COUNCIL OF THE CITY OF PHILADELPHIA STATED MEETING Room 401, City Hall Philadelphia, Pennsylvania Thursday, February 25, 1999 10:00 a.m. PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN AUGUSTA CLARK COUNCILMAN DAVID COHEN COUNCILMAN FRANK DI CICCO COUNCILMAN JAMES KENNEY COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN W. THATCHER LONGSTRETH COUNCILMAN RICHARD T. MARIANO COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN O'NEILL COUNCILMAN ANGEL L. ORTIZ COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN B. TASCO MARIE B. HAUSER, CHIEF CLERK VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 INVOCATION
I note that the hour has come and that a quorum of this Council is present. Council will come to order. Members will take their seats. Visitors will retire to the seats outside the rails. To give our invocation this morning, the Chair recognizes Rabbi David Novitsky. He is from Congregation Atiz Chaim and is the guest of Councilman Rizzo. Members and guests will please rise.
All Mighty God, Eternal Creator, we are gathered here today as representatives of the world's greatest city and to conduct business for the City's behalf. As we start the discussions of the day, let us heed the words of God in the book of Micah Chapter 7, Verse 18, that God delights in love and kindness. And let us also pay attention to the words of God in Deuteronomy Chapter 28, Verse 9, "You shall walk in God's ways." The midrash, a compendium of text on the Old Testament explains, what does it mean that you shall walk in God's ways; that we have to act in the same manner of God. INVOCATION Just as the Holy One, blessed be he, is compassionate; so we shall be compassionate. Just as the Holy One, blessed be he, is called gracious; so we shall be gracious. Just as the Holy One, blessed be he, is called righteous; so we shall be righteous as well. As leaders of this fine and magnificent city, let us heed these words of the All Mighty as we transact business. Just as the Holy One cares for the needs of the weak, the sick, the homeless, the elderly, the widow, and the orphan, we must be concerned about their plight as well. Just as the Holy One protects the weak and vulnerable, we must ensure the security and protection for all our citizens. Just as the Holy One has taught us proper morals and values, we must also teach our children in the Philadelphia School District proper morals and values as well. Just as the Holy One forgives our sins and transgressions, let us forgive each other for our mistakes and trespasses of the past and ask that God guide us with proper light and direction in all our actions in which we partake in, in these APPROVAL OF JOURNAL beautiful chambers would serve as a house of the Lord as well. Amen.
The Chair thanks Rabbi Novitsky for his inspiring invocation. Thank you. (Council at rest.)
The next order of the business is the Approval of the Journal of the meeting of February 18, 1999. The Chair recognizes Councilwoman Clark.
Madam President, I move the adoption of the Journal of February 18, 1999. (Duly seconded.)
It has been second. All in favor will signify by saying aye. Those opposed? The ayes have it. The Journal of Thursday, February 18, 1999, is approved.
The Chair recognizes Councilwoman Clark for the purpose of LEAVES OF ABSENCE leaves of absence.
Madam Chair, I am unaware of any requests for leaves of absence at this time.
The Chair thanks the Councilwoman. The Chair recognizes Councilman Rizzo. Are there any reports or requests for leaves of absence?
No requests. I believe Councilman Longstreth is not here today, but Councilman O'Neill is.
So you're asking for a leave of absence for Councilman Longstreth?
The Chair will dispense with the regular order of business to recognize the guests and visitors joining us in the chambers this morning. WELCOME AND PRESENTATIONS On behalf of all Members of Council, I welcome you to our City Council Session this morning. We appreciate your taking the time to join us as we attend to the legislative affairs of our City. We welcome you to come back again. Do we have the Martin Luther King High School Chorale Society here? Councilwoman Tasco, is your group expected to be coming in?
Well, supposing we go on with our agenda while we're waiting.
The next order of business is Communications. The Chair recognizes Sergeant-at-Arms for the purpose of delivering the messages from the Mayor to the Chief Clerk. The Chief Clerk will read the messages from the Mayor.
