Block Grant Community Agreement with Fat Ronnie's Sobe LLC Zoe - r314-17
MI/\ V 1 I B E AC H Contract/Document Routing Form
Contract No. °.;' "Title. s, s
CDBG-CV City of Miami Beach Emergency Small Business Reimbursement Grant Program
Contractor. • ,. ,, , , Sw• Re uestin , „
Fat Ronnie's Sobe LLC Economic Development Department
De:arYment birectorR;:arner&5i:nature CI ,rr= , ' i ACM=Name&Sig_:"na ure-:
Rickelle Williams J /� , ��i Eric Carpenter �. ete,
,',pocumwenttT ,e !Select One. 'M `
Type 1-Contract,amendment,change order or task order resulting from a procurement-issued competitive solicitation.
Type 2-Other contract,amendment,change order or task order not resulting from a procurement-issued competitive solicitation.
Type 3-Independent Contractor Agreement(ICA) Type 6-Tenant Agreement
Type 4-Grant agreements with the City as the recipient Type 7-Inter-governmental agency agreement
X Type 5-Grant agreements with the City as the grantor Other:
B.nef.°5umma: &;'Pun•ose+'attachmemo if ad'dt�ona"Iss o ace is necessar'.i^ ,. ,{.
Per Resolution 2020-31471,Economic Development is currently administering the CDBG-CV City of Miami Beach Emergency
Small Business Reimbursement Grant Program to provide relief to up to thirty-three(33)eligible businesses in the Miami
Beach community.The City Manager's signature and City Clerk's signature are required on page thirteen(13)of each
agreement.Attached is the CDBG-CV agreement to be signed by the City Manager.
Ori:`inal,Term:; #; f"w 'I• ''.(Renewaif Tds x ', ,Tiota(;Term On'inal`+WRenewals
12 months
Eundii Inforrnatiom , ' ,
Grant Funded: X Yes No State Federal Other:
c. Cost<&Fund r €Source, .
Yearn= AnnuaI'Cost„ � ,,. 'Account i.. Re.uire-Enhancement
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1 $20,000 136-0530-000345-00-404-534-00-00-00-59520 Yes X No
2 Yes No
3 Yes No
4 - Yes No
5 Yes No
1.For contracts longer than five years,contact the Procurement Department. 2.Attach any supporting explanation needed.
3. Budget approval indicates approval for current fiscal year only. Future years are subject to City Commission approval of
annual adopted operating budget.
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City Commission Approved: X Yes No Resolution No.: CC Agenda Item No.: CC Meeting Date:
2020-31471 C7 C October 28,2020
If no,explain why CC approval is not required:
Legal Form Approved: X Yes No If no,explain below why form approval is not necessary:
I"' Corn•Hance Ao•rovalt1 see;attached
Procurement: N/A Grants: N/A
Budget: N/A Information Technology: N/A
Risk Management: N/A Fleet&Facilities: N/A
Human Resources: N/A Other: N/A
2®2®-31471
COMMUNITY DEVELOPMENT BLOCK GRANT-CORONAVIRUS AGREEMENT
FOR THE CITY OF MIAMI BEACH EMERGENCY SMALL BUSINESS REIMBURSEMENT GRANT
PROGRAM
(FISCAL YEAR 2021)
BETWEEN
THE CITY OF MIAMI BEACH •
AND
FAT RONNIE'S SOBE, LLC
This Agreement made and entered into th•isZ.
,cwiday of t1OWC , 2022, by and between
the CITY OF MIAMI BEACH, FLORIDA, a Florida municipal corporation having its principal office at 1700
Convention Center Drive, Miami Beach, Florida, 33139, (hereinafter referred to as "City") FAT RONNIE'S
SOBE, LLC, a Florida limited liability company having its principal place of business at 1233 Lincoln Road,
Miami Beach, FL, 33139(hereinafter referred to as"Grantee").
WHEREAS, on May 13, 2020, the City Commission approved Resolution No. 2020-31256,
approving an initial allocation of Community Development Block Grant-Coronavirus (CDBG-CV)funding
to create the City's Small Business Assistance Program with the principal goal of the program being to
support and promote business longevity by retaining or creating jobs;and
WHEREAS, on October 28, 2020, the City Commission adopted Resolution No. 2020-31471,
approving the allocation of$900,000 for small business assistance through receipt of additional CDBG-CV
funding made available by the U.S. Department of Housing and Urban Development(HUD); and
WHEREAS,the City Commission directed the Administration to utilize up to$600,000 of the CDBG-
CV funds for small business assistance grants in order to assist qualified Miami Beach small businesses
with an award of up to TWENTY THOUSAND DOLLARS ($20,000.00);and
WHEREAS, the Administration developed the Emergency Small Business Reimbursement Grant
Program(the"Program")to provide relief to eligible microenterprises and small businesses; and
WHEREAS,Grantee applied for the Program and has been deemed an eligible business, pending
compliance with Program requirements and the receipt by the City of all required documentation; and
WHEREAS, the City desires to provide a grant to Grantee under the terms of the Program.
NOW,THEREFORE,in consideration of the mutual benefits contained herein,the City and Grantee
agree as follows:
Section 1. Agreement Documents: Agreement documents shall consist of this Agreement and the
following four(4)exhibits, all of which are attached and incorporated in this Agreement:
• Exhibit A-Scope of Services
• Exhibit B—Required Employee and Expense Documentation
• Exhibit C-Financial Management for CDBG-CV funded activities
• Exhibit D -Quarterly Report Form
Section 2. Statement of Work: The Grantee agrees to implement the Program in accordance with
Exhibits A and B, which Program is summarized as follows:
Small Business COVID-19 Relief and Low-Income Employment:
Pursuant to the CARES Act, the CDBG-CV funding is intended to"avoid job loss caused by
business closures related to physical distancing by providing short-term assistance for
qualified business expenses" (as defined in Exhibit "A") to eligible small businesses who
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agree to employ and/or retain at least one(1)qualified low-and moderate-income employee
(as defined in Exhibit "A") for a period of one (1) year from the date the City verifies
employment for the qualified employee (the"Compliance Period"). If Grantee complies with
the terms of the Program during the Compliance Period, the Grant Funds shall be forgiven
by the City, pursuant to a written notification to Grantee. If Grantee is not able to document
compliance with the terms of the Program during the Compliance Period, Grantee shall be
required to repay to the City all of the Funds received under this Agreement.
