Philadelphia, June 17, 2013–  Standard & Poor’s Ratings Services has raised the City of Philadelphia’s long-term and underlying rating on the City’s general obligation (GO) debt to A- with a stable outlook from BBB+.  This is the first time since 1979 that the City has been rated A- by S&P.

“This is a great achievement for our City, and it is because of the leadership and focus of Rob Dubow, Finance Director, Nancy Winkler, City Treasurer and Rebecca Rhynhart, Budget Director and their staffs,” said Mayor Michael A. Nutter.  “This rating upgrade is a true testament and validation of our Administration’s commitment to fiscal integrity and the crucial management of our City’s finances.  The City and our citizens will benefit from this upgrade and we should all be proud of this designation.”

In the S&P release, issued Friday, the rating agency noted, “The upgrade reflects Standard & Poor’s assessment of the city’s progress in restoring its general fund balance through cost containment as well as stronger revenue streams.”

Finance Director Rob Dubow said, “We are excited for the upgrade.  It’s a validation that we took the needed steps to manage through the great recession.  At the same time, it’s clear that there’s more we need to do as we’re still among the lowest rating large cities.”

S&P credit analyst Hilary Sutton noted in the release that “economic diversification, despite the recession, into more growth-oriented sectors, such as health care, higher education, and services” will “position the City for growth as recovery ensues.”

Philadelphia, June 12, 2013 – The Philadelphia Department of Human Services (DHS) is the recipient of the 2013 United Nations Public Service Award, Second Place, for improving the delivery of public services in the European and North American region. More than 600 organizations from 82 countries submitted applications for a United Nations Public Service Award.  DHS is one of 47 organizations to be recognized and the only North American entity selected for the 2013 United Nations Public Service Award.

“The Department of Human Services is committed to protecting and serving Philadelphia’s children.  Over the last six years, DHS has made critical, systemic changes to improve the way it provides services and strengthen its accountability,” said Mayor Michael A. Nutter.  “Our DHS staff, the independent Community Oversight Board, our community-based partners and Commissioner Anne Marie Ambrose have worked together to transform the Philadelphia Department of Human Services.  DHS is truly deserving of this prestigious award.”

DHS received the award for demonstrating excellence in serving the public interest. The award recognizes the transformation of DHS over the past six years, including the recent implementation of its Improving Outcomes for Children initiative (IOC), a groundbreaking, family-centered neighborhood-based approach to child welfare.  The structural and programmatic reforms by DHS have been instituted to increase accountability, improve processes and enhance child welfare and well-being.

Commissioner Anne Marie Ambrose added, “We are honored to receive this award, and we have much more work to do to ensure the safety and well-being of Philadelphia’s children. I thank all of our partners in supporting the transformation of the Department of Human Services.”

DHS was nominated for the award by Casey Family Programs with recommendations submitted by the Annie E. Casey Foundation and Supreme Court of Pennsylvania Justice Max Baer.

Deputy Mayor for Health and Opportunity Donald Schwarz said, “I would like to thank our partners in our ongoing effort to improve the Department of Human Services. Foundations such as Casey Family Programs and the Annie E. Casey Foundation understand the importance of making these investments in our most vulnerable youth. Justice Baer and Judge Dougherty have collaborated to reduce the number of children in foster care and increase adoptions and the uniting of families. I would like to thank each of our partners without whom the tremendous transformation of DHS would not be possible.”

William Bell, President and CEO of Casey Family Programs, added, “Casey Family Programs is honored to congratulate Mayor Nutter and the City of Philadelphia on this prestigious award.  This is one more affirmation that children in Philadelphia are in good hands.”

The award will be presented at the United Nations Public Service Forum Day and Awards Ceremony in Manama, the Kingdom of Bahrain, from June 24 to 27, 2013. This year, 47 public organizations from 28 countries will be awarded with the most prestigious recognition of excellence in public service solutions. Over 700 international and regional participants are expected to attend the awards ceremony, including high-level United Nations officials and representatives of the Kingdom of Bahrain, as well as Heads of State and Government, ministers, senior government officials, mayors, and representatives from civil society, academia, the private sector, and international and regional organizations.

The UN Public Service Awards is the most prestigious international recognition of excellence in public service. It rewards the creative achievements and contributions of public service institutions that lead to a more effective and responsive public administration in countries worldwide. Through an annual competition, the awards program promotes the role, professionalism and visibility of public service and public service solutions.