To the President and Members of the Council of the City of Philadelphia, I am transmitting herewith for the consideration of your honorable body the following: COMMUNICATIONS A resolution designating the Philadelphia Industrial Development Corporation as the industrial development organization for the County of Philadelphia with full power and authority to represent said county in all matters relevant to and for all purposes of the Industrial Development Assistance Law.
The messages will be printed in the Journal. The Chief Clerk will read any other communications in her possession.
There being none, the next order of business is Introduction of Bills and Resolutions. The Chair recognizes Councilwoman Clark for the purpose of making a motion to suspend rules on resolutions.
Madam President, I INTRODUCTION OF BILLS AND RESOLUTIONS move that the Rules of Council be suspended so as to permit immediate consideration of resolutions at the time of their introduction. (Duly seconded.)
It has been duly seconded. All in favor of the motion to suspend the Rules of Council to permit immediate consideration of resolutions at the time of introduction will vote aye. Those opposed? The ayes have it. The motion is carried. The Chair recognizes Councilwoman Clark for any bills or resolutions that she would like to introduce.
Madam President, today I have no bills or resolutions.
I see that we're getting ready to go into bills and resolutions, but INTRODUCTION OF BILLS AND RESOLUTIONS I can see off to the side that Councilwoman Tasco's group may be upon us.
While they're setting up, I don't see any reason why we can't continue. The Chair recognizes Councilwoman Blackwell.
Madam President, I have no bills or resolutions today.
The Chair thanks the Councilwoman. The Chair recognizes Councilman Cohen.
Thank you. Councilwoman Krajewski is not here. The Chair recognizes Councilman Kenney.
The Chief Clerk will please read the title of the resolution.
A Resolution honoring and commending Project Home on the occasion of its 10th anniversary. INTRODUCTION OF BILLS AND RESOLUTIONS
It has been moved and properly seconded. All of those in favor will signify by saying aye. Those opposed? The ayes have it. The motion is carried. The Chair recognizes Councilman Mariano.
The Chief Clerk will please read the title of the bill.
An Ordinance amending Section 9-205 of the Philadelphia Code relating to sidewalk sales by adding a new provision prohibiting sidewalk sales on Wyoming Avenue, both sides, Whittaker Avenue to Fifth Street.
The bill will be referred to the appropriate committee. INTRODUCTION OF BILLS AND RESOLUTIONS The Chair recognizes Councilwoman Miller.
Thank you, Madam President. I offer two resolutions.
The Chief Clerk will please read the title of the first resolution.
A Resolution authorizing the Commissioner of Public Property to execute and deliver to the Redevelopment Authority of the City of Philadelphia without consideration deeds for properties situate in the 11th, 13th, 22nd, and 59th Wards of the City of Philadelphia.
I move for the adoption of the resolution. (Duly seconded.)
All those in favor will signify by saying aye. Those opposed? The ayes have it. The motion is carried. The Chief Clerk will please read the INTRODUCTION OF BILLS AND RESOLUTIONS second resolution.
A Resolution honoring and commending the accomplishments of Emma Hawkins Jackson and saluting her continued commitment to building audiences to showcase talented voices though Opera North, Inc., the City of Philadelphia's only African-American organization devoted to opera.
I move for the adoption of the resolution. (Duly seconded.)
It has been moved and seconded. All those in favor of the motion will signify by saying aye. Those opposed? The ayes have it. The motion is carried. The Chair recognizes Councilwoman Krajewski.
Madam President, I offer one bill. INTRODUCTION OF BILLS AND RESOLUTIONS
The Chief Clerk will please read the title of the bill.
An Ordinance authorizing the revision of lines and grades and a portion of City Plan No. 3-29 of an area bounded by Pratt Street, Penn Street, Bridge Street, Bustleton Avenue, and Frankford Avenue by relocating the northeasterly curb line of Pratt Street in establishing a cut-back corner at the northwest corner of Pratt Street and Frankford Avenue under certain terms and conditions.
The bill will be referred to the appropriate committee. The Chair recognizes Councilman Nutter.
The Chief Clerk will please read the title of the resolution.
A Resolution recognizing February 25, 1999, as Reparation Awareness Day in urging the U.S. Congress to pass HR40 and the Pennsylvania House Representatives to pass HB315, both entitled, the Commission to Study Reparation Proposals for African-American Act. INTRODUCTION OF BILLS AND RESOLUTIONS
Madam President, I move the adoption of the resolution. (Duly seconded.)
