefore, the employment market is much below the actual percentage of Latino 1461 2/23/99 - WHOLE COMM. - Budget - 990023 population in the City? I'm just trying to get an understanding of what it means.
Right. The percentage of Latinos in the total population is higher than the percentage of Latinos in the employment market.
Well, let me raise -- go back to the African-American population and employment.
From just visual observation, I think that the Sanitation Department, the people who pick up, collect the trash, seems to be very heavily African-American. Do you have any percentage on that?
I'm saying that if we remove the Sanitation Division from the rest of the City departments, what would be the percentage of City employees who are African-American? Because in the Sanitation Department, I assume, it may we well be 90 percent of the blue-collar workforce; it may be higher.
That's probably true. 1462 2/23/99 - WHOLE COMM. - Budget - 990023
Can you get that information? You may not have it available now.
I do not have it, you know, readily available right in front of me, but it's very easy to obtain. We have the data and we can give you those numbers.
All right. If you would furnish it to the President, we can't have it circulated.
Then if further down on the same page, the Customer Service Center, where is that located?
The Customer Service Center is located in space on the 16th floor of the Municipal Services Building.
And is that where people can actually go? 'Cause I notice you have a lot of phone call, but I think there's much of the population that likes to come down and visit. 'Cause with all of the phone -- choosing, you know, listen carefully and choose which one, I think people are getting turned off a bit by the use of the telephone. 1463 2/23/99 - WHOLE COMM. - Budget - 990023
Well, for those who would like to talk to a real person, yes, our staff is available to any member of the public who walks in, who has questions about City employment, how one applies for City jobs, how the City's employment program works.
Are they available to people who come visit? Is what you're saying?
All right. Now, with respect to the health benefits, does it -- say, the District Attorney or the Register of Wills or the City Council, one of the independent departments, would they have the right to negotiate their own health contracts, for example? Is there anything that compels the 1464 2/23/99 - WHOLE COMM. - Budget - 990023 independent departments to participate with the departments under the jurisdiction of the Mayor?
All of these -- all of the health and welfare benefits for non-represented City employees are all negotiated centrally by the City.
Well, that's the fact now. Do you know whether or not that has to be the fact by law?
So the City Solicitor would probably be the proper person to determine that.
Now, how does the City Council, for example, participate? There was very much unhappiness in the City Council about the enormous increase in costs of prescription drugs, of visits to doctors. There was a great deal of concern that, in many cases HMOs, which were supposed to offer less benefits, in fact, apparently offer -- at least in some cases -- more 1465 2/23/99 - WHOLE COMM. - Budget - 990023 benefits than Personal Choice, which costs more. So employees didn't know about it, nobody participated, nobody knew anything about the changes until the information was given, with a very short time to sign up. How does City Council as a body get to participate in the negotiations? Is that possible?
We would certainly be willing to have some discussion with you and with other interested members of Council.
All right, 'cause I think that that's a serious concern. Some individuals have reported that -- who are in Personal Choice have learned that people in certain HMOs have better prescription, eyeglasses benefits, maybe other benefits. And they're strung by it 'cause the cost to HMO is much less. They don't know whether, you know, it's balanced out. They don't know why Rite Aid, for example, on the prescription plan has increased its costs 500 percent since its inception was the inception dollar for prescription drug, was that just like a come-on, like some of the sale signs are, you 1466 2/23/99 - WHOLE COMM. - Budget - 990023 know, we'll bring you in, and then, boy, we'll sock it to you good once, you know, once become our customers. 'Cause it has all the earmarks of that. And I just think something has to be done to permit a broader participating by groups in the bidding process. Is it that the Mayor decides? And I don't mean this criticizing 'cause I know the Mayor and the people that act for him have a tough problem on the budget.
But is it that they're the ones that make the decision as to how much employees shall pay so that, in effect, a pay increase can be negated by increasing the costs of prescriptions and keeping the City's share of the costs lower? I mean, there are all sorts of questions like that. And I just think there's got to be some way of discussing it and some way of making the employees, particularly the non- represented employees, the exempt and the non-represented, there's got to be some way to make them feel that they're not just sitting ducks 1467 2/23/99 - WHOLE COMM. - Budget - 990023 when it comes to insurance and that they're going to find their costs constantly rising by enormous figure figures. There was a 100 percent increase in what you pay to doctors just this one year. I think it went from 5 to 10 either this year or the year before.
