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HomeMy WebLinkAboutM-87-0272It TO. CESAR ODIO City Manager FROM VATTY HIRAI City Clerk CITY OF MIAMI, FLORIOA INTEROFFICE MEMORANDUM DATE: March 2, 1987 FILE: SUDJECT: Transcript of Alleged Discrimination b Linbeck Co. rNiami REFERENCES: Arena ENCLOSURES: Pursuant to request of the City Commission during discussion of agenda item 27, at the meeting of February 26, 1987, attached hereto please find completed transcript of said discussion, as well as copy of excerpt of a previous discussion during the Commission meeting of January 22, 1987. These transcripts are to be part of the packet which the administration will carry with them when they go to meet with representatives of Linbeck Co. If we can be of further assistance, pelase do not hesitate to call. MH:sl cc: Honorable Members of the City Commission Lucia A. Dougherty, City Attorney l d gi§ i e' �"iafii `sari ;;:.,�:� ;•:.,;lic.:.•s.,. .: a � �:.. •._ �..�.... 57 V —r W —272 87-272 V. I 7 - ----------------------------------------------------------- 26. DISCUSSION CONCERN,,' ALLEGED DISCRIMINATION PRACTICES BY THE LINBECK COMPANY AT MiAMI ARENA SITE. ----------------------------------------------------------------- Mr. Dawkins: Mr. Mayor, can we take 27 now, so we can get to it before lunch, please? Mayor Suarez: Yes, Commissioner. Yes - Item 27. Mr. Dawkins: Mr. Mayor and fellow Commissioners, we have been going through this ever since we started, and for some reason, the... we have no problems with the developer, and I would like to go on the record, so the media will understand that we have no argument at all with the entity that's attempting to get an N.B.A. team, and the stadium will be ready, and we will see to that. But we also have to realize that we have people who work in the City of Miami, pay taxes in the City of Miami, that are not being given a fair shake on this job. Is there anybody here from Linbeck? (SILENCE) OK, so... Mayor Suarez: We can still... Mr. Dawkins: We will; no problem. OK, now, I would like to present to this... what we have here, to show that these people are not operating in good faith. Nov, we have numerous complaints, and the first one I'd like to take up is from the carpenters. Will one of the carpenters come up here and tell us the problem that you've got - alleged improprieties on this job? Mr. Gustavo M. Figueroa: Good morning, Honorable Mayor... Mr. Dawkins: And I think, and I want to say now: Linbeck has a right to request to be here at the next meeting,, and we'll come back and go through this, if we have to. Mr. Figueroa: Let me distribute this package to you. (PAUSE) Good morning, my name, for the record, is Gustavo Figueroa; I reside at 231 Northwest 134th Court, Miami, Florida. I'm Director of Organizing for the State of Florida, for the Carpenters' Union. Good morning, Honorable Mayor, Honorable Commissioners, City Manager, ladies and gentlemen. Initially, the primary reason for the South Florida Carpenters District Council undertaking an informational campaign against Xavier Structures, Incorporated, which happens to be a wholly -owned subsidiary of Linbeck Construction, also non -minority, at the Miami Sports Arena Project, is because of the substandard wages and substandard benefits - in this case, no benefits being paid or afforded to employees in the carpentry field. Construction carpenters do not enjoy the privileges of working regularly, or having the luxury of job security like other industries. This is so, sometimes, because of the adverse nature of the construction industry, where factors such as inclement weather conditions, delays in deliveries of materials, and other legal and economic reasons that exist. In the process of our labor dispute being taken to the public's awareness by displayed picket signs at the { Miami Sports Arena project, the community and members of the South Florida Carpenters District Council discovered the so- called "good faith efforts" to employ local residents, as follows: (a) no hiring signs at job site trailers and perimeter fence bordering project; (b) no advertisement through local want ads in local newspapers or media channels; (c) imported a majority of the carpenter work force from out of State and areas outside of Dade County; (d) would not use referral system designated by the Southeast Overtown/Park West Neighborhood Jobs Program for several weeks; (e) have not yet hired the first locah7 87- fd 1 February 26, 1987 ur s I At Hispanic or non -minority carpenter; (f) locked out prospective applicants from seeking employment directly; (g) misleading prospective applicants on pay structure and on the future employment possibilities; (h) evidence of substandard wages being paid. When the community carpenters seek employment in the construction industry, it is usually sought through direct hiring procedures, through labor organizations, through employment agencies, government agencies, and through local newspapers, radio, and media channels. The job opportunities available to local carpenters have been denied by the actions of Xavier Structures, Incorporated. Mayor Suarez: Let me ask you one question on one of the points that you made, if I may. Commissioner? Mr. Dawkins: Go right ahead, Mr. Mayor. Mr. Figueroa: Yes, sir. Mayor Suarez: Since the last meeting, where all of these complaints were aired, did they at least remove the "no hiring" signs? Mr. Figueroa: No, sir. Mayor Suarez: Do you know of anyone being hired at the site since that Commission meeting, even... Mr. Figueroa: Yes, sir, there has been quite a bit of hiring involved in there. We consider that the lack of good faith efforts exerted and displayed by the contractor, which has become a detriment to the residents of this community, by not supporting the economic base which it was intended to foster in the first place. We will continue to uphold the standards this community stands for. I'd like to point out that we've got evidence, we've got documented pictures regarding the "no hiring" signs - if you'd like to... I'd like to put that as part of the record, introduce it - that are still existing. Mayor Suarez: Do you have those pictures that show all of the out -of -State plates, too? Are you going to introduce those? Mr. Dawkins: Can you kind of speed this up, because we're trying... Mr. Figueroa: Yes, I can, in fact... Mr. Dawkins: ... I'm trying to get through this by twelve. Mr. Figueroa: ... inside the package that I, basically, made available to all of you today, there is a Minority Participation Agreement, and, basically, where it regards, on pages six through eight, it spells out, basically, the intent of the City and Decoma, the developer, Miami Sports Exhibition Authority and its general contractors, in order to seek employment opportunities, and also the contract portion of the work to be awarded to minorities in regards to the total contract. That's spelled out specifically on pages seven, eight, and... you have that before you. It also spells out, on page eleven, the requirements regarding the work force hiring. We have a list for you of all the out -of -State tags that have been recorded there in the initial first couple of weeks that we were out there. The ones with the asterisks reflect that they're still on the site. We also have the Sroward County and other counties within the State of Florida that are reflected. We have an observation report that we conducted on February 24th, 1987, of the work force, from what we can tell, from the employees that were on site that specific date. We still reflect quite a few from out of State. We have a reflection of what the breakdown would be, in regards that if the execution according to the Minority Participation Agreement would be, regarding the total contracts to be awarded to minorities, prospectively, for $5,683,950. That would be the 7 n fd 2 February 26, 1987 57--3 goal, to meet 17 percent, in regards to the total contract price, as it's indicated in the Minority Participation Agreement. We have in the package several of the press releases we let out in the community; financial report in regards to... and Secretary of State corporation report regarding Linbeck and its subsidiaries. We have an affidavit from one of our employees that was inside the project, and how he was misled and what were the... you know, exactly what transpired while he was inside the project - the fact that he was told that he was going to get paid $11, and then when his paycheck came in, reflected only $10, and then they started playing all sorts of games with him. And we have several other affidavits, which are not available right now, that we could possibly submit later on at a future date. We also have the Department of Labor, since the issue of prevailing wages has come up several times, regarding that there is no prevailing wage in the State of Florida: that might reflect to be true, but there is at a county level and a regional level. And you have enclosed with you the latest Department of Labor prevailing wage decision, and regarding where the carpenters in the area should be getting the prevailing wage of $12.40 plus $1.73 for the fringe benefit packages. You have a couple of the check stubs as documentation, as proof of what allegations are made. You have a list of a hundred or so more applicants, that went inside the project, regardless of the *no hiring" signs, applied for a job - all right? Their names weren't even documented in most of the cases; were told to come back within a week or two weeks, while some other applicants that said they were from out of State got hired directly; immediately, on the following day. You have some other articles regarding... Mrs. Kennedy: Gus, I also understand that some people from out of State were paid a higher wage? Mr. Figueroa: That is correct. According to moss of the... they have a strange operation going there, going on on that particular project right now. Some days the foremen become carpenters, and they actually work with their tools, and the ones that are from out of State, most of them, have been getting anywhere in the range of $15 to $16 dollars, plus their benefits, to, basically, reside here in Florida while they're on a temporary basis. Mayor Suarez: Let me get one procedural thing in. Madame City Clerk, would you prepare a transcript, a full transcript, of his testimony and the Commission's handling of this issue, so that we can get it to Linbeck, and let them know just how these allegations are being stated. Mr. Figueroa: Enclosed you see where AGC... a letter was sent to us in regards to the association that we negotiate our contracts, requesting a meeting with Linbeck's officials regarding negotiations of a contract, and the membership sheet, which includes the Linbeck addresses, from Louisiana and Houston, Texas, as their main offices, and a letter that I, basically, sent to Linbeck in regards to negotiations, and turning down their offer. Enclosed also find a public safety issue, which is one that we've been complaining about, and we've been lied to time after time, in regards to the fact that there was going to be four -foot walkways, barricades, erected around the property, to secure the safety of the public, because we have been participating from day one, in the middle of North Miami Avenue traffic. And we had one incident where one of our members got Injured out there, and at the same time we reflected the concern, not only for our members but for the community, that, basically, is unloading passengers from the bus system right onto North Miami Avenue. And nobody seems to be concerned enough to require it, because construction permits have been