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HomeMy WebLinkAboutCC 1999-11-30 Minutesi CITY OF MIAMI * `INCORF' ORATFU :� COMMISSION MINUTES OF MEETING HELD ON NOVEMBER 3091999 (Special Commission Meeting) PREPARED BY THE OFFICE OF THE CITY CLERK/CITY HALL Walter J. Foeman/City Clerk Y INDEX MINUTES OF SPECIAL COMMISSION MEETING November 30, 1999 ITEM NO. SUBJECT LEGISLATION 1. DISCUSSION , CONCERNING MIAMI CAPITAL 11/30/99 DEVELOPMENT CORPORATION, INC. M-99-910 1-29 88V 00 t.4i1 � Lsi a3A1303M pi DISCUSSION CONCERNING COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDS - EXTEND TO MARCH 30, 2000 HOUSING ALLOCATIONS - EXTEND FUNDING FOR RAFAEL HERNANDEZ CDC, COCONUT GROVE LDC, EDGEWATER DEVELOPMENT CORPORATION WITH TECHNICAL ASSISTANCE - ALLOCATE AND NOTICE FOR DECEMBER 14, 1999 PUBLIC HEARING, $16,000 OF PUBLIC SERVICE FUNDS FOR DE HOSTOS SENIOR CENTER - DISCUSS STATUS OF LATIN QUARTER CONTRACT - DIRECT CITY MANAGER TO VALIDATE TARGET AREAS THROUGH INTER -AGENCY AGREEMENT WITH A LOCAL UNIVERSITY - INCLUDE HISTORIC PRESERVATION AS ONE OF SEVEN CATEGORIES IN THE CODE OF FEDERAL REGULATIONS - DIRECT MANAGER TO VALIDATE HUD ALLOCATION FORMULA BY DISTRICT - 'RETURN TO DECEMBER 14, 1999 COMMISSION MEETING WITH RECOMMENDATION REGARDING CODEC'S. REQUEST FOR IMPACT,. FEE DOLLARS - ALLOCATE CAPITAL IMPROVEMENT FUNDS ($25,500) TO FIX ROOF FOR ASSOCIATION FOR THE DEVELOPMENT OF THE EXCEPTIONAL - DISCUSS CAPITAL IMPROVEMENT ALLOCATION TO CENTRO HISPANO CATOLICO - DIRECT ADMINISTRATION TO PROVIDE CITY COMMISSION WITH A CHART DEPICTING ECONOMIC DEVELOPMENT PROJECTS' ALLOCATIONS. BY TARGET AREAS - ALLOCATE $50,000 FROM SET ASIDE FUND FOR SOUTHWEST 8T" STREET FAQADE PROGRAM - ALLOCATE $42,000 FOR ALLAPATTAH BUSINESS DEVELOPMENT AUTHORITY FROM CITY COMMISSION SET ASIDE FUND - PLACE ON DECEMBER 14, 1999 CITY COMMISSION MEETING AGENDA ITEMS RELATED TO THIRD AVENUE BUSINESS CORRIDOR AND REDEVELOPMENT OF PARK WEST AND OVERTOWN - DISCUSS PARKING SURCHARGE ALLOCATION FOR DOWNTOWN NIIAMI RATHER THAN CDBG FUNDS - BRIEF DISCUSSION REGARDING MARTIN LUTHER KING PARADE AND MIAMI, GALA EVENT FOR PUBLIC SERVICE FUNDS - RECOMMEND TO MANAGER TO ALLOCATE $20,000 FROM RFP POOL FOR CATHOLIC CHARITIES. 11/30/99 M-99-911 R-99-912 M-99-913 M-99-914 M-99-91 5 M-99-916 M-99-917 M-99-918 M-99-919 29--101 MINUTES OF SPECIAL MEETING OF THE CITY COMMISSION OF MIAMI, FLORIDA On the 30'' 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 9:37 a.m. by Presiding Officer/Commissioner Wifredo Gort (hereinafter referred to as Vice Chairman Gort), with the following members of the Commission found to be present: Vice Chairman Wifredo Gort (District 1) 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 Joel Maxwell, Assistant City Attorney Walter J. Foeman, City Clerk Maria J. Argudin, Assistant City Clerk 1. DISCUSSION CONCERNING MIAMI CAPITAL DEVELOPMENT CORPORATION INC. Vice Chairman Gort: Good morning, everyone. Welcome to a special meeting related to CDBG (Community Development Block Grant). First, we'll have the invocation by Commissioner Regalado. The pledge of allegiance by Commissioner Sanchez. An invocation was delivered by Commissioner Regalado, followed by Commissioner Sanchez leading those present in a pledge of allegiance to the flag. Vice Chairman Gort: OK. As we all understand, this is a special public hearing on CDBG (Community Development Block Grants) and the first item that we have, that we're going to discuss today, is the Miami Capital Development Corporation. You all received a copy of the audit reports? Mr. Manager. Mr. Donald Warshaw (City Manager): Commissioners, if you'd like, what I propose we do is, I'm going to ask Ms. Warren to bring forward Carmen Sanchez, who is the Manager of Underwriting for the City from CD (Community Development), and I'd like her to report the major findings in the CD audit of Miami Capital and, then, we can open it up from that point. Ms. Gwendolyn Warren: Commissioners, good morning. My name — for the record, my name is November 30, 1999 Gwendolyn Warren, Director of Community Development. As you're aware, the Department of Community Development has done an in depth review of Miami Capital, as a subcontractor of the City of Miami, that is in receipt of Economic Development funds. The purpose of the review was as a result of two issues: One, during the OIG (Office of Inspector General) Audit of the City of Miami, there was a review of some of the program and files at Miami Capital. There was a finding by the OIG that they had some concerns regarding default rate at Miami Capital, the appropriateness of the expenditures of some administrative funds and, primarily, in the area of the use of interest and Program Income. Vice Chairman Gort: Gwendolyn, excuse me. Let me stop you a minute. I'd like to, at this time, recognize Commissioner Natacha Milian from Dade County. Some of those of you that had your County funds cut, maybe this is the time to talk to her. Let's see what we can do with the County. I'm sorry. Go ahead. Ms. Warren: As you also may be aware, Miami Capital has been funded through the City's Community Development Program to provide small business loans, commercial loans to businesses in the CDBG target area and/or to City businesses that provide jobs for Community Development or City of Miami residents. The report was filed in '97. And this past year, we received -- we were in correspondence with the community -- Miami Capital regarding some of the issues outlined in the OIG audit. Then, subsequent to that, the then present Executive Director, Ceasar Phillips, was dismissed apparently ,or he resigned the corporation, and we received some copies of correspondence. The correspondence itself gave us some serious concern to staff and it basically raised some concerns regarding the quality and the validity of some of the loans that had been given or provided under Miami Capital. As a result of that, we again inquired regarding the issues that were raised in the OIG audit and we, then, commenced a full review -and monitoring of Miami Capital. Commissioner Teele: Ms. Warren, do you have a copy of the OIG report... Ms. Warren: Yes, I do. Commissioner Teele: ...that we could look at while you're discussing it? Ms. Warren: Yes, I do. Commissioner Teele: Please. Ms. Warren: You want it now? Commissioner Teele: If you don't mind. Commissioner Regalado: And when was this completed, the report? Commissioner Teele: That report -- the Commission acted on that in June of '98. And I think it's very important that Commissioner Winton be given a copy and a briefing of that, if you've not been provided with it. Commissioner Winton: I have it. Thank you. Commissioner Teele: You -have it? Commissioner Winton: In my office. Ms. Warren: The OIG audit -- again, we instituted a review of Miami Capital and the scope of the review- 2 November 30, 1999 was to look at the issues that were raised in the OIG audit and, again, we did determine that Miami Capital had, in fact, generated interest income as a result of depositing Program Income into a bank, and that those funds were not remitted to us or to the U.S. Government, as required. On the face of it, we also determined that Miami Capital's default rate was in excess of 30 percent overall and 27 percent for the year. I would like to make a note, however, that it has been my experience, in Economic Development, that that, in itself, is not necessarily an excessive default rate. If, in fact, what you're doing is, you're providing loans to small, minority -owned, new businesses, generally, in the first year start-up, that is not inconsistent with- the national average, in terms of small business failure. Our concern was not necessarily with the rate of loan failure itself, but with the loans themselves, in that the loans that were defaulted on were not necessarily to smaller minority businesses and/or businesses that would have been eligible to receive a loan. So, in fact, if the nature: of the loans were to small minority businesses, who were doing start-up and they were providing intensive counseling services to assist them through making it through that short term, that default rate may not be inconsistent. But, again, if you're looking at companies that may not have, in most cases, met the criteria as a small minority or woman -owned business in a CD target area, to begin with, and that they had significant financing to do the capital themselves, they, again, would not have fit the definition of a small minority business. So, therefore, their default rate is excessive in that these businesses -- I'm sorry. Commissioner Winton: Ms. Warren, could you give us a couple of examples of that process, whereby -- apparently, what you're saying is that there's a question about whether or not those start-up minority firms, that are true entrepreneurial firms that don't have capital, there's a question as to whether or not those are the targeted firms or whether there were firms that actually had capital behind them and still went to this last resort source for financing. Ms. Warren: Yes, sir. What I'm going to do is let Carmen go into the detail on that, but just to give you the minimum standard. The criteria is that these should be businesses that would not be eligible for normal business financing. They would have given the term time period that we did the review. They would have had to have been rejected by three financial institutions as not meeting the standards. Minimally, they should have created jobs for City and, at that time, target area residents, and they should not have been able to, with personal resources, financed whatever capital they needed. And those reasons would have been -- and so, again, the reasons why they would not have been eligible. So, I would like to introduce Carmen Sanchez. She's our manager in charge of our Underwriting and Loan Division, and it was her staff, along with our Finance Division, who did the analysis of the loan portfolio. Carmen. _ Vice Chairman Gort: Thank you. Ms. Carmen Sanchez: Good morning, Commissioners. Carmen Sanchez, Community Development. In answer to your question, Commissioner, one or actually two loans in particular, one that actually closed and one was a proposed loan. In this case, Cajun and Grill of Bayside and Tropical Marketplace of Bayside, both of these loans were originated by an individual whose financial net worth, in his own application, is estimated at thirteen million dollars ($13,000,000). Commissioner Winton: *How many? Ms. Sanchez: Thirteen. Commissioner Winton: Thirteen million? Ms. Sanchez: Yes, sir, according to his application. This is the documentation that he provided in his application. We do have his tax returns. His net worth is substantial. Commissioner Winton: And how much was this individual or this entity loaned? 3 November 30, 1999 Ms. Sanchez: I don't have the exact amounts but, in some cases, well -over one hundred thousand dollars ($100,000). That's what they were applying for. Commissioner Winton: And what's the status of those loans? Ms. Sanchez: Cajun and Grill is an active loan. It's paying well. Tropical Marketplace was not approved by the City, due to the gentleman's net worth. Commissioner Winton: OK. Thank you. Ms. Sanchez: To summarize what we found, we basically reviewed 20 loans. Ten actual companies but, normally, there's more than one loan associated with each individual applicant. For example, in the case of Auto Sport Towing, which is the first one on your list, there are two loans. Casa Panza has two loans and so forth, for a gross total of 20 loans. What we found in most of them were insufficient depth of review, where documentation was in the file, was not properly reviewed. In some cases, for example, Marie Gill and Associates, the young lady provided documentation saying that she earned "x" amount of dollars, coming from difference sources. Some of her income was coming from businesses she had outside the United States. However, this information was not being reflected on other parts of the application or on her 1040s. This would normally generate a question as to what is actually the amount being received. That was not brought to anyone's attention. It was not questioned. Other cases, deviation from the prescribed guidelines. Miami Capital has a lending manual. They used to — a guideline to lend upon. They constantly did not adhere to those guidelines. For example, if a business owner must have insurance for all the principals, a lot of times that did not happen. Also, in the case of Auto Sport Towing, there's a minimum amount of money that the entrepreneurial business is supposed to put into the business itself. In the case of Auto Sport Towing, they did not have the funds available and when they actually did show some money being put into the business, the checks that they used to document those monies did not come from the owners of Auto Sport. So, there again, .there was no question as to where these funds were coming from. There was no reconciliation of the documentation. Also, there was improper documentation of public benefit. In the case of Tropic Delight Corporation, this file closed and, I believe, it is now in litigation. This one is very, very intricate. It's quite a lengthy file. It has over 1700 documents that we reviewed. Tropic Delight Corporation was supposed to move into the City of Miami and provide jobs for the citizens of Miami. Tropic Delight never moved into the City of Miami. They had a business in Miami Lakes. Operated the business from there. Used our funds to fix the machinery, so they never moved in there. In addition, there was a State SUTA (State Unemployment Wage Report) Report in the file, which showed 41 people being employed. We have no proof that any one of those 41 persons are citizens from the City of Miami or that, in fact, they adhere to the ordinance which was passed making this a law for them to be able to use the funds to offer the jobs first to the citizens of Miami. We also had a problem with their security. They were supposed to collateralize the business with second mortgages. The mortgages were never filed in the appropriate County. So, all the mortgages that they had were filed in Dade County. Some of the properties were filed — some of the properties are located in New York. Some of the properties were located in Coral Springs, in Broward County. So, by the time that they got around to filing those mortgages, the actual borrower had cashed out and, in one case, had foreclosed. The lender had foreclosed, leaving us with absolutely no security whatsoever. So, we also have a problem with Auto Sport Towing. Out of the transactions that they had, they bought three tow trucks. To this day, there is one tow truck that has not been accounted for. It's still titled to Auto Sport Towing, has not been liquidated, and Miami Capital is still shown as the first mortgagee. So, those assets have not been liquidated but, yet, they had a seventy thousand dollars ($70,000) loss — charge -off and it's still out there. Overall, and what's most important here, is that we found that Miami Capital did not adhere to their own lending manual; did not adhere to their own terms when they did the approval; they did not adhere to those terms. They didn't confirm the compliance of the conditions, as stated in the loan approvals, and they did not monitor the borrowers after closing to a 4 November 30, 1999 short public benefit. I think most representative of that is the case of Kitty Kop. It's a child care center, which is desperately needed in that area. But, as we all know, anything that deals with children has to go through HRS (Department of Health and Rehabilitative Services). Depending on the size of the facility, HRS will allow you a certain amount of children. They had their business plan. Everything was done. Estimating 40 some odd children. I believe it was 42. When HRS finally gave them their license, they only gave for 23. That's cutting their income immediately in half. So, it was poor planning and poor oversight by the lending institution. They're not only supposed to provide the documentation, the money, but they're supposed to provide a technical assistance to ensure that these businesses flourish and provide jobs for our community. Vice Chairman Gort: Thank you. Any questions or you want to hear from... Commissioner Sanchez: I do. What's... Ms. Sanchez: I'm sorry. There's... Vice Chairman Gort: Commissioner Sanchez. Commissioner Sanchez: What's the recommendation of the administration? Ms. Sanchez: If you don't mind, Mr. Sanchez, there's one case, which was also very, very important. In the case of Tropic Delight Corporation, when they provided their business plan, they identified certain -amount of machinery with serial numbers and model numbers and so forth. Those same equipment were later on billed. In other words, invoices were provided to Miami Capital for disbursement. That equipment was already owned by Tropic Delight. Therefore, they provided an invoice to the lender for equipment they already owned. We identified over twenty-four thousand dollars ($24,000) in this instance. Two, and they would have the invoices with serial numbers and they were identified as equipment they already owned, yet, they provided an invoice for that equipment again. OK. Commissioner Sanchez: What is the recommendation that the administration has on this matter? Mr. Warshaw: Commissioner, the recommendation is that Miami Capital no longer be the lending arm that the City relies on for these loans, based upon this audit, a further audit that was done at the request of the Commission by the Office of Internal Audits of the City, and based on some of the things you've heard this morning. . Vice Chairman Gort: Let me ask you a question. The audit done by HUD (Department of Housing and Urban Development) and the audit done by us, are they very similar? Do you find any difference between the one that... Mr. Warshaw: There were some minor differences. There was some additional monies that are owed back to the City that the Office of Internal Audits found. About three or four thousand dollars ($4,000), making the total about a hundred and one thousand. And that's cumulative of interest on Federal funds that is required to come back from the years 1995 through 1999 and that money is owed back to us now. Vice Chairman Gort: Going through the report, I read some of the comments from the staff and from Miami Capital, where they answered some of the questions were asked. I'd like, if possible, if you guys don't have any problem, I'd like to hear, from the Miami Capital people and, then, we can make a decision or recommendation from the Manager? Commissioner Teele: Mr. Chairman, before you do. November 30, 1999 Vice Chairman Gort: Mr. Teele. Commissioner Teele. Commissioner Teele: We asked that the Internal Auditor do an independent or parallel review. Has that review been completed? Vice Chairman Gort: Yes. It's in your report. Mr. Warshaw: Yes, sir. It's part of your package. Commissioner Teele: And are those findings presented? I mean... Mr. Warshaw: Yes, sir Commissioner Teele: ...I'd like to get all the information on the record and let Miami Capital respond to all of it, if you don't mind? Mr. Warshaw: Sure. Mr. Victor Igwe: My name is -Victor Igwe, Director of Internal Audit. As you directed on November the 10'h, for us to do a review of the report that was issued by Community Development Department, we finished that audit and we issued a report dated November 23rd. And for most of the findings that were reported by CD, we were able to validate most of those. In addition, also, we found some other issues that were not disclosed in those reports, and that report was made available to all members of the Commission. We found -- our results and briefs are on page four of the report. The City department found that ninety-eight thousand dollars ($98,000) was due in interest but, actually, we found it was hundred and one thousand dollars ($101,000). The City department noted that non-performance loan rates and the loan default rates were excessive. Our review of loan documents and recomputations support these findings. The City department also noted that the percentage of Program Income used for operating expenses was significant. Our final analysis support this. but, however; we noted that there was no limit placed on how much of a program interest and income that can be used to pay for operating expenses. Of the 20 loans that they reviewed, we looked at four of those loans and, for the most part, we concur with their findings. And we also make some recommendations. The recommendations that were made are listed on page five. We recommend that Miami Capital repay that hundred and one thousand dollars ($101,000) to the City for remittance to HUD. We also recommended that Miami Capital enhance its enforcements of those loans that are in default. There's an agent report that was dated November 19, 1999. That agent report shows that only nine of 25 loans are currently being litigated. Of those nine, those nine are only six hundred and fifty-two thousand dollars ($652,000), as opposed to one point five million dollars ($1,500,000) of the total 25 loans that are in default. We also recommend that MCDI (Miami Capital Development, Inc.) enhance its internal control procedures to ensure that all required documents are obtained and all prescribed federal guidelines, conditions and all the loan requirements are certified prior to the approval and subsequent to the processing of loan processes. We also recommend. that the City departments review its current involvement in the loan committee. Currently, the Director of the CD (Community Development) Department is a non -voting member of that committee. We recommended they reassess their involvement and determine whether their involvement would constitute conflict of interest. We also recommend that the CD departments perform more monitoring of MCDI. During the period that we looked at, the City department only monitored MCDI only once, but we were not actually provided with any documentation to evidence such monitoring. Commissioner Teele: Over what period of time? 6 November 30, 1999 Mr. Igwe: The period is July I through September 30 of 1999. Commissioner Teele: So, you're saying over a one-year period of time, the Community Development did what or didn't do what? Mr. Igwe: Our audits found that, during that period of time, that the CD department performed only one monitoring visit to MCDI. Commissioner Teele: One what? Mr. Igwe: One monitoring visit. In other words... Commissioner Teele: One monitoring visit? Mr. Igwe: Yes, sir. Commissioner Teele: And was there documentation of that visit? Mr. Igwe: No, there was no document to evidence that visit. We also found, one of the findings had to do with so much money was being used for administrative expenses but, actually, the agreement between the recipient and the sub -recipient did not actually specify a place in the limits as to how much of program revenues that can be used for program administration. We also recommend that the CD departments schedules and holds exit conference with either Miami Capital or any other organization that would have taken over this function at the end of each monitoring visit, and that they should provide them with the opportunity to provide written explanations for any findings that they may have, they may have to come out to before issuing a report. And that concludes our... Commissioner Teele: Mr. Chairman, if I may? Vice Chairman Gort: Commissioner. Commissioner Teele: Now, you're the Internal Auditor, right? Mr. Igwe: Yes, sir, I am. Commissioner Teele: It's interesting that you make those findings and I think everyone that's in government knows what proper protocol is, is that you don't ambush people. You provide them -- the same way the IG did us. You provide us with a notice of your findings and give you a period to comment on them. You're recommending that they do that? Mr. Igwe: Yes, sir. Commissioner Teele: But, as the Internal Auditor, have you all ever conducted briefings or training? I mean, you know, you all represent the audit function within government and I... Mr. Igwe: Yes, sir. Commissioner Teele: I'm not trying to ambush you now. But it just seems to me that everybody's pointing down now, you know. That finding is a very significant finding and, quite frankly, if the Community Development Office had treated Miami Capital in a manner in which we would demand that the County or the Federal Government or the State treat us — I mean, we're under an Oversight Board and this Commission 7 November 30, 1999 is consistently saying "give us due process. Let us respond." And, you know, Community Development didn't do that for Miami Capital. The question is, as the Internal Auditor -- you're a CPA (Certified Public Accountant), right? Mr. Igwe: Yes, sir. Commissioner Teele: Have we ever trained Community Development or has there ever been any training of Community Development by the Internal Auditor staff on how to do things right? Mr. Igwe: Specifically, no, sir. Commissioner Teele: OK. And I don't mean to impugn -- I mean, you, obviously, work for the Manager or an Assistant Manager, and that would have to — I mean, you couldn't, obviously, stand up and say, "Well, I'm going to train you." That would be something that would have to be directed of you. But the point that I'm trying to make, sir, is this. Is that I hear all of the comments that you're making and they're very troubling, in some ways. It's troubling what we're hearing about Miami Capital. We're going to let them respond, at some point. It's also extremely troubling that, for one year, after the audit, that is the OIG audit, that we, the City, didn't really provide proper oversight or management of Miami Capital or monitoring of Miami Capital. Mr. Igwe: Yeah, for that period. Commissioner Teele: Well, that's what we're talking about, for the year following the audit. Now we're hearing that we shouldn't fund them at all anymore. We're hearing a very strong recommendation from the Manager. We've got to, obviously, take that under consideration., But my other consideration is this, is that who's training Community Development, and maybe that's a rhetorical question because I would resent, if I were a department head, another department head coming over telling me "I'm going to train you." That's something that, obviously, has to come from an Assistant Manager or the Manager or the Attorney. But it just seems to me that there's enough blame going around here that we need to look constructively at where we're going, and I really appreciate your audit and I appreciate your finding. Mr. Igwe: Thank you, sir. Vice Chairman Gort: Thank you. 'Mr. Manager. Mr. Warshaw: Couple things. On the 15th of November, I sent to Miami Capital a copy of the audit that was done by Community Development and, respectfully, not only have we treated them well, but we've been working with them for a considerable period of time. In my letter, I cited the major deficiencies and asked them to respond within 10 days. I got a response. Td just like to read it into the record. And it's addressed to me from Juan Del Cerro, the president. It says, "This letter is in response to your letter dated November 15th, that accompanied the review of MCDI by the Department of Community Development. In that letter you requested a response by November 25th. In compliance with a request made by the City Commission, at its November 10, 1999 meeting, MCDI's response to your letter will be in the form of our concurrence with the review that has just been completed by the City's Office of Internal Audits. We understand Internal Audits review will be presented to the Commission prior to its November 30th meeting." So, in effect, that's been their response. There has not been any detailed response to the findings, other than the fact that they're saying "they concur with the audit." The other thing... Commissioner Teele: What's the date of your letter? Mr. Warshaw: I'm sorry? November 30, 1999 Commissioner Teele: What was the date of your letter? Mr. Warshaw: The date of my letter is November 15th and the date of MCDI's response is November the 23rd. Commissioner Teele: And just so that the record is very clear, Mr. Chairman; Mr. Manager, this Commission, on November loth, directed you to give them the opportunity to respond. You know, somewhere all of this is getting ready to get turned around and I'm not going to let it happen. We have a problem. But this Commission, on November 10th, as I recall, instructed you and the Community Development Office to afford them the opportunity to respond. Up until that date, the audit had been completed in October, but had been close hold. They had not even been afforded the opportunity to comment or respond or even have knowledge of the audit, and that's what I'm making reference to, Mr. Warshaw. I'm making reference to the fact that an audit should not be an ambush. It should be an audit. And what we're talking about here is just affording them the opportunity to respond. That was my comment. Vice Chairman Gort: Commissioner Teele, my understanding is, from what I heard from staff, there's two recommendations. It's up to us to make a decision. One is to do away with and find some other arm to do their work. Two, to sit down with them and restructure with all the compliance, restructure of Miami Capital, so they can perform in accordance to the audit and to be able to respond to it. Commissioner Regalado: That's not the recommendation that they said. Commissioner Teele: That's not the recommendation that the Manager... Vice Chairman Gort: That's my... Commissioner Regalado: No, no. They said — the Manager said... Vice Chairman Gort: My understanding, if you read the recommendation... Commissioner Regalado: Yeah, but... Vice Chairman Gort: ...from the report that we received, the recommendation that I read is, is that there's some suggestion how to restructure so they can continue to be the funding arm for the City of Miami. Commissioner Regalado: Commissioner? Commissioner Regalado: And that's a decision that we're going to have to make afterwards. Commissioner Regalado: Commissioner, yes, you're right. But that's not the recommendation that they just said. Vice Chairman Gort: That's fine. That's what they said. But we make the decision that we believe is the best... Commissioner Regalado: Well, I know that. Vice Chairman Gort: ...and we have the paperwork in here in front of us to go ahead and make the decision. Yes, ma'am. 9 November 30, 1999 Ms. Warren: There's only one other thing I would like to put on the record. The hundred and one thousand dollars ($101,000) that was identified as interest income that has to be returned to the U.S. Treasury, those resources have to be returned to the City so we can remit them to the government by Miami Capital. Vice Chairman Gort: Right. OK. My understanding, in the response that they said, that they were ready to do so and they were able to do so, is my understanding. What I read. So, if you like, I would like to hear from Miami Capital at this time... Commissioner Sanchez: Well, if I could... Vice Chairman Gort: ...or respond to any other questions. Commissioner Sanchez: Mr. Chairman, if I could have the floor? From this audit, what has been put forth and as just -- the audit, the official — Office of Internal Auditor. This audit here that I hold in my hand. Commissioner Teele: The internal audit? Commissioner Sanchez: The internal audit. Basically -- and I want to read this for the record. The findings are that "the CD Departments review the source documents supporting the approval of monitoring 20 loans, portfolio tested, disclosed deficiencies, such as failure to perform in depth review of loan applications; deviation from prescribed guidelines; failure to comply with conditions of loan approval; improper documentation of public benefits; insufficient and/or improper documentation to support compliance with the City of Miami first source hiring ordinance; insufficient monitoring of borrower by sub -recipient; failure to document the liquidation of asset; failure in a timely pursuit of legal remedies against borrowers, and insufficient monitoring of sub -recipient by funding source. Now, these are what I consider would be serious offenses. Now, the two recommendations put forth -- and I have not — I've only heard the administration's recommendation — is to go out and seek other lending source. No matter what happens, I think that this City needs to have a lending source that will lend money to small businesses that have a hard time getting money from banks. Because somewhere down the line, someone who wants to open a small business, may not be able to borrow money from a big bank; therefore, going to these lending sources that are provided by the City and work in conjunction with the City to lend money. Now, I'm willing to put an option on the table, and just to review — and my colleagues will review it and see if they support me -- and that I strongly feel that Miami. Capital should be restructured. We should create what I would consider a professional loan officer system, where maybe three banks, city banks, would be able to come together and — a lending officer from different banks, located in the City, would come together, maybe donate, pro bono, four to six hours a month to make sure that these applications or these individuals qualify, and make sure that things are running professionally, so we don't have the same mistakes that were made in the past, that have been identified in this audit, they do not occur. Now, this would be on a rotation basis, where these officers will do it every three months. You will have other people that will come in and monitor Miami Capital to assure that these loans are monitored, and the people that are asking for the loans meet all the guidelines to have this loan. So, this is just — and, then, one thing that I would emphasize is the banks be located in the City of Miami, where we would have a representation from city banks, as well as people — or professional loan officers that will make sure that it's done correctly. And that's just one of the recommendations. I'm sure maybe my colleagues will put other recommendations on the table at this time. - Vice Chairman Gort: Commissioner Sanchez, and if you all would allow to follow me, I'd like to hear from the Miami Capital first and, then, we can close the hearing. Commissioner Teele: Mr. Chairman? 