HomeMy WebLinkAboutCC 1999-11-10 MinutesCITY OF MIAMI
* INCORY 41RATE
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COMMI'SSION
MINUTES
OF MEETING HELD ON NOVEMBER 10, 1999 (Special Commission Meeting)
PREPARED BY THE OFFICE OF THE CITY CLERK/CITY HALL
Walter J. FoemanlClry Clerk
INDEX
MINUTES OF SPECIAL MEETING
NOVEMBER 10,4999
ITEM NO. SUBJECT- LEGISLATION
1. COMMENTS REGARDING ACCEPTANCE OF CITY 1 l / 10/99
CLERK'S CERTIFICATION AND DECLARATION OF DISCUSSION
RESULTS FROM THE NON PARTISAN PRIMARY 1-3
(DISTRICTS 1, 2 AND 4) AND SPECIAL REFERENDUM
ELECTION ON CHARTER AMENDMENT NUMBERS 1, 2
AND 3.
2. PUBLIC HEARING FOR FINAL COMMENTS ON HUD- 11 / 10/99
RELATED GRANTS AND ON FISCAL YEAR 1999-2000 M-99-839
ANNUAL ACTION PLAN. M-99-840
(A) - PUBLIC HEARING: DISCUSS ISSUES REGARDING R-99-841
STATUS OF FIVE HUNDRED THOUSAND DOLLARS 4-74
($500,000) FOR SINGLE FAMILY RESIDENTIAL•
APPLICATIONS FOR HOME IMPROVEMENT; QUERY
TO ADMINISTRATION REGARDING WHETHER
REHABILITATION GUIDELINES HAD CHANGED
WITHOUT U.S. HUD AND MIAMI CITY COMMISSION'S
CONSENT; QUERY OF THE ADMINISTRATION AS TO
WHY THE CITY HAS NOT FILED A GUARANTY FUND
REPORT TO U.S. HUD; QUERY REGARDING WHY IT
"TAKES SO LONG TO REIMBURSE CONTRACTORS FOR
WORK PERFORMED IN CONNECTION WITH REHAB
WORK.
(B) REQUEST THAT MIAMI CAPITAL DEVELOPMENT
CORPORATION MEET WITH THE CITY ATTORNEY'S
OFFICE REGARDING ALL OF THE LEGAL ISSUES
AFFECTING SAID AGENCY.
(C) DISCUSSION BY ALLAPATTAH BUSINESS
DEVELOPMENT AUTHORITY REGARDING ITS
DISSATISFACTION .WITH THE WAY
REIMBURSEMENTS HAVE NOT BEEN PAID IN TIMELY
PAYMENT OF CHECKS, WHICH, ACCORDING TO SAID
AGENCY, IS INCONSISTENT WITH THE PERCEIVED
PURPOSE OF COMMUNITY BLOCK GRANT FUNDS,
WHICH IS TO ESTABLISH A PARTNERSHIP TO SERVE
THE COMMUNITY - WAIVE PROVISIONS PURSUANT
TO-2-614, CONFLICT OF LAWS PROVISIONS IN THE
CODE ENTITLED "CONFLICT OF LAWS," TO PROVIDE
A WAIVER TO FRANK CASTANEDA, TO APPEAR
BEFORE THE CITY COMMISSION PRIOR TO THE TWO
YEARS' PROHIBITION REGARDING SAME.
(D) REQUEST ADDITIONAL FUNDING FOR CATHOLIC
CHARITIES. .
(E) REQUEST APPROVAL FOR ECONOMIC
DEVELOPMENT PROJECT REGARDING AN EXTENSION
OF THE RFP (REQUEST FOR PROPOSAL). DEADLINE
REGARDING EDGEWATER ECONOMIC DEVELOPMENT
CORPORATION.
(F) DIRECT CITY CLERK TO PROVIDE TRANSCRIPT
REGARDING PUBLIC HEARING AND COMMENTS ON
THE FY-2000 ANNUAL ACTION PLAN TO THE CITY
MANAGER; FURTHER DIRECT CITY MANAGER TO
RESPOND TO ALL QUESTIONS (VERBAL AND
WRITTEN), ENTERED INTO THE PUBLIC RECORD
CONCERNING THE PUBLIC HEARING, ON THIS SAME
DATE, WITH A COPY OF SAID RESPONSES TO THE
CITY COMMISSION - DIRECT THE CITY ATTORNEY TO
DEVELOP AN ORDINANCE WHICH SPECIFIES THAT
ANYTIME A PUBLIC HEARING IS HELD, THAT COPIES
OF THE PUBLIC NOTICE FORM PART OF THE BACK-UP
DOCUMENTATION IN CONNECTION WITH SAID
MEETING - PROVIDE U.S. HUD WITH A COPY OF THE
VERBATIM TRANSCRIPT, ALONG WITH THE
RESPONSES BY THE MANAGER TO AFFECTED
AGENCIES, AS TO THE QUESTIONS PRESENTED
DURING SAID PUBLIC HEARING, UNDER THE JOINT
SIGNATURE OF BOTH CITY ATTORNEY AND CITY
MANAGER - INSTRUCT CITY MANAGEMENT TO
PUBLISH IN ALL NEWSPAPERS A LIST OF PENDING
APPLICATIONS IN CONNECTION WITH SINGLE
FAMILY RESIDENTIAL APPLICATIONS FOR HOME
IMPROVEMENTS, AS WELL AS THE YEAR IN WHICH
THE AFFECTED AGENCIES APPLIED, INCLUDING THE
NAME OF THE SPONSORING AGENCY, AND ANY
OTHER INFORMATION AVAILABLE UNDER THE
PUBLIC RECORDS LAWS OF THE STATE OF FLORIDA;
FURTHER EXTENDING THE CONTRACT APPLICATION
PERIOD FOR AN ADDITIONAL THIRTY (30) DAYS FOR
THOSE INDIVIDUALS WHO ARE DESIROUS OF
APPLYING FOR SINGLE FAMILY RESIDENTIAL HOME
IMPROVEMENT FUNDS - ESTABLISH POLICY THAT
ANY STANDARDS AND GUIDELINES OF FEDERAL
PROGRAMS WOULD BE PUBLIC AND WILL BE
PUBLISHED IN NOT ONLY NEWSPAPERS OF GENERAL
CIRCULATION, BUT ALSO TABLOIDS.
(G) QUERY BY COMMISSIONER SANCHEZ REGARDING
DUE DATE OF THE ACTION PLAN -- WHY ACTION
PLAN WAS TURNED DOWN BY U.S. HUD - DOES THE
PLAN MEET FEDERAL REQUIREMENTS TODAY - HOW
MUCH MONEY IN TOTAL IS IN UNREPRESENTED
PROGRAMMED FUNDS -- AN ELABORATION ON THE
PROCESS INVOLVED WITH CONTINGENCY FUNDS,
WHEREIN TEN (10) PERCENT OF FUNDS IS SET ASIDE
AND NO SPECIFIC PURPOSE FOR ALLOCATION IS
ESTABLISHED.
(H) INSTRUCT THE CITY MANAGER TO DIRECT
COMMUNITY DEVELOPMENT TO PROVIDE A MATRIX
THAT SHOWS WHERE WE ARE FOR THE REMAINING
FIFTEEN (15) MONTHS AS IT PERTAINS TO
COMMUNITY DEVELOPMENT BLOCK GRANT
FUNDING; FURTHER INSTRUCT THE
ADMINISTRATION TO SEPARATE PUBLIC SERVICE
AGENCIES FROM THE REST OF THE AGENCIES
CONTAINED IN SAID FUNDING MATRIX; INCLUDE A
BREAKDOWN OF ECONOMIC, DEVELOPMENT,
HOUSING, HISTORICAL PRESERVATION FUNDING, AS
WELL AS ENCOURAGE THAT ALL REQUESTS FROM
ANY AGENCY BE SUBMITTED. IN WRITING AND
SUBSEQUENT ANSWERS TO SAME BE PROVIDED
WITHIN A TIME FRAME OF NO MORE THAN TWENTY
(20) DAYS, WITH COPIES TO THE COMMISSION AND
MEMBERS OF THE PUBLIC, UPON REQUEST.
(I) DIRECT THE CITY MANAGER TO INSTRUCT EITHER
THE EXTERNAL AUDITOR OR DIRECTOR OF
DEPARTMENT OF INTERNAL AUDIT TO REVIEW THE
MIAMI CAPITAL DEVELOPMENT CORPORATION'S
REPORT, UPON COMPLETION OF INVESTIGATION BY
THE DEPARTMENT OF COMMUNITY DEVELOPMENT,
AND COME BACK BEFORE THE CITY COMMISSION
WITH PRELIMINARY RECOMMENDATIONS BY
NOVEMBER 16, 1999; FURTHER INSTRUCTING THE
ADMINISTRATION TO PLACE SAID ITEM ON THE
AGENDA AS A DISCUSSION ITEM - ACCEPT
MANAGER'S RECOMMENDATIONS IN CONNECTION
WITH CONSOLIDATED PLAN, ALONG WITH THE FY 99-
2000 ANNUAL ACTION PLAN.
3. DIRECT CITY MANAGER TO SCHEDULE FOR
NOVEMBER 16, 1999, THE IMPLEMENTATION
SCHEDULE OF THE HAGLER MARKETPLACE, AND
DISCUSSION REGARDING PENDING LEGISLATION OF
THE COMMUNITY REDEVELOPMENT AGENCY (CRA),
AND ANY OTHER PENDING LEGISLATION.
ACKNOWLEDGE AND COMMEND DENA BIANCHINO,
ASSISTANT CITY MANAGER, ON HER
PROFESSIONALISM DURING HER TENURE WITH THE
CITY, ON THE OCCASION OF HER LAST MEETING
REPRESENTING THE CITY MANAGER'S OFFICE,
RESULTING FROM ACCEPTANCE OF EMPLOYMENT
OUTSIDE THE CITY OF MIAMI GOVERNMENT.
1 1 / 10/99
DISCUSSION
74-75
11 / 10/99
DISCUSSION
75
MINUTES OF SPECIAL MEETING OF THE
CITY COMMISSION OF MIAMI. FLORIDA
On the loth day of November 1999, the City Commission of Miami, Florida, met at its regular meeting
place in the City Hall, 3500 Pan American Drive, Miami, Florida in regular session.
The meeting was called to order at 9:33 a.m. by Presiding OfficerNice Chairman Wifredo Gort, with the
following members of the Commission found to be present:
Commissioner Wifredo Gort (District 1)
1
Commissioner Johnny L. Winton (District 2)
Commissioner Joe Sanchez (District 3)
Commissioner Tomas Regalado (District 4)
Commissioner Arthur E. Teele, Jr. (District 5)
ALSO PRESENT
Donald Warshaw, City Manager
Alejandro Vilarello, City Attorney
Walter J. Foeman, City Clerk
Maria J. Argudin, Assistant City Clerk
I. COMMENTS - REGARDING ACCEPTANCE OF CITY CLERK'S CERTIFICATION AND
DECLARATION OF RESULTS FROM THE NON PARTISAN PRIMARY (DISTRICTS 1, 2 AND 4)
AND SPECIAL REFERENDUM ELECTION ON CHARTER AMENDMENT NUMBERS 1 2 AND 3.
Vice Chairman Gort: Mr. Attorney, could this be continuation of the meeting we began earlier or do we
need to open up again since this is a special meeting?
Mr. Alejandro Vilarello (City Attorney): You have to re - this is a new and special meeting, a special call.
You do not have to go through the invocation and the pledge of allegiance again, then.
Vice Chairman Gort: We've already done that. OK. Good morning everyone. Thank you for being here.
Mr. Manager?
Mr. Donald Warshaw (City Manager): Good morning, Commissioners. The purpose of this special
meeting is to solicit and.listen to additional public input regarding the City's 1999/2000 Consolidated Plan.
As required, and...
Commissioner Teele: Excuse me. Mr. Chairman, I thought we had a 9 o'clock call to ratify the election.
Vice Chairman Gort: We already did that.
Commissioner Sanchez: I wasn't here.
November 10, 1999
Commissioner Teele: I wasn't here.
Vice Chairman Gort: We called you all at 9 o'clock. You want to go through it again. we'll go through it
again?
Commissioner Teele: No. If you got three votes, and it's ratified...
Vice Chairman Gort: Yes, we did. It's all been ratified. But if you guys would like to go through it again...
Commissioner Teele: No, that's fine. Happy to know that the people who were all on the ballot ratified the
election.
Vice Chairman Gort: I guess we wanted to make sure they got ratified right away and we didn't have
anymore problems,.we taken to court or anything like that. Commissioners...
Commissioner Teele: If the attorney didn't have a problem with it, I don't have a problem with it.
Mr. Vilarello: No, sir. And the question was asked, off the record, and 1 advised that they — it's a
ministerial act and all individuals had been sworn in and given their oath of office.
Commissioner Sanchez: Congratulations.
Commissioner Teele: Congratulations. Mr. Chairman, I just think this is something that perhaps should
have been done with five Commissioners and, perhaps,.it's something that will be reviewed by the courts in
that you ratified...
Vice Chairman Gort: Look, we'll be...
Commissioner Teele: ...an item that we all know is going to go to court.
Vice Chairman Gort: We'll be more than glad to go through it again.
Commissioner Teele: Only item number -- the only one I'm interested in ratifying is...
Vice Chairman Gort: Mr. Clerk?
Mr. Vilarello: That meeting...
Commissioner Winton: Mr. Chairman?
Mr. Vilarello: ... was called an adjourned. We can certainly bring it back...
Commissioner Winton: Mr. Chairman?
Mr. Vilarello: ... on the 16th for ratification.
Vice Chairman Gort: Yes, Mr. Winton.
Commissioner Winton: By the way, the meeting was called to order late, at 5 after 9, and the Chairman did
ask for attendance of all five Commissioners and they weren't here. So, the three that were here did start -
2 November 10, 1999
actually, started late.
Vice Chairman Gort: The ? let's take five minutes. Do I have a motion to...
Commissioner Teele:.I don't'have to - look, I don't — I'm not complain...
Vice Chairman Gort: What do you need?
Mr. Vilarello: Commissioner, that - the special...
Commissioner Teele: Let me be clear. I'm not complaining about not being here. I'm only wanting to
ensure that the record is straight, as you go up on appeal. And if the attorney has done it, I would like to
move on to the next item, then, because I'm not at all complaining abourthe Commission doing what it did.
Vice Chairman Gort: Mr: Attorney?
Mr. Vilarello: Commissioner, there was a special call of a meeting this morning. That meeting was held
and adjourned. This is a special called meeting. It's limited to the subject matter of the special call.
Vice Chairman Gort: What actions do we need to do?
Mr. Vilarello: We can certainly bring back on the 16th a resolution ratifying what the Commission did this
morning.
Vice Chairman Gort: You cannot do it now?
Mr. Vilarello: No, sir.
3 'November 10, 1999
2. PUBLIC,HEARING FOR FINAL COMMENTS ON HUD -RELATED GRANTS AND ON FISCAL
YEAR 1999-2000 ANNUAL ACTION PLAN.
(A) PUBLIC HEARING_ : DISCUSS ISSUES REGARDING STATUS OF FIVE HUNDRED
THOUSAND DOLLARS ($500,000) FOR SINGLE FAMILY RESIDENTIAL APPLICATIONS FOR
HOME IMPROVEMENT; QUERY TO ADMINISTRATION REGARDING WHETHER
REHABILITATION GUIDELINES HAD CHANGED WITHOUT U.S. HUD AND MIAMI CITY
COMMISSION'S CONSENT; QUERY OF THE ADMINISTRATION AS TO WHY THE CITY HAS
NOT FILED A GUARANTY FUND REPORT TO U.S. HUD; QUERY REGARDING WHY IT TAKES
SO LONG TO REIMBURSE CONTRACTORS FOR WORK PERFORMED IN CONNECTION WITH
REHAB WORK.
(B) REQUEST THAT MIAMI CAPITAL DEVELOPMENT CORPORATION MEET WITH THE CITY
ATTORNEY'S OFFICE REGARDING ALL OF THE LEGAL ISSUES AFFECTING SAID AGENCY.
(C) DISCUSSION BY ALLAPATTAH BUSINESS DEVELOPMENT AUTHORITY REGARDING ITS
DISSATISFACTION WITH THE WAY REIMBURSEMENTS HAVE NOT BEEN PAID IN TIMELY
PAYMENT OF CHECKS, WHICH, ACCORDING TO SAID AGENCY, IS INCONSISTENT WITH
THE PERCEIVED PURPOSE OF COMMUNITY BLOCK GRANT FUNDS, WHICH IS TO
ESTABLISH A PARTNERSHIP TO SERVE THE COMMUNITY — WAIVE PROVISIONS
PURSUANT TO 2-614, CONFLICT OF LAWS PROVISIONS IN THE CODE ENTITLED
"CONFLICT OF LAWS," TO PROVIDE A WAIVER TO FRANK CASTANEDA, TO APPEAR
BEFORE THE CITY COMMISSION PRIOR TO THE TWO YEARS' PROHIBITION REGARDING
SAME.
(D) REQUEST ADDITIONAL FUNDING FOR CATHOLIC CHARITIES.
(E) REQUEST APPROVAL FOR ECONOMIC DEVELOPMENT PROJECT REGARDING AN
EXTENSION OF THE RFP (REQUEST FOR PROPOSAL) DEADLINE REGARDING EDGEWATER
ECONOMIC DEVELOPMENT CORPORATION.
(F) DIRECT CITY CLERK TO PROVIDE TRANSCRIPT REGARDING PUBLIC HEARING AND
COMMENTS ON THE FY-2000 ANNUAL ACTION PLAN TO THE CITY MANAGER; FURTHER
DIRECT CITY MANAGER TO RESPOND TO ALL QUESTIONS (VERBAL AND WRITTEN),
ENTERED INTO THE PUBLIC RECORD CONCERNING THE PUBLIC HEARING, ON THIS SAME
DATE, WITH A COPY OF SAID RESPONSES TO THE CITY COMMISSION — DIRECT THE CITY
ATTORNEY TO DEVELOP AN ORDINANCE WHICH SPECIFIES THAT ANYTIME A PUBLIC
HEARING IS HELD, THAT COPIES OF THE. PUBLIC NOTICE FORM PART OF THE BACK-UP
DOCUMENTATION IN CONNECTION WITH SAID MEETING — PROVIDE U.S. HUD WITH A
COPY OF THE VERBATIM TRANSCRIPT, ALONG WITH THE RESPONSES BY THE MANAGER
TO AFFECTED AGENCIES, AS TO THE QUESTIONS PRESENTED DURING SAID PUBLIC
HEARING, UNDER THE JOINT SIGNATURE OF BOTH CITY ATTORNEY AND CITY
MANAGER — INSTRUCT CITY MANAGEMENT TO PUBLISH IN ALL NEWSPAPERS A LIST OF
PENDING APPLICATIONS IN CONNECTION WITH SINGLE FAMILY RESIDENTIAL
APPLICATIONS FOR HOME IMPROVEMENTS, AS WELL AS THE YEAR IN WHICH THE
AFFECTED AGENCIES APPLIED, INCLUDING THE NAME OF THE SPONSORING AGENCY,
AND ANY OTHER INFORMATION AVAILABLE UNDER THE PUBLIC RECORDS LAWS OF
THE STATE OF FLORIDA, FURTHER EXTENDING THE CONTRACT APPLICATION PERIOD
FOR AN ADDITIONAL THIRTY (30) DAYS .FOR THOSE INDIVIDUALS WHO ARE DESIROUS
OF APPLYING FOR SINGLE FAMILY RESIDENTIAL HOME IMPROVEMENT FUNDS —
ESTABLISH POLICY THAT ANY STANDARDS AND GUIDELINES OF FEDERAL PROGRAMS
WOULD BE PUBLIC AND WILL BE PUBLISHED IN NOT ONLY NEWSPAPERS OF GENERAL
CIRCULATION. BUT ALSO TABLOIDS.
4 November 10, 1999
(G) QUERY BY COMMISSIONER SANCHEZ REGARDING DUE DATE OF THE ACTION PLAN --
WHY ACTION PLAN WAS TURNED DOWN BY U.S. HUD — DOES THE PLAN MEET FEDERAL
REQUIREMENTS TODAY -- HOW MUCH MONEY IN TOTAL IS IN UNREPRESENTED
PROGRAMMED FUNDS -- AN ELABORATION ON THE PROCESS INVOLVED WITH
CONTINGENCY FUNDS, WHEREIN TEN (10) PERCENT OF FUNDS 1S SET ASIDE AND NO
SPECIFIC PURPOSE FOR ALLOCATION IS ESTABLISHED.
(H) INSTRUCT THE CITY MANAGER TO DIRECT COMMUNITY DEVELOPMENT TO PROVIDE
A MATRIX THAT SHOWS WHERE WE ARE FOR THE REMAINING FIFTEEN (15) MONTHS AS
IT PERTAINS TO COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING; FURTHER
INSTRUCT THE ADMINISTRATION TO SEPARATE PUBLIC SERVICE AGENCIES FROM THE
REST OF THE AGENCIES CONTAINED IN SAID FUNDING MATRIX; INCLUDE A
BREAKDOWN OF ECONOMIC, DEVELOPMENT, HOUSING, HISTORICAL PRESERVATION
FUNDING, AS WELL AS ENCOURAGE THAT ALL REQUESTS FROM ANY AGENCY BE
SUBMITTED IN WRITING AND SUBSEQUENT ANSWERS TO SAME BE PROVIDED WITHIN A
TIME FRAME OF NO MORE THAN TWENTY (20) DAYS, WITH COPIES TO THE COMMISSION
AND MEMBERS OF THE PUBLIC, UPON REQUEST.
(I) DIRECT THE CITY MANAGER TO INSTRUCT EITHER THE EXTERNAL AUDITOR OR
DIRECTOR OF DEPARTMENT OF INTERNAL AUDIT TO REVIEW THE MIAMI CAPITAL
DEVELOPMENT CORPORATION'S REPORT, UPON COMPLETION OF INVESTIGATION BY
THE DEPARTMENT OF COMMUNITY DEVELOPMENT, AND COME BACK BEFORE THE CITY
COMMISSION WITH PRELIMINARY RECOMMENDATIONS BY NOVEMBER 16, ' 1999;
FURTHER INSTRUCTING THE ADMINISTRATION TO PLACE SAID ITEM ON THE AGENDA
AS A DISCUSSION ITEM — ACCEPT MANAGER'S RECOMMENDATIONS IN CONNECTION
WITH CONSOLIDATED PLAN, ALONG WITH THE FY 99-2000 ANNUAL ACTION PLAN.
Vice Chairman Gort: OK. Mr. Manager.
Mr. Donald Warshaw (City Manager): The purpose of this meeting is to allow the Commission to hear
additional public input regarding the adoption of the City's Consolidated Plan for 1999/2000. HUD
(Department of Housing and Urban Development) has informed the City that there were certain members of
the public who had reached out to them, stating that they hadn't have an opportunity to express their feelings
to the Commission. So, in order for us to satisfy HUD's requirements, they told us we needed to have this
additional public hearing input and that's basically the purpose of this meeting. This is a plan that had been
previously adopted by the Commission back in, I think, October.
Vice Chairman Gort: OK. Do the Commissioners like to hear first from the public or they would like to
hear from the presentation from staff?
