Hallandale Beach CRA Investigation by Broward OIG

BROWARD OFFICE OF THE INSPECTOR GENERAL
J ohn W. Scott, Inspector General

One North University Drive, Suite 111 Plantation, Florida 33324 (954) 357-7873 Fax (954) 357-7857
www.browardig.org 954-357-TIPS
MEMORANDUM

To: Honorable J oy Cooper, Mayor, City of Hallandale Beach,
and Members, Hallandale City Commission

Renee Crichton, Hallandale Beach City Manager

From: J ohn W. Scott, Inspector General

Date: April 18, 2003

Subject: OIG Final Report Re: Gross Mismanagement of Public Funds by the City of
Hallandale Beach and the Hallandale Beach Community Redevelopment Agency,
Lauderdale Lakes, Ref. OIG 11-020

Attached please find the final report of the Broward Office of the Inspector General (OIG)
regarding the above-captioned matter. The OIG investigation found that officials of the City of
Hallandale Beach (City) and the Hallandale Beach Redevelopment Agency (CRA) have grossly
mismanaged public funds entrusted to the care of the CRA.

Specifically, the OIG investigation identified numerous instances of gross mismanagement that
stemmed from institutional deficiencies in the establishment, organization, and function of the
CRA. We found that between 2007 and 2012, the CRA made at over $2.1 million in
questionable expenditures, including $125,000 in inappropriate loans; $416,365 in the improper
use of bond proceeds; and $1,474,739 million in payments for socially beneficial programs and
$152,494 for civic promotions, both purposes which 2010 Florida Attorney General opinion
determined were prohibited by Florida law.

The report contains six recommendations. Accordingly, a status report regarding these
recommendations is being required by the OIG. The OIG requests receiving the status report on
or before J uly 16, 2013.

Attachment

cc: Honorable Kristin J acobs, Mayor, Broward County
and Members, Broward Board of County Commissioners
Bertha Henry, County Administrator
V. Lynn Whitfield, Hallandale Beach City Attorney
Individuals previously provided a Preliminary Report (under separate cover)

BROWARD OFFICE
OF THE INSPECTOR GENERAL

FINAL REPORT

===========================================================

OIG 11-020
APRIL 18, 2013

Gross Mismanagement of Public Funds by the City of Hallandale Beach
and the Hallandale Beach Community Redevelopment Agency


OIG 11-020
April 18, 2013

FINAL REPORT RE: GROSS MISMANAGEMENT OF PUBLIC FUNDS
BY THE CITY OF HALLANDALE BEACH AND THE HALLANDALE BEACH
COMMUNITY REDEVELOPMENT AGENCY

TABLE OF CONTENTS

Summary .............................................................................................................................................. 1
OIG Charter Authority ......................................................................................................................... 2
Background and Relevant Governing Authorities ............................................................................... 2
Individuals Covered in this Report ...................................................................................................... 4
Investigation ........................................................................................................................................ 6
Findings of Gross Mismanagement Related to the Structure and Function of the CRA ..................... 6
Specific Improper and Questionable CRA Expenditures .................................................................. 10
Other Scrutinized Activities .............................................................................................................. 20
Remedial Action by the Hallandale Beach Government ................................................................... 24
Interview Summaries ......................................................................................................................... 25
Dwayne Michael Good ................................................................................................................ 25
Mark Antonio ............................................................................................................................... 28
Dr. Alvin J ackson, J r. .................................................................................................................. 28
Patricia Ladolcetta ....................................................................................................................... 31
Renee Crichton ............................................................................................................................ 33
J oy Cooper ................................................................................................................................... 35
Anthony Sanders .......................................................................................................................... 38
Keith London ............................................................................................................................... 40
Alexander Lewy ........................................................................................................................... 43
William J ulian .............................................................................................................................. 44
Deborah Brown ............................................................................................................................ 47
Responses to the Preliminary Report and OIG Comment ................................................................. 49
Conclusion ......................................................................................................................................... 55


OIG 11-020
April 18, 2013
Page 1 of 56


SUMMARY

In J anuary 2012, the Broward Office of the Inspector General (OIG) began an investigation into
allegations that officials of the City of Hallandale Beach (City) had grossly mismanaged public funds
entrusted to the care of its Community Redevelopment Agency (CRA). The OIG investigation
substantiated the allegations and uncovered numerous deficiencies in the Citys administration of the
CRA.

Specifically, the OIG investigation identified numerous instances of gross mismanagement that
stemmed from institutional deficiencies in the establishment, organization, and function of the CRA,
such as the failure to establish a CRA trust fundplainly required by Florida lawuntil May 2012;
the failure to operate the CRA as a legal entity separate from that of the City, so that, in the opinion of
former CRA Executive Director Alvin J ackson, the CRA was treated like any other City department
and that the City had free reign to tap into CRA funds; the failure to timely generate detailed CRA
plans and adhere to them; and the failure to maintain a stable and empowered CRA staff to ensure
compliance with Florida law. We also identified multiple instances where City officials ignored
warnings from CRA staff of various deficiencies in the management of the CRA.

The OIG investigation determined that between 2007 and 2012, those officials caused the CRA to
make at least $2,168,598 million in questionable expenditures. Those expenditures included $125,000
in inappropriate loanswherein the Citys management waived standard conditions designed to
protect the CRA from unreasonable lossesand $416,365 in the improper use of bond proceeds. In
addition, those expenditures included $1,474,739 million in payments to non-profit entities for socially
beneficial programs and $152,494 to organizations and individuals for civic promotions such as
festivals and fireworks displays. The CRA failed to implement and maintain an adequate process for
the award of these funds, and has continued to use CRA funds for these purposes despite a 2010
Florida Attorney General opinion which determined that such expenditures were a prohibited use.

Our investigation also raised concerns about whether the CRA took any action to regularly monitor the
performance of recipients of CRA funds, or to verify whether the funds were actually used for
authorized purposes. In one instance, we found probable cause to believe that Dr. Deborah Brown, the
founder and director of the Palms Center for the Arts (PCA), engaged in criminal misconduct in the
handling of a $5,000 award the PCA received from the CRA.
1

1
The OIG has referred its findings regarding Dr. Browns possible misconduct to the Broward Sheriffs Office and the
Broward State Attorneys Office, who have opened an investigation.

OIG 11-020
April 18, 2013
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In 2011, the City and the CRA began to undertake remedial steps to improve the management and
effectiveness of the CRA. Nevertheless, the OIG discovered that as recently as November 2012, the
City was contemplating a funding plan that would include expending $5,347,000 of revenue bond
financing that was to be repaid by CRA funds on two parks located outside the CRAs boundaries.
The OIG promptly brought the issue to the Citys attention. The City Manager responded by
explaining that it had always intended to repay its pro-rata share of bond expenses, so that no issue of
gross mismanagement existed.
2
By then, however, $416,365 of CRA funds had already been
improperly expended on those parks and others outside the CRA area.

Among the many allegations the OIG received pertaining to the City, the OIG also received
allegations that the CRA purchased a property owned by the Higher Vision Ministries (HVM) for an
amount substantially more than its appraised value, in an exercise of favoritism toward HVMs pastor,
Commissioner Anthony Sanders. The investigation did not substantiate the allegations, although we
found that the CRA fomented an appearance of favoritism by failing to consider the purchase of the
property in a fully transparent manner.

OIG CHARTER AUTHORITY

Section 12.01 of the Charter of Broward County empowers the OIG to investigate misconduct and
gross mismanagement within the Charter Government of Broward County and all of its municipalities.
This authority extends to all elected and appointed officials, employees and all providers of goods and
services to the County and the municipalities. On his own initiative, or based on a signed complaint,
the Inspector General shall commence an investigation upon a finding of good cause. As part of any
investigation, the Inspector General shall have the power to subpoena witnesses, administer oaths,
require the production of documents and records, and audit any program, contract, and the operations
of any division of the County, its municipalities and any providers.

The OIG is also empowered to issue reports, including recommendations, and to require officials to
provide reports regarding the implementation of those recommendations.

BACKGROUND AND RELEVANT GOVERNING AUTHORITIES

The Administration of the City of Hallandale Beach

All legislative, regulatory and policy making powers of the City are vested in the City Commission.
All administrative powers of the City are vested in the City Manager, appointed by the City
Commission. The City Manager oversees all of the Citys various departments and divisions, and is
also responsible for ensuring the City Commissions direction is followed, for managing the day-to-
day operations of the City, and for developing the Citys financial structure and budget.

2
The OIG has accepted this representation from the City in good faith, although both Dr. J ackson and Patricia Ladolcetta,
the former City Finance Director, informed the OIG in late October 2012 that the City intended to solely use CRA funds to
repay the bonds.

OIG 11-020
April 18, 2013
Page 3 of 56
The Citys Finance Director works under the general guidance and direction of the City Manager. The
responsibilities of the Finance Director include overseeing the Citys routine accounting and finance
functions, directing day-to-day operations of the Finance Department, and serving as the custodian of
the Citys funds, including the year-end financial reports and any adjusting entries made to the books
and records of the City.

The Community Redevelopment Act

Chapter 163, Part III, Florida Statutes, also known as the Community Redevelopment Act of 1969
(Chapter 163) authorizes the creation of CRAs for the purposes of redevelopment of slums and
blighted areas that are injurious to the public health, safety, morals, and welfare of residents and for
which there is a shortage of housing affordable to residents of low or moderate income, including the
elderly. Chapter 163 provides requirements that address the establishment of such agencies, their
powers and limitations, funding, expenditure restrictions, and reporting and audit requirements.

Redevelopment Trust Funds and the Requirement for CRA Plans

CRAs may be funded through tax increment financing (TIF), whereby the CRA is to receive annually
95 percent of the taxes on the appreciated value of the properties within the CRA boundaries since
the effective date of the ordinance providing for the funding. Section 163.387(1)(a) states that
[f]unds allocated to and deposited into this fund shall be used by the agency to finance or refinance
any community redevelopment . No community redevelopment agency may receive or spend any
increment revenues pursuant to this section unless and until the governing body has, by ordinance,
created the trust fund and provided for the funding of the redevelopment trust fund until the time
certain set forth in the community redevelopment plan. (emphasis added) That fund is commonly
referred to as a Redevelopment Trust Fund (RTF).

Section 163.360(b) and 163.362 require CRAs to provide detailed CRA Plans, including the specific
identification of the projects that will be undertaken, the financing of those projects, and estimated
time frames for their completion. In addition, Section 163.387(6) requires that any expenditure from
the RTF be in accordance with that which is described in the applicable CRA Plan.

Limits on CRA Expenditures

Chapter 163 also requires that funds allocated to, and deposited in, the RTF must be used to finance or
refinance community redevelopment, which is defined at Section 163.340(9) as undertakings,
activities, or projects in a community redevelopment area for the elimination and prevention of the
development or spread of slums and blight; the reduction or prevention of crime; for the provision of
affordable housing; or the rehabilitation and revitalization of coastal resort and tourist areas that are
deteriorating and economically distressed. Section 163.387(6) enumerates some of the permissible
uses for the funds allocated to the RTF.


OIG 11-020
April 18, 2013
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The Composition and Administration of the City of Hallandale Beach CRA

The CRA was created by the City Commission via Resolution No. 96-15, adopted on September 17,
1996. As per Chapter 163, the CRA is governed by the CRA Board of Directors (CRA Board) which
is comprised of the members of the City Commission. The CRAs chief executive is the CRA
Executive Director. At times, the CRA has also employed or designated a City official to act as a
CRA Director, an executive position subordinate to the Executive Director.
3
From the time of the
creation of the CRA, through late August 2012, the City Manager has acted as the Executive Director
of the CRA. On August 22, 2012, Dr. Alvin J ackson became the first independent CRA Executive
Director and held that position until he was dismissed by the CRA Board in J anuary 2013. In J anuary
2013 the City Manager once again became the CRA Executive Director.

The first CRA plan was approved by Broward County in November 1996. Between the inception of
the CRA and December 31, 2012, Broward County has provided the CRA with approximately $36
million in TIF monies.

INDIVIDUALS COVERED IN THIS REPORT

Joy Cooper

Ms. Cooper is the City Mayor and has served in that position since 2005. As mayor, she is also the
Chairperson of the CRA Board. Prior to being elected Mayor, Ms. Cooper served as a City Commissioner
since 1999.
4

Alexander Lewy

Mr. Lewy is the City Vice-Mayor and has been a City Commissioner since November 2010. As the
Vice-Mayor, he is also the Vice-Chairperson of the CRA Board.

William Julian

Mr. J ulian is a City Commissioner who was re-elected to that position in November 2012, after having
previously served as a Commissioner from 2001 to November 2010. As a Commissioner, Mr. J ulian
is also a CRA Director.

3
Due to the various positions which the CRA has elected to term as director, for clarity, this report will refer to the
individuals on the CRA Board as members rather than the statutory designation of director.
4
In order to ease confusion, this report will refer to City government officials by their City titles, since the OIG has
determined that CRA Board meetings and decisions frequently occurred as an indistinguishable part of City Commission
meetings.

OIG 11-020
April 18, 2013
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Anthony Sanders

Mr. Sanders is a City Commissioner and has served since being appointed to the position in August
2008. As a Commissioner, he is also a CRA Director. Commissioner Sanders is also the pastor for
HVM and the former corporate president of Eagles Wings Development Center, Inc.

Dorothy Ross

Ms. Ross is a former City Commissioner who served in that position from 1995 until November 2012.
As a Commissioner, she was also a CRA Director. During her tenure as a Commissioner, she also
served as Mayor and Vice-Mayor.

Keith London

Mr. London is a former City Commissioner who served in that position from November 2006 until
November 2012. As a Commissioner, he was also a CRA Director.

Dr. Alvin Jackson, Jr.

Dr. J ackson was hired as the CRA Director on J anuary 15, 2011, and was promoted to Executive
Director on August 22, 2012. Dr. J ackson was terminated without cause on J anuary 18, 2013.

Renee Crichton

Ms. Crichton is the City Manager and has served in that position since J une 2012. In J anuary 2013 she
became the CRA Executive Director, following the dismissal of Dr. J ackson. Ms. Crichton was
previously employed as Assistant City Manager from November 2000 through February 2002.

Mark Antonio

Mr. Antonio was employed by the City for over 25 years and served as the City Manager from J une
2010 until his retirement in J une 2012. As City Manager, he was also the CRA Executive Director.
Prior to being the City Manager, Mr. Antonio held the positions of Comptroller, Assistant Finance
Director and Assistant City Manager.

Dwayne Michael Good

Mr. Good was employed by the City for over 25 years and served as the City Manager from 2002,
until his dismissal by the City Commission in J une 2010. As City Manager, he was also the CRA
Executive Director. Prior to being the City Manager, Mr. Good held the positions of Operations Manager,
Assistant Director of Public Works, and Assistant City Manager.


OIG 11-020
April 18, 2013
Page 6 of 56
Patricia Ladolcetta

Ms. Ladolcetta was the Citys Finance Director until J anuary 2013, when she retired. She had been
employed by the City for over 21 years. She reported directly to the City Manager and was
responsible for the operation of the Finance Department.

Dr. Deborah Brown

Dr. Brown has been the Director of PCA since 2009, and Director for the Zamar School of Performing
Arts, Inc. since 1997. She has also been a Broward County teacher for over 30 years.

INVESTIGATION

This investigation was predicated on information alleging that officials of the City and the CRA
grossly mismanaged public funds entrusted to the care of the CRA. The OIG investigation
substantiated the information. We also found probable cause to believe that a recipient of CRA funds
had engaged in criminal misconduct in connection with the use of those funds. The OIG investigation
did not substantiate allegations that officials engaged in misconduct or gross mismanagement in
connection with the CRAs purchase of the HVM property.

The investigation involved the review and analysis by OIG staff of substantial materials including
CRA plans and annual reports; City and CRA financial records and budget documents; City and CRA
materials relating to recipients of grants and donations; CRA loan program administrative policies,
files, and spreadsheets; City and CRA property purchase files; City Commission documents including
meetings minutes, correspondence and memoranda; CRA Board meeting minutes and digital
recordings; bank records, bank statements, and other external financial materials; external audit
reports; and relevant Florida and municipal laws and governing authorities. OIG Special Agents also
conducted interviews of witnesses including current and former City Commissioners, current and
former City and CRA personnel; Broward County officials; and owners and employees of non-profits.

Findings of Gross Mismanagement Related to the Structure and Function of the CRA

The OIG investigation found numerous instances of gross mismanagement that stemmed from
institutional deficiencies in the establishment, organization, and function of the CRA.

1. Failure to Establish the CRA Redevelopment Trust Fund

Although Chapter 163 clearly requires that an RTF be established before a CRA spends any
funds, the City failed to establish one until May 2012, after receiving OIG inquiries as a part of
this investigation. Originally, the City had enacted Ordinance Number 96-25, effective
December 27, 1996, ostensibly to establish the RTF. Yet, despite the statutory requirement
that RTF monies be allocated to and deposited into the Trust Fund, for almost 16 years the

OIG 11-020
April 18, 2013
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CRA merely utilized the Citys pooled-cash operating bank account for these purposes,
continuously co-mingling CRA funds with City funds in the Citys bank account.

In May 2012, the CRA opened a separate CRA bank account with an initial balance of $2.5
million. Dr. J ackson stated that he was not confident that the opening balance of the RTF
accurately reflected the amount of funds due to the CRA. He stated that he had been forced to
rely on City staff to provide him with finance and accounting information and was not able to
verify the accuracy of the information provided. There is no evidence that City staff ever
provided him with any accounting showing how it arrived at the $2.5 million figure.

2. Failure to Operate the CRA as a Separate Legal Entity

Prior to 2012, the City and the CRA did not function as separate legal entities. Instead, for
years the City operated the CRA as if it was merely another department of City government,
and CRA Board meetings and decisions frequently occurred as an indistinguishable part of
City Commission meetings. Indeed, in March 2008 Mr. Good caused the City to formally
embrace that notion by merging the CRA with the Citys Development Services Department
(DSD), in effect making the CRA a section within the DSD. Numerous current and former
City officials and employees have confirmed to the OIG that during that time period, CRA
operations had been coalesced with the Citys general services. Commissioner Sanders
observed that the CRA was operated as a side department of the DSD, so that the DSD
Director would have to wear two hats. This failure was more than a mere technical
deficiency. The investigation detailed below identifies multiple instances in which the Citys
control of the CRA resulted in an improper exercise of the powers granted in Chapter 163.

It was not until spring of 2012 that the CRA Board finally promulgated bylaws, policies, and
procedures for the operation of the CRA, obtained a separate taxpayer identification number,
and applied to the Internal Revenue Service for 501(C)(3) non-profit status. In August of
2012, the CRA Board finally provided for independent leadership of the CRA by promoting
Dr. J ackson to the position of Executive Director. All of these measures reinforce the
independent nature of the CRA, and comparatively lessen its vulnerability to improper access
and abuse. Unfortunately, the City has since partially receded from this course of action. In
J anuary 2013 the City Manager once again became the Executive Director of the CRA.

3. Failure to Generate Detailed CRA Plans

Florida law requires that the CRA maintain a plan which specifically identifies publicly funded
capital projects to be undertaken within the CRA area. This requirement is especially
important when one considers that a CRA receives tax proceeds from other governmental
entities for a limited and specific purpose.
5
However, the CRA only updated plans in 2001 and

5
These include Broward County, hospital and other special taxing districts.

OIG 11-020
April 18, 2013
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2004, neither of which covered capital projects for 2010-2012.
6
The plans that did exist were
very general and did not contain the specifics required in Chapter 163. The OIG further
determined that several officials were unaware of the existence of the 2004 Plan and assumed,
as late as 2011, the CRA was operating under the 2001 Plan until an updated plan was adopted
in 2012. Even Dr. J ackson stated his belief that the last time the CRA Plan was updated was in
2001, thus furthering the impression that CRA management did not know it had a 2004 Plan,
did not abide by it, and continued to operate as if the 2001 Plan was still in effect. In fact, the
City was unable to locate any copies of the 2004 plan in response to OIG requests.
7

In a J une
27, 2012, memorandum to the Mayor and the City Commission, Ms. Crichton stated that staff
was unable to locate CRA Long Range Plans from 2005-2011. It seems that the City
Commission and/or CRA Board adopted a CRA Long Range Plan in 2001 and 2004, with no
subsequent plans formally adopted until 2012. (Exhibit 1)

Those CRA plans that did exist, failed to address a significant category of spending. Between
2007 and April 2012, the CRA provided at least $1,474,739 to non-profit organizations and
individuals for the purpose of providing socially beneficial programs. In addition, during that
time period, the CRA provided at least $152,494 to organizations and individuals for the civic
promotions such as festivals and fireworks displays.
8
However, both the 2001 CRA Plan and
the 2004 CRA Plan are silent regarding the use of funds for non-profit social programs and
civic promotion, save for one reference in the 2004 CRA Plan to an afterschool tutorial
program at the Hepburn Center, to be funded in the amount of $70,000 per year.

4. Failure to Maintain a Stable and Empowered CRA Staff and Ensure Compliance with
Chapter 163

During the six-year time period covered by this investigation, the CRA management structure
and staff changed often, and was plagued by unusually high turnover. One constant, however,
was Mr. Good, who was the CRA Executive Director until he was terminated from his position
in J une 2010. In December 2006, the City hired Dr. Kendrick Pierre as the CRA Director to
assist Mr. Good in managing CRA operations. Dr. Pierre told the OIG that Mr. Good made all
important decisions, so that he had no free hand to implement anything for the CRA, and his
input was rarely asked for or considered. Many other current and former CRA employees
echoed Dr. Pierres assessment of Mr. Goods dominant managerial style.

More troubling is evidence that Mr. Good and other senior officials lacked a basic
understanding of Chapter 163 and did not require compliance with it. For example, Bobby
Robinson, a former CRA Manager, stated that he was thrown into the jobhe was
previously an analyst with the Citys DSDwithout adequate training, so that he had to teach

6
The CRAs 2001 and 2004 Plans included an objective to update the plan every five years.
7
After Dr. J acksons statement, the OIG requested a copy of the 2004 CRA Plan from the City. However, the City could
not produce one, so the OIG had to obtain a copy from the County.
8
As discussed below, the Attorney General has determined that this category of spending is not an allowable use of CRA
funds.

OIG 11-020
April 18, 2013
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himself about CRAs by obtaining information from officials at other CRAs in the area.
Based on what he learned, he concluded that the CRA was doing a number of things wrong,
including inappropriately expending funds. When Mr. Robinsonrepeatedlyreported errors
to Richard Cannone, the DSD Director whom Mr. Good had informally assigned to assume
day-to-day oversight of CRA operations, Mr. Cannone would just shrug his shoulders and say
what am I going to do? He stated that Mr. Cannone knew that the charitable donations Mr.
Good approved were inappropriate, did not align with the CRA Plan, and did not benefit the
CRA, but brushed him off by explaining that it was always done this way. Mr. Robinson
further stated that he raised the same issues directly with Mr. Good, who ignored them.

Frustration over the lack of communication between CRA staff and management was
expressed by a number of other current and former employees, one of whom informed the OIG
that she attended a CRA-related training conference, during which she learned the CRA was
not structured or managed correctly, and what they were doing at the City was not in
compliance with the statutes. For instance, she noted, the City should not be giving
donations to [non-profits] and that the CRA should be a separate entity, with its own by-laws.
She too raised her concerns to Mr. Cannone, to no avail. When asked by the OIG whether
payments to non-profits for social benefit programs were permitted by Chapter 163, Mr.
Cannone responded, Technically, no.

The OIG investigation determined that the high turnover of CRA personnel, both at the
supervisory and staff levels, was an important factor in the mismanagement of the agency. The
constant turnover undermined the development of any in-house expertise in the laws and
regulations governing CRAs, blocked the growth of institutional knowledge and memory,
hindered the formation, implementation, and fine-tuning of policies and worsened the already
dismal communication problem in the agencyall of which increased the number of poor
decisions and mistakes and impeded the mission of the CRA.

In addition to the high turnover, the management of the CRA was hurt by a lack of CRA-
related training for its supervisory staff and Board members. Mr. Good initially told the OIG
that he had not received any CRA-related training, but later qualified that statement by
recalling that he possibly attended one or two CRA training sessions, although he could not
recall anything about the training. Mr. Goods successor as CRA Executive Director, Mr.
Antonio, stated that he never received any CRA-related training. Most of the other current and
former staff members told the OIG they did not receive adequate training. Similarly, with the
exception of Mayor Cooper and Commissioner Sanders, none of the CRA Board members that
the OIG interviewed recalled receiving CRA-related training.

Dr. J ackson stated that when he was hired in J anuary 2011, Mr. Antonio admitted to him that
the condition of the CRA was not good. Dr. J ackson told the OIG that it did not take him
long to realize the CRA had been grossly negligent in its operations. He identified his

OIG 11-020
April 18, 2013
Page 10 of 56
concerns in a February 28, 2011 memorandum to Mr. Antonio (Exhibit 2),
9
and began bringing
the problems he found to the attention of the CRA Board and other City officials so the
appropriate changes could be made. Dr. J ackson met resistance to his recommended changes
from many City officials and CRA Board members from the start; although he was able to
implement some changes, many of his recommended changes were not implemented or were
significantly modified.
10

Specific Improper and Questionable CRA Expenditures

The OIG investigation also identified additional specific improper and questionable CRA
expenditures, many of which may have been made in violation of Florida law.

1. Multiple Failures in the Charitable Distribution of CRA Funds

Until October 2011, the CRA gave funds to non-profits and other entities through a process
that the CRA referred to as charitable donations. In return for the charitable donations, the
recipients were expected to provide some type of service to the community, based upon the
representations they made to the CRA Board, the CRA Executive Director, and CRA staff.
The OIG investigation identified a number of flaws in the CRAs charitable donation process.

a. The CRA did not use a transparent process nor standardized criteria to award
funds

J ennifer Frastai, the City Manager Administrator who was responsible for overseeing
the donation process, informed the OIG that throughout Mr. Goods tenure as City
Manager, and for most of Mr. Antonios tenure, all donation requests from non-profits
for CRA funds were handled by the City Managers office, which did not consider any
standardized criteria when evaluating the requests. Numerous officials, including
Commissioner J ulian, confirmed that requests were simply listed on a spreadsheet,
discussed at an annual budget meeting, and then voted on by the CRA Board.
Commissioner J ulian also stated that the City did not publicly advertise or notice the
charitable donation process. Mr. Antonio acknowledged that the process had no
structure to it.

Additionally, the approval of the charitable donations by the CRA Board was not
always publicly documented because Mr. Good had the authority to award donations
from a miscellaneous fund over which he had near total control. Mr. Good
acknowledged that he had the authority to make recommendations to the CRA Board
regarding which non-profits should receive charitable donations, but that they, not he,
would decide which would actually receive donations, and how much each would

9
The handwriting which appears on the memorandum is that of Mr. Antonio, Assistant City Manager Nydia Rafols, and
Dr. J ackson.
10
Below, this report separately addresses the remedial actions undertaken by the City and the CRA.

OIG 11-020
April 18, 2013
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receive. However, he admitted that he also had the authority to approve the
expenditure of CRA funds to non-profits through the CRA Miscellaneous Account in
amounts of up to $50,000 if he desired, without having to obtain the approval of the
CRA Board. Commissioner J ulian stated that before October 2011, the City made no
attempt to verify documentation provided by non-profits before funding them. He
added that if a recommendation for funding was made by the City Manager, he took it
for granted that it had been properly vetted.

b. The CRA did nothing to verify the performance of the recipients of charitable
donations

During the course of the OIG investigation, it also became evident that the CRA did
nothing to verify that the non-profit recipients of charitable donations used the money
for the intended purposes. Through interviews with Ms. Frastai and others, the OIG
learned there was no mechanism in place to verify how the non-profitssuch as
PCAand other recipients actually spent the money they received. Mr. Antonio
admitted that prior to October 2011 there was never any attempt to verify how the
monies were expended or whether the promised services were provided. Mr. Antonio
added that the CRA never conducted any audits of the non-profits; never conducted any
site visits; and never required that the non-profits provide any reports or written
verification regarding the use of CRA funds.

Many current and former City officials also stated that Mr. Good made the awards
without any type of written agreement specifying the public purpose of the donations,
or providing any way that the CRA could monitor the use of the funds. Commissioner
London stated that he was unaware of the CRA conducting any type of verification; it
could never tell him how many actual jobs had been created by the recipients; and he
could not obtain documentation or other proof that the recipients provided the services
they claimed they were going to provide. Commissioner London further stated that
the City Commissioners and the CRA Board looked at the CRA fund as one big pile of
money and they didnt care how or where the money went. As a result, he concluded,
the City had no transparency, no continuity and no processes to ensure that the non-
profits were doing what the CRA paid them to do. In contrast, Commissioner Sanders
stated that the CRA should agree to compensate the non-profits for providing any
documentation verifying the proper expenditure of CRA funds. Commissioner Sanders
opined that if the CRA did not provide additional funds to the non-profits to validate
deliverables, then it could not expect to be provided with accurate data. Mayor Cooper
stated that she was not concerned with the CRA administrations lack of verification
because the CRA Board members observed the work of the non-profits when they went
out in the community.

Given the lack of documentation obtained and retained by the CRA in this regard, the
OIG was unable to reliably assess the amount of possible losses suffered by the CRA as

OIG 11-020
April 18, 2013
Page 12 of 56
a result of misapplication of funding by non-profits. Thus, as a part of this
investigation, we conducted a review of the expenditure of CRA funds by seven non-
profits for the period from 2007 through April 11, 2012, as detailed in OIG Table 1:

OIG Table 1
Actual Disbursements from CRA Donations Account
11

Fiscal Year 2007 2008 2009 2010 2011 2012* Totals
Recipients
Reviewed
75,000 0 75,000 40,500 45,000 126,074 361,574
Other
Recipients
292,490 196,495 204,200 180,604 234,259 5,117 1,113,165
Totals 367,490 196,495 279,200 221,104 279,259 131,191 1,474,739

The identity of the non-profits reviewed by the OIG and the manner in which the CRA
funds were distributed are detailed in OIG Table 2:

OIG Table 2
Fiscal Year 2007 2008 2009 2010 2011 2012* Totals
Eagles Wings 75,000 50,000 15,000 20,000 160,000
Greater Mr. Everett 38,750 38,750
Lampkins/Dizzy Fingers 20,000 20,000
Palms Center for the Arts 32,500 25,000 36,167 93,667
PCAC 11,157 11,157
Phileo 8,000 5,000 ** 13,000
Zamar 25,000 25,000
Totals 75,000 0 75,000 40,500 45,000 126,074 361,574
* Through 4/11/2012
** Phileo received CRA funding approval but as of 4/12/12 they had not received any payments as their summer
programfor FY 11/12 had not yet started.

As a part of the review, the OIG requested that the seven non-profits in the sample
provide documents and records that evidenced the manner in which they spent the CRA
funds they received. The documentation they provided in response included bank
records; program descriptions; sign-in sheets and other evidence of attendance by
program participants; and invoices and receipts relating to purchases.
12
Although there
was very little documented evidence of the results achieved by the non-profits,
13
with

11
In fiscal year 2011-12, the account was renamed Community Partnership Grants.
12
Lampkins, also known as Dizzy Fingers, a non-profit that received $20,000 from the CRA in 2012. The OIG is
separately investigating Lampkins use of the CRA funds.
13
Eagles Wings and Greater Mt. Everett were able to provide documentation of results from the CRA funded programs.
However, aside from Palms Community Action Coalition, Inc., which has only recently begun its work, none of the other
non-profits were able to provide any evidence of the results of their endeavors. In fact, Phileos Chairman of the Board of

OIG 11-020
April 18, 2013
Page 13 of 56
the exception of the PCA and Lampkins Creative Arts 4 All, Inc. (Lampkins), we could
not determine that the funds were misused.

By contrast, through fiscal year 2011, the CRA never made any such attempt to audit or
otherwise verify or monitor the use of its funds by non-profits. Beginning with fiscal
year 2012, which began on October 1, 2011, the CRA no longer made charitable
donations in lump sums on an annual basis. Instead, the CRA began distributing those
funds on a quarterly basis, and in connection with those distributions required that non-
profits submit quarterly progress reports which would presumably reflect the manner
in which funds were expended. (See sample Quarterly Progress Report, attached as
Exhibit 3). However, even a cursory review of the report form reveals that it does not
require the recipients to provide any back-up documentation which might validate that
the funds were spent appropriately.

c. CRA Funding of Non-Profits and Civic Displays were Beyond the Scope of
Chapter 163

As noted above, Chapter 163 describes numerous permissible uses of RTF monies, all
of which generally relate to the elimination, prevention, and spread of slums and
blight. In 2010, the Florida Attorney General confirmed in a formal opinion that any
CRA expenditures must be connected to brick and mortar capital improvements
within a CRAs boundaries. (AGO 2010-40, attached as Exhibit 4) The AGO
specifically states that grants to entities which promote tourism and economic
development, as well as to non profits providing socially beneficial programs, would
appear outside the scope of the community redevelopment act.
14

The OIG investigation determined that between 2007 and 2012, the CRA made
expenditures of at least $1,474,739 in payments to non-profit entities for socially
beneficial programs that appear to have been outside the scope of Chapter 163. The
programs purported to provide a wide spectrum of services, ranging from food
preparation, athletic activities, music education, and training in the arts, through
employment training and job placement programs. In addition, the CRA paid at least
$152,494 during that same time period to organizations and individuals for civic
promotions such as festivals and fireworks displays that may have been outside the
scope of Chapter 163. The OIG investigation has not focused upon the relative merits
of such programs and promotions, although we have discussed above the CRAs
failure to exercise due diligence in determining whether its funds were actually
expended in connection with such purposes. Rather, we question the expenditures
simply because they appear to be beyond the ambit of Chapter 163.

Directors told the OIG that he considered the General Education Development program funded by the CRA to be a failure.
While not all programs will be successful, the OIG is merely pointing out that the CRA had no mechanism for routinely
obtaining that information.
14
Mayor Cooper informed the OIG that she believed AGO 2010-40 authorized such expenditures.

OIG 11-020
April 18, 2013
Page 14 of 56
It further appears that some of the civic promotions paid for with CRA funds took
place outside the CRA boundaries, a type of expenditure prohibited by Chapter 163.
Dr. J ackson stated that he thought the CRA Board and staff did not possess a clear
understanding of what funding purposes were permissible under Chapter 163. That
problem, he reiterated, was magnified by the fact that City departments had access to
the CRA accounts and were able to charge costs to the CRA if budgeted funds were
available, regardless of whether the cost was applicable to the CRA. Dr. J ackson
stated that he believed it was the Citys practice to charge the CRA for some citywide
events. He offered the CRAs payment for Fourth of J uly fireworks as an example:
since the fireworks were for the entire City, including the CRA, they would be charged
to the CRA. He concluded that his bottom line observation was that Mr. Good
customarily used CRA money to supplement the Citys general fund. Commissioner
London also stated that he was aware of the City authorizing the expenditure of CRA
funds outside of the CRA boundaries. He believed this occurred because the City
Commission ceded authority to the City Manager to designate what funds to use to pay
for City department expenses and to what accounts these expenses should be charged,
which resulted in City expenses being charged to accounts which were funded with
CRA money. Mr. Good also recognized that it was not appropriate for the CRA to
fund programs or events if they were outside the CRA boundaries.

2. The CRA Loan Programs were Grossly Mismanaged

The CRA offered a number of loans for specified purposes through programs which were
established from time to time by the CRA Board.
15
The investigation found that the
management of the CRAs loan programs resulted in substantial financial losses, along with
creating the appearance of favoritism and improprieties. The areas of mismanagement of the
program included granting waivers to particular borrowers that violated the terms and
conditions the CRA had put in place concerning collateralization and other mechanisms to
secure the loans; failure to acquire and utilize an adequate system to account for routine loan
transactions and budget calculations; and the creation of new loan programs to accommodate
loans to particular borrowers.

a. The loan to Digital Outernet, Inc. improperly waived BIP requirements

Waivers of the terms and conditions of CRA loan programs were granted by the CRA
Board for particular borrowers, leaving the CRA without the security and recourse
which the loan program terms required, resulting in substantial losses to the CRA. In

15
Among the programs which had been established prior to the period covered in this investigation were the Neighborhood
Improvement Program (including Storm Shutter Assistance loans, Paint Voucher loans and others), the Commercial Loan
Program (including Commercial Code Compliance loans, Foster Road Code Compliance loans and the Commercial Faade
Program loans), the Business Incentive Loan Program (BIP) and the First Time Homebuyer/Affordable Housing Program.
The CRA Board established the Small Business Retention and Expansion Program (SBREP) and modified the BIP during
the time period covered by this investigation.

OIG 11-020
April 18, 2013
Page 15 of 56
one such instance, a Business Incentive Loan Program (BIP) loan to Digital Outernet,
Inc. (DOI) for $125,000 was approved in March 2009, despite the fact that DOI was a
start-up venture, rented its business location, and had no real estate to pledge as
collateral, in contradiction to BIP requirements for the loan.
16
The loan was made
ostensibly to assist DOI in creating a high-tech audiovisual marketing and
communications system in establishments around the City. When the initial
disbursement check of $75,000 was given to DOI officer J ohn Hardwick, a barber by
profession, in August 2009, DOI President Steve Fecske was not present and did not
sign the promissory note for the loan. Mr. Fecske never subsequently signed the note
and Mr. Hardwick is now deceased.

The CRAs initial loan disbursement of $75,000 represented 78% of all revenue ever
deposited into DOIs bank account. Further, the DOI bank account was opened
approximately three months before the loan was funded with a deposit of $100. Within
30 days of receiving the loan proceeds, DOI had expended the entire amount of the
loan. The CRA ultimately acquired no collateral resulting from DOIs expenditure of
these funds. DOIs citywide digital communications and advertising network was
never significantly implemented. Additionally, Mr. Fecskes active involvement in the
DOI business venture appeared to rapidly diminish after DOIs receipt of the loan
proceeds, until he ultimately ceased to a have any material involvement at all.

DOI made only one loan repayment of $2,284, which was made nearly a year after the
loan was funded. In J uly 2012, after inquiries and investigation by the OIG concerning
this loan, the CRA wrote off the entire unpaid loan balance of $72,716, along with all
accrued unpaid interest. No collateral of any kind was recovered.

Mr. Good advised the OIG that his recommendation to the CRA Board was for
approval of the DOI loan and waiver of the BIP requirement that DOI own its business
location in the CRA. Mr. Good further advised, concerning loan closing procedures
and loan funds disbursements, that he did not create any particular system; rather, he
assumed that the City attorney and CRA staff had developed an appropriate system.
Mr. Good also stated that he was previously unaware that funds had been disbursed to
Mr. Hardwick even though the CRA neglected to obtain Mr. Fecskes signature on the
promissory note. Concerning the CRAs ultimate loss of approximately $75,000 in
principal and interest, Commissioner J ulian observed that sometimes the City will take
a loss on a gamble.

16
The BIP required that the borrower must own its business locationwithin the CRA boundariesand pledge the real
property as collateral for the loan.

OIG 11-020
April 18, 2013
Page 16 of 56
b. The loan to the South Florida Sun Times did not meet existing CRA criteria

New CRA loan programs were created to accommodate particular borrowers. For
example, South Florida Digest, Inc., doing business as the South Florida Sun Times
(Sun Times) newspaper, received a loan for $50,000 under the Small Business
Retention and Expansion Program (SBREP) in J une 2009. The SBREP did not exist
prior to the Sun Times loan request; Mr. Good directed the creation of the SBREP on
December 10, 2008 and simultaneously approved, within the same memorandum, the
loan to the Sun Times under the planned new loan program.
17
The terms and
conditions of the Sun Times loan did not meet the criteria for any previously existing
CRA loan programs, particularly regarding the $25,000 loan forgiveness feature, which
in effect made the $50,000 loan a $25,000 loan with a $25,000 grant.

Commissioner J ulian stated that he had originally recommended to the Sun Times that
it apply for a CRA loan to give it a boost over a bad season. Thereafter, in a letter
dated December 5, 2008, the Sun Times cited an ongoing financial crisis as its basis for
requesting financial assistance from the CRA. The CRA Board cited the financial crisis
as the basis for approving the loan with the 50% forgiveness feature, which Mayor
Cooper and Mr. Good repeatedly called a grant.
18
However, the CRAs Sun Times
loan file included documentation which disclosed that in 2008, the two owners of the
Sun Times paid themselves a total of $469,000 in salaries.
19
In that same year, the Sun
Times corporate tax return reported that the business effectively broke even ($9,084
loss for tax purposes on total revenue of $1,354,245) after paying the owners salaries
as noted above. Mr. Good stated that he initiated the process to create the SBREP and
recommended approval of the loan after discussing the Sun Times financial situation
with the newspapers owners and editor. He further stated that at the time, he was
unaware of the salaries the owners paid to themselves in 2008. Mr. Good stated that if
he had known their salaries, he would never have recommended the loan.

c. The CRA did not properly record loan disbursements and payments

From its inception, the CRA relied upon the Citys Finance Department personnel and
computer software for the performance of its routine accounting functions. In response
to investigative inquiries, Ms. Ladolcetta admitted that the Citys primary accounting
software system was incapable of properly accounting for long-term loans. As a
workaround, the City began tracking individual loan balances and invoicing data in

17
CRA Administrative Policy 2027.006, which actually created the SBREP, was not approved by the CRA Board until
February 11, 2009, two months after Mr. Good directed that staff is to process a check in the amount of $50,000 for the
South Florida Sun Times.
18
The Sun Times routinely permitted Mayor Cooper to publish a column in the newspaper. Commissioner J ulian was also
allowed to occasionally publish a column in the newspaper pertaining to area history.
19
The OIG was unable to determine if this documentation was obtained by the City at the time of the loans approval, or at
a later date.

OIG 11-020
April 18, 2013
Page 17 of 56
subsidiary records for each borrower. However, this separate system did not interface
with the primary accounts. Consequently, Ms. Ladolcetta advised that to show that
loan transactions had occurred within the accounting system, they were recorded as
follows: disbursements were recorded as expenses, even though the disbursements
were not actually expenses, and principal repayments were recorded as revenue despite
not actually being revenue. This makeshift system resulted in the affected CRA
accounts showing inaccurate balances in the primary accounting system. Ms.
Ladolcetta stated that a significant adjusting entry was required at the end of each fiscal
year to true up the accounts in the financial statements.
20

In the summer of 2012, the OIG investigation revealed multiple inaccuracies in the
CRAs accounting, and Special Agents began to question City officials regarding their
loan accounting practices. At the August 22, 2012 CRA Budget Workshop Special
Meeting, the lack of accurate information resulted in significant last minute adjustments
to the CRAs pre-planned budget allocations. Dr. J ackson was forced to revise the
proposed CRA budget for fiscal year 2013 by reducing budgeted revenue by $550,000.
He informed the OIG that he had been notified by Ms. Ladolcetta of the revenue
reduction adjustment only minutes before the meeting began. Due to the deficiencies in
the system for accounting for long-term loans receivable, the CRA budget had
inaccurately depicted loan repayments in the amount of $550,000 as revenue, instead of
properly recording them as reductions of loans receivable balances. Dr. J ackson also
stated that the CRA staff had expended great effort and time in allocating the budgeted
revenue according to established priorities and that the last minute reduction left him
with no time to consider the ramifications to the overall budget, or to reallocate funds
according to any priorities. Instead, he stated, he was forced to make drastic cuts to a
program which had been cited as a priority by the CRA Board.

During the meeting, Ms. Ladolcetta provided an explanation to the CRA Board
concerning this unexpected adjustment, in which she cited the accounting system
deficiency noted above. Further, she stated that the City would be purchasing new
primary accounting software as part of its planned Enterprise Resource Planning
System (ERP) upgrade which would permit improved accounting for long-term
receivables such as the CRA loans. However, the OIGs review of documentation for
the procurement of the new ERP upgrade disclosed that no loan management module
was included in bids received by the City.

d. The payoff amount of the loan to Higher Vision Ministries was miscalculated

In J anuary 2002, the HVM non-profit received a $46,000 loan from the CRA under the
Commercial Code Compliance Loan Program, for the purpose of bringing its

20
The annual fiscal year-end adjusting entry would be calculated to determine the accurate balance of the balance sheet
account for the loans receivable and the affected income statement accounts.

OIG 11-020
April 18, 2013
Page 18 of 56
commercial property into compliance with the building code. The loan was
collateralized by a mortgage on the HVM property, and Commissioner Sanders signed
the promissory note in his capacity as President of HVM. $31,000 of the loan proceeds
were payable in full at 2% interest, and the remaining $15,000 of the proceeds were
interest free. The promissory note also contained a forgiveness provision, which stated
that if after five years all payment and ownership criteria were satisfied, $7,500 of the
$15,000 interest free portion of the loan would be forgiven.

The HVM property was purchased with CRA fundsbut erroneously titled in the name
of the Cityin February 2009. By then, HVM had repaid $25,068 of the loan. In
preparation for the sale, the CRA prepared a loan payoff calculation and mistakenly
informed Commissioner Sanders that HVM was credited forgiveness in the amount of
$15,000double the amount to which it was entitledso that the total loan payoff
amount required from HVM would be $9,368.

In 2012, three years after the loan was satisfied, it came to the Citys attention that the
loan payoff amount was incorrectly calculated, resulting in a loss of $7,500 to the CRA.
Mr. Antonio determined that the miscalculation was the result of an error by the CRA
staff, and decided not to pursue repayment. Nevertheless, HVM concluded that
although it was not legally obligated to make further repayment, that in fairness and in
the best interests of the community it would do so. Commissioner Sanders informed
the OIG that to that end, HVM arranged for a payment plan in J uly 2012 and has begun
repayment.

3. CRA Funds Were Improperly Used to Repay City Bonds

In September 2007, the City borrowed $24,615,000 via the Florida Municipal Loan Councils
(FMLC) issuance of Revenue Bonds Series 2007A (Bonds). The authorized purpose for usage
of the proceeds was explicitly stated by both the FMLC and the City to be financing the
acquisition, clearance and improvements of real property anywhere in the City for use as a
park. City correspondence and documentation unambiguously reflected that the Bonds would
be repaid by CRA funds. Specifically, an ordinance to accomplish this borrowing passed on
first reading on August 1, 2007 and on second reading on August 14, 2007. A related
resolution concerning additional grant funding for the parks land acquisition passed on April
16, 2008. In each of these meetings, the discussions included explicit assertions and
acknowledgements that the Bonds repayment would be funded by the CRA.

The City expended $17,888,902 from the Bonds proceeds in September 2007 to purchase
parcels of land adjacent to Bluesten Park, all within the CRA boundaries. Subsequently, the
City expended $416,365 of Bond proceeds for park projects outside the CRA boundaries,
21

including $252,139 for a City Marina project, after a unanimous vote of approval by the City

21
The CRA boundaries, at most, encompass only three-fourths of the City limits.

OIG 11-020
April 18, 2013
Page 19 of 56
Commissionnot as the CRA Boardon September 1, 2010. Other payments expended
outside the CRA boundaries included $66,266 for improvements to Scavo Park and South
Beach Park, $45,788 to Golden Isle Tennis Complex, as well as approximately $52,172 of pro
rata allocations of Bond issuance and land survey costs.

At an August 2012 Commission meeting, Ms. Crichton specifically discussed using the
remaining proceeds of the Bonds, in the amount of $5,347,000, for improvements to Scavo and
South Beach Park, but did not mention any cost to the City to fund a portion of the repayment
of the Bonds. In response to a question from a resident, Ms. Crichton reiterated that the Bond
proceeds could be used to pay for Scavo Park and South Beach Park, thereby reducing the
overall cost to the City of any new bond issuance. Although Ms. Crichton provided extensive
information concerning funding options for the Park Plan, as well as the cost to repay and
service new debt alternatives, she provided no information concerning funding for the
repayment cost or debt service cost of utilizing the remaining Bonds proceeds. On October 17,
2012, the City Commission passed a resolution which implicitly included the option of
expending the remaining available Bond proceeds for improvements to both Scavo Park and
South Beach Parks. Neither the documentation provided to the OIG by City staff, nor the
discussion conducted by Commissioners at the meeting included any consideration of altering
the existing repayment plan so that the City would pick up its fair share of payments for
improvements made outside CRA boundaries. As specified in the motions to approve the
Bonds, all repayments to date had been funded by the CRA, including repayments of the
portion of Bonds proceeds already expended outside the CRA boundaries. Further, all
published budget documents and other documentation, including City Commission meeting
minutes, reveal that as of October 2012, the City always contemplated that all future
repayments of the Bonds were to be funded by the CRA.

The lack of public discussion regarding the Citys assumption of such a significant financial
obligation raised concerns for the OIG. On October 30, 2012, Ms. Ladolcetta confirmed to the
OIG that the funding for future repayments of the Bonds was to come from the CRA. She also
admitted that she was unaware Scavo and South Beach Parks were outside the CRA
boundaries. On October 31, 2012 and November 1, 2012, Dr. J ackson also confirmed to the
OIG that all future repayments of the Bonds were scheduled to be funded by the CRA. He also
stated that he was unaware that any proceeds of the Bonds remained unexpended, or that the
City had plans to consider expending any such funds outside the CRA boundaries.

Accordingly, on November 5, 2012 the OIG informed the City Commission of its concerns.
(OIG letter to the Mayor and City Commission, attached as Exhibit 5). The following day, the
City responded by indicating that it had devised a Bond repayment plan whereby the City
would repay its pro-rata share of the Bonds expenditures, or approximately $8,780,619 in
principal and interest. (Ms. Crichtons November 6, 2012 letter to the OIG, attached as Exhibit
6). The OIG promptly acknowledged the Citys contemplation of remedial action, but
expressed concern that such an immense oversight had occurred in the first place. (OIGs
November 7, 2012 letter to Ms. Crichton, attached as Exhibit 7). On November 7, 2012, the

OIG 11-020
April 18, 2013
Page 20 of 56
City Commission held its regular meeting and again discussed the options for funding the
parks plan. Mayor Cooper opened the discussion of the agenda item with a proposal that the
Commission consider a funding mechanism whereby the remaining Bonds proceeds would be
used to fund the purchase of the Post Office property, which is within the CRA boundaries, at a
cost of $5.8 million. Although an eventual approval of this option would appear to negate any
requirement of the City to fund that portion of the Bonds repayments, this option does not
resolve the Citys liability to fund repayment of the $416,365 in CRA funds already expended
beyond the CRA boundaries.

Ms. Crichton subsequently informed the OIG that from the beginning of her tenure as City
Manager, she had understood that the City would be required to fund repayment of its pro-rata
share of Bonds proceeds expended outside the CRA boundaries. She also stated that she
believed that Commissioners were aware of this fact as well, although she acknowledged that
she was not aware of any discussion of it in Commission meetings, or any reference to it in
written materials. In addition, she stated that no City funding of the Bonds repayment had
occurred because the amount expended outside the CRA area as of that date would have
resulted in a negligible portion of the repayments. Ms. Crichton concluded that inasmuch as
the City Commission had not actually approved the option of expending the remaining
$5,347,000 of Bond proceeds outside the CRA boundaries, neither it, nor City staff, had acted
improperly or otherwise failed in their responsibilities.

Other Scrutinized Activities

The OIG also investigated additional allegations of gross mismanagement and misconduct.

1. There is Probable Cause to Believe that Dr. Brown Caused PCA to Misapply $5,000

In April 2009, PCA became a Florida non-profit which focused on preparing young adults for
employment in the music and recording industry. PCA is located in the former HVM property
and is operated by Dr. Brown and her brother, J osh Brown. Since FY 2010, PCA has received
a total amount of $93,667 in CRA funds.
In March 2010, Dr. Brown, on behalf of PCA, appeared before the CRA and requested $10,000
to assist in funding a field trip to Washington D.C. for Hallandale Beach students. After some
discussion, the CRA Board decided to match up to $5,000 if PCA could raise the same amount
in private donations. However, the OIG found no evidence that the City ever asked for proof
of the matching funds. Nevertheless, a check for $5,000 was issued to PCA and deposited into
one of its bank accounts on March 26, 2010. The field trip commenced on March 26, 2010 and
continued through April 3, 2010.

The OIGs review of bank records and other materials revealed that only $323 of the $5,000
was spent on the trip. Dr. Brown caused the remainder of the funds to be used for various
unrelated expenses including over $200 in cell phone costs; a $683 payment for a time share

OIG 11-020
April 18, 2013
Page 21 of 56
condominium she owns in the Westgate Resort in Orlando; a Dollar Rent-a-Car charge in the
amount of $258; a $2,000 cash withdrawal; and payroll payments to her brother and herself.
The OIG interviewed Dr. Brown, and she could not, or would not, explain why she spent the
money on goods and services unrelated to the field trip. However, when she was asked if she
disclosed to the CRA how she actually spent the money, she responded that she did not tell
them anything because in the end all the funds were used to benefit the children that PCA
served.

The OIG has concluded that the CRAs failure to attempt to routinely audit or monitor the use
of CRA funds by non-profits renders those funds vulnerable to abuse, and is thus a basis for
our overall finding of gross mismanagement. Dr. Browns use of the $5,000 is a stark example
of such abuse. Because there is probable cause to believe that Dr. Browns conduct constitutes
a crime, the OIG has referred its findings to the Broward Sheriffs Office and the Broward
State Attorneys Office.

2. The Ben Gamla Property was Purchased with City, Not CRA, Funds

In J uly 2011, the CRA Board approved the purchase of the Ben Gamla property, located at 416
N.E. 8th Avenue, Hallandale Beach, Florida, for $1.2 million. Thereafter, in November 2011,
the property was purchased, but with Citynot CRAfunds, and was titled in the name of the
City, not the CRA. During the August 2012 CRA meeting, Commissioner London asked why
the City paid for the property. Commissioner London pointed out that the CRA Board had
never rescinded its vote to purchase the property, and the City Commission never voted to
approve the Citys purchase of the property.

On or about September 18, 2012, the City engaged an external auditor to investigate who was
responsible for authorizing this transaction without the CRA or City Commission approval.
On September 24, 2012, the auditor completed her audit and found that because of apparent
poor communication among and between Mr. Antonio, Dr. J ackson, and Ms. Ladolcetta, a City
account was used to pay for the purchase rather than CRA funds. (See Report on Review and
Evaluation Funding Approval and Payment Process Property Acquisition, attached as Exhibit
8).

The concerns identified by the OIG were not addressed by the auditors report. First, as
discussed above, the OIGs overall investigation established that the CRA administration was
not granted any independent authority over CRA funds and accounts, up to and including being
completely ignorant to the CRAs actual balances.
22
Thus, as the auditors report and OIG
investigation made clear, the CRA administration would not have had the authority to correct
the error, nor the resources to determine the proper CRA account to fund the purchase.
Clearly, the admitted fungibility of City and CRA funds epitomizes the danger of the Citys

22
See the discussion on page 16 of the effect of inadequate City accounting software for CRA purposes and the resulting
last-minute adjustments of revenues and planned expenditures. See also the interview summaries of Dr. J ackson and Ms.
Ladolcetta.

OIG 11-020
April 18, 2013
Page 22 of 56
failure to properly identify and segregate the role and function of its CRA, so that taxpayer
funds are vulnerable to abuse.
23

Second, Dr. J ackson admitted that he recognized that the number on the wire transfer was not a
CRA account number, and he informed Mr. Antonio of that fact a week or so after the close of
the transaction. Nevertheless, no action was taken by City administration to correct the issue
until Commissioner London began to question the matter in August 2012, approximately ten
months later.

3. The Purchase Price of the HVM Property was Not Materially Inflated

In February 2009 the CRA purchased the HVM property for $235,000 as part of the CRAs
Foster Road gateway program, the purpose of which was to develop the area by acquiring
parcels of land too narrow for optimum development, along with some other contiguous real
estate. At the time of the purchase, Commissioner Sanders, the president of HVM, had
recently been elected to his position on the City Commission. In addition, he and his wife,
J essica Sanders, were officers of the non-profit Eagles Wings Development Center, Inc.
(Eagles Wings) which had been receiving annual CRA charitable donations (See OIG Table 2),
and which operated out of the HVM property.
24

As part of the investigation, the OIG reviewed the four appraisals obtained by the CRA in
advance of the purchase of the HVM property and interviewed three of the four appraisers.
The makers of the appraisals, their dates, and amounts of value are detailed in OIG Table 3:

OIG Table 3

APPRAISAL MAKER DATE VALUE
Miller Appraisal Group, Inc. J une 4, 2008 $230,000
Craig Butterfield August 21, 2008 $275,000
L.B. Slater and Company August 26, 2008 $147,000
RE Analysts-Commercial, LLC November 19, 2008 $200,000

In a February 13, 2009 memorandum to Mr. Good, Mr. Cannone described the methodology
used by the CRA to determine the purchase price. (Exhibit 9) He stated that after the initial
appraisal came in at $230,000, additional appraisals were ordered at the direction of the City
Commission. Those appraisals came in at $147,000 and $275,000. Based on the variation in
the appraisals, Mr. Cannone explained, the $147,000 appraisal was thrown out and a fourth

23
The Citys failure to segregate the CRA from the City also contributed to 43 properties being improperly deeded to the
City instead of the CRA. This error was addressed by the City Commission via an ordinance passed on August 15, 2012,
which authorized the transfer of the properties from the City to the CRA.
24
Ms. Sanders was also an HVM corporate officer. Neither she, nor Commissioner Sanders, had any personal financial
interest in the HVM property.

OIG 11-020
April 18, 2013
Page 23 of 56
appraisal was ordered.
25
Ultimately, the purchase price for the HVM Property was set at
$235,000 by averaging all but the lowest appraisal.
26

OIG Table 4 reflects that by averaging in the lowest appraisal, the purchase price would have
been reduced by $22,000, or less than 10%:

OIG Table 4

Given the limited disparity in sales priceseven before the subtraction of the 1% set-aside of
sales proceeds for the benefit of another non-profitthe OIG simply cannot conclude that the
CRA materially overpaid for the HVM property. Accordingly, allegations that the CRA
exercised favoritism toward Commissioner Sanders are unsubstantiated.
27

Although the investigation did not substantiate allegations of misconduct or gross
mismanagement, we found that the CRA fomented an appearance of favoritism by failing to
consider the purchase of the property in a fully transparent manner. The final decision to
purchase the property was voted on during a February 12, 2009, Special Commission Meeting;
however, the property purchase did not appear on the meeting agenda. In addition, the meeting

25
Mr. Good informed the OIG that Commissioner Sanders, who began negotiating on behalf of HVM before he was
elected to the City Commission, believed that the $147,000 appraisal was an anomaly and, in fairness, should not be
considered. Mr. Good stated that he agreed with Commissioner Sanders, and directed that a fourth appraisal be obtained.
26
In a memo dated February 13, 2009, Mr. Cannone makes reference to a requirement that HVM contribute 1%, or $2,350,
to a local non-profit organization as part of the sale. However, no such requirement was incorporated into the contract for
sale and Commissioner Sanders told the OIG he was not aware of the condition.
27
Commissioner Sanders recused himself from the CRA Board vote on the purchase of the property.
0
50,000
100,000
150,000
200,000
250,000
300,000
Appraisal 1 Appraisal 2 Appraisal 3 Appraisal 4 Average of
Four
Appraisals
Sale Price of $235,000

OIG 11-020
April 18, 2013
Page 24 of 56
was convened in a secondary meeting room and the meeting was not recorded. As regards the
purchase, the minutes state that:

City Manager Good noted the purchase of property at 501 N.W. 1
st
Avenue needed to
be further discussed. Commissioner Sanders stated he would recuse himself from any
vote and discussion given his relationship as President of Higher Vision Ministries,
Inc., which owns 501 N.W. 1
st
Avenue. Commissioner Sanders left the meeting.
[It was then noted that Commissioner Sanders filed a Form 8B regarding voting conflict
and it was filed with the city clerk.] City Manager Good discussed how purchase of the
property is part of a comprehensive redevelopment plan for the entrance to the Palms
neighborhood from North Dixie Highway. The amount negotiated for the property,
$235,000, was based on four property appraisals.
28

A motion was made by Commissioner J ulian to authorize the purchase of the property for an
amount not to exceed $235,000, and was carried three to one, with Commissioner London
casting the only no vote. The purchase closed on the same day.

