“The Department of Licenses and Inspections is committed to building and construction safety and to the safety of all of citizens of the City of Philadelphia,” said Licenses and Inspections Commissioner Carlton Williams. “After the tragic events of last week, it is necessary to implement heightened controls on private demolition activity to ensure that all demolition sites are safe for adjacent properties, pedestrians, and site workers.”

The stopped sites are, with reason for stoppage:  618 N. 11^th Street (expired contractor license and lapsed insurance), 622 N. 11^th Street (expired contractor license and lapsed insurance), 200 N. 21^st Street (lapsed insurance), 4720 Chester Avenue (lapsed workers’ compensation insurance and bracing issues), and 2042 N. Gratz Street (work being done beyond the scope of permit and engineering report required).  The Stop Work Order at 200 N. 21^st Street was subsequently lifted after the proper insurance certification was received and reviewed by the Department.

Demolition contractors are reminded that it is their responsibility to maintain a safe demolition site and conduct operations in a safe manner.  Contractors with questions about inspection procedures should contact the inspector listed on their permit.

Citizens with complaints about demolition activity are reminded to call 311 with the exact address of the site and a description of the problem.  All complaints regarding demolition activity will be investigated within 48 hours.

New Requirements for Demolition Permits and Inspections

The Department also announced that it will increase oversight of private demolition contractors through heightened permitting and inspection requirements, which will be in place by the end of this week. 

The Department’s new demolition permit application will require details about contractor’s experience and qualifications, a site safety plan for protection of adjacent properties, and a detailed schedule of work.  Applicants must have proof of insurance, tax clearances, and no open L&I violations, and are subject to a complete review of their L&I violation and tax compliance history.  The Department will also require an engineering report for the demolition of commercial buildings above three stories, and will issue a Code Bulletin prohibiting the use of heavy machinery for attached building demolitions.

All demolition sites will also be subject to heightened safety reviews and oversight prior to the start of work.  Department inspectors will conduct a site safety review with the contractor – including protections for adjacent properties and pedestrians – prior to the start of work at every demolition site.  The Department will issue Stop Work Orders at sites that do not provide the required notification of the start of work.

The Department is also implementing a Construction Site Task Force to review and audit licensing, permitting, and inspections of major construction and demolition sites. The Task Force will coordinate with other City agencies to enforce site safety and ensure compliance with all City codes and ordinances.

“Our hearts are still hurting over the loss of those six good people, working or shopping at the Salvation Army Thrift Store, trying to ‘do good’.  We continue to pray for the physical and mental recovery of the thirteen survivors.

“It is my hope that the harshest level of charges are brought against Sean Benschop and he is punished accordingly. We must also seek answers from property owners Richard Basciano and Griffin T. Campbell who hired Benschop to do the significant job of operating heavy equipment.  These three individuals bear the ultimate and sole responsibility for this tragedy. Justice will only be served if Sean Benschop receives a sentence that buries him in a jailhouse forever, just like his victims were buried on Wednesday.

“Let us keep all the families affected by this horrific event in our thoughts and prayers, and never forget what happened that day.”

“The City and the Department of Licenses and Inspections are dedicated to building and construction safety and to the safety of all of citizens of the City of Philadelphia,” said Mayor Nutter. “After the tragic events of this week, it is necessary to implement the same heightened controls on private demolition activity that we have on public demolitions to ensure continued safety.”

The new initiatives place additional requirements on demolition contractors and contain specific penalties for contractors who violate these requirements.

“The Department’s heightened permitting, inspection, and review requirements will ensure that all private demolition sites are safe for adjacent properties, pedestrians, and site workers,” said Department of Licenses and Inspections Commissioner Carlton Williams.

Effective immediately:

All inspectors were ordered to visit all sites with active demolition permits to proactively inspect for site safety conditions and any other possible violations.

All new permit applications for complete demolition must include the following documents and requirements prior to issuance of the permit:

1. Details on the experience and qualifications of the contractor performing the demolition including demolition experience of the owner and the company.
2. A site-safety plan detailing how the contractor proposes to protect pedestrians and adjacent properties.
3. A schedule of the demolition work. Contractor will show length of time for each stage of the project.
4. Professional Engineer’s report on adjacent property protection for demolition of commercial buildings above three stories.
5. No active violations for contractor and review of all previous violations.

