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Minutes

Committee Hearing, December 8, 2004

Philadelphia City Council Committee HearingsDec 8, 2004

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  • Brian O'Neill

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING - COMMITTEE ON FINANCE - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, December 8, 2004, 3:10 p.m. - - - BILL 040470 - An Ordinance amending Chapter 8 19-2500 of The Philadelphia Code, entitled "Real Estate Non-Utilization Tax," by clarifying and amending the tax on abandoned property and vacant lots; and by changing certain tax rates; all under certain terms and conditions. BILL 040775 - An Ordinance amending Chapter 21-1100 of The Philadelphia Code, entitled "Community Development," by specifying the date by which a final community development plan must be submitted to Council for approval, under certain terms and conditions. BILL 040935 - An Ordinance amending Section 15 10-1001 of The Philadelphia Code relating to Fees of Commissioner of Records, to increase the fees for recording documents, under certain terms and conditions. BILL 041001 - An Ordinance amending Section 19-203 of The Philadelphia Code, entitled "Payroll Deductions," by permitting employees to authorize payroll deductions to purchase long term care and other voluntary insurance benefits through Financial Integrity Resources Management, LLC, under certain terms and conditions. - - - V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2 BILL 041042 - An Ordinance authorizing the Philadelphia Authority for Industrial Development ("PAID") to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program ("RACP"), in an aggregate amount not to exceed One Hundred Thirteen Million Seven Hundred Seventy Thousand Dollars ($113,770,000) to assist in the development of Children's Hospital of Philadelphia, University of Pennsylvania Cancer Care Facility, Fox Chase Cancer Center, Girard Avenue Streetscape, El Centro de Oro, Mount Airy USA, Point Breeze Revitalization Project, Beech Corporation - Broadway 1600 North Broad Street and Cecil B. Moore Avenue, Calder Museum, One Pennsylvania Place, Please Touch Museum at Memorial Hall, Philadelphia Theater Company, Greater Philadelphia Film Office Soundstage, National Museum of American Jewish History, Independence Mall, Schuylkill Riverfront, the Professional Development Center at the University of Pennsylvania, the Heritage Tourism Experience Facility, and the Arthur Ashe Youth Tennis Center; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements; all under certain terms and conditions. PRESENT: COUNCILWOMAN JANNIE L. BLACKWELL, Chair COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DAVID COHEN COUNCILMAN FRANK DI CICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JAMES F. KENNEY COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILMAN JUAN F. RAMOS COUNCILMAN FRANK RIZZO 3 040775-040935-041001-041042, Finance, 12/8/04 - - - P R O C E E D I N G S - - -

Councilwoman Blackwell

Good afternoon. Thank you for your patience. The Committee on Finance is now being called to order. We have President Verna, Councilman DiCicco, who's a member of the Committee; to my right, Councilman Goode; and to my right, Councilman Ramos, and also Vice Chair Councilwoman Blondell Reynolds Brown. We thank you all for coming today, and we thank you for your patience. Albeit we promised Commissioner Decker, if it's okay, we'll try to deal with the Redevelopment Assistance application, since there are so many folks here in regard to that Committee. Thank you all. We do have a quorum. There were five bills scheduled for today. Bill Number 040470 is being held at the request of the sponsor, Councilman 4 040775-040935-041001-041042, Finance, 12/8/04 Clarke. What will be heard today is Bill 4 Number 040935, and an administration Bill 5 which increases recording fees with the Records Department; Bill Number 041001, sponsored by Councilman Ramos. It adds a new payroll deduction for City employees; Bill 9 Number 040775, sponsored by Councilman Nutter, that places requirements on the submission of the Office of Housing and Community Development's Community Development Block Grant application; and last but not least will be Bill Number 041042, the Redevelopment Assistance Capital Program. Because there are so many of you here with regard to that Bill, we will ask the clerk to read the title of the Bill and proceed with testimony from with Bob Fina, Senior Vice President of PIDC.

The Clerk

Bill Number 041042, an Ordinance authorizing the Philadelphia Authority for Industrial Development ("PAID") to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under 5 040775-040935-041001-041042, Finance, 12/8/04 the Redevelopment Assistance Capital Program ("RACP"), in an aggregate amount not to exceed One Hundred Thirteen Million Seven Hundred Seventy Thousand Dollars ($113,770,000) to assist in the development of Children's Hospital of Philadelphia, University of Pennsylvania Cancer Care Facility, Fox Chase Cancer Center, Girard Avenue Streetscape, El Centro de Oro, Mount Airy USA, Point Breeze Revitalization Project, Beech Corporation - Broadway 1600 North Broad Street and Cecil B. Moore Avenue, Calder Museum, One Pennsylvania Place, Please Touch Museum at Memorial Hall, Philadelphia Theater Company, Greater Philadelphia Film Office Soundstage, National Museum of American Jewish History, Independence Mall, Schuylkill Riverfront, the Professional Development Center at the University of Pennsylvania, the Heritage Tourism Experience Facility, and the Arthur Ashe Youth Tennis Center; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements; all under certain terms 6 040775-040935-041001-041042, Finance, 12/8/04 and conditions.

Councilwoman Blackwell

Thank you very much. If there are no opening statements from members of the Committee, we will ask Bob Fina, Senior Vice President of PIDC, to introduce himself for the record and begin his testimony.

Mr. Fina

Good afternoon, Council Chair Blackwell and President Verna, members of the Finance Committee. My name is Robert Fina. I am Senior Vice President of the Philadelphia Industrial Development Corporation, PIDC, and I am appearing on behalf of the Philadelphia Authority for Industrial Development, PAID. I am here specifically today to testify in support of Bill Number 041042, authorizing PAID to apply for redevelopment assistance grants from the Commonwealth of Pennsylvania in the aggregate amount of $113,770,000 for 19 redevelopment assistance projects. The funds will assist development of almost every area of the City and 7 040775-040935-041001-041042, Finance, 12/8/04 positively affect every Philadelphian. Bill Number 041042 authorizes PAID to enter into agreements with grant recipients to apply for state funding; two, enter into grant agreements with the Commonwealth's Office of the Budget, for the purposes of administering the program, designate the City and/or the grant recipients to fulfill the program requirements of providing the full match for each projects; four, designate the City and/or the grant recipients to reimburse the Commonwealth for its share of any expenditures found to be ineligible by the Office of the Budget; and five, obligate the City and/or the grant recipients to complete the projects within a time frame mutually agreed upon by the Office of the Budget and PAID. Exhibit A of both my testimony and the Bill provides project descriptions for each of the 19 projects seeking funding from the Commonwealth. Therefore, I will not include these descriptions in my testimony. 8 040775-040935-041001-041042, Finance, 12/8/04 However, I will briefly identify each project, its location, and the amount of grant funding sought. Then I will explain how PAID engages in the application process with the Commonwealth of Pennsylvania. The projects are: Children's Hospital of Philadelphia in West Philadelphia for $10 million. University of Pennsylvania in West Philadelphia for $10 million. Fox Chase Cancer Center in Northeast Philadelphia for $10 million. Girard Avenue Streetscape in North Philadelphia for $1,100,000. El Centro de Oro in North Philadelphia for $500,000. Mount Airy USA in Northwest Philadelphia for $1 million. Point Breeze Diversified Community Services in South Philadelphia for $800,000. Calder Museum on the Ben Franklin Parkway in Center City, Philadelphia for $15 million. One Pennsylvania Place in Center 9 040775-040935-041001-041042, Finance, 12/8/04 City for $30 million. Heritage Tourism Experience Facility near Independence Mall in Center City for $5 million. Philadelphia Theater Company in Center City, Philadelphia, for $5 million. National Museum of American Jewish History in Center City for $5 million. Independence Mall in Center City, Philadelphia, for $6 million. Schuylkill Riverfront in Center City, Philadelphia, on the east bank of the Schuylkill River for $2,620,000. University of Pennsylvania Professional Development Center in West Philadelphia for $2 million. Greater Philadelphia Film Office Soundstage at the Navy Yard in South Philadelphia for $750,000. Please Touch Museum, Memorial Hall, in West Philadelphia for $5 million. Beech Corporation, 1600 North Broad Street in North Philadelphia, for $2 million. And finally, Arthur Ashe Youth 10 040775-040935-041001-041042, Finance, 12/8/04 Tennis Center in Northwest Philadelphia for $2 million. To apply for a redevelopment assistance grant... To apply for a grant, three principal actions must occur. First, the Commonwealth's legislature must name the project and the amount of funding in an approved state capital budget. Second, the Commonwealth's Office of the Budget or the Governor's Office must authorize PAID to submit an application to the Office of the Budget on behalf of the approved project. And third, City Council must approve an ordinance, such as Bill Number 041042, presently under consideration.