Given the issues concerning the manner in which the sales price was calculated, the fact that
Commissioner Sanders was directly connected to the property through his position at HVM,
and the fact that a non-profit operated by his wife was also a recipient of CRA funding, the
CRA should have anticipated that suggestions of possible favoritismand thus an appearance
of improprietymight reasonably have been raised. Predictably, the decision to consider and
vote upon the purchase at a special meeting which was convened in a secondary meeting room,
and was not audio-recorded, only exacerbated, rather than alleviated, that appearance of
impropriety.

Remedial Action by the Hallandale Beach Government

Prior to and throughout the OIG investigation, the City and the CRA have taken a number of steps
designed to improve the processes of the CRA. Those steps include:

The CRA has now created and funded an RTF, contracted a CRA Attorney, instituted by-
laws, and established a 2012 CRA Plan.

The CRA hired an independent Finance Director and has decided to commission a separate
annual audit of CRA finances.

Although the CRA continues to give grants to non-profits despite the findings of the
Attorney General, it has instituted a process for committee review of grant applications and
a reporting requirement which would enhance accountability and improve oversight of the
non-profits.

28
Thereby inaccurately reflecting the decision to not consider the lowest appraisal.

OIG 11-020
April 18, 2013
Page 25 of 56
The City is in the process of transferring the titles of properties to the CRA which were
initially improperly titled to the City.

The City and CRA have convened two separate review committees to consider applications
from non-profits and other organizations and individuals seeking funding. Only the CRA
committee will be empowered to consider the use of CRA funds.

The City, after inquiry from the OIG, contacted its auditor and developed a plan for the City
to pay its pro-rata portion of the 2007 revenue bonds if the City proceeded with its plan to
spend those funds outside of the CRA boundaries.

The CRA, after inquiry from the OIG, corrected the fiscal year 2013 CRA budget revenue
projection by eliminating $550,000 from it.

INTERVIEW SUMMARIES

As part of the investigation, OIG Special Agents conducted numerous witness interviews. Significant
interviews are summarized below:

1. Interview of Dwayne Michael Good

Mr. Good stated that when he became the City Manager, he inherited by default the CRA
Executive Director position. He further stated that as CRA Executive Director his job
description was essentially the same as his job description as City Manager. Good stated that
he was aware of Chapter 163, but that he was never provided any training on CRA laws or
operations.
29
He stated that because the City Commissioners were also the CRA Board, he
followed the policies and ordinances of the City when managing the CRA. Mr. Good noted
that he had to provide an annual report to the City and County and he never heard anyone
complain that they were not in compliance. He further advised that the City and CRA were
also audited every year and he reiterated that he was never told they were out of compliance.
He was asked if the CRA had a written charter or bylaws. He responded, Im sure they do.

Mr. Good stated that the CRA had a plan and that it was evaluated and updated every year
during the budget process. When asked if the 2004 CRA Plan was provided in a hard copy
format, he stated that he could not recall. He stated that the financial statements, financial plan
allocations, and goals and objectives of the CRA were reported in an annual report. However,
after further discussion regarding the separate nature of a CRA plan, Mr. Good admitted that he
could not recall if the CRA plan was ever updated and distributed to the City or the County
after 2004. He also could not recall whether CRA charitable donations to non-profits were
contemplated in the 2004 CRA Plan, but that they would have been included in annual budget

29
Mr. Good later suggested that he may have attended one or two CRA-related training sessions, but he could not
remember any specifics regarding them.

OIG 11-020
April 18, 2013
Page 26 of 56
documents, which he characterized as the filler for the donations that were earmarked for the
non-profits in absence of the CRA plan. He added that the City had a long history of donating
money to organizations but was not sure if the funding came strictly from the CRA. Mr. Good
stated that he had the authority to make recommendations to the City Commission regarding
which non-profits should receive charitable donations, and then the Commissioners would
decide who actually received the donations, and in what amounts. He also stated that he had
authority to disburse CRA funds to non-profits in amounts of up to $50,000 through the CRA
Miscellaneous Account, without having to obtain CRA Board of Director approval.

Mr. Good stated that that at some point the City began to require the organizations who applied
for donations to provide a letter advising the City how they had spent the prior year donations
and how they planned on using any additional donations for the coming year. He further stated
that some of the more professional organizations would provide more detailed information but
some of the smaller less sophisticated ones would not provide anything at all. Mr. Good stated
that his staff would do personal follow-up to ensure that the donations were spent properly.
Furthermore, he stated, non-profits which desired repetitive funding were required to provide
documentation of their programs to the CRA, although he could not provide any specific
examples of such documentation.

Mr. Good stated that the CRA should not fund programs or events if they were outside the
CRA boundaries. He was then was asked if the CRA should have funded a fireworks event on
the beach, and he initially responded that he thought that was okay because it was a total
community event and that residents from the CRA could benefit from it even though it was
held outside of the CRA boundaries. However, he later stated that the event was improperly
funded because it was beyond CRA boundaries. Mr. Good addressed a series of additional
questionable CRA expenditures, and ultimately concluded that CRA funds could be expended
for any program that served a need of the City. Mr. Good was then asked if he had ever
requested and received a legal opinion on how CRA funds could be expended. He responded,
Im sure I did, but added that he did not request a legal opinion on whether the CRA should
be established as a separate legal entity.

Mr. Good stated that the City charged the CRA for services provided to the CRA by City
departments utilizing a cost allocation formula. He explained that many city governments use
such a cost allocation formula to calculate the total number of hours that city employees
perform CRA activities, which are then charged against the CRA budget. He stated that
department directors would be responsible for overseeing how much time their employees
spent on CRA activities, although he could not recall whether a time card reporting mechanism
existed to record those calculations. Mr. Good stated that the CRA began to pay the City
approximately 10 percent of its annual budget as the result of a study on direct cost allocations
performed by a consultant in 2009. He surmised that this may have been one of the reasons
administrative costs went up for the CRA from $400,000 to $900,000 between FY 2010 and
FY 2011.


OIG 11-020
April 18, 2013
Page 27 of 56
Mr. Good stated that he began negotiating the purchase of the HVM property with
Commissioner Sanders in 2008, before Commissioner Sanders became a City Commissioner.
He further stated that the City had previously purchased many lots surrounding the HVM
property and that the City wanted to put in an affordable housing and mixed use development
in this location. He stated that Mr. Cannone and Mr. Antonio were also involved in the
negotiations. Mr. Good recalled that the first appraisal was for $230,000, followed by a second
appraisal of $147,000 and then a third at $275,000. He stated that Commissioner Sanders told
him that he thought the $147,000 was too low and was an anomaly. He also stated that he
agreed, and then commissioned another appraisal which was for $200,000. Mr. Good stated
that he averaged all but the $147,000 appraisal and reached the $235,000 purchase price. He
stated that none of the City Commissioners exerted any undue influence to inflate the purchase
price to benefit Commissioner Sanders.

Mr. Good recalled recommending approval of the Sun Times loan in late 2008, under the new
SBREP. He stated that the nature and purpose of this particular loan program was to provide a
stimulus boost to struggling businesses; therefore, he recommended that it include a provision
to forgive repayment of principal in a range of 50% to 80%. He also stated that he believed
that the Sun Times was struggling financially when he initially approved the loan. After he
was shown a copy of the CRA loan file, which contained documentation showing that the two
owners had paid themselves salaries in 2008 of $239,500 and $229,500, Mr. Good stated that
he was not previously aware of that information and that he was pretty angry right now. Mr.
Good stated that he would not have recommended approval of the loan had he been made
aware of the salary information.

Mr. Good recalled approving the DOI loan in early 2009, in part because it was requested by
Mr. Hardwick, who was a respected community activist and businessman. He admitted that he
knew Mr. Hardwick did not own the DOI business location, but that he recommended to the
CRA Board that they waive the ownership requirement imposed by the BIP loan program. He
also admitted that at that time, he knew very little about DOIs president, Mr. Fecske. He
stated that he was not aware that the loan proceeds were provided without requiring Mr. Fecske
to sign the promissory note, but that he knew that DOI failed to make loan repayments from
the beginning, and that it never materially completed the digital communications network
funded by the loan. Concerning the CRAs loss on the DOI loan, Mr. Good stated that
sometimes in a blighted area, you take a risk.

Mr. Good stated that he was not generally involved in the details of the CRAs loan accounting
procedures. Instead, he stated, he relied upon Ms. Ladolcetta to handle the accounting
properly. Specifically, he stated that he did not know whether the CRA recorded CRA loan
disbursements as expenses at the time the funds were lent, and whether repayments on the
loans were recorded as CRA revenue. Mr. Good further stated that although he could not
speak with authority or specificity on these topics, he was not attempting to shift responsibility
to anyone else because he was ultimately responsible for insuring the accuracy and propriety of
these accounting practices.

OIG 11-020
April 18, 2013
Page 28 of 56
2. Interview of Mark Antonio

Mr. Antonio stated that before 2010, the CRA had no viable process in place for managing the
charitable donations it provided to non-profits: the process had no structure to it. Instead, he
explained, those donation amounts would be included in the City Manager proposed budget as
non-departmental costs in account 8090 in the Citys general fund or, occasionally, in
connection with funding for the Human Services Department. He stated that CRA staff would
summarize requests for funding made by non-profits on a spreadsheet presented to the City
Commission for discussion and approval. Mr. Antonio added that it did not matter what dollars
were presented or recommended, since the City Commission would fund whatever they
wanted anyway. He stated once funds were disbursed to the non-profits, neither the City nor
the CRA attempted to verify how they were spent.

Mr. Antonio stated that over the previous two years the process had changed. He stated that
for the 2011 budget process, the CRA hired a consultant to analyze the charitable donation
requests before they were submitted for approval, although he did not know if any effort was
undertaken to verify the manner in which funds were spent. He further stated that for the 2012
budget process, the process was changed again by implementing a formal policy that required
grant applications, grant agreements and a monitoring process, which included payment
requests and quarterly progress reports. Mr. Antonio stated that non-profits should be
providing documentation and that the City should not be paying them if they didnt.

Mr. Antonio stated that Dr. J ackson determined that prior to the 2012 budget year, there were
donations being improperly funded by the CRA. He also stated that prior to the hiring of Dr.
J ackson, the CRA was run by Mr. Cannone, while he was also the Director of the DSD. Mr.
Antonio also observed that there had been a lot of turnover in the CRA Manager position.

3. Interview of Dr. Alvin Jackson, Jr.

Dr. J ackson stated that when he was hired in J anuary 2011, Mr. Antonio admitted to him that
the condition of the CRA was not good. He further stated that it did not take him long to
realize the CRA had been grossly negligent in its operations. He also stated that he was
concerned about CRA expenditures and that the City had free reign to tap into the CRA
account. Accordingly, he identified his concerns in a February 28, 2011 memorandum to Mr.
Antonio and began bringing the problems he found to the attention of the CRA Board and
other City officials so the appropriate changes could be made. Dr. J ackson stated that he met
resistance to his recommended changes from many City officials and CRA Board members
from the start; although he was able to implement some changes, many of his recommended
changes were not implemented or were significantly modified.

Dr. J ackson stated that he opened a new checking account for the CRA in approximately May
2012, with an opening balance of approximately $2.5 million. However, he stated that he did
not know whether the opening balance of the CRAs checking account reflected the accurate

OIG 11-020
April 18, 2013
Page 29 of 56
amount of funds due to the CRA from the Citys pooled-cash bank account as of the date the
account was opened. He reiterated that he had been forced to rely on City staff to provide him
with such finance and accounting information and was not in a position to verify the accuracy
of the information provided. He stated that this ongoing and unresolved situation made it
extremely difficult for him to establish plans and priorities for the CRA and to generally
perform his function optimally.

Dr. J ackson cited a problem with the FY 2013 budget as an example of the difficulties he had
in working through the City staff to determine CRA budget and accounting information.
Specifically, he stated that fifteen minutes before the August 22, 2012, CRA Board budget
meeting, Ms. Ladolcetta informed him that there was a reduction of the estimate of the CRA
revenue of $550,000 which was attributable to a correction in the recording of repayments on
CRA loans. Ms. Ladolcetta explained that she had determined that the loan repayments had
been included in the revenue estimates instead of recorded as reductions of loan principal. Dr.
J ackson explained that this last minute reduction required him to cut the Economic Incentives
Program, in contravention of the explicit directive of the CRA Board, and that he was forced to
attempt to explain the situation to them without fully comprehending what had happened.

Dr. J ackson stated that he also requested six years of CRA audits to determine if there were
findings reported. He further stated that he discovered that the CRA was not audited
separately, but rather as part of the Citys overall audit, so that its scrutiny was less detailed,
and that based upon his review of the prior audit reports, no findings were reported. He stated
that it was mind boggling that the Citys prior annual audit reports had no findings pertaining
to the CRA.
30
Based on his review, Dr. J ackson stated, he requested a 60 to 120 day
moratorium on loans so he could come up with a CRA plan and lay down a foundation for the
CRA so it could move ahead. He stated that the updated CRA plan and an Economic
Development Strategic Plan, both of which he prepared, were adopted by the Commission in
March 2012. He also stated that, due to such specific laws and rules pertaining to CRAs, the
CRA has now retained its own attorney and will have an independent audit performed. He
further stated that for the 2012 budget, there was a process put into place which resulted in
recommendations by a review committee to determine charitable donations to non-profits.

Dr. J ackson stated that he believed the CRA Board had no clear understanding of the types of
expenditures that are authorized by Chapter 163. He further stated because the CRA was
treated as just another City department, rather than as an independent entity, other City
departments had access to the CRA accounts and were able to charge costs to the CRA if
budgeted funds were available, regardless of whether the cost was applicable to the CRA. Dr.
J ackson stated that he believes it was the Citys practice to charge the CRA for some citywide

30
Dr. J ackson advised that he had previously reviewed a State of Florida Auditor General Report for the Daytona Beach
CRA and advised the CRA Board that many of the deficiencies identified in the report were similar to ongoing practices at
the Citys CRA.


OIG 11-020
April 18, 2013
Page 30 of 56
events. He offered the CRAs payment for Fourth of J uly fireworks as an example: since the
fireworks were for the entire City, including the CRA, they would be charged to the CRA.
Dr. J ackson offered his bottom line observation that Mr. Good improperly used the CRA to
supplement the City general fund. He stated that his assumption was that instead of cutting
costs or services out of the general fund, the CRA would provide the funding. Dr. J ackson
stated that he had informed a City official that using CRA funds for the City Hall air
conditioning was prohibited by Chapter 163. He added that Mr. Antonio began to address
some of the issues of the misuse of CRA funds during the fiscal year 2011 budget process, and
that he began to address the same in the fiscal year 2012 budget process. He stated that in
early 2011, he took control over CRA expenditures, so that subsequently CRA expenditures
were required to be approved by the CRA. He further stated, however, that he did not go back
to identify prior expenditures that were charged improperly to the CRA, and did not contact
any prior CRA employees regarding those expenditures.

Dr. J ackson stated that when he began employment, he reviewed the 2001 CRA Plan, which he
believed was the plan that was still in effect. He also stated that although Chapter 163 does not
require a CRA plan to be updated every five years, the Citys 2001 CRA Plan did include that
requirement. Dr. J ackson further stated that the CRAs failure to have a charter or by-laws was
also a violation of Florida law. He advised that in November 2011 the CRA Board was
informed that a CRA is a legal entity separate and apart from the municipality in which it is
located, so that it must promulgate its own charter and by-laws.
31

Regarding the extent of programs offered by the CRA, Dr. J ackson stated that in terms of
manageability, there were too many programs which were very diverse, had no uniformity and
appeared to be created for every conceivable situation. He further stated that the CRA would
pile on programs and no one went back to evaluate whether any programs were duplicative.
Dr. J ackson also stated that the CRA cannot just give money away, but rather has to
purchase services. He stated that prior to October 2011, non-profits were provided funding
without any formal agreements and without the monitoring or validation of services provided.
For the 2012 budget year, Dr. J ackson advised that he met with several of the non-profits to
discuss the types of services the CRA could purchase from them. He further stated that he
generally believed that the purchasing of workforce training and cultural arts training from
non-profits are not beyond the scope of Chapter 163 because they ultimately lead to a reduction
in slums and blight. However, he stated that Chapter 163 did not permit the CRA to fund
charitable donations to non-profits. He believed that the donations in the previous years were
inappropriate.

Dr. J ackson stated that in November 2011, Mr. Antonio was in the process of closing the deal
on the purchase of the Ben Gamla property, and informed him that he needed to fill out the
wire transfer form and have the money transferred to the seller. He further stated that he did
not know what account number he needed to place on the form, so he asked Ms. Ladolcetta.

31
Which the CRA finally accomplished in March 2012.

OIG 11-020
April 18, 2013
Page 31 of 56
Dr. J ackson stated that she researched several accounts on her computer and informed him that
there was not enough money in the CRA accounts to cover the $1.2 million purchase, but that
she found another account with sufficient funds and said we can take it from here. He
further stated that he entered the account number on the wire transfer form and signed it, but I
should have known that the account number was not a CRA account. He admitted that he
knew the funds were not from a CRA account but he was not sure how the City handled land
acquisitions, although he added that he should have known. He stated that at the time, he
was under the impression that the CRA had enough money in its accounts because Mayor
Cooper had previously reported that there was $8 million in the CRA accounts for land
acquisitions.

Dr. J ackson stated that he informed Mr. Antonio about a week later that the property was not
purchased using CRA funds. He further stated that Mr. Antonio asked him why CRA money
was not used and he responded that Ms. Ladolcetta had provided him with the account number,
so that Mr. Antonio should speak to her. He added that Mr. Antonio never mentioned it to the
City Commission in a meeting, and he did not otherwise know if Mr. Antonio discussed the
issue with City officials.

Dr. J ackson was asked about his knowledge of an October 17, 2012 City Commission meeting
which addressed the expenditure of the unexpended portion of the Bond proceeds, totaling
approximately $5 million, for improvements to Scavo Park and South Beach Park. He
responded that he had no knowledge that there were any unexpended proceeds from the Bonds.
Specifically, he stated that Mr. Antonio had informed him that the Bonds were used to finance
the purchase of the parcels adjacent to Bluesten Park, and it was his understanding that all of
the proceeds had been used for these purchases. He further stated that he was surprised that the
City had preliminary plans to consider expending approximately $5 million in remaining Bond
proceeds for parks outside the CRA area. Dr. J ackson reiterated that he had not known about
the remaining available funds, had not known about the vote at the meeting, and found it even
more appalling that the funds would be spent outside the CRA area while the CRA repaid the
entire debt. He stated that this situation was yet another example which illustrated the
difficulty he had in attempting to determine the amount of funds which should be attributable
to the CRA.
4. Interview of Patricia Ladolcetta
Ms. Ladolcetta stated that she oversaw the routine accounting and finance functions of both the
City and the CRA, including the year-end financial reports and any adjusting entries made to
the books and records of the City. She stated that when the CRA disbursed loan proceeds to a
borrower, the entire amount of the check was recorded as an expense in the Subsidized Loan
Programs account. She explained that it is a generally accepted accounting procedure for
governmental entities to initially record all disbursements as expenses, including loan
proceeds.

OIG 11-020
April 18, 2013
Page 32 of 56
Ms. Ladolcetta stated that at the end of each fiscal year, there was an adjusting entry made to
true up the financial statements to show the amount of loans receivable. She also stated that
the Citys main accounting system software was not designed to handle long-term loans
receivable. It was designed to handle short-term accounts receivable, such as routine utility
bills. She further stated that, at all times during the year, the accounting system would show a
zero balance for loans receivable. Ms. Ladolcetta advised that the City accounting staff
maintained records on a secondary system which recorded the loans receivable as a
maximum amount to be billed.
Ms. Ladolcetta stated that the City maintained a subsidiary ledger of all loans receivable
which, for each loan, included the loan balance due, repayment amounts, repayment due dates
and other typical data. She also stated that the subsidiary ledger was utilized to generate
invoices and to facilitate fiscal year-end adjusting entries; however, entries to the subsidiary
ledger did not automatically update the general ledger balance sheet loan receivable account.
She advised that the City was in the process of acquiring new accounting software which
would eliminate the deficiency in handling the accounting for long-term receivables. Ms.
Ladolcetta acknowledged that she had discussed the plan to acquire new accounting software
with the CRA Board in the August 22, 2012 budget meeting, as a part of a discussion
concerning a CRA budget revision of $550,000.
Ms. Ladolcetta stated that the City maintained a single pooled-cash bank account at City
National Bank, which had previously been maintained at Bank of America. Additionally, the
City maintained a payroll account which is tied to the pooled-cash account such that the
balance is rolled into the pooled-cash account every night. She also stated that the City also
had surplus funds investments at Wells Fargo Bank under a single custodian account that is
invested in a managed portfolio and money market fund, which has remained relatively stable
over the past five years with a balance of approximately $20 million. She further stated that
the City had also maintained a few general ledger escrow accounts in which the funds were
restricted to a particular purpose, including the Police Athletic League Trust Fund, a
scholarship program, the Friends of the Hepburn Center and others.
Ms. Ladolcetta stated that she was familiar with the circumstances, expenditures and
accounting for the Citys borrowing via the Bonds. Specifically, she stated that she knew that
all repayments to date on the Bonds had been made by the CRA and that the Citys and CRAs
budget documents reflected that all future repayments would be made by the CRA. After she
reviewed a document she had prepared that contained a breakdown of the expenditures from
Bond proceeds to date, as well as planned future Bond expenditures, Ms. Ladolcetta expressed
surprise that Scavo Park and South Beach Park were located outside the CRA boundaries. She
emphasized that in that case, the document caption Appropriated, but not yet expended,
should be read to mean that the funds did not have to be spent for the purposes stated on the
document. Ms. Ladolcetta then confirmed that her document reflected that some of the Bond
proceeds had already been expended on Scavo Park and South Beach Park. She also stated that
the City Marina was another project that was located outside of the CRA boundaries, but for
which Bond funds had also been expensed.

OIG 11-020
April 18, 2013
Page 33 of 56
With regard to the Ben Gamla property, Ms. Ladolcetta could not recall if Dr. J ackson came to
her office or if he had called or sent an email. She did recall that the wire transfer form was
already filled out and had the account number already typed in on the form, and bore the
signatures of Dr. J ackson and Mr. Antonio. She stated that she typed the account number into
her financial system and determined that the account was from the 2005 Duo Project
Developers Agreement and that the account contained approximately $1.3 million and the
system indicated it could be used for parks and other uses. She further stated that because the
system indicated that the money could be used for parks and that both Dr. J ackson and Mr.
Antonio had signed the wire transfer form, she processed the transaction. She added that she
had to call the bank to get a temporary increase in the wire transfer amount of $1 million to
complete the transaction. Ms. Ladolcetta stated that the wire transfer form did not indicate that
the purchase was for the Ben Gamla property.
Ms. Ladolcetta recalled the circumstances concerning the revision of the CRA budget at the
Board of Directors meeting on August 22, 2012. She stated that the CRA had prepared the
budget documents which were to be presented to the Board and that when she reviewed them,
she noted that the budget included an amount of $550,000 which had been misclassified as
revenue rather than repayments on CRA loans. She further stated that the CRA had
misunderstood the nature of the repayments and that she corrected the mistake, which resulted
in a reduction of the budgeted total CRA revenue for fiscal year-end 2013.
5. Interview of Renee Crichton

Ms. Crichton stated that she believed there had been some misunderstandings concerning the
November 2012 letter exchanges between the City and the OIG regarding the expenditure of
Bond revenues. She denied that the City had no prior plans to pay a pro-rata share of the debt
service on the Bonds loan. Instead, she stated, from the beginning of her tenure as City
Manager in J une 2012, she had understood that the City would be required to pay its share of
debt service on the loan. She further stated that pursuant to the terms of the loan, the City
actually remits all loan payments, for which the CRA internally reimburses the City.

Ms. Crichton advised that there had been two schools of thought concerning the method by
which the City would pay its share of the Bonds loan, at such time as that would be
appropriate. She stated that the first option envisioned that the CRA would fund all of the debt
service for the first 16 years, after which the City would fund the remaining four years. The
second option envisioned that the City would begin to fund its share of the debt service at the
conclusion of the parks improvements project in fiscal year 2015. Ms. Crichton stated that
receipt of the OIG letter had prompted her to confirm with the Citys external auditors her
understanding that these options were in accordance with the Generally Accepted Accounting
Principles. She further stated that after consulting with the external auditors, she decided that
the second option was the better choice for handling the matter.

Ms. Crichton admitted that she was aware that approximately $400,000 of the Bonds proceeds
had already been expended for parks projects outside the CRA area, including funds to

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construct the City Marina. She stated that these funds were included in the calculation of the
Citys pro-rata share of the Bonds repayment funding which was included in the Citys letter to
the OIG. She further stated that the City had not begun funding the Citys share of the Bonds
repayments attributable to the previously expended funds because the dollar amount involved
would be negligible at best. She also stated that her approach was to include the expended
amount in the calculation for funding beginning in fiscal year 2015, and that the external
auditors endorsed that approach.

Ms. Crichton advised that the parks plan had been under consideration by the City Commission
for a long time and had recently evolved to include a three-phase option approach. She stated
that prior discussions concerning funding for the parks plan had generally involved
consideration of a lump-sum borrowing of approximately $50 million via either general
obligation bonds or revenue bonds. She further stated that another aspect of the discussion
involved the funding sources for a fire station which had been included in discussions of the
parks plan. Although the concept of utilizing the unexpended portion of the Bonds to fund a
portion of the parks plan had been mentioned in Commission meetings, no particular allocation
of those funds had been introduced prior to discussions about the three-phase option in August
2012. She acknowledged that in City Commission meeting discussions of the three-phase
funding option, and in the staff backup documentation for those meetings, the allocation of the
unexpended Bonds proceeds was designated for Scavo Park and South Beach Park, both of
which are outside the CRA boundaries. She also acknowledged that she was unaware of any
mention of the Citys plan to pay a pro-rata share of the funding to repay the Bonds in any
Commission or CRA Board meetings, including regular meetings, budget meetings or
workshop meetings. Further, she was unaware of any documentation referencing the
repayment plan which preceded the OIGs November 5, 2012 letter to the City. However, Ms.
Crichton stated that the three-phase funding option had not been approved by the Commission;
therefore, no requirement to include the funding in any budget documents or financial
statements had been triggered. She also opined that until such time as the Commission adopted
the three-phase option, the matter of the Citys portion of the repayment funding was not ripe
yet for inclusion in any budget discussions.

Ms. Crichton stated that it was critical for an accurate understanding of the Bonds repayment
provisions to realize that the City has always been the party which was contractually obligated
to repay them. That is, the Bonds provisions specified that the City was the borrower and the
City has ultimate liability for repayment. Crichton explained that, if for any reason, the CRA
ceased to fund the repayments, there would be no change in the fact that the City would
continue to be liable for and continue to submit the loan repayments to the FMLC. The CRAs
funding of the repayments, as reflected in the City Commission meetings where the Bonds
borrowing was approved and as reflected in City and CRA budget documents, was an internal
funding decision that did not alter the Citys obligation to the FMLC.

Ms. Crichton advised that an additional reason for proposing that the unexpended Bonds
proceeds be spent in Phase One of the parks plan was that the Bonds were issued over five

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years ago and there were requirements concerning the timeliness of spending the funds.
Crichton advised that she generally recalled the comments she made at the August 13, 2012
workshop as you have the ability to pick-up approximately $6 million, $5.9 million in this
discussion. So when we begin to sharpen our pencils, you also have another bond issuance that
is out there from before. If you recall, we were going to use $5.9 million to pay for South
Beach, Scavo and B.F. J ames. She went on to explain that we may have the ability to, if the
Commission chooses, to either switch that land acquisition project to, for example, City-wide
beautification or take it out and reduce the total number of the bond issuance. That would be
something we would have to discuss when we really talk about what the end game is going to
be and what we have to go out to the community for. Ms. Crichton stated that these
comments were made in the context of a discussion concerning the total dollar amount of an
option to propose a referendum for a general obligation bond to fund the entire parks plan. Her
wording concerning reduction of the total number of the bond issuance referred to the total
amount of the new bond option. Ms. Crichton acknowledged that she did not recall, nor did
she believe, that the topics discussed in that meeting included any discussion of the City
funding a pro-rata share of the Bonds repayments.

Concerning the previous expenditure of Bond proceeds outside of the CRA area, including the
City Marina, Ms. Crichton acknowledged that the expenditure was approved by the
Commission during its regular meeting on September 1, 2010. She stated that she understood
that the official minutes of that meeting indicated the Commission approved spending of
$252,138.54 for the City Marina from a City ledger account, and that this account contained a
portion of the unexpended funds from the Bonds loan. Ms. Crichton further advised that she
understood that neither the minutes of that meeting nor the backup staff report for the agenda
item included any information about the source of the funds, and that there was no discussion
concerning any plan or proposal for the City to fund its pro-rata share of the Bonds
repayments. She stated that she considered this to be unremarkable because the City
Commission would not normally appropriate spending of this type from the Citys general
fund. She also reiterated that the expenditure for the City Marina was a portion of the
negligible prior spending of the Bonds proceeds, and that the notion of the City commencing
participation in funding the repayments after only this negligible expenditure was not
reasonable because the Citys share of the repayments would have been miniscule at that
point. Ms. Crichton stated that the CRA has not paid one dime more that it was supposed
to. She added that she believed that current and former City Commissioners understood that
at some point the City would have to fund a portion of the Bonds loan repayment, although that
understanding may not have been reflected in any discussions in any official meetings or
included in any documentation. She reiterated that the City had not reached the repay point,
so that the matter was not ripe for inclusion in official City meetings or staff backup reports.

6. Interview of Joy Cooper

Mayor Cooper stated that she is a member of the Florida Redevelopment Association (FRA)
Board of Directors. She also stated that on behalf of the City Commission, she asked that the

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FRA conduct a workshop for the City Commission to provide CRA-related training and
education. She was disappointed that only she and two other commissioners appeared for the
workshop.

Mayor Cooper stated that since the existence of the CRA, the City Manager had always acted
as the CRAs Executive Director, until the hiring of Dr. J ackson. She further stated that she
had been opposed to the hiring of Dr. J ackson to become the CRA Executive Director. Mayor
Cooper stated that the CRA adopted by-laws in March 2012, and that before that time, most of
its operational protocols mirrored that of the City Commission. She acknowledged
absolutely that Chapter 163 mandated that the CRA was to be operated as a separate entity
and stated that in fact, it had always been so regarded by the City Commission. Mayor Cooper
did not know whether the CRA had a separate tax identification number, but she stressed that
she had never run day-to-day CRA operations. She recalled that the CRA office was located in
the DSD, and that the CRA has some designated employees, but that there were people who
wore many hats. She also stated that the DSD had suffered high employee turnover that
adversely impacted the recordkeeping and the daily operations of the CRA.
32
She cited, in
particular, the performance of Dr. Pierre, whom she said was not a good manager and did not
manage the CRA appropriately.

Mayor Cooper stressed that although until recently the CRA did not have by-laws or an
independent executive director, it has had the initial CRA Plan since the CRAs inception, and
that the CRA Plan provided guidelines for operation. She stated the City typically updated its
CRA Plan every ten years, but she believed that was insufficient and that it should be done
every five years. She further stated that the City reviews its CRA plan annually, because the
CRA is required to make an annual report.

Mayor Cooper observed that the City of Hollywood formerly had a system in which its CRA
was freestanding, and has now moved over to the point that the city manager became the
[CRA] executive director. Mayor Cooper advised that the Citys model, wherein the City
Manager is the CRA Executive Director, gave that extra layer of oversight.

She noted that the City of Hollywood had issues in the past regarding the expenditure of CRA
funds for special events. Mayor Cooper stated that she believes CRAs need to address all
components of slum and blight, and that slum and blight can be derived from a myriad of lists
within, and not within 163, anywhere from crime, to traffic, to antiquated infrastructure, to job
rates.

Mayor Cooper stated that Chapter 163 is pretty general in regards to the contents of a CRA
plan, which goes back to CRAs flexibility and how they perceive what they want to do within
their CRA to utilize funding to address slum and blight. She reiterated within a city and a
CRA, as long as it's stated in the plan, you can expend money within that CRA to address

32
Mayor Cooper suggested that may have been the reason the CRA was unable to produce a copy of the 2004 CRA Plan.

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slum and blight. Mayor Cooper was shown a copy of the 2004 CRA Plan and informed that it
did not appear to authorize the funding of charitable donations. She responded that most of
those donations were identified in the City budget. She further stated that the Citys charitable
donations encompassed the actual goals and objectives of the CRA Plan, which is provided
within the guidelines of the plan and what our goals and objectives have always been. With
regard to expenditures outside the CRA boundaries, such as the Fourth of J uly fireworks
display, Mayor Cooper stated that CRA funds can be used outside the CRA boundaries because
such activities also benefit and promote the CRA. She added that the City Attorney never
objected to that position. Mayor Cooper also stated that she believed CRA funding for
festivals was approved by the Attorney General in AGO 2010-40.

Mayor Cooper stated that before the applications process for CRA charitable donations was
formalized, prior to October 2011, the CRA Board never required the City Manager to report
any efforts undertaken to verify that the funds were used properly by the recipients. She
explained as the Chairperson of the Board of Directors, she was confident that the funds would
not be recklessly or irresponsibly distributed. Mayor Cooper also stated that since the City was
always audited and no red flags had been identified, she had no valid cause for concern. She
further stated that the City did not audit outside agencies. Finally, Mayor Cooper stated that
she was engaged with all the entities so that she could physically see what people were
doing.

Mayor Cooper stated that she had viewed the DOI loan as an opportunity for some job creation
within the CRA, and that it was a unique project that the City Commission embraced as an
opportunity for a minority business owner. She acknowledged that although the BIP required
that the borrower own the property in which the business was located, Mr. Hardwick did not, in
fact, own it. She recalled that the CRA Board agreed to waive that requirement at the
suggestion of Mr. Good and, instead, the CRA would look to DOIs inventory of equipment as
collateral for the loan. Mayor Cooper further stated that she was unaware that one of DOIs
principals had not executed the promissory note before the loan proceeds were disbursed. She
also stated that since Mr. Hardwick had died, it was unclear what steps could be taken to
recover the proceeds of the loan.

Mayor Cooper stated that the CRA Board approved both the SBREP and the Sun Times loan,
including that loans forgiveness component, but she could not recall when the SBREP was
approved. She further stated that weve always had business incentive loans.
Mayor Cooper acknowledged that she had personally written a column published by the Sun
Times since 2003, and stated that she remembered that Mr. Good had reported to her that the
paper had run into some struggling times. She then stated that the CRA Board had not
actually approved the Sun Times loan; rather, Mr. Good approved it pursuant to his
discretionary authority. During her interview with the OIG in J uly 2012, Mayor Cooper was
reminded that Mr. Good instructed CRA staff to make the loan in December 2008, but that the
SBREPthe program under which the loan was authorizedwas not approved by the CRA
Board until February 11, 2009. She stated that she was not aware of this fact.

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Mayor Cooper stated that she believed the loan was an appropriate CRA expenditure because
the Sun Times was a business in our community; they had employed employees, both full and
part-time; they had been located in our city for quite some time, and that the way he defined it
was that they were having issues and might fold, and that they were actually looking to move.
Mayor Cooper stated, however, that she did not know that in the year prior to its loan
application, the Sun Times owners had paid themselves a total of $469,000 in salaries. She
added that the CRA does not necessarily look at the salaries of the entity, and offered the
Village of Gulfstream Park and its CRA loan as an example.

7. Interview of Anthony Sanders

Commissioner Sanders stated that in addition to being a City Commissioner and a CRA Board
Director, he has been the full-time pastor of HVM since 2007, and that he also sits on its board
of trustees. He also stated that he was not sure whether the Directors on the CRA Board have
written job descriptions. He further stated that the CRA Executive Director was responsible
for day-to-day oversight of CRA operations, but that the CRA Board had a say in how the
Executive Director should run things and would provide vision on the types of programs that
should be used to remove slum and blight.

Commissioner Sanders stated that he did not have personal knowledge of any mismanagement
or inappropriate actions regarding the CRAs operations. He further stated that the CRA was
always evolving and he would hear from outside people and professionals on how CRAs
should be run, how CRA funds could or could not be used, and on different understandings of
Chapter 163 regarding what can and cant be done. He stated that he attended CRA
workshops that were put on by professionals and during conversations with these professionals
he learned what the City was doing that might not be in compliance with CRA laws, and how
to remedy any issues. Commissioner Sanders was asked to provide an example of when the
CRA may not have been in compliance. He did not provide a specific example, but
commented that it depended on who he was talking to and specifically what they were talking
about, whether it was utilizing funds for brick and mortar projects or buying services for
community activities. He stated that different services can be bought using CRA funds.

Commissioner Sanders stated he was aware of the high turnover rate of employees in the CRA
and problems with CRA recordkeeping. He also stated that although some CRA employees
left for better opportunities, others were let go for not having a good understanding of how the
CRA should be operated. Commissioner Sanders further stated that an audit conducted by the
City had indicated issues with the lack of records and poor file management. Some of the audit
exceptions indicated that the CRA had poor procedures in place from inception and a lack of
infrastructure.
33
Commissioner Sanders advised that in the past the CRA was operated as a

33
Commissioner Sanders was referring to a limited Agreed Upon Procedures Audit of the City, which also addressed
certain functions of the CRA, which was reported by an external auditor in March 2012.

OIG 11-020
April 18, 2013
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side department within the DSD, so that Mr. Cannone, the DSD Director, had to wear two
hats because he would also oversee the CRA operations.

Commissioner Sanders stated that he could not recall whether the CRA Plan authorized giving
charitable donations to non-profits, although he believed that the CRA can fund them, and that
the other CRA Directors shared his opinion. He speculated that the CRA had made charitable
donations as far back as 2001. He was not sure how the non-profits knew how to apply for the
funds, but it was done annually and may have been known through word of mouth. He also
stated that the intent was to provide funding to the non-profits to provide program activities.
He observed that the newly-implemented grants process defines specific purposes for the use
of funds and required quarterly reports and that these changes assisted in reaching the goals of
the approved programs.

Commissioner Sanders was asked why the CRA Board provided additional funding to certain
non-profits against the recommendations of the independent rating committee in fiscal year
2011, and against the recommendations of the Urban League of Broward County in fiscal year
2010. He responded that the rating committees may have had good intentions, but they did not
have as good an understanding of the non-profits as CRA Board. He stated that he knew the
non-profits in his community and knew these organizations did good work for the community.
He also stated the decision of the rating committees could have been political; or members may
have had a personal preference or may have had a different opinion of the type or quality of
services that needed to be provided to the community. He further stated the City is divided
socially, racially, and economically, so the rating committee members may have had different
opinions on what was best for the community, especially if they did not work or live in the
community. Commissioner Sanders stated that generally, he disapproved of the rating
committee process because it hindered the non-profits from directly presenting the merits of
their programs.

Commissioner Sanders stated that the CRA Executive Director was responsible for creating the
rating committee process, but the CRA Board had the final say in how much funding was
awarded to the non-profits. He observed that funding of non-profits could be varied in its
approach, but it should be programmatic and build the whole person. Commissioner Sanders
also stated that he knew the non-profits were actually performing the programs because he
visited them. He stated that he did not know how the CRA validated the documentation that
was provided by non-profits, but the CRA should agree to compensate the non-profits for
providing any such documentation. Commissioner Sanders opined that if the CRA does not
provide funds to a non-profit to validate its deliverables, then it cannot expect to be provided
with accurate data.

Commissioner Sanders stated that he was aware that the CRA had funded non-profits that were
located outside the CRA boundaries, but that those organizations used their CRA funds to
provide services within the CRA boundaries. He cited, as an example, the services provided
by the non-profit Feeding South Florida. However, he stated that the CRA should not have

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paid for any type of fireworks show with CRA funds if the show was on the beach or outside of
the CRA boundaries.

With regards to the HVM loan, Commissioner Sanders stated that HVM paid the City
approximately $1,440 each quarter as was required by the loan conditions, and was never in
arrears. At the real estate closing in February 2009, the City had calculated a loan payoff
which was satisfied from the sales proceeds at closing. Commissioner Sanders stated that in
2012 the City represented that it had incorrectly forgiven $15,000 of the loan, when it should
have only forgiven $7,500. He stated that he had disputed the Citys claim, because his
reading of the mortgage documents showed that the City was to forgive $15,000 of the loan,
and as such, there was no error in the original pay-off calculation. He also noted that Mr.
Antonio later provided HVM with a letter of apology, admitting the Citys error and that the
City would write off any balance it believed it was owed. However, Commissioner Sanders
stated, the issue unfairly took on political implications so that over his protests, the HVM
trustees decided that because of their pastoral role in the community, they would repay the city
the disputed $7,500, in monthly installments of $125.
With regard to the sale of the HVM property, Commissioner Sanders stated that he was
unaware of any requirement that HVM contribute 1% of the $235,000 purchase price to an
unspecified local non-profit. He stated, though, that in fact, HVM had donated cash and in-
kind services, such as rent forgiveness to Eagles Wings, far in excess of 1% of the purchase
price, although those donations were not related to any agreement regarding the sale.
8. Interview of Keith London

Commissioner London stated that the CRA Board had a fiduciary responsibility to ensure CRA
funds were properly and effectively spent. He described his responsibility as conducting
oversight of the CRA Executive Director and staff, reviewing and approving the CRA budget,
voting on processes and policies, and ensuring all laws and regulations were followed.
Commissioner London stated that he received no training regarding CRAs or Chapter 163. He
added that the City provided him a Commissioners Orientation Manual but he did not think
any CRA information was in the manual, stating No, it was learn as you go, heres your
desk. Commissioner London advised that the CRA Board does not have oversight of the
day-to-day operations of the CRA staff. He stated that if he had a concern or wanted to
research an issue he would have to put in a Commissioners Request (CR) to the City Manager
to obtain information. He estimated that he put in 20 to 30 CRs relating to CRA issues.

Commissioner London stated that he had personal knowledge of CRA mismanagement and
inappropriate actions regarding CRA operations. He also stated that the culture of the City
employees and officials have not changed and that there are many bad players that are
elected or employed at the City and that these individuals think that the taxpayers work for
them, instead of the other way around. Commissioner London stated that the City and CRA
have misspent millions of dollars over the years that have not been accounted for. He also
stated the City and CRA are not operating properly under Florida Statute 163, that the City

OIG 11-020
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was just pulling staff to assist in the operation of the CRA out of their back pockets, and the
City and CRA were commingling funds. Commissioner London stated that Mayor Cooper
was still fighting some of the corrective actions suggested by Dr. J ackson, but that the gravy
train is ending and they dont like it.

Commissioner London stated that he was not sure if the initial CRA Plan included by-laws, but
he didnt think so. He stated that the CRA currently has by-laws that were drafted by Dr.
J ackson and approved in March 2012. He described the CRA operations as loosey-goosey
until the new by-laws were enacted. He also stated that the CRA did not have an updated plan
until March 2012, as far as he knew. He stated that if there was a 2004 version of the CRA
Plan then three separate City departments would have worked on it and they should have
copies, but to his knowledge they could not locate it. Commissioner London observed that it
did not matter if there was a CRA plan or not, because he believed it would have been ignored
by the CRA Board, which would approve anything that was placed before them by the City
Manager. For example, he stated, Mr. Good routinely asked them to sign blank documents on
contracts and agreements without any backup or discussion. He opined that his fellow CRA
Board members failed in their fiduciary duties by transferring all their responsibility and
authority to Mr. Good.

Commissioner London stated that he did not recall reading anything in the 1996 CRA Plan that
authorized funding for donations or grants to non-profits. He further stated that he couldnt
believe the City was just giving money away to these organizations and that these
organizations would just line up for it. He advised that the City had historically provided
funding to the organizations and that it seemed that every year the list of applicants grew.
Commissioner London advised that recently, the CRA Board stopped providing charitable
donations and started the grant process because they were tired of getting bad press in the blogs
and newspapers. Nevertheless, he stated, there really was no difference in how the CRA
handled the funding for donations or grants. He acknowledged that TIF financing was a good
way to raise property values and that the CRA should have programs that increase property
values because if the City fails to increase property values, it will not get the County matching
share of TIF funds. However, he stated that he does not see the value in giving CRA donations
to non-profits that do not provide deliverables that will increase property values within the
CRA district. He further stated the CRA should fund programs that involve bricks, mortar, and
industry and are physically located in the CRA district.

Regarding the CRA Board failure to heed independent recommendations for the funding of
non-profits, Commissioner London speculated that some of the Commissioners may have
wanted to buy new cars or they wanted to garner votes from a specific community or
constituency. He stated the process did not matter, it was window dressing. He was
particularly concerned that the only recommendation in favor of funding for Eagles Wings and
the PCAC was from Ms. Sanders. He was also concerned that a number of non-profits were
using a high percentage of the money for administrative costs, and when he questioned this,
nothing was done. He stated why are we giving money to them to go into their pockets?

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Commissioner London also expressed concern that the City and the CRA repeatedly provided
funding to non-profits that purportedly provided the same or very similar services, which he
deemed a further inappropriate use of TIF dollars.

Commissioner London was asked what the CRA did to verify that the non-profits were
spending CRA funds appropriately, and he responded zero. He stated that he had no
knowledge of how many actual jobs had been created by the non-profits, and no idea if any of
the non-profits delivered on their written agreements, because the CRA staff never provided
the CRA Board with any verification documents. He also stated that the ink was not dry on a
grant agreement obtained by Ms. Sanders before she requested additional emergency funds for
one of the non-profits she ran, which created an appearance of undue influence and favoritism.
Commissioner London added, how is staff going to say no to the wife of a Commissioner,
wheres the governance? He stated that some of the non-profits received more funding than
was recommended, even after changes to the grant process were implemented. He observed
that the City Manager or the CRA Executive Director and the City or the CRA attorney would
still be responsible for ensuring any changes to the grant agreements were executed properly.
In summary, Commissioner London stated the written agreement process was never about
performance or execution, it was about how much money the non-profits needed. The City
Commissioners and the CRA Board of Directors looked at the CRA fund as one big pile of
money and they didnt care how or where the money went. In particular, Commissioner
London singled out Mr. Good and Mayor Cooper, stating that they did not play on a level
playing field and that they would support organizations or individuals because they knew
them or wanted to get money for them.

Commissioner London stated that in some instances City expenses were charged to accounts
which were funded with CRA money. He also stated that the City had historically used City
personnel and resources to run the CRA, and that Mr. Good wanted to increase the amount of
money the City charged the CRA for these administrative costs. Commissioner London stated
that in order to justify an increase, Mr. Good hired a consultant to prepare a report in support of
his position.

Commissioner London stated that he had concerns regarding the manner in which the City
purchased the HVM property. Commissioner London stated that the final decision to purchase
the property was voted on during a February 12, 2009 special meeting, but the property
purchase was not an item on the agenda. He also stated that Mayor Cooper decided the
meeting would be conducted in room 219 at City Hall, a small second floor conference room
with no audio or video recording capabilities. He further stated that the public did not have
access to the room because a City administrative staff member is required to electronically
unlock the elevator. Commissioner London stated that members of the public had informed
him that they have been unable to attend special meetings in the past because they were denied
access to the second floor. Commissioner London produced a copy of action minutes, which
he stated provided a brief description and record of the vote taken at the meeting on the
purchase of the HVM property, with little or no summary of the related discussions. He noted

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that the action minutes did not reflect any discussion concerning how the final maximum
purchase price offer of $235,000, as recommended by Mr. Good, was determined or justified.
Commissioner London then produced documents showing the property was purchased on the
day of the meeting for $235,000, the maximum agreed price. He opined that for the property
purchase to close on the same day the City Commission decided to move forward with the
purchase, and for the maximum purchase price, there must have been a pre-arranged
agreement with Commissioner Sanders regarding the purchase and the price.
Commissioner London stated that the representation by Mr. Good that the need for the HVM
property was in furtherance of a pending development effort was not accurate. He further
stated that the city had advertised a solicitation for the development of the area, and there were
responses from developers who were considering building rental or rent-to-own properties.
However, at the time of purchase, there were only speculative plans in place to develop the
HVM property or adjacent properties. In addition, he stated, because of community opposition
and a downturn in the economy, to date, no project was ever developed at or adjacent to the
property. Commissioner London also stated that at the time of the purchase, Eagles Wings,
whose corporate officers included Commissioner and Ms. Sanders, had been operating from
the property, but that there was no discussion regarding if, or under what conditions, Eagles
Wings would continue to occupy the property after the Citys purchase. He added that in
March 2009, Commissioner Sanders voted to allow Eagles Wings to continue to operate from
the property.
9. Interview of Alexander Lewy
Commissioner Lewy stated that as a CRA Board Director, his primary duties and
responsibilities were to approve the CRA budget and the CRA Plan, and oversee the operations
of the CRA Executive Director. He also stated that the CRA Executive Director directly
reports to the CRA Board, not the City Manager. He further stated that the CRA Board does
not provide oversight of the day-to-day operations of the CRA staff, but provides direction to
the CRA Executive Director on the type of programs which should be used to remove slum and
blight within the CRA area, and ensures the CRA is following policies through meetings with
the Executive Director and the review of requested reports.

Commissioner Lewy stated that the CRA had written bylaws that were put in place in early
2012, but he did not believe that they had any before that date. He further stated the CRA had
a plan and it was last updated in March 2012. He stated that he did not know what version of
the CRA Plan was in effect before that date. He advised that when he became a City
Commissioner, and thus a CRA Board Director, he just tried to understand what the CRAs
needs were for the upcoming fiscal year, what its goals were, what each of the CRA programs
were supposed to deliver and, at the same time, develop the CRAs budget. He could not recall
if any of the donations or grants that were given to the non-profits were set forth in the CRA
Plan when the budget was presented. He stated that he did not know the history of how the
CRA started the donations to the non-profits, but knew that such funds had been provided in
past years.

OIG 11-020
April 18, 2013
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Commissioner Lewy stated that shortly after he was elected, the CRA Board discussed with
Mr. Antonio the need to reform the practices of the CRA, and the need to operate it in a more
professional manner. One of the changes that came from these discussions was the decision to
stop the practice of making charitable donations with CRA money, and replace it with a grants-
type program. Commissioner Lewy described grants as monies provided to organizations that
are aligned with a specific program and that program is addressing a community problem. He
stated that grants could be issued to organizations to develop teens to get a job, provide
educational opportunities, or fund a summer camp program to get kids off the streets, all of
which would benefit residents. He further stated that he did not believe donations were just
free money to the public. Commissioner Lewy stated that he thought that if the CRA
provided donations to non-profits, then those organizations would use the money to provide
some benefit to the residents.

Commissioner Lewy acknowledged that for fiscal year 2011, the CRA Board provided
additional funding amounts to non-profits against the recommendations of an independent
rating committee. He stated that if he believed in a non-profit and what it planned to do with
the grant money, and the input from the community was positive, and the costs to successfully
provide a specific program were acceptable, he would vote in favor of the funding. He also
stated that some of the non-profits may have needed more money to implement their programs
and that the rating committee may not have had sufficient information to make a proper
funding allocation. He noted that non-profits have to have capacity to grow and to serve the
community residents. With regard to monitoring the use of CRA funds by non-profits,
Commissioner Lewy stated that CRA staff would be responsible for any follow up on the
deliverables, timeliness issues and reports. He further stated it would have been up to CRA
staff to bring up any problems that the non-profits may have been involved in to the attention
of City officials.

Commissioner Lewy stated that he was not aware of either the CRA Board or the City
authorizing the expenditure of CRA funds outside of the CRA boundaries. He further stated
that if the City departments were in fact getting funding from the CRA to pay for services
outside the CRA boundaries then it should not have happened. He also stated that the CRA
should not have paid for a fireworks show if the show was held outside of the CRA boundaries.

10. Interview of William Julian

Commissioner J ulian stated that he was a City Commissioner from 2001 through November
2010.
34
He stated that when he became a Commissioner in 2001 he was not provided with any
training on CRA matters, and that he was not familiar with Chapter 163. He also stated there
was always high turnover in personnel at the CRA and that was one of the reasons why the
CRA had operated under the Citys DSD. Commissioner J ulian stated that the City had a
history of using both CRA funds and general funds to make charitable donations to

34
The interview was conducted before Commissioner J ulian was re-elected to the City Commission in November 2012.

OIG 11-020
April 18, 2013
Page 45 of 56
organizations. He stated that the City would put away funds for charities, and this was always
known by the residents. He recalled that the organizations would just submit a request letter
for the donation to the City Managers office and the staff would weed out the requests and
then put the requested amounts on a spreadsheet. The City Manager would then schedule an
annual budget meeting and the charitable donations were discussed and then voted on by the
commission. Commissioner J ulian noted that some of the organizations would appear before
the Commission to plead their cases, while others did not. He stated that at some point the
CRA began to require the organizations who applied for donations to provide a letter advising
how they spent the prior year donation and how they planned on using any additional donations
for the coming year.

Commissioner J ulian stated that in the last few years of his prior term as commissioner, the
City started using funds solely from the CRA to pay for the donations. He further stated that
he and the other commissioners preferred to use CRA funds to pay for the donations as they
did not have to pull funds out of the general fund. J ulian stated that donations were paid as a
line item from the City budget. He did not believe that the City ran any advertisements or
public notices regarding the CRAs charitable donation program. He stated that he assumed
the City Manager and his staff would validate any information obtained from non-profits
regarding their use of CRA funds. He also stated that if a recommendation came from the City
Manager, he took it for granted that it had been properly vetted. He added that he trusted both
Mr. Good and Mr. Antonio when they were the City Managers.

Commissioner J ulian stated that the CRA budget meetings were open to the public. He further
stated that the City would have its regular meetings and CRA meetings simultaneously. He
explained the procedure as follows: the Mayor would close the regular meeting and then start
the CRA meeting. Once the CRA meeting was over, the Mayor would re-open the regular
meeting. He stated that the CRA would have agenda items that were separate from the regular
meeting agenda, and that when they were discussing approving the charitable donations using
CRA funds, it was in a CRA meeting.

Commissioner J ulian opined that CRA funds should be available to support local businesses in
blighted areas, provide jobs, and bolster the local economy. He stated that he was not sure how
the TIF funds came from the County to the CRA, but knew that the County matched the Citys
funds. He further stated that the City used CRA monies instead of general fund monies to pay
for the charitable donations for the valid reason of helping City residents, businesses and
property owners. He stated that the only reason he may have questioned a CRA donation
would have been if the organization was a fly-by-night or if it wanted funding for services
that were duplicative.

Commissioner J ulian stated that the Future Foundation (FF) was a non-profit that provided
educational-type funding to needy people. He further stated that Mayor Cooper was FFs
president and he was its vice-president, and that other City employees were members of the
organization. He acknowledged that FF had received thousands of dollars of funding from the

OIG 11-020
April 18, 2013
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CRA, and that neither Mayor Cooper nor he recused themselves from voting to approve those
expenditures. Commissioner J ulian stated that he saw no voting conflict because the FF did
good work.

Commissioner J ulian advised that he was generally aware of a number of CRA loan programs
and some of the loans made under those programs. He recalled that the Sun Times received a
$50,000 loan from the CRA in 2009. Commissioner J ulian stated that he knew that the loan
was the first ever made under the new SBREP, and that it included a provision allowing the
City Manager to forgive 50% to 80% of the loan. He further stated that at the time the loan had
been proposed in late 2008, he believed that the Sun Times was having financial difficulty.
Commissioner J ulian stated that it was his idea to initiate this loan and that he suggested to the
Sun Times editor that the Sun Times should call Mr. Good to apply for the loan. He advised
that his intent in suggesting the loan was to give to the Sun Times a boost over a bad season
and that although there was no real CRA directive as to the use of the funds, he believed the
loan met the general conceptual theory of the CRA, which included efforts at job creation.
Commissioner J ulian also acknowledged that he had written a regular column about history for
the Sun Times, for which he was not paid. He admitted that prior to his interview with the
OIG, he had not been aware of the high salaries the owners of the Sun Times had paid
themselves in 2007 and 2008, stating that dont look good, does it.

Commissioner J ulian stated that he was familiar with the CRAs DOI loan. He did not know
how Mr. Hardwick and Mr. Fecske, a businessman from California who was new to the area,
became involved together in the venture; however, he believed that the DOI concept must have
originated with Mr. Fecske, who then sought out the others for their local connections. He
stated that the concept pitched by DOIs principals was to install televisions and monitors in
public places, such as City restaurants and hotels, which would display a continuous loop of
advertisements of area businesses and events. Commissioner J ulian stated that he considered it
a good idea and an appropriate use of CRA funds. He knew that the CRA decided to take
DOIs electronics equipment, which would be acquired with the loan proceeds, as collateral
because Mr. Hardwick did not own his business property. He did not know whether the CRA
had obtained properly executed legal documentation to secure the equipment.

Commissioner J ulian stated that DOI had installed some televisions that were running
advertisements because he saw them. He knew that the DOI concept failed and that the City
had made unsuccessful attempts to recover payments on the loan and the electronic equipment.
He stated that in May 2011, he received a telephone call from Mr. Hardwick in which
Hardwick was crying and expressing despair over his inability to repay the DOI loan, and two
days later he died of a stroke. Concerning the overall DOI situation, Commissioner J ulian
observed that sometimes the City will take a loss on a gamble.

Commissioner J ulian stated that the HVM property was a junk building that Commissioner
Sanders purchased for $47,000 and then later obtained a loan through the CRA to make some
improvements to the property. He further stated that he questioned Commissioner Sanders

OIG 11-020
April 18, 2013
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concerning the $7,500 loan forgiveness, and Commissioner Sanders responded that HVM did
not owe the $7,500 because it had paid off the loan before its maturity date. Regarding the
purchase of the HVM property, Commissioner J ulian stated that Mr. Good informed him that
the City needed to purchase it because it was obstructing an affordable housing project. He
also stated the City requested three appraisals and that the City Commission approved the sale
for $235,000 after eliminating the lowest and highest appraisals.
35
Commissioner J ulian added
that the final figure was decided by Mr. Good and thrown at the City Commission for
approval.

Commissioner J ulian stated that before his interview with the OIG, he met with Dr. Brown and
questioned her concerning the charitable funds PCA received. He further stated that Dr.
Brown stated she had only received small donation amounts between $3,500 and $5,100.
Commissioner J ulian then expressed his surprise that PCA had received over $75,000 in
donations, but observed that whatever she wanted, she got.

