HomeMy WebLinkAboutItem #20 - Discussion ItemGiC A
ls ri M 4 0 1
Members CT19
r o Honorable
Mayor and
Octobgp 80
of the City Commission
SBOC - Wynwood
Richard L. Posmoen
Emilio Lopez' allegations
City Manager
City Commission of 9/15/80.
To keep you abreast
of the staff's investigation of the allega-
tions made by Emilio Lopez on SBOC's activities in the Wynwood
area, please note the steps that have been taken:
1. September 15
Emilio Lopez addressed the City Commission
(see Exhibit 1) and made a number of allega-
tions in reference to SBOC's activities in
the Wynwood area.
2. September 18
City of Miami's Law Department and the Depart-
ment of Trade & Commerce Development's staff
met with Emilio Lopez, Manuel Silva, and Jorge
Pont, and obtained an official'statement and
deposition of all allegations made. (see
Exhibit 2).
3. September 19
The Department of Trade & Commerce Development
began an independent investigation.
4. September 24
The Law Department was asked by the Dept. of
Trade & Commerce Development to give a legal
opinion on City's jurisdiction over allega-
tions vis-a-vis the City's contractual arrange-
ments with SBOC.
5. October 7 --
Trade & Commerce Development's staff received
a legal opinion from the Law Department. only
two of those allegations are relevant to the
City's contractual. scope. (See Exhibit 3).
6. October 8 --
The 109-11. opinion submitted by the City's Law
Department was forwarded to SBOC for their
review and comments.
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Honorable Mayor and Members
of the City Commission
Page 2
October 8, 1980
The following actions will be taken:
1. October 15 -- The Senior Staff and Board Members of SBOC
are requested to appear before the City's
,Law Department and the Department of Trade &
Commerce Development's staff to contest with
actual proof the allegations made.
2. October 23 -- The City's Law Department and the Department
of Trade & Commerce Development will give a
final report and a recommendation to the City
Commission on this matter, on the City Commission
meeting of this date.
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EXHIBIT 1 . .
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'.CITY OF MIAMI
GENTLEMEN:
IN JUNE, THE CITY OF MIAMI COMMISSION GRANTED $50,000.00 OF COMMUNITY
DEVELOPMENT FUNDS FROM THE WYNWOOD TARGET AREA, TO AN OUTSIDE CORPORA—
TION. YOU DID THIS AGAINST THE WISHES OF THE ADMOUY BOARD. THIS
CORPORATION (SMALL DUSI,NESS OPPORTUNITY CENTER) HAS VIRGILIO PEREZ AS
ITS EXECUTIVE DIRECTOR AND LUIS SADINES AS IT'S VICE PRESIDENT AND'
TREASURER. SABINES IS THE ACTUAL PRESIDENT of T'11E LAT'IN CHAMBER OF
COMMERCE. I WOULD LIKE TO POINT OUT THE FACT THAT THE BOARD OF DIREC—
TORS OF THE "SMALL BUSINESS OPPORTUNITY CENTER" IS COMPOSED ENTIRELY
OF CUBANS, WE FEEL THAT THIS DISCRIMINATES :'AGAINST THE OTHER ETHNIC
GROUPS IN THE WYNWOOD =01UNITY.
FURTHER1,10RE WE WOULD LItCE TO POINT OUT THE FOLLOWING.
1
• WE HAVE LEARNED THAT TIDE COb1b14.51-1i0N GRANTCU THE MONEY, AGALUST
THE RECOMbIENDATIONS OF STAFF. ,
•TllAT THE ORIGINAL DIRECTOR OF THE PROJECT, MR. MANUEL SILVA
WAS FIRED FOR NO JUSTIFIABLE REASON.
4 THAT HE WAS 'TOLD THAT HE HAD TO FLACK, JOSE MENDEZ FOIL CHAIRMAN
OF THE C0 4.11UNITY DEVELOPMENT AD''lISORY 1sOARD IN W Y. 111 IN100 D, Op. ELSE,
i.
0 'THAT iiE 14AS ORDERED TO INCLUDE: IN THE UUDGET A 511 F'L.'1t 110UR
SALARY FOR MR. VIRGILIO PEREZ, AND WAS Old)N'REU TO PAY FOR AN
ADDITIONAL OFFICE FOR THE PROGRADI AT $7.1.4 A SQUARE FOOT IN THE
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LATIN CHAMBER OF COMMERCE3DESPITE BUDGETARY LIMITATIONS.
