COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT - - - Room 696, City Hall Philadelphia, Pennsylvania Thursday, February 27, 2003 1:20 p.m. - - - RESOLUTION 020238 - Resolution authorizing City Council Commerce and Economic Development Committee to conduct Public Hearings to investigate the underutilization of Disadvantaged Business Enterprises (DBE)... RESOLUTION 030038 - Resolution calling on the Philadelphia Workforce Development Corporation to conduct a needs assessment of training opportunities within the Building and Construction Trades... - - - PRESENT: COUNCILMAN MICHAEL NUTTER, Chairman COUNCILMAN DARRELL CLARKE COUNCILMAN DAVID COHEN COUNCILMAN W. WILSON GOODE COUNCILMAN ANGEL ORTIZ COUNCILWOMAN MARIAN TASCO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 (215) 561-2220 I N D E X RES. 020238, 030038 PAGE PATRICK CLANCY, PWDC ....................... SAMUEL STATEN, SR., Laborers' Local 332 .... 40 WILLIAM PEEBLES, DAP ....................... 45 TONY LEWIS, Housing Association ............ 53 SACAREE RHODES, African Daughters of Fine Lineage ....................... 57 ANTHONY FULLARD, Contractors Roundtable .... 69 JANICE DAVIS, Director of Finance .......... 77 JAMES ROUNDTREE, MBEC ...................... 83 JAMES DICKERSON ............................ 98 WILLIAM GAMBLE, Procurement Commissioner... 106 LAZAR KLIET, Philadelphia Commission on Human Relations ...................... 147 DEBORAH MCCOLLOCH, Director of Housing .... 155 MJENZI TRAYLOR, First Deputy Director of Commerce .......................... 158 VINCENT COLES, OHCD ....................... 165 MICHAEL BELL, Redevelopment Authority ..... 169 JAHAD ALI, Contractor's Roundtable ........ 188 3 2/27/03 - COMMERCE - RES. 020238, 030038
Good afternoon, ladies and gentlemen. This is the Committee on Commerce and Economic Development. I am Councilman Nutter, Chair of the Committee. Other Councilmembers here at the moment are Councilman Goode and Councilman Ortiz. I apologize for the delay in getting our hearing started. The committee is taking testimony on two resolutions, Resolution 0202338 and 030038. Resolution 020238 is a Resolution 12 authorizing City Council Commerce and Economic Development to conduct public hearings to investigate the underutilization of Disadvantaged Business Enterprises (DBE) and the underemployment of women, disabled and minority residents of the City of Philadelphia on local construction projects and City procurement contracts, and further authorizing the Committee to issue subpoenas and such other processes as may be appropriate to compel the attendance of witnesses and the production of documents in furtherance of the investigation to the full extent authorized by Section 2-401 of the Home Rule Charter. Resolution 030038 is a resolution 4 2/27/03 - COMMERCE - RES. 020238, 030038 calling on Philadelphia Workforce Development Corporation to conduct a needs assessment of training opportunities within the Building and Construction Trades, particularly to improve minority and female employment participation through PWDC financial support of initiatives such as the Diversity Apprenticeship Program, and authorizing City Council's Committee on Commerce and Economic Development to hold hearings into the state of training opportunities for minorities and women in Philadelphia's Building and Construction Trades. Both of the sponsors of the resolutions, Councilman Goode and Councilman Ortiz, have assembled. Witnesses and panels, we will do our best to maintain the integrity of the schedule. And I believe both members have opening statements. The Chair will recognize Councilman Goode and then Councilman Ortiz.
Thank you, Mr. Chairman. I will make my remarks brief. Several months ago I was invited by the Philadelphia Workforce Development Corporation to participate in the final panel discussion of a Workforce Development Conference. I was invited as 5 2/27/03 - COMMERCE - RES. 020238, 030038 an economic development professional and legislator. The panel discussion was entitled, "Workforce Development - Where Do We Go From Here." My presentation focused on the disconnect between work force development and economic development and my assertion that job training is not economic development unless it leads to a job. We must create more job opportunities for Philadelphia residents. We must prepare more people for those job opportunities. There must be a direct link between training opportunities and real jobs. Particularly, as we invest billions of dollars in stadiums, convention center expansion, and neighborhood transformation, including Community Development Block Grant and Capital Budget spending, there are lost economic opportunities for Philadelphia residents, particularly minorities and women, if there are training gaps that are not being addressed. Otherwise, Philadelphia residents will continue to watch others economically benefit from public investment of Philadelphia taxpayer dollars. This Resolution 030038 calls for a hearing to address those training needs. Thank you. 6 2/27/03 - COMMERCE - RES. 020238, 030038
Thank you, Mr. Chairman. For the last years and ever since -- 5 actually, since 1982 when legislation was passed in 6 this City creating MBEC, the Office of Minority 7 Business Enterprises. And then in '97-'98, a 8 Supreme Court, going on a lawsuit by Contractors 9 Association, really nullified that 1982 law. And we 10 have had really an office that has very little force 11 for implementing obligating the hiring of minority 12 contractors in this City. 13 Over the years we have asked MBEC and 14 other institutions and government offices of the 15 Procurement Department for data and information as to minority participation in all of the contracts, the millions of dollars in contracts that the City gives out, personal service contracts, bond contracts, contracts for a multitude of issues and projects and services. We really haven't been able to detail what minority participation we are getting. However, what we do know, because even the Mayor in his State of the City speech in January said it, the participation of minority contractors and minority business in the City of Philadelphia 7 2/27/03 - COMMERCE - RES. 020238, 030038 needs to be hugely improved. We're not where we thought we were or we should be, and we have no 4 means of really getting there. A few months ago, a group of black activists in this City, Sacaree and other individuals, Sacaree Rhodes and other activists in the City began organizing around the issue of minority contractors in all of the building projects across the City, going down to the Constitutional Center that was getting built, SEPTA operations. What they found and what we want to really emphasize is that there were very -- minority contractors were nonexistent in any of these projects across the City. Both Councilman Goode and I believe and Michael Nutter that if you give contracts and minority contractors begin getting contracts in this City, be they for construction projects, be they to supply services and goods to the City for materials that the City needs, that minorities will get employment. We believe that if we create an environment of business in this City in which minority folks, African American, Latinos, and women and other minorities can begin and can trust that 8 2/27/03 - COMMERCE - RES. 020238, 030038 they will be getting participation in the millions of dollars that are contracted out by the City, I believe that employment will happen. I believe that blacks will get employed. I think that Latinos will get employed. But we have to provide the contracting opportunities to African American entrepreneurs, Latino entrepreneurs. And we no 9 longer use the excuse that was given back when I started in this business in '84, "Well, there are no 11 minority contractors out there. There are no 12 lawyers out there that can do bond work. There are no minority entrepreneurs that can provide services and goods in this area or that area." Well, I think if there aren't, I think we have to begin making it possible that they come about. And if they are, we've got to make sure that they have a very good opportunity to become involved and get the contracts. Today we put legislation to try to assure that that happens. All of my colleagues signed that legislation. We will be having hearings on it and we will pass that legislation. It will replace what is commonly known today as MBEC with a new organization that the Mayor will put together 9 2/27/03 - COMMERCE - RES. 020238, 030038 and then that the Mayor will put an executive order that will fit into the purposes and goals of the new Affirmative Action legislation. So today, we have a beginning, really. This is a hearing that I remember having in 1985. This is the year 2003 and we're still talking about the lack of minority participation. We shouldn't be having this hearing at this time. Thank you. So let's begin the hearing.