11. Interview of Deborah Brown

Dr. Brown stated that she has been a teacher in Broward County for the last 30 years. She
further stated that she has been the Director of PCA since 2009. She estimated that PCA had
obtained approximately $100,000 in funding since that time, $50,000 of which was a charitable
grant from the CRA, and the remainder of which was provided through the Weed and Seed
program. She added that during that period, she had received about $20,000 in salary and that
J osh Brown, her brother, had been paid approximately $15,000. Dr. Brown was then informed
that a review of PCAs financial records by the OIG revealed that PCA received approximately
$110,907 from the City$93,667 from the CRA and $17,240 from the Weed & Seedand
that approximately $62,000 of that money had been paid to her and her brother as salary,
$42,000 to her, and $20,000 to her brother. Dr. Brown replied that little $42,000, that aint no
money for the amount of work she had done for the PCA, and added that I dont back down
from getting any money, I work 24 hours a day for PCA.

Dr. Brown stated that PCA staff members included herself, her brother, and two other
individuals. She further stated that she was paid $25 per hour for working approximately three
to four hours per day, five days per week. She described her brothers duties involved
recruiting, community activities and job placement for attending students. She added that he
had a success rate of placing students in jobs of approximately 40-50 %. However, Dr. Brown
could not recall the names of those students or remember where any of them worked.

Dr. Brown stated that one of PCAs programs was named Arts at Work and that J osh Brown
served as its Program Manager. The Arts at Work program consisted of 25 to 30 students,
ranging from ages 14 to 23. She stated that the programs focus was providing students with

35
This is inaccurate. As discussed above, the CRA obtained four appraisals and only the lowest appraisal for $147,000
was eliminated.

OIG 11-020
April 18, 2013
Page 48 of 56
job training, music instruction and learning about musical components and equipment. PCA
also provided music education services to students from ages six and up. That program
consisted of approximately 20 students, which she personally directed and operated.

When asked to explain some of PCAs expenditures as reflected in PCAs bank statements, Dr.
Brown stated that the amounts listed for the purchase of fuel at three local gas stations was
about right as PCA pays an assistant to pick up children from three local schools for
transportation to PCA. She stated that PCA uses a Dodge Ram van, which she personally
owns, to transport the children. She was unaware whether the insurance policy for the van had
additional coverage for the transportation of children, but stated that she would look into it.
Dr. Brown advised that on some occasions, when she would pick up the children, she would
drive her personal vehicle to the PCA location and pick up the van in order to provide those
services. She stated that she provided transportation services five days a week, but
acknowledged that PCAs grant agreement with the CRA did not contemplate the provision of
transportation services. She described them as in-kind services associated with
administering PCAs programs.

Dr. Brown was questioned regarding some cash withdrawals from a PCA account, one in the
amount of $4,100 on November 1, 2010, and a series of withdrawals between September 14,
2009 and May 31, 2012, which amounted to approximately $1,840. Dr. Brown was unable to
explain any of the cash withdrawals, other than stating that she recalled withdrawing a large
amount of cash in order to pay a T-shirt vendor who only accepted cash. She further stated that
if there were problems with the bank account, it would be on her. She was also asked about
several restaurant expenditures. She could not recall the specific circumstances, but opined
that the funds may have been for food and drinks for students.

Dr. Brown stated that most of the money for PCAs trips was raised by the children during
fundraising events at a local Wal-Mart, in which the children would stand outside and request
donations from shoppers going in and out of the supermarket. She further stated that she could
not recall how those funds were handled or if she deposited them into one of PCAs bank
accounts. Dr. Brown advised that she realized that she had made mistakes in how she managed
the PCA financial accounts and was currently working with her accountant to ensure that all of
her ts are crossed and is are dotted. She added that any money that was received from the
CRA was always used for its intended purpose and was never used for anything other than the
goals of PCA programs or on field trips that were organized by PCA. She stated that PCA did
not have any accounting measures in place until recently because they were too expensive, but
that she now meets with an accountant on a regular basis to ensure PCA is doing things
correctly.

Dr. Brown stated that some of the funds were spent on expenses incurred by PCA
administrators who accompanied students on trips to Washington D.C., Atlanta and
Tallahassee. She further stated that the Washington, D.C. trip was partially funded by the CRA
in the amount of $5,000, with an additional $15,000 from private donations. She further stated

OIG 11-020
April 18, 2013
Page 49 of 56
that all the money raised or donated for the D.C. trip was used for only that trip. She also
stated that 50 children made the trip and they performed outside the White House and the
Lincoln Memorial. She recalled that the whole group stayed in the same hotel, but she was
unable to recall the name of the hotel or whether the rooms were reserved on a credit card. Dr.
Brown stated that PCA used K & L Bus Services for the field trip, for which she paid cash.
She also stated that the driver that they used had since passed away.

Dr. Brown was shown a copy of a bank record spreadsheet and she confirmed it was a PCA
account. She also identified a copy of the $5,000 check PCA received from the CRA for the
Washington D.C. trip, and the deposit slip for the account that she had personally filled out on
March 26, 2010. Dr. Brown was asked about a $1,000 cash deposit that was made into the
same account on the same day, but she stated that she could not recall the source of that
money. Dr. Brown admitted that she had used $683 in PCA funds to pay fees in connection
with a time-share condominium she personally owns in the Westgate Resort in Orlando. She
stated, however, that the time-share was sometimes used by PCA when it took students to Full
Sail University, a recording arts school that would host PCA students. She also admitted that
she used the time-share for personal reasons on several occasions because it was a good retreat
from the rigors of her work.

Dr. Brown was shown other expenditures from the $5,000, including a Wireless Sprint
payment, a $258 Dollar Rent-a-Car charge, and a withdrawal of $2,000, and asked what they
had to do with the trip to Washington, D.C. trip. After reviewing the spreadsheet for
approximately three minutes, she stated that she could not answer the question or recall the
transactions.
36
Dr. Brown was asked about two other expenditures that were made on March
30, 2010, one to Washington Metrorail for $9.60 and another to Dominos Pizza for $144, and
she stated that those transactions were in connection with the trip. Dr. Brown was asked if she
had informed the CRA that most of the $5,000 was not used for its intended purpose. She
responded that she did not tell the CRA anything because all funds were used for the kids.
She then stated that she was done answering questions and concluded the interview.

RESPONSES TO THE PRELIMINARY REPORT AND OIG COMMENT

In accordance with Section 12.01(D)(2)(a) of the Charter of Broward County, a preliminary version of
this report was provided to the City Manager and current and former members of the City Commission
of Hallandale Beach, Mr. Good, Mr. Antonio, Dr. J ackson, Ms. Ladolcetta, and Dr. Brown for their
discretionary written responses. The OIG received responses from Commissioner J ulian, Mayor
Cooper, the City and the CRA (combined, through the City Attorney), Ms. Ladolcetta, Mr. Good, and
Dr. Brown, which are attached and incorporated herein as Appendix A through F, respectively. We
appreciate receiving the responses.

36
Dr. Brown was asked several times why she could not answer the questions regarding her expenditures of the $5,000,
and each time she flatly responded that she could not answer the questions.

OIG 11-020
April 18, 2013
Page 50 of 56
A number of issues were jointly raised in some or all of the responses, and the OIG shall address them
as follows:

Mayor Cooper and the City Attorney both question the OIGs authority to investigate the CRAs
activities, although Mayor Cooper acknowledges that the City and the CRA nevertheless agreed to
cooperate with the OIG, rather than challenge our actions. The City Attorneyresponding on behalf
of both the City and the CRAasserts that the CRA is a legal entity separate from the City, so that it
is beyond the ambit of OIG scrutiny. As a threshold matter, her assertions ignore the fact that the OIG
has authority over all municipal officials in identifying mismanagement of public resources.
37
A CRA
is a dependent special district created by the municipality and controlled by the elected officials of the
municipality. Through the CRA, municipal officials spend the resources of the municipal taxpayers.
Especially with regards to the Hallandale Beach CRA, the circumstances described in detail in this
report clearly demonstrate that the CRA did not function as an entity distinct from the City. A
municipality cannot avoid OIG oversight by spending taxpayer funds through an agency that is
independent in name only.

Another common theme among the respondents was the claim that the OIGs reliance on AGO 2010-
40 was unwarranted because it is a non-binding advisory opinion. Several respondents also
characterize its finding as ambiguous. In particular, the City Attorney cites to two cases that discuss
the purpose of CRAs but do not address the specific issue of socially beneficial programs unrelated to
brick and mortar improvements. The cases do not contradict the AGOs findings. In fact, the City
Attorneys own citations reflect the basic misunderstanding that is at the core of the gross
mismanagement identified in this report: the City has failed to comprehend that the CRA has a limited
purpose and that the powers of the CRA to expend CRA TIF funds is not equal to the power of the
municipality to expend general funds. Cases citing to municipal authority, derived from the state
constitution, to expend funds for any municipal purpose do not expand a statutory framework which
diverts the funds of other entities to a CRA Trust for a limited purpose.

We reiterate that the OIG takes no position regarding the merits of social programs and civic
promotions. However, the Florida Attorney Generals conclusion is very clear and speaks for itself:
grants to entities which promote tourism and economic development, as well as to non profits
providing socially beneficial programs, would appear outside the scope of the community
redevelopment act. As the City Attorney is likely aware, while not binding law, a court would
consider the opinion as persuasive.
38
More importantly, the opinion of the Attorney General is cited in
this report because it should be taken into consideration by the public as it evaluates the expenditures
of the CRA. The OIG recommends that, should the CRA genuinely feel that a more specific opinion
is warranted, it may request an advisory opinion from the Attorney General based on the facts as they
pertain to it, thereby promoting public confidence and transparency.

37
Sections 12.01(A)(3) and 12.01(B)(1)(a) of the Charter of Broward County.
38
The AGO has also been relied upon by State of Florida Auditor General in its review of other CRAs. See Report No.
2013-093, City of Hollywood and Redevelopment Agency: Operational Audit.

OIG 11-020
April 18, 2013
Page 51 of 56
Mayor Cooper, the City Attorney, and Ms. Ladolcetta also claim that the OIGs finding that CRA
funds were improperly used to repay the Bonds is incorrect. First, the City Attorney erroneously
claims that the OIG failed to note that the context of Ms. Crichtons remarks at the August 2012
Commission meeting was funding the overall Park Plan.
39
Regardless, this reports description of
that meeting was included to highlight the fact that, although an option to fund external parks via the
Bonds was discussed, there was no mention that adoption of that option would require the City to fund
a pro-rata share of the Bonds repayment. It was the Citys failure to identify and consider that
repayment obligation that gave rise, in part, to the concerns expressed by the OIG in its November 5,
2012 letter. Second, the City Attorneys contention that the issue of financing the Parks Plan had been
addressed in November 2011 is refuted by the fact that no mention of the 2007A Revenue Bonds was
found in any November 2011 Commission or CRA meetings agendas, minutes, or videotapes.
Moreover, had such discussions occurred, they would presumably have been prominently referenced
in the Citys response to the OIG letter and in the combined response to the preliminary version of this
report. Third, the City Attorney embraces Ms. Crichtons hindsight contentionalthough utterly
unsupported by documents, records of public discussion, or interview statements which pre-date the
OIGs letterthat it was nevertheless understood by her, and the City Commission, that the City
would pay its pro-rata share of debt service. Finally, none of the respondents address the plain fact
that $416,365 in CRA fundsdeemed negligible by Ms. Crichtonhave already been expended on
parks outside the CRA boundaries, but no present or future repayment of those funds by the City was
documented or discussed by the Commission in public meetings prior to the OIGs inquiries.

Ms. Ladolcetta claims that her statement that the City intended to solely use CRA funds to repay the
bonds was taken somewhat out of context, because the first purchase made from the bond proceeds
for Bluesten Parkwould have taken until 2024 to be fully paid from CRA funds. She admits,
though, that until that time, it is correct that the intent was to make the repayments from CRA funds,
(emphasis added), in direct contravention with the City Attorneys contention that such was never the
understanding. Ms. Ladolcetta also newly suggests that since the CRA would sunset in 2027, prior to
the due date of the Bonds repayments, all repayments after that date would necessarily be funded by
the City, a position not contemplated by either the evidence or the submissions of her co-respondents.

Below are additional summaries of the responses:

1. Response of William Julian

In his response, Commissioner J ulian states that the OIGs summary of his interview was correct,
and told exactly as I have stated, fair and balanced. Commissioner J ulian also states that in his
opinion, the preliminary version of the report depicted a very good picture of our CRA from the
start, and to the end of your findings.

39
See Ms. Crichtons interview summary, at page 35, which includes the following: Ms. Crichton stated that these
comments were made in the context of a discussion concerning the total dollar amount of an option to propose a
referendum for a general obligation bond to fund the entire parks plan. Her wording concerning reduction of the total
number of the bond issuance referred to the total amount of the new bond option.

OIG 11-020
April 18, 2013
Page 52 of 56
2. Response of Joy Cooper

In her response, Mayor Cooper additionally states that she took matters pertaining to oversight
very seriously and that many of the observations made in the preliminary report have already been
addressed by the City and the CRA. She also states that the CRA Board always voted in the
presence of legal counsel to ensure compliance with Chapter 163. Although she had previously
stated to OIG Special Agents that she believed AGO 2010-40 authorized expenditures for socially
beneficial programs and civic promotions, Mayor Cooper now observes that the AGO narrowly
defines CRA spending activities and is not binding law. Instead, she states that Chapter 163
provides fairly broad language and flexibility to eradicate slum and blight.

Mayor Cooper states that the City had not developed a plan to pay for parks outside of the CRA
and that there was never and never would be a time that the CRA would spend money on bricks
and mortar outside of the CRA. She also states that according to the CRAs legal counsel, grants
to outside agencies were permitted, although she does not otherwise identify those agencies.
She also stresses that the nonprofits the City has partnered with have kept children off the streets
and people employed. Mayor Cooper opines that the DOI loan was not gross mismanagement
because it was made to establish a minority-owned start-up business in the core of the CRAs
blighted area. She also notes that BIPs will have inherent risk by the nature of them being
located in the CRA, and not being a municipal function.

Mayor Cooper states her belief that the preliminary report inaccurately suggested that the SBREP
was established to benefit one particular business, and she acknowledges that salaries are now
considered as part of the loan evaluation process. She also states that she disagreed with the OIGs
conclusions regarding the HVM purchase because, as she stresses, the public was never denied
access to the process. She is pleased that the OIG did not find that the CRA overpaid for the
property.

3. Response of the City and the CRA

The City Attorney additionally acknowledges that there have been years of instability in staffing
that has led to ineffective management of the CRA, and she describes numerous managerial
changes that had already been implemented which comport with one of the OIGs preliminary
recommendations. She also explains that the CRA has now implemented a formalized grant
solicitation procedure in order to provide a more transparent and standardized grant process, while
claiming that such an improvement is not legally required. Similarly, she acknowledges that
although not legally required, best practice by the CRA would be to formally verify and monitor
the performance of the recipients of charitable donations.

With regard to gross mismanagement of the CRAs loan programs, the City Attorney opines that
the OIG fails to understand the CRAs need for flexibility, so that sometimes loans will be
required to be made to those not otherwise qualified to receive institutional financing, and the
subsequent financial losses incurred by the CRA do not necessarily constitute gross

OIG 11-020
April 18, 2013
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mismanagement. With regard to the purchase of the Ben Gamla property, she states that [t]he
City owns the fact that greater communication should have taken place between Mr. Antonio, Dr.
J ackson, and Ms. Ladolcetta. The City Attorney stresses, however, that the City had a right to rely
upon the performance of those professionals, which it did to its detriment.

4. Response of Patricia Ladolcetta

Ms. Ladolcetta additionally states that she does not recall her conversation with Dr. J ackson
regarding account numbers but admitted that it is possible that a conversation of where to find
funding for potential land acquisition ensued. She states that she had not seen the staff report
regarding the Ben Gamla purchase but that if she had, she would have instantly identified several
errors that it contained.

Ms. Ladolcetta states that she took offense at Commissioner Londons comment that the City and
the CRA have misspent millions of dollars over the years that have not been accounted for. She
notes that multiple CPA firms over the years have reviewed the CRA as a major fund and found no
occurrences of misappropriation, misspending, or fraudulent activity as proposed by Mr.
London. She also states that in response to a similar accusation made several years ago, she
personally created a spreadsheet that detailed the sources and disposition of every penny of CRA
revenue.

5. Response of Dwayne Michael Good

In his response, Mr. Good notes that when he met with OIG Special Agents during the
investigation over two years had lapsed since the time of his employment, so that he was not as
familiar with the facts and Chapter 163 as he had previously been. He states that it was incorrect
to assume that there were no additional discussions about the HVM purchase, although he was
unable to specifically identify any. He also explains that his merging of the CRA with the DSD
was no different than if he had, as CRA Executive Director, approved a CRA project and assigned
it to the Public Works Department, insofar as he would remain responsible for overall
management.

Mr. Good states his belief that the CRA Board could, generally, appropriately waive loan program
requirements when deemed necessary. Specifically, he observes that the DOI loan was properly
made after an appropriate exercise of due diligence, but that it was unfortunate that there was
some paperwork that had not been signed, and that if Mr. Hardwick were alive this would not be
an issue. He also observes that based on the information provided to CRA officials and the
economic recession, the [Sun Times] loan was justified.

Mr. Good now disputes, based upon a review of my notes, his previous assertion that the CRAs
funding of the fireworks promotion was improper. He also states that he did not rely upon Ms.
Ladolcetta but rather her staff. Finally, he denies that any knowing gross mismanagement

OIG 11-020
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occurred but suggested that Broward County should sponsor a series of workshops to provide
specific guidance on the appropriate use of CRA funds.

6. Response of Deborah Brown

Dr. Brown, through her attorney, submitted a response which challenges both the integrity of the
OIG investigation and our evidentiary findings. Her submission does not alter our determination
that there is probable cause to believe that Dr. Brown may have engaged in criminal misconduct.

Dr. Browns submission begins by lauding her career as an educator and community mentor and
extolling PCAs record of positive, measurable results. She claims that the preliminary report is
grossly false and misleading because, at footnote 13, it fails to credit PCA for documenting its
endeavors; the response includes twelve attachments that purport to do so.
40
Dr. Brown ignores
the fact thatas described in both the preliminary and final versions of the report in the second
sentence, immediately preceding footnote 12the OIG requested that [PCA] provide documents
and records that evidenced the manner in which they spent the CRA funds they received. A copy
of the OIGs document request, dated J une 12, 2012, is attached as Exhibit 10. Of the 68 pages
now attached to Dr. Browns response, only 15 were previously provided to the OIG in response to
that request. Indeed, Dr. Brown previously informed OIG Special Agents that some of the
documents responsive to the request had been stolen from her car, while it was parked at the PCA,
some eighteen months previously.
41
(See J uly 31, 2012 OIG investigative memorandum attached
as Exhibit 11). A review of the attachments themselves, which consist largely of photos,
brochures, other public relations materials, and fiscal reports not covering the time period in
question, reveals that they provide little support for Dr. Browns contention.

In her response, Dr. Brown describes her efforts to cooperate with the investigation and be helpful
to the OIG. She claims that OIG Special Agents rebuffed her assistance and improperly
interviewed her. Her claims are meritless. To the contrary, as noted in the OIGs October 17,
2012 letter to Dr. Brown (Exhibit 12), the OIG was forced to make repeated requests to interview
Dr. Brown, who was neither forthcoming with her time nor, as described above, the PCAs
documents. The J uly 31, 2012 OIG investigative memorandum further demonstrates that OIG
Special Agents had attempted for months to plainly and patiently explain the document production
and interview process to Dr. Brown. Accordingly, her complaint that she was improperly
inundated with financial questions without having supportive backup to review for her interview
is simply disingenuous.

Similarly, Dr. Browns claim that she was improperly denied the assistance of an accountant
during her interview is unsupportable. First, OIG Special Agents had already informed her that
she could certainly have an attorney present during her interviewa benefit she declined to avail

40
The attachments are so voluminous that they have not been reproduced and attached to the paper version of this report.
They may be viewed by accessing the electronic version at www.broward.org/inspectorgeneral/Pages/Reports.aspx.
41
In response to an inquiry from the OIG, the Hallandale Police Department indicated that it had no record of a vehicle
break-in at the PCA property.

OIG 11-020
April 18, 2013
Page 55 of 56
herself ofbut not any other person, whether it be an accountant or another co-worker, such as her
brother.
42
Accordingly, when she did consent to be interviewed, she had no basis to later claim
surprise that she would be interviewed alone. Second, she admitted she would be responsible for
any problems with the bank account because she had only recently hired the accountant. Finally,
although the attorney strained to characterize the interview as an audit and declared that his
client is not a financial or numbers person, the inquiry regarding the field trip was, in fact,
merely a series of questions about expenditures from a bank account which Dr. Brown admitted
she solely administered.

Dr. Brown also claims that every expenditure for the [Washington, D.C. field trip] was properly
and appropriately documented, so that the OIGs finding of probable cause is inaccurate and
unsupported. To advance her claim, she produced a spreadsheet (Attachment 1 to Dr. Browns
Response) which purports to provide a detailed report of expenses for the field trip. Significantly,
she declined to produce any of the records, such as bank account records or receipts, upon which
the spreadsheet appears to be based. In addition, the spreadsheet represents that virtually all of the
expenses for the trip were paid for via Zamars Wachovia accountrather than PCAs Bank of
America account, into which the $5,000 in question was depositeddespite the fact that Dr.
Brown had told the OIG that Zamar had ceased functioning in 2008. In fact, when Dr. Brown was
specifically asked by OIG Special agents if there were any other bank accounts or credit cards that
were used to pay for field trip expenses, she told the OIG that there were no other accounts. The
spreadsheet also reflects that almost a third of the expenses$5,400 for bus transportationwere
paid by check, even though Dr. Brown informed OIG Special agents that she paid those expenses
in cash. In conjunction with the spreadsheet, Dr. Brown presents a theory of funds transfers which
purports to account for proper handling and expenditure of all the funds PCA received. In light of
Dr. Browns contradictory statements and absent access to the purported supporting materials, the
OIG cannot alter its probable cause finding.

CONCLUSIONS AND RECOMMENDATIONS

The OIG investigation revealed that City and CRA officials have grossly mismanaged the CRA,
primarily because they viewedand treatedTIF monies as fungible assets of the Hallandale Beach
public fisc. As a result, until recently, they failed to institute any measures of CRA independence
which may have acted as a check on the improper use of CRA TIF funds.

It is becoming increasingly apparent that the gross mismanagement of CRA funds by a Broward
County municipality is not a unique occurrence. Within the past year, the OIG has determined that

42
It is well-settled that [o]ne of the basic rules [of investigation] is to question only one person at a time. The testimony
of one respondent will invariably influence the testimony of another. There are few hard and fast rules, but this is one of
them. Association of Certified Fraud Examiners, Fraud Examiners Manual, Sec. 3.214 (2012). When Dr. Brown
appeared for her interview on September 18, 2012 with her brother and the accountant, OIG Special Agents explained that
neither could accompany her during her interview. After consulting with the accountant, Dr. Brown requested that the
interview be rescheduled so that she could consult an attorney. When she eventually returned for her interview on October
25, 2012, she explicitly waived the presence of an attorney.

OIG 11-020
April 18, 2013
Page 56 of 56
officials of the City of Lauderdale Lakes misspent over $2.5 million in CRA funds. More recently, the
Florida Auditor General identified several significant expenditures made by the City of Hollywood
CRA that were not in accordance with Chapter 163 or the approved CRA plans, including payments
for improvements outside the CRA boundaries, payments for general government operating expenses,
and payments for promotional activities that were beyond the scope of Chapter 163. The OIG will
continue to examine the expenditure of CRA funds by municipalities.

While we are encouraged by the remedial steps taken by the City and the CRA in the last year, the
OIG remains concerned that the City has not acknowledged the statutory limits on the use of TIF funds
diverted to the CRA. The CRA must also continue to make strides to ensure that those funds are
administered in a manner that promotes accountability and transparency. The OIG makes the
following recommendations, the focus of which are to further embrace and ensure the independence of
the CRA:

1. The CRA should take considerable steps to ensure the retention of a stable CRA staff.
Whether the CRA Executive Director duties remain with the City Manager or are again
filled by an independent officer, the CRA should incorporate some level of independent
management for CRA issues.

2. The CRA should avail itself of training designed to strengthen the understanding of
Chapter 163, its requirements, and its limitations on spending.

3. The CRA should reevaluate its current Community Partnership Grant program, which
replaces the former charitable donation program, for compliance with Chapter 163.

4. CRA staff must be empowered to ensure compliance with the requirements of Chapter 163.

5. The City and the CRA should determine whether the current balance of the RTF accurately
reflects the amount of funds due to the CRA and, if not, promptly effect reconciliation.

6. The CRA should diligently monitor the expenditure of funds.

The OIG requests that we are provided with a status report in 60 days, or by J uly 16, 2013, regarding
the adoption and implementation of these recommendations.

Finally, the OIG believes that it is in the interest of Broward Countyin light of the TIF funds it
provides to various CRAsto independently determine whether the expenditures of those funds are
within the scope of Chapter 163. Accordingly, by way of this report, the OIG recommends that it
determine what legal options are available to prevent the ongoing abuse of the CRA process and
recover those funds that may have been misspent.

OIG 11-020
EXHIBIT 1
DATE:
TO:
FROM:
SUBJECT:
CITY OF HALLANDALE BEACH, FLORIDA
MEMORANDUM
CM12-105
June 27, 2012
Honorable Mayor and City C o m m ~
Renee Crichton, City Manager \Y
June 20, 2012 City Commission Meeting - Request for Information
During the June 20, City Commission Meeting Commissioner London requested
information related to updates to the Hallandale Beach CRA Plan from 2001 to 2007.
Accordingly, attached is the requested information, organized as Exhibits 1-111. While
researching this document request staff was unable to locate CRA Long Range Plans from
2005-2011. It seems that the City Commission and/or CRA Board of Directors adopted a
CRA Long Range Plan in 2001 and 2004, with no subsequent plans formally adopted until
2012. Following is a brief description of the attached documents.
EXHIBIT 1
Memorandum dated November 13, 2000, from Mayor Arnold Lanner to City
Commission calling for a special meeting of the CRA Board of Directors on
December 14, 2000, to discuss the CRA philosophy, program funding and
long range plan .
Staff report and backup documentation dated December 7, 2000, from E.
Dent McGough, Director, Central Services Department (at the time staff
member responsible for CRA activities).
Minutes of the December 14, 2000, Special Meeting of the CRA Board of
Directors approving the proposed long range plan for the CRA.
Memorandum dated December 22, 2000, from Director E. Dent McGough
transmitting the annual update to the CRA Plan based on the above actions:
December 2000 CRA Plan is attached to memorandum.
EXHIBIT II
Memorandum dated January 19, 2002, from Director E. Dent McGough
transmitting the annual update to the CRA Plan based on the above actions
and FY02 adopted budget: December 2001 CRA Plan is attached to
memorandum.
1o: HonoraDJe Mayor ana ~ commisswn
From: Renee Crichton, City .nager
Re: June 20, 2012 Commission Meeting, Request for Information Page2
EXHIBIT Ill
Memorandum dated November 23, 2004, from City Manager Mike Good to
City Commission as backup for special meeting to discuss the proposed
CRA long range plan.
Minutes from December 1, 2004, Special Meeting approving proposed CRA
Plan and indicating that the plan will be revised from a 1 0-year Plan to a 5
year Plan.
Finally, it should also be noted that although it appears that the CRA Long Range Plan
was not updated after 2004, on an annual basis, and Pursuant to Chapter 163 F.S. , the
CRA Annual Report was approved by the CRA Board of Directors and submitted to the
State of Florida and to each taxing authority which provides tax increment funding to the
Agency. Should the City Commission need copies of the annual plans, these can be
provided.
Should you have any questions, do not hesitate to contact me.
Attachments
RC/nmr
OIG 11-020
EXHIBIT 2
. . .
' ' I
- ~ - - - - 1 ~ - - - - - - - - - - -
Memorandum
CRA Initial Assessment
,,
CITY OF HALLANDALE BEACH
MEMORANDUM
D February 28, 2011
TO:
Mark Antonio, City Manager z
FROM: Alvin B. Jackson, Jr., CRA Director f[)
SUBJECT: Community Redevelopment Agency Assessment & Recommended
Approach
ATE:
The Community Redevelopment Agency (CRA) Director has established a series of
observations, goals and recommendations in an effort to improve the overall image,
function arid services provided by CRA staff.
Staff respectfully requests review of these recommendations.
. t ,... . . ...l-,..,k

T\ ..J
Key Poms: ,yfrf
The CRA needs to operate as a separate entity from the City; however in p/
partnership with City programs and services provided. The CRA should have a
1 Master Service agreement with the City for operating expenses, office space,
and other services the City provides within the CRA boundaries.
The City Commission sitting as the CRA Board needs to cohsider havinY
separate CRA Board meetings (maybe quarterly or as needed).
The CRA needs to contract for certain services from various City departments
through inter-local agreements and/or Memorandum of Understanding (i.e.Jtvl/
Community Policing, Storm Water retrofitting, Dedicated Code compliance etc. ) /
Update CRA Plan. ( prov,dLl- -hv...t....\w'\Q_.) .,.-
Link CRA Expenditures to CRA Goals & Objectives. ...,
Complete Economic Development Plan.
OBSERVATIONS:
Operations
/.1. There is no systematic method for filing documents (i.e. each Real Estate
transactions should have specific documents such as appraisal, contract for sale,
HUD Statement, all loan program applications) .
Records and files are scattered; there is no central location.
13. Data for activities are currently in numerous excel spreadsheets which are in
.cumbeLs_om_. . ..... .
.
Mark Antonio, City Manager
CRA Assessment & Recommended Approach
February 28, 201 1
Page 2 of 7

/ 4. No annual priorities aligned with programs and expenditures.
;5. Reporting is reactive, not measurable or quantitative as performance indicators.
-. No Measurable objectives for programs to determine if CRA investments are
reducing and/or eliminating "slum and blight" conditions.
I 7. Too many programs without clear objectives arid measures.-
Ct. J Ia. The CRA has funded good projects, especially infrastructure, but have not done
a good job reporting accomplishments and results to City Commission/CRA
Board and citizens.
/ 9. Reporting seems to be for process and not for measurable results and
rtV1 effectiveness.
aL -0 feol,...l/d.,d_19. Staff is overwhelmed with paperwork.
0
6'-u.""'- '1'11. Customer service quality is not the best (i.e. due to excessive interruptions and
complicated processes, staff has a daily backlog of unreturned phone calls and
lengthy delays for follow-up). .
A2. No dedicated and efficient administrative support. - (rov,c)A_ .spu..&
1
I. "J.... \o
13. The CRA plan has too many general objectives. Goals and objectives are not
fully aligned with programs and expenditures.
/ 14. No consistent application approval criteria for business loans.
/15. Applicant grants or loan application approval/denial time frames not fully defined .
1 16. No time frame for application approvals (customer seNice measure).
; 17. The Commission, city departments and community members do not full y the
objectives of the CRA and the links between program funding and results.
Programs and Activities - Expenditures
r1. Too many programs.
/ 2. No economic development plan.
/ 3. No affordable housing plan.
4 No land acquisition plan.
/5. No accountability for other departments utilizing CRA funds (i.e. reports,
accomplishments or authorization).
/ 6. No programmatic personnel plans for utilizing CRA funding for staffing and
1 programs within CRA.
7. No programmatic evaluations for effectiveness.
APPROACH:
---
Hire a . dministrative assistant
1 To organize all files (electronic and physical ) to ensure all real estate
transactions are compliant and all proper documentation is maintained in loan
program files.
'(' \ vo' 2. To develop a project tracking and evaluation system .
3. To ensure that all applications are complete and all required documents are
u / included in files.
ov,
4. To assist team with timely response and follow-up to citizens, customers and City
staff.
Define CRA staff responsibilities
. _ _. t _ CJM .. Cjty Manager and City Commission interaction, develop
public/public partnershi ps: estaf:>lTsE vision :-monitor and repo_rt_ accomplishments-,
0
... .
February 28, 2011
Page 3 of 7
governmental relations, serve as liaison for Broward Alliance, community and
neighborhood relations, serve as ombudsman for the business community,
(northwest quadrant & villages and Dixie highway), virtual business incubator,
and chamber of commerce.
2. CRA Manager- manage daily operations, oversee all programs ( including PR
and branding), serves as contact person for all technical assistance and
consultants, ensure that all application processes are user friendly, responsible
for all tourist related development activities, Fashion Row, manage all internal
reporting, assist with agenda development, manage office staff.
3. CRA Specialist - Processing applications, applicant f ollow-up, maintain &
update CRA website, manage customer walk-in visits, inquiries, manage
software system that maintains CRA application files, ensure that all appli cations
are user friendly, process all loan documentation (i.e. note, mortgage,
satisfaction of lien, pay off request)
Complete Economic Development Analysis for the City of Hallandale Beach.
A request will be submitted to the City Manager in March 2011 . Staff will be
recommending hiring Paul Lambert of Lambert Adviso ry, back up to support the
recommendation will be forthcoming. We are targeting May 2011 to have the
analysis completed.
This report will profile trends most important to understanding past political,
social and economic changes and their implications for future growth and
development. The study will examine histori cal and current population trends,
economic base and labor profile, land use and zoning issues and trends,
. . ,t-SL- .. government's role in growth and development , competitive assessment and
target industry analysis.
-"'
As a result of the study staff will have a better approach to develop successful
branding opportunities (i.e. collateral, brochure) . In addition, CRA Director will
begin way finding system planning.

. RECOMMENDATION:
Impose a sixty (60) day moratorium on new applications for all programs
except Highland Park Village applicants.
Finish processing requests on hand and eliminate backlogs

Evaluate existing programs and make recommendations to City
Commission/CRA Board for changes, amendments and/or elimination
(develop a set of priorities).

Ensure that all guidelines, policies and applications are clear and user
friendly.

Establish program objectives and outcome measures .

Amend and update the CRA plans with precise goals and clear strategic
objectives, strategies and quantitative outcome measures.

Ensure programs, activities and expenditures align with CRA goals.
- NEW CRkPROGRAM 0U.TLINE+
.
MarkAntonio, City Manager
February 28, 2011
Page 4 of 7
1. New Business and Industry recruitment (to create jobs, diversify business
base and expand tax roll)
a) Recruit target industries as defined by Broward County, Enterprise
Florida, and the State of Florida

b) Develop an economic development partnership with Broward Alliance,
Workforce One of Broward County, Enterprise Florida and other state and

regional organizations involved in the promotion of economic
;;'
development in Florida.
c) Establish a resource center that provides public access to the following
economic development information: data base of commercial and
industrial properties, business incentives and financing options, economic
and demographic data, infrastructure availability, and information on job
training and educational opportunities.
d) Partner with the City of Hallandale Beach Chamber of Commerce to
introduce and promote tourism a distribution system involving
state, national and international locations. Look for opportunities to
highlight the City of Hallandale Beach and jointly market the city,
internationally.
e) The CRA will partner with the Development Services Department to make
regulations easier to understand and assist economic development
proposals through the review process . Create a "Rapid Response Team"
for planning, zoning, and building divisions, Fire Department, Department
of Public Works, Utilities and Engineering and CRA. This team will meet
with business owners in a pre-application conference to discuss
processes and requirements.
2. Retain and Expand Existing business (develop incentives and small
business techni cal assistance programs which are designed to encourage the
retention and expansion of the City's existing businesses).
a)
Develop business retention and expansion programs. These programs
Vy;r-r
will include incentives for existing industry retention and expansion,
development review assistance, and assessment of industry needs and
information about other opportunities for assistance.
Assess the existing business needs. Contract with the Chamber to
conduct a survey of existing businesses to determine what services are
needed in order to continue to do business in Hallandale Beach.
c) Determine business incentive programs that would provide financial, in
kind or other incentives to assist in the retention and expansion of existing
businesses.
d) The CRA office will assist existing industry with retention and expansion
issues and provide development review assistance.
e) The CRA shall provide Chamber of Commerce and business
organizations with information for publication; including contact
information, a listing of business incentives, available financing,
.. . .... .. _ ....
. ,
Mark-Antonio, City Manager
February 28, 2011
Page 5 of 7
0 The CRA will publicize the positive economic impact of the Community's
existing businesses. The CRA will partner with the Chamber to develop
industry appreciation week as an opportunity to inform citizens, the
media, businesses; and local government and their employees of the
importance of business retention and expansion to the community. The
CRA will partner with Code Compliance Division to assist existing
businesses to el iminate code violations.
g) Inform businesses of new regulations (By creating a new Business Guide
to assist businesses with opening operations in the City).
3. Neighborhood Improvement
a) Partner with the Department of Public Works to identify capital
infrastructure improvements (roads, sidewalks, streetscapes, pedestrian
enhancements).
b) Partner with Parks and Recreation to identify parks development and
maintenance, etc.
c) Partner with Department of Public Works for storm water management
projects.
d) Partner with Department of Public Works and the Historic Preservation
Committee for historic preservation, and restoration.
4. Housing (Create safe, affordable housing for low-to-moderate income
fam ilies and the elderly).
!\ .
-t" . .5rz HtJ-->irJ; .5-R
a) Update affordable housing plans.

'l "''''t- , ._......... / d J
b) Update Housing rehabilitation programs (painting, energy savings, and
code compliance).
c) Partner with Human Services or, a non-profit organization to provide a
more comprehensive homeownership training program.
d) Final ize First Time Home Buyers Program Policy.
e) Partner with developers to create a public/private partnership to increase
affordable housing supply by utilizing creative approaches.
5. Public Safety
a) Partner with the Police Department for additional police servi ces to create
a drug and crime free environment and to provide for the safety and
protection of the property owners, business owners, residents and
patrons of businesses located with the redevelopment areas (i.e.
community policing).
b) Partner with Pol ice department for Police Athletic League to enhance
youth services.
6. Community Outreach Services
Continue to partner with Human Services Department or Non-profits for
J.ob_tr.C)i.ojng. - ._.......... .... .. . ._............. _
Partner with Human Services for other programs to be determined.
. . ..
,. .
CRA Assessment &Recommended Approach
February 28, 2011
Page 6 of 7
Partner with Human Services to conduct human services and housing
surveys to assess the socio economic status and quality of life of the
elderly and youths.
Other CRA initiatives
Develop a full range of business incentives in partnership with Broward
County and Enterprise Florida
Partner with development service to develop fast track development
review process.
Partner with Development Services to project a customer service attitude.
Initiate the creation of a banking consortium for funding affordable home
ownership.
Develop pool of local businesses for City purchase of products _and
services (patronizing local businesses) .
Provide pool of vendors to prime contractors and existing businesses
buying goods and services. Encourage major developers and businesses
to purchase locally when possible.
Create a banking consortium and other funding sources to finance
business loans.
Create small business virtual incubator to provide re-requisite evaluation,
technical assistance and mentorship.
Partner with Chamber to host information workshop for business
community to present findings from the Economic Development analysis.
Partner with the Chamber to finalize goals, objectives and strategies for
the economic development plan.
Align expenditures with the redevelopment plan.
Continuously education and explain the purpose of CRA Create signage
for CRA funded projects.
\\e\ \e)
r(ij
CRA staff will focus on a new measurable approach to be provided in reports,
meeting with the City Commission/CRA Board and cqmmunity events. The
following will be measures for CRA:
1. Number of new businesses, new construction, new jobs (total payroll)
expanded tax roll and capital investment.
2. Number of existing businesses that added value, created new jobs and
new product lines or expanded services.
3. Number of enhancements lqcal businesses utilized on projects (i .e.,
____Jm.Plf>Yed aesthetics) .
4. .. - --- -- -- -- -
Separate CRA from Commission.
Conduct strategic planning workshop with Board.
., - .:
February 28, 2011
Page 7 of 7
5. Number of families in homes (first time home buyers).
6. Number of City's investments, addition to tax rolls.
7. Number of reduction in code incompliance.
8. Number of energy efficient houses.
9. Reduction in crime activities and fires.
1 0. Number prepared for home ownership.
11. The Creation of a banking consortium for financing affordable
homeownership mortgages.
Prepared By:
Reviewed:
3-9- \\
Date
_ _ Disapproved __Hold for Discussion
+,.
"'u.1B c.
\
:::j !")

2
. , . - . - '"'
OIG 11-020
EXHIBIT 3
EXHIBIT E
QUARTERLY PROGRESS REPORT
AgencyName __ _____________________________
Reporting P.e.rioct: 10/1/ 11-12/31/11
qate Report Due: _ ....:.:..:.1 11
A P . I f
roJect n ormation:
Project Name lntergenerational Program
Person Preparing
the Report/ Job Title
Lowell Lampkin, Director
.I
Phone#
954 253 8198
Project Start-Up October 13, 2011
Date
Number of Hallandale Beach Non- Hallandale Beach
participants served Residents Residents
durinQ thisperiod 39
Participant Status to Active Terminations:
Date 39 Successful 39
Project Completion 9/30/2012 Number Served
Date 39
Amended
Completion Date
(if applicable)
B. Project Cost
Total Project
Cost
$50,00
Funds
Expended to
Date
Percentage
City Funding $ 50,000 $ 10,000 20%
Other Funding $ $
%
(specify source
below)
Page 1 of 1
OIG 11-020
EXHIBIT4
Advisory Legal Opinion - CoP' mity Redevelopment, promotional acf : ~ i e s Page 1 of6
Florida Attorney General
Advisory Legal Opinion
Number: AGO 2010-40
Date: September 27, 2010
Subject: Community Redevelopment, promotional activities
Mr . Lonnie Groot
1001 Heathrow Park Lane
Suite 4001
Lake Mary , Florida 32746
RE: COMMUNITY REDEVELOPMENT - MUNICIPALITIES - use of community
redevelopment funds for promotional activities. Part III, Ch. 163,
Fla. Stat .
Dear Mr . Groot :
On behalf of the City of Sanford Commission, you ask substantially the
following question:
May the City of Sanford's Community Redevelopment Agency expend funds
for festivals or street parties designed to promote tourism and
economic development, advertisements for such events, grants to
entities which promote tourism and economic development , and grants to
non-profit entities providing socially beneficial programs?
In sum:
Promoting the use of a redeveloped area would appear to fall within
the purposes of the community redevelopment act . Use of community
redevelopment funds to pay entities promoting tourism or providing
socially beneficial programs , however, does not have an apparent nexus
to carrying out the purposes of the community redevelopment act .
You state that the City of Sanford has implemented the provisions of
the Community Redevelopment Act of 1969, Part III, Chapter 163,
Florida Statutes, in creating the City of Sanford Community
Redevelopment Agency (SCRA) . The SCRA proposes to use funds to stage
festivals or street parties to promote tourism and economic
development, to provide grants to entities that encourage tourism and
economic development, and to provide grants to non-profit entities
which provide a wide range of socially beneficial programs. The
question has arisen, however , whether such expenditures may be paid by
the SCRA.
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Advisory Legal Opinion- Cop- mity Redevelopment, promotional act:- :t.ies Page 2 of 6
Pursuant to the act , a local government may determine that an area is
a slum or is blighted and designate such area as appropriate for
community redevelopment. [1] The Legislature has declared that slum and
blighted areas constitute a serious and growing menace to the public
health, safety, morals, and welfare of the residents of the state . [2]
To address this matter, local governments , upon adoption of a
resolution based upon legislative findings that the conditions in an
area meet specified criteria described in the act, may create a
community redevelopment agency. [3] The agency' s purpose is to carry
out community redevelopment purposes set forth in the act . [4]
"Community redevelopment" or "redevelopment" is defined in the act as:
"undertakings, activities, or projects of a county, municipality, or
community redevelopment agency in a community redevelopment area for
the elimination and prevention of the development or spread of slums
and blight, or for the reduction or prevention of crime, or for the
provision of affordable housing, whether for rent or for sale, to
residents of low or moderate income, including the elderly, and may
include slum clearance and redevelopment in a community redevelopment
area or rehabilitation and revitalization of coastal resort and
tourist areas that are deteriorating and economically distressed, or
rehabilitation or conservation in a community redevelopment area , or
any combination or part thereof , in accordance with a community
redevelopment plan and may include the preparation of such a plan . "[S]
Among the powers granted by the act to carry out community
redevelopment are: to make contracts ; to disseminate slum clearance
and community redevelopment information ; to undertake community
redevelopment and related activities ; [6] to furnish or repair streets ,
public utilities , playgrounds , and other public improvements ; to hold
or dispose of property for redevelopment . [7]
Section 163 . 387, Florida Statutes, establishes a redevelopment trust
fund for each community redevelopment agency created pursuant to
section 163 . 356, Florida Statutes , and provides for its annual
funding. Pursuant to subsection (1) of the statute, funds allocated to
and deposited into the fund shall be used by a community redevelopment
agency "to finance or refinance any community redevelopment it
undertakes pursuant to the approved community redevelopment plan."
The expenditure of moneys in the redevelopment trust fund is
specifically authorized by section 163 . 387(6), Florida Statutes, "for
undertakings of a community redevelopment agency as described in the
community redevelopment plan," including, but not limited to:
"(a) Administrative and overhead expenses necessary or inci dental to
the implementation of a community redevelopment plan adopted by the
agency .
(b) Expenses of redevelopment planning, surveys , and financial
analysi s, including the reimbursement of the governing body or the
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Advisory Legal Opinion - Cor 'Unity Redevelopment, promotional act= =ties Page 3 of 6
community redevelopment agency for such expenses incurred before the
redevelopment plan was approved and adopted.
(c) The acquisition of real property in the redevelopment area .
(d) The clearance and preparation of any redevelopment area for
redevelopment and relocation of site occupants within or outside the
community redevelopment area as provided in s. 163 . 370 .
(e) The repayment of principal and interest or any redemption premium
for loans, advances, bonds, bond anticipation notes, and any other
form of indebtedness.
(f) All expenses incidental to or connected with the issuance , sale,
redemption, retirement , or purchase of bonds , bond anticipation notes,
or other form of indebtedness, including funding of any reserve ,
redemption, or other fund or account provided for in the ordinance or
resolution authorizing such bonds, notes , or other form of
indebtedness.
(g) The development of affordable housing within the community
redevelopment area.
(h) The development of community policing innovations."
While the statute specifically states that the use of community
redevelopment trust funds is not limited to those purposes enumerated
therein, the community redevelopment agency is a statutorily created
administrative agency that may only exercise those powers that have
been expressly granted by statute or that are necessarily exercised in
order to carry out an express power . [8] Any reasonable doubt as to the
lawful existence of a particular power sought to be exercised must be
resolved against the exercise thereof . [9] Moreover , it is well settled
that legislative intent is the polestar that guides a court's
statutory construction analysis[10] and would, therefore, limit the
expenditures by the community redevelopment agency .
I would note that the Redevelopment Plan and Finding of Necessity for
the Lake Monroe Waterfront and Downtown Sanford Redevelopment Area[11]
contains a "Promotional Marketing" component, recognizing the
importance of funding for events, advertising and marketing to bring
people to the redevelopment area . The plan notes that the SCRA budget
is subject to approval by the City of Sanford. Therefore, ultimately,
it is a decision for the governing body of the City of Sanford to
determine whether promotional expenditures may be included in the SCRA
budget. Although a city has home rule powers , in matters involving the
imposition of a tax and the expenditure of the proceeds from such a
tax, the city must be able to point to statutory or constitutional
authority. [12] The courts of this state have recognized the general
rule that tax revenues must be expended for the purposes for which
they were collected, that is, funds raised by taxation for one purpose
cannot be diverted to another use. [13] In addition, this office has
stated, for example, that moneys collected pursuant to the original
ordinance imposing a tourist development tax could only be used to
accomplish the purposes set forth in the original plan for tourist
development and could not be expended for the purposes set forth in
the new ordinance or considered in a new tourist development plan. [14]
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As discussed above, it would appear that the primary focus of a
community redevelopment agency is to eliminate and prevent the
development or spread of slums and blight. This may be accomplished by
reducing or preventing crime, by providing affordable h0using,
clearing slums and redeveloping in a community redevelopment area, or
by rehabilitating or conserving in a community redevelopment area , or
any combination or part thereof . The enumerated uses of community
redevelopment trust fund moneys are likewise couched in terms of
redevelopment activities involving "bricks and mortar" in a manner of
speaking, rather than promotional campaigns to encourage people to
populate the area once the redevelopment has been accomplished.
However , to read the statute as precluding the promotion of a
redeveloped area once the infrastructure has been completed would be
narrowly viewing community redevelopment as a static process.
Accordingly , I cannot say that the use of community redevelopment
funds would be so limited that the expenditure of funds for the
promotion of a redeveloped area would be prohibited. However, grants
to entities which promote tourism and economic development , as well as
to nonprofits providing socially beneficial programs would appear
outside the scope of the community redevelopment act .
Sincerely,
Bill McCollum
Attorney General
BM/tals
[1] See s . 163 . 358, Fla . Stat .
[2] Section 163 . 335(1) , Fla . Stat .
[3] Section 163 . 355, Fla . Stat . Subsections 163.340(7) and (8), Fla .
Stat., provide definitions for " [s]lum area" and for "[b]lighted area"
for purposes of the act:
"(7) 'Slum area' means an area having physical or economic conditions
conducive to d i sease, infant mortality, juvenile delinquency , poverty,
or crime because there is a predominance of buildings or
improvements . . which are impaired by reason of dilapidation,
deterioration, age, or obsolescence , and exhibiting one or more of the
following factors :
(a) Inadequate provision for ventilation, light, air , sanitation, or
open spaces ;
(b) High density of population , compared to the population density of
adjacent areas within the county or municipality; and overcrowding, as
indicated by government-maintained statistics or other studies and the
requirements of the Florida Building Code ; or
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Advisory Legal Opinion- Cor- ' uni ty Redevelopment, promotional act= :ties Page 5 of 6
(c) The existence of conditions that endanger life or property by fire
or other causes .
(8) 'Blighted area' means an area in which there are a substantial
number of deteriorated, or deteriorating structures, in which
conditions, as indicated by government-maintained statistics or other
studies, are leading to economic distress or endanger life or
property , and in which two or more of the following factors are
present:
(a) Predominance of defective or inadequate street layout, parking
facilities, roadways , bridges, or public transportation facilities ;
(b) Aggregate assessed values of real property in the area for ad
valorem tax purposes have failed to show any appreciable increase over
the 5 years prior to the finding of such conditions;
(c) Faulty lot layout in relation to size, adequacy, accessibility, or
usefulness ;
(d) Unsanitary or unsafe conditions;
(e) Deterioration of site or other improvements;
(f) Inadequate and outdated building density patterns ;
(g) Falling lease rates per square foot of office, commercial, or
industrial space compared to the remainder of the county or
municipality;
(h) Tax or special assessment delinquency exceeding the fair value of
the land;
(i) Residential and commercial vacancy rates higher in the area than
in the remainder of the county or municipality;
(j) Incidence of crime in the area higher than in the remainder of the
county or municipality;
(k) Fire and emergency medical service calls to the area
proportionately higher than in the remainder of the county or
municipality;
(1) A greater number of violations of the Florida Building Code in the
area than the number of violations recorded in the remainder of the
county or municipality;
(m) Diversity of ownership or defective or unusual conditions of title
which prevent the free alienability of land within the deteriorated or
hazardous area ; or
(n) Governmentally owned property with adverse environmental
conditions caused by a public or private entity.
However, the term 'blighted area' also means any area in which at
least one of the factors identified in paragraphs (a) through (n) are
present and all taxing authorities subject to s . 163 . 387(2) (a) agree ,
either by interlocal agreement or agreements with the agency or by
resolution, that the area is blighted. Such agreement or resolution
shall only determine that the area is blighted. For purposes of
qualifying for the tax credits authorized in chapter 220, 'blighted
area' means an area as defined in this subsection."
[4] Section 163 . 356(1), Fla. Stat .
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(5] Section 163.340(9) , Fla . Stat .
[6] Section 163 . 340(12), Fla . Stat . , defines " [r]elated activities "
as : planning work for the preparation of a general neighborhood
redevelopment plan or for the preparation or completion of a
communitywide plan or program pursuant to s . 163 . 365 , Fla. Stat.;
functions related to the acquisition and disposal of real property;
development of affordable housing for residents of a redevelopment
area; and the development of community policing innovations.
[7] Sees . 163 . 370 , Fla . Stat ., which contains numerous other powers ,
none of which specifically include programs which would encompass a
street festival or party to promote tourism or community
redevelopment .
[8] See , e . g ., Gardinier, Inc . v . Department of
300 So . 2d 75 , 76 (Fla . 1st DCA 1974) ; v.
Estate Commissi on , 232 So . 2d 239 , 240 (Fla. 4th DCA 1970).
[9] See Drainage District of County v. State , 185 So.
123 , 129 (Fla . 1938) ; State ex Greenberg v. State Board
of Dentistry, 297 So . 2d 628 (Fla . 1st DCA 1974) , cert . dismissed, 300
So . 2d 900 (Fla . 1974) ; City of Cape v . GAC Inc . , of
281 So . 2d 493 (Fla . 1973) . And see, e.g. , Ops. Att'y Gen .
Fla . 02-30 (2002) and 04-48 (2004).
[10] See State v. Rife, 789 So . 2d 288 , 292 (Fla . 2001) ; v.
State , 721 So. 2d 1170 , 1172 (Fla . 1998) .
[11] Originally drafted November 21 , 1995 ; Last updated July 29 , 2009.
[12] See Contractors and Association of
County v . City of Dunedin, 329 So . 2d 314, 317 (Fla . 1976) . See
City of v . Birdsong Motors , Inc ., 261 So . 2d 1 (Fla . 1972)
(municipality's power to tax is subject to the restrictions in Art.
VII , s. 9 , Fla . Const . ).
[13] See Supreme Forest Woodmen v . Hobe Sound Company, 138 Fla .
141 , 189 So . 249 (1939) ; Dickinson v . Stone, 251 So. 2d 268 , 273-274
(Fla . 1971) (i t is a v i olation of an elemental principle in the
administration of public funds for one who is charged wi th the trust
of their proper expenditure not to apply those funds to the purposes
for which they are raised). And see Oven v . 106 Fla . 455 , 143
So . 588 (1932) ; v. 142 Fla . 756 , 196 So . 214 (Fla .
1940) .
[14] See Op. Att ' y Gen. Fla. 96-26 (1996). And see Ops. Atty Gen.
Fla . 86-39 (1986) , 82-54 (1982) , and 77-26 (1977) .
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OIG 11-020
EXHIBIT 5
November 5, 2012
Honorable Joy Cooper, Mayor, City of Hallandale Beach
and Members, Hallandale Beach City Commission
400 South Federal Highway
Hallandale Beach, FL 33009
By Hand Delivery
Re: Agenda Item 14C: Resolution Authorizing the Exploration of Revenue Bonds to Finance
Phase One of the Parks Master Plan
Dear Mayor and Commissioners:
This Wednesday, November 7, the City Commission is scheduled to consider adoption of a
resolution exploring the issuance of $12.7 million in revenue bonds to complete the funding. for
Phase One of the Citywide Parks Master Plan. In the course of our continuing investigation of
various allegations relating to Hallandale Beach, the Broward Office ofthe Inspector General
(OIG) has developed sigo.iJicant concerns which require the Commission's immediate attention.
Specifically, the item presently before the Commission contemplates the encumbrance of an
additional $12.7 million in debt to complete the $23.2 million required for Phase One. The OfG
has obtained substantial evidence that the funding appropriated for the capital improvements of
Joseph Scavo Park and South Beach Park, two parks included in Phase One, would constitute a
violation of the Florida Community Redevelopment Act, which requires that Community
Redevelopment Agency (CRA) funds should only be expended for capital improvements within
the CRA boundaries.
As stated in the staffs summary tor Item 14C, the funding source for the $5,347,000 of capital
improvements to the atoreri.1entioned parks is the 2007 A Bond. However, documents obtained
by the OfG indicate that the 2007 A Bond is paid for solely by funds from the Hallandale Beach
CRA. Upon questioning by OIG Special Agents, city and CRA officials have vel'ified that the
CRA is scheduled to pay the bond over 20 years, even though the parks in question are located
outside of the CRA boundaries. Therefore, the City will risk violation of Florida law if it
expends the funds as presently appropriated. The OIG is particularly concerned that city staff
have acted unilaterally in accessing the funds for city-not CRA-purposes and in doing so,
have neglected to consult the CRA Director.
John W. Scolt. lmpet.:lor General
One North University Drive. Suite Ill Plantnti on, f-lorida 33324 7873 Fax 954-357-7857
www.browardi g..org 954-357-TIPS
. .
Accordingly, the OIG strongly recommends that the Commission reconsider the existing
appropriation of2007A Bonds as the funding source for parks outside the CRA boundaries. We
also strongly recommend that the Commission reconsider the present plan for Phase One funding
prior to encumbering additional debt which may be insufficient to legally fund the planned
projects.
Sincerely,
JWS:wvd
cc: Renee Crichton, City M a n a g ~ r
Alvin Jackson, Jr., Executive Director. Hallandale Community Redevelopment Agency
13ROWARD OI G RECOMMENDATION TO THE BCC PMiE 2 OF 2
OIG 11-020
EXHIBIT 6