Commissioner Regalado: Mr. Chairman?
Vice Chairman Gort: Yes.
Commissioner Regalado: We did approve that but when we approved that, it was on the record that this
Commission could change that Plan. So, we have the right and the duty - and we can do it today. This is —
Mr. City Attorney, is this a public hearing?
Mr. Alejandro Vilarello (City Attorney): This is a public hearing.
Commissioner Regalado: OK. So, we can change any funding that we feel needs to be changed?
November 10, 1999
Mr. Vilarello: This Commission has already adopted the Consolidated Plan. This is a public hearing to
hear input from the public. If, at the conclusion of the public hearing. this Commission feels that there's a
need to modify the Consolidated Plan before it is resubmitted to HUD, this City Commission has that right.
Commissioner Regalado: OK.
Vice Chairman Gort: OK. Is the wish - I think we've all heard about the Plan. 1 think the agencies have
gone into the Five -Year plan, and what I would like to do for the - is hear from the public and 1 would like
for us to take notes and for staff to take notes and be able to answer some of the questions that will come out
from the public hearings.
Commissioner Teele: Mr. Chairman, may I ask that the staff make copies of the Five -Year Plan, as
approved, available to every - to the Commission and to any member of the public that may require one?
Vice Chairman Gort: OK. Thank you. So, we'll hear that. We'll hear from the public first and, then, what
I'd like for staff to take notes and be able to answer the questions that - whatever comments that will come
up during the public presentation. Public, you're welcomed to come up and make your presentation.
Speakers?
Ms. Marielena Fernandez: May I?
Vice Chairman Gort: Yes.
Commissioner Sanchez: Let's not all get up at once.
Ms. Fernandez: Do I press...
Vice Chairman Gort: Let me ask a question before you start. How many speakers are we going to have?
How many people — those of you who would like to speak, would you raise your hand, please? OK. Thank
you. Go ahead.
Ms. Fernandez: OK. Let me take a minute to introduce myself. My name is Marielena Fernandez. I'm the
owner and general contractor of Sunshine Investments and Builders. I have been working for the
Community Development, the Single Family Rehab since 1994. Before that, I used to be an inspector for
the HUD program at Metro -Dade County or seven years. So, what I'm going to ask, I'm very familiar how
this program runs and the things that's been going on in that office. Back in September 20, 1999, I wrote a
letter to .the Commissioner and I asked the City Commission to help us regarding the delay of the process of
these cases. I never got an answer from anyone. About a week ago, I got a letter from the City Manager and
that letter did not really quite satisfy me, what I wanted to know. And I kept on asking questions and I kept
on making endless calls to the City, which I never get a return call from no one. From the Director's office,
from Assistant Directors, my calls are never returned, unless I show up without an appointment. Then, they
have no other choice but to see me. Back in September I also find out that the Community Development,
Single Family Rehab had a little over five hundred thousand dollars ($500,000) to make closings in the
pending cases, considering in some of these cases are two, three years old. Closes had not been taking place
since June unto a couple of weeks ago, that five cases were brought up and they closed. And - but a couple
of weeks ago, I went back to the same person that gave me the information about the five hundred thousand
dollars ($500,000) and told me that it was no money left; that they had used this five hundred thousand
dollars ($500,000) for some other things. One of my questions is, why this money was used for other
things, when it was meant by HUD to be used for all these people that need these houses to be repaired?
We're talking about people in wheelchairs; we're talking about people that are on dialysis machines; they
have no indoor plumbing, no electrical, and their roofs are collapsing. Now, I would like to get an
6 November 10, 1999
explanation, where this five hundred thousand dollars ($500,000) went to and why? My next question is
why the Single Family Rehab guidelines were changed without the approval of the Commissioners and
HUD? And even though that they changed them without your approval and HUD, these new guidelines
took place - and they're -..working with these new guidelines. I am sick and tired of asking Mr. Rafael
Rodriguez for the new -Tor copies of the new guidelines and he's been telling me that "Sofie is typing
them." It's been going on for four months. I type with two fingers and I could have typed these guidelines
five times over. Every time that I go to the City, it's a dead-end. Nobody returns my calls. When I tried to
get paid from the jobs that I'm doing, it takes over two, three weeks and I have to end up calling Mr. Dan
Fernandez to be able to get my money out of - over work that I have invested of my time and my money on.
Now, my other question is, why the people that used to run this program so well, as like Meki Mandresa
(phonetic) and Diana Cresca (phonetic) have no saying here anymore? All these new people came in. They
don't know what they're doing. They're running their program as tJtey please and they don't get - and we
never get an answer. The clients cannot get in touch with none of these people. This is federal money.
This is not the City money. These people are entitled to get answers. And, as a citizen, I demand an
answer. This time I'm not going to keep my mouth shut any longer. There's a lot of things going on. Like I
know I'm going to get a pay - a check for nine thousand dollars ($9,000) on Monday for a thirty-six
thousand dollar ($36,000) home that I'm repairing, but why is - I'm being paid by the general funds of the
City when I should have been paid by the rehab money, which they spent doing something else? And my
last question to the Commission is, why the City has not filed a grantee perform report for the last two years
to HUD, considering that this report has to be filed every year? And 1 - maybe that's the case, why we
haven't gotten the money for the year 25. And I'd like to find out, are we going to get this money or should I
go tell my 28 clients that I have waiting on list, that they ain't going to get their house repaired, and that they
should go to the bank and try to get their house repaired, otherwise?
Vice Chairman Gort: Thank you. We'll take all the questions and we'll let staff answer afterwards. Please,
just take notes. Let's get this - all the questions. And you might be repetitious and we want to make sure
you answer them all at the end. Next?
Mr. Juan del Cerro: Good morning. My name is Juan del Cerro. I'm the president of Miami Capital
Development. Most - I've met with most of you. I've met with Mr. Warshaw. I'm here, hopefully, to
respond to questions you may have and, hopefully, you will respond to questions that I have. On October
6th - October 26th I sent a letter to the City Manager, copies of which was delivered to all of you, where -
and I want to read it for the record, if I may?
Vice Chairman Gort: Juan, I think we all read it.
Mr. Juan del Cerro: OK.
Vice Chairman Gort: We know it. Unless the Commissioners would like to hear it?
Commissioner Teele: I think it's important that anybody wants to put on the record be put on the record.
Vice Chairman Gort: Go ahead.
Commissioner Teele: That's sort of why we have to come back.
Mr. del Cerro: Thank you very much, Mr. Teele, Mr. Gort. On October 7, 1999, Mr. Warshaw and I agreed
that we would meet. To date - and I spoke to him early this morning - that meeting has not taken place.
There's a point I want to make and I want all of you to know that we are all aware of the FBI (Federal
Bureau of Investigations) subpoena, the subpoena by the federal grand jury of certain records from Miami
Capital. We've been very open with that. Some of you may have known about it before it happened or not.
November 10, 1999
I don't know. I'm here to answer any questions you might have about that. if there are any. But i %vould
appreciate a response to the following.
Mr. Alejandro Vilarello (City Attorney): Mr. Chairman?
Vice Chairman Gort: Yes.
Mr. Vilarello: The special call of this meeting relates to the 1999-2000 Annual Action Plan. and I'm not
sure that the speaker is going to this issue. I'm concerned about clouding the record with things unrelated to
the reason that we're here this morning, and perhaps inquiries that we're not able to respond to at this
moment.
Vice Chairman Gort: I understand, Mr. Attorney. What I would like to do, Miami Capital is an ongoing
program. I hope it will continue to go, so they can help the community, and whatever the - we'll take all the
questions and whatever staff can answer, according to your - we'll answer it. Go ahead, sir.
Mr. del Cerro: The problem - OK. Let me get to the point, then, Mr. Regalado. The problem I have is very
simple. I have not had any official .communication from the Department of Community Development since
May. J have not had any of my phone calls returned since May. That Department seized 27 of our files.
God knows for what purpose. Only through the intervention of the City Manager and Mrs. Bianchino did
we get the files back. I have a problem on December 1, where I'm assuming the contract will not be
renewed on December 1. 1 have approximately four million dollars ($4,000,000) in the loan fund, not
collected, so far this year. I will have returned to the City of Miami over a million dollars. What happens
after December 1st? No one responds. The only person in the City of Miami that has taken the time to talk
to me has been the City Manager. No one else. And the last time he and I spoke, it was only through his
intervention that the files that the Department took were returned to us. I don't know what was in those
files. Was there fraud? Was there collusion? Were the loans that bad? If the loans we've made over the
past 20 years are that bad, where has Miami Capital gotten the money to give back to the City of Miami by
December, almost a million dollars? Where have I gotten the money to survive these past six months with
your subsidies, plus the interest, which the Manager kindly let me have, overriding the Department of
Community Development? I have a staff of approximately seven people. Nobody cared that, when I took
over Miami Capital, effectively running it in February, that I cut out two hundred and fifty thousand dollars
($250,000) from the budget. Nobody cares about that. The worst thing you can do to anybody, the biggest
offense is not to respond. We have been very open. Let me tell you. I write - and Mr. Warshaw is a
witness to this. I write letters like you guys wouldn't believe, all right? May I read something for the record,
Mr. Vilarello?
Commissioner Regalado: Go ahead.
Mr. del Cerro: I think it's - there's a letter written --as you all know, the Miami Capital Development, in
February, was awarded a contract by Miami -Dade County. A contract that, unfortunately, due to all of this
clout that has been placed upon us, is not going to come through.
Commissioner Teele: How much was the contract?
Mr. del Cerro: The contract allowed us approximately three million dollars ($3,000,000) in Economic
Development funds for areas that we presently do not cover, and they were going to contribute
approximately 29 percent of our operating budget from those funds. Tony Crapp, the Director of the
department, was my former executive director. I appointed him. Tony Crapp told me, "I know what's going
on. I read the article in the paper back in March." I want a letter from the City of Miami telling me what is
going on with Miami Capital. The letter is dated May 14, 1999 and it says, "Dear Mr. Crapp, in the matter
8 November 10, 1999
of MCDI (Miami Capital Development Incorporation) and the City of Miami, please note that the issues
raised in our April 2 letter have been resolved or are in the process of being resolved. The issue of program
income, the money, has been resolved. The City of Miami has agreed to provide MCDI with whatever
technical assistance and .support may be required to resolve the issues that arose out of the HUD audit.
Should you have any further questions, please contact me." This letter is signed by Gwendolyn Warren.
Director. Let me tell you something else. I wrote this letter and Gwendolyn Warren signed it. What
happened after May the l4th? What happens on December 1, when I no longer havena contract to collect
the money that we -- that is out there? What do we do with the four million dollars ($4,000,000)? Do you
know the costs involved in closing out Miami Capital?
Vice Chairman Gort: OK. Let's start answering questions?
Mr. del Cerro: I guess. Thank you.
Vice Chairman Gort: OK. We'll get to answer that. Next. Thank you, Juan.
Mr. del Cerro: Thank you, Mr. Gort.
Commissioner Teele: May I inquire, Mr. Chairman?
Vice Chairman Gort: Yes, Commissioner Teele.
Commissioner Teele: You say you've met with everyone. I haven't had the opportunity to meet with you
and I know — I recognize that you've had numerous...
Mr. del Cerro: Yes, sir.
Commissioner Teele: I recognize - that's all right.
Mr. del Cerro: No. The last time we met was at the CRA (Community Redevelopment Agency) with Mrs.
Tejera. Long time ago.
Commissioner Teele: Have you met with the City Attorney?
Mr. Castaneda: No, sir, I have not.
Commissioner Teele: Have you requested to meet with the City Attorney?
Mr. Castaneda: No, sir, I have not. My requests have been directed directly to the City Manager and we've
spoken.
Commissioner Teele: One of the areas that I had grave concerns about, in looking at the documentation,
was the default rate and the HUD audits that indicated that collateral was not properly recorded, that
collaterals — and this happens. And let me just say, this is not — don't get defensive. I reviewed at least
seven, eight different applications when I was'in the County. Miami Capital was far better than anybody
else doing this. This is an area where banks deny making loans. The County's own experience had a default
rate in excess of 75 percent. So, don't get defensive. I'm just trying to understand why is it you all haven't
sat down with the City Attorney and dealt with some of the non -subjective issues, such as, is the loan
collateralized properly or is the collateral documented? Is it recorded? Are the life insurance policies
enforced or not enforced? Are life insurance policies beneficiaries properly stated? I mean, it seems to me -
and one of my frustrations, I will tell you, is that I really do believe that the City has degraded substantially
9 November 10, 1999
the level of legal oversight in the last two years relating to Community Development. Much of what created
a situation where we - where I was forced to support one or two Commissioners wanting to change the Cite
Attorney, when I first came, was based solely on the HUD audit. The HUD audit was extremely critical, not
only of Community Development but of the City of Miami legal office as it relates to the documentation. the
legal documentation. Just as the procedural issues that bring us back here today. I don't hold Community
Development responsible. I hold the Law Office responsible for this. Because the procedures are
something or regulations and the insuring that this Commission operates in accordance with regulations is
up to the City Attorney. It's not up to the City Manager. I would very much request that your office meet
with the City Attorney's Office on all of the legal issues. I'm not talking about program issues because 1
can't get enthusiastic about supporting Miami Capital's program requests until we do all of the procedural
things properly. And I just want to put on the record why I've not communicated or met with you all. I
wanted to because I've said repeatedly to everybody that wants to hear from me on this, get the paperwork
straight and I'll be supportive. And I don't really want to get into a dialogue on it. You either have the
paperwork straight now, based upon the HUD audit of two years ago and based upon the program findings
of Ms. Warren's office. If she makes findings that says you all have a loans and they don't have liens
recorded, it's either correct or it's not correct. And either the lawyer says that the liens were recorded or not.
There's nothing to argue about about that. So, what I'd like to do, at least, is try to narrow the issues so that
we can do it. I will not support Miami Capital until, at least, the procedural paperwork is in conformance
with what the City Attorney says they have met all of the requirements that we think are important. You
have your own lawyer, right?
Mr. del Cerro: Yes, we do.
Commissioner Teele: OK. And that lawyer is subject to our lawyer's supervision...
Mr. del Cerro: Most assuredly.
Commissioner Teele: ...by City Charter.
Mr. del Cerro: Most assuredly. Most certain.
Commissioner Teele: And I just want to make that very clear.
Mr. del Cerro: No. Most certain.
Vice Chairman Gort: Thank you.
Mr. del Cerro: But may I respond very briefly? Very briefly. My understanding with the Department of
Community Development, when I met with the director in May, was that the reinventing of Miami Capital
would be a joint effort. It hasn't been. The only person I talked to at Miami Capital, officially, has been the
City Manager on two occasions. I have another question. On the default, that's..
Commissioner Teele: No.
Mr. del Cerro: May I? OK, OK.
Commissioner Teele: This is not a dialogue.
Vice Chairman Gort: Excuse me.
Mr. del Cerro: OK. No, I have — I have to ask you.
10 November 10, 1999
Vice Chairman Gort: Excuse me.
Mr. del Cerro: Yes, sir.
Vice Chairman Gort: We're not going to have debates all day here.
Mr. del Cerro: OK.
Vice Chairman Gort: We have a lot of speakers here, a lot of answers...
Mr. del Cerro: OK. All right.
Vice Chairman Gort: ...questions to be answered.
Mr. del Cerro: All right.
Vice Chairman Gort: Mr. Teele made a statement, and all of us have received those correspondence and
we're seeing what's going back and forth.
Mr. del Cerro: OK.
Vice Chairman Gort: And I think we'd like to see that straightened out.
Mr. del Cerro: What are your instructions?
Vice Chairman Gort: If they're wrong, we'd like to see proven that they're wrong, but we need to do it, sir
Mr. del Cerro: What are your instructions?
Vice Chairman Gort: We'll hear back from staff and you'll hear the instruction. Thank you.
Mr. Angel Gonzalez: Good morning, Commissioners. My name is Angel Gonzalez. I reside at 3280 West
Flagler Street, the -City of Miami. I'm here on behalf of Allapattah Business Development Authority. And I
want the record to reflect that Allapattah Business Development Authority has been the most productive
community -based organization of the City of Miami for the last seven years. Saying that, we feel very, very
dissatisfied with the process, with the way the funds have been allocated, with the way the reimbursement
has been paid off. And I have our Vice Chairman with me, Mr. Frank Castaneda. I have had instances
where my employees, who earn salaries on the range of eighteen, twenty thousand dollars ($20,000), not
seventy thousand, not a hundred thousand dollars ($100,000), not eighty thousand dollars ($80,000), have to
wait two months, two months to get their paychecks. I have waited myself, in some instances, two and a
half months to get my paycheck to pay my bills. I have a family, as you all do. I have bills to pay, as all of
you do, OK? And I have been able to cover my personal expenses because I have been holding a part-time
job. Otherwise, I would have had to resign from the agency and find me another permanent position. I have
a project of 22 units, a housing project for low income/moderate families that has been waiting for a year for
solutions. Due to the fact that there was some allegations made by the administration — by the City
Administration that some funds were being misplaced, that some funds were not accountable for. We were
investigated by the FDLE (Florida Department of Law Enforcement). We were investigated by the City of
Miami Police Department, OK? An investigation ordered by the City Manager — actual City Manager then,
Chief of Police, Donald Warshaw, and the investigation concluded that all of our numbers were correct, that
every penny in that project was spent appropriately and it was justified, and it was supported with by
11 November 10, 1999
documentation. That causes me a serious problem with Dade County in order to obtain the other portion of
the money that I needed to complete that project. It is very irresponsible to have 22 low income families
waiting for a year to have a roof over their head because of this type, of allegations and attitudes. Every
month after every month. I have to call my Commissioner and sometimes I feel very bad that I have to call
my Commissioner in order to get my reimbursement money in order to pay the expenses in the office. I was
evicted from the building where we had our offices. I signed a new lease and one month after I moved into
the new location, the owner of the new building told me that, if that was going to be the history of payment.
he didn't want me in the building. I have no problem in renting a tent and install my offices at Curtis Park. if
the City Commission gives me the permission to do that. We have to be clear that HUD consider that the
agencies and the City government, local government, are state governments have a partnership to service the
community. The purpose of the Community Development funds is not to make anybody rich. not to pay
anybody big salaries, but to serve the needed community. That's the purpose of the HUD funds monies. and
that is not the way that these funds have been used in the City and it's time to stop that. OK? On the
Five -Year Plan, which is in Washington now, on page number 38, it signaled that we have been victims of a
political vendetta, and that is in Washington now, ladies and gentlemen, and I want it to be on the record. It
is in Washington, DC, on the Five -Year Plan. We have been victims of a political vendetta. If the purpose is
to close the CBOs (Community Based Organizations), let's do it up front. Let's do it face to face, OK? Let's
stop playing games. Let's stop playing with people's lives and with people's income and with people's
families. If we're going to work for this City, we're going to try to better the neighborhoods and that is the
purpose, once again, of the CDBG funds, let's do it. If not, let's be frank. Let's be clear. Let's be honest,
OK? And let's say no, we don't want to do anymore Community Development. We want to use the twelve
million dollars ($12,000,000) to spread it among salaries and to have a bigger bureaucracy. Thank you very
much.
Vice Chairman Gort: Thank you.
Mr. Frank Castaneda: I just would like to add — Frank Castaneda.
Mr. Vilarello: Mr. Chairman?
Vice Chairman Gort: Yes.
Mr. Vilarello: Mr. Castaneda has been an employee of the City within the last two years. He cannot appear
before this City Commission. There's a two-year prohibition to his appearance before the City Commission
in representation of other parties.
Vice Chairman Gort: Wait a minute. How's this again?
Mr. Castaneda: I'm not going to lobby.
Mr. Vilarello: Excuse me. He has been identified as the Vice Chairman of this organization.
Vice Chairman Gort: Right.
Mr. Vilarello: This City Commission put into place a prohibition against City employ — former City
employees appearing before the City Commission or any other boards in representation of third parties for
two years after they leave employment in the City, and he's been employed with the — from the City within
the last two years.
Vice Chairman Gort: OK. Thank you. Sorry about that. Now, let me ask you a question. My
understanding, the City Commission has the right also to waive that. We just waived the rights the other
12 November 10, 1999
day of a City employee to be able to utilize some of the CDBG funds.
Mr. Vilarello: That -- you did waive it with regard to single family rehabilitation loan program.
Vice Chairman Gort: Right.
Mr. Vilarello: And there is a waiver procedure in the ordinance that you can waive by a four/fifths vote...
Vice Chairman Gort: In other words...
Mr. Vilarello: ...their representation.
Vice Chairman Gort: ..., I understand, the City Commission can make a motion, we can waive this. and the
gentleman can testify?
Mr. Vilarello: Yes. The entire section — the entire requirement, it can be waived by a four/fifths vote of the
City Commission.
Vice Chairman Gort: The wish of the Commissioners?
Commissioner Teele: Mr. Chairman, I think the City Attorney's ruling is correct. However, the ruling is
designed to prevent individuals, personally. This matter is one of procedure and, as long as Mr. Castaneda
is not going to make a request for funds but to provide us with information regarding a procedure, I think
that's why we're here. So, I'd rather caution on the side of allowing a person to exercise their First
Amendment right, notwithstanding our ordinance, as long as he's not going to ask for funds. Now, if he's
going to ask for funds, then I would — I think the intent of the ordinance is to prevent people who have
knowledge of how to get money from coming back getting it ahead of the public. So, I don't know what the
majority of the Commission are, but this meeting is mandated to hear information and I think — I don't want
the record to go back up that we didn't — that we denied someone an opportunity to speak before us,
particularly when I think there's an overarching First Amendment right relating to circumstances and
conditions. If he can discuss it with the grand jury, if he can discuss what's going wrong with the State's
Attorney, he ought to be able to discuss it with the Commission, in that we have the oversight. So, for the
purpose — for the limited purpose of allowing Mr. Castaneda to discuss procedures and conditions, but not
for the purpose of allowing him to make any grant application, I would move that he be afforded to speak
under the exemption.
Commissioner Sanchez: Second.
Vice Chairman Gort: Moved and second.
Commissioner Regalado: I will second that.
Vice Chairman Gort: Second. Discussion. Being none, all in favor, state by saying "aye."
The Commission (Collectively): Aye.
Vice Chairman Gort: Nays? No nays. Thank you.
13 November 10, 1999
The following motion was introduced by Commissioner Teele, who moved its adoption:
MOTION NO.99-839
A MOTION WAIVING PROHIBITION CONTAINED IN SECTION 2-
612 OF THE CITY OF MIAMI CODE (ENTITLED TRANSACTING
BUSINESS WITH THE CITY; APPEARANCES BEFORE CITY
BOARDS, ETC.), AS IT PERTAINS TO A FORMER EMPLOYEE OF
THE CITY OF MIAMI (FRANK CASTANEDA), WHO APPEARED
BEFORE THE CITY COMMISSION ON THIS SAME DATE PRIOR
TO THE TWO YEAR PROHIBITION ON ACTIVITY AFTER THE
EMPLOYEE HAS LEFT THE CITY SERVICE OR TERMINATED
HIS CITY EMPLOYMENT, IN REPRESENTATION OF A THIRD
PARTY.
Upon being seconded by Commissioner Regalado, the motion was passed and adopted by the
following vote:
AYES: Vice Chairman Wifredo Gort
Commissioner Tomas Regalado
Commissioner Joe Sanchez
Commissioner Arthur E. Teele, Jr.