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' 'THE: CONTRACT STIPULATES .MKONLY TWO CMPLOYEGS, THE DIRECTOR
AND TNC SECRETARY, PCRE9 IMPOSED JAIME GUOITS IN AN ADDITION-
AL POSITIQN, PLUS PgREZ OWN SALARY.
THAT GUEITS, DIRECTOR OF "PANORAMA" A CODWUNITY NEWSPAPER,
i
FAILED• TO COMPLY WITH EIIS DUTIES AND ONLY'Di;ALT WIT)l HIS
PUBLICATION DURING WORKING HOURS.
MR. MANUEL SILVA IS WILLING TO M;TIF Y UNDER OATII REGARDING+
THIS INFORMA`i'ION.
WE OMMAND A REVIEW OF THE PkOGRAM FROM THIS COMMISSION ;:EGARDT`1G 'PHIS
THIS QUESTIONABLE PROCEDURES.
EMILIO LOPE' er
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r: AXHISIT 2
MINUTES
THURSDAY, SEPTA R•18, 1980
10:30 A.M.
AT CITY OF MIAMI, DEPARTMENT OF TRADE 6 COMMERC% DEVELOPMENT,
CONFERENCE ROOM,
Present:
Tony E. Crapp, $r. Division Head, Business Development
Department of Trade 6 Commerce Dev.
Terry Percy, Ass!t City Attorney, Law Department
Mark Valentine, City of Miami, Law Department
Emilio L6pez
Manuel Silva
Jorge Font
r.
("1 CKapp called the meeting to order stating the -purpose of this
meeting was due to the appearance of Mr. Emilio L6pez at the City
Comnis:;ion meeting of 9'15180, at which time, Mr. L6pez read a
staten;ent (see copy enclosed) which raised some questions in
regards to the SBOC procedures and requested a review of the
program.
The City Conunission requested this meeting be held in order to
clarify this matter, and report back to thu City Conunission on
9'25'80.
Mr. L6pez enumerated the main points of his accusation:
1. Flow come the Federal Government allows an agency
which serves the people with a Board composed of
only 1 nationality? All other Boards he knows
are integrated. This Board was never.seen by Mr.
Silva nor any minutes.
u.
2. The. way Manny Silva was fired. Manny
Silva was the Administrator of the SBOC
Program. He hired'a•young lady as a secretary
(Teresa Rosario) who was asked to resign after
working two weeks stating that it was an error
that Mr. Silva hired her.
Mr. Percy inquired of Mr. Silva how he was hired? Mr. Silva stated,
Mr. Virgilio Pdrez personally hired him. He was fired 4 days after
the girl for having hired her. I
Mr. Crapp asked if Mr. Silva had seen a personnel policy or if he
was aware of any rioting. Mr. Silva replied no. He checked and
there was no policy regarding his hiring of personnel.
3. Mr. L6pez feels there is 4 conflict of interest
on the part of Mr. Luis Sabines who is Vice -
President of CAMACOL for having an office where
Mr. Silva was located in the,CAMACOL building
and charging rent of $ from SBOC.
Mr. Percy asked Mr. Silva if he had a job description. He replied
No and said he never had to sign a contract.
4. The SBOC contract calls for 2 positions, but
Virgilio Pdrez imposed a third person (Mr.
Armada, Director of Panorama Newspaper) with
a salary of $12,000, Also, Mr. Virgilio Pdrez
is an employee: making $17/hr.., while also serving
as Executive Director of SBOC.
Mr. Percy_ wanted to first establish his authority to hire the
secretary
Mr. Silva repeated lie was Program Director; he assumed he had a
right to hires the secretary since there was no personnel policy to
the contrary. He received a few months later, on 8/25/80, a
welcome letter from the Board Committee confirming his employment,
signed by Mr. Rivas. tie claims lie never met Mr. Rivas. Mr. Silva
claims SBOC is only a corporation on paper run by Virgilio Pdrez.
