Council, Mayor Debate Action on Financial System

City officials debated the future of Pittsburgh’s outdated financial data system in Council Chambers today, with much of the discussion hinging on the receipt of state funds.

Everyone agrees that Pittsburgh’s PeopleSoft financial system has been outdated for as long as ten years, but there is no consensus on how to replace that system.

One option is for the city to merge its system with Allegheny County’s. Controller Michael Lamb says that deal would cost about $5 million up front, but the administration estimates an immediate $8 million plus $4 million in annual fees.

Mayor Luke Ravenstahl says Pittsburgh should pursue a less expensive choice if the city doesn’t receive $9 million from the state, which has been pending since the 2008 sale of the Municipal Courts Building.

Ravenstahl says if the city doesn’t receive that money, he’d prefer to issue a request for cheaper proposals.

“Is that going to take longer? Of course it is. The other alternative would be to identify the $8 million needed now, the additional $4 million over the next 5 years in annual costs, and identify that $12-13 million in the budget, and move along, paying for this out of city taxpayers’ pockets,” says Ravenstahl.

Councilwoman Theresa Smith says regardless of state funding, the city should pursue the cheapest option it can, rather than the county deal.

Lamb says he signed a 2008 contract with the County to merge systems, but also that it was contingent on the receipt of $9 million from the state, which hasn’t happened yet.

“There’s obviously been a change in administrations in Harrisburg, and they’re examining everything. I’ve yet to hear anything other than that money is coming through, but I do have the same concerns that the mayor and his administration have, in that ‘Why don’t we have it yet?’ because it’s been years,” says Lamb.

The mayor urged council to join him in requesting the $9 million from state government.

City Council Calls Meeting on City/County Financial Management

Six Pittsburgh City Council members have sponsored legislation that would direct the city to join Allegheny County's comprehensive financial management system--a move favored by state overseers, the county, the city controller—everybody except the mayor. There will be a public, televised meeting attended by all the parties tomorrow at 1:30.

Councilman Bill Peduto says work has been going on for five years to improve the city's current, antiquated system, and the mayor’s preference for a cheaper system with the Pittsburgh Water and Sewer Authority is "crazy" because nowhere in the country is a water and sewer authority in charge of the finances of a city.

The nine million dollar cost to join the county is what a modern system costs, according to Peduto, and will enable savings in such areas as the cutting of payroll checks, which now cost $1.5 million a year to outsource.

Peduto says City Council has the votes to override a mayoral veto.

Mt. Washigton REDD UP

Pittsburgh “REDD UP” crews hit Mt Washington today in preparation for the G20 Summit in September. Pittsburgh Mayor Luke Ravenstahl says apart from downtown, Mt. Washington will be the area most visited by members of the media and visiting dignitaries. As crews cut down weeds and a street sweeper scoured Grandview Avenue the mayor spoke with Mt. Washington Community Development Corporation Executive Director Chris Beichner. Beichner says he has a long list of items he hopes the mayor’s office will attend to before the meeting. Most of them are small items such as a fresh coat of paint on the railing but others, like replacing the streetlights and rebuilding the Bayer sign, are much more labor and capital intensive. Ravenstahl says most of the small items will be taken care of but the other two items have been bogged down in governmental red tape. The street lights were to have been replaced this summer but Ravenstahl says a state contract that was part of the effort has been held up in Harrisburg and efforts by the Bayer Corporation to replace the sign were put on hold thanks to a council passed ordinance prohibiting new signs downtown. That legislation was an outgrowth of the spat between the mayor and several council members over the billboard on the new transportation center. Ravenstahl says the clean up effort on Mt. Washington is getting extra help from volunteers who have stepped forward to help with G20 efforts. He says he hopes to put all those names in a database and then draw on those resources in the future. An army of volunteers was enlisted for the All Star game but those contacts were not saved. Ravenstahl says that will not happen again.

Ravenstahl Reviews G20 Finances, Traffic

Pittsburgh Mayor Luke Ravenstahl updated reporters on finances, traffic and security for September’s G20 summit today at the David L. Lawrence Convention Center.

The mayor says he talked to President Obama and Governor Rendell about reimbursement for the city’s G20 expenses yesterday. He says no deal was set in stone, but federal and state government are now aware of his request for $20 million. Ravenstahl says he’s not sure if Pittsburgh will receive these funds before or after the event, but he’s confident space can be found in either the previous or current budget.