10 November 30, 1999 Vice Chairman Gort: Yes, sir. Commissioner Teele: I am with you, but I have one issue, that, if Miami Capital owes the City money and the funds literally impact our federal funding -- and we got into this, with all due respect, with the Urban League, and I took a very firm position. There was nothing to talk about. As long as you owe us money that has to be reimbursed — in that particular case, it was funds that they had received from the City's land, sold it to the County or the school board, and not reimbursed the City, literally the Federal Government, for the funds. Now, I don't mean to cite the Urban League because they're a great organization, but I'm trying to point consistency. As far as I'm concerned, there's nothing to say, from Miami Capital's point of view, until you pay the money back. I mean, you know, you'll have your right to speak but, if you all don't go out before noon and get us a check for that amount of money, there is nothing to talk about. I mean, you know, right is right. And don't try to hijack us. Because I'm prepared to support Miami Capital continuing in a restructured form, as Commissioner Sanchez has suggested, with certain conditions. But I just think it's appalling that everybody treats the City of Miami — and I'll use this word again, like we're — no, I won't say that. But they treat us like we're weak around here, in terms of the fiduciary responsibility. We're criticized consistently by the Oversight Board, by the public, that this is a Christmas tree city. And the fact of the matter is, is that we do have the poorest city of this state. We're the fourth poorest City in the nation. We do need to make concessions but, please, don't abuse us. Now, if there is — we've got the External Auditor -- the Internal Auditor, who's not a part of the CD network, that came in and said, "it's not ninety-nine thousand. It's a hundred and one thousand." You have the money in the bank. You don't have the money in the bank? You don't have the money in the bank? Vice -Chairman Gort: Commissioner, let's hear from them and, then, we make a decision. Like you said, if they can't pay, what can we do? Yes, sir. Mr. Juan Del Cerro: Good morning. My name is Juan Del Cerro. I'm the President of Miami Capital Development. Thank you. I think, before we get into the hundred and one thousand dollars ($101,000) or the exact amount, I think that you have to be made aware of what Miami Capital's corporate structure is. We are not a — while we're a private not -for -profit corporation, the City of Miami is an integral part of our organization. Up until recently, a member of this Commission sat on our board of directors. Your staff members attend each and every one of our board meetings. Your staff members are members of our Loan Committee. Your staff members have been, through the years, afforded the opportunity to review loans prior to having them presented to the Loan Committee. This is not a separate entity. This is an integral part of the City of Miami. The ninety-eight thousand dollars ($98,000), which turned into a hundred plus thousand dollars -- sir? Vice Chairman Gort: Go ahead. Continue. Mr. Del Cerro: We accept, at face value, the moneys owed to HUD. Miami Capital owes money to HUD. We'll accept that. The City of Miami owes money to HUD. We've accepted that also. The payment — the repayment of the interest earned on principal, we're previously holding. We've been audited by everybody since 1995 and, to be honest with you -- and I think the City's aware of it also. This is the first time that it has been publicly brought out that that money be returned. Getting back to the letter you read, Mr. Manager. When this began, I told my staff, I told our attorneys, I think I told some of you, two plus two is four. I think that the employee of the CD Department that reviewed the loans did- an outstanding job. I agree with her findings. I support her findings. But it has to be taken in the context of time. When were these loans made? What was the Miami Capital's corporate structure when these loans were made? To give you an example — and to be honest with you, I wish she were working for us. Perhaps, if she had been there, we would not have made these mistakes. So, I congratulate the Manager for an outstanding member of your staff. Let me give you an example. She brought up — Carmen, you brought up Maria Gill. The Marie Gill loan was a loan which was not made. Was considered but it wasn't made. We found — and 11 November 30, 1999 Gwen Warren and I discussed it. We found, conflicts of interest in that loan, which had been kept from me, as president, and from members of the Loan Committee. That's the end of the Marie Gill loan. I'm not aware of the other loans. I agree with the findings of the Manager's audit. I agree with them. Numbers don't lie. But you must take this in the context of time. When were these loans made? We've not made any loans since February. We haven't. We would be more than willing to sit down, and I've said it before with the City Attorney, City Manager, anybody on the City's staff, to work towards restructuring Miami Capital Development. In response to your question, no, we do not have hundred and one thousand dollars ($101,000) in the bank. We've made a —since February, we've made a conscientious effort to comply with the Manager's request and return the principal. Hopefully, it will be, probably, close to a million dollars. I just gave the City a check for about thirty thousand dollars ($30,000) collected on principal in October. I'm not aware of what's going to happen in November because I don't have the projections yet on November. We worked very closely with the members of the Internal Audit, who sat with me and my comptroller and one of my loan officers, to go over the findings of the City's audit. I apologize to the Manager for not responding to his letter, as I told the City Attorney when he called me. It was my understanding that — that I should not respond to the. CD review before the OIG review was completed. That was my intention and I -- that's exactly what I did. It was my intention -- and what I've been saying in all of my letters -- to comply, to cooperate. And I told Mr. Igwe and Mr. Margolius that it was my intention today to stand here, jointly with them, and agree. We made mistakes. But Miami Capital did not make these mistakes by itself. The City of Miami Commission, City of Miami CD Department, is an integral part of what we are. Vice Chairman Gort: OK. Thank you. Commissioner Teele: Mr. Chairman... Mr. Alejandro Vilarello (City Attorney): Mr. Chairman? Commissioner Teele:... I would ask.the City Attorney to be instructed to provide some clarification, for the record, on these comments about these integral relationships. Mr. Vilarello: Let me just address the issue of the corporation. MCDI is a separate corporation. It has its own board of directors. It has fiduciary responsibility. Under its contract, as a lending institution, to exercise its own independent judgment on each of those loans. The City doesn't have a voting member within the board of directors. The Community Development Director is a member of the Loan Committee; however, doesn't have a vote. And the Internal Auditor has, in fact, brought that issue to my attention and asked me to look into that, as to whether or not there's a conflict of interest. It doesn't appear to be, on first blush, but I'll certainly look into it with more detail. But, certainly, this is an independent corporation with a contract that was negotiated arms length with the City and they have an obligation to exercise their own independent judgment in the processing of loans, notwithstanding the fact that we have monitoring obligations. Vice Chairman Gort: And I'd like to add to that. When the documentation comes in front of the Commission, it comes with the recommendation of their approval. I think it's important that we understand that. Mr. Warshaw: Commissioner? Vice Chairman Gort: Commissioner Regalado. Commissioner Regalado: Mr. City Attorney, the Community Development Department also is in the business of giving grants, is that correct? 12 November 30, 1999 Mr. Vilarello: Grants and loans. Yes. Commissioner Regalado: Grants and loans. According to the HUD audit, how many bad loans or grants we have from the Community Development, not Miami Capital? Twenty-nine? Ms. Warren: Gwendolyn Warren. According to the HUD audit, the City of Miami's Department of Community Development, during the time period of '82 to '95, had a defaulted loan, portfolio of approximately ten million dollars ($10,000,000). The OIG and HUD and the Commission ordered the restructuring of Community Development, including the Underwriting Division, the Contract Division, the Finance Division, including the monitoring and implementation of a strict contracts on all subcontractors, as a result of that default in loan portfolio. So, the truth is that this City did, in fact, have a high loan default rate and has corrected. And, as a part of that, it -- we implemented our underwriting and contract provision, which is how we were able to review Miami Capital. Commissioner Regalado: Is it ten million or twenty million? Ms. Warren: The defaulted loan portfolio was nine point nine million dollars ($9,900,000). The OIG question cost was approximately twenty million dollars ($20,000,000), that was as a result of the way CD used to be. Commissioner Regalado: OK. How many have we recouped as of now, Mr. City Attorney? And how many are negligent and how much money are those — I think nine are negligent right now. Mr. Vilarello: Actually, there is nine loans that are delinquent and the debtor has made no attempts to bring the accounts current. And we're in the process of obtaining appraisals in order to proceed with the litigation on those. Before we start litigation, it's necessary to find out the value of the property to determine whether or not the litigation is worth while. Commissioner Teele: Are these the housing units? Commissioner Regalado: These are the housing units. Commissioner Teele: You all came back here in June of last year with appraisal. We approved in June — we approved in June... Commissioner Regalado: That's what I was going to say. Commissioner Teele: ... a list of appraisals. I mean, you're going to have to come up another story on that one. Ms. Warren: All of the... Commissioner Teele: We went in... Ms.' Warren: Excuse me, sir. They're done. The appraisals for the defaulted loan portfolio have been completed. These are new defaulted loans that we had — with the new process, they automatically go. Commissioner Regalado: Wait, wait. New? New ones? Those are after'95, you mean? Ms. Warren: Is that what you're talking about? 13 November 30, 1999 Mr. Vilarello: About 29 defaulted. Commissioner Teele: Can we get a -- will you all publish a list of defaulted loans? I mean, I think part of what is wrong is.that there is not enough flow of information. It's almost like information is used as power or to keep people in the dark or to keep people in the know. I would appreciate if you all would publish a list -- and I'll make a motion at the appropriate time — of all of the loans and all of the information on — and an aging list of defaults. Look, let me tell you something. The County — where is Natacha and the principal? Vice Chairman Gort: She left on time. Commissioner Teele: The County finally did something that makes good business sense and we ought to do the same thing. They basically said, "we're going to publish a list of everybody that owes us money and if you owe us money, we're not going to do business with you." Now, what business in American doesn't do that? I mean, that's basic. Why are we pandering and concealing who these people are that owe us money? We need to publish a list, an agent list, the amount that is owed, the amount of principal, the amount that is delinquent, we need to publish it in every newspaper, pursuant to instructions. Because, if nothing else -- I mean, we go around and we publish everything else. I don't understand -- the question that Commissioner Regalado asked is still not answered by the Attorney, and that is, of the lawsuit — of the IG complaints that were identified -- there were some nine million dollars ($9,000,000), and I don't know how we're into this, other than the fact that Miami Capital is just throwing it on the wall now, whatever sticks. But of the nine million dollars ($9,000,000), how many lawsuits has the City initiated to recover the money, Mr.�Attorney? Mr. Vilarello: I can't give you a specific number of lawsuits. As I understand it, we've collected three point eight million of the ten million dollars ($10,000,000) that are in default. And to answer your question -- in one of the memos that I handed out to you all today, which I know you haven't had a chance to review them, dealing with the HUD audit findings, it has a list of all of the loans that are outstanding, with a breakdown on principal interest, late fees, et cetera, and the reserve. The problem with that list, it is too compre... Commissioner Regalado: Yeah, but Mr. City Attorney? Mr. Vilarello: Commissioner, it's too... Commissioner Regalado: Mr. City Attorney, on your memo says, "the City is in the process of obtaining appraisals on these properties to determine whether foreclosure is a financial feasible option." Now, the administration said and we said, that's already been done. And she said, "those are new ones." So, l — you know, we're at a lost here. At least, I am. Are these new loans that defaulted after appraisals were made last year? Mr. Vilarello: Let me identify them from Ms. Warren. But my understanding is, this is one of the 29 delinquent loans identified in the HUD audit. But, as I was saying, the printout probably has more information than you can — we're trying to synthesize that, so it makes a little bit more sense because right now it's just a 28-page report, which might not be in the best form to communicate information. Ms. Warren. Ms. Warren: You're right. Mr. Vilarello: We're talking about the 29... Commissioner Teele: Mr. Attorney, the question -- and its not my question, but my colleague has asked the question twice. On the lawsuits that have been filed, how many lawsuits have been filed regarding -- I heard 14 November 30, 1999 the amount that you've collected, and you're to be commended and all of that. How many lawsuits, is the question that has been asked three times, have been filed regarding the delinquent accounts? And, on that point, do we now have a process in which HUD is keeping the files fully accurate that has the appraisals of all of these units? They should have done an appraisal of all of the units, not the ones that have just become delinquent. And have you all brought those files up-to-date? Mr. Vilarello: Commissioner, of the 29 delinquent loans, two had been paid in full. Seven had been making regular payments since 1998. Six loans are currently in litigation. Four additional loans have -- that have approached the City to try to work out a loan payment. One loan was extinguished, as a matter of law, in foreclosure, and nine loans, as I mentioned before, are delinquent and we are in the process of getting appraisals. I don't know what the status of those nine is, but we are in the process of getting appraisals before we commence the litigation. And that encompasses all 29 of the delinquent loans identified in the HUD audit. Commissioner Teele: So, the answer is six? Mr. Vilarello: No, sir, I can't say that. Because there is nine that have been either paid in full or in a work-out process, which may have resulted from litigation. I apologize. I can't answer that question for you directly. Vice Chairman Gort: Mr. Manager. Mr. Warshaw: Yes. Commissioners, I'd like to comment on something Mr. Del Cerro said regarding "it isn't just Miami Capital. You know, it's the City and others." And I don't disagree with that. But understand what we're talking about here. In 1998, when OIG came forward with its findings, and Gwen Warren has been working to unleash a new plan, including the hiring of someone like Carmen Sanchez, where the City has never had before, a mortgage underwriter, who is able to do this, the City takes its share of responsibility. And I have to tell you, in the year plus that I've been here as Manager — and I learned something from you, Commissioner Teele, that you won't accept and I understand, you know, pointing the finger at the guy who came before you because that gets old after a while. Never one time have I ever heard Ms. Warren say, blame it on the director who was there before her but, yet, she has been working on trying to reconcile 20 years worth of tens of millions of dollars of Program Income from CD, where the City of Miami has, unfortunately, only reported insignificant amounts in the area of a hundred thousand dollars ($100,000) a year, where the former Budget Director used sometimes three, four, five million dollars ($5,000,000) and still, today, could face criminal action as a result of what he did by using that Program Income to support the general fund. But you never hear Ms. Warren say, this is the other guy's fault. So, she gets blamed oftentimes for some of the mess that's there because it took 20 years to get it there, and it's not easy to undo all this. And in Mr. Del Cerro's situation, he's right. The City did not do, over the years, what it should have done, and the Community Development Department did a poor job, very poor job, in monitoring the activities of MCDI. This is a new era. The hiring of Carmen- Sanchez, the hiring of Gwen Warren, and other people, whose job it is to monitor and track and keep control of these loans, hopefully, will put the City in a position, in the next 10, 15 years, that will never happen again. But it did happen and it's history. Commissioner Regalado: Mr. Manager, but still, why the City Attorney says one thing and Gwen says another thing? I don't understand that. Can you explain that? Ms. Warren: I truly thought we were talking about something else. The City Attorney is correct Commissioner Regalado: So, the City Attorney is correct? 15 November 30, 1999 Ms. Warren: Absolutely. I was referring... Commissioner Regalado: So, these are new loans that are in default? Ms. Warren: No. He was doing a summary.of the defaulted loan portfolio. Commissioner Regalado: No, no, no, no. You said — when Commissioner Teele said "a year ago we ordered appraisals and they were ready," you said that these are new loans, that these are new appraisals. Ms. Warren: What I heard was that we — my assumption is — and we — Commissioner — the Commission here approved us getting all of the property and the default — in the loan portfolio appraised. To my understanding, we had did the POs, selected the firms, and that they were either completed or been done. What Mr. Vilarello is saying is that there's approximately, what, six, seven? Mr. Vilarello: Nine. Ms. Warren: Nine that are going through some kind of legal review and they're apparently doing some more assessments. I am sorry. Commissioner Regalado: No, no. What Mr. Vilarello says... Ms. Warren: I misspoke. Commissioner Regalado: What'Mr. Vilarello said is, the City is in the process of obtaining appraisals, and we are told that the appraisals are already done. So, who's right and who's wrong? Ms. Warren: Mr. Vilarello is correct. Commissioner Teele: I'd like to take this up, Mr. Chairman, after we deal with the Miami Capital. Because I think -- you know, really — I think Miami Capital has tried to focus this spotlight on the Community Development and I think that's not an unfair issue because, clearly, we, as the Commission, have not provided proper oversight over Miami Capital — over the City of Miami Department, just like the department did not apparently provide sufficient oversight over Miami Capital. I would like to just understand the discreet issue of the money that is — that needs to be repaid. Why does that money — they've got tens of millions of dollars. How much money do we have out with Miami Capitol now in the loan portfolio, the revolving loans, and all of that, Ms. Warren? Ms. Warren: The last correspondence I received from Miami Capitol, he said three million? They would be in a better position to tell you what the balance is owed on the loans. Commissioner Teele: They're in a better position to tell us how much of our money they have? Ms. Warren: They're the ones who — how much of our money they have? How much money they've loaned out within... Commissioner Teele: No. How much of our money do they have? How much Community Development funds do they have available and that they've loaned out? How much assets are we talking about now? Vice Chairman Gort: You're talking about the value of the portfolio? Commissioner Teele: I'm talking about the amount of the portfolio, plus the amount of funds that they have, 16 November 30, 1999 that are waiting to be loaned. I mean, what's really disturbing is this fact that they've not done anything since February, and I would imagine that the expenses have not gone down dramatically since February. So, in effect, we've just been paying out a lot of money for a year to maintain an organization that is -- how much salary — let's start with salary. How much is the salary of Miami Capital, and is that grant funds from us to them? Ms. Warren: The City of Miami provides them two hundred and fifty thousand dollars ($250,000) annually for administrative expenses. The City Commission also, at some date, I think in '83P86, directed that all -- that the interest that is generated from the repayment of loans could be used for them by -- for administrative purposes. So, what they... Commissioner Teele: That was in '83? Ms. Warren: I think — I'm pretty sure that's how far it goes back. So, they have two hundred and fifty thousand dollars ($250,000) directed administrative support from the City, plus they collect the — when they are paid back on their loans, their interest portion of the payments, they also maintain as a part of their administrative pool. The interest income is as a result of them depositing that interest income in a bank and accruing interest on it. Those funds have to go back to the United States Government. Commissioner Teele: OK. But let's just... Ms. Warren: And I do have their information. Commissioner Teele: Let me answer —just... Vice Chairman Gort: Their total budget was seven hundred and sixteen thousand two sixteen and last year was brought down to six hundred and thirty-eight thousand three eighty-six. Commissioner Teele: Well, why are your numbers so different from her numbers for the same question? Vice Chairman Gort: Well, I'm putting here — I'm looking at the report that I was given and it shows here the contribution for the City. But, also, the interest money that they get. So, when you put the two together and you add it, that's what the total budget is. Commissioner Teele: But isn't that the question, Mr. Chairman? Vice Chairman Gort: That's the total budget. Last year was seven — six thousand three -- six hundred and thirty-eight thousand three eighty-six. Commissioner Teele: Mr. Chairman, respectfully, I would ask you, as Chairman, to ask the staff to answer the question. I think we need to establish certain things on the record by the staff, before we even talk about restructuring. Because they're challenging — I mean, if there's a more appropriate green-eyed shade person that can answer the questions, it would be a nice time to bring that person forward. Ms. Warren: What we have -- we have a listing of the Program Income, which has been generated by Miami Capital, which is what they used -- the interest from that Program Income is used for administration. The principal is used for additional loans. Over the five-year period, or I could take it annually. Commissioner Teele: Ms. Warren? Ms. Warren: Yes, sir. 17 November 30, 1999 Commissioner Teele: The question, the question. How much, annually, do they receive from the City of Miami for administration? Ms. Warren: Annually, in '99, they received six hundred and thirty=eight thousand three hundred and eighty-six dollars ($638,366); in '98, they received seven hundred and sixteen thousand two hundred and sixteen dollars ($716,216). It's on the third page of the audit report. Commissioner Teele: So, Director Gort is correct? Ms. Warren: It's in the audit report, on the third page. Commissioner Teele: I understand. I understand. Now; what portion of the money are you trying to recover of this 250 and this 638? Ms. Warren: None of it. Commissioner Teele: So, the portion of the funds that you're trying to recover would be the interest paid on... Ms. Del Cerro: May I interject something? Commissioner Teele: No, please. The amount that you're trying to recover is the interest paid on the amount of funds that were in the bank? Ms. Warren: Yes. They deposited one million nine hundred and sixty-eight thousand six hundred ninety-four dollars ($1,968,694) in an interest bearing account, and they yielded one hundred and one thousand dollars ($101,000) of interest income, which has to be remitted to the United States Government. Commissioner Teele: Now, have they done that in previous years? Ms. Warren: No. Commissioner Teele: They did that, for the first time this year, to our knowledge? Ms. Warren: To our knowledge, they have never remitted the interest income to the City or to the -- we've only identified the amount that's owed in this five-year time period? Commissioner Teele: But the issue here is the Federal rule. Ms. Warren: Yes, sir. Commissioner Teele: The Federal rule, without regard to what we, the City, feels about Miami Capital, the Federal rule says that "if a grant agency collects interest on Federal funds, then, that amount is not Program Income. It's interest income." Ms. Warren': Correct.. Commissioner Teele: And you can't commingle interest income and Program Income.. Ms. Warren: You can't keep it. 18 November 30, 1999 Commissioner Teele: You can't keep it. Ms. Warren: Right. Commissioner Teele: So, in other words, if they charged six percent interest on a hundred thousand dollar ($100,000) loan or 10 percent, the interest payment is Program Income.. Ms. Warren: Correct. If they take that same Program Income and deposit it in the interest bearing account and it creates money, that is what we call Interest Income, which has to go to the government. It's not usable. Commissioner Teele: Now, does that money come back to the City? Ms. Warren: It goes to the U.S. Treasury. It has to be remitted to them, at least, once a year by statute. Commissioner Teele: And, so, are you suggesting that you can't take the Program Income and reimburse the interest income? Ms. Warren: You cannot use Federal funds to pay a disallowed or question cost. You can't pay — use Federal monies to pay for a mistake. For the — no. Commissioner Teele: So, you've confirmed all of — at least, all of the answers that I thought were the correct answers. So, the question now becomes, where does Miami Capital get the one and one thousand dollars ($101,000) to pay back the Federal Government? Because they're not repaying the City, and I don't want the perception to be that we're giving them a hard time because they could use the dollars from over here to pay back that. That's just not permissible. Ms. Warren: No, sir. Commissioner Teele: So, where would they get back in -- knowing the Miami Capital situation the way you know it, where would they get the funds back to pay the one hundred and one thousand dollars ($101,000)? Ms. Warren: I do not know all of the other parts of Miami Capital. Our focus has been those City -related programs. The monies that they must remit to us, that must be returned to the U.S. Government, has to be non CDBG monies, non City funds. Commissioner Teele: OK. All right. Ms. Warren: And I don't know where they would get it. Commissioner Teele: Now, my final question in this regard is, what is the amount, excluding the one hundred and one thousand dollars ($101,000) and excluding what they are spending — and it's very troubling to me that they are not making loans since February, but I would imagine that the expenses have not — in any event, what is the total amount of the portfolio, whether they be in loans or whether they be in bank accounts or et cetera, that are funds, excluding the two hundred and fifty thousand dollars ($250,000) a year that they have, that, if we were to, basically, order all of our funds back today -- and that's an option. Ms. Warren: Yes, sir. Commissioner Teele: If we were to order them to return by 5 o'clock or high noon tomorrow all of our 19 November 30, 1999 funds, how much money would we be looking for or the assets? That would be the loan documentation and whatever and whatever and whatever. Ms. Warren: The loan portfolio is — at the time of this report was six -million... Commissioner Teele: What's the date of the report? Ms. Warren: August of '99. Six million twenty-five thousand nine hundred and ninety-seven dollars ($6,025,997). Commissioner Teele: Now, that's the loan? Ms. Warren: That's the outstanding loan balance, yes. Commissioner Teele: And what about the bank deposits? Ms. Warren: As of -- I think it was March of this year. It's also a part of the HUD audit and the rules. All of their principal that they have been accumulating, they have deposited with the City of Miami. I think they have approximately nine hundred thousand dollars ($900,000) in an account with us. That would be used for revolving loans, if you were to reinstate it or whatever. Commissioner Teele: So, the total portfolio is approximately seven million dollars ($7,000,000)? Ms. Warren: There's six million dollars ($6,000,000) out and about a million that's been collected. Commissioner Teele: All right. Ms. Warren: Yes, sir. Commissioner Teele: That's a lot different from the three million that you started -- OK. Thank you very much. Vice Chairman Gort: Mr. Winton has been asking for -- yes, sir. Ms. Warren: That's the value. Commissioner Winton: I guess that, Mr. Manager, you stated earlier in your comments that, in many ways, you did see the -- I don't think partnership is the term that you used, but that the City had a pretty big responsibility, as it relates to working with Miami Capital and how our responsibilities fit in that. And I guess I look at this whole thing maybe a little differently. I really see the City's role as that of kind of the bank examiner and Miami Capital as the bank that we've hired to distribute loans and, frankly, based on what I've read here and, particularly, the information that 1 read about the prestige enterprises fiasco — I think is the best term I can use here -- I am very troubled by Miami Capital, and I understand it is a not -for -profit organization. I understand clearly that the City must have a vehicle for providing loans to people who want to start up businesses, particularly, in our minority neighborhoods. However, the City has created a relationship with a separate entity that has, as stated earlier, the fiduciary responsibility to manage the money we give it, and I don't see it as the City's responsibility to be -- you know, maybe we're — we are the ultimate fiduciary, but they have real, true fiduciary responsibility. And I see this, I guess, differently than some of my colleagues. I do hold them 99 percent accountable for this mess, and I do not hold the City's administration accountable more than one percent. Maybe we could do a little better job of oversight, but I don't see our responsibility, in contracting out this kind of service, as one, where we've got to provide 20 November 30, 1999 training to them. If we're going to provide training, we might as well bring it in-house and train our own staff. We frankly farm this out to an outside entity that supposedly has the expertise to provide these loans, to do the appropriate underwriting of the loans before the loans go out, and to monitor the performance of those loans as they go forward. That's what they get paid to do and that is not the City's responsibility. And, so, it seems to me that the accountability really is with Miami Capital, and that the decisions we really need to make are what the future of our lending program will be and I am looking directly at the board of directors and the administration of Miami Capital and I'm personally saying, Y'all are responsible, you're accountable, and you're the people I'm looking to. And 1 guess our decision has to revolve around what kind of things we want to do, understanding that we have to have a vehicle for doing this. And whether it's to reorganize Miami Capital or a new entity or bringing it internal, I haven't made my mind up. But I will tell you that, from my view point, as it relates to the existing folks at Miami Capital, the board of directors and the senior administration, I'm holding them directly accountable and I think they're the problem here. And if Miami Capital is reorganized, I don't see room for any of those people to stay involved. Mr. Del Cerro: We agree. If I may, Mr... Vice Chairman Gort: Excuse me, sir. Excuse me. Mr. Del Cerro: No? Vice Chairman Gort: You're out of order. We're having discussion amongst the Commissioners here. Let somebody answer your question. Any other comments? We have to make a decision, people. Commissioner Teele: Mr. Chairman? Vice Chairman Gort: We have a long agenda. Commissioner Teele: Mr. Chairman, I find