Section 3. Agreement Amount: The City agrees to make available Community Development Block
Grant-Coronavirus (CDBG-CV) funds, in an amount not to exceed TWENTY THOUSAND
DOLLARS(20,000.00)for use by the Grantee during the Term of the Agreement to be spent
on any business operational costs such as payroll, utilities, rents, or mortgage interest (for
business accounts in existence as of October 1, 2020), etc. and/or eligible COVID-related
expenditures. Grant money may only be used to reimburse those eligible expenses which
have occurred after October 1, 2020 (hereinafter, the aforestated amount including, without
limitation,any additional amounts included thereto as a result of a subsequent amendment(s)
to the Agreement, shall be referred to as the"Funds").
Section 4. Alterations: Any change to the Program shall require the prior written approval of the City
Manager, which approval, if given at all, shall be at his/her sole reasonable judgment and
discretion.
Section 5. Reporting Requirements and Method of Payment: In compliance with 24 CFR 570.503
(b)(2), Exhibit B contains a checklist of backup documentation to be used in fulfillment of the
quarterly reporting requirement. The Grantee will provide the City with a complete Quarterly
Report every three months. The quarterly report will be due on the 10th day following every
quarter period. In the event that the 10th of the month lands on a Saturday,Sunday or holiday,
the report must be submitted the following business day.The report will detail how Funds are
expended and for which type of business expenses.The Quarterly Report must also specify
whether the Grantee is complying with the Job Creation/Employee Retention or
Microenterprise Requirement, including acknowledgement that the employee qualifies as a
low-income employee. Quarterly reports will be submitted via any of the following methods:
• Standard mail
• Email
Quarterly reports will not be considered acceptable unless the following is met:
• Forms are completely and accurately completed including draw number and submittal
date
• Necessary back-up materials are included (as stated in Exhibit"B" Documentation.)
• Reports bear the signature of the person preparing the report and the Grantee's
authorized signatory
Reports and/or requested documentation not received by the due date shall be considered
delinquent and may be cause for default and termination of this Agreement, pursuant to
Section 10 hereof. Other reporting requirements may be required by City in the event
legislative amendments are enacted or as the City Manager may reasonably deem
necessary. The Grantee shall be informed, in writing, if any changes become necessary.
Section 6. Additional Conditions and Compensation: The parties acknowledge that the Funds
originate from CDBG-CV grant funds from HUD and must be implemented in full compliance
with all of HUD's rules and regulations. In the event of curtailment or non-production of said
Federal funds, the financial sources necessary to continue to pay the Grantee all or any
portions of the Funds will not be available. In that event, the City may terminate this
Agreement, which termination shall be effective as of the date that it is determined by the
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City Manager,in his/her sole discretion and judgment,that the Funds are no longer available.
In the event of such termination, the Grantee agrees that it will not look to, nor seek to hold
{ the City, nor any individual member of the City Commission and/or City Administration,
personally liable for the performance of this Agreement, and the City shall be released from
any further liability to Grantee under the terms of this Agreement.
Section 7. Compliance with Local, State and Federal Regulations -The Grantee agrees to comply
with all applicable Federal regulations as they may apply to Program administration as
described in 24 CFR 570 and 2 CFR 200 and carry out each activity in compliance with the
laws and regulations as described in 24 CFR 570 Subpart K—Other Program Requirements,
as same may be amended from time to time. Additionally, the Grantee will comply with all
State and local (City and County) laws and ordinances hereto applicable. It shall be the
Grantee's sole and absolute responsibility to continually familiarize itself with any and all such
applicable Federal, State, County, and City regulations, laws, and/or ordinances.
Section 8. Assignment/Subcontract: No part of this Agreement may be assigned or subcontracted
without the prior written consent of the City Manager, which consent, if given at all, shall be
at the City's sole discretion and judgement.
Section 9. Term: This Agreement shall commence retroactively on October 1,2020 and shall terminate
at such time as the City determines that Grantee has provided sufficient documentation to
establish compliance with all requirements for use of the Funds following disbursement of
Funds to the Grantee(the Term).
Section 10. Termination of Agreement:
10.1 Termination for Convenience: This Agreement may be terminated by the City, for
convenience and without cause, through the City Manager, upon 30 days prior written notice
to Grantee. In the event of such termination for convenience, the City shall retain any Funds
which were not disbursed to Grantee before the effective date of termination. Grantee shall
be solely responsible for immediately returning any unused or unapproved Funds as of the
date of termination and shall also be solely responsible for submitting a final report, as
provided in Section 5 hereof,(detailing all Program objectives,activities and expenditures up
to the effective date of the termination). Said final report shall be due within five (5)working
days following the effective date of termination. Upon timely receipt of Grantee's final report,
the City, at its sole discretion,shall determine the amount(if any)of any additional portion of
the Funds to be returned to the City as a result of any unapproved or unused Funds, or
incomplete Program items, and shall provide Grantee with written notice of any monies due.
Said additional monies shall be due and payable immediately upon receipt of such notice by
Grantee. Notwithstanding the preceding, the City reserves any and all legal rights and
remedies it may have with regard to recapture of all or any portion of the Funds,or any assets
acquired or improved in whole or in part with said Funds.
10.2 Termination for Cause: Notwithstanding Subsection 10.1 above, the City may also
terminate this Agreement for cause."Cause"shall include,but not be limited to,the following:
a. Failure to comply and/or perform, in accordance with the terms of this Agreement, or
any Federal, State, County or City law, or regulation.
b. Submitting reports to the City which are late, incorrect, or incomplete in any material
respect.
c. Implementation of this Agreement,for any reason, is rendered impossible or infeasible.
d. Failure to respond in writing to any concerns raised by the City,including substantiating
documents when required/requested by the City.
e. Any evidence of fraud, mismanagement, and/or waste, as determined by the City's
monitoring and applicable HUD rules and regulations.
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The City shall notify the Grantee in writing when the Grantee has been placed in
default. Such notification shall include: (i) actions taken by or to be taken by the City, such
as withholding of payments; (ii)actions to be taken by the Grantee as a condition precedent
to curing the default, if applicable; and (iii)a reasonable cure period, which shall be no less
than thirty (30) days from notification date with respect to Subsections 10.2(a), (b), and (d).