The Program is managed by the Division for Public Administration and Development Management (DPADM) of the United Nations Department of Economic and Social Affairs (UNDESA) in collaboration with the United Nations Office on Drugs and Crime (UNODC) and the United Nations Entity for Gender Equality and the Empowerment of Women (UN-WOMEN).

For more information, see http://www.unpan.org/2013unpsa.

“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.

“The Department of Licenses and Inspections is committed to building and construction safety and to the safety of all citizens in the City of Philadelphia,” said Licenses and Inspections Commissioner Carlton Williams.

The Department inspected on June 5, 2013 all four construction and demolition sites connected to Griffin Campbell Construction, the demolition contractor at the 2136-38 Market Street site.  These inspections uncovered building construction violations at two sites, at 1300 Walnut Street and 320 Butler Street.  The violations at 1300 Walnut related to electrical and plumbing work being performed without proper permits and work not being the same as the work detailed on the building permit.  The violations at 320 Butler related to work exceeding the scope of the interior demolition permit.  The Department issued Stop Work Orders and suspended work at both sites.  Inspections at two other sites at which Griffin Campbell Construction has obtained a permit did not uncover any violations.  Citizens living or working near all of these properties can be assured that the Department is closely monitoring these sites.

“The Department will continue to be proactive in ensuring the safety of all private construction and demolition sites throughout the City,” Williams said.

The Department is also undertaking proactive inspections of all active private demolition sites throughout the City.  There are approximately 300 open demolition permits issued by the Department since 2009, approximately 100 of which were issued in 2013.  As of June 6, 2013, the Department has inspected approximately 10 percent of these sites.  These inspections are expected to be completed by next week.  Citizens living or working near active private demolition sites should be assured that the Department will be conducting thorough investigations and speaking with all contractors to ensure that there are no violations at the sites.

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.

His prepared remarks follow, check against delivery:

“Greater Philadelphia is the 5^th largest metropolitan area in the United States of America.  Philadelphia is essential to the economic growth of Pennsylvania, and high quality education is essential to a skilled and competent work force.    One in every 11 children in Pennsylvania – nearly 200,000 students – attends a Philadelphia public school.

“Under the leadership of Superintendent Dr. Hite and the School Reform Commission, the Philadelphia School District has been putting its house in order and gaining national recognition for successful reforms, including the expansion of high-performing charter and district schools as well as turnarounds of low-performing schools.

“However, despite this progress, the public education system in Philadelphia is underfunded, and the School District currently faces a $304 million structural deficit. This hurts all public school students—district and charter alike.  We have seen dramatic growth in the number of charter schools since the first 4 charters opened in 1997.  And we anticipate that nearly 60,000 of the 200,000 Philadelphia School District students will be educated in a charter school next year – that is nearly 30% of our public school population.

“High-quality charters have become a vital part of our public education landscape.  In the last 10 years, our high school graduation rate has improved by 20%.  High-performing charter schools have played an enormous role in those gains.  Charter schools have been, and will continue to, play an important role in the diverse array of public school options here in Philadelphia.  However, if we do not address the crippling budget deficit we have in front of us, Philadelphia’s charter schools could see a 12% cut in funding next year.  This is on top of an already drastic 7% cut this year. This continued funding reduction will negatively affect all charter schools and will dramatically impact some smaller community-based charter schools.

“Charter schools are already feeling the brunt of these fiscal challenges.  This year, twenty-one charter schools applied for enrollment expansions.  None of those requests were granted—meaning thousands of children remain on waiting lists.  It is imperative for charters that the District secures new revenue and achieves fiscal stability to provide for more high-quality District and charter seats.

“In the meantime, the City and the District have made, and will continue to make, the difficult decisions needed to right-size the district, reduce administrative staff as well as secure and pursue reductions in personnel costs through a professionalized contract.  We will continue to close underutilized buildings while seeking to reduce the number of children in chronically poor performing schools. Every child in Philadelphia deserves a high quality education…every child.

“Charter and District schools and more importantly, their families, are hurting. That is why charter schools are committed to working with me and the District, senators and state representatives and Dr. Hite and all of us for more City and State dollars to fund all of our public schools.

“I want to take a moment to thank the members of the Philadelphia Great Schools Compact – our citywide commitment to high quality schools.  The Compact has paved the way for unprecedented level of collaboration and partnership between two sectors of public education that have not always worked well together. I want to acknowledge that group for its leadership and commitment and dedication because they are showing what everyone needs to show—which is that the only issue here, the only group that really matters is not the adults—it is our children.

