HomeMy WebLinkAboutOIG Annual Report 2025
“A popular government without popular information or the means of
acquiring it is but a prologue to farce or tragedy or perhaps both.”
- James Madison
OFFICE OF THE INSPECTOR GENERAL
Annual Report 2025
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Joseph M. Centorino
Inspector General, City of Miami Beach
The City of Miami Beach Office of the Inspector General (OIG) has
been in existence for just over six years since its inception in 2019. It
has been our mission to provide independent oversight of City
operations and expenditures. We have worked constantly to fulfill the
mandate from City residents to protect and defend the independence
of the office they created free from partisanship or political influence.
The OIG was born out of public concern following incidents of serious
corruption within the City government prior to 2018. We are proud to
report that there has been no significant corruption scandal in the City
since the OIG began its work. We believe that our presence and
oversight have contributed to this record of public integrity, but we also
recognize that the tone set at the top by elected City officials and City
Managers has been essential to that success. We also understand
that continuous vigilance is required to maintain a strong record
of integrity.
Our fragile democracy needs the continuous reinforcement of active
citizen engagement and professional public servants at all levels. Our
investigative and audit functions, as well as our public outreach and
involvement in the cultivation of an ethical, service-oriented, City
workforce, are designed to support and expand the City’s commitment
to excellence and integrity.
OIG oversight generated important information and useful managerial
recommendations during the past year that are outlined in this annual
report. Among them were an Internal Audit assessment of $661,806
on the City’s lease of its property to the Miami Beach Marina; a Resort
Tax assessment of $671,178 on the Fontainebleau Hotel (which has
been paid by the hotel); and reviews of wasteful practices involving
the City’s relocation of Fire-Station #1 and the no-bid contract for water
taxi service with Poseidon LLC.
We are always accessible to any City employee, resident, or business
owner who may have important information to contribute to our efforts.
Call our office (305-673-7020); use our 24-hour confidential hotline
786-897-1111; email us at CityofMiamiBeachOIG@miamibeachfl.gov;
visit our website at www.mbinspectorgeneral.com, or stop by our
office in person at 1130 Washington Avenue, 6th floor. We welcome
your input!
Sincerely,
Joseph M. Centorino
Along The
Waterfront
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OIG ORGANIZATIONAL CHART
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OIG STAFF MEMBERS
AUDIT DIVISION
Chief Auditor
Norman Blaiotta
Deputy Chief Auditor
Susan Andrews
Senior Audit Staff
Internal Auditors
Senior Internal Auditor
Jessica Romero Losada
Internal Auditor
El Mostafa Achar
Internal Auditor
Martina Aymar
Resort Tax Auditor/Supervisor
Thania Thielen
Resort Tax Auditor
Yorney Sanchez
Tax Auditors
Resort Tax Auditor
Tatiana Lopes
Resort Tax Auditor
Alfredo Mojena
Resort Tax Auditor
Raffi Olivo
Sanitation Fee Auditor
Julia Morales
INVESTIGATIVE DIVISION
Investigator
Jani Singer
Investigator
Dylan Hughes
Contract Oversight Specialist
Jill Klaskin Press
Executive Assistant/Office Manager
Elisa Alonso
Support Staff
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LEGISLATIVE INITIATIVES
Predatory Practices in Condominium Buyouts
In response to complaints from Miami Beach condominium owners alleging high-pressure and
misleading practices used by some developers attempting to secure control over condominium
buildings for demolition or redevelopment, the OIG reviewed some of these practices and researched
possible solutions. The OIG found that this issue has become a matter of great public concern in Miami
Beach.
An OIG report issued during 2024 documented the threat felt by many residents about unfair and
abusive tactics that could deny them a reasonable opportunity to retain ownership of their homes. The
report recommended that the City consider legislation, similar to one adopted in the City of Chicago, to
limit repeated, unsolicited attempts to contact homeowners and to prohibit express or implied threats
to coerce them to sell their units against their will.
Following the OIG Report, the City Commission acted favorably on several ground-breaking ordinances
proposed by Commissioner Alex Fernandez, with the assistance of the City Attorney’s Office, to prohibit
predatory practices in condo buyouts, to require notice of them to unit owners, and other protections
that should serve as a shield against such predatory practices for vulnerable condo owners.