Thank you to both Councilmembers for their opening comments. And the record should note that we've also been joined by Councilwoman Tasco and Councilman Cohen. The first panel that we're going to hear testimony from is from the Philadelphia Workforce Development Corporation as Panel 1.
Good afternoon, Chairman Nutter, Councilwoman Tasco, Councilman Cohen, Ortiz and Wilson Goode, Jr. I thank you very much on behalf of the Philadelphia Workforce Development Corporation to bring you testimony today. , who invited us. I bring you greetings from our 10 2/27/03 - COMMERCE - RES. 020238, 030038 President, Mr. Earnest Jones. At the same time, I relay his regrets for not being able to be here personally because of an out-of-town event. I am Patrick Clancy, Vice President for Training and Defense Programs at the Philadelphia Workforce Development Corporation, formerly known as the Private Industry Council, however we will be known as PWDC in this testimony. PWDC is the largest work force development agency in Philadelphia and also serves as the City's fiscal agent for work force funds from the Department of Public Welfare and the Department of Labor and Industry. In this capacity, we contract most of these funds for training and placement services for our constituents. We realize the importance of getting City residents into building trade, and consequently, have funded a number of apprenticeship programs to accomplish that. 2 million. The contracts were with the following organizations as you'll see in my testimony and there's a break-out of the investment we made, the 11 2/27/03 - COMMERCE - RES. 020238, 030038 amount of people that were enrolled, the number of people that were employed from the program, and then you'll see the number of people that actually were able to get into union positions. And for the sake of my friends behind me who may not have the chart, I'll read it quickly for them. 2 million for a pre-apprenticeship training program. We've been working with Congreso for five years in which they've been able to enroll 248 individuals. They've been able to secure employment for 182 individuals. And 90 of those individuals were able to access union positions mainly within the carpenter union. Over the past years was also invested in TOP/WIN which is a non-traditional training for women. So it's a program that helps to convince women to access into building trades and other trades because the pay is what we would consider a self-sufficient wage. The program earlier on had a much more concentrated effort on trying to get people into the unions, but that did not work out. So most of their training now really focuses on 12 2/27/03 - COMMERCE - RES. 020238, 030038 getting individuals into a variety of unions, maybe not necessarily the construction union even though they're open to that. The third program that we're currently funding is a program called Connections Training, and it works predominantly with ex-offenders who are trying to reestablish themselves in the community. And what we've been able to do with Connections is really look at taking someone who's had minimal skills or who had skills that are not updated to get them into a position, whether it be union or non-union, but to continue them on the road toward that self-sufficiency. So even though you will see that none of those individuals have transitioned into union employment, it is the goal of the program to get people towards that. Based on the information we have received from our training vendors, 80 percent of the students who have taken the apprenticeship have passed. The challenge has been actually getting people into the unions. So we have individuals who've done all their due diligence, who've taken all tests, but yet have not been able to access union opportunities. 13 2/27/03 - COMMERCE - RES. 020238, 030038 Additionally, the Philadelphia Workforce Development Corporation is a fiscal agent. What that means is that we've received funds directly from the State for other organizations. 1 million. And that money came directly from the State's Department of Labor and Industry. Because the program is a pass-through program, they are not required to give us performance outcomes. That normally goes to the State.
And trying to get that information back from the State is not an easy challenge. I was able to read in your resolution 16 what some of the outcomes have been based on testimony they may have given to you, and I just repeated them in my testimony. 1 million, it's estimated that 775 people were to go through pre-apprenticeship training, of which 49 have gained access into the building trades and 108 have gained employment elsewhere. We believe at PWDC that survival and growth of our local economy depends largely upon our 14 2/27/03 - COMMERCE - RES. 020238, 030038 ability to provide a skilled and prepared work force that allows the business community a steady pool of Philadelphia residents ready to enter or in some cases re-enter the world of work. We recently received a two-page concept paper from the Diversity Apprenticeship Program to provide training and job placement for the City's Neighborhood Transformation Initiative. We will meet with them in the near future to see if we can develop a proposal which meets the benchmarks set by our Board of Directors, namely, that the investment of public funds leads to real union jobs. To this end we stand ready to partner with training providers that offer sound practical programs leading to jobs providing family-sustaining wages. I thank you for your attention, and I'll be happy to address any questions I can.
Thank you, Mr. Chairman. Good afternoon, Mr. Clancy, and thank you for your testimony. Let me start by asking a 15 2/27/03 - COMMERCE - RES. 020238, 030038 few basic questions.
What level of Workforce Development funding comes to the City on an annual basis?
On an annual basis, both with the Department of Public Welfare and the Workforce Investment Act, we received close to $110 million.
$110 million. What percentage of local Workforce Development funds flow through PWDC directly? The same $110 million?
Well, there's actually additional programs that the State funds. We're sort of like the bank in the City that receives funds.
The first question is, what amount of money actually comes to the City annually? The second question is, what percentage actually flows through PWDC?
All of it for training for currently constituents on TANF and for those who 16 2/27/03 - COMMERCE - RES. 020238, 030038 have been displaced.
How many PWDC clients are placed annually in real jobs?
That is about -- we probably serve close to 10,000, so it's about 40 to 45 percent actually.
Yes. Now just so I can clarify that. That is based on how we train individuals to get additional skills. Some of the placement activity we're still trying to capture, but we train about 4,000 a year that we now get into positions.
The average cost across all 17 2/27/03 - COMMERCE - RES. 020238, 030038 of our programs is probably around $5,000.
So you are familiar with the Diversity Apprenticeship Program?
Have you done any analysis of the program and its effectiveness?
Well, what is PWDC prepared to do on its own initiative related to the subject of this resolution?
Well, our goal would be to get the critical partners in the room to decide how can our local investment really help individuals get into the union. So we would be meeting with the representatives of DAP. We also are trying to meet with representatives of local unions to figure out where does it disconnect and how we can begin to -- and I know others have begun that conversation so it's not something that we want to recreate, but it's something that we want to figure out how we can help.
So PWDC does realize there needs to be a direct link between workforce development and economic development, particularly 18 2/27/03 - COMMERCE - RES. 020238, 030038 if we are spending hundreds of millions or billions of dollars --
Absolutely. I mean, the biggest we invest in is customized training for employers.
And besides sitting down members of the training providers, including DAP and others that you're already contracting with, are you prepared to do a formal assessment of training needs and whether there actually is a training gap with regard to minorities, women, ex-offenders?
Councilman Ortiz in his opening remarks spoke about being unhappy about the fact that I think he said in 1985 he was working on this and now it's 2003 and we're still working on it. Well, I have to run back a further. In my first term in City Council which began 1968 and ran through 1971, it was something called the 19 2/27/03 - COMMERCE - RES. 020238, 030038 Philadelphia Plan that the federal government set out for the construction industry and for the unions. It was called a Philadelphia Plan because it was aimed at permitting minorities, including those of color and also gender, women, to get into the building trades. There were two Councilmembers who participated in that discussion. One was myself, the other one was Councilman Longstreth. Councilman Longstreth urged that nothing be done; and, of course, urged as I have over the years that workers be hired, that minorities get into the union, democratize the union movement and give real validity of the American dream of a country being a place of opportunity for everybody. Well, nothing much happened. I think Longstreth won that battle because, as I see it, there's been almost no progress made since that time or so a little progress that it's not worth talking about 35 years later. It seems to me that this is the time that's urgent now. I think we've got to find the road to move, and it would be nice to talk with people who are interested in achieving a goal. But I think that what we have here is that the people 20 2/27/03 - COMMERCE - RES. 020238, 030038 who are principal partners might not be anymore interested in 2003 than they were in 1971 to achieve the goal that we think is important, and that's that everybody be treated equally and fairly and that there really be equal opportunity for everyone. And I think that until the labor movement can show that it's interested, I think they're going to need a lot of help for government and I think we're prepared to find the road to do it. So I commend you. I understand from what you said, your organization works directly not to get contracts for entrepreneurs, but to deal with people in the community who want to work as workers; am I right on that?