The following procedures will be implemented for demolition inspections;

1. Initial Inspections: Require the inspector to conduct a site safety review with the contractor prior to the start of work to review steps for protecting adjacent properties and pedestrians. Inspector to review schedule of work with the contractor during each inspection to ensure compliance.
2. No contact from contractor: If the required notification of the start of work is not received from the contractor, the inspector will visit the site every 15 business days from the permit’s date of issuance.  The permit will be revoked after 45 days if there is no evidence of legitimate work started at the permitted demolition site.
3. Failure to notify Department of start: If we find the contractor working without the required notification, the inspector will issue a Stop Work Order until a hearing is held regarding the contractor’s failure and the site safety review is completed with the inspector and the contractor.
4. Complaints regarding demolition activity. The Department of L & I will investigate all complaints within a 24-48 hour period and provide a detailed report to include; the nature of the complaint, an explanation of the findings, determination of compliance, a time and date stamped photo of all site visits and inspections.
5. The Department will immediately implement a quality assurance plan, setting forth the policies and practices that ensure that all site inspections and complaints are performed timely and accurately. The procedure also establishes regular management level analysis of internal audit findings to assess the organization’s overall level of conformance, with the ultimate goal of identifying and correcting areas of nonconformance and inefficiency, and engaging staff in improving processes and procedures.
6. The Department of L&I will coordinate with the Department of Revenue to ensure that all demolition contractors and/or subcontractors provide proof of the following: proper insurance and tax clearances for all employees before any building permit is approved.

The Department will issue a Code Bulletin to stipulate that demolition activities must follow similar requirements as City-funded demolitions regarding protection of adjacent buildings, i.e. no use of heavy machinery for attached building demolitions.

The Department is implementing a Construction Site Task Force with primary responsibilities of ensuring proper licensing, permitting and tax compliance of the primary contractor, subcontractor, or any independent contractors and workers related to the demolition project. Funding for this initiative has already been allocated in the FY14 budget beginning July 1, 2013.

The Construction Site Task Force will coordinate with other city agencies including the Department of Revenue, Law and the Office of the Inspector General to audit and strictly enforce all provisions related to work site safety and tax compliance in accordance with the Philadelphia Code and the Board of Labor Standards to ensure area wage rates and standards are being upheld. Any evidence of violation will lead to an immediate suspension of the permit and the project will be discontinued until the contractor and related parties fully comply.

Recommendations

1. Failure to call for inspection – implement a Stop Work Order with a $1000 inspection fee which must be paid before work may continue.
2. Establish a separate license category for demolition contractors and allow issuance of demolition permits only to those with this license. Establish testing and experience requirements.
3. Consider imposing a code requirement for background checks and for contractors to provide random drug screening for heavy equipment operators on demolition sites as part of the site safety inspection.
4. All licensed contractors will be notified that they will be required to provide proof of experience and qualification prior to obtaining a demolition permit.

Philadelphia, June 6, 2013– The City of Philadelphia released the names of the deceased and injured victims of the building collapse yesterday at the intersection of 22^nd and Market streets. Report of the collapse came in to 911 at 10:43 a.m. on Wednesday. Within minutes, a search and rescue mission began.

“Today, we mourn the loss of six Philadelphians who perished in the terrible tragedy at 22^nd and Market streets on Wednesday. Our deepest condolences go out to the families and friends of the deceased,” said Mayor Michael A. Nutter. “I ask all Philadelphians to remember those who perished and their families in their prayers and thoughts.”

The following individuals died in the collapse: Kimberly Finnegan, Borbor Davis, Juanita Harmin, Mary Simpson, Anne Bryan and Roseline Conteh.

The following individuals were injured in the collapse: Susan Randall, Betty Brown, Shirley Ball, Linda Bell, Jennifer Reynolds, Nadine White, Margarita Agosta, Richard Stasiorowski, Rosemary Kreutzberg, Rodney Geddis, Felicia Hill, Daniel Johnson and Myra Plekan.

Mayor Nutter praised the rapid response and prolonged effort of the city’s first responders as well as those citizens who selflessly entered the demolition site in the minutes after the collapse to help in the search for survivors. “Reports yesterday identified a number of individuals who took quick action, including Jordan McLauglin, Ray Kauffman, Bill Roam, Patrick Glynn and Brian Mullins. On behalf of the City, I want to thank them for their quick thinking and courage,” Mayor Nutter said.

The Mayor asked that the media respect the privacy of the families of the victims and the injured by not contacting them during the grieving process. “I understand the media’s desire for information, but during this very painful period of grief, I ask the media to respect the privacy of the families who have lost loved ones in this tragedy and the people who were injured,” the Mayor said.

The Mayor stressed that there are a number of active investigations under way, including the Philadelphia Fire Department, the Department of Licenses and Inspections, the Philadelphia Police Department and OSHA. “We will fully investigate this tragedy and get to the bottom of what happened, how, when and why.  We will determine further actions that must be taken to prevent such tragedies in the future. The safety of our citizens must always be our No. 1 priority,” Mayor Nutter said.