Commissioner Winton's remarks particularly on point in the bottom line. I have some concern about the premise. And I wasn't here, Commissioner Winton, when Miami Capital was formed, but I've read a lot. Vice Chairman Gort: None of us were here. Commissioner Teele: I've read a lot about this. The last thing that I'm going to vote to do is to bring it in-house, and the reason that it went out -house was because of a history and, particularly, with a Strong Mayor, the last thing I'm going to vote to do is to bring lending in-house. That's, I think... Commissioner Winton: And I probably agree with that. Commissioner Teele: That's consistent, I think, with the HUD's ruling because, then... Commissioner Winton: Right. Commissioner Teele: ...we're the board of directors of it and we can't duck that responsibility and we can "delegate" it to the Manager and hide behind the Manager or the administrator or the Mayor or whomever, but at the end of the day, we're the board of directors of this corporation, this municipal corporation. And I don't think that it is going to be in the City's best, short-term interest to entertain that, as a consideration. And 1 only -- not for the purpose of debate, but just wanted to say, I think the history is important. The second comment regarding the history is this. Miami Capital has evolved to what it is today. I think your analogy of the bank examiner is a fair analogy as to why we should have it. But you don't have bank examiners on the boards of lending institutions, making lending decisions. And the Community 21 November 30, 1999 Development Office has always had veto authority and, depending upon who the director was and is -- Ms. Warren, you know, I'm going to speak, if I can. Depending upon who the director was and is, the level of involvement of Community Development, in the loan process of Miami Capital, is well-known and well -documented. Now, this director may not have had but I even think one of the things the Internal Auditor recommends is that we either remove ourselves from being a non -voting member that is participating in loan decisions or we establish an arm. And I think those are the kinds of recommendations that we need to focus on. I look at this from a totally different vantage point and, that is, as a former County Commissioner that had the same problem, we could not find a lending institution. Now, the point -- the only point that Commissioner Sanchez has said - and I agree with virtually everything he's talking about in terms of reorganization - that I would take some concern about is, it's good to say have banks involved in this, and we should have bank executives on the board of this, but to use a lending criteria, that is, that of a bank, is basically to eliminate the organization. And I can see having auditors; I can see having banks doing an analysis of it, but to use a lending criteria or a bank lending officers on loan, which is going to raise any number of issues relating to conflict, in that most loans are syndicated and, you know, it's just sort of like checking the conflicts list on this kind of stuff could become -- especially lender liability issues, where you have vendors and all of that, it could become very problematic. But I think the motion of involving banks in Miami Capital is a noble notion and something we should look at. The problem is this, is that when you look at Miami Capital and the history and you look at everybody else that's been in this, all of them have virtually failed. And the County has, in fact, used Miami Capital as its lending institution, and the lending institution that the County did use, even though the staffs recommendation in 1994 was to use Miami Capital - and I vetoed it, as a County Commissioner, and said, let's go out and use a private sector company. That company exploded in failure, and that was a bad decision. Where we said, well, let's try to develop a second lending institution. This is lending in a troubled area. And let's make no mistake about it. The only people that go to Miami Capital, apparently, are the people who can't get a loan from a bank or the people who are politically connected. That's the thirteen million dollar ($13,000,000) reference issue of loans. And it's really troubling when you have people with loans that have two and three and four loans with the same institution. That's particularly troubling because, quite frankly, I think you raise the issue of lender liabilities and all those other things. A lender has an obligation not to stack the debt, but to reorganize the debt and to roll it into one basic deal. And I don't understand how you're going to have loans with two and three loans. I am of the opinion that Commissioner Winton has made the operative statement and, that is, before I make this observation. Commissioners, I think it's very important that the staff continues to talk about the first source hiring agreement; that Miami Capital adheres to that, and I fully agree that the first source hiring agreement but, again, we don't have a first source hiring agreement with City staff. And still I come back to the -fact that if the Manager - if the Mayor has to live in the City, if the Commissioners have to live in the City, then, we should provide positive incentives for staff to live in this City. But having said that, I think the issue here is this. The only way I will vote, along with Commissioner Sanchez and Commissioners that have talked about restructuring, is that, if the entire board of directors, save one person resigns and there's a total restructuring, and with the understanding that one officer, senior departmental level, preferably, from the City will go over there on loan and reorganize it as a detailed, on -loan person. I know that raises some liability issues, perhaps, as it relates to that but can I tell you this? The day we don't have a lending - the day we don't have Miami Capital functioning and the day we take it in-house for one day, all of those liabilities have attached anyway. And the truth of the matter is, who are we running from? If we've done something wrong or if we've allowed something to be done wrong, then, we need to stand up and be accountable. I do not agree that Miami Capital and the City of Miami are one institution or one entity. I don't think that the City Commission is a part of Miami Capital, contrary to what's been said on the record. But I am prepared to say that, if there's been lender liabilities or if we've done something wrong, then, we need to shoulder -- we've allowed them to do something wrong, we need to shoulder that responsibility. And, so, my recommendation to the Commission would be, rather than throwing the baby out with the bath water and forming a new organization or going out for bid and going out for bid for something like this, honestly, is going to take at least 120 days to 180 days. Anybody with who wants to do something like this is going to want to go -- anybody who wants to do this seriously is going to need to go 22 November 30, 1999 through the portfolio; they're going to need to analyze every loan; they're going to need to do an appraisal of every loan, unless we're going to absolve them of all liabilities and responsibilities, which we're doing -- we're going to wind up doing anyway. But this is not a quick -fix. We have a situation where, on tomorrow or today, Miami Capital's contract runs out. We can extend it but I think that would be the worst thing we could do, as a business person, if we're going to cut it off. You don't extend it and say we're going to cut it off. You go in there and you seize it today. I think the only thing that we should do is, we should require all of the directors, save one to resign -- because you have a legal problem if everybody resigns. You have a corporate, legal problem if everyone resigns -- we should reappoint and reorganize Miami Capital, and we should appoint -- provide an on -loan Manager that can go in there and work with the new board -- new, reconstituted board for the next 90 days. And I would certainly support a motion that Commissioner Sanchez has said, but it would have to be conditioned on the fact that all of the directors leave and that all employees would basically be noticed, as of this date, that they're furloughed or on -leave, based upon the decisions of the interim executive director, who the Manager would name. Commissioner Sanchez: Mr. Chairman? Vice Chairman Gort: Mr. Sanchez. Commissioner Sanchez: I strongly believe that the number one issue here is to keep politics out of it, and that's why I made the recommendation to create a professional Loan Committee, which will be on a pro bono of bringing in banks or bank professionals that specialize in loans, to ensure that loans are made properly. I do agree with some of the points that you've made, to bring in someone from the City to oversee Miami Capital, and I can concur with you on some of the facts that you put out that will improve the services. Now, when we talked about Miami Capital lending money to small businesses, yes, it's designed for that. But Ms. Warren stated that people -= a gentleman, whose portfolio was like thirteen million dollars ($13,000,000), also got a loan out of that. So, you know, it shows that the number one issue here is to keep — you know, keep the politics out of it and putting these people in there. I think we'll keep the politics out. Because I agree with you, everyday that this City does not have a lending institution to help small businesses, it holds back the progress of this City. So, I would be more than glad to make the motion, to restructure Miami Capital. Vice Chairman Gort: Excuse me. Before you make a motion, let's hear from the attorney. Mr. Vilarello: Mr. Chairman, first I'd like to remind the Commission that this matter, Miami Capital, is on the agenda simply as a discussion item. At this point and time, the Manager has given them a copy of CD's report. They have a copy of the report from our Internal Auditor. The Manager's indicated he's going to make a recommendation to this City Commission on action. He's advised me that, by the next Commission meeting, he can give you a written recommendation on what action the City Commission should take. The comments by each of the Commissioners here today should be taken by Miami Capital as a road map for their proposal on restructuring of Miami Capital. I suggest that this City Commission does not detail and tell them who is going to be on the board of directors, who's going to be responsible. Miami Capital should give you a proposal of how they intend to restructure it. And they've been given comments by this City Commission on what will be necessary to receive your individual, affirmative approval of that restructuring. Instead of making a motion, my suggestion is you do direction to the Manager... Commissioner Regalado: Mr. City Attorney? Vice Chairman Gort: Let him finish. Mr. Vilarello: ...that you direct the City Manager to come back with a written recommendation to this City Commission for it to act on. 23 November 30, 1999 Vice Chairman Gort: Commissioner Regalado. Commissioner Regalado: What about the funding? I mean, what you're saying is that, from today to December 14th, that entity will be closed? . Mr. Vilarello: You should ask the Manager to respond to that. Mr. Warshaw: That's correct. But I think what the City Attorney is telling you is that because they are an independent 501-C3, I can't go in there and tell them who is going to be running their organization. If your decision is to restructure them and you want to restructure them — and the Attorney can correct me if I'm wrong -- as Miami Capital, as opposed to forming a brand new entity... Commissioner Regalado: Mr. Manager, I understand that. What I'm asking is the fact that we need to know and they need to know and the public need to know and the press need to know that, today, at least temporarily, we're closing Miami Capital. Is that yes or is that a no? Mr. Warshaw: Go ahead. Commissioner Regalado: Is it yes or no? Mr. Warshaw: What we're saying is, in the next 14 days, if they're agreeable, they would have to agree. Commissioner Regalado: No. Do they funds? Ms. Warren: Miami Capital has another source of funds. We are not their sole source of funding. Commissioner Regalado: That's all I'm asking. Ms. Warren: Now, as it... Vice Chairman Gort: Commissioners? Commissioner Regalado: So, what you're saying is that they're going to keep existing? Vice Chairman Gort: Commissioners? Mr. Warshaw: However, what we would do, if they're agreeable, is a member of the CD staff, for the next 14 days, let's say Carmen Sanchez could work with them to administer, you know, our loans until we come back before you on the 14th, if that's agreeable. Vice Chairman Gort: Commissioners, let me give you a suggestion. I think Miami Capital and all the directors are hearing what we're saying. We're saying, if they want to be in business, they want to stay in business, they have to restructure. At this time, my advice to them is, as of today, go back and start doing your homework, get together with the City staff and start working on your restructuring so that could be presented to us on the 14th. Commissioner Teele: Mr. Chairman? Vice Chairman Gort: Yes, Mr. Teele. 24 November 30, 1999 Commissioner Teele: Mr. Chairman, I think it's -- I think the City Attorney's advice, again, is very good advice to all of us. Miami Capital has a corporate life, has a legal life outside of anything that we may say or do, any resolution or action we may take. Our involvement with them is to provide them with the administrative funding for their operation and to provide them with a capitol funding for their loan portfolio. Now, as of today, their administrative funding has ceased. I would be prepared to make a motion to authorize the Manager to reimburse them for reasonable costs over the next 14 days, based upon the Manager's determination as to what is reasonable: I think that's a very important issue; Mr. Manager, that you need to have that quiver — that arrow in your quiver. That's number one. Number two. I would also be prepared to make a motion to instruct the Manager to work with the Offices of Development Community Development and Internal Auditor and External Auditor and the Attorney, to come to us on the 14th with a new corporate structure for a lending institution that would -- including names of prototypes, et cetera -- as an option. Because, I think, what we don't want to do is that we don't want to come back here on the 15th and engage in a game of chicken. On the 14th. And, so, what I'm only saying now is this, very clearly, I think it's important to authorize the Manager and the Attorney and the auditors to come in with a skeletal article of incorporation that can be incorporated, and someone who's willing to do it, that will set up a separate entity that's arms length, come in with a name and all of that, and we will make an action as to whether to accept their plan to restructure or we'll make the decision to go in a separate direction. But I think, not having that option on the table, presents us with a unique problem on the 14th as to what it is we can do and should do. Again, Mr. Chairman, I want to associate myself very strongly with the comments of Mr. Winton and that is this, that a restructuring means, essentially, that the entire board, save one or two persons, would not be a part of this. I would also ask the City Attorney for an opinion — because there was something that happened to Miami Capital, that I researched very diligently when I was first elected, and I. realized it was such a can of worms, I dropped it, and that's this. Miami Capital has never submitted its board of directors to this Commission for approval and they told me they didn't have to, but when the research was done, they clearly have to. And that was under a different City Attorney. I researched the issue. I mentioned it to the Executive Director. I mentioned it to you. And you were the chairman at the time. Weren't you Chairman when — you were Chairman and I said, I'm not going to call to check on this but, as far as I'm concerned, the entire board that has been elected over the last seven or eight years could very well be thrown out as a technicality because they were never confirmed by this Commission. For some reason, it evolved over the years that, unlike the Off -Street Parking Board or some of these other boards, that we had the authorization to approve their board. This Commission, at least for the last seven years, four years, before I was elected -- six years — has not approved the board. So, technically, you also have another issue, I think, that you need to work with the City Attorney on. And if there is some memorandum or some resolution that the Commission passed that was not a part of my research, then, 1 would stand corrected. But the research that I did in November and December of '97 clearly reflected that the board of Miami Capital, to be valid, is to be submitted to the City Commission for ratification, not for approval but for ratification. So, I wanted to ask you for an opinion on that, and an opinion as to the legal status of that board that has not been ratified, as well. Vice Chairman Gort: There's a motion. Is there a second? Commissioner Winton: Second. Mr. Vilarello: Mr. Chairman? Vice Chairman Gort: That was a motion. Commissioner Teele: The motion was to authorize the Manager to reimburse Miami Capital for reasonable costs, based upon what the Manager believes to be reasonable costs, for the next 15 days, that is, between now and November 15th. And, further — during this period. That means... 25 November 30, 1999 Mr. Vilarello: December 15th. Commissioner Teele: ...that they're working now without payment based upon a contract, but they may be reimbursed, based upon what the Manager deems to be appropriate. And the second motion was to instruct the Manager, the Attorney and the External. Auditors to come to us with a corporation ready to be -- with recommendations as to who would serve on the interim board, et cetera, for the next Commission meeting, in case we can't get this organization restructured. - So, we would vote on the 14th on whether to... Vice Chairman Gort: One or the other one. Yes. Commissioner Teele: One or the other. Commissioner Winton: I'll second that. Vice Chairman Gort: Been second. Any discussion? Mr. Vilarello: Mr. Chairman, before you call the question. Vice Chairman Gort: I'm sorry, sir. It's not a public hearing. Go ahead. Commissioner Sanchez: Just to clarify. I think that this Commission has put out a blueprint to Miami Capital -to put together — and recommendation has been made by my colleagues. My only recommendation is that, if you put that blueprint together, you have a professional loan committee of people that are professional in specializing in loans. Because I think that's where most of the problems have occurred. So, that is just my two cents in that motion. Vice Chairman Gort: The one thing I'd like to add, as you put your board of directors together, make sure you have people that are within the business industry with the Chamber of Commerce. And most important — I can't think of the name right now, but it's a group — there's an organization of retired, very successful business people that are willing to give aide. What's the name? S.C.O.R.E. (State & County Organization of Retired Executives)? Ms. Warren: S.C.O.R.E. Vice Chairman Gort: S.C.O.R.E.? Mr. Warshaw: Right. Vice Chairman Gort: I believe S.C.O.R.E. should be part of this. Because a lot of the people we're lending money to do not have the expertise to run the businesses. They have the dreams; they have the ideas; they're hard working individuals, but they don't have the administrative education. So, it would be very important that we can give technical support to another agency like S.C.O.R.E. I think that should be part of it. OK. All in favor state by saying "aye." Mr. Vilarello: Mr. Chairman, before you call the question. You have the president of Miami Capital here. I would like to have him agree, on the record, that he would continue on, over the next 15 days, as outlined in the motion. Mr. Del Cerro: Well, I have a surprise for you. If I may have two minutes? 26 November 30, 1999 Vice Chairman Gort: Sure. Mr. Del Cerro: OK. When we discovered all of these flaws, some of the board members and some of the loan committee members — oh, by the all, they're all bankers in Miami. They're not -- they're bankers. OK? We decided to restructure Miami Capital.. And I made a comment, which I want to go on the record as saying. I made a comment that I would resign as president, effective December 1 st, if the City funding was not forthcoming for a very simple reason. I didn't want to deprive staff members of salaries, people that had been there for such a long time. So, I don't know where we stand now. I will be more than willing to work with Ms. Warren or you or Mr. Warshaw or Carmen or anybody else in doing this. I have no problem with that. Before I leave, I want to tell you that Miami Capital does not accept 99 percent of the blame for what's happened. We accept a hundred percent of the blame for what's happened. We saw it coming. We took action. We did what the City of Miami did. We restructured, also. Unfortunately, everything happened at once. So, I will do exactly as the Manager and you indicate. And you tell me what to do before I leave, so I know where I stand. Vice Chairman Gort: The motion is, someone from the City, assigned by the Manager, will get together with you all to work on the restructuring. You'll have the funding until December 14th to do so. The Manager will be working with you. Mr. Del Cerro: So, you want me to stay and work with them? Mr. Vilarello: To agree to stay for the next... Commissioner Teele: That's up to your board of directors. Vice Chairman Gort: Right. Your board of directors decides who they want to deal with the City. OK? Commissioner Regalado: Mr. Chairman? Vice Chairman Gort: That's a decision you all have to make. Mr. Vilarello: Mr. Chairman? Vice Chairman Gort: Yes. Mr. Vilarello: The question is, as the president of the corporation, will you be willing to proceed for the next 15 days, as the Commission has indicated, a promise to fund for the next 15 days administrative expenses? Mr. Del Cerro: If that is the wish... Mr. Vilarello: Under those conditions, would you... Mr. Del Cerro: If that is the wish of the Commission, yes. Commissioner Regalado: Mr. Chairman? Vice Chairman Gort: Yes. Thank you, Juan. Commissioner Regalado: As part of this issue, that it's coming back on the 14th, I would like to have also the details of the loans that CD has given in the past year, '83 to '95, those 29 loans of the HUD audit. But, 27 November 30, 1999 also, loans that had been granted from '95 up-to-date and the payment that entities are making. The City Attorney must tell us how many are in litigation; how much money does this mean, in terms of what we have gotten paid and what we're seeking, and that would be part of my request. Vice Chairman Gort: OK. There's a motion. All in favor state by saying "aye." The Commission (Collectively): Aye. Vice Chairman Gort: No nays. Thank you. The following motion was introduced by Commissioner Teele, who moved its adoption: MOTION NO.99-910 A MOTION AUTHORIZING THE CITY MANAGER TO REIMBURSE NIIAMI CAPITAL DEVELOPMENT INC. FOR REASONABLE COST INCURRED, AS DETERMINED BY THE MANAGER, TO COVER THOSE ADMINISTRATIVE COSTS OVER THE NEXT 14 DAY PERIOD; FURTHER INSTRUCTING THE CITY MANAGER TO WORK WITH THE DEPARTMENT OF COMMUNITY DEVELOPMENT, THE OFFICE OF INTERNAL AUDITS, THE CITY'S EXTERNAL AUDITOR AND THE CITY ATTORNEY AND _ TO COME BACK AT THE MEETING SCHEDULED FOR DECEMBER 14, 1999 WITH A NEWLY RECOMMENDED CORPORATE RESTRUCTURING FOR A LENDING INSTITUTION, INCLUDING A SKELETAL ARTICLES OF INCORPORATION, NAMES OF PROTOTYPES, ETCETERA, AS AN OPTION FOR CONSIDERATION. Upon being seconded by Commissioner Winton, 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. Mr. Del Cerro: May I ask a question before I leave? Vice Chairman. Gort: Yes, sir. Mr. Del Cerro: Thank you. Who is the City assigning to work with me? Vice Chairman Gort: We don't know. The Manager will assign someone to work with you. Mr. Del Cerro: When do we start? 28 November 30, 1999 Vice Chairman Gort: The Manager will work with you and let you know. OK? Thank you. Mr. Warshaw: Come over here and we'll talk. 2. DISCUSSION CONCERNING COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDS — EXTEND TO MARCH 30, 2000 HOUSING ALLOCATIONS — EXTEND FUNDING FOR RAFAEL HERNANDEZ CDC, COCONUT GROVE LDC, EDGEWATER DEVELOPMENT CORPORATION WITH TECHNICAL ASSISTANCE - ALLOCATE AND NOTICE FOR DECEMBER 14, 1999 PUBLIC HEARING, $16,000 OF PUBLIC SERVICE FUNDS FOR DE HOSTOS SENIOR CENTER — DISCUSS STATUS OF LATIN QUARTER CONTRACT — DIRECT CITY MANAGER TO VALIDATE TARGET AREAS THROUGH INTER -AGENCY AGREEMENT WITH A LOCAL UNIVERSITY — INCLUDE HISTORIC PRESERVATION AS ONE OF SEVEN CATEGORIES IN THE CODE OF FEDERAL REGULATIONS — DIRECT MANAGER TO VALIDATE HUD ALLOCATION FORMULA BY DISTRICT — RETURN TO DECEMBER 14, 1999 COMMISSION MEETING WITH RECOMMENDATION REGARDING CODEC'S REQUEST FOR IMPACT FEE DOLLARS — ALLOCATE CAPITAL IMPROVEMENT FUNDS ($25,500) TO FIX ROOF FOR ASSOCIATION FOR THE DEVELOPMENT OF THE EXCEPTIONAL — DISCUSS CAPITAL IMPROVEMENT ALLOCATION TO CENTRO HISPANO CATOLICO — DIRECT ADMINISTRATION TO PROVIDE CITY COMMISSION WITH A CHART DEPICTING ECONOMIC DEVELOPMENT PROJECTS' ALLOCATIONS BY TARGET AREAS — ALLOCATE $50,000 FROM SET ASIDE FUND FOR SOUTHWEST 8' STREET FACADE PROGRAM — ALLOCATE $42,000 FOR ALLAPATTAH BUSINESS DEVELOPMENT AUTHORITY FROM CITY COMMISSION SET ASIDE FUND — PLACE ON DECEMBER 14, 1999 CITY COMMISSION MEETING AGENDA ITEMS RELATED TO THIRD AVENUE BUSINESS CORRIDOR AND REDEVELOPMENT OF PARK WEST AND OVERTOWN — DISCUSS PARKING SURCHARGE ALLOCATION FOR DOWNTOWN MIAMI RATHER THAN CDBG FUNDS — BRIEF DISCUSSION REGARDING MARTIN LUTHER KING PARADE AND MIAMI GALA EVENT FOR PUBLIC SERVICE FUNDS — RECOMMEND TO MANAGER TO ALLOCATE $20,000 FROM RFP POOL FOR CATHOLIC CHARITIES. Vice Chairman Gort: Next item, discussion concerning the Community Development Block Grant Program related issues. Mr. Manager. Commissioner Teele: Mr. Manager, would you proceed? All right. This is the meeting regarding the Community -- this is Item B, Discussion of Community Block Grant -- Community Development Block Grant issues. Is this a public hearing, Mr. Attorney? Mr. Alejandro Vilarello (City Attorney): Yes, this item has been advertised as a public hearing. Commissioner Teele: All right. Are there any persons that would like to be heard on this matter? All right. Would you all line up, please, very quickly? Come right ahead. I tell you, let's limit this to a section at a time, rather than moving back and forth. So, what was the hot item that we discussed last time, that we were going to talk about extending? Was that the Housing? Ms. Gwendolyn Warren (Director, Community Development): At your last meeting, which you requested staff do, is to provide you a list of those agencies that you have funded to date in the 25th Year. We've done that and run the ad. So, first, you'll see listed your Economic Development Agencies that you funded for the year; the Housing agencies that you previously funded; all of the Social Service agencies. You additionally asked that we provide you information on the balances available under our RFP (Request for Proposal) pool, that we set aside the hundred and seventy-five thousand dollars ($175,000) for the Commission set aside, and that we prepare legislation to extend the current Housing agencies through March. Those agencies are 29 November 30, 1999 listed at the end of the page. Commissioner Teele: All right. This public — is this noticed as a public hearing? Mr. Vilarello: Yes, sir. Ms. Warren: Yes, it is. Commissioner Teele: All right. I'm not going to take advantage of the chair to discuss what this is and is not, but just please note that we should discuss what the Commission requested. Ms. Warren: Housing extensions. Commissioner Teele: ...as what's not here. Commissioner Teele: This public hearing portion is limited to the Housing, and the proposal that is outlined by Ms. Warren and the Commission, I think, instruction to extend this for a hundred and twenty days or what? Ms. Warren: Yes, sir. Commissioner Teele: Through March the what? Ms. Warren: Thirtieth. Commissioner Teele: Through March the 30th. Those persons that are in opposition to this action should come forth now. Anyone in opposition to this and, then, we'll hear from those in support of it. All right. Yes, sir. Mr. Jose Fabregas: Good morning, Commissioners. My name is Jose Fabregas, Executive Director of CODEC, Inc. The problem that arises with the recommendation in my particular case is the following. Last year I brought to the City fourteen million dollars ($14,000,000) in Federal grants to do two projects, Section 202's, just like the one we finished, a 14 story in the Flagler bridge and the river. That building — we're going to do two of those buildings. We only get fifty thousand dollars ($50,000) from the City of Miami and CDBG. Dade County has cut our funding in half. At this point and time, we're into permitting and closing with US HUD (Department of Housing and Urban Development) for those loans. With fifty thousand dollars ($50,000), I cannot really administer those fourteen million and construction. I really need your assistance into getting additional funding for CDBG, for administration. We also have a Home Ownership Program, Melrose town homes, and we will get — we're using the present funding to administer that, and to come -- that's also into the permitting stage. So, we're talking construction of two hundred and forty-six units and I only have fifty thousand dollars ($50,000) to administer all that from the City. They're all in the City. The County, they've cut my funding in half. As it is right now, three of my employees -- and we're only five -- are in half-time salaries. So, I'm really in a bind and I ask for your assistance to come to fruition. We're due to close with US HUD by December 18th. Thank you very much. Commissioner Teele: All right. What is your request? I haven't heard a request yet. Mr. Fabregas: The request is a hundred and fif... Commissioner Teele: Right now you're request — right now the recommendation of staff is eight thousand three hundred and thirty-four dollars ($8,334), is that correct? 30 November 30, 1999 Ms. Warren: Yes. The Commission... Commissioner Teele: That's the prorate portion of the fifty thousand? Ms. Warren: Yes, sir. Yes, sir. Commissioner Teele: And you're requesting that amount -- you're requesting what amount? Mr. Fabregas: We requested for a year and that's what the... Commissioner Teele: No, no, no. We're talking now — this is limited to March 31 st. Mr. Fabregas: To March 31st. If staff would help me on this. I did not know we were limiting this to March. Commissioner Teele: Yes, sir. Mr. Fabregas: I thought it was a whole year, like it said in the RFP. But we're... Commissioner Teele: No, no, no, no. Mr. Fabregas: ...talking hundred and fifty... Commissioner Teele: No, no, no. The RFP is not on the table now. Mr. Fabregas: Yes, sir. I understand. Commissioner Teele: Did you make an RFP request? Mr. Fabregas: Yes, sir. Commissioner Teele: So, that request is moving on a separate track. Mr. Fabregas: OK. Commissioner Teele: This is simply a request to extend those Housing organizations for 120 days, until the RFP process could be done. Mr. Fabregas: Then, my request would be fifty thousand dollars ($50,000) for 120 days, sir. Commissioner Teele: All right. Thank you very much. Mr. Fabregas: Thank you, sir. Commissioner Regalado: You said -- wait a minute. You said how much? Mr. Fabregas: Fifty thousand dollars ($50,000). Commissioner Regalado: Fifty? 31 November 30, 1999 Mr. Fabregas: , That would be one third. Yes, sir. Commissioner Sanchez: Fifty thousand. Mr. Fabregas: Fifty. Five -zero. Thank you, sir Commissioner Teele: Go right ahead. Yes, sir. Commissioner Winton: Hundred and twenty days? Mr. Fabregas: Yes, sir. Commissioner Winton: Fifty thousand for 120 days is what you're asking for? Mr. Fabregas: Yes, sir. Commissioner Winton: OK. Mr. Fabregas: That would be it. Thank you, sir. Mr. Luis Rosa: Thank you, Commissioners. My name is Luis Rosa. I'm the Chairman of the Rafael Hernandez Housing Economic Development Corporation, which sits in the . Commission district of Commissioner Winton and, of course, Commissioner Teele. And we're asking that you extend the, same consideration to us to --for the next 60 --until March 31 st, for fifty thousand, as well. There's no secret that we've had our problems in the past, but I can assure you now that we're up-to-date on all our records, all documentation are in place. We have a new structure, a new director, executive director, who's doing an outstanding job in that community. There is a dynamic need in that community to continue our efforts. We have cleaned two lots. They're ready for developing, for construction of Housing. We're working with two different — two separate lending institutions. And much like the City of Miami, who's had its problem in the past, we've also experienced our share of problems, but I can assure you that we are a newly — established, newly structure. All our documentation is current. And I'm asking the Commission to, please, consider continuation funding for this Housing component. We're on the verge of doing — completing two houses, as I mentioned before, and we need your help, your leadership, Teele, and, of course, Winton, which happens to situate itself in the Wynwood district and, of course, with all the Commissioners' support. Willie Gort has known some of the work that we've done in the past and I have done in the past with my work with the Puerto Rico Chamber of Commerce, promoting trade between Miami -Dade and Puerto Rico. Commissioner Teele: All right. Commissioner Regalado: Commissioner? Vice Chairman Gort: OK, I'm back. Mr. Rosa: We have another... Vice Chairman Gort: Commissioner Regalado. Thank you. Commissioner Teele: All right. Commissioner Gort, what I've done is limited the public hearing to the Housing... Vice Chairman Gort: Right. 