It has been moved and seconded that the resolution be adopted. All in favor will signify by saying aye. Those opposed? AUDIENCE MEMBER: Nay. I oppose that particular bill being passed, but as far as reparation, I am in total agreement.
All those in favor will signify by saying aye. Those opposed? The ayes have it. The motion is carried. (Applause.)
Madam President, I have no bills or resolutions today.
Thank you. The Chair recognizes Councilman Ortiz. INTRODUCTION OF BILLS AND RESOLUTIONS
The Chair thanks the gentleman. The Chair recognizes Councilman DiCicco.
Thank you, Madam President. I offer one bill and two resolutions.
The Chief Clerk will please read the title of the bill.
An Ordinance authorizing the Courtyard Annex, LLC, a Delaware limited liability company, owner of 23-31 North Juniper Street, Philadelphia, Pennsylvania 19107 to construct and maintain various encroachments under, over, and on the public right-of-way on Juniper Street between Commerce Street and Filbert Street under certain terms and conditions.
The bill will be referred to the appropriate committee. The Chief Clerk will please read the first resolution.
A Resolution calling for the Legislative Oversight Committee to hold public hearings on the administration and INTRODUCTION OF BILLS AND RESOLUTIONS accountability of the City Empowerment Zones.
Madam Chair, will that be referred to the committee?
Is that to be referred to the Oversight Committee?
The resolution bill will be referred to the Oversight Committee. The Chair recognizes the Chief Clerk to read the second resolution, please.
A Resolution recognizing Herbert Oliver and Lester Johnson.
Thank you, Madam President. I move for the adoption of the resolution. (Duly seconded.)
It has moved and seconded that the resolution be adopted. All in favor will signify by saying aye. Those opposed? WELCOME The ayes have it. The motion is carried. The Chair recognizes Councilman O'Neill.
Councilman, to the best of your knowledge, is Councilman Longstreth requesting a leave of absence?
To the best of my knowledge, he is not. I will keep you posted during the meeting.
Thank you. The Chair recognizes Councilman Rizzo.
If the chorale group is here and ready, I guess this would be a good time to recognize them. I am pleased to join my colleagues in welcoming the Martin Luther King High School Chorale Society. The students are here to perform in REPORTS FROM COMMITTEE commemoration of Black History Month. They are the guests of Councilwoman Tasco, and I ask you to welcome them with me as they begin their performance. (Applause.) (The Martin Luther King High School Chorale Society performs.)
Thank you, Madam President. We'd like to thank the Martin Luther King Choir for coming here today. And the choir is under the direction of Mrs. Nancy Jackson. (Applause.)
She'll let us know when their concert will be so that we can go and hear the choir in concert at the school.
Next order of business is reports from committees. The Chair recognizes Councilman Kenney for the report from the Rules Committee. REPORTS FROM COMMITTEE
Thank you, Madam President. The Council Committee on Rules reports out Bill No. 990059 with a favorable recommendation.
The Chair thanks the gentleman. The Clerk will please read the report.
To the President and Members of the Council of the City of Philadelphia, the Committee on Rules to which was referred Bill No. 990059, entitled, an Ordinance declaring that it is desirable for the health, safety, and welfare of the people in the area served by Jefferson Health System, Inc.; Frankford Health Care System, Inc.; Frankford Hospital Philadelphia Frankford Hospital; and Delaware Valley Medical Center for the hospitals and Higher Education Facilities Authority of Philadelphia to participate with the System, FHCS, Frankford Hospital, and DVMC in a financing to provide for the acquisition by the System of the sole corporate membership interest in FHCS for acquisition by Frankford Hospital or its assignees of substantially all the assets of DVMC and for constructing and equipping improvements to the facility DVMC, respectfully reports it FIRST READING CALENDAR considered the same and returned the attached bill to Council with a favorable recommendation.
I move that the Rules of Council be suspended so as to permit first reading of Bill No. 990059 today. (Duly seconded.)
