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MINUT$S OF SPECIAL MEETING OF THE
CITY COMMISSION OF MIAMI, FLORIDA
On the llth day of August, 1989, the City Commission of Miami, Florida,
met at its regular meeting place in the City Hall, 3500 Pan American Drive, -
Miami, Florida in Special Session to consider a matter of public import,
namely, the Carey Technical Institute.
The meeting was called to order at 2:27 p.m. by Mayor Xavier Suarez with
the following members of the Commission found to be present:
ALSO PRESENT:
Commissioner Miller J. Dawkins
Commissioner J. L. Plummer, Jr.
Commissioner M. Athalie Range
Mayor Xavier L. Suarez
Angela Bellamy, Acting City Manager
Jorge L. Fernandez, City Attorney
Matty Hirai, City Clerk
ABSENT: Vice Mayor Victor De Yurre
Cesar Odio, City Manager
Walter J. Foeman, Assistant City Clerk
An invocation was delivered by Mayor Suarez. Commissioner Range then
led those present in a pledge of allegiance to the flag.
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1.(A) DISCUSSION CONCERNING $300,000 LOAN TO CAREY TECHNICAL INSTITUTE.
— (B) PROVIDE OPERATING CAPITAL LOAN OF $300,000 TO CAREY TECHNICAL INSTITUTE,
INC. UNDER CERTAIN TERMS AND CONDITIONS - APPOINT COMMISSIONER MILLER J.
DAWKINS AS EX-OFFICIO MEMBER OF THE BOARD OF DIRECTORS OF CAREY
TECHNICAL INSTITUTE TO SERVE AS THE CITY'S REPRESENTATIVE AND LIAISON TO
THE INSTITUTE - RESCINDING R-89-709.
(C) EMERGENCY ORDINANCE: APPROPRIATE $300,000 IN SUPPORT OF CAREY TECHNICAL
INSTITUTE UPON COMPLIANCE OF AGREEMENT TERMS AND CONDITIONS.
Mayor Suarez: Commissioners, we're gathered in special session to consider a
matter of urgent public import, namely, the Carey Technical Institute.
Commission had previously acted to instruct Miami Capital Development
Corporation, the City's lending agency, to find a way to lend as much as
$300,000 from the funds that the agency handles and now we hear from staff
that there are many, many difficulties in that process, some of which they
would like the Commission to have public policy statements on and for that
reason and for any other reason and for any other alternatives and any other
concerns, I presume the Commissioners have read and heard and so on, a lot of
the things being said about the Technical Institute and its economic condition
and may have questions on that. I can tell the Commission that we have been
trying to get the U. S. Attorney to give some report back to the City.
Apparently, there was difficulty in getting any specific response. Angela,
correct me if I'm wrong on that, but I did just speak to Assistant U.S.
Attorney and they're not able to tell us a heck of a lot. There are no -
except for the fact that there are no current indictments, The U.S. Attorney
cannot say or confirm whether there's any pending investigations. The
accountant has just - we just reached the accountant who is also the president.
of the board or the president of the agency, Felix Lima, he told me he is
accountant on a pro bono basis, by the way, presumably not a salaried employee
then and he said that even though the financial statements, I guess they're
the informal financial statements, they're not audited or anything, have not
been received, that he had somebody on the way he hoped within the next half
hour that this person would arrive here and give us some financial statements
1 August 11, 1989'
as to the Technical Institute. So those are two avenues of checking up and
investigating that have been pursued. Unfortunately, sort of on the late side
in terms of getting back any information to us. He also said that he did know
that the financial statement that we would receive today shows a positive net
worth and the profit and loss statement shows a fairly profitable institution
assuming that it can function normally. And that on an accrual basis, it is
quite profitable and, of course, that means that an accrual depends a great
deal on whether the federal monies come in, I believe is what he meant. And
so - and we don't have much of a...
INAUDIBLE COMMENTS NOT ENTERED INTO THE PUBLIC RECORD.
Mayor Suarez: It hasn't arrived, I don't think yet, Commissioner and one of
the things that we may do, of course....
Ms. Angela Bellamy: We haven't received anything.
1
Mayor Suarez: ...is to make any determination contingent on further analysis
a
by our staff of any of those concerns.
Mr. Plummer: Mr. Mayor, you brought out that one point. Let me ask a
= question quickly, did I hear somewhere that records had been seized or records
had been confiscated by some law enforcement agency? Did I hear that
somewhere here this morning? I'm not trying to infer...
Ms. Bellamy: We haven't heard anything about that, no.
Mr. Plummer: The records have not been, in any way, sequestered by any legal
agency.
Ms. Bellamy: No.
Mr. Plummer: Turning to your last page from a memo to Frank from Ralph
Suarez -Rivas. May I ask of those request how many has the City received?
Ms. Bellamy: Of the seven pending?
Mr. Plummer: Well, I see nine - of seven pending, OK.
Ms. Bellamy: Yes. The top ones, the top nine, have been received.
Mr. Plummer: They've been received.
Ms. Bellamy: Yes.
Mr. Plummer: OK.
Ms. Bellamy: The last seven have not been received.
Mr. Plummer: Of the bottom seven, none have been received.
Ms. Bellamy: That's correct.
Mr. Plummer: OK. Now, Mr. Mayor, let me just make a comment on the record, I
never, ever use the morning tabloid as gospel. I have read as you have and
others a great deal of what has appeared there in the paper. I would ask
staff in their investigation, for example, I heard that the institute was
$500,000 in debt. I read where students were on an uprising, I read where the
Labor Department was supposedly upset or involved. In your investigation of
the staff, and I'm assuming that you did use the paper as some criteria, could
you inform me and, hopefully, my colleagues as to what you have found out as
to what is reality.
Ms. Bellamy: Yes, I'm going to ask Mr. Castaneda to come up.
Mr. Frank Castaneda: Commissioners, concerning - we have been able to
determine that there's a number of lawsuits concerning the agency. I believe
that there are seven lawsuits have filed against Carey Tech in Circuit Court
of Dade County in which there were over $5,000 and five lawsuits have been
filed against Carey Tech Institute in the County of Court under that amount.
2 August 11, 1909
•
Mr. Plummer: Well, wait a minute, that doesn't really tell me a lot. Above
$5,000 could be three million or six thousand.
Mr. Castaneda: Correct.
Mr. Plummer: So what does that tell me? And the judgment, just because a
judgment - are you saying a judgment, a lien....?
Mr. Castaneda: No, no, no. It's a lawsuit.
Mr. Plummer: ...or a lawsuit?
Mr. Castaneda: Lawsuits.
Mr. Plummer: Well, a lawsuit is yet to be proven yes or no.
Mr. Castaneda: No, sure. No, no, I'm just stating facts that...
Mr. Plummer: Well, that's not a fact other than the fact that it was filed.
I need information.
Mr. Castaneda: That's correct.
Mayor Suarez: I think the complaints typically just say over $5,000 to meet
the jurisdiction of the court. Are you able to tell us what the actual amount
in controversy is in each case?
Mr. Plummer: For example, lawsuit ABC has filed for over $5,000.
Mr. Castaneda: Right.
Mr. Plummers Do you know whether or not their actual number is four hundred
thousand or forty thousand or four dollars?
Mr. Castaneda: There is a lawsuit between plaintiff Marso Artime against
defendant Carey Tech for approximately $37,923.
Mr. Plummer: And what is that based on? Did he supply merchandise, goods,
professional services, what is the basis of his lawsuit? Is it a lawsuit
asking for the recovery of the money or is a mechanical lien?
Mr. Castaneda: Plaintiff Marso Artimes sues the defendant Carey Tech, a
Florida corporation, and alleges this is an action is excess of $5,000. The
plaintiff Marso Artime, an individual who resides in Dade County, defendant,
on or about November 4th, 1986, plaintiff and Computech Institute entered into
an employment agreement whereby Computech was to compensate plaintiff for his
services to Computech. A copy of said agreement is attached here.
Mr. Plummer: What kind of services?
Mr. Castaneda: Of the employment agreement states that in the event...
Mr. Plummer: Is he a teacher there? Is that what it is? Is he a consultant?
What.....
Mr. Castaneda: It appears that he was a consultant.
Mr. Dawkins: Custodian. What was he?
Mr. Castaneda: Pursuant to the employment agreement plaintiff was to provide
services to the defendant from November 4th, 1986 to December 31st, 1989 at a
scheduled rate of compensation. Plaintiff was to receive $40,000 as
compensation for services rendered for that period. Contrary to the terms of
the employment agreement, it's an employment agreement that Carey Tech had
with this individual.
Mr. Plummer: As a teacher.
Mr. Castaneda: Plaintiff and Computech.
Mr. Plummer: I mean, if it's a teacher what he's trying, I guess what he's
trying to accomplish is just to guarantee that his money some day, hopefully,
will..,
s
4
i
3 August ll, 1989
_ Mr. Castaneda: The agreement is between the plaintiff and Computech and I am
not sure what is the relationship between Computech and Carey Tech.
Mr. Plummer: Is he a teacher?
Mayor Suarez: Commissioner, why don't you come up to the mike? We're going
to ask you a few other questions too.
Ms. Barbara Carey% If I can explain it, I don't know the gentleman but I do
know that he worked for Computech before Carey Tech purchased assets of
Computech.
Mr. Plummer: Oh, so it was the previous corporation.
Ms. Carey: Yes, it was the previous corporation and we acquired their assets
and he was an employee and when Carey took over the assets he was...
Mr. Plummer: It doesn't sound like you acquired any assets at all.
Ms. Carey: Right, we didn't. In fact, he was terminated when Carey Tech
acquired the assets and so he filed a lawsuit. That's my understanding, I
don't know the gentleman.
Mayor Suarez: That may be an important distinction though. When you acquired
it, you acquired assets, not the corporation, not the business as a whole.
Ms. Carey: Not the corporation, not the business, only the assets. Their
computers, their equipment, etcetera.
Mr. Plummer: OK, are the other six basically the same? I mean, is it the
same kind of a thing? Are they all about the same amount or are they all
basically a contract for services as a teacher or professor?
Mr. Castaneda: Sheila Terrara and Rocco Terrara, approximately $45,000 worth
of value, again the defendant is Carey Tech.
Mr. Plummer: And what did they provide?
Mr. Castaneda: It's an issue on a lease agreement.
Mr. Plummer: A lease agreement.
Mr. Castaneda: That's correct.
Mr. Plummer: OK. Was that a lease on computers, a lease on the property?
Mr. Castaneda: It's a lease on a property located at 901 N.W. 54th... no, no,
no, no. That's the filing of the... as a tenant at 4286 Palm Avenue, Hialeah,
Florida.
Mr. Plummer: What was the lease for?
Mr. Castaneda: I assume that this is also problem with Robert Fiance School
in which you took over a lease.
Ms. Carey: Yes, may I explain. And I'm trying to assess all of this myself.
What happened is, we acquired the assets of some of the Robert Fiance
operations. Computech was a part of that also so there were a number of
lawsuits filed when they closed their schools. And those lawsuits now...
Mr. Plummer: Carry on with to you.
Ms. Carey: Yes, to us and we're trying to assess that.
Mr. Plummer: My question is, are those seven lawsuits that you refer to above
$5,000, are they all the same basically?
Mr. Castaneda: Well, they're like that. I believe that there's also it
lawsuit in which Carey Tech is the plaintiff.
Mr. Plummer: That's a nice one for them.
4 August
11,
1959
Mr. Castaneda: Yes. You're suing, I think, for a million dollars somebody.
Ms. Carey: Yes, that's right.
Mr. Castaneda: And then there is substan...
Mr. Plummer: That's not the City of Miami, is it?
Ms. Carey: Oh, no.
Mr. Castaneda: No, and then there's also substantial lawsuit for...
Mayor Suarez: Who's the defendant in that? Is that by...