Commissioner Johnny L. Winton
NAYS: None.
ABSENT: None.
Vice Chairman Gort: Mr. Castaneda.
Mr. Castaneda: Yes.
Vice Chairman Gort: State your name and address, please
Mr. Castaneda: Frank- Castaneda, 6624 Southwest 95th Court. There was no intent, in my part, to be
coming here to ask for funding. Basically, what I wanted to relay was a concern of the Allapattah Business
Development Authority Board. Last month, when Irene came into town, we requested — we were very
concerned about the tiles on top...
Commissioner Teele: Excuse me. Mr. Castaneda, Mr. Chairman. Is "Irene" Hurricane Irene?
Mr. Castaneda: Hurricane Irene.
Commissioner Teele: This record is going to go up to Washington.
Mr. Castaneda: OK.
Commissioner Teele: So, I think we need to.be very clear because somebody in Washington may not
understand "Irene coming to town."
14 1
November 10, 1999
Vice Chairman Gort: They might think Irene is somebody else.
Mr. Castaneda: I'm sorry. Nobody's girlfriend. Hurricane Irene came to town. We were very concerned
about tiles sitting loose. on top of the roof, and we submitted a letter to the City Manager requesting -- well.
basically telling him that we were going to take due diligence to resolve the problem of the tiles on the roof
and we wanted the ability to throw down funds that were available in Community Development to resolve
that particular issue. We submitted a bill to the City for twelve thousand dollars ($12,000) some months
ago, and we still have not received the money. And that's basically what I wanted to say.
Vice Chairman Gort: OK. Thank you. Next?
Ms. Mary Hill: Good morning. I'm Mary Hill, the Founder, Creator of the Economic Opportunity Acts and
Amendments in the White House. I created, from my effort, the laws and the systems and the funding that's
coming down to these States. Title 20, Revenue Sharing, and there was monies before then that came into
this state. Now, I'm with someone who just spoke. I want the Manager to hear this. I'm waiting until he
finish.
Commissioner Sanchez: Mrs. Hill, if you could allow us a minute. I'm sure he will give you his undivided
attention.
Ms. Hill: Thank you.
Commissioner Sanchez: Mr. Manager...
Ms. Hill: Proceed with the...
Commissioner Sanchez: ...Mrs. Hill is waiting for your undivided attention.
Ms. Hill: Proceed with the procedure.
Commissioner Sanchez: Mrs. Hill, you have the floor.
Ms. Hill: Thank you.
Mr. Donald Warshaw (City Manager): I apologize, Ms. Hill.
Ms. Hill: Thank you. Now, this is very serious matter that I'm hearing concerning the procedure that's
being taken here in the City, as my duty, as director, to promulgate and investigate and put the programs off
ground according to statutory laws, after it arrive here in Dade County, which have been approved from the
White House. Now, at one point — thanks to Mr. Frank Castaneda for being here, because he can vouch that
when the programs were closed down and the change supposed to come in here, I gave him something that
— to recognize me, that I might be able to continue to use their department. Am 1 right, Mr. Frank
Castaneda? I do have it in black and white. I do have it in black and white, the date and everything. Now,
we have not made this extension, according to statutory laws and guidelines, at this point. I have not been -
I have been talking to someone here and I have something that I think might materialize, but I'm not sure.
And this is no playing game here because we're in a serious situation, that those moneys cannot be diverted,
as it once has been, and to say HUD send down specifics that this supposed to be carried out, according to
Ms. Warren's plan or whoever or their plan, I believe it's contrary to what need to be done right now. What I
do believe, if it was true, we supposed to havein in search passed to us concerning their plan and their
procedure. We haven't seen this. We haven't seen this. We are taking vocal information from Ms. Warren
and the rest that is not in compliance to these laws and what's supposed to be here now. It is supposed to be
15 November 10, 1999
a regional office here and I'm supposed to be the one seated up, according to statutory laws. to implement
the law and any other department that is in compliance that can be used, it will be used. It is to extend.
revise, and tear down and start over from the beginning. We got to start from scratch in order to straighten
these things out. And, -also, there is so many projects that I hear each one has broke a loose and calling it
part of the pie. It is no such thing as part of the pie. It's part of this economic program and it need to be put
back together and the people should come underneath and we serve the people according to statutory_ laws
and guidelines.
Vice Chairman Gort: Thank you ma'am. Thank you very much.
Ms. Hill: I'm looking forward from still hearing from you all. This is very important.
Vice Chairman Gort: Yes, ma'am. Thank you. Next.
Ms. Sonya Santana: Good morning, Commissioners. I'm here to give some information about one of the
agencies that I represent.
Vice Chairman Gort: Name and address, please.
Ms. Sonya: My name is Sonja Santana, 9401 Biscayne Boulevard. I represent Catholic Charities of the
Arch Diocese of Miami and I represent, specifically, the child care division. I want to thank you, first of all,
and the Community Development Department for their continuous support for so many years of our child
care programs. We operate seven child care centers throughout Miami -Dade County, four of which are in
the City of Miami's most underserved communities. Many of you are familiar with them: Sagrada Familia,
Centro Mater, Centro Hispano Catolico, and Notre Dame Child Care Center. We're basically here to ask for
your support, your continued support, and request that you come and visit our centers, that you come to see
what we do for each of these children. We serve 2500 families on a yearly basis. We provide children with
healthcare information, healthcare referrals, nutrition, social services to the family, parent training. We're
just not day care anymore, and we have a very large passion about what we do and what we're about and
what we're doing.
Commissioner Regalado: Excuse me?
Ms. Sonya: Yes.
Commissioner Regalado: Did I hear that you had a problem in terms of bringing the papers that were not
accepted for the rent that you're receiving?
Ms. Sonya: Not our division. There was another division that, yes, had some problems and...
Commissioner Regalado: But not your division?
Ms. Sonya: Not our child care centers. We were able to turn in ours on a timely basis, though...
Commissioner Regalado: Are you..
Ms.. Santana: I know that it was a very constrained process.
Commissioner Regalado: ... in the process - are you underfunded or are you satisfied with...
Ms. Sonya: We're always underfunded.
16 November 10, 1999
Commissioner Regalado: I know, but...
Ms. Santana: I just want...
Commissioner Regalado: ...compared to last year.
Ms. Sonya: We have received the same amount of dollars from CDBG. We have requested, in these
additional public service funds, for some additional monies to go to our Centro Mater Teenage Outreach
Programs, Sagrada Familia, for summer program, as well as Notre Dame for the summer program. Let me
just share something with you, and I'll just make an example. Sagrada Familia. In April we undertook a
massive effort to expand our services in the Little Havana Community. We currently house almost a
hundred children in the Maduro Artime, which is a city -owned building, which we pay a rent. We were able
to expand our services to an additional — to serve an additional 60 preschoolers. Within less than a month,
we were full to capacity again. We still have two hundred families on a waiting list. We wish we can serve
them all, but the needs are so great. And what people don't realize is that for each child, it takes an average
of five thousand dollars ($5,000) per year just to provide quality services. Times that times 2,500 families
and children. That's a lot of money. And I do commend Community Development for putting children and
youth as a top priority. Because we feel that the future of the City of Miami lies in those children, and we
need to prepare them for a better future. I have here in the audience — and if they can take just a couple of
minutes. We even have parents here to show the support to their center. Because it's not just a day care,
like I said. It's a center where they come in for training, where they can get counseling, where they can get
help. We have tremendous gaps in services. Our dollars are only finite with the State and the Federal Head
Start programs. As you know, many times those dollars just not enough. They provide us with subsidized
day care, which really doesn't cover our expenses for teachers and for so many things that we need so that
we can operate effectively to bring high -quality child care program. I'm sorry. I have a little bit of a cold.
However, we hope that you can continue to support our program, that you consider our recommendations
seriously, that you keep putting children and families first in the communities. And if we can have some of
the other centers to come up with their parents. Thank you. And thank you for your time. I know it's a long
meeting but I appreciate it.
Vice Chairman Gort: Thank you. We have a lot of people that still want to talk. Thank you.
Ms. Hill: Excuse me. Could I say something concerning this?
Vice Chairman Gort: No, ma'am. You already state — you made your statement. Thank you, ma'am.
Ms. Hill: OK. I just was trying.
Vice Chairman Gort: Yes, sir.
Ms. Hill: Because I'm the founder of Head Start.
Vice Chairman Gort: Thank you.
Mr. Ros Desnches: Good morning, Commissioners. 'My name is Ros Desnches, and I work for Catholic
Charities Notre Dame Child.
Vice Chairman Gort: Your address, please, sir.
Mr. Desnches: I think Sonya has done a pretty good job, you know...
17 November 10, 1999
Vice Chairman Gort: Your address, please, sir?
Mr. Desnches: I'm sorry?
Vice Chairman Gort: Your address. Name and address.
Mr. Desnches: Oh, 130 Northeast 62nd Street, Notre Dame Child Care Center, which is a unit of Catholic
Charities, where Sonya also works. One thing that I thought that I should add to what Sonja has said is the
fact that, when the children are not receiving services during the summer - and by summer we're talking
about almost three months, because the Head Start Program and the Pre-K Program, with the Miami -Dade
County Public School that we run, ends thefirst week of June. So - and, then, it goes back again at the end
of August, like August 31st. So, that's pretty close to three months. So, not only the, children are not
receiving the services, the parents are not about to.go to work because, you know, there's no help for the
children, and they have to settle for child care services in the home yard of a friend, of another family in
really substandard conditions, which I do not want to because you do not want to see that. But, also, the
teachers are out of work for three months and, me, as an administrator, you know, I keep promising, you
know, hang in there, hang in there, guys. You know, we'll find something for you. So, I'd like to go back to
the community and to the centers and tell them that, you know, the Commissioners have heard us and we're
hoping that something will happen this summer because we just cannot take this anymore. I know there's a
little bit of money available for all kinds of social programs, youth, elderly, child care. Perhaps it's not
enough, but I'll be — it will be a very devastating and psychological blow to our center if we don't get some
kind of help this summer. Thank you very much.
Commissioner Sanchez: Mr. Chairman?
Vice Chairman Gort: Yes, sir.
Commissioner Sanchez: I don't think that no one up here would deny that Catholic Charities is one of the
finest organizations in our community, at least, in my district, which I represent one of the poorest districts
in the City of Miami. They do an excellent job of providing, not only child care assistance, but also family
support and other things in the community. I have realized that the money that's been allocated to them, I
have been told that it's not sufficient money and, therefore, you know, when the time comes around, I just
want to let you know that I will probably pick up the flag and charge with it to try to obtain more money for
that great organization. Thank you.
Vice Chairman Gort: That's no problem, but I want you all to recall and remember, whenever you add more
to one, you're going to have to take it from another one. So, that's — in making the decisions. Of all the
decisions that we have to make year-round, this is the hardest decision to do. I'm telling you. Next. You
know, originally, when I asked, I think three was only four people that raised their hands that wanted to
speak. If you're going to speak now, let's limit it to two minutes, because I can see there's quite a few people
that's going to talk, so let's limit it to two minutes, please. Yes, sir.
Mr. Rafael Garcia: Good morning. My name is Rafael Garcia. I live at 500 Northwest 109 Avenue. I've
been employed by Arch Diocese Catholic Charities for 16 years and in that period of time, I've run a
program called the Centro Mater Running Program, and we've provided service throughout the years for
kids and teenagers. And we deal with running, introduce them to running and endurance in sports. In the
Year 2000, the ????? is going to preview at the Olympics. We're the only known program, probably in the
nation,.that provides this kind of opportunity to teenagers. Ninety percent of the children that are in our
program graduate from high school. Another 80 percent attend and graduate from junior colleges and move
on to upper level universities. We have over 45 percent of our kids, that are in our program, they're in the
18. November 10, 1999
military service as we speak now. Over 60 percent are emploved. This program's always been underfunded
and it's probably one of the greatest programs in the County. There's hundreds of programs available out
there for baseball, basketball, and football but, yet. our program is unique in what it provides and the
duration of time we invest in every child. We start with the child at five years and extend all the way to 21
years of age. This is how -you play a major role in the development of a teenager and a young adult. All the
children in our program contribute to society. None have been in problems with the law, drugs. alcohol or
anything of that nature. So, I just wanted to express that. We need the proper funding support and
encouragement to further elevate this program to a nationally junior Olympic level. I appreciate your
attention. Thank you.
Vice Chairman Gort: Thank you, sir. Next. Don't be shy. Come on, come on. Come on up.
Dr. Martin Termes: How do you do? My name is Dr. Martin Termes. I'm with Catholic Charities of the
Arch Diocese of Miami. I'm director for grants. Our address is, as you know, 9401 Biscayne Boulevard,
Miami. I also would like to speak on behalf of the child care program, but from a somewhat different
perspective. Last year I worked closely with our attempts to gather information on the needs of people
coming off welfare. How to most specifically help them to enter and retain the positions in the job market.
We found that there are two issues with which they are most concerned. One is the problem of
transportation. The other is the problem of child care. If a mother, .who has been taking sole care of her
children for three years on welfare, if she's now to go off to the — and get and sustain a job, it's critically
important that she be able to maintain her children in a quality day care program. In the case of Catholic
Charities, we do maintain such programs. A point about those programs, though, is, by and large, they are
only funded over a 10-month period. This leaves a critical gap in the summer months where parents have
to, then, deal doubly with the problem of caring for their children, while trying to maintain their jobs, and
this can frankly be too much for them. We, therefore, very much hope that you will consider this when the
opportunity comes to make a decision on that.issue. Thank you.
Commissioner Sanchez: Mr. Chairman?
Vice Chairman Gort: Thank you, sir.
Commissioner Sanchez: Mr. Chairman, I encourage each of these organizations to apply for the social
service dollars in December, which will become available in December, I understand, so...
Vice Chairman Gort: No, they're not.
Commissioner Sanchez: No, they -- no, no. They...
Vice Chairman Gort: My understanding — let me ask you a question. My understanding, the applications
for these funds have already been done?
Mr. Dan Fernandez: Dan Fernandez, Community Development, Assistant Director. Yes, sir, the
applications are in. We're in the process of evaluating right now.
Vice Chairman Gort: Thank you.
Commissioner Sanchez: But can they apply for social service dollars in December?
Mr. Fernandez: The monies that will come in December is the social service pool that the application is
already in.
19 November 10, 1999
c t,
Commissioner Sanchez: Well — but. see, that's where 1 think that we're here today. is because of the
miscommunication...
Mr. Fernandez: Commissioner...
Commissioner Sanchez: Well, hold it.
Mr. Fernandez: ...a lot of these groups have applied already, that you're hearing from today ahead. They're
kind of a step ahead of the process right now.
Commissioner Sanchez: Well, how about the ones that haven't applied for it? Could they apply for it now
or not?
Mr. Fernandez: They would not be eligible.
Commissioner Sanchez: They would not be able to apply?
Mr. Fernandez: Not for this pool of money.
Commissioner Regalado: Excuse me.
Commissioner Sanchez: But - wait. My...
Vice Chairman Gort: OK. What...
Commissioner Regalado: What...
Vice Chairman Gort: Guys, for the sake of time, there's a lot of speakers here. Why don't we go through the
whole process and, then — I'm writing down all the questions...
Commissioner Sanchez: Well, Mr. Chairman, I will...
Vice Chairman Gort: ...and, then, we can answer questions afterwards
Commissioner Sanchez: I will, respectfully, reserve at least 20 minutes for the questions that I have and the
discussions that I will be making.
Vice Chairman Gort: No problem. You can have all the time you want. Yes, sir.
Mr. Lamont Reed: Good morning. My name is Lamont Reed and I'm also an employee with Catholic
Charities, Centro Mater in Little Havana. The address is 418 Southwest 4th Avenue.
Vice Chairman Gort: You can raise the mike up.
Mr. Reed: OK. Thanks. To the Commissioners, Chairperson, Vice Chairperson, City Attorney and City
Manager, I'd like to say it's an honor to be here to speak before you. You know, I am the head of the teen
outreach program at Centro Mater Child Care Center, and it's.a program for youth — at -risk youth, between
the ages of 12 and 18. And we try to educate them with the importance of self-respect, family, and also
education. You know, the majority of our kids are males and some of them are in single parent homes and
some have been involved in gangs also. So, we do have to take a lot of time out to try to guide them in the
right direction and to have them do the right things because they are our future. Throughout the years we
20 November 10, 1999
have been successful. We know it's been a wonderful place to work and they have embraced me with open
arms, you know, within the Little Havana community. With me being an African -American, they have
embraced me and accepted me in their family and I appreciate that. However, some days is a challenge to
reach some of these children because there's good and bad days also, but the good days, by far, outweigh the
bad. And, you know, my point really is -- really is to ask you for your support and help, financially and
spiritually, you know. If you could just come out — if you have free time to come out and see what we're
about. You know, you have our address and I think you will see the impression that we're trying to bring
forth towards you. And this budget, I believe, would help us with field trips and different other social
activities, as sporting events also. And I do appreciate your time.
Vice Chairman Gort: Let me ask a question. Do you have your applications in?
Mr. Reed: What I was told by my boss, that we do have them in.
Vice Chairman Gort: You do have an application in?
Mr. Reed: Yes, sir, at this time.
Vice Chairman Gort: You know the amount of funds you're going to be allocated yet?
Mr. Reed: No, sir, I don't.
Vice Chairman Gort: OK. Thank you.
Mr. Reed: All right. Thank you.
Commissioner Sanchez: But you are on the list?
Mr. Reed: Yes, sir.
Vice Chairman Gort: Yes, ma'am.
Ms. Carmen Garcia: Good morning. My name is Carmen Garcia. I'm the Program Administrator for
Sagrada Familia and I'm here, basically, just to share with you a little statistical information, as far as we
have — we serve 272 children at Sagrada Familia. Hundred and eighty of those are Head Start children. As
of June 1st, those children will be sent out to the street and, perhaps, that might seem not so bad, unless you
live at East Little Havana, and most of you know that it's a poverty-stricken neighborhood with a lot of
crime. A lot of our parents cannot have another person take care of their children and if they do, the
children's welfare might be at risk. So, I know that you share that concern along with us. I brought with me
two of our parents to add a little humanity to people, in fact, that will be affected if these children do not
receive that quality care throughout the summer, and I'll bring them forward. Thank you.
Vice Chairman Gort: Next. Yes, ma'am.
Ms. Martha Silva: Buenos digs. Mi nombre is Martha Silva.
Vice Chairman Gort: Wait a minute. We need someone to translate. Joseph ine,,you're ready?
Ms. Maria J. Argudin (Assistant City Clerk): I'll try.
Ms. Garcia (Comments translated by Ms. Argudin): And I come representing the parents of Sagrada'
21 November 10, 1999
Familia. We're low income parents and we hope that you consider the petition from this school. having to
do with the summer school classes since we, as parents. are comforted by the fact that the children can be
taken care of at the center. Even though we pay - we earn low wages and we're of low income. we're
comforted by the fact that they're receiving the right care. So, we hope that you do accept the petition from
the center. Thank you.
Vice Chairman Gort: Thank you.
Mr. Maria Victoria Vega (Comments translated by Ms. Argudin): Good morning. I'm Maria Victoria Vega.
As a working mother, I come representing La Sagrada Familia Day Care. Similar to the previous mother, I
come to ask that you consider the petition from the center and grant it. If the center is not open during the
summer, the children would have to remain at home and we, work, so they would not receive proper care.
And we see ourselves forced to pay, out of meager salaries, for other day cares, which our children would be
attending and they would probably not receive the same quality care. Please consider the petition of the
center, so that the center will not close its doors. They need the funds and we need them to have the funds
so they can continue to operate. Thank you.
Vice Chairman Gort: Look, we need to work on the clock. It's not working. There's something wrong with
it. Stop at 1:12. Next.
Mr. Josie Legido Correa: Hi. My name is Josie Legido Correa. I represent Downtown Miami Partnership.
We're at 25 Southeast 2nd Avenue. In front of you, you have a sheet that says "public hearing for final
comments, Annual Action Plan," and it's only being recommended to you that our organization, which has
met and exceeded the requirements of the program that we get funded for, which is Economic Development,
only be funding in the amount of twelve thousand dollars ($12,000). 1 would like to find out why, if it says
Annual Action Plan, there's only a twelve thousand dollar ($12,000) allocation?
Mr. Fernandez: OK. The reason that you're...
Vice Chairman Gort: Excuse me. Write all the questions down and, at the end, I'll let staff answer each one
of them. Thank you.
Ms. Correa: OK.
Vice Chairman Gort: Anything else?
Ms. Correa: 1 would also like to say that I would ask the Commission to, please, approve the
Community -Based Organization, such as ours, who have met and exceeded the requirements of the
program, that we be funded for one year, and that the incentive be included, as you have for the past couple
of years. It is only fair for those organizations, such as ours, who have done an excellent job in our
communities, that we be funded for one year, and that we be funded for the amount, including the incentive
that we were supposed to be funded for. And let's stop this going back and forth for two months. Because
it's -- honestly, it takes a lot of time to do the contracts, to do the paperwork, and to get everything ready for
two months. It becomes hard to be able to deal with people that will only sign one-year contracts with you
and so forth, and it just becomes extremely cumbersome. In all honesty, it's a waste of your money and
CDBG funds for us to work and constantly be being contracts for two months. Let's get a one-year contract,
beginning on October 1st of 1999 through September 30th of the year 2000, which is the way that it's
supposed to be. That's what I would like this Commission to take into consideration. Thank you very much.
Vice Chairman Gort: Thank you. Yes, sir.
22 November 10, 1999
Mr. Samuel Mason: Commission, Samuel Mason. 5425 Northwest 7th Avenue. Recruitment and Training
Project. My question is...
Vice Chairman Gort: Sam, why don't you bring the mike up. There you go. Thank you.
Mr. Mason: My question is, the restrainments that was put on the preparation of the CDBG grant. we -- the
restrainment that they had in terms of bonding, workmen's comp, liability, et cetera, it was impossible for us
to get those items. At the time of the submission of the grand, we had 144-page Five -Year Plan that we'd
done for the Liberty City/Model City Community and, therefore, I call the CD (Community Development)
and told them that it would be impossible for us to get those things, that I could not submit the grant. This
grant is very important to our community. It covers all aspects of it. And I want the record to reflect that
our community in definite need of our participation, and that was the reason why we could not submit that
grant because of those restrainments that was impossible for anyone in our position to do that. And I want
the record to reflect that. Thank you.
Vice Chairman Gort: Thank you, Mr. Mason. Next.
Mr. Lisette Rodriguez: My name is Lisette Rodriguez. Our office address is 900 Southwest 22nd Avenue,
in Miami, Florida. I represent Florida Housing Coop. We build low income housing in East Little Havana
and we're working on a project called Barcelona Place. And we've had various trouble with the staff of
Community Development, trying to get an answer. In November of 1998, we applied for SHIP (State
Housing Initiatives Partnership) funding in the amount of five hundred and twenty-three thousand four
hundred and twenty-six dollars ($523,426). We got an answer from staff in a letter, which was dated
November 1, 1999. I really have no idea why this took a year to be answered. The answer that we got was
in the negative. After we had, I would say, more than 40 meetings with City staff. The issue that they had
with us was the price of the project in total. We worked with City staff continually to try to lower the price
of the project. In early October, we had a meeting with City staff and they told us that, if we could lower
our project costs by five hun — almost five hundred thousand dollars ($500,000), that they would support the
project. On October I Ith, we did that. We were able to negotiate a new contract with a general contractor
and we were able to lower the costs. Still, we did not get a response from City staff and it was only after
having to bother the Commissioners that we were able to get an answer. At this moment, OK, in June of
this year, this Commission allocated to us in SHIP funding, four hundred and fourteen thousand five
seventy-seven, and I have continually asked staff what is the status of that amount of money? And I don't
get an answer. At -this moment, if that money is in place, I can begin my project. I don't have an answer to
that question.