It has been moved and seconded that the Rules be suspended as to permit consideration for first reading of this bill today. All in favor will signify by saying aye. Those opposed? The ayes have it. Bill No. 990059 will be placed on our first reading calendar for today. Are there any other reports from committees?
There being none, the next order of business is consideration of the calendar. I believe we have one bill on the first reading calendar. The Chief Clerk will please read the bill. FIRST READING CALENDAR
I'm sorry, Madam Chair. An Ordinance declaring that it is desirable for the health, safety, and welfare of the people in the area served by Jefferson Health System, Inc., the System; Frankford Health Care System, Inc., FHCS; the Frankford Hospital Philadelphia Frankford Hospital; and Delaware Valley Medical Center, DVMC, for the hospitals and Higher Education Facilities Authority of Philadelphia to participate with the System, FHCS, Frankford Hospital, and DVMC in a financing to provide for the acquisition by the System of the sole corporate membership interest in FHCS for the acquisition by Frankford Hospital or its assignee of substantially all the assets of DVMC and for constructing and equipping improvements to the facilities of DVMC respectfully reports it consider the same.
The Chair agrees. The bill read by the Chief Clerk will be SECOND READING AND FINAL PASSAGE CALENDAR placed on the Second Reading and Final Passage Calendar for our next meeting.
The next order is consideration of bills on the Second Reading and Final Passage Calendar. Councilwoman Clark.
Madam Chair, all bills are being held except Bill No. 990001A and 970272 which is being called up for purpose of recommit.
The Chair thanks the Councilwoman. The first bill to be called for consideration is Bill No. 990001A. The Chief Clerk will please read the title of that bill.
An Ordinance amending the Retirement System Ordinance, approved December 3, 1956, as amended, and amending the Municipal Retirement Benefit Plan 1987 Ordinance, which became effective January 8, 1987, as amended by adding new Sections to, in the case of both Ordinances, provide for increases to the benefits of certain uniformed and nonuniformed retirees, SECOND READING AND FINAL PASSAGE CALENDAR beneficiaries and survivors by providing for certain increases, under certain terms and conditions; and making certain related technical amendments.
The Chair recognizes Councilman Nutter. Do you want to be recognized, sir?
Well, we're ready to be vote so I'm recognizing you.
Thank you. Madam Chair, I wanted to express a tremendous amount of appreciation to all of the Members of City Council for the work that was done in a collaborative fashion on this bill. But most importantly, I think the work and effort of Councilwoman Blackwell for bringing this issue to this body possibly at a time that the Members were not completely ready to deal with it, but we did in fact end up dealing with this issue, and should have been dealt many, many years ago. Many of our retirees have not, it is a fact, received increases, some, for upwards of 18 years. So I think that the members of the body SECOND READING AND FINAL PASSAGE CALENDAR tried to do the best that they could under difficult circumstances, and I greatly appreciate all the support, the suggestions, the criticisms, the critique of this piece of legislation that results in it being ready for vote today. Let me also say that many of the union leaders, some of whom are here today, but Mr. Costello, Mr. Cronin, Mr. Matthews, and Mr. Yost, as well their certainly helpful advisor Mr. Edis also provided this Council with great insight and at times criticism and suggestions. All of it is helpful in this process. At times it is not a perfect process, but I think we were able to come up with something that recognizes, again, the needs of the retirees. And I want to thank them for all their time and attention to this matter. Thank you very much, Madam President.
Thank you. The Chair recognizes Councilman O'Neill.