In the event the Grantee fails to cure a default under Subsections 10.2(a), (b),and (d)within
the aforestated cure period,this Agreement shall be considered terminated for cause,without
requiring further notice to Grantee.
Notwithstanding the foregoing, with respect to Subsection 10.2 (c) and (e), the
termination for cause, as described in this section, shall be effective upon receipt of the
termination notice, without the opportunity to cure said default.
Additionally, if Grantee has committed similar defaults under Subsections 10.2(a),
(b), and (d),on two or more occasions during the term of the Agreement, the termination for
cause, as described in this section, shall be effective as of the date the second notice is sent
to Grantee by the City,without the opportunity to cure said default.
Grantee shall be solely responsible for repayment to the City of all or any portion of
the Funds disbursed to Grantee, as deemed required by the City, in its sole and reasonable
discretion. Said monies shall be immediately due and payable by Grantee. Notwithstanding
the preceding,the City reserves any and all legal rights and remedies it may have with regard
to recapture of all or any portion of the Funds, or any assets acquired or improved in whole
or in part with said Funds.
10.3 Termination for Lack of Funds: In the event of curtailment of,or regulatory constraints
placed on the Funds by HUD, this Agreement will terminate, effective as of the time that it is
determined by the City Manager that such Funds are no longer available. Costs of the
Grantee incurred after termination are not allowable unless expressly authorized in writing
by the City Manager(whether in the notice of termination or subsequent thereto),and, in that
case, may only be allowable if, in the sole discretion of the City Manager:
a. The costs resulted from obligations which were properly incurred before the effective
date of termination,were not in anticipation of it, and are noncancelable; and
b. The costs would be allowable if the Agreement expired normally at the end of its Term.
10.4 Interest and Collection Costs: Any payment made by Grantee after seven (7) days
from the due date shall accrue interest at the rate of twelve percent (12%) per annum
("Default Interest"). In addition to the Default Interest, Grantee shall pay the City all costs
and reasonable attorney's fees incurred by the City in connection with the enforcement of
this Agreement.
Section 11. Equal Employment Opportunities/No Discrimination: In compliance with 2 CFR 200,
Appendix II: Except as otherwise provided under 41 CFR Part 60, all contracts that meet the
definition of"federally assisted construction contract"in 41 CFR Part 60-1.3 must include the
equal opportunity clause provided under 41 CFR 60-1.4(b), in accordance with Executive
Order 11246, "Equal Employment Opportunity" (30 FR 12319, 12935, 3 CFR Part, 1964-
1965 Comp., p. 339), as amended by Executive Order 11375, "Amending Executive Order
11246 Relating to Equal Employment Opportunity,"and implementing regulations at 41 CFR
Part 60, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity,
Department of Labor."
Unless otherwise required by applicable laws, in connection with performance of the
Services,the Grantee shall not exclude from participation in, deny the benefits of, or subject
4
to discrimination anyone on the grounds of race, color, national origin, sex, age, disability,
religion, income or family status.
Additionally, Grantee shall comply with the City of Miami Beach Human Rights Ordinance,
codified in Chapter 62 of the City Code, as may be amended from time to time, prohibiting
discrimination in the employment, housing, public accommodations, or public services, on
the basis of actual or perceived race,color, national origin,religion,sex,intersexuality,sexual
orientation, gender identity, familial and marital status, age, ancestry, height, weight,
domestic partner status, labor organization membership,familial situation, political affiliation,
or disability.
Section 12. Program Income: The use of program income by the Grantee shall comply with the
requirements set forth at 24 CFR 570.504. By way of further limitations,the Grantee may use
such income during the contract period for activities permitted under this contract.
Section 13. Religious Organization or Owned Property: (Intentionally Omitted)
Section 14. Reversion of Assets: In the event of a termination of this Agreement, or upon expiration of
the Agreement, and in addition to any and all other remedies available to the City(whether
under this Agreement, or at law or in equity), the Grantee shall immediately transfer to the.
City any Funds on hand at the time of termination(or expiration)and any accounts receivable
attributable to the use of CDBG-CV Funds. The City's receipt of any Funds on hand at the
time of termination,shall not waive the City's right(nor excuse Grantee's obligation)to recoup
all or any portion of the Funds, as the City may deem necessary.
Additionally, in the event that Grantee fails to comply with the requirements of the
Program, as more particularly described in Exhibits "A" and "B", Grantee shall be
required to repay the City all of the Funds paid to Grantee, such sums shall be due
and payable immediately, upon demand.
Section 15. Conformity to HUD regulations: The Grantee agrees to abide by guidelines set forth by
HUD for the administration and implementation of the CDBG-CV Program, including
applicable Uniform Administrative Requirements set forth in 24 CFR 570.502, as amended
by 2 CFR 200 and applicable Federal laws and regulations in 24 CFR 570.600, et seq. as
now in effect and as may be amended from time to time. In this regard, the Grantee agrees
that duly authorized representatives of HUD shall have access-to any books, documents,
papers and records of the Grantee that are directly pertinent to this Agreement for the
purpose of making audits, examinations, excerpts and transcriptions.
a. Subpart A-"Acronyms and Definitions"
b. Subpart B-General Provisions
c. Subpart C-"Pre-Federal Award Requirements and Contents of Federal Awards"
d. Subpart D-"Post-Federal Award Requirements",except for 200.305,200.306, 200.307,
200.308, 200.311 as detailed below:
1) "Payment"is modified for lump sum drawdown for financing of property rehabilitation
activities, in accordance with 570.513.
2) "Program Income"is governed by 570.504
3) "Real Property" does not apply, except as provided in 570.200(j). Real property is
governed by§570.505.
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4) "Equipment"CDBG-CV Grantees shall follow Section 200.313,except that when the
equipment is sold,the proceeds shall be program income. Equipment not needed by
the Grantee for CDBG-CV activities shall be transferred to the recipient for the
CDBG-CV program or shall be retained after compensating the recipient.