City ofChoice
Hallandale Beach, FL 33009-6433
Renee C. Crichton
Phone: (954) 458-3251
City Manager
Fax: (954) 457-1342
City Mgr. Fax: (954) 457-1454
November 6, 2012
Mr. John W. Scott
Broward Office of the Inspector General
One North University Drive, Suite 111
Plantation, Fl 33324
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Re: Agenda Item 14C: Resolution Authorizing the Exploration of Revenue Bonds to Finance Phase :One ofd
the Parks Master Plan c ;::J
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Dear Mr. Scott:
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The letter is in response to your correspondence dated November 5, 2012, regarding Agenda..1tem 14C,
scheduled to be heard on November 7, 2012, by the City of Hallandale Beach City Commission. In the
aforementioned correspondence, it seems that the Office of the Inspector General (OIG) has misrepresented
certain facts and linked two issues that are not in fact germane to the Resolution being considered under
item 14C. The item that is being discussed on November 7, addresses the issuance of additional debt to
support the construction of the Main Fire Station and additional land acquisition. It is clear in the staff report
(Exhibit 1) that the funding to support the debt service is not at all associated with Community
Redevelopment Agency dollars, as noted in Table Four.
Furthermore, the City must take the opportunity to clarify certain assertions made in your correspondence;
you state that:
"As stated in the staff summary for Item 14C, the funding source for $5,347,000 of capital
improvements to the aforementioned parks is the 2007A Bond. However, documents obtained by
the 0/G indicate that the 2007A Bond is paid for solely by funds from the Hallandale Beach CRA.
Upon questioning by the 0/G Special Agents, city and CRA officials have verified that the CRA is
scheduled to pay the bond over 20 years, even though the parks in question are located outside
of the CRA boundaries. Therefore, the City will risk violation of Florida law if it expended the
funds as presently appropriated. "
The facts are that in August of 2007, the City of Hallandale Beach issued $25M in bonds via Ordinance 2007
14 (Exhibit 2) for parks improvements and land acquisition. The bonds are in the name of the City and the
funds are secured by the City's covenant to budget and appropriate non-ad valorem revenue. The CRA is
repaying the City each year for the cost of the Debt Service. The aforementioned bonds are for a term of 20
years of which the CRA will pay all of the debt service until such time that the City completes construction of
Scavo and South Beach Parks in or after Fiscal Year 2015. After the completion of construction, the City will
begin to pay its pro-rata share of the annual debt service payment.
The amortization schedule and debt service payments for this bond will be split between the City and the
CRA (Exhibit 3) . The future schedule and the payments will be aligned with the location and amount of
project funding between the jurisdictions. More specifically, the CRA projects account for approximately
78% of the $25M 2007 Series A Bond and the projects located outside of the CRA represent 22%. As such, the
debt service payments will be split to ensure that the CRA pays only its pro-rata share (i.e. the cost of the
projects within the CRA) of the debt.
The documents to which you refer show debt service payments coming only from the CRA for two main
reasons; 1) Funds for Scavo and South Beach have not been drawn down from the Florida Municipal Loan
Council and; 2) The City will not begin debt service payments until the completion of the projects (est. on or
after FY 2015).
In an effort to ensure that the City is not being unreasonable in its accounting practice, City staff consulted
the City's auditing firm, Marcum LLP ., to ascertain the appropriateness of the aforementioned approach. The
auditors have advised that baring any violation of the bond covenants, this is a reasonable and appropriate
accounting methodology, the auditors written opinion is attached for your review (Exhibit 4).
Finally, in your November 5, 2012, correspondence you stated that:
"The 0/G is particularly concerned that city staff have acted unilaterally in accessing the funds
for city-not CRA purposes and in doing so, have neglected to consult the CRA Director."
The fact is that the City of Hallandale Beach City Commission voted to move forward on the construction of
Scavo, BF James, and South Beach Parks on July 14, 2011, and subsequently allocated funding to support the
development of those parks in November 16, 2011 (Exhibit 5). At which time, the CRA was under the
direction of then City Manager/CRA Executive Director Mark Antonio. After joining the City in January 17,
2011, Dr. Alvin Jackson reported to the City Manager/CRA Executive Di rector. As a point of clarification, Dr.
Jackson was not appointed as the Executive Director of the CRA until April 18, 2012, (Exhibit 6). Therefore,
the decision to move forward with these projects would not have rested with Dr. Jackson under the previous
governance structure of the CRA, nor would there be a requirement to "consult" the CRA Director as noted
above.
In closing, I would like to thank you and your staff for your continued vigilance in the City of Hallandale
Beach, we look forward to the conclusion of your investigation.
As always, please feel free to contact me if you have any questions or concerns.
C. The Honorable Mayor and City Commission
V. Lynn Whitfield, City Attorney
Dr. Alvin Jackson, Executive Director, Community Redevelopment Agency
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City of Hallandale Beach City Commission
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400 S. Federal Highway
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Agenda Cover Memo
Meeting
November 7, 2012
Fis.callmpact:
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Excellence in Government il(
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Sustainability
Economic Develo..................
Nante: Renee Cri chton, City Department:
Manager
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City Manager's Office
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF TH.E CITY OF
HALLANDALE BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXPLORE THE
ISSUANCE OF REVENUE BONDS IN THE AMOUNT OF TWELVE MILLION AND SEVEN
HUNDRED THOUSAND ($12,700,000) DOLLARS TO FINANCE THE CAPITAL
IMPROVEMENT PROJECTS INCLUDING THE ACQUISITION OF THE POST OFFICE
PROPERTY LOCATED AT 500 SOUTH FEDERAL HIGHWAY FOR PARK LAND, AND THE
CONSTRUCTION OF A NEW MAIN FIRE STATION; DIRECTING THE CITY MANAGER TO
DEVELOP A COMPREHENSIVE PARKS GEN.ERAL OBLIGATION BOND EDUCATION
INITIATIVE TO FINANCE PHASES TWO ANO THREE OF THE PARKS MASTER PLAN;
PROVIDING AN EFFECTIVE DATE.
BACKGROUND
At the August 13, 2012, Special City Commission Meeting/ Budget Workshop, staff presented
options for the financing of the Citywide Parks Master Plan and the reconstruction of the Main
Fire Station. At the conclusion of discussion of the item, the Commission directed staff to
engage bond counsel to evaluate General Obligation Bond Referendum sample questions and
action steps necessary to initiate an education campaign associated with the General Obligation
Bond for the January 2013 Special Election. Since that time, the City Commission has taken
actions that resulted in the elimination of the January 2013 Special Election. On October 17,
2012, the City Manager presented an item for Commission consideration regarding the funding
for the Main Fire station and the Post Office Land Acquisition. During that meeting, the
Commission directed the City Manager to come back with additional financing options for Phase
One of the Citywide Parks Master Plan and construction of the Fire Station, as well as
information regarding the issuance of a General Obligation Bond for future phases of
development of the Citywide Parks Master Plan.
CURRENT SITUATION
City staff has had positive discussions with the US Postal Service and is in the final stages of
negotiating a purchase and sale agreement for the Post Office site. Furthermore, City staff is
moving forward in its efforts to conclude negotiations with Manhattan Realty Corporation, for the
ASPEX eyewear site and the partnership that will result in the redevelopment of the corner of
Dixie Hwy. and SW 3m Street, to include the new fire station and a future site for ASPEX
Eyewear headquarters. These two projects are included in Phase One of the City's Capital
Improvement Project Listing. Improvements for the remaining parks are split into two additional
phases as listed below:
Table One: Phased Capita/Improvement Project Listing
At this time, it is important that the City Commission provide direction regarding the future of the
Main Fire Station and the purchase of the Post Office Property in order for staff to take the
necessary steps toward the issuance of revenue bonds for one or both projects. Tables Two
and Three below, show the new options that the City Commission can consider in order to ~ o ~ e
forward with the outstanding projects. Option One was presented during the October 17L C1ty
) Commission meeting, while Option Two is being presented in response to the Commission's
desire to separate financing of the Main Fire Station from the Post Office Land Acquisition.
FINANCING OPTIONS
Table Two: Single Issuance
Table Two illustrates total Phase One capital costs and its associated funding sources. Under
the single bond issuance scenario, the City would issue a Revenue Bond in the amount of
$12. 7M to fund both the Main Fire Station and the Post Office Land Acquisition. The estimated
maximum annual debt service on the above-mentioned bond would be $845,000 for a 30-year
bond and $1,028,400 for a 20 year bond.
Table Three- Split Issuance
uisition
Phase O'r'ie Ca Cost -Revenue Bond
--------- ------
Table Three illustrates the cost of financing the Post Office and the Main Fire Station in two
separate bond issuances. Issuance A, in the amount of $6M, would cover the cost of the Post
Office Land Acquisition and is listed as a 2013 Series Bond due to the known time constraints
on closing on the property. The estimated annual maximum debt service on the afore
mentioned amount would be $397,000 for 30-year bond and $483,000 for a 20-year bond.
The main fire station is listed as Issuance B in the amount of $6. 7M. The estimated annual _
maximum debt service on the afore-mentioned amount would be $448,000 for 30-year bond and
$545,000 for a 20 year bond. There are no Series dates listed for this issuance as the timing of
this would need to be determined by the City Commission.
Table Four- Revenue Snapshot {if both proj ects approved)
Debt Service Revenue Needed Revenue Needed
Revenue Source To Fund Debt to Fund Debt
Service Service
30 Years 20 Years
. .
. .. .
e;
..
Fire Assessment Fee
.
..
0
, I I ', I

..
General Fund (Non-Ad valorem)
$851,875.00 $1,043,600.00 Total
Table Four above shows the revenue sources that will be utilized to cover the debt service for
these projects. It should be noted that the $910,000 in revenue generated by the FY 13
increase in the Fire Assessment Fee fully covers the portion of the debt service payments
attributable to the reconstruction of the Main Fire Station. The General Fund portion wi ll need to
be incorporated in the FY 14 Budget.
"' ' $3,594
Sunrise
Fort Lauderdale
$3,343
Hollyw:>od $'2,952
Pembruke Pines $2,469
Boca Raton $1,789
North Miami.. $1,541
Davie $1 539
Miramar $1 ,484
Hallandale Beach " $1,278
Dania Bch ~ $1),080
Miami Gardens $1,u44
Aventura
$.11.1R $835
Coral Springs
0 1,000 2,000 3,000 4,000
Table Five above shows the City's debt per capita as compared to other cities locall y. This
amount includes the additional debt contemplated if the City Commission were to approve
issuing $12.7 Min Revenue Bonds to complete projects as depicted in Table 2. It is important
to note that the City's debt would still be within the average to low range as compared to our
neighboring municipalities.
GENERAL OBLIGATION BONDS FOR PHASES 2 AND 3
At the October 17!h City Commission meeting, staff was instructed to bring back for Commission
discussion, the options associated with engaging in a general obligation bond initiative to fund
phases two and three of the parks master plan. Phases two and three projects are illustrated
below:
Table Six- Phases Two and Three Project Costs
Capital Project
Mana ment
Total Cost Phase 4,212,000.00
Three
Phases two and three represent a significant capital investment in the City's parks system, an
investment that far surpasses the City's ability to fund on a pay-as-you go basis. As such, in
order to complete construction of these future phases, a debt instrument must be used to
support these projects.
City staff worked with Bond Counsel to craft sample ballot language for this Bond issuance.
Since all of the remaining projects in Phases two and three are parks related, there is no legal
requirement to break these items into separate questions. The City can however, decide to ask
separate questions by project phases. In line with this thought process, the team broke the
ballot language into two options for the Commission to consider.
Option A: Not to Exceed GOB Question
OFFICIAL BALLOT
PARKS AND RECREATION BOND ISSUE
TO ACQUIRE LAND FOR AND RENOVATE. EXPAND AND IMPROVE
PARKS AND RECREATIONAL FACILITIES LOCATED IN THE CITY
OF HALLANDALE BEACH, SHALL THE CITY OF HALLANDALE
BEACH BE AUTHORIZED TO ISSUE GENERAL OBLIGATION
BONDS IN A PRINCIPAL AMOUNT NOT EXCEEDING$ 33,394,000.00,
PAYABLE FROM UNLIMITED AD VALOREM TAXATION, BEARING
INTEREST AT RATES NOT EXCEEDING THE MAXIMUM LEGAL
INTEREST RATE AT SUCH TIME(S)?
FOR BONDS
AGAINST BONDS
Option B: Separate Questions for Phases
OFFICIAL BALLOT
TO [ACQUIRE LAND AND] RENOVATE, EXPAND AND IMPROVE
CERTAIN PARKS AND RECREATIONAL FACILITIES TO INCLUDE,
PETER BLUESTEN PARK, INGALLS PARK, THE HISTORIC
VILLAGE, AND POST OFFICE SITE IMPROVEMENTS, LOCATED IN
THE CITY OF HALLANDALE BEACH, SHALL THE CITY OF
HALLANDALE BEACH BE AUTHORIZED TO ISSUE GENERAL
OBLIGATION BONDS IN A PRINCIPAL AMOUNT NOT EXCEEDING
$19,182,000.00 PAYABLE FROM UNLIMITED AD VA.LOREM
TAXATION, BEARING INTEREST AT RATES NOT EXCEEDING THE
MAXIMUM LEGAL INTEREST RATE AT SUCH TIME(S)?
FOR BONDS
AGAINST BONDS
OFFICIAL BALLOT
TO [ACQUIRE LAND AND] RENOVATE, EXPAND AND IMPROVE
CERTAIN PARKS AND RECREATIONAL FACILITIES TO INCLUDE,
08 JOHNSON PARK, GOLDEN ISLES PARK, GOLDEN ISLES
TENNIS CENTER, SUNRISE PARK EXPANSION, SUNSET PARK,
CHAVES LAKE, LOCATED IN THE CITY OF HALLANDALE BEACH,
SHALL THE CITY OF HALLANDALE BEACH BE AUTHORIZED TO
ISSUE GENERAL OBLIGATION BONDS IN A PRINCIPAL AMOUNT
NOT EXCEEDING $14,212,000.00 PAYABLE FROM UNLIMITED AD
VALOREM TAXATION, BEARING INTEREST AT RATES NOT
EXCEEDING THE MAXIMUM LEGAL INTEREST RATE AT SUCH
TIME(S)?
FOR BONDS
AGAINST BONDS
Should the City Commission decide to move forward with the General Obligation Bond (GOB)
initiative, it will be imperative that the City engage in an extensive educational campaign to
inform our residents about the impacts of the GOB. These types of initiatives should be well
planned and executed, and would include public meetings, written correspondence, and
grassroots support.
With respect to the cost of a GOB election being placed on the ballot, the most cost-effective
method would be to wait for the next general election cycle in November of 2014. Under this
scenario there would be no additional cost for the GOB election as the City would already be
paying $10,000 for the regularly scheduled municipal race. However, should timing be an issue,
the City can choose to pay for a standalone election for $95,000, or engage in a mail in ballot for
$69,000.
CITY MANAGER RECOMMENDATION
In closing, the City Commission has taken steps for the last two years to set aside funding to
support the construction of the Main Fire Station, and took further steps toward the construction
of a new Main Fire Station when the Fire Assessment Fee was increased in the current budget.
In furtherance of this objective, staff is in the final stages of negotiating with Manhattan Realty
Corporation to implement a shared site plan on Di xie Highway. The last item to secure the
future of the fire station is authorization to move forward with financing the construction phase of
this project.
In addition, staff is finalizing a purchase and sale agreement with the United States Postal
Service (USPS) for the post office site. As such, it is imperative that the City Commission
authorize funding for this purchase in order to ensure that the City will be able to close on this
property and not miss the opportunity to acquire this location. Finally, regarding the future
phases of the parks development, it is important that the City Commission select a way to move
forward to ensure that the Master plan that has been shared with, and vetted by the community
can be realized .
In light of these issues, it is recommended that the City Commission authorize the City Manager
to take steps necessary to issue a revenue bond to fund the construction of the Main Fire
Station, Post Office land acquisition and capital projects management (Phase 1). It is further
recommended that the City Commission launch an education campaign in the summer of 2013
to support a Parks General Obligation Bond Initiative with an election by Mail in Ballot in Early
2014.
This time line will provide the City with enough time to educate the public about the Parks
Improvements, while giving the residents an ability to see "success" in the City's ability to
complete capital projects through the opening of BF James, Scavo, and South Beach Parks.
That the City Commission authorize the City Manager to take steps necessary to issue a
revenue bond to complete Phase I of the Capital Improvement Projects and directs the
City Manager to develop a comprehensive parks General Obligation Bond education
initiative to finance phases two and three of the Parks Master Plan.
Exhibit 1 - Resolution
5
10
15
20
25
30
35
40
1 EXHIBIT 1
2
3 RESOLUTION NO. 2012 -
4
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
6 THE CITY OF HALLANDALE BEACH, FLORIDA,
7 AUTHORIZING THE CITY MANAGER TO EXPLORE THE
8 ISSUANCE OF REVENUE BONDS IN THE AMOUNT OF
9 TWELVE MILLION AND SEVEN HUNDRED THOUSAND
($12,700,009) DOLLARS TO FINANCE THE CAPITAL
11 IMPROVEMENT PROJECTS INCLUDING THE ACQUISITION
12 OF THE POST OFFICE PROPERTY LOCATED AT 500 SOUTH
13 FEDERAL HIGHWAY FOR PARK LAND, AND THE
14 CONSTRUCTION OF A NEW MAIN FIRE STATION;
DIRECTING THE CITY MANAGER TO DEVELOP A
16 COMPREHENSIVE PARKS GENERAL OBLIGATION BOND
17 EDl)CATION INITIATIVE TO FINANCE PHASES TWO AND
18 THREE OF THE PARKS MASTER PLAN; PROVIDING AN
19 EFFECTIVE DATE.
21 WHEREAS, the City Commission has previously approved the Citywide Parks
22 Master Plan which includes the acquisition of the Post Office Property located at 500
23 South Federal Highway in order to sustain and improve the City's parks for future
24 generations; and
26 WHEREAS, the City Commission has also approved the constructi on of a new
27 Main Fire Station which will result in the improvement of the infrastructure and delivery of
28 services; and
29
WHEREAS, the City Administration has eval uated the various funding sources
31 and methods available to fully fund these capital improvement projects; and
32
33 WHEREAS, the City Administration has determined that it is in the best interest
34 of the City to issue Revenue Bonds to finance the acquisition of the Post Office Property
located at 500 South Federal Highway for the future development of park land and for
36 the construction of the new Main Fire Station; and
37
38 WHEREAS, a total of Twelve Million and
39 ($12,700,000.00) dollar's worth of revenue bonds is
abovementioned capital improvements; and
1
IWO NO. 2012-455 VLW
Seven Hundred Thousand
required to complete the
RESO NO. 2012
41
42 WHEREAS, the City Manager desires to utilize a solicitation process to
43 determine the best rates available to the City for the issuance of such revenue bonds;
44 and
45
46 WHEREAS, the Mayor and City Commission have determined that it is in the
47 best interest of the residents of the City of Hallandale Beach to issue revenue bonds for
48 the financing of the capital improvements projects; and
49
50 WHEREAS, the Mayor and City Commission desires to authorize the City
51 Manager to utilize a solicitation process to determine the best rates available for the
52 issuance of such revenue bonds; and
53
54 WHEREAS, the Charter of the City of Hallandale Beach requires that once the
55 City Administration has determined to issue the revenue bonds, the Mayor and City
56 Commission shall adopt an Ordinance authorizing the borrowing of money not
57 inconsistent with the limitations in the constitution and the general laws of the state; and
58
59 WHEREAS, the Mayor and City Commission have determined that it is
60 necessary to pursue the issuance of a General Obligation Bond to finance Phases Two
61 and Three of the Citywide Parks Master Plan; and
62
63 WHEREAS, the Mayor and City Commission desires to educate the residents of
64 the City of Hallandale Beach regarding the financing the future phases of the parks
65 master plan prior to a general obligation bond question being placed on the ballot.
66
67 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
68 COMMISSION OF THE CITY OF HALLANDALE BEACH, FLORIDA:
69
70 SECTION 1. Authority of the City Manager. . The Mayor and City
71 Commission hereby authorize the City Manager to explore the issuance of Twelve
72 Million Seven Hundred Thousand ($12,700;000.00) Dollars of revenue bonds for the
73 financing of capital improvement proj ects which include the purchase of the Post Office
2 RESO NO. 2012
74 property located at 500 South Federal Highway, and the construction of a new main fi re
75 station.
76
77 SECTION 2. Directing the City Manager. The Mayor and City Commission
78 hereby direct the City Manager to establish a Comprehensive Parks General Obligation
79 Bond Education Initiative to finance phases two and three of the Citywide Parks Master
80 Plan.
81
82 SECTION 3. Effective Date. This Ordinance shall take effect immediately upon
83 its adoption after second reading.
84
85 APPROVED and ADOPTED this ___ of October, 2012.
86
87
88
89
90
91 MAYOR-COMMISSIONER
92 SPONSORED BY: CITY ADMINISTRATION
93
94
95 ATTEST:
96
97
98
99
100 CITY CLERK
101
102
103 Approved as to legal sufficiency and form
104
105
106
107 V. LYNN WHITFIELD
108 CITY ATTORNEY
3 RESO NO. 2012
ORDINANCE No. 2007-14
2
3 AN ORDINANCE OF THE CITY OF HALLANDALE BEACH,
4 FLORIDA, AUTHORIZING A LOAN IN AN AGGREGATE
5 PRINCIPAL AMOUNT NOT TO EXCEED $25,000,000 FROM
6 THE FLORIDA MUNICIPAL LOAN COUNCIL; APPROVING THE
7 ACQUISITION, CLEARANCE AND IMPROVEMENT OF
8 CERTAIN REAL PROPERTY FOR PARK USE; AUTHORIZING A
9 NEGOTIATED SALE; PROVIDING FOR THE DETAILS OF AND
10 SECURITY FOR THE LOAN; AUTHORIZING THE EXECUTION
II AND DELIVERY OF A LOAN AGREEMENT; AUTHORIZING THE
12 EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE
13 AGREEMENT; PROVIDING FOR CERTAIN DETAILS OF THE
14 BONDS AND AUTHORIZING THE EXECUTION AND DELIVERY
15 OF A BOND PURCHASE CONTRACT; PROVIDING CERTAIN
16 OTHER MATTERS IN CONNECTION WITH THE MAKING OF
17 SUCH LOAN; AND PROVIDING AN EFFECTIVE DATE
18
19 WHEREAS, participating governmental units (the "Members") have created
20 the Florida Municipal Loan Council (the "Council") pursuant to a certain lnterlocal
21 Agreement and pursuant to Chapter 163, Part I, Florida Statutes, for the purpose of
22 issuing its bonds to make loans to participating governmental units for qualified
23 projects, and
24 WHEREAS, the City of Hallandale Beach, Florida (the "Borrower"), a
25 municipal corporation, is duly created and existing pursuant to the Constitution and
26 laws of the State of Florida (the "State"), and
27 WHEREAS, the Borrower finds and declares that there is a substantial need
28 for the financing or refinancing of qualifying projects pennitted by the Constitution and
29 laws of the State, and
30 WHEREAS, the Council is in the process of issuing its Florida Municipal Loan
31 Council Revenue Bonds (the "Bonds") and is seeking to make loans to governmental
32 units, and
33 WHEREAS, it is hereby determined that the need exists for the Borrower to
34 borrow funds from -proceeds of the Bonds (the "Loan") to finance and/or refinance
- 1 - ORD. 2007 - 14
'
. . - -

35 certain qualifying projects, all as more particularly described in Exhibit A attached
36 hereto (collectively, the "Project").
37 NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF HALLANDALE
38 BEACH, FLORIDA:
39 SECTION 1. AUTHORITY. This Ordinance is enacted ,pursuant to
40 Chapter 166, Florida Statutes, and other applicable provisions of law.
41 SECTION 2. PROJECT. The financing and/or refinancing of the Project is
42 hereby approved.
43 SECTION 3. NEGOTIATED LOAN. Due to the ability of the Council to
44 access additional markets and for the Borrower to receive the benefits of lower
45 interest rates and issuance costs, it is hereby determined that it is in the: best interest
46 of the Borrower to borrow the funds on a negotiated basis through the Loan, as
I
47 opposed to the Borrower borrowing funds pursuant to a public sale.
48 SECTION 4. LOAN DETAILS. The Loan shall be in an principal
49 amount not to exceed $25,000,000. The Loan shall be made at a which shall
. I
50 include a pro-rata portion of the costs of issuance incurred by the Council in the
51 issuance of the Bonds and a pro-rata portion of the cost of a reserve surety and
I
52 the Florida League of Cities, Inc. (the "League of Cities") administrative fees and
53 other ongoing costs. The Loan shall be in an aggregate principal not to
I
I
54 exceed $25,000,000, shall bear interest at such rate(s), not to exceed 6% per annum,
55 and payable on such dates, shall be repayable as to principal in such and
56 on such dates, but not later than December 31. 203l, s_hall be subject tJ redemption,
57 if any, and shall have such other terms and as shall be applroved by the
58 City Manager and set forth in the Loan Agreement authorized pursuant\ to Section 5
59 hereof. The Loan shall be secured by a covenant to budget and non-ad
60 valorem revenues as shall be more specifically set forth in the loan Agrebment.
I
I
2 ORD. NO. 2007
I
61 SECTION 5. LOAN AGREEMENT; CONTINUING DISCLOSURE
62 AGREEMENT. The Mayor and the City Manager or any other appropriJte officers of
63 the Borrower are hereby authorized to execute and deliver a Loan AgreJment by and
I
64 between the Council and the Borrower to evidence the Loan. I
65 The Mayor and the City Manager or any other appropriate officers of the
66 Borrower are hereby further authorized to execute and deliver J Continuing
67 Disclosure Agreement by and between the Borrower and the League of Cities, as
68 dissemination agent, concerning compliance by the Borrower with the continuing
69 disclosure rules of the Securities and Exchange Commission.
70 SECTION 6. CERTAIN DETAILS OF BONDS: BOND PURCHASE
I
71 CONTRACT. The City Manager is hereby authorized to approve the final rates of
I
72 interest on the Bonds and the redemption provisions thereof, if any, on behalf of the
73 Borrower. The Mayor and the City Manager or any other appropriate dfficers of the
74 Borrower are hereby authorized to execute and deliver a Bond Purchasl Contract by
75 and among the underwriter of the Bonds, the Council, the Borrower alnd the other
76 borrowers of the proceeds of the Bonds.
77 SECTION 7. INDENTURE. The Borrower hereby acknowledges and
78 consents to the Bonds being issued pursuant to a Trust Indenture (the to
79 be executed by the Council and a bank or trust company to be sellcted by the
80 Council, as trustee.
81 SECTION 8. OTHER ACTIONS AND INSTRUMENTS. The Mayor and
82 the City Manager or any other appropriate officers of the Borrowe1 are hereby
83 authorized to take all actions and to execute any and all certifications or other
84 instruments or . documents required by this Ordinance, the Loan the
85 Indenture or any other document required by the Council as a prirequisite or
I
86 precondition to making the Loan (including but not limited to the execution of all tax
87 documents relating to the tax exempt status of the Loan}. Any represJntations and
I
3 ORO. NO. 2007
--- --
I
88 agreements made in such certifications, instruments or documents shall be deemed
89 to be made on behalf of the Borrower. All actions taken to date by the dfficers of the
I
90 Borrower in furtherance of the issuance of the Bonds and the making of the Loan are
91 hereby approved, confirmed and ratified. The .City Manager is additidnally hereby
92 authorized to establish the appropriate accounts.
93 SECTION 9. ADDITIONAL INFORMATION. The Loan Agreement shall
94 not be executed and delivered unless and until the Borrower has received all
95 informatio"n required by Section 218.385, Florida Statutes.
96 SECTION 10. EFFECTIVE DATE. This Ordinance shall take effect
97 immediately upon adoption.
98 PASSED AND ADOPTED on 1st reading August 1, 2007.
99
PASSED AND ADOPTED on 2nd reading August 14,2007.
100
101
102
103
104
105
106
107 ATIEST:
108
109
110
f ~ ~
111
112
113 CITYClERK
Mayor Cooper A ~ : W A Y
Vice-Mayor Julian V '---
Comm. London K !___
Comrn. Ross t_..___ j
Comm. Schiller
1
'--
4 ORD. NO. 2007
...
; ~
.!;. ~
..... ,..
.
..
' ....... .
114 EXHIBIT A
115
116 DESCRIPTION OF THE PROJECT
117
11 8
119 Acquisition, clearance and improvement of real property for use as a park.
1?0
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
l36
137
138
139
140
141
142
143
144.
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
- 5 -
ORD. 2007 - 14
Series 2007 A Governmental Bonds EXHIBIT THREE
AMORTIZATION SCHEDULE
Trustee Cumulative
Date YEAR Principal Interest Fee Admin Fee Total Expense Percent Percent
7-Sep-07 ($24,615,000.00) CRA Ci!}: % CRA % Ci!}:
1-Apr-08 2008 680,913.19 11 ,826.74 $692,739.93 1.747% 1.747% $692,739.93 100.00% 0.00%
1-0ct-08 2008 680,000.00 597,875.00 648 10,384.45 $1 ,288,907.45 3.250% 4.997% $1,288,907.45 100.00% 0.00%
1-Apr-09 2009 583,425.00 10,097.58 $593,522.58 1.497% 6.493% $593,522.58 100.00% 0.00%
1-0ct-09 2009 795,000.00 583,425.00 648 10,097.58 $1,389,170.58 3.503% 9.996% $1,389,170.58 100.00% 0.00%
1-Apr-1 0 2010 566,531.25 9,762.19 $576,293.44 1.453% 11.449% $576,293.44 100.00% 0.00%
1-0ct-10 2010 830,000.00 566,531.25 648 9,762.19 $1 ,406,941.44 3.548% 14.997% $1,406,941.44 100.00% 0.00%
1-Apr-11 2011 548,893.75 9,412.03 $558,305.78 1.408% 16.404% $558,305.78 100.00% 0.00%
1-0ct-11 2011 865,000.00 548,893.75 648 9,412.03 $1,423,953.78 3.590% 19.995% $1 ,423,953. 78 100.00% 0.00%
1-Apr-12 2012 527,962.50 9,047.11 $537,009.61 1.354% 21.349% $537,009.61 100.00% 0.00%
1-0ct-12 2012 910,000.00 527,962.50 648 9,047.11 $1,447,657.61 3.650% 24.999% $1,447,657.61 100.00% 0.00%
1-Apr-13 2013 506,375.00 8,663.20 $515,038.20 1.299% 26.298% $515,038.20 100.00% 0.00%
1-0ct-13 2013 955,000.00 506,375.00 648 8,663.20 $1 ,470,686.20 3.708% 30.006% $1,470,686.20 100.00% 0.00%
1-Apr-14 2014 482,500.00 8,260.31 $490,760.31 1.237% 31 .243% $490,760.31 100.00% 0.00%
1-0ct-14 2014 1 ,000,000.00 482,500.00 648 8,260.31 $1 ,491 ,408.31 3.761 % 35.004% $1 ,491 ,408.31 100.00% 0.00%
1-Apr-15 2015 457,500.00 7,838.44 $465,3313.44 1.173% 36.177% $353,657.21 $111 ,681 .23 76.00% 24.00%
1-0ct-15 2015 1 ,050,000.00 457,500.00 648 7,838.44 $1 ,515,986.44 3.823% 40.000% $1 ,152,149.69 $363,836.75 76.00% 24.00%
1-Apr-16 2016 431,250.00 7,395.47 $438,645.47 1.106% 41 .106% $333,370.56 $105,274.91 76.00% 24.00%
1-0ct-16 2016 1 ' 1 05,000.00 431 ,250.00 648 7,395.47 $1 ,544,293.47 3.894% 45.000% $1 ' 173,663.04 $370,630.43 76.00% 24.00%
1-Apr-17 2017 403,625.00 6,929.30 $410,554.30 1.035% 46.035% $312,021.27 $98,533.03 76.00% 24.00%
1-0ct-17 2017 1 ' 160,000.00 403,625.00 648 6,929.30 $1 ,571 ,202.30 3.962% 49.997% $1 ' 194, 113.75 $377,088.55 76.00% 24.00%
1-Apr-18 2018 374,625.00 6,439.92 $381 ,064.92 0.961 % 50.957% $289,609.34 $91,455.58 76.00% 24.00%
1-0ct-18 2018 1,220,000.00 374,625.00 648 6,439.92 $1 ,601 ' 712.92 4.039% 54.996% $1 ,217,301.82 $384,411 .10 76.00% 24.00%
1-Apr-19 2019 347,937.50 5,925.23 $353,862.73 0.892% 55.888% $268,935.67 $84,927.06 76.00% 24.00%
1-0ct-19 2019 1,275,000.00 347,937.50 648 5,925.23 $1 ,629,510.73 4.109% 59.997% $1 ,238,428.15 $391,082.58 76.00% 24.00%
1-Apr-20 2020 319,250.00 5,387.34 $324,637.34 0.819% 60.816% $246,724.38 $77,912.96 76.00% 24.00%
1-0ct-20 2020 1,335,000.00 319,250.00 648 5,387.34 $1 ,660,285.34 4.186% 65.002% $1,261 ,816.86 $398,468.48 76.00% 24.00%
1-Apr-21 2021 285,875.00 4,824.14 $290,699.14 0.733% 65.735% $220,931.35 $69,767.79 76.00% 24.00%
1-0ct-21 2021 1,400,000.00 285,875.00 648 4,824.14 $1 ,691 ,347.14 4.265% 70.000% $1 ,285,423.83 $405,923.31 76.00% 24.00%
1-Apr-22 2022 250,875.00 4,233.52 $255,108.52 0.643% 70.643% $193,882.48 $61,226.04 76.00% 24.00%
1-0ct-22 2022 1,475,000.00 250,875.00 648 4,233.52 $1 '730, 756.52 4.364% 75.007% $1 ,315,374.96 $415,381.56 76.00% 24.00%
1-Apr-23 2023 214,000.00 3,611.25 $217,611.25 0.549% 75.556% $165,384.55 $52,226.70 76.00% 24.00%
1-0ct-23 2023 1 ,545,000.00 214,000.00 648 3,611.25 $1 ,763,259.25 4.446% 80.002% $1 ,340,077.03 $423,182.22 76.00% 24.00%
1-Apr-24 2024 175,375.00 2,959.45 $178,334.45 0.450% 80.451 % $135,534.18 $42,800.27 76.00% 24.00%
1-0ct-24 2024 1 ,625,000.00 175,375.00 648 2,959.45 $1 ,803,982.45 4.549% 85.000% $1 ,371 ,026.66 $432,955.79 76.00% 24.00%
1-Apr-25 2025 134,750.00 2,273.91 $137,023.91 0.346% 85.345% $104,138.17 $32,885.74 76.00% 24.00%
1-0ct-25 2025 1,710,000.00 134,750.00 648 2,273.91 $1 ,847,671.91 4.659% 90.004% $1 ,404,230.65 $443,441.26 76.00% 24.00%
1-Apr-26 2026 92,000.00 1,552.50 $93,552.50 0.236% 90.240% $71 ,099.90 $22,452.60 76.00% 24.00%
1-0ct-26 2026 1,795,000.00 92,000.00 648 1,552.50 $1 ,889,200.50 4.764% 95.004% $347,615.94 $1 ,541 ,584.56 18.40% 81.60%
1-Apr-27 2027 47,125.00 795.23 $47,920.23 0.121% 95.125% $0.00 $47,920.23 0.00% 100.00%
1-0ct-27 2027 1 ,885,000.00 47,125.00 648 795.23 $1 ,933,568.23 4.875% 100.000% $0.00 $1 ,933,568.23 0.00% 100.00%
Total $24,615,000.00 $14,778,538.19 12,960 $253,027.43 $39,659,525.62 $30,878,906.65 $8,780,618.97
77.86% 22.14%
CRA portion = 77.86% $30,878,906.65
Note: For year 2015 and later, distribution between CRA and City is an estimate. The actual amounts will be recalculated annually.
EXHIBFT THREE
CITYOF HALLANDAlE BEACH
Breakdown of use of FMLC Series 2007A Bond Issuance:
Bond Issuance eoJts
SkJesten Park Land Acquis.ition
sc.btotal
As of 9130/12
34,089
17,888,902
17,922,991

See Note A
CRA
CAACost
26,541
17.883.902

7,S.8
Pubic Ooek/City Marina
Sunset Park {land & improvements)
&mse Pwk (land ond imp<ovem<nto)
SQvo Park
South Beaeh P ark improvements
Various Parlcs improvements
SUI'Veys and consultants-an parks
geotedrieal .....-;s-{BFJ, Scavo, SoBch)
Gibbs Land SutVevs-So Sch. Scavo & N. Beach
building suDOies
$ions
demolition - Bluesten Park
Flanders-Golden ls.les Tennis
Colden lsles Terrif
ApprOC)riated, but not vet exPended:
Seavo Patk IITIC)(ovements
South Beach Park knprovements
subtotal
Partes Master Plan and other parks improvements
subtotal
Bond Issuance Costs (prorated)
252,139
636,986
466,385
35,960
30,306
86,526
-4,965
23,400
413
742
49.950
39,500
6.288
2,464.040
2 ,569,694
24,715
1,633,561
5,058.448
City
CAA
CRA
City
City
prorate based en acreaQe
prorate based the
aaeage of ortt these 3
City
CAA
prOf'llte based en acreage
CAA
c;,.,
City
City
City
CAA
636.986
466.385
69,506
907
413
596
49,950
24.715
19,138.360
26,541
252,139
35,960
30,306
17.020
4,058
23,400
146
39,500
6.288
2,464,040
2.569,694
5,442,551
7.548
Total Bond Issuance s 2.615.000 19
1
164,902 s
1
so.099
Note A: Amounts above that are to be pr0f11ted, with the exception of the
CAA $
City $
subtotaJ before prorating $
CRA proratedissuance cos.ts $
City prorated issuarK:e costs $
s

2.35
36.92
1.1!2
Golden Park 1.62
SUvo P1rk 7.00
Golden ls.Jts Tennis 4.110
H. Adult 5.10
Hlstolic Vi11:1ge 0.60
lnJ:IIkP:Itli: 4.63
North Poult 1.09
0 8 Johnson Poltk. 6.17
PAotl
15.00
South Buch Part 3.52
0.33
Sunset Park 0.47
Cultur:ll Community 0.24
l Otoll 91 .66
CRA:: 73.6 3 attti OW:: 18.03 ACRES
CRA" 80.33,., Cit z t9.6"'
costs, is prorated based on acreage. Issuance costs are prorated based on total costs before issuance costs.

19,138,360 n .B6%
5,442,551 22.14%
24.580,911
26,541
7,548
2.,51$,000 100.00%
Location
CAA
CAA
CAA
CITY
CITY
CITY
CAA
CAA
CAA
CITY
CAA
CRA
CITY
CAA
CAA
CAA
Crichton, Renee
From:
Sent:
To:
Cc:
Subject:
Attachments:
Futterman, Michael D. <Michaei.Futterman@marcumllp.com >
Monday, November 05, 2012 5:39 PM
Fraidenburg, Robert
Crichton, Renee; Cabrera, Gail; Ladolcetta, Patricia; Frastai, Jennifer M.; Llerena, Enrique
RE: FM LC 2007A Repayment Distribution
image002.jpg; image004.jpg
Our recommendation would be that the City share proportionately in the debt service once the City park projects are
completed (i.e. anticipated to be FY 2015). This would be a reasonabl e approach given that the City has not yet drawn
down on any substantial amounts of debt proceeds for its projects.
If you have any further questions please let me know.
Thank you
MARCUM
Michael D. Futterman, CPA Profile
Partner
Marcum LLP
One SE Third Avenue, Tenth Floor
Miami, FL 33131
P: (305) 995-9610
F: (305) 995-9601
Michaei.Futterman@marcumllp.com
V l'-' Ut ll
From: Fraidenburg, Robert [mailto:rfraidenbu@hallandalebeachfl.gov]
Sent: Monday, November 05, 2012 3:42 PM
To: Futterman, Michael D.
Cc: Crichton, Renee; Cabrera, Gail; Ladolcetta, Patricia; Frastai, Jennifer M.
Subject: FMLC 2007A Repayment Distribution
Hi Michael:
Attached is the spreadsheet we discussed. One tab (Use breakdown) shows how Patty determi ned the allocation of costs between the
City and the CRA, arriving at 22.14% and 77.86% respectively. The blue tab (2007ADebt Svc) shows the debt service amortization
schedule for the 2007A bonds. That tab shows all of the debt service being charged to the CRA until their 77.86% is reached, with the
balance to be charged to the City.
Please advise the City Manager as soon as possible as to whether you believe thisdebt service distribution methodseems
appropriate.
If there are any questions on either of the calculations, please call and we can go over it.
Thanks,
Robert Fraidenburg
Deputy Director of Finance
City of Hall andale Beach
1
July14,2011 Page 1 of 16
July 14, 2011
Special Meeting 10:10 a.m.
MINUTES OF SPECIAL MEETING OF THE CITY COMMISSION/CITY MANAGER WORKSHOP, CITY OF
HALLANDALE BEACH, FLORIDA, HELD ON THURSDAY, JULY 14, 2011 AT 10:00 A.M., CITY COMMI SSION
CHAMBERS 400 S. FEDERAL HIGHWAY HALLANDALE BEACH, FL 33009
I. CALL TO ORDER
Mayor Cooper called the meeting to Order at 10:10 A. M.
2. ROLL CALL
Commissioners Lewy, London and Ross, Vice Mayor Sanders, Mayor Cooper, City Manager Antonio, and City Attorney Jove - All
Present
Ken Ballard, City's Consultant, Ballard King & Associates, Randy Hollingsworth, Consultant, and Alfredo Sanchez, Consultant, Bermello Ajamil &
Partners, were also in attendance at the meeting.
3. PLEDGE OF ALLEGIANCE
4. CONSENT AGENDA
A. Approval of Draft Minutes - City Commission/City Manager Workshop of June 13, 2011
MOTION BY COMMISSIONER LEWY, SECONDED BY VICE MAYOR SANDERS, TO APPROVE THE DRAFT
MINUTES OF THE CITY COMMISSION/CITY MANAGER WORKSHOP OF JUNE 13, 2011. The Motion carried on a 411
Voice vote (Commi ssioner London voted No)
5. PRESENTATION AND REPORTS
A. Annual Presentation by the Parks and Recreation Advisory Board (Presented by Barbara Southwick, Chair) (See
Backup)
Barbara Southwick, Chai r, Parks and Recreation Advisory Board, gave a presentation and answered questions posed by the City Commission.
Mayor Cooper opened the floor for Public Comment
Maria DeVito, 1951 Atlantic Shores Boulevard, Hallandal e Beach, Florida, spoke in regards to the need for adequate maintenance and upkeep of
bag dispensers located at the parks that allow dogs and the need for additional trash receptacles. She further spoke in support of all owing dogs at
Joseph Scavo Park.
Anna Wells, 1004 SW 7 1!l Terrace, Hallandale Beach, Florida, spoke in support of the adoption of the Final Citywide Parks Master Plan.
John Patchen, 1849 South Ocean Drive #121 0, Hallandale Beach, Florida, spoke in regards to the need for increased maintenance at South Beach
Park.
Alex Favalucas, 945 NE 24 1!:! Avenue, Hallandale Beach, Florida, spoke in opposition of the Citywide Parks Master Plan based on the
esti mated construction/redevelopment costs.
Todd Trombetta, Tennis Director, City of Hallandale Beach, spoke in support of expanding the tenni s program through the redevelopment of the
City parks.
Carolyn Johnson, 407 NW 7 1!:! Court, Hallandale Beach, Florida questioned the safety measures the Ci ty will take during the construction
phase of each park.
Seeing no more speakers, Mayor Cooper closed the floor for public comment.
6. CITY BUSINESS
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Julyl4,2011
Page 2 of 16
')
A. Presentation of the Final Citywide Parks Master Plan (Staff: Di rector of Parks and Recreation Department) (See Backup)
BP#Ol2/08
City Manager Antonio introduced the Item and turned the presentation over to staff. Rebecca Munden-Correa. Director of Parks and Recreation
Department. provided background information concerning the Item. Randy Hollingsworth and Ken Ballard, City's Consultants. gave a presentation
outlining the fi nal Park Plan Designs and Operations Budget. as well as a Project Phasing Plan for Implementation, and answered questions posed
by the City Commi ssion.
MOTION BY COMMISSIONER LONDON TO TAKE A TEN (10) MINUTE RECESS.
The Motion failed due to lack of a Second.
Mayor Cooper recessed the meeting at 12:18 P.M.
Mayor Cooper reconvened the meeting at 1:34 P.M.
MOTION BY COMMISSIONER LEWY TO ADOPT THE FINAL CITYWIDE PARKS MASTER PLAN DOCUMENT FOR THE CITY OF
HALLANDALE BEACH.
Commissioner London seconded the Motion for discussion.
The City Commi ssion di scussed their priorities for project phasing and the implementation of the Citywide Parks Master Plan.
Mayor Cooper opened the floor for Public comment.
Barbara Southwick, Chair. Parks and Recreation Advisory Board, spoke in support of the Citywide Master Plan process and urged the Ci ty
Commi ssi on to support a list of priorities for implementati on based on those projects that wi ll benefit the most residents whi le providing the best level
of service.
Howard Garson. Member, Parks and Recreation Advisory Board, spoke i n support of the designs presented for Joseph Scavo Park and in support
of having B. F. James Park at the top of the list of pri orities, followed by Bluesten Park and those projects that will benefit the most residents whil e
providing the best level of service.
Josephine Alongi, Member, Parks and Recreation Advisory Board, spoke in support of B. F. James Park as a number one priority as well as facil ities
on the beach.
Andrew Markoff. 705 SW 2 nd Court, Hallandale Beach, Florida, spoke in support of the process for developing the Citywide Parks Master
Plan.
Rosallia Boullon, Member, Parks and Recreation Advi sory Board. spoke in support of the Citywide Parks Master Plan.
Carolyn Johnson, Member, Parks and Recreation Advisory Board, spoke in regards to community i nput during the process.
Seeing no more speakers, Mayor Cooper closed the floor for public comment.
Mayor Cooper suggested a friendly amendment to the Motion to exclude the Phasing Plan/list of Pri orit ies in Chapter 12 of the Citywide Parks
Master Plan.
Commissioner Lewy and Commissioner London accepted the friendly amendment.
After further discussion by the City Commission, Mayor Cooper called the Questi on.
MOTION BY COMMISSIONER LEWY, SECONDED BY COMMISSIONER LONDON, TO APPROVE CHAPTERS 1-11 OF THE CITYWIDE
PARKS MASTER PLAN. The Motion carried on a 4/1 Voice vote (Commissioner London voted No)
MOTION BY COMMISSIONER LEWY, SECONDED BY VICE MAYOR SANDERS, TO FULLY IMPLEMENT THE DEVELOPMENT OF B.F.
JAMES PARK AS OUTLINED IN THE CITYWIDE PARKS MASTER PLAN IMMEDIATELY. The Motion carried on a 4/1 Voice vote
(Commi ssioner London voted No)
NOTE: STAFF IS TO LOOK AT THE ALLOCATION OF COMMUNITY REDEVELOPMENT FUNDS TO BUILD THE POOL AT B.F. JAMES
PARK. FURTHERMORE, STAFF IS TO RESEARCH THE FEASIBILITY OF ENTERING INTO A PUBLIC PRIVATE PARTNERSHIP
TO MANAGE THE POOL.
MOTION BY COMMISSIONER LEWY, SECONDED BY VICE MAYOR SANDERS, TO FULLY IMPLEMENT JOSPEH SCAVO PARK AND
SOUTH CITY BEACH PARK IMMEDIATELY. The Motion carried on a 4/1 Voice vote (Commissioner London voted No)
MOTION BY COMMISSIONER LEWY, SECONDED BY VICE MAYOR SANDERS, TO DIRECT STAFF TO POLL THE CITY COMMISSION ON
THEIR LIST OF PRIORITIES FOR THE REMAINING PARKS AND TO WORK WITH STAFF AND THE CONSULTANT TO
ASSEMBLE A FINAL LIST OF PRIORITIES TO BE INCORPORATED INTO THE PROJECT PHASING CHAPTER OF THE CITYWIDE
PARKS MASTER PLAN.
After further discussion by the City Commission, Mayor Cooper called the Questi on.
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July 14, 2011 Page 3 of 16
MOTION BY COMMISSIONER LEWY, SECONDED BY VICE MAYOR SANDERS, TO DIRECT STAFF TO POLL THE COMMISSION ON
THEIR LIST OF PRIORITIES FOR THE REMAINING PARKS AND TO WORK WITH STAFF AND THE CONSULTANT TO
ASSEMBLE A FINAL LIST OF PRIORITIES TO BE INCORPORATED INTO THE PROJECT PHASING CHAPTER OF THE CITYWIDE
PARKS MASTER PLAN. The Motion carried on a 5/0 Voice vote.
7. OTHER
There being no further business before the City Commission , Mayor Cooper adjourned the meeting at 4:05P.M.
RESPECTFULLY SUBMITTED,
Mayor
ATTEST:
City Clerk
RECORDING SECRETARY: Sheena James, Deputy City Clerk
APPROVED BY COMMISSION: July 14, 2011
Special Meeting/Workshop
MINUTES OF SPECIAL MEETING/WORKSHOP OF THE CITY COMMISSION, CITY OF
HALLANDALE BEACH, FLORIDA, HELD ON THURSDAY, JULY 14,2011 AT 4:00P.M., CITY
COMMISSION CHAMBERS 400 S. FEDERAL HIGHWAY HALLANDALE BEACH, FL 33009
1. CALL TO ORDER
Mayor Cooper called the Meeting to Order at 4:27P.M.
2. ROLLCALL
Commissioners Lewy, London, Ross, Vice Mayor Sanders and Mayor Cooper, City Manager Antonio - All Present
City Attorney Jove- arrived at 4:28 P.M.
1115/2012 http://libraryl.municode.com/minutes/DocView/30094/l /314/331
July 14, 2011 Item#: 6A
CITY OF HALLANDALE BEACH, REGULAR CITY COMMISSION MEETING
June 13, 2011
Director's Name: Rebecca Munden Correa
Department: Parks and Recreation
Subject: Presentation of the City Wide Parks Master Plan Document. BP#012/08
Information
Requested Action
MOTION TO ADOPT the City Wide Parks Master Plan document for the City of Hallandale
Beach.
Why Action is Necessary
Pursuant to the City Commission directive during the May 16!!1, 2011 City Commission/City
Manager Worlshop, a final Parks Master Plan is to be presented for the City Commission
consideration and adoption.
What Action Accomplishes
The action will allow for the adoption of the City's Parks Master Plan document. Furthermore,
this allows the City to begin planning, designing and implementing said plan.
Is this Action Goal Related?
This Item is related to the City's Strategic Priorities of:
Livable Community
By providing a community where residents feel and are safe; where quality, affordable leisure
and educational opportunities and activities are provided; and where diversity is strengthened
and celebrated.
Excellence in Government
By ensuring that local government is accountable, accessible and transparent in its operations;
communicates effectively both internally and externally; values and supports community input
and participation; and is effective in its management of human resources, tangible assets and
fiscal responsibilities.
To: Mark Antonio, City Manager
Fr: Rebecca Munden Correa, Director of Parks and recreation
RE: Final Citywide Parks Master Plan
Date: June 13, 20 II
Environmental Sustainability
By enhancing the quality of life of residents and visitors by protecting natural resources,
environment, landscapes, tree canopy, heritage sites and planning for the conservation of these
assets.
Previous Action Taken
On March 3m, 2010 the City Commission authorized the City Manager to enter into a contract
with Bermello Ajamil & Partners, Inc. (B&A) for the Development of a Citywide Parks Master
Plan, in accordance with RFP #FY0?/08-004, Continuing Services and Comprehensive Services
in the amount not to exceed $250,000.
In July 2010, Community Meetings were held at Peter Bluesten Park, Scavo Park, Ingalls Park,
Johnson Park, and North Beach City Center with B&A and the Community to gather input. The
consultant gave a brief presentation at each of the sites and then welcomed comments from
those in attendance. Many ideas were presented to the consultant by the community and were
taken into consideration when developing the proposed Master Plan. In addition, surveys were
available for everyone to fill-out and turn-in , these were also distributed to the high school,
middle school and elementary school to receive further input from the youth and their parents.
Comments and preliminary designs were also posted on the City's website for people who could
not attend the workshops.
In August 2010 meetings were held with B&A and City Staff to get input into the design of the
Parks Master Plan.
In December 2010 a City Commission Special Meeting was held and the public and
representatives from the Parks and Recreation Advisory Board were in attendance. During said
meeting the City's consultants, Bermello Ajamil & Partners, Inc., and Ballard King & Associates,
presented the Needs Assessment and Preliminary Conceptual Park Plans for the City of
Hallandale Beach Parks facilities. After discussion by the City Commission, members of the
Parks and Recreation Advisory Board, the Public and staff, the consultants were directed to
finalize Conceptual Plans, as discussed and directed, and to coordinate with staff to make
presentations to the Public in January and February 2011. Furthermore, the City Commission
directed staff to reference the City's Marina, Foster Park Community Building and the Cultural
Center in the document.
In March 2011 Community Meetings were held in all City quadrants to discuss the initial
conceptual designs. Designs were placed on the City Website and posted at Park Facilities.
Community input was gathered and designs were revised to reflect changed suggested by the
City Commission and the Community.
On May 16!!!, 2011 Bermello, Ajamil & Partners, Inc. and City staff met with the City Commission
during a City Commission/City Manager Workshop to consider and finalize the Conceptual
Parks Master Plan.
Date: June 13, 20 11
Staff was then directed to finalize the conceptual plans per City Commission and the Public's
comments and to bring the document for adoption at a City Commission meeting.
Summary Explanation/Background
STAFF RECOMMENDS ADOPTION OF THE HALLANDALE BEACH CITYWIDE PARKS
MASTER PLAN.
In March 2010 the City Commission awarded the City Wide Parks Master Plan contract to
Bermello Ajamil & Partners Inc. (B&A). The City embarked on the preparation of a
comprehensive City Wide Master Plan in order to provide a community driven and
professionally prepared roadmap to improve public recreation and leisure facilities throughout
the community. From its outset, the Master Plan was intended to provide a community forum to
gather neighborhood preferences in order to improve recreation facilities and program offerings
in both the short and long term horizons. With this intent in mind, the goals established for the
Master Plan were further defined to more clearly understand the Master Plan purpose. These
goals are to:
o Create a city-wide system of park and recreation venues that meet the needs of
the citizens.
o Set Hallandale Beach as a model of cities.
o Enhance the quality of life for all citizens.
o Improve the neighborhoods.
o Maintain and enhance the tax base.
To assist these goals, a series of specific project objectives were established for the Master
Plan. These specific guiding objectives are to:
o Identify perceived and real community recreation needs.
o Maximize the use of available recreation lands and facility resources.
o Provide for the rational and equitable distribution of recreational facilities
throughout the City and improve accessibility to said facilities.
o Plan park and recreation investments to create the greatest benefit for all
citizens, while limiting duplication of high maintenance facilities.
The City Wide Master Plan document outlines the process utilized to arrive at the City Wide
Master Plan, how the objectives of the project were met and how the guiding goals were met.
The City Wide Master Plan provides park and recreation development policies, programs,
specific park designs, an inventory of recreation lands and facilities, a needs assessment ,
development options, and a phasing and financial plan. The phasing and financial plan will
assist in selecting priorities and ensuring the implementation of the Parks Master Plan is done in
a fiscally responsive way.
Fiscal Impact
Date: June 13,2011
Fiscal Impact/Cost Summary:
The fiscal impact for the full project will be determined upon adoption by the City Commission.
This will be determined on the prioritization of projects and funding options utilized. Staff has
been in contact with the Finance Department who recommends drawing down from funding
currently set aside for improvements and then budgeting for projects as they come on board in
the proper budget years while supplementing costs with grants and developer agreements as
they become available.
The City has been setting aside funding for the Parks Master Plan in Project No. 08-63-02,
Parks Master Plan Improvements. A total of $7,291 ,112.00 currently exists in the project.
In addition, funding for parks improvements is included in Project No. 05-22-06, Parks
Infrastructure. Total amount as of June 13, 2011, is $1, 736,777.00.
Estimated Costs:
Park Development Costs Operating Budget
B.F. James Park $ 2,886,000.00 $ 676,980.00
OB Johnson Park $ 9,933,000.00 $ 312,008.00
Chaves Lake $ 1,428,000.00 $ 183,230.00
Joseph Scavo Park $ 2 636,000.00 $ 70,380.00
North Beach Park $ 2,229,000.00 $ 96,145.00
South Beach Park $ 2,658,000.00 $ 34,000.00
Golden Isles Park $ 997,000.00 $ 66,660.00
Golden Isles Tennis Center Dog Park $ 430,000.00 No Change
Peter Bluesten Park $15,219,000.00 $ 960,933.00
Ingalls Park $ 330,000.00 No Change
Sunset Park $ 24,000.00 No Change
Historic Village $ 30,000.00 No Change
Sunrise Park $ 10,000.00 No Change
General N/A $ 197,350.00
Total $38,810,000.00 $2,597,686.00
Attachments:
Exhibit 1 - City Wide Parks Master Plan
Exhibit 2- Community Input via Email
Exhibit 3 - List of Potential Funding Sources/Options
Date: June 13, 20 11
Prepared by: -------------------
Bob Williams, Assistant Director of Parks and Recreation
Reviewed:
Mark Antonio, City Manager Date
__Approved __Disapproved __Hold for Discussion
Item# 8B.
November 16, 2011
CITY OF HALLANDALE BEACH, REGULAR CITY COMMISSION MEETING
Director's Name:
Department:
Subject:
October 20, 2011
Hector D. Castro, P.E.
Public Works, Utilities and Engineering
Pursuant to Chapter 23, Section 105, Award of Contracts, of the City of
Hallandale Beach Code of Ordinances, Request Authorization to Award
the Task Orders for Design, Permitting and Construction Services, to
Bermello Ajamil & Partners, Inc., Utilizing RFP #2007-2008-004,
Continuing Services and Comprehensive Services. BP#12/08
Information
Requested Action
MOTION TO AUTHORIZE:
Pursuant to Chapter 23, Section 105, Award of Contracts, of the City of Hallandale
Beach Code of Ordinances, the Award of Task Orders for the following three Projects, to
Bermello Ajamil & Partners, Inc., Utilizing RFP #2007-2008-004, Continuing Services
and Comprehensive Services, as follows:
a. In an Amount Not-to-Exceed $304,008 for the Design, Permitting and Construction
Services for BF James Park.
b. In an Amount Not-to-Exceed $257,553 for the Design, Permitting and Construction
Services for Scavo Park
c. In an Amount Not-to-Exceed $293,620 for the Design, Permitting and Construction
Services for South Beach Park.
The City Manager to execute all related documents and to establish accounts as
necessary to implement the projects.
Why Action is Necessary
Pursuant to the City of Hallandale Beach Code of Ordinances Chapter 23, Sections 104 and
105, City Commission authorization is required to award a contract over the City Manager
authorized purchasing authority of $50,000. Furthermore, pursuant to City Commissions award
of RFP#2007-2008-004, Continuing Services and Comprehensive Services, project-specific
awards in excess of $50,000, are to be authorized by the City Commission.
From: Hect or D. Castro, P.E., Director, DPW, Util. & Eng.
Re: Parks Task Orders
Dat e: October 20, 2011
What Action Accomplishes
The award of these task orders will authorize Bermello Ajamil & Partners Inc. to proceed with
the design, permitting and construction services for BF James Park, Scavo Park and South
Beach Park, as authorized by the City Commission, utilizing the Construction Manager at Risk
project delivery method.
Is this Action Goal Related
This action specifically addresses the City's strategic priorities of:
Livable Community where neighborhoods are pedestrian friendly; where quality, affordable
leisure and educational activities are provided; and where diversity is strengthened and
celebrated.
Environmental Sustainability by enhancing the quality of life of residents and visitors by
protecting natural resources, environment, landscapes, tree canopy and planning for the
conservation of these assets.
Excellence in Government by ensuring that local government is accountable, accessible and
transparent in its operations; communicates effectively both internally and externally; values and
supports community input and participation; and is effective in its management of tangible
assets and fiscal responsibilities.
Previous Action Taken
On February 04, 2009, the City Commission awarded RFP #FY2007-2008-004, Continuing
Services and Comprehensive Services, to various companies, one of which was Bermelo,
Ajamil & Partners, Inc.
On March 3, 2010, the City Commission authorized the City Manager to enter into a contract
with Bermello Ajamil & Partners, Inc. for the development of a Citywide Parks Master Plan, in
accordance with RFP #FY2007 -2008-004, Continuing Services and Comprehensive Services in
an amount not to exceed $250,000.
On May 16, 2011, the City Commission discussed, modified and proposed alternatives for the
development/redevelopment of the City's Parks under the proposed Parks Master Plan.
Furthermore, it directed the consultants to revise the proposed Parks Master Plan as discussed
and to bring back for City Commission adoption.
On July 14, 2011, the City Commission approved Chapters 1-11 of the Citywide Parks Master
Plan. Furthermore, the City Commission prioritorized the following three projects for
redevelopment, and directed staff to move forward with their implementation as depicted on
Exhibit 1.
From: Hector D. Castro, P.E., Director, DPW, Util. & Eng.
Date: October 20, 2011
Staff has also issued a Request for Information (RFI) for management of the North Beach and
South Beach Park concession stands and has received a response which is being evaluated at
this time.
Summary Explanation/Background
STAFF RECOMMENDS APPROVAL OF THE ABOVE MOTION.
The City has pursued a Citywide Parks Master Plan over the last several years by hiring a
Consultant (Bermello Ajamil & Partners Inc.) to evaluate the City's existing parks and services
and to determine the elements that should be included in each of the parks. This study has
been completed and the City is now moving forward with the implementation of the study
recommendations. To this end, staff has received proposals for the design, permitting and
construction services the City's consultant, Bermello Ajamil & Partners, Inc.
The process for the project's design and construction will be a Construction Manager at Risk
(CMAR) method: under this process the consultant will develop 30%, 60%, 90% and 100%
plans. Prior to the 30% design phase, staff will issue a Request For Qualifications (RFQ) for
construction of the parks by a Construction Manager; initial selection will entail choosing a
minimum of three firms based on qualifications, and bring them to the Commission for approval
of ranking. At the 60% phase of the design staff will negotiate with the top ranked firm for a
Guaranteed Maximum Price (GMP) and a construction management fee. Upon satisfactory
negotiations staff will return to the Commission for approval of the GMP contract. Upon approval
by the Commission, the contractor will work with the City and the consultant to provide input for
value engineering during the final completion of the design plans for the parks.
The benefit if the CMAR process is that it allows the City to have control over the full design of
the project while also controlling final construction costs and budgets. Refer to Exhibit 2.
The park designs will incorporate elements of the City's Green Building Ordinance as
applicable.
Fiscal Impact
Fiscal Impact/Cost Summary:
If approved, funding in the amount of $304,008 for BF James Park, $257,553 for Scavo Park
and $293,620 for South Beach Park are available in CIP No. 086302, City Parks Master Plans
under the following Accounts:
Fund 348-6520-519.66-29, Improvements and Extensions, $364,031 .00
Fund 130-6340-559.66-29, Improvements and Extensions, $2,687,205.14
Fund 348-6520-519.66-10, Land Acquisition, $4,783,080.28
To: Mark Antonio, Ci ty Manager
From: Hector D. Castro, P.E., Director, DPW, Util. & Eng.
Dat e: October 20, 2011
Fund 130-6330-559.34-55, Outside Services, $54,234.63
Available Balance- $7,888,551.05
Attachments:
Exhibit 1 -Task Order for BF James Park, Scavo Park. South Beach Park
Exhibit 2 - Benefits of CMAR Process
Prepared by: ___________
Richard Labinsky, P.E.
City Engineer
Reviewed:
Mark Antonio, City Manager Date
__Approved __Disapproved __Hold for Discussion
MINUTES OF SPECIAL MEETING OF
THE COMMUNITY REDEVELOPMENT
AGENCY BOARD OF DIRECTORS, CITY
OF HALLANDALE BEACH, FLORIDA,
HELD ON WEDNESDAY, APRIL 18, 2012
AT 6:05 P.M., CITY COMMISSION
CHAMBERS, 400 S. FEDERAL HIGHWAY,
HALLANDALE BEACH, FLORIDA 33009
1. CALL TO ORDER
Chair Cooper called the Meeting to order at 8:17P.M.
2. ROLL CALL
Directors Lewy, London and Ross, Vice Chair Sanders and Chair Cooper- All Present.
4. PUBLIC PARTICIPATION -Items not on the Agenda
There were no speakers.
5. AGENCY BUSINESS
A. Approval of Draft Minutes
1. Special Meeting of March 21, 2012
2. Special Meeting of March 28, 2012
MOTION BY DIRECTOR LEWY, SECONDED BY DIRECTOR ROSS, TO
APPROVE THE DRAFT MINUTES OF THE SPECIAL MEETINGS OF
MARCH 21, 2012 AND MARCH 28, 2012. The Motion carried on a 4/1
Voice vote (Director London voted No).
B. A Resolution of the Chair and Board of Directors of the Hallandale Beach
Community Redevelopment Agency, Approving the Application of
Hernando Giraldo, MD, Inc. for funding in the amount of Two Hundred
Thousand Dollars ($200,000) with Fifteen Percent (15%) Forgiveness
through the Hallandale Beach Community Redevelopment Agency's
Business Incentive/Enticement Loan Program; Authorizing the Executive
Director to Enter Into an Agreement and Execute all Related Documents
and Establish Accounts as Necessary. (Staff: HBCRA Director) (See
Backup) CAD#005/02
Executive Director Antonio provided background information and turned the Item over to
staff and the applicant. Alvin B. Jackson, Jr., CRA Director, Liza Torres, CRA Manager,
and Catherine Nunez, Representative, Hernando Giraldo, MD, Inc., gave a presentation
and answered questions posed by the Board of Directors.
April 18, 201 2 1
MOTION BY DIRECTOR LONDON, SECONDED BY DIRECTOR LEWY, TO
APPROVE A RESOLUTION OF THE CHAIR AND BOARD OF
DIRECTORS OF THE HALLANDALE BEACH COMMUNITY
REDEVELOPMENT AGENCY, APPROVING THE APPLICATION OF
HERNANDO GIRALDO, MD, INC. FOR FUNDING IN THE AMOUNT OF
TWO HUNDRED THOUSAND DOLLARS ($200,000) WITH FIFTEEN
PERCENT (15%) FORGIVENESS THROUGH THE HALLANDALE
BEACH COMMUNITY REDEVELOPMENT AGENCY'S BUSINESS
INCENTIVE/ENTICEMENT LOAN PROGRAM; AUTHORIZING THE
EXECUTIVE DIRECTOR TO ENTER INTO AN AGREEMENT AND
EXECUTE ALL RELATED DOCUMENTS AND ESTABLISH
ACCOUNTS AS NECESSARY. The Motion carried on a 5/0 Roll Call
vote as follows:
AYES: Directors Lewy, London and Ross, Vice Chair Sanders and Chair
Cooper
NAYS: None
C. A Resolution of the Chair and Board of Directors of the Hallandale Beach
Community Redevelopment Agency, Approving the Application of High
Tech Video Security International, Inc. for funding in the amount of Fifty
Thousand Dollars ($50,000) with Fifteen Percent (15%) Forgiveness through
the Hallandale Beach Community Redevelopment Agency's Business
Incentive/Enticement Loan Program; Authorizing the Executive Director to
Enter Into an Agreement and Execute all Related Documents and Establish
Accounts as Necessary; Providing for An Effective Date. (Staff: HBCRA
Director) (See Backup) CAD#005/02
Executive Director Antonio provided background information and turned the Item over to
staff. Alvin B. Jackson, Jr., CRA Director, Liza Torres, CRA Manager, and Leo Killiam,
Owner, High Tech Video Security International, Inc., gave a presentation and answered
questions posed by the Board of Directors.
Consensus:
To direct the City Attorney to research the possibility of including a provision in
the Protocol Manual to prohibit City Commissioners/HBCRA Directors from
recording City Commission/HBCRA Board of Directors meetings for political
campaigning purposes.
- To direct staff to revise Schedule B of the Application to include the correct
information.
MOTION BY VICE CHAIR SANDERS, SECONDED BY CHAIR COOPER, TO
ADOPT A RESOLUTION OF THE CHAIR AND BOARD OF
DIRECTORS OF THE HALLANDALE BEACH COMMUNITY
REDEVELOPMENT AGENCY, APPROVING THE APPLICATION OF
HIGH TECH VIDEO SECURITY INTERNATIONAL, INC. FOR FUNDING
IN THE AMOUNT OF FIFTY THOUSAND DOLLARS ($50,000) WITH
April18, 2012 2
FIFTEEN PERCENT (15%) FORGIVENESS THROUGH THE
HALLANDALE BEACH COMMUNITY REDEVELOPMENT AGENCY'S
BUSINESS INCENTIVE/ENTICEMENT LOAN PROGRAM ;
AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO AN
AGREEMENT AND EXECUTE ALL RELATED DOCUMENTS AND
ESTABLISH ACCOUNTS AS NECESSARY; PROVIDING FOR AN
EFFECTIVE DATE. The Motion carried on a 3/2 Roll Call vote:
AYES: Director Lewy, Vice Chair Sanders and Chair Cooper
NAYS: Director London and Director Ross
6. DIRECTOR COMMUNICATIONS - Items not on the Agenda
A. DIRECTOR LEWY
MOTION BY DIRECTOR LEWY, SECONDED BY VICE CHAIR SANDERS, TO
APPOINT ALVIN B. JACKSON, JR. AS THE EXECUTIVE DIRECTOR
OF THE HALLANDALE BEACH COMMUNITY REDEVELOPMENT
AGENCY.
After discussion by the Board of Directors, Chair Cooper called the Question.
MOTION BY DIRECTOR LEWY, SECONDED BY VICE CHAIR SANDERS, TO
APPOINT ALVIN B. JACKSON, JR. AS THE EXECUTIVE DIRECTOR
OF THE HALLANDALE BEACH COMMUNITY REDEVELOPMENT
AGENCY. The Motion carried on a 5/0 Voice vote.
B. DIRECTOR LONDON
Director London had no Communications.
C. DIRECTOR ROSS
Director Ross had no Communications.
D. VICE CHAIR SANDERS
Vice Chair Sanders had no Communications.
E. CHAIR COOPER
Consensus:
To direct staff to schedule a joint Special Meeting between the City Commission
and HBCRA Board of Directors to consider the Branding Proposal item prepared
by MotiveS when ready.
7. ADJOURN
There being no further business before the Hallandale Beach Community
April 18, 2012 3
Redevelopment Agency Board of Directors, Chair Cooper adj ourned the meeting at
10:11 P.M.
RESPECTFULLY SUBMITTED,
ATIEST: Chair
Clerk to the HBCRA Board
RECORDING SECRETARY: Sheena D. James, Clerk to the HBCRA Board
APPROVED BY BOARD: May 2, 2012
April18, 201 2 4
OIG 11-020
EXHIBIT 7
L , )
BROWARD OFFICE OF TH[ INSPECTOR GENERAL
November 7, 20 12
Renee Crichton. City Manager
Bv Hand Dcliven
Re: Agenda Item 14C: Resolution Authorizing the Exploration of Revenue Bonds to Finance
Phase One of the Parks Master Plan
Dear Ms. Crichton:
The 00 is in receipt of yo ur letter dated November 6. 20 12. As this office strives to prevent
mismanagement whenever possible. we are encouraged that the City has now reconsidered its
original course with respect to the repayment of the 2007A Bonds. After reviewing the City's
revised approach. as outlined in yom letter, we agree with Marcum that-should the city begin
paying a pro-rata portion of the 2007 A Bonds in 20 15- the City would correct its initial
misappropriation of the CRA-f1mded bond.
We would. bowever. like to clarify a few points from your letter. You indicated that Item 14C
was not related to CRA funds and that there was no need for the City to consult Dr. Jackson in
the appropriation ofthe 2007A bonds for Scavo and South Beach Parks. With regards to Item
14C, the item explicitly regards additional funding for Phase One ofthe Comprehensive Parks
Plan. lt plainly informs the Commission that the City also planned to rely on 2007 A Bond funds
to partially fund Phase One.
Under your new plan it appears the City may pay its portion ofthe 2007A funds used for City
purposes. Nonetheless, both the City's Fi nance Director and Dr. Jackson have recently admitted
to OJG Special Agents that the CRA was intended to pay I00% of the bond, despite the fact that
the bond was in the City's name and several hundred thousand dollaJs had already been spent
outside of the CRA district. This fact was corroborated by various documents obtained by the
010. Under the circumstances-if the City had continued with its stated course and allowed the
CRA to pay off I 00% of the bond-at a minimum we would have expected Dr. Jackson, the
current CRA Director, to be consulted as those funds were spent.
More importantly, even though the City administration and the CRA were made aware of our
concerns during the interviews, the OLG could not permit the Commission to blindly move
with an effort to obtain $12.7 million in additional debt, with the mistaken impression
John W. Scali. General
One North Universil>' Drive, Suite I ll Plantation. Florida .BJ24 (954) 357-7873 Fax (954) 357-7857
www.brownrdig.org 9:\4-357-TIPS
l
that this amount would complete the total amount needed to fully fttnd Phase One of the
Compt'ehensive Parks Plan. As a watchdog for the taxpayers of your municipality, we believe it
is our duty to inf01m the Commission of concerns whieh might jeopardize the funding of the
overall project.
b1deed, we are pleased that your administration has ultimately acted to address the issue
identified by the investigation as it related to Item l4C. Clearly, we remain concerned with the
circumstances that allowed such an immense oversight to occur in the first place. Onr .final
investigative report will detail those circumstances and contain recommendations which we hope
will, if enacted, create institutional controls that will prevent such misappropriation from
occurring in the future.
~
John W. Scott
Inspector General
JWS:wvd
cc: Honorable Joy Cooper, Mayor, City of Hallandale Beach
and Members, Hallandale Beach City Commission
Alvin Jackson, Jr., Executive Director, Hallandale Community Redevelopment Agency
PAGE 2 01' 2
OIG 11-020
EXHIBIT 8
Renee Crichton, City Manager
City of Hallandale Beach, FL
September 24, 2012
REPORT ON REVIEW AND EVALUATION
FUNDING APPROVAL AND PAYMENT PROCESS
PROPERTY ACQUISITION
416 NE 8th Avenue
Hallandale Beach, FL
INTRODUCTION
The purpose of this review and evaluation was primarily to assess the process for approval and
payment for the property at 416 NE glh Avenue, Ben Gamla Property, and, based on concerns, to
make recommendations for corrective action.
BACKGROUND
The CRA Board of Directors approved the purchase of the above property for $1,200,000 on
July 20, 2011 . A down payment of $25,000 was made from CRA funds on July 22, 2011 .
Subsequently, when the sale closed on November 15, 2011, CRA funds were not used to
complete the transaction. In lieu of CRA funds, funds obtained by the City through a developer
agreement were used. The City Commission did not appropriate these funds for the property
acquisition.
SCOPE AND METHODOLOGY
The review and evaluation was limited to the process for the approval and payment for the
acquisition of above property. Generally, this covered the time period from July 20, 2011
through November 15, 2011.
Procedures performed included:
Reviewed files as provided noting pertinent dates, actions. Watched the part of the DVD
ofthe City Commission and CRA July 20, 2011 meetings authorizing the purchase of the
property. Requested the City Clerk to search records for related actions on the property.
Held discussions with selected City and CRA staff including the prior City Manager to
obtain understanding of their involvement with the payment process for the property
transactions.
Read and reviewed materials, agenda and minutes, development agreement and various
accounting information.
Reviewed City Code or other requirements for the purchase of and payment for property.
1
!....
Held discussions with elected officials to gain understanding ofconcerns about the
process and deviation from the approved acquisition ofthe property. Also, discussed
corrective actions that may be taken.
Performed such other steps as considered necessary under the circumstances.
CONCLUSIONS AND RECOMMENDATIONS
The acquisition of property at 416 NE 8th Avenue, Ben Gamla property, was approved by the
CRA Board ofDirectors at a meeting on July 20, 2011. At the time of approval and as reported
in the meeting, the CRA was expected to fully fund the acquisition at a cost of $1,200,000. A
$25,000 initial deposit was made from CRA funds on July 22, 2011.
According to Ms. Patty Ladolcetta, Finance Director, the CRA had sufficient funds to complete
the purchase; however, funds were not recorded as appropriations in the CRA identified
acquisition accounts for this particular project as set out in the back up materials to the CRA
Board ofDirectors and City Commission agenda items.
Between July 20, 2011 and the November 15, 2011 scheduled closing, activities such as property
inspections, inventorying personal property, arranging for insurance, etc. were carried out. CRA
files reviewed disclosed no concerns about CRA funding of the acquisition. The CRA budget for
FY 2011112 contained no amounts for the completion of this approved acquisition.
A Payment Request form dated November 14, 2011 from Mr. Jackson, CRA Director, showed
the amount to be paid at closing as $1,172,435.70. The form identified the funds to be used as
City developer agreement funds, Fund 374, rather than CRA funds, Fund 130. No explanation
for this switch in funding was provided on the form or located in the files reviewed or provided
by Ms. Ladolcetta or Mr. Jackson. Without City Commission approval and fund appropriation,
actions taken to purchase the property and pay for it with City funds rather than CRA funds were
inappropriate and improper.
City and CRA staff provided little insight into reasons for the revised funding arrangements.
Discussions with three individuals primarily responsible for the payment transaction Alvin
Jackson, CRA Director, Patty Ladolcetta, Finance Director, and Mark Antonio, former City
Manager, disclosed no ownership of the change in funding actions.
Mr. Jackson said he had only been the CRA Director since January 2011 (around 10
months) and did not understand the financial account numbers. He said he called the
Finance Director for an account number and was given the one on the Payment Request
form. Note: The CRA had only one Fund, Fund 130. Fund 347 was on the Payment
Request form. He apparently accepted this fund number without question.
Ms. Ladolcetta said she remembers talking about using City developer agreement funds
since they were available and had remained unspent for several years. She researched her
notes from various meeting but was unsuccessful in locating any referring to this issue.
She related she did not recall how Fund No. 347 came to be entered on the Payment
Request form. She said the City Manager approved it and she accepted it.
2
Mr. Antonio said he remembered discussions about developer agreement funds but that
he did not recall any actions being taken regarding that funding for this property
purchase.
Overall, the payment for the property did not represent the stated, approved understanding of the
CRA Board or the City Commission. The property acquisition was approved by the CRA Board.
The property was not approved by the City Commission for acquisition by the City and the
developer agreement funds were not specifically appropriated for this acquisition.
The purposes of developer agreement funds are generally set out by major categories in the
developer however, these provisions do not take the place of formal City
Commission approval. The Finance Director said she considered approval of the developer
agreement as approval for the expenditure of the funds.
To assist you in the clean-up of this acquisition, I recommend and you have agreed to take action
to bring to the City Commission and the CRA Board of Directors the following items for their
decision:
Decide whether the CRA or the City is to purchase the property at 416 NE 8th A venue.
The decision should be documented by formal action of both the CRA and the City as
needed for the situation and as determined by the City Attorney.
If the decision is for the CRA to acquire the property as was originally approved, a
further decision is needed to address whether the CRA is to hold the property in its name
or transfer it to the City. Based on the decision, the City Attorney should determine if
any deed transactions need to be made.
Based on the decision in 1, designate the source of funds to pay for the property and
formally appropriate the amounts either by resolution or ordinance as determined by the
City Attorney.
To assist you in correcting the accounting records, I recommend and you have agreed to have the
Finance Director make such adjusting entries as are necessary to properly reflect the decisions
and actions by the CRA and the City Commission above for this property acquisition.
To assist you in maintaining a consistency in how City Commission and CRA Board ofDirectors
appropriations of funds are to be made, I recommend and you have agreed to look into
establishing a system formalizing (1) where proposed expenditures from budgeted funds are
included in a budget or a budget revision and (2) where proposed expenditures from a fund not
considered a budgeted fund are separately appropriated before disbursement. I understand you,
your staff, and the City Attorney are in the process of changing to a more formal authorization
process using resolutions and ordinances.
OTHER ITEMS
A payment request form is normally used to make payment for items not acquired through a
procurement system. In this situation, the Payment Request was submitted to pay the balance of
3
OIG 11-020
EXHIBIT 9