issued for the erection of this fence, to block off all public right-of-way. And up to this date, we were told that there was going to be a... that there had been a permit issued, and as far as we've researched, there has not been, to this date, one issued. We are still, now... we now have moved inside the project, within the perimeter of the property, where the sidewalks are, to safely fd 3 February 26, 1987 s7'-2%3 I It secure the rights of our members from the public access. We have a program of why it is important for officials in supervision - all right? - and management levels, and field engineers, etc., to push so hard - all right? - in regards to cutting the budget, staying within the budget - right? - and affecting the work force, the average Joe out there - all right? - who has to go to work for a living and has to pay taxes in this community, and why it's important for these supervisors to keep their wages low. They've got a 25 percent incentive as a bonus, to keep... you know, to keep the. project within budget, and any additional savings that they make. You also have a statement, an article... well, you don't have that in your package; I have an article here which at one time, before August 4th meeting, they came out in the Miami Herald by writer, Herald staff writer, Dion Thompson, that they went over to the Overtown's Advisory Board, and they made promises in regards to the Overtown Advisory Board, that the percentages were even going to be higher than what they are reflected in this Minority Participation Agreement. They reflected that there will be 25 percent Black participation, 25 percent Latin participation, and 17 percent women participation, on this particular project, in order for them to, basically, reach an agreement with the neighborhood. That agreement is not being reflected in the Minority Participation Agreement either. Those are my comments, for the moment, in regards to the allegations that we are making, Honorable Mayor and Commissioners. Mr. Dawkins: OK, thank you. Mr. Benjamin? Mr. Thomas D. Benjamin: -Good afternoon. My name is Thomas Benjamin. I reside at 18731 Northwest 23rd Court, and I have a business at 1277 Northwest 54th Street. I'm here this morning to protest the disparate and capricious treatment of the Miamarina plumbing contract. I have documentation here that I was the low bidder, and most responsive low bidder. On 9/16/86, in their bid documents, on their form and their letterhead, I bid $710,000 for the contract. The next bidder was $720,000; you had $723,000, $763,000. In the bid documents they required a letter of intent from a bonding company, to be in compliance. I have copies of the letters of intent, which, in form, the Authority, or Linbeck, says that my bonding company was not acceptable to them. The specification clearly states that a 100 percent Payment and Performance Bond - they did not specify a particular company. The same way that they specified a $5,000,000 umbrella policy for insurance, they could have done the same thing with the type of bond they want. I don't investigate bonding companies; I buy bonds. In addition to that, they also said that they reduced the amount of insurance from a $5,000,000 umbrella policy to a $2,000,000. If they gave my competitor that opportunity, why not myself? On 9/26/86, they asked for a verbal quote on a possible item that they may utilize, which is ten days after the written quote. On 10/31/86, they asked for additional quotes, verbal quotes, which had no specifications or documentation for it. Now, it's my understanding that this job was bidded under the Section 212.057, which is the taxation and financing of the Sports Authority. Also, in their doc... if that be the case, that means there are public funds involved. If that be also the case, that means that this bid is also subject to the public rule - public bid opening rule - which states that you can't alter or change the bid after the fact. My question is... Mayor Suarez: Let me ask the City Attorney that, if she can answer off the top of her head: would it be subject to the public bidding rules of the State, the bidding of subcontractors by Decoma on that site, by virtue of the involvement of public funds? Mrs. Dougherty: No. Mayor Suarez: Why not, if there are public funds being used? He's citing a section of Florida Statutes - which I'm sure you have memorized. 87-272. 87-273 -> fd 4 February 26, 1987 I IV Mr. Dawkins: The only time that public bidding requirements are required, is when the public body is actually doing the bidding. Mayor Suarez: Not when there's use of public funds, as here,... Mr. Dawkins: No. Mayor Suarez: ... for approximately 85 percent of the entire budget of the arena? Mr. Dawkins: You know,... Mrs. Dougherty: Not unless you require it in some sort of a contract. Mayor Suarez: Yeah, we should have. Mr. Dawkins: Let me say this, though. All right, I have another complaint - pardon me, Tom - from a structural company, and his complaint is: "(a) sealed sub -bids will be received by Linbeck Construction Corporation, Miami, Florida; opening of sub -bids will be private. I feel that the private bid openings is contrary to law." How can you tell me that you're shooting straight up, when you have me bid, and you go in behind closed doors, and open the bid, Lucia? Mayor Suarez: Is it a fair statement, following up on Commissioner Dawkins' question, to assume that if they refuse to do it openly, that we can almost have a presumption of bad faith? They specified that they want sealed bids, and yet they don't want to open them up in public. Mrs. Dougherty: I'm sorry, I didn't hear the first part. Mr. Dawkins: OK, a sealed... now, this is from Haddon Enterprise, Inc., who is a structural steel company, who bid on the structural steel. One of his complaints is that Linbeck said they wanted sealed sub -bids, and they would receive them, OK? But then he said opening of sub -bids would be private. How can you ask me to submit a - in good faith - to submit a bid, sealed, and then tell me you're going behind the doors and open it? Mrs. Dougherty: Mr. Commissioner, there was an Authority member represented at all of the openings of the bids. Mr. Dawkins: All right, you draft in for me, please, legislation to ensure that in any other bid, anybody bidding on with the City of Miami that... well, how can we get people in there? That's what I need to know. Because this... I mean, this gentleman says this; I've got another statement here from another person that says that they've been done unfairly. Go ahead, Tom. Min. Dougherty: We required it in the contract. Mr. Dawkins: We required it?That it be an open bid? Mrs. Dougherty: No, that the... Mr. Dawkins: Be a sealed bid? Mrs. Dougherty: In the future, we can require it in the contract. Mr. Dawkins: OK, OK, thank you. Mr. Thomas Benjamin: Well, then, my question still is, then, since it's not under the public bid opening - in the contract here, between Miami Sports and Exhibition Authority and Linbeck Construction, it states here, in section 8.1, page 815: "Florida and local laws prevail. This agreement shall be governed by the laws of the State of Florida," which means you cannot alter thl .., .� +' —2 7 Z td 5 February 26, 1987 87-2741 5� TP . bid after they are open. Linbeck stated emphatically, I was low bidder, on the 16th. Sixty, 90 days later, somehow or another, I've been disqualified for various reasons. I have documentation here that I complied with their bid documents, and I was... Mayor Suarez: Let me say... Mr. Thomas Benjamin: ... ten thousand dollars low. Mayor Suarez: Let me say one thing. Even if it were not illegal, I think it is a presumption of bad faith on their part, to have changed, verbally, the sealed bids, and I'm going to act accordingly, for myself, and I believe it may be the consensus of this Commission. But go ahead. Mr. Thomas Benjamin: But Mr. Mayor, in addition to that... Mayor Suarez: Even if it's... well, when it says it's subject to the laws of the State of Florida - all of our contracts are subject to the laws of the State of Florida, but as applied to the particular circumstances of this matter; so, it may not be that... the City Attorney tells us... Mrs. Dougherty: Mr. Mayor, you should know that we are investigating all of these allegations at this present time. Mayor Suarez: OK. Go ahead. Mr. Thomas Benjamin: I take issue with "allegations" - I'm speaking fact. What has transpired here has been capricious and disparate. Now, the intent of the Commission, whether it's implied by the letter or not, we've been had. On one side we've got the Latins being hung, on this side we've got the Blacks. Who are we reserving the middle for, another minority? What I'm saying is, I seek justice here; I seek relief. I have been had. I am the low bidder. Linbeck has stated that. (APPLAUSE) Mayor Suarez: Thank you for your presentation. Mr. Dawkins: Mr. Mayor, I'd like to suggest that we have the Law Department and our representative to the Sports Authority investigate all these allegations, along with some I will be presenting, and that Linbeck be made aware of these allegations. And if it's the Commission's will, that Linbeck report back here on the 31st of March, or April the 9th, whichever this Commission seers fit, to answer these allegations. I'm going to add another one before I close it, and that is: I have two paychecks here, from Linbeck, and I don't know what the Craft Code 150 is, but whatever the Craft Code 150 is, we have where one guy worked 35 hours, and he received $355 for 35 hours. Well, with a little, simple arithmetic, that's $10 an hour. I have another one here, Craft Code 150, the gentleman worked five hours, and he received 430. With a little simple arithmetic, five times six is 30. Now, I can't understand how Linbeck got two crafts which is - whatever 150 is, I don't care if it's picking up paper... Mayor Suarez: Is it the same code? You said the same code? Mr. Dawkins: Sure, um-hmm, same code! See - 150, 35 hours, $355; 150, five hours, $30. And I'd like... so these are the things... Mayor Suarez: Let's introduce those into the record, and that they do reflect the same exact Craft Code under both paychecks - pay stubs. Mr. Dawkins: And I would like to move that we ask the Manager and everybody, to investigate this, and have Linbeck back here, and understand... I want everybody to understand, we've got no quarrels at all with the people trying to get the franchise forS7—= ;. 