Mr. Fina

In addition to these three primary requirements, the grant recipient must provide documentation that the state funds are matched dollar for dollar with non-Commonwealth funding. When PAID submits a project's redevelopment assistance grant application to 11 040775-040935-041001-041042, Finance, 12/8/04 the Budget Office, the grant recipient must demonstrate that at least 50 percent of the matching funds, the non-Commonwealth funding is secured at that time. The Office of the Budget reviews the application materials extensively with a team of consultants and PIDC. Based upon this review, the Office of the Budget drafts and executes the project's grant agreement, that includes specific conditions the grant recipient must satisfy before receiving the funds. The Commonwealth only funds those projects with approved applications, executed grant agreements, and with all conditions achieved, and those projects in compliance with all program requirements. The redevelopment assistance program operates on a reimbursement basis for eligible project expenses, such as construction or acquisition cost. Throughout the process PAID acts as the applicant grantee, and the grant recipient is referred to as the sub-applicant 12 040775-040935-041001-041042, Finance, 12/8/04 sub-grantee. Similar to PIDC's other financing programs, PIDC and PAID act as a conduit. That is, when the Commonwealth releases the grant funds, it is by a check made out to PAID and we, in turn, disburse to the designated grant recipients. The disbursement process is closely monitored by project auditors in the Commonwealth's Budget Office and by my colleagues at PIDC. No funds are disbursed unless the projects have documented their compliance with all program requirements. I request the Finance Committee favorably consider Bill Number 041042, and that the rules of Council be suspended to permit the first reading at the next regularly scheduled session of City Council. I thank you for your consideration. Should you have any questions, I would be pleased to answer them to the best of my ability.

Councilwoman Blackwell

Thank you very much. The chair also notes that 13 040775-040935-041001-041042, Finance, 12/8/04 Councilman Kenney and Councilman Nutter are also in the room, and are here for the hearing. We thank you. Mr. Fina, with respect to the One Pennsylvania Place project, the Comcast issue, where we're speaking of the $30 million, how is this different from the KOIZ to which my understanding is now defunct in the General Assembly? Am I to assume that this project does not affect our potential real estate or Business Privilege Tax revenues?

Mr. Fina

The state $30 million grant does not affect local taxes at all. The KOIZ passed by City Council and not passed by the state legislature would have substantially affected local taxes.

Councilwoman Blackwell

Thank you very much. Do I have questions? Councilman Goode.

Councilman Goode

Thank you, Madam Chair. Mr. Fina, your testimony... I know 14 040775-040935-041001-041042, Finance, 12/8/04 it's generally the case with redevelopment assistance money, it has to be matched with non-Commonwealth funding. As part of the application that PAID intends to submit, are there going to be local commitments, financial commitments, made by the City, PAID or PIDC? And if so, in which projects?

Mr. Fina

Councilman, I do not have any specific knowledge of all the projects right now. We just received recently the letter authorizing these projects. So now we're going through a meeting with each of the project recipients to discuss with them what their needs are. So, I won't be able to answer that today.

Councilman Goode

All right. Do you know of any commitments that we're making financially as a result of approving this legislation?

Mr. Fina

I'm not aware of any, Councilman.

Councilman Goode

Okay. Other 15 040775-040935-041001-041042, Finance, 12/8/04 question is, PAID is the applicant on behalf of the City. Does PAID actually require a fee for their service?

Mr. Fina

Yes, we do.

Councilman Goode

And what is that fee?

Mr. Fina

That fee is one percent of the grant amount, up to a certain cap figure.

Councilman Goode

So that's roughly $1 million; is that correct?

Mr. Fina

Well, no. We would only -- We cap at about $150,000, Councilman.

Councilman Goode

Okay. Thank you. Thank you, Madam Chair.

Councilwoman Blackwell

Thank you very much. Councilwoman Blondell Reynolds Brown.

Councilwoman Brown

That is $150,000 per project.

Mr. Fina

Well, we charge one percent of the grant amount.

Councilwoman Brown

Grant amount. 16 040775-040935-041001-041042, Finance, 12/8/04

Mr. Fina

Up to $150,000.

Councilwoman Brown

Very well. Thank you.

Mr. Fina

You're welcome.

Councilwoman Blackwell

Councilman DiCicco. COUNCILMAN DiCICCO: Thank you, Madam Chair. Good afternoon, Mr. Fina. Mr. Fina, the list of the entities that are going to receive this grant funding, where does that generate? Who generates that list?

Mr. Fina

Councilman, that begins with the state legislature, not PIDC, not the City, putting various projects and the amount of the project in the state capital budget that gets approved by both the House and the Senate. COUNCILMAN DiCICCO: Where does the state get that list? Is that generated by the City, by the administration?

Mr. Fina

That could be generated -- It's generated by a number of sources. 17 040775-040935-041001-041042, Finance, 12/8/04 The non-profits sometimes go to the state legislature. Local elected officials could communicate with the state legislature, a business could communicate with the state legislature. The City administration has at times communicated with various state legislators to put the projects in the state capital budget, but it has to go through the House and Senate to be approved in that capital budget first. COUNCILMAN DiCICCO: The reason I asked the question, for some time I have been working with an organization in my Councilmanic District, the South Street Corridor, on a major streetlighting improvement program, part of the streetscape improvement. And there was some concern because we were under the impression that the application had been sent to the state, and the city administration is claiming that they sent it up. The state is saying they never received it. 18 040775-040935-041001-041042, Finance, 12/8/04 So, I'm still trying to find out where -- you know, who is more accurate for an easier way of asking the question, as to why the South Street lighting project was not included in this application process.

Mr. Fina

Again -- COUNCILMAN DiCICCO: Are you familiar with that?

Mr. Fina

I'm not aware that that was or was not included in the state legislation. COUNCILMAN DiCICCO: My administrative assistant is telling me it was included in the state legislative process, but the Governor didn't approve it.

Mr. Fina

Yeah. The governor must then authorize PAID to submit an application to the Office of the Budget. COUNCILMAN DiCICCO: Does the administration, the City administration, submit a list, on projects that they would like to see approved?

Mr. Fina

The administration was invited to submit that list to the Governor's 19 040775-040935-041001-041042, Finance, 12/8/04 Office. COUNCILMAN DiCICCO: Do you know if a list was ever submitted?

Mr. Fina

I know PIDC had input into generating a list, Councilman. I don't know if a list was ever submitted to the Governor. COUNCILMAN DiCICCO: The administration's list.

Mr. Fina

Yes. Correct. COUNCILMAN DiCICCO: Do you know who would have that answer, other than someone in the administration? Because I'm not getting an accurate --

Mr. Fina

I would assume someone from the Governor's Office. COUNCILMAN DiCICCO: Thank you. No 19 further questions. Thank you, Madam Chair.

Councilwoman Blackwell

Thank you very much. Are there further questions? Councilman Ramos.

Councilman Ramos

Thank you, Madam Chair. 20 040775-040935-041001-041042, Finance, 12/8/04 You know, sometimes we get lost or at least I get lost in what goes on around here, given that I'm a new member of this Council. And it could have been very easy for me to get stuck with this whole issue about Comcast and the allocation of funds from the state government. But reading this list of funding that was provided by the state government, I think it's very impressive that this state government did not forget about Philadelphia. It covered just about every neighborhood in the City. Included payments up in an area of Spanish speaking Philadelphia up on 5th Street that have been trying to get their sidewalks taken care of, a business district that brings revenue to this City, and up in West Philadelphia, and all over Girard Avenue, the renaissance of Girard Avenue. It goes on and on. And I just want to take this opportunity to commend the Governor, the State House and the Senate for continuing to 21 040775-040935-041001-041042, Finance, 12/8/04 remember how important Philadelphia is to the vitality of this great State of Pennsylvania. And the One Pennsylvania Place in Center City is a part of this picture, as well. And I think all of it is very significant to the people and to the economic growth, the job growth of this City. Thank you, madam chair.