If I could just make a comment on just the prescription drug question generally. And I'm sure that you've seen some of the same information that we have in terms of the increases in prescription drug costs. Generally, this is not something that affects just the City of Philadelphia or just the employees, the non-represented City employees. I know all of the employee organizations are struggling with the same issue and all employers are struggling with the same issues. I mean, we're seeing faster and higher increases in prescription drug costs than in probably any other segment of the health-care industry. And it's certainly, you know, an issue that is of concern to us, just like it's a concern to every other employer.
Except that in this 1468 2/23/99 - WHOLE COMM. - Budget - 990023 relationship, I understand that whenever the employees pay more, it saves the City money. The City pays a monthly fee, and it appears to me -- I may be wrong -- but it appears to me that what happens is that the City, without consultation anyway with anybody else, the City decides whether the increase should be borne totally by the employees or by the City or whatever percentage it should be, the cost should be divided between them. It seems to me the employees are paying a disproportionate share. With respect to prescription drugs, I do not believe that there's been a 500 increase in the period of the Rite Aid contract. And that's the reason I'm concerned that the dollar prescription figure originally given was just a come-on to make the Rite Aid program very attractive to the City.
Well, on that, if I could just add that the City did absorb a 10 percent increase in the cost of prescription drugs this past year, in 1999. And I would also add that --
Ten percent, did you say? 1469 2/23/99 - WHOLE COMM. - Budget - 990023
But the employees had a 100 percent increase, from $2.50 to $5. And that's the kind of problem that --
In 1998, the City did increase the employee co-pay from $2.50 to $5. That is certainly consistent with the co-pay of all other represented City employees. And I would add that in this day and age, a $5 co-pay for prescription drugs is very low, and you're seeing many employers putting in co-pays that are higher than $5.
Wasn't the $1 much lower than all other plans at the time the City first hired Rite Aid? And the same argument could have been used for a $5 co-pay then. It would have been in line 'cause I think the State was at least $5 at the time we got the $1. I mean, it just seems we were offered a great bargain to entice the City; and since then, the whole arrangement seems to have changed. Therefore, I'm urging, Madam President, I hope we can pursue this in City Council. I think Councilman Nutter and I have resolutions in 1470 2/23/99 - WHOLE COMM. - Budget - 990023 City Council calling for a full hearing and investigation. I think that we ought to be asking the City Solicitor for an opinion as to whether City Council has the power to negotiate its own health services contract. We may decide to do it or not do it, but we can at least get into the ball field and see how we will do. Because as far as -- did anybody participate in City Council, as far as you know, in --
In the plan? It was my understanding we couldn't find a word out in advance. All right, thank you very much. Thank you, Madam President.
You're welcome. The Chair recognizes Councilman Rizzo.
Thank you, Madam Chair. Miss Seyda, could you explain to me the role of the Personnel Department as it pertains to Employee Assistance Programs, how the vendors are 1471 2/23/99 - WHOLE COMM. - Budget - 990023 hired that service employees with drug, alcohol, or other problems that they need assistance with?
Within the Personnel Department, we administer an Employee Assistance Program for non-represented and represented employees in the executive branch of government. We have had that program in place for a number of years. Represented employees have basically run their own employees assistance programs and have funded those out of either dues, money, or other funding that they have. And so those programs have been pretty much under their purview. The program that we have been responsible for has been just the small piece of the program that Family Services of Philadelphia runs for us.
A City employee that's not represented that has an alcohol, tobacco -- or an alcohol or a drug problem that is referred to an outside agency, non-represented.
The Personnel 1472 2/23/99 - WHOLE COMM. - Budget - 990023 Department administers that?