MEMORANDUM
DATE: February 13, 2009
c) -<

- <.'. .. : .
.;: ..... - ....
TO: D. Mike Good, City Manager
CL
FROM: Richard D. Cannone, Development Services
SUBJECT: 501 NW 1
51
Avenue- Eagle' s Wings Development Center o n
CAD#02/019
As a follow up to our discussion regarding the purchase of 501 NW 1st Avenue
(the "Subject Property"), I have attached the four (4) appraisals that were
completed for the Subject Property. A summary (company and appraised value)
of those appraisals are as follows:
1. Copy of appraisal completed by Miller Appraisal Group- $230,000.
2. Copy of appraisal completed by LB Slater & Company- $147,000. It
should be noted that there are two appraisals from this company (Reports
13057 and 13057 A). Based upon the valuations of the Miller and
Butterfield appraisals, Staff requested that Slater revaluate the appraisal.
A revised appraisal was provided (Report 13057 A) however the valuation
remained the same.
3. Copy of appraisal completed by Butterfield Appraisals- $275,000.
4. Copy of appraisal completed by RE Analysts-Commercial , LLC
$200,000.
....... _______
As shown above, the initial appraisal for the Subject Property came in at
$230,000. Based upon City Commission direction, additional appraisals were
ordered. The results of those appraisals were $147,000 and $275,000,
respectively. Based upon Staff's experience and due to the fact that the second
appraisal varied almost 50% in value from the first appraisal, the second
appraisal was "thrown out" and a fourth appraisal was ordered. The fourth
appraisal resulted in a valuation of $200,000. As is existent, depending on a
number of factors, not to mention the price negotiated with the seller, values
fluctuate based upon many Ultimately the purchase price for the Subject
Property was set at $235,000, with the Seller contributing 1% ($2,350) to a local
non-profit organization.
As you know infill development is a challenging form of development. It usually
starts by trying. to accumulate enough parcels of land to be able to allow for an
economically feasible project. As such, it is also challenging when determining
values of properties for these infilllots that vary in size, use, status and location.
In particular, the assembly of the right mix of properties coupled with the

l o: D. Mike Good, City ManagE'
Fr: Richard D. Cannone, Direc Development Services
RE: 501 NW 1'
1
Avenue - Eagle's .vings Development Center
-- - --------- --;------
Date.Page 2 of 3
redevelopment of those properties has a positive influence on surrounding
property values.
The City has been actively engaged in acquiring property around the Foster
Road arid NW 1st Avenue area to develop a "G.ateway Profect" for the Palms
Community. The planning for this process began over a year ago and was
discussed by the community through focus groups held for the City-Wide Master
Plan. The concept for this "Gateway Project" was solidified when staff began
meeting with the Palms Community Coalition in early 2008. As we began to
have dialogue with the Palms Community, staff asked that they provide a list of
priories that they would like to see in their community.
What was presented to Staff by the Palms Community Coalition was a power
point presentation (see attached) outlining their budget goals for 2008-2009. As
a result Staff continued to meet on a weekly basis with the coalition to further
refine these goals and come up with a priority list. The consensus of the Group
was to move forward with a Request For Proposal (RFP) for the city-owned
properties at Foster Road and NW 1 st Avenue as the Coalition's number one
priority.
Based upon this priority, staff held some dozen or more meetings with the
commu.nity to further refine the RFP to ensure the community was involved in the
process. As staff began formulate the RFP and look at development scenarios, it
became apparent that the acquisition of the Subject Property was critical as it
was surrounded by city-owned property and more importantly fronts Foster Road .
What was unique to this Property was that to the north the city owned 2 lots that
were "sandwiched" between private properties.
In other wor.QL Staff analYzes _ . .
Avenue between Foster Road and NW 6
1
h Street; however, during the course of
that analysis it made more sense both from a physical and economic standpoint
to acquire the Subject Property fronting Foster Road. By adding the Subject
Property to the existing lots owned by the City to the north, an additional parcel of
almost .5 acres would be able to be added to the 1.88 acres to the east; a total of
2.43 acres. Frontage property is not only "prime property" generally, but in this
case, the Subject Property serves as the linchpin for the "Gateway Project" as it
brings together all of the city-owned properties, especially along Foster Road.
On January 26, 2009 the RFP for the redevelopment of approximately 2.34 acres
was issued. The RFP has been posted on the City's website and advertised in
the Sun-Sentinel on January 30, 2009. As a prerequisite for RFP submittal a site
meeting was required. On February 11, 2009 staff held the site meeting with
approximately seventeen (17) different firms. The intent of that meeting was to
answer any questions as well as explain how the project was conceived. Staff
also explained the "cone of silence" ordinance as it relates to discussion of the
FRP with elected offices.
'fo: D. Mike Good. City Managr
'r'r: Richard D. Cannone, Direc : Development Services
RE: 501 NW 1
11
Avenue - Eagle-, ~ v i n g s Development Center
------oate.Page 3of 3 - - - - - - - - - - - - - ~ - - - - - - - - -
As could be expected, a number of questions relating to land use and zoning
were asked. Staff explained that the RFP site is a unified development site and
will posses the same land use designation and most likely a Planned __ .
Development ofs'trid -(PDD)'Zonlrig designaHon. --Th-erefore-, for ttie purposes of
calculating density, both parcels should be counted as one unified site, allowing
for a right of way. Staff also confirmed with the Broward Planning Council that
this was consistent with the County-wide rules.
The RFP submittal deadline is March 13, 2009 at 4:00'PM. Shortly after that
date, the selection process with staff will commence and ultimately a
recommendation will be presented for consideration.
Reviewed:
D. Mike Good, City Manager Date
_ _ Approved __Di sapproved __Hold for Discussion
----- ----------- ======:::::::=:.::::.::=:====::.=:;;.:. ----- ::.:-=== =- -- - -- ----- - _ - - =- - =-=--================-=:=: -----_____.... .. -
Attachments:
1. . Appraisal Reports for the subject property as prepared by, Miller Appraisal
Group, Buttrfield Appraisals, L.B. Slater and RE Analysts-Commercial,
LLC.
2. Palms Coalition Powerpoint Presentation
cc: Nydi a Rafols, Deputy City Manager
--- ... .... . -- .. -.. .- ... -- . -- -- .. -- .. ~ - - .... . ------- ----- --- .. ---- --- - -
OIG 11-020
EXHIBIT 10
BROWARD OFFICE OFTHE INSPECTOR GENERAL
June 12, 2012
Palms Center for the Arts, Inc.
501 NW 1st Avenue
Hallandale Beach, Florida 33009
Ms. Deborah Brown:
REQUEST FOR RECORDS
Pursuant to its authority set forth in Article XII of the Charter of Broward County, the Broward Office
of the Inspector General (OIG) requests that the Palms Center for the Arts, Inc. (PCA) and Zamar
School of Performing Arts, Inc. (Zamar) provide copies ofthe records set forth below.
Unless otherwise specified, the time period for records being requested is fiscal years 2007, 2008,
2009, 2010, 2011 and through May 31, 2012. Please provide information for PCA and Zamar.
1. Provide names of all banks utilized and bank account numbers.
2. Provide Form 990 filed with the Internal Revenue Service for 2007, 2008, 2009, 2010 and 2011.
3. Provide audited, reviewed or compiled financial statements for 2007, 2008, 2009, 2010 and 2011.
4. Provide payroll records and identify which individuals worked specifically for the programs funded
by City of Hallandale Beach (City) donations/grants. For 2007,2008,2009,2010 and 2011,
provide W-2's and the W-3 transmittal form.
5. Provide a list ofthe names ofall independent contractors that provided services to PCA and Zamar
and the dollar amount paid to them each year. This list should include, but not be limited to,
instructors, program coordinators, program managers and consultants. Please identify which
independent contractors provided services specifically for the programs funded by City
donations/ grants. For 2007, 2008, 2009, 2010 and 2011, provide I 099' s issued by PCA and Zamar,
as well as Form 1096- Annual Summary and Transmittal ofU.S. Information Returns.
6. For each program year, provide a detailed fihancial report documenting all funding received by the
City and how funds were expended.
John W. Scott, Inspector General
One North University Drive, Suite Ill Plantation, Florida 33324 (954) 357-7873 Fax 954-357-7857
Page 2 of2
7. For each program year, provide records that verify the names ofthe individuals that participated in
each program sponsored by PCA and Zamar and funded by City donations/ grants. These records
should include, but not be limited to, registration forms, rosters and sign-in sheets.
8. For each program year, provide records that verify that for each program, deliverables were
accomplished. These records should include, but not be limited to, proof of participant program
completion and documents to support success rate ofprogram participants, as well as any other
documents.
9. Provide training materials provided to participants.
10. Provide brochures produced by PCA and Zamar to advertise programs to potential participants, as
well as promotional material advertising events.
11. Provide documentation to support payments made for equipment purchased with City funding. For
each payment, provide supporting documentation, including but not limited to, invoices, cancelled
checks (front and back) and wire transfer documentation.
12. Provide documentation to support payments made for stipends paid to program participants.
13. Provide facility lease/rental agreements.
14. Provide current insurance certificates.
. .
We request that you provide the above referenced items by JUNE 26,2012. You may comply with
this request by delivering the items to the OIG, which is located at One North University Drive, Suite
111, Plantation, Florida 33324, or by making other arrangements with OIG Special Agent William
Cates. Special Agent Cates can be contacted at 954-357-7873.
Regards,
John W. Scott
Inspector General
By:
1Michael
Deputy Inspector General
One North University Drive, Suite Ill Plantation, Florida 33324 (954)357-7873 Fax 954-357-7857
OIG 11-020
EXHIBIT 11
INVESTIGATIVE MEMORANDUM
From: Special Agent (SA) Ronald Morales
Date: July 31, 2012
File RefNo.: 11-020
Subject: Palms Center for the Arts - Letter of Request
On July 31,2012 OIG SA Ronald Morales (RA) and SA Gil Suarez met with Deborah Brown
and Josh Brown at the Palms Center for the Arts to obtain record documents that were requested
by the OIG on June 12, 2012. During that meeting D. Brown introduced the RA and Suarez to J.
Brown. J. Brown stated that he was there to assist us with whatever we needed and requested to
see the letter of request (LOR) that the RA had in his hand.
J. Brown and D. Brown then had the RA and Suarez sit down on a foldout table were the RA
observed several stacks of documents. D. Brown stated that all the documents that the OIG
needed were on the said table. As the RA started going through the LOR, D. Brown stated that
she really did not understand what the OIG wanted. TheRA then stated that we needed all the
items listed on the LOR. D. Brown stated that there were some documents that she still needed
to look for and some were stolen from her vehicle during a vehicle break-in that occurred at the
Palms Center for the Art parking area approximately 18 months ago. She added that the items
that were still missing; she could have them to the OIG within the next couple of days. During
the process of going through the LOR, the RA noticed that the documents on the table were
disorganized and noticed that Browns continued to look in other areas of the room for
documents. At that point, the RA requested that the review of documents be stopped. The RA
and the Browns then further discussed what documents the OIG was requesting and when the
Browns could have them ready for pick up.
J. Brown stated that when the OIG presented the LOR to D. Brown, he was concerned as to who
was requesting the listed documents and why. He further added that he then went to the City of
Hallandale and asked if he needed to comply with the LOR request. J. Brown stated that
someone at the City of Hallandale told him that he did not need to comply with the LOR's
request and all that he needed to present to the OIG was the quarterly report that all non-profit
organizations are required to submit to the city. J. Brown did not specify who told him not to
comply with the OIG. TheRA then directed his statement to D. Brown and told her that he has
spoken to her on two separate occasions and she informed him that she had all the documents
that were requested from the OIG and even suggested that OIG retain her documents to make
copies and bring them back to her. D. Brown stated that she was aware of that conversation, but
was unclear of what documents the OIG exactly wanted.
Investigative Memorandum Page 1 of2
TheRA then went line by line on the LOR with the Brown's and documented what items needed
to be available for review the next time the OIG met with them. The Brown's agreed to all,
except for item number two, because they stated that they did not file a 990 Internal Revenue
Form with the Internal Revenue Service (IRS). They both stated the reason for that was that they
were partially a non-profit organization with exceptions of being tax exempt on purchased items.
Also they added that they paid their employees as subcontractors via the Internal Revenue Form
1090. SA Suarez advised both D. Brown and J. Brown to partner with their accountant and
ensure as to how they filed with the Internal Revenue Service. They both agreed and ensured
both the RA and Suarez that all requested documents would be available the next time that we
met. TheRA requested that we reconvene our meeting on Thursday Aug 2, 2012. D. Brown
requested if we could meet on Monday, Aug 6, 2012, because she was very busy this week with
school starting. TheRA informed her that he would need to check with his supervisor, since
they were already more than a month late in providing the documents to the OIG. TheRA
informed D. Brown that he would contact her later that afternoon and inform her of what the
RA's supervisor said.
TheRA informed the Deputy Inspector General (DIG) of D. Brown's request and the DIG
agreed to wait until Monday, Aug 6, 2012. TheRA called both J. Brown and D. Brown to
inform them of the OIG' s approval, but did not get an answer from either one. D. Brown called
the RA several minutes later and the RA informed her that the DIG approved her request.
Attached: LOR
Investigative Memorandum Page 2 of2
OIG 11-020
EXHIBIT 12
BRO'vVARD OFFICE OFTHE INSPECTOR GENERAL
October 17,2012
Deborah Brown, Program Director
Palms Center for the Arts, Inc.
501 NW 1st Avenue
BY HAND DELIVERY
Dear Ms. Brown:
As you know, the Broward Office of the Inspector General (OIG) has made repeated requests to
interviewyou in connection with an ongoing investigation. The Charter ofBroward County, at
Section 12.01(B)(9), states that "[a]ll Officials, Employees, and Providers shall fully cooperate with
investi gations conducted by the Inspector General. " Nevertheless, to date, you have failed to comply
with our requests.
The Charter, at Section 12.01 (B)( 1 0), also directs our offtce lo interview all persons "implicated"
during an OIG investigation. Our investigation has identified you as an implicated person.
Accordingly, please notify OIG Special Agent William Cates at (954) 357-7873 by OCTOBER 22,
2012 of the date and time at which you will participate in an interview. If you do not respond within
that time period, the OIG will, at a minimum, consider your failure to act to be a waiver of any
protections which may be afforded to you by the Charter
Regards,
John W. Scott
Inspector General
By:
~
nnifer Merino
General Counsel
,.
JM: wvd
John W. Scott. Inspector General
One North University Drive, Suite I l l Plantation, Florida 33324 (954) 357-7873 Fax 954-357-7857
OIG 11-020

APPENDIX A

From: BECJ ULI@aol.com
To: InspectorGeneral
Subject: FROM----COMMISSIONER----BILL J ULIAN----HALLANDALE BEACH.
Date: Friday, March 08, 2013 10:54:45 PM
To Inspector General
J ohn Scott,
I have finished reading your report.
I will not make comments about what others have said,
but I wanted you and your staff to know that my
interview was correct, and told exactly as I have stated,
fair and balanced.
After reading the entire document and having served
during this time of investigation, in my opinion you have
a very good picture of our CRA from the start, and to the
end of your findings.
Bill J ulian--City Commissioner--Hallandale Beach
(954) 274-7230
OIG 11-020

APPENDIX B

As of March 5
th
the OIG sent a copy of his draft report of his findings and opinion from his yearlong
investigation of the Hallandale Beach CRA that began in early 2012 to all parties to the investigation. At
that time the OIGaccompanying letter stated that the record was a draft and not yet a public record. He
provided to all parties involved the opportunity to respond to his report before April 4
th
. At that time
the draft and responses would all be made part of the public record. In respect of the process and even
though the record was released by another party I have refrained from responding until this date. As
Chair of the CRA Board and Mayor I want to take this opportunity to address the draft report.
First and foremost I want to reassure the taxpayers of Hallandale Beach that I take all matters pertaining
to oversight very seriously. As noted within the findings many of his observations have already been
address by our CRA Board of Directors and City Commission as a result of our own special procedures
audit. The report confirmed as early as 2011 changes were made. I am pleased that this investigation
has been completed. I am concerned that the complaint/s and complainant/s referred to in the report
were not included. I would hope that they are disclosed as part of the public record, as with other
reports from the OIGs office.
The report also affirms the lack of stable constant management staff had impacted the day to day
operations of the CRA. I along with the rest of my colleagues have hired different staff and will continue
to hold the Executive Director and the City Manager accountable for deficiencies in the day to day
operations of the CRA and City respectively. We recently dismissed the Executive Director Alvin Jackson
for failure to perform day to day operations and communicate clearly his actions to the BOD in an open
transparent manor.
The CRA goals and objectives are set by the Board. Over the years there was never a vote taken without
legal counsel present. This was to insure actions were within the scope of State Statue 163. The duties
of the Executive Director have also been executed under the laws that govern state statue. The OIG has
opined on an Attorney General advisory opinion that narrowly defines CRA spending activities. This is an
opinion and not binding law.
Policy and goals are set by governing body. Administrative procedures and internal controls are
implemented as the result of the leadership of the manager and executive director. With this said the
City Attorney, the CRA Attorney and Executive Director have drafted a response to all the allegations
where the OIG suggested there was gross mismanagement in the day to day operations under a
different cover letter.
Our CRA attorney will also address the greater concern that the OIG does not have jurisdiction over
R!s within the county ordinance. In order to maintain transparency and avoid the chilling effect a
lawsuit would have had on public trust during this investigation, the CRA BOD and City Commission
agreed to move forward with full cooperation in the investigation rather than challenge the OIGs
actions.
I stand firm in the fact that the action of the CRA has been within state statue. The act provides fairly
broad language that provides the CRA ability to eradicate slum and blight through a CRA plan. The

nature of a CRA while using tax funding is quite different then general government. The flexibility in 163
creates great opportunity to address slum and blighted condition though a dependant taxing agency.
In addition to establishing the plan the BOD has responsibility of providing oversight of TIF budget. The
Hallandale Beach CRA Board of Directors has always met as a separate board. We have conducted our
meetings in the sunshine as required by state law. We have implemented CRA plan since the inception
of the CRA and have updated the plan and budgets by majority vote. We have submitted our annual
report not only to the city but to the County and State.
It has been the policy of the Board of Directors to comprehensively address slum and blight conditions
by many programs not solely with ricks and Mortar projects. The grant and loans referred to are
not a significant portion of our CRA but we do expect our professional staff to insure that administrative
protocols are in place, not only to meet the policy of the BOD but insure TIF dollars are spent for the
sole purpose of benefiting the CRA. The Executive Director is also responsible for the hiring other
personnel, executing contacts and the purchase of goods and services to maintain operations in the
CRA.
I am in agreement and have supported actions that addressed deficiencies pointed out in our own
special procedures audit and reevaluated and reaffirmed by the OIG. There are areas in my opinion that
the OIG report is not accurate.
The suggestion that due to OIG inquiry, staff has developed a plan for the City to pay for parks outside of
the CRA is not accurate. There was never and would never be a time that the CRA BOD would spend
money on Bricks and Mortar outside of the R!. Pro rata bond proceeds would be paid for
appropriately by the city. The contract for the construction of the two parks in question has not even
been fully executed and not one shovel has even been placed in the ground.
Grants to outside agencies are permitted within our CRA plan according to our legal counsel. The
projects that have been paid for have been implemented. The many nonprofits that we have partnered
with have implemented successful programs that have kept children off the streets and people
employed. While these programs reflect only a small percentage of our CRA budget the monitoring of
these programs has continued to become more elaborate.
As for the Palms Art Center I do not have intimate knowledge of their book keeping so I cannot
comment on the probable cause. I have witnessed the work they have performed in the community
first hand. They have provided afterschool programs summer camps and an art to work program.
The loan to DOI in my opinion was not gross mismanagement of the CRA. The loan was made and
approved by the BOD to establish a minority owned startup business in the core of the CRAs blighted
area. It was an opportunity to develop a technology based service business unique to the traditional
business model. While the business did not succeed it would be have been different story if they did.
Regretfully the economy was failing and the owner suddenly died.

The Business Incentive Programs will have inherent risk by the nature of them being in a CRA and not
being a municipal function. It should be noted many CRAs simply provide grants without repayment.
Our BOD decided to create a combination of grants (loan forgiveness) and loans to allow for the
repayment of TIF for future use and to further the goals of the CRA.
It is inaccurate to state that the SBREP was established for particular borrowers and then suggest it
was for one business. The Small Business and Retention Program was discussed during a CRA workshop
as a program to include relocation dollars, micro loans and rent subsidies for any business within the
CRA in light of the changing economy. Mr. Good did not set up the programs policy in a timely manner
after the CRA workshop. The loan that was given to the Sun Times to relocate was executed and
approved by the Executive Director within his authority. Mr. Good has since stated that if he had known
the salaries of the principal owners he would not have loaned them money. Since this decision salaries
were added as one of factors to be considered when loans are evaluated programs.
I do not agree with the conclusion of the OIG in the handling of the purchase of HVM. It was done in the
sunshine and was vetted appropriately by the Executive Director through an appraising process. The
property had been discussed at multiple meetings and negotiated by the Executive Director. Since the
average appraisal of the property was fund to e over the 200,000 dollars purchasing authority it was
brought to the board. There was no one from the public denied any access to the process and every
meeting that has been held by the board has been accessible. Any comment to the contrary is only
hearsay.
I am pleased that the OIG has addressed that there was not an over payment for the property
purchased from Higher Vision Ministry. That the property was purchased for fair market value and that
the only error was by staff miscalculation the pay off at closing. This was concluded to be a human error
in calculations.
Since then even though the Executive Director was going to waive the cost to the church it is still being
paid off by them. The continued complaints and speculations on this purchase were solely due to the
fact this property was owned by Higher Vision Ministry that is run by Pastor Sanders who serves on the
commission and BOD. No policy or procedure would have changed the politics behind these complaints.
The other area that was not addressed is the fact that the R! is participating in the overall
Technology Replacement Program being implemented by the city. These technology advancements will
provide new accounting framework and software to accommodate all departments and also be
beneficial to CRA.
I will continue to work side by side with residents my colleagues and staff to further the goals of our
R!. We will continue to work within the state statute that governs R!s and provide oversight to our
Executive Director. There is always room to improved efficiencies and in this case the BOD has
implemented changes even before the OIG started his investigation.
As always please feel free to contact me at anytime with your questions and concerns at my office 954-
457-1318 or cell/text 954-632-5700 or e-mail me at www.MayorJoyCooper.com
OIG 11-020