Vice Chairman Gort: OK. Thank you. We hope we get the answer today. Anyone else? Yes, sir
Mr. Juan Jane: Good morning, Commissioners. On behalf of Edgewater Economic Development, my name
is Juan Jane. I'm the Executive Director. The address is 2697 Biscayne Boulevard. I'm here today to ask
two things. One, is that the Economic Development project (unintelligible) the City, be approved from
October to September 19 — 2000, instead of the two months every time that they issue the approval to us.
Secondly, I'd like to request from all of you that the RFP (Request for Proposal) extended the deadline in
circumstances beyond our control. The package was given to us on October 14th. As you all know,
October 15th was Hurricane Andrew. Leaving us less than nine days to fulfill and complete the packages.
Vice Chairman Gort: Don't change the name. It's Irene.
Mr. Jane: Huh?
Vice Chairman Gort: Irene.
23 November 10, 1999
Mr. Jane: Irene. OK. I'm sorry. Thank you. And leaving us with a very restraint. I have faxed you a coPe
-- a request letter to all of you and I could pass it on to you today, with your permission?
Vice Chairman Gort: Give it to the Clerk.
Mr. Jane: To the Clerk, OK. I appreciate that you are allowing me to talk to you today. but it is very
important that, as I said first, that the contract be approved for a year and, also, the RFP, in the case of the
Housing, be extended the deadline. I presented my package and was delivered six hours later and was given
back to us the day before yesterday. Thank you.
Vice Chairman Gort: Thank you. Anyone else? Anyone else? OK. We'll now close the public. Come on.
guys. It's 10:40 already.
Ms. Anita Rodriguez-Tejera: I didn't move quick enough. Hi, Commissioner. Welcome. It's good to see
you. I'm Anita Rodriguez-Tejera. I'm with East Little Havana Community Development Corporation.
Since I heard mention the SHIP funds on the contracts on that — on the other project, last December we
were also awarded funds under that SHIP contract for the Riverside project, which we're, basically, almost
completing construction. We still don't have the contract. My understanding is that those funds will revert
back to the State on December 31 st, if we haven't used them up by then. I just want to express that concern.
I notice that the CDBG funding allocations for the housing organizations, except for those extensions that
we got through November 30th, are not in this package. And I understand that staff is coming back — and
we're working with staff — it's coming back in December to make those recommendations and, hopefully,
that approval would be retroactive to December l st because, as of December 1 st, we don't have funds to
operate. So, if the Commission would keep that in mind when those funds come up for allocation in
December, because your meeting is in the middle of December. And, at that point, I look forward to talk to
you about the needs that we have for operational support. Thank you.
Vice Chairman Gort: Thank you. Anyone else? We'll now close the public hearings, and what I'd like to,
staff, is, if we could go — and the Commissioners agree — presentations and questions have been asked. I'd
like for staff to answer. At the same time, if any questions that we have at the time that staff is answering.
And we begin with the first one.
Mr. Fernandez: Dan Fernandez, Assistant Director in Community Development. I'd like to preface my
remarks by trying to refocus on the purpose of this particular meeting. This meeting was established and set
up to try to solicit public comment regarding actions already taken by the City Commission. OK? In order
to get our...
Vice Chairman Gort: I understand. Excuse me. Let me cut you off for a minute. I understand what the
meeting is supposed to be but, at the same time, we've been hearing a lot of feedback from a lot of the
agencies. They have not — and Washington has received this complaint. They have not been listened to.
So, I think this is a perfect time for you to answer a lot of the questions that they have. Because we've been
asking these questions — they've been asked of us constantly and, somehow, we need to answer all those
questions and put them on the.record.
Commissioner Regalado: Excuse me. Mr. Chairman?
Vice Chairman Gort: What I'd like to, at this time — yes, sir.
Yes.
Commissioner Regalado: Oh. Just for the record, the Administration requested from me, and other
24 - November 10, 1999
members of the Commission, a call for this meeting because the Administration said that, if we didn't do this
meeting today, we'll be in trouble. is that a fair assessment?
Mr. Fernandez: That's correct, Commissioner Regalado.
Commissioner Regalado: OK. So, what we're here is because the Administration was at fault in terms of
complying with some dates, am I correct?
Mr. Fernandez: We're here to satisfy the HUD (Department of Housing and Urban Development)
requirements.
Commissioner Regalado: OK. So, this is a public meeting and we have listened to many complaints and it's
time — you know, it's time that we, as a City, respond to the different people that have complained to us. to
you, and here. And, you know, you might say that everyone who is complaining is — probably send wrong
information or didn't comply with the dates and that you're trying to do the right thing. But the problem is
that, you know, the bottom line is that we need to help the people. So, we're here to solve problems, not to
give you problems or you to blame everybody's fault on the different organizations. Is that a fair...
Mr. Fernandez: That's a fair assessment, sir.
Commissioner Regalado: Thank you.
Vice Chairman Gort: OK. Let's go one at a time and try to respond questions been asked. I wrote down the
first question that talked about the rehab funds and the rehab — so, could you answer some of those
questions that came up?
Mr. Fernandez: I think probably that...
Vice Chairman Gort: First of all, one of the biggest complaints that I received from everyone that stated
here, not — they don't get call back from staff. If we can address that, I'd appreciate it. At the same time, the
five hundred thousand dollars ($500,000) that was utilized for rehab, that's no longer there. And I hope you
took notes of the questions that were asked by the first presenter.
Mr. Fernandez: Again, I think — let me respond by saying that a number -- and I won't go in order of the
way the questions came. But I know a lot of the concerns were related to the Economic Development
activities being funded for the full year, OK. There is a public hearing — it's scheduled for next week. That
has been advertised for next week — that addresses that particular issue. So, the concerns that agencies have
regarding the Economic Development funding continuation for the full year have been — are being
addressed and will be addressed by the City Commission next week. The recommendation is that we
continue the programs that have existed successfully, based on the criteria the Commission had given us
previously. So, if an agency has met its programmatic requirements, they will continue through the next
year, September 30th.
Vice Chairman Gort: What you're saying is, all the agencies that had been performed, they're going to
receive the same amount of funding from the management or, if they exceed their performance, there might
be some bonuses entered?
Mr. Fernandez: There will be some incentives that are included in the calculations, yes, sir
Vice Chairman Gort: OK. And the contract will be set up for a whole year?
25 November 10, 1999
Mr. Fernandez: And the contract will take you through the rest of this year, yes.
Vice Chairman Gort: Commissioner Sanchez, any questions?
Commissioner Sanchez: No, I -- when I have — I'm probably going to take about 20 minutes with all the
questions I have. So, I'll wait until the end.
Vice Chairman Gort: OK.
Mr. Fernandez: And that's why I wanted — I tried to refocus back to that issue because that may resolve a
lot of the questions that came up.
Vice Chairman Gort: Well, as you answer some of the questions that have been asked by the applicants in
here, you might be able to answer a lot of the questions that we have ourselves and maybe, instead of 20
minutes, that he'll only take 10 minutes. What I'd like for you to do — the five hundred thousand dollars
($500,000) question that was asked — I'd like to address the rehab. That's the number one speaker that came
up to us and she had some very specific questions, that I hope you took down, because I asked you to take
them down, so you can answer them.
Mr. Fernandez: I'm really not certain exactly what they're talking about regarding that rehab question that
was offered.
Commissioner Teele: Mr. Chairman? If he — if that's your first statement, could we ask the lady just to
come back and make it very clear what it is she's talking about, please?
Ms. Fernandez: My question was that it was...
Vice Chairman Gort: Name and address again, please.
Ms. Fernandez: Excuse me?
Vice Chairman Gort: Name and address again, please.
Ms. Fernandez:—Marielena Fernandez, 822 West 18th Lane, Palm Spring North. My question was that an
account number used to be a little bit over five hundred thousand dollars ($500,000). That account is where
the money comes from to pay us, the contractors, once we submit the payment. A couple of weeks ago I
was told that that money was not there any longer. I was just told, over the phone, if you saw me on the
phone, that that money had been transferred to another account. I, want to know why they keep on
transferring the funds, when they don't have that right? That money is for the people...
Commissioner Teele: Hold it. Hold it. hold it.
Vice Chairman Gort: OK. The question is five hundred thousand dollars ($500,000), you were told that
was there, number one. Number two, my understanding is, you have over 29 applicants. The applications...
Ms. Fernandez: Correct.
Vice Chairman Gort: The applications have been in for rehab for at least two to three years. This is
something we discussed before. At the same time, some of the people are not getting the answers when they
call and they request for staff to answer. They don't get the answer back. Are those are the three major
questions?
26 November 10, 1999
Ms. Fernandez: Right. My other question is, why the guidelines were changed without the approval and
why the contractors don't have copies of this new guideline? Everyday that we go there the guidelines are
changed.
Vice Chairman Gort: OK. Thank you. Guidelines has changed constantly. They want to know why that
it's not in writing.
Mr. Fernandez: OK. Relating — let me begin with question number one relating to the funds. The money is
there to provide the rehabilitation. What may have been the problem is, at the close of this past fiscal year,
when the funds were rolled over into the next year, the funds for that particular account may not have been
rolled over. So, we had to reactivate that account. But the moneys are there. There's been no transfer of
funds from that particular account. And I just want to make that assurance to you.
Vice Chairman Gort: And you're in compliance with Federal regulations and HUD's regulations?
Mr. Fernandez: Yes, sir.
Vice Chairman Gort: OK.
Mr. Fernandez: It's basically an internal accounting procedure.
Vice Chairman Gort: OK, but — here's what — somehow, you have to sit down with your staff and make
sure that we all send out the same messages. Because you're telling us here, they call and then they get
different feedback or they don't understand or there's a lack of communication somewhere. My advice to
them has always been, don't talk on the phone. Write it down. Send a memo and get a response in writing.
Because phone conversations, you could always say, "no, I didn't say that." So, I'm always telling you all,
do it by memo, and I want the response also to be my memo.
Mr. Fernandez: And, internally...
Vice Chairman Gort: If possible.
Mr. Fernandez: ... we will attempt to improve our communication efforts also.
Vice Chairman Gort: But I want to make sure that the message that...
Mr. Fernandez: I mean, that will be an internal process.
Vice Chairman Gort: Look, I'm not going to be going back and forth because we can be debating here all
day.
Ms. Fernandez: I just want to ask Mr. Fernandez a question.
Commissioner Teele: Through the Chair.
Vice Chairman Gort: Yes. Go ahead.
Ms Fernandez: Yeah, through you guys. Why do I have to call him to get paid for something that I
accomplished three weeks ago, when Ms...
27 November 10, 1999
Vice Chairman Gort: OK. That was a fourth...
Ms. Fernandez: When Ms. Gwendolyn Warren's office...
Vice Chairman Gort: That was a fourth question. You forgot about that one.
Ms. Fernandez: ...did not return my call.
Vice Chairman Gort: You forget about that one. That was your number four question.
Ms. Fernandez: OK.
Vice Chairman Gort: Thank you. One of the questions that we get quite a bit also — and you heard from all
the other agencies these people, their budget, they don't have any reserves. We all know it. They have to
make payments. They have to pay rent. They have to pay electricity. Some of us -- like this young lady
here stated, she processed her — she's got ex -amount of money. She has already put her money into the
construction and she requested and it's been four weeks, according to her, and she has not been paid yet.
Mr. Fernandez: Again, it's a processing issue. We'll process ,requests, as they come, on a first -come
first -served basis. And it really depends on the amount of volume that we have for that particular period.
But when the pro — when the requests comes in, we will expeditiously move to try to move it along.
Vice Chairman Gort: Question., Request comes in-.: How long does it take?
Mr. Fernandez: It should take no longer than two weeks.
Vice Chairman Gort: No longer than two weeks?
Mr. Fernandez: That's — you know, and that's. probably taking. it to an extreme, if everything moves
smoothly.
Mr. Donald Warshaw (City Manager): Commissioner, and I'd like to address this. That this past year, this
has been a big issue on reimbursements. I certainly understand. The 150 plus agencies that we service, that
reimbursements are an issue. I understand they don't have reserves. They need these monies to get paid.
It's been a learning process for a lot of people because the documentation that we require, particularly when
it comes to bills, invoices, payroll, back-up information, oftentimes people come in — I'm not addressing this
particular case — people come in. They don't have the proper back-up. We've got to send them back. They
come back in again. They still don't have the back-up. And we work with them. There's been training. We
have sat with people and told them the kind of documentation they need in order to get paid, and we have
speeded up the paper process. It's not perfect,. but...
Commissioner Sanchez: Mr. Chairman?
Mr. Warshaw: ... if we could turn everyone around in 10 days, it would be ideal.
Vice Chairman Gort: Yes, sir.
Commissioner Sanchez: Mr. Chairman, did these problems exist last year? The problems that we have
today, did they exist last year?
Vice Chairman Gort: The question.... Let me address — excuse me. Let me...
2.8 November 10, 1999
Commissioner Sanchez: Wait, wait, wait, wait. Excuse me. Mr. Chairman?
Vice Chairman Gort: Let me address the question a minute. Your same question. Let me readdress it this
way. If 1 may...
Commissioner Sanchez: Why should you readdress my question?
Vice Chairman Gort: OK. Go ahead.
Commissioner Sanchez: It's my question. It's a simple question. Did — last year did we have these
problems?
Mr. Warshaw: I'm going to answer you in two -- yes. I'll answer that in two ways. Number one, it was
substantially worst. And number two, as a result of the HUD audit, we...
Commissioner Sanchez: But, Mr...
Mr. Warshaw: Commissioner...
Commissioner Sanchez: Mr. City Manager?
Vice Chairman Gort: Excuse me.
Commissioner Sanchez: Mr. City Manager?
(Inaudible outbursts from the public)
Vice Chairman Gort: If we're going to conduct a meeting in here, we need to keep it in order. If not,
everybody will be removed. Thank you.
Commissioner Sanchez: Mr. City Manager, if I may. And the reason why 1 ask that is because, not long
ago we had a meeting in my office with a bunch of the — well, I think there was a large participation from
the people that provide services to our community and, Gwendolyn, you were there. Mr. City Manager, you
were not. I think John Lindsley was there because you were out of town. And the reason why I called that
meeting was because of the ongoing complaints that were brought to my attention. These complaints varied
from people — they were there prior, that knew what was going on, and they knew the process, were moved
to other positions, putting people there that didn't know what was going on around them and, et cetera, et
cetera, et cetera. Other reasons. I felt, as a Commissioner, that it would be in the best interest of both the
Administration and the individuals providing services to our community to come to a mutual agreement to
answer questions and forth. So, in the long run, I felt that the process was going to benefit us all. But, then,
I get a call that 99.9 of the things said there were never awarded. In other words, there was no merit to what
was said in that meeting. And, therefore, that lead us to where we're at today, where I feel that we've lacked,
whether it's been through changes in the process or lack of understanding or lack of communication between
the Administration and these people providing services. Now, the changes that were brought forth — and I'll
tell you, I am one to always say that changes are not perceived by people to be so acceptable. People are
declined to accept changes and maybe changes are required to bring better service to our community and the
services. However, I stand very firmly that when you give your word to an individual or an organization
that you comply with, there was no reason — and one of the biggest concern was — and they were all looking
out, not for their best interest, but for the interest of their organization and the community they serve. They
said, I have not gotten paid in a month. I have not gotten paid in two months. I have not gotten paid. I
29 - November 10, 1999
could understand problems of not being paid because you could always say, well, you kno%%. there %%ere
some paper mismanagement, whatever. But it's the other factors that blend in to lead me to understand that
there is a lot of problems. There are a lot of problems that exist in the department, and the quicker that we
find a solution to this and get with these individuals and provide the services that are required. I think we
could put an end to this. 'And there are a lot of questions that are going to be answered today here because I
think this meeting is going to go on forever. But the thing is, that a lot of the people that sat down in that
meeting have come back to me and said, "You know what? What they told us that they were going to do.
they didn't do anything." And if you don't believe me, I'll bring back each and every one of these individuals
that were on that meeting and they'll tell you, "You know, Ms. Warren, what you told me, you didn't do."
And that's the thing that I, nor you or nor you, Mr. City Manager, should allow that to happen in this Cite.
Because, in the long run, they loose respect on your behalf, my behalf, and her behalf, and that's perfectly
fine, but not on the City of Miami. (Applause).
Vice Chairman Gort: Excuse me. Guys.
Mr. Warshaw: Commissioner, if I can...
Vice Chairman Gort: Ladies and gentlemen, we would like to conduct an orderly meeting here, please. Mr.
Manager, my understanding, in following it up, when they come up to me, that they were going to do the
changes. The reason the changes are being done is because of the audits from HUD need these other
changes. When you look deep into the audit of a HUD, some of the changes that have taken place have
improved, but many of the changes have not improved the services. It's been a lot of lack of
communications. I get that completely, constantly. People not know what's going to happen today to what's
going to happen next week: Somehow, they need to have the guidelines. They have to be in writing. Then,
people have to know ahead of time what they're going to do.
Mr. Warshaw: I think the important issue, as it relates to reimbursement, there was a time, prior to two
years ago, that the City advanced money. We don't advance money now. Basically, we're paying money on
reimbursements. The vast majority of the people we deal with, we're not having any problem with. There
are still some -- it's not a perfect system. And I'll tell you that we're going to make it better. And I hear
everything that's been said today and there's no question about it that there are some people who don't get
paid. There's some people who need to get paid so fast because they have zero dollars in reserves, that we
can't turn around the money in a day or in 48 hours. But in those cases, we try to put them at the front end
of the line so that we can. But I hear everything. And I'm not disputing that some of the people who are
here today don't have legitimate concerns about the reimbursement process. But in answer to Commissioner
Sanchez' question about how was it done last year. First of all, Ms. Warren has been here now for two
years. The HUD audit talked a lot about the mechanism by which. the City was reimbursing dollars, that
they were not getting the right kind of documentation and back-up. That process has dramatically improved.
It still has a ways to go, no question about it. But we are now paying on reimbursement. We're in very
strict compliance with HUD guidelines, and we've made substantial progress. But I'd certainly like Ms.
Warren and Mr. Fernandez to answer some of the specific questions, which I'm sure that we have the
answers for.
Commissioner Regalado: Mr. Chairman?
Vice Chairman Gort: Yes, sir.
Commissioner Regalado: The HUD audit did question some of the ways that things were done. Did the
HUD audit specifically say that we should do as we're doing now, in terms of — because, you know, my —
I'm a little confused here because when one agency does not have funding -and is about to fire or dismiss or
lay off four or five persons for awhile and, then, we call and the situation is resolved. We talk to you. You
30 November 10, 1999
talk to the -- I don't know, then, why we have to wait just to the last minute to try to solve a situation. I
mean, none -- and, I mean, don't look surprised because I can tell you the names of the agency that were
about to fire people because they didn't have the funding, and it was resolved by your department and by the
City Manager. But my. concern is that no City employee goes home without a paycheck on the day that he
or she needs to go home with a paycheck. I mean, this City has problems and, yet, you, Mr. Manager, are
able to pay all the City employees. Yet, we keep having problems with agencies that work and do a ven-
good service. A lot of them that have performed very good throughout the years and,'yet, they keep having
the problems. Is it their fault or is it that we're not doing enough to resolve a situation? I mean, are we
killing those agencies with friendly fire? Is that what we're doing here? Because — I mean, you know, it's
lot of people — I visited — all of the members of this Commission visit those agencies and, you know, it's
very sad to hear, "No, no, we don't have the money to pay. We don't have —" there was a transportation
agency that was about to fire three drivers because they didn't have the funding until the Manager resolved
that situation and they couldn't do it. So, my question is, if the Manager could resolve that situation in one
day, why do we have to wait until the last minute? And that's my problem.
Vice Chairman Gort: Thank you. Yes, ma'am.
Ms. Gwendolyn Warren: Gwendolyn Warren, Director of Community Development. I'm going to try to
speak to the issue. The issue, Commissioner, is that there's two problems and they parallel each other. One
issue is that, in the past, we were able to advance agencies who do good jobs. And I agree with you, that the
agencies should be commended for the work that they do. But we were able to, because of the City's
financial position, advance individual agencies general fund monies and, then, seek reimbursement from the
Federal Government after the fact. Since the declaration of emergency in the City of Miami, per the
Commission and the Oversight Board, we no longer are allowed to use general fund monies to advance to
grant -funded agencies to wait for Federal reimbursement. What that requires is that we — the Federal rules
require that we reimburse agencies if we use their money, only for services that have been documented and
provided. So, we have a Catch 22. One, we can't advance City monies and in order to give them Federal
monies, we have to have documentation that they actually provided the service, and we need to have the
back-up receipts saying that they paid for it.
Commissioner Regalado: You're right.
Ms. Warren: So, you're right.
Commissioner Regalado: But you're right. But...
Ms. Warren: The agencies are being punished.
Commissioner Regalado: But you're right. But that was not my question. My question was, why do we
wait until the last minute? is it because they don't give you the right documentation? Is it -- I mean, my
question is very simple.
Ms. Warren: Some times.
Commissioner Regalado: Who's at fault, them or you?
Ms. Warren: Well, we're all humans. If there's hundreds of receipts, I'm assuming that there's fault on both
sides. But the real problem is that we're waiting to collect tons of information, to document federal
expenditures before we can, then, get the Federal Government to transfer money to the City, so that the City,
then, can cut a check. We're always behind the eight ball.
31 November 10, 1999
Commissioner Regalado: So, what you're saying...
Ms. Warren: So, until we could find a way to advance money to the agencies. we're stuck.
Commissioner Regalado: 'What you're saying. is that agencies should leave here today knowing that this
situation is not going to be resolved; that they're going to be on the red for the next month or so. because you
don't have the mechanism to process? We can't advance money. This is what is going on.
Ms. Warren: We do advance monies.
Mr. Warshaw: No. Commissioner, I'd like to answer that. Commissioner, no, I don't want them to leave
here feeling that. We deal with 150 agencies. The handful of agencies here, obviously, we have a problem
and we're going to resolve and work with every one of the agencies here to make sure that the problem gets
resolved, so that they can get their money.
Commissioner Regalado: Two handfuls. Two handfuls. I mean -- you know, I just feel that we are putting
the blame on the agencies and I don't think that's fair. I don't think that is fair. I. mean, at least, we should
accept some kind of, you know...
Vice Chairman Gort: Commissioners, the reason we're here today is to try to get at this problem. Now, my
question is, the non-use of general funds, is that a HUD requirement or our requirement? Because
reimbursement is reimbursement. I mean, if you submit documentation, my understanding is, the City -- and
I don't know how the County does it, but I think the — we should check with the County, also. Because my
understanding is, we can provide refunding, we can advance to them and, as long as you can document that
that expenditure is taking place afterward, you should be able to get money from HUD. They don't -- my
understanding is, HUD is not going to question where's the money coming from to make the payments.