8 ! "sltr ! as fd 6 February 26, 1987 30> 7 the basketball team. We're going to see that this stadium is built, even if Linbeck walks off it, I can get enough craft union men, and non -crafts, to go in and finish it. We don't have no problem with completing it. We've got enough crafts in the City of Miami to complete an arena - we don't have to go out of the City of Miami. (APPLAUSE) Mayor Suarez: Please. Mr. Dawkins: So, we don't have any problems with completing the stadium and have it ready, if the N.B.A. so desires of awarding us a franchise. We'll be ready. But I think that these are some things that I'm concerned about, and I'm really concerned, in fact, this whole Commission is concerned, is that if we don't get a handle on outside laborers taking the money out of the City of Miami, when we move into Park West/Overtown, local laborers are not going to be able to work,... Mayor Suarez: That's right. Mr. Dawkins: ... because we have not set up any guidelines to ensure that individuals who bid will get the job. Now, we had one lady who came in and bid on structural steel, and we asked questions, and the White guy answered them. She was Black and she was supposed to be the minority person. And finally we asked one question, he said, "Well, I have to ask my partner," and we said "Well, why not ask your partner - she's sitting here?" She don't know no more about structural steel that we do; but because we have not legislated legislation to ensure that Miller Dawkins, coming in as an electrician, cannot come in with an electrical contractor, and be the token, and they get away with the money. So, these are the things that I'm concerned about, and at the next meeting, on... which date do we want a hearing? Mayor Suarez: You said the 31st, March 31st, right? Mr. Dawkins: Thirty-first OK, J.L.? Mr. Plummer: Well, I think we've also got a discussion on the 13th, don't we, about the Sports Authority membership in general? Mr. Dawkins: So, why, not do it on the 13th? Mr. Plummer: Well, if they can have it ready by then. Mr. Dawkins: OK, OK, well... Mr. Plummer: At least we can have an update. Mayor Suarez: Can the City make a report back to us by the 13th? Will you be ready? I hope so, because we... the Commission's been getting a heck of a lot of evidence, and it should have made it a lot easier, and they should be able to respond to it. Mr. Dawkins: OK, so moved. Mayor Suarez: So moved. And seconded? Mr. Plummer: Yeah. Mayor Suarez: Any discussion? Call the roll. 87. = 8 7-=3 : fd 7 February 26, 1987 s-P -s The following motion was introduced by Commissioner Dawkins, who moved its adoption: MOTION NO. 87-213 A MOTION DIRECTING THE ADMINISTRATION TO INVESTIGATE ALLEGED DISCRIMINATION PRACTICES BY THE LINBECK COMPANY DURING CONSTRUCTION OF THE MIAMI ARENA SITE; FURTHER DIRECTING THE LAW DEPARTMENT AND THE CITY MANAGER TO MEET WITH REPRESENTATIVES OF THE LINBECK COMPANY TO MAKE THEM AWARE OF THESE ALLEGATIONS AND TO REQUEST THAT THEY (LINBECK) APPEAR BEFORE THE CITY COMMISSION IN ORDER TO RESPOND TO SAID ALLEGATIONS; FINALLY REQUESTING THE CITY MANAGER TO HAVE A REPORT READY ON THIS ISSUE FOR THE CITY COMMISSION AT THE MEETING PRESENTLY SCHEDULED FOR MARCH 13TH. 'Upon being seconded by Commissioner Plummer, the motion was passed and adopted by the following vote - AYES: Commissioner Miller J. Dawkins Vice -Mayor J. L. Plummer, Jr. Mayor Xavier L. Suarez NOES: None. ABSENT: Commissioner Joe Carollo Commissioner Rosario Kennedy Mayor Suarez: Would you include the transcript, too, Madame City Clerk, in the documents. Counselor? Mr. Dawkins: And you guys get together with the Manager, and find out how they want to include you in, and get your data. Go ahead, counselor. Mr. Joseph Kaplan: Yes, very quickly; I'm not going to "gild the lily" in respect to the arguments already made, but let me just say... my name is Joseph Kaplan. I represent the Miami Building & Construction Trades Council. We are completely in accord with the position of the Carpenters' Union, and Tommy Benjamin, the _ contractor who bid on the plumbing work. We believe that there• is clear discrimination against the Black contractor on one hand, and local employees and Hispanic employees on the other hand. In addition, we are totally opposed to the fact that there is no prevailing wage determination made on this job. This City must, in the future, address the question of returning to the issue of a prevailing wage concept on your jobs. The wage disparity paid is absurd. Also,* for the edification of the record, may I suggest that the documents described as the Miamarina contract, between the Authority and Decoma, specifically describes, on page eight and nine, that there's got to be a system for bidding, which is described as both "fair" and "to the lowest bidder." I make reference to paragraphs (a) and (f) on pages A-8 and A-9. The bidding procedure must be both... Mayor Suarez: Those two standards could be enough, as criteria, to determine that what was done in your case was not proper. Mr. Kaplan: Clearly, clearly. And we concur, and we would like... Mayor Suarers Because it's got to be fair, and to the lowest bidder;... Mr. Kaplans And to the lowest bidder. Mayor Suarez: ... and you were the lowest bidder, and it's not clear that it was fair, how you, all of a sudden, were not the 8%'=2 lowest bidder after the verbal changes. fd 8 February 26, 1987 Mr. Kaplan: Thank you. Mayor Suarez: Thank you, counselor. (APPLAUSE) Quick one? Mr. James Hayden Johnson, Jr.: I'll do this real quick. My names is James Hayden Johnson, Jr. I live at 3025 Blaine Street, In Coconut Grove. My office is at 3244 West Trade, in the Grove. I am a steel erector, and represent a couple of other steel erection companies. In the... what was brought up before, Linbeck... this is something, which I think everybody has a letter, and I've given one to Mr. Dawkins and around, and I'll talk to you, because you've covered it all. The one thing is that Linbeck did send me back a letter, and also Helena, which is the steel erector, is owned as a solely -owned subsidiary of Linbeck, which is complete. So, I'll just stop with that and won't go into it, except for one item, and this is to do with... Mayor Suarez: They did admit that themselves, in correspondence, that it was a solely -owned subsidiary? Mr. Johnson: Um... Mr. Dawkins: No, I gave it here. Mayor Suarez: I know Commissioner Dawkins... Mr. Johnson (OFF MIKE): Yeah, he has a letter that I got back from them. Mayor Suarez: OK, very good. Mr. Johnson: The only other thing is, like, I'm union and.I didn't realize that all of this was happening, but in some of the articles, they were talking about union people - Helena is also union. So, it's not really the fact that this is union/nonunion, because... Mayor Suarez: Right. Mr. Johnson: ... their own, solely -owned subsidiary, Helena, is an Internationa... belongs to International. Mayor Suarez: Let me just hold you on that. Mr. City Manager, for Overtown/Park West, on future projects, at the very least can we have clarified, I think, that it's the consensus of this Commission that a contractor cannot award a bid to a solely -owned subsidiary, unless he has followed open bidding processes of the City, and make sure we build that into any future awards of contracts? Mr. Johnson: We had to supply them our license - like, I have a General Contractor's license, plus our licenses for the City, to be able to do, and I'm sure, and I've checked, and Helena and these people do not have the licenses required, and at bid time you had to have these licenses. And at bid time, if you were using a minority as part of your participation, which I would have subbed some work to some locally, you had to have that in there, which do not exist. And the thing is, when you have union versus nonunion - I could be anything that I wanted to be; my main reason for being union is because of the benefit packages, which I had brought up a long time ago when the Bayside project came up. If they're paying $6 and $10 an hour, and there's no benefit package, our hospitals are going to be overburdened. Just the ironwork alone is going to be over 30,000 man-hours of labor. In Jackson Memorial Hospital, if these people, which they will bring at least 60 percent of their labor in town, from out of town, and right now the way that the ironworkers' new contract is, they could conceivably bring in all of their people from out of town. If this condition happens, and they're paying a certain wage, our hospitals are going to be burdened with all of this, and then it's like who's going to cover it, except for the local fd 9 February 26, 1987 '1 1 people, whose companies have health and welfare programs? And this is, if nothing else, this is an important part. Thank you. Mayor Suarez: Thank you, Mr. Johnson. Mr. John Lindstrom: Mr. Mayor, Mr. Commissioners,... Mayor Suarez: Quick one. Mr. Lindstrom: John Lindstrom, with the... business manager for the Plumbers' Local. I would ask the Commissioners to go one step further, seeing that Tommy Benjamin was done wrong on the job, that we hold up Falcon's work on the job until we can have some kind of investigation. In construction, once you get on a job site and you start working, it's awful hard to get somebody off the job. Falcon has not been on the job, has not performed any work, and I would ask the Commissioners to hold up that work until two weeks, when you meet again, and you can have an investigation. Mayor Suarez: Thank you for your statement. (6-SECOND SILENCE) I guess no one picked up on your suggestion. Mr. Dawkins: Yeah, but see, all right, I can't be hypocritical. I just said that I am not going to stop this arena from being built. So, now, if I say for two weeks we stop the plumbing,... Mayor Suarez: Sure. Mr. Dawkins: ... and the guy tells me he can't complete... Mr. Plummer: Mr. Blaisdell. Mr. Dawkins: ... the arena, then I... I mean... Mr. Plummer: Mr. Blaisdell, if we were to do what has been recommended, would it do serious harm? Mr. John Blaisdell: Yes, sir. Mr. Plummer: Thank you. Mayor Suarez: One other question. There was a suggestion just made (INAUDIBLE COMMENT OFF MIKE) - wait, wait, John - that in midstream it's almost impossible to change a subcontractor. Suppose this Commission were to find that bad faith was... that they approached this in bad faith, the subcontracting of his particular one, and maybe some others: couldn't we force them to change subcontractors in midstream? I know that it would be some disruption, and all that. Mr. Blaisdell: Legal counsel -has advised that if, as a result of the investigation, we do determine that there was any fraudulent activity, that we can then... we have certain remedies. Mr. Plummer: Well,... Mayor Suarez: You might find us more creative than you're used to seeing in... Mr. Lindstrom: OK, but in deference to Mr. Blaisdell, there has been no plumbing done on job, and it's not in a stage where any plumbing needs to be done. Mayor Suarez: Well, so much the better, then; it's easier, then. Mr. Dawkins: Oh well, that's... Mayor Suarez: So much the better, then. Mr. Lindstrom: I mean, but he..-. 8� S7—i fd 10 February 26, 1987 S2 �t� Mr. Plummer: Well, but wait a minute, wait a minute,.. Mr. Lindstrom: But he said it's going to hold the job up, and it will not hold the job up, and I think some of the people in the industry... Mayor Suarez: Well, but we're... see, we're reaching a conclusion on one side of the argument. We're pretty sure where we're headed, but we need to hear from Linbeck. Mr. Plummer: Mr. Blaisdell. Mr. Blaisdell: Yes, sir. Mr. Plummer: The Mayor keeps asking what can "we," referring to the Commission. Do we, the Commission, have any power, or are we at the mercy, as we Lave been, of the Sports Authority? Mr. Blaisdell: In connection with the Minority Participation Agreement, enforcement of rights, you are a party to the agreement, so your rights and remedies are exclusive in that agreement. You can enter into arbitration If you feel that there were bad faith exercised... Mr. Plummer: We, the Commission? Mr. Blaisdell: You, the City of Miami, right. That's correct. Mr. Plummer: OK. Mr. Blaisdell: Or the Authority, or jointly, or collectively. Mr. Plummer: All right. Mr. Blaisdell: Any one party can do it. Mayor Suarez: OK. Mr. Dawkins: OK, well, if we enter into arbitration, and it's found that, "Let them work," and find that they were wrong, can Mr. Benjamin sue for damages? Mr. Blaisdell: I don't know what Mr. Benjamin's rights or reliefs may be. I can tell you that the Minority Participation Agreement indicates that in the event that an arbitrator rules in our favor, that there... I think... believe for the first 30 days there is a penalty of $500, and for every day after 30 days there's a penalty of about $1,000 per day. Mayor Suarez: So we're going to make it painful, if we reach that conclusion. Mr. Blaisdell: Exactly. And those payments cannot be... Mr. Dawkins: And so they can stay on the job and work; they just have to pay Mr. Benjamin $1,000 a day until they complete the job. Mr. Blaisdell: No, the payment... Mr. Dawkins: Until they complete the job. Mr. Blaisdell: Commissioner, the payments are to us, to the party initiating the action. If the City initiated... Mr. Dawkins: I have no problem with voting that we give it to Mr. Benjamin,. because he's the one that's been wronged, and not the City of Miami - I don't have a problem with that. 87—--;l 87-27o Mr. Blaisdell: That's your prerogative to do that, sir. Mr. Dawkins: That's right, OK, no problem. Id 11 February 26, 1987 Mayor Suarez: OK, thank you, John. Item twenty... Mr. Johnsons Can I just make one other statement? Before this all started, the Mayor did write a letter, trying to keep Linbeck properly conducting the bids, because the article which... Mayor Suarez: Unfortunately, we sent it the day before they opened the... Mr. Johnson: Right. We sent them... right. Mayor Suarez: So, you alerted me almost at the right moment, and then Commissioner Dawkins began all of this investigation, and now we have some pretty good, hard facts to go on. At the time, It was just the allegation that they were not going to do it properly. But you're right, we did warn them with that letter. 