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Committee of the Whole April 30, 2019 (215) 504-4622 STREHLOW

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Committee of the Whole April 30, 2019 (215) 504-4622 STREHLOW Committee of the Whole April 30, 2019 Page 1 COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE OF THE WHOLE Room 400, City Hall Philadelphia, Pennsylvania Tuesday, April 30, 2019 10:36 a.m. PRESENT: COUNCIL PRESIDENT DARRELL L. CLARKE COUNCILWOMAN CINDY BASS COUNCILMAN ALLAN DOMB COUNCILMAN WILLIAM K. GREENLEE COUNCILWOMAN HELEN GYM COUNCILMAN DAVID OH COUNCILWOMAN CHERELLE L. PARKER COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN AL TAUBENBERGER BILLS 190152, 190153, and 190154 RESOLUTION 190164 - - - STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee of the Whole April 30, 2019 Page 2 1 4/30/19 - WHOLE - BILL 190152, ETC. 2 COUNCILMAN GREENLEE: Good 3 morning, everyone. Sorry for the delay. 4 This is the public hearing of 5 the Committee of the Whole regarding Bill 6 Nos. 190152, 190153, 190154, and 7 Resolution No. 190164. 8 Mr. Stitt, please read the 9 titles of the bills and resolution. 10 THE CLERK: Bill No. 190152, an 11 ordinance to adopt a Capital Program for 12 the six Fiscal Years 2020 through 2025 13 inclusive. 14 Bill No. 190153, an ordinance 15 to adopt a Fiscal 2020 Capital Budget. 16 Bill No. 190154, an ordinance 17 adopting the Operating Budget for Fiscal 18 Year 2020. 19 Resolution No. 190164, 20 resolution providing for the approval by 21 the Council of the City of Philadelphia 22 of a Revised Five Year Financial Plan for 23 the City of Philadelphia covering Fiscal 24 Years 2020 through 2024, and 25 incorporating proposed changes with STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee of the Whole April 30, 2019 Page 3 1 4/30/19 - WHOLE - BILL 190152, ETC. 2 respect to Fiscal Year 2019, which is to 3 be submitted by the Mayor to the 4 Pennsylvania Intergovernmental 5 Cooperation Authority (the "Authority") 6 pursuant to the Intergovernmental 7 Cooperation Agreement, authorized by an 8 ordinance of this Council approved by the 9 Mayor on January 3, 1992 (Bill No. 10 1563-A), by and between the City and the 11 Authority. 12 COUNCILMAN GREENLEE: Today we 13 continue the public hearing of the 14 Committee of the Whole to consider the 15 bills read by the Clerk that constitute 16 proposed operating and capital spending 17 measures for Fiscal Year 2020, a Capital 18 Program, and a forward-looking Capital 19 Plan for Fiscal Year 2020 through Fiscal 20 Year 2025. 21 Today we will hear testimony 22 from these City departments: SEPTA, 23 Community College, Controller's Office, 24 and department callback scheduled the 25 Free Library. STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee of the Whole April 30, 2019 Page 4 1 4/30/19 - WHOLE - BILL 190152, ETC. 2 Mr. Stitt, our first witness to 3 testify is? 4 MR. STITT: SEPTA General 5 Manager, Jeffrey Knueppel. 6 (Witnesses approached witness 7 table.) 8 COUNCILMAN GREENLEE: Good 9 morning, Mr. Knueppel. We have your 10 written testimony. I know you know the 11 score here. If you could give us a 12 summary, and we have questions. Thank 13 you. 14 MR. KNUEPPEL: Good morning, 15 Councilman Greenlee, members of City 16 Council, and other guests. I am Jeff 17 Knueppel and I am honored to come before 18 you today as the General Manager for the 19 Southeastern Pennsylvania Transportation 20 Authority. I am joined by SEPTA 21 Philadelphia Board member Michael Carroll 22 to my right, Deputy Managing Director, 23 Office of Transportation, Infrastructure, 24 and Sustainability. 25 SEPTA is pleased to submit STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee of the Whole April 30, 2019 Page 5 1 4/30/19 - WHOLE - BILL 190152, ETC. 2 testimony supporting the Authority's 3 $87.6 million Fiscal Year 2020 Operating 4 Budget request, and I am grateful for the 5 opportunity to provide the members of 6 Council with an overview of SEPTA 7 initiatives and milestones achieved 8 during the past year. 9 I believe you have copies of my 10 complete testimony, and if you agree, I 11 would like to summarize its content and 12 get right to any questions you may have. 13 COUNCILMAN GREENLEE: Yes, sir. 14 MR. KNUEPPEL: Members of my 15 staff are also with me today to help 16 provide any additional information 17 requested. 18 SEPTA's Operating Budget is 19 funded through subsidies from local, 20 state, and federal governments, the fare 21 box, and other revenues. The City's 22 $87.6 million contribution represents 6 23 percent of the Authority's total 24 operating budget and enables SEPTA to 25 meets its state legislatively mandated STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee of the Whole April 30, 2019 Page 6 1 4/30/19 - WHOLE - BILL 190152, ETC. 2 requirement to secure local matching 3 funds to leverage state operating subsidy 4 dollars of approximately $739 million. 