What audits are done to assure that we're getting our money's worth, that, in fact, they're not padding the books, saying services were provided that weren't? What oversight do you have? I appreciate you providing information to the Chair on the number of organizations companies, whatever you'd like to call them, that provide services to City employees and get paid -- I understand there's a co-pay where the employee has to pay $5, $10 each visit, and then the rest is picked up by either the City or medical coverage. How do these companies that provide these services get compensated?
Well, for non-represented and exempt employees in the executive branch of government -- 1473 2/23/99 - WHOLE COMM. - Budget - 990023
-- we have a program that is provided by Family Services of Philadelphia. We do review, you know, their activities to, you know, ensure that they're appropriate. We do so -- because there's a high level of confidentiality in the service that are oftentimes provided by these organizations, we do need to protect that information. But we do, on a regular basis, review the activities of the provider. That would be for the City-administered programs. The unions are responsible for any programs that they sponsor. And we don't have a formal role in that process.
Well, the executive and the legislative branches of government, the non-represented folks.
At this point in time, I do not believe that City Council participates in the program that -- 1474 2/23/99 - WHOLE COMM. - Budget - 990023
But if a City Council employee needed that service, how would they get it? I believe it's part of that executive -- it's grouped in there, at least I believe it is.
Actually, I do not believe that City Council is included in the EAP program that we administer.
Well, we would be happy to have discussions with Council if that's deemed appropriate.
You're saying today that the only department that the non-represented people are the executive level of government that would be eligible if the need arose to participate 1475 2/23/99 - WHOLE COMM. - Budget - 990023 in an employees assistance program?
When we set our program up, City Council was not included. I'm not quite sure how or why that happened. All I can basically say is that -- I mean, I know that the program that we administer does not extend to Council and it does not extend to the courts.
Would the employes's insurance cover it and not need to be covered by your administered program?
Oh, absolutely. I mean, there are substance-abuse benefits that are provided through all the health-care programs. And, in fact, the Employee Assistance Program that we have is structured in such a way that it's a counseling program that directs people and assists them in accessing other services in the community, and that generally is the employee's health-care provider.
I'd be interested in that information. Thank you. Thank you, Madam Chair.
Thank you. Are there any other questions or 1476 2/23/99 - WHOLE COMM. - Budget - 990023 comments from any members of Council for Miss Seyda? (No further questions.)
Thank you. The next department to testify is the City Representative and Director of Commerce. (Stephen Mullin and Charlie Isdell come forward.)
Please identify yourself for the record and proceed with your testimony.
Good morning. My name is Stephen Mullin, I'm the Director of Commerce and City Representative. And with me here today is Mr. Charlie Isdell, Acting Director of Aviation. We're here to present testimony for our FY 2000 budget. And if I may, I'll give a brief summary 1477 2/23/99 - WHOLE COMM. - Budget - 990023 of that and then open it up for questions.
Thank you. The City Representative and Department of Commerce is presenting a $210 million , roughly 750-employee budget today for FY 2000 operations. And it is broken up in several categories that I would like to briefly give an overview. The Office of City Representative provides support to, first, special events. The special events functions, there are approximately 40 or so events during the course of the year, including the Easter Promenade, Israeli Day Parade, (it used to be) CoreStates Pro Cycling Championship, the Greek Picnic, Liberty Medal Presentation, and the Philadelphia Marathon. In addition, the Office of City Representative, in the person of the Deputy City Representative Bonnie Grant is working with Carol DeFries of my staff to join me in cochairing the College Retention Committee, which was established last year. The Office of City Representative also provides support to arts and cultural activities 1478 2/23/99 - WHOLE COMM. - Budget - 990023 and technical assistance to local, cultural, and arts organizations, and staffs and supports the activities of the Art Commission. Those are two of the primary functions of the City Representative side of our office. The Commerce side of the office and the Aviation side of the office are two other main portions. The Division of Aviation -- and I've asked Mr. Isdell to make a very brief presentation -- oversees the various planning, operational, and development activities associated with the both the International Airport and the Northeast Philadelphia Airport. 