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“RED FLAG” ORDINANCE
Much of the OIG’s oversight work involves lengthy audits or investigations requiring significant research
and analysis. Reports are often delayed due to notice requirements to parties affected by findings in
the reports and inclusion of their responses and OIG replies to their responses in the final reports.
There are times, however, when the OIG has acquired important information prior to finalizing its work
that, if known, could affect actions taken by the City Administration and/or City Commission.
A “Red Flag” Ordinance prescribing methods for providing the City’s decision-makers with pertinent
information on pending OIG matters was passed by the Commission with the intent of more fully utilizing
the OIG’s mission and to maintain the public trust. The measure, sponsored by Commissioner Alex
Fernandez, provides for OIG input on potential legal or procedural violations, alerts to possible negative
impacts involving waste, fraud, abuse or inefficiency, and responses to inquiries where such information
can be transmitted without interfering with the OIG’s independence or the need for confidentiality.
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MIAMI BEACH OFFICE OF THE INSPECTOR GENERAL
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PUBLIC OUTREACH
Public Outreach
The OIG is committed to transparency, public information,
and citizen engagement in fulfillment of its mission.
Public reports are provided on the OIG website
(www.mbinspectorgeneral.com) and provided to appropriate
City officials, staff, and community stakeholders. The OIG
has an “open door” policy, inviting walk-in complaints along
with an assurance of confidentiality when requested.
The Inspector General regularly addresses newly hired City
employees at orientation sessions, emphasizing the City’s
strong ethics code provisions and acquainting new
employees with OIG functions and whistleblower protections.
During 2025, the Inspector General was an invited speaker
at the Association of Inspectors General (AIG) Annual
Training Conference in San Diego (Topic: Unsealing the
Truth: Lies, Perjuries, and Polygraphs) and at the Annual
Southeastern Conference for Public Administration
(SECoPA) held in Coral Springs (Topic: Public Service
Ethics: More Than The Minimum).
The Inspector General again appeared before upper-class
students at Miami Beach Senior High to speak about the
importance of civic engagement, along with County
Commissioner Micky Steinberg, for the annual Ethical
Governance Day event sponsored by the Miami-Dade
Commission on Ethics and Public Trust and Miami-Dade
County Public Schools.
The IG and OIG staff members are available to appear in
person to speak at any local meeting of resident, business, or
other community groups upon request.
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THE SURVEY SAYS…
Ethics Survey Background
The OIG collaborated during 2025 with the Miami-Dade Commission on Ethics and Public Trust (COE)
to conduct an ethics survey of City regulatory employees working in departments deemed most
susceptible to ethical compromise. 209 employees from the Building, Code Compliance, Finance, Fire
Prevention, Parking Enforcement, Planning and Procurement departments were interviewed
confidentially by COE staff with the support and cooperation of the City Administration.
The 2025 survey was a follow-up to two prior surveys, conducted by the COE during 2013 and 2016,
which included 15 identical objective questions aimed at gauging the overall attitudes, perceptions, and
opinions of those employees regarding City ethics, controls over corruption and misconduct, and their
confidence in the integrity of their peers and managers.
The original 2013 survey was conducted in the wake of a series of serious corruption cases at that time
involving City personnel and the recognized need to restore public trust in City government. It was
conducted in connection with a unique and intensive ethics training program conducted in person during
2013 under a mutual agreement between the City and the COE and continued annually by the City in an
abridged and recorded format after 2013, until it was suspended in 2020 during COVID-19.
Survey Results and OIG Recommendation
The results of the 2025 survey were mixed. They showed that most of the substantial, across-the-board
improvements in employee perceptions that occurred between the 2013 and 2016 surveys, which had
been attributed in large part to the original 2013 special ethics training program and the continued annual
abridged program, had been maintained during the years following 2016. The most positive indicator in
the 2025 survey showed continued reduction in the percentage of employees reporting bribery attempts:
27% in 2013, 21% in 2016, and 15% in 2025.
However, most other ethical indicators in the latest survey showed either a rough parity between the 2016
and 2025 survey results or some reduction in ethical standards during that period. It is believed that the
stagnation in ethical improvement and its possible diminishment, as measured in the survey results, may
be related to the 2020 suspension of the program.
