Philadelphia City Council Committee on Finance, 9 Mar 2023

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From YouTube: Committee on Finance 3-9-2023

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The Committee on Finance of the Council of the City of Philadelphia held a Public Hearing on Thursday, March 9, 2023 to hear testimony on the following items:

230079
An Ordinance constituting the Twenty-Seventh Supplemental Ordinance to the Restated General Water and Wastewater Revenue Bond Ordinance of 1989, as supplemented; authorizing the Bond Committee to issue and sell one or more series or subseries of tax-exempt or taxable water and wastewater revenue bonds and revenue refunding bonds; authorizing agreements to provide credit enhancement or payment or liquidity sources (or any combination of the foregoing) for such Bonds; providing that such Bonds shall bear interest at fixed or variable rates; determining the sufficiency of pledged Project Revenues; authorizing the Director of Finance to take certain actions with regard to the sale of such Bonds, the investment of proceeds thereof and the City’s continuing disclosure obligations with respect to such Bonds; setting forth the use of proceeds of such Bonds; covenanting the payment of interest and principal; supplementing the Restated General Water and Wastewater Revenue Bond Ordinance of 1989; and specifying applicability of sections of The First Class City Revenue Bond Act and the Restated General Water and Wastewater Revenue Bond Ordinance of 1989.

230104
An Ordinance approving the amendment of the Fiscal Year 2023 Capital Budget providing for expenditures for the capital purposes of the Philadelphia Gas Works, including the supplying of funds in connection therewith, and acknowledging the receipt of the Revised Forecast of Capital Budgets for Fiscal Years 2024 through 2028, as amended, all under certain terms and conditions.

230105
An Ordinance authorizing the extension of the program authorized by Bill No. 181043 under which advance approval is given to the Philadelphia Facilities Management Corporation to enter into certain contracts and transactions arising thereunder for the purchase, storage, distribution, transportation and/or transmission of natural and other gas supply on behalf of the Philadelphia Gas Works, subject to certain terms and conditions.

A

A

B

Good afternoon, everyone this is the committee on finance, Thursday, March, 9th 2023. Before we begin the public hearing I would make like to make the following announcements. Due to the continuing threat of Public Health from covid-19 city council committees are currently meeting remotely.

B

We are using Microsoft teams to make these remote hearings possible instructions for how the public May, View and offer public testimony of public hearings and Council committees are included in the public hearing, notices that are published in The, Daily, News inquire and legal Intelligencer prior to the hearing, and can also be found on phlcouncil.com I note now that the hour has come Mr McGonagall. Will you please read the call the role and members uh say your name and say if you're present? Thank you.

C

Councilwoman Bass.

D

Councilman Johnson.

D

Councilman Jones I'm president Mr chairman councilman squilla I'm, president councilman Thomas.

D

D

You have a choir, Mr chairman thank.

B

You now Quorum of the committee is President and the hearing is now called to order.

B

This is a public hearing on the committee on finance regarding bills, number.

B

230079-230104 and 230105.

B

Mr model: please read the title of bills:.

D

Bill number 230079 constituting the 27th supplemental ordinance to the restated General Water and Wastewater Revenue Bond ordinance of 1989 as supplemented.

D

Authorizing the bond committee to issue and sell one or more series of sub-series of tax-exempt or taxable Water and Wastewater revenue, bonds and revenue, refunding bonds authorizing agreements to provide creditors, enhancement or payment or of liquid liquidity sources for any combination of the foregoing for such bonds.

D

Providing that such bonds shall bear interest at fixed or variable rates. Determining the sufficiency of pledged project revenues authorizing the Director of Finance. Take certain actions with regard to the sale of such bonds, the Investments of proceeds thereof and the city's continuing disclosure obligations with respect to such bonds.

D

Setting forth the use of proceeds of such bonds, covenating the payment of interest and principle supplementing the re, restated general order and Wastewater Revenue by an ordinance of 1989 and specifying applicability of sections of the first class City Revenue Bond Act, and the restated General Water and Wastewater Revenue Bond ordinance of 1989.

D

And also bill number 230104 approving the amendment of the fiscal year, 2023 capital budget, providing for expenditures for the capital purposes of the Philadelphia Gas Works, including the supplying of funds and connection there with and acknowledging the receipt of, the revised forecast of capital budgets for fiscal years 2024 through 2028, as amended all under certain terms and conditions and Bill number 230105 authorizing the extension of the program authorized by Bill number 181043, under which Advance approval is given to the Philadelphia Facilities Management Corporation, to enter into certain contracts and transactions arising there under further purchase storage, distribution, transportation and or transmission of natural and other gas supply.