Councilwoman Blackwell

Thank you very much. Councilman Kenney.

Councilman Kenney

Thank you, Madam Chair. I'd also like to echo Councilman Ramos's comments, first of all, to thank the Governor and the legislature for their efforts in helping our City move forward with very important projects. And you can see a number of the projects on this list are not only neighborhood projects but they're arts and culture projects, they're projects that foster tourism and hospitality. I mean, it's a wonderful package of stuff. 22 040775-040935-041001-041042, Finance, 12/8/04 And I really commend you and your people for working with the Governor's Office in getting this done. I'd also like to make comment about the Comcast issue because I know this is part and parcel of what was going on. I am very proud that Comcast is headquartered here in Philadelphia. I am extremely proud that they've chosen Philadelphia, from a company that's gone from a man selling perfume and ties out of a suitcase to a multinational company that provides computer access and broadband and cable, and doesn't have to be here in the City. They can be selling us cable and broadband from Phoenix, Arizona if they desired, if they wanted to. But they decide and they want to be here. So, anything that the state can do or the City can do to help that project happen, to keep them cemented here, I think is terrific. And finally, in order to be a great 23 040775-040935-041001-041042, Finance, 12/8/04 City, you need a lot of things. You need a good school system, you need a good tax structure. But if you've ever been to Chicago, Chicago is a great impressive City because it has nice, big important buildings within the City. And Chicago to me is impressive because the buildings there say something about that City. And when you see buildings like Cira going up, when you see buildings like Liberty One, Liberty Two, and what might happen at this Liberty Property Trust project here in Center City, that's one of the parts of making a great City, is great impressive buildings. And I want to build this building, and I hope that this $30 million helps that happen, because not only will we get the construction jobs, we will get more importantly another stamp of a great City in this country by having another important building that makes a statement. And I just want to thank you for all 24 040775-040935-041001-041042, Finance, 12/8/04 the work you've done. I want to thank the Governor and the legislature for all the work they've done. And I just think this is a terrific thing. We should be able to just roll this through and be happy voting for it. Thanks.

Mr. Fina

Thank you, Councilman. (Applause and cheers.)

Councilwoman Blackwell

Thank you, Councilman. The Chair likewise notes that Councilman Rizzo is here. I did not mention him earlier. Councilwoman Reynolds Brown.

Councilwoman Brown

Thank you, Madam Chair. Do you know if the grants as presented, as written, as submitted to the Governor, allow for or provide for MBE/WBE opportunity of any kind?

Mr. Fina

They certainly allow for it, but it is not a requirement of the state program.

Councilwoman Brown

Thank you. 25 040775-040935-041001-041042, Finance, 12/8/04

Mr. Fina

You're welcome. And Councilman Kenney, thank you for the kind words for PIDC. And Councilman Ramos, I do agree with you. This is a very impressive list of projects being funded by the state in Philadelphia.

Councilwoman Blackwell

Thank you very much. Are there further questions for Mr. Fina? Councilman Nutter.

Councilman Nutter

Thank you, Madam Chair. I'll be brief. Mr. Fina, just a couple background questions. All of these projects, the dollars of which appears to be $113 million, these are all for capital project purposes; is that correct?

Mr. Fina

That is correct.

Councilman Nutter

And the list, regardless of which list we're talking about, but at the moment we have the list in front of us. This list was ultimately put together 040775-040935-041001-041042, Finance, 12/8/04 with input from a variety of people, but signed off on and designated by Governor Rendell; is that correct?

Councilman Nutter

Okay. And so, if you're on this list, the dollars are allocated and they are project specific; is that right?

Mr. Fina

Yes, they are.

Councilman Nutter

And these dollars, since they are for capital purposes, can they be used for any other purpose?

Mr. Fina

No. They'd have to be used for capital purposes. And that is basically hard construction cost, acquisition cost, interest during construction, construction interest.

Councilman Nutter

And so, in an environment where, you know, dollars are scarce for a variety of other well-suited or well-needed purposes, in this particular case, since these are only capital dollars and cannot be utilized for operating expenses, for instance, for other entities, 27 040775-040935-041001-041042, Finance, 12/8/04 whether they're governmental or otherwise, there is only one purpose for these dollars; is that correct?

Mr. Fina

that is correct.

Councilman Nutter

And all these projects represent, in essence, some amount of either construction, renovation, rehabilitation, streetscape work. They all involve some amount of construction or construction related activities; is that right?

Mr. Fina

Yes, sir.

Councilman Nutter

And all these projects will also require people to work on them; is that right?

Mr. Fina

Yes, they will.

Councilman Nutter

And so, out of this program, $113,770,000 which, as I look through the list, almost every one of these grants is relatively small, in comparison, for most of these projects, to the total cost of the project. Some, because the projects are small, might represent close to half, but in 28 040775-040935-041001-041042, Finance, 12/8/04 many instances it could be as little as five or ten percent which those projects then have to go out and get other dollars for. These funds are helping those projects along, but all of them will help improve the employment situation here in Philadelphia. Is that a fair statement?

Mr. Fina

I think that's a fair statement, Councilman.

Councilman Nutter

Okay. Thank you for your testimony. I echo other comments of a couple of my colleagues. And I think we should all look forward to some construction activity and fuller employment here in Philadelphia as a result of this. Thank you.

Mr. Fina

Thank you, Councilman (Applause.)

Councilwoman Blackwell

Thank you, Councilman Nutter. The Chair notes that Councilman Brian O'Neill, a member of this Committee, is also present. Is there anyone else who would like 29 040775-040935-041001-041042, Finance, 12/8/04 to make a statement or ask a question? Is there anyone else who would like to testify?

Ms. Robinson

I would.

Councilwoman Blackwell

Come forward. Is there anyone else while Miss Robinson comes forward. Thank you. Please come forward, identify yourself for the record and make your testimony.

Ms. Robinson

Good day, all. My name is Judith Robinson. And I, too, would like to commend PAID regarding all of these developments. And that's a good thing for Philadelphia. I'm really truly happy about everything. But Councilwoman Blondell Reynolds Brown, you asked a question about so-called minority participation. And the answer was, it's not a part of this process. Well, I contend as a homeowner of North Philadelphia, and one that's very much concerned about neighborhood benefit whenever 30 040775-040935-041001-041042, Finance, 12/8/04 these projects are done, I contend that if you get ahead of these contracts and you get ahead of the development, then in fact you do have neighborhood benefit. There are many union guys here today, and I commend them for being here for something they believe in. I really do respect you all. But I just find whenever these developments happen, and a few of them are going to happen in North Philadelphia, unfortunately I don't see folks from my community benefiting. So, I'm asking here today, what kind of process will you put into this process that doesn't have so-called minority participation? What will you all at this level do? Councilman Goode, Councilman Nutter, oftentimes I've been here when you all have asked those questions about inclusion. So that's the question I'm asking here today. And I hope you union guys don't boo me on this, but I just find that guys from my 31 040775-040935-041001-041042, Finance, 12/8/04 community just aren't participating in the way that they should. And I would just encourage you all in your union process to open up the doors and be more inclusive, because I think it benefits the whole Philadelphia as all of these programs do, too. And I thank you very much for listening to me today. (Applause.)

Councilwoman Blackwell

Thank you very much. Councilman Goode.

Councilman Goode

Thank you, Madam Chair. Miss Robinson...

Councilman Goode

...I appreciate your testimony. I think Mr. Fina testified to the fact that minority participation is not a requirement of the State Redevelopment Assistance Program. And I think that's what he was saying. The state does not require 32 040775-040935-041001-041042, Finance, 12/8/04 it.

Ms. Robinson

I'm very clear on that, sir. And I'm asking, what are you all going to do because it's not a state requirement?