He says Pittsburgh residents and businesses need to stay flexible regarding traffic, because the addition of four cultural landmark destinations in and around the city is sure to exacerbate the already ominous traffic situation.

The mayor says the city is on track to reach its goal of 4,000 police officers to secure the summit.

Mayor Talks Act 47 With Council

Pittsburgh City Council met with Mayor Luke Ravenstahl today to discuss the specifics and the implications of Act 47, the city's proposed five-year economic plan. A vote on the act was held until next Wednesday, June 24th, so that council members and the mayor can think over the plan and assemble any amendments they might wish to make. The plan currently calls for $15 million in revenue that's source is unknown; the mayor made recommendations on filling in that gap to council today. He said that privatizing parking garages is his favorite option, but other options included seeking money from large nonprofit organizations and even raising taxes, as a last resort. The mayor said that his administration outperformed the previous Act 47 ordinance and he doesn't see why that can't happen again. Legislation must be passed by June 30th, in time for the July 1st public safety collective bargaining agreements.

City Council Waits on Five-Year Plan

A vote on the city's five-year budget plan was again delayed by Pittsburgh City Council today, by a unanimous vote. This followed a 7-1 vote that Mayor Luke Ravenstahl be compelled to sit in on a council meeting regarding Act 47. Reverend Richard Burgess was the only nay as most of council agreed that the mayor's input and public opinion on Act 47 would be necessary before a vote could be cast.

All members of council voiced their disapproval of the details of the plan. Councilman William Peduto says Act 47 lacks the creative ideas necessary to make Pittsburgh a great city. "We won't go into the red, or if we do, we'll have to raise taxes, which is really the inevitable part of this. But it really doesn't take us to where we need to be as a city. We will strive for mediocrity," says Peduto.

Several of the plan's finer points were unreliable, according to the council. Councilman Patrick Dowd says that the sale or lease of parking garages before the budget deadline is a long shot. The plan also counts on $5 million in revenue each year from non-profit groups; however, Councilman Doug Shields says the city cannot by law make those groups do anything. Additionally, says Shields, support from the state government is highly unlikely. "I'm going to help the country by saving gas and not going to Harrisburg anymore," says Shields.

Burgess, however, fears strong repercussions from the state government if the plan is not passed before the June 30 deadline. "If the Act 47 coordinators recommend to the secretary of the DCED that the city be punished for non-compliance, we will have tens of millions of dollars in state aid and casino moneys withheld," says Burgess.

Councilwoman Tonya Payne says the fiscal problems of the city could be solved if the council urged the state to repeal the bar on a commuter tax for the city. She says commuters use city services as well as city residents, and should have to put in their fair share of money to fund these services.

Pittsburgh Housing Authority Audit Results

The Pittsburgh Controller's Office looked into Housing Authority spending and saw few things that were out of line, after the mayor requested they investigate. However, City Controller Michael Lamb says spending in some sectors could be more cost efficient. Lamb cites employee training, which can be done in-house and in a group, and utilities as their primary areas for improvement. He says spending accounts for approximately 20 percent of their entire budget. He says they did not look into things like capital spending or personnel spending simply because those things were not in the scope of the Mayor Luke Ravenstahl's request.

Lamb also suggests that there be better cooperation between agencies, perhaps between the city and the Housing Authority.

Ravenstahl: Open the Curfew Center

Pittsburgh Mayor Luke Ravenstahl is calling on City Council Members to listen to the citizens and vote on a contract to open a curfew center. The center would be used as a drop off and social service center for youth picked up for violating the city’s curfew laws. Ravenstahl reached a deal with Three Rivers Youth to run a center at 200 N. Dithridge St. in North Oakland earlier this year. The contract comes with a half million-dollar price tag. Council postponed a vote on the deal last month until they could hold a public hearing. That hearing came a week and a half ago and Ravenstahl says the result was clear that the citizens want the center. He says, “This is not something I came up with. This was requested by police and the people who live in the neighborhoods.” The measure could come up for debate Wednesday. Ravenstahl says he originally wanted to open the center May 1st to make sure it was in place and running before the summer when more youth hit the streets after hours. Three Rivers Youth will not only hold the curfew violators but also will give them and their families counseling and connect them with other social service agencies. Ravenstahl says police will not enforce the city’s curfew law until a center is operating. Council President Doug Shields has come out against the center in the past and Bill Peduto and Jim Motznik are on record as being in favor of curfew enforcement. It is unclear if there are enough votes on council to pass the measure.