APPENDIX C

Hallandale Beach
PROGRESS. INNOVATION. OPPORTUNITY.
OFFICE OF THE CITY
ATTORNEY
V. Lynn Whitfield
City Attorney
Andre McKenney
Assistant City Attorney
JOY F.COOPER
Mayor
ALEXANDER LEWY
Vice Mayor
WILLIAM JULIAN
Commissioner
MICHELE LAZAROW
Commissioner
ANTHONY SANDERS
Commissioner
.... . ., 1 ~ ~
L: . .. -r,
. '2: 3L!
April 4, 2013
John W. Scott
Inspect or General
Pla ntation, Florida 33324
Re: Response to OIG Preliminary Report
Ref. No. OIG 11-020
Dear Mr. Scott:
Attached please find the combined r esponse of the City of Halla ndale Beach
a nd the Hallandale Beach Community Redevelopme nt Agency to your
Preliminary Report. We look forwa rd to the issua nce of your final report
after the consideration of the points raised in our response.
Also, can you advise whether or not the names of the complai nants will be
included in your final report, as they have in othe r reports issued by your
office?
If you have any questio ns, do not hesitate to contact my offi ce.
V. Lynn Whi t fi eld, Esq.
Ci ty Attorney
www.coHB.org
Hallandale Beach
PROGRESS. INNOVATION. OPPORTUNITY.
CITY OF HALLANDALE BEACH AND
HALLANDALE BEACH CRA
RESPONSE TO
OIG PRELIMINARY REPORT
REF No. OIG 11-020
INTRODUCTION:
Pursuant to and in accordance with Section 12.01(D}{2}{a) of the Broward County Charter ("Charter"),
the City of Hallandale Beach ("City") and the Hallandale Beach Community Redevelopment Agency
(" CRA") submit this response to the OIG Preliminary Report Ref. No. OIG 11-020, and request that this
response be included in the final report. This response will address certain matters including (i) whether
certain of the OIG f indings actually rise to the level "gross mismanagement"
1
, (ii) correcting numerous
factual inaccuracies and (iii) highlighting the remedial steps previously taken and their continued and
expanded implementation.
As a threshold matter that needs to be noted, it is the continued position of the CRA that the authority
of the Inspector General does not extend to a community redevelopment agency and its board
members. Pursuant to Section 12.01.B(1) of the Charter, the authority of the Inspector General only
extends over (a) all Officials and Employees of the County and Municipalities and (b) all Providers, but
solely with respect to the provision of such goods or services (all as defined in the Code). A community
redevelopment agency is a special district (see Section 189.403, Florida Statutes), which is created and
regulated in accordance with Part Ill of Chapter 163, Florida Statutes. A community redevelopment
agency is a separate legal entity, which is a public body corporate and politic (see Section 163.356(1),
Florida Statutes), and its board members are public officers (see Section 112.3143(1), Florida Statutes).
Accordingly, pursuant to the plain language of the Code, the Inspector General does not have authority
over a community redevelopment agency. To the extent that a community redevelopment agency
provides goods or services to a Municipality, such would be considered a Provider. In such case, the
Inspector General would have authority, but solely with respect to the provision of such goods or
services. As public officers, the board members of a community redevelopment agency are regulated by
the Code of Ethics for Publi c Officials set forth in Part Ill, of Chapter 112, Florida Statutes, not the Code.
The Florida Commission on Ethics is the office responsible for investigating and issuing public reports on
complaints of breaches of the public trust by public officers and employees.
BACKGROUND AND RELEVANT GOVERNING AUTHORITIES:
The foregoing is further evidenced by the brief dissertation in the preliminary report regarding
community redevelopment law. Beginning on page 2 and elsewhere throughout the preliminary report,
there are general statements and references to the Florida statutes governing community
redevelopment agencies. However, the preliminary report ignores legal precedent as to how these
statutes have been interpreted and the flexibility provided to community redevelopment agencies in
carrying out their statutory mission to eliminate slum and blight. It is this failure which results in the OIG
erroneously coming to certain conclusions that the City and CRA grossly mismanaged public funds
By way of background, the definition of a "community redevelopment project" is a broad one,
encompassing a wide variety of undertakings and activities in a community redevelopment area directed
toward the elimination and prevention of the development or spread of slums and blight. There is very
1
Section 12.01(A)(3) of the Broward County Charter defines "gross mismanagement" as "the material waste or
significant mismanagement of public resources."
11 Page
little case law or authority providing guidance as to what types of projects may or may not qualify as a
community redevelopment project. However, in Panama City Beach CRA v. Fla., the court interpreted
the statute in flexible terms without strict limitations and supported the contention that legislative
determinations (i.e., these projects serve a public purpose) should be given deference in Florida law.
831 So. 2d 662 (Fla. 2002).
It should also be noted that the community redevelopment powers in 163.370(2), Fla. Stat., are not all
inclusive and this section is not limiting, to wit: "Every county and municipality shall have all the powers
necessary or convenient to carry out and effectuate the purposes and provisions of this part, including
the following powers in addition to others herein granted:" Moreover, 163.387(6), Fla. Stat., further
supports the proposition that the powers are not all inclusive: "Moneys in the redevelopment trust
fund may be expended from time to time for undertakings of a community redevelopment agency as
described in the community redevelopment plan for the following purposes, including, but not limited
to:" Therefore, unless expressly prohibited by law, community redevelopment agencies may act when
the powers are necessary and convenient to carry out the purposes of the statute as well as authorize a
public body to act. City of Boca Raton, Florida v. Florida, 595 So. 2d 25 (Fla. 1992) (a municipality may
exercise governmental power for a municipal purpose except when expressly prohibited by law).
With regard, to prohibited use of tax increment funds, 163.370(3), Fla. Stat., only expressly prohibits
three types of projects that may not be paid for or financed by tax increment revenues: (1)
Construction or expansion of administrative buildings for public bodies, unless each taxing authority
agrees to the financing or unless the construction or expansion is contemplated as part of a community
policing innovation; (2) Publicly owned capital improvements or projects if they were scheduled within
three years of the approval of the redevelopment plan by the governing body ...; and {3) General
government operating expenses unrelated to the planning and carrying out of a community
redevelopment plan.
Finally, to demonstrate the flexibility as to how a municipality and community redevelopment agency
may interact in the exercise of their power, one only need to look at 163.400, Fla. Stat., which, among
other things, authorizes a municipality and community redevelopment agency to "[d)o any and all things
necessary to aid or cooperate in the planning or carrying out of a community redevelopment plan and
related activities. "The foregoing and other specific references throughout this response are for the
purpose of further illustrating the relationship between a municipality and a community redevelopment
agency as well as the application of the provisions of Chapter 163 by Florida courts in order to
demonstrate that gross mismanagement did not occur.
RESPONSE TO FINDINGS:
Findings of Gross Mismanagement Related to the Structure and Function of the CRA
Item One: Failure to Establish the CRA Redevelopment Trust Fund
The preliminary reports states that the City failed to establish a Redevelopment Trust Fund until May
2012. This is clearly not the case. In December 1996, the City adopted Ordinance No. 96-25 for the
21 Page
purpose of creating the Redevelopment Trust Fund and otherwise complying with the requirements of
Chapter 163 relative thereto. The Ordinance is replete with the statutory references and required
language necessary to establish the Redevelopment Trust Fund. Apparently, the OIG takes issue with
the City administering the Redevelopment Trust Fund on behalf of the CRA as set forth in the Ordinance.
However, the OIG does not reference any statutory or other authority that would prohibit the City from
administering the Redevelopment Trust Fund on behalf of the CRA. A review of 163.387, Fla. Stat.,
does not reveal any such prohibition. Additionally, the statute does not contain a requirement that the
Redevelopment Trust Fund be maintained in a separate bank account.
In the summary of interviews provided in the preliminary report, it is reported that Dr. Jackson stated
" he has been forced to rely on City staff to provide him with finance and accounting information, and
was not able to verify the accuracy ofthe information provided". It is the City' s position that Dr. Jackson
was not "forced" to rely upon the City staff. The CRA chose to have the City' s Finance Department serve
as is Fiscal Agent while the City Managers were the Executive Director. Once Dr. Jackson was named the
Executive Director, he choose to continue his relationship with the City Finance Department working as
the Fiscal Agent for the CRA, and recommended to the CRA Board through a Memorandum of
Understanding (Exhibit One) on October 16, 2012, that the City of Hallandale Beach Finance
Department operate as his Fiscal Agent for a fee. As the Executive Director, he had the power and the
ability to contract with an independent auditing firm to validate the data provided, or utilize his
independent spending authority and position to address his administrative concerns with respect to the
day-to-day operation of the CRA.
Furthermore, in December of 2012, based on concerns raised by the City Manager regarding the lack of
controls placed on the account opened by Dr. Jackson, staff of the Finance Department took the
initiative to establish proper banking controls and protocols on Dr. Jackson's behalf (Exhibit Two) . Since
the appointment of the City Manager Renee Crichton Miller in the role of the Executive Director and the
subsequent hiring of a new CRA Director on February 19, 2013, the CRA has engaged the firm of
Sharpton, Brunson & Company, P.A. to complete the financia l statements for Fiscal Year ending
September 30, 2012 (unaudited) and confirm all fund balances in an effort to quell any questions
associated with the veracity of the financial data. A solution that could have been proffered by Dr.
Jackson, as the cost of the engagement was well within his spending authority during his tenure.
Item Two: Failure to Operate the CRA as a Separate Legal Entity.
Pursuant to Section 163.356, the CRA was created and the members of the City Commission were legally
appointed as its Board of Directors. So, although the CRA's governing board is comprised of the same
persons as the City Commission, the City created the CRA as a separate legal entity and has always
acknowledged that the CRA is a separate legal entity and attempted to operate it as such utilizing the
City Manager as the Executive Director. As discussed below, the CRA has taken additional steps to
distinguish itself as a separate entity. However, it should be noted that none of the allegations in
support of the OIG's position that the CRA is not operated as a separate legal entity - failure to
promulgate By-laws, policies and procedures, obtaining a separate taxpayer identification number and
applying for IRS 501(c)(3) status are statutorily required.
3 I Page
Prior to the OIG investigation, the CRA Board of Directors took the following steps to further illuminate
the distinction between the two entities: hired a CRA attorney to advise the Board; to draft By-laws and
policies for the governance of the CRA Board; and to assist with the drafting of an updated CRA plan.
Other changes were recommended and adopted by the CRA Board, again all prior t.o the initiation of the
OIG investigation. In fact the preliminary report recognizes that the By-laws, policies and updated plan
were all adopted in March, 2012, less than three months after the OIG began its investigation.
The CRA acknowledges the fact that there have been years of instability in staffing that has led to
ineffective management. In recognition and response to this problem on January 14, 2013 City Manager
Renee Crichton Miller made a presentation to the CRA Board of Directors, asking them to provide final
direction regarding the future governance of the CRA. In making that presentation the City Manager
listed the challenges that have existed with the Executive Director Model:
Maintaining clear and consistent lines of communication
Efficient project completion
Fiscal Separation and Accountability
Ensuring that City priorities are clearly aligned with CRA priorities
Maintaining momentum of current project to ensure community satisfaction
Based on that presentation, the CRA Board made the determination that similar to 54% of the CRAs
statewide and 67% of the CRAs in Broward County, the Governance Structure of the CRA moving
forward would be to place the day-to-day operation of the CRA under the supervision of the City
Manager's Office. In order to address the issue of stability and to ensure that a professional with the
skills to operate independently to manage the day to day responsibilities was in place, a new position in
the City Manager's office was staffed to function in the capacity of Deputy City Manager/CRA Director.
Furthermore, in an effort to ensure the highest level of accountability and collaboration, the new
Deputy City Manager/CRA Director has functional supervision over the City Departments that have the
most synergy with CRA. Funding for this position is split between the City Funds and the CRA and the
employee tracks his hours and submits an accounting report quarterly in line with the invoicing process
that exists for the purchase of City services by the CRA.
This change in governance structure and the hiring of professional staff to support the CRA is in line with
OIG Recommendation One which states that:
"The CRA should take considerable steps to ensure that retention of stable CRA staff. Whether
the Executive Director duties remain with the City Manager or are again filled by an
independent officer. The CRA should incorporate some kind of independent management for
CRA issues."
It is the desire of the City and the CRA to establish a stable management team and to continue to grow
the skill sets and internal knowledge base of the CRA staff moving forward in order to build a strong,
stable and productive team.
41 Page
Item Three: Failure to Generate Detailed CRA Plans
The preliminary report asserts the CRA failed to generate detailed Redevelopment Plans in general and
did not contain specifics required by Chapter 163 including capital projects for 2010-2012. A review of
163.360, Fla. Stat., indicates that, while there are certain basic requirements for inclusion in a
Redevelopment Plan, a community redevelopment agency is free to tailor its Redevelopment Plan as
necessary to address the process for eradication of the slum and blight identified in the Finding of
Necessity. Accordingly, Redevelopment Plans come in all shapes and sizes depending upon the
particular redevelopment issues to be addressed. A survey of Redevelopment Plans statewide will show
no two are alike. They range from very general to extremely detailed. Additionally, there is no statutory
requirement to update the Redevelopment Plan. At this point, the CRA has taken the remedial action to
amend and update the Redevelopment Plan to include specific capital projects and programs relevant to
its current redevelopment activities. The Redevelopment Plan will continue to be updated as necessary
to reflect the changing nature of the CRA's redevelopment activities.
Item Four: Failure to Maintain a Stable and Empowered CRA Staff and Ensure Compliance with 163
As stated in Item Two, the CRA Board has made a determination moving forward regarding governance
and we feel that the current employees skill sets, coupled with the oversight and guidance of an
independent CRA Attorney, works in tandem to address the concerns raised in this item. The CRA
Executive Director is building a team of professionals to create a healthy and dynamic check and balance
internal to the CRA as well as in its external transactions with the City.
The OIG's observations in this area seemed to center on the dominant managerial style of the former
City Manager who has not been in a position of authority in the City since 2010. Three years later, the
leadership of the City has changed as has its governance, operations, and internal controls, all in an
effort to continue to improve the administration and ultimately the results of the CRA. The CRA has
implemented the following to continue to ensure compliance:
Comprehensive evaluation of all CRA Staff to ensure capacity (specifically, the position of
Financial Analyst will be redefined to reflect a senior level accounting function)
Amendment of current CRA program policies to ensure sound loan/grant underwriting criteria
and fund recipient eligibility
Modification of Neighborhood Improvement and Business Improvement Program loan approval
process to ensure checks and balances
Modification of Community Partnership Grant evaluation and approval process, ensuring agency
eligibility, delivery of services, eligibility of clients served, and disbursement of funds
Thorough agenda review process to include CRA Attorney, which ensures legal sufficiency and
compliance with Chapter 163 F.S. prior to review and approval by the Board
5I P age
Specific Improper and Questionable CRA Expenditures
Item One: Multiple failures in the Charitable Distribution of CRA Funds
a) The CRA did not use a transparent process nor standardized criteria to awardfunds
As noted above, there are only three statutory prohibitions as to the expenditure of tax increment
funds. Moreover, Chapter 163 does not require a "transparent process or standardized criteria" to
award grant funds. Accordingly, the processes previously utilized by the CRA did not run afoul of
statutory requirements and cannot be characterized as gross mismanagement. However, in an effort to
provide a more transparent and standardized process, starting with grant solicitations for Fiscal Year
2013-14, the CRA has implemented a formalized grant solicitation, review and selection, and monitoring
process. The implementation of this program has been a delicate balance to design a process that
ensures a level of accountability while ensuring that the CRA administrative process is not so challenging
that small local not-for-profit organizations can no longer navigate the system.
The CRA through its new CRA Director will provide technical assistance workshops to not-for-profit
organizations which are intended to arm entities with information needed to provide sound grant
proposals. The grant proposal process will be enhanced to create specific criteria that will ensure that
funded proposals are indeed in alignment with CRA priorities. The grant solicitation document will
reflect said criteria in the scoring instrument. Funded agencies will be required to provide monthly
reports reflecting tangible service delivery numbers, including client information. Said information will
be reviewed by CRA staff to ensure contract compliance, and will be used to trigger payment to funded
agencies.
b) The CRA did nothing to verify the performance of the recipients of charitable donations
The CRA acknowledges that the best practice would be to have a formalized grant solicitation and
monitoring process, neither the Florida Statutes or any other legal authority requires any governmental
entity, including CRAs to have such a formalized system prior to the distribution of funds or afterwards.
The legal requirement is that the funds be utilized for a public purpose. It is the responsibility of the
governing board to determine whether or not it is a public purpose.
c) CRA Funding of Non-Profits and Civic Displays were Beyond the Scope of Chapter 163
In this section, the preliminary report makes certain conclusions including "the CRA made
expenditures of at least $1,474,739 in payments to non-profits entities for socially-beneficial programs
that appear to have been outside the scope of Chapter 163." In arriving at this conclusion, the OIG relies
substantially, if not solely, on Attorney General Opinion 2010-40 ("AGO 2010-40"). While the OIG states
that AGO 2020-40 stands for the premise that a community redevelopment agency cannot provide
grants to non profits providing socially beneficial programs, a close reading of this opinion will reveal that
the Attorney General gives no definitive answer as to whether or not all grants to nonprofits are outside
6I Pag e
the scope of the community development act. Furthermore, the OIG also fails to take into account the
non-binding and advisory nature of an Attorney General Opinion and ignores the body of binding legal
precedent regarding expenditures by community redevelopment agencies.
2
So, first and foremost, AGO
2010-40 should be viewed in light of what it is - a non-binding advisory opinion. Furthermore, this
Attorney General Opinion should not be viewed as contradictory to statutory language and prior legal
precedent regarding the expenditure of tax increment revenues.
AGO 2010-40 acknowledges that pursuant to Chapter 163, CRAs are empowered to engage in activities
which will reduce or prevent crime. It is well established that providing positive activities for young
people to be involved in will reduce the opportunity for them to become involved in criminal activities.
Therefore, before a definitive answer can be given as to whether or not a grant to a specific nonprofit is
outside of the powers given to a CRA under Chapter 163, you must first examine the activities of the
nonprofit to see if they are engaging in activities which will result in the reduction or prevention of
crime, which a lot of them do. For instance, one agency, PCA, which is mentioned in the report, was
also funded by the Federal Weed and Seed Program. The Weed and Seed Program is designed to
prevent crime. Accordingly, the evaluation must be done on a case-by-case basis and cannot be covered
by a blanket statement.
While the grants might not have been specifically listed or set forth in the previously adopted CRA plans
of 2001 and 2004, it cannot be substantiated that the CRA's grants were outside the powers granted to
it pursuant to Chapter 163.
Item Two: CRA Loan Program Grossly Mismanaged
In concluding the CRA grossly mismanaged certain loan programs, the OIG again fails to understand the
mission of a community redevelopment agency to eliminate slum and blight and the need for flexibility
in the administration of its programs. Further, it also fails to acknowledge that, at times, in an effort to
stimulate redevelopment, loans may be made to entities that may not otherwise qualify for institutional
financing. This is the nature of community redevelopment. In certain instances, such may result in
2
I. General Nature and Purpose of Opinions
Issuing legal opinions to governmental agencies has long been a function of the Office of the Attorney General.
Attorney General Opinions serve to provide legal advice on questions of statutory interpretation and can provide
guidance to public bodies as an alternative to costly litigation. Opinions of the Attorney General, however, are not
law. They are advisory only and are not binding in a court of law. Attorney General Opinions are intended to
address only questions of law, not questions of fact, mixed questions of f act and law, or questions of executive,
legislative or administrative policy.
Attorney General Opinions are not a substitute for the advice and counsel of the attorneys who represent
governmental agencies and officials on a day to day basis. They should not be sought to arbitrate a political dispute
between agencies or between factions within an agency or merely to buttress the opinions of an agency's own
lega l counsel. Nor should an opinion be sought as a weapon by only one side in a dispute between agencies.
(reprinted from www.myfloridalegal.com)
71 P age
financial losses and require the waiver of certain loan program terms. Such does not necessarily
constitute gross mismanagement in the realm of community redevelopment.
It is important to note that the preliminary report states that ... "the OIG's review of documentation for
the procurement of the new ERP upgrade disclosed that no loan management module was included in
bid received by the City." While that is factually correct, the OIG failed to note that the CRA issued a
separate RLI on November 9, 2012, for their loan management software (Exhibit Three) as this is
separately budgeted by the CRA, the RFI can be viewed on the City's website at
http://www.cohb.org/DocumentCenter/View/6371 . Responses to this RLI were received on December
21, 2012 and were transmitted to then CRA Executive Director for Evaluation. In light of Dr. Jackson's
departure, the evaluation of the responses were not completed. The new CRA Director has revived this
effort and will be moving forward with the formal evaluation process.
Item Three: CRA Funds were improperly used to Repay City Bonds
The City again asserts that the OIG has mischaracterized all aspects of the repayment of the City Bonds
in the preliminary report. The OIG asserts that the City committed an "immense oversight" in the
repayment of the Bonds. This assertion would be valid if in fact the project had begun, the funds had
been drawn down, or that an affirmative action to actually expend outside of the CRA Boundaries for
these parks occurred. This raises the question of how the OIG is prematurely accusing the city of
mismanagement before the event the alleged violation even occurs. The preliminary report takes
considerable time addressing an August 2012 Commission meeting wherein City Manager Renee
Crichton Miller discusses the funding for the Parks Plan. The report fails to note that the context of the
discussion was funding the overall Parks Master plan (which includes all 13 City park facilities), the
renovation of the main fire station, as well as the purchase of the Post office facility, which had nothing
to do with CRA revenues, or the repayment of bonds already issued.
During her interview, City Manager Renee Crichton Miller, was asked why she did not go into detail
about the repayment of the Bonds, the City Manager advised that it was because in November of 2011
the City Commission addressed how these parks would be financed and already voted on the allocation
of these funds. The City Manager would have no need to address the mechanics of the repayment
when to her knowledge these questions have been asked and answered in 2011. Furthermore, the OIG
report states that the Finance Director asserted that CRA would repay the bonds. This is factually
inaccurate; Ms. Ladolcetta actually stated that repaying of the amount for Scavo and South Beach Parks
was not an issue yet, because the funds have not been drawn down from the Florida Municipal Loan
Council.
The most inaccurate assertion in this section of this report rests with the OIG' s assertion that the reason
that the City " devised a plan" for the repayment of the bonds was the OIG' s letter of November 5, 2012.
This is again factually inaccurate. The City Manager made it clear in her statement to the OIG that since
her tenure at the City in June of 2012 it was understood by her office and, to her knowledge, by the City
Commission as well, that the City would pay its pro-rata share of the debt service. She testified that
there were two schools of thought as to how and when the City would pay its pro-rata share: Thought
8I Page
(1) that the CRA would retire its portion of the debt and the City take over the remaining payments to
retire the debt (equal to is proportionate share (22%) of the debt); Thought (2) was that the
amortization schedule and the debt service payments for the bond would be split between the City and
the CRA at the conclusion of the Scavo and South Beach Park projects (estimated to be on or after FY
15).
In an effort to effectively respond to the OIG' s November 5, 2012, letter, the City went the extra step to
obtain confirmation from the City's external auditor as to the appropriateness of the City's approaches.
The external auditor affirmed that both approaches are acceptable accounting practices, however, the
auditor recommended that the city utilize the split amortization schedule. The OIG' s inclusion of this
issue in the preliminary report is puzzling in that the position seems to rest on the OIG's opinion that the
mechanics of the repayment of the City's portion of the bond should have been clearly laid out in the
public discussion on August 2012. Which as stated above, was not the main issue being addressed
before the commission. The OIG also asserts that the repayment of the bonds by the City should have
showed up in the City budget documents. The City does not include amortization schedules in its budget
document, and is not aware of any requirement or GFOA/GASB best practice that states that the City
must document debt repayment in this manner. Furthermore, the repayment would not be in effect
until FY 15 at the earliest, therefore the OIG is suggesting that the repayment be shown in the City's
budget four years prior to anticipated expenditure. As stated above, the City is not aware of any
requirement or GFOA/GASB best practice that states that the City must document debt repayment in
this manner. The City objects to the inclusion of this matter in the report.
Other Scrutinized Activities
Item One: There is probable cause to believe that Dr. Brown caused PCA to Misapply $5,000
The CRA will monitor the progression of this issue closely regarding the potential criminal investigation
into this matter.
Item Two: The Ben Gamla Property was purchased with City, Not CRA Funds
The City owns the fact that greater communication should have taken place between former City
Manager Mark Antonio, former Finance Director Patricia Ladolcetta, and former CRA Executive Director
Alvin Jackson. The City took the initiative to hire an independent auditor to evaluate this transaction in
an effort to be transparent in its review of the matter. The City's response with respect to the OIG's
additional concern that "CRA Administration was not granted any independent authority over the CRA
funds and accounts, up to and including being completely ignorant to the CRA's actual balances" is that
the former Executive Director (then CRA Director) was the person responsible for initiating the wire
transfer on the Ben Gamla Property. The act of initiation of the transfer includes the identification of
the proper accounts. At no time did CRA Director state that he was forced to sign the wire transfer with
the incorrect account established, nor was he absolved from his responsibility as a professional to
understand and check a document as important as a $1M request for funding. So the City rejects the
assertion that the CRA Administration was "ignorant" to the balances, the City feels that it was his
professional duty to find out the proper accounts as well as understand the implication of his request
91 Page
prior to signing it, therefore he bears as much responsibility as the other two professionals. It is for
these reasons that the City refutes the characterization of the CRA Administrator being kept in the dark
regarding the finances.
CONCLUSION
The City of Hallandale Beach and the Hallandale Beach CRA would like to express its appreciation to the
OIG for recognizing the remedial actions that have been taken. It is our mission to continue to
implement enhanced internal controls as well as stabilize the administration of the CRA and the City. As
you know there has been a significant change in leadership in both organizations, and the City of
Hallandale Beach and the Hallandale Beach CRA feels that this change in leadership is a step in the
correct direction in order to accomplish to goals of the City and a CRA.
10 I Page
EXHIBITS_
70
71 EXHIBIT A
72
73 INTERAGENCY AFFILIATE AGREEMENT BETWEEN CITY OF HALLANDALE
74 BEACH
75 AND HALLANDALE BEACH COMMUNITY REDEVELOPMENT AGENCY
76 FOR CITY SERVICES
77
78
79 THIS INTERAGENCY AFFILIATE AGREEMENT, effective as of October 1, 2012, is made
80 and entered into by and between the City of Hallandale Beach, Florida, a municipal corporation
81 (hereinafter referred to as "CITY" or "the CITY") and the Hallandale Beach Community
82 Redevelopment Agency, a community redevelopment agency created pursuant to Chapter 163,
83 Part III, Florida Statues, (hereinafter referred to as "HBCRA").
84
85 WHEREAS, by the enactment of Ordinance # 96-25 and effective December 27, 1996,
86 the City Commission of the City of Hallandale Beach, Florida created a Community
87 Redevelopment Trust Fund for the Community Redevelopment Area as provided in Section
88 163.387, Florida Statutes;
89
90 WHEREAS, the City Commission initially adopted a Community Redevelopment Plan
91 on September 17, 1996, pursuant to a resolution of City Commission, which Plan has been
92 amended ("the Plan"); and
93
94 WHEREAS, pursuant to a resolution dated September 17, 1996, Broward County, as a
95 home rule Charter County, through Resolution No. 96-0698, delegated authority to establish a
96 HBCRA to the City of Hallandale Beach subject to the Broward County Commission Board's
97 Review and approval of the Community Redevelopment Area Plan.
98
99 WHEREAS, the CITY and the HBCRA are keenly interested in maintaining and
100 revitalizing the HBCRA area as a visibly attractive, economically viable, and socially desirable
101 area of the CITY; and
102
103 WHEREAS, on November 26, 1996, Broward County adopted a resolution approving
104 the HBCRA Plan; and
105
106 WHEREAS, the Redevelopment Trust Fund was established by City Commission
107 Ordinance# 19-25, and effective December 27, 1996; and
108
109 WHEREAS, the CITY has professional staff employed by City; and
110
111 WHEREAS, CITY staff time and expertise in various matters, including administration,
112 personnel, engineering, finance, purchasing, public works and planning, can be beneficially
113 utilized in the planning and implementation of the Plan; and
114
115 WHEREAS, the City is willing to make available to the HBCRA, in accordance with the
116 terms and conditions set forth in this Agreement, professional staff and administrative support;
- 3- RESO. NO. 2012-63
117
118 NOW, THEREFORE, in consideration of the mutual promises and conditions contained
119 in this Agreement and other good and valuable consideration, the receipt of which is
120 acknowledged, CITY and HBCRA agree as follow:
121
122
123
124 ARTICLE 1
125
126 PREAMBLE
127
128 In order to establish the background, context and frame of reference for this Agreement and to
129 generally express the objective and intentions of the respective parties herein, the following
130 statement, representations and explanations shall be accepted as predicates for the undertaking
131 and commitments including within the provisions which follow and may be relied upon by the
132 patties as essential elements of the mutual consideration upon which this Agreement is based.
133
134
135 ARTICLE 2
136
137 SERVICES
138
139 The City agrees to perform the following functions and duties in accordance with established
140 procedures or in the absence of same, as provided for by the CITY in the conduct of its own
141 affairs.
142
143 2. 1 FINANCE DEPARTMENT: The CITY agrees to provide financial services which
144 shall include, but not limited to, management of HBCRA fiscal accounts; investment of HBCRA
145 assets; accounting, including but not limited to, accounts receivables and payables and
146 interdepartmental billing of HBCRA utility accounts; monthly and annual reporting, including
147 annual CRA Audit and Comprehensive Annual Financial Report (CAFR); federal income and
148 social security wage tax reporting, sales tax report, if any, and other fiscal needs in accordance
149 with City Policies and Procedures related thereto. Assist with the preparation of the HBCRA
150 Annual Budget, which includes, but not limited to, entering the budget data into the
151 City's financial system and creating budgeting worksheets and reports, payroll budget,
152 Capital Improvement Projects forms, revenue budget forms, Schedule of Proposed Fee
153 Changes. Tracking HBCRA fixed assets in the City's financi al system. Compute the tax
154 increment financing (TIF) amounts due from each taxing entity. Training staff on the use
155 of the City's financial system and budgeting policies
156
157 2.2 CITY CLERK: The CITY, through the City Clerk's Office, shall provide the following
158 services to the HBCRA: prepare and distribute HBCRA agendas and record official
159 minutes of HBCRA Board of Directors; ensure that all applicable agenda items are
160 properly noticed and advertised in accordance with state regulations; attend all meetings
161 of the HBCRA Board of Directors and prepare the official minutes of said proceedings;
162 fulfill public records and lien search requests; process and transmit Ordinances and
163 Resolutions adopted by the HBCRA Board of Directors to appropriate agencies; maintain
164 roster and attendance records of the HBCRA Citizens Advisory Board; prepare and
- 4- RESO. NO. 2012-63
165 maintain custody ofall official Agency records and files; maintain custody of the Agency
166 seal; prepare and maintain the public record index system for HBCRA; oversee the
167 HBCRA records management, retention and destruction program in accordance with state
168 regulations. The City Clerk shall serve as the Clerk to the HBCRA Board.
169 2.3 HUMAN RESOURCES DEPARTMENT: The CITY agrees to provide Human
170 Resources Services which shall include, but not limited to, Insurance Benefits (Health, Dental,
171 Life, Supplemental Life, Aflac, Employee Assistance Program, Long Term Disability);
172 Retirement Benefits (40la, 457, Roth, Retirement Health Savings account); training; recruitment;
173 selection; labor relations; classification/wage studies. All employees of the HBCRA shall be
174 entitled to participate in all benefit programs afforded to City employees.
175
176 2.4 DEVELOPMENT SERVICES DEPARTMENT: The CITY shall, when requested
177 by the HBCRA, provide the services of the Development Services Department related to Planning
178 and Zoning as might be requested by HBCRA. Business Tax Receipts: assist HBCRA with
179 assemblage of information related to local businesses through the Business Tax Receipt
180 Information and surveys as might be requested from HBCRA from time to time, in accordance
181 with HBCRA's Economic Development Strategy. Building Division: assistance with Building
182 Division inspections, plans review, demolition activities and Unsafe Structures Board
183 proceedings.
184
185 2.5 GENERAL SERVICES DEPARTMENT: The CITY shall, when requested by
186 HBCRA, provide the services of the CITY's General Services Department/Purchasing
187 Division with respect to purchasing services and goods necessary for the operation of
188 HBCRA activities. Services shall include, but not limited to, requisitions processing
189 developed into purchase orders; account authorization; creation and revision of vendor
190 information; assistance with the release and processing of formal Requests for Proposal
191 (RFPs) and Bids; Contract processing.
192
193 2.6 PUBLIC WORKS/UTILITIES & ENGINEERING: The CITY shall, when
194 requested by HBCRA, provide the services of the CITY's Public Works/Utilities &
195 Engineering Department with respect to design and construction services, and project
196 management services necessary for the operation of HBCRA activities. When requested
197 by HBCRA, the Streets Division will provide services such as, but not limited to, asphalt
198 repairs, signage, storm drainage upgrades, sidewalk construction and/repairs, striping,
199 installation of speed tables and other traffic calming devices. When requested by the
200 HBCRA, the Public Works Division will provide the following services sanitation,
201 grounds maintenance, landscaping, irrigation, vacant lot upkeep, trash cleanup, lighting,
202 vehicle maintenance, cleaning services.
203
204 2.7 INFORMATION TECHNOLOGY: The CITY shall, when requested by HBCRA,
205 provide the services of the CITY's Information Technology Department with respect to
206 Technical assistance for computer hardware and software, telecommunications supp01t
207 for office and mobile communications, Internet access, and project management for
208 Information Technology systems. Following is a brief explanation on how services will
209 be provided: Help Desk support: help line to troubleshoot desktop problems, reset logons,
210 replace & configure computer equipment (computers, scanners, printers, etc.);
211 Application program suppo11 (Excel, Word, etc.); Office telephone system: set up phone
- 5- RESO. NO. 2012- 63
212 accounts; Email system: set up email accounts, user assistance, email archive of all
213 emails sent or received; Network services: logon, file server, file permission, file backup,
214 anti-spam system, antivirus; AS400 support: logon, access permissions; Mobile device
215 support: payment of bills; device troubleshooting; device purchasing; Project
216 Management support: (ex. assist in project definition and specifications for a loan
217 administration system, consultant liaison, etc.); eCivis grant research system: purchase
218 annuallicenses.
219
220 2.8 RENT: The HBCRA will recompense the CITY for costs associated with rental of
221 office space in the amount of sixteen thousand dollars two hundred and eighty dollars
222 ($16,280.00) per year. These costs shall be inclusive of utilities, telephone (land lines)
223 and janitorial services.
224
225 2.9 The HBCRA may request the CITY to provide other special services on occasion
226 not initially set forth in this Agreement, subject to the CITY's consent.
227
228 ARTICLE 3
229
230 METHOD OF REIMBURSEMENT AND COMPENSATION
231
232 3.1 Reimbursement to CITY. In consideration of providing the services described in
233 Article 2 hereof by the CITY from October 1, 2012 through September 30, 2013, the HBCRA
234 will compensate the CITY, to the extent funds of the HBCRA are budgeted and available and
235 eligible for payment in accordance w ith Section 163.387(6), Florida Statutes, the HBCRA's
236 payment obligations under this Agreement constitute an obligation to pay and indebtedness in
237 accordance with the Act.
238
239 3.2 Method of Payment. The parties agree that the HBCRA' s obligation to compensate
240 the CITY pursuant to Section 3.1 hereinabove shall be made to the CITY in accordance with the
241 HBCRA approved budget. It is recognized and acknowledged that full compensation to the
242 CITY by the HBCRA may, during the term of this Agreement be waived, reduced, deferred or a
243 combination thereof. Provided, however, any outstanding payment or obligation not waived shall
244 be budgeted by the HBCRA and made available to the CITY prior to the termination of the Trust
245 Fund as provided in Chapter 163 of Florida Statutes. These payments will be made in full
246 through interagency fund transfer by December 31 of each year.
247
248 3.3 Annual Statement and Payment. The CITY shall prepare and present to the HBCRA
249 an annual statement in time for the preparation and submission of the HBCRA annual budget.
250 The annual statements shall reflect current year anticipated costs and all unpaid obligation from
251 prior periods. Any amounts contained in the approved HBCRA budget for payment to CITY
252 shall be paid by the HBCRA prior to September 30 of each year.
253
254 3.4 Reporting. The CITY shall maintain reports of the actual time spent on HBCRA
255 activities and provide said report to the HBCRA bi-annually in March and September of each
256 year.
257
258
- 6- RESO. NO. 2012-63
259 ARTICLE 4
260
261 MISCELLANEOUS
262
263 4.1 Continued Cooperation. This Agreement assumes the close coordination and
264 cooperation between the HBCRA and essential CITY staff and CITY functions particularly
265 regarding financial administration, reporting and auditing; and administration and implementation
266 of the Plan and capital projects.
267
268 4.2 Term and Termination
269
270 4.2.1 This Agreement shall take effect October I, 2012, and shall continue in effect until
271 either party seeks to renegotiate or terminate this Agreement.
272
273 4.2.2 This Agreement may be terminated by CITY or the HBCRA upon at least ninety
274 (90) days advance written notice to the other party. After termination of the Agreement, the
275 CITY shall transfer to the HBCRA copies of any documents, data, and information request by the
276 HBCRA related to the services accomplished herein. Regardless of the termination of this
277 Agreement, the HBCRA shall pay to the CITY any outstanding statement or statements for costs
278 incurred but not billed as of the termination date.
279
280 4.3 Records. CITY and HBCRA shall keep records and accounts which shall be available
281 at all reasonable times for examination and audit by HBCRA and shall be kept for a period after
282 the completion of all work to be performed pursuant to this Agreement, in compliance with
283 Florida State Record Retention Laws.
284
285 4.4 Sovereign Immunity. Nothing in this Agreement shall be deemed to affect the rights,
286 privileges and immunities of the CITY and HBCRA as set forth in Section 768.28, Florida
287 Statues.
288
289 4.5 Independent Contractor. The CITY is an independent contractor under this
290 Agreement. Personal services provided by the CITY shall be by employees of the CITY and
291 subject to supervision by the CITY and not as officers, employees, or agents of the HBCRA.
292 Personnel policies, tax responsibilities, social security, health insurance, employee benefits,
293 purchasing policies and other similar administrative procedures applicable to services rendered
294 under thi s Agreement shall be those of the CITY.
295
296 4.6 Assignments and Amendments.
297
298 4.6.1 This Agreement or any interest herein, shall not be assigned, transferred or
299 otherwise encumbered, under any circumstances, by HBCRA or CITY, without the prior written
300 consent of the party.
301
302 4.6.2 It is further agreed that no modification, amendment or alteration in the terms or
303 conditions contained herein shall be effective unless contained in a written document executed
304 with the same formality and of equal dignity herewith, and approved by the City Commission and
305 the HBCRA Board of Directors.
306
307 4.7 Notice. Whenever any party desires to give notice unto any other party, it must be
308 given by written notice, sent by certified United States mail, with return receipt requested, or by
309 hand-delivery with a written receipt of delivery, addressed to the party for whom it is intended
- 7 - RESO. NO. 2012 - 63
310 and remaining party, at the place last specified, and the places for giving of notice shall remain
311 such until they shall have been charged by written notice in compliance with the provisions of
312 this Article. For the present, the parties designate the following as the respective places for
313 giving notice:
314
315 To Hallandale Beach Community
316 Redevelopment Agency
317 HBCRA, Executive Director
318 Hallandale Beach Community Redevelopment Agency
319 400 S. Federal Highway
320 Hallandale Beach, FL 33009
321
322 To Hallandale Beach
323 Community Redevelopment Agency Attorney:
324 Attention: Steven Zelkowitz, Esq. of Gray Robinson, P.A.
325 1221 Brickell Ave., Suite 1600
326 Miami, FL 33131
327
328 To the City of Hallandale Beach:
329 City Manager
330 City of Hallandale Beach
332 Hallandale Beach, FL 33009
333
334 With Copy to:
335 City Attorney
336 City of Hallandale Beach
338 Hallandale Beach, Florida 33009
339
340 4.8 Binding Authority. Each person signing this Agreement warrants that he or she has
341 full legal power to execute this Agreement on behalf of the party for whom he or she is signing,
342 and to bind and obligate such patty with respect to all provision contained in this Agreement.
343
344 4.9 Severability. If any provision of this Agreement or the application thereof to any
345 person or situation shall to any extent, be held invalid or unenforceable, the remainder of this
346 Agreement, and the application of such provision to the person or situations other than those as to
347 which it shall have been held invalid or unenforceable shall continue in full force and effect, and
348 be enforced to the fullest extent permitted by law.
349
350 4.1 0. Governing Law. This Agreement shall be governed by the law of the State of
351 Florida with venue in Broward County.
352
353 4.11 Entire Agreement. This Agreement embodies the entire agreement between the
354 parties. It may not be modified or terminated except as provided herein. It is further understood
355 and agreed that this document incorporates and includes all prior negotiations, correspondence,
356 conversations, agreements, or understanding applicable to the matters contained herein and the
-
I
I
357 parties agree that there are no commitments, agreements, or understanding concerning the subject
I
358 matter of this Agreement that are not contained in this document. Accordingly, it is agreed that no
359 deviation from the terms hereof shall be predicated upon and prior representation or agreements,
360 whether oral or written.
- 8- RESO. NO. 2012- 63
384
385
386
387
APPROVED AS TO LEGAL SUFFICIENCY and
FORM for the use and reliance of the City of
Hallandale Beach
388
389
390
391
392
393
n hitfield, Esq., City Attorney
City of Hallandale Beach
394
395
396
397
398
399
361
362 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the day
363 and year first written above.
364
365
366
367
368
369
370
371
372
373
374
375
- 9- RESO. NO. 2012-63
398
399 IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the
400 respective dates under each signature: HALLANDALE BEACH COMMUNITY
401
its same by Board of Directors
402
on daRof . , 20 and \/.f\ '1: @ signing by and through
403 its C PJ duly authorized to execute same.
404
405
406
407 HALLANDALE BEACH COMMUNITY REDEVELOPMENT AGENCY
408
409
410
411
412
413
414
415
416 /'
417 ,' ''
.. . , ! p
418."-i.. \\ 1.- r, ,

" : '
t ' ::'::'
.
.
-
0, r
;.
4:2-3'
424
425
426
427
-.:428
429
430
431
432
433
434
435
436
437
438
439
440
.(::Ierk
Bm:;acl'erk. to the .ti'llandale Beach
.
. <' . .(' .- }. '
. .- ,. ( \
..
APROVED AS TO LEGAL SUFFIENCEY
and FORM for the use and reliance of
Hallandale Beach Community Redevelopment
A

Steven Zelkowitz, Esq. of
Gray Robinson, P.A.
HBCRA Attorney
-10- RESO. NO. 2012-63
, ""Q'-'I.IIIICIIl
,. ' .
.
. MEMORANDUM . . . . .
DATE: December 26, 2012
TO: Alvin Jackson, HBCRA Exect\live Director
FROM: Renee Crichton, Cit: Manag@. .
SPBJECT: . Tax Increment Financing FY
Please accept .this memorandum and documentation as the City payment' fot the
17, 2012 HBCRA Tax Increment Financing payment of $3,380,611. The funds are located in the
Main Pool Account at City National Sank. The HBCRA shal'es in the equity in pooled cash
for this bank account
Upon a.pproval by the HBCRA B9ard of Directors for the complete and p1;oper policies, protocols,
and proced\.tres of the newly created HBCRA. Bank Account the funds will be transferred from the
Main Pool Account to this account.
- - - ---
v.a. a .a. 'lJ..I.' ..l..an.a....A.Jn.J .Ol'JN.'L-.ll., 1! .l..JV.n..lVrt
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MEMORANDUM
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DATE: January 15, 2013
(}1.

TO: Renee Crichton Miller, City Manager
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-
-
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h;
FROM: Robert Fraidenburg, Deputy Director of Finance7( w
N
THRU: Patricia Ladolcetta, Director of Finance
SUBJECT: HBCRA Bank Account Controls and Procedures
Pursuant to the meeting held on January 14, 2013 regarding the establishment of the HBCRA Bank
Account Controls and Procedures (attachment 1) the following will transpire:
1. Wiring .the Tax Increment Financing (TIF) funds of $3,380,611 from the Main Pool
Account to the HBCRA Bank Account on January 15, 2013. The City's TIF payment was
paid and recorded via journal entry on December 26, 2012. The funds are currently held in
the Main Pool Account, where the HBCRA shares in the equity in pooled cash, until the
HBCRA bank account controls and procedures are established (see attaclunent 2 .
Memorandum dated December 26, 2012).
2. The requirement of two (2) authorized signers for the Bank Account checks. The 2
signers are the HBCRA Chairperson and HBCRA Executive Director. Additionally, an
alternate signer should be authorized in the event that either the. Chairperson or Executive
Director is unavailable. "' .
3. Upon substantial completion of the Fiscal Yeat ended 09/30/2012 trial balance, a cash
reconciliation between the Main Pool Account and the HBCRA Bank Account will occur.
,/
___ Approved Denied Hold for Discussion
Comments:
Attachments
Cc: Liza Torres, HBCRA Deputy Director
Derek Betts, HBCRA Financial Analyst
<
Attachment 1
HBCRA BANK ACCOUNT CONTROLS
Deposits
HBCRA will utilize the current City cash receipt system (via Finance) for entering all
. forms of payment (cashl checksl or credit cards)
o Dally Collection Report (OCR) procedure
The Cashier Accounting Clerk I shall be responsible for balancing the cash
register receipts daily. Coin receipts must be recorded and updated on a
separate cash posting. The Comptroller shall be responsible to ascertain
that the Cash Posting Report is balanced ~ n d submitted to the Deposit
Fiscal Clerk I by 8:00 a.m.
1
daily. Any discrepancies on the Cash Posting
Report must be Investigated and reported to the Deposit Clerk.
The Deposit Fiscal Clerk I shall be responsible for making the daily bank
deposit and to process any non-HTE subledger activity by 10:00 a.m.
1
daily.
The Deposit Fiscal Clerk I must confirm the dally cash register receipts
equal the Cash PostiQg Report and report any discrepancy over $5.00 to
the supervisor. Discrepancies over $5.00 should be Investigated to.
determine the cause for the overage/shortage.
The Deposit Fiscal Clerk I prepares the brown OCR envelope. The total of all
edit entries must agree with theCash Posting Summary Report. The OCR
envelope and posting should be initialed by the Deposit Fiscal Clerk I.
Bank drafts and credit card activity should be deducted from the total of
all payments received and listed on the brown OCR envelope. Copies
of drafts will be included In a green folder placed in the clerk
1
S inbox.
Copies of the credit card settlement reports will be Included with
the Cash Posting Summary and related paperwork that Is submitted to the
Accountant II for review.
Cash from Miscellaneous Receivables drafts are recorded separately by
preparing a journal entry that debits Account 800.0000.101.9001 and
credits Account 800.0000.100.0000.
Armored service will automatically come to City Hall to pick-up all
deposits for delivery in the Finance Department
Submit completed OCR with attached deposit slips to the Accountant II
who will input and update daily pooled cash journal entry.
~
Upon receipt ofthe Daily Collection Report, the Accountant II shall verify
the deposit both per books and bank and sign as required. The
appropriate journal entry must be entered and updated daily to record
the deposit. The entry is then forwarded to the Accountant ltl for final
review and posting.
The Daily Collection Report with deposit slip and supporting documents is
filed by date.
Wire Transfer deposits- the HBCRA Financial Analyst will review the bank account
activity daily via on-line banking and make the appropriate journal entry to record the
in-coming wire transfer deposits within 2 business days
.ACH Bank Drafts- all HBCRA bank drafts will run through the City' s Miscellaneous
Receivable (MR) system and be recorded via the OCR procedure (see above)
i
- I
Credit card payments- all credit card payments for HBCRA related services will be taken
only at the City cashier located in Finance. The transaction will be recorded via the City' s
cash receipt system and OCR procedure (see above)
Disbursements
Accounts Payable- HBCRA will utilize and follow the City' s current administrative
purchasing policy. HBCRA accounts payable checks will be generated from the City's
Main Pool Account and will be reimbursed on a monthly basis.
Payroll- On the Wednesday of payroll week the Payroll Accounting Clerk will forward
the disk containing the payroll information for HBCRA staff to the Deputy Director of
Finance. The Deputy Director of Finance will send the ACH file to City.Nationai Bank via
E-Partner by 2:00pm. The HBCRA Financial Analyst must then review and approve the
ACH file for final processing.
o The Payroll Accounting Clerk forwards the HBCRA payroll tax forms to the HBCRA
Financial Analyst who then pays the appropriate amounts to the federal
government via EFTPS.
2
1 Wire Transfers- See E-Partner On-line Banking below
1
Manual Checks- HBCRA must follow the City guidelines and forms utilized for manual
check processing. The Payment Request form, under all circumstances, must be signed
by the Executive Director. The HBCRA unsigned manual checks will be secured In the
Finance Department safe.
1
The HBCRA Chairperson and HBCRA Executive are the authorized signers ofthe
checks. A designated alternate person should be established in the event either of the
above signers Is not available.
E-Partner a n-line Banking
E-Partner is the Is the website owned by City National Bank for the purpose of allowing
authorized City National Bank customers to access E-Partner and their accounts online.
Transaction Limits on the dollar amount a user or the HBCRA may transact per
day/we.ek. Currently, the entity limits are:
o ACH transactions outgoing - $13,000
o ACH transactions Incoming- $0
o Wire transfer outgoing- $1,000,000
The banking. online access site .fs to be used by authorized users only, as author!zed by
the Director of the CRA, .
Users will .only use the Bank's access for authorized official use for Hallandale Beach
Community Redevelopment Agency purposes.
All wire transfers require two levels of approval, and have limits attached to them. The
two level approval requires that each level be completed by a different user. i.e. the
initiator must not be the same person .as that approving the wire. Currently approval
levels and limits are as follows:
Executive Director of CRA ..: Initiate up to $1,000,000
CRA Financial Analyst- Initiate up to $1,000,000
City of Hallandale Beach Director of Finance- Approval up to $1,000,000
City of Hallandale Beach Deputy Director of Finance- Approval up to $1,000,000
3
ACH transfers do have two levels of approval. The two level approval requires that each
level be completed by a different user. i.e. the initiator must not be the same person as
that approving the wire. ACH transfers, both debits and cre.dits, have limits attached to
them.
limits are in place to protect the Hallandale Beach Community Redevelopment Agency
from error, abuse or fraud, and as such, require high level authorization to exceed such .
limits. City National Bank will only approve such limits to be exceeded upon certification
of such high level authorization by the appropriate management. For such excess
certification, an Exception Authorization Form (Attachment One) is developed to obtain
the approval of the appropriate management to the limits imposed. Upon
approval, the form will be submitted (via fax or email of scanned Image) to City National
Bank personnel. In addition, approval limits will need to be increased, temporarily,. for
the individual within the Hallandale Beach Community Redevelopment Agency initiating
and/or approving the Wire or ACH transfer which has exceeded the limit.
The Executive Director, as signer on the account, is the highest level of authority for all
operations of the online access system. The Executive Director niay authorize additional
users to have access to the system, and/or to aY.,thorize users to various aspects of the
. system.
The Executive Director will be authorized to have administrative authority as defined
above,- as well as transaction authority. In this case, the Executive Director will have the
ability to authorize other users, as well as to perform transactions and other actions
within the system. Pursuant to policy, both of the Hallandale Beach Community
Redevelopment Agency and City National Bahk, transactions will be subject to limits and
approval level policies.
Users with the authority to perform transactions will be authorized by any of the above
individuals, but will not have administrative authority.
The Executive Director Administrator along with the Financial Analyst will be authorized
to receive an automatically generated email notification of all outgoing ACH

The Hallandale Beach Community Redevelopment Agency has been assigned a unique
Company 10 and password. All users, regardless of level within the hierarchy, will be
Informed of the Company 10 and Password, "as well as issued a unique personal user ID
and a temporary password, such password to be changed upon first use to their own
personal password.
4
, .
Users will access the E-Partner system via the internet website above, type in the
Company ID and Password, as well as their own user ID and password.
A. To send a wire transfer- At the top of the page, in the row of menu items, click on
the Funds Transfer menu item. Select Wire Transfer. Select Initiate Template or
Initiate Freeform, depending whether this is. a standard wire which has a template
previously set up with information Input, or a new wire which has no template
created. Complete the required lnformation,.and click on the Initiate button. Print
the page for further approval by an authorized approval levei person. An emall
notification will be automatically generated and sent to approval level persons, to
notify them of the presence of a pending wire transfer.
B. To send an Payroll ACH transfer (outgoing) - Before noon of the Wednesday of
Payroll week, (or before noon two days prior to value date) the payroll clerk will
provide the diskette with the payroll file to be uploaded to City National. At the top
of the page, in the row of menu items, click on the Funds Transfer menu item.
Select ACH. Select Send.ACH file. Click on the Browse button in the middle of the
page, to select the file on the disk, which has been inserted into the computer. Then
select ACH Admin Approval/Activity to view the status of the uploaded file. In the
list of Completed ACH Activity, the transaction just completed should show as
APPROVED
1
and below in the list of Send ACH File Jobs, the transaction should show
as Success, Print that page for the file.
C. To approve a wire transfer - At the top of the page, in the row of menu items, click
on the Funds Transfer mei)U item. Select Wire Transfer. Select Transfer Admin
Approval/ Activity. Select the transaction be,-ng approved, and click on the buttons
for approval. Then print that page for the file.
D. To Initiate an incoming ACH transaction -Also known as a Bank Draft. The diskette
to upload the files that have a .prn extension to City National Bank can be provided
by the Comptroller or Utility Billing Specialist. At the top of the page, in the row of
menu items, click on the Funds Transfer menu item. Select ACH. Select Send ACH
file. Click on the Browse button in the middle of the page, to select the file on the
disk, which has been Inserted into the computer. Then select ACH Admin
Approval/Activity to view the status of the uploaded file. In the list of Completed
ACH Activity, the transaction just completed should s ~ o w as APPROVED, and below
in the list of Send ACH File Jobs, the transaction should show as Success. Print that
page for the file.
E. To authorize a Wire Transfer or ACH transfer in excess of the limits Indicated The
Exception Authorization Form (attachment one) will need to be completed in order
for the limits to be increased. The same form can be used for outgoing wires,
incoming ACH debits, or outgoing ACH credits (Payroll), by checking off the
appropriate box and completing the requested information. It is to be signed by the
5
..... .
' ,.
user requiring the increased authority as 'requested by' . In the case of a wire,
transfer, both the requestor the approver of the wire will sign as requestor. It is
to be 'approved by' the Finance Director or a supervisor of the requestor(s). Final
approval will be by the City Manager, or in his absence, either the Deputy City
Manager or the Assistant City Manager.
Upon approval, the form will be submitted (via fax or emall of scanned image) to
. City National Bank personnel who will increase the limit in the Bank's system to
allow the transaction to process completely. The administrator above the requestor
will increase the user's limit as requested, in the E-Partner system, and sign the
'User limit Increased by' line.
Upon completion of the transaction, the user limit must be returned to the
previously established limit. When this has been done, the administrator making
the change must sign the 'User limit returned to normal' line. The Exception
Authorization Form should be filed with the other documents of the transaction
necessitating the exception.
F. Other reports and activity At the top of the page, in the row of menu items, click on
the menu Item desired. AddJtional training and instructions will be added later, as
needed.
Bank Reconciliation
On a monthly basis a bank reconciliation will be performed
The HBCRA Financial Analyst shall:
DOWNLOAD. SAVE AND TIE OUT ALL NECESSARY FILES
1) Create a new bank reconciliation folder for the current month. All the bank
files are in the finance department fileserver:
2) Get the bank statement downloads from City National (in excel format).
3) Save the City National file in the bank rec folder for the current month, naming it:
"CNB Activity 20XX (2013)".
4) Be sure the CityNational activity ties out to the hard copy of the statement.
5) Get GL data download from H.T.E query "listaccclr" then download to excel clearing
data spreadsheet and run macro "sort_ data". Then select the current. month.
6) Open the previous month GL activity file. Go back to clearing data spreadsheet copy
and paste onto GL activity file and run macrQ named "GL_data_sort" .
7) Insert a total at the bottom of the amount column and make sure the total, plus the
prior month GL cash balance ties to the GL cash balance at the end of the current
month.
6
.8) Save the GL activity file in the bank rec folder as "Gl Activity 20XX (2013}".
COMPILE OUTSTANDING CHECK LIST
1) Copy 0/S check file from previous month and save it, renaming it for the current
month.

2) Get the current month check register out of HT. Format the data. To format the
date so it Is all in one cell, insert a column nea.r the date values and insert the
"DATE" function (insert function), fill in the box appropriately and the date will
display in one cell. Be sure to use the "original amount" for the che.ck amount.
3) Copy it Into the "check register" tab. Make sure to Insert extra rows (if needed) so
the summary at the bottom of that tab does not get deleted. Tie out the check
reg.lster to the GL. The total of the current month check register should tie to the
. total in the GL detail of line Items with a description in column J of "AP
Disbursement'".
4) Open the bank statement files from City National Bank.
5) Copy all the cleared checks from City National into the "cleared checks" tab. You 'will
have to move around the data so It is under the correct column heading.
6) Change the values from to positive by typing a "-1" into any blank cell in
the worksheet. Copy the "-1" and paste special (check "multiply" box) the "-1" over
all the check amounts.
7) Compare current month check register and prior month outstanding checklist with
check cleared form bank statement and create a current month outstanding
checklist.
8) Be sure to clear out all void checks as well.
RECONCILE BANK STATEMENT DATA TO THE G/L
1) Open the GL Detail, CNB Activity files for the current month. Also open the prior
month bank rec file.
2} Trace all the bank activity to the G/l and vice versa shading each line Item as they
are matched.
3} In the GL detail file, there is a column for the bank stmt amounts. Link each amount
in the bank statement appropriately - this will capture any$ variances between
what was recorded in the GL what was received/withdrawn per the bank
4) In the bank statement activity files, type in the corresponding batch# In the GL for
each line item.
5} In the bank stmt activity, be sure to trace the deposits in transit (in the beginning of
the month) to the prior month bank reconciliation. Label them as a DIT in the bank
stmt activity file.
6) After matching all items possible and only Items that not be traced are left, be
sure to check if any of the items are listed as reconciling items in the prior month
bank reconciliation.
7
. ..,, .
7) The Items that still cannot be traced from the GL to. bank statement and vice versa
will be your reconciling items in the current month bank reconciliation. Be sure to
label each item appropriately.
COMPLETE THE BANK RECONCILIATION
..
1) Open the prior month bank reconciliation and save a copy of it in the current month
folder, renaming it.for the current month.
2) Change all tab headings for the current month.
3) Update the current month bank balances per the CNB bank statements.
4) Update the GL balance for the current month.
5) Remove all deposits in transit from the prior month (if they were traced to the bank
statement) and enter in the deposits in transit from the current month.
6) There are 4 tabs for the reconciling Items. The items should go Into the
rec as follows:
Bank CR and DR's OS- This tab lists all items in the bank statement activity that could
not be traced to an entry in the GL. Any OS check issues would also go in this tab.
HTE' DR's and CR's OS- This tab lists' any items recorded in the G/L that could not be
found in the bank statement activity detail. This also includes any dollar variances
between what was recorded in the GL vs. bank.
NSF OS- HTE- This tab lists any NSF's recorded in the Gl that were not found in the
bank statement.
N.SF OS- Bank- This tab lists any NSF' s that hit the bank that were not recorded in the
G/L. "'
The completed bank reconciliation will then be forwarded to the Accountant Ill or Senior
Accountant to review, approve, and sign off
8
---
. ;
DATE:
TO:
FROM:
SUBJECT:
MEMORANDUM
January 28, 2013
Renee Crichton, HBCRA Executive Oirector ,
Robert Fraidenburg, Interim Director of Finance7;/, ,
-
(:)
HBCRA Check Stock
The new HBCRA checks (from check #2001 thru 2500) requiring two signatures
were delivered this morning by Derek Betts, HBCRA Financial Analyst. They
were placed in the Finance Department safe for sto(age.
Additionally, the old HBCRA checks (from check #1 020 thru 1500) requiring only
one signature were shredded by myse,lf in the Finance Department on 1/28/13.
Gail Cabrera, Senior Accountant witnessed the shredding (see signature below).
Witness: Date: kc:~
I
v
___ Approved ___ Disapproved Hold for Discussion
Cc: Derek Betts, HBCRA Financial Analyst
X:\Batoidis files\CORRBSPONDENCB\MEMO FROM ROBERT\MEMO TO HBCRA ED Check Stock. doc
1tLLAND1t LE /JEACH
Ci ty of Choice
REQUEST FOR INFORMATION
(RFI)
# FY 2012-2013-CRA001
LOAN MANAGEMENT SYSTEM
November 9, 2012
Prepared by:
General Services/Purchasing Department
RFI # FY2012-2013-CRA001 CITY OF HALLANDALE BEACH Page 2 of 11
I. GENERAL
The Hallandale Beach Community Redevelopment Agency (CRA) seeks, through this
Request for Information (RFI), to obtain information and identify firms that can provide a
loan management system and related implementation services to support the Hallandale
Beach Community Redevelopment Agency (CRA).
The CRA's Consultant for this project, including the development of the technical
specifications and consultation services for the evaluation of responses, is Plante &
Moran, PLLC.
While this RFI will not result in the award of a contract, information gathered and
obtained during this process may be used to support future procurement(s) .
II. OBJECTIVES
The overall objectives of the CRA for a loan management system are to:
Provide functionality to manage the CRA's loan programs including:
o Loan origination
o Loan servicing
o Interfaces to City's replacement Enterprise Resource Planning (ERP) System
(implementation to begin Q1 2013)
o Reporting
Improve the quality and accessibility of information for decision support
Eliminate paper-based workflow processes and forms
Reduce redundant "shadow systems", data entry, and storage
Improve operational effectiveness and productivity
Enable e-Government initiatives, including enhanced customer service and web self
service
Ill. BACKGROUND
The City of Hallandale Beach, incorporated in 1927, is located in the southeast corner of
Broward County on the Atlantic Ocean. The City encompasses 4.4 square miles and has
a population of 37,113 residents as of April 1, 2011 , which is the last date population
counts were officially published by the State of Florida. The City's 2012 adopted budget
of $101 million for all funds includes a General Fund operating budget of $52 million.
The best source for reviewing the scope of services and financials of the City would be
to access the City's Comprehensive Annual Financial Report and related reports
available under the Finance department web page at www.cohb.org.
The Hallandale Beach Community Redevelopment Agency (CRA) was created in 1996
to redevelop and improve the City's overall aesthetics. As a result, the City has
undertaken ambitious improvements to include roads and infrastructure, beautifying
neighborhood streets, parks, development and restoration of a Historical Village and
providing many residential and commercial programs and opportunities. One economic
development tool the CRA leverages to achieve these goals is an incentivized residential
and commercial loan program supported by a revolving loan fund. More information
regarding the CRA's loan programs is available on the CRA web page at
http://www.hallandalebeachfl.gov/index.aspx?NID=82.
LOANMANAGEMENTSYSTEM
The City is currently in the process of selecting an ERP system to replace its current
HTE system provided by SunGard Public Sector. The CRA is currently managing its
loan programs through various Microsoft Office shadow systems and the HTE
Miscellaneous Receivables module.
A summary of key transaction and operating volumes is included below. These volumes
and standards reflect actual & estimated amounts for the current environment.
$11 ,000
$25,000 to $200,000
IV. RFI RESPONSE AND PROCESS
Respondents must submit seven (7) sets of responses and two (2) true and exact
electronic copies on a CD-ROM in PDF format. Responses must be submitted in a
sealed envelope and delivered to:
CITY CLERK'S DEPARTMENT
EXECUTIVE OFFICE
400 SOUTH FEDERAL HIGHWAY
HALLANDALE BEACH, FL 33009
TO: RFI # FY 2012-2013-CRA001 Loan Management System
SUBMITTED BY: Name of Company
It will be the sole responsibility of the Respondent to ensure that the
response reaches the City Clerk at above stipulated address by no later
than 4 p.m. on Friday. December 21, 2012.
1. Process Overview
The RFI responses will be reviewed by the CRA Executive Director, through
the City' s General Services/Purchasing Department. Based on the results of
this review, certain Respondents may be invited to meet with the CRA
Executive Director for more detailed discussions and demonstrations.
Following these discussions, the CRA Executive Director will review the
responses and the results of firm's discussions. Based on the data gathered,
the CRA Executive Director may conduct procurement(s) as appropriate to
select a system to meet the CRA's needs.
2. Firm Discussion Sessions
The CRA intends to invite potential firms to perform software demonstrations.
Each session may be scheduled for a 1/2 day with each firm. An agenda and
demonstration script will be shared in advance of these meetings to allow firms to
prepare for discussion and software demonstrations. The purpose of these
sessions is to discuss the responses submitted to this RFI. Therefore, in
selecting companies to participate in the discussion session, the CRA, will
consider the nature of responses.
3. Costs of RFI Responses - Preparation and Meeting Attendance
The costs and expenses associated with the preparation of a response, including
attendance at the firm discussion sessions, and preparation of all other
information required pursuant to this RFI , will be at the sole cost and expense of
the Respondent. In no event will a Respondent have a claim against the City and
CRA, its staff or its consultants or agents for reimbursement of any such costs or
expenses.
4. Contact Information
Questions related to this RFI are to be directed to:
General Services/Purchasing Department
Andrea Lues, General Services Director
alues@cohb.org
5. RFI not a procurement document
This RFI does not constitute a solicitation or procurement document for any
design, construction, operation or service relating to services.
6. Format Respondents are to use
The City requests that responses to this RFI be organized into the following
sections:
1. Company Background
2. Application Software
3. Technical Requirements
4. Implementation Approach
5. Ongoing Support Services
6. Business Terms and Costs
The CRA further requests that responses include a letter of transmittal that
identifies the name, address, title, telephone number, fax number and email
address of the Respondent's contact person who will serve as the interface
between the City and the Respondent.
7. Company Background
Respondents shall submit a cover letter on company letterhead transmitting the
company's response for the requested services. The letter must be executed by
a corporate officer of the company. The company shall provide the foll owing
information:
Business structure of the Respondent entity (e.g., corporation, partnership,
sole owner, joint venture, etc.);
How long has this business been incorporated providing the services required;
The company name that holds ownership of the proposing entity;
The address and location of the office responsible for providing the potential
services;
Name, address, telephone number, and contact person who will be
responsible for all services to be provided;
The area of expertise of the Respondent;
Information related to the financial resources, professional abil ity to implement
any or all component(s) of their plan(s) ;
Related experience performing the services; and
At least three (3) references from clients that have acquired similar services to
the services being considered.
8. Application Software
Respondents shall provide a general description of the application program
product and how it will meet requirements of CRA which are provided in
Appendix A. This section must address, at a minimum, the following items:
1. Describe your overall proposed technology solution.
2. Describe the product direction for the company, including time frames.
3. Describe unique aspects of the Respondent's solution in the marketplace.
4. Describe components of the solution that are industry standards versus being
proprietary to the Respondent.
5. For third party products proposed that are integrated with the Respondent's
solution provide the following for each product:
a. Reason that this product is a third-party product versus being part of the
software Respondent's solution,
b. Extent to which this third-party product is integrated with the
Respondent' s solution.
9. Technical Requirements
Respondents shall provide a summary of the minimum technical requirements for
the proposed solution include hardware, storage, database software, network
connectivity, etc. If the Respondent is proposing a hosted-solution, a description
of the hosting model , data center and storage facilities, and service levels shall
be provided.
10. Implementation Approach
Respondents shall provide an implementation plan in narrative format supported
by an activity-level project plan using Microsoft Project that details how the
proposed solution is to be implemented. This implementation plan should include
the following elements:
General Implementation Approach
Project Management Approach
Hardware, Software & Storage Design and Installation Consulting
Report Development
Integrations and Interfaces
Training
Testing
Operational Redesign Approach
System Documentation and Manuals
Knowledge Transfer
11 . Ongoing Support Services
Respondents shall specify the nature and conditions of any post-implementation
support options including post go-live support, on-site support, telephone
support, users' group, or online knowledgebase. Respondents shall also
describe your maintenance/hosting programs and options with associated
pricing.
12. Business Terms and Costs
For any approach proposed by a Respondent, the Respondent must provide the
following information to allow for complete understanding of key cost factors and
associated uncertainties.
Provide an estimate of the total projected costs for implementing the proposed
solution, including:
Estimated total one-time costs including software license, implementation
services, training services, hardware and project management.
Estimated total on-going costs including software maintenance, support and
hosting (if applicable).
Respondents shall also provide sample license agreement and service level
agreement.
V. Appendix A: Functional Requirements
General Requirements
The Loan Management module has the ability to track, inquire, and report on the
following applicant information:
Applicant number
Application status
Name
Property Address Information
Mailing Address Information (if different from the property address)
Phone Number
Email Address
Property type
ParceiiD
Type of house/structure
Year built
Total square footage
Initial property value at loan closing
Property value after loan-funded improvements are complete
Loan type (e.g. rehab, down payment assistance, commercial)
Loan rehab purpose (e.g. roof, windows, etc.)
Closing information
Permit Number(s) issued
Interest rate
Total amount of loan (including portion to be repaid and portion to be forgiven)
Amount of loan to be repaid
Term of loan
Payment start date
Payment amount
Amount of loan currently dispersed
Comments I Notes
Loan Status (e.g. foreclosure, default)
Multiple user defined fields
The Loan Management module allows for multiple grants/loans per applicant.
The system has a user-defined workflow functionality based on the loan type.
System provides cash flow projection functionality to manage revolving loan fund and
account for estimated/known loan disbursements (AP) and estimated/known loan
repayments (AR).
Application In-Take
System provides a web-based or an online Loan Application which integrates to the
Loan Management module system.
Ability to configure required/optional fields in the online loan application.
Ability to configure a two-stage pre-application I application process.
Ability to automatically verify if property address is within the CRA district based on the
Master Address file maintained in the City's ERP system and prevent submission if not.
Ability to notify applicant, by email or form letter, if and when the pre-application has
been approved and additional information is required for submission.
Ability to require and accept application fee after pre-application is approved.
Ability to configure and calculate multiple application fee types including a flat amount
by loan type and property type.
Ability for applicant to attach multiple types of electronic supporting documentation
(e.g. proof of income, proof of residency, construction cost estimate).
Ability to configure authorization/access levels to sensitive information based on
supporting document type.
Ability to create user defined criteria/parameters for each step in the loan application
process.
Ability to set approvals at any or all steps in the process.
Ability to set a maximum loan amount for each type of loan.
loan Approval
Ability to configure a multi-tiered, multi-member loan approval workflow.
Ability to notify applicant, by email or form letter, when the loan has been approved.
Ability for applicant to submit a revised construction estimate and adjust the requested
amount of the loan during a defined time period following initial loan approval (but
before closing).
Ability to prevent loan closing until building permits are approved.
Ability to track and disperse partial loan amount until construction work is complete.
Ability to configure a defined period following loan closing when the applicant must
complete construction work and request the remaining loan amount to be dispersed
based on the loan type.
Ability to track view all current and previous loans by applicant and property address
during the application approval process.
Ability to configure a maximum lifetime loan amount and/or number loans for each
property (by address)
Ability to attach before/after photos to loan each record.
Ability to link correspondence and comments to each loan record with a uneditable
date/time stamp and user ID.
loan Servicing
Ability to define multiple repayment schedules including monthly and quarterly.
Ability to set a minimum payment amount.
Ability to configure "interest-only" period for partially dispersed performance-based
loans that automatically defers to final repayment amount following final
disbursements
Ability to configure a defined percentage of a loan to be "forgiven" at a given time.
Ability to amortize payments based on the planned non-forgiven percent of loan.
Ability to inquire on the current loan payoff amount at any point during the loan term
both including and not including the planned forgiveness amount.
Ability to show both the total loan balance and loan balance including expected
forgiven amount on invoices.
Ability to apply additional payments directly to the loan principal.
Ability to configure and track "no payment, no interest" loans for down-payment
assistance where the loan balance is reduced and forgiven by defined amount over a
postponed period during the term of the loan. (e.g. $10K I 10 year loan would be
reduced by $2K annually during years 6 - 10 of the term}.
Loan Management and Tracking
System provides for multiple inspections I service requests types
System tracks and reports "Non-Compliance" items for which applicants have not
performed actions based on failed inspections
Ability to configure, prioritize, and track milestones (including date, work to be
completed, and estimated value} for each loan-funded project that relate to
performance-based loan disbursements amounts/dates.
Ability to attach electronic supporting information to each milestone when loan funds
dispersed.
Ability to schedule, track, and store quarterly reports required to be submitted by loan
recipients.
Ability to configure follow-up inspection dates following loan closing to ensure loan-
funded property improvements are being maintained.
Ability to link pre-configured follow-up inspection "scheduling templates" to a loan at
closing (e.g. quarterly for first year, annually for years 2 - 5, etc)
Loan Closing
Ability to generate a final bill prior including a defined document recording fee (for
satisfaction of mortgage document).
Ability to automatically calculate a percentage-based late fee based on the type of loan
with the ability for authorized users to override.
Ability to configure a loan closing/payoff workflow.
Integration
The Loan Management module interfaces with the followi ng of the City's ERP modules:
Permits and Inspections: to schedule, track, manage, route, inquire, and report on
inspection information.
Accounts Payable for loan disbursements
Grants I Project Accounting module
Request for Service
Master Address: for address information and alerts
Business Licensing: for license validation, outstanding fees, outstanding violations
and other license information
Misc. Billing and Accounts Receivable: for billing of fees
Cash Receipting: for collection of payments
System integrates with MS Outlook for appointment scheduli ng.
System integrates with MS Word word processing application for mail merge and letter
generation
System enables users to attach and save electronic documents to Loan Management
records which are saved to the City's document management system, eDocs, for
retrieval
System integrates with City's GIS system to associate a property with a GIS shape fi le
and allows for viewing of other GIS layers
System integrates with City's GIS system to view all pending, active, and inactive loans
by type and status.
Reporting
System provides report generating summary of active loans.
System provides reporting for loans in arrears (1 missed payment) or delinquent (2
missed payments) .
System provides ability to generate summary reports by CRA quadrant.
System provides ability to summarize anticipated loan disbursements and payments (AP
I AR) for a defined date range.
Ability to generate a report showing outstanding loans that have not been fully
dispersed.
Ability to report on the total loan amount forgiven vs. repaid, by loan type, for a defined
date range.
System provides tracking and reporting of persons I owners with outstanding
judgments against them.
System capable of being deployed in the field for mobile inspections.
THIS REQUEST FOR INFORMATION SUBMITTED BY:
COMPANY:
ADDRESS:
CITY & STATE:
ZIP CODE:
TELEPHONE:
DATE OF RFI:
FACSIMILE NUMBER:
E-MAIL ADDRESS:
FEDERAL ID NUMBER:
NAME & TITLE PRINTED:
SIGNED BY:
WE (I) the above signed hereby agree to furnish the item(s), service(s) and have read
all attachments including specifications, terms and conditions and fully understand what
is required.
The Request for Information , Specifications, Proposal Forms, and/or any other
pertinent document form a part of this proposal and by reference made a part hereof.
Signature indicates acceptance of all terms and conditions of the RFI.
OIG 11-020

APPENDIX D

LADOLCETTA CPA
04/04/2013 12:43 9544505599
Y I AJ\f\JSM i"TrA--L
PAGE 01/05
k 1
OtGC .