5) Section 200.333"Retention requirements for records" applies except that:
For Grantees:
i. The retention period for individual CDBG-CV activities shall be the longer of
five (5) years after the expiration or termination of the Grantee agreement
under § 570.503, or five (5) years after the submission of the annual
performance and evaluation report, as prescribed in § 91.520 of this title, in
which the specific activity is reported on for the final time;
ii. Records for individual activities subject to the reversion of assets provisions at
§570.503(b)(7)or change of use provisions at§570.505 must be maintained
for as long as those provisions continue to apply to the activity; and
iii. Records for individual activities for which there are outstanding loan balances,
other receivables, or contingent liabilities must be retained until such
receivables or liabilities have been satisfied.
Section 16. Section 200.343"Closeout"
City will close-out the Federal award when it determines that all applicable administrative
actions and all required work of the Federal award have been completed by the Grantee.
The following actions must take place to complete this process at the end of the Term.
a. The Grantee must submit, no later than 90 calendar days after the end date of the
Term, all financial, accomplishment, performance, and other reports as required by
the terms and conditions of this Agreement. City may approve extensions when
requested by the Grantee.
b. Unless City authorizes an extension, Grantee must liquidate all obligations incurred
under this Agreement no later than 90 calendar days after the end date of the Term
as specified in the terms and conditions of this Agreement.
c. City must make prompt payments to the Grantee for allowable reimbursable costs
under this Agreement prior to being closeout.
d. Grantee must promptly refund any balances of unobligated cash that City paid in
advance or paid and that are not authorized to be retained by the Grantee for use
in other projects.See OMB Circular A-129 and see§200.345 Collection of amounts
due,for requirements regarding unreturned amounts that become delinquent debts.
e. Consistent with the terms and conditions of the Agreement, City must make a
settlement for any upward or downward adjustments to the Federal share of costs
after closeout reports are received.
f. Grantee must account for any real and personal property acquired with Federal
funds or received from the Federal Government in accordance with §§200.310
Insurance coverage through 200.316 Property Trust Relationship and 200.329
Reporting on Real Property.
g. City should complete all closeout actions for Federal awards no later than one year
after receipt and acceptance of all required final reports.
Section 17. Examination of Records: The Grantee shall maintain sufficient records in accordance
with 24 CFR 570.502, 570.503(b)(2) and 570.506 to determine compliance with the
requirements of this Agreement,the CDBG-CV Program, and all other applicable laws and
regulations.This documentation shall include, but not be limited to, the following:
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a. Books, records and documents in accordance with generally accepted accounting
principles, procedures and practices, which sufficiently and properly reflect all
revenues and expenditures of funds provided directly or indirectly by this Agreement,
including matching funds and Program Income. These records shall be maintained to
the extent of such detail as will properly reflect all net costs, direct and indirect labor,
materials, equipment, supplies and services, and other costs and expenses of
whatever nature for which reimbursement is claimed under the provisions of this
Agreement;
b. Time sheets for employees related to the Employee Retention Requirement; and
c. How the Statutory National Objective(s) as defined in 24 CFR 570.208 and the
eligibility requirement(s) under which funding has been received, have been met.
These also include special requirements such as necessary and appropriate
determinations as defined in 24 CFR 570.209, income certifications, and written
Agreements with Grantees, where applicable.
The Grantee is responsible for maintaining and storing all records pertinent to this
Agreement in an orderly fashion in a readily accessible, permanent and secured
location for a period of five (5) years after expiration of this Agreement, with the
following exception: if any litigation,claim or audit is started before the expiration date
of the five (5) year period, the records will be maintained until all litigation, claims or
audit findings involving these records are resolved.The City shall be informed in writing
after closeout of this Agreement, of the address where the records are to be kept.
Section 18. Audits and Inspections:
18.1 At any time during normal business hours, and as often as the City (and/or its
representatives) may deem necessary, the Grantee shall make available all records,
documentation, and any other data relating to all matters covered by the Agreement, for
review, inspection or audit.
If this Agreement is closed-out prior to the receipt of an audit report, the City reserves the
right to recover any disallowed costs identified in an audit after such closeout.
18.2 Inspector General Audit Rights.
a. Pursuant to Section 2-256 of the Code of the City of Miami Beach, the City has
established the Office of the Inspector General which may,on a random basis, perform
reviews, audits, inspections and investigations on all City contracts, throughout the
duration of said contracts. This random audit is separate and distinct from any other
audit performed by or on behalf of the City.
b. The Office of the Inspector General is authorized to investigate City affairs and
empowered to review past, present and proposed City programs, accounts, records,
contracts and transactions. In addition, the Inspector General has the power to
subpoena witnesses, administer oaths, require the production of witnesses and
monitor City projects and programs. Monitoring of an existing City project or program
may include a report concerning whether the project is on time, within budget and in
conformance with the contract documents and applicable law.The Inspector General
shall have the power to audit, investigate, monitor, oversee, inspect and review
operations, activities, performance and procurement process including but not limited
to project design, bid specifications,(bid/proposal)submittals,activities of the Grantee,
its officers, agents and employees, lobbyists, City staff and elected officials to ensure
compliance with the contract documents and to detect fraud and corruption. Pursuant
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to Section 2-378 of the City Code, the City is allocating a percentage of its overall
annual contract expenditures to fund the activities and operations of the Office of
Inspector General.
c. Upon ten(10)days written notice to the Grantee,the Grantee shall make all requested
records and documents available to the Inspector General for inspection and copying.
The Inspector General is empowered to retain the services of independent private
sector auditors to audit, investigate, monitor, oversee, inspect and review operations
activities, performance and procurement process including but not limited to project
design, bid specifications, (bid/proposal) submittals, activities of the Grantee its
officers, agents and employees, lobbyists, City staff and elected officials to ensure
compliance with the contract documents and to detect fraud and corruption.
d. The Inspector General shall .have the right to inspect and copy all documents and
records in the Grantee's possession, custody or control which in the Inspector
General's sole judgment, pertain to performance of the contract, including, but not
limited to original estimate files, change order estimate files, worksheets, proposals
and agreements from and with successful subcontractors and suppliers, all project-
related correspondence, memoranda, instructions, financial documents, construction
documents, (bid/proposal) and contract documents, back-change documents, all
documents and records which involve cash, trade or volume discounts, insurance
proceeds, rebates, or dividends received, payroll and personnel records and
supporting documentation for the aforesaid documents and records.