“Across the country, Americans have watched the horrible destruction brought on by the devastating tornadoes that tore through the Oklahoma City region yesterday afternoon.  But Americans also witnessed the bravery of local first responders on the scene, of teachers protecting students and of neighbors helping neighbors as rescue efforts began.

“The thoughts and prayers of the nation’s Mayors are with all of those who were killed or injured by these tornadoes and their families.  And our thoughts and prayers are with Moore Mayor Glenn Lewis, Oklahoma City Mayor Mick Cornett, officials of the many other affected communities across the region, and the people of the Oklahoma City area, as they struggle to recover from the damage and begin the extensive process of rebuilding their communities.

“Like the Joplin officials who have already sent a team to help rescue and recovery efforts, the nation’s Mayors stand ready to help their colleagues in the Oklahoma City area recover from this devastating tragedy.”

FOR IMMEDIATE RELEASE

Philadelphia, May 6, 2013 – A Philadelphia Office of the Inspector General investigation of 19 Philadelphia Housing Development Corporation contracts has found that 11 prime contractors used JHS and Sons Supply Company to circumvent the City’s antidiscrimination requirements by paying JHS only for its name and its minority-owned business certification. So far, the City has signed a no-fault settlement agreement with one prime contractor and has hammered out compliance agreements with eight other prime contractors.

“It was clear from the beginning that this problem was widespread,” said Inspector General Amy L. Kurland. “These settlements meet our goal of ensuring that companies comply with our antidiscrimination requirements. Our mission is to bring companies into compliance, not to put them out of business.”

Investigators first discovered that prime contractors were using JHS to circumvent the City’s antidiscrimination requirements in PHDC’s weatherization contract with UGI HVAC Inc. In that case, the OIG established that William Betz Jr. Inc. had colluded with JHS and UGI to make it appear that JHS had provided equipment and supplies when Betz was in fact the supplier.

In January 2012, the City signed a no-fault settlement agreement with UGI, which agreed to pay the City $100,000, increase minority-business participation in future contracts and adopt new policies and procedures to comply with the City’s antidiscrimination requirements. The City also removed JHS from the Office of Economic Opportunity’s registry of certified minority-owned businesses.

In October 2012, the City signed a no-fault settlement agreement with Betz, which agreed to pay the City $128,000, comply with the provisions of an Equal Opportunity Procedures Policy and voluntarily declare itself ineligible to participate in City contracts for two years.

The case led to the adoption of Executive Order 03-12, which strengthened the City’s previous antidiscrimination policies and made it more difficult for companies to hire sham minority-, woman- and disabled-owned businesses (M/W/DSBEs) as subcontractors. All of the contracts in which JHS posed as a working minority subcontractor were signed before JHS was removed from the OEO registry.

After concluding the UGI case, the OIG continued investigating contracts involving JHS and Betz, and found that JHS provided no services to the 10 other prime contractors that had identified it as a subcontractor for 18 PHDC contracts. Those contractors are Burke Plumbing & Heating, Inc.; Clements Brothers and Sister, Inc.; DMC Environmental Group, Inc.; Buzz Duzz Plumbing, Heating, & Air Conditioning, Inc.; Edward Hughes and Sons, Inc.; Martin Johnson Plumbing and Heating, Inc.; Paragon Contracting; J.J. Magnatta, Inc.; John Stevenson, Inc.; and S. Murawski & Sons. The contracts ranged in value from $100,000 to $350,000.

Prime Contracts Involving JHS

In most cases, Betz facilitated the arrangement between JHS and the prime contractor, providing JHS’ minority business certification and the supplies necessary to complete the job. As a result, Betz received more than $640,000 worth of business that was intended for legitimate minority-owned companies. JHS received at least $70,000 for acting as a pass-through.

Most of the prime contractors that used JHS as a minority pass-through were small businesses that did not fully understand the City’s antidiscrimination requirements. The companies reached out to other contractors or suppliers for advice on how to comply with the requirements when they should have sought help from the Office of Economic Opportunity.

While the settlement agreement with UGI references a specific instance in which the City believed UGI had violated the City’s antidiscrimination policies, the compliance agreement with the remaining prime contractors is general in scope and does not include a payment to the City.

The purpose of the compliance agreement is to clarify the contractors’ legal obligation to provide meaningful opportunities for M/W/DSBEs and to educate the contractors about the assistance that the Office of Economic Opportunity can provide when searching for a qualified M/W/DSBE. Moving forward, these prime contractors now understand what is required under Executive Order 03-12 and are expected to follow the City’s policies on M/W/DSBE participation.