Mrs Silva requested minutes of the Hoard and a meeting to expose
i his points, but his was never done and then he was fired. He
i never saw the Hoard. He claims Virgilio Pdrez verbally instructed
him to hire a secretary, he interviewed 3 persons and hired
Teresa Rosario. After the girl worked for 2 wedks, Mr.rSabines
who signed the checks with Mr. Silva refused to sign the secretary's
check.
Lk. Crape stated that the secretary of State validated SBOC.
Lopez claims CAMACOI, runs the whole thing.
Mr. Percy then cloncluded that so far there are no allegations
that the City contract has buecf broken.
Mr. Lopez stated that Affirmative Action or Lqual Opportunity
could check on a regulation which would apply to the: hiring of
Board members.
Mr. Percy, said their meetings could be held any time they so
agreed.
Mr. Lopez said tie knows these people are not doing tile: right thing.
He: says the City can check if there is a violation in regards
to Equal Opportunity. He claims the otely 2 Puerto 12ican5 at
SLOC were fired for no justifiable reason. lie ft:4],s this falls
into the guidelines for hiring discrimination.
Mr. Percy stated tiler COMPOS-ItiOn of tile: board is irrelevant. lie:
further explained in order to check on a d"crin►itiation charge:
they would have to check filers to see. if SBOC advurtised, their
files of rusunies and who was or wasn't hired.
Mr. Lopez stated he is bringing this inatter up to the Law Department
for it to investigate for discrimination.
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Mr. Percy_ explained that discrimation is extremely hard to prove,
until it is proven the Law Department can't do anything.
Mr. Silva stated that CAbIACOL was an unbrella agency.
I
Mr. Percy stated the City couldn't go witch huhb+ing, they had to
have proven factsi
Mr. Silva said CAMACOL is trying to infiltrate the Wynwood area.
They wanted to use him as a Token. He was even asked to back
Jose Mendez for Chairman of the CD Advisory Board in Wynwood or
else. He claimed Mr. Ame►dos was hired as a political favor.
He says the $50,000 awarded to,SBOC are going to be wasted:
Mr. Percy said these were all political allegations and the City
could not do anything about it.
Mr. Lopez said there was a conflict of interest regarding Luis
Sabines ordering Mr. Silva to pay $7.14 to CAMACOL for office space
in Little Havana.
Mr. Percy clarified that serving at CAMACOL and at SBOC was no
conflict, but using his position at one plac►: to benefit the other
is a conflict of interest.
Mr. Crapp added that SBOC could have a satellite office at CAMACOL.
These funds will not be used to pay for that office SpaCU.
Mr. Lopez- said that Virgilio Perez, Exucutive Uirector was also
an employee (Consultant) earning $17;hour.
1
Mr. Crapp said any sub -contract has to be approved first by the
City of Miami Department of Trade & Commerce Development. If
i,
there is no sub -contract approved by us, we just wonit pay..
Mr. Percy explained that assuming all. these allegations are true,
the City still must substantiate them. So far, we have no proof.
Mr. Silva stated that Mr. Sabines and himself signed at least
2 payroll checks for Virgilio Perez, as an employee. If audited,
they must show up.
Mr. Percy said an audit is Federal routine. Mr. Silva then formally
requested an audit of SBOC be done as soon as possible.
Mr. Crapp agreed that the nature of these allegations required
an audit. He also explained that the City Commission had requested
an answer by 9/25/80's Commission meeting.
Mr. Silva stated he wants the City of Miami to realize the way
SBOC is being used to control political power.
Mr. Crapp said the next step is to go to the Couunission and tell them
of this meeting and our plans to process.
Mr.
Valentine
then classified that
Mr.
Lopez and Mr. Silva wanted
the
City's Law
Department to check
on
two things:
1. Violation of Personnel Policy
2. Mismanagement of funds.
Re whether Mr. Silva's employment was lugai or not that you must find 1
out by yourself because this is an i►itornal pursun►►el matter.
If Mr. Silva's firing was loyal that the City can chuck. But, he
suggestud Mr. Silva see Lorraine Anaya, (Equal Opportunity Employment
or Affirmative Action) and file: a formal culiQlaint. �
t
Mr. Percy inquired who thu bookkuepur or accuuntant was, to which
Mr. Silva an:;wured Mr. Paul Cujas from the :school Board and Per.