Councilman Goode

The question I asked of Mr. Fina was whether there was any local financial commitment. If there's any local financial commitment is made or requested, we will deal with it at that level.

Councilwoman Blackwell

Thank you very much. Is there anyone else here who would like to testify? (No response.)

Councilwoman Blackwell

Seeing none, we welcome all of you to stay. We let all of you know who are here for this Bill, that it appears you have unanimous support for the passage of this out of Committee today which means it would be on first reading tomorrow in Council and pass next Thursday. 33 040775-040935-041001-041042, Finance, 12/8/04 So we welcome you to stay, but we're finished our testimony. We'll go on to other issues. And again, thank you for being here. (Applause and cheers.)

Councilwoman Blackwell

Thank you very much. Commissioner Decker. Commissioner Decker. Thank you. We ask, if you would, to move out quietly so we may continue our hearing, if you would, please. Thank you very much. The next Bill to be heard today is Bill Number 041001. Could we please have some quiet as you leave? Thank you very much. Let me correct myself. Bill Number 040935 which is about an increase in fees for the Records Department. We have Joan Decker, our Records Commissioner here, and we would ask the clerk to read the title of the Bill.

The Clerk

Bill Number 040935, an Ordinance amending Section 10-1001 of The 34 040775-040935-041001-041042, Finance, 12/8/04 Philadelphia Code relating to Fees of Commissioner of Records, to increase the fees for recording documents, under certain terms and conditions.

Councilwoman Blackwell

Thank you very much. We will now call on the Records Commissioner to testify. COMMISSIONER DECKER: Good afternoon, Council Chair Blackwell and members of the Finance Committee. My name is Joan Decker, and I'm here today with David Werbo, who is the Budget Officer for the Department. I'm here today to present testimony for Bill Number 040935, that provides for a $10 increase in recording fees for deeds. If approved, the recording fee for deeds will change from $62 to $72. This increase will be used to provide resources for processing the legal descriptions on deeds that are presented for recording. By law, the Records Department must review legal descriptions for every City 35 040775-040935-041001-041042, Finance, 12/8/04 property. When a discrepancy is found, a notice is provided, providing some detail on the nature of the discrepancy, and it is completed and returned to the filer. In addition to our legal mandate, many City agencies rely on the information that we provide to them, particularly the Board of Revision of Taxes. It is from this data that the value of the land component of property is derived. And I just want to say, due to the real estate boom over the past several years, the number of deeds presented for recording increased, contributing to a large backlog of work to be processed. The backlog now consists of approximately 30,000 items and grows daily. Without additional resources, the Department will not be able to clear the backlog, keep it to a manageable size, and the turnaround time to a reasonable duration. The revenue from this increase will provide additional staff needed to process the backlog, as well as prevent its 36 040775-040935-041001-041042, Finance, 12/8/04 reoccurrence. Since 1995, the number of deeds recorded increased by close to 60 percent. And even if we were measuring the change just since 1999, the number of deeds recorded increased by close to 30 percent. As the number of deeds increased, so has the number of condominiums. And condominiums contain much more complex legal descriptions, requiring additional work for the Department. In addition to the legal description review, the staff works on many special projects, including research projects and special automation projects, two of which have been completed and one is in progress. This fiscal year, the Department will work on applications that will make parcel mapping information available via the internet, and it will be important for the data to be kept up to date. In summary, the passage of this legislation will enable the Records Department to obtain resources necessary to 37 040775-040935-041001-041042, Finance, 12/8/04 maintain current and accurate parcel map information, and to continue to support many research requests. That's pretty much my testimony. Thank you for consideration and support, and I would be happy to answer any questions you may have.

Councilwoman Blackwell

Thank you very much, Commissioner. Has your current backlog created a subsequent backlog with the Board of Revision of Taxes and other agencies that use your services? COMMISSIONER DECKER: In the sense that we are not able to provide them accurate and up-to-date information, Councilwoman.

Councilwoman Blackwell

Thank you very much. Are there further questions for the Commissioner, with regard to this issue? (No response.)

Councilwoman Blackwell

Is there anyone in the audience or who is visiting us today who would make to make a statement? 38 040775-040935-041001-041042, Finance, 12/8/04 Thank you very much. Miss Robinson, come forward.

Ms. Robinson

Thank you again. Judith Robinson. I'm here to testify on Bill Number 040935, and I'm here in this regard as a real estate broker. This is a very small thing as it relates to fees that we have to pay when we record deeds and other documents. But with the increase in prices of real estate and the amount of real estate, as the testimony before me stated, there's been a big increase. It's just kind of nickel and dime type of cost, that I'm wondering, like, where exactly... I heard the technical part of where it goes to. But I'm just wondering if this is one of those farther things that just increases the cost of business or is this absolutely needed for the Records Department. I know technology will allow a lot of things to be done faster, more 39 040775-040935-041001-041042, Finance, 12/8/04 efficiently. So I'm just wondering, is this specifically needed for all of the increase in real estate to be more effective and efficient or is this just another way to kind of bridge that budget gap? That's the question I guess I want to ask. Thank you very much.

Councilwoman Blackwell

Thank you, Miss Robinson. Do you have a copy of her testimony, the Commissioner's testimony?

Councilwoman Blackwell

That may be helpful, in terms of the backlog and where the money goes?

Ms. Robinson

All right.

Councilwoman Blackwell

Thank you very much. Next we will hear the clerk. After the clerk reads the title of Bill Number 040001, we will ask Mr. E. Ray Zies, Acting Director of Finance; Lynda Orfanelli, Director of Personnel; and Philip Harris, Financial Integrity Resources Management, to 40 040775-040935-041001-041042, Finance, 12/8/04 come forward. Thank you.

The Clerk

Bill Number 041001, an Ordinance amending Section 19-203 of The Philadelphia Code, entitled "Payroll Deductions," by permitting employees to authorize payroll deductions to purchase long term care and other voluntary insurance benefits through Financial Integrity Resources Management, LLC, under certain terms and conditions.

Councilwoman Blackwell

Thank you very much. Thank you for your patience. Please identify yourself and begin your testimony.

Mr. Zies

Good afternoon, Council member Blackwell, and the other members of the Finance Committee. I am E. Ray Zies, Acting Director of Finance. Thank you for this opportunity to present testimony in support of Ordinance 22 041001. The City of Philadelphia currently has 87 payroll deductions and 240 different types of levy deductions. 41 040775-040935-041001-041042, Finance, 12/8/04 Included in the deductions are six for taxes, six for pension and deferred compensation, for charities, 11 for 5 private associations, 4 for savings, 17 6 related to insurance and 25 related to union 7 deductions. 8 Because the City's payroll system 9 requires programming and testing to establish 10 a new payroll deduction, approximately 240 11 hours of programming are required for 12 programming and testing the new payroll 13 deduction, at a cost of $10,320. 14 Thank you for the opportunity to present this testimony in support of the payroll deduction, to permit employees to authorize payroll deductions to purchase long-term care. We would be happy to answer any questions you may have at this time.

Councilwoman Blackwell

Thank you very much. I will hold my question. Any questions? Councilman Ramos. 42 040775-040935-041001-041042, Finance, 12/8/04

Councilman Ramos

Thank you, Mr. Director. Is it your testimony that you're fine with this payroll deduction coming --

Mr. Zies

Yes, sir. I'm in support of this.

Councilman Ramos

You are. Okay. Thank you.

Councilwoman Blackwell

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

Councilwoman Blackwell

Is there further testimony? Is there anyone else who would like to testify?

Councilwoman Blackwell

Thank you very much. Thank you.

Mr. Harris

Good afternoon, Madam Chair, and members of the Finance Committee. Thank you for hearing us today. I did submit my testimony in writing to the Council members, and I remain available for any questions, if there are any.

Councilwoman Blackwell

Thank you 43 040775-040935-041001-041042, Finance, 12/8/04 very much. Miss Orfanelli.

Ms. Orfanelli

Councilwoman Blackwell, I'm Lynda Orfanelli, and members of the Committee. I am the Personnel Director. And I am here to support this Bill 8 as well. And basically I submitted my testimony to describe the type of insurance it is, and why this is an important option for City employees, and why the payroll deduction makes it a more viable option. And I would be glad to answer any questions as well.