32 November 30, 1999 Commissioner Teele: ...portion, extending this to March 31 st. Vice Chairman Gort: Thank you. Commissioner Regalado: Mr. Chairman, why is it that most of the Housing agencies have the same amount, eight thousand three hundred and thirty-four dollars ($8,334) for this 120 days? Commissioner Teele: That's the prorate of fifty thousand. Commissioner Regalado: I know. But if we are talking of working with these agencies -- is the prorate... Mr. Rosa: Commissioner... Commissioner Regalado: ... exactly what they got... Mr. Rosa: ... that's for two months. Commissioner Regalado: ...last year? Ms. Warren: No, sir. Yes, sir. What they received — you've already funded them for the first two months through November 30th. Commissioner Regalado: I know that. Ms. Warren: And you're asking to do it — and it is a pro ratio of exactly what they received last year. Commissioner Regalado: Have you reduced anything? Mr. Rosa: No. I think that's only... Ms. Warren: We have not reduced.anything. There are three agencies that are not being recommended. Commissioner Regalado: Which are? Ms. Warren: OK. Based on performance. They're in your letter. Coconut Grove LDC (Local Development Corporation), Edgewater Economic Development Corporation, Rafael Hernandez Housing and Economic Development Corporation. And they're not recommended based on performance. Commissioner Winton: Would you repeat those three again, please? I'm sorry. Ms. Warren: Coconut Grove, LDC. I mean, Local Development Corporation, Edgewater Economic Development Corporation and Rafael Hernandez Housing and Economic Development Corporation. Your instructions were to bring back those agencies for an extension based on performance. These three agencies' performance was significantly under performed several years in a row and staff is not recommending. Commissioner Regalado: And, yet, you have them here for eight thousand three hundred and thirty-four, so they can work through... Ms. Warren: The original eight thousand dollars ($8,000). The Commission took action last summer to extend them for two months through November 30th. That is the money that -they've already received. 33 November 30, 1999 Today you're taking action to extend them through March, so there's an additional sixteen thousand, in some cases, in rec... Commissioner Regalado: Wait, wait, wait. Ms. Warren: It's on the second -- on your Item C, on the second half -- back of the page. Let me... Commissioner Regalado: Wait, wait. This eight thousand is something that... Vice Chairman Gort: They have received already. Ms. Warren: This is your letter. That's what you funded them previously. Vice Chairman Gort: You have to speak into the mike, please. Ms. Warren: This is the letter. Commissioner Regalado: Where is the letter? Ms. Warren: That's your letter right there. That's the item that you're actually looking at. That's your... Commissioner Regalado: So, what you're saying is, you don't -- you're not funding Rafael Hernandez, nor Edgewater? Ms. Warren: Correct. What the Commission asked is that we provide you a list of every agency you have funded and the amount to date. Additionally, what you asked is for Housing agencies, that we provide you information on what the amount would be to extend them through March. So, on your ad, what you have is what they received through November 30th. Your Item C is what the recommended level would be through March 30th and there's three agencies that's noted on that that are not recommended. Commissioner Regalado: So, where's the money from those three agencies? Ms. Warren: The money from those three agencies, since they were not recommended by staff, you wanted to know how much money was left in your RFP pool. So, the money that it would have taken to extend these agencies through March was deducted from your balance of your Housing monies that were put out to bid. So, what you've basically said is that — originally, you said put the Housing program out to bid. Now, the recommendation is to fund the Housing Administration out of that pool through March. And if you go to the list that we gave you, the first one that you were looking at, it was reduced from the available Housing monies. Commissioner Regalado: So, what you're saying is that we, today, you're not giving us money to extend or increase the funding? So, what you're saying is that we have to go with this list? Is that what you're saying? Commissioner Teele: No. Vice Chairman Gort: No. Commissioner Regalado: No? Ms. Warren: No, sir. We're following your instructions. What you... 34 November 30, 1999 Commissioner Regalado: No, no, no, no. But I'm saying -- you just said that the money of those three agencies that are not recommended were forwarded to the RFP process? Ms. Warren: They remain in the RFP pool. Commissioner Regalado: So, we can take it? Ms. Warren: If you choose to,... Commissioner Regalado: OK Ms. Warren: ...you can fund them anyway... Commissioner Regalado: That's all I want to know. Ms. Warren: ...and, then, we will reduce the RFP pool by the amount that you fund them by. Commissioner Winton: Mr. Chairman? Ms. Warren: But your instruction was not to bring back those agencies who had not performed, so we didn't. Vice Chairman Gort: Mr. Winton. Unidentified Speaker: Excuse me, Chair? Vice Chairman Gort: Excuse me. Commissioners first. Commissioner Winton: In looking at the three agencies that are not recommended for funding, all three of those agencies are partially or completely within District 2. And at the last Commission meeting, I went on record stating that, as a — as the representative for District 2, I'm hugely in favor of performance -based funding, and I am very much in favor of cutting funding off to agencies that don't perform. And that's how I feel about this whole issue. However — and I hate to say the "however" part because I don't want to seem contradictory here, but there is still a great need for Housing within District 2. And I guess the question, then, is, how do we deliver the development of Housing within the district if we've cut -- and I'll use Coconut Grove as a classic example. It is -- at least, as far as I understand, so far it's the only agency that's really focused on all kinds of things in the West Grove area. So, I guess what I -- and my apologies to my colleagues up here for kind of stumbling and bumbling along here. But I'm concerned about the dollars and I want to make sure that, at the end of the day, we figure out one — maybe one of two processes and, that is, figuring out an alternate agency for delivering the service within those areas or, as a secondary approach, that I would lean on the City staff significantly to help with and, that is, whether or not there's any room for any kind of reprieve for any of those organizations, if there aren't alternatives at the moment? With the commitment on my part that, as their representative but as the new guy on the block, that I will absolutely go to bat next year to see to it that, if there isn't accomplishment of strict goals and objectives that they flat do not get funding next year. But this year my handicap is that I'm brand new here and I don't know what the alternatives are and I can't offer alternatives, so I hate to see my community penalized because the agencies are doing a lousy job. So, I would like to hold their feet to the fire. Vice Chairman Gort: Commissioner, let me give you a suggestion. Staff can recommend but my suggestion is, each one of us go visit the different — and all of them, not just within the districts, all of the programs. We have to make the decision here based on all the programs. My understanding is, and correct me, staff, 35 November 30, 1999 because this is what I'm ready to vote on today, and you correct me if I'm wrong. My understanding is, funding will continue until March 16t', for all the agencies. All the agencies will have the right to go ahead and submit their RFP. My understanding is, it will be very difficult for any other agency that can come up with an RFP. So, you probably will have an opportunity to vote on these same agencies to continue. Commissioner Regalado: No, not all the agencies. Three have not been funded. Commissioner Winton: Is that correct? Vice Chairman Gort: No. My understanding, they're all going to be funded.until March 16th. Commissioner Teele: No. Commissioner Regalado: No; no. Ms. Warren: No, sir. Commissioner Teele: No. Commissioner Winton: The three are getting zero money. Ms. Warren: Again, just to... Commissioner Teele: No. Mr. Chairman, we're in a -- sort of public hearing and I think we ought to discuss this once we finish, but I'm very, very supportive of what Commissioner Winton is saying. It's inherently unfair for an elected official to be responsible for a district. And a lot of what hasn't happened, Commissioner Winton, is that we've never had districts before. This is a very new process. And what you're suggesting is fair and, at the end of the public hearing, I would be pleased to second any motion that would extend these three organizations for one year, provided that there's some restructuring of the boards and the -- et cetera, but they not be allowed to submit ,for additional programmatic funding, that is, they would be penalized in not being considered for funding under RFP's until they get their administration together. One of the biggest problems is that these organizations are all very, very enthusiastic about doing projects but they don't necessarily get the basics down and, until you get the basics, it's just funding throwing good money behind bad. So, at the right time, I would be pleased to second a motion to extend the three, subject to a restructuring that would be satisfactory to the Manager and in consultation with the Commissioner of the districts. Vice Chairman Gort: Gwendolyn. Ms. Warren: Yes. Again, staff absolutely agrees. As a part of the RFP process, itself, both in Economic Development, Housing and Social Programs, there are agencies that have some administrative deficiencies. It was going to be our recommendation that, instead of providing them funding for programming, that we provide them money for technical assistance so -- for restructuring for a set period of time, until they can get on balance. The organization has shown a tremendous will to reorganize but, again, for over the last five years, they have not been structured properly to be able to build houses. And I think technical assistance is the answer. Vice Chairman Gort: Thank you. Yes. Commissioner Winton: And maybe one last comment in that regard. And this is directed primarily towards your organization. As I understand it, you all have received about three hundred thousand dollars 36 November 30, 1999 ($300,000) in City funding over the last three to five years and built one house., Frankly, that is absolutely unacceptable. It flat doesn't work. It's a huge waste of our taxpayers' resources and I can't deal with that, frankly. And, so, even though there's recommendation to keep you all funding, I think, as it relates to your specific agency — and if you don't mind, my fellow Commissioners, I would like to take a special look at that one agency and figure out what kind of alternatives we have. Because I'm not sure that I want to make a commitment to provide a full year's worth of funding to that agency, until I understand what's going on there. Mr. Rosa: Commissioner, let me assure you that that was the problem in the previous administration. I'm the new chairman of the board and, since then, we've asked the previous executive director to resign. We have restructured our board. we have Father Menendez as part of our advisory board. We brought on two -- we've been in consultation with two lending institutions. We held last week a Homeowner's Association public conference to talk about the benefits of buying affordable homes. And we're taking this very serious. We've streamlined. We're looking at the bottom line. There is no — there is a check and balance now. And we started this process — if I may, Commissioner? We started this process six months ago and all our records, as of date, are current with the City — as requested by the City monitors. All our documentations are current. We've complied with all the information since I've taken over. And since we brought on a new director -- and we haven't — and they haven't gotten paid since September. So, it's also a Catch-22 from their perspective, as well. Commissioner Winton: I understand. Mr. Rosa: But we are structured. We are new. We are dedicated. And we are very serious. And we're looking forward to working with this administration, which we have, working with Barbara Rodriguez and, of course, the director from the CDC (Community Development Corporation). So, there's a new structure in place already and we welcome your help. We welcome your participation. We ask that you please come down. That has been our problem from the beginning. We've had to talk to Commissioners, you know, on a one-to-one basis. But we ask that you come and see some of the work and see how the structure is in place. Commissioner Winton: Rest assured, I will. Mr. Rosa: And we welcome that. Vice Chairman Gort: Thank you. Next. Ms. Dorothy Quintana: My name is Dorothy Quintana. Until now, I'm the Chairperson of Wynwood. I don't know tomorrow. I'm very disappointed. We have — right now we have a new board and a new director and I think we are going -- we're going -- in the right direction. But we're very — I don't know what happened. Wynwood will not get money for -- it's three — why is the -- I heard right now from the lunch room for the Senior Center. This is going to be out. Miami Capital is going to be. What is going on in the City with the people that really care? Now, we have a new Commissioner and I hope that we get help from him. We'd like for him to visit this sites in Wynwood and see the needs. They really need it. We're not playing games. We're not stealing any money from anybody. We're doing the right work and we really help people. Now, all the Commissioners here, they know me and they .know that I never talk on this microphone because I don't have to because their people talk for themselves, but right now I'm very angry because I see things that's happening to the right people and the people that do good for the people that needs it. I would like to an answer to that. And I would like our new Commissioner to visit Wynwood's visitor site. Visit the lunchroom. Sorry. Visit the lunch room. Visit every place that we need and you're going to find out that we're working right. We're not stealing money from anybody. Rafael Hernandez is — we're going to do very good because we have a new board, a new director. And we're trying hard to help people. And we need the houses in Wynwood. There's a lot of people that are paying seven thousand, eight 37 November 30, 1999 thousand for apartments that isn't worth it, and they're going to work for poor people. So, please help us. Thank you. Vice Chairman Gort: Thank you. Next. Thank you. Commissioner Winton: Mr. Chairman? Vice Chairman Gort: Yes. Commissioner Winton: May I respond to a couple of things there? Vice Chairman Gort: Sure. Commissioner Winton: One is -- ma'am, the — and I understand the point. I've actually been in the De Hostos Center, I'll bet, half a dozen times in the last month and a half, two months. So, I think I am familiar with the Center and the good work that it does. But with all due respect -- and you talk about being mad. I think what you really ought to be mad is at the fact that we wasted three hundred thousand dollars ($300,000) over five years of hard earned money that could have gone into Housing. So, there's some sort of problem there. And it's that kind of mad that we're going to have to start getting throughout this City on a consistent basis. We've got to be mad where the real problems are. I do have a commitment. It is in my district. It's in Commissioner Teele's district. So, I think, both of us are hugely committed to those areas. And if you heard my campaign presentations when I was out campaigning, you understand . that neighborhood redevelopment was my — is my number one platform. Two, on the part of De Hostos Center, I did get notification just yesterday, at the end of the day, that Catholic Charities had cut off their funding for the De Hostos Center Feeding Program, and that cut off represented some thirty — I forget the exact number. Thirty-five thousand dollars ($35,000) or thirty-three thousand dollars ($33,000). Thirty-three thousand three hundred and twenty-four dollars ($33,324), which in -- and the City provides five thousand dollars ($5,000) of funding. So, in essence, what happens -- and I have been in that senior citizen feeding center and it's very effective. It's very popular. It does a heck of a job providing service to those needy families, and they've been cut off by Catholic Charities. And now, then, the whole burden is being dumped in the lap of this City, and I would hope that my — again, as a newcomer and my apologies, I hope that my colleagues will help me figure out what we can do to provide some sort of support, so that we don't lose that feeding program. Vice Chairman Gort: Thank you. Yes, sir. Next. Commissioner Teele: Fire fee. We shouldn't have exempted all of those people in the fire fee. That's the problem. Vice Chairman Gort: That's the problem. Ms. Veola Williams: My name is Veola B. Williams and I came here simply to complain — much of this meeting has been over my head, but I simply must complain about the services that were rendered me by the Community Development Block Grant Program. My complaint is, since 1989 -- and I got a loan for thirty thousand dollars ($30,000), which was used mostly for covertly destroying my home, rather than refurbishing it and conserving it. And gentleman and ladies, I am not able to take such a loss. I think the City of Miami is totally responsible for the destruction of my home, as it now stands. Since 1990 I signed a contract and the people who administered, who executed that contract and administered the refurbishing of my home paid for my home to be destroyed rather than refurbished. Vice Chairman Gort: Thank you, ma'am. Mr. Manager... 38 November 30, 1999 Ms., Williams: I think something should be done about that. Vice Chairman Gort: Mr. Manager, all that took place before any of us was here. So, Mr. Manager, can you look into this case and give us a -report on this one, please? r Mr. Warshaw: Yes. Vice Chairman Gort: This is one of those cases where you have a lot of loans that are being back long time. Commissioner Teele: We asked, repeatedly... Vice Chairman Gort: Yes, sir. I'm sorry. Commissioner Teele: Mr. Chairman... Vice Chairman Gort: Yes. Commissioner .Teele: ...we asked — at the last meeting, there were people making these similar allegations. We asked that all of these homes be published, the ones that are in process. There just seem to be a lot of these rehabilitated homes that somebody has come in and nobody's finished them. And, you know, we need . to fmd out where this program is, and we don't need a cover-up. We need everybody to come clean.on this. Ms. Williams: Please. Commissioner Teele: We asked, specifically, at the last meeting -- someone was here. I don't know who that person was — that we get a list of all of the projects that are — these loans that are in process, and there was questions that they never received an answer. And we can deal with it at a later -- later on after this public hearing closes. Vice Chairman Gort: Yes, ma'am. Ms. Anne Manning: Thank you. My name is Anne Manning. I'm the Executive Director of Habitat for Humanity of Greater Miami. Reside at 2641 Southwest 30th Court, in the City. We were not at the last meeting. Vice Chairman Gort: Put your mike up, please, ma'am. Ms. Manning: Sorry. We were not at the last meeting and our question about this piecemeal funding, which is a third series of two or three or four months kind of tacked together, is we were requested to put together an RF -- a proposal to the City, which would include Housing administration, land acquisition, Bricks and Mortar, and it was one package. This one piece is being pull out — our administration money being extended. My fear is that — is someone's concerned that the entire RFP process or the funding is going to be slowed down and we have land acquisition that we want to see happen very quickly before the .end of the year. If the Housing administration allocation is an indicator that other funding is going to be that long, we would like to know about it. Know what the thinking was. Vice Chairman Gort: Yes, ma'am. That will be answered later on. Thank you. One of the things that we requested, as I recall, Commissioners, is the RFP could be good for some neighborhoods, where the performance is not being taken place. But one of the suggestions was, if we have organizations that are performing, that are doing the work, they should be — and this is for us to consider — they should go ahead 39, November 30, 1999 and be financed for the whole year. Because partial financing is really hurting people. Yes, sir. Mr. Juan Jane: Good morning, Commissioners. I'm Juan Jane, Executive Director of Edgewater Economic Development. I'm here on behalf of the Board of Economic Development, Edgewater, to request your approval for the grant to continue the building of two single family homes that we have finally got together to start for this year. We have been funded for this with the City of Miami for the last three years. Some of the funds we used to purchase the lots. Others that City of Miami kept, we didn't use. We have never done any -- inappropriately. As it was mentioned before through the board, we always have been very organized. We have always been very cooperative with the City of Miami. We have passed, successfully, all the monitoring of the City of Miami, including the last one, dated September 24, 1999. Let me bring a couple of issues to you. On behalf of the. board and on behalf of myself, we were monitored on September 8`h, by City of Miami. The findings were given to us September 16th. Our response was issued on September 24th. Acceptance of our response was issued by the director of the Economic Department on October 7th. We have never received any information that we were not in compliance with the contract. We purchased two lots.. We built — we worked with David Cabaroca, the architect for 60 months, getting the plans to be approved. through the City of Miami Zoning Department. Now, we are in the final process of starting the building and now they cut the funds to us. I am willing to meet with any of the Commissioners, including Mr. Winton, in reference to our organization. I'm willing -- and we are open to anyone, as the way that we have been opened to the City of Miami and the Department. We are here to request that you grant us the opportunity to finish building these two houses, low/moderate income houses. Commissioner Winton: How much money have you received since -- from HOME funds? Mr. Jane: Last year we received for HOME... Commissioner Winton: No, total. Mr. Jane: I don't have the figure here with me, sir. Commissioner Winton: Do you have that number? Mr. Warshaw: It's about two hundred and fifty thousand. Commissioner Winton: So, you've received two hundred -and fifty thousand. How many homes have you built so far? Mr. Jane: None, sir. Commissioner Winton: None? Mr. Jane: Wait. No, no, no, no. That's not the question because it's -- if you put... Commissioner Winton: That is the question. Mr. Jane: Well, if it's... Commissioner Winton: I'm sorry. Mr. Jane: I'm sorry. You're right in the way you're asking the question. The question is not the way that it -- it takes time to buy the lots, to proceed with the City of Miami, their approval to purchase the lots, and we did so, OK, with that money. It wasn't used only for the -- and has been used to pay the City of Miami for 40 November 30, 1999 the planning, the zoning, and every department of the City of Miami. Commissioner Winton: I'm very -- excuse me. I'm very familiar -with what it cost to do this kind of stuff. And I will tell you the same thing I told the folks from Wynwood. That track record is inexcusable, period. And we cannot continue to run this City where agencies are getting that kind of taxpayers' money and not producing results. So, I have already made a request that we figure out what to do with this ongoing funding because we have work to do. I've also made the request that we look at setting up special provisions for the existing entities that have been doing the work. So, you have all heard that. But I can tell you without question, and I can tell all of you without question that, from my perspective and your representative, if we don't produce results, there's going to be no funding in the future. So, I'm going go to work with you guys on figuring out what we do to move forward for this next three months and little beyond, but results are the bottom line and if there's no results, you ain't getting funding. Mr. Jane: Mr. Winton, in reference to the amount of money given to us by Housing, I disagree totally with that amount that the City or the department has stated today here. I'm... Commissioner Winton: Then, you provide the number to the City... Mr. Jane: I will. Commissioner Winton: ... and I'll get the number from them... Mr. Jane: I will. Commissioner Winton: ...and I'll check them out. Mr. Jane: I will, sir. Vice Chairman Gort: Thank you. Mr. Jane: Thank you. Vice Chairman Gort: Yes, sir. Mr. Calvin Babcock: My name is Calvin Babcock. I reside at 10105 Southwest 94th Court. I'm here as a volunteer for Habitat for Humanity. Habitat for Humanity is a nation model that works very well throughout the United States and the world for providing homes for low income families, not low/moderate, not moderate/low, but low income families that are willing to work on their home in partnership with Habitat. There are fifteen hundred affiliates, nationwide. Greater Miami Habitat is in the top 10. We started in 1989. We have built over three hundred homes in the past 10 years. On Saturday we'll dedicate ten homes in Little Haiti. Habitat works. There's no discussions about our board of directors. There's no discussions about improper funding. Homes that aren't built well. We built quality homes that outlasted Hurricane Andrew. They will outlast the next killer storm that comes through. And we would ask for you to favorably accept our application for funding. Thank you. Vice Chairman Gort: Thank you. Yes, ma'am. Ms. Yvonne McDonald: Good morning. My name is Yvonne McDonald. I'm the Director of the Coconut Grove, Local Development Corporation. And on behalf of the board of directors of the LDC, I'd like to, first of all, thank Commissioner Winton for his recommendation this morning to allow these agencies to continue, at least, for one year, to provide a performance -based objectives to continue with their Housing 41 November 30, 1999 funding. The Coconut Grove Local Development Corporation is one of those agencies that has not been recommended for funding. However, I'd like to say that I know that this last year, the LDC is going through a considerable amount of reorganization. I welcome the support of the staff from the City of Miami to come and to assist us in technical assistance. We have, however, in the past years, produced Housing in Coconut Grove with a private developer, and our agencies has not directly provided — was not provided funding to provide for Housing but we have been provided money for administration. And, so, with those dollars that we have received, we have worked in conjunction with the private developer, who is providing Housing in the City of Miami, in Coconut Grove. Thus far, he has built 10 homes and our agency has worked, in conjunction with him, to qualify families for those homes and to assist with the building of those homes in ways to make sure that we did continue providing Housing in Coconut Grove. We want to be able to develop a plan over the next several years that will afford us the opportunity to continue putting home ownership at the top of our list for our community. If you know Coconut Grove, we have a population of about forty-two hundred people in the target community of the West Grove, a 10 block radius. We have, approximately, less than maybe 24 vacant lots in our community that are currently — maybe owned by the city of private homeowners — private individuals. We're looking to work with those entities to build single family Housing, in addition to working with rehabilitating — rehabbing homes in the Coconut Grove community. That is our goal and we want to continue to do that. We need your support and we thank you, you know, for permitting the continuation of the funding, at least, for an one additional year. Vice Chairman Gort: Thank you, ma'am. Next. Commissioner Teele: Mr. Chairman, may I ask her a question? Vice Chairman Gort: Yes, sir. Commissioner Teele: What is your focus? What is the Community Development — is your focus Economic Development or is it Housing? Ms. McDonald: Our focus has been Economic Development and Housing. We received dollars for Economic Development and Housing. Over the past 10 years or more, we received both funding sources. Commissioner Winton: And Social Service, right? Ms. McDonald: And -- well, Social Services is directly through the Department of Children and Families. We have a subsidiary agency, the Coconut Grove Local Development Corporation, which has been in business for six years. Commissioner Teele: Mr. Chairman, one of the things that I -- Ms. Warren and I have had this discussion. I've made it very public, even in a previous life. I think it's almost impossible for a CDC to be proficient in Housing and Economic Development. There is — those are worlds apart. Economic Development is really a term that I hate anyway. It really should be Business Development because only the private sector can really do Economic Development. With our dollars we're doing, you know, business development. But I just wish that, in the grant -making process, we would de-incentivize agencies from being — trying to be proficient and receiving administrative funding in both. I think we work against ourselves. We need to provide more dollars to develop higher degrees of proficiency and -- in some area. And Housing, especially home ownership, based upon this humongous commitment that the City has made of one thousand home ownership units a year, is really going to be very important that we provide a subsidy. And I wish — and I don't -- Ms. Warren, I don't know how you feel about this. I'm not relating this to you directly because there are... Ms. Warren: You're right. 42 November 30, 1999 Commissioner Teele: Ma'am? Ms. Warren: I absolutely agree with you. Commissioner Teele: But I really wish we could develop our RFP process to de-incentivize, even to take points away from CDCs that apply in both areas or to force them to say what it is they want to do, because we all want to help the CDCs. But what we don't want to do is encourage everybody to just apply for money because there's dollars. What we need is expertise and proficiency, and that certainly doesn't relate to your organization, ma'am, but I think it relates to all. Because I thought you all were in Economic Development and I guess I'm... Ms. McDonald: We're both. We built over 35 houses in Coconut Grove over the last five years in -- well, in Dade County. Vice Chairman Gort: Commissioner Teele, I really think you should be looking at the past performance. I think it's very important. Because some agencies have been very successful in doing both, and it's a combination of the two. Because Economic Development, for example, in my neighborhood, is working directly with the business people, helping the business people get the license and improve their businesses. Thank you, ma'am. Next. Commissioner Teele: Commissioner Gort, on that point. I don't disagree with you. What I'm saying is, is that when we provide administrative funding in the area of Economic Development, that is, just to keep the doors open for proficiency, and administrative funding in Housing, I -- given the need that some of these organizations have, I question whether or not we should stack and we should not force agencies to determine — now, that doesn't mean they can't do Economic Development projects or Business Development projects or an Economic can't do a Housing project. But I don't think we can afford to fund the base costs of developing proficiencies in two and three areas, except in unusual circumstances, and there may be one or two organizations that are unique and that have that but... Vice Chairman Gort: For those of you who are here, we're going to break at 12 o'clock and we'll come back at 1:30. Yes, ma'am. Ms. Lissette Rodriguez: Yes. My name is Lissette Rodriguez. I represent Florida Housing Cooperative, Inc. And I just had a question. The pro ratio that appeared in the newspaper for us was eight thousand three hundred thirty-four dollars ($8,334) and that's the same pro ratio that we had for two month extension. And what we see for 120 days that we need is sixteen thousand six hundred and sixty-eight dollars ($16,668). Commissioner Teele: That's the amount that you're being recommended for. Ms. Rodriguez: Oh, but — I'm sorry. But on the newspaper, on the 20th, it said eight thousand three hundred and thirty-four. Vice Chairman Gort: That's what you had received up to now, is my understanding. You want to explain it to her, Gwendolyn? Ms. Warren: Again, the Commission asked us to publish what agencies had received and also be prepared to extend Housing agencies through March and to publish both lists. You previously received the eight thousand. The Commission is recommending that you receive an additional four months of the 16. Ms. Rodriguez: OK.