D

On behalf of the Philadelphia Gas Works, subject to certain terms and conditions.

B

Thank you before we begin the hearing. Testimony from the witnesses we have for today, everyone who is invited to the meeting to testify should be aware that this public hearing is being recorded, because the hearing is public participants and viewers have no reasonable expectations of privacy. By continuing to be in the meeting, you are consenting to being recorded additionally prior to recognizing members for the questions or comments they have for Witnesses.

B

I will know for the record at this time that we will use the chat feature available on Microsoft teams to allow members to signify that they wish to be recognized in order to comply with the sunshine act. The chat feature must only be used for this purpose. Will you please call the panel we have to testify this afternoon on the first bill.

E

Mute sister chairman.

D

Could we please have Jacqueline done.

B

Thank you Jackie. If you wanted to state your name for the record and then you can pursue with your testimony. Thank you.

F

Sure thank you chair good afternoon, Church Escuela and members of the finance committee. My name is Jackie Dunn City Treasurer with me are Natalia Dominguez, Buckley, first Deputy City, Treasurer, Matthew, Bowman Deputy for debt management and colleagues from the Philadelphia water department.

F

I'm here to testify today on behalf of Bill two three, two, three zero zero seven nine bill 230079 would provide authorization to issue Water and Wastewater revenue bonds in an aggregate amount up to 945 million dollars exclusive of original issue discount.

F

If any, this ordinance authorizes the issuance of water and wastewater revenue bonds to pay for projects which consist of such Capital Improvements to the water system that are authorized and included in the capital budget of the city, including constructing, acquiring, reconstructing and renovating wastewater treatment plants and related facilities and equipment for the sewer system, constructing acquiring, reconstructing renovating water treatment plants, constructing acquiring, reconstructing and replacing water Wastewater and storm water pipes, pumping stations and related facilities, purchasing equipment and apparatus of the capital, nature for water and wastewater systems, constructing acquiring, reconstructing and renovating storm water management and mitigation improvements, facilities and other improvements and facilities, and furtherance with the city's combined sewer outflow.

F

Long-Term control. Plan update purchasing vehicles that serve the water and wastewater system, paying the issuance cost of the bonds and for other transaction related costs, as well as the defeasants of any obligations issued through the city's commercial paper program. This authorization can also support the water, Department's utilization of low-cost state and federal loan programs. In short, this ordinance provides the water department the ability to invest in its capital infrastructure over several fiscal years. The administration recommends the adoption of this bill and respectfully requests that the committee give this bill its favorable recommendation.

F

We also request that the rules be suspended so as to permit first reading at the next session of council. Thank you for your consideration and I'm happy to answer any questions that you might have.

B

Thank you Jackie for your testimony. Do you know who gets to select how much is being put in for the bond and then what those projects are.

F

Sure, thank you for the question chair.

F

um We uh work with the water department to evaluate their Capital needs in accordance with the capital plan that is approved by city council and in terms of the sizing of the bond. We look at what the capital needs are and the relationship to what revenues we receive through rates, and so the water department can only borrow up to what we have the ability to pay for in rates, and so that includes not only the city's borrowings, but also the utilization of those federal and state low-cost loan programs. That I mentioned in my testimony.

B

I'm, so that you work directly with the water department and then do you know you get to recommend projects to get done. Concerns like we haven't. We had a hearing recently with them dry weather overflow in the combined sewers. Is that like? How do we know if, if those things are also being considered when um these projects are being done,.

F

Sure our office is is not part of the selection process on specific projects that are funded by Bond proceeds or by these other federal or state loan programs, but through the budget process that then comes before city council.

F

Those projects are approved in the capital plan process.

B

Okay, all right! Thank you very much. Are there any uh questions? uh Council, member Jones? Yes,.

E

My um you, you kind of answered it, but I want it on the record, so you do not have anything to do with the speed by which capital programs are implemented in Prior budgets. We were concerned that we are borrowing money for projects that take extreme amounts of time and because of that, borrowing we're assuming the debt obligation to it had is there? Is there any way that you can as a part of a testimony, kind of tell us how we're doing with capital projects?

E

We had a 10-year backlog at one point, so I don't know if that's all water department projects, but it would be helpful if you could provide that to the chair.