“I thank Lynette Brown-Sow for her five years of dedicated service to the Board and for her strong leadership as Chair for the last three years,” said Mayor Nutter.   “I now look forward to working with Julia Chapman to ensure the City maintains a clear, transparent and predictable zoning process.”

Ms. Chapman is an attorney who previously served as the Director of Legislative Affairs for Mayor Nutter until 2009 as well as Councilman Nutter’s Chief of Staff from 1995 to 2008.  During her tenure with the City, Ms. Chapman provided guidance on zoning and development issues and supported the efforts which lead to a ballot referendum in 2007 to create a Zoning Code Commission. The commission’s work ultimately led to the enactment of a new zoning code on December 22, 2011.

“Throughout my many years of public service, I have been keenly aware of the critical role the Zoning Board of Adjustment plays in balancing neighborhood preservation and the economic growth of the City while insuring the integrity of the zoning code,” said Ms. Chapman. “I look forward to this challenge and am honored to be asked to serve.”

The Zoning Board of Adjustment has five members appointed by and serving at the pleasure of the Mayor. It hears and decides appeals in zoning matters, considers special exceptions, and grants variances.

economic growth and recovery.

“One example of his leadership is his strong advocacy for his 2030 Transit Corridor System Plan, a growth stimulating investment in his region’s public transportation network that includes 25 miles of commuter rail, 21 miles of light rail, 16 miles of streetcar, 14 miles of bus rapid transit, and an expanded network of buses and other transit services.

“Mayor Foxx brings a wealth of experience to the table and I look forward to working with my friend and Secre

“I want to thank U.S. Department of Housing and Urban Development Secretary Shaun Donovan, Assistant Secretary Sandra Henriquez and Estelle Richman, the Secretary’s senior advisor who acted as PHA’s sole board member through this time of transition. I deeply appreciate their cooperation and support. Now, with PHA’s return to local control, the City of Philadelphia has the opportunity to better coordinate housing policy, related investment decisions and neighborhood revitalization in a transparent and coherent manner that involves all housing agencies and stakeholders for the benefit of the people who live in PHA housing and all Philadelphians,” said Mayor Nutter. “Equally important, the re-establishment of local control with a new governance structure means real accountability. The Authority in all its actions is responsible to the Mayor who in turn is answerable to the voters. This significant reform could not have been achieved without the strong support of the Philadelphia City Council, the Pennsylvania House of Representatives, the Pennsylvania Senate and Governor Corbett. Under PHA President Kelvin Jeremiah’s leadership, PHA has instituted strong internal controls, and now with a talented PHA Board of Commissioners prepared to carry out its duties, a new era of accountability, responsibility and transparency begins that will benefit PHA residents and staff and all Philadelphians.”

Philadelphia, April 24, 2013 –Mayor Michael A. Nutter and Philadelphia Gas Works CEO Craig White announced that J.P. Morgan Securities and Loop Capital Markets will serve as the City’s sales brokers for the potential sale of the Philadelphia Gas Works (PGW).

The firms will manage the sale process toward a potential sale on a contingency fee basis, meaning they will be paid only if the sale of PGW is completed and approved by City Council and the Pennsylvania Public Utility Commission (PUC).

“J.P. Morgan and Loop Capital Markets not only bring outstanding credentials to this assignment, both companies have demonstrated a strong commitment to the City of Philadelphia and PGW,” said Mayor Nutter. “In the past, J.P. Morgan and Loop Capital have participated in bond financings that have enabled the City and PGW to fund capital investments and better serve residents and businesses. As I have said from the outset, the only sale outcome acceptable to me is one that benefits taxpayers and customers.”

The process of selecting a broker involved weighing factors such as knowledge of the utility sector, mergers and acquisition experience, including successfully completing utility sales, and track records representing Philadelphia and other cities in public finance. The team of J.P. Morgan and Loop Capital stood out on all of these factors.

J.P. Morgan is a leader in municipal finance and utility transaction advisory work.  Since 2000, J.P. Morgan has advised on 15 gas utility transactions representing over $20 billion of transaction value. The company is a leading advisor in global and U.S. mergers and acquisitions. J.P. Morgan has supported small businesses throughout Pennsylvania, extending $124 million in credit to these businesses and raising more than $852 million in financing for Pennsylvania governments and non-profit organizations in 2012.