8 7-272 8 7-2744 fd 12 February 26, 1987.5� „ w 7-A. NAME MILLER DAWKINS AS CHAIRMAN OF THE AD HOC MINORITY ADVISORY COMMITTEE FOR MIAMI ARENA. 7-B. NO SPORTS ARENA CONTRACTS ARE TO BE SIGNED UNLESS THE DEVELOPERS MEETING THE MINORITY HIRING GOALS SET BY CITY. ----------------------------------------------------------------------------- - Mr. Dawkins: Mr. Mayor. Mayor Suarez: Yes, Commissioner. Mr. Dawkins: Mr. Mayor, I've got two emergency items here I'd like to bring up. Mayor Suarez: Please. Mr. Dawkins: I think that this Commission must be made aware of the failure of Linbeck Company to carry out the intent of this Commission. Mayor Suarez: On the Sports Arena? Mr. Dawkins: Yes, on the Sports Arena. The intent of this Commission was that local people in this community would gather money from working on this project, OK? Last week, I asked for a tally of what was happening, and, Mr. Manager, through you to Mr. Blaisdell, as of last week you had no signed minority contracts, and no idea of what you were going to do. Now, all week, the administration worked with Linbeck. What do you have this morning... no, first I'd like to know, what's the total cost of this project? Mr. John Blaisdell: The total construction cost is estimated to be $33,435,000. Mr. Dawkins: All right. So now, so 17 percent of 33 is what - like $4,000,000? Mr. Blaisdell: It's approximately $5,600,000. Mr. Dawkins: OK, $5,000,000. OK. How many... how much work are you proposing to award to women this morning? Mr. Blaisdell: But can I make a statement? Mr. Dawkins: Yes, go right ahead, Mr. Blaisdell. Mr. Blaisdell: Under the $33,000,000, that includes... Mr. Dawkins: A hundred and thirty-three million? Mr. Blaisdell: No, out of the $33,000,000, total cost - that includes contingency fee and a lot of things that a subcontractor or supplier cannot participate in. Mr. Dawkins: OK, wait a minute. Wait, now. If the subcontractor cannot compete in it, that means it goes to the majority. See, I'm not going to get... see, that's why I want this Commission to understand what's happening here, see. You can't take out damn near all the choice projects, and then tell _ me, "Now, you take what's left, and I'm going to give you your 17 percent of that." The intent of this Commission - and if I'm in error, one of the Commissioners will correct me - was that 17 percent of the total contract would go to women, 17 percent of.13 — 3 2'72 the total construction contract would go to Blacks, and 17 percent of the total contract would go to Blacks and Latins - I 87- OQr: fd 1 January 22, 1987 t. i 10 mean Cubans. So, now, don't tell me... I mean, don't tell me now that you took the elevator, because Blacks can't do it and no Cuban's got an elevator company, ,and gave it to the Whites, so now that brings it down to $30,000,000; and we took the elevator shafts because we've got no Blacks or Cubans or ladies who've got the elevator shafts, so we take that out, and that brings it down to 20; and we finally get down to $13 , 000, 000, and now "you are entitled to 17 percent of that" - no, that wasn't our intent, OK? And I want to make sure, and I'm doing this here because I don't want this to happen in Overtown/Park West. So, now, how much... so, you have sat down, you and everyone, and you've come up with a figure. How much is in the stages of being negotiated to the ladies now, as of today? Mr. Blaisdell: For the ladies... for females? Mr. Dawkins: Yes. I guess they... Mr. Blaisdell: Two million, seven hundred and eighty-four thousand dollars. Two million, seven eight -four, six hundred. Mr. Dawkins: Two million. About half of what they're entitled to, right? Mr. Blaisdell: Under the... Mr. Dawkins: Of five million... Mr. Blaisdell: Yes, sir, under the circumstances you just described, that would be correct. Mr. Dawkins: All right, so that... but at least th3y've got two million, all right. Now, what do the Hispanics have? Mr. Blaisdell: I'm sorry, I was incorrect. It's $2,042,000; I was reading the wrong line. Mr. Dawkins: All right. What do the Hispanics have? Mr. Blaisdell: Two million, five-c-five, six fifty-two. Mr. Dawkins: Out of five million. OK, what do the Blacks have? Mr. Blaisdell: One million, two-o-four, two eighteen. Mr. Dawkins: Out of five million. OK. Now, I'll let you make a statement, of any kind, if you've got anything to say. Mr. Plummer: Well, let me ask a question. Mr. Dawkins: Go right ahead, J.L. Mr. Plummer: Any one of the three categories - were there more bidders than what you are awarding? Let's use the women; I think that's the aspect where it's been the most problem. Did you have more women minority bidders, that were not winners - acceptable ones? Mr. Blaisdell: Let me just give you an overview of the quick bid process. Six hundred and seventy-five total subcontractors and suppliers were identified. Out of those, 276 were minorities. Out of those minorities, 27 bid; that's aggregate Latin - I'm sorry, Hispanic - female, and Blacks. Out of the 27, you had 18 Black submissions, 5 Hispanic submissions, and 6 female submissions. Mr. Plummer: OK, the question I'm asking... Mr. Blaisdell: I'm sorry, Commissioner. w/ Mr. Plummer: The question that I'm asking: did all six of the women bid on the same project? fd 2 January 22, 1987 f Mr. Blaisdell: Not on the same discipline of work, no; not on the same scope of work, no. Mr. Plummer: All right. Were there any of the women minority who did not receive an award? Mr. Blaisdell: Yes. Mr. Plummer: How many out of the six? Mr. Blaisdell: I believe that there's only been two awarded, so, by attrition, it would be four. Mr. Plummer: So, in other words, those four will not receive anything? Mr. Blaisdell: At this point in time, Commissioner, that's correct. Mr. Plummer: All right. Did they bid against each other? Mr. Blaisdell: I'm not quite sure I know the answer to that question, whether... I don't think so; I think they were all in different disciplines. I don't think you had a female -owned company in one scope of work. Mr. Plummer: All right. I guess, really, what Commissioner Dawkins is saying - I'm trying to understand - there is the goals that have been set, of 17, 17, and 17. What are you talking about, as to the total scope of construction, not contingencies, not anything like that, that no one will actually bid on - contingency, nobody bids on, of course - so, what are you down to, as to actual construction cost? Mr. Blaisdell: To the best of our ability, we've been able to Identify approximately $16,380,000. Mr. Plummer: All right, so half of that, roughly, is eight. Mr. Blaisdell: That's correct. Mr. Plummer: OR. Mr. Blaisdell: Fifty-one percent of that is $8,353,000. Mr. Plummer: OR, so call it, for round figures, eight, all right? And you're telling us this morning that out of the total of bids ready to be awarded, that you have five...? Mr. Blaisdell: Five million, seven fifty-two, seven forty. Mr. Plummer: All right. Now, is there other bids yet to be awarded? Mr. Blaisdell: Yes, sir. Mr. Plummer: OR. Mr. Blaisdell: Out of that $16,000,000... Mr. Plummer: Whoa, whoa, whoa, whoa, now, don't get ahead of me. Of the $5,000,000 that is going to be awarded to minorities, how much is yet to be awarded, that is not being addressed, in what the bids have been calculated, tallied, and are ready for award? Mr. Blaisdell: The numbers that I have just represented to the Commission indicate the tally to date. There are currently approximately $3.7 million of work, scope of work, that is out for bid, which has not been awarded per se. It has not returned back to the contractor and to the Authority for evaluation. fd 3 January 22, 1987 Mr. Plummer: Is that all that is left? Mr. Blaisdell: In the... in the... yes, that's correct, that's all that's left. Mr. Plummer: In other words, that's yet to be awarded? Mr. Blaisdell: That, plus there is some non-food service, furnitures, fixtures, and equipment... Mr. Plummer: Well, that's not the construction. I think he's speaking to the construction at this time. Mr. Blaisdell: Construction, there's 3.7, $3.7 million. Mr. Plummer: OK, then it has to be indicated that 100 percent of that is not going to go minorities, under the normal circumstances. So, the question, then, remains, as he is figuring and I'm figuring, there's not going to be met the goal of $8,000,000. Mr. Blaisdell: Potentially, that's correct. Mr. Plummer: And what is being done to address that goal? Mr. Blaisdell: Let me give you... Mayor Suarez: As you answer that, would you tell us if our committee, that we set up, has met yet - the Minority Participation Committee, because I have a suggestion to make, that we incorporate into that committee, to give a little teeth to it, one of the Commissioners, and see if Commissioner Dawkins would be willing to serve on it. That's the only way that... Mrs. Kennedy: Let me just state, for the record - John, let me ask you: do you know how many contracts have been awarded to women since this ordinance? Mr. Dawkins: None. Mrs. Kennedy: One percent. Mr. Plummer: Two, he says. Mrs. Kennedy: No, total. Mr. Plummer: Two contracts. Mrs. Kennedy: Total, total in the City - only one percent. Now, of course, women -owned companies are going to be smaller= of course, women -owned companies are going to have less experience; but these are things that should be taken into consideration. And, Mr. Manager, you promised me and you promised this Commission, that you would go out into the community and talk to these groups of women. Now, what have you done about that? Mr. Dawkins: Let me give you something else, Commissioner Kennedy, to put with that. And if I'm in error, Mr. Blaisdell will correct me. The two contracts signed with ladies - women - are not signed as ladies. They are Black. A Black Jamaican - now, how she got to be Black... if you went to Jamaica and called her Black, she'd have a hemorrhage. OK? And the other one is a Black female. And they're not in as ladies, see? They're in as Blacks. Mr. Plummer: Well, but wait a minute, now. In all fairness, if you have 680-some potential bidders,... Mr. Dawkins: Om-hmm. Mr. Plummer: ... and you put out the RFP's, and, still.using the 827 —2 women as the example, you only had six women companies to bid - John, ... fd 4 January 22, 1987 �r V. Mr. Blaisdell: Yes, air. Mr. Plummer: ... of the six women bidders, how much money did they actually bid on? Mr. Dawkins: And in what disciplines? Mr. Plummer: What was the scope of the potential that they... Mr. Dawkins: And in what disciplines, J.L.? What disciplines did they... what trades? Mr. Plummer: OK,... Mr. Blaisdell: OK, let me identify... Mr. Plummer: In other words, were they, in effect, going after $4,000,000 worth of contracts, $1,000,000 worth of contracts - what was... if every one of those women were successful, how much would they have received in work? Mr. Blaisdell: Can I modify your request a little bit, because of the lack of information? The three women that are under consideration for award, which is: Falcon Chemical for the plumbing, represents approximately $700,000; the second woman - she's a White female - the second consideration for a female award is to Pompano Masonry,... Mr. Dawkins: Pompano? Mr. Blaisdell: ... which is a White female -owned... Mr. Dawkins: Pompano? Mr. Blaisdell: That's correct, that's... Mr. Dawkins: Nothing in Miami - Pompano? Mr. Blaisdell: No, that's... the name of the firm is Pompano Masonry. Mr. Dawkins: OK. Mr. Blaisdell: OK? They're out of Broward. And that represents approximately $1,100,000. The third company which potentially bid was a precast erection firm, that the bid was approximately $375,000. The other three firms... (ASIDE) I'm not quite sure; which... do you remember what they are? But those are the three that are under consideration right now. Two have actually be" recommended for award, and letter of intent have been prepared and mailed to the firms. That represents approximately almost a _ million... million two... million nine, almost $2,000,000. Mr. Dawkins: What contracts have been signed... I mean, contracts have been signed with what companies as of now? Mr. Blaisdell: Usually, subcontracts take anywhere from zero to 120 days for execution. Mr. Dawkins: No, no, no. Give me the names of the companies that subcontracts have already been signed with on this job. Mr. Blaisdell: There are two contracts. who's done foundation excavation work,... Mr. Dawkins: Um-hmm. One is with Bob Young, Mr. Blaisdell: ... and the second one is with Jaffer, who does drainage wells on the site. Sr1...9-01r Mr. fd i Dawkins: Who? t37-Z7 5 January 22, 1987� .. Q. Mr. Blaisdell: Jaffer - J-a-f-f-e-r, Mr. Dawkins: Is there a Xavier, Inc., working on this job? Mr. Blaisdell: Yes, sir. Mr. Dawkins: Is the contract signed with them? Mr. Blaisdell: Not to my knowledge, sir, no. Mr. Dawkins: Well, how are they working on the job, then? Mr. Blaisdell: They have a letter of intent, which is not unusual in the magnitude of this job. Mr. Dawkins: Is Helena working on this job? Mr. Blaisdell: Yes, sir. Mr. Dawkins: Gentlemen, now... Madame City Attorney, do not miss this, because I want to see how... what this is. It says, and I'm reading from Dun & Bradstreet, it says: "Linbeck Construction Company, subsidiary of Linbeck Corporation, Houston, Texas. Related companies: the following are also wholly owned by the parent company," which is Linbeck. Number one is P & L Equipment Companies, wholly owned by Linbeck; Irving Construction, totally owned by Linbeck; Helena, Inc., totally owned by Linbeck; Lucia, Inc., totally owned by Linbeck, and Xavier, owned .by Linbeck. Now, City Attorney, how can they bid on contracts with themselves, and award themselves the contract? Explain that to me, Madame City Attorney. (APPLAUSE) Mrs. Dougherty: There's nothing illegal about it. Mr. Dawkins: Nothing illegal about it. But it's damn immoral, huh? OK, you see, this is how we... Mr. Plummer: Well, wait, wait a minute, wait a minute. Madame City Attorney, I'm assuming you're familiar with the ordinance for that, I'm sure. But they also signed an agreement with this City. Now, maybe there's nothing illegal, but is there a compliance with the contract, excluding the ordinance? Mrs. Dougherty: You're talking about the Minority Participation portion of the contract. Mr. Plummer: The contract that Linbeck signed with this City, in reference to compliance, in the Minority section. That was in their contract, separate from... Mrs. Dougherty: That's correct. Mr. Plummer: ... the ordinance. Now, yes, it might not be illegal, as to, maybe, filing criminal charges, but does their contract with the City become possibly breached - I'm sorry, with the Sports Authority? Mrs. Dougherty: There's no breach of... Mr. Plummer: Is there a potential breach? Mrs. Dougherty: There's no potential breach of contract. The way that our contract is structured is that if they do not have a good faith effort to comply with the contract, that is 17, 17, and 17, and we determine that there has been no good faith effort to reach that goal, then the remedy for us is in arbitration, under the contract. Mr. Plummer: But here again, now, Commissioner Dawkins is... Al�Iiill�r:; fd 6 January 22, 1987 iq ` Mrs. Dougherty: Therefore, there's no real breach of contract by reason of this. It may be an indication of bad faith, is what I'm saying. There's no breach of contract, per se. Mr. Dawkins: Well, wouldn't it be fraud if I were to put out a contract that leads you to believe that you're t:idding on a job that I know you're not going to get, because I've got it myself? Would that be fraud? Mrs. Dougherty: Well, I assume that if other bidders were the lowest qualified bidder, they would have been awarded the contract, as opposed to Helena or Lucia Construction. Mr. Dawkins: Well, I think your assumptions are incorrect. Mr. Plummer: Well, let me... Mr. Dawkins: OK, wait a minute, no, wait, J.L. Mr. Plummer% Go ahead. Mr. Dawkins: What was the. lowest bid on the work given to Helena? Mr. Blaisdell: Helena? Under the structural steel and deck erection, Helena was the low qualified bidder. Mr. Dawkins: OK, now I have a bid... qualified - OK, now, who determined who was qualified? Mr. Blaisdell: Through a recommendation by the contractor, and approval... Mr. Dawkins: OK, and who was the contractor? Mr. Blaisdell: Linbeck Construction Corporation. Mr. Dawkins: So, how in the hell are they going... I mean, so, you're in a bagt (LAUGHTER) Mr. Blaisdell: Commissioner, we reviewed... Mr. Dawkins: You're in a bag! See, you're boxed in. And the lowest contractor who you say... no, I'm sorry, who Linbeck said is unqualified, was $65,000 under them. So, now, they're charging us $65,000, the Sports Authority, in order to say that these people are not qualified, or not whatever, and they're going to do the job for $65,000 more. Mr. Plummer% Well, was that particular line of work put out to bid? Mr. Blaisdell: Yes, sir. Mr. Plummer: And how many bids were there? Mr. Blaisdell: Commissioner, the $65,000... Commissioner Dawkins, the $65,000 difference in bid price which you are referencing is the precast erection, where Helena and another company, Jimrock, submitted a bid, and they currently have been issued a letter of intent, indicating to them that if they can bond and insure, pursuant to the contract documents, which, for purposes of precast erection, is critical... Mr. Dawkins: It's 12:00 o.'clock - let me see if I can bring this to closure. Mr. Plummer: Well, wait a minute, I haven't got an answer to my question. fd 7 January 22, 1987 r -"'•R Mr. Dawkins: Go ahead, J.L. Mr. Plummer: On that particular phase, how many people bid on that portion of the contract? Mr. Blaisdell: Two. Mr. Plummer: Two? Helena and another company? Mr. Blaisdell: To the... I think... to the best of our ability to tell you right now, we could come back to you with more specific information, but I think it's to Helena and... (PAUSE) Four. Mr. Plummer: Four bid on it? Mr. Blaisdell: I... hold on, let me get... (GOES OFF MIKE) Mr. Plummer: Well, let me tell you what I think is the bottom line. Is there anyone here from Linbeck? Mr. Paul Sipes (OFF MIKE): Yes, I'm --------- Mr. Plummer: Is the company's name Linebeck? Mayor Suarez: Linbeck, Linbeck. Mrs. Kennedy: Linbeck. Mr. Plummer: Linbeck. And who is that representative? NONE Mr. Sipes: It's Mr. Paul Sipes, Vice President. Mr. Plummer: Mr. Sipes, are you present? - would you come to the microphone for a minute, sir? For the record, we have to get your name and mailing address, sir. Mr. Sipes: Paul Sipes, with Linbeck Construction, P.O. Box 22500, Houston, Texas. Mr. Plummer: All right, sir. For the record, your company signed a contract with the City of... excuse me, with the Sports Authority, understanding the goals to be reached in minority participation, sir. It has been, this morning, determined - we could be corrected in rounding off the numbers - that those goals would be representing approximately $8,000,000 in minority involvement. We are told by our in-house expert that you have reached somewhere in the neighborhood of $5,000,000. What is the intent of your company to fulfill your obligations to the minority contract, sir? How do you plan on meeting those goals? Mr. Sipes: The ordinance, sir, is a good faith effort to achieve the goals, and we think we have exerted good faith effort to achieve the goals, with the $5,000,000 participation. Mr. Plummer: Of the other four companies, or two, or whatever, since nobody has a direct answer, were there minorities in that one work with the Helena organization - were there any companies who bid that work that were minorities? Mr. Sipes: In the precast erection, which, I think, is the discussion,... Mr. Plummers If that's... I don't know what it was for. Mr. Sipes: There were four bidders, and one of them is a minority -owned firm. Mr. Plummer: Of the bids that were received, how much difference was there between the low bid and the minority firm? 87—M..._ 517—Z73 fd 8 January 22, 1987 �' 41 Mr. Sipes: The minority firm has the low bid amount. They cannot provide adequate insurance or bonding, and therefore we ruled them not the low qualified bidder. Mr. Plummer: Does part of your contract with the Sports Authority mandate that they must be able to provide that? Mr. Odio: I think we need to clarify that it is not with the Sports Authority. Linbeck's contract is with Decoma, not with... the contract is with Decoma. Mr. Plummer: All right, then, OK. Mr. Sipes: Commissioner, the... there's... Mr. Plummer: What is our contract? The Sports Authority's contract with Decoma - what does it call for? Mr. Blaisdell: The Minority Participation Agreement is a triparty agreement, between the Authority, Decoma, and the City, OK? That details the minority participation requirements in the arena project. The construction contract, which is the standard operating guidelines for construction of the arena, which does not detail any, issues in connection with minority participation - OK? - is between Decoma and Linbeck... Mr. Plummer: All right. Well, then... Mr. Blaisdell: ... and as to certain provisions, the Authority has approval. Mr. Plummer: John, I understand what you're saying. So, than, what we need is a representative here of Decoma. E Mr. Blaisdell: I think Mr. McCrary is here representing Decoma. _ Mr. Plummer: Mr. McCrary. As you know the rules, your name and mailing address for the record, air, and how, in what capacity, you represent Decoma. Mr. Jesse J. McCrary, Jr.: My name is Jesse McCrary, 3050 Biscayne Boulevard, Miami, Florida. Commissioner, I represent... I am general counsel to Decoma. Mr. Plummer: All right, sir. Now, you have heard the question I asked, erroneously, of Linbeck, because they have a contract with your company. How do you intend to achieve the goals in the remaining monies that are left? What is your company going to propose to do? Mr. McCrary: Commissioner, on