F

Sure, thank you. Councilmember Jones, we're happy to provide more information after this hearing. um The one intersection that our office has with your question is that yeah, in order for the water department to bid out projects, capital projects, get vendors on board, and you know start that process. They need to have authorization to do so, and so by having the authorization they can, at least on the front end. You know, help facilitate that that full process coming to speed quicker than if we're having to wait for authorization.

F

So that's why we come before city council to ask for multiple years of authorization to try and do what we can on that end, to allow them to get money on the street into our infrastructure as quickly as possible. Thank.

E

You Mr chairman.

B

Thank thank you, council member. Are there any other questions for this panel? Is there any other testimony to be shared for this bill?

B

Seeing none. Thank you. Mr monical. Can you please call the next panel for the following bill. 230104.

B

D

We please have John Zuck ER. Excuse me, Mr chairman.

G

B

Council member.

G

Can I be reported as being present.

B

Yes, before we start for the record council, member Johnson is present for the hearing um John. If you just want to state your name for the record and then proceed with your testimony, you sure.

G

Will thank yous counseling a good day. My name is John Zucker Philadelphia twerks senior vice president of gas management here appeared today on behalf of PGW in support of bill 230104, which would approve and admit to the fiscal year 2023 capital budget, PGW.

G

Implementation of pgw's FYI 2021 Capital program compliance issues were identified that need addressed. There are four projects approved, which is FY 2021 Capital budgets, where the process completion timeline would exceed the approved like to remedy this issue. Pgw requests that the fy23 capital budget be amended to reflect reauthorization for these previously improved projects in the FY 2021 capital budget, total combined, actual spending for the original authorization and reauthorization will not be greater than the original authorization for these projects. Therefore, there is no need to request additional budget spending.

G

Authorization from the original amount authorized city council pool is required, since neither PGW nor the ks Community have authority to extend Project lifespans Specific light items were budgeted, reauthorization is requested with the budget category and the amount of the budget authorization PGW proposed, admit to the FY 2023 capital budget, revised resources to manage and operate the Philadelphia Network to maintain these facilities in good order and condition consistent with the best and most, that cannot processes that are usual usual and customer for Gas Utilities.

G

Therefore, PGW, respectively asked the committee on finance for a federal report on the 230104 and that's a city council approved and authorized an amend fiscal. Your 2023 budget capital budget of 191 million 570 000. PGW also respects the requests and suspension of rules for initially reading of this bill, I'd like to extend our appreciation of both the gas commission and staff for getting a budget review that was both efficient and comprehensive.

G

Also on the behalf of HW, I would like to thank any Council for its Pass Support of our efforts to the citizens of Philadelphia and look forward.

G

But any questions concerning this. Thank you for your time. Consideration in this matter.

B

Thank you John for your testimony. Are there any questions uh from anyone on the committee hearing? None is there anyone else to testify on Bill number, two one: two: three: zero one: zero, four John! Thank you for your testimony. Mr mcmonagle. Can you please read uh request the panel for Bill number 230105.

D

Mr Zuck again John.

B

Just state your name again for the record and proceed okay.

G

Hello, my name is John Zuck uh senior, president PGW briefly. The number 230105 would further extend the pre-approval ordinance authorized period for an additional four years for approval and recommendation of gas contracts that insert an approval criteria, developing incons in consolation with peach, wpw, commission Jeff and the city solicitor's office. Bill 23015 continues to reauthorize certain changes to the pre-approval framework to enable PGW to enter into contracts that PGW was previously not able to enter to or is only reduced gas purchases costs to BW and ultimately, its rate payers.

G

The approval ordinance has provided PGW with workable guidelines. It's gas procurement program, an efficient manner consistent with industry standards. At this time, PGA has been able to comply with the reporting and other requirements that forth in the pre-approval ordinance and so also meet the requirements that arise virtue of the PW status, Mutual immutility, with with the changes derived above and previously we'll continue to prevent UW to benefit from lower cast costs while continuing to comply with such requirements.

G

Further extension has been favorable recommended, but PGA Mission. Thank you and I will happy to answer any questions. You have.

B

Thank you for your testimony. Any questions from anyone on the committee hearing. None is the only one else to testify on Bill number: two: three: zero one: zero: five John! Thank you for your testimony.

B

uh No hearing, no, no further questions from members- uh and this is the last panel uh there being no other panels to testify, we'll take a brief break to connect any members. If there are any members, Mr McGonagall, are there any members for public session.

D

We have nobody signed up to testify, sir. Okay.