PAGE 02/05
LADOLCETTA CPA
04/04/2013 12:43
9544505599
Patricia M. Ladolcetta, CPA
12000 NW 20'" Street
Pembroke Pines, Fl 33026
E-mail pladolcetta@hotmail.com
Fax (954) 450-6599 Phone (954) 436-4199
Broward Office of Inspector General
Plantation, FL 33324
VIA FAX: (954} 357-7857
Dear Mr. Scott:
I received a copy' of the Preliminary report regarding allegations of mismanagement by the City of
Beach and the Hallandale Beach CRA, delivered by Mr. Winfield. As I understand, I am to
send you any corrections, or further explanations I may flnd that would make this report more correct or
complete. Note as I am no long employed by the City of Hallandale Beach, and therefore do not
have access to documents or emails to reference any of the below matters, I am only working
from memories. Therefore, I submit the following:
l) Page 2 of 50, note 2 states that I, Patricia L;!dolcetta, informed the OIG "that the City intended
to solely use CRA funds to repay the bonds." That statement is somewhat out of context. The
first purchase made from the proceeds of the note, $17,888,902 for the purchase of the
Bluesten Park land, in 2007, would have taken until 2024 to be fully paid from CRA funds. Until
that time, it is correct that the intent was to make the repayments from CRA funds. In addition,
subsequent expenditures on improvements to that park as well as other parks in the CRA area
extend repayment period by the CRA even further. However, as the note was incurred by
the City, and considering that the CRA itself is scheduled to terminate before the end of the note
payments, it was understood by me, if not specifically stated to the investigators, that the City
would be responsible for not only payments for expenditures to non-CRA areas, but also for any
CRA area expenditures which may not have been able to be paid for by the CRA when it ceeses
existence. The reader is lead to believe that 1/we intended to have the CRA pay for everything,
even "beyond the grave", so to speak, after it terminates, which would not even have been
possible. I apologize if my answer to the investigator's question was incomplete or unclear.
2) Page 2 of 50, first paragraph, following the note 2 reference. The "?POrt states that "By then,
$416,365 of CHA funds had already been improperly expended on those parks others
outside the CRA area'' However, if I am understanding the statement correctly, I believe the
JOG is mistaken, .;as expenditures for the improvements on any paid for with funding from
the 2007 note is paid for from the Capital Projects fund, a City fund. It is the debt service that is
04/04/2013 12:43 9544505599 LADOLCETTA CPA PAGE 03/05
being paid out of CRA funds (see 1) above) until which time the CRA terminates or the CRA's
responsibility for the principal related to CRA area expenditures is e.xhausted, whichever comes
first.
3) Page 17 of 50. The accounting treatment of principal repayments as revenue was prescribed by
the City's Independent Auditors (CPAs) when the programs first began and affirmed by two
subsequent CPA firms as correct treatment. Disbursements are recorded as expenditures (not
expenses, as the CRA fund is considered a governmental fund) as also approved by three
different CPA Audit firms. This is not inaccurate; rather, it is governmental fund accounting.
4) Page 17 of 50, second paragraph. Dr. Jackson's assertion that the adjustment was presented to
him, by me, "only minutes" before the meeting is a bitof an exaggeration. If I recall correctly,
my budget staff brought it to their attention hours earlier, after working tirelessly with CRA staff
for several days to correct CRA errors in the budget. They then brought it to me for review, and
we noted the $550,000 misclassification. See also page 33 of SO, second paragraph.
5) Pages 18 of SO through 20 of 50. As explained in 1) and 2) above, the CRA repayments of debt
service was always intended to only continue until the CRA related principal was repaid. Any
City related proj!lCts and their expenditures were always int!lnded to be repaid by the City. The
$580,591 stated as spent outside of CRA areas was nevertheless spent after the $17.9 million
plus, stated in 1) above, and therefore the principal repayment related to those expenditures
would be anticipated to be repaid by the City ajterthe repayment of the $17.9 million plus
repayment by the CRA. The $5,347,000 mentioned has not yet been expended, and therefore is
not due to be repaid by the City yet either. Therefore there is no inappropriateness of the
repayments by the CRA.
Page 19 of 50, the first full paragraph, states "all repayments to date had been funded by the
CRA, including repayments of the portion of Bonds proceeds already expended outside the CRA
boundaries." That is an inaccurate statement. As the full $17.8 million plus of principal
repayments had not yet been repaid by the CRA, NO repayment of the portion of the bonds
related to the expenditures outside the CRA area had yet been made, and in fact would not be
due until at least the year 2024.
Also, the last sentence in that last paragraph cannot be accurate, as the CRA's existence ends
before final repayment of the Bonds, and therefore "all future repayments" could not possibly
be made by a non-existent entity, and would necessarily have to be repaid by the City.
6) Page 19 of 50, second paragraph. I admitted that I was not familiar with the location of several
of the Parks in the City, including Scavo Park and Sunrise and Sunset Parks. But South Beach
Park? I do know where the beach is and that it is not within the boundaries ofthe CRA. If I
really said that (though I doubt it) it would to h.:;;a.vQ bQen l nervous: :and
misunderstood the investigator and assumed he was actually talking of Sunrise Park.
LADOLCETTA CPA
04/04/2013 12:43
9544505599
PAGE 04/05
7) Page 30-31 of 50. I do not recall the Dr. Jackson alleges we had regarding the
account number to be used for the land acquisition. However it is possible that a conversation
of to find funding for potential/and acquisition ensued. However, I was not at the
meeting in July where the proposal to use CRA funds for the Ben Gam/a purchase was made, nor
was I asked to review the staff report for that meeting prior to inclusion in the agenda. Had I
seen the staff report, I would have instantly identified several errors within the report prior to
issuance. The accounts and projects delineated in the July 2011 staff report to the Commission
as proposed accounts from which to make various purchases/payments related to the Ben
Gamla property, included many accounts and projects which were incorrect for the purpose to
which they were identified, and/or had insufficient funding to make the proposed payments. In
addition, In my professional accounting judgment, when I reviewed the transaction
subsequently, in the normal course of analysis, it appeared appropriate to use the City
Developer Agreement funds, as park infrastructure was the intended purpose of those funds,
and Park property is routinely deeded back to the City, whether paid for by CRA funds or other
funding. Also, it seemed in the CRA's best interest, as CRA funds could be put to better use for
other projects or programs, once relieved of this burden.
8) Page 31 of 50 last paragraph of Dr. Jackson's interview. In it Dr. Jackson that he "found it
even more appalling that the funds would be spent outside the CRA area". As the debt was
incurred by the City (not the CRA) for land acquisition and improvements to parks/open space
within the City (with no designation that it must be within CRA borders), such spending is not
"appalling" or inappropriate. As for the repayment of the debt with CRA funds, refer again to 1),
2) and 5) above.
9) Page 32 of 50, last paragraph. Refer to comment 6).
10) Page 40 of so, Mr. London's comment that "the City and CRA have misspent millions of dollars
over the years that have not been accounted for-" I totally disagree and, as former Director of
Finance I take offense at the accusation. As stated before, multiple CPA firms over the years
have reviewed the CRA as a major fund, which in an audit means especially intense examination
is done of the accounts, procedures, controls, etc. in every aspect of the fund's accounting,
found no occurrencss of misappropri.,tion, misspending, or fraudulent activity of any kind, as
proposed by Mr. London. Even the Special Report the City contracted, after Mr. London's
badgering, uncovered no fraud instances either, other than minor housekeeping issues such as
sloppy filing of documents, difficulty finding documents because they were not filed ali in one
place, etc. Every penny is accounted for, and in fact, in response to a similar accusation several
years ago, a spreadsheet was created by me, from inception ofthe CRA to that date (2009
perhaps?), and presented to the City Manager. Said spreadsheet detailed the sources of every
penny of revenue and the dispositions of every penny of expenditure from inception.
LADOLCETTA CPA
04/04/2013 12:43
9544505599
PAGE 05/05
11) Page 43 of 50, the discussion of the recommended purchase price of the HVM property. If Mr.
London did the calculation, rather than make accusation< that spread ill will without any
substance, he would have discovered that the $235,000 is the mathematical average of the
three viable appraisals, Exhibit 9, (throwing out the fourth one, deemed an outlier).
12) Page 45-46 of SO, discussion of the Future Foundation. To expand on the discussion, it is
important to note that, per the By-Laws of The Future Foundation, the members of the Board
must consist of the Mayor as President/Chair, and the Vice-Mayor, and the remaining three
Commissioners, City Manager, Director ofParks & Recreation, Human Services Director, and City
Attorney as members of the Board. In effect, if recusal from voting on issues related to the
Future Foundation were required, there would never be a vote, as all five members of the
Commisgion would have to recuse themselves.
The above is respectfully submitted for your consideration when finalizing the report. As I have no
further ties to the City, other than as a pensioner, I may be contacted at the above address and
contact information if required.
Sincerely,
Patricia M. Ladolcetta, CPA
OIG 11-020

APPENDIX E

April 4, 2013

Dwayne Michael Good
5101 Southwest 89 Terrace
Cooper City, FL 33328

John W. Scott
Inspector General
Broward Off ice of the Inspector General
One North University Drive
Suite 111
Plantation, FL 33324

Subject: OIG Preliminary Report, Ref No. OIG 11-020

Dear Mr. Scott,

In receipt of the above subject report, I am submitting the following comments and
corrections.

The Community Redevelopment Agency (CRA) has and will continue to be a subject
of interpretations, as I have read through Florida Statute, Chapter 163. I certainly
can see the challenges that face any CRA Board or Executive Director. In as much,
that not only does a CRA Administrator and Board of Directors have to interpret the
Statutes, they must contend with the needs of their CRA community and changing
aspects of the same.

The City of Hallandale Beach has evaluated the statutes in regards to the CRA and I
note that the OIG has had to interpret the same statutory requirements. I see that
the OIG report references the Attorney Generals (AG) opinion on grants and
festivals for tourism. I cannot speak to the question or request for opinion that was
posed by the City of Hallandale Beach since I was not employed there at that time. I
can say the AGs opinion may have been different if the City would have asked the
question in a different manner. For instance, if the City would have asked, could a
CRA use funding for festivals and grants to prevent crime? The AG may have
agreed, as it is clear in the statute that these moneys are to be used for those
purposes. I bring this to light, as this is a viable interpretation and one that may
differ from your office.

CRAs in many communities are administered differently based on their
interpretation of the Florida Statutes, the needs of the CRA, the challenges of
changing leadership, and desires of the community in which the CRA presides.
Based on the individuality of each CRA, there may be no exact wrong or right
method of administration, but a fine line with meeting the needs and expectations of
a blighted CRA community while fitting it into the statutory requirements.

Page 2
April 4, 2013
Letter of Response to OIG Report

REPORT FINDINGS

Page 2 The CRA fomented an appearance of favoritism for the land acquisition of
the Higher Vision Ministries Property by failing to consider the purchase of the
property in a fully transparent manner.

The fact is there were several meetings regarding this property both before and
after the Special Meeting relating to the approval and purchase of the land by the
CRA. It is incorrect to assume that there were no other discussions with the CRA
Director or the community. I stated during our meeting that the purchase of this
property was a part of the Forster Road Improvement Project and was not only
discussed at CRA meetings, but also at community meetings with the CRA Executive
Director and the CRA Board of Directors. The cost of said property was also
discussed at the same meetings.

Page 6 and 7 Failure to Establish the CRA Redevelopment TRUST FUND and
Failure to operate the CRA as a Separate Legal Entity

The CRA had its own Fund and all moneys were tracked in a professional manner,
utilizing Government Accounting Standards Board procedures (GASB). During the
annual budget adoption process, the CRAs budget and related planning documents
were presented and adopted separately from the Citys, which included the CRA
management team, Board of Directors, and allowed for public participation. The
intent of the CRA Statute was to ensure that the CRA Trust Fund was accounted for
correctly, therefore it should be noted that the CRA Trust Fund was audited every
year and was found to be in compliance.

The CRA was most certainly operated as an independent entity, and in fact it had its
own policies and procedures, and either the Board of Directors and/or the Executive
Director approved all project and programs. Considering the CRA is part of the City,
it is essential that a close relationship exist between the CRA and the City.
Accordingly, the City Commission and the City Manager must meet the needs of the
residents within the CRA (and City) regardless. Thus, I agree with the Citys current
position with having the City Manager serve as the CRA Executive Director. This is a
matter of efficiency, which streamlines the needs of the CRA community and
removes an additional layer of bureaucracy that would have slowed the process of
achieving the plans, goals, and objectives within the CRA.

Page 3
April 4, 2013

The OIG report states indeed, in March of 2008 Mr. Good caused the City to
formally embrace that notion by merging the CRA with the Development Services
Department (DSD), making the CRA a section of the DSD.

I believe that as the Executive Director of the CRA there was no merging, as I was
the one responsible and accountable for the efficient operations of the CRA. Hence,
when the City lost the CRA Director, I diligently searched for someone that could
manage the day-to-day operations of the CRA, and this person would report to the
Executive Director. I selected the most qualified person in the organization and
assigned him these duties. Further he was assigned a CRA Coordinator and other
staff to assist me with performing the duties required of a CRA Director.

This would be no different than if I was the Executive Director and I approved a CRA
project for stormwater and assigned it to the Public Works Department. I would
still be responsible even though another department outside the CRA would be
managing and performing the work. In the same way the Executive Director may
delegate duties to the DSD, yet still have the responsibilities. My point is that there
was separation between the City and the CRA as I was the CRA Executive Director.

The City has various independent enterprise funds, (for example, Sewer,
Stormwater, Water) which were held separately from the General Fund, and dually
managed by the City Manager and the appropriate staff. As a means of efficiency,
the Executive Director and the Board of Directors managed the CRA in the same
manner as the City Manager and Commission managed these other funds, with the
exception, the CRA are governed by FS 163.

Page 8 Failure to maintain a Stable and Empowered CRA staff

The OIG report indicates that I was employed as the CRA Executive Director until
June 2010. I cannot address the activities of the CRA from my departure date to
current. When I met with the OIG staff on October 15, 2012 Over 2 years had
passed, and I came into the meeting not familiar with the matter at hand as I have
not studied the CRA or any related questions. I was able to resolve many of the
allegations posed to me, however my lack of study regarding the CRA statutes and
some of your questions was not because I lacked knowledge and understanding
during my administration but rather the laps of time that has past.

Page 4
April 4, 2013

Page 13 The OIG investigation determined programs that appear to have been
outside the scope of Chapter 163.

As I am sure you are aware Chapter 163 has been subjected to various
interpretations over the years. The City of Hallandale Beach administered programs
and policies in accordance to Chapter 163, Section 163.340(9), as defined on page 3
of the subject report; undertakings, activities, or projects in a community
redevelopment area for the elimination and prevention of the development or
spread of slum and blight; the reduction or prevention of crime

Based on Section 163.340(9) as noted above, funding allocated to non-profit entities
was consistent with Florida Statutes. Specifically, the CRA did provide funding to
programs, such as the Police Athletic League (PAL), and non-profit groups such as
Eagles Wing, and so on, which directly supported crime prevention and the
reduction of blight.

On a further note, the City of Hallandales CRA did provide TIF funding to Children
Services through a contractual arrangement as necessitated by Broward County.
Childrens Services is a non-profit agency offering programs and services for
children not bricks and mortar.

Page 14 It further appears that some of the civic promotions paid for with CRA
funds took place outside the CRA boundaries the fireworks were for the entire
City charged to the CRA.

As I previously stated when we met, the CRA and General Fund paid proportional
shares for this event which was conducted outside the CRA boundaries, however
had a direct benefit to the CRA, as it promoted community safety and crime
prevention. What may be unique to the City of Hallandale is the size of the CRA
District. The CRA District is more than half of the City, hence giving the appearance
that the CRA funds a disproportional share, which in reality it does not.

Page 14 The CRA Loan Programs were Grossly Mismanaged

The OIG report identifies two loan programs as mismanaged. The first is a loan
mentioned related to the City waiving the Business Incentive Program (BIP)
requirements for Digital Outernet Inc. In as much as there are policies and
procedures used to guide the issuance of loans for new up-coming businesses. The
CRA Board can waive requirements when necessary. The CRA Board based the loan
Page 5
April 4, 2013

approval to an existing CRA businessman who had legitimate plans to open another
business, which would provide jobs within the CRA community. He had worked on
this proposal for at least a year and demonstrated his ability to be successful in
other businesses. The CRA Board did their due diligence and granted his request,
with conditions. First he would only receive $75,000 of the $125,000 he requested
and before he received any additional funds he would have to achieve certain
benchmarks. It is unfortunate that there was some paperwork that was not signed
and John Hardwick passed way, if he were still alive today I believe this would not
be an issue. However, at the same time, the CRA Board takes policies and the full
impact of the blighted CRA community into consideration.

The second loan identified in the report pertains to the Small Business and
Retention Program (SBRP) offered to the South Florida Sun Times. The South
Florida Sun Times was/is a long-term successful business located in the Hallandale.
As presented, the business was financial strained due to changing times and the
significant economic recession. Considering the business history of the Sun Times, it
was important to the CRA community not to lose this business, hence the SBRP was
established. This program was created not only to assist the Sun Times but other
businesses experiencing similar financial strains. Based on the information
provided to the CRA officials and the economic recession, the loan was justified.

Page 26 Mr. Good stated However, he later stated that the event was improperly
funded because it was beyond CRA boundaries.

This is an inaccurate statement from our meeting, which I reviewed in my notes. I
stated that programs and/or events supporting the people within the CRA met the
(statutory) requirements and the expense was justified, as noted on page 4 of this
report.

Page 27 Mr. Good stated that he was not generally involved in details Instead, he
stated, he relied upon Ms. Ladolcetta

I did not state I relied on Ms. Ladolcetta, but staff and in this particular instance,
the Finance Department. Please be advised that Mr. Antonio was in charge of the
Finance Department for a number of years prior to Ms. Ladolcetta, therefore the
responsibility could not rest with her alone.

Page 6
April 4, 2013

Page 49 The OIG investigation revealed they failed to institute any measures of
CRA independence.

The City did in fact independently: adopt budgets, plans, policies, and procedures;
establish a separate Board of Directors; and conduct separate Board meetings for
the CRA District. Hallandales CRA mimicked many other CRA districts throughout
Broward County. Further, as required with all CRAs, Hallandale did report annually
to Broward County on programs and activities, and never did the County challenge
or question the programs, policies and events mentioned in the report as being
mishandled or managed.

In closing, I find it somewhat frustrating that the majority of activities the CRA
performed were done right and in accordance with the Florida Statutes but were not
recognized, such as: providing additional housing; reducing crime; taking large
areas that were blighted and transforming them into an economic engine that
provides for countless jobs, and a hub for emerging businesses; rebuilding roads;
improving stormwater drainage and preventing flooding; and countless other
infrastructure projects all meant to improve the quality of life for the residences of
the CRA area. In the endeavor to eliminate blight and improve the community there
are problems, and minor mistakes may surface with any large organization.
However, the bottom line is that my staff and I working along with the CRA Board of
Directors did plan, administer, and operate the CRA in a most professional, honest,
ethical, and appropriate manner.

All decisions are not cut-and-dry as one would believe by reading the OIG report,
since there are many factors that must be considered along with Florida Statute 163.
What is the strength of the economy? What need base programs will reduce crime?
How can new job growth be fostered? And when meeting with the community in
general, what have we learned by meeting with the people, community groups, and
business in the CRA area and what are their expectations? Each program, policy,
and individual case for loans, grants, or donations that would be responsive to crime
prevention and eliminate blight must be considered on its own merits and not fit
into a defined box. As the purpose of a CRA and Florida Statute 163 is to allow for
the transition of a community from blight and poverty, to an acceptable quality of
life for the residences and business within district. Renewed infrastructure and
crime prevention programs were established, such as: educational, sport, and art
programs to keep children off the streets; and food, recreational, and mental health
programs to provide lifestyle choices for adults rather than resort to crime.

Page 7
April 4, 2013

Additionally, it should be noted that there is a disconnect of trust between
government and those who reside in blighted areas. This trust factor must be
managed in a way to allow for the freedom for local community-based groups to
participate in their community and provide services, which cannot be tangibly
measured, since these services build self-confidence and reestablish a community
bond between neighbors, government and citizens.

When I met with the Special Agents from the OIG office, there were numerous
allegations that were brought forth, and I was able to dismiss many of them.
However after reading the OIG report, I find that many of the people identified in the
OIG report had ulterior motives, either politically and/or personally, and others who
are unfamiliar and fearful of the process. I raise this point since what I have read is
not completely accurate and does not represent the professional and ethical
approach I brought to the CRA, as well as, government in general.

Lastly, I do believe that there was NO knowingly gross mismanagement either by
the CRA Board, my staff, or myself. It is with this that I provide a sincere
RECOMMENDATION. There appears to be a large disconnects with municipalities
relating to the use of Community Redevelopment funding and in fact each city is
interpreting Florida Statue 163 in a different manner. Broward County is a
stakeholder in the CRAs and has had opportunities to evaluate plans but has
provided little feedback. I suggest a series of workshops should be undertaken,
lead by the County, to provide specific guidelines as to the use of these funds, build
awareness of the individual needs of each CRA, and provide for legal interpretations.
This workshop/meeting should have in attendance all active CRAs in Broward,
experts in the CRA field, and of course the County itself.

Thank you for allowing me to respond to this report and I wish you well in the
future.

God Bless,

D. Mike Good
OIG 11-020

APPENDIX F

04-04-' 13 23:09 FROM- T-283 P0001/0013 F-305
LAW OFFICE OF
BENEDICT P. KUEHNE
PROFESSIONAL ASSOCIATION
BENEDICT P. KUEHNE*
MIAMil'OWER. SUITE 3550
1oo S.E.
Street
FORT LAUDERDALE OFFICE
SUSAN DMITROVSKY
MIAMI, FlORIDA 33131-2154
200 S.W. 1" Avenue, Suite 1200
Telephone: 305-789-5989
Fort Louderdale. FL 33301-2073
'Boord Certified
Facsimile;
Appellate Practice and
ban.ku:hne@kuehnelaw.com
Criminal Trial Practice
susand@kuehnelaw.com
REPLY TO: Miami
April4, 2013
Broward Office of the Inspector Gene!al
One N University Drive, Suite 111
Plantation, FL 33:324
Fax: 954.357.7857
InspectorGeneral@Broward.org
Re: OIG Preliminary Report No. OIG 11-020
Response and Request for Retraction by Dr. Deborah
Brown and Palms Center for the Arts
Inspector General_ Scott:
My law firm represents Dr. Deborah Brown and the Palms Center
for the Arts ("PCA") in connection with the referenced report. Because the
report contains significant errors of fact and was compiled without a fair
opportunity by my clients to present the operative facts, I am requesting
that all references to Dr. Brown and the Palms Center for the Arts be
excised and redacted. Alternatively, I request that the entirety of this
response be inserted directly into any final report but not included as an
exhibit or attachment.
A. Background of Dr. Deborah Brown and Palms Center
for the Arts.
Dr. Brown is a longtime educator and community mentor, having
worked with children through the public schools and respected community
organizations for more than thirty (30) years. She is a highly regarded
music teacher whose efforts as an educator have stimulated the creative
abilities of many hundreds of Broward County students throughout the
04-04-' 13 23:09 FROM T-283 P0002/0013 F-305
,John W. Scott, Inspect
April 4, 2013
Page 2
or General
years. In addition to her educational end{lavors, Dr. Brown has a
Doctorate in Theology conferred byUnited Fellowship School of Theology
of Lee University in Tennessee.
1
Her community activities, centering on
the cultural and creative development of South Broward (Hallandale
Beach area) children, include service as the Director of the Palms Center
for the Arts since 2009, and the Director of the Zamar School of
Performing Arts since 1997.
B. PCA Has a Documented Record ofSuccessful Programs
and Positive, Measurable Results.
Dr. Brown, individually and through both PCA and Zamar School,
is a tireless activist in service of the economically disadvantaged students
in Broward County, specifically the Hallandale Beach CRA-area
population. By focusing on the encouragement and development of skills
and interests in the arts, PCA and Zamar endeavor to prepare students
for real life opportunities in the music, recording, theater, performance,
and creative arts industries. At a time of declining public school budgets
for the arts, Dr. Brown's efforts have spearheaded a rejuvenation of
interest in student-led creative achievements. Through published annual
and quarterly reports made available to the public and to government
organizations, including the Hallandale Beach City Commission and the
CRA, PCA and the Zamar School carefully document the results of their
efforts.
2
1
Dr. Brown graduated from Florida A & M University School of
Music with a bachelor's degree in music education in 1984.
2
In this respect, the OIG Preliminary Report is grossly false and
misleading at pages 12-13 and footnote 13 in asserting that "none of the
other non-profits were able to provide any evidence of the results of their
endeavors." PCA and Dr. Brown identified published reporting and
documentation of their programs and results, but the information was
rejected and ignored by the OIG and its investigators. Attached as
Attachments 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13 and more fully
discussed in this submission is just some of the publicly available
(continued ... )
04-04-' 13 23:09 FROM- T-283 P0003/0013 F-305
April 4, 2013
Page 3
C. CRA-Sponsored Trip to D.C. in 2010 Was a Measurable
Success.
As an example of its documented successes, PCA sponsored a "Save
the Arts" educational and performance trip to Washington, D.C. in March
2010, that was partially funded by a generous $5,000.00 grant from the
CRA. The total expenses for the program exceeded $17,000.00, most of
which was raised through donations and PCA operational funding, with
the $5,000.00 from the Hallandale Beach CRA comprising the balance.
The total expenditures for the trip were properly identified and reported.
The 48 students and chaperones who traveled by charter bus from
Hallandale Beach to D.C. performed at the Lincoln Memorial, the World
War II Memorial, and at the White House in Lafayette Park. They also
marched in unison to the White House in full band regalia, met with
Members of Congress, observed then-Rep. Kendrick Meek vote on the
important Health Care Bill, and learned about lobbying for educational
ISSUeS.
Every expenditure for the trip was properly and appropriately
documented. The entire trip was fully documented and publicly presented,
and photographs were circulated. Dr. Brown and the PCA made a post
event presentation to the Hallandale Beach CRA an:d extended thanks and
appreciation to the Hallandale Beach Commission and the CRA staff. The
benefits and results of the program were measured and measurable. The
sponsors, including the Hallandale CRA and Gulfstream Park & Casino,
People for Change, Higher Vision Ministries, Samaritan Christian Center,
and all the community friends of the arts, were well served by this
important program.
D. A History of Many Meaningful Student Programs and
Positive Results.
During each and every year, Dr. Brown, PCA, and Zamar School do
2
( ... continued)
documentation ignored by the OIG in an effort to falsely malign both Dr.
Brown and PCA/Zamar School.
04-04-' 13 23:09 FROM- T-283 P0004/0013 F-305
April 4, 201:3
Page 4
so much to enhance the lives of Hallandale's youth. In October 2009, fifty
(50) inner city youths marched up the steps of the Florida Capitol in
Tallahassee, turning "Music Into Government" for a PCA and Hallandale
Teen Center sponsored program in'I'allahassee. The students participated
in a mock legislative debate, met with local elected officials, toured the
Capitol, FSU, and FAMU, and publicly performed during the FAMU
Homecoming Parade & Boat Fest. Documentation of the trip and its
successes was publicly distributed by PCA and the Hallandale Teen
Center, and presented to the City of Hallandale Beach staff.
Ongoing activities, from PCA's inception in 2009 through the present
time, provide meaningful programs for inner-city youth in Hallandale
Beach. The PCA facility itself is vibrant and full of life, noise, activities,
and creativity from morning to night, during the week and on weekends,
every month of the year. The development of this cultural venue in
Hallandale Beach has measurably improved the lives of the area children
and families. City Commissioners and staffhave attended PCA-sponsored
events, purchased PCA student"produced art, and toured the facilities.
Every step of the way, PCA has been attentive to its responsibility to
document programs, obtain measurable results, safeguard its meager
resources, and showcase the benefits to the community. Readily available
documentation has been made publicly available and is accessible to
anyone in the community.
E. Dr. Brown's Efforts to Cooperate with OIG
Investigators.
Dr. Brown, as the Director of PCA, is responsible for the activities
of the organization but is far from the only person involved. Numerous
teachers, community leaders, even members of Dr. Brown's family
contribute time, resources, and skills to the PCA The work of
PCA is entirely transparent and carefully monitored. So when Dr. Brown
was summoned by the OIG for what she was told was a "general audit,"
she looked forward to the opportunity to broadcast the good works of the
organization and its affiliates. Since she is not a financial or numbers
person, she thought it would be best for the PCA accountant to attend the
interview in the event the OIG had financial questions. Unexpectedly,
Dr. Brown was instructed she could not have any accountant or
04-04-' 13 23:10 FROM- T-283 P0005/0013 F-305
April 4, 2013
Page 5
financial staff person attend, and was given no reason for the
significant exclusion. Apparently, the OIG's insistence that Dr. Brown
had to participate in the audit alone was intentional and result-based.
During the interview, Dr. Brown attempted to be helpful to the OIG.
But it quickly became apparent the OIG was not interested in
understanding the work of PCA, but had already reached conclusions it
simply wanted to ratify. She was inundated with financial questions
without having supportive backup to review, and she was denied her
requests to have her accountant participate and review the items at issue.
When she was questioned about the use of the CRA funding, she did her
best to explain how the programs operated, as she repeatedly emphasized
she did not have a ready memory of financial matters and details about
programs without having access to backup information.
Although Dr. Brown's modest compensation for overseeing the
operations of PCA and Zamar School was well known and understood, the
OIG investigators repeatedly suggested wrongdoing over the fact that Dr.
Brown received compensation. The OIG even questioned PCA's eligibility
for the total funds received from the City (approximately $100,000 over
three years), although every City contribution to PCA was the result of
affirmative requests by Dr. Brown and resulting City decision-making.
It became apparent to Dr. Brown during the course of her voluntary
interview that the OIG had combed through the PCA bank records and
was intent on probing financial details with which she was neither
familiar nor conversational. Again, she asked to be assisted by the PCA
accountant, but again her request was refused. So Dr. Brown was left to
either offer her best guess or to decline to engage in conjecture. She
repeatedly informed the OIG she had no recollection of details and needed
the assistance of an accountant to provide the information requested.
When it became apparent the OIG investigators were not interested in
allowing her to work through the financial questions with the assistance
of the accountant, Dr. Brown respectfully informed the OIG that she could
no longer be of assistance and terminated the interview. Her request to
provide the sought-after information to the OIG once she had an
opportunity to sit with the PCA accountant was rejected.
04-04-' 13 23:10 FROM- T-283 POOOB/0013 F-305
April 4, 2013
Page 6
F. OIG Preliminary Report Contains False and Ineorrect
Information About PCA and Dr. Brown.
Reports compiled by the Office of Inspector General should be
accurate and objective. Importantly, subjects of OIG reports should have
a meaningful and reasonable opportunity to provide pertinent and
relevant information to the OIG. Just as importantly, persons interviewed
by the OIG and organizations audited by the OIG should be given
reasonable opportunities to gather andcompile responsive and descriptive
information, and not pressed to respond without financial or other
assistance. In this respect, the OIG Preliminary Report does a disservice
to the City of Hallandale Beach, PCA, and Dr. Brown, offering nothing
more than speculation, innuendo, incomplete reporting, and affirmative
misreporting. The record should be promptly and fully corrected.
Page 1 of the Preliminary Report advances the speculative and
unfounded conclusion that ''probable cause" exists that Dr. Brown
"engaged in criminal misconduct in the handling of a $5,000 award the
PCA received from the CRA." That assertion is false, not supported by the
facts, and objectively unreasonable. Throughout her handling of CRA
funds, Dr. Brown has acted responsibly, properly, in good faith, and with
every intention to properly safeguard public funds.
Page 12 and 13 of the Preliminary Report falsely asserts "there was
very little documented evidence of the results achieved" by PCA, when in
fact the documentary record- and the information reported to the City of
Hallandale Beach and its CRA- is extensive, detailed, and transparent.
Page 12, footnote 13 misleadingly states that PCA was unable "to
provide any evidence of the results" of its endeavors. Had the OIG given
Dr. Brown or PCA a reasonable opportunity to provide documentation, the
trove of responsive materials would have been immediate and
comprehensive.
Pages 0 ~ 2 1 1 inaccurately state "probable cause to believe that Dr.
Brown caused PCA to misapply $5,000." Contrary to this unsupported
conclusion, the PCA records maintained contemporaneously from the time
ofthe March 26, 2010 receipt of the $5,000 CRA grant to the present time,
04-04-' 13 23:11 FROM- T-283 POOOJ/0013 F-305
April4, 2013
Page 7
reflects that the expenses incurred in connection with the D.C. trip
exceeded $17,000 (Attachment 1). The charter bus departed Hallandale
Beach on March 26, 2010, the same day the $5,000.00 was received by
PCA. By that time, PCA had already expended much of its funds to
reserve the hotel rooms, pay for travel accommodations, and obtain the
student band uniforms. As PCA had explained in seeking the CRA grant,
it would utilize matching funds to multiply any public funding from from
the City. PCA did exactly as it has asserted, matching the ORA's $5,000
with more than $12,000 from other sources.
3
PCA's receipt of CRA grant money is not as stated in the OIG
Preliminary Report at page 20. The CRA provided only the following
funds:
FY 2009-2010: $2,500.00 (reimbursement for Tallahassee
Trip)
FY 2010-2011: $25,000.00
FY2010-2011: $5,000.00 (funding for DC. Trip)
FY2011-2012: $50,000.00
Separate funding from the Weed & Seed Program, although disbursed by
the City of Hallandale Beach, is not from CRA funds and is not part of the
CRAwhatsoever. The OIG's conflation of the separate funds demonstrates
its weak understanding of public money and its erroneous effort to
conclude that all of PCA's public dollars were obtained pursuant to the
CRA Agreement.
The OIG's concern on Page 20 that "the OIG found no evidence that
the City ever asked for proof of the matching funds" is materially
misleading, as PCA's own recordkeeping shows the entire expense report
for the D.C. trip, and PCA's projected $15,000.00 budget for the program
was widely disclosed. Also, the $5,000.00 funding was approved at a
regular meeting ofthe City Commission in March 2010, not a separately-
Dr. Brown had requested a $10,000.00 grant, but the CRA
allowed only $5,000.00, requiring PCA to obtain a match for the other
$5,000.00 budget allocation.
3
04-04-' 13 23:11 FROM- T-283 POOOB/0013 F-305
April 4, 2013
Page 8
called CRA meeting as the OIG reports.
Contrary to the OIG's assertion on pages 20 and 21 that "only $323
of the $5,000 was spent on the trip," the entire $5,000.00 grant
underwrote that amount of the trip and was credited to the D.C. trip and
used for no other purpose. Because the $5,000.00 grant came late to PCA,
the travel budget had already been set with thousands of dollars already
expended, exceeding the $5,000.00 match obligation. PCA used its other
available funds and contribution sources to pay these amounts due and
internally credited the $5,000.00 for this project. In truth and in fact, the
entirety ofthe $5,000.00 CRA grant was accounted for the D.C. trip, in full
compliance with the understanding of the grant's purpose.
Even a routine accounting analysis of PCA's financial records and
the expenditures for the D.C. trip would corroborate that the $5,000.00
was credited for the D.C. trip, that PCA more than met the match
requirement, and that PCA advanced funds from other sources to pay for
trip-related obligations before receipt of the CRA grant. From an
accounting perspective, the CRA grant was properly utilized and credited,
an explanation the PCA accountant would have been able to provide had
the OIG given Dr. Brown the opportunity.
Dr. Brown attempted to explain the PCA use of the Orlando time
share unit, but she did not have access to the records showing that
students traveling to Orlando for the Fullsail program and summer camp
trips utilized the time-share at least during the months of April and July
2010, May and June 2011, and February and May 2012. Similarly, had Dr.
Brown been given access to her accountant during the OIG interview as
she requested, she would have informed the investigators that the
$2,000.00 and $4,100.00 transactions were actually account transfers.
The OIG's assertion on page 21 that Dr. Brown "could not, or would
not, explain why she spent the money on goods and services unrelated to
the trip" is a mischaracterization of the facts. Dr. Brown repeatedly
insisted the entire CRA grant was used exclusively for the D.C. trip. The
OIG investigators refused to credit her explanation, and refused to allow
her to support her assertion with the assistance of the PCA accountant.
Such a blatant misrepresentation undermines the integrity of the OIG
04-04-' 13 23:12 FROM- T-283 POOOS/0013 F-305
April 4, 2013
Page 9
audit and unfairly demeans the worthwhile activities of Dr. Brown and
PCA.
The OIG's conclusion on page 21 that "Dr. Brown's use of the $5,000 .
is a stark example of such abuse" is unfairly accusatory without any
supporting evidence. Far from utilizing recognized auditing and accepted
investigative techniques, the OIG in this instance is guilty of misfeasance
and misconduct in unfairly accusing Dr. Brown and PCA of wrongdoing
where none exists.
The OIG's summary of Dr. Brown's interview, appearing in 11 at
Pages 47-49, is a creative invention of the actual interview. Because the
summary is so erroneously one-sided, Dr. Brown and PCA demand that
the OIG produce a recording or transcript of the interview so Dr. Brown's
actual words cannot be misinterpreted or misconstrued. Anything less is
an unfair miscarriage of justice.
Dr. Brown never minimized or downplayed her PCA compensation
as the OIG suggests on page 47. She has earned all that compensation,
has never hidden her modest compensation, and has wisely utilized her
time with PCA to advance the interests of Hallandale's inner-city youth.
Her brother, too, earns the money he receives. At no time has PCA ever
acted to keep its personnel and staff payroll secret.
The OIG's assertion that Dr. Brown could not support student
placement, at page 4 7, is typical of the misleading omissions and
insinuations in the Preliminary Report. PCA's student participation and
placement in internships and other job-related positions is sufficiently
documented in PCA's records, but Dr. Brown was given no opportunity to
review or provide those materials to the OIG. PCA provided OIG with all
1099s for the PCA staff members and a spreadsheet identifying all
student stipends, a critical fact omitted from the Preliminary Report.
Dr. Brown and PCA disagree with the statement at page 48 that
"PCA's grant agreement with the CRA did not contemplate the provision
of transportation services." PCA has always understood that transporting
students to programs is a necessary ingredient of the programs and
services it provides. After all, if students are not able to get to PCA to
04-04-' 13 23:12 FROM- T-283 P0010/0013 F-305
April 4, 2013
Page 10
participate in the available programs, the educational opportunities are
wasted. Therefore, it is and has been Dr. Brown's understanding that
transportation costs were an appropriate aspect ofthe CRA grant funding.
Dr. Brown did not admit to "mistakes in how she managed the PCA
financial accounts" as stated by the OIG. To the contrary, she described
herself as a music educator who had little training in financial statements
and accounting. She further explained that the PCA accountant was
responsible tor reviewing and preparing financial reporting, and that she
anticipated PCA's books and records would properly detail and record
income and expenses. Since PCA was able to obtain the services of an
experienced accountant, Dr. Brown relied on the accountant to properly
record all expenditures and income on the PCA books and records.
Dr. Brown's explanation of the D.C. trip in March 2010 is similarly
misreported at pages 49-50. She explained to the OIG that PCA had
exacting records for every trip expense, and that PCA had documentation
of every student and chaperone attending. She requested the opportunity
to have the PCA accountant present to explain the reporting of trip
expenses, but the OIG refused to allow Dr. Brown to obtain that needed
assistance or to provide supplemental documents. Insisting that she would
not speculate about a single expenditure without being certain,. she
refused to offer a guess. Every PCA expense, she indicated, was properly
used for PCA purposes, even the student use of her Orlando time-share.
She reaped no personal benefits from PCA other than that which she
received in compensation and expense reimbursement, all of which is
allowable and authorized.
Footnote 36 on page 49 is again misleading. At no time did Dr.
Brown "flatly respond ... that she could not answer the questions." Rather,
as explained before, she repeatedly insisted she needed the assistance of
the PCA accountant to answer financial questions. OIG's refusal to allow
that consultation is not only unfair but further undermines any reliability
of the Preliminary Report.
G. Supporting Documentation Underscores the Propriety
of PCA's Activities and Its Proper Use of CRA Funds.
04-04-' 13 23:13 FROM- T-283 P0011/0013 F-305
April 4, 2013
Page 11
As Dr. Brown insisted, much to the OIG's displeasure, "all funds
were used for the kids." Preliminary Report, page 49. '!'hat is an accurate
statement by Dr. Brown.
Attached to this submission are documents corroborating the
validity and value of the PCA projects and its use of funds.
Attachment 1: rl'his detailed Expense Reportforthe 2010 D.C.
"Save the Arts" Trip documents the expenses incurred. Of the $17, 549.09
budget, the $5,000.00 CRA grant accounted for less than one-third of the
incurred expenses.
Attachment 2: The D.C. trip documentation includes an
Itinerary, name of the hotel, post-event publication/press release
summarizing the results ofthe successful project, and photographs of the
students in Washington.
Attachment 3: PCA's 2009 visit to the Florida Capitol in
Tallahassee is documented in this published report that was submitted
to the City of Hallandale Beach and the CRA. Not only are the "results"
self-evident, but the student response is enthusiastic.
Attachment 4: This Palms Center for the Arts brochure, also
publicly disseminated and delivered to the CRA, reports on the measured
"successes" of PCA's activities, the involvement of Hallandale Beach
Commissioners, and the participation of area students.
Attachment 5: The Palms Center Creative Arts Academy is
focused on "job training through arts education. This program summary
was widely distributed through the City of Hallandale Beach and in South
Broward County. Program participants and participation is recorded in
PCA's records.
Attachment 6: This PCA collage documents many of the PCA
programs, participants, and facilitators. It is one of the many publicly
available measures of PCA's program results ignored by the OIG.
Attachment 7: PCA Quarterly Reports are prepared and
04-04-' 13 23:13 FROM- T-283 P0012/0013 F-305
April 4, 2013
Page 12
publicly distributed. Recipients include the City of Hallandale Beach and
the CRA. 'l'his compilation of Progress reports for the calendar quarters
from October 2011 through September 2012 provides a snapshot of the
measured results of the programs over a representative one-year period.
Notably, the Hallandale Beach City Commission and staff received public
recognition for helping in PCA's success.
Attachment 8: This PCA Quarterly Progress Report is file
stamped by the Hallandale Beach City Manager's Office on February 14,
2012. This report, once again ignored by OIG, contains measurements of
results, including program participation. Although the OIG includes as
Exhibit 3 to its Preliminary Report a Quarterly Progress Report for
Lampkin's Creative Arts 4 All, it purposely excluded inclusion of the PCA
reports required by the CRA funding agreement.
Attachment 9: This is a representative example of a complete
Quarterly Report submitted by PCA to the City of Hallandale Beach for
the period October 1 - December 31, 2011. It begins with a copy of the
Grant Agreement between the CRA and PCA (Pages 1-6 of 12), identifying
the duties and obligations of the parties and the reporting deliverables. As
mandated by the terms of the Agreement, PCA timely produced the
quarterly deliverables to the City. Its compliance has never been
questioned. Exhibit A (Page 7 of 12) is the Project Schedule/Timeline
Table for PCA's project objectives. Again, PCA delivered as required.
Exhibit B (Page 8 of 12) is the PCA Budget. It is noteworthy the budget
includes personnel expenses, consistent with Dr. Brown's explanation to
the OIG. Unfortunately, OIG ignored this public document and gave the
misimpression that Dr. Brown's compensation was entirely inappropriate.
Exhibit C (Page 9 of 12) is a Program Description provided by PCA
Exhibit D (Page 10 of 12) is a formal Payment Request by PCA to the
CRA This payment request was processed by the CRAin full compliance
with the Agreement. Exhibit E (Pages 11-12 of 12) is the Quarterly
Progress Report through December 30, 2011. This Report measures and
reports the program participants and the program success.
Attachment 10: This Quarterly Progress Report for March 30,
2012 is yet another representative example of PCA's compliance with the
terms of its CRA grant funding.
04-04-' 13 23:14 FROM- T-283 P0013/0013 F-305
April 4, 2013
Page 13
Attachment 11: This Bi-Annual Report submitted by PCA to
the City of Halla11dale Beach is another record of the documented results
of PCA's programs, again altogether ignored by the OIG.
Attachment 12: PCA's Final Report to the City of Hallandale
Beach, dated October 31,2012, contains a description of the CRAfunding,
the program operations, and the results achieved. This comprehensive
report, submitted in full compliance with the funding agreement, was
.never questioned by the OIG or anyone else. To the contrary, the OIG
ignored this submissionin an effort to disparage the powerfully productive
work of PCA in assisting the inner-city poverty community Beach.
Attachment 13: Zamar School, a sister organization working
together with PCA, has a myriad of programs and activities that are
explained in this brochure. Zamar School and PCA cooperate on many
joint projects, including the D.C. "Save the Arts" Trip.
H. Conclusion
The OIG Preliminary Reportcontains material misstatements of fact
and erroneous conclusions. Its preparation deprived Dr. Brown and PCA
of fundamental fairness, a meaningful opportunity to provide relevant
information to the OIG, and an objective assessment of the facts. The one
sided, misleading, and unfairly conclusory presentation suggests the goal
of the OIG was not to present an objective assessment of the facts but to
falsely place blame in an effort to undermine the proper use of
government funds to advance the cause of community building. The OIG
has abused its grant of government authority to cast blame where none
belongs. The OIG report should be redacted and excised in whole as to
PCA and Dr. Brown. Both PCA and Dr. Brown should be compensated by
the OIG for the loss of reputation caused by casting PCA and Dr. Brown
in a false light.
Respectfully submitted,
dk.ut<ct (f.t:<d.'""
BENEDICT P. KUEHNE
ATTACHMENT 1
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ATTACHMENT 2
Washington D.C. Tour
CITY OF HALLANDALE BEAC FLORIDA _ _.
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City of Hallandale Beach Florida
PALMS CENTER FOR THE ARTS
City-Wide Marching Lions, String Orchestra & Jazz Band
501 N.W. 1
st
Avenue Hallandale Beach, Florida 33009
Dr. Deborah R. Brown, Mr. Stewart Rabin, Rev. Josh Brown, Bishop Glen Adderley
______________________________________________________________________________
Itinerary & Hotel Information
Hilton HomeWood Suites/Downtown/D.C. Convention Center (202) 265-8000
1475 Massachusetts Avenue N.W. Downtown Washington, D.C.
Emergency telephone numbers (954) 288-5443 (954) 643-0015 (954) 444-7728 (954) 549-4655

Washington D.C.
Friday, March 26, 2010
10:00 p.m. Bus will depart from the Palms Center. Students Arrive by 8:00 p.m.

Saturday, March 27, 2010
2:00p.m. 3:00p.m. Arrive in Washington/Check in hotel
5:00 p.m.- DINNER-
6:00 p.m.-8:00 p.m. Smithsonian Museum Tour/Mitch Snyder Homeless Shelter Performance
8:00 p.m.-10:00 p.m. Cherry Blossom Festivities
11:00 p.m. LIGHTS OUT

Sunday, March 28, 2010
7:00 a.m.-9:00 a.m. Breakfast
11:00 a.m.- 1:00 p.m. Empowerment Temple-Dr. Jamal Bryant (Baltimore, Maryland)
4:00 p.m.-7:00 p.m. Band/Orchestra Music Performance at World War II & Freedom Plaza
7:00 P.M.-8:00 P.M. DINNER-
8:00 P.M.-11:00 P.M. FREE TIME (CHAPERONE SUPERVISION)

Monday-March 29, 2010
6:00 a.m.-8:00 a.m. Breakfast
10:00 a.m.-11:00 a.m. SAVE the ARTS Performance @ Whitehouse Lafayette Park
Marching Band/Drumline (Please wear Washington D.C. T-shirts)
11:00 a.m.-5:00 p.m. Six Flags of America (Theme Park)
5:30 p.m.-7:00 p.m. Dinner
7:00 p.m.-11:00 p.m. FREE TIME (CHAPERONE SUPERVISION)

Tuesday, March 30, 2010
7:00 p.m.-9:00 a.m. Breakfast
10:00 a.m.-11:00 a. m Band/Orchestra Perform@ Lincoln Memorial
12:30 p.m.-2:00 p.m. U.S. Capitol Tour
2:00 p.m.-3:00 p.m. LUNCH
3:00 p.m.-6:00 p.m. FREE TIME (CHAPERONE SUPERVISION)
6:00 p.m.-7:00 p.m. DINNER
7:00 p.m 10:00 p.m Pentagon City Mall in Arlington, VA

Wednesday, March 31, 2010
6:00 a.m.-9:00 a.m. BREAKFAST
10:00 a.m.-11:00 a.m. Whitehouse Tour/ SAVE THE ARTS Demonstration @1600
Pennsylvania Avenue
11:00 a.m.- Depart Washington D.C.
Parents will be called 1-hour prior to Arrival (please note Schedule is subject to change)

CITY OF HALLANDALE PALMS CENTER

SAVE THE ARTS PROJECT GOES TO WASHINGTON D.C.
Written by Stewart Rabin
When Dr. Deborah Brown stepped off the charter bus last Thursday she knew she had just logged over
2,000 miles in just under a week and the 48 youngsters from the Hallandale Palms Center for the Arts
and additional chaperones would follow her off the bus feeling weary but filled with a huge sense of
accomplishment.
The Palm Center for the Arts Zamar Marching Band, string orchestra and jazz band had been in
Washington D.C. to perform at the WORLD WAR ll Memorial, The Lincoln Memorial and to stage a
SAVE the ARTS protest march In Lafayette Park right in front of the White House. "The Band marched
from the park up to the White House gate" said Stewart Rabin one of the directors of the Center. The
Students played all over the city and took in some sightseeing along the way.
All of the kids toured the U.S. Capitol building where the youth were fortunate to see President
Barack Obama and then they walked over to Congressman Kendrick Meek's office, where they all
squeezed in for a very interesting talk with one of his staff members. Congressman Meek was back with
his constituents just after the marathon health bill vote. "These children should be proud of themselves"
said the Rev. Josh Brown and Bishop Glenn Adderley who traveled with the youth. "They travelled all
across the country and put Broward County and the City of Hallandale Beach on the national level" he
said, "there were scores of people watching the band march right down the sidewalk of the White House,
with White House Secret Service officers watching in admiration" The youth were very grateful to the
following sponsors; City of Hallandale Beach, Jan Hansen & Gulfstream Park Casino, Terry Dillard &
People for Change, Higher Vision Ministries, Samaritan Christian Center and to all the community Friends
of the Arts and partners, without your support this lifetime experience would not have been possible.
Palms Center for the Arts
501 N.W. 1
st
Avenue
(954)456-9611 or (954) 288-5443
Palmscenter4arts@yahoo.com
www.palmscenter4arts.org
ATTACHMENT 3

Palms Center for the Arts & Hallandale Teen Center
YOUTH TURNS MUSIC INTO GOVERNMENT
FUTURE LEADERS in GOVERNMENT TAKE THEIR PLACES AT THE STATE
CAPITOL IN TALLAHASSEE, FLORIDA
The Palms Center For the Arts and Hallandale Teen Center turns Music into Government on Friday, October 23, 2009 in
Tallahassee, Florida. Approximately 50 inner city youth marched up the steps of the State Capitol and took their
designated places in tall Blue executive House of Representative chairs and participated in an hour and half long Mock
Legislative session debating on an alternative to FCAT, which was set up by State Representative Joe Gibbons and
Executive Administrator, Carlos Simmons. Participating in the mock session was an exciting and wonderful way for the
youth to learn about the legislative process and how government works. Youth also participated in a Tour of the State
apitol, FSU/F!MU ampus, and the Governors Mansion. The weekend concluded with a performance by the Palms
enter Marching Loins during the Florida A & M University Homecoming Parade and Band Fest. Thanks to the City of
Hallandale Beach, Barbara Southwick, Rebecca Munden & the Parks and Recreation Board and Community Leaders for
your support.
I
Jonathan Goldsbrough SAYS HE IS PREPARING TO BE THE NEXT President, this trip at the capitol has given me the
confidence I needed says Jonathan.(Age 12) front right
Alexis James (standing in back)
Debates with student Ishmael Bougoaneau (right) on an Alternative to FCAT
Jovaughn Ballintine (13) expresses Audrieana Brown (right) and Darryl Dajha Allen (age10)smiles with
His concerns that FCAT Should not Johnson (left) in deep thought excitement, says she is the future
determine ones educational leader in government.
success.

Florida House of Representatives Vincent Strickland (17) expresses his Lashaun Edwards (age10) says her
Concerns, says he has been inspired first trip to the State Capitol was fun!
To learn more about our government.
Palms Center for the Arts Music Students turns into House Representatives
Rev Josh Brown, Community Liaison (kneeling left)
Hallandale Beach Teens directed by Mr. Von Thomas is working to assure we have future leaders being prepared to take
their places in government.
Hallandale Beach Teen Center
Future Leaders of America
Mr. Von Thomas, Director

Mr. Rabin Stewart & Dr. Deborah R. Brown (Directors of ands)
Enjoys the pre-game show
Marching Lions Majorettes & Flagettes do the swag surf
Solid Gold Dancers move the Thamara Santiago(left) Antoria Wallace(center
Homecoming crowd!! Victoria Fitzpatrick (right)
Second row Center dancer Krystal Robinson

Drumline gets ready for pre-game show with the Palms Marching Lions during pre-game show
Marching 100 Vincent Strickland (center snare drummer)
Audrieana Brown (drum major) Straight Ahead with Clarinets Tobi and Amy
Gets the Band in Parade Rest Cedrea Essix, trumpet
LETS GO LIONS
Palms Center For the Arts
501 N.W. 1
st
Avenue
Hallandale Beach, Florida
(954) 456-9611 (954) 288-5443
Palmscenter4arts@yahoo.com
www.palmscenter4arts.com
ATTACHMENT 4

ITS !M!ZINGThe Grand opening of the City of
Hallandale Palms Center For the Arts brings excitement to the
Community
Teacher Lucia Deus leads a theater class in a rehearsal for a song from The Wiz at Palms Center for the Arts, a new
grassroots driven, non profit fine art and performing arts center for children in Hallandale Beach. Deus, a drama
teacher at Flanagan High School turned reading teacher at Coral Springs High, is on the center's staff made up
entirely of Broward school teachers.
Open the doors of the Palms Center, and you'll find big sounds, huge moves,
conservative colors and elegant Art Gallery and Gift Shop featuring projects of local, state and
national artist with a corridor of student art-at-work projects.

`Ìf you drive or walk down this street, you would never expect to see what goes on in here,'' said
music teacher and assistant director Stewart Rabin. `Ìt's just amazing.''
``Here'' is Palm Center for the Arts, a nonprofit, grass-roots-led arts school.
Rabin is part of the staff -- Broward school teachers dedicated to bringing creative and performing
arts to neighborhood kids.
The school was opened June 8 by Deborah Brown, Stewart Rabin, music directors and, the Rev.
Josh Brown. The arts center will offer after-school and weekend classes when school resumes Aug.
24.
The Browns grew up in the same Hallandale Beach neighborhood and agree that the performing
arts school is a dream come true.
``We've been trying to make this happen for 10 or 15 years, while we were kids growing up we
always wanted to see a cultural venue in our neighborhood,'' said Deborah Brown, who is a 23 year
veteran teacher. Commissioner Dottie Ross says, during the Brand New Day from the Wiz by Palm
Center, I watched in amazement when the witch disappeared, what awesome hard work and
imagination, it was simply awesome, Barbara Southwick Hallandale Parks and Recreation Chair and
Commissioner Anthony Sanders agreed the youth gave a great show. Mary Lil Thompson,
longtime Hallandale resident felt emotional joy during the Michael Jackson King of Pops Dance
Tribute, says, it was a great presentation, this is what we need in our community.
Brown also founded Collins Elementary's first student orchestra, jazz band and drumline and
McNicol Middle School's first marching band.
Josh Brown, who serves as the art school's community liaison, said his interest is keeping children
involved in wholesome, educational and creative activities.

``Kids here are from the surrounding neighborhoods. They come and don't want to leave The Arts
Center have become a Safe Haven for them - they discover talent they never knew they had.''
The school is funded through a partnership with the city of Hallandale, with grants from the Hallandale
Beach Future Foundation, Inc. and with a $50 registration fee from each child. Scholarships and
discounts are available for low income children.
Wednesday, August 19, 2009-Palms Center made presentations to the City of Hallandale Beach, Mayor
Cooper and Future Foundation and City Manager D. Mike Good for their support and partnership.
The City Commissioners: Mayor Joy Cooper, Vice-Mayor Bill Julian, Anthony Sanders, Dotty Ross, Keith London
overwhelmingly agreed that the Palms Center Arts program is very much needed in our community. Mayor
Cooper and Vice Mayor Bill Julian demonstrated their support by purchasing the art and graphic designs by Andre
Woode, Calvin Burton, Dandre Harris, Justin Lopez, Frankie Dunlap who are apprentice artist in the arts-at-work
program that will be paid hourly to work on projects. Robert Mobley, 11, and Calvin Burton, 15, says, the program
help to keep us out of trouble, Burton says, Im on the right road now, I feel good about myself.
Up to 50 kids and 15 teachers transition hour to hour in each of the five rooms.
Art supplies spill on a table for drawing under the direction of Stacy Shugerman of Hallandale, an art teacher at
Sunrise Middle School in Fort Lauderdale. Graphic Design & Computer Technology, directed by Kevin Tracey,
Graphics Arts teacher at Boyd Anderson High School in Ft. Lauderdale
Sharquila Mitchell, 14, said she has the most fun trying different art forms.
`Ì get to put myself to the challenge of learning new things,'' Sharquila said.
So far, she has played the viola and the trumpet and she has tested her feet on hip-hop, jazz and ballet
dance.
Kids kick their heels to lively music with help from Lucia Deus of Pembroke Pines, a former drama
teacher at Charles W. Flanagan High and now a reading coach at Coral Springs High.