Mr. Castaneda: Carey Tech versus Poly Tech.
Ms. Carey: That's right.
Mayor Suarez: Was that a predecessor agency or is that just a supplier?
Ms. Carey: They were past managers of the school and so...
Mayor Suarez: Ah, are they the ones involved with Mr. Ted Lyons, by any
chance?
Ms. Carey: Yes, that's right.
Mr. Castaneda: Then, finally, I believe that there's a lawsuit...
Mr. Plummer: Am I to assume that if you were to total all of these up that
that is where the $500,000 figure comes from or is that another one?
Mr. Castaneda: No, no, there is an individual lawsuit for half a million
dollars...
Mr. Plummer: Oy.
Mr. Castaneda: ...and that's the one I was getting to.
Mr. Plummer: And which one is that?
Mr. Castaneda: From Robert Fiance.
Mr. Plummer: Why didn't you start with the big one first?
Mr. Castaneda: Well, I was going up the row. As Robert Fiance Institute of
Florida, Inc. vs. Carey Tech and pursuant to the terms of said , the
defendant obligated itself to pay half a million dollars in four quarterly
installments of $125,000 each with the first quarterly installment due and
payable on the first day of the month following ninety days after the date of
granting by the United States Department of Education of approval regarding
student funding, etcetera. Said approval was received on February 22nd, first
installment...
Mr. Plummer: Give me the basis of the lawsuit...
Mayor Suarez: Commissioner.
Mr. Plummer: ...what did he provide what he's asking money for?
Ms. Carey: We acquired the assets, as I said, of Robert Fiance, and the
school agreed to pay him - I was not a part of this negotiations, but the
school agreed to pay him in quarterly installments after they received
approval from the government of students loans to the school. The students
were approved but we never started getting the students money to the schools
because of these problems we've had of finances. And so...
Mayor Suarez: Is this the principal finance tool, so far, to keep.the school
going or to purchase it? Is this finance company - I mean this finance loan
by Mr. Fiance.
5 August li 1904
f.
s
Ms. Carey: Is the loan financed?
Mayor Suarez: Is this the principal financing tool that the school has used
to stay alive and to....
Ms. Carey: No, no, no, no. The Department of Education closed down...
Mayor Suarez: Or is it for...
Ms. Carey: ...a number of schools that were owned by a general called Robert
Fiance.
Mayor Suarez: Uh huh.
Ms. Carey: We nego... the school board negotiated a deal with the Department
of Education and Mr. Fiance to take those assets of those schools and to keep
those students in school.
Mayor Suarez: I see.
Ms. Carey: The school - the students had already received some money for
those students. We had to go back in and get the eligibility of those
students again and continue to keep them in school. The school never got any
funding for those students and we were trying to keep the students in school.
So we never paid him...
Mayor Suarez: So the obligation to Mr. Fiance...
Ms. Carey: Fiance, would result...
Mayor Suarez: ... would result if anything, from the fact that of
transferring all the students and the payments that the federal government
would presumably give for those students.
Ms. Carey: Right, to those students. And so we never got to that point where
we were able to collect for those students because of all of these problems,
finance problems. So, he is now suing for his money.
Mayor Suarez: Does that one have a lis pendens or any claim to the equity of
this property with it, Frank?
Mr. Plummer: The property is owned by Miami Capital.
Mayor Suarez: Or any other claim on the equity of the assets of this
corporation, Carey Tech that we would lent money to?
Mr. Castaneda: Oh, but basically the Carey Tech has a loan of half a million
dollars from Robert Fiance; Robert Fiance is saying that this loan is in
default. They have accelerated payment and they are requesting payment.
Mayor Suarez: Is there a lis pendens filed with the lawsuit or you don't know
that?
Ms Carey: No, there is no loan; there is no loan, that was the amount of
the...
Mayor Suarez: The agreement to pay.
Mr. Castaneda: Right, the agreement to pay.
Ms. Carey: The agreement to pay, right.
Mr. Plummer: Are there any, to your investigation knowledge, any outstanding
liens or judgments?
Mayor Suarez: Are there any actual liens already perfected? Any judgments or
any liens already perfected at law?
Mr. Plummer: That have been, you know, adjudicated by a court of law.
Mr. Castaneda: To my knowledge nothing above $5,000. We have not checked
anything under $5,000.
6 August 11, 1989
Mr. Plummer: Wait, wait, whoa, whoa, whoa. Please. Let me rephrase my
question. To your knowledge in your investigation of this matter, are there
any actual liens or judgments presently against Carey Tech for any amount?
Mr. Castaneda: No.
Mr. Plummer: OK. Now, I do not have - Mrs. Carey told me this morning and
she's to be commended, that she came off of the board so that the matter could
be a nonprofit organization, some two years ago. I do not now have a list of
who the board of directors are and I'm assuming that any agreement would have
to be made with the chairman of the board and/or the approval of the board.
Now, who has the members of the board of directors? Hello? Is there anybody
home?
Mr. Castaneda: I have the list of the original members. I understand I'm
hearing that some of those members have changed. The president of the board
and the acting president is Felix Lima and the secretary is ,Jules Clavan. The
other board members have been removed? I don't believe that we have an
existing list of board members of the corporation at this time.
Mr. Plummer: I'm sorry, and maybe I'm ignorant, but who is Felix Lima?
Mr. Castaneda: He is the accountant that the Mayor was talking to besides
that, I don't...
Mr. Plummer: But what is his background? Is he a school teacher, is he a
professor?
Mayor Suarez: No, he's a CPA. He's a practicing CPA.
Mr. Plummer: OK, does he have a hands on position in the operation of the
school? No, no, Frank, you know, this bothers me that you don't have these
answers and the City was supposedly investigating.
Mr. Castaneda: No, no, Commissioners, this loan was passed to Miami Capital
and the financial information was being passed to Miami Capital. The City was
looking at the eligibility issue.
Mr. Plummer: In other words, what you're saying to me it was passed from here
to here to here and I'm not getting any answers.
Ms. Bellamy: No, Commissioner.
Mr. Castaneda: No, you're getting...
Ms. Bellamy: When we met with the Law Department, one of the items they told
us was that we would have to get a current list of all of the board of
directors. That's one of the items that we don't have.
Mr. Plummer: Well, if there's only two members, that wouldn't take long.
Ms. Bellamy: That's one of the items that we don't have.
Mr. Plummer: Is that on the...
Mr. Dawkins: When did the Law Department tell you you had to have this?
Mr. Castaneda: Today.
Mr. Dawkins: When?
Mr. Jorge Fernandez: No, no, no. The Law Department has been involved since
last week. Wednesday...
Mr. Dawkins: Simple question, simple answer. When did the Law Department
tell them they had to have the information?
Mr. Fernandez: A week ago today.
Mr. Dawkins: All right, so you...
7 August 11, 1989
Ms. Carsy: And I think we gave that to you.
Mr. Dawkins: Thank you, air.
Mr. Plummer: Well, excuse me, I don't see...
Ms. Carey: Mister...
_ Mr. Plummer: ...on this list here, any request for the list of board of
directors. The only thing I see here is the outstanding directors, officers
loans and that could be none or it could be one of ten or one of twenty. I
don't even see where you asked for who is the members of the board of
directors.
Ms. Carey: I think... excuse me, Commissioner, they did and we gave them a
list of the existing members of the board. Two of the...
Mr. Plummer: Well, Barbara, you heard me just ask for it. I don't know who
got it.
Ms. Carey: Well, he gave you the names of the remaining board members.
Mr. Plummer: Two names.
Mayor Suarez: Just two names left?
Ms. Carey: Yes, we have not even been able to restructure that board because
of all the problems. In fact, we had asked our attorney to tell us whether
any of the liabilities would pass on to the new board members and we were
trying assess that before we asked anybody on that board. Two of the board
members were taken off the board because of the problems at the school so
that's why the board now only consists of these two members. I'm not a member
of the board. My only affiliation with the board was that the board had an
agreement with me that if the school was ever in threat of losing its license
or not in good standing with the community, then I could have the members
removed or have the day to day operator removed f rom the school so that I
could put the school back on its proper course and that's how I got involved.
Mr. Plummer: Let me ask it in reverse.
_ Ms. Carey: Yes.
_— Mr. Plummer: Who is the actual day to day, hands on director of the school
and I mean...?
Ms. Carey: Jules Clavan, the board - the courts appointed him as acting CEO,
Jules Clavan...
Mr. Plummer: C...
Ms. Carey: C-1-a-v-a-n. He was...
Mr. Plummer: First name again?
Ms. Carey: Jules, J-u-1-e-s.
Mr. Plummer: And has he been there previously?
Ms. Carey: He was on the board and he stepped off the board to take active
day to day control of the board.
Mr.
Plummer:
And his background is...
Ms.
Carey:
Is a school director. He used to own a technical school on
Biscayne Boulevard
called Respitory Therapy Institute for years.
Mr.
Plummer:
And he sold that?
Ms.
Carey:
He sold that, yes.
Mr.
Plummer:
Mr. City Attorney...
$ August 11, 1909,`
Mr. Fernandez: Yes, sir.
t
Mr. Plummer: Let me try to find some comfort out of you, My greatest concern
whether or not these judgments are good, bad or indifferent at this point
because from what I have heard...
Mayor Suarez: Lawsuits.
Mr. Plummer: Lawsuits. That they may or may not, now, the potential is there
and we understand that. If I were to vote favorably, which I hope I can find
a way to do, I am concerned that if creditors were to come in and scoop up all
the money and the school still goes under. We've accomplished nothing. What
kind of a document, what kind of contract can be given, because I understand
the Labor Department has come in even though they don't have any dollars
involved, and they want assurances, from what I am told, that the monies will
be paid directly and up front to the teachers, which it should be and I agree
with that. But I'm scared that we give X dollars, $300,000 as proposed, and
tomorrow morning - gulp - it's gone, and there's $200,000 maybe or they're
still in debt and the school still has to close. I the business world
sometimes businesses are better off to go under and resurface and I don't know
that that's the case here, or not the case, but I, you know, I'm just saying
what kind of an agreement could this Commission enter into that that's not -
we're not going to be seeing that happen where the money is tomorrow gone and
the school still goes under.
Mr. Fernandez: If you allow me, Commissioner Plummer, I can give you an
answer that may be a little bit lengthy but it will answer all the concerns
that you have raised. First of all, this Commission may advance monies to
this entity upon a finding that there is a concrete public purpose as a
primary objective, as a moving force, for giving them the loan. The second
test that must be met is that there has to be a reasonable expectation that
such purpose will be substantially and effectively accomplished. What that
means in practical terms is that the City Commission can structure the loan in
such a fashion that you remain involved and that you remain or that the Carey
Tech people are able to give you sufficient assurances that the money you're
advancing to them is used for very specific purposes with very clearly
established limitations. So you can impose on your loan whatever restrictions
and conditions you deem appropriate after you have found that it is to serve a
concrete public purpose. Then the rest... I mean, that could take take any
shape and form that administratively speaking, you would guide the
administration to do or...
Mr. Plummer: That's fine, but you stopped short. There also has to be an
assumption that the loan has the potential of pay back.
Mr. Fernandez: Correct.
Mr. Plummer: Now...
Mr. Fernandez: More than an assumption.
Mr. Plummer: OK. In speaking with Barbara this morning, Commissioner Carey,
she explained to me, which I fully understood...
Mayor Suarez: I'm sorry, that should have said more than a potential, not
more than an assumption. Everything we do here is based on some calculation.
Mr. Plummer: OK, I'll accept that.
Mayor Suarez: Thank you.
Mr. Plummer: That their collateral is very little, OK? So we cannot ask for
collateral. They don't own the property. What assumption has the staff made?
What potential has the staff investigated that this City will really realize
back that loan as indicated?