e. The Grantee shall make available at its office at all reasonable times the records,
materials, and other evidence regarding the acquisition (bid preparation) and
performance of this Agreement,for examination, audit, or reproduction, until three(3)
years after final payment under this Agreement or for any longer period required by
statute or by other clauses of this Agreement. In addition:
i. If this Agreement is completely or partially terminated, the Grantee shall make
available records relating to the work terminated until three (3) years after any
resulting final termination settlement; and
ii. The Grantee shall make available records relating to appeals or to litigation or the
settlement of claims arising under or relating to this Agreement until such appeals,
litigation, or claims are finally resolved.
f. The provisions in this section shall apply to the Grantee, its officers, agents,
employees, subcontractors and suppliers. The Grantee shall incorporate the
provisions in this section in all subcontracts and all other agreements executed by
the Grantee in connection with the performance of this Agreement.
g. Nothing in this section shall impair any independent right to the City to conduct audits
or investigative activities. The provisions of this section are neither intended nor shall
they be construed to impose any liability on the City by the Grantee or third parties.
Section 19. Indemnification/Requirements:The Grantee shall indemnify and hold harmless the City, its
officers, employees and agents, from any and all claims, liability, losses and causes of action
which may arise out of an act,omission,negligence or misconduct on the part of the Grantee,
or any of its agents, officers, servants, employees, contractors, patrons, guests, clients,
8
licensees, invitees, or any persons acting under the direction, control, or supervision of
Grantee, pursuant to this Agreement and/or the Program. The Grantee shall pay all claims
and losses of any nature whatsoever in connection therewith and shall defend all suits in the
name of the City,and shall pay all costs(including attorney's fees)and judgements which may
issue thereon. This Indemnification shall survive the termination and/or expiration of this
Agreement.
Section 20. Conflict of Interest: The Grantee covenants that no person under its employ who presently
exercises any functions or responsibilities in connection with Community Development Block
Grant-Coronavirus(CDBG-CV)funded activities has any personal financial interests,direct or
indirect, in this Agreement.The Grantee covenants that in the performance of this Agreement,
no person having such conflicting interest shall be employed. The Grantee covenants that it
will comply with all provisions of 24 CFR 570.611 "Conflict of Interest", and State, County and
City of Miami Beach statutes, regulations, ordinances or resolutions governing conflicts of
interest. The Grantee shall disclose, in writing, to the City any possible conflicting interest or
apparent impropriety that is covered by the above provisions. This disclosure shall occur
immediately upon knowledge of such possible conflict. The City will then render an opinion,
which shall be binding on both parties.
Section 21. Venue: This Agreement shall be governed by, and construed in accordance with,the laws of
the State of Florida, both substantive and remedial, without regard to principles of conflict of
laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami-Dade
County, Florida, if in State court,and the U.S. District Court, Southern District of Florida, if in
Federal court. BY ENTERING INTO THIS AGREEMENT, CITY AND GRANTEE
EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF
ANY CIVIL LITIGATION'RELATED TO, OR ARISING OUT OF,THIS AGREEMENT.
Section 22. Notices:All notices required under this Agreement shall be sent to the parties at the following
address:
City: Economic Development Director
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
With copy to: City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
Grantee: Reynaldo Faust
Fat Ronnie's Sobe LLC
1233 Lincoln Road
Miami Beach, FL, 33139
In the event that the Grantee changes the above-referenced business officer during the term
of the Agreement, such change must be notified in writing to the City within 15 days of such
change.
Section 23. Limitation of Liability: The City desires to enter into this Agreement only if in so doing the
City can place a limit on City's liability for any cause of action for money damages due to an
alleged breach by the City of this Agreement, so that its liability for any such breach never
exceeds the sum of $5,000. Grantee hereby expresses its willingness to enter into this
9
yyi
} Agreement with Grantee's recovery from the City for any damage action for breach of
contract to be limited to a maximum amount of$5,000.
Accordingly, Grantee hereby agrees that the City shall not be liable to Grantee for damages
in an amount in excess of$5,000,for any action or claim for breach of contract arising out of
the performance or nonperformance of any obligations imposed upon the City by this
Agreement. Nothing contained in this subparagraph or elsewhere in this Agreement is in any
way intended to be a waiver of the limitation placed upon City's liability as set forth in Florida
Statutes, Section 768.28.
Section 24. Florida Public Records Law:
a. Grantee shall comply with Florida Public Records law under Chapter 119, Florida
Statutes, as may be amended from time to time.
b. The term"public records"shall have the meaning set forth in Section 119.011(12),which
means all documents, papers, letters, maps, books, tapes, photographs, films, sound
recordings, data processing software, or other material, regardless of the physical form,
characteristics,or means of transmission,made or received pursuant to law or ordinance
or in connection with the transaction of official business of the City.
c. Pursuant to Section 119.0701 of the Florida Statutes, if the Grantee meets the definition
of"Contractor"as defined in Section 119.0701(1)(a),the Grantee shall:
1) Keep and maintain public records required by the City to perform the service;
2) Upon request from the City's custodian of public records, provide the City with a copy
of the requested records or allow the records to be inspected or copied within a
reasonable time at a cost that does not exceed the cost provided in Chapter 119,
Florida Statutes or as otherwise provided by law;
3) Ensure that public records that are exempt or confidential and exempt from public
records disclosure requirements are not disclosed, except as authorized by law, for
the duration of the contract term and following completion of the Agreement if the
Grantee does not transfer the records to the City;
4) Upon completion of the Agreement, transfer, at no cost to the City, all public records
in possession of the Grantee or keep and maintain public records required by the City
to perform the service. If the Grantee transfers all public records to the City upon
completion of the Agreement, the Grantee shall destroy any duplicate public records
that are exempt or confidential and exempt from public records disclosure
requirements. If the Grantee keeps and maintains public records upon completion of
the Agreement,the Grantee shall meet all applicable requirements for retaining public
records. All records stored electronically must be provided to the City, upon request
from the City's custodian of public records, in a format that is compatible with the
information technology systems of the City.
d. Request for Records; Noncompliance
1) A request to inspect or copy public records relating to the City's contract for services
must be made directly to the City. If the City does not possess the requested records,
the City shall immediately notify the Grantee of the request, and the Grantee must
provide the records to the City or allow the records to be inspected or copied within a
reasonable time.