Ms. Warren: HUD doesn't care who pays the agency. HUD just cares that, if you use their money, that it is
for services that have been provided.
Vice Chairman Gort: Correct.
Ms. Warren: That it is reimbursement for expenditures.
Vice Chairman Gort: OK. My question is this. The City can advance funds to the agencies...
Ms. Warren: If the City is in a position...
Vice Chairman Gort: Let me finish. Let me finish.
Ms. Warren: ... to advance general fund dollars and get reimbursed after the fact, that...
Vice Chairman Gort: Let me finish. What's the reimbursement? What was the advance — the total advance
that was given before? I don't think it's more than three or four hundred thousand dollars?
Mr. Warshaw: You're talking about annually?
Ms. Warren: Oh. The City does do a small advance on contracts. HUD reimburses that immediately.
What we're talking about is the monthly cash flow, which is in excess of a couple of two to three million
dollars a month. So, we would have to advance general fund monies and, then, get reimbursed for them.
32 November 10, 1999
Vice Chairman Gort: The monthly -- if we had the right system established, they should not have am
problems with their monthly. If there's two weeks...
Ms. Warren: This is what we're talking about, their monthly.
Vice Chairman Gort: Excuse me. Well, this is what we need to work on, to make sure that the requirement
-- they have all the criteria and the guideline, and when it's their fault, that they know'it's their fault. But if
we have the right system aboard, we can reimburse within two weeks. My understanding is, the majority of
the agencies is the up front money that they need to get established.
Mr. Warshaw: That's correct.
Vice Chairman Gort: Because we had the same problem with DDA (Downtown Development Authority).
And let me tell you. The City is to advance DDA funds and we — no longer could we do that, so we had to
create our own reserves.
Ms. Warren: We do advance agencies money right up front.
Vice Chairman Gort: Well, I think that's what their main worry was. Their monthly reimburse, I agree with
you. I think that's something that we need to work with the staff and come up with a right system, where the
payments can take place right away. OK. Sony.
Commissioner Regalado: Question.
Vice Chairman Gort: Yes.
Commissioner Winton: Excuse me. Can I ask a question about that? Because, certainly, if you're in the
development business and you go to the bank and get a loan, you get advanced funds to begin your
construction. Now, obviously, as a developer, you're going to have your own equity in the deal also. But I
think this is a good point for not -for -profit agencies. They're not going to have the same kind of reserves
that the private development communities are going to have. So, I think, the question that I might be asking
is, if you implement a system that could provide that advanced funding that these agencies need, can you
calculate how much money that would be? And if we know what the dollar amount is, in order to change
your procedure, then, maybe we can figure out how we can make that work. But right now, its just
hypothetical. I have no idea how much money that is. So, if you could provide us that number, at some
point, maybe we can develop a plan that works.
Vice Chairman Gort: To answer — I think we answered most of the questions, that monies are there.
They're not (unintelligible) an accounting things that they have to tell you. Number two, my understanding
is, the reason you should be getting your funds back within two weeks after presenting the documentations
provided all the documentation is in. And number three, my understanding is, an improvement should take
place where the questions would be answered by staff, as soon as they can. The other question was the
delay, and we addressed that about two meetings ago, when we had — we understand that some applicants
had been there for two and three years. I had a large group of applicants come to my office from — that their
applications had been in the City for quite a few years. My understanding is, we approved additional
inspectors in order to expedite the applications that are already in-house. Is that my understanding?
Ms. Warren: Yes, sir. And just to let you know. In the last 30 days, we have processed 45 new
applications, and the loans are moving out real smooth right now.
Vice Chairman Gort: How about the old ones that have been out for a long time?
33 November 10, 1999
Ms. Warren: Those are the ones we're working on right iiow:
Vice Chairman Gort: OK.
Commissioner Regalado: Mr. Chairman? Has any organization get an advance? None of them, right?
Ms. Warren: All organizations that request them have and do receive an advance on their contracts. Thee
can receive an advance of, at least, one -sixth of the. contract award and -- I'm song. Ten percent. And every
agency that asks has received it, and we do it almost automatically.
Commissioner Regalado: So, why are you saying that we can't advance, then?
Ms. Warren: Again, what we do is by law. When somebody is awarded a contract, we can give them a 10
percent advance. That 10 percent advance the Federal Government will allow because they do understand
that some of our agencies will have a cash flow. The problem is not the 10 percent. The problem is that the
agencies, even with the 10 percent advance, are still lagging behind because they have to pay their bills and,
then, be reimbursed because we only use federal funds. So, what happens is is that, if we give them an
advance in January of 10 percent, they'll use that advance to pay January's bills. Then, they'll submit a bill
to us at the end of February, proving that they spent it and, then, two weeks later, we'll cut them a check.
They're always in the rear. The way it used to work again is, we could use City funds and it wasn't an
immediate...
Commissioner Sanchez: Mr. Chairman?
Ms. Warren: ...need to document the expense and, then, get the Federal Government to advance the City a
check.
Commissioner Sanchez: Mr. Chairman?
Ms. Warren: It's a no -win situation. There's no middle ground on it.
Commissioner Regalado: Let me just finish one second, Commissioner. So, what you paid this lady was
with general fund money, right?
Ms. Warren: No. When you authorize a contract and we get it negotiated, what we immediately do if an
agency wants an advance, we will then put into the system and request that the Federal Government advance
us 10 percent.
Commissioner Regalado: No, no, I'm not talking about advance. I'm not talking about advance.
Ms. Warren: OK.
Commissioner Regalado: She mentioned that she was paid by check from the general fund.
Ms. Warren: All of our checks are City checks that are cut. None of the monies that are paid to our
agencies come from general fund money. They come from monies that have been requested and drawn
down from HUD. It's just a City check, but it is Federal funds that are transferred from the Federal
Government to pay that account.
Commissioner Regalado: OK.
34 November 10, 1999
Commissioner Sanchez: Mr. Chairman?
Ms. Warren: The Finance Director can verify that...
Commissioner Sanchez: Gwendolyn?
Ms. Warren: ...if you want. But you don't use -- we don't use general fund monies.
Commissioner Sanchez: Have you..
Vice Chairman Gort: Let me — excuse me. Let's clarify this point a minute. My understanding is, so
everybody understands -- and I want to make sure we clarify all the questions in here. My understanding is.
we get all the funds from the different grants from different places, and we don't have an account or
checking account for CDBG.
Ms. Warren: No. What you get is a grant award. In the end, you draw a down incrementally from the
federal paycheck.
Vice Chairman Gort: OK. You get the different grand funds and you don't have a different paycheck for
each one of those accounts?
Ms. Warren: No.
Vice Chairman Gort: All those funds, they're accurate, accounted for in whatever form we utilize, but all
the checks and all payments come out of the same account?
Ms. Warren: I'll let Judy Weatherholtz explain.
Vice Chairman Gort: Please.
Ms. Julie Weatherholtz: Julie Weatherholtz, Finance Director. What you're explaining is correct. We use
what's called the "Pool Cash Method" to where we have one bank account that houses our dollars. But our
computerize accounting system accounts for those dollars into different funds and one of those funds is the
CDBG fund and, so, any checks or requests for payment that comes from Gwendolyn's department gets paid
out of that fund, which, then, prior to being paid, the draw down occurs, the Federal money gets deposited
into that fund and, then, the accounts payable check goes out.
Vice Chairman Gort: OK. My understanding is — because it seems that the public thinks the check comes
out for CDBGs and different check comes out for another general funds, and check comes out — in other
words, we have three or four different checkbooks.
Ms. Weatherholtz: And we only have one checkbook.
Vice Chairman Gort: One checkbook. And all the funds, you account for them in your accounting — OK.
Thank you.
Ms. Fernandez: Mr. Chairman, my question...
Vice Chairman Gort: Ma'am, come on in here and tell me the difference, why you think there was a check
from general funds and not from general funds.
35 November 10, 1999
Ms. Fernandez: Well, I was told that it was no money in the account of the Single Family Rehab and that's
why my payment request, which I guaranteed that all my payment requests arrived her office correctly. with
all the papers that they needed.
Vice Chairman Gort: Let me ask you it question. Let me ask you a question. Do you. receive different
checks from different...
Ms. Fernandez: No, no, it's the same check.
Vice Chairman Gort: It's the same check. OK.
Ms. Fernandez: It's the same check. It's just, it comes out of different pots.
Vice Chairman Gort: I understand. But the answer is...
Ms. Fernandez: The problem — when I presently my last payment request, I was told that it was no money
on the funds of Single Family Rehab. And I was told yesterday that I was going to get paid this Mondav
from the general funds. But while I am very happy that I'm going to get paid this Monday, so 1 can pay my
subcontractors, but still she did not answer me the question about the delay on the applications. She has
applicants that come to the office everyday and files are being processed everyday. Once these poor people
come there and they get hope that they're going to be helped, the files go into other offices where they sit for
years before they come up in front of the Loan Committee to be approved.
Vice Chairman Gort: OK. Ms. Fernandez, my understanding is, we try to answer your questions on the
delay; that we have proved two meetings ago additional individuals so they can be done. Now, my problem
is, what I'm told and I'm told and different things, and we do have a problem in the department and,
somehow, that problem in the department, you have to keep that communication open somehow, because
you're saying one thing, your staff is saying something different, and they're receiving different messages.
Like the lady says — has been told that she's going to get paid from general funds and all that. I think we
clarified that, how payments are made by the City.
Ms. Fernandez: I understand how payments get...
Vice Chairman Gort: OK.
Ms. Fernandez: ... paid by the City. I worked for the County for many years...
Vice Chairman Gort: OK.
Ms. Fernandez: And I know how it's run.
Vice Chairman Gort: So, my understanding is, payments will be coming to you. My understanding is, the
people that are on the waiting list, they're trying to improve that and they're trying to put additional
individuals in, so we can move those applications a lot faster.
Ms. Fernandez: I understand that.
Vice Chairman Gort: OK.
Ms. Fernandez: The main issue here that you cannot retch anyone in that office.
36 November 10, 1999
Vice Chairman Gort: OK.
Ms. Fernandez: No matter how many messages, no matter how many memos you send. and no matter ho%N
many times you go there in person, they just don't return your call. And when they do return it. they have an
excuse...
Vice Chairman Gort: OK.
Ms. Fernandez: ...and they'll get back to you, and they never get back to you.
Vice Chairman Gort: We have addressed that. We're being repetitious right now. We have addressed that.
They understand that, somehow, they have to answer the questions that are being coming up to you. Now,
what I'm asking — and I'm telling each one of you, when you ask your question by phone, go ahead and fax a
memo also and send copies to the Manager and to ourselves. And if you don't get a response, this is -- the
way my office works. I send the Manager a memo and I ask for a reply within a certain amount of time. If I
don't get it, 1 send a second and third memo but I record all that. Conversations on the phones, they come
and they go. And I have requested of all the agencies, you ask by the phone but to send — fax the message.
And if you don't get a response, then we know. OK.
Ms. Fernandez: OK. I will fax all my messages now on, believe me.
Vice Chairman Gort: Thank you.
Ms. Fernandez: I'll sit next to my fax machine.
Vice Chairman Gort: Thank you.
Ms. Rodriguez-Tejera: Can I make a comment...
Vice Chairman Gort: Look.
Ms. Rodriguez-Tejera: ...and a recommendation? It's not a criticism. Just a thought.
Vice Chairman Gort: Go right ahead.
Ms. Rodriguez-Tejera: The HUD funds, once they're requested from HUD, are typically wire transferred
within 72 hours into our City. And one of the mechanisms that the County uses, and is something that is
just food for thought in terms of staff, is that in terms of payroll, instead of treating the payroll request as a
reimbursement request, that it be treated as a direct payment request, which the County, how they handle is,
the agency provides the County the document showing what payroll at the next Fridays going to be and the
County puts that request through to HUD. HUD pays it through wire transfer, and the County wire transfers
the funding to the organizations' bank account so a check is not even cut. So, by the time Friday comes
around, the organization already has the funds in their bank account.
Vice Chairman Gort: Thank you.
Mr. Fernandez: In theory, that's what we do, also.
Vice Chairman Gort: You do that also in the payroll?
37 November 10, 1999
Mr. Fernandez: The 72-hour's a Tuesday, that's why. the Tuesday requirement. The check goes out on
Friday, which is the 72 hours.
Vice Chairman Gort: How come some of the agencies don't get paid. then?
Commissioner Sanchez: Don't get paid for months.
Mr. Fernandez: I would have to — we would have to look at the log and we could do that. We could do a
closer evaluation.
Commissioner Sanchez: No, but wait. I still have one question that have not been answered.
Vice Chairman Gort: Why don't you go ahead and get all your questions in.
Commissioner Sanchez: Well, this is just one question. The 10 percent advance. Have we ever issued a 10
percent advance?
Mr. Fernandez: Yes, sir.
Commissioner Sanchez: We have?
Mr. Fernandez: Yes, sir.
Commissioner Sanchez: To how many agencies have we?
Mr. Fernandez: Pretty standard. Upon request. If an agency requests it.
Commissioner Sanchez: So — wait a minute.
Mr. Fernandez: Now, the issue comes, as you have a 10 percent advance, you have a 90-day pay back, too.
You have to justify that advance. So, in essence, that advance carries you for three months to try to get you
in better footing.
Commissioner Sanchez: So, everyone that has asked you for a 10 percent advance, have you granted that 10
percent advance?
Mr. Fernandez: Yes, sir. I'm not aware of any advance that we have rejected.
Commissioner Sanchez: You're not aware of any?
Mr. Fernandez: No, sir.
Vice Chairman Gort: Have you all received your advance?
Mr. Angel Gonzalez: Angel Gonzalez, 3280 West Flagler. Street. We have never — none of these
organizations that are sitting here have ever requested an advance.
Mr. Warshaw: Never requested an advance.
Vice Chairman Gort: You have not requested it?
38 November 10, 1999
Mr. Gonzalez: We have never requested an advance. The only time that we request an advance was when
we had the hurricane emergency and still...
Vice Chairman Gort: So, then...
Mr. Gonzalez: ...we don't have the money yet, OK?
Vice Chairman Gort: OK. All right.
Mr. Fernandez: Again, the advance is given upon request. It's not something that is automatic.
Vice Chairman Gort: I know. As you understand, you can request 10 percent of the total amount.
Mr. Gonzalez: No, we were never informed, you know. I have been complaining about not being able to
pay my rent, my bills. Nobody has ever told me that I could ask for an advance to cover my expenses.
Vice Chairman Gort: Now you know it. Request it.
Mr. Gonzalez: Fine. It took a year to find out. I mean; that's great.
Commissioner Sanchez: Yes.
Mr. Gonzalez: Great way to run an airline.
Vice Chairman Gort: Commissioner Teele, you got a question?
Mr. Warshaw: Commissioner, just like to say on the record, we've been giving advances like this for two
decades or more. So, I mean, this is something that's fairly well-known. But if the gentleman wants to put
in a request, we'll certainly look at it.
Commissioner Teele: Thank you very much, Mr. Chairman. I've not asked any questions. I'm going to,
with your permission and .indulgence, I'm going to find out a few things. First, Mr. Chairman, I want to ask
the Attorney, why are we here and what is the reason for this meeting? And what can we, reasonably, be
expected — under the letter that came down from HUD, what can we reasonably expect to accomplish?
Mr. Alejandro Vilarello (City Attorney): Commissioner, the call of the meeting was to review the
HUD -related grant activities included 1999-2000 Annual Action Plan. The HUD directive included a
requirement that a public hearing be provided so that we could — City Commission could hear any issues
that citizens might want to bring forward to your attention and that information, together with the public
notice for the HOPWA (Housing Opportunities for Persons with AIDS) and HOME programs would be
communicated together with the Consolidated Plan, back to HUD for their final review and approval.
Vice Chairman Gort: Commissioner Teele, my understanding is, we should go through the — we had to go
through the public hearings with this — what we have gone through in a little while ago. I think there's still a
lot of questions that need to be answered, and I hope the — if we would not be able to get all of the answers
today, all the questions that...
Commissioner Teele: Well, Commissioner — Mr. Chairman, with all due respect, I want to answer all the
questions because the Federal Law regs (regulations) require that all the answers be made. You know, we
have a real time box and, trust me, if I ask a question, I hope I know the answer. But we have a time box
and I don't know that the Commission understands that the awkward position we're in. Now, who raised the
39 November 10, 1999
question and has that entity's, respectfully -- Mr. Attorney, who raised the question and, respectfully. has
that entity been heard today? And I would, at least, like to ensure that whoever brought us back here today
— and I'm glad that you did, because I think the questions ought to be clear. And I come from the movement
that, if you can't get an -answer at City Hall, then you go to the Federal Government. There's nothing wrong
with that, and I encourage anyone to do that. But I want to make sure that, along as I'm sitting here, that, at
least, I do my part to ensure that your questions and that your rights are not trampled on. Because 1 wouldn't
be here if others hadn't protected my right. So, Mr. Attorney, can we identify the entity that raised the
question and can we be clear on the record that all of the questions that that entity has' raised have been
answered or that we are prepared to answer them at this time?
Mr. Vilarello: The HUD directive to the City does not include the individual or individuals who have
forwarded complaints to them. There had been a series of correspondence from Pablo Perez -Cisneros.
HUD has only asked us to address the issues of citizen participation in public comment.
Commissioner Teele: Is Mr. Cisneros here? Was he — did he speak today? is there any reason why Mr.
Cisneros can't speak? Do we need to defer this meeting or delay it if there — ? If he's sick, ill, or is there
any reason that, reasonably, he was not able to discuss the issues that he wanted to discuss?
Mr. Fernandez: It's my understanding, he may be out of town, sir.
Vice Chairman Gort: Commissioner Teele, I believe that some of the Cisneros' letters and the questions are
being addressed today by the people that are here today, so I'm prepared to be here all day. I don't have any
problem.
Commissioner Teele: And I think we all are. And I just want that...
Vice Chairman Gort: And I think we need to answer these questions.
Commissioner Teele: ...that to be the dialogue..:
Vice Chairman Gort: Right.
Commissioner Teele: ...on the record because I don't want anybody to think that we're in a hurry or that
we're rushed or that we don't have time to deal with the problems. The one thing that I'm going to ask is that
a transcript be made of the discussions today and that the transcript be sent to the Manager and ask that the
Manager respond, in writing, to all of the questions that he's responded to orally.and, specifically, to each
individual that made comments, and with a copy to come back to us. Because I think it's important that we
understand, for the record, that this is not a meeting that we called. This is a meeting we were directed by
the Federal Government on pains that — our plan would not be approved, which means that this City would
lose, substantially, 15 or 16 or upwards of twenty million dollars ($20,000,000) if we don't do this. And, so,
I don't think we -ought to gloss over this. Somewhere along the line something was done wrong, OK? And
that's why we're back here, is to correct it.. And I want to acknowledge whatever that was done wrong was
unintentional, at least from my vantage point; the notice provisions that the letter talks about, that were not
made for 30 days, I think that we need to establish —'and I would like to instruct the City Attorney to
develop an ordinance, if necessary, that ensures that anytime there is a public hearing, that copies of the
public hearing notices, not the actual notices that are printed in the newspaper, be made a part of the record
in each and every case. Because we don't — it's not our job to know if the notice was done properly. I mean,
that's a fair inquiry. It's a fair criticism and it's at the very essence of a public hearing. I mean, how can you
have a public hearing if you don't have notice of the hearing or adequate notice? And, so, we're wrong. I'm
wrong. The Commission's wrong. And we need to acknowledge that we're wrong, if there was a hearing
held that was not 30-day and sufficient public notice. And I don't know that HUD would have said that you
40 November 10, 1999
have to correct that, if it wasn't already corrected. And if we did have the 30-day notice. then the staff.
obviously, needs to provide us with documentation that we had the 30-dav notice but. for the purpose of
trying to have a complete record going forward, I want to apologize to the public and to tell you that I'm
happy to be here today -and hear your concerns and hear your complaints, and this Commission. I can tell
you, is prepared to stay as long as is necessary. And I'm the further asking, individually, that the Manager --
that the Clerk make a transcript of the record, that a copy of the record go forward with the response back to
HUD, and that a written response to every person that has adequately identified themselves and their
address, et cetera, and a question be provided in writing by both the City Manager and City Attorney over
their joint signatures, so that we can have a complete record as it relates to what we're doing and what we've
done wrong. Now, I would like to just try to understand the schedule that we have.
Vice Chairman Gort: OK. Commissioner?
Commissioner Teele: If 1 may, Mr. Chairman?
Vice Chairman Gort: Yes.
Commissioner Teele: I'm happy to yield.
Vice Chairman Gort: Commissioner, that's why people were present and asking the questions. I wrote them
down and I asked staff to address — we still have one more question, which is the — on the first issue that
was in front of us, which is the single family guidelines that were changed and they were new. That has not
been addressed. And I believe that, if we go through all the questions that — that was presented to us, like
you have, if they answer that, that might be — it would answer a lot of the questions that we have in mind.
Commissioner Teele: Well, that really is not anywhere near the questions that I have, as a result of this.
Vice Chairman Gort: Right. Well...
Commissioner Teele: So, let me finish my questions.
Vice Chairman Gort: OK.
Commissioner Teele: And, then, you all can do what you want to do because what I would like to
understand, first and foremost, is why was the Allapattah Organization placed under investigation and why
were they suspended and why were they put through all of this, and has an appropriate letter of exoneration
or explanation been issued by the Department? I've heard from them, that they were investigated by the
FDLE, they were investigated by this, and that's everybody's right but at the end of an investigation,
everybody wants one thing. You know, if Bill Clinton had given that lady a letter of apology, he wouldn't —
none of that would have ever happened. A lot of times it's better to just cut your losses and say, I'm sorry,
than to keep things dragged on. Because I can tell you, everybody is watching and dotting every "i" because
there are people have a real bad feeling about the way things have gone on around here for the last 18
months or two years. So, has the investigation of Allapattah — what's the name of the thing — organization?
Business Development — what's the name of your organization.
Mr. Gonzalez: Allapattah Business Development Authority. As far as...
Commissioner Teele: Now, hold it, please. Just a minute. You can't answer this question. You just need to
step back a minute and let me ask the question now. You had your chance. Now, give me my chance. Has
the Allapattah Business Development Organization's audit and review been completed by the City staff?
Forget FDLE, forget the FBI (Federal Bureau of Investigations), forget the CBI and everybody else. Just,
41 November 10, 1999
has there been an investigation and has it been completed by the City staff.
Ms. Warren: Yes, it has.
Commissioner Teele: Have they been provided with a letter of explanation or a letter of corrections that
you expect...
Ms. Warren: Yes, they have.
Commissioner Teele: ...or the findings?
Ms. Warren: Yes, they have.
Commissioner Teele: And have they responded appropriately?
Ms. Warren: Yes, they have.
Commissioner Teele: So, as far as the City is concerned, they're clean and, as we say in the ghetto, "good to
golf?
Ms. Warren: Yes, sir.
Commissioner Teele: And is that fair — a fair characterization?
Mr. Gonzalez: Of course, it is.
Commissioner. Teele: So, the question is, have you all applied for a 10 percent advance?
Mr. Gonzalez: No, sir. On the 10 years that I have been in the agency, we...
Commissioner Teele: Look, look. You know...
Mr. Gonzalez: We have never applied...