Mr. Fernandez: I view that to be more of a question to the administration
than legally. Legally, I can tell you that we can fashion the instrument in
such a way as to require a very specific schedule of payments, very specific
auditing rights, very specific - we can do whatever you instruct us to do by
way of drafting legal documents. But the business decision...
9 August 11, 1989
Ms. Bellamy: Commissioner, i can answer your question.
Mr. Plummer: Transfer the question to the administration.
Ms. Bellamy: Yes. At this time, the administration is not in a position to
determine whether they will be in business or whether the loan would be
repaid. We do not have any current financials.
Mr. Plummer: Did you do any formula fixtures on numbers that if they had the
same history for the last five years of that number of students, is the
potential there to pay back the loan and still not go under? Did you do any
of those kind of numbers? In other words, if they had 200 students a year in
the past, this is hypothetical, and let's say that they're going to continue
into the future with 200 students a year, is there sufficient income stream
there to say that the reasonable assumption is there that the loan can be
paid? Did you do any of those numbers?
Mr. Castaneda: Commissioner, let me answer the question this way. I believe
that Miami Capital has financial statements for the last three years which
show a level of profitness in the organization. I think that the problem that
Carey Tech...
Mr. Plummer: You're saying level of profit to indicate for the last three
years there has been a profit.
Mr. Castaneda: Yes, I believe that that is correct, no?
INAUDIBLE COMMENTS NOT ENTERED INTO THE PUBLIC RECORD.
Mr. Castaneda: That is not a correct. Well...
Mr. Plummer: OK then tell me if someone can tell me - everybody keeps looking
to the other person - in the last three years was there any profits made at
all?
Mr. Castaneda: I will defer...
Mr. Dawkins: Wait, J.L., being a nonprofit organization...
Mr. Plummer: OK...
Mr. Dawkins: ...the last three years was there... were they current with
their payments? Because if it's a nonprofit organization, there can be no
profits.
Mr. Plummer: OK, let me read - rephrase that. Was there, in the last three
years, a break even? Did the institution, in the last three years, or any one
of the three years, reach a break even point?
Mr. Castaneda: I have not seen the financial report. Miami Capital have.
INAUDIBLE COMMENTS NOT ENTERED INTO THE PUBLIC RECORD.
Mr. Plummer: Come to the microphone, Juan.
Mayor Suarez: If you're going to address us, you're going to have to come to
the mike, Juan. And by the way, you can have profits, you just can't
distribute them to anybody. And, hopefully, it didn't.
Mr. Dawkins: Well, if they had them, they wouldn't be in this fix.
Mr. Juan Del Cerro: The documents that we have...
Mr. Plummer: For the record, your name and who you represent. We'll bypass
the address.
Mr. Del Cerro: My name is Juan Del Cerro. I'm the president and chairman of
Miami Capital Development. Is that good enough?
Mr. Plummer: You heard my question.
10 August 11, 1989
Mr. Del Cerro: I don't believe that we have sufficient information from Carey
_ *technical Institute to determine whether or not it is profitable or not f
profitable. That's all I can tell you.
Mr. Plummer: OK, so then your answer to my question...
Mr. Del Cerro: Is no.
Mr. Plummer: ...did it break even? You don't know.
Mr. Del Cerro: Is we don't know, no. We don't know.
Mayor Suarez: OK.
Mr. Dawkins: Mr. City Attorney.
Mr. Fernandez: Yes, sir.
Mr. Dawkins: Is it any way that this loan is made and you can guarantee a
position above all others...
Mayor Suarez: First position.
Mr. Dawkins: ...or persons that we got the first position or whatever, in
order to recoup the money that's loaned. Is there any way legally to do that?
Mr. Fernandez: No. We cannot assure that we can perfect a title or a right
higher than anybody else because it's a question of recording, especially on
UCC statements and the like.
Mayor Suarez: Well, but if nobody else has a... if we instruct you to check
to see that there are no other UCCs filed or no other perfected liens filed
until ours is filed and otherwise we don't disperse, we may be able to..
Mr. Fernandez: We may be, exactly.
Mayor Suarez: And you could have instructions to do that.
Mr. Fernandez: That's right.
Mayor Suarez: Otherwise, not lend the money. That's what the Commissioner's
asking.
Mr. Fernandez: That's right.
Mr. Plummer: Well, one of the other things, Mr. Mayor, that I spoke about the
other day and I still personally think that it maybe is a good idea, is of the
money we disperse it on a one -twelfth basis and then if we were to see that
something were to happen of a fear that possibly all we would lose would be
one -twelfth.
Mayor Suarez: That would be twenty-five... let me say something on that...
Mr. Plummer: OK, hey, you know...
Mayor Suarez: If I may?
Mr. Plummer: Yes, sir.
Mayor Suarez: On the issue of eligibility, let's get that cleared up. I
understand that what staff was telling us and they haven't really made it too
clear, I think you were about to tell us at some point, is that HUD monies,
EDA monies, which come from HUD, are simply... we just don't meet those
criteria for a variety of reasons including the fact of the employees not
being typically from the target area. However, you have also instructed us
that if we meet the other two criteria you mentioned, Mr. City Attorney, we
could lend City funds and we find that in the budget year beginning in October
1st, we have recovered and put into our general revenues, roughly a hundred
thousand dollars, I believe, from a loan of Miami Capital to an institution
that wasn't the smartest loan that we've ever made, the Insurance Exchange of
the Americas, and we have recovered a hundred thousand so we have at least
identified that amount from the next year's budget which we could presumably,
since it's in...
11 August 11, 1989
10
INAUDIBLE COMMENTS NOT ENTERED INTO THE PUBLIC RECORD.
Mayor Suarez: No, we've gotten some monies during time, but they have
typically gone back into Miami Capital for further loans. Now, a couple of
things, if we were to find - this Commission were to find that we wanted to
take that hundred thousand dollars and make that available and subject to all
the conditions that we would impose, one of the things that I have been
concerned about and I think it concerns all of us, is the Commissioner's
involvement, Commissioner Carey's involvement. I have asked her since the
accountant indicated that it might take roughly six months for this agency to
get its, quote, unquote, get its act together, if she would refrain from any
consulting fees for that period of time. She has stated that that's not a
problem and, frankly, Commissioner, that would be - from my perspective, it
would be a condition for me to vote favorably. I would - you have stated that
you have... right.
Ms. Carey: I've stated that, Mr. Mayor, and I thank you for asking. I have
not received any pay from that institution over two months and, in fact, I
have never received, since I've been affiliated with that institution, $50,000
a year. The agreement was $50,000 a year when I was running the facility for
four years. We never went in the hole, we always broke even, I ran that
facility, I got it licensed and accredited, I never took $50,000 from that
school the first three and a half years I've worked free of charge building
that institution. Since, since...
Mayor Suarez: Yes, and that would dispel a lot of the public stuff we hear
about.
Ms. Carey: Yes, since... right. And since others have been managing the
school, I've received one year $28,000, one year thirty, and last year forty-
two. I have never received a $50,000 fee from that school. So...
Mayor Suarez: OK, with that... that would be one condition...
Ms. Carey: ...you know, that's no problem.
Mayor Suarez: ...that I would want to impose and I appreciate your statement
to that effect.
Ms. Carey: And I've spent a lot of time working with that school meeting with
agencies.
Mayor Suarez: I don't doubt it and I have a feeling we're going to be
spending some too to supervise and monitor all of this. Secondly, I would
think that as a procedural assurance for us, that we would want to have the
City be a trustee or intervener of sorts and have a presence in the school to
monitor the spending of our monies, the disbursement of our monies, the fact
of students attending, the fact of no further problems with the administration
and have mentioned that already to staff. I think Commissioner Dawkins has
already asked about the possibility of an in-house person and I would hope
that the administration would be ready to make, if the Commission feels that
that is an important condition, a recommendation on an individual that would
physically be there to carry out our duties, fiduciary duties as to this
money.
Mr. Plummer: Mr. Mayor, I've got to go one step further.
Mayor Suarez: I was going to finish up here.
Mr. Plummer: Excuse me, I'm sorry, monitoring is fine but I also think that
whoever that...
Mayor Suarez: Subject to the conditions we impose.
Mr. Plummer: Approval, approval of that individual on the expenditure of
funds. In other words...
Mayor Suarez: Yes, yes...
Mr. Plummer: ...checks cannot be issued without.,.
12 August 11, 1989
Mayor Suarez: you got it.
Mr. Plummer: ...that in-house person approving.
Mayor Suarez: OK, and the specific conditions that we impose...
Mr. Plummer: More than just monitor.
Mayor Suarez: ...by Commission resolution were we to approve this particular
loan on that basis, would include, of course, the usual terms and conditions
for repayment, interest rate and so on which I gather is going to be very low,
a nominal interest rate of 3 percent is what they tell us. That we, in fact,
as Commissioner Dawkins has suggested, be in a first position of lien position
as to any assets and apparently there are some assets and I'm not speaking of
receivables that come from the federal government. I don't think those can
even be liened. But we also want to monitor, of course, that those don't get
dissipated. We would want to be sure that the funds were being used to make
the school viable. I don't know how to write that condition in. In other
words, what you have expressed, J.L., and all of us are concerned about, that
the money doesn't somehow just go to a group of creditors and don't make
viable the operation of the school for the amount of time that we're trying to
keep it going. And if we could somehow reduce all of that to a resolution, I
would have the level of comfort to the tune of lending a hundred thousand. I
have to say that I have to recede from the idea, at this point, of lending
$300,000. We have many, many worthy causes in the City of Miami,
Commissioner, and that doesn't mean that in the next fiscal year, it doesn't
mean that if this technical school gets itself going again, that we may not
have to find other funds including CDBG funds which somehow we can - maybe the
employment, for example, maybe the employees could change a little bit so that
the mix would include a lot of City residents which might then make us
eligible for CDBG funds and we'll be receiving for economic development and I
gather this has been characterized as economic development, you said, right?
We would be in a position to lend some portion of what we haven't already
earmarked but we have some substantial amounts there. But, for the moment,
that would seem to be the figure that makes the most sense and responding to
the criteria that Commissioner Dawkins articulated at the last Commission
meeting which I think is an important point to make here, we have lent money
to Garces Commercial College, for example, on a basis...
Mr. Plummer: Which was a profit.
Mayor Suarez: Yes, and on a basis that was probably riskier than this
initially. Now, due to the fact that they are, in fact, profitable now, due
to the fact that some hard work has been done by staff in recovering the
money, they're up to date right now, I'm told by the executive director of
Miami Capital Development. So, it isn't like this is going to be the most
generous or the riskiest enterprise we've ever lent to, but we would hate to
be in a situation where other worthy nonprofits involved in something as
important as what we've been told this is. This is one of the few technical
schools in the City functioning now. Really, one of two according to Herb
Bailey who was telling me before, there's really only one other one even close
to this one and our young people need vocational training very badly. This is
the thrust of everything the City is trying to do is to prepare people for
jobs. And particularly when they don't... the regular schooling that they
have received doesn't allow them to enter into the job market, so there's no
doubt about the importance of this program. We'd just like to have the
safeguards in place and those would be the one that I would suggest.
Commissioner Range.
Mr. Dawkins: Commissioner Carey.
INAUDIBLE COMMENTS NOT ENTERED INTO THE PUBLIC RECORD.
Mr. Dawkins: Me either. Let me get through first, will you please?
Commissioner Carey, what are the accounts receivable, please, ma'am, because
IOm getting a little tired here. What are the accounts receivables you have?
Off the top of your head, I know you don't know
Ms. Carey: Yes, as I said, I've been there three and a half weeks and I've
been trying to assess the whole situation, trying to see what the debts are,
what the liabilities are and trying to see what the accounts receivables would
amount to. And I have...
13 August 11, 19S9
Mr. Dawkins: Do you think that after you've looked at it, do you think that
it's a possibility of repaying this loan from accounts receivable?