10
2) Grantee's failure to comply with the City's request for records shall constitute a breach
of this Agreement, and the City, at its sole discretion, may: (i) unilaterally terminate
the Agreement; (ii)avail itself of the remedies set forth under the Agreement; and/or
(iii)avail itself of any available remedies at law or in equity.
{
3) A Grantee who fails to provide the public records to the City within a reasonable time
may be subject to penalties under s. 119.10.
e. Civil Action
1) If a civil action is filed against a Grantee to compel production of public records relating
to the City's contract for services, the court shall assess and award against the
Grantee the reasonable costs of enforcement, including reasonable attorneys' fees,
if:
i. The court determines that the Grantee unlawfully refused to comply with the
public records request within a reasonable time; and
ii. At least 8 business days before filing the action, the plaintiff provided written
notice of the public records request, including a statement that the Grantee has
not complied with the request, to the City and to the Grantee.
2) A notice complies with subparagraph(1)(ii)if it is sent to the City's custodian of public
records and to the Grantee at the Grantee's address listed on its contract with the City
or to the Grantee's registered agent. Such notices must be sent by common carrier
delivery service or by registered, Global Express Guaranteed, or certified mail, with
postage or shipping paid by the sender and with evidence of delivery,which may be
in an electronic format.
3) A Grantee who complies with a public records request within 8 business days after
the notice is sent is not liable for the reasonable costs of enforcement.
f. IF THE GRANTEE HAS QUESTIONS REGARDING THE
APPLICATION OF CHAPTER 119, FLORIDA STATUTES,
TO THE GRANTEE'S DUTY TO PROVIDE PUBLIC
RECORDS RELATING TO THIS AGREEMENT, CONTACT
THE CUSTODIAN OF PUBLIC RECORDS AT:
CITY OF MIAMI BEACH
ATTENTION: RAFAEL E. GRANADO, CITY CLERK
1700 CONVENTION CENTER DRIVE
MIAMI BEACH, FLORIDA 33139
E-MAIL: RAFAELGRANADO@MIAMIBEACHFL.GOV
PHONE: 305-673-7411
Section 25. This Agreement shall be binding upon all parties hereto and their respective heirs,executors,
administrators, successors and assigns.
[SIGNATURES TO FOLLOW]
11
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
duly authorized officials on the day and date first above indicated.
Fat Ronnie's Sobe LLC
A Florida Limited Liability Company
ATTEST:
giVt Cie
Secre ry Signature
.6n SY14:-C4 "eei 14-a
0
Print Na Print Name and Title
Ila�
Date
CITY OF MIAMI BEACH, FLORIDA
a Florida municipal corporation
ATTEST:
igna a Si ature
Rafael E.Granado, City Clerk Aline Hudak, City Manager
Date
APPROVED AS TO
FORM & LANGUAGE
il!coRPoRATR%; ; & FOR EXECUTION
• 1
Ci Attorney4:ga
12
EXHIBIT"A"
"SCOPE OF SERVICES"
Statement of Work: Miami Beach Small Business COVID-19 Relief Program
In compliance with 24 CFR 570.503(b)(1), Grantee agrees to provide the following:
Grantee Name: FAT RONNIE'S SOBE LLC
Federal Award
Identification:
DUNS Number:
Federal Award: FY 2020 CDBG-CV Funds
Subaward Period of Retroactive to October 1, 2020 — 12 months following commencement of
Performance: Compliance Period
Budget: $20,000.00
Total Amount of Federal $20,000.00
Funds Obligated:
Federal Awarding U.S. Department of Housing and Urban Development(HUD)
Agency:
Pass-through Entity: City of Miami Beach—Department of Economic Development
Reports Due: Prior to the 10th of every month starting the month after contract execution:
• Progress
• Accomplishments
• Financial
Limited Clientele: At least one employee must qualify as low—to moderate— income clientele
as proven by the income qualifications.
Service Location: Miami Beach
Program: Miami Beach Small Business COVID-19 Relief Program activities, including
employment of one(1)low-income Miami Beach employee
Deliverables: • Quarterly reporting
Benchmarks: • Employment and/or retention of at least one (1) qualified employee or
microenterprise owner
Quarterly Disbursement Request. Grantee may request reimbursement of"qualified business expenses",
as defined herein, in an amount of up to the Grant Amount of $20,000, by submitting detailed expense
records and the required documentation listed in Exhibit "B". Grantee may submit multiple receipts for
reimbursements, up to the Grant Amount. As referred to herein, "qualified business expenses" shall mean
any operational costs such as payroll, utilities, rents, or mortgage interest (for business accounts in
existence as of at least October 1, 2020), etc. and/or COVID-19 related expenditures. The City will issue
payment to Grantee within thirty (30) days from the date the City receives, in complete form, the required
documentation to verify that the expenses requested are eligible for reimbursement under the Program.
Employee Status and Retention Requirement. As consideration for receipt of the Grant Amount, Grantee
agrees, to hire and/or retain a qualified employee, as defined herein, during the 12-month Compliance
Period, under either one of two eligibility categories:
Category A Criteria: Microenterprise. The Microenterprise must be located within the City of
Miami Beach. The Microenterprise business must have five (5) employees or less (a
"Microenterprise"is defined as a commercial enterprise that has five or fewer employees, one or
more of whom owns the enterprise). The household of the owner of the Microenterprise business
earns at or below 80%AMI and the owner does not need to be paid as an employee or be included
in the payroll register. As long as the Microenterprise business is validly registered and based in
the City of Miami Beach, the business qualifies for Miami Beach residency and the business owner
14
in the payroll register. As long as the Microenterprise business is validly registered and based in
the City of Miami Beach, the business qualifies for Miami Beach residency and the business owner
is not required to reside in the City of Miami Beach. Before applying under Category A
(Microenterprise), the business owner MUST verify that the business owner meets the income
requirement.
Category B Criteria: Small Business—Job Creation/Retention. The Small Business must be
located within the City of Miami Beach.The Small Business must have ten (10)employees or less
(a "Small Business" is defined as a commercial enterprise that has ten or fewer employees.) To
participate,the Small Business must have the ability to retain/create one full time job,for a minimum
of twelve(12) months, for an employee that resides in a Miami Beach household earning no more
than 80%area median income(AMI).The retained or created fulltime job may be a combination of
multiple part-time jobs. Before applying under Category B-Job Creation/Retention, the business
owner MUST verify that it has an employee, or is reasonably able to hire an employee within 90
days from receipt of funding, whose household meets this income requirement.