Commissioner Teele: I'm trying to help you. I'm trying to help you. Would you like to apply for an
advance?
Mr. Gonzalez: Of course. If...
Commissioner Teele: OK. Well, we would expect you to apply and ,we would expect that you would be
treated the same -way that everybody else is. And the gentleman has said, repeatedly, everybody that applies
has been approved. No questions. No problems. And, so, everything's hunky dory, and I hope you all will
be satisfied as a result of that. Was there anything that you wanted to add to that, sir?
Mr. Gonzalez: No. All I wanted to ask is — I just want to be treated.fairly...
Commissioner Teele: And fairly.
Mr. Gonzalez: ... as everybody else. I don't want to be treated different than anybody else.
Commissioner Teele: I think it...
42 November 10, 1999
Mr. Gonzalez: I'm a citizen, as anybody else here.
Commissioner Teele: That's why I asked the question, was the...
Mr. Gonzalez: That's all I want.
Commissioner Teele: That's why I — thank you very much. That's why 1 tried to ask and establish that the
investigation has been completed. If you're under investigation by the staff, then, maybe they have a right to
treat things under a closer scrutiny. But thank you very much. As it relates to the persons that have pending
applications for home improvement or the single family renovation that was substantially discussed. do we
have a full list and documentation of all pending applications in the City and do we know where they stand,
Ms. Warren?
Ms. Warren: Yes, we do and yes, we do.
Commissioner Teele: All right. Would you mind publishing that list, with everybody's name and
everybody's address and who the sponsoring agency is within the next 30 days, so that we can be very clear
that nobody's fallen through the crack and that we can clean this mess up, once and for all? Because I've
heard this throughout the community that I represent and I've heard it long before I was even elected to
office. It was one of the campaign issues. I apologize. What...
Vice Chairman Gort: No, no. Go ahead.
Commissioner Teele: And I believe the best way is for the sunlight to hit the door here for everything. So,
I'm requesting — and I would be prepared, if the Chairman, at the right time would allow me to move, that
the management be instructed to publish, in all newspapers, a list of the pending applications of those
persons — some of them maybe alive or gone on to glory. Some of them may have moved — and the year
that they applied, as well as the sponsoring agency, if any, and any other information that would be readily
available under the public records laws of Florida, but not to reveal any information that would be protected
under the privacy laws. Is that a problem for the management?
Ms. Warren: No, it is not.
Mr. Warshaw: No, sir.
Commissioner Teele: And with that -- I just would like to make sure that that would, at least, put everything
on the table as it relates to the pending home improvement, single -- we're talking now about single family
residential home applications. About how many applications would you estimate there are? By the way,
Mr. Manager, since one of your directors is coming in, I would just like to — Mr. Attorney, don't reprimand
me, please, because it's probably beyond his call, but I can't have it — I don't even have a telephone. The
new -- the press has recorded correctly that I did change offices and, Johnny — Mr. Winton, I just want to
tell you, you've been a real gentleman and I appreciate you not making a stink, the way some other people
have tried to. But, at least, please, give me back my telephone that everyone has — apparently, you have two
in your office and I can't get it back. So, I'm not apolo — I'm not complaining.
Commissioner Winton: You're welcomed to come over and get whatever you need
Commissioner Teele: About how many, Ms. Warren?
Ms. Warren: Approximately, 35.
43 November 10, 1999
Vice Chairman Gort: That's all home improvement?
Commissioner Teele: Ms. Warren, there's at least...
Vice Chairman Gort: No, I think...
Commissioner Teele: ... 50 in my district that...
Vice Chairman Gort: Yes.
Commissioner Teele: ... I heard about.
Vice Chairman Gort: There's a lot more than that, I could tell you.
Commissioner Teele: Well, why don't we just publish all of them that are there? And why don't we also
include another 30-day application period for anybody who would like to apply or reapply?
Ms. Warren: We have a continuing application.
Commissioner Teele: Do you have a problem with what I'm saying?
Ms. Warren: Absolutely not.
Commissioner Teele: If there is a continuing application, then, it's the same thing.
Ms. Warren: Yes.
Commissioner Teele: OK. The next issue relates to guidelines that have been changed — apparently
changed or published. Is there any element of truth to that? And have we ever — do we have guidelines?
Ms. Warren: We have guidelines.
Commissioner Teele: And were those guidelines published?
Ms. Warren: Those guidelines are published in our — yes.
Commissioner Teele: Are those guidelines published in a newspaper of general circulation and to the
public?
Ms. Warren: No.
Commissioner Teele: OK. Can we establish and adopt.a policy, Mr. Attorney, Mr. Manager, that we will
do things in a very open and transparent manner? And that guidelines — I mean, Federal guidelines, State
guidelines are always published. County guidelines are always published. I see no reason why municipal
guidelines are not published.
Ms. Warren: They're in publications.
Commissioner Teele: And, if I may, that they be published with a comment period, whereby any person
who would like to comment on them, has 30 days to comment on them, unless we're publishing them as an
44 November 10, 1999
emergency guideline. Now, obviously, we don't have any standards, Mr. Attorney — obviously. we don't
have any codified standards on this, or do we? But if we do have standards. I would hope that those
standards could be amended to include that any guideline, regarding a Federal program. shall be published
in not only newspapers: of general circulation but newspapers that — of which the community of interest
generally reads; that there -is a 30-day comment period or some comment period.. and that those guidelines
will not be effective until the comment period has closed, unless they're proposed as an emergence
guideline. Can someone give me the ordinance or the resolution that codifies that? My question is, is it
codified? is it done pursuant to an ordinance or a resolution in the City?
Mr. Jeff Hepburn (Assistant Director, Housing): Commissioner, what happened back in September...
Commissioner Teele: Excuse me.
Mr. Hepburn: Yes.
Commissioner Teele: I didn't ask what happened in September. I want to know what are the guidelines,
procedures, that are now in effect in the City? Do we have an ordinance? Do we have a resolution and
were those guidelines pursuant to that resolution or ordinance? -
Mr. Hepburn: Commissioner, there was a resolution adopted by this Commission..
Vice Chairman Gort: Excuse me.
Mr. Hepburn: ...back in September.
Vice Chairman Gort: Excuse me. Who are you?
Mr. Hepburn: Jeffrey Hepburn, Assistant Director, Housing.
Vice Chairman Gort: Thank you.
Mr. Hepburn: There was a resolution before this Commission authorizing the Manager to revise the
program guidelines for the Single Family Rehab program. Because, historically, that program has been both
a grant program and a loan program.
Commissioner Teele: Mr. Hepburn, I respect you. I hope you will respect me.
Mr. Hepburn: I will.
Commissioner Teele: The Manager, having the authority to do something, means he does it within the
context — the President of the United States, the Secretary of Labor, the Secretary of Transportation can do
things, but they have to do it within the context of the law or the procedures established by Congress. Did
the Manager issue those guidelines and publish them in a newspaper or in any publication of general
circulation to the public? Yes or no.
Mr. Hepburn: Today, no.
Commissioner Teele: All right. And all that I'm saying is, I'm not criticizing that decision. That's our fault.
That's not his fault. If we don't have standards, if we don't have guidelines, if we don't properly legislate,
it's not on the Manager to legislate. If I were the Manager, I'd do the same thing. I'd do it just as — why get
yourself all involved in that? The problem is, is that we have to be responsible — each of the five of us have
45 November 10, 1999
to be responsible for the people who may or may not gotten the word. And, so, all that I'm asking=,
respectfully, of the Attorney is, Mr. Attorney, do you have a problem.developing. with the Manager and the
staff, appropriate ordinance that deals with guidelines or program rules or any of this so that we don't have
to go through these kinds and have the public to, legitimately, come and say, "you changed the rules and I
didn't know"? How do they know that the rules are going to be changed, unless they're on the inside, unless
they've got a Gucci -wearing lobbyist or lawyer or somebody? I mean, there's a lot of: eople who don't have
all of those things, who don't sit around City Hall. I kind of wish we could get some bf these people that sit
around City Hall more out in the community working with who they're supposed to be working with and
less with us. And if we would give a fair set of rules and standards so that it doesn't dependon which
Commissioner you know or which Assistant Manager you know, that everybody's on the same thing. I think
we'll see less of the people — the Community Based Organizations down here trying to protect themselves,
because they're down here, legitimately, trying to make sure that something happens that they don't know
about. So, Mr. Chairman, I realize that you want to move on.
Vice Chairman Gort: No.
Commissioner Teele: I just want to make one final comment on this whole area, is that I know that several
Commissioners appeared to be poised to make motions or to address changes in this. I know, as a matter of
law, Mr. Attorney, we can make any changes to the action plan in this meeting that we choose to, is that
correct, based upon the hearing?
Mr. Vilarello: You can modify your 1999/2000 Annual Action Plan.
Commissioner Teele: However, we've also heard from staff that on November 16th, the same action plan is
before us for another comment period, is that correct?
Mr. Vilarello: I believe...
Vice Chairman Gort: That is correct.
Ms. Warren: No, it is not. What you're doing today is ratifying what you have already done in previous
Commission motions. What's before you in Tuesday is future annual plan actions that you intend to
implement.
Commissioner Teele: Well, I've got to tell you something. I've read that letter very carefully that Federal
HUD sent down. What they said to us is, we've got until tomorrow, as I read it, to — is it Monday?
Mr. Warshaw: Friday.
Commissioner Teele: What day, is it 5th — the 15th...
Ms. Warren: The 15th.
Mr. Vilarello: Forty-five days from September 30.
Commissioner Teele: And, then, they are going to take 30 days — is that what the letter says?
Ms. Warren: There's two separate issues. What they're — the action plan that we filed included the things
that you had already approved. What they're asking is, the things that you have already approved be
reaffirmed in a public hearing., You can go forward and approve additional items and additional contracts.
You're ratifying the contracts you already did.
46 November 10, 1999
Commissioner Teele: But can I say this to the Attorney? Mr. Attorney — and 1 don't want to put -- 1 don't
want to impregnate this record with something that would be harmful. But do you have a list of what %re've
previously approved?
Ms. Warren: Yes. I can tell you. You can read it into the record. It's also in front of you.
Commissioner Teele: I'm asking the attorney.
Ms. Warren: OK.
Mr. Vilarello: If I personally have...
Commissioner Teele: Not personally, but officially.
Mr. Vilarello: Officially, have we been provided — ? I don't — I can't tell you whether or not we've been
providing it.
Commissioner Teele: Does it contain dollars?
Ms. Warren: Yes. It says attachment to your letter.
Mr. Vilarello: It is in the pack — it's in the agenda package. Including dollars for Economic Funding,
Housing Administration Funding...
Ms. Warren: Those are all the thing that you had previously approved.
Mr. Vilarello: ...Public Service, Municipal Programs, HOPWA, HOME...
Commissioner Teele: That's the document that you're referring to?
Mr. Vilarello: ...and Emergency Shelter Grant funds.
Commissioner-T-eele: Let me -- how is that document characterized? How was this document
characterized?
Ms. Warren: The Annual Action Plan.
Commissioner Teele: Is there a single two -page — I see Mr. Winton has another document.
Ms. Warren: That's the actual ad.
Vice Chairman Gort: Allocations.
Mr. Warshaw: That's the ad for today's meeting. He's got those same documents.
Commissioner Teele: What Mr. Winton has?
Mr. Warshaw: Everyone has a - it's attached to the agenda, Commissioner.
Commissioner Sanchez: No, that's different.
47 , November 10, 1999
Commissioner Teele: I've got four different documents up here. I mean. are you referring to the document
that is characterized as "Public Hearing, Saturday, October 30th. www(dot)com, page 513"?
Mr. Fernandez: What you have, sir, is you have the Action Plan,
which details each project — correct. Each project is broken down by the name of the project...
Commissioner Teele: Is this the fullest of the docu...
Mr. Fernandez: Yes, sir. Those are all the projects that have been approved...
Commissioner Teele:... of the projects that were previously approved?
Mr. Fernandez: ... so far by the City Commission.
Commissioner Teele: And you want us to ratify that today?
Mr. Fernandez: What HUD has asked us to do is, HUD — staff met with HUD to specifically address the
course of action that would satisfy their requirements. What HUD indicated that we had to do was, we had
to have a public hearing, to give the public an opportunity, a final opportunity, to comment on the City's
action plan. The actions already taken by the City Commission.
Commissioner Teele: Ms. Warren — and this, of course, is a very delicate discussion, but it needs to be had,
particularly, since Mr. Winton is here. This Commission has repeatedly instructed you and your staff, when
we're talking about total funding, to provide, on a district -- 5-district basis, the total number of dollars that
are going back into those districts, excluding the citywide issues, excluding the administration issues, but,
more importantly, the total amount of dollars that those districts generate under the formula. Now, I have
been waiting for, at least, four months for the formula generation calculation. 1 even heard some absolutely
reckless discussion that the Commission — that the Manager was going to recommend that the Commission
like take a sum of money and divide one/fifth, one/fifth, one/fifth, or something like that. I understand it
was said during the budget hearing, Mr. Clerk, and I wasn't hear. That characterization was attributed to
Mrs. Bianchino, I believe, and I've not seen it so, I'm not going to comment on it. Before we start approving
anything, I would like to know the answer to the question. Because I'm going to tell you, if this City doesn't
change the way it does business, I'm going to be in a lawsuit against the City. I've said that. I mean, I don't
know how many times I've said it. I've said it about the parking fees. The parking fees still aren't straight. I
don't want to raise a bad issue. They were supposed to be resolved on September 30th. They still haven't
been resolved. You know, and somehow old habits are hard to break. And I'm saying this because I want
Commissioner Winton to understand that you cannot have the most affluent district. You cannot have 40
percent of the tax base of the City and get disproportionate municipal services and, then, double dip in the
Community Development category. 1 mean, the fact of the matter is, is that Community Development funds
are not -- no, no, no. I'm just putting it on the table, Johnny. Because it was an issue that J.L. and I
discussed and debated and never agreed on, and I agreed to disagree, and the staff was supposed to basically
break the tie on this issue and, that is, to provide us — and I think it's important that every Commissioner up
here know exactly how much CD (Community Development) funds their district, the district that they
represent — because this is not -done on population. - See, a lot of people think it's done on population. It's
not even done on poverty. It's done on a four formula — on a four tier formula, which is population, poverty
and density of poverty, as I understand it. And something else.
Ms. Warren: Housing.
Commissioner Teele: And housing. Something relating to housing. And, so, if Commissioner Sanchez, as
48 November 10, 1999
he just said then, a few minutes ago, he represents the poorest district in the Cite, 1 don't know that that's
true. I don't disagree with him. But if he does, he's supposed to get more Community Development money
than anybody up here, OK, for his district, not for him but for the district. And what I want to make sure is
that we're approving a- plan now — because we approved this plan. before, without the benefit of that
information. At least, I didn't have it. At least, I didn't focus on it. If you could just give it to me...
Ms. Warren: It's on page 27.
Commissioner Teele: It's on page 27?
Ms. Warren: Through page 35 of the book you have.
Commissioner Teele: What percentage of CD funds do each of the districts -- let's just put on the report
because the public does not have that book, and this is being viewed by the public. And this is a very good
point, I think, for all of us — three of us being just reelected and two of us being here — to understand the
relative relationship. Now, there are going to be some citywide projects, there's going to be administration,
there's going to be developmental projects that come off the top, but the fact of the matter is, on a
relationship of the available dollars for each district, OK, on the available project for each district, the public
needs to know -- and if you could just go down the line, starting with my colleague, Commissioner -- who's
District 1.
Mr. Fernandez: On page 29 of the Consolidated Plan, it's broken down by the historic target areas rather
than district, Commissioner.
Commissioner Teele: No, no.
Commissioner Sanchez: What page is that?
Commissioner Teele: That doesn't help.
Vice Chairman Gort: Twenty-nine.
Mr. Fernandez: Page 29. There's a pie chart that breaks down how the formula derives the funding for the
City.
Commissioner Teele: See, see, that's what we talked about before. That is a very helpful start, but that
doesn't help you. Every person — you know, with just about 10 minutes worth of work with the City Clerk
and with the County's GSI (sic) or the City's Planning Department somebody could push a button and give
you all that information. Because all of this is based upon — ma'am — all of this is based upon a
court -approved census track data. All of this information is census track. So, while we talk about
neighborhoods — and I think that's correct — for example, Johnny Winton and I share a neighborhood called
Allapattah, OK. And we share — I'm sorry.
Commissioner Sanchez: Wynwood.
Vice Chairman Gort: Wynwood.
Commissioner Teele: No. Wynwood and, more particularly, Park West, you know. And the vast majority
of dollars that we spend in the CRA (Community Redevelopment Agency), for example, have gone into
your geograph — into the geographic district that you now represent. The vast majority of CRA funds, OK.
In fact, the vast majority of all CRA funds have gone into the Omni district. The largest amount for this
49 November 10, 1999
year is committed to Omni. But the point is this. When you take out those projects that are. citNrx%,ide in
nature or they have a citywide, what you call it.. Metropolitan significance — for example. the paving of
Biscayne Boulevard is something, I think we all would agree, is a citywide project, even though it may be in
your district. But that's not what we're talking about when we talk about the Community Based
Organizations. Because what has developed over the last 10, 15 years has been a culture and, therefore, a
tradition of funding that I have been seeking to have an intelligent, statistical review based upon one of five
factors, District I, District 2, District 3, District 4 and District 5. And we did that in the County. We hired
some firm out of Washington. It was 13 and we can do it here. Do we have that information available?
Ms. Warren: We can get that information.
Commissioner Teele: - Do we have that...
Ms. Warren: Not right here, right now, no
Commissioner Teele: OK. So, that — it's the same point I'm saying. We still have not done that. And when
I vote, on behalf of my district, I want to be able to cast an informed vote. As I said before, Ms. Warren...
Ms. Warren: I just want to — one bit of information, sir. The HUD geographic distribution is done by
census track and poverty in those census tracks. We do have that throughout the City, geographically. We
have never broken it out by district, but we have broken it out by subcommunity and it does include the
whole City. And I think that the — even if we did it geographically, it is still not going to increase the
numbers of individuals in poverty in those districts.
Commissioner Teele: Ms. Warren, you've not — you know, I understand...
Ms. Warren: I just...
Commissioner Teele: ...what,you need. You've got to understand what I need because I'm the person with
the vote, OK?
Ms. Warren: The Planning Department will get that information.
Commissioner- Teele: And what I'm saying to you is, this is not space -aged technology. The County hired
a firm in Washington. I think they paid him six thousand dollars ($6,000). It's all loaded on computer.
They can present it to you — anything, you know, within 20 feet of the Miami River. You can break it out
that way.
Ms. Warren: So, can the Planning Department.
Commissioner Teele: The data can be available. We've requested it. We're still requesting it. I'm going to
make this request one more time because I think it's helpful for Commissioners to understand the relative
relationship and how dollars need to flow, recognizing that this should not be a statistical exercise. And I
have said, repeatedly, for example, on the facade improvements. Give all of the facade improvements in the
Little Haiti and the Little Havana and the Flagami area because, quite frankly, we have not, in the Hadley
Park/Liberty City/Overtown area, been able to make that program work for various reasons. And I know
there are a lot of the people in the community that disagree with me. But the fact is that we need to place
the dollars where the need is first, but it needs to be guided based upon where the dollars are coming from,
and that's my only point.
Vice Chairman Gort: Commissioner Teele, my understanding, Commissioner Regalado had to go to work
50 November 10, 1999
and we can be back here at 1:30. Commissioner Sanchez, you want to ask your questions or you're going to
wait until 1:30?
Commissioner Sanchez:.111 wait until 1:30.
Vice Chairman Gort: Come back at 1:30?
Commissioner Teele: Is he available at 1:30?
Vice Chairman Gort: At -1:30 he's available. He had to go to work from 12 to 1:30. And some of the
questions -- I was hoping that staff was taking down some of the questions that were asked so you can
answer them later on. The second was the Miami Capital, the question of communication between the
department and agencies. I'd like for a response from you all, how that can be improved. At the same time.
the allocation. My understanding is, any change in any of the forms that they're going'to use, it's got to
come and be approved by us. Am I correct?
Ms. Warren: Any change in...
Vice Chairman Gort: Any change in compliance or any changes you're going to require to do — what do we
call them? The question was...
Commissioner Sanchez: Willy, one -- Mr. Chairman, just one question.
Vice Chairman Gort: Yes.
Commissioner Sanchez: And I'll start my questions at 1:30.
Vice Chairman Gort: The question, any policy changes, it's got to be approved by this Commission.
Ms. Warren: Always.
Commissioner Sanchez: Absolutely. It's just — it's reference the reimbursement packages that were turned
in and it's one of the questions that I left out when I had my opportunity to speak. And why is this,
sometimes the reimbursement packages take so long? Sometimes two months to be paid.
Ms. Warren: We never heard of them.
Commissioner Sanchez: You never heard of them?
Ms. Warren: We have never taken two months to do a package.
Never.
Commissioner Sanchez: Even to pay a package when it's done?
Ms. Warren: No. So, if somebody could give us some information, we'll look it up.
Commissioner Sanchez: Well, I think that somebody could get up and say — has anybody had an experience
where their packages have taken a month?
Mr. Luis Federal Government, Jr: Luis Sabines, 'Jr. I'm the Assistant Director of Small Business
Opportunity Center. We've had times when...
51 November 10, 1999
Vice Chairman Gort: Address, Mr. Sabines.
Mr. Sabines: 6407 Northwest 2nd Street, Miami, Florida. We've had times when a reimburse -- in fact. we
have one right now that we turned in on October the 1 Oth, I think, which we haven't been paid for. Also. the
facades for the contractors. This is the big problem we have. They've taken sometimes two months to pay
these contractors for jobs that they do. These are mom and pop companies, that are not big companies.
That live daily. And we have problems now because we don't have contractors that want to take Cite jobs
because of the length in pay.
Ms. Warren: If we could have the names of any of these people, we'll love to give you some information
this afternoon.
Commissioner Sanchez: OK.
Vice Chairman Gort: Will you provide with a list of the people that have been paid?
Commissioner Sanchez: Can you provide us with a list?
Mr. Sabines: Sure. In fact, I have a — right now, I can tell you I have a facade that I turned in on the 5th of
October that hasn't been paid for, yet. It's over a month. I can tell you the name of the facade. It's — if I'm
not mistaken, I think it's...
Vice Chairman Gort: It's on the record, but will you write it down and...
Mr..Sabines: Sure.
Vice Chairman Gort: ... give her a copy of all those individuals...
Mr. Sabines: Sure.
Vice Chairman Gort: ...that have been performing and not been paid, please?
Mr. Sabines: Sure.
Vice Chairman Gort: Thank you.
Commissioner Teele: Mr. Chairman...
Vice Chairman Gort: Yes.
Commissioner Teele: ...and when we come back, could we have a discussion on what the action plan is for
Miami Capital and...
Vice Chairman Gort: Right.
Commissioner Teele: ...the timetables and the timelines and what it is we're proposing, specifically, please?
Vice Chairman Gort: Well, I told staff that -- I hope they took notes, like we did, of the questions that were.
asked and they will be prepared to come back and answer them. Thank you. See you all at 1:30 p.m.
52 November 10, 1999
THEREUPON THE CITY COMMISSION WENT INTO RECESS AT 12:30 AND RECONVENED AT
1:41 P.M., WITH ALL MEMBERS OF THE CITY COMMISSION FOUND TO BE PRESENT
Vice Chairman Gort: Commissioner Sanchez, you have the floor.