“Adults need to learn how to work together on behalf of our children and actually resolve the immediate financial crisis and provide a path. This is very important.

“So one of the things we hear is that year after year after year the District comes asking for money.  Well you’re right, because year after year after year the District doesn’t get what it has asked for, and when you shortchange someone, they have to come back year after year after year.

“This year is different. The request that’s being made—the $304 million gap—actually brings structural, financial stability to the School District in their five year plan, which now for the first time they put forward a five year plan that is really balanced for all five years.  That is why we need fill this gap right now so we’re not back here year, after year, after year.

“These ‘asks’ are an interrelated package, as has been mentioned:

• $60 million from the City;
• $120 million from the State;
• Financial cost reductions and a professionalized contract for teachers and principals; and,
• A weighted, enrollment-driven funding formula that is based on student need.

“If this package is secured, this entire package will bring the District to fiscal balance in a five year plan.  It is very, very important to emphasize that point.  This is the moment to solve this crisis so we’re not back here year after year after year. It is time to take a step to the next level.

“I’d like to focus on the funding formula for a moment.  This formula is not just about what’s fair for Philadelphia, but basically if you talk to residents outside of the city of Philadelphia—in the House, in the Senate, Democrats, Republicans—increasingly folks tell me to recognize that it’s not just about Philadelphia, but for every school district. All 500 school districts across the Commonwealth of Pennsylvania need a change in the funding formula.  Dozens of school districts are suffering financially as a result of the current formula that is in place now. This is not just a Philadelphia issue.

“This formula is essential to the long-term financial stability and academic outcomes of our children’s education.  According to a recent study, Pennsylvania is one of only three states in the United States of America that doesn’t fund its own school districts based on the actual number of public school students who are served.

“I am proud to say that the City of Philadelphia has increased its local contribution in educating our children by $90 million annually—and I recognize that we are asking City leaders to make another heavy lift.  The bottom line is that we cannot and will not let our schoolchildren down. This is our responsibility as adults to look after our children.

“I am looking for support here in Harrisburg for my proposed package, which will raise that $95 million in City funds for schools. It includes:

• Increasing the liquor-by-the-drink tax from 10% to 15%, resulting in $22 million generated;
• Establishing a $2 per pack cigarette tax, resulting in $45 million generated; and
• Improving the collection of delinquent taxes, resulting in $28 million generated.

“We call on our state legislators in both the House and the Senate as well as Governor’s office to:

• Provide $120 million in new funding for Philadelphia public schools;
• Pass legislation that authorizes the City to increase the liquor tax, allow us to establish a cigarette tax and to go after tax delinquents more aggressively; and
• Create a bipartisan commission to establish a fair and equitable funding formula that is based on enrollment and students needs.

“We must do this for our children and for their future.  Thank you.”

The School Reform Commission fulfilled its fiscal duty by approving a $2.4 billion budget Thursday evening, but no responsible adult can support the destructive level of cuts, more than $300 million, that this budget would require. I fully support Superintendent Hite’s view that losing art and music programs, after-school programming, and critical staff like assistant principals, guidance counselors, secretaries and others will turn our schools into holding areas for our young people; schools in name only.

We can avert this terrible threat to our children and their future if we focus on three critical issues. First, we must strongly support passage in Philadelphia City Council and the Pa. General Assembly of the proposed revenue package that includes increasing the liquor tax and creating a cigarette tax in Philadelphia. Second, we must urge the State to increase its level of support for the education of Pennsylvania children here in Philadelphia and across the state. And third, we must support the School District’s efforts to redesign teacher work rules to reduce costs and enhance the education environment for our children.

With this added revenue and work rule changes, the School Reform Commission can amend its budget next month and prevent the worst educational outcome in our recent history. For these critical changes to happen, we need all of Philadelphia to come together – parents and students, taxpayers and business, religious and community leaders – and let our elected officials know that this school budget is not an acceptable reality for our city’s children and that added funding can prevent these outrageous reductions.

We are at a critical point in the history of our City and State, moving toward a more technologically advanced future. We must not let our children down. We must prepare them to compete in a global economy. Now is the time for action. Our children and our City need your voices to be heard and for you to be engaged in this fight for the future of our City – educating our young people!

“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.”