*Please see Program Terms below for explanation of 80%AMI.
Due Date for Employee Documentation. As indicated above, for Category A (Microenterprises), evidence
that the Grantee owner qualifies as a Microenterprise must be provided at the time of application and for a
"Compliance Period" of twelve (12) months commencing at award of Funds. For Category B (Small
Businesses), if Grantee already employs a qualified employee at the time of application, award, and.
expense reimbursement, Grantee must submit required employee documentation with the application and
Quarterly disbursement request. Otherwise, for Small Businesses qualifying under Category B (Small
Businesses) without an existing qualified employee, within ninety (90) days following receipt of
reimbursement funds,Grantee must create a job for a qualified employee and submit the required employee
documentation.
Compliance Period. In order to satisfy the Program Requirement of job creation/retention, the twelve (12)
month Compliance Period begins only upon the City's verification of employment of the qualified employee:
o For a business retaining an existing qualified position, i.e. either the Microenterprise business
owner or a Small Business with an existing qualified employee that will be retained,the qualified
position must be retained for a period of twelve (12) months following initial receipt of
reimbursement Funds(the Compliance Period).
o If a Small Business must create a qualified employee position in order to satisfy the Program
Requirement, the Small Business must create or fill the new employee position within ninety
(90) days from receipt of initial reimbursement Funds. The newly created position must be in
place for twelve(12) months following creation(the Compliance Period).
For both Category A (Microenterprise) and Category B (Small Businesses), a "qualified employee", as
referenced herein, shall mean a fulltime employee that is a U.S. citizen or legal resident and whose
household earns at or under 80%AMI. In addition:
o For Microenterprises, the qualified employee must be the business owner. For
Microenterprises only, the qualified employee (business owner) is NOT required to reside in
the City of Miami Beach.
o For Small Businesses,a qualified employee is considered a full-time employee if retained at 40
hours per week, or any combination of part-time positions combining for 40 hours per week.
o For Small Businesses,the employee must be a U.S.citizen or legal resident,and the employee
must also reside in the City of Miami Beach.
Low Income Employee.HUD's income limits are based on Median Family Income estimates and Fair Market
Rent area definitions for the Miami-Dade County metropolitan area. Low income is defined as earning 80%
of the median family income for Miami-Dade County.The 2020 income limits applicable for the household
of the employee of the applicant business are:
14
Household 1-Person 2-Person 3-Person 4-Person 5-Person 6-Person 7-Person 8-Person
Size
Low-
Income $51,200 $58,500 $65,800 $73,100 $78,950 $84,800 $90,650 $96,500
(80%)AMI
At the conclusion of the 12-month Compliance Period, the business must verify compliance by submitting
payroll documentation. If Grantee is unable to prove compliance, then Grantee shall repay the Funds to
the City, immediately, upon receiving a demand for payment. Grantee will not be required to repay the
Funds to the City, if the Grantee, throughout the Compliance Period retains or creates one (1) full-time
employee that resides in a low-income City of Miami Beach household.
Duplication of Benefits. To comply with HUD regulations, the City shall require the Grantee to complete a
Duplication of Benefits form, a copy of which is incorporated herein by reference and attached hereto as
Exhibit A-1,as a method of assessing whether the use of CDBG-CV funds will duplicate financial assistance
that is already received or is likely to be received for COVID-19 related losses. By accepting these CDBG-
CV Funds,Grantee agrees to repay any portion of the Funds determined by the City to be duplicative Funds.
Applicable Rules and Regulations:
1. Environmental Review:
In compliance with 24 CFR 570.604 Environmental Standards, the City is responsible for undertaking
Environmental Reviews in accordance with the requirements imposed on"recipients" in 24 CFR 58.
The Program is an Economic development activity, and therefore, it falls under Categorically
Excluded Activity not subject to 24 CFR 58.5. Pursuant to 24 CFR 58.35(b)(4) that states that the
Program is a categorically excluded activity that would not alter any conditions that would require a
review or compliance determination under the Federal laws and authorities cited in§ 58.5.
2. Compliance with National Obiective
At least 51%of the City's Program Grantees must be low-to moderate-income individuals,therefore,
each Grantee is responsible for employing and/or retaining at least one (1) low-income qualified
employee during the Qualification Period or the microenterprise owner must be a low-to moderate-
income individual.
Income Verification
Grantee will follow the guidelines provided by 24 CFR Part 5.609,Annual Income to ensure eligibility
of Program participants; maintain evidence that activities assisted with CDBG-CV funds comply with
the primary National Objective, "Benefit to Low- and Moderate- Income Persons" and provide
services or activities that benefit at least 51% low- and moderate-income persons. A low- or
moderate-income household is defined as: a household having an income equal to or less than the
limits cited below based on the unit size.
The City recommends using the CDP Income Eligibility Calculator provided at
https://www.hudexchange.info/incomecalculator/ to determine Household eligibility. This form
contains all the required certifications and warnings. It should be noted that the City does not allow
the use of a self-certification approach to income documentation.
Low-Income Household Limits
HUD Low-Income(80% of Median Income)for FY2020
Household 1-Person 2-Person 3-Person 4-Person 5-Person 6-Person 7-Person 8-Person
Size
Low-
Income $51,200 $58,500 $65,800 $73,100 $78,950 $84,800 $90,650 $96,500
(80%)AMI
15
3. Evaluation
In its continuing effort to ensure contract compliance and performance, the City will evaluate the
Grantee in its fulfillment of the terms of this Agreement including, but not limited to, the following
measures:
• Agreement compliance
' • Accuracy and timeliness of Quarterly Reports
• Adherence to Program timelines and Technical Assistance and Grantee Instructions
• Fulfillment of prescribed outcomes
4. Monitoring & Performance Reviews
In compliance with 2 CFR 200.331(d) and (e), the City reserves the right to inspect, monitor and/or
audit the Grantee, at least once a year, to ensure contractual compliance. City will notify Grantee a
minimum of three(3)business days prior to a monitoring visit.