Councilwoman Blackwell

Thank you very much. Councilman Ramos.

Councilman Ramos

Thank you, Madam Chair. In the one previous hearing that we had this afternoon, someone brought up the question of minority participation. And I saw that it was only appropriate to welcome minority companies 44 040775-040935-041001-041042, Finance, 12/8/04 that want to do business or have the opportunity to do business with the City of Philadelphia. And I think it's commendable that Mr. Harris has a company that's owned by a minority, not exclusive in its service to who he's going to provide services to. But I think this is a very good thing that we have now a minority company that's coming forward to participate. And we're welcoming them in the financial business of the City.

Councilwoman Blackwell

Thank you so much. Councilwoman Reynolds Brown.

Councilwoman Brown

And it follows, then, therefore, that the leadership of your Department is to be commended for treating the opportunity in a fair and equitable way. Thank you.

Mr. Zies

Thank you.

Councilwoman Blackwell

Thank you very much. Councilman O'Neill. 45 040775-040935-041001-041042, Finance, 12/8/04

Councilman O'Neill

Yes. Thank you. In your testimony you mention that the two finalists guaranteed the no medical questions in the underwriting which is great.

Councilman O'Neill

Are they the only two of the finalists that guaranteed that? I wasn't sure if that... Also, could you say and a competitive group-rated policy. Were they the only two that offered the no 13 medical questions aspect?

Mr. Harris

Yes. There was a third provider. The two finalists were MetLife and Aetna. The third provider that did offer a guaranteed issue was Prudential Life Insurance.

Councilman O'Neill

Okay. And their rates were much higher?

Mr. Harris

Yeah. The rates were higher, not as much flexibility. They would give employees probably four, maybe three options, to choose something off the shelf, whereas Aetna would allow an individual to 46 040775-040935-041001-041042, Finance, 12/8/04 call in, based on their budget and individual financial needs, to design their own program. So there was no limitations. It was giving the employees the benefit to purchase something group rated, with a discount, similar to going out to the street minded individual policy, allowing the employee to save money.

Councilman O'Neill

Was MetLife much higher or much less flexible than Aetna?

Mr. Harris

MetLife pricing was similar to Aetna. Again, they were more restrictive on the options available to the employees for the benefit design. They wanted the City to pick and put a menu out there; whereas, Aetna puts the control back into the individual employee's hands.

Councilman O'Neill

That's the level of detail, at least that level, that I would like before I vote on this on final passage, particularly with... I mean, these are no big contracts. And we're grappling with the whole 47 040775-040935-041001-041042, Finance, 12/8/04 issue around no-bid contracts, some of which are on the political side with donations or contributions, and others are on the staff level side where we're getting questions. And the more detail, I think, we have on these choices, which I think are excellent choices, and they make even more sense the more you testify about them. If you could just give the Chair that comparison, particularly with the final two.

Ms. Orfanelli

Councilman, we had an extensive review of the finalists --

Councilman O'Neill

Yeah.

Ms. Orfanelli

-- and compared all the different factors --

Councilman O'Neill

Yeah.

Ms. Orfanelli

-- price, product, et cetera. And I'm sure that Mr. Harris can pull together --

Councilman O'Neill

Yeah.

Ms. Orfanelli

-- a whole, you know, short summary to explain the differences. 48 040775-040935-041001-041042, Finance, 12/8/04

Councilman O'Neill

Okay. No; I like your reasoning. Just for the sake of extra transparency, I think it would be helpful to the Committee, particularly. And the Chair can decide to distribute it to the entire Council, if she wishes.

Ms. Orfanelli

That's fine.

Councilman O'Neill

I congratulate you on your process.

Councilwoman Blackwell

Thank you very much. Are there further questions or statements? (No response.)

Councilwoman Blackwell

Is there anyone else who would like to testify? (No response.)

Councilwoman Blackwell

Thank you very much. The final Bill for our Finance Committee today will be Bill Number 040775. And we will ask the clerk to read the title of the Bill, as Kevin Hanna, Secretary of 49 040775-040935-041001-041042, Finance, 12/8/04 Housing and Neighborhood Preservation, as well as Debra McCulloch, Director of the Office of Housing and Community Development come forward. Thank you.

The Clerk

Bill Number 040775, an Ordinance amending Chapter 21-1100 of The Philadelphia Code, entitled "Community Development," by specifying the date by which a final community development plan must be submitted to Council for approval, under certain terms and conditions.

Councilwoman Blackwell

Thank you. Please identify yourself for the record and begin your testimony.

Mr. Hanna

Good afternoon.

Councilwoman Blackwell

Good afternoon.

Mr. Hanna

My name is Kevin Hanna. I serve as Secretary of the Office of Housing and Neighborhood Preservation. On behalf of the Office of Housing, Councilwoman Blackwell and the other members of Finance, I'd like to thank you for this opportunity today to speak, on behalf of the 50 040775-040935-041001-041042, Finance, 12/8/04 administration, on Bill Number 040775. And in the interest of time, Madam Chairwoman, I'm going to truncate my testimony which has been submitted to your office. Council Bill 040775 amends Chapter 8 21 of The Philadelphia Code, to require that the Office of Housing and Community Development submit its annual statement of community development objectives or similar documents to the City Council no later than the date by which the Mayor is required to submit the proposed annual operating budget and plan for Community Development Block Grant. This plan includes spending recommendations for the Community Development Block Grant, HOME, housing opportunities for persons with A.I.D.S., and emergency shelter grant funds for the upcoming fiscal year. It is also the application that the City submits to the U.S. Department of Housing and Urban Development for those entitlement funds. 51 040775-040935-041001-041042, Finance, 12/8/04 As you know, City Council holds hearings on the Consolidated Plan as part of the approval process before the plan is submitted to H.U.D. for its review and approval. At the present time, the Home Rule Charter requires that the Mayor submit the proposed Operating Budget to Council no later than 90 days before the start of the new fiscal year or April 2nd. Adoption of Bill 040775 will require that the proposed Consolidated Plan be submitted to City Council by April 2nd. For the past three years the Mayor transmitted the proposed Consolidated Plan City Council on May 7, 2004; May 9, 2003; and May 1, 2002. In each of these years, Council held hearings on our plan between May 28th and June 2nd, immediately after Memorial Day. The administration opposes Bill 23 040775 because it poses a significant hardship on the City in meeting all its obligations in relation to the Consolidated 52 040775-040935-041001-041042, Finance, 12/8/04 Plan. The Bill would have a significant effect on the preparation of the budget or the Consolidated Plan. It will affect the citizens' participation process mandated by H.U.D. and The Philadelphia Code. It will limit the relationship of the Consolidated Plan and its resources to the Neighborhood Transformation Initiative's annual program statement and budget. It leaves open the possibility that the submission date would be further advanced if the Home Rule Charter is revised to require the Mayor to submit the proposed Operating Budget by February 2nd each year. The present legal requirements are sufficient, we think, to safeguard the public interest, while remaining flexible enough to address unforeseen possibilities. I'll be happy to work with Council to develop an acceptable timetable for the Consolidated Plan, without locking the administration or any future administration 53 040775-040935-041001-041042, Finance, 12/8/04 into a more rigid time frame. And with that, we'll certainly be open to questions from your group or from the audience.

Councilwoman Blackwell

Thank you. Thank you very much. It is apparent that this Bill 9 attempts to start the process sooner, but it is my contention that you're saying that it's difficult to presume what the other aspects are, from when the Bill comes to us, that make the difference in when we can hold hearings?

Mr. Hanna

That is correct. For instance, as I stated in my testimony, obviously no one here locally has control over when H.U.D. gives us its number, relative to CDBG. For instance as of today we still don't know what our number is for the upcoming CDBG year for CDBG, even though we do know it for HOME. Another issue has to do with NTI. NTI is required by Council Resolution or 54 040775-040935-041001-041042, Finance, 12/8/04 maybe Ordinance, to submit its budget by May 1st. If we were to be required to submit ours by April 2nd, we conceivably could not because we wouldn't know what... We may not know what the NTI budget is at the same time because, as you've seen over the past couple years, the NTI budget funds quite a bit of what's done out of the Office of Housing.