B

So, thank you for that.

B

So since there's no other questions from members that will conclude our hearing there being no further questions from members of the committee and no other witnesses to testify I'll ask that anyone else present in this hearing whose name we have failed to call and that wishes to offer testimony on the bill be considered today airing there none I.

A

Want to thank my apologies um council member. um My name is Jamila McClendon and I'm. The executive director of the gas commission, okay, are.

B

A

A testify on what Bill um 230105 all right, I'm. Sorry, two: three: zero one: zero five.

B

All right, thank you just say your name again for the record and you pursue with your testimony my.

A

Name is Jamila McClendon and I. Am the executive director of the Philadelphia Gas Commission.

A

um It's what I have to offer this afternoon is less of testimony and more just a matter of cleanup um and it's possible that I missed it, but I just wanted to make note that we are respectfully um requesting the um suspension of the rules and favorable recommendation of Bill number 230105 so that it can have first reading at the next Council session. Mr zuk may have said that um four two three zero 105 but I possibly missed it, and just wanted to make note of that.

A

Thank you for your time. Thank.

B

You so much thank you for your testimony. um Are there any other questions and is there anyone else to testify hearing none? This is conclude our public hearing, the committee. We will now go into the public meeting uh to consider the action to be taken. The bills before this committee today.

B

We are now in a public meeting. Would please call the roll to take attendance and members that are in attendance? Please state your name for the record.

C

Councilwoman Bass.

D

Councilman Johnson.

D

Councilman Jones Mr, chair I'm, president councilman squilla.

D

Present councilman Thomas.

G

G

B

Did you call my name Mark councilmember yeah Johnson, your president? Okay, thank you.

B

I can Mr mcmonagle is going to share at the script with councilmember Jones um he's going to email that over to you. If.

E

um Neither one of those have a Amendment, sir, no amendments. If he could just text me the bill numbers I can move them. I.

B

Know it by heart now all right, it's coming over now.

B

I'll, do it.

D

Sorry, councilman I sent it to councilwoman bass and just.

E

I have them, sir. There are three of them right, correct.

B

Okay, the chair recognizes councilmember Jones for emotional, build number, two: three: zero, zero; seven. Nine thank.

E

You Mr chair I, move that bill number two: three: zero: zero. Seven nine be reported from this committee with a favorable recommendation and further rule that the rules accounts will be suspended to allow first reading at our next session of council.

B

Is there a second second sorry, Mr, chair, hey, thank you, the the chair notes for the record councilmember Thomas seconds, the motion that has been moved and properly. Second, the bill number two: three: zero, zero, seven nine be approved. All those in favor of the most will signify by saying aye.

E

B

Aye those opposed the eyes have it, and the motion carries bill number two: three: zero: zero. Seven nine will be reported from this committee with a favorable recommendation to further move. The rules. Accounts will be suspended as to commit the first reading of this bill. At the next session of council.

B

The chair now recognizes councilmember Jones for emotional bill number, two: three: zero one: zero. Four thank.

E

You again Mr chair, I, move that bill number two: three zero one: zero four be reported from this committee with a favorable recommendation; further move that the rules Council be suspended as to permit the first reading of this bill at our next session of council.

B

Is there a second? Second all right? Thank you to chair notes for the record councilmember Thomas seconds to motion. It has been moved or properly seconded that the bill number 230104 be approved. All those in favor will signify by saying aye aye aye those opposed eyes have it, and the motion carries uh bill number two: three: zero one: zero four be reported from this committee with a favorable recommendation and further move that the rules accounts will be suspended to submit the first reading of this bill.

B

At the next session of council, Sharon recognizes councilmember Jones for emotional bill number 230105 and.

E

I. Thank you again. Mr chairman I move that bill number two three zero one: zero five b reported from this committee with a favorable recommendation and further move that the rules accounts will be suspended to permit this bill to be read at our next session of counts.

B

Thank you for the record note uh that councilmember Thomas seconds the motion has been moved and properly. Second, the bill number two three zero one: zero five be approved, all those in favor signify by saying aye, those opposed eyes have it, and the motion carries uh bill number two: three: zero one: zero five has been reported from this committee with a favorable recommendation and further movement. The rules the council be suspended, submit the first reading of this bill at the next session of council.

B

Thank you so much for your time today. That'll conclude our meeting uh for the and business for the committee on finance. Everybody who testified we appreciate it have a great day and enjoy thank.

E

You Mr chairman.

B