To address this concern, the OIG issued a recommendation for the renewal of the special ethics program
for regulatory employees, which was endorsed by the City’s Audit Committee. Following release of the
2025 OIG report and the Audit Committee’s action, a Commission Resolution to restart the program was
introduced by Commissioner Alex Fernandez and is pending approval by the Commission.
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INTERNAL AUDIT REPORTS
City of Miami Beach Marina Lease Agreement Audit
This major contract compliance audit covered the City’s long-term Marina Lease with Miami Beach Marina
Associates (MBMA) during the 2022 calendar year. The OIG found significant underreporting of gross
receipts by the Marina operator, resulting in an estimated underpayment to the City of $661,806, plus
penalties and interest. The audit identified improper exclusions of sublessee expense reimbursements
and related party rental income, underreported parking revenues, and noncompliance with annual
reporting and BTR requirements by the Marina and its subtenant businesses. Additionally, some boat
clubs were found to be operating with more than five wet slips without City Manager approval, and
dockage rate increases were also not properly approved, resulting in overbilling.
The OIG recommended enhanced oversight, more frequent audits, and corrective billing for
discrepancies. The report also zeroed in on the need to renegotiate woefully outdated fuel sales
compensation terms deemed by the OIG to be unfair to the City, which have been frozen at 2 cents per
gallon since the early 1980s. Those terms left the City with only $28,000 (.4%) of the Marina’s total fuel
and diesel sales of $7,076,674 during the one-year audit period. A fair adjustment of those terms to
account for inflation and rising fuel prices since 1983 would have brought substantial revenue to the City.
The release of this report coincided with the Marina’s attempt to negotiate a further extension of its lease
in exchange for its addressing neighborhood concerns over its operations and has resulted in a
suspension of those negotiations. The OIG recommended that the City’s Asset Management Division
strengthen contract compliance monitoring and update lease terms whenever possible to protect the
City’s interests.
Insurance Compliance Controls in BTR Renewals
This audit examined insurance compliance controls in the City’s process for renewal of Business Tax
Receipts (BTRs), which permit private businesses to operate in the City. The OIG found that the City’s
review of compliance by businesses with insurance coverage requirements in renewing their BTRs lacked
verification of continued coverage, resulting in some businesses failing to meet City insurance
requirements while holding active BTRs.
The OIG recommended that holds be placed on BTR renewals until proper insurance coverage is
confirmed, and that businesses be required to upload Certificates of Insurance (COIs) during the renewal
process. Risk Management staff should review COIs for compliance before releasing the holds. In
response to the audit, the City Administration agreed to automate the insurance review process by July
2025, integrating COI uploads and approvals into the BTR renewal workflow. For the future, the OIG
recommended updating system modules, training applicants and staff, and granting Risk Management
access to the tools necessary to ensure compliance and operational integrity.
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State Beachfront Management Agreement Audits
2022-23 Operational Audit
The OIG audited the revenues collected by the City from concessionaires for the use of State-owned
beachfront property subject to the State Beachfront Management Agreement for the 2022-23 fiscal year
and beachfront concession fees billed by the City for the 2023-24 fiscal year. The audit assessed the
accuracy and completeness of all taxable transactions, upland and concession fee billing, and
compliance with agreement terms. Findings included underreporting of revenue by Penrod Brothers,
Inc., resulting in a $404 underpayment to the City and a $101 shortfall to the State. The OIG found that
the City’s Asset Management Division also applied incorrect sales tax rates to the transactions, leading
to overbilling by the City totaling $3,262 to Boucher Brothers and excess payments to the State.
The report recommended improved oversight, periodic reconciliations, and automated tax rate
verification to prevent future errors. Management responses indicate corrective actions, including
issuing credits and coordinating refunds with the State. The audit underscores the importance of
accurate financial controls to safeguard City and State revenues.
2022-23 Financial Audit
A financial audit was conducted of the City’s compliance with the State Beachfront Management
Agreement for the 2022-23 fiscal year. The agreement requires the City to remit a 25% “sand tax” of
all monies collected from concessionaires for the use of State-owned beachfront property to the Florida
Department of Environmental Protection. The audit reviewed payments from various beachfront
property users, including concession operators, hotels, apartments, condominiums, and special event
organizers. During the audit period, the City remitted four quarterly sand tax payments totaling
$887,909 to the State. The OIG determined that the City accurately calculated and timely remitted all
required sand tax payments, fully complying with the agreement’s terms for the period under review.