5 SEPTA's Fiscal Year 2020 6 Operating Budget maintains current 7 service levels, with no increase in fares 8 for customers. 9 For SEPTA's Capital Budget, the 10 City's $4.58 million contribution will 11 support a total Capital Program this year 12 of approximately $675 million, advancing 13 projects, including modernization of 30th 14 Street Station on the Market-Frankford 15 line; ongoing rehabilitation of the 15th 16 Street and City Hall Stations complex; 17 accessibility improvements to 18 Susquehanna-Dauphin and Tasker-Morris 19 Stations on the Broad Street line; 20 expansion of the Wissahickon 21 Transportation Center; and continued 22 improvements to the Center City concourse 23 network. 24 Council's continued support to 25 allocate operating and capital funds in STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee of the Whole April 30, 2019 Page 7 1 4/30/19 - WHOLE - BILL 190152, ETC. 2 the City's budget is sincerely 3 appreciated. 4 SEPTA also works to preserve 5 state and federal funding that is 6 critical to our operations and state of 7 good repair efforts. It is, however, an 8 uncertain time for public transportation 9 funding at the state level, as an ongoing 10 lawsuit by the trucking industry 11 continues to threaten state transit 12 capital funding. 13 Despite these challenges, SEPTA 14 is working every day to support the 15 mobility and livelihood of the people who 16 live, work, and visit Philadelphia and 17 the Southeast region. 18 From social responsibility and 19 environmental sustainability to quality 20 of life and economic opportunity, SEPTA 21 is proud to be the backbone of this city 22 and the region. 23 Transit remains the most 24 affordable, safest, and greenest way to 25 get around. A study this year by STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee of the Whole April 30, 2019 Page 8 1 4/30/19 - WHOLE - BILL 190152, ETC. 2 Econsult Solutions found that transit 3 ridership saves the average Philadelphia 4 household nearly $1,000 per year. 5 Traveling by public transportation is ten 6 times safer than driving, and transit has 7 always been a more environmentally 8 friendly alternative. 9 SEPTA has completed the first 10 of four solar panel installation projects 11 on what will be the second largest solar 12 installation in Philadelphia history, and 13 we are now reviewing proposals to convert 14 20 percent of our electricity demand to 15 renewable sources. 16 Strong partnerships with the 17 City, including as a member of the Zero 18 Waste and Litter Cabinet, are also making 19 for a cleaner, greener Philadelphia. 20 SEPTA is building the future 21 with a strong and diverse workforce of 22 9,500 employees who reflect our ridership 23 and the communities we serve. Fifty-one 24 percent of SEPTA employees live in 25 Philadelphia. Sixty-three percent of our STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee of the Whole April 30, 2019 Page 9 1 4/30/19 - WHOLE - BILL 190152, ETC. 2 workforce are minorities, and 23 percent 3 are women. 4 SEPTA is also committed to 5 improving equity and diversity in our 6 management ranks. Five years ago, women 7 and minorities made up 52 percent of 8 SEPTA's management employees. Today 59 9 percent of salaried and management 10 employees are minorities or women. 11 Over the same period of time, 12 the percentage of SEPTA's workforce that 13 reports to a minority or a woman has 14 grown significantly. Currently, 45 15 percent of our employees report to a 16 minority or woman supervisor, up from 26 17 percent in 2014. 18 Promoting growth and 19 opportunities for local business owners 20 is also a priority, and I am pleased to 21 report continued progress in 22 strengthening our federal disadvantaged 23 business enterprise, DBE, program. Our 24 directory of DBE-certified firms grew to 25 834, of which 24 percent are Philadelphia STREHLOW & ASSOCIATES, INC. (215) 504-4622 Committee of the Whole April 30, 2019 Page 10 1 4/30/19 - WHOLE - BILL 190152, ETC. 2 based. This year we streamlined the DBE 3 certification process to ensure timely 4 approval, and there is currently no 5 backlog. Over the past three years, 6 SEPTA has exceeded 16 percent DBE 7 participation on newly awarded contracts. 8 Everyone at SEPTA takes immense 9 pride in delivering reliable, accessible, 10 sustainable, and customer-focused public 11 transit service every day. Like transit 12 agencies across the nation, we have 13 experienced a decrease in bus ridership 14 over the last few years. We are working 15 closely with the City and other 16 stakeholders to reverse this trend. As 17 we begin the Comprehensive Bus Network 18 optimization initiative, interim measures 19 are yielding positive results.
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