- I'm sorry. I only saw in the newspaper one list. I apologize 43 November 30, 1999 Commissioner Teele: Did you publish the sixteen thousand? Ms. Warren: Yes, sir. Ms. Rodriguez: I apologize, then. Vice Chairman Gort: Thank you. Next. Ms. Maria Elena Fernandez: Hi. I'm Maria Elena Fernandez. Sunshine Investment, Sun Builders. I'm here on behalf of Mrs. Goodman. The first time that I went to Mrs. Goodman's house was back in 1996. Her house, at that time, was in very bad condition. She had roof leaks all over the place. Since then, 1 never went back again until last week, that she requested for me to go back. It's 1999. Her house is ready to ,be demolished, not repaired anymore but demolished. Now, the last thing that we find out that the legal description in her house is correct but the house on the corner has the same legal description as hers. So, they're holding her responsible for this problem with the legal description. Meantime, this lady sleeps in a couch, in the living room, because she has no other section in her house that she can live. She has no bathroom. She has no kitchen. She has no walls, you know. Something really got to be done. It's not the first time I come here. As a matter of fact, last time I was here... Vice Chairman Gort: Did you get your check? Ms. Fernandez: Yeah, I got my check after they calledthe cops on me. Because 1 went... Commissioner Teele: Who called the cops? Ms. Fernandez: I went to demand the money that they had promised me, and they said that I claim that I was going to grab someone by the neck. And my remarks were this: "I'm going to stop the work so you could have the owner breathe down your neck so you can pay me." Meantime, when I went to claim my check, Mr. Hernandez or Fernandez had Miami City Police there and he ordered me out of the building. Well, that is a public building and I was -- I had carried no guns. I have no guns in my name. I don't intend to kill anybody. But I do intend to get paid for every penny that's owed to me. Meantime, he filed a police report, which I don't care. I have no records, whatsoever. But I'm here in the behalf of her and all my clients. I got another man because he owe sixty-three dollars ($63) in taxes. Commissioner Teele: Was a police report written on you, ma'am? Ms. Fernandez: Excuse me? Commissioner Teele: Was a police report written on you? Ms. Fernandez: Yes, sir. Commissioner Teele: Would you make a copy of that report available? Ms. Fernandez: I was never able to get the police case number or the police report. I have been to the police station three times and, you know, they say that they can't find my report. You know, this got to be stopped. Because they friendly. They're not friendly over there at Community Development. Matter of fact, the letter that you asked me to present to her so she will give me answers for my questions, I still have not gotten any response on that letter. I haven't got guidelines of the new program. This is a joke. It is a joke. 44 November 30, 1999 Vice Chairman Gort: OK. Let the Manager -- Mr. Manager. Mr. Warshaw: Ma'am, with all due respect, that not only is the building open, accessible and very customer friendly, but this individual made a threat regarding a gun and that's the reason the police were called. You can't come into a public building, whether you're upset, no matter what the circumstances are, and at any time make a threat against a public employee or public official, anywhere in this Country, and if you do that, ma'am, you'll be arrested and you'll be removed, just as you were last time. Ms. Fernandez: Sir? Mr. Warshaw: I want to be very clear about that. Ms. Fernandez: I was... Mr. Warshaw: You cannot even make a joke on an airplane about a gun. You can't make a joke in a public building about a gun. Ms. Fernandez: I don't know what... Mr. Warshaw: Now, I'm very familiar with what happened at the front desk. Ms. Fernandez: I don't know what your employee told you, but my remarks to him was that the homeowner was going to be breathing down his neck, unless I went back to work at that house. I don't own a gun. I have never owned a gun because I do not believe in guns. Commissioner Teele: Did you make a threat about a gun? Ms. Fernandez: No, sir. That's all lies, like all the lies that I get from Community Development. And not only me, everybody that works with Community Development always gets a lie and an excuse, and I'm pretty sure that all of these people that work with Community Development get their share of lies, too. Mr. Warshaw: Commissioner, I might also add that the loan that she's representing for the woman here has been approved. It's at the Contract Review Committee of the Oversight Board. I believe it's for forty thousand dollars ($40,000), and I'll ensure that it's expedited as quickly as I can, so we can get her paid. Vice Chairman Gort: I need to ask you a question now. Because a lot of those loans have been there for a long, long time and now, how long it's going -- does it take for the Oversight Board to approve those loans? Mr. Warshaw: There's a pretty quick turnaround time. You know, there's a lot of documentation we send over on a daily, courier basis by hand everyday. I sign those contracts the minute I receive them. They never are in my office longer than a day. They have to all be signed by me... Vice Chairman Gort: Let me come to the... Ms. Warren: ... and they're couriered back. Vice Chairman Gort: ...to the second question. My understanding, the Oversight Board is to oversee the expenditures and general funds within the City of Miami. This contract, which had federal funds, that go directly, we, I guess, are the administrator of those funds. Does this contract still, although it does not affect our general funds, has to through them? 45 November 30, 1999 Mr. Warshaw: Yes. They don't go to the Oversight Board. They go to the Contract Review Committee, which is overseen by Robert Beatty and, basically, they're turned around extremely quickly.. I mean, they don't hold them. And we're able to expedite them and get them signed some time within 24 or 48 hours. But I know that this woman's loan has been approved. I'm told it's for forty thousand dollars ($40,000) and, as soon as we break, I'll find out exactly where that is and see if we can't get her paid. Commissioner Teele: Mr. Chairman? Vice Chairman Gort: Yes. Commissioner Teele: Ma'am, how long have you had the application in for the home improvement? Vice Chairman Gort: Name and address, ma'am. Ms. Joyce Goodman: First, I started off with the appli... Commissioner Teele: Your name and address, for the record. Ms. Goodman: Oh, my name is Joyce Goodman and my address is 934 Northwest 46th Street. Commissioner Teele: Say that again. Nine what? Ms. Goodman: Nine thirty-four Northwest 46th Street. Commissioner Teele: Northeast. Ms. Goodman: Northwest 46th Street. Commissioner Teele: When did you apply for the loan? Ms. Goodman: I applied for the — first, I applied — they sent me the application and they wouldn't approve of it... Commissioner Teele: When did you send... Ms. Goodman: ...because I didn't have any insurance for the house Commissioner Teele: When was this? Ms. Goodman: That was in'76. Commissioner Teele: In 1976 or'96? Ms. Goodman: I mean '96. And I didn't have no insurance for the house, so they kept turning me down. And after a while, I kept going on and on and they decided to waive the insurance. And, then, after that, they start working on the case again. Commissioner Teele: When did they waive the insurance? Ms. Goodman About a year ago? Then, they come back about five months ago and told me they didn't C 46 November 30, 1999 waive it anymore. Commissioner Teele: So, do you have insurance on it now? Ms. Goodman: No, I don't have any insurance on it now because the insurance people say they couldn't give me insurance because it's in too bad a shape. Commissioner Teele: It's a Catch-22. You can't insure a house... Ms. Goodman: Then, you telling — you all telling me that I can't fix the house because I don't have any insurance. Commissioner Teele: Mr. Chairman, I'm going to tell you, know, this afternoon, I'm going to renew -- if we have to have a special Commission meeting in January, February, if we need to ask this the External Auditor, we need to have a public hearing on this program. This program... Vice Chairman Gort: Alone. Commissioner Teele: This program -- we need to have notice of every grant application that is in the process. It keeps coming back. It keeps coming back. I don't know what kind of notice you need, as a board of directors, that you've got a problem. And if we don't have a problem, then, there is no problem in having a public hearing and it will be a love feast. But, Mr. Chairman, at the appropriate time, we need to ask that the staff submit a list of all of the projects that are in process, the reason for the delays, if any. We need to publish that. We need to ask that anybody that has had any programs done by the City of Miami, that has compliments or comments or complaints, to come forward and have a public hearing. But we don't need to sweep stuff like this under the rug. Because these are all people — by nature of this program, these are all people who don't have the money to do it themselves and these are the people who nobody's going to support and advocate for, if the district Commissioners don't do it. So, you know... Vice Chairman Gort: Commissioner Teele, I agree with you. And I think we need to look into it. The feedback that I received from a lot of the applicants is, sometimes the paperwork and the procedure that delays it and sometimes I think they have to be selective of certain contracts, so they can go to it. Maybe we need to expand that and make sure those contracts that can — have enough bond coverage, so they can finish. Commissioner Teele: Mr. Chairman, with all due respect, what we need to do is designate one agency to be the technical assistance agency for the various homeowners. It's not fair to ask someone, who's not -- who's living under the conditions that have been described, to be responsible for putting that together. And there is a — there's room to appoint one agency, citywide. It can be Hispanic. It can be white. I can be Haitian. It doesn't matter. But some one agency ought to have the responsibility for being the advocate for the homeowner. I don't think the government should necessarily be the advocate. I think the government should necessarily ensure contract compliance and loan compliance. This is one of these things we're doing in-house, you see. And one of the problems, when you do things in-house, you can't be all things to all people. But the point that I just want to make is, I want to make sure that everybody out there -- I don't know this lady. She lives in my district. I'm embarrassed to say this. I apologize to you. But I've met with any number of people that have called me. I went to one lady's house. I looked at it. It was unbelievable. I went to another lady's house on the corner of 20th Street and 7th -- and 3rd Avenue. I read the document. I can tell you, I don't know if she — that document were a loan or a grant. I read it three times. And I can tell you, honestly, with a person who's been to law school, with a degree, with a Bar, that I read the document three times and I cannot tell you if that document constituted a loan or a grant, and I think we've got a problem here that we need to focus on. And I'm not blaming the administration. I'm blaming, at this point, 47 November 30, 1999 the Commission because we need to ensure that we're providing proper oversight. This is a program for people who are literally — this is a safety net program. This is a safety net program. And it's not fair to ask these people to be responsible for filling out all the documentation. We ought to get an agency that's a public advocate, that can do this and walk this paperwork through. Vice Chairman Gort: Thank you, ma'am. The Manager... Ms. Goodman: Excuse me. I have disability. I have asthma and when the ceiling is falling in the house, that's powder falling down, and I've been like that a whole year. And I go in and out of Jackson and everything. And I don't... Vice Chairman Gort: Ma'am, my understanding is, the City Manager will get together with you. It's been approved and he will tell, more or less... Mr. Warshaw: Commissioner? Ms. Goodman: Yeah, but they've been approved before. Mr. Warshaw: Just for the record, I think it's important you understand what we were able to do for this woman to get her qualified. If Gwen could just take 15 seconds to explain to you what we did. Ms. Warren: Commissioners, maybe you'll recall, at your September meeting, we sent back the.rules,_the revisions to the rehab -- the Single Family Rehab Program and your SHIP Program, and one of the expansions — we only had one program. We expanded to, I think, five. And one of the things that you were allowed to do,, under the new program that we submitted to you, is — under the old programs, you have to have insurance in order to do that. One of the amendments we were able to get the State to approve is that we could purchase her insurance, so we can rehab her house. This is a new program that you did implement this year. There were a lot of people, especially in some of the harder -to -serve communities, individuals on fixed income, who could not afford insurance or the houses were not insurable at a cost they could afford. The Commission now has a policy, that the administration brought to you, . that does allow us to buy insurance, so we can do the rehab. And I can't apologize for years ago. Vice Chairman Gort: Gwen, but let me tell you what the problem, I think, that happens. We're very knowledgeable up here. But down here that knowledge somehow is not passed on. Ms. Warren: Absolutely. Vice Chairman Gort: That lady's is under the impression that she doesn't have any insurance and now you're saying that because of the City.... Ms. Warren: Once she gets the loan, we will be able... Vice Chairman Gort: To insure her. Ms. Warren: ... to buy her insurance. Vice Chairman Gort: The insurance. OK Ms. Warren: So, that that portion of that will be used... Vice Chairman Gort: So, that needs to be known to them, that that's going to take the process. So, ma'am, 48 November 30, 1999 will you get together with them? Commissioner Teele: It's a tremendous service. Ms. Warren: OK. Vice Chairman Gort: When you get together with them, they'll let you know. Ms. Goodman: OK. Ms. Warren: Yes. Vice Chairman Gort: OK. Mr. Warshaw: Ma'am? Vice Chairman Gort: Yes, ma'am? Ms. Christine Ferguson: Yes. My name... , Vice Chairman Gort: We're going to... Commissioner Sanchez: It's the same concern. Vice Chairman Gort: Is it the same concern, the loans? Commissioner Sanchez: Yes. Ms. Ferguson: Yes. Vice Chairman Gort: OK. Why don't you get together with the Manager and give the information and he'll put you (inaudible)... Commissioner Teele: Mr. Chairman, but she needs to put it on the record. Vice Chairman Gort: Go ahead, ma'am. Ms. Ferguson: Yes. My name is Christine Ferguson. And I had applied with the City of Miami. Commissioner Teele: What's your address? Ms. Ferguson: Nine zero Northeast 76th Street, Miami, Florida 33138. Vice Chairman Gort: Yes, ma'am. Ms. Ferguson: You need me to repeat anything? You have it all? Commissioner Winton: What's your name again? I'm sorry. Ms. Ferguson: Christine Ferguson. OK, ready? 49 November 30, 1999 Vice Chairman Gort: Go ahead. Ms. Ferguson: Yes. I had applied... . Commissioner Teele: My district here. Ms. Ferguson: I had applied with the City of Miami to have repairs done on my house from 1997, and up to 1999, 1 haven't any repairs on it. That I had certain requirements that they required from me. I had a little loan and they required that I paid that loan off and this is what I did. I paid that loan off because they said I won't be able to get into the Housing business. And right now my house is falling apart. It's falling apart. Sometimes I cried. Sometimes I laugh. And I haven't had anything done to it yet. Vice Chairman Gort: Ma'am, once again, staff here will let you know what the procedure is, what the process is on this — do we know what the process on this lady's loan is? Ms. Warren: We will definitely find out right now, sir. Vice Chairman Gort: Will you get together with staff, please, ma'am? Ms. Ferguson: Yes, I will. Vice Chairman Gort: OK. Ms. Ferguson: OK. Thank you. Commissioner Teele: Thank you, Ms. Ferguson. Vice Chairman Gort: We're going to be back at 1:30. You have two minutes. Yes, ma'am. Ms. Mary Hill:. No. I want to know, is this discussion still on... Vice Chairman Gort: Name and address, please. Commissioner Sanchez: Mary Hill. Ms. Hill: Mary Hill. I know you know me by now, but maybe some don't. My name is Mary Hill. I'm the founder of the Economic Opportunity Acts and Amendments in the White House. And I live at 146 Northwest 67th Street. I reside there. And I want to know, first, is this discussion concerning the Community Development.Block Grant Program and related issues? Is that what you all are on? Vice Chairman Gort: Yes, ma'am. Ms. Hill: You still on that. OK. Now, my very concern is, as founder of Revenue Sharing, Title 20 Grants, and it's what you call CDBG grants, I'm very disturbed about what I'm hearing today, as coming -- bringing the moneys and packages into the State of Florida and in Dade County, and to see that it has been misused and abused and not according to statutory laws and guidelines. You're still on 1964 Programs under Johnson War on Poverty, Social Services. I'm hearing this from everyone here. And I'm very disturbed because this is not following the statutory laws and guidelines at the directed and regional office. According to USC-2979A, Mary Hill, Director, supposed to put an office here. And it's no such thing as Commissioner form of government and it's no such thing, legally, as management form of government at this time. We had a... 50 November 30, 1999 Commissioner Teele: Can you all give this lady an office under this law, please? Ms. Hill: Pardon? Commissioner Teele: I was asking, can they give you the office? Ms. Hill: No, my office is already created from the statutory laws from the White House brought it here, director by statutory laws, founder from my home. And I appreciate you -- if you look into it and recognize that position to be here as national director, to do what I have to do. Commissioner Sanchez: You got it, Mary Hill. Ms. Hill: Thank you. Vice Chairman Gort: We'll be back at 1:30. THEREUPON THE CITY COMMISSION WENT INTO RECESS AT 12:11 P.M. AND RECONVENED AT 1:47 P.M. WITH ALL MEMBERS OF THE CITY COMMISSION FOUND TO BE PRESENT, EXCEPT VICE CHAIRMAN GORT AND COMMISSIONER TEELE. Commissioner Regalado: We're back in the public hearing and we're waiting for Commissioner Teele and Chairman Gort. But I think that we have many agencies that wants to be heard and, Mr. City Attorney, I had to leave earlier, so I don't know if we finished the public hearing or are we still... Mr. Alejandro Vilarello (City Attorney): No. Before we broke for lunch, we were still in the public hearing process. I believe that we were going through the Housing portion of the matter, but I don't know if you finished that or not. But it would be appropriate for you to continue the public hearing process at this point. Commissioner Regalado: OK. So, any Housing agencies that wants to be heard, if -- OK. Then, . we proceed with the administration. Commissioner Sanchez, Commissioner Winton, if you have any questions for the administration, then, we can just wait for the full Commission to proceed with the public hearing on the Social Services Program. Sir. Commissioner Winton: Commissioner, maybe there's a — since we are at this kind of lull. There's a point that I would like to bring back about an issue that we talked about before lunch, and that was the De Hostos Senior Citizen Feeding Center and I would like to, for the record, clarify a point and bring back some new information that we learned over the lunch hour. And, in my comments, I had said that Catholic Charities had cut the funding for the Senior Citizen Feeding Program and that actually is technically incorrect. It was the Alliance for Aging that cut the funding, and the recipient agency that the dollars flow through, Catholic Charities. So, it was Alliance for Aging that cut the funding. And in looking at a letter here from Alliance for Aging, it appears as though there may be a communication problem between Catholic Charities and Alliance for Aging, so they're going to pursue that. However, the good news that came out of the lunch break was that Catholic Charities has stepped to the plate and agreed to match, dollar for dollar, any money that the City will provide for this program, up to the maximum that was needed, and I believe that number is something like thirty-three thousand dollars ($33,000). So, Catholic Charities is willing to step to the plate for half of that 33, on a dollar for dollar match with the City. So, if we can figure out how to come up with roughly sixteen thousand seven hundred dollars ($16,700), Catholic Charities will match that. If we come up with less, they'll match whatever we come up with. But it's to a maximum of sixteen thousand four hundred, which will then fund the program in its entirety. 51 November 30, 1999 [AT THIS POINT, VICE CHAIRMAN GORT AND COMMISSIONER TEELE ENTERED THE COMMISSION CHAMBERS AT l :49 P.M.] Commissioner Regalado: Mr. Chairman. Vice Chairman Gort: Gentlemen, I apologize. Late. Where are we at? Commissioner Regalado: We're in the public hearing. But I just.had a question. There was a problem with Catholic Charities with the direct funding that they get. Somehow, we were told -- I don't know if this is the case -- they were a few minutes late for the proposal and they were not funded. I don't know if this is the case, Gwen. Catholic Charities. Is it twenty-eight thousand dollars ($28,000) or something like that? Ms. Warren: Their RFP was submitted late but we haven't made any recommendations to the Commission, yet, regarding the RFP's that are out. Those are for social agencies and some of the land acquisitions and other things were going to come to your December meeting. Commissioner Winton: But that didn't have anything to do with this meals' program, did it? Ms. Warren: No. Commissioner Winton: This meals program is a different issue. Commissioner Regalado: No. I know that. Commissioner Winton: OK. Commissioner Regalado: But there is some funding in question for Catholic Charities. That's what I'm saying. Commissioner Sanchez: And, Mr. Chairman, that issue has been addressed. Gwendolyn Warren, you and I spoke pertaining to that and you said that December they would either one, going to have a meeting with you to see how we could come up with funding to assist them on that. Although, I don't think it's irrelevant to what Commissioner Winton has said. I think that it is. Because I think, if they don't have enough money and they're starting to cut back -- and it's just like the domino affect when one charitable organization is squeezed, they have to cut back and, somehow — you know, in the long run, it's a shame. It's a shame really that, you know, such a great center that I have visited and a lot of people had visited -- you know, in the long run, it's the elderlies who have to suffer and they're the ones who are going to have the meals cut. And that's why I commend Commissioner Winton for standing up, especially the organizations, since day one, when they found out that they were going to be affected by those cuts, they have brought up — and that is the number one goal of Community Development, to make sure that social services in our community, especially the elderly and the handicap, are taken care of. Ms. Warren: Absolutely. Vice Chairman Gort: By the way, each one of those agencies, they have waiting lists to people that cannot provide services to... Commissioner Sanchez: They know that. Vice Chairman Gort: OK. 52 November 30, 1999 Commissioner Sanchez: Mr. Chairman? Vice Chairman Gort: Yes, ma'am. Unidentified Speaker: Yes. Good afternoon. Vice Chairman Gort: Are we in the public hearings now? Commissioner Sanchez: No, we have closed the public meeting. Unidentified Speaker: OK. Commissioner Sanchez: I think you're OK. Thank you. Unidentified Speaker: OK. Thank you very much. Unidentified Speaker: OK. Thank you very much. Commissioner Sanchez: Are we going to need any type of motion to take care of that problem? Ms. Warren: The staffs recommend... Mr. Warshaw: Which problem? Vice Chairman Gort: Do we have any... Commissioner Regalado: No, no. We have to get money from somewhere to place it on De Hostos. Commissioner Sanchez: Yeah. But listen... Vice Chairman Gort: My understanding guys, gentlemen, if you all remember, there was a hundred and seventy thousand dollars ($170,000) was set aside that can be utilized for this type of services. So, this is the time, if you guys want to make a decision, the allocation, my understanding, there's still a hundred and seventy thousand dollars ($170,000)? Ms. Warren: It's a hundred and seventy-five. Vice Chairman Gort: I beg your pardon? Ms. Warren: A hundred and seventy-five. Mr. Warshaw: A hundred an seventy-five. Vice Chairman Gort: A hundred and seventy-five thousand. So... Commissioner Regalado: Well, do you mean that there is a hundred and seventy-five thousand dollars ($175,000) that we can allocate for Social Services? Vice Chairman Gort: Sure. Ms. Warren: There's two separate issues you need to be sensitive to. One, currently you have six hundred 53 November 30, 1999 and thirty-two thousand one hundred and ninety-five dollars ($632,195) in your public services pool. That's the total amount that you have not awarded, that is with — inside the Federal cap, as to how much money we can spend this year on Social Services. Vice Chairman Gort: Right. Ms. Warren: So, two things. What -- and those monies are in your RFP pool. It was staffs anticipation to look at the proposals that we got, to bring that information back to you. So, we can do it one or two ways. If you were to use your hundred an seventy-five thousand .set aside, it would have to be -- reduce the Social Services monies available because -- and it would add to another category. That's one thing. And, secondly, you could either do it by utilizing your discretion on the hundred and seventy-five. Let us bring it back as a part of the Social Programs in your December meeting or whatever other options the Law Department can provide you. Vice Chairman Gort: OK. Let me see if we can get this correct. My understanding is, you set aside six hundred and ninety-five thousand dollars ($695,000) for Social Services... Ms. Warren: Six hundred and thirty-two thousand. Vice Chairman Gort: Six hundred and thirty-two thousand for social... Ms. Warren: That's in your RFP pool right now. Vice Chairman Gort: ...for an RFP. And who's answering — my understanding is, and refresh my memory. My recollection was for new programs. Also for... Ms. Warren: It is for areas that have been significantly underserved. The target population for utilization of that money has to be those that fit the federal legislation, which would be people impacted by Welfare Reform. And our priority, which is obviously seniors and, again, this Commission deemed that those monies would be used for those areas in the community that were underserved traditionally. And you... Vice Chairman Gort: For innovative services to be provided — in other words, an existing agency, if it comes out with an additional plan or an innovative program could be funded through these funds? Ms. Warren: You did not put -- yes, they could be. And, again, there's some Federal criteria that it has to be services for people impacted by Welfare Reform. It's the Commission's directive that it also be for areas that have been underserved. So, you have those two elements that, so far, would govern how you use those moneys. Vice Chairman Gort: My question would be, those people that be -- how do you rule where those people have been affected by the changes and the new changes in government? How do you judge that? Ms. Warren: We don't judge it. The Federal regulations. The most significant group that was impacted was the seniors' population. The second group was single females/heads of household, and children and, obviously, those who are receiving some kind of public assistance. Vice Chairman Gort: So, what we're saying is -- and it's seniors programs... Ms. Warren: And they are a priority, not only for the Feds, but for you. Vice Chairman Gort: Single woman/head of family and children are the ones where this money should be allocated. 54 November 30, 1999 Ms. Warren: Pretty much. Vice Chairman Gort: OK. Commissioner Regalado. Commissioner Regalado: Let me understand this because you say that we have the possibility of allocating from hundred and seventy thousand dollars ($170,000). Mr. Warshaw: Hundred and seventy-five. Commissioner Regalado: Hundred and seventy-five thousand dollars ($175,000). Mr. Warshaw: Yes, sir. That's the money that the Commission set aside in a previous Commission meeting. I think there was... Commissioner Regalado: Is that part of the RFP process? Ms. Warren: No. These are funds that were being recommended for City programs... Commissioner Regalado: OK. Ms. Warren: ... that you set aside. Commissioner Regalado: All right. Commissioner Teele: Is that public service dollars? Ms. Warren: No. What I'm suggesting is that if you use it for a public service activity, it has to be reduced from that — they can use it for -- you can use it for anything the Commission chooses, that's allowable under CD (Community Development). Commissioner Teele: Yeah, but... Ms. Warren: If you use it for social programs, we'll have to substitute the dollars out of the Social Service pool. That's merely what I'm saying. But it could go used for... Mr. Warshaw: In other words, it's not a plus one seventy-five for Social Services money. Commissioner Teele: Yeah, but I mean... Commissioner Regalado: I understand that. I understand that. But -- I'm sorry. Go ahead. Commissioner Teele: Mr. Chairman, Commissioner Regalado.. This program has gotten unbelievably complicated over the last two years. And one of the things that's happening, again, is that we continue to move these dollars around in a way that it gets extremely confusing to those of us that even know the program. Now, it's inappropriate to use any funds to feed people, other than public service dollars. Ms. Warren: Absolutely. Commissioner Teele: At the end of the day -- there's no need in making this complicated. You've got to use public service dollars. 