Ms. Carey: I have spent a number of hours doing that and we see that right
now that if we could keep those doors open, we could have between 800 and
million dollars in receivables come into that school. That means second
tuition payments that actually belong to the school and we haven't received
them yet because...
Mr. Dawkins: Thank you.
Me. Carey: ...all the agencies stopped working with the school because of the
management problems.
Mr. Dawkins: Mr. Mayor, fellow Commissioners, you know, it's amazing how
every time we attempt to do something in our neighborhood, we get hung up in
technicalities, we get hung up in everything and everybody and nobody seems to
realize or give a damn that that's the only school in that area. Nobody seems
to care that its attacking unemployment in that area, nobody seems to care now
that nobody's rioting and throwing bricks but as soon as they do, they'll be
ready to give them a hundred thousand dollars. Always reactive, and nobody
plans. Somewhere along the lines, we have got to realize the black community
has no financial institution. If we had a black bank, it would be no problems
for Dr. Carey to go to a black bank and get a hundred thousand dollars. We
don't have it and the establishment does not help us acquire one. We have no
place to go but to the federal well and every time we have a problem, we're at
the mercy of the federal well because we do not have and nobody, Cubans,
whites, or nothing makes any effort for black folks to obtain financial
lending institution and without one, we're still at the mercy of the federal
well. We have loaned money, we loaned it to Garces College which was a profit
making organization. We loaned them federal monies which was against the
guidelines and we didn't go through all of this. You loaned it to them and
nobody said a word. Now, all of a sudden...
Mr. Plummer: No, excuse me, Commissioner...
Mr. Dawkins: Yes, sir.
Mr. Plummer: For the record. I voted against that.
Mr. Dawkins: OK, I voted - I've been on the losing side of a four one vote up
here so long until it doesn't matter. But when the majority rules, you're
with it.
Mr. Plummer: That's right.
Mr. Dawkins: That's no problem, OK? So now, this is the only out we've got,
OK? Now, if we are going to attempt to save this school, let's don't be
shucking and jiving, let's save it. If we don't intend to save it, let's tell
Dr. Carey, hey, look, close the school up and forget about it but somebody got
to take some risk and there's no financial institutions that's going to take
the risk and I make a motion that we go - if we're going to do this, I make a
motion now and I prefer the $300,000 but I'll yield...
Ms. Range: Just a minute, somebody has to give me an opportunity to speak
now...
Mayor Suarez: Just let him finish the motion, Commissioner.
Mr. Range: ...yes, but he wants to make a motion.
Mayor Suarez: We should have let you go first. Do you want to complete the
motion?
Mr. Dawkins: No, I...
Mayor Suarez: All right, Commissioner Range.
Ms. Range: I understood, I believe you to say that you would be willing to go
the hundred thousand, but not $300,000 at this point.
14 August 11, 1989
16 0
y
Mayor Suarez: That's correct.
Ms. Range: What the point...
Mayor Suarez: Well, we don't have $300,000 for one thing.
Ms. Range: No, not today, not today, but if we are going to attempt to
appease the institution with $100,000, we may as well stop where we are now.
One hundred thousand dollars is not going to do the job we needed. She needs
at least the $300,000 if it has to be given in three increments, then that's
the difference, but why give one hundred?
Mayor Suarez: I don't think there's any practical difference, Commissioner,
because I would have no problem, as I stated, if, indeed, we were able to get
the school moving again and we had assurances as to being repaid - at least
fair assurances. Any loan we make we have a certain amount of risk.
Ms. Range: Yes, I realize we have a risk.
Mayor Suarez: That with time we'd be able to find the other two hundred. I
can identify or the staff has been able to identify a hundred that we're not
legally prohibited from lending.
Ms. Range: All right, but...
Mayor Suarez: And besides that, the amount seems to be, you know, a fair
amount given the particular agency and the particular need as compared to
other things that we have through the City which are equally worthy and
nonprofits. I would be disposed to, as a statement of principle, say yes, as
soon as the, you know, for example, and I don't think a hundred thousand might
take them through six months, but as soon as we see that the school is back on
its feet and in the new fiscal year which begins October 1st, we can look for
CDBG funds. I would urge them to bring employees who are City residents so
that we can qualify for CDBG funds and not have to take general revenues. At
this point, this hundred thousand, I'm not sure why it was put back into the
general revenues for the fiscal year beginning October 1, 1980, probably
because of shortage of general revenues. I see our budget director smiling
over there and that's why I...
Ms. Range: All right then, may I ask the Commissioner a question before we go
further.
Mr. Plummer: Sure.
Mrs. Range: Commissioner Carey, in view of the fact you have been hands on
over at the college for a few weeks or more, what do you see the $100,000 as
doing for you and waiting, as the Mayor has said, approximately another six
months or so?
Mr. Plummer: Six months or six weeks?
Mrs. Range: What did you say? Did you say six months or six weeks?
Mayor Suarez: Well, I said that the school might be back on its feet within
six months, but I also said that if we see signs that it is heading in that
direction, that as of the new fiscal year, Commissioner, which begins October
let, or roughly in two months or two and one-half months, we might be able to
find CDBG funds or other City funds. I don't know where they would be right
now and I would not be inclined to vote for anything more than that at this
point. Given that, we cannot lend the funds that we thought we could from
Miami Capital.
Mo. Carey: I have had hands on on the operation for three and one-half weeks.
I've been trying, as I said, assess the debt and the liability and I would
like to have a little reprieve time, a breathing time so I can work with the
agencies so those doors could be opened so we can get the Federal funds that
belong to the school. Now, I originally went in there and I have put
personally into to that school over $100,000 that I borrowed myself, that I
personally guaranteed to pay back and it's really been hectic trying to fight
the every day battle of paying people and trying to assess the situation of
that school. If I get $100,000 that might keep open for another two to three
weeks and then I'll be back out begging for more money to keep the doors open
15 August 11, 1989 1
0 0
again and I can't do that. I'd rather just go ahead and close the doors and
say I cannot find the money, as Commissioner Plummer said, I'll start over
somewhere else doing something else. It certainly won't be a school again,
but I don't know what the survivability is at this time. I just know that if
I've got some breathing time to get the documents together that they need at
the government to access those grant monies or loan monies I could manage
because we have enough receivables out there. I have begun to open the doors
again with the Department of Education and with the guarantee agencies and
looking for a bank. The school has been without a bank for almost four months
and that has brought on the problems. There is no cash flow because we don't
have a bank to even work with the school at this particular time and so I need
some breathing space so I can get all those things working together without
having to fight every pay period to pay teachers. Now, I've been there three
and one-half weeks and I have paid teachers three of those weeks, but
Wednesday nights they were looking for another pay check today, because they
thought I had money from the City of Miami. Some one put notice on the door
that school is closing because we couldn't pay the teachers, because I did
inform them I did not have any money to pay them on payday and the students
almost broke the doors down and screaming and yelling and raving because they
thought the school was closed and I can't go through that every pay period and
manage to keep that school open and so that's why I needed an emergency loan
so I could have some breathing time to get all the agencies to working with
the school again and I've had tremendous support from all the agencies and I
know that you've heard all kinds of rumors and you heard the school was in
investigation. In fact, I ask someone to give me the names of anyone who told
them the school was under investigation at the State Department so I could
call them myself and verify that because I know of no investigation going on
at the school. I do know that the auditors came down to review the school as
they should because that's what they do when you are doing Federal funds and
they made certain recommendations to us and one of those recommendations was
that there was poor management and that we had to get our documentation in
order in order to stay there and I've begun to do that.
Mayor Suarez: You have labor oversight, you have education oversight, I would
think?
Ms. Carey: We don't have labor oversight, I understand the Labor Department
was here because the teachers were due five weeks of pay when I got there.
They had not been paid in five weeks and so they went to the Labor Department
to ask the Labor Department how could they get their five weeks?
s
Mayor Suarez: How much are the teachers owned, Commissioner?
Ms. Carey: How much are they owned? At this time, I would say close to
$200,000 or more, because... but, you must understand too that the budget was
fat when I got there. They were paying almost $60,000 to $70,000 every two
weeks at payroll. Since I've been there, I've cut the budget down to $27,000
every two weeks.
Mayor Suarez: And I would hope that the teachers, like in any other situation
of distress, would you know, understand that maybe the entire amount that is
owned cannot be paid initially and...
Ms. Carey: But this is what I told them. I told them that I was only going
to borrow more money to pay current expenses.
Mayor Suarez: Sounds like you are creating a leaner operation there.
Ms. Carey: Right, until we can get those Federal dollars, then we work out
plans to pay them their back pay, but I could not pay back pay and keep that
institution open with monies that I borrowed and so, they went to the Labor
Department to find out how they could get their back pay, but I wasn't even
trying to deal with that at this point. I was trying to keep the current
operation going, but I understand their concerns and I know the school owes
money to them, but as I said when they got there, they were five weeks behind
in pay and that was very difficult.
Mayor Suarez: Mr. City Attorney, if I may, for the benefit of Vice Mayor, how
would you characterize roughly the conditions that so far have been
mentioned? - at least the ones I've mentioned and do you have a list there of
things that we have suggested as safeguards?
16 August 11, 1989
Mr. Fernandez: Yes, I believe...
Mr. Dawkins: Before we get into that...
Mayor Suarez: Commissioner Dawkins.
Mr. Dawkins: I need to know what we are going to do, OK? Now, there are ways
to solve this problem that we are not addressing. $100,000 makes us lose
$100,000. Dr. Carey just said she cannot keep the doors open with $100,000.
Mrs. Bellamy, what are some of the services that we purchase, that could be
purchased from Carey Tech? Training for who and for what, and what have you?
Ms. Bellamy: Commissioner, the only training that we have used has been...
Mr. Dawkins: What is some of the training that's required by the City of
Miami that could be purchased from Carey Tech? I don't want to know what we
have purchased. I am not interested in what we did in the past. I am
interested in what we can do in the future and an effort to save this school.
Now, tell me some of the training that could be purchased from that school.
If it's none, say none.
Ms. Bellamy: I couldn't say right now, Commissioner. I would like to review
with Commissioner Carey and find out what services we would be able to
purchase.
NOTE FOR THE RECORD: Vice Mayor De Yurre entered the meeting at
3:10 p.m.
Mr. Dawkins: All right, I'll rephrase it. Somebody over there, out of of
Carlos Smith, Herb Bailey, Wally Lee, Mrs. Bellamy, Frank Castaneda, Mano
Surana, tell me some of the areas in your shop that we could use. The Police
Department, do we have training for the Police Department? If so, can it be
done there. Recreational aides, can it be done there? I mean, what is it we
do that could be gotten?
Mr. Plummer: How about the program I talked to you about before that Dawkins
was kind enough and I've never heard anybody followed up on it, where we
trying to get the hundred PSA's in a class at one time and they were willing
_ to get certified teachers. Now, the City of Miami pays a lot for the training
MEMO program of the PSA program and I don't know where that is today, but if Carey
Tech could get certified teachers and do that, we could pay her to do it. Of
course, Dawkins went and got the school to agree to it with certified teachers
and I never heard back from the Administration. I'm scared to ask how many
PSA's we have.
Mr. Dawkins: And Carey Tech could very easily, J. L. contract with those
teachers from Miami Dade, where they are certified, to go there and teach the
classes and we contract with them.
Ms. Bellamy: Commissioner, what I would recommend is that...
Mr. Dawkins: No, no, I don't want a recommendation from you. What I want
from you is the areas in which it can be done, Mrs. Bellamy, I don't need a
recommendation.
Ms. Bellamy: We can sit down with the Police Department and look at training
in those areas.