Loop Capital is a minority-owned investment banking firm and leader in public finance.  It is an active advisor on mergers and acquisitions, public private partnerships and financings for public and investor owned companies in the Infrastructure, Power, Utility, Energy sectors.  Since its inception in 1997, Loop Capital has co-senior managed or co-managed more than $6.4 billion in municipal bond financings for the City.

Both firms maintain corporate offices in Philadelphia.

“We are proud to have been selected to serve with Loop Capital as brokers for this historic transaction. We anticipate robust interest from companies wanting to buy PGW and we intend to use our knowledge, skill and experience to attract a compelling offer that meets the objectives of the City and its constituents” said Paul Dabbar, Managing Director in J.P. Morgan’s Global Mergers & Acquisitions Group, who will lead the broker team.

“Mayor Nutter has been specific about his commitment to the citizens of Philadelphia to consummate a sale only if it benefits the City. Our sales process will be designed to first maximize interest from qualified and suitable potential buyers and then to present the City with an offer that meets all objectives,” said Thomas R. Rosén and Derek McNeil, Managing Directors of Loop Capital.

Over the next several months, the brokers will identify and solicit qualified bidders, review responses from those bidders and provide analysis and guidance on the bids to the City and PGW.   Based on a preliminary analysis by its financial advisor in the transaction, Lazard, the City believes it can obtain bids well in excess of PGW’s outstanding bonds and other liabilities while reducing future risk to the City’s General Fund, bringing benefits to both taxpayers and customers.

“Finalizing the selection of a broker is another planned step in this process,” said Craig White, President and CEO of Philadelphia Gas Works. “We look forward to J. P. Morgan and Loop Capital completing their work in a timely fashion.”

Philadelphia is one of only two major cities in the U.S. that still own their gas companies. San Antonio is the other.

Founded in 1836, PGW is the nation’s largest municipally-owned gas utility, serving more than 500,000 residential, commercial and industrial customers.

Read more about the sales process at www.exploringasale.com.

“For the sixth year in a row, Philadelphians have stepped up to the plate and volunteered in the Philly Spring Cleanup,” said Mayor Nutter. “I am truly impressed with the passion and dedication throughout the city to make Philadelphia a cleaner, greener and safer place. Each year we hope to expand the cleanup, and I am proud to say that we did that this year with a record number of sites.”

Volunteers removed 1,014,540 pounds of trash and 23,341 pounds of recyclable material. This year’s cleanup continued with the theme “Keep Up the Sweep Up” to encourage cleaning efforts year round.

“I would like to thank all the block captains, neighbors, local businesses and community organizations  who volunteered their time and efforts in this day of service and to making the 6^th Annual Philly Spring Cleanup the best cleanup ever,” said Streets Commissioner Clarena I.W. Tolson. “The Philly Spring Cleanup begins the momentum for beautifying our neighborhoods all year long and to ‘Keep Up the Sweep Up’ to maintain a cleaner and brighter Philadelphia.”

2013 Philly Spring Cleanup in numbers:

General figures

• 565 project sites (the most projects ever registered for a Philly Spring Cleanup)
• 13,198 volunteers
• 65,990 service hours
• 1,014,540 pounds of trash removed
• 23,341 pounds of material recycled
• 6,834 recycling bins distributed
• 4,030 tires removed
• 17 Parks and Recreation Centers cleaned

Supplies distributed

• 37,000 trash and recycling bags
• 6,417 brooms
• 15,616 gloves
• 3,011 shovels
• 3,409 rakes
• 1,010 gallons of paint

In 2012, the Philly Spring Cleanup had 348 registered project sites and 12,115 volunteers.  1, 000,940 pounds of trash, 40,340 pounds of recyclable material and 1,800 tires were removed.

2013 Sponsors include: Dow, The Carton Council, BigBelly, Waste Management, Behr Paints, Covanta Energy, Republic Services, and ReCommunity Recycling. Dow, in conjunction with Behr Paints, donated 1,000 gallons of quality, high hiding exterior paint specifically designed to protect and cover a variety of surfaces found in the city.  The exterior paint, provided in a number of colors, including black, white, red and grey, was used to cover graffiti, paint curbs and refresh fences throughout Philadelphia.

2013 Partners include: Keep Philadelphia Beautiful, Philadelphia More Beautiful Committee (PMBC), Philly Future Track, Community Action Center of the United Way Southeastern Pennsylvania, Philadelphia Parks & Recreation, City Year, Mayor’s Office of Sustainability, Mayor’s Office of Civic Engagement & Volunteer Services, UnLitter Us, Philadelphia Recycling Rewards, The PhillyRising Collaborative.

For more information on the 2012 Philly Spring Cleanup, please visit www.PhillySpringCleanup.com