Well, I commend you for doing it. And I think we ought to set sights high enough to make the job worthwhile and then we've got to be ready to use every bit of political skill, every bit of political capital to bring that about. Because what we find is that the building trades, you know, we keep getting reports that when their construction sites, including those that are financed by the City of Philadelphia, when you look 21 2/27/03 - COMMERCE - RES. 020238, 030038 around you often see many more out of state car licenses than you see anything else. And when you look around the faces of workers, they tend to all or overwhelmingly to be Caucasian. There are many anecdotal stories about how difficult it is to get into the union and that if you finally do break away to get into a particular union that the jobs you're assigned are not the nicest jobs, and it has a completely discouraging effect. So I commend you and I hope that out of these hearings develops a determination for everybody to see to it that at least as far as Philadelphia financed contracts that the City of Philadelphia is involved in, that the democracy really prevails both with respect to union organization. I believe strongly we need unions, but we need democratic unions. We need unions that recognize the dignity of every worker, not just some workers. And that's got to be without respect to ethnicity, color, or gender. Are you committed -- I gather you are committed to that.
Is there any way you've ever been able to determine the membership of particular unions? For example, take the carpenters union that's been referred to -- the same can apply to any number of unions, cement masons, electricians union, the full brunt of the building trade. Is there any way of getting specific information as to membership?
That would be our goal, based on Councilman Goode's question. I think we need to do a full analysis, and with the partnerships that we have, we hope that we can bring that information back to you.
And you need strong government support to get that information.
Thank you, Councilman. Let the Chair note that Councilman Clarke has joined us at the hearing today as well as 23 2/27/03 - COMMERCE - RES. 020238, 030038 Councilwoman Tasco. The Chair recognizes Councilwoman Tasco.
Thank you. Mr. Clancy, when was the DAP program started?
And what generated the implementation of this program?
There was a dire need to begin to transition minorities and women into the building and construction trades.
What role did they play in the origination of this program, the unions?
There is a board that DAP has, and the union -- I know Pat Gillespie and others sit on that Board. And part of it was designing the curriculum that the students would learn to get in to take the test, and then the second part of it is where people need to get the sponsorship. And I think that's where we begin to see the challenges. Individuals are passing the apprentice test, but they're still not being able to access the union jobs. 24 2/27/03 - COMMERCE - RES. 020238, 030038
Yes, because I'm looking out of your testimony and I see that out of 418 people that were enrolled in your program, $2 million expenditure, you had 307 employed but only 90 of them were accepted into the union. And I think my comment is that that is the bottom line to all of this. And as Councilman Cohen gives his experience, from 1968 I was at the Urban Coalition in 1970-71 until 1977 and was Task Force Coordinator for the coalition around the whole issue of manpower in dealing with this. It's, what, 30 years later, and we are still no further along than we were back then. Same discussion. I could write the script. And until there's a serious commitment on the part of these unions to allow the members in there, we're going to continue this with the training people, building their hopes, and then out of 307 people 90 people are in the union. The others may be employed but it's temporary employment because if they don't have the union card they can't get in. And so there has to be a serious, serious commitment on behalf of labor to be more inclusive and open of their membership to a diverse community. I appreciate all the people who are 25 2/27/03 - COMMERCE - RES. 020238, 030038 working very hard to try to make this happen, but I think today we need to have the people here who ultimately determine whether or not our employees get on these jobs should be here testifying today, because it's a very frustrating effort. It's been going on, and I don't know at what point it ends. Until drastic steps are taken to possibly deal with it. I don't know.
But I look at your Congreso de Latinos where they have all those 90 people come out of Congreso. Could you tell me how that program can have 90 employees into the union and -- and I'm very familiar with TOP/WIN. I think it's a wonderful program for women to get them into the trades program. And I don't know too much about Connections Training, but I'm sure it's probably a good program too. But why they have zero participation because TOP/WIN excludes.
No, excluded from 2/27/03 - COMMERCE - RES. 020238, 030038 membership in the union. I'm looking at zero participation there.
I think what has happened, when I spoke to the people at TOP/WIN, and I've been at the Philadelphia Workforce Development Corporation years so I also know TOP/WIN for a 8 variety of years. And I think they've changed their 9 focus, knowing it was easier to get these single 10 mothers into other union related positions at SEPTA, at PECO, and some major employers in the City, than have to go through, you know, all the weight that it takes to get into a building trade union. So I think a lot of focus came early on when they realized they were having difficulties with that.
So if an employee finishes or completes an apprenticeship program, he or she has to have a sponsor in order to get in?
So they have to establish a relationship to get in? 27 2/27/03 - COMMERCE - RES. 020238, 030038
Correct. They need a union sponsor to get into the union, and that's where the challenges start.
I just wanted to add, with respect to the creation of DAP, was that program assisted in terms of resources as a result of some state initiative on funding for stadiums?
It was actually right before that. I think it was in preparation for the larger programs that were coming down. That is correct, that the State Department of Labor and Industry put aside some money to help this organization get started in hopes that by the time the stadium projects got up and running there would be a pool of applicants that could transition into 28 2/27/03 - COMMERCE - RES. 020238, 030038 positions.
I just remembered during the debate as a part of an agreement for some legislative support for the State's portion of the stadium funding that there had to be some commitment for funding for an organization that would train and hopefully implement an installation program to get people in the trades.
Can I ask you in terms of Workforce Development's relations to all of the trades, to what degree is information available to you about the testing of the various apprenticeship programs? Because I find that too often, particularly members in my community, found out about it after the fact or at the last minute I just happen to be privy. Recently, the plumbers union actually sent a notice to my office actually prior to the application process for the apprenticeship test. Do you have an ongoing relationship with all of the trades where you can get that information out to people who participate in PWDC?
Unfortunately, it's not as 29 2/27/03 - COMMERCE - RES. 020238, 030038 coordinated as we'd like. We work very closely with the AFL-CIO. They help us to sort of troubleshoot and get information. But we find the same challenges that your office finds, that some of the information is timely, and other times it's not. Sometimes we would expect a certain flow of information and then other times it doesn't arrive. So what we're trying to do now is figure out, you know, when are the tests announced, how can we get it out to our broader constituents in the neighborhoods so that everybody knows.
Have you asked them and the information is not forthcoming? What arrangement do you have?
With the AFL-CIO, they're working with us on trying to get all the unions together to figure out how individuals through our career link centers and our one stop system can figure out how we can get people at least informed about when the tests are going to be. Now, the actual programs do a whole lot more specific outreach. I know Congreso is very active. They have a full-time staff person dedicated just to going around to all the unions to 30 2/27/03 - COMMERCE - RES. 020238, 030038 see when the tests are given. So Congreso is probably the partner I look at to give us the most information because they're able to --
I understand that. I'm asking does the Philadelphia Workforce Development have such a relationship with the various building trades, i.e., the business agents in terms of getting notification?
At a minimum, I would think that that information would be forthcoming if you just simply ask when you would anticipate your testing programs or application programs for the various apprenticeship programs throughout the year since you deal with individuals who are obviously seeking opportunities.
That is something, Councilman Clarke, we have to do a much better job at.
And I'm assuming that you will assign an individual to basically just reach out.