5 million of that is a General Fund request. Our Grants Fund request is $10 million. The Hotel Tax Fund -- which, as you know, is the depository and the fund out of which we pay the hotel tax payments to the Pennsylvania Convention Center Authority and to the Convention and Visitors Bureau -- is $25 million this year. And the Aviation Fund is approximately $75 million. 8 million Community Development Block Grant Budget Fund for the 1479 2/23/99 - WHOLE COMM. - Budget - 990023 Department of Commerce. 5 million of court saving if the State should meet its legal obligation to fund the courts. 2 million of that, or 30 percent, represents our Convention Center lease service fee. It's the payment we make at the beginning of the year, and it gets offset at the end of the year by the hotel taxes collected and passed through the Hotel Tax Fund. 8 million, or 5 percent, will be utilized for basic departmental operations. , which is supported with a 1480 2/23/99 - WHOLE COMM. - Budget - 990023 $500,000 annual grant. 5 million that Council provided during the current fiscal year to the Philadelphia Cultural Fund. So a combination of two major subsidies for outside funding are Historic Philadelphia Inc. and the Philadelphia Cultural Fund. The Cultural Fund, as some of you might know, during FY '99, made grants to 182 local arts and cultural institutions, including the Asian Arts Initiative, the Minority Arts Resource Council, the Philadelphia Dance Company, Painted Bride Arts Center, the library Company of Philadelphia, and the Philadelphia Art Alliance, and probably about 175 more entities. The Commerce Department also functions as a coordinating entity for the City's economic development programs and initiatives. Commerce directly managers the State Enterprise Zone Program, the Neighborhood Economic Development programs for the City, both the Community Development Block Grant and works with the 1481 2/23/99 - WHOLE COMM. - Budget - 990023 economic development-related Capital Improvement International Business Development. The Sister Cities Program is run out of our office through a contract with the International Visitors Center, which is co-located with us at 1515 Arch, and the business services function of the City, through the Mayor's Business Action Team, which is a division of the Commerce Department.
We also contract with and work closely with both the Philadelphia Industrial Development Corporation and the Philadelphia Commercial Development Corporation to deliver loan and financing programs and other business services on behalf of the City, including contracts with PIDC for the Economic Stimulus Funding and administering that funding program. For FY 2000, we plan to submit a request and will be reviewed with the regular Block Grant Budget after the Operating Budgets here at Council. 8 million. 2 goes to the Commercial Development Corporation (PCDC) for both operations and for their loan and financing programs. And 1482 2/23/99 - WHOLE COMM. - Budget - 990023 $290,000 goes to the Philadelphia Industrial Development Corporation for the administration and implementation of our various loan programs. 3 million, or roughly 40 percent of that, for our staffing for both administration and for our Neighborhood Economic Development programs, including our activities with the Empowerment Zone and Enterprise Zone programs. Now, if I may, if I could turn the mike over to Charlie Isdell and ask him if he could give a brief overview of the Aviation Fund.
Good morning. Thank you, Steve. The Philadelphia National Airport, as you know, was the fastest growing airport in the United States during calendar year 1997. 5 million passengers. It's anticipated, when the rankings are 1483 2/23/99 - WHOLE COMM. - Budget - 990023 released of the top airports in the United States this spring, that Philadelphia International will be among the top airports for the first time 5 since the early 1980s. 6 Specifically, our international traffic 7 increased to 2,450,000 passengers in calendar year 8 1998. 9 million international passengers who used our 10 parent in 1997. Over the past two years, 11 international traffic has increased at our airport 12 at a rate of 58 percent. We now have daily 13 nonstop service to Rome, Paris, London, Madrid, 14 Frankford, Munich, and Amsterdam. 