Officials Discuss Why Merger Is Stalled

Local and state government officials disagree over why a proposed merger of the city of Pittsburgh and Allegheny County has stalled. Fourteen months ago Mayor Luke Ravenstahl and County Executive Dan Onorato called for the consolidation with the other 129 municipalities in the county remaining independent. About 200 people attended a forum in Pittsburgh yesterday to hear why the idea has not moved forward. Onorato said the city and county need the General Assembly to pass legislation allowing for local voters to cast ballots on a merger. Onorato said he would write the bill but state lawmakers don't want him and Ravenstahl doing their jobs. Some state lawmakers told the forum that local officials aren't ready.

Shields Questions Mayor's Motivation

Pittsburgh City Council President Doug Shields wonders why Pittsburgh Mayor Ravenstahl vetoed the campaign finance reform bill passed by council last year but is now introducing his own bill. He says he wonders what is motivating the mayor. He speculates that it may have something to do with “a run of pay to play stories” that painted the mayor in a bad light. Shields says he does not have a big problem with the proposed legislation but he wonders why the limits need to be higher than the limits set by the council. He says as he understands it the bill would allow incumbents to raise $18,000 from an individual over a single 4-year term. He says he also wonders why there needs to be the millionaire exemption. He says history shows millionaires do not run for city office. He says they would rather just buy a candidate and expect them to do what he or she wants.

Onorato and Ravenstahl want Campaign Finance Reform

By the end of the week the Pittsburgh City Council and the Allegheny County Council will both be considering identical campaign finance limits laws. The county executive and the mayor will submit identical bills Thursday. The measure would cap yearly campaign contributions at $4,600 for individuals and $10-thousand for political action committees. However, federal courts have ruled that it is impossible to limit a candidate’s own spending, so if a candidate plans to “self-fund” a campaign, they would have to check a box on their registration form lifting the limits for anyone in that race. Pittsburgh Mayor Luke Ravenstahl says any candidate checking the self-fund box would come under close scrutiny. He says if they were doing it simply to get around the caps or to allow other candidates to get around the caps the public would be able to see through the rouse. County Executive Dan Onorato says the check-off box is needed to make sure a candidate does not dump a million dollars into a campaign in the final weeks of the race when the other candidate can not possible recover. Ravenstahl says he thinks it is important that both the city and the county have the same law and he hopes the state will follow suit. The caps would not go into effect until 2010. The figures were set based on half of the two year federal limits and would change as the federal limits change. Currently there are no limits on campaign contributions in the city.

City Council Overrides Vetoes

Pittsburgh City Council has voted to override two line-item vetoes at their meeting this morning after Mayor Luke Ravenstahl submitted them late yesterday. The two budget items are to have a special lawyer for city legislators and to provide video of council meetings on the Internet. Ravenstahl’s message said these things would've cost more than $120,000 combined.

But City Council President Doug Shields says his submission was too late. The mayor had 10 days to either approve or reject the bills that were submitted to him. Shields says Ravenstahl received the bills on Dec. 19, and then sent the vetoes to council Dec. 29 at 4:32pm, two minutes after the Clerk’s Office closed. Shields says he was surprised by the mayor's last-minute action. Council voted 7 to 1 on each ruling, with Councilman Jim Motznik voting against each override.

Bureau of Building Inspection makes changes

Pittsburgh's Bureau of Building Inspection (BBI) has a new chief and will be undergoing many changes starting in January. Mayor Luke Ravenstahl said he wants the BBI to be more effective in what they do in order to better serve the community. Ravenstahl named Sergei Matveiev as the new chief of the bureau. There will be changes in code inspection. It will be an integrated process. Also, inspectors will be provided with much-needed tools, including handheld computers and bureau-provided vehicles. New inspectors will take proper training classes, and older inspectors can also take classes to be better trained in what they do. The costs to provide all of this is expected to exceed $1 million, but Ravenstahl believes "it's a worthwhile investment."