Mr. Dawkins: OK, thank you, all right, that's one area we could do, all
right. Somebody else give me another. Nobody else know another area? OK,
never mind, all I'm saying to us up here is that if we are desirous of making
the $100,000 loan and provide some services, then we are talking about
helping. If not, then we need to try to loan, say $100,0000 a month, and then
if it don't look like it is not progressing and then drop out, but me, I'm not
voting for $100,000 and I'm glad to hear Commissioner Carey say she can't use
it.
Mr. Plummer: Well, I guess let me state my position. I'm willing to go for
the $100,000 until October 1st. I'm willing to try and find any way that the
17
August 11, 1909
City of Miami can use that institute for training in which they can help make
that a success. I'm also going to ask and require for my vote that the money
is given to Carey Tech institute, that the money is retained by the City of
Miami and paid by the City of Miami upon the presentation of approved bills.
That way a creditor cannot come in, grab the money. That way the money is
retained by the City up to $100,000 at October 1st. I think it behooves us
October lot to reevaluate and if we see a little light at the end of the
tunnel, even just a little light, I would be willing to go another $100,000
for an additional six weeks and if there is good light at the end of the
tunnel at the second evaluation, I would be willing to go to the third, but I
think we need to do it in steps and I think we need to be protected and I
think we've done it before where we don't give the money to the institution,
we retain the money, they present their bills and we pay the bills as
approved, not to exceed $100,000 at the first level, so that's where my vote
is right now. I would also request, Mr. Mayor, that Commissioner Dawkins or
Commissioner Range have to be on the board of directors and they would be not
in-house monitor, a staff person, but I think with their guidance there would
be a great help in giving comfort to this Commission with a Commissioner on
that board of directors. In-house staff person I think is a very, very good
idea as a monitor and that staff person is the one who would bring the
approved bills to the pay department, who would issue the checks. That's the
only way I know that no one can run in and grab the money and run to
Venezuela.
Mr. Dawkins: Mrs. Bellamy, there appears to be a need for financial erecting,
for a better word. Is there any way that the City of Miami could provide our
internal audits to assist Carey Tech in coming up with the financial status
there so that... and that would be money saved by the school, if we would
provide in -kind service in auditing.
Ms. Bellamy: We would provide that, yes.
Mr. Plummer: Why not get Miami Capital to do it? They got plenty of money.
Mr. Dawkins: Yes, but also got in-house audit service ourselves here.
Mayor Suarez: Yes, and he's present.
Mr. Dawkins: Yes.
Mr. Plummer: What's wrong... who is our City auditor?
Ms. Bellamy: Dr. Daniels is the director.
Mayor Suarez: Deloitte, Haskins and Sells, coupled with Sharpton and Company.
Ms. Bellamy: Our outside...
Mr. Dawkins: That little fellow sitting right there.
Mr. Plummer: That little fellow right there. Don't you need to do a little
pro bono work to help out?
Ms. Bellamy: We have three auditors, one of which is Sharpton and Brunson.
Mr. Plummer: Come up to the mike, we'd like to know your name, little fellow.
I don't know little fellow. Are you the outside auditor for the City?
Mr. Daryl Sharpton: Yes, I am part of the outside auditing, Commissioner.
Mr. Plummer: Don't you think that the need exists for a little pro bono to i
help out in this situation?
Mr. Sharpton: I think that some outside assistance may in fact be needed to
assist Carey Tech, yes.
_ Mr. Plummer: And you so volunteer?
Mr. Sharpton: I do.
Mr. Dawkins: And you got a contract with the City. He don't have to
volunteer. He's got a contract with us.
ss,
ss,
1$ August 11, 1909
Mr. Plummers No, no, this is above that. This is pro bono, this is a
freebie.
Mr. Sharpton: I will stand here and commit to doing a portion of the work
possibly, pro bono, but I'd like to scope out the engagement prior to snaking a
definitive...
Mr. Plummer: You're not listening.
Mr. Dawkins: But he's not in this alone.
Mr. Plummer: When is his contract up? When in the contract up that he used
to have?
Mr. Sharpton: You just hit it.
Me. Bellamy: I think he had started it.
Mr. Plummer: You haven't started yet?
Mr. Sharpton: The external audit, we have not.
He. Bellamy: They came one year, Commissioner.
Mr. Plummer: We are talking about roughly 90 days of auditing and we would
like your help.
Mr. Sharpton: I have not... well, I have agreed to help out to the extent
that we can, but I...
Mr. Plummer: That doesn't tell me anything, all right?
Mr. Sharpton: Well...
Mr. Plummer: What are you going to do, ten percent, or 90 percent? I was
hopeful that we could prevail upon you to do 100 percent for the next 90 days
pro bono.
Mr. Sharpton: I am willing to make a commitment in terms of assistingin.._
whatever way our firm is capable of assisting.
Mr. Plummer: Oh, that's all I wanted... that's fine, that's fine.
Mr. Sharpton: OK.
Mr. Plummer: Thank you. That saved you at least a good deal of money there.
I'll bet he'll never show up at a Commission meeting again.
Mayor Suarez: Madam Acting City Manager, and pursuant to Commissioner
Dawkins' questions about possible training of public service aides, police, or
any other kinds of services that this institute might render to the City,
would it be, would it make sense for us to also resolve to ask you,in the next
number of days until our regular session in September to look at the:
possibility of Law Enforcement Trust fund monies being used for anything
related to these kinds of trainings the Commissioner referred to. I see.a yes,
and I see a no. I want to hear from the yes. Mano, what is it?
Mr. Plummer: How about training soccer players?
i
Mayor Suarez: Well, say it on the mike. You don't have to be afraid of the
R' City Attorney. He might disagree with you. We've all disagreed before.
t, -
Mr. Surana: I think we need to customize certain programs to fund from that
money that has
Mayor Suarez: Customize?
._ Mr. Surana: Yes.
Mayor Suarez: I like that word. What do you mean?
X.
19 August 11I ]96�
Mrs Burana: Well, according to law, certain, the money has to be spent on
atttalb things.
Mayor Suarez: Right.
Mr. Surana: Because we have to look for those things and then work out a plan.
Mr. Dawkins: In other words, we have to structure it to fit What we want.
That's what he is saying.
Mayor Suarez: That's a better definition.
Mr. Surana: It is a training fund, second dollar.
Mr. Fernandez: At first blush, Mr. Mayor, without having the benefit of the
statute in front of me, those funds have very, very severe restrictions and
limitations. That doesn't mean that we will not be creative, together with
Mano Surana in trying to find a legal way of doing it.
Mr. Plummer: I believe that...
Mr. Dawkins: The only restrictions on those funds I think air, are it must be
crime related and it must be approved by the Chief of Police. That's the
restriction.
Mr. Plummer: I believed that statement up until the last meeting when we
sponsored a soccer league.
Mayor Suarez: Yes, we structured somehow and made it fit into some sort of a
soccer league.
Mr. Plummer: That's customizingl
Mayor Suarez: And that's as creative and customizing as you can get.
Mr. Dawkins: That's right, crime prevention.
Mayor Suarez: Commissioners, with those basic criteria and with the
understanding that we will of course seek to find additional funds, can I hear
a motion so that we can...
Mr. Plummer: Mr. Mayor, you heard my motion. If that's acceptable,2 so
move.
Mayor Suarez: Do you build into your motion the other safeguards that I
specified?
Mr. Plummer: Of course, sir. All safeguards that have been mentioned at this
table, I'll accept.
9 0
to teachers if that is the management decision that is made to keep the
school going. I don't include that in the statement about creditors, but the
money should not be going to general creditors, Mr. Sharpton as CPA to reviews
this operation because it would just not guarantee the continued operation of
this school. Let them litigate in court. Hopefully we will have a first
position on any receivables that are not prevented from having a lien on any
assets that the school has on the leasehold improvements on furniture and
fixtures, anything else that's not otherwise encumbered, and if not a first
position... we are not requiring a first position, are we?
Mr. Dawkins: Yes.
Mayor Suarez: We try to get a first position.
Mr. Dawkins: Try to get it, if we don't, we don't.
Mr. Plummer: Wait a minute, wait, excuse me. First position on what?
Mayor Suarez: On the things I just stated.
Mr. Plummer: They don't own the property, they got their...
Mayor Suarez: Furniture and fixtures, equipment, leasehold improvements, a
lot of it... the reason I said we're not going to be able to get a first
position on some of it, the equipment, a lot of it is either rented or
probably purchased with...
Mr. Plummer: First position is only on accounts receivable.
Mayor Suarez: Well, we are going to try to go on first position on any assets
that the corporation has.
Mr. Plummer: Let me just add, Mr. Sharpton sir, I would hope that when we
come back for what I'll call Phase II, October 1, that we will have at least a
financial picture, not necessarily a financial audit. I realize that takes a
lot, but I think this Commission needs to know the financial picture and I
think you can come about that determination within the next six weeks, a
picture, not necessarily a detailed audit. I think it's important.
Mr. Fernandez: Mr. Mayor, just a point of clarification, does the City
Commission intend for Miami Capital to be the loan creditor or is this a
direct loan from the City of Miami to this institute?
Mr. Plummer: What's the best way to go?
Mr. Fernandez: I don't know, I can't answer that but I...
Mr. Plummer: Does Miami Capital need money?
Mr. Fernandez: I need guidance on this.
Mr. Plummer: Is Miami Capital got...?
Mr. Dawkins: Let's wait until we get the money and I'll tell you where to get
it from. That's right, you just... let's find out where we are going to do
this.
Mr. Plummer: Well, I think you got another problem there that has to be
addressed. If they are going to be the source of funding, then they are going
to have to be the monitor, OK?...
Mr. Dawkins: Yes, by all means.
Mr. Plummer: ... and I think what you are wanting to do is to keep it in
house which means it's not them, it's in house, so I think that that money has
got to come from General Funds at this particular time, at least the first
segment of it, so that we can put an in-house staff person there with either
Commissioner Dawkins or Range on the board of directors.
Ms. Bellamy: Commissioner, since we were expecting that $100,000 in FY190,
beginning October 1, they would have to give us $100,000 check, Miami Capital
would.
21 August 11, 1989
n
Mr. Piwm6r: At a loan to the City?
Ms. Pellarmy: Yes.
Mr. Plummer: Well, I guess they think V61re good.
Ms. Bellamy: it would be the money that we would be receiving prior to
October 1, but we would be receiving it now.
Mr. Plummer: Oh, OK, you give us an advance loan.
Ms. Bellamy: Right.
Mr. Plummer: No, an advanced payment.
Ms. Bellamy: Not a loan, a payment.
Mr. Plummer: It is an advanced payment.
Mayor Suarez: Mr. Chairman of Miami Capital if you are going to address this
eminent body would you please come up to the mike, air.
Mr. del Cerro: I don't think we will be loaning you anything.
Mr. Plummer: You will be giving us...
Mr. del Cerro: It's your money.
Mr. Plummer: It's a prepayment.
Mr. del Cerro: I see it as your money, so...
Mr. Plummer: I like that kind of talk.
Mayor Suarez: Yes, returning our money, thank you, appreciate it, Juan.
Mr. Plummer: Mr. Mayor, I'm never going to attend another one of your five
minute meetings.
Mayor Suarez: Yes, this is a motion before us, do we have a second on the
motion?
Mrs. Range: I'd like to hear that motion repeated again.
Mayor Suarez: OK, J.L., do you want to try it again, or Mr. City Attorney?
Mr. Plummer: We would create a fund of $100,000 at which time bills approved
and presented would be paid by the City of Miami. The City would have a full
time in-house monitor who would be the presenter of the bills. A Commissioner
of this Commission shall be on the board of directors. We will reevaluate on
October 1 for the potential additional $100,000 based on productivity, is that
the word? Light in the tunnel is not a word, I mean, productivity.
Mayor Suarez: The increased viability of the agency.
Mr. Plummer: Yes. What were the other safeguards?
Mayor Suarez: We had that we would try to get a first position in any assets?
s
Mr. Plummer: First position on any assets of the corporation.