Commissioner Sanchez: Yes, sir. Thank you, Mr. Chairman. If I...
Vice Chairman Gort: Hello. We have a meeting going.
Commissioner Sanchez: No. Mr. Chairman, I just, for clarification, had a couple of questions that I wanted
to get answered because I think it'll settle the dust, pertaining to a lot of questions that are misleading and,
apparently, it's not providing the proper answer, and I have a list of questions. I did have the opportunity to
ask one before we broke for lunch. So, if I could ask these questions. When did the Community
Development fiscal year start?
Mr. Fernandez: The 25th year, it began October the 1 st.
Vice Chairman Gort: Name and department, please.
Mr. Fernandez: Dan Fernandez, Assistant Director, Community Development.
Commissioner Sanchez: And when was the Action Plan for this year due?
Mr. Fernandez: August the 15th.
Commissioner Sanchez: OK. And that's when HUD gave an ultimatum to produce an Action Plan by
November the 15th? It gave you an ultimatum...
Mr. Fernandez: Well, following the...
Commissioner Sanchez: ...to put together a plan?
Mr. Fernandez: Following the HUD review of the City's Consolidated Plan and Action Plan, they felt that
we needed to do some additional action, and that's why we end up with this particular meeting.
Commissioner Sanchez: And I know this was discussed and Commissioner Teele brought this question up.
But I wasn't quite clear why it was turned down. One, I believe that when it was presented, it did not have a
one-year plan and, also, the other reason was that it did not have — it did not fall in compliance with the
input from the public through the process that was required by HUD, is that correct?
Mr. Fernandez: There was a concern regarding the 30-day comment period relative to the Annual Action
Plan.
Commissioner Sanchez: Mr. City Attorney, does the plan meet Federal requirements?
Mr. Vilarello: HUD has made a finding that requires us to meet again, now, to take additional public input
at a public hearing. They indicated, in their letter of September 30th, that it did not meet HUD
requirements.
Commissioner Sanchez: Does it meet the requirements today?
53 November 10, 1999
Mr. Vilarello: But when you conclude this public hearing and — yes. it will — you will have met the HUD
requirements.
Commissioner Sanchez:.I wanted to discuss one of the items, that is, the unprogrammed funds. How much
money, in total, is in the unprogrammed funds?
Mr. Fernandez: There is no money that's unprogrammed, Commissioner.
Commissioner Sanchez: There is no money?
Mr. Fernandez: The 25th year.allocation is accounted for in its entirety in the Action Plan.
Commissioner Sanchez: Well, I...
Mr. Fernandez: Now, what will happen is, the Action Plan may...
Commissioner Sanchez: Before you go any further, I spoke today with Jack Johnson from HUD, just to
clarify some of the questions that I had, that I felt that, along the process, were never answered. Well, one
way or the other, I know that some of the answers that are brought forth here by the Commissioners,
sometimes you do get an answer. Sometimes you don't get an answer. Sometimes what you do is a lot of,
you know, beating around the bush with the question. But one of the things that he talked about — and I
didn't quite understand — was that the CDBG can only allocate 10 percent of CDBG for a contingency plan.
Elaborate a little bit on what that process is because I'm confused on that.
Ms. Warren: What he's basically -- Gwendolyn Warren. What they're basically saying is that you can only
— a contingency fund is a fund — a group of funds that is not allocated or dedicated for a specific reason and
that, of our total twelve million seven, you can take 10 percent of that and set it aside and not indicate what
its use is going to be. The Commission has indicated what they're going to use the whole twelve million
seven, plus the three million five of Program Income. You have allocated a hundred percent of the dollars,
either directly to an agency or you set it aside for a specific purpose.
Commissioner Sanchez: Does it exceed the 10 percent?
Ms. Warren: What you did is, you...
Commissioner Sanchez: Does it exceed the 10 percent, yes, sir?
Vice Chairman Gort: No.
Ms. Warren: No, it does not.
Commissioner Sanchez: OK. It does not? And you're telling me that unprogrammed funds, zero?
Ms. Warren: Zero.
Commissioner Sanchez: There is no money in unprogrammed funds?
Ms. Warren: There is no money that this Commission has not designated its use, correct.
Commissioner Sanchez: Now, if there was, we could allocate that amount, after the public hearing, a month
from today or two months afterwards...
54 November 10, 1999
Ms. Warren: Absolutely.
Commissioner Sanchez:. If we were to put the money in there?
Ms. Warren: Absolutely.
Commissioner Sanchez: The reason why I say that — and I want it on the record — is that I -- through the
process, 1 felt that seven or eight organizations that were left out, for whatever reasons, being filed late.
some had valid reasons, some did not have valid reasons, but these organizations provide a vital support and
services, not only to my district, but Commissioner Winton's district and also Commissioner Regalado's
district. So, I just wanted to have an assurance that, later on during the process, this Commission could
allocate funds to those organizations, if they fall within the guidelines of CDBG.
Ms. Warren: This Commission has the authority to authorize under-utilized funds. In other words, any
monies we recapture or any unanticipated funds that we identify in the future, at any time you want. What
you have done so far, as a Commission, is you've identified exactly what you intend to use that sixteen
million dollars ($16,000,000) for. And through this action today, there are certain — a certain portion of
those funds you have already used and we're requesting that it be ratified. Any future funds you can...
Commissioner Sanchez: So, Mr. City Manager, one — correction, Mr. City Attorney. Just for the record,
one, that the plan does meet Federal requirements? You stated yes?
Mr. Vilarello: Yes.
Commissioner Sanchez: And, also, you do not see any defects in this proposal or presentation?
Mr. Vilarello: In the presentation before you?
Commissioner Sanchez: Where there may be something wrong that HUD may kick it back and force us to
have another meeting and scramble through a position again?
Mr. Vilarello: If you comply with the conditions laid out in the September 30th letter, which you are doing
that by having. the public hearing, you'll have satisfied HUD's requirements with regard to this 1999
Consolidated Plan. Now, they do have 30 days to review and approve the Plan, and they have — with that
right of approval, they have the right to review and if they find anything else, they will let us know about it.
Commissioner Sanchez: Thank you, Mr. Attorney City. Thank you, Ms. Warren. Mr. Chair, thank you.
Vice Chairman Gort: Mr. Sanchez, I think it's important for you to understand, my understanding is, what
you're talking about in the future, to do future allocations, there's no funds. Unless someone defaults or
some funds are taken away from an existing agencies. OK. Any other questions of the board members?
Commissioner Regalado: Thank you, Mr. Chairman.
Gwen will help me understand. The 15th is the date.
have done.
Ms. Warren: Correct.
I still want to make something clear, and I hope that
No extensions of what we're doing here and what we
Commissioner Regalado: However, if we do not change some of the amounts today, this cannot and will
not be changed. We cannot do this on Tuesday, is that correct?
55 November 10, 1999
Ms. Warren: Correct.
Commissioner Regalado:- .Yes or no?
Ms. Warren: You're convect, you cannot do it next Tuesday.
Commissioner Regalado: OK. So, I would wait for my colleagues because I think that there are some
figures that need to be changed, at least that's what I think, on different programs. And you help us with the
number. And I think that Commissioner Gort — Chairman Gort mentioned that if we add some money to
one program, we'll be taking that money from other programs. I don't think that this is the case because I
think that we have money that has not been allocated and that we can use for Social Services program?
Ms. Warren: No, sir.
Commissioner Regalado: Yes, we do. Do we — we don't have around = close to nine hundred thousand
dollars ($900,000)?
Ms. Warren: You have nine hundred plus thousand dollars that you have not currently awarded
Commissioner Regalado: Exactly.
Ms. Warren: ...that you put out in an RFP (Request for Proposal), that is to go to special districts that have
not been serviced in the past. That RFP is due to come back here in September.
Commissioner Teele: Ms. Warren — if you would?
Commissioner Regalado: Sure.
Commissioner Teele: On that point, what you're saying, Ms Warren, is that because there is a bid process,
to use a lack — in this context, a grant process, that allocates or that will end with the allocation of all of that
money, they went out with a document everybody submitted. Now, it's got to be evaluated. It, then, has to
go to the Community Development Advisory committee and, then, back to us; that that money is really not
available, and to try to make that money available now would invalidate that entire process. Now, once
those dollars come to us...
Ms. Warren: You can do what you want:
Commissioner Teele: ...you're free, with consent of two colleagues, to — and the Mayor not vetoing it — to
do pretty much what you'd like to do, and I certainly would like to support what you think is right.
Commissioner Regalado: Commissioner, I understand what you're saying. My only problem is that I feel
that what we are approving here has some problems in terms of some agencies functioning.
Commissioner Teele: Commissioner, I will support — and I would assume that the majority of the
Commission would support — refinements of the existing grantees in terms of moving dollars around. But I
think, for the purpose of this review, we should not bring dollars that are not before us because they weren't
advertised, first of all. And if they were advertised, then we could do it. But, you know, remember, this is a
process that's going to be reviewed. And, so, to the extent — what's the total amount of money that's on that
sheet, seven million or twelve million or —?
56 November 10, 1999
Ms. Warren: Twelve million seven hundred thousand, if you exclude the moneys that are out to bid. which
would be the nine...
Commissioner Teele: If there are some adjustments that you would like to recommend to the Commission. I
would certainly second it for the purpose of discussion and allowing a discussion on it, based upon what's
on the table but not based upon trying to identify funds that may or may not be available at this time.
Because they will be available.
Ms. Warren: They will becoming in just...
Commissioner Teele: Excuse me. What is the approximate date, just so that...
Ms. Warren: We're looking to come to the Commission at the December 7th meeting.
Commissioner Teele: So, on December 7th, the dollars that you're talking about or making reference. to
would be available for your review and action?
Ms. Warren: Correct.
Commissioner Sanchez: OK.
Ms. Warren: And if I could just...
Vice Chairman Gort: Let me ask a question that my clarify it. My understanding, this allocation that's been
here has been made by us before. These are the Social Service agencies and some of the Economic
Development agencies. Now, correct me if I'm wrong. My understanding of the nine hundred thousand
dollars ($900,000) that is for...
Ms. Warren: New programs.
Vice Chairman Gort: Excuse me?
Ms. Warren: New programs.
Vice Chairman Gort: New programs or existing programs?
Ms. Warren: It's for new programs. The Social Service agencies...
Vice Chairman Gort: The nine hundred thousand dollars ($900,000), is that strictly for Social Services?
Ms. Warren: The nine hundred thousand is strictly for Social Services.
Vice Chairman Gort: For Social Services?
Ms. Warren: Yes, sir.
Vice Chairman Gort: What happened to the Economic Development here? Like, for example, I've seen in
Allapattah, you only allocated fifteen thousand dollars ($15,000) for...
Ms. Warren: Again, if I could, just for a second. The action that we're asking you to — that's under review
today, is your previous actions, which included extending all of the Economic Development agencies
57 November 10, 1999
through the end of November, all the Housing agencies through the end of November, and all of the Social
Service agencies through next September. We're asking you -- this hearing is just on those issues. At your
next meeting -- so, what you have here is two months of funding for Economic Development and t-%yo
months of funding for housing, 12 months of funding for Social Service agencies. At your meeting on the
16th, there's an item coming back to extend your Economic Development agencies for a full 12 months.
Vice Chairman Gort: But that is the question. The question is, on the meeting on the .16th, we can add or
subtract...
Ms. Warren: Whatever is available in that pot.
Vice Chairman Gort: ...that's available at that time. You all understand that? Commissioner Regalado?
Commissioner Regalado: I'm sorry
Vice Chairman Gort: , What we're approving today — and it's important for you all to understand. What
we're approving today here, in the Economic Development, is the two months that we needed, that we
approved it before but it was not -- it need to be confirmed...
Commissioner Regalado: I understand that.
Vice Chairman Gort: It needs to be confirmed today.
Commissioner Regalado: But, remember, there are groups that are not being funded in what we're
approving today.
Vice Chairman Gort: Well, that we'll discuss in a minute. But it's important'to understand, the Economic
Development contract will come up, my understanding is, on September — December...
Ms. Warren: Sixteenth.
Vice Chairman Gort: ...16. That's for the extension of the whole year.
Ms. Warren: Yes.
Vice Chairman Gort: OK.
Commissioner Teele: That's not just extensions. That's award...
Vice Chairman Gort: That's the award...
Ms. Warren: That's the award.
Vice Chairman Gort: ...and the contract for the year they begin, OK.
Ms. Warren: And how...
Vice Chairman Gort: And, at that time, there's different fundings that we can allocate and we can look at it
in accordance to performance.
Commissioner Regalado: But, remember, what you are approving today, what we are approving today...
58 November 10, 1999
Vice Chairman Gort: I understand. So, any particular...
Commissioner Regalado:.There are programs that are not being funded.
Vice Chairman Gort: OK. But right now I think we should go ahead and — first of all, I want to make sure
we answer all the questions that have been asked. Excuse me. I think- we should answer all the questions,
like the Miami Capital question, the -- rehab has been answered. Angel Gonzalez' question has been
answered. And the others that were money for the children, which — that have been allocated. I understand
that's a new proposal that's going to be coming under the nine hundred thousand dollars ($900.000). I
imagine, so those questions that you have -- that you feel that we need to move on today, let's bring it out
now then. All right. Is that in accordance with everyone?
Commissioner Regalado: Sure. Let them answer the questions. I mean, there were some — a lot of
questions raised by some of the people that testified. So, I don't know. My concern — again, my concern is
that what we're doing here does not have a second chance. So, we will do it now and whatever we do is
what's going to be the law for the next two months' extension. Are we talking until we get some results from
the RFP?
Ms. Warren: You have two other opportunities next Tuesday, when the Economic Development agencies
come back. If you choose to re — not extend them, reissue the money in a different order, you could do that.
And, also, when the RFPs come back, which would be at your December and some in your January
meeting, if you choose to switch the moneys, you can do it.
Vice Chairman Gort: That's for Social Services alone?
Ms. Warren: There is a Social Services and also Housing Administration and also a small pot of
demonstration projects for Economic Development. You can choose to reconfigure.
Vice Chairman Gort: Right. And existing agencies, if they comply with the guidelines and the
performance, they can also compete for those funds?
Ms. Warren: Yes.
Vice Chairman Gort: OK.
Ms. Warren: They could compete with — the only proviso that this Commission placed on — there's two
restrictions on Social Services. One, because of the waiver, those moneys can only be used for those groups
that are impacted by Welfare Reform. Seniors was the priority and youth. That was — and the second —
that's a congressional restriction. The second restriction was imposed by this Commission, which is that
those communities that have been traditionally underserved by Social Services would get priority
consideration for use of those funds, based on under service, and you approved a formula as to which
communities have been historically underserved, and those are the communities that the RFP designated
who would be the recipients of the funds, and that's a Commission directive. Those are the only two
restrictions.
Commissioner Winton: Mr. Chairman?
Vice Chairman Gort: Yes.
Commissioner Winton: I have a question. I want to make sure that I'm clear here because I'm not sure that I
59 November 10, 1999
am. On the Economic Development agencies, what we're approving at this meeting is reallya two month
allocation?
Ms. Warren: The Commission approved a two month allocation.
Commissioner Winton: And, then, a subsequent meeting, we're going to approve the next — the subsequent
10 month allocation?
Ms. Warren: Correct.
Commissioner Winton: At that meeting, where we're allocating the subsequent 10 months, are we — do we
have a prerogative to rearrange the distribution of those funds?
Ms. Warren: Absolutely.
Commissioner Winton: OK. I'm clear. Thank you.
Vice Chairman Gort: Yes.
Commissioner Teele: Mr. Chairman, I really would like to compliment, acknowledge Commissioner
Winton because I don't see how anybody could come in and.even understand what's going on, really.
Commissioner Winton: Well, I don't pretend to.
Commissioner Teele: Because I've been here and I don't fully understand. I'm telling you. I do want to say
one thing, so that it's clear to the public, though. We keep using these terms public service funds. The
important thing is that the public service funds, -which are one of six categories of these CD funds, is limited
by Federal law — statute, not rule but statute — that no more than 15 percent of the total allocation may be
used for public service. There is an exception provided by law and that exception was generated largely by
Commissioner Regalado's insistence and the management and Ms. Warren, in particular, working closely
with Congresswoman Meek to provide an exemption or exception that you can exceed the 15 percent to...
Ms. Warren: Ten -percent. Additional twenty...
Commissioner Teele: By an additional 10 percent or a total of 25 percent in the public service category.
But that exemption can only be used in areas that have been historically underserved, which is what I was
talking about earlier this morning. Because we all recognize there have been some historic patterns of
misapplication of funds in the City. And the other area — and the primary area is those persons directly
affected by welfare reform or stated another way, people that are primarily in public housing that are trying
to move up or people that are not in public housing or supported housing, but essentially those people that
are in the welfare reform. The point that I wanted to make clear is that's not additional money. That's not an
additional 10 percent. It means that, if you use 10 percent of public service money, you don't have -- the pot
is not increased. It just means that the pot remaining for Housing, for Capital Improvement, for Facilities,
for Economic Development, for Administration, and for Historic Preservation are not available. Now, it
gets me to the point that I'm sure Commissioner Winton and I are going to be on agreement on, because 1
heard him give a very exciting and, quite frankly, enlightened speech. This Commission instructed that
there be an RFP and that there be available funds for Historic Preservation. We have never had — it's a
recognized — one of the six recognized categories that the Federal Government allows. It, quite frankly, is
the most liberal and permissive category of all. I have still not seen the RFP for Historic Preservation go
forward or was it couched in terms of economic — was it couched with one of the other categories?
60 November 10, 1999
Ms. Warren: It is couched in a CDBG. It is — there is an area and we did get proposal bids.
Commissioner Teele: In Historic Preservation?
Ms. Warren: Yes, sir.
Commissioner Teele: I did not see the...
Ms. Warren: It's listed as an eligible activity in the RFP.
Commissioner Teele: In which RFP?
Ms. Warren: The one for -- the consolidated RFP that was — that went out, and that's in the CDBG section.
Commissioner Teele: In the CD — it is a CDBG category.
Ms. Warren: Correct.
Commissioner Teele: So, you're saying that, in the Housing RFP and the Economic Development RFP
Ms. Warren: We did a consolidated RFP for all four grant sources. There's a section for Community
Development, CDBG. It has Social Programs, the nine hundred thousand we're talking about. It has the
Economic Development pilot project, about four hundred thousand dollar ($400,000) dollars there. And it
has Housing Administration and it also has Historical Preservation.
Commissioner Teele: So, there was a categorical historical preservation?
Ms. Warren: Absolutely.
Commissioner Teele: OK. And I just wanted to make sure that we were acting on that because I think it's
something that we really need to focus on. I would appreciate if you would provide us, the Commission,
with a matrix that shows where we are for the remaining, let's say, 15 months, so we know what to look at.
Because I can see breaking public services away from the rest of the CDBG. I don't see the rational in
separating the other five areas. And I think we're making this extremely complicated and convoluted, and I
don't — I encourage you to separate the public service in terms of RFP and the public hearings award and all
that from the rest. But I do think that the other areas, the Housing, the Administration, the Economic
Development, Public Facilities, Historic Preservation should be one RFP because, then, it gives the
Commission the flexibility to move projects and dollars from among the various categories. But when you
only have one category before you, you're sort of locked in on that item.
Ms. Warren: OK.
Commissioner Teele: Thank you.
Vice Chairman Gort: Thank you. I'd like to — the second question that came up — I think we've answered
most of your questions. What I'd like to do also, the questions that you have addressed to us today, please
put them in writing, make sure the department gets them, and I'll want to see their response in writing also, if
that is OK with all the Commissioners? And we'd like to get a copy of both the questions and the responses.
Second question that come up, the second speaker was the...
Commissioner Teele: Mr. Chairman?
61 November 10, 1999
Vice Chairman Gort: Yes.
Commissioner Teele: Would you allow us to just memorialize that, please? And that is with a motion that
would basically...
Vice Chairman Gort: Go right ahead, sir.
Commissioner Teele: ...move that the Chairman's request that all questions that are submitted in writing are
all questions that have been proffered today, that are. included in the transcript, will be answered within a
reasonable period of time, say six weeks, and that copies — is that too long?
Mr. Warshaw: Too long.
Vice Chairman Gort: Too long. They can answer right away. They don't have any problem.
Commissioner Teele: Thirty days.
Ms. Warren: We could do it within 10 days.
Vice Chairman Gort: Ten days.
Commissioner Teele: Twenty days.
Ms. Warren: OK.
Commissioner Teele: Twenty days. And that a copy of all of the responses be provided to the Commission
and be available to the public, and that those responses be coordinated with the City Attorney's Office. I
would so move.
Commissioner Sanchez: Second.
Vice Chairman Gort: There's a movant and second. Is there any discussion? Being none, all in favor, state
by saying "aye."
The Commission (Collectively): Aye.
Vice Chairman Gort: No nays. Thank you.
62 November 10, 1999
The following motion was introduced by Commissioner Teele. who moved its adoption:
MOTION NO. 99-840
A MOTION STIPULATING THAT ALL QUESTIONS RELATED TO
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS "BE
SUBMITTED IN WRITING TO THE DEPARTMENT OF
COMMUNITY DEVELOPMENT, INCLUDING THOSE QUESTIONS
WHICH WERE PROFFERED DURING THE MEETING HELD ON
THIS SAME DATE; FURTHER DIRECTING THE CITY MANAGER
TO INSTRUCT THE DEPARTMENT OF COMMUNITY
DEVELOPMENT TO RESPOND TO SAID QUESTIONS WITHIN
TWENTY DAYS AND PROVIDE THE MEMBERS OF THE CITY
COMMISSION WITH A COPY OF SAID RESPONSES.
Upon being seconded by Commissioner Sanchez, the motion was passed and adopted by the
following vote:
AYES: Vice Chairman Wifredo Gort
Commissioner Tomas Regalado
Commissioner Joe Sanchez
Commissioner Arthur E. Teele, Jr.
Commissioner Johnny L. Winton
NAYS: None.
ABSENT: None.
Vice Chairman Gort: The next question is the — presentation was made with the Miami Capital. It's going
to continue now, so we'd like to have...
Ms. Warren: Commissioners, as you know, there has been a review of Miami Capital. Staff has submitted
to the Manager and to the Law Department our final outcomes of our study. It is my understanding that
Miami Capital will be notified in writing before close of business this week, Friday. And we will, within
the next 10 days, set down, work with them, go through all of the findings, and provide them any answers
and responses that they need. We cannot comment on the federal grand jury investigations.
Vice Chairman Gort: My understanding, what your statement is, that you...
Ms. Warren: It's done.
Vice Chairman Gort: Miami Capital will continue to function and will continue to work?
Ms. Warren: They're funded in this package through November 30th. What we're saying is that our
findings and our recommendations will be made public on Friday of this week, and we will, within 10 days
of them having an opportunity to read them, sit down, respond, meet and review all the materials, and also
bring it back, after that time period, to the Commission.
Commissioner Regalado: Mr. Chairman?
63 November 10, 1999
Vice Chairman Gort: Questions? Yes.
Commissioner Regalado: Where is the money that Miami Capital has given this Cite deposited? Is it in
general fund or...?
Ms. Warren: It's in our Program Income account and it's in the City's bank account.