15 Recent developments include this past 16 year's new service by US Airways from Philadelphia 17 to London's Gatwick Airport, which started last 18 April 1st, and to Amsterdam last April 29th. 19 Northwest Airlines followed shortly thereafter 20 with its own nonstop to Amsterdam on May the 1s. More recently, Air Aruba commenced nonstop to Aruba four times a week on December 11th. In the coming months, before the end of this fiscal year, Lufthansa Airlines will be re-initiating daily nonstop service to Frankford 1484 2/23/99 - WHOLE COMM. - Budget - 990023 effective March 29th. And US Airways will add a second flight to Paris effective March 1st. US Airways has also applied to the US Department of Transportation for the authority to initiate nonstop service from Philadelphia to Milan, Italy. We expect a response on that application by the end of this month. Some of the accomplishments we achieved with budget appropriations approved by this Council in the past year have included a first-class food, beverage, and retail concession program. By the end of this fiscal year, 131 locations will be open to provide both national brand and local products to the traveling public at competitive street pricing. We completed negotiations in December 1998 with Atlantic Aviation as our new fixed-base operator at both PHL and Philadelphia Northeast airports. We initiated a new Visual Arts Program in July of this past year, which presents rotating exhibits throughout the airport complex in a variety of media, including fine arts, ceramics, sculpture, and photography. And in that program to date, we've emphasized artists from the 1485 2/23/99 - WHOLE COMM. - Budget - 990023 Philadelphia region. We also provided during calendar 1998 a number of new amenities for the huge increase in international arriving passengers that we've experienced in our Terminal A. That program included a video wall prior to the escalator leading to the immigration hall. Also, a series of video monitors with multilingual directions for arriving passengers. Those languages are English, Spanish, French, Italian, and German. And we have set up a workforce of uniformed personnel to try to greet and expedite international passengers. And that workforce breaks out food and beverages whenever there's a delay of more than 30 minutes in the international arrivals area. The Airport is also proud of the fact that it's kept its costs competitive and actually reduced costs to the airlines. 6 million in Fiscal 1999. 1486 2/23/99 - WHOLE COMM. 36 per passenger in Fiscal 1999. We're also very proud of the fact that the bond rating agencies have improved our bond ratings within the past months. Moody's moved 8 its rating to an A for the first time in 14 9 years. Standard & Poor's upgraded the Airport's 10 bond rating from A- to A, and Fitch IBCA affirmed 11 the current rating of A, which was already in 12 place.
Some of the things that we're doing large projects to accommodate the incredible growth that we have experienced in the past few years include the completion by the end of this year of a $221 million 5,000-foot commuter runway, the construction of a $295 million 12-gate international terminal (dubbed "Terminal One"), which is scheduled for completion in May of 2001, and the construction of a $57 million 38-gate commuter and jet terminal (Terminal F) scheduled for completion in late 2000. 8 million. That's an 1487 2/23/99 - WHOLE COMM. 4 million. 9 million. This includes appropriations in the Police, Fire, Fleet Management, Public Property, Law, and Finance departments, as well as the Sinking Fund Commission, which will be fully funded by revenues from the operation of the City's two airports -- Philadelphia International and Northeast Philadelphia Airport. These non-tax revenue sources include terminal building space rentals, landing fees, net parking revenue, concession fees, and other revenue sources. As in previous years, no General Fund resources will be used to support operations at either Division of Aviation facility. And I want to thank Madam President and Councilmembers for your support in the past. And we're available for questions.
We thank you for doing such a wonderful job, Charlie.
Mr. Mullin, 1488 2/23/99 - WHOLE COMM. - Budget - 990023 what is the requested funding level of the Economic Stimulus Program in FY 2000? Can you tell us, have any of these funds been committed at this time?
Yes. May I interject one quick note, Madam President and Madam Chair? Downstairs, you might know that -- people might know that this is PAL Day in the City.
And I've been joined by today, and I'd love to introduce, Katie Gross from Nazareth Academy, who is helping me out today as the PAL City Representative and Director of Commerce. As you can imagine, she has come at a perfect time to help me and Charlie and the rest of our staff here. So I do want to introduce Katie Gross.
Katie, we welcome you. Hope you enjoy your day. MISS GROSS: Thanks.