Councilwoman Blackwell

Thank you very much. Questions? Councilman Nutter.

Councilman Nutter

Thank you, Madam Chair. I apologize. I was just coming in the room, and I heard a part of Mr. Hanna's statement which made reference to a May 1st date, but I didn't know the context. What were you referring to?

Mr. Hanna

One of those references had to do with the fact that back in 2002, on May 1st, the Mayor submitted his proposed Consolidated Plan to the City Council. 55 040775-040935-041001-041042, Finance, 12/8/04

Councilman Nutter

Okay. Do we know why?

Mr. Hanna

I have no idea. I was actually not in the City at that time. I have no idea.

Councilman Nutter

In any event, I mean, the obvious purpose of this Bill, not to get into the arcane legal arguments about who can tell who what to do, but more in a context of a spirit of working together and trying to have as much process and opportunity to look at what at times is certainly a fairly extensive and complicated plan, the overall Consolidated Plan usually represents in total in excess of about a hundred million dollars; is that correct?

Mr. Hanna

That is correct.

Councilman Nutter

Okay. So the purpose here, similar to all of the other provisions in Chapter 21-1100, is to make sure that the Council has as much information as possible, in as timely a fashion as possible. And I understand, based on 56 040775-040935-041001-041042, Finance, 12/8/04 experience and also our conversation recently, that from time to time you may not get all the information you need from the Federal Government, in order to adhere to something like this. But some of this process actually does start fairly early on. Don't you have preliminary plan hearings either in --

Mr. Hanna

That first hearing took place yesterday.

Councilman Nutter

-- late November, December? I'm sorry?

Mr. Hanna

That first hearing took place yesterday.

Councilman Nutter

Yesterday. That was for the preliminary? MS. McCULLOCH: My name is Debra McCulloch. I'm the Director of Housing. There was a hearing yesterday on the needs... It's called the needs hearing.

Councilman Nutter

Is this the CHAZ? MS. McCULLOCH: Replacement of the CHAZ, right. The needs hearing and what's 57 040775-040935-041001-041042, Finance, 12/8/04 called the CAPER, Consolidated Annual Performance Evaluation Report.

Councilman Nutter

Right. MS. McCULLOCH: That is the first step in our citizen participation plan.

Councilman Nutter

Right. MS. McCULLOCH: And the preparation of the Consolidated Plan.

Councilman Nutter

What time was that hearing? MS. McCULLOCH: It was held yesterday beginning at 2 o'clock.

Councilman Nutter

And where was it? MS. McCULLOCH: It was at 1234 Market Street.

Councilman Nutter

How many people attended? MS. McCULLOCH: 17... Approximately -- Approximately 20 people testified, and I would say maybe 30 people attended.

Councilman Nutter

Given the overall poverty level in Philadelphia, the 58 040775-040935-041001-041042, Finance, 12/8/04 desperate need for funds, the clear impact that these dollars could have throughout the City, would it strike you as a little less than underwhelming that people in a City 6 of a million and a half would testify about 7 such an important issue? 8 MS. McCULLOCH: It was less than 9 we've had in other years. 10

Councilman Nutter

Why do you think 11 that is? 12 MS. McCULLOCH: It was raining. 13

Councilman Nutter

Well, you know, 14 when it rains you're still poor, and you 15 still have needs. 16 MS. McCULLOCH: Okay. 17

Councilman Nutter

And you know, 18 you might even want an umbrella out of this 19 process. 20 So, I mean, the point is... I mean, I know both you guys. I'm not going to... You know, we're too late into the season. We're getting near the holidays. And, you know, I can save this torture for when we return. 59 040775-040935-041001-041042, Finance, 12/8/04 I mean, the point is that whether it's time of day when you have the hearings, what the advertising is, to the extent that we can get more information out to more people or in the alternative, put City Council in a position where we can go over the plan at an earlier point in time... I mean, you know what happens just about every year. The plans come in whenever they come in. They then get scheduled. There might be a few other things going on in this place. And so, we approve in most instances about a hundred million dollars in desperately needed funding in the course of about a two-week period, after introductions and a very long day or so of hearings. And I don't understand, but for some logistical problems with the federal government, why we would not want to have this City Council in a position to get this information as early as possible, share it with our constituents as early as possible, engage in more community process as 60 040775-040935-041001-041042, Finance, 12/8/04 extensively as possible, and make sure that people have real input into how these dollars are spent. And that's the only issue here. We don't have to be in a death match struggle about who gets the till, what to do or how to do it. We have an extensive series of requirements in Chapter 21 or Section 10 21-1100. And this is only a continuation of a process that was put in place almost 20 years ago.

Mr. Hanna

And in fact, Councilman, we are in full agreement with most if not all of what you said.

Councilman Nutter

Okay.

Mr. Hanna

The part about holding your torture until next spring, that we probably disagree with. But relative to providing you information as quickly as possible, we would love to do that. In fact, that affords us more opportunity to have online and offline discussions so that when we do come into Council... 61 040775-040935-041001-041042, Finance, 12/8/04

Councilman Nutter

Mm-hmm.

Mr. Hanna

...the debate isn't quite as lively. COUNCILAN NUTTER: Right.

Mr. Hanna

But as a result, we would -- I would certainly pledge to you to get to you information just as quickly as we can. I guess our issue simply has to do with the fact that you are proposing in this Bill to mandate a specific date, a date that we can't promise we will always be able to hit. But what we can promise is to get to you information as quickly as possible, and in certain cases, depending upon when we're notified, even sooner than in the past.

Councilman Nutter

Okay. My last comment will be -- I mean, even from your own testimony, though... I take this sentence at the top of is important. And you use the April 2nd date. While an April 2nd submission date could be met... And then you go on to talk 62 040775-040935-041001-041042, Finance, 12/8/04 about little time for citizen comments and the like. I mean, you're going to do all of your citizen comment periods pretty much the same as you do today, but you are not saying in your testimony that you could not meet the 90-day or 120-day or 150-day requirement, in terms of sending over a plan.

Mr. Hanna

I'm sorry. I don't quite understand your question.

Councilman Nutter

Your April 2nd date, you take as what, 90 days before the end of the fiscal year?

Councilman Nutter

All right. Bill 17 would require you to submit the plan no later than April 2nd.

Councilman Nutter

You say that you can do that. What's the problem?

Mr. Hanna

I'm saying that in years past we've been notified of certain information, and as a result the hearings were held in late May. 63 040775-040935-041001-041042, Finance, 12/8/04

Councilman Nutter

I understand that. There's a difference between when you're required to submit and when this Council decides to hold hearings. That will always be the prerogative of the body. And primarily since these bills normally go to Finance, it will be the prerogative of the Chair, as to when the hearings are. It has nothing to do with when you send the Bill over to us. MS. McCULLOCH: We sent the Bill 14 over to you the first week in May for the past three years, and the hearings have been scheduled at the end of May. So, there would be an opportunity to move that up. I think the point the point we're making here is that it would not be impossible. It would not be impossible, given the requirements we have, the requirements of our citizen participation plan, to meet the April 2nd deadline. The concern about meeting that is making sure that we're able to get to fulfill 64 040775-040935-041001-041042, Finance, 12/8/04 the requirements of our citizen participation plan --

Councilman Nutter

Right. MS. McCULLOCH: -- and also be able to prepare the plan, a good plan. But we wanted to say that it's not that it's impossible. So, that's your point.

Councilman Nutter

All right. My last comment is, you would at least agree that, as a matter of public policy, it's better for the City Council and the citizens of this City, to have the information as early as possible. MS. McCULLOCH: Yes.

Councilman Nutter

As opposed to later. MS. McCULLOCH: Yes.

Councilman Nutter

Thank you. Thank you, Madam Chair.

Councilwoman Blackwell

Thank you very much. Councilman Goode.

Councilman Goode

Yield. 65 040775-040935-041001-041042, Finance, 12/8/04

Councilwoman Blackwell

Councilwoman Reynolds Brown.