Thank you, Madam President. Well, I agree with Councilman Nutter, and I would like to add congratulations to him because he did so much work on this. Although I did SECOND READING AND FINAL PASSAGE CALENDAR disagree with him on the final product, he certainly put his all into it and deserves a lot of credit. Even the Mayor, whom I disagree with on some of this bill, if the Mayor weren't agreeing to sign the bill, we may not be sitting here with anything, and I think that should be recognized. However, the bill is really two bills in one. One deals with something that we all agree on; that is, the two bonuses that will go to long-time retirees over the next two years. I don't think there's any question about that. I think it's time to make up for past wrongs even though we weren't involved in those wrongs. Those people have been living on fixed incomes for a very long time. However, the real opportunity to deal with pensioners who are not in the bonus category and who will be going out in the future is in the COLA provision, setting up in the adjustment fund. And that's the second part of the bill. It's really the second bill within a bill. And I believe that we are being terribly shortsighted in not starting that pension adjustment fund at the actuarial assumption which is now 9 percent, but instead going to 10 percent before the new fund which starts SECOND READING AND FINAL PASSAGE CALENDAR sharing on a 50/50 basis with the pension fund. I say that because in the last 10 years the Niels (ph) have been such that once they are adjusted and smoothed out over five years under the adjustment mechanism that is in the bill, there's very little left. And I'm still trying to find that prognosticator who will prognosticate that we're going to have a better stock market in the next 10 years than we had in the last 10, which is a historic level of gains in the stock market. I also believe that it's a time when we know that future pensioners who are now employees that started with the city in 1988 have significantly lower pension benefits awaiting them when they get out. Legislation was passed, I believe, in '87 where many adjustments were made to help the fund. One of the ones benefited both us as elected officials and other high-ranking administration officials. But while not affecting current employees at that time, new employees have significantly lower pension benefits. And when you add to that, that we're minimizing rather than maximizing the COLA potential, I think we're making a mistake. SECOND READING AND FINAL PASSAGE CALENDAR The other thing is, and I can't -- I don't think we can overlook it, is that the unions play such a large part. 25 billion, was absolutely essential to that being passed at the end of last year. And the pension fund greatly benefits from that, but the general fund benefits very, very much to the tune of 30-plus million dollars a year. And of that 30-plus million dollars, only a fraction is even affected in this bill. I mean, for all the talk we've talked about the impact on the general fund and the rating of the general fund and the sanctity of the general fund, the general fund will be compensated from that pension bond issue in a multiple three to four times what anything in front of us would cost or if we had a 9 percent actuarial assumption floor for the sharing with the new adjustment fund rather than 10 percent, 1 percent over the actuarial assumption, we would never get near the 30-plus million that the general fund will realize over the next 30 years each year because of what was done and could only have been done with the same unions that agreed, I guess, for the second time in their history on SECOND READING AND FINAL PASSAGE CALENDAR something, and that was trying to have the actuarial assumption begin at 9 percent. So I believe it's a flawed part two in the bill. I think it's a great piece of legislation because it is landmark, it sets up a mechanism.
And I'm confident that we can make our own adjustment later. But I can assure you, Madam President, that if not sooner, if I'm back here in January, the first bill I will try to see introduced, and hopefully all of us back and new members will support having the actuarial assumption be the point of sharing so there can be real money and real hope for a future COLA for our pensioners. Thank you.
Thank you. The Chair recognizes Councilman Cohen.
Thank you, Madam President. When the bill on the pension retirement was first introduced by Councilwoman Blackwell -and I want to salute her leadership throughout the entire fight because it wasn't as obvious as it became later that justice cried out that this bill be passed. I want to indicate that we've made a SECOND READING AND FINAL PASSAGE CALENDAR tremendous first step forward by this bill. We're righting wrongs that existed for a long time. We all who have been in the Council for quite sometime are responsible for this long delay. I hope this marks the end of the period when the mayors will say pensions belong only on the collective bargaining table where they never get solved and ultimately they fall into the lap of the City Council. But this bill is a great step forward. It rights a wrong that was crying out to the high heavens to be corrected. Councilman O'Neill is right with respect to the cost of living. We're just at the beginning of the process. I hope before we're done with the question of pensions we're going to have a pension bill that honors the City of Philadelphia, honors its employees. But no one must overlook the fact that this is a tremendous victory, this bill. And the reason nobody argued on the first two years -I'm wrong. The Mayor fought really against the first year originally. He agreed, then he fought against the second year of increases and then he agreed. And for that, I think all of us are entitled to great credit. SECOND READING AND FINAL PASSAGE CALENDAR But to the retirees, on behalf of all of the Council Members, what you're getting from this bill you richly and justly deserved. Thank you Madam President. (Applause.)