I just want to veer a little bit off the building and construction trades issue at point because I know you have a varied approach. And I want to thank you all for participating and helping me with a earlier jobs fair last year that was relatively successful. In terms of other initiatives as it relates to employment opportunity, what does your organization do? Do you contract with other agencies?
Our goal at the Philadelphia Workforce Development Corporation is really to make the link between the skill gap between the jobs that exist in the our area and the people that we're serving. So we serve mainly two distinct groups of individuals. We serve people who are coming off of TANF, who are transitioning off of welfare and trying to get back to work. We also serve adults who are transitioning for a variety of reasons, whether they're coming out of prison, whether just down on their luck. And then we also serve dislocated workers, people who are laid off from their job through no fault of their own. And with those three groups of individuals, we try to do 32 2/27/03 - COMMERCE - RES. 020238, 030038 a full assessment of their skill level. Then we have staff that goes out and meets with organizations or employers in particular in which we then try to develop customized training for where the jobs that exist. So we really want to make sure that our investment of public dollars really yields people jobs. We're not opposed to sending people to traditional training vendors and training organizations, but we want to make sure up front before we invest any public dollars that there are employers willing to take these individuals after they're trained, because we don't want to see the precious dollars that we have get utilized on programs that really won't yield people jobs. So recently we've been able to go into contracts with Independence Blue Cross, the Aramark Corporation, School District of Philadelphia, Cottman Transmission. So we've been able to coordinate our efforts to make sure that, you know, Workforce dollars are tied into the economy and it's not just sending people to school and hope that they go to work. Our customers need to go to work. I mean, these are people with families, with children. 33 2/27/03 - COMMERCE - RES. 020238, 030038 They need to go back to work.
Thank you, Councilman. Councilman Clarke and all the Members of the Committee, and ladies and gentlemen, I just wanted to make one announcement and recognize Governor Mark Schweiker, President and CEO of the Greater Philadelphia Chamber of Commerce has joined us here this afternoon. I think it's significant that he would attend this hearing. The Governor has been in the building actually throughout the course of the day meeting with individual Councilmembers as a part of a meet and greet. This stop is not any of the Councilmembers offices, and so the Governor has taken the time and gone out of his way to come by this hearing because of his concern about the issues that are being raised here today, and I think it's rather significant that he has come to be with us this afternoon. So, Governor, I wanted to say thank you. GOVERNOR SCHWEIKER: Thank you, Mr. Chairman. And with all due respect to your respondent and commentator, it is a great interest 34 2/27/03 - COMMERCE - RES. 020238, 030038 of the Greater Philadelphia Chamber of Commerce that it go about the business of economic development. We certainly realize that workforce development specifically is an important front and are very supportive of an increase of this nature. As someone who has been involved in this for a long time, not just as a state office holder, but as a local official like the good Members of the Council here today, finding real world training for real world jobs and putting folks on the path, that kind of outcome is an important aspiration. And having said that, we will continue to pursue that as a business advocacy organization. And I say thank you for the opportunity just to offer that remark.
Thank you very much, Governor Schweiker. Councilman Cohen.
The building trades unions contribute a great deal to the welfare of the country. They happen to be the only unions I know of whose wage levels are guaranteed by government bodies. That seems strange most people don't know that, because the building trades unions seem to create the impression that they're independent and 35 2/27/03 - COMMERCE - RES. 020238, 030038 they often are critical of efforts made by other labor organizations seeking governmental help. But there is no other unions that I know of that have legislation at the federal, state, and local level which guarantees what they call Prevailing Wage Rates. Whenever federal money is involved in the construction of a project, the federal government guarantees the wage level. And the wage level is set by the region and if the union has a majority of the work in any particular region then the union wage becomes a prevailing wage that is guaranteed to the workers. I think workers in every union ought to have some form of guarantee like that; it would help them a great deal. But the thought strikes me that if the wage levels are guaranteed by federal, state, and local government, has there been any thought given to the question as to getting the governments to require that as a condition of the prevailing wage rate each labor organization seeking to benefit by that legislation must meet a certain level of openness in its membership? Has there ever been any thought given to that? For example in the City of Philadelphia, has there ever been any thought given to our 36 2/27/03 - COMMERCE - RES. 020238, 030038 guaranteeing that if City money is involved that we will guarantee their prevailing wage rates provided their membership be democratic and open to all segments of the worker population, including females, including people of color, including every democratic consideration involved? Have you run into that question at all?
We have run into that question. The thing that we try to do with our public investments in the City is to almost guarantee that any project that we invest in starts individuals between 9 and $10 an hour. And keep in mind, we try to do some studies on self-sufficiency in the City of Philadelphia and we want to make sure that any public investment really begins to move individuals towards a higher wage. The other thing that we want to make sure of when we invest is that the training is something that has a career ladder attached to it. We don't want to invest any dollars into any training that's not going to yield somebody an opportunity to see that, "You're at level A now, but if you continue to move up the educational ladder or experience ladder, you can make more money." 37 2/27/03 - COMMERCE - RES. 020238, 030038
I'm sure individual leaders in the union are fine people and very much dedicated, but sometimes people need governmental help like to help enforce the democratic principles. And I'm wondering whether that might not be thought of as a possible useful tool which would help ensure cooperation on everybody's part.
I actually have a couple questions, but I'm not going to torture my colleagues with my normal questioning. What I'd like to do is give you my questions and ask if you would provide the information later.
This is based on some questions that you actually responded to Councilman Goode regarding -- you said you had placed 4,000 of your approximately 10,000 or so people being trained? 38 2/27/03 - COMMERCE - RES. 020238, 030038
What I can do is actually be a little more specific. We have 10,000 people that walk in our doors interested in training. About 75 percent of them who go into training actually get placed. So it's not 45 percent that get placed. Those that actually go into training programs, about 75 to 80 percent will get trained. And I can break that out for you. I can break out those numbers for you. There's a certain percentage who walk in our doors looking for services, get some basic services. And then there are others that actually get a chance to go into training.
I'd also be interested in if you're tracking your program participants, if you could give us any information regarding how long they stay in the jobs they're placed in or what's their average length of the employment, the average salary of the jobs. You indicated that the cost of training was about 5,000, and I'd like to see what the relationship is between the cost of training and the 39 2/27/03 - COMMERCE - RES. 020238, 030038 actual placement in positions and what the salaries are.
And lastly, your chart broke down number enrolled, number employed, number union employment. I'd be interested in -- you have a total of 418 enrolled, 307 employed, and 90 in union employment. Is the 90 figure within the 307 or is that in addition?
Okay. So then I'd be interested to know of the 217 what kind of jobs are those people in.
The next panel is Mr. Samuel Staten, Sr., Business Manager Laborers Local 332 and representatives from the Diversity Apprenticeship Program. While Mr. Staten is coming to the table, let me also recognize Representative Ron Waters who is a State Representative and a member of the 40 2/27/03 - COMMERCE - RES. 020238, 030038 Pennsylvania Legislative Black Caucus who is joining us here day. And is our courtesy, whenever members of the State Legislature join us, they are naturally participants in all of our proceedings. Please identify yourselves for the record.
Gentlemen, please begin your testimony. We have copies of your testimony, so on the one hand I want to tell you you should not feel compelled to have to read it all. On the other hand, I'm certainly not trying to short circuit or preempt any of your testimony, so it will be at your discretion.