Councilwoman Brown

Thank you, Councilman Goode. Question: Could you speak briefly to what the citizen participation process is in The Philadelphia Code, just briefly, to put this in context for me. MS. McCULLOCH: It's what's required by the federal regulations for the Consolidated Plan, are that we publish a citizen participation plan, and then that we follow it. And so, that's what we do. And the beginning of that was the needs hearing that we held yesterday. The next step for us will be to take that information, put it together with the information that we get from H.U.D. about what our funding allocations will be, and prepare a document that we call the Preliminary Plan. After we issue the Preliminary Plan, which we usually do at the end of January or in February, we then hold a hearing on the 66 040775-040935-041001-041042, Finance, 12/8/04 Preliminary Plan, at which we take testimony from the public on the plan and have the opportunity to engage in dialogue with citizenry and at that point with members of City Council. Then we take that information and revise the Preliminary Plan and prepare the Proposed Plan, and the Proposed Plan is the document that is submitted to City Council.

Councilwoman Brown

I see. Your explanation also addresses the stipulations as required in The Philadelphia Code? MS. McCULLOCH: Yes. There are specific periods of time for advertising.

Councilwoman Brown

I see. MS. McCULLOCH: That admits those different activities.

Councilwoman Brown

Thank you. Thank you, Madam Chair. Thank you, Councilman Goode.

Councilwoman Blackwell

Councilman Goode.

Councilman Goode

Thank you, Madam 67 040775-040935-041001-041042, Finance, 12/8/04 Chair. Good afternoon, and thank you for your testimony. The first question is, in terms of citizen participation process, that is a H.U.D. requirement; is that correct. MS. McCULLOCH: Yes.

Councilman Goode

And those requirements within the Code were initiated by City Council in the early '80s? MS. McCULLOCH: Yes.

Councilman Goode

Do you remember who the sponsor of the Bill was? MS. McCULLOCH: I believe...

Mr. Hanna

Councilman Nutter. MS. McCULLOCH: Is laughing.

Councilman Nutter

No, I was not...

Councilman Goode

I believe it was -- MS. McCULLOCH: I believe it was Councilman Street.

Councilman Goode

It was. Second question is: How much change is in the plan between the Preliminary Plan 68 040775-040935-041001-041042, Finance, 12/8/04 and the final plan, not the plan approved by Council but your preliminary draft, and then your final draft that you give to Council?

Mr. Hanna

That's kind of varied, just over my two-year tenure. It's been my experience, especially with the NTI dollars, that there's been some pretty significant changes, in the sense that money was moved around or certain demolition money, for instance, was moved forward to be spent in more current years, as opposed to the outer years. So, yeah, I guess potentially there can be some pretty --

Councilman Goode

In terms of policy directive, not much changes between your Preliminary Plan and your final plan. So, things might change once they get to Council. But in terms of your internal process and your community participation process, not much really changes between your Preliminary Plan and the plan you submit to Council.

Mr. Hanna

Well, it depends on how 69 040775-040935-041001-041042, Finance, 12/8/04 you define "not much" because again --

Councilman Goode

I'm referring to CDBG, not so much NTI.

Mr. Hanna

Okay. And just from the standpoint of CDBG, again, just over the past couple of years, I can recall at least a couple of instances where, as a result of the testimony and the public hearings, we went back and made several changes, a couple of changes to the plan. From a policy standpoint, you're right, not a whole lot of changes. But some money has been moved around as a result of --

Councilman Goode

You made changes to the plan before it came to Council? You're not talking about after it came to Council; you're talking about before.

Mr. Hanna

Actually, both.

Councilman Goode

Okay. I guess my final question is, if April 2nd is not an acceptable date, is there a date that is acceptable?

Mr. Hanna

I'm sorry. Please understand. It's not that I'm saying that 70 040775-040935-041001-041042, Finance, 12/8/04 April 2nd is an unacceptable date. What I am saying is, it's tough for us to be locked in to any date, given the fact that we oftentimes have to wait on other people to provide us with information before we can take --

Councilman Goode

But you are, in fact, locked into a date by H.U.D.

Mr. Hanna

Right. But what I'm saying is, April 2nd kind of moves us up by --

Councilman Goode

And the date you're locked into by H.U.D. is what? MS. McCULLOCH: Well, the date we're locked into by H.U.D. is that we have to submit the Approved Plan 45 days before the end of the federal fiscal year which is August 15th. So, in terms of the absolute deadline, we have to submit a Consolidated Plan to H.U.D. no later than August 15th. So, to back out of that, we have to have something that is approved by City Council before Council goes into its summer 71 040775-040935-041001-041042, Finance, 12/8/04 recess.

Councilman Goode

And how much time do you think should be allotted for Council to review the plan that's submitted to it?

Mr. Hanna

Again, we'd love to give --

Councilman Goode

I'm not asking the question from your standpoint, in terms of how long it will take to prepare your final plan, but how much between now and the time that we generally recess do you think we should take?

Mr. Hanna

That's a tough question, Councilman. I mean, we would love to give you, you know, three months, I mean, or as much time as you think you need.

Councilman Goode

Just asking. In your estimation, how much time do you think we need?

Mr. Hanna

That's a tough question. I don't want to venture a guess. It's a better question of me to ask of you, how much time do you think you need?

Councilman Goode

Councilman Nutter 72 040775-040935-041001-041042, Finance, 12/8/04 says we need two and a half months.

Mr. Hanna

That's Councilman Nutter's answer.

Councilman Goode

Yeah. Councilman Nutter said we need two and a half months. That's his answer. My answer is probably that we need at least a month, month-and-a-half. That's why I'm asking where we reach some sort of compromise if the date is not April 2nd. And, of course, the date can't be early June. We all agree that early June is wrong. What date in between actually works?

Mr. Hanna

Again, that I don't know. But I'd be certainly willing to talk to the Committee, the Chairwoman or yourself about trying to establish something offline, as opposed to hearing this in this hearing.

Councilman Goode

Okay. Thank you.

Councilman Nutter

Madam Chair.

Councilwoman Blackwell

Councilman Nutter.

Councilman Nutter

Thank you. Just a very brief comment. 73 040775-040935-041001-041042, Finance, 12/8/04 Councilman Goode has raised one of the important questions or commented, Mr. Hanna, whether during your time or prior. I would suggest to you -- And Miss McCulloch and I certainly have been through this, and I know that the Councilwoman and many other members have as well. I would submit to you that there has been virtually no change between the Preliminary Plan and the final plan that is submitted to this Council, at least with regard to CDBG, and that virtually all of the changes to either the CDBG plan, the Consolidated Plan or the NTI program as now a part of this process. Almost all of those changes have been made in this room, in our Council Chambers, whether this room or up on the sixth floor when we were there. And we've been through all of the demolition, changed those dollars around, BSRP, adaptive modification. Those were all made here, under the gun usually, at the last minute, day before first reading or morning 74 040775-040935-041001-041042, Finance, 12/8/04 of. But that if you look at a Preliminary Plan and a final plan that gets submitted to this body, and I have, there are virtually no changes made between however many citizens decide to come out and testify about the preliminary, to the time that you submit a final to us. There are very few changes between those two documents. And I acknowledge and respect all of the advertising times, the required hearings. When Councilwoman Reynolds Brown raises the issue about citizen participation, it's in 21-1104, and makes specific reference to the hearings for citizens shall be held at times and locations convenient to very low, low and moderate income persons. I'm not necessarily sure that at 2 o'clock in the afternoon at 1234 Market Street that that is at a time or location that is convenient to the population in question. We would hope in many instances that a lot of those same individuals might 75 040775-040935-041001-041042, Finance, 12/8/04 possibly be at work. How do they participate at 2 o'clock in the afternoon? I don't think the boss is going to let them off to come testify at a public hearing over at OHCD. But we he don't have to get into those issues right now, but that's responsive to what the Councilwoman raised. And so, I think that when this Council has more time to go over such an extensive project or extensive application, now with the added dollars of NTI, and your testimony that whether it's April 2nd or whatever the date may be, the issue is it's the same date that the Mayor's required under the Home Rule Charter to submit a budget, which is 90 days before the end of the fiscal year. I mean, I just don't necessarily know that the case has been made that you can't adhere to that kind of timetable. It provides a fair amount of flexibility. And your own testimony seems to indicate that you can meet the deadline while ensuring the public, through our extensive 76 040775-040935-041001-041042, Finance, 12/8/04 process in Chapter 21, of their right to participate in the process. So, thank you, Madam Chair.