Thank you, Madam President. Certainly, let me thank my colleagues who mentioned me in their remarks and for all those who are supporting this bills, all my colleagues in Council. Let me say that certainly I'm glad that we have two lump sum payments that will be meted out to the retirees in two years. I certainly agree that the COLA provision is uncertain and that I'm hopeful that we will be as watchful as we say we will to have a real bill that will help retirees who so desperately need it. I would like to say thank you to the union leaders who came together and who have stayed together and who have pledged to try to stick together from here on with regard to this issue and other issues that affect them and their retirees. SECOND READING AND FINAL PASSAGE CALENDAR And finally, let me say Godspeed to all those retirees in the City who have given their lives in service to us and who certainly deserve really a hands-up to make their retirement lives more comfortable. All of those who desperately need it, I regret that we didn't get more, but let me say that Godspeed and let's all stick together and thank you for your struggles for our city. (Applause.)
Thank you, Madam Chair. I agree were Councilman Cohen and Councilwoman Blackwell and my colleague Brian O'Neill, and might I say, all of the hard work Michael has put into developing this. We began this process more than five, six, eight months ago, and we have come along way. And although we did not get what we ultimately wanted, we did take the steps forward that advanced the process and advanced the cause of the pensioners a great length of the road. I think we have the structure for the SECOND READING AND FINAL PASSAGE CALENDAR COLA in place. We have to be very vigilant and we have to bring back this legislation within the next three years to make sure that we're being fair and that the COLA, if it's going to take effect, does so at that time. We in Council have retained the power to be able to change it along the way in three years interval. I congratulate the leadership of the unions because without their effort, their unity, this process could not have been achieved. And I salute the Council because without the unity that we displayed and the perseverance that was done in all of the work, this bill would not have been done. So I think we have come a great length of the way towards what we all want. We're not there yet, but we're on the road to achieving it. Thank you, Madam Chair. (Applause.)
Councilman Kenney, would you come up a minute, please? (Pause.)
To make absolutely certain we're all on the right track, I SECOND READING AND FINAL PASSAGE CALENDAR would ask the Chief Clerk to please read the title of Bill No. 990001A.
An Ordinance amending the Retirement System Ordinance, approved December 3, 1956, as amended, and amending the Municipal Retirement Benefit Plan 1987 Ordinance, which became effective January 8, 1987, as amended by adding new Sections to, in the case of both Ordinances, provide for increases to the benefits of certain uniformed and nonuniformed retirees, beneficiaries and survivors by providing for certain increases, under certain terms and conditions; and making certain related technical amendments.
The ayes have it, and the bill passes unanimously. Congratulations to all of you. Congratulations. (Applause.)
The Chair recognizes Councilman Kenney regarding Bill No. 970272.
Thank you, Madam President. I would asked that Bill No. 970272 be referred back to its committee. (Duly seconded.)
All those in favor will signify by saying aye. Those opposed? The ayes have it. The motion is carried.
Are there any speeches on the part of the minority? Are there any speeches on the part SPEECHES majority? The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. Just this morning I attended a debate with five mayoral candidates. Former President was absent because -
Councilwoman, do you mind waiting just a moment? We're still in session, gentlemen, please.
Madam President, I'll only take a moment. Before coming in this morning, I attended a mayoral debate sponsored by the Chamber at the Hyatt. And certainly the issue of the stadiums came up and each candidate was asked. Now, three out of the five there said they favored a West Philadelphia site. One other candidate said that the people should decide. And the fifth candidate said that he was open to all sites. So I say that for the administration to realize that it's time for us to have dialog with ADJOURNMENT this Council, with all of those. Certainly, I represent the 30th Street site which included the majority opinion, and we look forward to having all the information we need with regard to venue cost, financing, et cetera, so that we may be a full partner in this discussion. Thank you, Madam President.
You're welcome. Are there any other speeches on part of the majority?
I move that this Council be adjourned until next week, March the 4th.
It has been properly moved and seconded that Council stand adjourned until Thursday, March 4, 1999, at 10:00 a.m. All in favor? ADJOURNMENT All opposed? The ayes have it. The motion is carried. (Adjourned at 10:55 a.m.) C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of February 25, 1999, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: STATED MEETING ___________________________ Lisa C. Bradley, RPR and Notary Public