First of all, I would like to say good afternoon to the distinguished members of City Council. , Business Manager of Laborers' Local 322 and the Chairman of the Board of Directors, Philadelphia Revitalization and Education Program, also known as PREP. PREP began in 1996 as a result of my brother, Tony Lewis, Managing Director of the 41 2/27/03 - COMMERCE - RES. 020238, 030038 Housing Association of Delaware Valley, approaching me the year before about the inclusion of tenants as laborers at their development. I indicated to him that I would speak with my International Union about the possibility of creating a special dispensation. But I also indicated that the tenants should be looking at all the trades, not just the laborers. After a number of meetings with the tenants, the Laborers' International Union of North America, the Housing Association, and Laborers' Local 332 developed PREP. PREP provided training and employment to over 100 public housing tenants, with about 75 entering the laborers' union. When Philadelphia decided to build new stadiums in 1998 and requested State support for the project, the Pennsylvania Black Legislative Caucus announced opposition to the stadiums, citing that African Americans had been systematically excluded from the trades and unable to get work on City construction projects. I received a call from the then Pennsylvania Governor Ridge asking me if I could try and bring the minority community and the building trades unions together to discuss the new stadiums 42 2/27/03 - COMMERCE - RES. 020238, 030038 and their impact on Philadelphia. I agreed to try. For me, it was like a double-edged challenge. On the one hand, I am an African American and I could feel the pain of my community as they watched billions of dollars in construction work being done in their backyard and many wanted to work, but could not get jobs. On the other hand, I'm a member of the building trades, and I knew that all of the charges being made did not apply to all of the trades. I had worked with many of these guys for decades and I knew that you couldn't paint them all with the same brush. I immediately reached out to Pat Gillespie of the Philadelphia Building Trades, Representative Louise Bishop of the Pennsylvania House, and State Senator Anthony Williams. They all agreed to join me in an effort to bring the two sides together. In January of 1999, I convened the first meeting. Joining us was Congressman Bob Brady, Pennsylvania Labor Secretary Johnny Butler, and Mayor Rendell. About 12 state elected officials, over 20 building trades representatives, and some community representatives also attended that 43 2/27/03 - COMMERCE - RES. 020238, 030038 meeting. Halfway through the meeting, I wondered to myself, was this the right thing to do. The gloves came off and charges and counter-charges were traded. The elected officials accused the trades of systematically excluding minorities. The trades countered that they found many minorities applying to the trades to be unprepared for the entrance into their trade. However, it was Secretary Butler broke the impasse. " Mayor Rendell pledged to match the State's offer. The group agreed to give it some thought and to return for another meeting. At that second meeting a task force was set up to develop a program that would respond to the concerns of both sides. My brother Tony was asked to Chair the group and to convene a focus group of elected officials, building trade unions, and community leaders to come up with a plan. Once the task force was set up, a series of meetings were held. There was initially still some mistrust between the two. But as people stopped concentrating on differences and directed 44 2/27/03 - COMMERCE - RES. 020238, 030038 their attention to getting this money the Secretary had offered, they began to let down their guard. More and more you could see the team begin to develop.
The trades apprentice coordinators provided guidance to the requirements of the trades and the specifics of where applicants often fell short on their efforts to enter the unions. Cheney University, Berean Institute, two long-term African American institutions were asked to join the team to help to design the educational plan. Meetings were held with officials at the Philadelphia Board of Education to talk about the shortfalls and the needs to provide the requisite skills early on. Monthly meetings of the larger group was held, where the progress of the task force was reported and input was possible. In January of 2000, the program was funded by Secretary Butler, and the first applicant entered that April. Recently, the numbers indicate that the trades have slacked off in their participation in the program. We have communicated our concerns to them. Pat Gillespie has been working to increase this participation. DAP is a 45 2/27/03 - COMMERCE - RES. 020238, 030038 program created by the building trades, and the building trades must step up to the plate. It would be a shame, with all due respect, if the government would have to step in to make the trades do what is right. DAP is the vehicle. It has demonstrated that it is capable to providing the training necessary to get minorities prepared for entrance to the trades. It must have the support of the trades to succeed. It must have the support of the City to succeed. I stated earlier that Mayor Rendell pledged to match the State's contribution. Since the inception to this day, there has not been one dime from the City to this program. We can concentrate on the problem or we can concentrate on the solution. I think we have the solution. DAP is the solution. I thank the honorable Council for this opportunity to speak before you today.
Good afternoon. My name is William Peebles. I'm the Director of the Diversity Apprenticeship Program, known to most of you as DAP. 46 2/27/03 - COMMERCE - RES. 020238, 030038 DAP is a union-based program created to move qualified minorities into apprenticeships of the construction building trades. It is a public/private venture founded by members of the Pennsylvania Black Legislative Caucus, the Philadelphia Building Trades Council, and Philadelphia Revitalization and Educational Program, PREP. It's training was designed and developed by members of the trades in consultation with the black elected officials of Philadelphia, PREP, the Philadelphia Office of AFL-CIO, Cheney University Berean Institute and other community activists. DAP Advisory Board meets every quarter to discuss progress of the program, new opportunities for DAP participants, and placement requests from trades. The Advisory Board co-chaired by four respected leaders of both the community and the trades advises the program and takes the information back to the communities related to apprenticeships for minorities. These co-chairs are Mr. Samuel Staten, Sr., Business Manager of Laborers' Local 332; Mr. Patrick Gillespie, Business Manager for the Philadelphia Building Trades Council, State Representative Louise Williams Bishop 47 2/27/03 - COMMERCE - RES. 020238, 030038 and State Senator Anthony H. Williams.
Why don't I try to make this quick suggestion. You have extensive testimony. I think some of us have been reading through it.
If you could give us a general overview because I'm sure some members are going to have questions and we have a significantly long day here today. The testimony is very good. I mean no disrespect. And the testimony will be included in the record as if had been read in its entirety. I'll assure you that.
To make it short, I'll try and make some key points in the testimony. Number 1, DAP is an economic development program, not a jobs training programs. That is, it's designed to make sure that some of the dollars go back into the community and not just getting people jobs. In the testimony, I outline the specific training process that we have. And you're right, it 48 2/27/03 - COMMERCE - RES. 020238, 030038 is lengthy. However, it's very clear that we take a very holistic and good approach to make sure that the people that we put through our program are qualified to make application to the apprenticeships. One of the things I'd like to highlight is the fact that Philadelphia School System -- I'll take this directly from the testimony. The Philadelphia School System has not done a good job in preparing our students for the trades. And you'll find this on . For example, we had 2,819 applicants to date. Of these, we tested 1,414, and of these 691 passed the test to enter the program where our standards are rather simple, asking people to be at the ninth grade level for reading and math. This represents percent of the 18 persons who apply and pass the academic portion of 19 our entrance requirements. 20 The City's educational system does not 21 provide students with the mathematic and reading 22 skills necessary to become members of those more 23 complicated trades, such as the boilermaker, 24 electrical steam fitter, et cetera. 25 What we need to understand is that the 49 2/27/03 - COMMERCE - RES. 020238, 030038 Philadelphia School System needs to do a better job in preparing our students. But in the mean time, we need to make sure that the people who are not in school have an opportunity to get into the trades. Until the year 2000, all the trades used the Genoa (ph) Aptitude Test Battery, but it was called the was called the GAT-B, to measure performance. That was one test designed for the trades administered by the State to allow people to enter the apprenticeships from an academic perspective. Today, every trade can have its own test. That makes it a little hard for minorities because we know we have to train people on different tests in order to go into the trade that they select and they're able to go into. We understand that 17 percent of the apprentices of the construction unions for the period beginning October 2001 through September 2002 were minorities. Well, if you reverse that, that means 83 percent of the people who went into the apprenticeships were not minorities. When we look at the dollars that are being spent in the Philadelphia area, particularly Philadelphia, and those dollars that are being 50 2/27/03 - COMMERCE - RES. 020238, 030038 leveraged either by taxes and/or by bonds, if you will, we're not getting a good return on investment for our minority community which the City is made up of more than 50 percent.