Si1lrsdiµi'"'c'.„e2 "mtralu,y`J�.'Jt7�Li�L+i•16�
Manuel Garcia, C.P.A. were to be sub -contracted for this purpose.
But he was fired before this happened.
Mr. Font added that SBOC was granted the $50#000 even through the
C.D. Advisory Board and the Wynwood Task Force were both opposed.
It was agreed by O11 present to disregard the accusation about
the contract allowing for 2 people. The contract actually allows
for 3 people. However, Mr. Lopez, Silva, and Font corrected that
although the contract allowed for 3 people thereby allowing the
hiring of Mr. Armada, it definetely did not allow for Mr. Perez
as consultant and his salary. They added the time sheets would
also be in the records for the audit.
Jorge Font -------- 573-2280
Emilio Lopez ----------
576-1878
Manuel Silva
01r, EXHIBIT 3
CITY OF MIAMI, FLORIDA
INTEN•OFFICE MEMORANDUM
To. Tony Crapp WAIL October 60 1980 `I`EVIIA 80-
Division Head, Business Development
De . of Tra Commerce Developowat Violations of Small Susin-
ness Opportunity Centers,
n Inc. (SBOC) Economic
Development Contract
PNoM e�� Knox, r.CiJg
Attorne
Y.NCLUUuul•,
This is in response to your request for a legal opinion
concerning several allegations made by residents of the Wynwood
Target Area. Specifically, the allegations pertain to activi-
ties and policies of Small Business Opportunity Center, Inc.
(SBOC) as they relate to the Economic Development Contract
SBOC has with the City of Miami. Several of the allegations
are outside the scope of SI30C,19 contract with the City of
Miami; however, the claims of discrimination and conflict of
interest are relevant to the contract and, as such, will be
addressed below:
I. EQUAL_ OPPORTUNITY/DISCRIMINATION.
The allegation, as this author perceives it, is as
follows:
SUOC has either terminated or failed to hire Puerto
Rican employees and, in the alternative, has hired an all
Cuban staff. As such, complainants claim this is a violation
of SBOC's contract with the City of Miami.
Section 5.2, EQUAL OPPORTUtIlTY, of the contract provides:
5.2 EQUAL OPPORTUNITY
Thu contractor agreos that thure will be no
discrimination against any employees or person
served on account of racu, color, sex, relig-
ious creed, ancestry, or national origin in
its performance: of this contract; and it is
expressly understood that upon the receipt of
evidence of such discrimination, the City shall
have the right to terminate this contract.
111Q significant portion of this provision in ". .evidence
of such discrimination„ . .11. The bare allegation that SBOC
Tony CrapP -r2- October 6, 1980
r .
has hired an all Cuban staff, at the expense of former or
potential Puerto Rican personnel 'is not per so a violation of
the contract. Such allegation requires an extensive fnvestiga-
tion by your department to find evidence of a pattern and
practice of discrimination against non -Cubans or, in particular,
Puerto Rican residents. As a matter of law, the standard of
proof of racial discrimination or discrimination based on
national origin in a strict standard and, more times than not,
very difficult to meet.
I1, CONFLICT OF TN'ruiq:s'rs
Tile: allegation, as this author purcoives it, is that
Virgilio Perez, Executive Director of SBOC, has also been hired
as a consultant to the same. ,
Section 5.3, CONFLICT OF INTERESTS, of the contract pro-
vides:
5.3 CONFLICT OP INTERESTS
No official or employee of the Contractor may
bo admitted directly or indirectly to any share
or part of this contract or to a-ny benefits to
arise from the same nor own or acquire any per-
sonal interest in any proporty, contract or
propo:iud contract which would conflict with or
relate to the performance, their duties or res-
ponsibilities under this contract. If any
such porson presently or in the future acquires,
owns or controls any such share, benefit, or
personal interest, he: shall immediately dis-
close such interest to the City and (other
appropriate: agencies). Upon such disclosure,
such person shall not continue his participa-
tion. The Contractor will comply with all
Federal, State and local conflict: of interest
laws and requiremunts.
As.sumini the foregoing alloyution is proven, such relation-
ship would constitute a violation of the Conflict of interest
provision.
GFK/MAV/wpc
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or,
ony Crapp -3- October 6, 1980
PREP"ED ,AND APPROVED BY:
A A. VALENTINE
As istant City Attorney