Mayor Suarez: And that we would in fact monitor so that it wouldn't be just a
pass -through to general creditors.
Mr. Plummer: No, I said in-house money.
Mayor Suarez: Oh, OK.
Mr. Plummer: I believe that covers it all.
22 August 11, 1►�lt.
I
14&yor Suareet
And
subject to looking at the financial statements, teake sure
they ate in order.
Mr. Plummer:
That's
prior to the second level.
Mr. risrnandezt
go,
the first $100,000 we are not going to require a financial
statement?
Mr. Plummer:
They
don't have it.
Mr. Fernandezt
All
right, correct. I'm just wanting clarification.
Mr. Plummer:
They
would have to produce it prior to the October 1st.
Mr. Fernandez:
So
long as it's clear...
1t
t
Mr. Plummer:
Wait
a minute, for clarification, it will not as we understand
be detailed audit
It will be a financial picture giving us the posture an
the auditor sees it.
Mr. Fernandez: All right, we still need a number of documents like we have
outlined in the memo, like a corporate resolution...
Mr. Plummer: Fine, I... that...
Mr. Fernandez: ... and all those other things first.
Mayor Suarez: Duly composed board and do you have any problem with building
in, because I would have a problem voting for it as you have stated, at least
having the provisional financial statement that they just told me they were
sending over.
Mr. Plummer: Oh, that's fine, anything they can forward to us now, but I
would also like Mr. Sharpton as an independent outsider to be giving us his
opinion as an auditor of what he sees as the financial picture.
Mayor Suarez: OK, please Darryl, make sure that we get to look at those
financial statements that were supposed to have arrived here a couple of hour
ago and I haven't seen them.
Mr. Plummer: That is my motion. Now let me ask a question. Mr. del Cerro,
how soon can you make that prepayment?
Mr. Dawkins: Right now, he got it in his pocket.
Mr. del Cerro: No, I have the money in my pocket, but the check is payable to
whom?
Unidentified Speaker: I don't know.
Mr. del Cerro: The check is payable to them, not the City of Miami. Now...
Mr. Plummer: Made payable, you can go cut another check for the City of Miami
for $100,000, just that simple. You can do that today, right?
Mr. del Cerro: I need two signatures. I have my signature...
Mr. Plummer: By Monday.
Mr. del Cerro: For sure, is Monday all right, or...?
Mr. Plummer: Yes, last meeting was...
Mrs. Range: Mr. Plummer...
Mr. del Cerro: Why don't we just...
Mrs. Range: May I, may I just one moment...
i
s Mayor Suarez: Commissioner Range.
s
s,
23
M
Mrs. Range: You know, we keep, I'm sure we don't intend to vacillate, but we
are saying now, is today all right, is Monday all right? Wednesday of this
week, Carey Tech was almost in the midst of a disturbance, of a riot out
there. City of Miami Police Department was there protecting your property, TV
stations were there and everybody else. You see, we are sitting here looking
at it from an armchair strategist viewpoint, but the people out there are
real. They are real, really mad people not understanding. Some two weeks or
more ago when we made the proposition that we would loan this money to Carey
Technical Institute, what we have to understand here is the fact that when
that information got to the media and it was made known that $300,000 was
forthcoming from the City of Miami, everybody was lined up and it has been
pure hell out there every day since, people out there demanding their money
you know, and if we say well, can we do today, and say, well, how about
Monday? We really don't know whether Carey Tech is going to be standing out
there when we get there or not. That's just how crucial this matter is.
Mr. Plummer: Mrs. Range, let me tell you what I just found out. The check is
made to Carey Tech, but let them endorse the check and make it payable to the
City of Miami and it's done immediately. Why not?
Mr. De Yurre: You can't, the bank won't accept it.
Mr. Plummer: All right, so you cut a new check this afternoon.
Mayor Suarez: Yes, these are procedural, mechanical things that can be solved
very quickly.
Mr. Plummer: They can cut a check.
Mayor Suarez: Tear that check and go back and please give us another one.
Mr. del Cerro: No, no, no, wait a minute. I have to tell you what's going
on.
Mayor Suarez: Well, what's your concern?
Mr. del Cerro: I think it's...
Mayor Suarez: Wait, wait, wait, certainly not on the issue of how we are
going to get $100,000 back from that...
Mr. del Cerro: No, I have the check right here. The problem is...
Mayor Suarez: That's what I wanted... Mr. Chairman, please, that's what I
want to clarify. I don't want to get into the issue of the mechanics for
giving us back a check for $100,000. We can solve that, I assure you. What
else, sir?
Mr. del Cerro: In order for me to change this check payable to the City of
Miami, the check has to be signed by two officers of the corporation. I'm one
of the officers, I need one more signature.
Mayor Suarez: Well, we got one signature, who is the other?
Mr. del Cerro: Yes, but the thing is, it is very simple. If you need for
Miami Capital to give you this check, what are you going to do with the check
I give you anyway?
Mr. Plummer: We are going to deposit it in a City of Miami account with which
the bills will be paid from.
Mayor Suarez: We are going to use the money to lend to the agency under our
disbursement mechanism set up by this motion.
Mr. del Cerro: OK, so when are the disbursements going to take place?
Mr. Plummer: Hopefully as early as Monday. They've got to present the bills
that are approved and they will cut the checks that same day.
Mr. del Cerro: All right.
Mr. Fernandez: No, excuse me.
24 August 11, 1949
Mayor Suarezi Not particularly a concern of yours either, but...
Mr. del Cerro: What's that?
Mayor Suarez: Not particularly a concern of yours either.
Mr. Fernandez: No, but legally, but Mr. Mayor...
Mr. del Cerro: Me?
Mayor Suarez: Yes?
Mr. del Cerro: Oh no, I don't care, I just...
Mayor Suarez: Thank you, thank you. You may sit down if you'd like.
Mr. del Cerro: But the thing is, I have to make a clarification. This cuts
our loan fund by $100,000.
Mayor Suarez: Oh yes it does. You have $100,000 less.
Mr. del Cerro: Less to lend.
Mayor Suarez: We all agree on that mathematical calculation.
Mr. Plummer: We don't want to ask how big is your loan fund.
Mayor Suarez: I think you had $600,000 before, so you have $500,000.
Mr. del Cerro: Well, no, it's not how much we have, it's how much we don't
have now, $100,000 less. You'll have a check...
Mr. Dawkins: Well, if you get to the point...
Mr. del Cerro: You'll have a check payable to the City of Miami by 5:00 p.m.
Mr. Dawkins: ... if you get to the point where Miami Capital is making all
the loans and you run short of $100,000, come back just like Carey Tech did
and I'll find you $100,000. I'll make you that promise.
Mr. Fernandez: Mr. Mayor, we need to make sure that before any disbursements
are made, we have all documents properly executed at the very least.
Mr. Dawkins: Mr. Mayor, I want to make certain how much money we got...
Mayor Suarez: That's right.
Mr. Dawkins: ... and that we're going to give the money and let's get out of
here. I'm tired of going back and forth. Are we going to loan the money? If
we are, let's loan it!
Mayor Suarez: We have a motion before us, do we have a second? That will
answer your question.
Mrs. Range: How much money is it?
Mayor Suarez: $100,000 with all sorts of possible further monies in the
future, but at this point, $100,000.
Mayor Suarez: I'll second.
Mr. Dawkins: I'll make a substitute motion. The substitute motion is
$100,000 now, another $100,000 October 1 and another $100,000 November 1, in
the event that they are in business and show promise to pay back.
Mrs. Range: I'll second the substitute motion for the sake of discussion.
Mr. Plummer: How is that different from my motion?
Mayor Suarez: Seconded for discussion. Mr. Sharpton, where are you going to?
The substitute motion we are discussing here. i..
25
Mr. Plumo r: Excuse me, may t ask how that differs from my motion? i don't
care, but I'm asking. How does that differ?
Mr. Dawkins: It differs in that you want to give them $100,000 October 1, I
want them to have $100,000 now and another $100,000 October 1, that's the
difference. That's two thousand.
Mr. Plummer: No, my $100,000 was now, October 1 and then six weeks after that
is what I said.
Mr. Dawkins: Another $100,000?
Mr. Plummer: Yes.
Mr. Dawkins: OK, I withdraw my motion.
Mayor Suarez: In view of that, we have no substitute motion.
Mrs. Range: Well, I'd like a discussion on the first motion.
Mayor Suarez: OK, Mr. Vice Mayor, you're Chair.
Mr. De Yurre: So I'd like to ask a question first from Commissioner Carey. -
Barbara? - because I want to hear from you whether what is being proposed here
will save the school, because if it's not, if this is not going to save the
school, then we have to decide whether we go ahead and just throw the money in
and without any hope of getting it back, or whether this that is being
proposed here will help you and will take care of the problem that you have,
the time table, the way it's being paid out and things of that nature.
Unidentified Speaker: That's the nature of my question.
Ms. Carey: I must honestly say that I don't think so. You know I'm very
grateful for all the help that you are trying to give to keep the school open,
but the way that you laid it out, I don't think it is going to keep the school
open. I know I won't be there October 1st if this is what you have proposed
and instead of taking that... putting it into operation that I know won't
survive because of the way you laid it out, I would not accept, because I
couldn't do that because it keeps me looking for money to operate and I
couldn't do that you know honestly, and say that I'm going to be there October
1st and I wish I could but I've looked at what the needs are and it is just —
going to be impossible and I'd rather just tell the community we don't have
any more money, I'll close the doors and we'll start over again and sometimes
if we can do that, but it is going to be very difficult for me to operate.
Mr. De Yurre: OK, on a partial payment plan, the thing is I don't know if we
have the $100,000 when we are talking about October 1, and I came in late
because I had a closing that I was attending. Is it because of the fact that
it's the next fiscal year that we're talking about, October 1, or was that a
date that as picked at random?
Mr. Plummer: It's $100,000 now, another $100,000 in the next fiscal year and
then the third payment would come six weeks after that.
Mr. De Yurre: OK, now is that because it's been determined here that we don't
have the money for this fiscal year?
Me. Bellamy: No, Commissioner...
Mr. Plummer: We don't even have the first $100,000 except through what they
are giving to us.
Mr. De Yurre: All right, we are getting that from over here?
Ms. Bellamy: That's correct. -
r_
Mr. De Yurre: Now, the thing is, would there be another $100,000 available
from this budget year that could be given prior to October 1?
Mr. Dawkins: September 1?
26 August. 11, 1989
Ms. Bellamy: My budget director is telling me that the money could not be
identified another $100,000 until next fiscal year.
Mr. Dawkins: You want to bet?
Ms. Bellamy: October 1.
Mr. De Yurre: Well, come on the record, because I, you know, I want to get
this stuff now.
Mr. Manohar Surana: The additional $100,000, October 1 can come from next
year's budget.
Mr. De Yurre: Can it be given prior to October 1? Because yes, the thing is,
and based on what Commissioner Carey is saying, I can't vote for something
that's not going to help.
Mr. Surana: It's a legal question.
Mr. Dawkins: You don't need no legal person. Let me ask you a question, same
question he's asking you. You can't find $100,000 in our budget in the 189-
'88 fiscal year budget? There's not $100,000? I didn't say what it was for,
I didn't say what we're using it for, I said is there $100,000. I didn't say
$100,000 for Carey Tech. I said, is there $100,000 in the budget?
Mayor Suarez: You mean in the fund balance?
Mr. Dawkins: Yes, in the fund... thank you, Mr. Mayor.
Mr. Surana: Fund balance?
Mr. Dawkins: In the fund balance is there $100,000?
Mr. Surana: Yes.
Mr. Dawkins: OK, that's all, thank you.
Mayor Suarez: Commissioner, anything further?