55 November 30, 1999 Mr. Warshaw: Agreed. Commissioner Teele: Now, whether you pull down 172, which is not Public Service, and replace it with Public Service, at the end of the day we're talking strictly -- you've got Public Service dollars. You have six hundred and some of those dollars that are out now on an RFP basis. Is that right? Vice Chairman Gort: That's correct. You have to comply with the 20 percent only allowed for Social Service. That's all. Commissioner Teele: Exactly. Commissioner Regalado: Twenty-five. Commissioner Teele: So, to move funds into this category at this point or to take funds from those agencies that are competitively competing through a process is going to be — appear to be unfair to them. How much money are we talking about? Wasn't it thirty thousand dollars ($30,000) in question? Ms. Warren: I think we're... Commissioner Winton: For what? Ms. Warren: For De Hostos. Commissioner Winton: No. From the City's standpoint. Because Catholic Charities is agreeing to step up... Commissioner Teele: It's fifteen thousand. Commissioner Winton: ...and fund dollar -- match dollar for dollar. So, the maximum... Commissioner Sanchez: They want it matched. Commissioner Winton: ...from the City is sixteen thousand seven hundred. Commissioner Teele: Well, recognizing that the full six hundred and thirty-two thousand is in a competitive process. I think we would, basically, turn logic on its ears if we don't entertain the motion to allocate sixteen thousand dollars ($16,000) of the Public Service funds, and provide for the notice at the next meeting, for the public hearing, since it wasn't noticed this time; and make that available, subject to a determination by the Department and the Attorney, that these funds are eligible under the Federal criteria, which is a separate criteria from Public Service, but it's an additional criteria and that is, is that once you go over the 15 percent and go to the 20 percent, it must meet a two -prong test. It must. go into an underserved area, which I would suppose, if the Wynwood area is a traditionally underserved area, and it must impact those persons that are affected by -- is it Welfare Reform or Federal Reform? Vice Chairman Gort: Senior citizens. Ms. Warren: Welfare Reform. Commissioner Teele: And they do meet that criteria? Ms. Warren: Yes, they do. 56 November 30, 1999 Commissioner Teele: And if Commissioner Winton makes a motion, I'm going to second it. Commissioner Winton: So moved. Commissioner Teele: I second it, and... Vice Chairman Gort: There's a motion to allocate sixteen thousand three -- six hundred dollars from the... Commissioner Teele: And to further instruct the Manager to have the notice and the public hearing at the next meeting, including a comment from the CD Advisory Committee. Vice Chairman Gort: Motion and seconded. Is there any discussion? Being none, all in favor state by saying "aye." The Commission (Collectively): Aye. Vice Chairman Gort: Thank you. No nays. Thank you. 57 November 30, 1999 The following motion was introduced by Commissioner Winton, who moved its adoption: MOTION NO. 99-911 A. MOTION AUTHORIZING THE CITY MANAGER TO ALLOCATE AS ADDITIONAL FUNDING IN THE AMOUNT OF $16,500 FROM THE $632,195 AMOUNT PRESENTLY EXISTING IN THE PUBLIC SERVICE POOL OF 25TH YEAR CDBG FUNDS, TO DE HOSTOS SENIOR CENTER FOR ITS MEALS PROGRAM, SUBJECT TO A DETERMINATION BEING MADE BY THE DEPARTMENT OF COMMUNITY DEVELOPMENT 'AND THE CITY ATTORNEY THAT THESE FUNDS ARE ELIGIBLE UNDER FEDERAL CRITERIA ESTABLISHED IN THE CODE OF FEDERAL REGULATIONS (MUST BE IN AN UNDERSERVED AREA AND PEOPLE IMPACTED BY WELFARE REFORM); FURTHER DIRECTING THE MANAGER TO PROVIDE PUBLICATION OF PROPER -PUBLIC NOTICES AND BRING THIS ISSUE BACK ON DECEMBER 14, 1999 FOR FINAL ACTION. Upon being seconded by Commissioner Teele, 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. Commissioner Regalado: Mr. Chairman? Vice Chairman Gort: Commissioner Regalado. Commissioner Regalado: Could the administration explain the process for. the RFP that are been offered or issued or noticed and who would be competing for that money? If all of the agencies will be competing -- if only certain agencies will be competing? I just need to know that because there is a tremendous need right now and I just want to know what is going on. Because we're never, by the way, informed of the process. But if we have to make a decision -- if I want to offer the Commission something, I need to know. Ms. Warren: Mr. Chair? We're talking — we're referring to the Social Service dollars, the Public Service dollars? The Public Service dollars, as you know, there's a 15 percent cap on Social Service dollars. At the last Congressional session, we were able to successfully get a Congressional waiver for the City of Miami that increased our Social Service cap to 25 percent. The City Commission -- the waiver,. that 10 percent waiver, per the Federal legislation, is for residents that are impacted by Welfare Reform. Those who were the most significantly impacted is the way the language reads. That would include, especially senior citizens and single females/heads of household, Section 8 Housing Residents, etcetera. During this year, the City Commission has, basically, allocated its 15 percent. The original 15 percent — what you did at 58 November 30, 1999 previous actions is, you took those Social Service agencies from last year, that was performing well, and you extended their -- funded them for an additional 12 months, through September -of the year 2000. The balance that was available, which is the 10 percent, was set aside again, specifically to adhere to the legislative purpose of serving those individuals who were impacted by Welfare Reform. This City Commission further directed staff that they wanted to take those monies and target it to those communities. Since the regular Social Service agencies had been funded, you wanted to take that pool of money, not only did we have the Federal issues, but this Commission directed that those monies be spent in those target areas that had been traditionally underserved in the area of social programs. So, when we put the RFP out to bid, it was for the balance of the monies available. The RFP said that it was for those individuals who had been impacted by Welfare Reform, and we emphasized seniors in the categories that was available, and we further stated that the Commission had directed that only those communities that had been significantly underserved in the areas of Social Services would be considered for awards. That was in the RFP. There was never any indication that a current provider could bid. It only said, you have to deal with Welfare Reform issues and that the resources would go to underserved — historically underserved Social Service areas. That was it. Commissioner Regalado: Does it say target areas or not? Ms. Warren: I believe it does say under — traditionally underserved target areas. I don't have it in front of me but... Commissioner Regalado: But I thought that you said that we were working to include non -target -areas in tbis process. Ms. Warren: The Commission directed two things: that those monies go to the traditionally, historically under serviced target areas. And because you had passed a Five -Year Plan that included Flagami as a serviceable area, they were also included as an eligible community, per Commission direction. Commissioner Regalado: So, Flagami is included? Ms. Warren: So, all, of the traditionally underserved areas, including Flagami, were the areas'that service... Commissioner Regalado: But Flagami is not officially a target area. Ms. Warren: Commission directed that they be included for the purposes of historically not receiving any Social Service moneys. Commissioner Regalado: That's what I'm saying. Ms. Warren: No, they're not a traditional area. Commissioner Regalado: That's what I'm saying. So, we can work in the Flagami area? Ms. Warren: You can provide services throughout the City of Miami now. And, yes, you can in the Flagami community. Commissioner Regalado: OK. Vice Chairman Gort: Commissioner Sanchez. Commissioner Sanchez: Gwendolyn, how much money is owed from HUD to the City of Miami General 59 November 30, 1999 Fund? Commissioner Winton: What was that question? Commissioner Sanchez: How much money is owed from HUD to the City of Miami General Fund? Ms. Warren: I have no idea. Commissioner Sanchez: Yes, you do. Tell us. Mr. Warshaw: Not only do we not have any idea, but there's money that's probably going to have to be reconciled both ways, money from the General Fund to CD and money from CD to the General Fund, and that reconciliation, which is for how many years, 20? Ms. Warren: To try to answer your question, Commissioner. There's three problems. The City of Miami collected Program Income for a significant numbers of years. That's the principle and interest on loans. Historically, only a small portion of that money was ever reported, which is required. Those monies were, we assume, in some cases, used for General Fund activities. Mr. Warshaw: And I might add. I mentioned that this morning. Excuse me. In many of those years, that amount of money was between four and five million dollars a year. Ms. Warren: So, you have one problem, which is that we collected money that was - we should have reported and submitted to HUD and we did not. The second issue is that... Commissioner Sanchez: I'll tell you. what. I'm going to leave it as it is, but as soon as this meeting is over, I want a meeting with both of you in my office because... Commissioner Regalado: Commissioner Sanchez. Commissioner Sanchez: No, wait a minute. I'm tired of being lied to. Commissioner Regalado: Would you yield? Commissioner Teele: You're tired of what. Commissioner Sanchez: Being lied to. Commissioner Regalado: Could I -- Commissioner Sanchez? Commissioner Teele: Well, I'm going to tell you something. I don't know where all this is going and I have a lot of respect for Commissioner Sanchez' total focus on financial honesty and irregularities, but one thing is for sure, some things ought to be done in public and some things ought to be done with the lawyers there, et cetera. Because one of the concerns that I have -- and, Joe, you weren't here, but I know Commissioner Gort and Commissioner Regalado. We had a big fight about this, a year and half ago, name calling. We said we need to reconcile these accounts. We instructed -- this is two budget years ago. We instructed the Budget Office and the Finance Office to work with the Community Development Office to reconcile. And I'm going to tell you the biggest problem that you've got with reconciliation, other.than the fact it hadn't been done for 20 something years, is that no one can decipher what is going on in Community Development right now. When you do a notice, the thing that everybody should be working from, a public notice document, the Public Notice documents that we're doing are still very misleading and very difficult to follow. The 60 November 30, 1999 notice documents that the lady came up and talked about today, showing eight thousand dollars ($8,000) which, perhaps, was a part of the instructions of the City, but that document should have said "previous amount allocated in this fiscal year, eight thousand. Proposed amount to be allocated during this meeting, sixteen thousand." Now, I don't know what's so hard about that. I mean,1 really don't. And when you start compounding and, then, Commissions making motion, like we've just made -- Commissioner Winton, like you just made, moving sixteen thousand dollars ($16,000) — and that's why I added to the motion that there be, a notice in the newspaper that the Commission proposes to move from the pool account to whoever's going to get it, sixteen thousand dollars ($16,000) for these Public Service dollars. This thing is so misleading that I really have to explain, to some extent, to Commissioner Sanchez, by way of defense, that nobody really knows what's been done. That's the problem. And I don't think people are intentionally misleading you, per se. It's a mess and it's a plutonic mess. And the fact of the matter is, is that we need to all come clean with these books and, basically, put on the table what's on the table. And I don't think we need to start making allegations about criminal conduct. The Manager talked about some criminal activities this morning. Look, at the time everybody was robbing Peter to pay Paul to keep this City afloat. If money went to Rio de Janeiro, then, 1''ll be the first person to move right now that whoever's involved in improper removal of City funds for non municipal purposes ought to go to jail. But if it's bookkeeping -- and I'll tell you this: The biggest City department in the City is going to be beneficiaries of a lot of this money. I can tell you right now just based on size. It's going to be the Police Department. So, we don't need to start. throwing rocks and pointing fingers because always remember, when you point one finger, there's three pointing back at you. But the fact of the matter is, there's a whole lot of things that's been done wrong here. Commissioner Sanchez is right to be frustrated. But I want to share with you, Commissioner Sanchez, that I don't think that Donald Warshaw is intentionally misleading you or the public. I don't think they -know. - And the problem has been, I couldn't get anyone to focus on this as a priority. There were forty thousand — I'm sorry. There is forty million dollars ($40,000,000), plus or minus five or six million, of funds that are somewhere caught up in the cyberspace over the last 20 years... Ms. Warren, is that an unfair statement? Ms. Warren: It's probably an understatement. Commissioner Teele: ...of dollars that are available. When the City Commission prioritized certain funding, specifically, the rehabilitation or the funding related to Overtown and Park West, we did that, then, with the understanding that there is, at least, forty million dollars ($40,000,000) of funding that is caught up in the books or the paperwork, from year one to year 23, that we never closed out grants. If you look at "The Miami Herald," every year, the County Commission closes out grants. The Commission closest them out, through the de -allocation of three thousand four hundred and seventy-two dollars and eighteen cents ($3,472.18) from the Opa-Locka Safe Neighborhoods to a Drainage Program. I mean -- and there will be 40 some of those kinds of de -obligating of funds. That's never been done. So, you've got grants of five hundred agencies that have got money in them, whether it be five hundred five hundred dollars ($500) or fifty cents ($0.50) or, in some cases, five million dollars ($5,000,000). And, so, I'm trying to defend you -- defend the Commission — the process because I really don't think it's one, criminal and, number two, I don't think that it's intentional. But the frustration that we all have here, Gwen, is that the system doesn't make sense. I asked repeatedly, what is the timetable for all of this? Do we have a document that gives us the clear timetable? The people came here from Habitat for Humanity. They don't understand the process and neither should they understand, unless we explain it to them. We agreed — I agreed and moved to extend these grants on Housing to March 31 ", for one reason, so that we could get the RFP. You all said, "Oh, we'll have it done maybe by December — by January," OK, on the Housing stuff. Or whatever date you all said. And I said, "well, let's don't rush yourselves. Let's take enough time." But it needs to be clear to the public that you all have a date that you're going to come back to us. Now, when are you all going to come back to us on the Housing funding, RFP's? Ms. Warren: The Housing... 61 November 30, 1999 Vice Chairman Gort: Commissioner Teele -- excuse me. Before you answer. One of the problems that we have in here is called "rumor mill." Commissioner Teele: Called what? Vice Chairman Gort: Rumor mill. I mean, there's all kinds of rumors going back and forth and this is something that we need to clarify that. We need for you to come up with the documents. Whatever you have, come out in writing. Give it to us. We gather all the information and make sure that all the staff, all the agencies and everyone receive those copies. Because you keep hearing different things from different individuals... Mr. Warshaw: You're talking about the... Vice Chairman Gort: ... and that's what's going to create a lot of problems in here. Mr. Warshaw: ....consolidation issue? Vice Chairman Gort: So, the consolidation, the whole works, it should be as soon as possible, so we can get this straightened out. And I understand it could be 20 something years of paperwork, but we need to do it and get it over with, and once and for all. Mr. Warshaw: Commissioner, if I can just make a comment on that. And I know it seems like it's a long time, but I've been here for a long time and so have others. Twenty years worth of not only lack of reconciliation but of deliberate -- and I underline deliberate -- hiding of information going back 20 years ago. This money wasn't just misused and misappropriated by accident. It was done in a way where the trail to follow back from today, 1999 backwards, isn't an easy thing to find. And, yes, it's a scary thing to know that this forty, fifty or sixty million dollars that could be going both ways, and I don't know where the net, plus or minus is going to be, to the General Fund or for the General Fund. But we've got a Finance Director, who brought in three or four CPA's (Certified Public Accountants), along with Community Development, who had been working seven days a week, around the clock. Nobody is more anxious to find out the final answer to this than we are. So, there is no rumor mill because we don't know the answer yet. Commissioner Regalado: Excuse me. Mr. Warshaw: But I've got to tell you, to go back into the 1970's, to try to find what was done — and believe me, there were deliberate attempts to hide that money. Commissioner Regalado: Mr. Chairman? Commissioner Sanchez: Wait, wait. Mr. Chairman -- hold on. Vice Chairman Gort: Don — excuse me, excuse me. Commissioner Regalado: Mr. Chairman, Mr. Chairman? Can you... Vice Chairman Gort: Go ahead. Commissioner Regalado: Can you just yield, please. Just one second. Because I think I have something. About three years ago, you remember — I think only Willie and I were here on this Commission — we were appointed to different departments to sort of check on those departments, and I was appointed for Community Development. It happened when we had those three or four HUD officials working on the 62 November 30, 1999 conference room of Riverside Center for many, many weeks. They were very gracious to meet with me several times, before the report, after the report. And I sort of gave a small report to the Commission. But 1 will tell you, Mr. Manager, what they told me. They told me that they were not recommending that the City will be penalized; that the City will have to give back all the money. What they found out is what you're saying now, that money was moved from one place to another. But -- and they went into the different loans of Housing and they were shocked to find what they found. But they told me — people in Washington told me, that the City was not going to be penalized in terms of saying, "You guys have to give back forty million dollars ($40,000,000). That is not the case." * And what Commissioner Sanchez was asking is something that is happening now. The Federal Government owes the City money in the General Fund and that money was used -from the General Fund to pay agencies, and we have not claimed that money. It's very simple what he asked. Ms. Warren: This is not true. You're talking about two different issues. Commissioner Regalado: Well — no, no, no, no. I mean, talking about not true — I mean, you know why I'm talking this, Gwen, because I don't have information. I don't have information. No one from -- I mean, you're -- you know a lot and you're saying — you're shaking your head saying, this guy -- at least, this guy doesn't know anything. But I do know something, you know. I'm here to make decisions and I cannot make decisions because you do not — your department — your administration, Mr. Manager, does not give us the information. You just said a few minutes ago in the morning "Well, the City Attorney was right. I was, wrong." I mean, even on the record. And you — I'm not blaming you for hiding things, but you're not informing people. You think that these five people here sit twice a month to make decisions and we don't know anything about. Well, you know, you don't have to visit the senior centers. I do. And I know the needs of the people. So, I need information. And this is why I come here trying to be prepared. And if you said this is not true, it's your fault because you have not informed me. Ms. Warren: I guess what I should have said is that we're talking about... Vice Chairman Gort: Excuse me. I've got Commissioner Sanchez. Commissioner Sanchez: If I may. First of all, let me just clarify something. I'm not accusing anybody of criminal activity or anything. My frustrations are that we are always the last one to know when things going on and when things are getting complicated, you find out through the rumor mill or you find throughout constituents that are concerned about our Social Services -- where's the money? The other concern that I have is — and I've always said it. We have passed resolutions here that have not been executed by this administration and we are the legislative body here. We dictate what goes on in this City. That's why the people elected us to do that. I remember that we put a resolution out here for eight hundred thousand dollars ($800,000) to pay some loans, some default 108 loans. Did the City ever do that? Ms. Warren: Yes, we did. Commissioner Sanchez: You did that? Ms. Warren: Yes, we did. Commissioner Sanchez: And where did the money come from? Ms. Warren: The defaulted — the 108's that we paid, which are in the file... Commissioner Sanchez: No, here's a better question. What did you do with — OK, go ahead. I'm sorry. That's my follow-up question. 63 November 30, 1999 Ms. Warren: I think I understand. There's three financial systems, but let me tell you. The Wynwood Free Trade Zone went into default that day after we made the payment. We paid the note. This Commission approved the City, through the CDBG allocation, paying the debt service on the 108's for the CRA. All of those have been paid. What you're probably looking at is an IDIS report out of the HUD System that an employee gave you. Unless you look at the City's SCI reports, unless you know how much money we owe the Feds or how much money we've drawn down by mistake, until the reconciliation is done, one piece of information can't give you the whole picture. The Commissioner asked, where are we in this? And, unfortunately, this is a long process. The Manager indicated, we never closed out a contract for 20 years. We had thousands of CD account that we have had to hunt down.. Thousands. So, now what we know is that we received money for 23 years. We credited it in one account. We ran bills up for 23 years in another account. We never reconciled the two. A third piece of the puzzle. We made business loans and construction loans and Housing loans. We got back principle and interest. That money was to be reported to this Commission and to HUD. It had to be accounted for and redistributed. There's some concern that the line sharing was not. That money is owed to HUD. Yes, we do have money in our CD line of credit, but it has to be offset by the amount of money that the City did not return to HUD. Until we can complete those reconciliations, give them to our outside accountants and, then, turn it over to HUD, I am not in a position to tell you how much money we have. And no one individual, looking at any one of those systems, unless they can read minds and read 20 -- I mean, if all' of our Accounting and Finance Departments can't find it, I defy one person to know where it is. Commissioner Sanchez: But why is the money coming out of the General Fund? Commissioner Teele: What money? Ms. Warren: That's... Commissioner Sanchez: To pay for all these things. Ms. Warren: The money is not -- all right. Let me see if I can answer that one simply. One of the habits that the City had of old. Since we drew down, we've collected Program Income. All these loans, OK? We said in the millions of HUD money that we collected. What the pattern was is, the City kept the money and instead of drawing down to pay bills, they used their private CD stash to pay the bills. That money was paid for by HUD. We still have another account sitting in a line item. This is a major accounting issue. It's not a simple problem. I am not hiding anything... Commissioner Sanchez: I'm not accusing you of hiding anything. Ms. Warren: But somebody did, and it's extremely complicated. It's not easy. Commissioner Sanchez: If you think it's complicated to you... Ms. Warren: Oh, it's major complicated. Commissioner Sanchez: ...that you're on a full-time basis, with a complete staff, you're dealing with an individual who spends maybe a day and a half here at City Commission. Ms. Warren: But, again, we're talking... Commissioner Sanchez: You know, it's more complicated for me than you. 64 November 30, 1999 Ms. Warren: ...about millions of dollars that we're trying to reconcile to make sure that the City is properly represented, and we can get every dime that's owed us. But you can't do that by taking pieces of the puzzle. It's a major puzzle. And the Finance Department is doing its part. It is reconciling accounts. We're doing our part, trying to figure out what the Commission actually approved. Then, we need to figure out what money was collected that was never reported. Those are three major pieces that have to be put together. Mr. Warshaw: We're looking at legislation that's 15 to 20 years old, to -see if we can match... Ms. Warren: So, we can justify the money. Mr. Warshaw: ...up what the Commission approved on thousands of accounts going back into the 1970's. That's not an easy thing. And we're almost there. Ms. Warren: And nobody can come to you and tell you they know where that money is, not in reality. They may know a piece. They may see one of our Federal accounts, where it has the 108 money in it and because it's sitting there, they think somehow or another it was never paid. We have Program Income accounts sitting over here with their money in it. We paid it. So, unless you understand all of the -- nobody can represent it. Your Finance Director can't. Your Budget Director can't. I can't. It's going to have to go to the External Auditors. It's going to have to go to HUD. And we're probably, Commissioner, about half the way through. But it's been a major battle. Commissioner Regalado: Gwen, can you say that HUD has told you that we're going to have to give them back money? Ms. Warren: What I can tell you is this, is that I know for a fact — and I have talked to HUD — that what their guess of the Program Income is — I know that, by law, the Program Income has to be remitted to HUD. What we did with Miami Capital today, any interest collected on that Program Income that was not remitted to the government has to go back. All of that will have to be reduced from anything that they owe us. And, yes, I do know that for a fact. Commissioner Regalado: Are you saying, then, that we're going to be penalized by HUD? Yes or no Ms. Warren: I think... Commissioner Winton: Well, that's a different question. Commissioner Regalado: That's a question. Mr. Warshaw: I don't think the answer is being penalized by them. If we owe them... Commissioner Regalado: Oh, yeah, oh, yeah. We are penalized. If they reduce the money, we are penalized because we have to reduce the agencies. Mr. Warshaw: In that context, then, the answer is, we could be penalized. What I'm saying is, I don't think we're going to be fined by the Federal Government. But if we find, F-I-N-D — excuse me for making the distinction — that we owe money back... Vice Chairman Gort: We have to pay it back. Mr. Warshaw: ...we're going to have to give that money back. 65 November 30, 1999 Vice Chairman Gort: Sure. Mr. Warshaw: But I don't think we're going to have to pay a penalty for it because we're working in cooperation with HUD. Vice Chairman Gort: Commissioner... Mr. Warshaw: But if find we owe them money, we're going to have to give it back, unquestionable. Ms. Warren: And the audit... Vice Chairman Gort: Excuse me. Ms. Warren: OK. Vice Chairman Gort: Excuse me. Commissioner Winton's been asking for the floor. Commissioner Winton: How much longer — and I can picture the complicated process here that you all are going through, and I appreciate the frustration that my colleagues have at not being able to answer these kind of questions. So, I guess my question is, you said you're working on this around the clock. When will you have these accounts reconciled so that the Commission can get the full picture as to the amount of money that we will —just a full picture, period, about this whole HUD funding business? Ms. Warren: We can probably -- and, again, I... Mr. Warshaw: Give him your best guess. Commissioner Winton: Give a ballpark. Ms. Warren: I can only give you my best guess. Commissioner Winton: Right. Ms. Warren: Say, spring, we can give you a snapshot of what the issues are, what the major issues are. The second — then, the next stop has to be — or, at least, your staff is going to recommend it — that our External Auditors, before we do anything, go back through and look at all of those numbers to figure out what the City's liability is. Before we do anything after that, that we meet with the HUD auditors to figure out what kind of a corrective action plan, payment, whatever it is, before we do anything on this. We're at step one and we've got three steps before you guys should start talking about spending the money. Commissioner Winton: So, that's... Vice Chairman Gort: Excuse me. I think Commissioner Sanchez was not done. He says he's just warming up. So, go ahead, Commissioner Sanchez. Commissioner Sanchez: Gwendolyn, the business corridor was awarded a hundred thousand dollars ($100,000). That has yet to be funded. Why? Ms. Warren: Which business corridor? Commissioner Sanchez: The... 66 November 30, 1999 Ms. Warren: Model Cities Business... Commissioner Sanchez: ...Little Havana CDC was awarded one point six million dollars ($1,600,000) and that is... Ms. Warren: When? Commissioner Sanchez: Yeah. It was awarded one point six million dollars ($1,600,000). It's in my district. I should know. Ms. Warren: Oh, you mean the Latin Quarter Specialty Shop? Commissioner Sanchez: Yes. How many years -- and have yet to be... Ms. Warren: The contract is executed. Commissioner Sanchez: And I was told -- and this is where it gets frustrating -- we lost the money. We found the money. We lost the money. They're going to get the money in 30 days, and that's been almost 90 days. See, those are the frustrations I face here. Ms. Warren: They have the contract. They have the money. Barbara can give you the details. Commissioner Sanchez: They have the money. So, if I call Barbara right now, they have the money in their possession? Ms. Warren: Barbara? They do not have the money in their possession. Commissioner Regalado: They didn't have it last week. Commissioner Sanchez: They didn't have it last week. Ms. Warren: They do not have the money... Commissioner Regalado: They didn't have it last week. Commissioner Sanchez: See, you need -- you know what the problem is? We don't communicate. Mr. Warshaw: All right. Well, let her give you the answer, so we see what the process is and exactly what happened. Ms. Barbara Rodriguez: Barbara Rodriguez, Community Development. Latin Quarters was a contract for two point six million dollars ($2,600,000). One million dollars ($1,000,000) was from SHIP money. One point six came from CDBG. It was correct that, at the beginning, we did have some problems with the money. We came back to you October 12'', to reallocate and find the money that was needed. We have done that. East Little Havana, which is the CDC, with that money, they requested three hundred thousand dollars ($300,000), out of which, on November 5th, we paid two hundred ninety-eight thousand one sixty-two. So, yes, they did have problems with the contract. It took us longer. The contract is executed and they've been drawing down money. 67 November 30, 1999 Commissioner Sanchez: Thank you. Vice Chairman Gort: Anything else, Commissioner Sanchez? Commissioner Sanchez: That's it. Vice Chairman Gort: You're through? Commissioner Sanchez: Yes. Vice Chairman Gort: OK. Anyone else? OK. Commissioner Teele: Mr. Chairman, thank you very much. I realize that this is a very stressful situation, Mr. Manager, and I certainly don't mean to add to this stress. But I think we need to be very clear that this Commission has asked for an audit and reconciliation, going back for one year and a half now, I think. We need to be -- before you even got here, I, specifically, found and noted that the accounts had never been reconciled. I further noted, that based upon the treasury available data, that it appeared as .if we have somewhere between twenty to forty million dollars of funds, and that number can be even greater. Now, a part of what was being done is that we looked at certain areas and we tried to make some decisions. One of the things that really is concerning me, is the notion that Community Development ,funds have not been spent either appropriately or in a manner that respects the various underserved communities. I want, Mr. Manager, for us to be very careful as we proceed because a personal kind of challenge related to these funds is not_ going to spill over on any person. It's going to spill over on the City, the agency, and all of the millions of dollars that we could wind up losing. And I think we need to be veryjudicious in our comments. Because we're not out of the clear, yet with the Federal Government. And, again, I wasn't here when the financial mess was made but I stand in those shoes and we have to defend it and we have to make our best case. I would be very surprised if money went south. The problem with the City of Miami is that we have had a tremendous over building of municipal services, particularly Police and Fire, the uniform services that we've talked about at every budget hearing, that continue to eat up the entire City budget, that are disproportionately in growth and, quite frankly, every other service is being squeezed out. Parks, basic administrative functions are being squeezed out as we proceed along this track. So, this is a difficult issue. The challenge, I think, that we have is to -- how we can make some sense out of it and return and respect the neighborhoods by which the formulas are generated. This funding is not to subsidize the City Government. It is to enhance those areas.. It is to enhance those areas that generate the dollars for this City over and above services. One of the challenges: How much money does the City of Miami spend for basic road and sidewalk and flood control from our general fund? I mean -- and that's not sort of an academic question. That's a very real question. The answer is going to be very, very little, if any, in the various neighborhoods. Oh, we'll spend the money to repave Biscayne Boulevard for the Orange Bowl Parade and we'll spend the money, you know, to repave areas where the business and the Gucci wearers and lobbyists that walk around here, more and more like County Hall, are lobbying for their.clients. But in these neighborhoods that we're talking about, the whole source of City money, for basic infrastructure needs, is CDBG. And, then, we get into this diverting of CDBG dollars out of these neighborhoods into areas that are not appropriate. For example, Lot Clearing. I argued with J.L. and the Manager the whole while. It's fine to cut lots, but I've got to tell you something. Once you start cutting lots outside of these target areas, you're violating the intent of the rules. You're violating the intent of it. Somebody said, "Well, we ought to just give each of the Commissioners, when we find some of this money, five million dollars ($5,000,000) per district." Well, I'll tell you right now. I'm going to file a lawsuit against the City Commission and against the Mayor and the Manager, if you do that. Because this isn't about five district Commissions. This is about the various target areas. Now, having said all of that, I think there are some fundamental things that we need to go back and do right. Number one, we need to engage FIU (Florida International University), the University of Miami, whoever you like, to do an analysis of our target areas and to revalidate these areas. There's a lot of talk 68 November 30, 1999 about Flagami. I support it. I just think we should not arbitrarily -- and you should not put us in the position of us, arbitrarily, making Flagami an area because I'll tell you why. If it blows up, you know who they're going to blame, Johnny? The Commission voted to make Flagami the area. Nobody's going to say I stood up and did it or it was a management recommendation. It's going to be a Commission — and it is our decision. There's a method by which you verify these areas, and I think — and I don't know, Ms. Warren, the last time that we had a study done, but we talk about how we're improving our process. Let's really improve our process. Let's go out here and contract — and it's not even a contract. It's an inter -agency agreement with a university, and let's go out here and validate our areas again. Let's substantiate our target areas again, and let's include Flagami and any other areas that anyone feels is appropriate: We may be engaged in an undercount of Federal dollars as a result of this. The second thing that I would ask is that we make funding decisions based upon the various categories, which I was hoping that we would do today, and we would commit funding for the coming year or for the next fiscal year based upon the various categories. Of particular concern to me — and I would hope that Commissioner Winton would join me in this. I know that Commissioner Sanchez has made a point -- is that I believe that Historical Preservation should not be a stepchild of this process. It is a recognized categorical area. It's one of the seven areas included in the Code of Federal Regulations. We need to bring Historic Preservation into the -- onto the table and I -- at the right time, Mr. Chairman, I would like to move, as we go forward from this day forward — because we've done this before. We've voted on this twice. This will be the third time we're voting on it — that Historic Preservation be recognized as a category and that the Commission be afforded the right to make allocations in advance, that is, that we're going to allocate a certain percentage of money for Historical Preservation. And, then, finally, in this area, I think it's very important that there be a validation of these numbers. I don't -- I will tell you right now. The numbers don't look right to me, and I may be wrong one hundred percent. But the only thing that I'm asking is that the formula and — the HUD formula by district by validated. I thought we asked before that the Clerk and the Community Development Office do this jointly, since the Clerk's Office is doing all of the data manipulation or did the data manipulation for the census tracks for the districts. Didn't you all have that? Who did it before? Ms. Warren: No. Mr. Foeman: That was GIS and Planning. Ms. Warren: And GIS and Planning did the data based on census tracks in the GIS system for the Commission districts also. Commissioner Teele: So, the source of this is the Planning Department and GIS? Ms. Warren: Yes, it is. Commissioner Teele: OK. Well, let's put a source on it so that we know exactly where it's coming from, if you don't mind. Ms. Warren: OK. Commissioner Teele: Because I really do think that the Grove — I thought the Grove would generate more than two percent. I must admit. Ms. Warren: It can't. Commissioner Teele: And maybe I'm wrong, but I know one thing. The Police Department is pouring resources into the Grove like 90 going west. I sat up into a meeting with the Chief of Police and he was telling me how the Grove is — particularly, the under area portions of the Grove. I realize that the grant was 69 November 30, 1999 written and all of the new grant dollars are going into the Grove, in terms of this Neighborhood Crime Suppression activities. But it just seems to me that when you've got an area -- well, I think we need -- I think we all need to know what this is. I don't think we should be guided by this as an absolute, but I will tell you this. When you start out -- and Johnny and Commissioner Gort -- Commissioner Winton, Commissioner Gort, I'll say it here on the record. When you start out with the DDA (Downtown Development Authority) taking, you know, a half a million dollars ($500,000) off the top, as it's in our proposal on the list today -- and I'm not picking on the DDA. I think it's important that we support the DDA, and I intend to support it, the request that's here. But a half a million dollars ($500,000) last two months ago — we gave them — we gave downtown — how much was that? Commissioner Sanchez: One point three. Ms. Warren: Half million. Commissioner Teele: One point... Commissioner Sanchez: Three? Ms. Warren: You're talking about cubestein (phonetic). One point three. Commissioner Teele: One point three million dollars ($1,300,000)? And when you look at one percent of the formula -- and I realize some of that's old money and — I mean, you know, you hear a monkey's tail about _different stories, but when you look at the amount of CD funds that go into paving and all of that, the issue is not to penalize any area but the issue is to ensure that Little Havana gets 37 percent or something close to that and that Wynwood get seven percent; and that Allapattah gets the 18 percent or something close to that; Model Cities gets the 12 percent; Little Haiti -Edison gets the 19 percent. And when you start taking big numbers off the top and you're distorting it, everybody's going to get squeezed at the bottom. That's the disadvantage in making these decisions, like we just did on the sixteen thousand dollars ($16,000), which I support because I clearly know that Wynwood has been underserved, that we need to, basically, be very, very careful and try to recognize, as we go forward, that this is where the funds are generated from. These funds are not. generated based on a citywide statistic. They're generated on a neighborhood statistic or neighborhood based upon poverty and the conditions of poverty and we need to work with each other. Because if we're not careful, well get pitted against each other in this process. And I just appeal'to the Commissioners to take these formulas to heart and to be mindful of that when we talk about that.- I will tell you this. In the area of Public Service — and I've listened to my colleague, Commissioner Regalado — the black community, for the last 20 years, has gotten screwed in the area of Public Service. Proportionately, they have — the black community has probably gotten less than 25 to 30 percent of the dollars in Public Service. Now, the problem's going to be when you start trying to right that — when you try to right it and get it right. It means that those people that have been getting funds, historically, are going to get squeezed out. I mean, it's -- the pot's not going to get bigger. So, when you say we're going to do the right thing and we're going to look at Public Service -- and I think the Manager has provided us with an option by this 20 percent cap. And the fact of the matter is — and, Ms. Warren, you and I don't always agree and if you don't agree with me, say it right here, right now because I don't want the record to be, you know, impregnated with something that's not right. But this whole concept that Carrie Meek got sold on — I'm going to tell you. And this is the Carrie Meek Amendment -- was that the City of Miami has not treated the black community right in public service, historically. The numbers speak for themselves. And" by providing a five percent, it gave the City the option of providing for the "underserved areas." Underserved areas —just so that everybody knows what the code is, underserved areas are primarily Model Cities, Edison -Little River and Wynwood, to my knowledge. Now, Ms. Warren, you need to correct the record, if I'm wrong, and if I'm wrong, I'll be corrected. But, please, you know, either say that I'm right or say that I'm wrong. Because I don't want my colleagues to be operating under a different philosophy, that 70 November 30, 1999 the Federal Government is operating under on this issue. Ms. Warren: You're correct. Commissioner Teele: Ma'am? Ms. Warren: I said, you are correct. Commissioner Teele: That's the first time she said that since I've been here. Ms. Warren: Well, you said I could say one way or the other. Vice Chairman Gort: OK. I'd like to give a suggestion to all of you when I first found out about the deficit that was taking place. I read a document that was given to me by the unions, which is called the Gates Case. I think you should all read the Gates Case. Commissioner Teele: The Gates? Vice Chairman Gort: The Gates Case. I think you'll have an understanding in some of the problems, economic problems the City of Miami have had. And that, by the way, when you read the history, like I did, this problem began in 1955. So, I want to make sure that people understand that we have a big mess and we and this administration here are working trying to correct something that happened a long time ago: 1 think Ws very important that we do that. Number 2. You're going to have new statistics coming out... Commissioner Teele: On behalf of... Vice Chairman Gort: ... with the 2000 Census Bureau. Commissioner Teele: On behalf of my dear friend, Former Mayor Ferre, I want to object to any reference to the Gates Case. Vice Chairman Gort: OK. Well, I think it's very important we look into that because that goes way, way back and began a long time ago. So, I think it's very important that we read that, so you'll be familiar that the City of Miami, at one time in 1983, I believe, had a deficit and funded liability two hundred and twenty million dollars ($220,000,000). So, people had to... Commissioner Teele: And the labor unions have saved us. Vice Chairman Gort: All right. So, I think it's important we understand that. Number two is, we had the Census Bureau coming up with the new statistics that's going to be coming out with the Year 2000 Census Bureau. It's very important, Mr. Manager, that our Planning Department works very closely — have everyone go into the different neighborhoods and speaking to people to make sure that we account for everyone in every resident and, above all, make sure those Little Haiti and those Little Havana areas, we let people know that it's important to be counted because that's how the distribution of Federal Government is done. Also, it's how the private sector makes decision in how to establish and where to go and set up businesses. So, I think it's very important that our Planning Department works very closely with the Census Bureau to do so. And, I think that will give us the formula with the neighborhoods, where the needs are. And I agree with Commissioner Teele, there's some places we need to work a lot more than other places. We need to make sure we do that. Now, we have some decisions to be made. I have to be out of here by 3:30. I have to tell you that. I thought this was going to be a morning meeting. 71 November 30, 1999 Commissioner Teele: Tell us the motions you want us to make, Mr. Chairman. Vice Chairman Gort: You guys are running the meeting. You tell me what the —1 think -- do we need any motion on the second... Ms. Warren: Yes, sir. Vice Chairman Gort: Item 2. Ms. Warren: On the extension of the Housing Agencies through March, you would need to make a motion on doing that. Additionally, there was some information -- recommendations from Commissioner Winton regarding the three agencies that... Vice Chairman Gort: Right. Ms. Warren: ...staff come back and put some information for them to get... Vice Chairman Gort: Question that I have. Commissioner Teele: Would you tell us, before we make that motion, when can we expect the RFP's or the recommendations of the management on the Housing program? Ms. Warren: You can expect at the 14th meeting. We will work straight through. Commissioner Teele: The fourteenth of December? Ms. Warren: The 14th of December. And what you will have is recommendations on land acquisition, administration and... Commissioner Teele: Ms. Warren? Ms. Warren: Yes sir. Commissioner Teele: Let me do you a favor. Ms. Warren: You want to move it to... Commissioner Teele: Why don't you do it on January 13? Ms. Warren: That would be fine with me. Commissioner Teele: I mean, give yourself the time so we can think it through; get it all done right; get notices out there, and make sure that everybody -- and have a chance to meet with the Community Development Advisory Board on these. I mean, you know, it — I realize and I appreciate — I really do appreciate your sense of trying to respond to us now, but it's going to take you a good week just to do the public sector coordination. We've got a Community Advisory Committee that's supposed to, basically, make those -- review those recommendations. I would hope that they're here. I see Mrs. Kluger here, who's here, I assume, in your capacity as one of the leaders of the Community Development Committee. So, I would ask -- if you can do it on the 14th, great. But I would... Ms. Warren: January would be definitely preferred. It would allow us to meet with our advisory board. 72 November 30, 1999 Commissioner Teele: I would move that they be extended through to March the 30th, with the understanding that, within the month of January, the Commission will act on these recommendations for the full year. That's for a full... Ms. Warren: The balance of the funds... Commissioner Teele: The balance of the year. Ms. Warren: ...available in the RFP pools. Yes. Commissioner Teele: I would so move. Vice Chairman Gort: Wait a minute. Hold it. Commissioner Teele: That's just on the Housing component. Ms. Warren: OK. I would just have to... Vice Chairman Gort: The question on the Housing department. The RFP's can — the people have to come back — the agents have to come back with specific projects? Ms. Warren: The RFP's have already been received. They're in the department: The City has already let out the RFP. The RFP's have been returned. The balance of the funding available in Housing is what's indicated on this letter, and we would be making recommendations based on that. Also, just to remind you, that is for Land Acquisition and other related Housing costs. The Brick and Mortar projects have to go to the Loan Committee. Vice Chairman Gort: Right. I understand that. Ms. Warren: OK. They would not be back on January 13th. Vice Chairman Gort: You're talking about administration funding they needed... Ms. Warren: Yes, sir. Vice Chairman Gort: ... for land acquisition? Ms. Warren: And land acquisition. Vice Chairman Gort: That's what the RFP is for? Ms. Warren: Yes, sir. Vice Chairman Gort: And what's the total amount that was set forth? Ms. Warren: The total that was amount under CDBG alone was nine hundred and ninety-four thousand. Vice Chairman Gort: Now, we had two different agencies here that made presentation, that they needed additional funding. CODEC was one of them and ABDA was another one, is my understanding. In the formula you allocated... 73 November 30, 1999 Ms. Warren: Staff would... Vice Chairman Gort: Your motion is? Commissioner Regalado: The motion... Vice Chairman Gort: Commissioner Teele, your motion is to continue the funding to March the -- until March, at the same level or with an increase that's being requested by some of the... Commissioner Teele: With the level that has been outlined and noticed in the various publications. And further, as it relates to the two organizations -- well, there's going to be a separate motion by Commissioner Winton, I suppose, on those three organizations that are in question. And, then, as it relates to CODEC, I would like to have a separate motion at a.... Vice Chairman Gort: And I have another separate motion that the — the memo that I sent about ABDA, which is one of the ones that is performing in Allapattah, OK? Is the motion understood? Commissioner Regalado: You're going to make a different motion? Vice Chairman Gort: That will have to be made later because it will have to be advertised. All right. Mr. Vilarello: Mr. Chairman. Vice Chairman Gott: We're on the same line now. Mr. Vilarello: I would ask that you make a last call for the closure of the public hearing on the Housing portion of the discussion. Vice Chairman Gort: OK. We'll now close the public hearing on the Housing portion and we have a motion and a second. Do you understand the motion? Mr. Vilarello: Yes. Vice Chairman Gort: OK. You wanted the... Commissioner Regalado: Before you close the... Vice Chairman Gort: Discussion. Commissioner Regalado: Mr. Chairman, before you close the public hearing. If we want to bring a motion for Capital Improvement, would that — does it have to be included on this public hearing, Mr. City Attorney? Mr. City Attorney? Mr. Vilarello: Yes, sir Commissioner Regalado: If I want to make a motion for Capital Improvement.on an agency, do we need to continue with the public hearing or we... . Mr. Vilarello: Commissioner, is it an item that has been noticed on the public — is it an item that is before this City Commission in an allocation already? 74 November 30, 1999 Commissioner Regalado: It's an item that is not -- well, it's part. It's just an increase for Capital Improvement. Vice Chairman Gort: An additional request. Commissioner Regalado: It's an addition of some money being allocated. It's a motion for Capital Improvement, not Social Service. Capital Improvements. Mr. Vilarello: In the Housing category? Is that... Commissioner Regalado: No, in the Social Service category. Commissioner Teele: But Capital Improvement... Vice Chairman Gort: It's separate from Social Service. Mr. Warshaw: Public Facilities. Commissioner Teele: ...is a separate category from Housing or Public Service. There's Housing... Vice. Chairman Gort: There's a line item for Capital Improvements. Mr. Warshaw: Public Facilities/Capital Improvements. Ms. Warren: And to answer your question, Commissioner. At the top of your second page, you have allocated your Public Facilities. If what you chose to do is either take some of the monies out of the RFP pool that's non-social service and/or decrease funding to another Public Facilities agency... Mr. Vilarello: Or from the one seventy-five that you set aside. Ms. Warren: ...or from the one seventy-five, you could do that. Commissioner Regalado: I want to do that from the one seventy-five. That's what -- do you need a motion, Mr. Chairman? Vice Chairman Gort: Not right now. Now, we need to vote on the motion that's on the floor today. That is on the floor right now. I beg your pardon? Mr. Maria J. Argudin (Assistant City Clerk): You need a second. Vice Chairman Gort: Winton seconded. Commissioner Winton: Second. Vice Chairman Gort: Any further discussion? Commissioner Regalado: You're making — Mr. Chairman, just to make sure because -- you're making a different motion for agencies that are requesting more funds to continue operation until March. Is that what you're doing? You're making... 75 November 30, 1999 Vice Chairman Gort: That is what we are approving today. We're approving the Housing Administration funding to continue until March. Commissioner Regalado: No, no. But the motion by Commissioner Teele was as recommended by the administration. Vice Chairman Gort: Correct. Commissioner Regalado: You said that you would make a separate motion for a certain agency that — or two agencies that are requesting funds. Vice Chairman Gort: That's correct. Commissioner Regalado: OK. Vice Chairman Gort: All right. Any further discussion? Being none, all in favor state by saying "aye." The Commission (Collectively): Aye. Vice Chairman Gort: No nays. Thank you. The following resolution was introduced by Commissioner Teele, who moved its adoption: RESOLUTION NO. 99-912 A RESOLUTION OF THE NIIANII CITY COMMISSION ALLOCATING THE AMOUNT OF $320,020 OF TWENTY- FIFTH (25TH) YEAR COMMUNITY DEVELOPMENT BLOCK GRANT ("CDBG") FUNDS TO CONTINUE THROUGH MARCH 31, 2000, FUNDING FOR THE EXISTING AGENCIES PROVIDING HOUSING ACTIVITIES THAT HAVE SATISFIED PERFORMANCE REQUIREMENTS OF 24TH YEAR CDBG CONTRACTS; FURTHER AUTHORIZING THE CITY MANAGER TO AMEND AND ENTER INTO INDIVIDUAL AGREEMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH SAID AGENCIES PROVIDING HOUSING ACTIVITIES IN THE AMOUNTS SPECIFIED HEREIN 76 November 30, 1999 (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Commissioner Winton, the resolution 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: Commissioner Winton. Commissioner Winton: And I guess we need a motion, then, on the discussion we had before lunch, and that was to look to staff to figure out a way to find funding for the Coconut Grove, LDC, the Edgewater -- and my apologies. I don't... Mr. Warshaw: And Rafael... Commissioner Winton: And the Rafael Hernandez CDC under the Housing category, to figure out mechanism to provide funding for them this coming year. But in addition to that, looking to staff to also make significant recommendations in terms of how we monitor, on a routine process, monitor performance of each of those agencies, literally, on a monthly basis, so that we hit performance standards or pull the funding. Commissioner Teele: Second the motion. Ms. Warren: So, the recom... Vice Chairman Gort: It's been moved and second. Any discussion? Commissioner Teele: Mr. Chairman? Ms. Warren: Clarification. Commissioner Teele: I would further request the maker of the motion to ask that those agencies not seek additional Housing dollar funding for programs until they have come off this... Ms. Warren: Technical assistance. Commissioner Teele: ...this watch -- this technical assistance. In other words... Commissioner Winton: Absolutely. Commissioner Teele: And what — I would assume that the intent of the motion is to carry them through for the full year as opposed to March — through March? 77 November 30, 1999 Commissioner Winton: And... Commissioner Teele: Under a technical assistance and watch order, if you will, or support. Commissioner Winton: Correct. And giving staff and us the authorization to actually review progress on a monthly basis. We might get halfway through the year and determine that it simply isn't working for a particular agency. Commissioner Teele: So, built into the motion is the intent that, in effect, they would be'funded on a month to month basis, through the end of the year, assuming they perform? Commissioner Winton:. Assuming they perform. Commissioner Teele: In other words, they don't have a contract now that carries them for a full... Commissioner Winton: Right. Commissioner Winton: ...12 months or for the full fiscal year? It's subject to a month to month review and subject to the funding? Commissioner Winton: Correct. Mr. Vilarello: Commissioner, if I may. I think the agreement can simply -be an agreement for that additional year, subject to the performance monitoring by the department, with the authority to terminate the contract if they don't meet those performance. Commissioner Teele: That's a better way to say it. Mr. Vilarello: Instead of coming back. Vice Chairman Gort: OK. Is there any further discussion? Being none, all in favor, state by saying "aye." The Commission Collectively): Aye. 78 November 30, 1999 The following motion was introduced by Commissioner Winton, who moved its adoption: MOTION NO.99-913 A MOTION DIRECTING THE CITY MANAGER TO ALLOCATE ADDITIONAL FUNDS FOR THE REMAINDER OF THE YEAR, FROM THE HOUSING RFP POOL ($994,968) 25"' YEAR CDBG FUNDS FOR COCONUT GROVE LOCAL DEVELOPMENT CORPORATION, EDGEWATER ECONOMIC DEVELOPMENT CORPORATION, AND THE RAFAEL HERNANDEZ HOUSING AND ECONOMIC DEVELOPMENT CORPORATION FOR THE PURPOSE OF PROVIDING TECHNICAL ASSISTANCE AND CAPACITY BUILDING TO THOSE AGENCIES WHICH HAD NOT MET PROGRAMMATIC REQUIREMENTS; SUBJECT TO PERFORMANCE MONITORING BY THE COMMUNITY DEVELOPMENT DEPARTMENT WITH AUTHORITY TO TERMINATE THE CONTRACT; FURTHER DIRECTING THE MANAGER TO PROVIDE PUBLICATION OF PROPER PUBLIC NOTICES AND BRING THIS ISSUE BACK ON DECEMBER 14, 1999 FOR FINAL ACTION. 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: I'd also like to make a suggestion. We also have a lot of major corporations that receive a lot of benefits from the City of Miami and developers. Why don't we talk to them and part of — sometimes we give grants and we facilitate funds for their projects. Part of the request should be that they adopt one of those agencies and work with them to make sure they do the right job, OK? • Any further — motion — Commissioner Teele, were you going to make a motion on CODEC? Commissioner Teele: Mr. Chairman, I would ask that the Manager come back on December 14 with a recommendation, in writing, regarding the request of CODEC, in light of the significant funding that they have and their need for additional administrative support and, perhaps, impact fee dollars to move forward their project. I would so move that you — the Manager come back on December 14th. Vice Chairman Gort: Do you need a motion for that? It's moved. Second. Commissioner Regalado: Second. Vice Chairman Gort: Discussion? Being none, all in favor, state by saying "aye." 79 November 30, 1999 The Commission (Collectively): Aye. The following motion was introduced by Commissioner Teele, who moved its adoption: MOTION NO. 99-914 A MOTION DIRECTING THE CITY MANAGER TO COME BACK AT THE MEETING OF DECEMBER 14, 1999 WITH WRITTEN RECOMMENDATIONS REGARDING REQUEST OF CODEC, INC. FOR ADDITIONAL FUNDING FOR ADMINISTRATIVE SUPPORT TO SAID AGENCY TO CONTINUE ITS HOUSING ACTIVITIES. 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: No nays. OK. That takes care of the -- what else do we need, Mr. Manager? Commissioner Regalado: You need to make... Ms. Warren: Commissioner... Mr. Warshaw: ... do a motion on the... Ms. Warren: Roof. Commissioner Regalado: You need to make... Mr. Warshaw: Wynwood. Commissioner Regalado: Yeah. But are we... Commissioner Teele: But I thought he covered all three. Vice Chairman Gort: He covered all three of them. Commissioner Regalado: No, no, no, no, no. Ms. Warren: No. This is a separate one. Commissioner Regalado: This is different. This is Capital Improvements. 80 November 30, 1999 Vice Chairman Gort: Oh, this is on the Capital Improvements, OK. But we have to close -- let's close this first. Commissioner Regalado: You're done with the motion to... Vice Chairman Gort: Yes. Commissioner Regalado: For the request of the money? Vice Chairman Gort: Yes. For Housing, yes. Commissioner Regalado: For Housing. Vice Chairman Gort: Yes. Commissioner Regalado: Then, I'd like to make two motions, actually. But one is that the Commission will allocate twenty thousand five hundred dollars ($20,500) out of the one hundred and seventy-five thousand dollars ($175,000) City Commission Set Aside for Capital Improvement to fix the roof and other facilities for the Association for Development of Exceptional. It's a very... Commissioner Teele: Second the motion. Commissioner Sanchez:- Second. Commissioner.Regalado: ...good program in Wynwood. Vice Chairman Gort: It's been moved and second. Any discussion? Commissioner Teele: Now, this requires there be a notice? Ms. Warren: We'll bring it back on the 14th. Commissioner Teele: And you'll bring it back on the 14th, correct? Ms. Warren: Correct. Commissioner Teele: And, please, show where the money is coming from and the amount that we're proposing to put into it. Ms. Warren: Yes, sir. Commissioner Teele: Please. Commissioner Regalado: The money, I guess, is coming from the hundred and seventy-five thousand dollars ($175,000) set aside by the Commission on the last meeting and -- because there is an urgent need for this. Commissioner Teele: You got it. Commissioner Regalado: I know. .But when would the money -be available, the money itself, to begin 81 November 30, 1999 construction? Ms. Warren: We will expedite it as rapidly as possible. Probably, up to two weeks after you actually approve it on the 14th. Commissioner Regalado: OK. Ms. Warren: By the beginning of the year. Commissioner Regalado: So, that would be my motion, Mr. Chairman. That is the motion. Vice Chairman Gort: OK. Commissioner Teele: Call the question. Vice Chairman Gort: All in favor state by saying "aye." The Commission (Collectively): Aye. Vice Chairman Gort: Any nays? No nays. The following motion was introduced by Commissioner Regalado, who moved its adoption: MOTION NO.99-915 A MOTION DIRECTING THE CITY MANAGER TO ALLOCATE FUNDING IN THE AMOUNT OF $25,000 FROM THE $175,000 RESULTING FROM THE COMMISSION SET ASIDE POOL ESTABLISHED AT THE NOVEMBER 16, 1999 COMMISSION METING, SAID AMOUNT TO REPAIR ROOF AND OTHER FACILITIES FOR THE ASSOCIATION OF -DEVELOPMENT OF THE EXCEPTIONAL; FURTHER DIRECTING THE MANAGER TO HAVE PROPER NOTICES PUBLISHED AND BRING THIS ISSUE BACK ON DECEMBER 14, 1999 FOR FINAL ACTION. Upon being seconded by Commissioner Teele, 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. Commissioner Regalado: Another motion. Centro Hispano Catolico, also in Wynwood, is trying to build a new center and they've gotten some help from the Knight Foundation and other groups. I urge the City Commission to help them in -- by whoever has visited Centro Hispano Catolico and has seen the services 82 November 30, 1999 that they have for poor kids and the waiting list that they have, I'm sure they will. I don't know how much the Commission wants to approve for this project, but I will tell you that whatever that you wish. to approve -- this is not my district. I'm sorry. Commissioners Teele and Winton. But I've visited Centro Hispano so many times and this is a major project. So... Commissioner Teele: The problem is, is that there's an RFP process. Ms. Warren: Correct. Commissioner Teele: Did they apply? Commissioner Regalado: I don't know if they applied. Ms. Warren: We can look into it for you. We can look into it for you. Commissioner Regalado: OK. Ms. Warren: We don't know if they did or not. Commissioner Regalado: I don't know if they apply. And my question is, if the Commission were to approve some of the money from the set aside amount... Commissioner Teele: The only amount we've approved is the amount you have moved out. Commissioner Regalado: Yes, I know. But if I said — if we were to, do they need to use that money immediately or they can go on with the fundraising efforts, Mr. City Attorney? And because they need an amount that we cannot give them to build a new center. Mr. Vilarello: Commissioner, I really -- I understand that this is not an agency that's currently being funded. I don't have enough information to answer your question. Certainly, if there's ultimately an allocation of funds, we can condition the expenditure of those funds in a contract, if this Commission approves it, to expend it at some time at a later date. But I really don't have enough information to give you guidance. Commissioner Regalado: Is Centro Hispano not funded? Yes, it is. Ms. Warren: I think they're funded as a Social Service agency. Commissioner Regalado: They are. They are funded. Ms. Warren: They have... Commissioner Regalado: This is an agency that has been in the pipeline here for 20 years. Ms. Warren: They... Mr. Vilarello: You're suggesting that, I guess, Capital Improvement... Commissioner Regalado: I'm suggesting from the Capital Improvement to approve some money. I don't know how much the Commission wants to do it. If they want to notice this and come back. I will tell you that, I'm sure that some of the people from Centro Hispano have been meeting with Commissioner, I think — I think that they have an appointment with you, Commissioner Winton, so they told me, in the next days. 83 November 30, 1999 But it is worth to try and help them. So, I would ask to come back on the 14th. Ms. Warren: OK. Yeah, we'd like to talk to them and look at the project. Commissioner Winton: OK. And may I make a comment on that? And I don't want to be the Grench that Stole Christmas, and I'm sure this agency is a very worthwhile agency, and I just got a copy of their request here in front of me, where they're looking for four hundred thousand dollars ($400,000.00) in Capital Improvement dollars and, frankly, I think that what's bothersome to me simply is process. Because I know that we have -- it's clear, just listening to the frustration at this table, we have many more needs that are out there than we have dollars to meet, and in every single district. And, so, from a policymaking standpoint, I think that there — and there are exceptions to all rules. No question about it. And a classic example is the thing that happened with the De Hostos Senior Citizen Feeding Center yesterday. You know, there's an emergency, a crisis, and the City needed to step up and do something and you all have done that very graciously. However, this is a different issue. This is for facilities and while the need may be great and the need may be terribly significant, it seems to me that this needs to go into the normal process that you all have established for weighing the relative importance of this project, compared to all the other projects out there. And in that weighing process, when there aren't enough dollars to go around — you know, somebody gets money and somebody doesn't. And I guess this is one of those because it is simply bricks and mortars that I really think ought to go through the normal process where its relative worth is weighed against the relative worth of all the other needy projects out there that need bricks and mortar. Commissioner Regalado: Commissioner, that's what I said, that it is at the will of the Commission. I just suggested that because I think that is a program that we all — all of us... Commissioner Winton: 'Then, I misunderstood. My apologies. I agree with you, then. Commissioner Regalado: ...should see. So, I'll just wait for the administration to come back with a recommendation. Vice Chairman Gort: OK. Commissioner Teele: All right. Vice Chairman Gort: What else do we need to make a decision? Commissioner Teele: Mr. Chairman? Vice Chairman Gort: Yes. Commissioner Teele: We have an agenda here now. I want to be very clear. Madam Director, the Economic Development allocation is one point three. Have we approved that? Ms. Warren: Where are we at, sir? Commissioner Regalado: No, we have not. Commissioner Teele: That's the first item on here. Ms. Warren: Yes, you have. Commissioner Teele: We've previously approved that? 84 November 30, 1999 Ms. Warren: You have previously approved the Economic — the area you approved, the Economic Development projects... Commissioner Teele: OK. I just want to be clear. We've approved the one point three... Ms. Warren: Yes, you have. Commissioner Teele: ...nine million dollars ($1,390,000) to Economic Development? Ms. Warren: Yes, you have. Commissioner Teele: Could you provide, at the next meeting, a color -coded chart to show exactly how much of the Economic Development money went by target areas, OK? Ms. Warren: Yes, I can. Commissioner Teele: And one of the things that we're going to have to get is a definition of what is citywide because a lot of people have figured out, the game here is to call yourself citywide. And if you're servicing one target area, that's not citywide. And we need to have — Mr. Attorney, Madam Director, we need to have a clear standard on how you qualify as citywide. But we've done that. We've approved the Housing... Ms. Warren: Yes, sir. Commissioner Teele: ...as of now. Ms. Warren: Yes, sir. Commissioner Teele: And that's a total of hundred and eighty-five thousand? Ms. Warren: You approved hundred and eight -five thousand and today you approved an additional three hundred and -- what is it, Dan? Commissioner Teele: Well, plus whatever we've done. Ms. Warren: Yeah. Plus the extension Commissioner Teele: Now, on the Public Service. Have we approved the Public Service previously? Ms. Warren: You've approved the two million five Public Service previously. Commissioner Teele: OK. And on the Public Facilities, have we approved that? Ms. Warren: You've approved that previously. You've approved the administration previously. What you did not approved to date is the three — the four -- the proposed use for the balance of your RFP pool. You have currently remain... Commissioner Teele: I would move the Manager's recommendation of the proposed use of the balance of the pool, provided that funds from any of these categories are available for Historic Preservation projects. 