Ravenstahl Shines Light on Contracts

Pittsburgh Mayor Luke Ravenstahl has created the “Pittsburgh Contracting Best Practices Commission” with the charge tat it study the city’s contract and bidding system. The Mayor has filled it with not only members of the administration and city council but also executives from the private sector. He says it is important to have that third party prospective. Ravenstahl says this is not a result of the recent controversy involving contracts let by the urban redevelopment authority but he wants to make sure questions brought up then are not brought up again. Ravenstahl says he will implement all the recommendations from the commission even if it includes campaign donation disclosure rules similar to the ones that prompted him to veto a council bill earlier this year. Ravenstahl has already signed an executive order requiring a justification form to be filed out every time a contract is awarded and that the forms be posted on the Internet. The commission is expected to meet in the next 30 days and issues a report within 6 months. Ravenstahl says he hopes the commission will also look at ways to open the contract process to more new bidders including companies owned by minorities and women.

Ribbon Cutting at new Greyhound bus station

This morning's ribbon cutting marked the grand opening of the new Greyhound station, and also opened almost 1000 new parking spaces. The Grant Street Transportation center will not only house the Greyhound bus station, but will also have two parking garages to accommodate business relocations to downtown and relieve parking pressure from the Strip District surface lots. Mayor Luke Ravenstahl says it will be a gateway from the Strip District to downtown, and the project will key into the revitalization to Downtown Pittsburgh. Ravenstahl says weekday parking rates are 20 percent cheaper than the average price charged by prvate vendors, and 37 percent cheaper for event parking rates.

The center is located between the Convention Center and the Strip District.

City of Pittsburgh's 2009 Budget Announced

The 2009 Pittsburgh City Budget was released today with an expenditure amount of $439.9 million, up about $16 million from 2008. Projected revenues also are expected to increase from $436.8 million in 2008, to $443.4 in the coming year--all without a tax hike. The city expects revenues to exceed expenditures by about $3.5 million. This money will be used as part of a plan to reduce Pittsburgh's debt by 40 percent over the next 5 years.

The budget also cuts 65 vacant city administrative positions and plans to put 40 more police officers on the street by training civilians to fill administrative duties formerly held by officers.

It also plans on $2.4 million in casino revenues. Mayor Luke Ravenstahl's Chief of Staff Yarone Zober says in the future, Pittsburgh can likely count on $10 million annually from the casino, but because of the delays in construction, it will likely deliver far less in 2009.

In an effort to control unfunded pension, the budget also ups the mandatory minimum payment to the city pension fund by 15 percent.

The Mayor is also currently negotiating payments in lieu of taxes for the Pittsburgh Non-Profit Service Fund and he is confident that their three-year commitment will be of equal or greater value than it has been in the past.

The Intergovernmental Cooperation Authority (ICA), a state oversight group, has 30 days to request changes to the budget before it is presented to City Council November 10th.

Mayor Advises Council to Head for City Ethics Board

Mayor Luke Ravenstahl commented last week that the 4 council members who walked out of a vote last week because of a potential conflict of interest should voluntarily take their case to the city's Ethics Board. William Peduto, Ricky Burgess, Doug Shields, and Bruce Kraus excused themselves from voting on whether the city should pay for a $10, 706 legal bill incurred when they sought another legal opinion regarding the Lamar Advertising downtown billboard conflict. An opinion from the city solicitor's office says the bill was a personally incurred expense, and discussing it in council, let alone voting on it, would create a conflict of interest.
The mayor offered advice from his own experience. Last summer, he went before the board after accepting a $9,000 ticket for a charity golf outing, courtesy of the Penguins and the University of Pittsburgh Medical Center. He says he doesn't think the council members knowingly did any wrong, and they would have a chance to state their case, like he did. He's glad that Councilman Burgess invited the state ethics board to get involved, and says it's their perogative how to proceed.

Mayor Accepts 1.35 Million Dollar Grant

Today, Pittsburgh Mayor Luke Ravenstahl accepted a $1.35 million grant from the U.S. Fish and Wildlife Service that is designated for the construction of a dock at the planned south shore riverfront park. The grant was made through the Boating Infrastructure Grant program. The project is located between 25Th street and 29Th street in the south side with construction expected to start this summer. The $10.5 million project has received funding from various groups but still needs to raise $2.5 million dollars for the project to reach completion.