2023-24 Operational Audit
The OIG audited the revenues collected by the City from concessionaires for the use of State-owned
beachfront property subject to the State Beachfront Management Agreement for the 2023-24 fiscal year
and beachfront concession fees billed by the City for the 2024-25 fiscal year. The audit assessed the
accuracy and completeness of all taxable transactions, upland and concession fee billing, and
compliance with agreement terms.
From the $3.7 million in revenues from concessionaire operator fees, beachfront concession permits,
special event permits, and vehicle beach access fees, the audit identified issues with beachfront
concession permit fees. Specifically, the City underbilled some concessionaires by $48,932 and
overbilled others by $30,982.
From an organizational standpoint, additional deficiencies included incomplete concessionaire
applications (25% of those tested) and a high number of voided invoices (34%), primarily due to
outdated fee schedules that had not been updated in the City’s Energov system. The OIG
recommended stronger internal controls, automated billing validations, standardized checklists, staff
training, and improved coordination between Facilities and IT.
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2023-24 Financial Audit
A financial audit was conducted in compliance with the State Beachfront Management Agreement for
the 2023-24 fiscal year. The agreement requires the City to remit a 25% “sand tax” of all monies
collected from concessionaires for the use of State-owned beachfront property to the Florida
Department of Environmental Protection. The audit reviewed payments from various beachfront
property users, including concession operators, hotels, apartments, condominiums, and special event
organizers. During the audit period, the City remitted four quarterly sand tax payments totaling
$1,040,666 to the State. The OIG determined that the City accurately calculated and timely remitted all
required sand tax payments, fully complying with the agreement’s terms for the period under review.
Annual Bank Account Reconciliations
This OIG annual review evaluated the City Finance Department’s process for completing and approving
monthly bank reconciliations during the 2024/25 fiscal year. On average, the Finance team reconciled
35 bank accounts each month. Internal procedures require that all bank accounts be reconciled and
approved monthly, with specific accounts such as the Pooled General Depository and City Golf Clubs
allowed up to 45 days for completion due to additional closing requirements.
The OIG selected five months for testing—August, October, and November 2024, and January and
June 2025—and reviewed all related documentation provided electronically. Focusing on procedural
compliance, the audit confirmed that reconciliations for the selected months were completed and
approved in a timely manner by the appropriate Finance Department staff. Overall, the Finance
Department demonstrated adherence to its internal procedures, effective oversight, and timely
detection of errors in City bank accounts.
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RESORT TAX AUDITS
The OIG Resort Tax Audit Division performs audits of resort tax compliance by businesses providing
food, beverage, or short-term rentals in the City. Audits verify accurate revenue reporting and tax
remittance on 2% of taxable food and beverage receipts and 4% of taxable lodging revenues.
During the 2024/2025 Fiscal Year, OIG Resort Tax Auditors completed 146 audits, resulting in net
assessments of $3,913,682. Of these, 32 audits of annual filers led to $141,674 in assessments, while
114 audits of monthly filers resulted in $3,772,007 in assessments, including estimated assessments
for non-cooperative taxpayers who failed to provide required records.
The OIG’s work provides additional revenue for the City and upholds compliance with resort tax
regulations. The OIG’s role is limited to auditing, with enforcement or settlement of OIG assessments
handled by the City Finance Department. Unpaid assessments may result in property liens for up to 20
years against delinquent taxpayers.
Included within the resort tax assessments listed above is an audit assessment leading to the
City’s recovery of $671,178 for resort taxes owed by the Fontainebleau Hotel. This recovery is
the largest ever made based on a Miami Beach resort tax audit.
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WASTE HAULER AUDITS
The OIG conducts financial audits of private waste haulers operating in the City under the supervision
of the City Sanitation Division, from which the City collects revenue in three areas of operation:
1) An exclusive single-hauler residential waste collection system for single-family and multi-unit
residences up to 8 units, currently held by Waste Connections of Florida, Inc. The City receives a
service fee of $16.44 per unit per month for single-family residences and $12.01 per unit per month for
multi-family residences.
2) A non-exclusive multi-hauler franchise system for commercial and multi-unit residences over 8 units,
currently with two haulers, Waste Connections of Florida, Inc. and Waste Management, