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HomeMy WebLinkAboutR-90-0028b J-91-10 12/24/90 RESOLUTION NO . _9 A RESOLUTION APPROVING THE CAPITALIZATION OF THE DUE PRINCIPAL AND INTEREST FROM THE COCONUT GROVE PLAYHOUSE, INC., LOAN IN THE AMOUNT OF $200,000 AND, CONDITIONALLY CONVERTING SAID LOAN INTO A GRANT OF $50,400 A YEAR FOR FIVE YEARS REPRESENTING THE CITY'S FINANCIAL CONTRIBUTION TO THE COCONUT GROVE PLAYHOUSE, INC.; FURTHER CONDITIONING THE HEREBY WAIVER OF THE PAYMENT OF PRINCIPAL AND INTEREST TO BE RESCINDED WITHIN NINETY (90) DAYS IN ACCORDANCE WITH THE CALL PROVISIONS OF THE EXISTING AGREEMENT AND FURTHER STIPULATING THAT THE COCONUT GROVE PLAYHOUSE, INC. WILL NOT REQUEST ADDITIONAL FUNDING FROM THE CITY DURING THE TERM OF THIS LOAN; FURTHER PROVIDING THAT ALL OTHER TERMS AND CONDITIONS OF THE AGREEMENT REMAIN IN EFFECT. WHEREAS, the City Commission adopted Resolution No. 86-498 on June 26, 1986, approving an operating capital loan to the Coconut Grove Playhouse, Inc.; and WHEREAS, the Coconut Grove Playhouse, Inc., provides a valuable service to the community through the production and presentation of professional arts and educational activities; and WHEREAS, the City is committed to supporting and promoting programs, organizations and projects that benefit the community; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to capitalize the due principal and interest from the existing loan to the Coconut Grove Playhouse, Inc., in the amount of $200,000 and convert said loan into a grant, as provided herein. Section 2. The principal and interest due would require a payment of $50,400 a year for five years at an interest rate of ten percent (10%), the South Florida Prime rate determined on November 30, 1990, which is hereby conditionallly waived and represents the City's financial contribution of $50,400 a year for five (5) years totaling $252,000. CITY COMMISSION MEETING OF J A N 10 1991 I ffsmu!!OU ft ` 1 ^ =81 -- d-90-89 — 1/11/90 RESOLUTION NO. A RESOLUTION IMPOSING FINANCIAL PENALTIES AGAINST THE CITY'S LICENSEE MIAMI TELE- COMMUNICATIONS, INC. PURSUANT TO ORDINANCE NO. 9332, ADOPTED DECEMBER 17, 1980, THE CITY'S CABLE TELEVISION LICENSE ORDINANCE. y 24 -a WHEREAS, pursuant to the City's Cable Television License Ordinance No. 9332, adopted December 17, 1980, a nonexolusive license was granted to Miami Tele-Communications, Inc. and Amerioable of Greater Miami, Ltd. for the privilege to use the streets and public ways within the municipal boundaries of the City of Miami, Florida, to construct, operate and maintain a cable television system under certain terms and conditions; and WHEREAS, the ourrent licensee is Miami Tele-Communioat ions, Inc. and has been such licensee at all times relevant to the subject of this Resolution; and WHEREAS, serious shortcomings of the licensee have been brought to the attention of the City Commission in regard to (1) interruption of service, (2) failure to establish employment training programs, and (3) lack of minority business enterprise participation; and WHEREAS, in regard to (1). Subsection (b) of Seotion 608 of the Cable Television License Ordinance provides: "The licensee shall maintain a service and repair force of competent technicians capable of responding to subscriber complaints or requests for service within twenty-four (24) hours after receipt of each such complaint of request"; and WHEREAS, Subsections (a) and (b) of Section 709 of the Cable Television License Ordinance provide: CITY COY MISSION 14EIETING OF JAN 11 199D 9Q"' r28 ON lie. " (a) The Licensee shall maintain an office in the City for so lung as it continues to operate the system or any portion thereof and hereby designates such offioe as the place where all notioes, direotions, orders, and requests may be served or delivered under this ordinance. The city manager shall be notified of the location of such office or any change thereof. (b) The office required by subsection (a) of this section shall be open during all usual business hours, have a publicly listed telephone, and be so operated as to receive subsoriber complaints and requests for repairs or adjustments on a twenty-four hour basis. A written log shall, be maintained listing all customers complaints and their disposition."; and WHEREAS, licensee Miami Tele-Commuuioations, Inc. has repeatedly violated Sections 606(b) and 709(b) of Ordinance No. 9332 by virtue of frequent and intermittent system outages of such duration that they can only be attributed to poor maintenanoe and/or laok of competent technical staff; and WHEREAS, in regard to (2), the licensee's failure to establish employment training programs as required by Section 1104 of Ordinance No. 9332, the City Commission finds an almost complete vacuum of effort by the licensee in this regard and finds that no proof exists to support a claim of compliance by the licensee in establishing any of the following programs or their equivalents as required by Section 1104: (1) a cable job training center; (ii) employee on-the-job training courses funded on a oontinuing basis; (III) an internship program for Miami students, with a minimum of ten (10) internships annually in the clerical, technical and management job olassifioations; and (iv) a management training program in all facets of cable system management; and -2- K X, t WHEREAS, the licensee has stated on the record that of the $1,489,000.00 spent during oalendar year 1989 in its procurement of goods, materials, supplies and equipment only $9,000.00 was expended in acquisition of the above from black minority business enterprises despite a prescription in City license Ordinance Section 1108 that 20% of the annual dollar expenditures for such acquisition be prooured through minority business enterprises with the said 20% presumed to be spent equally between black and Hispanic business enterprises; further, the City Commission takes note of the provisions of Seotion 1106 of the License Ordinance mandating that the licensee make "reasonable and good faith efforts" in this area of proourement aotivity; and WHEREAS, licensee Miami Tele-Communications, Inc. has received either actual and/or constructive notioe of all of the above listed violations of Ordinance No. 9332; and WHEREAS, licensee Miami Tele-Communioations, Inc. has not remedied these repeated violations; and WHEREAS, pursuant to Section 1003 of Ordinance 9332, the City Commission in the event of the licensee's individual willful and/or repeated violation of any provision of this Ordinance or failure to take corrective action with respect to a violation of any provision of the ordinanoe may (1) impose a finanoial penalty, not to exceed two thousand five hundred dollars ($2,500.00) per day or per incident; (2) require the lioensee to make payments to its customers or classes of customers in such amount and on suoh basis as the City may deem reasonable; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: # Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference 7 thereto and incorporated herein as if fully set forth in this -= Section. 902s �i ig6 Section 2. Based on the matters presented to the City Commission this date in support of the findings and recitals in Section 1 hereof, the City Commission hereby finds no reason to .impose a lesser penalty than is being imposed herein, said penalty being below the maximum allowed under the provisions of Ordinance No. 9332; accordingly the penalty of $2,500.00 per day is hereby imposed upon the licensee Miami Tele-Communioations, Inc., said penalty commencing effective the 11th day of January, 1990. Section 3. The fines imposed herein shall continue until the licensee comes into compliance with Sections 608, 709, 1104 and 1106 of Ordinance No. 9332 as determined by the City Manager with this matter to be brought back before the City Commission at that time for such action as the City Commission may deem appropriate. Section 4. This Resolution shall become effective immediately upon its adoption and the licensee shall have 30 days from the date of January 25th, 1990 within which to file its appeal from the imposition of the penalty imposed herein. PASSED AND ADOPTED thie llth day o January 1990. XAVIER L. SUARFJ,, MAYO ATT 1 MAT Y HIRAI CITY CLERK PREPARED AND APPROVED BY: A! QU NN JO I I I � DEPUTY CIT TTORNEY AS TO FORM AND CORRECTNESS: 90--0028 Aq 0 O� NUMBER OF CATEGORIZED COMPLAINTS = AGAINST MCV/MTCI FOR 1988/1989 COMPILED BY CITY OF MIAMI CABLE COMMUNICATIONS 1988 1989 - goo 650 600 550 500 450 400 350 300 250 200 150 100 50 0 wM JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC U w b o r; o 'A U U) •'; 90--0028 "DUMBER OF CATEGORIZED COMPLAINTS AGAINST MCV/MTCI FOR 1988/1989 - COMPILED BY CITY OF MIAMI CABLE COMMUNICATIONS 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 1989 TELEPHONE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC a o � cl O O •p � O 90-W28 9028 NUMBER OF CATEGORIZED COMPLAINTS AGAINST MCV/MTCI FOP, 1988/1989 COMPILED BY CITY OF MIAMI CABLE COMMUNICATIONS - 1988 1989 filth] m [0h] CO it 50 30 010 10 SERVICE OUTAGE JAN FEB MAR APR MAY JUN JUL AUG 5EP OCT NOV DEC A x� �1 a 90-0028 NUMBER OF CATEGORIZED COMPLAINTS AGAINST MCV/MTCI FOR 1988//,1 989 COMPILED BY CITY OF MIAMI CABLE COMMUNICATIONS 1988 1989 UNKEPT APPOINTMENT 50 45 40 35 30 25 20 15 10 5 n • U 4 .-, � a o � .a U NUMBER OF CATEGORIZED COMPLAINTS = AGAINST MCV//MTCI FOR 1988/1989 - COMPILED BY CITY OF MIAMI CABLE COMMUNICATIONS 1988 y DISSATISFACTION WITH — na 160 — 150 - 140 130 � 120 — IIO mo 90 80 70 60 50 40 30 20 — 10 a JMl FEB MAR APR MAY JUN JUL 1989 THE COMPANY AUG SEP OCT NOV DEC � �� a o Z o o • U Q •d 90"W 28 90-00 a8 2 CITY OF MIAMI. FLORIDA INTeR-OFFICK MEMORANDUM s To: The Honorable Mayor and Members of the City Commission FROM: A�e4�e Cesar H. Odlo City Manager DATt U O I 6 1 989 fill[: *UIJIKCT: M I am I TC I: Discussion of L -Icensee Performance 12/7/89 Comm. Meeting RRF[!lRNccs:Item w8--10/12/89 Comm. Meeting [wc�otl�aRcs:Repo r t At Its October 12, 1989 meeting, the City Commission reQuested that the City Manager provide a report regarding the performance of Miami Tele-Communlcatlons, Inc., the Cable TV licensee, Including an Investigation of the company's use of local minority -owned Installation contracting businesses and affirmative action practices. The report was transmitted earlier under separate cover to the Mayor and Members of the City Commission. A copy of the report is attached herewith for reference. The City Attorney has reviewed the report to determine whether the City has the right to revoke Miami Tole -Communications, Inc.'s cable television license and Is prepared to discuss the results of said review at the City Commission meeting of December 7, 1989. CHO:MSS Cc: Jorge L. Fernandez 5 :2 CITY OF MIAMi. rLOnInA INTER -OFFICE MEMORANDUM November 1, 1989 TO The Honorable Mayor and PAM Miami TCI: Status Aepdfo Members of the City Commission MOM Ale'� Cesar H. Odio CI ty Manager 1.►xrnprn"; Exhibits (3) ;CtIRIFf;t i i / 1S/89 Comm. meeting retrFrlf.w:Es Item N5 Deferred From 10/12/89 Comm. Meeting Following Is a status report relative to the performance of Miami Tele-Communications, Inc:. the CeTbib TV licensee, since It acquired full ownership in January 1987 of the cable television company serving the citizens of Miami. In 1986, the year prior to the full acquisition of the cable system by Tele-Communlcatlons, Inc. (TCI), the Cable Communications division logged 1,045 categorized complaints from Miami Cablevislon subscribers. At that time. the company had 25.000 subscribers. In 1987. the first year of operation as Miami TCI. the number of categorized complaints rose to 3.767. The number of subscribers also Increased to 32,000. Subscriber dissatisfaction with the Miami cable system was at Its highest level. In December. 1987. the City Commission adopted Resolution No. 87-1139 establishing Cable Television Service Standards for the purpose of reducing complaints and Improving service to Miami TCI subscribers. In 1988, the Cable Communications division received 1.896 categorized complaints against -Miami TCI, representing a reduction of 50%. At the same time. the number o•f subscribers rose to 36.000. In 1989 through the month of September. 1.625 categorized complaints have been logged. with approximately 40.000 subscribers to the system. Taking subscriber Increase Into conslderatlon, the ratio of categorized complaints to the number of cable subscribers for the years 1986, 1988 and 1989 Is vlrtualiy the same for each year. The Imposition and enforcement of service 'standards and the service Improvements made subsequently by Miami TCI were key factors in the reduction of complaints from the high point in 1987. The comparative graphs In Exhibit 1 show the Increase and decrease of complaints by subscribers by month and year. Honorable Mayor and Members of the City Conan 199 Ion -2- Since January 1987, 121 citations have been Issued by Cable Communications division staff to Miami TCI for noncompliance with specific provisions of the City of Miami Cable Television License Ordinance No.9332. None are currently outstanding. In twelve. -'Instances of noncompliance, the City Manager recommended penalties be assessed against Miami TCI'9 security fund for the licensee's failure to correct. the ordinance violation as required. In each Instance, the violation was resolved through negotiation with Miami TCI without the necessity of a hearing before the Cable Television Arbitration Panel. It Is Important to note that almost- 60% of the noncompliance citations Issued to Miami TCI have been for violations concerning maintenance of the system and technical and safety standards. 20% of the citations have been for failure to file Information required by the cable ordinance. The majority of the remainder concern the failure of the licensee to provide service within 30 days of a request for cable service. Subscriber complaints regarding system outages of duration longer than overnight are of concern. It Is highly unusual for a cable system to have so many outages. These evidently result from either poor maintenance of the cable system plant or Incompetent technical staff who can't fix a problem when It does occur. Section 1405 of the cable television license ordinance requires the company to provide rebates of subscriber fees for outages. lasting more than 48 consecutive hours. However, the ordinance does not provide redress for the type of outages that subscribers find particularly frustrating. These are frequent and repeated service outages lasting from 2 minutes to 2 hours and more. Again, It is highly unusual for a cable system to have as many of these frequent, Intermittent outages as staff receives complaints about. Cable Communications division staff has met on numerous occasions with Miami TCI In do effort to resolve the service outage problem. To date, no reasonable explanation from Miami TCI has been forthcoming as to why these: outages continue. Miami TCI'S technical staff seems powerless to stop the outages from occurring. 13 Honorable Mayor and -3- Members of.the City CommissIon Another area of concern Is the frequency of complaints from subscribers having difficulty getting IdIaml TCI to respond to service outages. Subscribers report that Miami TCI has told them that a repair technician will not be sent out unless 15 service outages calls are received from the subscriber's area. Subscribers Dave been told to knock on doors to get their neighbors to call Miami TCI. When questioned by City staff. Miami TCI management Insists that the company policy Is to send a technician out If there are three calls from a power supply area. However, the number 015" continues to occur In cdmpiaint calls' received from subscribers. Section 608 (a) of the license ordinance requires that "the IIcensee shall maintain a servIca bnd repair force of competent technicians capable of responding to subscriber complaints or requests for service within twenty-four (24) hours after receipt of each such complaint or request." The cabin company has received more citations for noncompliance with this provision than it has for any other provision of the cable license ordinance. although Mr. Bello states that Miami TCI's policy Is "same day" repair. Since 60% of the noncompliance citations Issued to Miami TCI have beer for violations concerning maintenance of the system and technical and safety standards. there Is good reason for the City to be concerned about the competency of the cable licensee's technical staff. In a number of Instances. the Miami TCI technical staff has not Indicated knowledge of or familiarity with standard cable television Industry technical practices. This Is especially noticeable In Its Inability to contain outages of less than 24 hours. Also the number of trained technicians Is apparently Inadequate to service Miami TCI's expanded subscriber base. Clearly there Is need for Improvement by the licensee. 4,. Affirmative Action Rraaress Section 1103 (a) of the cable license ordinance requires that the licensee make a positive and good-falth effort to hire minorities, women and other protected groups if available and qualified. Miami TCI provides reports reflecting Its progress toward Meeting equal employment goals on a quarterly basis. supplementing Its required annual report. The Department of Internal Audits and Reviews has prepared an analysis and evaluation of Miami TCI's affirmative action progress which Is attached as Exhlblt 2. I/ 028 Honorable Mayor and -4- Members of the City Commission 8. M i nor'l tv Hus I ness Entgrnr i se Part ig l oat I on Section 1106 of the cable ordinance requires reasonable and good faith efforts by the licensee to procure from or use qualified minority business enterprises for twenty (20) percent of the total dollar amount of any and all contracted expenditures by the licensee (excluding factory direct purchase terms or Items purchased fr•(im a sole source of supply), with the 20 percent equally allocated among black and Hispanic minority business enterprises. Previous reports to the City Commission Indicated that there were discrepancies In the Information relative to Its minority business entPrprlse efforts that the City received from Miami TCI. Additionally, other flnancibl 'Information essential to determine compliance with Section 1106 had not been received from Miami TCI. Miami TCI has now furnished the Information necessary for staff of the. City of Miami Internal Audits and Reviews Department to conduct an on -site audit of Miami TCI to verify the amounts spent by Miami TCI with local minority businesses. Mr. Bello has pledged full cooperation by Miami TCI with the Clty's auditors. Responding to the City's request for specific information to rer,onclle discrepancies, Mr. Bello states In his letter dated October 20, 1989. that In 1988 the total dollar amount of all contracted expenditures by Miami TCI (as defined In Section 1106 of the license ordinance) was $2.997,449. Of this amount, $773.945 went to local minority businesses. Calculdted as a percentage of the total dollar amount. the total amount of minority varticipatlon is 25.7%. (Exhibit 3) With regard to the allocation of participation to black and to Hispanic firms, Mr. Bello states that in 1988. 99% of the company's purchases from minority businesses were from- local Hispanic businesses and 1% from local black businesses. The revised table below compares minority business enterprise participation for the past three years as reported by the cable company: (Miami Cablevlslon) (Miami TCI) Year 1986 1987 0988 Total Expenditures $1,032,189 $2,159,542 $2.997.449 Total Expenditures with Minority Businesses 410,543 572,753 773.945 % Minority Business Enterprise Participation 39,7% 26.5% 25.8% %.Black Participation % Hispanic Participation 15% 2% 1% 85% 98% 99% Honorable Mayor and -5- Members of the City Commisslon As requested by Vice -Mayor De Vurre, Adrienne MacBeth. Coordinator of the Office of Minority/Women Business Affairs, and Merry Sue Smoller, Cable Communlcatlons Administrator, met with Mr. Manuel Gonzalez. President of Miami Cable Connections, a local Hispanic owned business doing contract installation and construction -work for Miami TCI In 1989. Mr. Gonzalez reports that his company has received 40% of the million dollars Miami TCI allocated for contract Installation and constructlon work In 1989. Specifically, from January 21 through October 25 of this year, Miami Cable Connections received $215.933 from Miami TCI for contract Installation work. From February 10 through October 1, Miami Cable Connections received $119,756 for construction work, and hasp $54,982 pending In construction contracts with Miami TCI through December 31. Although currently Miami Cable Connections Is do-Ing only construction work for Miami TCI, Mr. Gonzalez Understands that, beginning January 1, 1990, Installation contract work for Miami TCI will again be available. Miami Cable Connections had 24 employees until August 25, comprlsed.of 15 installers, six construction workers, and three In -•the office and warehouse. Subsequently, the number of employees was reduced to seven persons due to the cessation of Installation Jobs from Miami TCI. Mr. Gonzalez states that 11 of the employees that were laid off found jobs with AMIC, the national company that holds Installation contracts from Miami TCI and are working in Miami, In Storer North territory, and In Miami Beach. The remainder found jobs elsewhere. It was at this time that the City received many complaints from citizens about unreasonable Installation delays -- of up to 291 days. Upon investigation, staff learned that the funds Miami TCI had allocated for InstailatIon had run out, and the company was attempting to make new Installations with In-house staff. Responding to the CIty's,concern, Mr. Betio assured staff that Installations 'would be scheduled no more than two weeks from request for service. Evidently the national Installation c^nmpany, AMIC, was able to transfer contract funds from other TCI systems to pay its employees and could begin making contract Installations again. Mr. Gonzalez could not do so since Mlaml Cable Connections Is solely a lodai business. Mr. Gonzalez strongly expressed to staff that he Is very satisfied with the Miami Cable Connections/Mlaml TCI relationship and Is looking forward to substantial Installation and construction contracts In 1990. However, the cable -licensee's past history with minority owned cable Tv Installation contractors has been dismal. Several of there+ reported experiences no Honorable Mayor and -8- Members of the City Commission similar to Miami Cable Connectlons shut-off of installation contracts. Consequently, they were *starved" out of business. lecom2ndAtions It Is recommended that: 1. The Department of Internal Audits and Reviews should conduct an on -site compliance audit to clarify discrepancies found regarding Section 1103 and Section 1104, and to ensure compliance with specific mandates regarding personnel and training programs. 2. The Department of Internal Audits and Reviews should also conduct an on -site financial atidl*t to alleviate possible discrepancies relative to Section 1106, Minority Business Participation. 3. The City Attorney be requested to work with the Cable Communications division of the Department of Computers, The Department of Internal Audits and Reviews, and the Office of Minority/Women Business Affairs to develop provisions to strengthen and Increase the effectiveness of Section 1406, Minority Business Participation. 4. r The City Attorney be requested to work with the Cable CoirimunIcations division of the Department of Computers to develop provisions to strengthen and increase the effectiveness of the Sections of the Cable Television License Ordinance rotative to and concerning technical and safety standards and maintenance of the cable system, including repeated outages of less than 48 hours. cc: Jorge L. Fernandez CHO :MSS I 7 EXHIBIT 1 NUMBER Of CATEGORIZED COMPLAINTS. AGAINST MCV/MTCl FOR 1986/1987 COMPILED BY CITY OF MIAMI CABLE COMMUNICATIONS 1986 1987 700 650 600 550 500 450 40C 35( A 25( 20! 151 101 5 JAN FEB ?BAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN.15,1987: TCI XQU RES 100% OWMP OF CAM COMMY DUNE 1.1991: TCI BEGINS MAJOR SE1UICEAND TECIINICAL CN aS �y' TOTAL NET MIAMI TCI SUBSCRIBERS BY MONTH FAR 1987/'1988 �re4ue r - L M s� 3M am -x� x� r ien� I= I= � i1M iaoae e>Be e 1987 die JA.N FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 4 F" NUMBER OF CATEGORIZED COMPLAINTS AGAINST MCV/MTCI FOR 1988/1989 COMPILED BY CITY OF MIAMI CABLE. COMMUNICATIONS 1988 1989 %I CXIIIDIT 3. CITY Or MIAml. rLOn1OA INTEROFFICE MEM0nAN©UM to Cesar 0. Odio d��F. October 25, 1989 rllF City Manager 1{VR,FC/: Highlights of Analysis .of Miami TCI Quarterly Report - Affirmative Action Hattie M. Daniels, Director' \ nq.rn�►�rF,: Department of Internal Audi t and Reviews_- FNClorunro• The Department of Internal Audits and Reviews has reviewed the Quarterly Report for the period ending September 31, 1989 submitted by Miami Tele-Communications, Inc. (TCI) relative to Sections 11030 1104, and 1106 of Ordinance 9332 per a request from Commissioner OeYurre. Attached, please find our analysis of said report. The following are highlights of our findings. I. There appeared to be a discrepancy in the total number of employees of TCI (73 vs. 75). The breakdown of employees was 33% Slack, 64% Hispanic, 3% White. females comprised 36% of this group, although acceptable, it remained unchanged. It. Documentation provided proved to be inadequate as TCI failed to include any type of chart exhibiting the salary breakdown among the Affected classes, as well the presence of inconsistencies within the total figures reported. It1. TC1 falls short in fulfilling the mandate of the ordinance which specifies the percentage of each minority/sex group approximate the racial and ethnic composition of the City within each level of employment. A. In the category of Official/Manager, Blacks and ,women are significantly underrepresented at 16.7% each. 8. The Office/Clerical category is comprised of 76% Hispanic, far exceeding the Hispanic representation of the workforce. C. Women remain greatly underrepresented in the Skilled Craft Workers and Semi -Skilled Operatives categories at 12% and 6%, respectively I . As previously stated, a detatled account regarding earning differentials could not be described due to a lack of adequate documentation provided. 1/ a Cesar 14. Odio October 25, 1909 Page 2 A. In the $10,000-S15,000 range, Hispanics comprised 331 and III asks totaled 14%. Whites, however, were not represented in this group, contributing to a 53% gap. R. In _t--he $20,000 and above salary bracket, Males constitute 75% and Females make up 14%, allowing for an 11% inconsistency. Y. Regarding Section 1104, employment training program, no mention of this component was made in the TC1 quarterly Report. vi. Section 1106 relates to the Minority business participation policy. A. TC1 spent $140.515, or 44.6% with local hispanic firms. 4. to this period, $1879, or less than 1%, was spent with local Black firms. Further, no female participation was noted by TC1. The following are our recommendations: 1. The nepartment of Internal Audits and Reviews should conduct an on -site compliance audit to clarify discrepancies found regarding Section 1103 and 1104, and to ensure compliance with specified mandates regarding personnel and training programs. 2. The nepartment of internal Audits And Reviews should also conduct an on -site financial audit to alleviate possible discrepancies relative to Section 1106, Minority business participation. HMO:PE6:ed f Z' CITY OF MIAMI, FLORIDA INIRP-OFFICE MEMORANDUM .e Cesar H. Odio October 25, 1989 City Manager •u•,cc� Analysis of Miami TCI 1989 Quarterly Report Affirmative Action Rattle M. Daniels, Director Department of Internal Audit and Reviews,--- ' - The Department of Internal Audits and Reviews has reviewed the Quarterly Report submitted by iliami Tele-Communications Inc. (TCI), dated October 15, 1989, relative to Sections 1103, 1104, and 1106 of the City of Miami' & Cable Television License Ordinance No. 9332. Section 1103,.Equa I Employment Opportunity, requires the licensee to slake a positive and good faith effort to hire minorities, women and other protected groups if available and qualified. It further stipulates that the licensee make reasonable and good faith efforts to achieve a representative workforce so that within three (3) years from the effective date of said ordinance and throughout the balance of the license terra, the percentage of each minority/sex group within each level of employment be reasonably approximate or equal to the racial and ethnic composition of the City. Each level includes top management, middle management, supervisory, and technical positions. From our preliminary review, there appears to be a discrepancy in the total number of employees of TCI as of 9/31/89, similar to the situation from the previous report. The report submitted by TCI reflects 75, while a count by name and position by the Department of Internal Audits and Reviews reveal only 13 employees, upon which we based this report's data. . the percentage of Blacks 32.9Z increased His anics declined and Whites basically -remained the same ttac men as did the total percentage of females at emplued by_ TC1. in comparison, the available workforce within the City for Blacks is 21%, Hispanics 59%, Whites 20%. and women at 46%. Whites continue to be underrepresented at TCI, and Hispanics and Blacks exceed representation with regards to the general labor market. Although, the overall breakdown of Males (64%) and Females (36%) was acceptarble. the number did not change from the previous reporting period. Cesar H. Odio October 25, 1*989 Page 1 There also appears to be inconsistencies specifically regarding the individual salary ranges. It should be noted that no documentation whatsoever as to the complete breakdown of earning differentials was provided to the Department of Internal Audits and Reviews. ,_-Wowever, TC1 reported that in the S10,000415,000 range, Hispanics represented 33% and Blacks represented 14% of employees. The report reflected that Whites were underrepresented in this category, which raises questions as to which particular group comprises 531 of those in said salary bracket. This situation is also prevalent among employees earning $20,000 and above, with females representing 14% and males representing 75%, reflecting an 11% difference. At the $15,000420,000 pay scale, Hispanics represented 48%. Blacks 45%, Whites 7%, and women as a group totaled 28%. The Ordinance further specifies the percentage of each minority/sex group approximate the racial and ethnic composition of the City within each level of employment. The 12) ob categories delineated by TCI include: (1) Official/Manager; Technical; (3) Office/Clerical; M- Skilled Craft Workers (SCW); and (5) Semi -Skilled Operatives (SSO). In this comparison, TCI is deficient in fulfilling its mandate of the enabling ordinance. In the category Official/Manager, Blacks and women are significantly underrepresented, comprising 16.7% each (Attachments la and lb), as compared to their 21% and 46% participations in the workforce. The Office/Clerical category is comprised of 76% Hispanic, far exceeding the representation in the workforce. Women remain greatly underrepresented in the Skilled Craft Workers and Semi -Skilled Operatives categories at 127E and 6%, respectively. Blacks, on the other hand, continued their progression into these two traditionally dominated areas, constituting 16% and 75% of those employees, respectively. Ordinance No. 9332, Section 1103(d) further stipulates that any significant sub4ontractor of the licensee that does not have an affirmative action plan shall submit to the City Manager .a plan for its operations on behalf of the licensee, consistent with the spirit of this sactioll. No Affirmative Action plans were submitted for evaluation by this Department. 0 L2 Cesar H . Odi o October 25. 1989 Page 3 A listing of personnel by name, race, and sex for various subcontractors was provided by TCI as of September 31, 1989. The subcontractors -And breakdown of personnel is as follows: 1011s Commynicatioprs, Inc. (White Males 50%. Females SO%); Miami Cattle Connection, Inc. (Black Males 20%, Hispanic Males 80%); and CATV AMIC, inc. (Hispanic Males 72%, Black Males 9%, White Males 9%, Females 11%) (Attachments-I1 and 111). Although this Information per subcontractor was provided, it is unclear if these figures represent the total number of employees per firm, or is only reflective of m nor ty employees. A random telephonic survey was conducted by the Department of internal Audits and Reviews regarding names and positions of employees 'for each subcontractor as submitted by TC1. Several discrepancies were discovered. -For Miami Cable Connection, Inc., Ernest Augustine was listed as a Black male. However, it was determined Mr. Augustine instead was White. Instead of reflecting 20% for Black employees, there were none. Further, for Mills Communications, three employees were now employed instead of four, and Natalie Gonzalez, reflected as a Hispanic female, was instead White. Regarding CATV AMiC, inc., the name of Leslie Peart (8F) was reflected twice, once as "Peart" and the other *Preat." Additionally, the employee Jesus Garcia (HM) was reflected- twice, listing him once as an installer and also as an Auditor. Only one Jesus Garcia was employed, and CATV AMIC reported he was an Installer. It is unknown as to whether these discrepancies on each subcontractor were deliberate or unintentional. Section 1104, Employment training program, also stipulates• that the licensee. throughout the entire term of the contract, is to conduct a Job skills and training program to train City residents, particularly unskilled and semi -skilled minority youth for employment, in the cable industry and the licensee. The Quarterly Report submitted by TCI, as did the Annual Report previously submitted, failed to address this trainin3 requirement, and no mention was made as to whether this training component is actively being pursued by TCi. iim U Cesar H. Odio — . October 25 , L989 Page 4 Section 1106, Minority business enterprise participation., policy, stipulates that the licensee shall make reasonable good faith efforts to procure from or use Qualified minority business enterprises for twenty (20) percent of the total dollar amount of any and all contracted expenditures by the licensee, and the twenty (20) "percent was to be allocated equally among minority business enterprises who's ownership of management is Black and Hispanic. A review of TCI's Quarterly Report reflects that they spent a total of $315,240 With local business participation. Of this amount, $140,515, or 44.6%, went to Hispanic firms, while $1879, or less than 1%, went to Black firms (Attachment IV). Also, no female participation was noted. From an analysis of TCI's Quarterly Report, covering the period ending September 31, 1989 relative to compliance with Section 1103, 1104, and 1106 of the Cable Television license Ordinance and the discrepancies discovered to date, the following are actions and recommendations: 1. The Department of Internal Audits and Reviews should conduct an on -site compliance audit to clarify discrepancies found regarding Section 1103 and inadequacies relative to Section 1104, and to ensure compliance with specified mandates regarding personnel and training programs. 2. This Department should also conduct an on -site financial audit to alleviate any possible discrepancies relative to Section 1106, minority business participation. HKD:PEB:ed cc: Angela R. Bellamy, Assistant City Manager Kerry Sue Smoller. Cab -le Communications Administrator a lot EMPLOYEE NAME OFFICIAL/.MANAGER Bello► Anthony Arcay, John Del Aguaro, Steve Farrell, Lancelot Gonzalez, Jorge Valdes, Aida Perez, Felix OFFICE/CLERICAL Brown, Bernice -Caride, John Castellon, Pedro Coe,, Michael Dunbar, Tricia Espinosa, Gladys Fernandez, Carmen Figueroa, Mario Flores, Eduardo Gabriel, Mayelin Garcia, Carmen Grant, Albert Guedes, Julio Hernandez, Lucrtcia Herrera, Maria Lee, Lorna Marti, Henri Martinez, ErneAto Mentore, Andra Mot&, Rosario Nieves, Veronica Ovide, Mona Ospina, Maite Perez, Grisel EMPLOYEE WORKFORCE BY EEO JOB CATEGORY AS OF 01/01/89-03/31/89 ETHNIC/SEX HM HM WM HM HM HF HM BF HM HM HM BF HF HF KM HM HF RF SM HM HF HF BF HM HM BM HF HP BF HF HF POS IT16N/TITLE MIAMI CITY RESIDENT System Manager Commercial Accts. Mngr, X DDP Manager Converter/Warehouse Sup. X Installation Supervisor Office Manager Plant Manager Customer Service Rep. Dispatcher Customer Service Rep. DDP Customer Service Rep. w w w w w w w w w Dispatcher Customer Service Rep. e► w a » M 1! Lead CSR Customer Service Rep. w » N w w w w w � w w w DDP Customer Service Rep. K q » w N M w w w w w w X X X X X X X X X X X X X U OFFICE/CLERICAL ETHNIC,ZSVA Rego, Michael A. HM Reyes, Jackeline HF Rouco, Santa M. HF Ross, Anna or Roudre, Dennisse HF Romer&, Maria T. HF Rubio -Vidal, Elizabeth HF Ruiz, Edna HF Salinas, Celestes HF Simmonds, Linda 8F Tablada, Daniel HM Zamora, Nireya HF SKILLED CRAFT WORKERS - _5CW Acosta, Juan HM Alfonson, Rolando HM Castejon, Jose HM Casseres, Daniel HM Chang, Lawrence BM Grullon, Frank HM IglEsias, Raul HM. Orifice, Joseph HM Rivero, Jose HM ?;exidor, William RM Torres, Elvira HF Varela, Eduardo HM Viera, Angelo HM Villafane, Angel HM Murphy, Vickie WF Mena, Freddie HM Williams, Vernest am 4 SEMI -SKILLED OPERATIVES Suck, Arthur BM Bell, Michael 9M Griggs, Jerome RM Holloway, Ron am Jean-Juste, Kernst SM Lee, Nestor HM Mackey, Rhondy 8M Martin, George am McKinnon, Louie am Morales, Guillermo HM Pablos -Velez Jorge HM Rameau, Guy BM Reyes, Eugenio HM Rigby, Charles am Stubbs, Gary BM MIAMI CITY POSITION RESIDENT Customer Service Rep. x N w N x N w w x w w w x w N w x N N N x N w N x Customer Service Rep. DOP x eustomer Service Rep. Leakage Tech , x Service Technician Leakage Tech Construction Service Technician Service Technician x Service Technician x Trunk/City Tech. Service Technician x Trunk/Tech x Service Technician _ Construction Coordinatorx Line Technician Line Technician x Lead Technician X Service Technician Service Technician x Construction Construction/Draft/Design Installer Installer. x Installer Installer x Installer Converter Technician x Installer Installer x Installer Installer Installer Auditor x �►' Installer x Taboada, Sandra ap Terrelonge# Oswald BM i Converter Clerk Converter Clerk ATTACHMENT I MIIA,Ivfl TELE- COMMUNICATIONS ; INC. EMPLOYMENT- RACE 4SPANIC 61.4-c,,,,' (47) TOTAL= 73 HITE 2.7% (2) BLACK 32-97 (24) I I rm, I ATTACHMENT la NRAMI TELE-COMMUNICATIONS, INC. EMPLOYMENT BY JOB CATEGORY - RACE OFFICIAL/MANAGER HISPANIC 66.7% a 3LACK 16.7% WHITE 16.7% (1) TOTAL = 6 ATTACHMENT lb MIAMI TELE- COMMUNICATIONS, INC. EMPLOYMENT BY JOB CATEGORY - SEX, OFFICIAL/MANAGER MALES 83.3�Pc (5) ffolwfflwo -EMALES 16.7% (1) fl $III �{i'i�IYlul �V �IIIIi�PtlIYI I IIIlVI6III�l�IIIIVIIIIVIIIIVIIlYIHII iN,.�_ i i 100 90 80 70 •• 60 50 40 30 20 10 n c: ATTACHMENT IT SUBCONTRACTOR EMPLOWENT -- RACE WHITE tom%- k: HI'PAINIC mllj-5 MCC SUBCONTRACTOR I ATTACHMENT III SUBCONTRACTOR EMPLOYMENT -SEX MALES FNALES ;E 100 90 80 70 50 50 40 30 20 10 n Ar ATTACHMENT IV MIAMI TELE-COMMUNICATIONS, INC. LOCAL BUSINESS PARTICIPATION NON—MNORITf 54.8% ($172,846) i LACK .6 % .879) HISPANIC 44.6v,,o" ..wr,ww • ..• rn w EXHIBIT 3 KAM TEII-CoWINCA"4. 1:k06 H(VIIMN%l 7114 nVrMIF K4 A M. rl(" A 3.11 Xt (.'10.4j 37.4 407.1 October 70th, 19813 f1ANi) 1)KTAVtItE:1) Ms Merry Sue Sulol.l.er ) ( 0 CAhle Commune-Ations Adminstrator 2600 S naynhorsy give Miami, rlori.dR 311.33 On-ar Ms Smoller.: Pursuant to your inquiry regarding @60itional information on our compliance with section 1106 of the Cable Television License Ordinance, below are the answers you requested: I (A) Of the $3,057,000. identified as operating cost and exisenaes in Peat Marwick Main's Financial Statement, $1,346,043 wax spent on contracted expenditures, including without limi.tstion contracts for the acquisition of goods, services, mnterials3, supplies, and equipment used in construction, mni.ntenance and operations of the system, but excluding factory direct purchase terms or itemspurchased from a sole source or supply. 1. of the fntal dollar amount in I (A), $194,486. was spent with Hispanic Businesses. A. OC thA total dollar amount in I (A) 1. $194,4136 was slient with Local liispAnic Rusinesses. 2. Of the total amount in I (A) above , $0 was spent with Black Rusinesses. A. of the total amount in I (A) 2. above, $0 was spent with local Black Rut i nesses . 11 (A) Of the $4,544,000. identir.it!d a, genernI and administrative expense in Peat Marwick Main'ss i:inacial Statement, $1,65L,406 was spent on contracted expenditures, including without limitation contracts for the Acquisition of goods, servicesa, matr-rinl., and used in the construction, maintenance and operation of the system, but excluding factory direct purchassn terms or items purchase rrom sole source of supply. 1. or the total dollar ,amount .in IT (A) above, $570,275 was spent with .local Hispanic nusginessae . A. 01 the total dollar amount in it (A) 2. above, $570,275 was spent with local Hispanic Businesses. n ZG.. . 2. Of the total dollar amount in It (A) above, $9,184 was spent with Flack numinesses. A. Of the total dollar amount in II (A)-2. above, $9,184 was spent on local Black Businesses. Please note that a small increase in the amounts reported earlier this reflects inclusions identified after additional reviews. Shniil.d you have any additional cUtrifications please contact me. Sincerely, Miami Tnte Communications,lnc Anthony Bello, System Manager cc: Carlos F Smith _ A Quinn Jones,III nr Hattie Daniels Adrienne MacBeth AS 14 CITY Or MIAMI, FLORIDA INTZRd>FFIDIII ME14110RANDUM TOE Cesar H. Od to DAM November 20, 1989 City Manager SUBJECT: Miami TCI : Discussion of Licensee Performance . 12/7/89 Comm. Meeting FROM: R1►FCREaecs: i te'me5--10/ 12 / 89 Carlos F. Smith Comm. Meeting Assistant City Manager Memo for Signature Attached Is a memo to the Mayor and Members of the City Commission prepared for your signature and transmittal to the Agenda Clerk to be put as a discussion Item on the agenda for the December 7. 1989 City Commission meeting. Also to be placed on the agenda for December 7 as a separate Item Is the second reading of an Ordinance Amending Sec. 804 of the City of Miami Cable Television License Ordinance (J-89-38). The first reading of this ordinance amendment was on October 12, 1989. The proposed modification to the existing cable license ordinance requested by Miami TCI would change the minimum number of days a cable television subscriber is given notice by the licensee of the Intent to disconnect from forty-five (45) days to thirty (30) days after the due date of the delinquent fee or charge. CFS :MSS