Councilwoman Blackwell

Thank you very much. Are there any more questions or comments? (No response.)

Councilwoman Blackwell

Is there anyone else who would like to testify? Miss Robinson. Thank you very much. Identify yourself again for the record, please

Ms. Robinson

Hello. My name is Judith Robinson. And I did attend the hearing yesterday for Community Block Development Grants monies. It's very important to me. So, rain or shine I was there. But because these issues are so important, I would just encourage you all to please try to get as much information as early as possible, because I have attended these hearings over the past few years. 77 040775-040935-041001-041042, Finance, 12/8/04 And what has concerned me is that the administration always comes in such a short period of time, and they always seem so unprepared. So, that's what concerns me as a citizen, and one who participates in these processes. So, I would just encourage you to get as much information as soon as possible, and also community participation is so important. Thank you very much.

Councilwoman Blackwell

Thank you, Miss Robinson.

Councilwoman Blackwell

Forgive our delay. And we thank Councilman Cohen being here for our hearing. Is there anyone else who would like to make a statement or raise a question? Councilman Rizzo?

Councilman Rizzo

No. 23

Councilwoman Blackwell

You're fine?

Councilman Rizzo

Yes. Thank you. 78 040775-040935-041001-041042, Finance, 12/8/04

Councilwoman Blackwell

Thank you very much. That will end our stated hearing. (Public hearing concluded at 4:22 p.m.) 79 040775-040935-041001-041042, Finance, 12/8/04 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING - COMMITTEE ON FINANCE - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, December 8, 2004, 4:22 p.m. - - - BILL 040470 - An Ordinance amending Chapter 8 19-2500 of The Philadelphia Code, entitled "Real Estate Non-Utilization Tax," by clarifying and amending the tax on abandoned property and vacant lots; and by changing certain tax rates; all under certain terms and conditions. BILL 040775 - An Ordinance amending Chapter 21-1100 of The Philadelphia Code, entitled "Community Development," by specifying the date by which a final community development plan must be submitted to Council for approval, under certain terms and conditions. BILL 040935 - An Ordinance amending Section 15 10-1001 of The Philadelphia Code relating to Fees of Commissioner of Records, to increase the fees for recording documents, under certain terms and conditions. BILL 041001 - An Ordinance amending Section 19-203 of The Philadelphia Code, entitled "Payroll Deductions," by permitting employees to authorize payroll deductions to purchase long term care and other voluntary insurance benefits through Financial Integrity Resources Management, LLC, under certain terms and conditions. - - - V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 80 040775-040935-041001-041042, Finance, 12/8/04 BILL 041042 - An Ordinance authorizing the Philadelphia Authority for Industrial Development ("PAID") to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program ("RACP"), in an aggregate amount not to exceed One Hundred Thirteen Million Seven Hundred Seventy Thousand Dollars ($113,770,000) to assist in the development of Children's Hospital of Philadelphia, University of Pennsylvania Cancer Care Facility, Fox Chase Cancer Center, Girard Avenue Streetscape, El Centro de Oro, Mount Airy USA, Point Breeze Revitalization Project, Beech Corporation - Broadway 1600 North Broad Street and Cecil B. Moore Avenue, Calder Museum, One Pennsylvania Place, Please Touch Museum at Memorial Hall, Philadelphia Theater Company, Greater Philadelphia Film Office Soundstage, National Museum of American Jewish History, Independence Mall, Schuylkill Riverfront, the Professional Development Center at the University of Pennsylvania, the Heritage Tourism Experience Facility, and the Arthur Ashe Youth Tennis Center; and authorizing the City to enter into an agreement with PAID in furtherance of grant requirements; all under certain terms and conditions. PRESENT: COUNCILWOMAN JANNIE L. BLACKWELL, Chair COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DAVID COHEN COUNCILMAN FRANK DI CICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JAMES F. KENNEY COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILMAN JUAN F. RAMOS COUNCILMAN FRANK RIZZO 81 040775-040935-041001-041042, Finance, 12/8/04 - - - P R O C E E D I N G S - - -

Councilwoman Blackwell

We will enter into our stated meeting. The Chair recognizes Councilman Goode -- we assume that all of these are suspension of the rules -- with regard to Bill Number 040935.

Councilman Goode

Thank you, Madam Chair. I move that Bill 040935 be reported out of Committee with a favorable recommendation; the rules of Council be suspended so as to permit first reading at our next Council session.

Councilman Ramos

Second.

Councilwoman Blackwell

It has been moved and seconded that Bill Number 040935 be reported out of Committee with a favorable recommendation, and also a recommendation for a rules suspension so as to permit first reading at our next session of Council. All in favor? 82 040775-040935-041001-041042, Finance, 12/8/04 (Chorus of "ayes.")

Councilwoman Blackwell

Opposed? (No response.)

Councilwoman Blackwell

The ayes have it, and so the Bill is passed. The Chair recognizes Councilman Ramos with regard to a motion concerning Bill 9 Number 041001.

Councilman Ramos

Thank you, Madam Chair. I move that Bill Number 041001 be reported out of Committee with a favorable recommendation; further recommend that the rules of Council be suspended so as to allow first reading at our next session of Council. UNIDENTIFIED COUNCIL MEMBER: Second.

Councilwoman Blackwell

Thank you. It has been moved and seconded that Bill 21 Number 041001 be reported out of Committee with a favorable recommendation, and also a recommendation that the rules of Council be suspended so as to permit first reading at our next session. 83 040775-040935-041001-041042, Finance, 12/8/04 All in favor? (Chorus of "ayes.")

Councilwoman Blackwell

Opposed? (No response.)

Councilwoman Blackwell

The ayes have it, and the Bill is reported out. The Chair recognizes Councilwoman Blondell Reynolds Brown, with regard to Bill 10 Number 041042.

Councilwoman Brown

I move that Bill Number 041042 be reported out of this Committee with a favorable recommendation, and a further recommendation that the rules of Council be suspended to allow first reading at our next scheduled Council meeting.

Councilman O'Neill

Second.

Councilwoman Blackwell

It has been moved and seconded that Bill Number 041042 be reported out of Committee with a favorable recommendation; and furthermore, that a recommendation that the rules of Council be suspended so as to permit first reading at our next session. 84 040775-040935-041001-041042, Finance, 12/8/04 All in favor? (Chorus of "ayes.")

Councilwoman Blackwell

The ayes have it, and so the Bill is passed out. With regard to Bill Number 040775, dealing with the time requirement for the Office of Housing and Community Development, we are holding this Bill temporarily. We have made a commitment to the Bill's sponsor that if there is no resolution 12 of the issue, that we will hear it at the next scheduled session of this Finance Committee. We cannot do that today. As all of you know, we're at the end of our session, so we don't have a calendar available this moment. But we are requesting that Mr. Hanna and Miss McCulloch work with Councilman Nutter so that we may have a resolution of the issue. If we're not able to resolve it, we'll hear it at our next Finance Hearing, and then report it up or down at that time. Is that satisfactory to all? 85 040775-040935-041001-041042, Finance, 12/8/04 Thank you very much. This ends the Finance Committee hearing and meeting. We thank you all for being here, and we assure you we will see you at our next real session at the Committee of the Whole. Thank you so much. Thank you, members of the Committee. (Public meeting concluded at 4:25 p.m.) 86 040775-040935-041001-041042, Finance, 12/8/04 CERTIFICATE I HEREBY CERTIFY that the proceedings and evidence are contained fully and accurately in the stenographic notes taken by me upon the public hearing and public meeting of The Philadelphia City Council, taken on December 8, 2004, and that this is a true and correct transcript of same. _____________________________ DAVID A. DEIK, RPR and Commissioner of Deeds (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)