16
EXHIBIT"B"
}
"Documentation"
The Grantee agrees to provide the following documents as part of its reporting requirements:
To document Employee Retention or Microenterprise Requirements:
• Income Verification forms must include:
o Name
o Date of birth
o Employee's Miami Beach address
o Demographic information as required in the CDBG-CV Income Verification Form
o Verify information on family size and income so that it is evident that the household's family
income does not exceed the low and moderate income limit.
• Annual income is the gross amount of income anticipated by all adults in a family during
the 12 months following the effective date of the determination.
To calculate annual income, the Grantee may choose among definitions of income,
listed below; however, the same income definition must be used for all Grantees.
o Annual income as defined under the Section 8 Housing Assistance Payments
Program (24 CFR 5.609);
o Adjusted gross income as defined for purposes of reporting under IRS Form
1040(long form)for Federal individual income tax purposes.
• To determine if program applicants are income-eligible,Grantees have several options:
a) Obtain evidence that the household/person assisted qualified under another
program having income qualification criteria at least as restrictive as that used in
the definitions of LMI household/person, such as public housing and welfare
programs; or
b) Obtain evidence that the assisted person is homeless; or
c) Obtain a verifiable certification from the assisted person that his/her family
income does not exceed the applicable income limit according to the definition
of income under 24 CFR 570.3:
o Estimate the annual income of a family or household by projecting the
prevailing rate of income of each person at the time assistance is provided for
the individual,family, or household(as applicable). Estimated annual income
shall include income from all family or household members, as applicable.
1. Obtain verification of employment for each household member over the
age of 18 by obtaining one of the following, as appropriate:
a. Proof of entitlement payments; and/or
b. Three (3) most current pay-stubs for those who are employed;
and/or
c. Verification of Self-Employment Tax Deposits for those who are
self-employed.
2. Obtain verification of financial assets for each household member over the
age of 18 obtaining, as applicable, the following documents:
a. The last 30 days of saving account statements;
b. The last 30 days of checking account statements; and
c. The last 30 days of mutual funds accounts
3. In the event that a household member over the age of 18 does not have
employment or financial assets, he/she must complete and notarize the
proper affidavits and submit with the application package.
• Any additional documents as requested by the City, including:
o City of Miami Beach 2021 Business Tax Receipt, in paid status
o City of Miami Beach 2020 Business Tax Receipt, reflecting that the busines was or
became operational prior to October 1, 2019
17
To document expenses incurred:
Supporting documents to be submitted with the Quarterly Report are as follows:
• Salary related expenses:
o Electronic payroll ledgers with corresponding bank transactions (statement)
o Cancelled checks(copy of both sides)
o Form 941 — Employer's Quarterly Federal Tax Return
o Unemployment payment
o Any additional documents as requested by the City
• Fringe Benefits related expenses:
o Bank statements, invoices, and OR proof of payment with back-up documentation
acceptable to the City
o Worker's Compensation invoice, policy and cancelled check
o Any additional documents as requested by the City
18
EXHIBIT"C"
"Financial Management"
To comply with Federal regulations,each program must have a financial management system that provides
accurate, current and complete disclosure of the financial status of the activity. This means the financial
system must be capable of generating regular financial status reports which indicate the dollar amount
allocated for each activity(including any budget revisions),amount obligated(i.e.,for which contract exists),
and the amount expended for each activity.The system must permit the comparison of actual expenditures
and revenues against budgeted amounts. The City must be able to isolate and to trace every CDBG-CV
dollar received and prove where it went and for what it was used.
The City is responsible for reviewing and certifying the financial management of any operating agency,
which is not a City department or bureau, in order to determine whether or not it meets all of the above
requirements. If the agency's system does not meet these requirements and modifications are not possible,
the City must administer the CDBG-CV funds for the operating agency.
Support for Expenditures
Sufficient support for expenses depends on the type of expenditure, including the following items:
• Salaries-Should be supported by proper documentation in personnel files of hire date, position,duties,
compensation, and raises with effective date, termination date, and similar type information. Non-
exempt employees are required by law to complete a timesheet showing number of hours they worked
during the day. All employees paid in whole or in part from CDBG-CV funds should prepare a time
sheet indicating the hours worked on CDBG-CV projects for each pay period. Based on these time
sheets and the hourly payroll costs for each employee,a voucher statement indicating the distribution
of payroll charges should be prepared and placed in the appropriate files.)
• Employee Benefits-Should be supported by personnel policies and procedures manual, describing
the types of benefits, eligibility, and other relevant information.)
• Professional Services-Should be supported by a complete and signed copy of the contract between
the Grantee and the independent contractor, describing at the minimum, period of service, type of
service and method for payments, in addition to the invoice from the private contractor.
• Purchases - At a minimum, purchases should be supported by a purchase order, packing list and
vendor invoice. Credit card statements, travel itineraries, vendor statements and similar items do not
represent support for an expense.
Records
Accounting records must be supported by source documentation. Invoices, bills of lading, purchase
vouchers, payrolls and the like must be secured and retained for five (5) years in order to show for what
purpose funds were spent. Payments should not be made without invoices and vouchers physically in hand.
AD vouchers/invoices should be on vendor's letterhead. Financial records are to be retained for a period of
five(5)years,with access guaranteed to the City, to HUD or Treasury officials or their representative.
Audits
Grantee shall adhere to the following audit requirements:
Audits for Federal Awards under$750,000 in a fiscal year.
If the Grantee expends less than$750,000 in the fiscal year in Federal awards it is exempted from Federal
audit requirements for that year and consequently the audit cost is not a reimbursable expense. The City,
however, may request the Grantee to have a limited scope audit for monitoring purposes. These limited
scope audits will be paid for and arranged by the City and address only one or more of the following types
of compliance requirements: activities allowed or disallowed; allowable costs/cost principles; eligibility;
matching, level of effort, earmarking; and, reporting.
All reports presented to the City shall, where applicable, include sufficient information to provide a proper
perspective for judging the prevalence and consequences of the findings, such as whether an audit finding
represents an isolated instance or a systemic problem. Where appropriate, instances identified shall be
related to the universe and the number of cases examined and quantified in terms of dollar value.
19
EXHIBIT"D"
"Quarterly Report Forms"
20