yesterday, we met for approximately nine hours with the Sports Authority and with Linbeck. Out of the... Mr. Plummer: "We," Decoma? Mr. McCrary: You, sir. Mr. Plummer: OK. Mr. McCrary: In an attempt to rectify what Commissioner Dawkins has raised as a very serious problem, and obviously it is a serious one. Out of the approximately, I suppose it's $3.7 million left to be bid, we're trying to devise some way to ensure that minorities get their fair share of that. It has been suggested that possibly some of this work could be single - sourced, in terms of minorities who could apply. It's also been suggested that they be rabid. It's also been suggested, as a third alternative, that the Sports Authority add an addendum to the Minority Participation Agreement, and indicate some of it as a set -aside, in order to fulfill the goals. That has not been cast in concrete as yet. What we dio do yesterday, for nine fd 9 January 22, 1987 hours, was come up wit for minorities in this parties to most again, can effectively most Commission. h new money, what we called "new money," process. It was the intent of all the to figure out some way that this company those goals, as prescribed by this Mr. Plummer: Why did Decoma wait until the horse was out of the barn? What I mean is, they allowed the awarding of roughly $12,000,000 to $13,000,000 in contracts, knowing fully well that it remained only 3.7, where there was not any chance that that could be achieved. Mr. McCrary: Commissioner, I... and respectfully, I'm not trying to shift any blame; Decoma takes its lumps just as you give them. When a contract... Mr. Plummer: Well, I'm not giving them lumps, I'm asking questions at this point. I'll give them the lumps, eventually. Yes, sir, rest assured. Mr. McCrary: Yes, sir, I know you will, Commissioner. When the contract is "let," that is, it comes from Linbeck and goes to the Sports Authority; and the Sports Authority has to sign off on it as being a responsive bid or the one that they will accept, Decoma, in the process, Commissioner, is really... Decoma really is not in that process, but must take the responsibility, because of its contractual relationship with the Sports Authority. Mr. Plummer: And the City. Mr. McCrary: And the City. We would admit, Mr. Plummer, that probably we didn't watch the contracts as much as we should have. Mr. Plummer: OK, that's spilled milk. Mr. McCrary: Yes, air. Mr. Plummer: Now, the question is, you say you are going to propose these three items to.the Sports Authority, hopefully that they will accept or ratify parts or all of what your recommendations are. Mr. McCrary: Not propose. What we did yesterday was collectively discuss some alternative ways, and it was not a proposal solely by Decoma, it was a result of an all -day conference between us; I mean, some ideas came from Decoma, some came from the City Attorney's office, some came from the Sports Authority, as to how we could resolve it. Mr. Plummer: Mr. Blaisdell. You know, all of this is fine... excuse me, all of this discussion is fine, but the bottom line is, is containing within a budget. Now, I guess the neat question has to be, are you confined to the restraints of the budget, of what has been proposed and projected, and where are we along those lines? _ Mr. Blaisdell: The answer to your first question is yes, this project has a very tight budget. The answer to the second question is, we have currently, in the total tally, bottom line - when we commenced this project, the outlook was less likely to be favorable. Where we are right now is that we're pretty even on being able to complete the project, with the funds that are available. Mr. Dawkins: Mr. McCrary. Mr. McCrary: Yes, sir. Mr. Dawkins: I suggested to Linbeck, three weeks ago, that they get in touch with Mr. Dausch of Bayside, to see how we could resolve this, what we've got, OK? 117-Zr fd 10 January 22, 1987 y. y. Mr. Plummer: That's easy, if they put up a million dollars. Mr. Dawkins: Now, what you have is beautiful, OK? But every one of us sitting up here knows that any minority firm out here that gets a bid, and goes in to negotiate with them, under the present conditions, that they must provide a bond, will get nothing. OK? Very few Black or small Cuban out there that can bond a $5,000,000 job. Now, I wish you would find out from your client if your client is willing to break these contracts down into increments. If it's a $2,000,000 contract, then bond it at $200,000. When a guy completes that phase of it, give him another $200,000, and when he completes that phase of it, and he's still bonded, give him another $200,000. Now, if they are in "good faith," they will do this. But if they're still, counselor, you know, going around in "bad faith," they're going to come back here in a month and tell me, "I was going to give this to A, B, C, D and 8, but they couldn't get bonded and insurance," and I've gone through an exercise of futility. The second thing, Mr. Manager, - stay there, counselor - I'm going to say to you, through you, to Mr. Blaisdell: no more contracts should be signed until you're satisfied that these minority goals have been met. Now, I don't... I'm hoping that all of... and I want to say, see, the victim in this is Mr. Bufman, OK? He's the victim, see? Because he's trying to get a franchise, he doesn't need any adverse publicity, and yet Linbeck couldn't care less, because they're going to make their money and leave, and we've got a problem. The second thing is, counselor, will you inform your client that I have some carpenters here - stand up, you fellows from the Carpenters' Union, OK? These gentlemen have been pushed off the job by Xavier, the parent of a firm - sit down, gentlemen, thank you - from the parent of... from Xavier. Mayor Suarez: That's a hell of a name. Mr. Dawkins: And the reason they've been pushed off the job is, Xavier does not want to pay them a prevailing wage, according... it's alleged - I can't, because, see, you're a lawyer; I have to stick with you - it's alleged, air, that they refuse to pay a prevailing wage. So, will you get with them, and get with your client, and see if your client can't find out how these people. can work, or what the problem is. And I have nothing further to say, Mr. Mayor. Mr. McCrary: Commissioner, am I to render a report back to you on that question? Mr. Dawkins: You and Ms.... and... Mayor Suarez: Linbeck. Mr. Dawkins: ... the City Attorney here, um-hmm. Mayor Suarez: Mr. McCrary: Yes, sir. Mayor Suarez: You know, from my perspective, let me tell you, Jesse, how I feel. As far as I can tell, objectively, Linbeck is not meeting the goals. We all agree on that, that's an objective evaluation - they're not meeting the 17-17-17 percent goals. Certain totally -owned companies, apparently - I didn't know this until this morning - are being hired as subcontractors, and, to me, that already raises a presumption of "bad faith," to tell you the truth. Thirdly, when... if it turns out that some of the companies that were bidding against the totally -owned companies of Linbeck, had a lower bid amount, then that, to me, almost makes it a conclusion of "bad faith." And I would, without reaching any conclusions right now, because I don't know if those are the facts, suggest to you and to this Commission, that we give a little teeth to the Committee that we have supervising all of this, and ask... and resolve to have Commissioner Dawkins be a part of that committee, to review all of the data, and all of the fd 11 January 22, 1907 things that have been asked for today, to report back to this Commission, so that we can have it absorbed and digested, and delivered back to us with a recommendation. But it, just superficially - and I was not ready for this item, so I have not had a chance to meet with you and hear your responses, and I'm sure you've got some, and you've given some this morning, in terms of bonding, or whatever - to me, that's not going to be enough. To me, you've got to make the effort. Commissioner Dawkins and I were with the Insurance Commissioner just a couple of weeks ago, trying to work out ways to solve the problem of bonding for minority companies, and I think it can be solved a lot of ways. One way is for Linbeck to bond them, and, to me, that's not an impossibility by any means. That would cost a little bit more, and maybe that has to be built into the bid price amount, but don't just rule them out, even if they're $60,000 or $70,000 less in their bid, because of the bonding. Or split it up into segments, as Commissioner Dawkins has suggested. Come up with creative solutions. We have done this in the Bayside project, and it can be done in the Sports Arena. So, I would entertain a motion to have Commissioner Dawkins be included in that committee, and report back to us. Mrs. Kennedy: So moved. Mr. Plummer: Second. Mayor Suarez: Moved and seconded. Any discussion? Call the roll. The following motion was introduced by Commissioner Kennedy, who moved its adoption: MOTION NO. 87-78 A MOTION NAMING COMMISSIONER MILLER DAWKINS AS A MEMBER OF THE AD HOC MINORITY ADVISORY COMMITTEE FOR MIAMI ARENA TO SUBSTITUTE FOR ONE OF THE MAYOR'S APPOINTMENTS TO SAID COMMITTEE; FURTHER DIRECTING THAT COMMISSIONER DAWKINS BE NAMED .CHAIRMAN OF THE SPORTS AUTHORITY. Upon being seconded by Commissioner Plummer, the motion was passed and adopted by the following vote - AYES: Commissioner Miller J. Dawkins Commissioner Rosario Kennedy Vice -Mayor J. L. Plummer, Jr. Mayor Xavier L. Suarez NOES: None. ABSENT: Commissioner Joe Carollo Mr. Dawkins: Madame City Attorney, will you have Ms. Kelly, or someone in your office, draw up for me an addendum, to attach to all bids going out, that Linbeck is a company that one Commissioner on the City of Miami does not care to work with, and any contractor that comes in here with Linbeck as a construction manager will not get a favorable vote from me. And I want that as an addendum to every bid that goes out, because they have not acted in "good faith," and until these people understand that we are concerned about our community, and that some of these dollars remain in our community, and that people who work, work in this community, then I don't want them in here. (APPLAUSE) Mayor Suarez: Gana? Mr. Gene Marks: I'm on the Authority; my name is Gene Marks, and Mr. Blaisdell and I have been meeting in Houston, trying to upgrade the arena, if there's certain savings in certain areas. 