I'm sorry. I need to make sure I'm understanding one thing. I don't mean to interrupt you. You said percent of the 9 people who went into the apprenticeship program. 10 And you only get to go into the apprenticeship 11 program after you pass the test. 12
So let me back up to 14 before the test. What was the pool of people who 15 either indicated an interest or who actually took 16 the test? And how many people actually passed it? 17 And maybe you had that testimony earlier.
You're talking about the universe, or just DAP? Because DAP --
DAP, if I understand your 51 2/27/03 - COMMERCE - RES. 020238, 030038 question, basically we had 75 percent of the people who came into our program.
Passed our initial test to go into our pre-apprenticeship program was 691, and that's just to get into our program. Then from that number --
Right. And what I'm 15 saying is from that number, usually 50 percent of 16 those people get to make applications and complete 17 our program. This is just to get into our program. 18
And at journeyman we have a big drop off of minorities; is that correct? That's what all of the records indicate. That's the records that we have.
It appears that you're not starting off with a particularly large pool of apprentices.
So we begin with 10 percent, and of that 17 percent -- that's one of the 11 things I would like to get later on. Of that 17 12 percent, the percentage that go on to be journeyman 13 is probably smaller -- maybe half of that, right? 14
So of the 17 percent, 17 maybe half or less that half would go on to become journeyman; that's what our records indicate.
Councilman, I got these figures from the Bureau of Apprenticeship Training, and they only look at the five-county area, so they couldn't break it down to Philadelphia. The figure was 19 percent of the people who got into apprenticeships. The actual figure was 19 percent of the people who got into apprenticeships were 53 2/27/03 - COMMERCE - RES. 020238, 030038 minorities. At the end of the first year during that period, percent were minorities. So you 4 lost percent.
I don't know, Mr. 9 Staten, if you read the report that we put out, "The 10 Illusion of Inclusion," in which in Philadelphia we 11 looked at Philadelphia apprenticeships. In 12 Philadelphia, the apprenticeships were not at all 17 13 percent in that report. So if this covers the five, 14 if you could, Sam, make available to us a figure of 15 what it is in Philadelphia. 16
We can try to obtain those 17 numbers. But given just the racial breakdown and the numbers of where they come from at this point, the majority then would appear to be in Philadelphia, the minorities.
Thank you, Mr. Chairman. Good afternoon to Mr. Staten, Mr. Lewis, 54 2/27/03 - COMMERCE - RES. 020238, 030038 and Mr. Peebles, and thank you for your testimony. I'll be very brief. I have one question. The question is very simply, based upon experience and track record, what do you believe you can accomplish with $2 million promised to you by then Mayor Ed Rendell?
What do you believe you can accomplish with the $2 million that was promised to you by then Mayor Ed Rendell?
Let me just say that we don't want to leave the illusion -- and I think the Council is obviously on the right track in terms of the fact that this has got to be somehow accomplished through the cooperation of the trades as well as government. What we can do and what we've indicated we had initially planned to do was to get 200 people a year into the building trades. But, again, that to a great degree depends on the willingness and the cooperation of the building trades.
Again, I thank you for your testimony. You should know for the record 55 2/27/03 - COMMERCE - RES. 020238, 030038 that in previous testimony from PWDC, Mr. Clancy in particular, they have agreed to work with DAP on your proposal to consider needs assessment of training opportunities and to consider strategies for working with the trades. I believe they are prepared to talk to you about that previous commitment, about your standing proposal, and about future cooperation in terms of local funding. Thank you again for your testimony. That is Mr. Clancy who you should probably have a conversation with before you leave.
Let me say just say, Councilman, that last month we had a meeting with the building trades that indicate -- when DAP began two years ago, there was a tremendous amount of support and I guess everybody was involved with the euphoria of creating the program. We got a great deal of cooperation from the building trades. The first class we had 71 graduates and 38 of them were in the trades by the time graduation arrived. We noticed a tremendous drop in that we had approximately 48 percent of the first class go in, we only had 10 percent by graduation of the class. We met with the building trade just last 56 2/27/03 - COMMERCE - RES. 020238, 030038 month. They've indicated that they will give special attention to this. So we're taking them at their word that they're going to try to improve this.
You should know for the record that PWDC has said on the record they're willing to deal with your funding and so we can move this process forward. But as part of also a broader group of training providers but we have addressed that and we will move forward. We actually will continue this resolution for future hearings as we work through that process. We're very glad you came here today to talk about the DAP Program. And we're also thankful that PWDC has committed to working with you on your funding needs.
Gentlemen, thank you. Can I have a panel come up? Tara Walton, Jahad Ali, and Sacaree Rhodes are the next to testify. While they're approaching the witness table, I have one other question for the gentleman 57 2/27/03 - COMMERCE - RES. 020238, 030038 who testified earlier, Mr. Clancy. You don't need to come back to the table. On your chart, you're showing union employment out of the Congreso de Latinos Unido program of 90 people, no other union employment for the other two problems. What I'd like to know is for the 90 people, what unions are they employed in. Please identify yourself for the record and proceed with your testimony.
Good afternoon. My name is Sacaree Rhodes. I belong to the African Daughters of Fine Lineage and I'm a community activist. Before I go into my testimony, I would like to thank Councilman Ortiz for being a catalyst for change and for truth, demanding justice for Latinos, black women, black men in this racist City of Philadelphia who has denied black people, Latino people, jobs in a City where black people are paying taxes and the contracts and the jobs are going to others than persons that look like myself. Mr. Nutter, as I sit here in these chambers, City Hall, the people's house, there are painters in this building, painter contractors that has not hired, to my knowledge, any black painters. 58 2/27/03 - COMMERCE - RES. 020238, 030038 I looked for them, unless they're hiding. You know, it's a disgrace that black men and Latino men and black women and Latino women are not allowed to paint in the people's house. Also, for the last six or seven months, I have gone on a crusade to demand justice and fight for jobs. I have gone out to work sites. I hear the names on a regular basis, MBEC, GPUAC, the DAP Program, Workforce for Development. Personally, I think that the DAP Program has no teeth. MBEC, I think all of them should go to jail. And GPUAC, they should be in handcuffs too. And Workforce for Development, I'm so tired of people coming forth and saying that we're training welfare to work folks and then all you do is turn around and giving them their welfare check back and you're not giving them a credible profession. First of all, I don't work for anybody. Nobody pays me. I am only here on behalf of poor black and Latino people. So there's so much dishonesty in the City of Philadelphia when it comes to poor persons. A lot of persons are in the union, out of the union. They say that in order to get into some of these training programs you have to 59 2/27/03 - COMMERCE - RES. 020238, 030038 have this and that. But the white boys that come in North Central Philadelphia it Darrell Clarke's district, which I'm appalled and upset about when I go and look at the Richard Allen Project development and you see a black one day, a black -- it's almost like they place them. Ya'll must know when we're coming. I mean, they're picking up trash. I don't see them doing nothing that's really serious of any grave nature. Black folks in North Philly are standing outside on the corners while white folks are in these fences with these expensive trucks. And black folks are wondering, "Well, why am I not working?" I mean, grown men 50 years old have not had a chance to participate or have a part of this purse called Philadelphia. Right here in Center City, there are Public Works projects where the City of Philadelphia certainly has money in. There are no black women, no Latino women. One or two black folks. SEPTA is the most racist disgraceful organization right here. The City of Philadelphia does give SEPTA money, but black folks are not working. They are racially discriminatory in terms of the police, in terms of women, in terms of the 60 2/27/03 - COMMERCE - RES. 020238, 030038 lawyers. They do nothing. But we have a black Mayor, we have black Councilpeople, we have all of you here, and we deserve to work. I go to West Philadelphia, we have PHA projects. Black folks are not working on these sites. Here we go again, white contractors are inside these fences with these big red trucks and black folks are sitting outside. And they say you are not trained. But I've talked to some of those white boys; they are in the union, they're on drugs, they have all kinds of issues. But the contractors hire them. But then we have to come under all of these standards in order to hire black folks in our own neighborhood. There is no reason that a black person or a Latino person should come out of their door and see these multiple contracts and these jobs in their communities and nobody hires us.