85 November 30, 1999 Ms. Warren: I guess it will come out of the Housing category. Yes, sir. Commissioner Sanchez: What will it come out oV Ms. Warren: Housing, unless you want to take some from the other areas. Commissioner Teele: No. Commissioner Sanchez: Uh-huh. Commissioner Teele: I don't want to take anything from anywhere. I'm just saying, if somebody applied... Ms. Warren: It would come out of Housing. Yes. Commissioner Teele: ...it would come out some of those categories. Ms. Warren: Yes, sir. Commissioner Sanchez: Put a cap on it. Ms. Warren: It's currently... . Commissioner Sanchez: Wait, wait, wait. Ms. Warren: ... in the RFP and it would be under the Housing category and we have received proposals. Commissioner Teele: Well, the RFP's have already closed. I mean,'they closed 90 — 60 days ago, didn't they? Ms. Warren: We have received proposals in the area of Historic Preservation, and they would Come out of the Housing category if you approved them. Commissioner Teele: OK. Well, with the understanding that Historical Funding/Housing/Historical -- that the Housing category includes Historic Preservation Projects. Ms. Warren: Yes, sir. Commissioner Teele: I would so move the Manager's recommendation. Vice Chairman Gort: It's been moved. Is there a second? Commissioner Regalado: Second. Vice Chairman Gort: Second. Any discussion? Being none, all in favor, state by saying "aye." The Commission (Collectively): Aye. Vice Chairman Gort: No nays. 86 November 30, 1999 The following motion was introduced by Commissioner Teele, who moved its adoption: MOTION NO.99-916 A MOTION APPROVING THE CITY MANAGER'S RECOMMENDATIONS OF THE PROPOSED USAGE OF THE $994,968 BALANCE FROM THE HOUSING RFP POOL, SUBJECT TO FUNDS FROM ANY OF THESE CATEGORIES BEING MADE AVAILABLE FOR HISTORIC PRESERVATION PROJECTS. 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. Commissioner Regalado: Mr. Chairman? Vice Chairman Gort: Going back to Economic Development. Yes, sir. Commissioner Sanchez: That's two point seven million? Commissioner Teele: No, the total amount. Commissioner Regalado: On Economic Development... Commissioner Sanchez: Two point seven. Commissioner Teele: Two point seven less this. Commissioner Regalado: ...I don't see the money allocated for the Flagami Facade program on the regular budget for the center, Small Business Opportunity Center. Ms. Warren: It was a special project. If you want to, a one-time allocation. If the Commission chooses to extend it... Commissioner Regalado: It's a one-time allocation, fifty thousand dollars ($50,000), that was approved by the Commission, by the way. Vice Chairman Gort: Excuse me. That was my understanding. Ms. Warren: And it came out of the 24th Year. 87 November 30, 1999 i. Vice Chairman Gort: My understanding, we approved it on the last meeting. Commissioner Regalado: No, we did not. No, we did not. Commissioner Teele: I would second the motion. Commissioner Regalado: No, we did not approve it. Commissioner Teele: What are you moving? Commissioner Regalado: I'm moving a one-time allocation for the Facade Program that was approved by this Commission for Southwest 8th Street, west of... Commissioner Teele: I thought we approved that. Commissioner Regalado: ...of 27th Avenue. No, we did not. Vice Chairman Gort: I was under the impression we did. Commissioner Sanchez: We did approve that. Commissioner Teele: Well, why can't we approve it again? Second the motion. Commissioner Sanchez: Just to be safe. Commissioner Winton: Second. Commissioner Teele: What's the big deal? Vice Chairman Gort: It's been moved and second. Commissioner Sanchez: Just to be on the safe side. Vice Chairman Gort: Any discussion? Commissioner Regalado: It's not being on the safe on the side. Vice Chairman Gort: Excuse me. Any further discussion? Commissioner Regalado:. It's that there is no money. Vice Chairman Gort: Hey? Commissioner Regalado: They are being told it's no money. I mean, if you tell me that the money is available, I will not move anything. Ms. Warren: Again... Commissioner Teele: They were supposed to come back with a report and to quantify the amount of money that was required. I mean, because you were trying to say... 88 November 30, 1999 Commissioner Regalado: Fifty thousand dollars ($50,000). Commissioner Teele: No. You tried to say it was a certain amount and there — the discussion was, it may be more or it may be less, and let's quantify what the project is. Vice Chairman Gort: How much it was? How much you needed? If you all recall, we stated... Commissioner Regalado: Yeah. But we have a problem, Commissioner. Vice Chairman Gort: Commissioner? Regalado? Excuse me. We stated that we have a hundred and seventy-five thousand dollars ($175,000) that we pulled from other programs, that were available for this type of funding. Commissioner Teele: I thought it's for... Vice Chairman Gort: We asked staff to come back... Commissioner Teele: ... the Fire Department. Vice Chairman Gort: Right. Commissioner Teele: You took it from the Fire Department, I thought. Vice Chairman Gort: And some other user. Mr. Warshaw: And Economic Development. Vice Chairman Gort: And Economic Development. Commissioner Regalado: Economic Development. Commissioner Teele: And Economic Development. Commissioner Regalado: OK. What I'm saying is -- Mr. Chairman, what I'm saying is that there are several projects on the way and the process cannot wait. People have to be paid. I'm just saying. If you tell me that they have the money available, fine with me. But I'm trying to bring this motion because there is no money. No money for that project. No money has been given to them. No money has been allocated. Unless I get bad information... Ms. Warren: No, you're correct. Dan has just indicated that we gave them money to carry them through November 30th. They have -- and you need to allocate additional money for them right now. Ms. Warren: November 30th is when? Ms. Warren: Today, sir. Commissioner Regalado: So, what do we do? Ms. Warren: You just made a... 89 November 30, 1999 Commissioner Regalado: But I'm telling the rest of the members of the Commission that there is no money, that we did approve until November 30, and that there is no money. It's starting tomorrow for those projects. Who, by the way, are on the way already. So, we need the money. 1'm... Ms. Warren: So, you would allocate, if that's your intent, the fifty thousand... Commissioner Regalado: My intent is to allocate fifty thousand dollars ($50,000) for the Southwest 8th Street Facade Program. Ms. Warren: It would come from the Economic Development RFP Pool indicated on this letter. And if you approve that, we will reduce it by fifty thousand dollars ($50,000). Mr. Warshaw: It can come from the Economic Development Pool or... Ms. Warren: Or the set aside. Mr. Warshaw: ...hundred and seventy-five thousand, which has now been reduced. Ms. Warren: Or your set aside. Either way. Commissioner Sanchez: That hundred and seventy-five thousand is reduced to what? What do you got now since you've been the one... Commissioner Regalado: Hundred and fifty thousand. Commissioner Sanchez: OK. Commissioner Regalado: I'm saying... Vice Chairman Gort: Look. Excuse me. You have your motion, let's pass it, and they will have to get the money and they have to get it to them. Commissioner Regalado: When? Commissioner Winton: We have a motion and a second. Vice Chairman Gort: Well, the problem about the "when," that there's — I don't think they can write the check today or tomorrow. Commissioner Regalado: Willy, the "when" is important. Vice Chairman Gort: OK. Mr. Warshaw: Well, be — Commission, respectively... Commissioner Regalado: Because people are not.... Mr. Warshaw: Before you do the "when"... Vice Chairman Gort: I understand that, but there's a procedure you have to follow. When can you have the check ready? 90 November 30, 1999 Mr. Warshaw: Again, what we would be asking is that you identify the funding... Mr. Warshaw: Funding source now, so we'll know where to take it. Ms. Warren: ... source and direct us and, then, we would expedite a contract. Mr. Warshaw: So, you have two choices: To take it from the Economic Development Pool or... Ms. Warren: Your set aside. Mr. Warshaw: ... from what is now left in the set aside, which is about hundred and fifty thousand. Vice Chairman Gort: It's your motion, sir. What do you want to do? Commissioner Regalado: I'm taking from the set aside fund, the hundred and fifty. And, mind you, I think that, in terms of Public Facilities money, demolition and lot clearance have -- still have a lot of money because you have money from last year. And I think that still you have a lot of money. But, then, that would be up to the Commission. But just to be part of the team, I'm trying — I'm taking that from the set aside amount. So, it's fifty thousand dollars ($50,000) for the Facade Program on Southwest 8th Street, west of 27th Avenue, as approved by the City Commission. Vice Chairman Gort: There's a motion. Is there a second? Commissioner Teele: Second. Vice Chairman Gort: It's been moved and second. Further discussion? Being none... Mr. Warshaw: Just for the record, that they need to get with us right away to sign the contract documentation, so we can get them the money. Commissioner Regalado: They will get with you at 3:30. Vice Chairman Gort: All in favor... Commissioner Regalado: Because, you know what, Mr. Manager... Commissioner Winton: Call the question. Commissioner Regalado: ...the problem is that their project's on the way. Mr. Warshaw: I understand. Commissioner Regalado: And I received a letter... Vice Chairman Gort: Tomas, we're trying to get it done. We want to get it done. Let's vote on it and, then... Commissioner Regalado: Well. I mean, but... Vice Chairman Gort: If we don't vote on it, we're not going to get it done. 91 November 30, 1999 Commissioner Regalado: Let's vote on it. And you guys have to meet with them right away. That's all. Commissioner Sanchez: Let's vote on it. Commissioner Regalado: Let's vote on it. Vice Chairman Gort: All in favor state by saying "aye." The Commission (Collectively): Aye. Vice Chairman Gort: Any nays? No nays. Commissioner Sanchez: One nay. The following motion was introduced by Commissioner Regalado, who moved its adoption: MOTION NO.99-917 A MOTION AUTHORIZING THE CITY MANAGER TO ALLOCATE ADDITIONAL FUNDING IN THE AMOUNT OF $50,000, FROM THE $175,000 COMMISSION SET ASIDE POOL ESTABLISHED BY _ THE COMMISSION AT ITS NOVEMBER 16, 1999 MEETING, FOR THE SMALL BUSINESS OPPORTUNITY CENTERS' FACADE PROGRAM, SERVING THE SOUTHWEST 8'M STREET COMMERCIAL CORRIDOR (WEST OF 27' AVENUE); FURTHER DIRECTING THE MANAGER TO PROVIDE PUBLICATION OF PROPER PUBLIC NOTICES AND BRING THIS ISSUE BACK ON DECEMBER 14, 1999 FOR FINAL ACTION. Upon being seconded by Commissioner Teele, the motion was passed and adopted by the following vote: AYES: Vice Chairman Wifredo Gort Commissioner Tomas Regalado Commissioner Arthur E. Teele, Jr. Commissioner Johnny L. Winton NAYS: Commissioner Joe Sanchez ABSENT: None. Vice Chairman Gort: Economic Development. My understanding is, funds have run out as of today for all the agencies? Ms. Warren: All the Economic Development agencies have been funded through September 30th of the year 2000. This is the available pool for other agencies. Ms. Mary hill: I didn't authorize that. Vice Chairman Gort: In other words, Economic Development has been funded until September 30th of next 92 November 30, 1999 year? Ms. Warren: Of the year 2000. Vice Chairman Gort: I have a memo that I sent to you all requesting additional funding from one of the agencies because of her performance and their past performance. Ms. Warren: The one million three hundred thousand have been approved, and that's taking agencies at their previous funding level through September... Vice Chairman Gort: Right. Ms. Warren: ...of the year 2000. Vice Chairman Gort: At the existing level that you recommended? Ms. Warren: Yes, sir. Vice Chairman Gort: If we want to have any additional funding allocated to any of those agencies... Ms. Warren: It would have to come out of the Economic Development pool and subject to the Commission. Vice Chairman Gort: OK. Commissioner Regalado: Take it. Go ahead. Vice Chairman Gort: Do you have... Commissioner Regalado: Make our day. Commissioner Regalado: ...a memo that I sent to you all requesting the — if we look at ABDA and the performance for the last two to three years beyond, they have gone beyond the performance of their requirements. I think they need, in order to perform, a hundred and forty-two thousand -- an additional forty-two thousand dollars ($42,000). Ms. Warren: If the Commission desired to do that, you could take that from the Economic Development RFP pool or from the balance of your set aside. Vice Chairman Gort: I would like to take it from the balance of the set aside, if it's in agreement with the Commission. Commissioner Sanchez: How much is it? Vice Chairman Gort: Forty-two thousand. An additional forty-two thousand. Commissioner Sanchez: How much? Vice Chairman Gort: Forty-two thousand for ABDA for the performance. They're the top performers and they get under funded. Vice Chairman Gort: Second. 93 November 30, 1999 I� W Vice Chairman Gort: Second. Commissioner Teele: What's the motion? What's the motion? Vice Chairman Gort: Here, give this to Teele. Ms. Warren: That Allapattah Development Corporation receive an additional forty-two thousand, based on performance, and I think the chairperson person is recommending that it come out of the Commission set aside. Commissioner Sanchez: I have a motion. Commissioner Teele: Is there a vote? Vice Chairman Gort: I'm making the motion. You're chairing the meeting. Commissioner Sanchez: Yeah. Commissioner Teele: I so -- motion by Commissioner Gort. Seconded by Commissioner Regalado. On the question. All those in favor, say "aye." The Commission (Collectively): Aye. Commissioner Teele: Those opposed have the same right. The following motion was introduced by Vice Chairman Gort, who moved its adoption: MOTION NO.99-918 A MOTION AUTHORIZING THE CITY MANAGER TO ALLOCATE ADDITIONAL FUNDING IN THE AMOUNT OF $42,000, FROM THE $175,000 COMMISSION SET ASIDE POOL ESTABLISHED BY THE COMMISSION AT ITS NOVEMBER 16, 1999 MEETING, TO ALLAPATTAH BUSINESS DEVELOPMENT ASSOCIATION; FURTHER DIRECTING THE MANAGER TO PROVIDE PUBLICATION OF PROPER PUBLIC NOTICES AND BRING THIS ISSUE BACK ON DECEMBER 14, 1999 FOR FINAL ACTION. 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. 94 November 30, 1999 Vice Chairman Gort: OK. Thank you. Commissioner Teele: Mr. Chairman? Vice Chairman Gort: Yes, sir. Commissioner Teele: Are there any other motions? Commissioner Sanchez: Yes. Twenty thousand dollars ($20,000) allocated to Catholic Charity. So moved. Commissioner Teele: For what? For what? Ms. Warren: For what purpose? Commissioner Regalado: Joe, that's for economic — that's for Capital Improvement for Social Service. Commissioner Sanchez: Never mind. Withdraw. Commissioner Teele: Mr. Chairman? Vice Chairman Gort: Yes, sir. Commissioner Teele: I want -- I'd like to review the funds that have been allocated today, over and above what's here. How much money has gone into Model Cities? Ms. Warren: None. Commissioner Teele: How much money of this newly allocated money has gone into Edison? Ms. Warren: None. Commissioner Teele: How much of this money has gone into Overtown? Ms. Warren: None. Just for the record... Commissioner Teele: I just think that the point here is that, you know, you have in areas that have been traditionally underserved, you know. And what we've got to do is we've got to ride this cart, and I don't object, and I voted in the affirmative for every project that has gone through. I'm particularly concerned about the merchants on 8th Street. I think what happened to them was a function of the Florida Department of Transportation and the County and the Federal Government really not serving — they pay taxes in the City. If we don't take care of them, who is? But, again, I just think that we've really got to figure out -- I thought we had a process, an RFP process. I'm trying to adhere to that. And the only thing that I would ask, is that I would request that the previous Commission decisions relating to the Third Avenue Business Corridor, which have never been funded, Mr. Manager, and the previous decisions related to the ordinance that we have approved on the redevelopment of Park West, which is more in Commissioner Winton's district than mine — all of Park West is in your district — and Overtown, that those matters be put on the agenda for the next meeting and that we deal with those matters and we have the Manager bring us a recommendation. Now, you know, there are a series of issues that we have made agreements on and I think, you know, we need to move forward with that. And I'm only suggesting to you that these are previously legislative commitments. I see in here today that we've approved, again, five hundred thousand dollars 95 November 30, 1999 ($500,000) for the downtown area, another hundred thousand dollars ($100,000) for the downtown area, and another category. What is that other category that we approved it in? Unidentified Speaker: (inaudible) Commissioner Teele: Well, I don't know. But I'm just reading'— I mean, you know, again --I'm just reading from the list. The Downtown Miami Partnership, seventy,' -two thousand seven hundred and fifty -- seventy-two thousand dollars ($72,000). The Flagler Marketplace for downtown, five hundred thousand dollars ($500,000). And, you know, the point that I'm making is that, in this whole Public Facilities area, Liberty City is getting, in this whole Public Facilities area'-- and Commissioner Gort, Commissioner Winton, I'm apologizing to you, personally, because I don't want to make you personally uncomfortable, but what I'm only saying here is that somehow we've got to get this cart righted up. Everybody wants money. You know, the richest people in this town have historically come'to Miami and gotten money from City Hall. I mean, we funded the old news. What do you call it riow? The Freedom Tower. That was a CD float. That was a Community Development float that we gave, to some of the richest people, sheiks, in the world, that have oil interests. That was ten million dollars ($10,000,000) or whatever the number was. Seven million dollars ($7,000,000) of City of Miami money. ; And old habits break hard. And what I'm trying to get everybody to understand is that downtown is a very important part of our community. Coconut Grove is. But so is Model Cities and so is — and these areas and so is Little Haiti. These areas have never gotten their fair share of the money and I've tried to adhere to a process. Mr. Manager, again, I would ask that these funds be brought forth at the next meeting; that the fact of the matter is is that in the whole Public Facilities area, which we're spending four point eight million dollars ($4,800,000), Model Cities. is getting. zero -dollars. Little Haiti is getting zero dollars. And it'll work out, if we all work together. And I'm confident, Commissioner Gort and Commissioner Winton, and my colleagues, that we can work this -- through this process, but we just have to put it on the table. And when it's happening, it's my duty to just say, this is happening. I'm not criticizing. I voted for it and I would vote for it again because those are the priorities that we've had. But we've got to begin -- like in a big ship, we've got to start to steer this thing in a more appropriate direction to ensure that the dollars are flowing properly. Vice Chairman Gort: Commissioner Teele, I want to assure you that the — this problem with the Flagler Street Marketplace, that's something we inherited from a long time ago. Commissioner Regalado: I know. Vice Chairman Gort: That's something that was brought up to the City, and the reason it was brought up to the City is, the downtown area, my understanding in information I received from our Finance Department, pays about 34 percent in taxes and they put in even an additional tax to put the rapid transit. And they felt that if you look at the street and the sidewalks of downtown Miami, they look terrible. And we... I Commissioner Teele: Willie, let me say this. And I want to... Vice Chairman Gort: But let me tell... Commissioner Teele: No, I want to say this'to you. Vice Chairman Gort: We didn't request it. Commissioner Teele: Because you have been the head_ of the DDA, you've done a great job. But I think, in a lot of ways, we have not done the downtown right. I agree. Look, we just took the surcharge, OK. The parking surcharge. I said to every person who has come to me from the downtown — I can't say it to you or Commissioner Winton now because you all are my colleagues. I can only say it here. I'll second any 96 November 30, 1999 motion to take 10 percent of all of the parking money, from hereafter, and dedicate it to downtown. I think that's an appropriate use of funds. Sixty percent, 70 per.... Commissioner Winton: I'll second that motion. Commissioner Teele: Seventy percent of the money that is going to be collected from parking. It's going to be collected downtown and it's not right for us not to put some of that money back. And I've said this, Johnny, in the context, number one, of the Gusman Theater, where we've got a deficit. I've said it in the context of general infrastructure improvement. And I think you — I think that should come from the DDA, as a request. I think it should work its way back up. But I do object... Vice Chairman Gort: I agree with you. Commissioner Teele: ...to taking money from Community Development, you know. And you'd get more money if you did it the other way. Vice Chairman Gort: I agree with you 100 percent and the people downtown agree with you 150 fifty percent, and that's one of the requests that we've had, the surcharge. As a matter of fact, they're now saying 10 percent, no, give us 50 percent. I don't think we're going to be able to do that much. Commissioner Teele: I'm not moving it and it's not an appropriate discussion because it's not on the agenda. This -is limited to Community Development. But I'm only saying, there's a lot of ways we can all get there. It's inappropriate for me to start about taking surtax money and putting it in Model Cities because Model Cities doesn't generate it. But we need to try to create more nexus to dollars and to services and the same thing is true of... Vice Chairman Gort: But what I want to clarify — and I think the downtown people understand this and they understand the importance in working on our neighborhoods. Because I don't care how much money we put into downtown. If we don't fix and improve our neighborhoods, it's not going to help downtown or the City of Miami. So, they're all very much aware that we need to work with the downtown and they're willing to do so. Anything else to come in front of this Commission? Hello? Excuse me? Ms. Warren: No, sir. Vice Chairman Gort: Hello. Can we have our meeting here, please? Is there anything else to come in front of this Commission? Anything else? Mr. Vilarello: Commissioner? No, the resolution was already adopted with regard to... Vice Chairman Gort: We made all the motions that needed to be made? Ms. Warren: Yes, sir. Vice Chairman Gort: OK. Do I have a motion to adjourn? Mr. Vilarello: Well... Commissioner Teele: Mr. Chairman? Commissioner Sanchez: So moved. 97 November 30, 1999 Commissioner Teele: Before you move"to adjourn. Mr. Chairman, there's two matters that I would ask that you put — I did not take public service dollars -- Mr. Chairman? Mr. Manager? Vice Chairman Gort: Go ahead. Commissioner Teele: In the context of public — Mr. Manager? Ms. Warren: Mr. Manager. Mr. Warshaw: I'm sorry. Commissioner Teele: No, I understand. You have a Commissioner there. Vice Chairman Gort: You mean Public Facilities? Commissioner Teele: In the context of public service dollars, I would only request that we look at the issue of the Martin Luther King Parade, which is always a problem, and we make a recommendation in the next Commission meeting on the 14th because we won't have one before that. And if there are public service dollars that are available, I would ask that that be considered. The other issue is in the context of the Miami Gala, and I know that Mr. Simonette is here and I'm not going to... Ms. Warren: Miami Gala? Commissioner Teele: The Miami Gala event, which is, again, scheduled for this Sunday, December 5th, and we'll have to look at that on December 14. I was advised by the City Attorney that I could not bring up any matters, other than the Community Development money, and I'm bringing this up in the context of determining if there are public service dollars available. And those two matters, the Martin Luther Miami Parade and the Miami Gala, if you would work with the staff and make a recommendation in the next meeting, I would be grateful. Vice Chairman Gort: Commissioner Teele, my understanding is, and correct me if I'm wrong, we passed a resolution where we stated that each one of us should have funds allocated and we were to select one social event or parade, or whatever you want to call it, within our district to be funded by — recommended by us. Were the funds allocated for that — do you recall that motion? I think it was about a year ago. We passed it. Mr. Vilarello: Commissioner, I'm being told that there was — the resolution was simply to allow for the waiver of fees under certain circumstances, but we can certainly provide that resolution to each of you again. Vice Chairman Gort: OK. You heard the request from Commissioner Teele? Mr. Warshaw: The Martin Luther King Parade. Vice Chairman Gort: Right. Mr. Warshaw: Yes, we'll look at that. As of now, though, what had been previously was the fee waiver. You would each choose an event. The issue of the funding of in -kind services, that was an issue that, you remember, we tried to bring before the Oversight Board and it was previously rejected, that we were not able to donate any kind of in -kind services for parades, festivals. Vice Chairman Gort: OK. Commissioner Teele. Sir, the public hearing has. been closed, unless the 98 November 30, 1999 I Commissioners ask you a question. Commissioner Sanchez: Mr. Chairman? Vice Chairman Gort: Yes. Commissioner Sanchez: I would like to make a motion to fund twenty thousand dollars ($20,000) to Catholic Charities out of the pool of the RFP and have the City Manager prepare a resolution for the next Commission meeting for approval. Commissioner Regalado: I second. Vice Chairman Gort: It's been moved and second. Does it have to be publicized and brought back? Am I correct? Mr. Vilarello: It'll be -- there will be a notice for the next meeting. Mr. Warshaw: Brought back on the 14th. Commissioner Winton: Commissioner Sanchez, I just have a question. I'm confused. How does that work in terms of the process here? Is there some sort of emergency with Catholic Charities or is there -- what's the issue here? Commissioner Sanchez: Catholic Charities was left out. They did not meet -- they turned the paperwork in late. They were not able to fall under the process. I have identified the problem to the City Manager, also the City Attorney. It is an organization in my community who provides a lot of social services to children in my community, and I don't want that organization to be left out, and I ask each and every one of you to support me on this issue. Commissioner Winton: And have they historically gotten twenty thousand? Commissioner Sanchez: As a matter of fact, they lost more money than twenty thousand dollars ($20,000). How much were they asking? Does anybody know what they were asking for? Commissioner Regalado: Twenty-eight. Commissioner Sanchez: Twenty-eight thousand. So, we'll settle for twenty. Commissioner Winton: Twenty-eight? OK. I understand. Thank you. Commissioner Sanchez: Thank you. Commissioner Regalado: Call the question. Vice Chairman Gort: There's a motion. Second? Commissioner Regalado: Second, second. Vice Chairman Gort: All in favor state by saying "aye." The Commission (Collectively): Aye. 99 November 30, 1999 Commissioner Teele: Discussion. Vice Chairman Gort: Discussion. I'm sorry. Discussion. Commissioner Teele: Mr. Chairman, I'm going to vote for this but the time to do this is when the RFP's are on the table and you can add anything at that time. I have no objections to.the Manager being instructed to prepare this and to make a recommendation to come forward, but I really do think that it's not fair to anybody else. Because you see, it's going to be a really gut -wrenching kind of thing when you've got three million dollars ($3,000,000) worth of requests and eight hundred thousand dollars ($800,000) worth of money. And taking money off the top like this sounds good. It is good. Who can be against the Catholic Charities in December? I mean, even Scrooge wouldn't do that. But let me remind you that this Commission, at the request of the Arch Bishop; with me leading the charge again, supporting it, cut the entire religious community a huge break on the fire fee. We gave up over two million dollars ($2,000,000) a year in fire fee exemptions that go strictly to churches and religious organizations. I mean, you know, we're doing a lot. And what we've got to be very careful about is that we don't begin to backtrack now and create this image that we're giving away. I think what you're doing is the right thing to do, but I think it's the wrong time. And if this is a recommendation to bring it back, I'll vote for it. But I would ask that, when we bring it back, that it be deferred and we take it up when we take up all of the others in that class, and that's going to be my only request. Is that when we do bring it back on the 14th, that we defer it and we take it up with all of the other packages in that and I'll support it at that time. But I don't think it's fair to everybody else that's in the queue for somebody to run around and get out front, if there's not an emergency. If they -have an emergency... Commissioner Sanchez: I'm not aware of an emergency. Commissioner Teele: So, would you just amend it for that to be a Manager's recommendation, an option for us to vote on, at the time that the package comes in? Commissioner Sanchez: So amended. Commissioner Teele: Thank you. Vice Chairman Gort: OK. Any further discussion? Being none, all in favor state by saying "aye." The Commission (Collectively): Aye. Vice Chairman Gort: No nays. 100 November 30, 1999 The following motion was introduced by Commissioner Sanchez, who moved its adoption: MOTION NO.99-919 A MOTION AUTHORIZING THE CITY MANAGER TO ALLOCATE ADDITIONAL FUNDING IN THE AMOUNT OF $20,000 TO CATHOLIC CHARITIES FROM PUBLIC SERVICES RFP POOL FUNDS; FURTHER DIRECTING THE MANAGER TO HAVE PROPER NOTICES PUBLISHED AND BRING THIS ISSUE BACK ON DECEMBER 14, 1999 FOR FINAL ACTION. (Note for the Record: Commissioner Teele requested of the maker of the motion that when the above -cited item is brought back at the meeting of December 14'', that the award and allocation of dollars be deferred along with the other amounts yet to be awarded from the RFP concerning $632,195 in the public service pool.] 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: Motion to adjourn. Commissioner Teele: So moved, Mr. Chairman. Vice Chairman Gort: Thank you all. 101 November 30, 1999 THERE BEING NO FURTHER BUSINESS TO COMEBEFORE THE CITY COMMISSION, THE MEETING WAS ADJOURNED AT 3:34 P.M. ATTEST: Walter J. Foeman CITY CLERK Maria J. Argudin ASSISTANT CITY CLERK JOE CAROLLO MAYOR 102 November 30, 1999