Mrs. Range: Yes, Commissioner, Mr. Mayor, I really think that unless we can
go with this $300,000 loan, given if it's necessary in monthly increments,
then I believe we are wasting time. I think we could sit here and in the next
fifteen minutes spend this $100,000 if we are planning to give her today. I
think we can spend this with Commissioner Carey's assistance in telling us
what is due before we even leave this Commission meeting and there is
absolutely no point in loaning her $100,000 and waiting until October 1st to
loan another $100,000. What is going to happen in the interim? That's the
question and if we...
Mr. Plummer: Can I answer that?
Mrs. Range: Well, as soon as I get through, Commissioner Plummer.
Mr. Plummer: Sure.
Mrs. Range: If we give $100,000 now and everything becomes delinquent or is
delinquent two weeks, three weeks, a month from today, what are we going to
do throughout the entire month of September while they are waiting? She will
be here shedding tears again. Again, it just doesn't make sense and we either
need to decide that we are going to make the $300,000 loan over a period three
months if it's necessary or leave it alone. Now, that's the way I see it,
Mr. Plummer: Look, let me answer that my way. Mrs. Range, if I had which
cannot be done, a guarantee that giving the $300,000 was going to save that
school and put it back on it's feet, I'd vote for the $300,000. We don't have
that guarantee, we can't give that guarantee. There's no way we can get that
guarantee. I am trying to practice damage control. I said that we give a
hundred and if we see the light that there is improvement of a turnaround,
then we go with another hundred and then another hundred, that we don't lose
the entire $300,000, that at the end of the October 1 basis, if we see there
is no improvement, there's no chance of survival, we cut our loss at $100,000.
That's what I'm trying to say.
'yj
August 11, 1989
0 V
Mrs. Range: But, Commissioner Plummer...
Mr. Dawkins: Mr. Mayor, Mr. Mayor, I offer a substitute motion and the
substitute motion is with Dr. Carey's promise that this will help her out.
We give her $100,000 now and we monitor it and we give another $100,000
September 1 and the third $100,000 October 1 and in the event that Dr. Carey
sees that it can't remain afloat, that she will give us her word of honor that
she will not come back and accept the other $100,000 in September, with the
same provisos that J.L. attached them.
Mayor Suarez: So moved. Except that determination should not really be up to
her, it should be up to us, that's why I have problems with that motion, but
I...
Mr. Dawkins: But see, it is up to us, but I'd like for her to say that she
feels that she can work with that. If she can't, then I'm saying I can't work
with that either, that's all and then we have to go another route.
Ms. Carey: Thank you, I think I could work with that and I have no problems
with the monitoring of the monies. In fact, I don't want to be responsible by
myself. I'd like for this community to be responsible for saving that
institution and keeping from having four hundred and some students on the
streets again and I think it is an investment in that community and so I'd
love any kind of monitoring, auditing, that you can give me. I mean, I
certainly don't want that burden just on me and I would invite anybody over
there to help me make sure that that money is spent to save that school,
that's all I ask for, that we save those students from going on the streets
again and save that institution so it could be a viable training institute in
that community, so I have no problems with that. It's just that I know that I
could not tell you that I could survive between now and October 1st with
$100,000, I know I can't.
Mr. Plummer: How many students are presently there?
Ms. Carey: We have accounted for 443 students. That means we have accounted
for their attendance and their academic progress. When I got there, they told
me there were 700 students in that school and I cannot find the 700, that's
why I tell you that we have to get the documentation in place so that we can
satisfy the government, Federal government, as to the number of students based
on their attendance and their satisfactory academic progress and I have
iaccounted for 443 students at this time. And if I close those doors, that
many students will go out on the streets again and I don't think they deserve
that and that's why I'm trying to save it, yes.
Mr. De Yurre: Under Miller's motion will that work for you, is it doable for
you?
Ms. Carey: I said that I think that that would be doable. You know, I cannot
guarantee anything. Nothing is guaranteed in this world, but I think that
would save it. I have spent, I have told you over $100,000 in the one month
that I've been there and that's because I've streamlined and trimmed the
budget so that I could live with their budget that I thought would be the
right pupil -teacher ratio for that school.
Mr. De Yurre: OK, well, the way I see it, and I'll second Miller's motion...
Mayor Suarez: OK, I was going to ask if you were seconding. Moved and
seconded.
Mr. De Yurre: I think that we have to look at what our goal is and our goal
right now is not preventing a loss of $300,000 or $200,000, or $100,000. Our
goal is to save the school and if in the process of saving the school, we
minimize our losses, that's fine, but we cannot put in jeopardy the saving of
the school in order to minimize our potential loss and if we can understand
that, then we have to part from the point of what does it take to keep it
going to where it will survive and you're saying that what Miller has moved
and I have seconded, will bring the survival of the school, then you know, I
think that's the way to go.
Mr. Dawkins: Mr. Mayor, I'd like to say...
28 August 11, 1989
Mayor Suares: Commissioner bawkina.
Mr. Dawkins: ... that I can understand the position that she's taking. If we
give her $100,000 for three months she has no cash flow and as you said, she's
out looking for money again, but maybe with the $100,000, it will give her the
cash flow necessary to operate and be functional, but there again, nobody
knows that this is a given. The Federal government may decide tomorrow not to
do nothing in nowhere, so all the accounts receivables that are due in will
riot come in because the Federal government decided not to put any more money
in the education. I mean, so nothing is a given, so we just have to take a
chance.
Mayor Suarez: We have motion and a second, any further discussion? If not,
call the roll.
Mr. De Yurre: Again, with all the safeguards that are in place.
Mr. Dawkins: J. L. mentioned.
Mr. Range: With all the safeguards and that the monthly payments be made. One
payment made today, one payment September 1st...
Mr. Dawkins: Monday, one Monday, Mrs. Range, because he can't get the check
back until Monday.
Mr. Plummer: Well, let me understand now, the safeguards which I placed,
there will be no payment to Carey Tech. It will be presentation of bills and
paid upon presentation of bills.
Mr. Dawkins: That's money, yes.
Mr. Plummer: Yes, OK.
Mr. Dawkins: That's money just the same.
Ms. Carey: Does that mean that you would have someone there so that they
could make payment, that the people won't have to run around trying to...
Mr. Plummer: The way we've done it before, is that you bring us a handful of
bills that have been approved by the board. You could do that Monday morning
and if they've been approved by the board, that the City would pay them up to
$100,000 on Monday. —
Ms. Carey: That's fine.
Mr. Dawkins: Would you do it... Dr. Carey, I would suggest that Monday
morning fax them all up here. This is a modern world. Fax them up here and
when you get up here, the check will be ready. When you bring them, you got
to sit and wait until we go... Fax them and by the time you drive from Liberty
City, you got the check.
Ms. Range: And again we are saying, $100,000 on Monday, $100,000 on the first
of September, $100,000 on the first of October.
Mr. Dawkins: That is the motion.
Ms. Range: I'm ready to vote. _
Mayor Suarez. Moved and seconded. Any further discussion? If not, please
call the roll.
The following motion was introduced by Commissioner Dawkins, who .moved
its adoption:
MOTION NO. 89-752
THE ESSENCE OF THE HEREINABOVE MOTION IN CONNECTION
WITH A $300,000 LOAN TO CAREY TECHNICAL INSTITUTE IS
CONTAINED IN R-89-753.
Upon being seconded by Commissioner De Yurre, the motion was passed and
adopted by the following vote:
29 August 11, 1909 -
AYES- Commissioner M. Athalie Range
Commissioner Miller J. Dawkins
Vice Mayor 'Victor De Yurre
NOES: Commissioner J. L. Pluximer, Jr.
Mayor Xavier L. Suarez
ASSENT: None.
COMMENTS MADE DURING ROLL CALL:
Mr. Plummer: I'm going to have to vote no. I've made my point. I want to
give the money, but I think there has got to be a time in there in which we
have some monitoring to see that there is progress being made with a potential
of success at the end of the line and I just don't think two weeks is adequate
and that's what you are talking about, the second payment in two weeks. Hell,
it's going to take them that long to get the picture ready and the records
together, so I just have to vote no, as much as I want to help, I can't vote
for it. The time frame which I laid out I thought was reasonable. I feel
that this is too quick, it's too soon.
Mayor Suarez: I'm going to vote no, and Commissioner Carey, let me say that
since the matter has passed, that in addition to what this Commission has done
today, I would have been disposed, if we'd gone with the other motion, which I
felt was the more correct one from the City's standpoint to have helped and I
still am willing to help with a private effort to raise funds and I am going
to offer that to you today because I think that I have a few ideas already
that I'll discuss with you privately on how to raise money for the school to
keep you going.
COMMENTS AFTER ROLL CALL:
Ms. Range: Mr. Mayor it might be satisfying...
Mr. Fernandez: Mr. Mayor...
Mrs. Range: ... for you to know, that we are not sitting still, that is Carey
Tech is not sitting still. Many circumstances are being brought about to
attempt to raise additional monies. That's already in the making.
Mayor Suarez: I just have a few ideas that just occurred to me during these
proceedings, including some that would come totally at my discretion, so we
can discuss that. Yes.
Mr. Plummer: Mr. Mayor, may I make a motion at this time that Commissioner
Miller Dawkins be nominated to be from the City Commission on that board.
Mayor Suarez: I don't know that he wants to be on the board, do you?
Mr. Plummer: He said he would.
Mayor Suarez: OK.
Ms. Carey: I would love to have them, he and Commissioner Range. He's
already asked...
Mr. Plummer: You can't have two, it is a violation of the Sunshine...
Ms. Range: In view of the fact I'll be passe in just a few months, it's all
right.
Mayor Suarez: Well, you could, but you'd have to notify the media every time
you have a meeting, which may not be a bad idea to always notify the media.
Mr. Plummer: And Mr. Mayor, in conclusion...
Ms. Carey: OK, I just want to thank all of you and say that I understand your
concerns and I wish that I was able to accept the offer that Commissioner
Plummer did, but I not would not accept something knowing that it would
predispose me to failing before I get started.
Mr. Plummer: Quit while you are ahead.
L3
Me. Careyt Yes.
Mr. Plummnert To the Administration I would ask that within two weeks, that
you come back with Miller Dawkins' idea, is there any training that can be
done by this institution for the City of Miami in which we could then
helpfully lend to the success in bringing it back on its feet and I would ask
that be done within two weeks and be forwarded to this Commission.
Mr. Fernandez: Mr. Mayor, you need a motion to include Miller Dawkins as a
member of that board. You also need a motion rescinding the previously passed
resolution for this same purpose and included Community Development moni6s
which no longer is applicable...
Mrs. Ranget Second.
Mayor Suarez: So moved and seconded with all of those provisos into it. Call
the roll.
Mr. Fernandez: Yes, and...
The following resolution was introduced by Commissioner Plummer, who
moved its adoption:
RESOLUTION NO. 89-753
A RESOLUTION AUTHORIZING THE PROVISION OF AN OPERATING
CAPITAL LOAN IN THE PRINCIPAL AMOUNT OF $300,000 TO
CAREY TECHNICAL INSTITUTE, INC. IN ACCORDANCE WITH
CERTAIN TERMS AND CONDITIONS, AS DESCRIBED HEREIN,
ALLOCATING FUNDS FROM THE SPECIAL PROJECTS AND
ACCOUNTS, FUND; APPOINTING COMMISSIONER MILLER J.
DAWKINS AS AN EX OFFICIO MEMBER OF THE BOARD OF
DIRECTORS OF THE CAREY TECHNICAL INSTITUTE, INC. TO
SERVE AS THE CITY'S LIAISON AND REPRESENTATIVE TO THE
CAREY TECHNICAL INSTITUTE, INC.; AND RESCINDING
RESOLUTION NO. 89-709, ADOPTED JULY 27, 1989.
(Here follows body of resolution, omitted here and on
file in the Office of the City Clerk.)
Upon being seconded by Commissioner Range, the resolution was passed and
adopted by the following vote:
AYES: Commissioner J. L. Plummer, Jr.