Ms. Rhodes, I don't mean to interrupt you and I know you're on a serious roll, but I need to do one thing and then you can go back to your testimony. I need to recognize one of my colleagues, Councilwoman Reynolds-Brown, and I know that Councilwoman Miller was in the room and will be 61 2/27/03 - COMMERCE - RES. 020238, 030038 return. Councilwoman Reynolds-Brown.
Thank you, Mr. Chairman. Good afternoon. I want to salute Sacaree Rhodes for your testimony and go on the record saying that I and a number of members of this legislative body are completely in support of this legislation put forward by our colleague Angel Ortiz. We join with you in the ongoing meetings and discussions that have been started by your organization and members of -- in fact, all elected officials have been invited to those meetings on Saturday morning. So we're prepared to work with you and for you to make a difference and actually make a change in the kinds of issues that this legislation reflects. I am now supposed to be at another meeting that I Chair, so I wanted to go on the record and show my support and step out and then step back in once I have taken care of my duties in the Caucus Room. Thank you, Mr. Chairman.
Thank you, 62 2/27/03 - COMMERCE - RES. 020238, 030038 Councilwoman. Ms. Rhodes, please continue.
Mr. Nutter, young African American males and Latino males a lot of times are on the corner selling drugs or either looking for work. They're working low wage jobs, sometimes two and three to make ends meet. " And then the grandmothers and the mothers who are trying to find work for their sons and grandsons and cannot find work because the contractors say that we're shut out. What I hear that there for sometime has been a document that white contractors, they've orchestrated which tell you how to keep Latino and blacks out of -- you know, keep them from getting contracts. That's unconscionable. When I hear that MBEC and some of these other groups have padded these numbers about who's at the stadium and who has these jobs. And they had 63 2/27/03 - COMMERCE - RES. 020238, 030038 a report that was done some years ago and they've been holding it and telling lies to the community. When I hear people tell lies about the stadium -- I've been down to that stadium. I know who's working. There is not 80 percent of those jobs for black and Latino people. It's a lie. And the Mayor said that. " But until the second floor and everybody in this City that's supposed to be representing goods and services for taxpayers -- and black people and Latino people pay taxes -- that we should have a piece of this purse. I'm just so tired of these lies that they tell us and they send us away when our young people want to work. And then there are even persons with union cards who are not working. They're standing on the walls. I was told that Mr. Sam Staten said that a lot of times when he sends his persons out to these apprenticeship programs that a lot of times they are treated with disdain and such racism that they end up on his door step, they come back. They've been isolated. They've been treated like a dog because of their color. Somebody needs to do something about that. Because I can't understand it 64 2/27/03 - COMMERCE - RES. 020238, 030038 that if Gillespie and Coryell (ph) and what's the other one's name, Johnny Dock (ph), you know, they enjoy the money and the taxes of these people here in the City of Philadelphia, black folks. So they need to be made to hire black people and Latinos. Who are they? And I pledge to this Council, and it's getting warm, that I swear to you that we will shut down and raise more hell in this town. And so if the white union heads will not hire us, they will not enjoy the pleasure of that money. We will go everywhere we have to night and day. We will go to jail if necessary. We will not let these white folks get this money and not hire black folks. We will not let black folks work with these union people and cut deals behind our back and knowing that they have not served their constituents. We are tired of it. And we are not fools. And I can go out and count heads. So a lot of this stuff on paper is a bunch of lies. And the lies got to stop. And as I say, it's going to get warm. It's not going to snow always. We're going to be everywhere. So we're serving notice on everybody that can hear my voice, and these contractors, we're coming after 65 2/27/03 - COMMERCE - RES. 020238, 030038 you. You're not going to continue the way you've done. And we're going to expose you if we have to sue you. We're going to go after SEPTA. SEPTA has lied. They held all those meetings in those churches telling those people they had that work. Now we found out through Fay Moore, she has said there may not be under a hundred jobs. There may not be contracts at all. The lies that SEPTA -- MBEC. I'm serious, you need to do something about MBEC. It needs to be scrapped and then you need to look at criminal charges, conspiracy charges. Because how many black people lost their homes and had a chance to have a fruitful life, but MBEC told lies. The stadium, I was at the stadium the other day. There are black people working there that are saying that the white contractors are calling them niggers and mistreating them.
And because a lot of times, you know, like black women have always had to take stuff to feed their family. There's a lot of black men that take things too. But they shouldn't have to keep taking in 2003. So I plead with you to make sure that 66 2/27/03 - COMMERCE - RES. 020238, 030038 this process is honest and the truth comes out, because thus far, we are living lies. And lies have been told from the second floor to where we are. And these organizations who are supposed to be about the business of monitoring jobs, who's working, who's getting what contracts, they're plagued in deceit and I really believe these person should be put in jail. )
Thank you for your testimony. There may be a couple questions. Representative Waters. REPRESENTATIVE WATERS: Thank you, Mr. Chair. Ms. Sacaree Rhodes. As you know, I totally support you. I've been out there in the cold with you standing on the corners and doing what I believe I was elected to do, that's to represent the integrity of the community that voted for me. I agree with your testimony. We have a number in our community in the City of Philadelphia, the minority population represents a certain number, then if we have contractors which are funded with public dollars and people who are coming to work or receive contracts 67 2/27/03 - COMMERCE - RES. 020238, 030038 are asking for an opportunity to go for work, they're not asking for an opportunity to break the law, they're asking for an opportunity to earn an honest dollar so they can do what other families do; feed their family, pay their bills on time, and not have to scrap and work two or three jobs in order to try to make ends meet. So I agree with you that we should do more. More has to be done to make sure that if we represent 50 percent of the population of the African Americans and Latinos represent 50 percent of the population, then we should see that kind of reflection when we go to these work sites. We should see people there who are -- And when it come to SEPTA in particular who happens to run right down my legislative district, I agree, that is a disgrace what we see right there. For it to come down in an area where the people are asked to stand on the sideline and watch work taking place in their neighborhoods and to deal with all the inconveniences that come with that. Businesses are folding up there on 60th Street, Market Street. The community has been totally disrespected up there. So I agree with Ms. Rhodes with what she 68 2/27/03 - COMMERCE - RES. 020238, 030038 has said right here day. You're only asking for some representation with your taxation. That's all you're asking for. If they are contributing toward it, they should benefit from it, too. So I just wanted the record to say that I had been there with you on those sites to do what we had to do to make sure that we continue to fight to get justice in the communities that we all represent. So I just want to let the record show that I support you in that effort, too.