African djembe drums directed by Cassandra James, Dania Beach, line a hallway that leads to a room
packed with a drummer and eight kids with horns pursed to their lips -- a jazz band led by Rabin, who is
the band director at Hollywood's McNicol Middle.
In minutes, jazz band members take to their feet and head out the door toward a practice field with
marching instructor Glenn Phillips of Miramar, who is also the music teacher at North Lauderdale
Elementary School.
Two pianos and two keyboards flank five violin students sweetly bowing gentle sounds under the direction
of Marcella Edward of Hollywood, a teacher at Florida Atlantic University.
``We are transforming lives through the arts,'' Brown said. ``Some of our kids may struggle academically,
but music and arts open their minds intellectually to other disciplines, to their talents. It inspires them and
give them a sense of pride and self worth.
Marc Jeannott,10, plays the trombone in the Palms Center for the Arts marching band.
Marc Jeannot, thinks the school is music heaven.
`Èvery day is a fun opportunity to play music. I played cello, tenor drum, trombone, African drums, drum sets and
piano and I'm not done yet,'' Marc said.
For more information about Palm Center for the Arts, 501 NW First Ave., Hallandale Beach, call 954-456-9611 or
954-288-5443.website: palmscenter4arts.org
ATTACHMENT 5


Creative Arts Academy
Job training through arts education
Dr. Deborah R. Brown, Program Director/Instructor
Rev. Josh Brown, Program Manager
The yearround program operates for three 12 weeks sessions during the year. Classes are held at the Palms
Cultural Arts Center, Hallandale Beach, Florida between the hours of 9 a.m. and 6:00 p.m. The students also
participate in two-day overnight visits to college campuses. The summer program focuses on youth
leadership/development and career planning. Students receive hands on experience/training at local businesses
and art schools.
Our leadership/development services help our students build positive character and obtain life/survival skills not
provided through the regular high school system curriculum. This program consists of workshops and events
geared toward developing leadership skills in our students. Workshop subjects and events cover:
Week 1
Interviewing Skills
Time Management Skills
Week 2
Stress Management
Conflict Resolution
Week 3
Effective Communication Skills
Week 4
Working in Teams
Week 5
Public Speaking
Week 6
Personal Finance (for Teens)
Week 7
Entrepreneurship Intro: Writing and delivering an effective business plan to sell a product or service
Week 8
Participation in cultural events and community service projects
Week 9
Personality Types Analysis
Embracing Diversity
Week 10
Entrepreneurship Introduction
Week 11
Introduction to Project Management

Week 12
Career Planning
The purpose of the career planning services is to expose our students to traditional and non-traditional careers.
The goal is to assist them in choosing a career path and selecting the right major in school that fit their career
goals. Services include:
Day trips to various companies to research options
Visits from professionals from various industries who will speak on their chosen careers
Campus Visits
The campus visit helps students to experience life on a college campus. Students live/visit on campus for two-
five days and participate in the following activities:
College planning workshop overviews
Team building projects
Campus tours and information
Visit college classes
Campus Parties
Workshops
Prepare for Success - Interviewing, Resume Writing, Job Search, Image
SAT/ACT Prep
Anger Management
Conflict Resolution
Entrepreneurship - Creating & Planning a Business
Transitioning from High School to College
Transitioning from Middle School to High School
Public Speaking & Debate
Relationships & Respect
Teen Summit (Behavior) - Why do Men, Why do Women
College Analysis & Preparation
College Tours
Georgia State University
Jacksonville University
Duke University, Shaw University
North Carolina A&T
UNC Chapel Hill
Spelman College
Morehouse College
University of North Florida
Clark Atlanta University
Johnson C. Smith University
North Carolina Central\
Full Sail University
ATTACHMENT 6
Community School Partnership
ATTACHMENT 7

EXHIBIT E
Agency Name: PALMS CENTER FOR THE ARTS
Reporting Period: 4
TH
Quarter- July 1
st
-September 30
th
, 2012 Date Report Due: October 15, 2012
A. Project Information:
Project Name
ART AT WORK JOB TRAINING PROGRAM
Person Preparing
Dr. Deborah Brown, Director Phone #
(954) 288-5443
Project Start-Up
Date
October 1, 2011
Number of
participants served
during this period
Hallandale Beach
Residents
____40_______
Non- Hallandale Beach
Residents __-10-____
Participant Status to
Date
Active
45
Terminations: ___-5-__
Successful ____45___
Project Completion
Date September 30
th
, 2012
Number Served 50
Amended
Completion Date
(if applicable)
N/A
B. Project Cost
Total Project $ 50,000 Funds Percentage
Cost Expended to
Date
City Funding $ 50,000 $50,000.00 100 %
Other Funding
(other sources )
$ -0- $ %
Page 1 of 5

PALMS CENTER FOR THE ARTS CREATIVE ARTS ACADEMY
Art-at-Work Job Training in Arts Education
REPORT SUMMARY
July 1
st
-September 30
th
, 2012
The Palms Center programs will like to thank Mayor Joy Cooper, Vice -Mayor Sanders, Commissioners, Dr. Alvin
Jackson, Mrs. Marian Collie for your support and continual insights on making this the greatest program for our
youth and young adults.
July 2012- Creative Arts Academy Job training program Registration continues for the Summer Session. The students continue to
develop/complete their project plans in Art, Recording Engineer, Film/Video Production, Graphic Design & Website Development
and Music Performance.
Job Placement-
10 Arts-at-work students were placed on jobs.
5-students served as interims at area recording studios.
10-Students completed Art Projects.
6-students served as student teacher assistance
August 2012-Arts-at-work students are studying a curriculum based program in Art/Graphic Design, Recording Engineer, and
Film/Video Production and Music Performance.
Community Outreach The Creative Arts Students begin designing the Mural that will be displayed at the New Foster Park
Community Center. Designed by Christopher Drayton, Brianna Nargiso, Jonathan Daniels, Jessicca Daniels, Edward Dawkins,
Jeremiah Dawkins, Lekendric Hall, Jamal Gary.
Business Leadership Worlshop-3- Entrepreneurship Intro: Writing and delivering an effective business plan to sell a product or
service
September 2012-
The Arts-at-work Art Design students begin drawing and painting the African and Caribbean Mural in the Library at the Foster Park
Community Center. .
September 29
th
, 2012- Art-at-Work students participated in the Grand Opening of the New Foster Park Community Center as they
gave a brief tour/description of the Mural that will be erected in the library. Other Art performances included the Jazz Band,
Hallandale Beach Youth Orchestra and the African Dance and Drumming group.
The Creative Arts students continued to complete their Career /college planning projects. The following students are presently
attending college: Elmon Walters, Michael Hibbert-Full Sail University(Orlando, Fl), Audrienna Brown (Florida Career College)
Deron Henry-Lee University(Cleveland Tenn), Julian Santopolo- FIU (Miami, Fl) Lynece Henry-Alabama A&M Univ(Huntsville AL),
Christopher Drayton-Broward College(Davie, Fl), Ryan King-Florida A&M University (Tallahassee, Fl),
Daniel Morishita-Hormer-University of Florida (Gainesville), Mikhail Maragh, Sheldon Maragh-Florida Atlantic University(Boca Fl)
All curriculum assignments Pre-Test /Post Test were completed in preparation for the Second Annual Awards Ceremony and
Graduation.
One Drop Studios & New Generation Music Production served 8 clients and completed 2 music presentations by students Leonerist
James, Deron Henry and Vincent Strickland, Christopher Drayton, Michael Hibbert and Elmon Walters, Jonathan Daniels, Izaiyah
Simonette, Imeal Gaylord, Fatimah Cruell, Brianna Nargiso, Jessica Daniels, Cordashia ONeal
As a result of the City of Hallandale Funding and Partnership, over 40 young people between the ages of 14-25 gather in the evening
weekly. The Palms Center and recording studio is a second home to many. It is a safe haven as well as an alternative preventative
activity, for others.
Page 2 of 5

REPORT SUMMARY
October 1-December 30, 2011
The Palms Center programs will like to thank Mayor Joy Cooper, Vice -Mayor Sanders, Commissioners, Dr. Alvin Jackson,
Mrs. Marian Collie for your support and continual insights on making this the greatest program for our youth and young
adults.
The Program Art-at-Work, is a hands on arts, computer tech, commercial music production, film and graphic design
program designed to provide youth with career training and valuable job skills while offering the youth an opportunity
to earn income. Upon successfully completion of the program students will receive a certificate of completion from an
accredited university.
OCTOBER 2011-The program begin by collaborating with the guidance director Mrs. Lezette Johnson at Hallandale High
School. Mrs. Johnson incited community churches and community organizations to recommend/register students for
the program. Ten students were registered from Hallandale High School increasing a total of 25 participates from the
City of Hallandale and Hallandale High School. The students begin constructing their project plans in Art, Recording
Engineer, Film, Graphic Design & Website Development
Community Outreach-Due to the budget cuts in music in the public schools, Palms program and the City of Hallandale
funding has bridge that gap of limited funds to provide music programs in our schools. Palms Center has adopted
Gulfstream Middle School to continue to offer exciting music programs. Palms has organized Gulfstream Middle School
String Orchestra of 15 talented students; who took the stage in December 2011 as they presented their first holiday
concert directed by, Russian Violinist Eddi Shraybman from the Hallandale Pops Orchestra. The Hallandale Youth
Orchestra also participated. This was an exciting evening supported by family, friends, teachers and Vice Mayor Sanders,
ommissioner Dottie Ross and arbara Southwick. The talent of Gulfstreams youth was so commendable, it yield an
invitation to participate in the School Board of Broward County All County Honors Orchestra to perform with over 200
violinists from across the county.
NOVEMBER 2011- The Art-at-Work students completed their Program Orientation, Participation survey, Music
Knowledge Pre-test and Art Knowledge Pre-Test. Six of the -Arts-at-Work students was instrumental in beautifying the
facility by cleaning, painting and decorating.
DECEMBER 2011-In 2010 under the direction of Mr. Stewart Rabin, the first youth run recording studio in the City of
Hallandale Beach was birth and opened to the public.
December was an exciting month for the Recording Engineer students as the Center up-graded to the State of the Art
recording studio equipment and piano/drum lab. It is a great sight to see young men entering the center each morning
from 10 a.m. to 9 p.m. creating and composing their music as well as serving as engineers for other professional artists.
The recording engineer students are inspiring local artist to explore their creativity from mix tapes to Demos, Tracks, and
music and film production.
The talented young men of Hallandale Beach, Vincent Strickland, Elmon Walters, Anthony Sanders, Leonerist James and
Christopher Drayton established their own Music production Business titled New Generation Music Productions and
One Drop Studios, where they have serviced 15 projects including New Generation takeover Rap CD, and 1-Instrumental
CD. Their Organization has signed a contract with a local artist. They are on their way to establishing a successful
business that will create income and job opportunities.
As a result of the City of Hallandale Funding and Partnership, over 30 young people between the ages of 14-25 gather in
the evening weekly. The Palms Center and recording studio is a second home to many. It is a safe haven as well as an
alternative preventative activity, for others.
Page 3 of 5

REPORT SUMMARY
January 1
st
-March 30
th
, 2012
JANUARY 2012-The program continues to collaborate with the guidance director Mrs. Lezette Johnson at Hallandale
High School. With the recommendations of community organizations and local schools the enrollment has increased to
30 participates. The students continue to develop their project plans in Art, Recording Engineer, Film, and Graphic
Design & Website Development. The recording Engineer Class released their 2
nd
CD which was displayed during the
Martin Luther King Parade.
String Orchestra of 15 talented students- The talent of Gulfstreams youth was so commendable, it yield an invitation
to participate in the School Board of Broward County All County Honors Orchestra to perform with over 200 violinists
from across the county. Students from Gulfstream Middle participated in four All county Orchestra rehearsals held at
Tarravella High School, Coral Springs, Fla. The students then participated in a String Orchestra Workshop with over 288
violinists across the county which ended up with an evening performance for parents, family, friends and Broward
County School Board Officials. What an exited evening for our students!
FEBRUARY 2012- The Art-at-Work students completed their Program Orientation, Participation survey, Music
Knowledge Pre-test and Art Knowledge Pre-Test.
Arts-at-work students are studying a curriculum based program in Graphic Design, Recording Engineer, and Film/Video
Production.
In honor of Black History Month Art students displayed art work of Barack Obama, Dr, Martin Luther King, Alicia Keys
and Michael Jackson.
2-Day Orlando Trip to Full sail University
Full sail University is the Nations number one ommercial Music and Graphic !rt schools. Palms enter has partnered
with the Full sail University to assure continued higher education for the students that participates in the Art-at-work
program. Palms Center Art-at-work students and staff participated in an exciting full day orientation, tour and training.
MARCH 2012-
Arts-at-work Program presented its Annual Salute to heritage of Gospel Music Concert at Hallandale High School was a
huge success. This Concert was a benefit to continue the Arts-at-work Job training program. Over 500 Hallandale
residents, family, friends and City Official attended this event. Thanks to Mayor Joy Cooper, Vice-Mayor Anthony
Sanders, Commissioner Dottie Ross, Dr. Alvin Jackson, Principal Eckhart, Hallandale High staff and Community Pastors
for your support.
The Film/Video student Elmon Walters completed and presented his first movie presentation on March 5, 2012
One Drop Studios & New Generation Music Production served 10 clients and completed 5 music presentations by
students Leonerist James, Deron Henry and Vincent Strickland
Page 4 of 5

PALMS CENTER FOR THE ARTS CREATIVE ARTS ACADEMY
REPORT SUMMARY
April 1
st
-June 30
th
, 2012
April 2012- Creative Arts Academy Job training program Registration begins for the Summer Session. The program continues to
collaborate with the guidance director Mrs. Lezette Johnson at Hallandale High School and Principal Brian Kingsley at Gulfstream
Middle School. With the recommendations of community organizations and local schools the enrollment has increased to 45
participates. The students continue to develop/complete their project plans in Art, Recording Engineer, Film/Video Production,
Graphic Design & Website Development and Music Performance.
2-Day Orlando Trip to Full sail University
Palms Center has partnered with the Full sail University to assure continued higher education for the students that participates in
the Creative Arts Academy Art-at-work program. Palms Center Art-at-work students and staff participated in an exciting full day
orientation, tour and training. CONGRATLULATIONS! The following students applied and were accepted to begin classes in the
Bachelor of Arts program at Full Sail University. Students are Elmon Walters, Michael Hibbert, Leonerist James and Vincent
Strickland.
M ay 2012-Arts-at-work students are studying a curriculum based program in Graphic Design, Recording Engineer, and Film/Video
Production and Music Performance.
Community Outreach May 31, 2012- Palms Center has adopted Gulfstream Middle School to continue to offer exciting music
programs. Palms Center has organized Gulfstream Middle School String Orchestra of 15 talented students; the school year ended
with an exciting !wards eremony at Gulfstream Middle In recognition of students who participated in this years orchestra
program. Broward County All County Orchestra awards were given to 5-orchestra members namely; Saiah Gunter, Ferrell Francique,
Glenisha Daniels, Fatimah Cruell, and Daniel Rosenau.
Miramar Elementary Career Day May 23-Art-at-work students Audrieanna Brown and Vincent Strickland conducted a 2-hour
presentation on the various music careers, introduction of various musical instruments and a recording studio session with the
students of Miramar Elementary School
June 2012- Registration begins for the Sumer Session
June 18- The Arts-at-work students was given a guided tour by Mayor Cooper and Officer Roberts at the City Hall and Police
Department. A Mock Session was conducted in the chambers with students portraying city of Hallandale Commissioners and
debating The Importance of reating more jobs for Youth. The students were informed of the various jobs within the city by Marc
Antonio and Dr. Alvin Jackson hosted by Peter Dobens public relations director.
In honor of Black Music Month, Art students displayed art work of Alicia Keys, Michael Jackson and other artist who have made
great contributions to music. The art display can be seen in the Art Gallery at the Palms Center.
June 22, 2012- Statesboro, Ga, Trip- The Creative Arts Academy and Art-at-Work Students performed in concert in honor of Black
music month for the Statesboro, Georgia Gospel Heritage Fellowship. The students also enjoyed an Agriculture experience, Farm
Crop picking Day where they brought back over 25 watermelons, peas, corn etc.
June 25- The Creative Arts students attended and participated in a Career planning and job training Workshop at the Broward
County Library, Ft. Lauderdale, Fl. Students begins to complete their resume and job interest survey.
One Drop Studios & New Generation Music Production served 5 clients and completed 3 music presentations by students Leonerist
James, Deron Henry and Vincent Strickland, Christopher Drayton, Michael Hibbert and Elmon Walters
As a result of the City of Hallandale Funding and Partnership, over 40 young people between the ages of 14-25 gather in the evening
weekly. The Palms Center and recording studio is a second home to many. It is a safe haven as well as an alternative preventative
activity, for others.
Page 5 of 5
ATTACHMENT 8
.,
EXHIBIT E
Reporting Period: 1st Quarter- October 1-December 30, 2011 Date Report Due: _____
A P . tl f f
roJec norma 1on:
Project Name
Person Preparing
Charlotte Moore, Program Manager J Phone#
(954) 456-9611
Project Start-Up
Date
October 1, 2011
Number of
participants served
during this period
Hallandale Beach
Residents
25
Residents
-
-0-__
Date
Active
25
Terminations: _-0
-
Successful 25
Project Completion
Date December 30, 2011
Number Served
Amended
Completion Date
(if applicable)
B. Project Cost
Total Project
Cost
$50,000 Funds
Expended to
Date
Percentage
City Funding $ 50,000 $16, 623.64 31%
Other Funding
(other sources)
$ -0 $ %
ZO : ~ Hd +1 181:l ZIOZ
l.'- t. '
1
1
. LO ( J
Page 11 of 12 .. , ! i ! ~ " "
1 I
I b l '
Expenditures
October 1-December 2011
ITEM Amount In-kind Justification
Personnel $8,685.00 Arts-at-Work Program- 4 instructors/ 1- Program
Coordinator
Students will be exposed to a variety of art forms such
as two/three dimensional design, techniques in literary
and visual arts, photography, computer technology,
graphic design, Dance, Drama/Theatre, Music
Sound Recording Engineer Studio-1 instructor
Students will have hands on experience using recording
software with midi and real instrument capabilities.
Students will learn how to prepare for a session, record,
mix, and edit their own creations as well as playing on
their recordings. This studio is operated by the youth.
Upon Completion youth will receive a certificate
Adopt a School Music Program-provides
instruction to public school and afterschool
programs that limit funding. We offer music /art
ram to Gulstream Middle, He burn Center
Supplies $1,200.00 Computer Software, CD, DVR, computer/music
accessories, recording software
Equipment $6,738.64 2-Computers Mac-Book, 2-USB Microphone,
2-USB piano, headphones, cable,
2-s
TOTAL
TOTAL 16,623.64 Total Expenditures: $16,623.64
Page 8 of 12
REPORT SUMMARY
October 1-December 30, 2011
The Palms Center programs will like to thank Mayor Joy Cooper, Vice -Mayor Sanders, Commissioners, Or. Alvin Jackson,
Mrs. Marian Collie for your support and continual insights on making thi s the greatest program for our youth and young
adults.
The Program Art-at-Work, is a hands on arts, computer tech, commercial music production, film and graphic design
OCTOBER 2011-The program begin by collaborating with the guidance director Mrs. Lezette Johnson at Hallandale High
Commissioner Dottie Ross and Barbara Southwick. The talent of Gulfstream's youth was so commendable, it yield an
NOVEMBER 2011- The Art-at-Work students completed their Program Orientation, Participation survey, Music
Knowledge Pre-test and Art Knowledge Pre-Test. Six of the -Arts-at-Work students was instrumental in beautifying the
DECEMBER 2011-ln 2010 under the direction of Mr. Stewart Rabin, the first youth run recording studio in the City of
December was an exciting month for the Recording Engineer students as the Center up-graded to the State of the Art
The recording engineer students are inspiring local artist to explore their creativity from mix t apes to Demos, Tracks, and
The tal ented young men of Hallandale Beach, Vincent Strickland, Elmon Walters, Anthony Sanders, Leoneri st James and
Christopher Drayton established their own Music production Business titled" New Generation Music Productions" and
One Drop Studios, where they have serviced 15 projects including New Generation takeover Rap CD, and 1-lnstrumental
Page 12 of 12
Community School Partnership
ATTACHMENT 9

Community Partnership Grants
FY2011-2012
Grant Agreement
This Participation Agreement (the Agreement) is entered into by and between the City of Hallandale
Beach/Community Redevelopment Agency (City or Grantor), and Palms Center for the Arts, Inc. (Grantee) this
__31_ day of __October__2011_______.
WHEREAS, Grantee The City of Hallandale Beach and Community Redevelopment Agency (City)
through the 2011-2012 Fiscal Year Budget has grant funds to support Community Partnership programs and
services that will benefit the residents of Hallandale Beach; and
WHEREAS, The intent of this funding is to allocate resources to individuals, schools or community
based organizations that support meaningful community service projects and service learning opportunities;
and
WHEREAS, Funding shall be used to further the goals of the Community Redevelopment Agency in the
elimination of slum and blight.
NOW, THEREFORE, the parties hereby agree as follows:
1. Program Description/Deliverables and Project Execution
Grantee shall complete all work in accordance with an approved Work Plan which will be included in this
Agreement as Exhibit A Project Schedule/Deliverables, Exhibit B Budget, and Exhibit C Program
Description. Grantee agrees to submit in writing, any deviation from the attached Work Plan to the City for
approval prior to the implementation of changes.
The City of Hallandale Beach hereby grants to Grantee a Community Partnership Grant in an amount not to
exceed $ 50,000.00 in consideration of and on condition that the sum be expended in carrying out the purpose
as set forth in the Work Plan and under the terms and conditions set forth in this Agreement. Grantee agrees
to assume any obligation to furnish any additional funds that may be necessary to complete the project.
2. Payment , Reporting, and Training Requirements
All payment requests must be submitted by the Grantee using the completed Payment Request, attached as
Exhibit D.
Grantee ensures that the Agreement requirements are met through completion of a Quarterly Progress Report
adhering to the following schedule: (Exhibit E for Quarterly Progress report Form)
1
st
Quarter October through December Due J anuary 15
2
nd
Quarter J anuary through March Due April 15
3
rd
Quarter April through J une Due J uly 15
4
th
Quarter J uly through September Due October 15
If the Grantees Work Plan is completed prior to the full fiscal year and all grant funds have been expended, a
final report is due the quarter following completion of said Work Plan and no further reporting is required.
The City reserves the right to require reports more frequently than on a quarterly basis if necessary, but no
more than once a month.
Page 1 of 12

Grantee is required to attend quarterly workshops sponsored by the City. Date and time of said workshops are
to be determined.
3. Project Withdrawal
If Grantee wishes to withdraw a Project, Grantee shall notify the City of this right pursuant to the Notices
provision below.
In the event an approved project cannot be completed, and if Grant Amount was advanced, those funds, plus
any accrued interest, must be returned to the City.
4. Documentation and Recordkeeping
Grantee shall maintain all records related to performance of this agreement and agrees to maintain satisfactory
financial accounts, documents and records for the Project. Such records shall be available for a period of
three years from the date of receipt of final payment under the Agreement, for inspection and audit by
representatives of the City, at any reasonable time and place. If audit findings have not been resolved, the
records must be retained beyond the three-year period as long as required for the resolution of the issue raised
by the audit.
5. Promotion of Program Services
Grantee agrees to promote the City if applicable when marketing, website, media opportunities, etc. The
Grantee further agrees to assist the City in making a strong case for Community partnerships by providing
timely, accurate data and reporting as requested regarding social service needs.
6. Termination
This Agreement shall be terminated upon the occurrence of:
(1) Breach of his Agreement by the Grantee;
(2) Written notice from the City to the Grantee to terminate the services under this Agreement, which
notice may be given in the sole discretion of the City and without cause; or
(3) Upon receipt by City of written notice from the Grantee of Grantees intent to terminate this
Agreement.
Notice of termination shall be provided in accordance with the NOTICES" section of this Agreement except that
notice of termination by the CITY Manager, which the CITY Manager deems necessary to protect the public
health, safety, or welfare may be verbal notice that shall be promptly confirmed in writing in accordance with the
"NOTICES" section of this Agreement.
7. Assignment
Neither this Agreement nor any right or obligation provided for by this Agreement shall be assigned by the
Grantee without the consent of the City.
8. Charitable Purpose
Activities under this Agreement will not be used for the purpose of profit.
Page 2 of 12

__________________________
__________________________
__________________________

9. Grant Application Incorporation
The Grant Application and any subsequent change or addition approved in writing by the City is hereby
incorporated in this Agreement as though set forth in full in this Agreement. This Agreement may only be
amended upon the written agreement of both the City and the Grantee.
10. Governing Law
This Agreement shall be governed by the laws of State of Florida and of Broward County, Florida. Any action
for breach, enforcement, interpretation, or arising out this Agreement shall be brought only in the Circuit Court
of the Seventeenth J udicial Circuit in and for Broward County, and the parties agree to submit to the
jurisdiction of that Court.
11. Indemnification
Each party assumes responsibility for the negligence of its own respective employees, appointees, or agents;
and, in the event of any claims for damages or lawsuits for any remedy, each party will defend its own
respective employees, appointees, or agents.
To the fullest extent permitted by law, the GRANTEE agrees to indemnify
and hold-harmless the City, its officers and employees from any claims, liabilities, damages, losses, and costs,
including, but not limited to, reasonable attorney fees to the extent caused, in whole or in part, of the
CONSULTANT or persons employed or utilized by the CONSULTANT in performance of the Agreement.
12. Notices
All notices provided for or required under this Agreement shall be made by certified mail, return receipt
requested to the addresses set forth below:
City of Hallandale Beach:
City Manager
With Copy to:
Marian McCann-Colliee
Attn: Community Partnership Grants
750 NW 8
th
Avenue
Grantee:
Page 3 of 12

13. Contingencies
Both City and the Grantee recognize that there exists the possibility of contingent events which may adversely
impact the Grantees ability to provide services as provided for under this and other agreements with other
Grantees, including without limitation, the failure of contributors to remit funds pledged. In the event that any
such contingencies should develop or occur, the City shall have the right to reduce the amount of funds,
suspend the services until conditions change or terminate this agreement and be relieved of its obligation to
deliver according to this agreement.
14. Compliance
Grantee shall comply with all applicable federal, state, and local laws, codes, ordinances, rules, and regulations in
performing its duties, responsibilities, and obligations pursuant to this Agreement.
15. Representation of Authority
Each individual executing this Agreement on behalf of a party hereto hereby represents and warrants that he or
she is, on the date he or she signs this Agreement, duly authorized by all necessary and appropriate action to
execute this Agreement on behalf of such party and does so with full legal authority.
16. Multiple Originals
Multiple copies of this Agreement may be executed by all parties, each of which, bearing original signatures, shall
have the force and effect of an original document.
[Execution on Next Page]
Page 4 of 12

___________________________

_________________________

________________________

IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the respective dates under each
signature: CITY OF HALLANDALE BEACH through its authorization to execute same by Commission action on the 14th,
day of July, 2011, and _____________________, signing by and through its ________________duly authorized to execute
same.
ATTEST:
CITY CLERK
Approved as to legal sufficiency and form by
CITY ATTORNEY
CITY ATTORNEY
Risk Management Division
RISK MANAGER
CITY
By _______________________ Date: _________
CRA
By __________________________ Date: ______
Alvin B. J ackson, J r., CRA Director
[EXECUTION CONTINUED ON NEXT PAGE]
Page 5 of 12

__________________________________

________________________ __________________________

________________________

GRANTEE MUST EXECUTE THIS AGREEMENT AS INDICATED BELOW. USE CORPORATION OR
NONCORPORATION FORMAT, AS APPLICABLE.
GRANTEE
ATTEST: _______________________________
(Name of Corporation)
________________________ By ____________________________ Date: ___________
(Secretary) (Signature and Title)
(Corporate Seal)
(Type Name and Title Signed Above)
____ Day of _______, 20___.
(If not incorporated sign below).
CONSULTANT
WITNESSES:
(PRINT NAME) (PRESIDENT OR VICE-PRESIDENT)
(PRINT NAME)
NOTARY SEAL
Page 6 of 12

Exhibit A
Project Schedule/Timeline Table
(Deliverables)
The table below lists the main work tasks and deliverables required to complete project objectives in order to meet the
requirement of the agreement.
Work Task Start-Up Date Date of Completion
Funds Required
1. Music and Art J ob Training
Classes
Student Recruitment
Marketing/Outreach
Flyers, Brochures,
Applications
Disseminate Information
via email, church, school,
etc.
Purchase of Supplies/Equipment
October 1, 2011 December 1, 2011
8,333.00
14,000.00
Hiring of Instructional Staff
25 students
October 1, 2011 September 30, 2012
23,000.00
2. J ob Placement
Returning Art-at-work
students
New enrolling students
October 1, 2011
November 1, 2011
September 30, 2012
4. Quarterly Job Training and
Entrepreneur Workshops for
Students
October
J anuary
March
J une
J une 30, 2012
1,500.00
5. Adopt a School Music
Program.
Hepburn Center/
Gulfstream Middle
October 1, 2011 J une 1, 2012
3,000.00
6.
Entrepreneur Conference
Quarterly Workshops by CRA
Department
October 1, 2011
J une 30, 2011
September 30, 2011
7. Total Project Completion September 30, 2012
50,000.00
Page 7 of 12

Exhibit B
Budget
ITEM
Personnel
Consultants 1,500.00
Supplies 2,500
Equipment 5,500
Outreach/Promotions 3,500
Amount
37,000.00
Inkind
3Volunteers
Justification
ArtsatWork Program 4 instructors/ 1Program
Manager, 1 Program Coordinator
Sound Recording Engineer Studio1 instructor
their recordings. This studio is operated by the youth
Adopt a School Music Programprovides
program to Gulstream Middle, Hepburn Center
Quarterly Workshop The program will also
provide instruction in the areas of career planning,
job retention, job advancement, Entrepreneur and
Job placement
1. Production props/ Costumes
Arts Supplies, Graphic art supplies, Computer
Software, CD, DVR, computer/music accessories,
recording software
3Computers /software, MacBook, 3USB
Microphone, 3USB piano, headphones, cable,
speaker monitors, pianos, drums
Jazz/Latin Caf, Music & Arts Festivals, Quarterly
Arts Walk & Art Shows, Aerobics, Jazzercise, Art
Techniques,
TOTAL
TOTAL 50,000 5,000 BUDGET: ______55,000_____
Page 8 of 12

Exhibit C
Program Description
(To be provided by Grantee)
Artat Work, arts education and job training program, in partnership with the City of
Hallandale, City of Hallandale Police Department and Broward County Juvenile Court. The
program is designed to prevent 1422 year old youth/young adults who have been identified
by the court as truant from becoming more deeply involved in the juvenile justice system.
Professional artist provide youth with sequential computer technology, Graphic Design, art,
music, recording engineer instruction. Program participants gain job skills and learn about the
business and entrepreneurial aspects of the arts and how to market their work. Participants
are paid a stipend for their projects and paid $57 an hour up to eight hours a week.
This project is needed to:
To increase economic development through job creation and entrepreneurship
To increase the rate of homeownership and financial stability within families
To increase the City of Hallandale graduation rates through goal oriented mentoring.
To inspire academic achievement by engaging students in the arts and mentoring
programs
To emphasize the positive and productive power of local music citywide
To empower disadvantaged youth through tutoring and collaboration
To foster leadership, respect, selfworth, and individual identity.
To foster an alternative student dropout program.
To establish an alternate program by which NO youth should be allowed to hang out in
the streets during morning and afternoon hours
Purpose: The purpose of Art-at-Work is to: provide young people, ages 14-22, with job
training; to support basic skill development through arts education and application; and to
expose young people to careers in the arts.
Goals: The program goals are to: teach basic job skills and encourage the development of
good work habits; provide sequential arts instruction; raise self esteem through personal self
expression; and introduce youth to professional artists and opportunities in the arts.
J ob Title: Participants in the Art-at-Work program will be referred to as Apprentice Artists.
Page 9 of 12

Type of Pay X Advance ment Reimbursement Final
a. Grant Amount $ 50,000
b. Funds Received to Date 22,333.00
$
$ c. Available Grant Amount (a minus b) 27,667.00
d. Amount Requested 13,833.50
$
e. Balance of Funds after available for this 13,833.50
$
Agreement Amount requested (c minus d)

Exhibit D
Payment Request
Grantee Name: PALMS CENTER FOR THE ARTS
Project Title: ART-AT-WORK PROGRAM
Justification for Requested Amount:
Three months for instructional staffing, Community
Outreach Projects.
Signature:
Print Name: Date
Deborah R. Brown 1-30-2012
FOR CITY USE ONLY
Date Approved by Grants Committee
PAYMENT APPROVAL SIGNATURE DATE
Page 10 of 12

EXHIBIT E
Reporting Period: 1
st
Quarter- October 1-December 30, 2011 Date Report Due: ____________
Project Name
Person Preparing
the Report/ J ob Title
Charlotte Moore, Program Manager Phone #
(954) 456-9611
Project Start-Up
Date
October 1, 2011
Number of
participants served
during this period
Hallandale Beach
Residents
____25________
Residents __-0-____
Date
Active
25
Project Completion
Date December 30, 2011
Number Served
Amended
Completion Date
(if applicable)
B. Project Cost
Total Project
Cost
$ 50,000 Funds
Expended to
Date
Percentage
City Funding $ 50,000 $16, 623.64 33 %
Other Funding
(other sources )
$ -0- $ %
Page 11 of 12

ArtatWork Job Training in Arts Education
REPORT SUMMARY
October 1December 30, 2011
The Palms Center programs will like to thank Mayor J oy Cooper, Vice -Mayor Sanders, Commissioners, Dr. Alvin
J ackson, Mrs. Marian Collie for your support and continual insights on making this the greatest program for our youth and
young adults.
The Program ArtatWork, is a hands on arts, computer tech, commercial music production, film and graphic design
OCTOBER 2011The program begin by collaborating with the guidance director Mrs. Lezette Johnson at Hallandale High
Community OutreachDue to the budget cuts in music in the public schools, Palms program and the City of Hallandale
Commissioner Dottie Ross and Barbara Southwick. The talent of Gulfstreams youth was so commendable, it yield an
NOVEMBER 2011 The ArtatWork students completed their Program Orientation, Participation survey, Music
Knowledge Pretest and Art Knowledge PreTest. Six of theArtsatWork students was instrumental in beautifying the
DECEMBER 2011In 2010 under the direction of Mr. Stewart Rabin, the first youth run recording studio in the City of
December was an exciting month for the Recording Engineer students as the Center upgraded to the State of the Art
The recording engineer students are inspiring local artist to explore their creativity from mix tapes to Demos, Tracks, and
The talented young men of Hallandale Beach, Vincent Strickland, Elmon Walters, Anthony Sanders, Leonerist James and
Christopher Drayton established their own Music production Business titled New Generation Music Productions and
One Drop Studios, where they have serviced 15 projects including New Generation takeover Rap CD, and 1Instrumental
As a result of the City of Hallandale Funding and Partnership, over 30 young people between the ages of 1425 gather in
Page 12 of 12
ATTACHMENT 10

FY2011-2012
Grant Agreement
This Participation Agreement (the Agreement) is entered into by and between the City of Hallandale
Beach/Community Redevelopment Agency (City or Grantor), and Palms Center for the Arts, Inc. (Grantee) this
__31_ day of __October__2011_______.
WHEREAS, Grantee The City of Hallandale Beach and Community Redevelopment Agency (City)
through the 2011-2012 Fiscal Year Budget has grant funds to support Community Partnership programs and
services that will benefit the residents of Hallandale Beach; and
WHEREAS, The intent of this funding is to allocate resources to individuals, schools or community
based organizations that support meaningful community service projects and service learning opportunities;
and
WHEREAS, Funding shall be used to further the goals of the Community Redevelopment Agency in the
elimination of slum and blight.
NOW, THEREFORE, the parties hereby agree as follows:
1. Program Description/Deliverables and Project Execution
Grantee shall complete all work in accordance with an approved Work Plan which will be included in this
Agreement as Exhibit A Project Schedule/Deliverables, Exhibit B Budget, and Exhibit C Program
Description. Grantee agrees to submit in writing, any deviation from the attached Work Plan to the City for
approval prior to the implementation of changes.
The City of Hallandale Beach hereby grants to Grantee a Community Partnership Grant in an amount not to
exceed $ 50,000.00 in consideration of and on condition that the sum be expended in carrying out the purpose
as set forth in the Work Plan and under the terms and conditions set forth in this Agreement. Grantee agrees
to assume any obligation to furnish any additional funds that may be necessary to complete the project.
2. Payment , Reporting, and Training Requirements
All payment requests must be submitted by the Grantee using the completed Payment Request, attached as
Exhibit D.
Grantee ensures that the Agreement requirements are met through completion of a Quarterly Progress Report
adhering to the following schedule: (Exhibit E for Quarterly Progress report Form)
1
st
Quarter October through December Due J anuary 15
2
nd
Quarter J anuary through March Due April 15
3
rd
Quarter April through J une Due J uly 15
4
th
Quarter J uly through September Due October 15
If the Grantees Work Plan is completed prior to the full fiscal year and all grant funds have been expended, a
final report is due the quarter following completion of said Work Plan and no further reporting is required.
The City reserves the right to require reports more frequently than on a quarterly basis if necessary, but no
more than once a month.
Page 1 of 11

Grantee is required to attend quarterly workshops sponsored by the City. Date and time of said workshops are
to be determined.
3. Project Withdrawal
If Grantee wishes to withdraw a Project, Grantee shall notify the City of this right pursuant to the Notices
provision below.
In the event an approved project cannot be completed, and if Grant Amount was advanced, those funds, plus
any accrued interest, must be returned to the City.
4. Documentation and Recordkeeping
Grantee shall maintain all records related to performance of this agreement and agrees to maintain satisfactory
financial accounts, documents and records for the Project. Such records shall be available for a period of
three years from the date of receipt of final payment under the Agreement, for inspection and audit by
representatives of the City, at any reasonable time and place. If audit findings have not been resolved, the
records must be retained beyond the three-year period as long as required for the resolution of the issue raised
by the audit.
5. Promotion of Program Services
Grantee agrees to promote the City if applicable when marketing, website, media opportunities, etc. The
Grantee further agrees to assist the City in making a strong case for Community partnerships by providing
timely, accurate data and reporting as requested regarding social service needs.
6. Termination
This Agreement shall be terminated upon the occurrence of:
(1) Breach of his Agreement by the Grantee;
(2) Written notice from the City to the Grantee to terminate the services under this Agreement, which
notice may be given in the sole discretion of the City and without cause; or
(3) Upon receipt by City of written notice from the Grantee of Grantees intent to terminate this
Agreement.
Notice of termination shall be provided in accordance with the NOTICES" section of this Agreement except that
notice of termination by the CITY Manager, which the CITY Manager deems necessary to protect the public
health, safety, or welfare may be verbal notice that shall be promptly confirmed in writing in accordance with the
"NOTICES" section of this Agreement.
7. Assignment
Neither this Agreement nor any right or obligation provided for by this Agreement shall be assigned by the
Grantee without the consent of the City.
8. Charitable Purpose
Activities under this Agreement will not be used for the purpose of profit.
Page 2 of 11

__________________________
__________________________
__________________________

9. Grant Application Incorporation
The Grant Application and any subsequent change or addition approved in writing by the City is hereby
incorporated in this Agreement as though set forth in full in this Agreement. This Agreement may only be
amended upon the written agreement of both the City and the Grantee.
10. Governing Law
This Agreement shall be governed by the laws of State of Florida and of Broward County, Florida. Any action
for breach, enforcement, interpretation, or arising out this Agreement shall be brought only in the Circuit Court
of the Seventeenth J udicial Circuit in and for Broward County, and the parties agree to submit to the
jurisdiction of that Court.
11. Indemnification
Each party assumes responsibility for the negligence of its own respective employees, appointees, or agents;
and, in the event of any claims for damages or lawsuits for any remedy, each party will defend its own
respective employees, appointees, or agents.
To the fullest extent permitted by law, the GRANTEE agrees to indemnify
and hold-harmless the City, its officers and employees from any claims, liabilities, damages, losses, and costs,
including, but not limited to, reasonable attorney fees to the extent caused, in whole or in part, of the
CONSULTANT or persons employed or utilized by the CONSULTANT in performance of the Agreement.
12. Notices
All notices provided for or required under this Agreement shall be made by certified mail, return receipt
requested to the addresses set forth below:
City of Hallandale Beach:
City Manager
With Copy to:
Marian McCann-Colliee
Attn: Community Partnership Grants
750 NW 8
th
Avenue
Grantee:
Page 3 of 11

13. Contingencies
Both City and the Grantee recognize that there exists the possibility of contingent events which may adversely
impact the Grantees ability to provide services as provided for under this and other agreements with other
Grantees, including without limitation, the failure of contributors to remit funds pledged. In the event that any
such contingencies should develop or occur, the City shall have the right to reduce the amount of funds,
suspend the services until conditions change or terminate this agreement and be relieved of its obligation to
deliver according to this agreement.
14. Compliance
Grantee shall comply with all applicable federal, state, and local laws, codes, ordinances, rules, and regulations in
performing its duties, responsibilities, and obligations pursuant to this Agreement.
15. Representation of Authority
Each individual executing this Agreement on behalf of a party hereto hereby represents and warrants that he or
she is, on the date he or she signs this Agreement, duly authorized by all necessary and appropriate action to
execute this Agreement on behalf of such party and does so with full legal authority.
16. Multiple Originals
Multiple copies of this Agreement may be executed by all parties, each of which, bearing original signatures, shall
have the force and effect of an original document.
[Execution on Next Page]
Page 4 of 11

___________________________

_________________________

________________________

IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the respective dates under each
signature: CITY OF HALLANDALE BEACH through its authorization to execute same by Commission action on the 14th,
day of July, 2011, and _____________________, signing by and through its ________________duly authorized to execute
same.
ATTEST:
CITY CLERK
Approved as to legal sufficiency and form by
CITY ATTORNEY
CITY ATTORNEY
Risk Management Division
RISK MANAGER
CITY
By _______________________ Date: _________
CRA
By __________________________ Date: ______
Alvin B. J ackson, J r., CRA Director
[EXECUTION CONTINUED ON NEXT PAGE]
Page 5 of 11

__________________________________

________________________ __________________________

________________________

GRANTEE MUST EXECUTE THIS AGREEMENT AS INDICATED BELOW. USE CORPORATION OR
NONCORPORATION FORMAT, AS APPLICABLE.
GRANTEE
ATTEST: _______________________________
(Name of Corporation)
________________________ By ____________________________ Date: ___________
(Secretary) (Signature and Title)
(Corporate Seal)
(Type Name and Title Signed Above)
____ Day of _______, 20___.
(If not incorporated sign below).
CONSULTANT
WITNESSES:
(PRINT NAME) (PRESIDENT OR VICE-PRESIDENT)
(PRINT NAME)
NOTARY SEAL
Page 6 of 11

Exhibit A
Project Schedule/Timeline Table
(Deliverables)
The table below lists the main work tasks and deliverables required to complete project objectives in order to meet the
requirement of the agreement.
Work Task Start-Up Date Date of Completion
Funds Required
1. Music and Art J ob Training
Classes
Student Recruitment
Marketing/Outreach
Flyers, Brochures,
Applications
Disseminate Information
via email, church, school,
etc.
Purchase of Supplies/Equipment
October 1, 2011 December 1, 2011
8,333.00
14,000.00
Hiring of Instructional Staff
25 students
October 1, 2011 September 30, 2012
23,000.00
2. J ob Placement
Returning Art-at-work
students
New enrolling students
October 1, 2011
November 1, 2011
September 30, 2012
4. Quarterly Job Training and
Entrepreneur Workshops for
Students
October
J anuary
March
J une
J une 30, 2012
1,500.00
5. Adopt a School Music
Program.
Hepburn Center/
Gulfstream Middle
October 1, 2011 J une 1, 2012
3,000.00
6.
Entrepreneur Conference
Quarterly Workshops by CRA
Department
October 1, 2011
J une 30, 2011
September 30, 2011
7. Total Project Completion September 30, 2012
50,000.00
Page 7 of 11

Expenditures
January 1
st
-March 30
th
, 2012
ITEM
Personnel
Supplies $407.00
Equipment $1,799.87
Community Outreach $ 1,722.50
Amount
$6,951.72
Inkind Justification
ArtsatWork Program 4 instructors/ 1 Program
Coordinator
Sound Recording Engineer Studio1 instructor
their recordings. This studio is operated by the youth.
Upon Completion youth will receive a certificate
Adopt a School Music Programprovides
program to Gulstream Middle, Hepburn Center
Art paper, printed material, advertisement
printing, ink cartridge
1electric studio drum
6snare drums
6drum repairs/drum heads
internet wireless service
Salute to the Heritage of Gospel Music Concert
Celebrating Black History Month @Hallandale High
TOTAL
TOTAL $ 10,881.09 Total Expenditures: $ 10,881.09
Page 8 of 11

Type of Payment Advance Reimbursement Final
a. Grant Amount $ 50,000
b. Funds Received to Date 36,166.50
$
$ c. Available Grant Amount (a minus b) 13,833.50
d. Amount Requested -0-
$
e. Balance of Funds after available for this 13,833.50
$
Agreement Amount requested (c minus d)
Justification for Requested Amount:

Exhibit D
Payment Request
Grantee Name: PALMS CENTER FOR THE ARTS
Project Title: ART-AT-WORK PROGRAM
Signature:
Print Name: Date
Deborah R. Brown 4-16-2012
FOR CITY USE ONLY
Date Approved by Grants Committee
PAYMENT APPROVAL SIGNATURE DATE
Page 9 of 11

EXHIBIT E
Reporting Period: 2
nd
Quarter- J anuary 1
st
-March 30
th
, 2012 Date Report Due: _April 16, 2012
Project Name
Person Preparing
the Report/ J ob Title
Charlotte Moore, Program Manager Phone #
(954) 456-9611
Project Start-Up
Date
October 1, 2011
Number of
participants served
during this period
Hallandale Beach
Residents
____30________
Residents __-5-____
Date
Active
28
Project Completion
Date March 30
th
, 2012
Number Served
Amended
Completion Date
(if applicable)
B. Project Cost
Total Project
Cost
$ 50,000 Funds
Expended to
Date
Percentage
City Funding $ 50,000 $36,166.50 72 %
Other Funding
(other sources )
$ -0- $ %
Page 10 of 11

ArtatWork Job Training in Arts Education
REPORT SUMMARY
January 1
st
March 30
th
, 2012
JANUARY 2012The program continues to collaborate with the guidance director Mrs. Lezette Johnson at Hallandale
High School. With the recommendations of community organizations and local schools the enrollment has increased to
30 participates. The students continue to develop their project plans in Art, Recording Engineer, Film, and Graphic
Design & Website Development. The recording Engineer Class released their 2
nd
CD which was displayed during the
Martin Luther King Parade.
Community OutreachDue to the budget cuts in music in the public schools, Palms program and the City of Hallandale
String Orchestra of 15 talented students; The talent of Gulfstreams youth was so commendable, it yield an invitation
to participate in the School Board of Broward County All County Honors Orchestra to perform with over 200 violinists
from across the county. Students from Gulfstream Middle participated in four All county Orchestra rehearsals held at
Tarravella High School, Coral Springs, Fla. The students then participated in a String Orchestra Workshop with over 288
violinists across the county which ended up with an evening performance for parents, family, friends and Broward
County School Board Officials. What an exited evening for our students!
FEBRUARY 2012 The ArtatWork students completed their Program Orientation, Participation survey, Music
Knowledge Pretest and Art Knowledge PreTest.
Artsatwork students are studying a curriculum based program in Graphic Design, Recording Engineer, and Film/Video
Production.
In honor of Black History Month Art students displayed art work of Barack Obama, Dr, Martin Luther King, Alicia Keys
and Michael Jackson.
2Day Orlando Trip to Full sail University
Full sail University is the Nations number one Commercial Music and Graphic Art schools. Palms Center has partnered
with the Full sail University to assure continued higher education for the students that participates in the Artatwork
program. Palms Center Artatwork students and staff participated in an exciting full day orientation, tour and training.
MARCH 2012
Artsatwork Program presented its Annual Salute to heritage of Gospel Music Concert at Hallandale High School was a
huge success. This Concert was a benefit to continue the Artsatwork Job training program. Over 500 Hallandale
residents, family, friends and City Official attended this event. Thanks to Mayor Joy Cooper, ViceMayor Anthony
Sanders, Commissioner Dottie Ross, Dr. Alvin Jackson, Principal Eckhart, Hallandale High staff and Community Pastors
for your support.
The Film/Video student Elmon Walters completed and presented his first movie presentation on March 5, 2012
One Drop Studios & New Generation Music Production served 10 clients and completed 5 music presentations by
students Leonerist James, Deron Henry and Vincent Strickland
As a result of the City of Hallandale Funding and Partnership, over 30 young people between the ages of 1425 gather in
Page 11 of 11
ATTACHMENT 11


FY 2010-2011
COMMUNITY BASED ORGANIZATIONS
GRANT FUNDING
Bi-Annual Report
1. How have you utilized the funding provided by the City. Explain in detail the program,
services and individuals served, etc
We have used the funding to continue to change lives through the arts. The Palms Center for the
Arts is an afterschool arts program in our community, a gathering place and a safe haven for our
youth.
Our music and arts afterschool program consists of private and group instruction in singing,
piano, string orchestra, world-drumming, jazz, marching band, dance, drama and theatre.
Students attend classes daily five days a week, using a structured curriculum and a real-time
musical performance-based environment. Our programs provide musical instruction and
performance opportunities which creates an atmosphere conductive to total learning and
individual growth. Our youth perform various classical literature, jazz, pops, blues, and gospel
music. Our youth performance has reached outside of Hallandale and abroad, as they have
performed in Tallahassee, Florida the state capitol, Atlanta, Ga at the International Arts Festival
and Washington D.C. at the Whitehouse, Lincoln Memorial and World War II. And, presently
the Palms Center is the model inner-city cultural arts program during this years Florida League
of Cities in Orlando, Florida.
Art-at Work, arts education and job training program, in partnership with the City of Hallandale,
City of Hallandale Police Department and Broward County J uvenile Court is designed to prevent
14-21 year old youth/young adults who have been identified by the court as truant from
becoming more deeply involved in the juvenile justice system. Professional artist provide youth
with sequential computer technology, Graphic Design, art, music, and recording engineer
instruction. Program participants gain job skills and learn about the business and entrepreneurial
aspects of the arts and how to market their work. Participants are paid a stipend for their projects
and paid $5-7 an hour.
During the academic year, Art-at-Work involves eight hours per week producing artwork
combined with academic instruction to assist in the preparation and production of practical work
projects. All apprentice artists have learned product presentation and marketing through the
involvement with art exhibits that will feature finished products. The program has also provided
instruction in the areas of career planning, job retention and job advancement.
The goals of this years afterschool intervention program are fourfold: to reduce truancy by
providing sequential arts instruction in various arts disciplines; to teach the business and
entrepreneurial aspects of the arts; to provide youth with the necessary job skills to become
productive members of the work force; and to provide youth with a sense of accomplishment,
thus increasing their self-esteem
This project serves 150 youth age 5-19 of every ethnic and cultural background, living at or
below poverty level in the City of Hallandale community and those youth who attend the
Hallandale Schools. 80% of the participates are Hallandale Resident
Page 1 of 4

FY 2010-2011
GRANT FUNDING
Bi-Annual Report
2. Provide a financial report in detail of how the funds have been utilized. What % of the
funds has been spent to date?
The Funds were spent utilized to assist with the operation of the music/arts afterschool
program.
PROGRAM
Music /Arts Instructors:
Arts/Graphic, Piano, Percussion,
Band, Orchestra, Guitar
$22,165.00
Art-at- Work Stipend
Frankie Dunlop
$ 25.00
Afterschool Snacks $ 200.00
Music Accessories/Materials
Resurrection Drums $117.80 /TEI $84.00
$ 201.80
Publicity/Marketing
Church of God $50 Alvin Paris $50
$ 100.00
Bus Transportation (Gas-$600)
Cain Wilson $100 Mark Renalls $30
$ 730.00
TOTAL $23,571.80
94% of the Funds have been utilized
3. Approximately what percentage of the funds are used for administrative costs.
NONE0%
Page 2 of 4


FY 2010-2011
GRANT FUNDING
Bi-Annual Report
4. How have the requested funds impacted the residents of the City of Hallandale Beach.
The funds have assisted in reducing truancy among at-risk youth, Palms have been a safe haven
for many youth in the community, students grades and behavior have improved tremendously,
the program has an overall impact on our families and parents knowing their children are in a
safe environment after school.
The funds have served to enrich our youth socially, economically, academically and
intellectually to achieve their highest goals in life and to give stability and strength during
difficult times.
The program has succeeded in teaching arts skills; life skills such as beginning and completing a
project; create opportunities for strengthened peer, mentor, and family relationships; raise self-
esteem; and create a quality art project for public display
The Arts Program is providing an opportunity for our community to view art in public places; it
humanizes and enhances our public spaces. The Arts Program also acts as an educational tool to
help further foster the value of our local community arts. Assure the safety of our residents
knowing that the youth in our community are engaged in constructive programs that will
challenge them to become productive citizens
5. Have you applied for any additional funds for your program.
Yes, additional funding has been requested from the future foundation, community
foundation of Broward, and we will be applying for the NEA grant
Page 3 of 4


FY 2010-2011
GRANT FUNDING
Bi-Annual Report
CERTIFICATION
I certify that the information contained in the Application, including Budget and Attachments
(supporting materials) are true and correct to the best of my knowledge.
________________________________________ _____________________
Signature of Authorized Representative Date
________________________________________
Title
Page 4 of 4
ATTACHMENT 12

COMMUNITY PARTNERSHIP GRANT
Exhibit F
FY 2013
FINAL REPORT GUIDELINES
TheFinalReportisanopportunityforyoutoinformtheCityabouttheimportantworkyoudo,anditisavaluable
tool for the City to use in assessing the success of the project and future funding considerations for your
organization.Please completethereportandsubmitto the Citywithinthirtydaysofcompletionofyourproject.
Agency Name: _____PALMS CENTER FOR THE ARTS_____________________________________________________
Date Report Submitted: October30,2012
1. Complete the chart below:
ProjectName
ArtsatWork Job Training Program
PersonPreparingthe
Report/JobTitle
Dr.DeborahR.Brown
Director
Phone#
9542885443
ProjectStartUpDate
October1,2011
Numberofparticipants
servedduringthis
period
Hallandale Beach
Residents
______50______
NonHallandaleBeach
Residents ____5_________
ParticipantStatusto
Date
Active:_____42___ Terminations:____8___
Successful: ___42
CompletionDate:
September 30,2012 Total NumberServed 50
AmendedCompletion
Date(ifappli able) c
N/A
B. Project Cost
Total Project Funds Percentage
Cost Expended to
Date
City Funding $50,000 $50,000 100%
Other $0 $ %
Funding
(specifysource
below)
1 | COMMUNITY PARTNERSHIP GRANT PROGRAM FISCAL YEAR 20122013

Exhibit F
FY 2013
FINAL REPORT
(Continued)
Please provide the information requested below on Agency letterhead. All information must be submitted
typed using an 11pt font.
2.The actual numberofindividualsservedbytheCitygrantaward
(Provide backuptosupportnumberofindividualsserved; i.e.copiesofsigninsheets,calllogs,etc.)
3.Listthespecificactivitiesusedtoaccomplishtheprojectgoalsandobjectives.Inthecaseofclasses,workshops,
performances, and the like, indicate the number, frequency, duration, and number of participants. Example: A
total of six workshops took place on a monthly basis with each workshop lasting two hours. Ten individuals
attendedeachworkshop.(Providecopiesofparticipantattendancelogs)
4.Listtheevaluation methodsusedto determinetheextentto whichobjectivesandgoalswere met.Providecopies
ofevaluation tools,suchassurveysortests,whenpossible.Ifnoevaluationtoolisused,pleaseindicatesuch.
5.IndicatehowyoupubliclyrecognizedTheCityofHallandaleBeach.Forexample,brochures,programbooklet, in
annual report, press release, web site. Provide copies of all collateral materials and copies of any media
coveragetheprojecthasreceived.
6. Describe unexpected challenges or opportunities you encountered, if any. You may want to explain why you
wereunsuccessfulat somelevelsofservices.Youarealsoencouragedtoshareyoursuccessstories.
7.Pleasealsosubmitthefollowingfinancialinformation:
a)AccountingofactualexpensesusingtheFinal ExpenditureReportFormprovided.
b)Copiesofallexpendituretoincludereceipts,payroll,etc.
8.SubmitanoverallProjectSummary (page 3).
9.TheFinalReportmustbesignedbytheAuthorizedRepresentative.

Exhibit F
FY 2013
FINAL REPORT
(Continued)
PROGRAM SUMMARY
PLEASE PROVIDE AN OVERALL SUMMARY OF THE PROJECT RESULTS/OUTCOMES:

Exhibit F
FY 2013
FINAL REPORT
(Continued)
FINAL EXPENDITURE REPORT
ITEM Amount Other
funding
Inkind
contribution
Justification
PERSONNEL
Instructional
Staff/Vendors
33,022.61 16,000.00 1Program Director
1Program Manager
4Instructors
ArtatWork Stipends 3,183.74 5,500.00 20Studentspaidstipends forwork,artand
music/videoproductionprojectscompleted.
Business Leadership/
Job Training/Career
Workshops
722.99 1,500.00 Studentsparticipatedin4BusinessLeadership
Workshops.2JobTrainingand2Career/College
preparation/Orientation.2dayat FullSail
UniversityOrlando,Fl
VOLUNTEERS 5,100.00 Volunteersassistedwithprogram,fieldtripsand
servedasmentors
SUPPLIES 2,719.79 Artsupplies,printing,snacks,inkcartridges,T
shirts
EQUIPMENT 8,522.23 200.00 RecordingStudioandMusicalInstruments,
Recordingstudiosoftware/accessories
COMMUNITY
OUTREACHCONCERT
1875.00 2,500.00 CityHeritageofBlackMusicConcert3Recording
Artist,Reception,printed flyers/advertisement
T
TOTALS
50,046.36 0 30,800.00 TOTAL AMOUNT 80,846.36
REMEMBERTOATTACHALLEXPENDITURE RECEIPTSRELATEDTOGRANTFUNDSPROVIDEDBYTHECITYOF
HALLANDALEBEACH.
I certify that the information contained in this Final Report, including Budget and Attachments are true
and correct to the best of my knowledge.
_________________________________________ ______10312012____________
Signature of Authorized Representative Date
Thank you in advance for your Final Report. Submit the Final Report to:
750 NW 8
th
Avenue
ATTACHMENT 13
Picnto & 3iJ1SiJ1S
Express yourself through song!
Ages 5- 18 years
.
,
3:00p.m.- 6:00p.m.
6:00 p.m.-8:00p.m.
:-;_ ,I

'" ::---::..::j.:
This dynamic program
Includes:
Vocal andpiano techniques
learnfon and
exciting songs
group rehearsals
Movement&

Oechesfit.ael
Saturday: I:00 p.m.-3:00 p.m.
Ages 6-18- Violin, Viola, Cello
String Orchestra provides youth with a
balanced program ofmusical instruction and
supervised recreational opportunities creates
an atmosphere conducive to total learning,
fun and individual growth. Youth will
perform string literature, jazz, pops, blues
and gospel music.
Unleash your inner drummer!
3:00 p.m.-6:00p.m.

6:00 p.m.-8:00p.m.
Drumline
congas and bongos
hand drumming on
the djembe (African
hand drum)
drum set lessons (beginner &
intermediate)
body percussion (clapping,
stomping, tapping)
claves, thunder drum, cowbell etc.
STOMP rhythm project .
Deluxe Arts Program
3:00p.m. -6:00p.m.
This jam-packed
session includes:indoor activity & Fieldtrips
art projects
Literary, visual, 2 & 3 dimensional arts
Learn a new musical instrument and
To register Call (954) 465-9665 or email:
zamarschool@yahoo.com
Instrumental:
flute, clarinet, saxophone,
trumpet, and trombone lesson
(beginner and intermediate)
students will be able to try various
band instruments .
aela3 &mcn-chil1S
BClJI.d
Saturdays:
3:00 p.m.-6:00 p.m.
.-_....___________ ____
'
--
.,
r
-.----.
Arts-at-Work Program
Agesll-21 years
Art at work program employs professional
artist as instructors. Program participants,
within the program are referred to as
"apprentice they will be exposed to,
a variety of art forms such as two and three .
dimensional design, techniques in visual and t
literary arts, photography, computer
technology and graphic design.
The program participants are paid by
hour for their work; in turn, much of the
artwork they create is sold, with proceeds
from the sales going back into the program.
In addition, Art-at-Work participants engage
in special arts activities during non
instructional time---visits to local museums,
galleries, and theaters.
0-\t
112UJJIC
The City-Wide Marching Band & String
Orchestra tours/performs@ Underground
Atlanta/MLK Amphitheatre
Atlanta, G.A.
March 14-18 2011
Cost:300.00 (travel, hotel, meals, Six Flag)'
Program Schedule
2:00 p.m;-tutorial sessions/Music Theory
3:00 p.m.-Piano, Voice, Guitar, Drums
4:00 p.m.-Piano, Voice, Guitar, Drums
5:00p.m-Dance, Drama/Theatre, ART
6:00 p.m.,Orchestra, Drums, Computer
7:00p.m-Jazz Band, Graphic Design
Saturday Schedule
"'):00 p.m-3:00 p.m-String Orchestra
3:00 p.m-5:00 p.m.-Marching Band, Dance,
Flags, Majorettes, Drumline
Registration Fee: $75.00 /Non-resident $100.00
Afterschool Program Fee: 75.00 weekly
Additional siblings $50.00 weekly
Year-round/Summer Camp Fee:
$ 100.00 weekly addt'l sibling $75.00
Bus Transportation Available
-- - ---- --

c:E
SUD&D&z:--. C:.A.D!EP' 2011
REGISTRATION IS LIMITED!
.J....
Zamar School of Performing Arts
"City of Choice"
2010-2011

j

,,
<'

'II /I' "'
-
I
'"l'rnnsfmming Liws tluough the A.>ts"
Afterschool Program Age 5-18
2:00 p.m.-6:00 p.m.
Year-round camp: 7:30 a.m.-2:00p.m.
Adult Program
6:00 p.m.
Free Senior Citizen Classes

Palms Center for the Arts
GOI N.W.l"T Avenue
Hallandale Beach. Florida

(954) 465-9665
emaiL zamarschool@yahoo.com
website, zamarschool.com
;I

1t
ALLANDALEJIF.ACH
ZAMARP:t'
.,..,_.,,....
u
H
I&

Hallandale Beach CRA Investigation by Broward OIG

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Hallandale Beach CRA Investigation by Broward OIG

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BROWARD OFFICE OF THE INSPECTOR GENERAL

J ohn W. Scott, Inspector General

CITY OF HALLANDALE PALMS CENTER

PALMS CENTER FOR THE ARTS

CITY OF HALLANDALE BEACH

CITY OF HALLANDALE BEACH

CITY OF HALLANDALE BEACH

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