8'7--2'7� 87am= fd 12 January 22, 1987 Was the motion, Mr. Dawkins, is that no one will do any work who does not have a signed contract? Now, there is intents of contracts, that we have approved, but the final wording of that hasn't been done. If it's done, like Xavier, for an example, who is doing the foreman Work out there, a contract, they have admitted, has not been signed, but the intent, by Mr. Blaisdell and I, going over the bids - and we can only go over what is submitted to us by Linbeck; we cannot force them to use anybody; they can give us the bids, the low bids, for the breakdowns, and then we recommend, you know, on that basis. If your motion means that being that a valid contract has not been signed, are you including them in it? If it is, I will tell you now, the job is _ stopped as of right now. Mr. Dawkins: That was my intent, OK? Mr. Marks: Well, that's... Mr. Dawkins: Hold itt It... you... Mr. Marks: ... one thing I wanted clear for the record. Mayor Suarez: Wait, wait, wait, Gene. Mr. Dawkins: Well, I'm trying to clear it for you, It you let me. Mr. Marks: OK. *All right. Mr. Dawkins: OK? That was my intent, OK? But then I sat down and I thought. You know, somebody could really and truly be trying to be sure Miami does not get the franchise. So, if we can create the atmosphere of ill will between the City, the Sports Authority, and the basketball team, then the individuals giving out the franchise will say we're not together. So I said no, I'm not going to do it. I'm not... I intended to stop the job, OK? But why... but like I say, Mr. Bufman is the victim in this, see; he's done all he can to get a basketball team, and - we've got guys around here who are trying to shaft him, OK? So, now, I said, and I will say again, that the Manager has to make a decision. That's what we pay him for. And I said that he does not let Mr. Blaisdell sign off on anything that he's not satisfied with. That was the motion. Mr. Marks: Big difference. So, if that is the motion, then, at this time, then the project... Xavier, being there is not a... can I just give you a little background of this? Mr. Blaisdell and I have been going to Houston, and I've spent an awful lot of my time, which I don't mind, as a native of this town all my life,... Mr. Dawkins: Well, you're rich - it won't hurt you. Mr. Marks: Miller, I remember when you didn't have anything either. (LAUGHTBB) Mr. Plummer: Hell, that was yesterday. Mr. Marks: Let's not get into personalities. OK, I was just kidding you. The contracts between Decoma and the Authority, Decoma has picked Linbeck to construct for them. We are taking the short cut, of going directly with Linbeck to try to get this worked out. As we are in Houston, Decoma's representative is on the job, going over all the prices. There is ways of saving, and I'm going to ask you people, as the Commission: the monies we have saved in certain areas, we want to upgrade the seats, because it was bid as seats, plastic back and plastic seats. What we saved, we felt, is going into something that was comfortable. Now, if you want to save on that, and it's your 87 — decision to stay within the budget and go over and give higher fd 13 January 22, 1987 10 V prices to subcontracts, it's possible, it can be done, but you're going to end up with bad seats, you're going to end up with just plain concrete floors - we're trying to upgrade the arena. So, I just want this understood there, that we do have a budget, and it's very, very tight. ' Mr. Plummer: Well, let me ask you, Gene, because you're a contractor: is it a normal procedure that a company would do business with another company without a signed contract? I guess I've got a problem with that. To me, how do you hold somebody's feet to the fire, if you don't have a signed contract? Mr. Marks: J.L., it has to be the trust between the two parties, with the intent. I mean, it's... that's what it amounts to. I have done this, if I know a certain contractor, by the time you get the insurance and, you know, so on and .so forth, there may be odds and ends; but if the intent is there, the letter of intent, it can be done. Mr. Plummer: Is that just as binding? Mr. Marks: Like I say, it's between the two parties, if they trust each other. You've got to know who you're dealing with. Mr. Plummer: Well, I don't know what Xavier... the Xavier company is doing, but, may something goes wrong in the interim, between the time of letter of intent and a contract - would that give them the possibility of escaping, and say, "Hey, guys, thank you, I quit" - and then you're stuck with it? I mean, I don't know. Mr. Marks: Xavier is a subsidiary of Linbeck, so they will work it out,between themselves. (LAUGHTER) �I Mr. Blaisdell: Commissioner, on the example of Xavier... Mayor Suarez: Let me just clarify something here, procedurally, because we... , Mr. Dawkins: Xavier is you? Mayor Suarez: though. But... Mr. Plummer: Suarez. (LAUGHTER) Mr. Dawkins: No, it's no relation. That's a great name, Yeah, but they're a wholly -owned subsidiary of But Mr. Manager... Mayor Suarez: Not all kids were baptized Xavier after me. But we have not passed any motion to the effect that is being discussed now. So far, we have just given our indication of the consensus of how upset we are, that we wouldn't want any new contracts to be signed. I'm not sure that we can pass such a motion, legally, but... no, we haven't passed that yet, and I don't want anybody to get that impression. We're not discussing that; we're just discussing the Commission's consensus that we would like no new contracts to be signed, unless acme of these goals are being met to our satisfaction. Now, how we put that, in terms of Commission action, we haven't decided yet. Mr. Blaisdell: May I suggest something to the Commission? Mayor Suarez: Sure. 137-272 NOTE FOR THE RECORD: Commissioner Joe Carollo entered the meeting at 12:13 P.M. Mr. Blaisdell: In connection with the Commissioner's motion, and one point of clarification, is that in the process of approving the selection of a subcontractor, after the evaluation is completed by Linbeck, that is submitted to Decoma, who is the owner under the agreement, and then, at the same time, it'-s also submitted for review to the Authority. So it is not the case, whereby the Sports Authority, on its own, makes a determination whether or not the contract should be awarded to contract A, B, and C. Decoma is, in addition, supposed to sign off and approve the subcontract to be awarded. Mr. Plummer: What happens if the Sports Authority does not sign off? Mr. Blaisdell: We would have to go into arbitration. If Decoma disagreed... if we said we don't agree, and they were recommending it, they could not enter into it. We would have to go to arbitration. Mr. Plummer: Has there been such an incident occur? Mr. Blaisdell: No, air. So far all the recommendations from Linbeck have also been recommended by Decoma. We have elected... Mr. Plummer: Wait, whoa, whoa, one more step. Have all of the recommendations recommended by Linbeck to Decoma, and Decoma to the Sports Authority, been signed off on? Mr. Blaisdell: No, sir. As a result of our... of the Authority's... as a result of our knowledge of the importance of the minority participation to the City Commission, and Commissioner Dawkins' comments, we elected, on certain subcontracts, not to approve them pursuant to their recommendation, and we tried, along with some of the local minority business enterprises, the associations, to try to assist to make that possible, because the reason that the minority contract... the reason that company that they were recommending was not awarded the contract, was because they (a) could not Insure or they could not bond. But after two or three months of gyrations and going back and forth, it became apparent that there is a... we get to a point of no return, where now we have to make a decision for the project as a whole, and in looking at the total participation of the project, we are faced with... we have to make a decision. And we, here, and the numbers that we recommended to the Commission today, we have made an affirmative decision on those two which were previously withheld. Mr. Plummer: Did the Sports Authority sign off on the contracts of Helena and Xavier? Mr. Blaisdell: On Helena, for the structural steel erection, they were low qualified bidder, and the Authority signed off on that one. On Xavier, Xavier was not the low qualified bidder; the low qualified bidder recommended to the Authority was Coco Corporation. Ceco Corporation is... has been a union firm, mason firm, concrete forming firm, for a long time. They have just elected to go to nonunion, except for in Chicago. And they, after we signed off and awarded the bid to them, pursuant to their recommendation, so they didn't recommend their firm - they recommended the low qualified bidder. Coco Corporation... Mr. Plummer: That's important. fd 15 January 22, 1987 ILI Mr. Blaisdell: That's what I'm trying to clarify. Ceco Corporation pulled out, and said, "You guys are on your own." And the second bidder, the second low qualified bidder, happened to be Xavier Structures. And when you evaluate the way you come to numbers, there is no... the numbers are there; I mean, the documents, and they're open to review, and they're open to audit. Mr. Dawkins: OR, what is the problem, then, with Javier and the carpenters? Mr. Blaisdell: The carpenters... Paul can speak to the labor issue. My understanding is, Xavier is a nonunion firm, and they have elected to hire local carpenters,... Mr. Dawkins: From where? Mr. Blaisdell: From Miami, to... who are... Mr. Dawkins: Out of what section? Mr. Blaisdell (OFF MIKE): Paul, do you want to address the issue or not? Mr. Dawkins: No, you address the issue,... Mr. Blaisdell: I don't think that there's a... Mr. Dawkins: ... I don't want to... I'm through talking to him. Mr. Blaisdell: OK. They have elected not... they're a nonunion contractor, so they are not using union personnel, so the current picketing... Mr. Dawkins: All right, but what is the prevailing nonunion scale? Mr. Blaisdell: For carpenters? I don't know. Mr. Dawkins: All right, that's all right. What's the prevailing nonunion scale? Anybody over there. (INAUDIBLE BACKGROUND REPLIES) Come up and give your name and... Mr. Paul Walker: My name is Paul Walker. I'm with the Carpenters' Union. Some of any men have went in, and asked for jobs, asked how much they're paying. It's $10, $12, $9, depending on what we want to pay you. The prevailing rate in Dade County today - I've got a prevailing rate job right here at Jackson Memorial Hospital; total package is $13.88. Mr. Dawkins: OR, thank you. Mr. Walker: Thank you. Mr. Plummer: Is that union, or nonunion? Mr. Walker: That is a prevailing rate; it is a nonunion job. Mr. Plummer: For both? For both? Mr. Walker: Sir? Mr. Plummer: The prevailing rate is for union or nonunion? Mr. Walker: Yes, sir. Mr. Plummer: All right. Mr. Walker: That's the prevailing rate, that's not by the Federal government and Dade County. Mayor Suarez: It's a non -negotiated prevailing rate, just... -97~ fd 16 January 22, 1987 t Mr. Dawkins: See, OK, and you guys are locked out because they don't want to pay you $13. They're going to get somebody off the street they can pay less, is that correct? (SILENCE) See, I mean, see this... they're not operating in "good faith," J.L. Mr. Walker: Commissioner, I cannot answer you that question, because I have not negotiated with Unbeck or Xavier. I'm just relating to you what my members have came and told me. Mr. Dawkins: All right, we've got one more thing, and it's almost 12:30 P.M. Let me may this, Mr. Mayor and fellow Commissioners. I want to ask one more question, John, and then I'm going to... Mr. Blaisdell: Yes, sir. Mr. Dawkins: ... close this out. Who bonds Xavier... I mean, where does Xavier Corporation and Helena get their bonding from? Mr. Blaisdell: On their own. Mr. Dawkins: On their own? Mr. Blaisdell: Yes, sir. Mayor Suarez: Are you convinced that they... Mr. Dawkins: Well, all right, who's property log sheet do they use, theirs, or...? Mr. Blaisdell: I'm sorry, could you... I didn't understand... Mr. Dawkins: See,... Mayor Suarez: Are you convinced that they didn't use the financial statements of the parent corporation to get their bonding? Mr. Blaisdell: No, I'm not sure. Mayor Suarez: I would suspect that a subsidiary... Mr. Dawkins: They'd have tot Mayor Suarez: ... that has a bonding limit, would get help from their parent corporation in their financial statement. Mr. Dawkins: They'd have tot I mean, that's standard common sense. Mr. Plummer: Well, that would be depending on the scope of the project. Mr. Dawkins: OK, Mr. Manager... Mayor Suarez: No, right. I mean, I was just... it's a guess. They don't have to. A subsidiary can stand on its own, if it can get the bonding, but I'd bet you