I just want to identify this young man who will say something in a few minutes. He is a contractor. This young contractor has to go five minutes out of Washington, D.C. to find work to build a church. Now, that is sinful. With all of this work in this City, he has to go to Washington, D.C. But when we look in the neighborhood, there are trucks that say Delaware, New York, Baltimore. I understand that there's a contractor in here from Vermont. But he lives in the City of Philadelphia. His children attend public schools. 69 2/27/03 - COMMERCE - RES. 020238, 030038 His wife works here. They pay taxes. That's not right. This is what I am talking about. See, he's shut out. But then somebody somewhere in the people's house is responsible for this because somebody's letting these contractors -- and I say this -- these white boys get away. Somebody has told them, "Maybe you gotta hire black folk, you don't hire Latino." I wish I could uncover who that person is. But I believe such a thing has been said. But we're going work very hard and find out because we're going to expose that person to the overall community. And I thank you very much.
Thank you very much. Please identify yourself for the record.
Anthony Fullard, I am the Chairman of the Contractor's Roundtable and under the African American Chamber of Commerce. Since we had a greater Philadelphia Chamber of Commerce announced, the African American Commerce is also here and in full support of Councilman Ortiz' hearings that he has constructed here today as well. And we are in full support of Ms. Rhodes. We've 70 2/27/03 - COMMERCE - RES. 020238, 030038 also been out in the forefront, out on the streets with State Representative Waters and as well as State Senator Anthony Williams as well protesting these sites and are very, very concerned about this climate that has taken place in our City. The African American Chamber of Commerce is now trying to put together many programs. We've been working very closely with Mjenzi Traylor who is sitting right here on my right as well on trying to finalize some programs for the NTI Program and see how we can get more African Americans involved into this demolition that is going to take place in our own communities that we live in. Hopefully, that can move as quickly as possible so that we can get this resolved and then move forward so that we can get some of these brothers out here working. But my main concern is that -- I want to bring up a current issue that has almost allowed me to lose sleep. And this is this very issue about all the meetings that we have, all of the different laws and the specs that we put in place in order to ensure that we have fair inclusions on these jobs and we set goals and we set percentages and we put things in place that once a prime contractor is 71 2/27/03 - COMMERCE - RES. 020238, 030038 identified that is going to the prime, whether he is a majority prime or if he's a minority prime and then there's certain paperwork that has to be filled out that will name your participation, the subs and all. Now, the Chamber is in a fight right now on an issue at the Philly stadium that all of these things have happened. Then we have a labor leader, Johnny Dock calls the prime and tells the prime that he cannot use that minority sub and that he will pick the sub that he's going to use. That's a problem. That's a huge problem. If someone thinks that they can do that in this City after all of the things that we put in place to ensure fairness, that's a problem. When the unions think that they can step in and tell someone who they have to use, then everything that we are doing here, Councilman Nutter, is being undermined.
I understand. I want to make sure that we have as clear a record as possible. First let me apologize. I know you identified yourself, but I didn't catch your name.
Anthony Fullard, F-U-L-L-A-R-D. 72 2/27/03 - COMMERCE - RES. 020238, 030038
My company is Merck Steel, but I am also the Chairman of the Contractors Roundtable.
It would certainly be helpful and I think it will lead to a clearer record if you share with us any additional information with regard to either which contractor was involved in this particular situation, what subcontractor was being proposed and, I guess, kind of generally how do you know this particular information? This is a public record, so I think we want to try to be as clear as possibly about all --
I understand that. I just want to be clear about all the facts and I generally like not to have a record that's somewhat filled with "he said, she said, the other person told me" and kind of third-hand information. So to the extent that you can be as detailed as possible, it would certainly be helpful.
Well, let me be clear. This is dealing with public information and on a 73 2/27/03 - COMMERCE - RES. 020238, 030038 public job that has public money funded in. This is something that just came about last couple of weeks. Factual, and also detailed. The African American Chamber Commerce was contacted for support and help in this matter. And we reached out and we contacted our contractor who is Precision Electric who is a minority subcontractor that has been down on the Phillies project since the conception of the start of that project. The Phillies and also Driscoll Hunt (ph) who is the construction manager are very pleased with this contractor. And when more electrical packages started to come out to bid, Precision Electric submitted their bid, marketed their company and they were chosen by the prime contractor who was Petrocelli (ph) to represent a certain percentage of the minority participation for this contract. Everything went in. Things was negotiated as far as the various companies, and then things was documented to submit for approval by MBEC, GPUAC, the Phillies and also Driscoll Hunt. Everybody was satisfied with what the team was and signed off that we would like to see this contract move forward. Before the actual, I would say, subcontract from 74 2/27/03 - COMMERCE - RES. 020238, 030038 Petrocelli to Precision was sent out, there was a call made to Petrocelli from Local 98 business manager or president -- I don't know his exact title who is Johnny Dockery (ph), but I'm sure that we all know in this room who Johnny Dockery is -- that they could not use Precision Electric.
Petrocelli who was the prime contractor for that awarded contract. And they must use --
As I'm trying to keep track of the story, did you say Precision was already working on the job for someone else?
Yes, yes. They already had smaller contracts doing other things on the project. And then I explained that as more contracts out, they marketed themselves and they went out for various other electrical packages, jobs that has gone out to bid for that project. And as I said, there was a call made to the prime, and this prime is in New York. They are based in New York. And they shared with the Phillies that they don't want to have any problems 75 2/27/03 - COMMERCE - RES. 020238, 030038 coming in to start this job with the unions. But the problem lies is when someone can go and disregard everything that has been put in place in order to do the right thing and that everything has been procured and when the submittals and everything has went forward per the specs and per how jobs are awarded and just disregard all of that that and I want you to use this minority firm over an awarded minority firm. And to this day it's not resolved. That's a huge problem. That sends a message that these union laborers -- and outside of 332 because I believe that when they start saying percentages, that's where we get our large percentages from Local 332 on these projects. You remove them, then everything goes down. But when an union labor leader believe he can make a call and change what has been in writing to what he wants to see happen, that's a problem. And for him to think that he can do this -- because obviously if he thought that he couldn't get away with it, he wouldn't do it. He wouldn't even dream of doing something like that. So that's.
I understand. You've explained yourself. I appreciate it. 76 2/27/03 - COMMERCE - RES. 020238, 030038 Anything else?
I was trying to be nice. Thank you very much. I will not be asking anybody else that question. The next panel will be our Finance Director, Ms. Janice Davis, and the Director of MBEC, Mr. James Roundtree. Councilman, do you want to make a statement?
Welcome, Ms. Davis. I'm sorry, but I just got a phone call; I've got a family emergency. While everybody is here, I would hope that everybody can put the testimony on the record. We're going to have another hearing on the legislation that we put forward today, but I have to do this because my wife is calling me and I have to go home. So continue with the record.
Thank you, Councilman. Ms. Davis, identify yourself for the 77 2/27/03 - COMMERCE - RES. 020238, 030038 record.
I'm Janice Davis, Director of Finance. Good afternoon, Councilman Nutter and Members of the Committee. I'm Janice Davis, Director of Finance. I'm here to offer testimony on Resolution 020238. Here with me today are the Procurement Commissioner, William Gamble, and the Director of Minority Business Enterprise Council, also known as MBEC, James Roundtree. They are available to answer any questions you may have about the operation of their specific departments. A diverse business community is essential to the economic health of any City. The Street Administration is committed to achieving diversity in all aspects of the City's operations. We are not satisfied with the current level of inclusiveness in the economic activity of this City. This Administration's commitment to increase diversity and procurement is demonstrated by the initiatives directed at achieving that end. A few of these initiatives are presented below. Procurement and MBEC are working together to increase the diversity of the vendors 78 2/27/03 - COMMERCE - RES. 020238, 030038 doing business with the City. Their efforts include training and outreach to small minority and women vendors concerning the City's bidding process and business opportunities. The Procurement Department recently implemented a program to increase the use of small businesses as suppliers. Under the new small order purchase program, solicitations of bids for small order purchases are limited to small businesses.