Commissioner Regalado: You're saying it's in Program Income, right?
Ms. Warren: Yes, sir.
Commissioner Regalado: We're talking about one million dollars ($1,000,000)?
Ms. Warren: I'm not sure. What amount are we looking at?
Commissioner Sanchez: One point three in one and...
Ms. Warren: Eight hundred and sixty thousand.
Commissioner Regalado: Eight hundred and sixty thousand?
Ms. Warren: Yes, sir.
Commissioner Regalado: That is not included on the 3.5 Program Income?
Ms. Warren: That is a part of the 3.5 projected Program Income.
Commissioner Regalado: It is a part?
Ms. Warren: Yes.
Commissioner Regalado: When did we decide that this was a part? I don't remember:..
Ms. Warren: When you — you decide that Program Income is what we project each year.
Commissioner Regalado: I know, I know. But we didn't never expected Program Income from Miami
Capital.
Ms. Warren: Your budget every year said — projects Program Income from Miami Capital at an amount,
and we also project Program Income from other loan programs. They're part of the public process. They're
always listed as a source. That Program Income is being — has always been used for the revolving loan
fund. It is the intent of...
Commissioner Regalado: That's what I'm saying. That's what I'm saying
Ms. Warren: It has not been used for anything else. It will be used for that.
Commissioner Regalado: Then, this is the first time that we're using that Program Income for other than
loans?
Ms. Warren: I'm not — no, I'm not recommending nor saying that we're using it for anything other than that.
64 . November 10, 1999
Commissioner Regalado: Excuse me?
Ms. Warren: Any money that comes from Miami Capital is called Program Income. OK? It has always
been called Program Income.
Commissioner Regalado: I know that.
Ms. Warren: That particular money has always, historically, been used for revolving loan funds. If that
ever changes, the only people who can change that is this Commission. There has been no change. Those
moneys are not just sitting in an account.
Commissioner Regalado: Then, you're telling me that we decided on the 3.5 of a million for Robert King
High, Flagler Marketplace -- you mentioned several programs — that would cover the 3:5 Program Income,
right? You did say that.
Ms. Warren: Yes, I did say that.
Commissioner Regalado: OK. So, now, you're saying that we did not recommend or approve that this
Program Income will be used for other than revolving loans?
Ms. Warren: Correct. Separate pots.
Commissioner Regalado: And that you're saying that this Program Income is part of this 3.5?
Ms. Warren: OK. Maybe I misspoke myself. Two pots of money.
Commissioner Regalado: No, no, but that's what you told me here.
Ms. Warren: Separate money. The three million five of Program Income, which is in the package, this
Commission -- we basically said, this is what's available. This Commission has basically said, we want to
fund previous projects that we've authorized, but did not have money for. Under a separate action, this
Commission has always designated the Program Income that Miami Capital has, which is not this 3.5
million.
Commissioner Regalado: But you said — you told me...
Ms. Warren: I said, maybe I misspoke myself.
Commissioner Regalado: Oh, OK.
Ms. Warren: Those moneys are always...
Commissioner Regalado: OK. I just want to make sure because here, when we were standing here, you told
me that 3.5...
Ms. Warren: Of Program Income.
Commissioner Regalado: ...were already committed and, then...
Ms. Warren: Right.
65 November 10, 1999
Commissioner Regalado: ...you said that what they gave you was part of the 3.5.
Ms. Warren: What I should have said...
Commissioner Regalado: So, we're talking other monies.
Ms. Warren: What I should have said is that it's other Program Income, yes. Two separate pots of money.
Commissioner Regalado: OK.
Ms. Warren: All right.
,Commissioner Regalado: Just wanted to find out because I'm a little...
Ms. Warren: OK.
Commissioner Regalado: ...here. I...
Ms. Warren: Didn't mean to confuse you.
Mr. Winton: Well, I...
Commissioner Regalado: One depends on information...
Ms. Warren: Yes, sir.
Commissioner Regalado: ... to vote and that information was not accurate.
Commissioner Winton: Commissioner, I'm not clear now on what's being said. I'm...
Ms. Warren: Two...
Commissioner Regalado: The problem...
Commissioner Winton: Because I heard the same thing.
Commissioner Regalado: Johnny, let me just — I'm not an official of that department, but it was very
simple. My question was, do we have — and this was even before we met here, talking with Gwen and the
Manager. Do we have 3.5, to use it? She said, "No. That is committed already." Fine. Then she said,
"Well, the Program Income from Miami Capital is part of that 3.5." And, then, we're told no, that's not part.
Ms. Warren: Say in addition to.
Commissioner Regalado: And this is why I was confused.
Commissioner Winton: I think I understand now. So — because if you're saying now that it's in addition to
the 3.5, I'm clear. Thank you.
Vice Chairman Gort: In other words, the funds that are being allocated is in addition to the 3.5. So, we're
talking about 4.4.
66 November 10, 1999
Ms. Warren: What we're saying is that the Miami Capital Program Income is still in that -- over there for
loans.
Vice Chairman Gort: And those funds are to be utilized only for Miami Capital revolving loans?
Ms. Warren: For revolving loans or whatever you designate it for.
Vice Chairman Gort: Right. The other income that you have, the 3.5, comes from other source of funds.
and that's the one we determined.
Ms. Warren: Correct.
Vice Chairman Gort: Is that understandable now?
Commissioner Winton: I'm clear.
Commissioner Regalado: It is, but it wasn't.
Vice Chairman Gort: Commissioners first. Yes.
Commissioner Sanchez: Are you done with your question, Commissioner? My question is very simple. I'm
not going to touch on the fact that they're being reviewed by an agency. Has the administration reviewed
Community Development — has the investi -- well, has the department looked at and reviewed the actions of
Miami Capital and have they come out with a written report on what measures need to be corrected or what
type of errors have been submitted or if there's such a report that would enlighten me or provide me enough
information so I could study it and make a final conclusion of where I stand on the issue? Now, because
from what I hear, that they're being investigated by the FBI, which I don't know if they are or not, or that the
department has or has not looked into it and put together, in writing, the findings of this or if there's any
wrongdoing, or what steps are going to be taken between the administration and Miami Capital to correct
the measures?
Ms. Warren: As I stated before, we have completed our report. We've sent a recommendation to the
Manager.
Commissioner Sanchez: Have you seen that recommendation?
Ms. Warren: Miami Capital will receive their official copy.
Vice Chairman Gort: Have them provide it.
Commissioner Sanchez: Well, I can't make a decision today.
Commissioner Winton: Mr. Chairman?
Vice Chairman Gort: Yes.
Commissioner Winton: I'm — and my apologies for being the new guy on the block here and not
understanding all of this, but...
Vice Chairman Gort: Don't ever apologize for that. Ask a lot of questions. It's very important that you ask
67 November 10, 1999
the questions.
Commissioner Winton: I guess I'm nervous, procedurally. It seems to me that there's a focus on one agenc\
out of -- I don't know —.150 agencies, and we seem to be going into a lot of detail over issues regarding one
particular agency, without -the opportunity to hear from other agencies who may have any kind of concern
relative to this funding process. And just from a procedural standpoint, that's making me a little nervous
about fairness.
Vice Chairman Gort: 1 have to add. This process has been going on now for about three or four months. A
lot of the agencies that had the opportunity to come in front of us and make their requests and talked about
the issues. That process we went through and this is -something that, next year, you're going to learn. It's a
very good process. And you're going to get a lot of people coming to you and telling you all about their
agency. We have gone through that process already. The problem that we had this year, the funding did not
occur according to the timetable set up by the Federal government. The reason being, the City of Miami
requested that we have some additional time because they wanted — they asked us to comply with certain
criteria and asked us to make certain changes. And the staff felt that they needed more time, so we
approved a letter sent to HUD, where this extension could be given to them and this is the process that we're
going through right now. In particular, the reason we're talking about this one agency, because this one
agency has been under a lot of auditors. The auditors went through it. My understanding, Commissioner
Sanchez is, we will not get a response on the agencies until Friday. They have gone through the audit. Staff
have looked at it. They presented their finding to the City Manager. The City Manager and the attorneys,
and I guess the Administration, will come up with a draft, which will be sent to the people from Miami
Capital, and they'll have an opportunity, like any other audit, to sit down with them and go over the different
items and discussions.
Commissioner Winton: And what we're approving today, if I understand right, Miami Capital has 'been
funded for this two month period.
Vice Chairman Gort: That's correct.
Commissioner Winton: And, so, they will have the City's findings in time to...
Vice Chairman Gort: For the next round.
Commissioner Winton: In time for the next round to appeal or discuss or whatever they need to do to make
their point heard relative to the next 10 month funding, is that correct?
Vice Chairman Gort: That's my understanding.
Ms. Warren: Correct.
Vice Chairman Gort: Am I correct? Are we correct? OK.
Commissioner Teele: Mr. Chairman?
Vice Chairman Gort: Yes, sir.
Commissioner Teele: I think I'm in general agreement with what you're outlining. I want to put on the
record that I've had some discussions with the Director, going back, .1 guess, in June, July, and I
recommended to the Director that we bring in a third entity, a third party, maybe an external auditor, their
management group, to review this. We could ,go to the Clerk of the Court. And the County has their
68 November 10, 1999
management team. I mean, that's what the Florida Constitution anticipates and that's provided for. What I
think is really needed is, obviously, there are some issues that the Community Development Office — in
fairness to them, they are the funding source of, literally, one hundred percent of all the Cite funds and the
agency, which is a separate corporation... Mr. Attorney, is that correct?
Mr. Vilarello: Miami Capital is a separate corporation, yes.
Commissioner Teele: ...which is a separate corporation, with a separate board of directors and a different
corporate entity. And I think, in fairness, they're not — in other words, they're not a City agency. They're a
corporate entity, just like any other corporation is of that nature. A not -for -profit, I would presume. The
Commission does have some oversight. But one of the things that has made Miami Capital unique is that
they're dealing in an area where everything that they deal with is in trouble. I mean, this is not a
marketplace finance agency. From another perspective, I chaired a committee in the County that went out
for an RFP in a solicitation: We received about seven solicitations. Miami Capital was rated number one. I
did not award it to Miami Capital because I felt that Dade County, as a larger governmental body, should try
to develop more capacity for this very, very distress lending. And, basically — essentially, anyone who goes
to Miami Capital or to a lending source, such as this, even the SBA (Small Business Administration) — what
is those seven — what are those SBA programs? Essentially, you have to have — what's the SBA's lending
program that — for small businesses? You all — a lot of expertise around here on this, huh? Lending is
lending. There's a small business...
Mr. Juan del Cerro: Five -zero -two.
Commissioner Teele: SBA program, but the number one requirement is you've got to be turned down by
two banks. So, if it's a good deal, it will never go to Miami Capital. If it's a good deal, it will not go to these
other agencies. And we have to understand that as policy makers. Now, when I was chairing the County
Commission, Miami Capital applied to administer the County revolving loan. They were ranked number
one. I recommended, and the Commission approved, not to award to Miami Capital because I felt that the
County should have more capacity than just one organization. So, we gave it to an organization that was
headed by a distinguished gentleman, who's running, I believe, for the Comptroller — what's Nwell
Daughtrey running for this time?
Mr. del Cerro: He's running for Congress, I think.
Commissioner Teele: Huh?
Mr. del Cerro: He ran for Secretary of State.
Commissioner Teele: No, he's running for Insurance Commissioner. He's running right now for State
Insurance Commissioner. We gave him, I believe, three/four million dollars, and I don't think it's unfair to
say that the program was much, much less than a success. Stated — and that program failed. And then the
County came back and said, "Well —" and there are two or three others that are worst than Miami Capital, in
terms — worst in terms of the fact that what everybody's going to focus on is the loan default ratio; and the
loan default ratio, with the County program, was around 75, 80 percent. I don't mind also saying that, when
I was elected first time in office, there was something called Contractors C — Training and Development,
CTD. We closed them down within two years, and I'm not proud of that because some distinguished people
worked there. But the loan ratio — there was just no records there, at all. So, this is a real long-term
problem. And as the person who represents a constituency that is dependent upon having some loans, I
think we need to take a look at this. But I think we need to understand, going into this, that this is a
problem. What I would like to see, Mr. Chairman, is that the Manager would designate, for the purpose of
moving forward, designate the — either the external auditor or the auditor — what's that thing that we're
69 November 10, 1999
changing around now?
What's that department?
Mr. Vilarello: Independent Auditor General.
Commissioner Teele: No, but...
Mr. Vilarello: That would be at your direction.
Commissioner Teele: No, no, no, no. There is a depart...
Mr. Vilarello: Internal Audit Department?
Commissioner Teele: The Internal Audit Office is shifting to the External Auditor General, as per the
discussion. Mr. Clerk, get the record on the discussion on that issue. That was the...
Mr. Vilarello: Obviously, Commissioner, that would require further action by the City Commission
Commissioner Teele: It does require further action, but when we wrote the amendment, that was the
discussion, that was the legislative intent of the amendment. But that office right now is under the Manager,
and what I'm asking is ask the Manager to either designate the External Auditor or, preferably, the Internal
Auditor, to review all of this and to come back with an independent recommendation on Tuesday —
preliminary recommendation on Tuesday, November 16th. On Tuesday, November 16th, a preliminary
recommendation: We need to know where we are and; then, we can establish a timetable. But this has gone
on now -- I've had the discussions going on since June and I think it's time we brought the issue to some
closure. I am not committed to Miami Capital. I'm going to put that on the record. I'm not committed to
Miami Capital. I am committed to the City of Miami having an entity that is capable of carrying out this
important mission, and the presumption, in my mind is, it should be Miami Capital.' But, you know, the
record could overcome that presumption. So, I would just like to request and I would like to know, Madam
Manager, if that's a reasonable request? I don't want to make it a motion. But I think, you know, we should
get someone in here to look at this. And as Commissioner Gort — Chairman Gort has said, it should be
treated like any other auditor. There shouldn't be a whole lot of rumors and whispers and innuendoes. You
do an audit. You give them the preliminary findings. You let them comment on it. All that should happen
before it goes up, not after it goes up. Because, then, the whole audit is suspect.
Ms. Bianchino: Commissioner, I might just comment that certainly be — intent is excellent, but I don't think
that there's sufficient time, between now and Tuesday, for the Internal Auditor, who has not been involved
in this process, to adequately review the documents.
Commissioner Teele: That's why I want someone that hasn't been involved. I'm looking for a
disinterested...
Ms. Bianchino: No, I understand.
Commissioner Teele: Well, do you have a problem with them coming in on Tuesday and saying, "We
haven't had sufficient time," if that's what they say? But, at least, let them start today.
Ms. Bianchino: Sure. They can start right away.
Vice Chairman Gort: Can you get your...
70 November 10, 1999
Commissioner Teele: So, would you all place this item, Mr. Attorney, on the agenda as a discussion item.
recognizing we will probably not take any action on it, but it will be for a discussion? And if the Internal
Auditor says that they don't have sufficient time, that will be the end of that until the next meeting.
Mr. Vilarello: OK. If you just...
Vice Chairman Gort: OK. We want nice and short. Is there anything you can add to this?
Mr. del Cerro: What is that? No, I have a question.
`Vice Chairman Gort: Yes.
Mr. del Cerro: Mrs. Warren indicated that the report on Miami Capital would be given to us on Friday. To
respond by when? By Tuesday.
Ms. Warren: No.
Commissioner Teele: No.
Mr. del Cerro: OK. I have another question.
Commissioner Teele: You don't have to — you don't even have to come to the meeting on Tuesday, the 17th.
Mr. del Cerro: OK. I have another question. Where the contract we presently have, I believe, expired the
last day of September. We have a contract draft in our office...
Commissioner Teele: Is that correct, Ms. Warren?
Ms. Warren: They have been authorized through November. I don't know if they've turned in their
paperwork, but they have...
Vice Chairman Gort: My understanding, one was in front of us, to November, you'll have your funding.
You can operate until November.
Mr. del Cerro: Just like we've been operating before? No changes?
Vice Chairman Gort: Yes. The people are going to be leaving, guys.
Mr. del Cerro: OK. All right. I have to ask this. It's easier to ask you than...
Vice Chairman Gort: The question is — we've been stating that what we're approving here today is your
contract until November and that from here to November, you'll have time to respond to all the questions
that you have. The audit report, you'll be able to respond to that also. At that time, we'll look at the finance
and the continuation for the next year.
Mr. del Cerro: OK. When will you bring us back here for review, do you know?
Vice Chairman Gort: My understanding is, the reports should be ready on Friday. I don't know what the
report looks like, what they'll say. You'll have a chance to respond. Commissioner Teele has requested an
outside auditor who will look at it, and give us some comments on that report also and see what — because
it's very important to understand, number one guideline is, you have to be denied a loan by two banks before
71 November 10, 1999
0
you can go to any of those agencies. So, that makes a difference. All right?
Mr. del Cerro: Thank you.
Vice Chairman Gort: Thank you, sir. Now, my understanding is, before people start walking out. there's
some problems in some of the agencies and the allocations that we're going to approve today.
Mr. Victor Igwe: Excuse me, sir. Victor Igwe, Director of Internal Audit. I've not been involved with the
audit of the — what we're talking about, so I don't know how. long it will take us to do that audit. but we will
certainly give it our best that we have to see if we can get it done by Tuesday, depending on the nature of
what's involved.
Vice Chairman Gort: OK. Thank you.
Commissioner Teele: Mr. Chairman, just one — Saturday and Sunday are work days for the purpose of this,
if possible.
Commissioner Winton: Sounds like you've already agreed to that, to have it be done by Tuesday.
Mr. del Cerro: We can be open for you Saturday and Sunday also.
Commissioner Teele: You don't have to do anything. You're out of it.
Vice Chairman Gort: You guys — you don't need to be there. This is an Independent Auditor, the third
party. You guys were having problems with the present funding that we're going to pass today.
Commissioner Teele: Mr. Chairman, for purposes of discussion, I move the -Manager's recommendations as
stated.
Commissioner Sanchez: Second.
Vice Chairman Gort: It's been moved and second. Discussion.
Commissioner Teele: is there amendments?
Commissioner Regalado: One. Commissioner. Mr. Chairman?
Vice Chairman Gort: Yes.
Commissioner Regalado: Gwen?
Ms. Warren: Yes, sir.
Commissioner Regalado: Which are the programs that are not funded for the next 30 days?
Commissioner Teele: Sixty days.
Commissioner Regalado: Well...
Commissioner Teele: Sixty days.
72 November 10, 1999
Commissioner Regalado: Until November...
Commissioner Teele: Thirty.
YJ
Commissioner Regalado: ...30th.
Commissioner Teele: But it goes from September 30...
Ms. Warren: Every agency is on this list. Every agency is funded.
Commissioner Regalado: Every agency...
Vice Chairman Gort: Right here.
Commissioner Regalado: ...is funded?
Commissioner Teele: On the list.
Commissioner Regalado: I'm talking about what we're approving now. What you need to deliver to HUD
by the 15th.
Ms. Warren: Every — there are no agencies that are currently funded that are not being recommended for
funding in this packet. Everybody, who is currently funded, is in here.
Commissioner Regalado: OK. So, what you're saying is that everyone is funded for the next — I mean, for
the 60 days, September to November 30?
Ms. Warren: Everybody that you have authorized is here.
Commissioner Regalado: OK.
Ms. Warren: Everybody.
Commissioner Regalado: All right.
Commissioner Teele: Call the question.
Vice Chairman Gort: Any further discussion? All in favor, state by saying "aye."
The Commission (Collectively): Aye.
Vice Chairman Gort: No nays.
The following resolution was introduced by Commissioner Teele, who moved its adoption:
RESOLUTION NO. 99-841
A RESOLUTION OF THE MIAMI CITY COMMISSION (subject
matter: accepting the City Manager's recommendation, as stated, related
to the Consolidated Plan and the 1999-2000 Annual Action Plan).
73 November 10, 1999
(Here follows body of resolution, omitted here and on file in the Office of the City Clerk.)
Upon being seconded by Commissioner Sanchez, the resolution Has passed and adopted b-N, the
following vote:
AYES: Vice Chairman Wifredo Gort
Commissioner Tomas Regalado
Commissioner Joe Sanchez
Commissioner Arthur E. Teele, Jr.
Commissioner Johnny L. Winton
NAYS: None.
ABSENT: None.
3. DIRECT CITY MANAGER TO SCHEDULE FOR NOVEMBER 16, 1999, THE
IMPLEMENTATION SCHEDULE OF THE HAGLER MARKETPLACE, AND DISCUSSION
REGARDING PENDING LEGISLATION OF THE COMMUNITY REDEVELOPMENT AGENCY
(CRA) AND ANY OTHER PENDING LEGISLATION.
Commissioner Teele: Mr. Chairman?
Vice Chairman Gort: Yes, sir.
Commissioner Teele: I have intentionally not brought up the CRA or any of the other areas, the
marketplace down with the DDA and all of those things that are legislatively directed. On Tuesday, would
you be prepared to discuss the previous legislation that has — I know that it's in the Five -Year Plan. I know
that it's there. But I just would like to see an implementation schedule,
please.
Ms. Gwendolyn Warren (Director, Community Development): Yes, sir.
Commissioner Teele: All right.
Vice Chairman Gort: Thank you. Once again, all the questions that are on the record here, if you need a
copy of the record, get if from here. Make sure you get to the department your questions, in writing, and
they'll respond to you within 10 days, the questions you have asked here today.
Commissioner Teele: Twenty.
Vice Chairman Gort: Twenty OK.
Commissioner Teele: Twenty days.
Vice Chairman Gort: OK.,
Commissioner Sanchez: Move to adjourn.
Vice Chairman Gort: OK.
Mr. Alejandro Vilarello (City Attorney): Mr. Chairman?
74 November 10, 1999
Vice Chairman Gort: Yes.
Mr. Vilarello: Your last motion, we'll prepare a resolution to that effect.
Commissioner Sanchez: Move to adjourn.
Commissioner Winton: Second.
Commissioner Teele: Second.
4. ACKNOWLEDGE AND COMMEND DENA BIANCHINO, ASSISTANT CITY MANAGER. ON
HER PROFESSIONALISM DURING HER TENURE WITH THE CITY, ON THE OCCASION OF
HER LAST MEETING REPRESENTING THE CITY MANAGER'S OFFICE, RESULTING FROM
ACCEPTANCE OF EMPLOYMENT OUTSIDE THE CITY OF MIAMI GOVERNMENT.
Vice Chairman Gort: OK. Before we adjourn, I've got some very sad news. Today is Dena Bianchino's last
day. She got a better proposal than ours and it's going to be really a loss to this City, and we're really going
to miss you. But we're going to be bugging you. I'm going to be calling you quite a bit, believe me.
Commissioner Teele: Appropriate salute to Dena Bianchino. (applause)
Ms. Dena Bianchino (Assistant City Manager): Let me just say that I'm not leaving Miami. I'm a resident
of the City, proud to be so. Be working in the City and, also, hope I can do good things for the City. And
I'll say what Commissioner Gort said to me earlier, which is hasta luego.
THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE CITY COMMISSION,
THE MEETING WAS ADJOURNED AT 2:30 P.M.
ATTEST:
Walter J. Foeman
CITY CLERK
Maria J. Argudin
ASSISTANT CITY CLERK
JOE CAROLLO.
MAYOR
000Z Z Z 8VW
O3AI3338
75 November 10, 1999