that, if I had to bet, that they used the parent corporation's financial statement. Mr. Dawkins: Mr. Manager, - I agree with you - Mr. Manager, I'd like to bring this to closure. Would you instruct... Madame City Attorney, is there any way, now, to tell Can -American, Cruz Construction, and Sirka Bonds, that no contract is going to be signed with them, until they have met the minority part of the agreement. Can we do that? Mrs. Dougherty: In other words, make it a mandatory minority... - Mr. Dawkins: Before we sign anything with them, they've 8 g y 6 y got to come in here with minority -signed contracts - 17 percent Cuban, fd 17 January 22, 1987 u 40 9 signed; 17 percent ladies, signed; 17 percent Black, signed, and then we sign with them. Mr. Plummer: All right, question. Mr. Dawkins: Yes. Mr. Plummer: Are you likewise saying that they have to be the low bidder, and capable of bonding? I think that's important, because, if you don't... Mr. Dawkins: But you see, J.L., the "capable of bonding" - no, because Bayside worked out the bonding, and they are well pleased with the two individuals they've got over there. And I hate to may this, but Tom is blackballed from somewhere, because Tom has lost two jobs that he bid on, and they told the people that... told him it was union, and told the other people it was nonunion, and he lost the bid. Mr. Plummer: Well, but my question is: each of these companies have made representations to this City, as to what they're proposing, and their rates, and what they're going to charge. Now, if you go to this, are you going to have a safeguard provision in there, that these minority firms must be bidding in at the same price, or below bidder? Because, if you don't... Mr. Dawkins: Oh, yeah - but, no, wait now, we don't have any... we .do want to accept the low bid, OK? I have no problem with that. Mr. Plummer: OK, all right. Well, that's a safeguard. Mr. Dawkins: But I cannot sit here, and let anybody think that I'm going to vote for anything where they have excluded us, by bonding. Mr. Plummer: OK, so what you're saying is, that they've got to produce a mandated 51 percent, but they must be also through a bidding procedure, and must be low and responsible bid. Mr. Dawkins: Got to be competitive. You've got to be able to bid competitively, or you don't... you've got no business being In business. I have no problem with that, J.L. Mayor Suarez: Why couldn't... Mrs. Kennedy: Is that in the form of a motion? Mayor Suarez: ... we have an opportunity... Mr. Dawkins: Om-hmm. Mayor Suarez: ..* to resolve their bonding... Mrs. Kennedy: Is that in the form of a motion? Mr. Dawkins: Yes, um-hmm. Mayor Suarez: ... problems whenever those come up - the City? Mr. Plummer: Well, because you're talking... I guess you're talking, Xavier, of millions and millions of dollars. Mr. Dawkins: OK, let's... Mr. Plummer: There's no question about that. Mr. Dawkins: I'm finished. Mayor Suarez: Well, that's... 87— 272. 87-27a 7, fd 18 January 22, 1987 r 1. Mr. Dawkins: I'll close that, because we've got one more, and it's almost 12:30 P.M. Mrs. Dougherty: So you're asking that we... Mrs. Kennedy: Second. Mr. Dawkins: Um-hmm, OR. Mrs. Dougherty: ... make that a... Mayor Suarez: Moved and seconded. Mrs. Dougherty: condition of the... Mayor Suarez: Under discussion. Mrs. Dougherty: ... all of the contracts. Mr. Dawkins: We'll discuss it and bring it back at the next meeting as a resolution. OR, thank you, Mr. Mayor. Mr. Mayor, I've got one more, and I'll be ready to go. Mayor Suarez: You don't want to vote on it? Mr. Dawkins: Yes, vote; vote, yeah - I want to vote on it. Mr. Blaisdell: Mr.... and Commissioners. Mr. Sipes, from Linbeck Construction Company, would like to make a statement in connection with the carpenter's statement on the wage, if... Mr. Dawkins: By all means, by all means. Um-hmm. Mr. Blaisdell: Thank you. Mr. Sipes: I am with Linbeck Construction Corporation, and Xavier Structures is an affiliate of Linbeck Corporation, which Linbeck Construction Corporation is also. I'd like to point out, several months ago, Linbeck Construction Corporation contacted the Carpenters' Local, to tender a contract at their wage, and they... we have reached impasse, due to their actions. Xavier Structures, to the best of my knowledge, has also done the same ti�,ing; they have not at the prevailing wage. I'd like to point out, because the project is not totally union, that there might be others that will be in here with the same actions, and that should be considered in what this body does. Thank you. Mr. Gustavo M. Figueroa: Commissioners, Mayor. Is this on? (MIKE) Mr. Dawkins: Your name and address, please. Mr. Figueroa: My name is Gus Figueroa. I'm a State representative for the Carpenters' Union, Florida State Council of Carpenters. We're located at 295 West 79th Place, Hialeah, Florida. We had been contacted by Linbeck a few months ago, like Mr. Paul Sipes mentioned, and we were trying to enter into "good faith" negotiations with Linbeck Corporation, and also, recently, shortly after that, we were contacted by Xavier for the same purpose. Linbeck Corporation offered us... wanted us to tie our hands on the project, to, basically, secure employment for one or two carpenters that were going to be their lead people on the job site, running all the operations, and while the rest of the job would go, basically, open shop, or, basically, we would have no way to protect our members or protect the community at large, from substandard wages and benefits and conditions that were being employed on this particular project. We refused to negotiate, in any manner, of any sort, with that type of condition imposed upon us, with Linbeck. And with Xavier Construction, Xavier Construction, even though this is not the proper forum to bring up collective bargaining issues between the unions and the private party involved in these negotiations, fd 19 January 22, 1987 ` Xavier Construction, their representative, Bill Scott, had contacted our facilities, to discuss the possibility of a collective bargaining agreement being drafted and worked out, for a project basis only, on this job site. We have agreements that are executed on a county -wide basis, in this area, and have successfully negotiated with many contractors from the local area. Xavier has, basically, asked us to provide them with a front, in regards to making it seem like we would accept a few contractors... I mean, a few carpenters, on the job site, getting the prevailing wage, while we turn the head, and let the rest of the community suffer with lower substandard wages and benefits being paid to them, and lower our heads and shy away from that particular situation. Even, you know, that's a situation that caused us to be out there in full force like we are right now, with a protest, before the community, about the substandard wages and conditions; and we refuse to bargain in that manner, when we're being told to, basically, play games, when we don't play games with the community, and we don't expect the contractors in this community to have games played with them, either, in the process that they bid the projects, etc., in the ongoing situation down here. Mayor Suarez: Thank you for your statement. Mr. Figueroa: Thank you. Mr. Plummer: Well, why don't you just follow that up, the gentleman from Linbeck Construction? Has he made a true statement, sir? Mayor Suarez: It's a matter of interpretation. Mr. Sipes: I really cannot speak to what the conversations are between them and Xavier Structures. Mr. Plummer: No, no, he said they first went with you; they talked with you. Now, he's made... Mr. Sipes: At our invitation, yes, they did. Mr. Plummer: Excuse me? Mr. Sipes: At our invitation, we had those conversations, yes. Mr. Plummer: And was it your intent to only hire two, to be front people? Mr. Sipes: No, sir. Mr. Plummer: Did that discussion evolve at any time during your discussion? Mr. Sipes: No. No, sir. Mr. Plummer: So, what you're saying is, that he's incorrect. Mr. Sipes: I think he just said that was Xavier who did that. Mr. Plummer: No, sir, he said both. Mr. Sipes: Well, that... it's incorrect. Mr. Plummer: Excuse me, is... did you not say both? Mr. Figueroa: Yes, sir. Yes, sir. Mr. Plummer: All right, air. Mr. Sipes: Well, that's not correct. I was in the conversations, and that did not occur. We have more... we have like two carpenters on the project now, due to the time frame of 87-2 7,Z , the work. 8'7-273 fd 20 January 22, 1987 Mr. Plummer: I just wanted it on the record. Mr. Figueroa: Commissioner Plummer,... Mr. Plummer: Yes, sir. Mr. Figueroa: ... if I can interject a second, here. If that was the intent of Linbeck, to, basically, self -perform on the project, on the form work, and so on, why is it that their subsidiaries are involved in the project, .in the bidding process, and involved in contract work? Mr. Plummer: Well, they have every right to bid, there's no question about that. Mr. Figueroa: But, to contradict the issue, Commissioner, in regards to that... when we were approached, in regards to being offered a contract with Linbeck, that would, basically, tie our hands in regards to no strike, no walkouts on the project, etc., which is the strong language that they have imposed in their proposal to us, their employment proposal was to employ just the lead carpenters on the job site. The rest of the carpentry work, which we represent, would have gone open shop, or whichever way it was let out. Mr. Plummer: Sir, he said that didn't happen. Mr. Sipes: Commissioner, I think what he is attempting to say is, other subcontractors' workers would be whatever that subcontractor chose to do, and that is a fact. That is a true statement. But the people in the direct employ of Linbeck Construction Corporation would have been... their wage, whatever scale that was. I would like to add that the Laborers' Local, the Operators' Local, and the Ironworkers' Local, have all signed our agreement, a similar agreement that we tendered to the carpenters. Mayor Suarez: Do we have a pending motion? Mrs. Kennedy: The motion on the floor. Mr. Plummer: No. Mrs. Kennedy: Yes, Mr... Mr. Plummer: Wait a minute, what is the... Ms. Hirai: It was a direction to the administration. Mrs. Kennedy: Commissioner Dawkins put it in the form of a motion and I seconded. Mayor Suarez: What was the... Mr. Plummer: Oh, this is in reference to the other group. Not... it doesn't speak to this, it speaks to the other groups that you're talking about. Mr. Dawkins: Yes. Yeah, the other groups, yes. Mayor Suarez: And when would it take effect, Mr. City... Mr. Dawkins (OFF MIKE): Immediately. Mayor Suarez: You're talking about for Overtown/Park West, then? Mr. Dawkins (OFF MIKE): Yes. i Mayor Suarez: OK, all right. Call the roll on that motion. fd 21 January 22, 1987 Ae i W i The following motion was introduced by Commissioner Dawkins, who moved its adoption: MOTION NO. 87-79 A MOTION DIRECTING THE CITY MANAGER KOT TO ALLOW ANY CONTRACT TO BE SIGNED IN CONNECTION WITH THE DEVELOPMENT OF THE SPORTS ARENA UNLESS SAID COMPANIES PROVE THAT THEY HAVE MET THE STIPULATED MINORITY HIRING GOALS WHICH HAVE BEEN SET BY THIS CITY. Upon being seconded by Commissioner Kennedy, the motion was passed and adopted by the following vote - AYES: Commissioner Joe Carollo Commissioner Miller J. Dawkins Commissioner Rosario Kennedy Vice -Mayor J. L. Plummer, Jr. Mayor Xavier L. Suarez NOES: None. ABSENT: None. Comment made during roll call: Mr. Plummer: With the assurance that the safeguards of the competitive bidding, the bonding capacity, and responsible, are built into the procedures, I vote yes. fd 22 January 22, 1987