Commissioner M. Athalie Range
Commissioner Miller J. Dawkins
Vice Mayor Victor De Yurre
Mayor Xavier L. Suarez
NOES: None.
ABSENT: None.
Mayor Suarez: Do you have somebody in mind to monitor on a full-time basis?
Mr. Herb Bailey: Yes, as a matter of procedure, Commissioners, we have an
account that the money can be deposited in so that he can get the checks
Monday morning and we...
Mr. Plummer: The Herb Bailey retirement...
Mayor Suarez: But you have some specific person? Am I hearing you recommend
Jeff Watson to...
Mr. Bailey: We have a person and we've already done this before, so it can be
expedited Monday and Jeff Watson will be in charge of it.
Mr. Fernandez: Mr. Mayor, I gather that the Commission is delegating to the
Administration the ability to set the terms and conditions for repayment of
the loan and the like in a reasonable basis, or would...
Mr. Dawkins: Bring it back to us. We're setting nothing.
Mr. Fernandez: Well, but then we need to have that right now because...
Mayor Suarez: Well, we thought we knew the terms. We thought we knew the
terms. Wait a minute, let's solve this. We thought we knew the terms. I
thought they were supposed to be three percent and weren't you proposing 15
years?
Ms. Bellamy: Yes, mayor, that was in the previous resolution that we just
rescinded. OK, that was...
Mayor Suarez: You want us...
Ms. Bellamy: That was three percent, 15 year amortization and term of loan,
seven years.
Mrs. Range: Same terms.
Mayor Suarez: OK, amortize it over 15 years, but seven year term?
Ms. Bellamy: Right.
Mr. Fernandez: Yes, before you go, Mr. Mayor, I need an emergency ordinance
passed in order to be able to appropriate and then be able to have the money.
Mayor Suarez: OK, I'll entertain a motion on that emergency ordinance as
stated.
Mrs. Range: I'll move it.
Mr. Dawkins: Second.
Mayor Suarez: Moved and seconded. Read...
Mr. Fernandez: And the emergency ordinance reads as following: an emergency
ordinance appropriating and amount of $100,000 from Miscellaneous Revenues
Fund and another $100,000 from Fund Balance Fund to be deposited in this
special projects and account number in the sum total of $200,000 to take care
of what has been discussed here this afternoon in relation to the loan to
Carey Tech,. with a repealer provision and a severability clause. Two
readings, and emergency ordinance requiring four -fifths.
Mr. Dawkins: So move.
Mr. Plummer: Whoa, whoa. An emergency ordinance, we've got a three -two vote
right now. Repeat the motion.
Mr. Fernandez: I'll read again what the emergency ordinance has...
Mayor Suarez: He is formalizing it. I'll vote for it because of... to be
able to...
Mr. Plummer: Formalizing the terms?
Mayor Suarez: Right, that we... we are already on the record as voting
against, but...
Mr. Plummer: Fine, I have no problem.
Mayor Suarez: Right. Call the roll on the emergency ordinance.
32
sugv�st
�$
AN 01RGENCY ORIIINANC2 APPROPRIATING THE SUN OF
$300,000 IN SUPPORT OF THE PROGRAM OF CARRY TECHNICAL
INSTITUT8, INC., A FLORIDA NOT FOR PROFIT CORPORATION
("CARRY TECHNICAL"), UPON CARRY TECHNICAL'S COMPLIANCE
WITH THE TERMS AND CONDITIONS SET FORTH IN ENABLING
LEGISLATION AND LOAN AGREEMENTS(S) TO BE EXECUTED BY
CARRY TECHNICAL, SAID $300,000 CONSISTING OF $100,000
RECEIVED FROM MIAMI CAPITAL DEVELOPMENT INC. FROM ITS
LOAN POOL FOR FY 1988-89 AND OTHER FUNDS CURRENTLY
APPROPRIATED TO MIAMI CAPITAL DEVELOPMENT, INC., WITH
MONIES TO BE MADE AVAILABLE BY AUGUST 15, 1989 TO
CAREY TECHNICAL, AND FURTHER CONSISTING OF $100,000
FROM MISCELLANEOUS REVENUES OF THE CITY OF MIAMI FOR
FY 1988-89, TO BE MADE AVAILABLE BY THE CITY MANAGER
TO CAREY TECHNICAL ON OR ABOUT SEPTEMBER 1, 1989, WITH
THE SUM OF $100,000 TO BE MADE AVAILABLE FROM
MISCELLANEOUS REVENUES OF THE CITY OF MIAMI IDENTIFIED
BY THE CITY MANAGER, TO CAREY TECHNICAL INSTITUTE ON
OR ABOUT OCTOBER 1, 1989, ALL OF THE FOREGOING TO BE
TRANSFERRED AND DEPOSITED IN CITY OF MIAMI SPECIAL
PROJECTS AND ACCOUNTS FOR THE SOLE AND EXCLUSIVE
PURPOSE OF FUNDING THE CONTINUED OPERATIONS OF CAREY
TECHNICAL, IN ACCORDANCE WITH ENABLING LEGISLATION AND
THE LOAN AGREEMENT(S) FOR SAID LOAN; CONTAINING A
REPEALER PROVISION AND A SEVERABILITY CLAUSE.
Was introduced by Commissioner Range and seconded by Commissioner
Dawkins, for adoption as an emergency measure and dispensing with the
requirement of reading same on two separate days, which was agreed to by the
following vote:
AYES: Commissioner J. L. Plummer, Jr.
Commissioner M. Athalie Range
Commissioner Miller J. Dawkins
Vice Mayor Victor De Yurre
Mayor Xavier L. Suarez
NOES: None.
ABSENT: None.
2 1 ".N
2. A Rttl PAIMS DEPARTMENT TO PARTICIPATE IN FPL'S OUTDOOR MotTIVO
PROMMM - Install lighting fixtures in approximately 30 City parks -
Mitetute pertinent documents.
r.+--.—.r........r----srr..r.ws:.+.:.y..r.r-.r-...----w—.r...r.r----....r....:.----..ar�..r�.rr.w.«:arwra
Mr. De Yurre: Mr. Mayor, I have a...
Mayor Suarez: Mr. Vice Mayor.
Mr. De Yurre: ... special item here.
Mr. Dawkins Mister... go ahead. He wants to extend the meeting.
Mr. De Yurre: We are lighting up ten City parks with security lighting and we
needed to get an OK from the Commission and I'm moving this resolution to go
ahead and contract with Florida Power and Light to start the program of
lighting up our City parks.
Mayor Suarez: So moved.
Mrs. Range: Second.
Mayor Suarez: Any discussion on that? If not, call the roll.
The following resolution was introduced by Commissioner De Yurre, who
moved its adoption:
RESOLUTION NO. 89-754
A RESOLUTION AUTHORIZING THE CITY OF MIAMI, DEPARTMENT
OF PARKS, RECREATION AND PUBLIC FACILITIES TO
PARTICIPATE IN FLORIDA POWER AND LIGHT COMPANY'S
OUTDOOR LIGHTING PROGRAM, CONSISTING OF THE
INSTALLATION AND MAINTENANCE OF LIGHTING FIXTURES AND
UTILITY COSTS THEREFORE IN APPROXIMATELY 30 CITY
PARKS, FOR A MINIMUM THREE (3) YEAR PERIOD FROM THE
TIME OF INSTALLATION, RENEWABLE ANNUALLY THEREAFTER;
AUTHORIZING THE CITY MANAGER TO EXECUTE THE NECESSARY
DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY,
WITH FLORIDA POWER AND LIGHT COMPANY TO IMPLEMENT SAID
PROGRAM, ALLOCATING FUNDS THEREFOR IN A TOTAL
ESTIMATED AMOUNT NOT TO EXCEED $51,000 PER YEAR FROM
THE ANNUAL OPERATING BUDGET OF THE DEPARTMENT OF
PARKS, RECREATION AND PUBLIC FACILITIES, SUBJECT TO
RATE CHANGES AS MAY BE APPROVED BY THE FLORIDA PUBLIC
SERVICES COMMISSION, AND SUBJECT TO THE AVAILABILITY
OF FUNDS FOR SUBSEQUENT FISCAL YEARS.
(Here follows body of resolution, omitted here and on
file in the Office of the City Clerk.)
Upon being seconded by Commissioner Range, the resolution was passed and
adopted by the following vote:
AYES: Commissioner J. L. Plummer, Jr.
Commissioner M. Athalie Range
Commissioner Miller J.`Dawkins
Vice Mayor Victor De Yurre
Mayor Xavier L. Suarez
NOES: None.
ABSENT: None.
:
.4.4�iiYlirr O.aiuJLrrrr.r rrirrriiiiL.►i�f��:iG ririrrr------.r..— — — — — — — — — — — — — — — — — — — — rr/i�r.r.
3. DISIGNATE COMMISSIONER J.L. PLUMMER, JR. TO SERVE AS THE REPRESENTATIVE
OF THE CITY OF MIAMI COMMISSION ON THE DADE COUNTY PERFORMING ARTS
CENTER TRUST.
----w-------r---------------------------------------r---------r..r----r--
Mr. Fernandez: Mayor Suarez, do you want to appoint Mr. Plummer to a very
Important trust...
Mayor Suarez: Any Commissioner have any problem with my appointing, this
Commission appointing Commissioner Plummer to the Dade County Performing Art
Center Trust so that he can attend the next meeting even though...
Mr. Dawkins: So move.
Mrs. Range: De Yurre moved it and I second.
Mayor Suarez: Moved and seconded, call the roll.
The following resolution was introduced by Commissioner Dawkins, who
moved its adoption:
RESOLUTION NO. 89-755
A RESOLUTION DESIGNATING COMMISSIONER J.L. PLUMMER,
JR. TO SERVE AS THE REPRESENTATIVE OF THE CITY OF
MIAMI COMMISSION ON THE DADE COUNTY PERFORMING ARTS
CENTER TRUST.
(Here follows body of resolution, omitted here and on
file in the Office of the City Clerk.)
Upon being seconded by Commissioner Range, the resolution was passed and
adopted by the following vote:
AYES: Commissioner J. L. Plummer, Jr.
Commissioner Rosario Kennedy
Commissioner Miller J. Dawkins
Vice Mayor Victor De Yurre
Mayor Xavier L. Suarez
NOES: None.
ABSENT: None.
THERE BEING NO FURTHER BUSINESS TO COMB BEFORE THE CZTT
COMMISSION, TH$ MEETING WAS ADJOURNED AT 3:58 P.M.
Xavier L. Suarez
MATOR
CITY OF MIAMI
DOCUMENT INDEX
PROVIDE OPERATING CAPITAL LOAN OF
$300,000 TO CAREY TECHNICAL -
INSTITUTE,INC. UNDER CERTAIN
TERMS AND CONDITIONS -APPOINT
COMMISSIONER MILLER J. DAWKINS
AS EX-OFICIO MEMBER OF THE BOARD
OF DIRECTORS OF CAREY TECHNICAL
INSTITUTE TO SERVE AS THE CITY'S
REPRESENTATIVE AND LIAISON TO
THE INSTITUTE -RESCINDING R-89-709.
AUTHORIZE PARKS DEPARTMENT TO
PARTICIPATE IN FPL'S OUTDOOR
LIGHTING PROGRAM. INSTALL
LIGHTING FIXTURES IN APPROXIMATELY
30 CITY PARKS. EXECUTE PERTINENT
DOCUMENTS.
DESIGNATE COMMISSIONER J.L. PLUMMER,
JR. TO SERVE AS THE REPRESENTATIVE
OF THE CITY OF MIAMI COMMISSION ON
THE DADE COUNTY PERFORMING ARTS
CENTER TRUST.
AUGUST 11, 1989
OVAL CM IM
(RESOLUTIONS)
89-753