And I'll be conferring with her during the answering of some of my questions. Thank you. This year we are looking at a budget 1489 2/23/99 - WHOLE COMM. - Budget - 990023 amount of $21 million for FY 2000 for the Stimulus Program. And in terms of commitments, we have identified not so much specific commitments, but the rough categories, as we have in the past, our belief is that this million, in addition to the 7 39.5 million from the current fiscal year, will 8 allow us to complete all of the current projects 9 that are either underway or proposed or have had 10 commitments. And we're looking at approximately 11 out of that $21 million, approximately a 50/50 12 breakout for neighborhood economic development and 13 business retention. 14
Mr. Mullin, 15 would you provide us with a detailed breakdown as 16 to how these funds have been committed and the 17 economic benefit that the City derives from these 18 expenditures for the FY '99 funds? 19
Thank you. 21 Mr. Mullin, you indicate in your testimony that you anticipate that the City will apply for additional Section 108 funds in FY 2000. What is the total of Section 108 loans that you have received to date? 1490 2/23/99 - WHOLE COMM. - Budget - 990023
I'll have to get that information for you. The total -- and to make sure I'm understanding this, the total amount that we have applied for and/or committed --
What is the total amount of the 108 loans that you have committed to the various projects?
And what is the amount of the Section 108 loans that you will be applying for in FY 2000?
Okay. We do have a summary here that I can provide. I will ask, if I may, to introduce Bill Hankowsky.
Bill Hankowsky, President, Philadelphia Industrial Development Corporation. 1491 2/23/99 - WHOLE COMM. - Budget - 990023 Council President, as you know, we have a maximum amount that we're allowed to borrow from the federal government under this program, which is five times our annual block grant allocation. So the maximum amount we're allowed to borrow is $343,565,000. As of February 1st, HUD had approved applications of $214,940,000. I should note that that doesn't necessarily mean we've spent it, but they've approved the application and projects may be underway. There currently is pending in Washington $85 million of applications. That leaves approximately $43.5 million, which, between the Office of Housing and Community Development in projects that in the current fiscal -- current Community Development Block Grant year and year 19 25, they expect to use about 23 million of that. 20 And there's one other project we're looking at 21 submitting an application for the remaining 20. 22
I'm sorry. And there's one other project that we would look to submit an 1492 2/23/99 - WHOLE COMM. - Budget - 990023 application for this year for million. The result would be, by the and of this calendar year, we would have submitted applications for all of the funding.
Is the 7 $20 million application a secret? Or can you 8 share that with us? 9
Oh, no, it's been 10 here. We think it's for the Jump Street USA 11 project on North Broad. There was a Tax Increment 12 Financing District proposal that Council approved 13 for that project. We are in negotiations with the 14 developer. It's a tentative number. We're not 15 sure whether we need all of it, any of it, or, you 16 know, to make the math work, and that's why we 17 haven't submitted it, but we know which project it 18 is. 19
Thank you. 20 Fine. The Chair recognizes Councilman Nutter.
Thank you, Madam Chair. I'm sorry, Mr. Hankowsky? I apologize. I missed your earlier response, but did I 1493 2/23/99 - WHOLE COMM. - Budget - 990023 understand somewhere in the back and forth either from yourself or Mr. Mullin that we would get a list of all the HUD 108 loans? Did you say that?
I had mentioned -- the Council President had asked for stimulus loans and stimulus projects commitments, but we can definitely get the HUD 108s too.
What's the current outstanding number? How many HUD 108 loans have we made?
I honestly can't tell you quickly off the top of my head just because, as you -- part of the program is the loan pool, so we've done small loans out of the pool to various companies and transactions. I just -- I don't know, we probably have done -- and then the Office of Housing and Community Development uses it for housing projects, so you have to add both together.
Right. But then you guys will also use them for the TIFs.
I mean, there must be a sheet somewhere or something. I assume 1494 2/23/99 - WHOLE COMM. - Budget - 990023 somebody's keeping track of how many HUD 108 loans we've made.
We have them. I could add them up if you want to wait a second.
I have one of those PECO calculators they gave us. Energy-efficient.
We've settled loans 9 that were approved and have settled and have drawn 10 the money. Two more have been approved. 11
Are you talking 12 total or in the past year? I mean, I have no 13 context for --
Well, ever's a -- there was a HUD 108 program in the '70s or early '80s.
Well, I'd like to talk about programs that have been happening since I've turned 30, okay?
Since it's been used by the current administration. 1495 2/23/99 - WHOLE COMM. - Budget - 990023
Right. That's -- right, we're in the '90s now, let's talk about that.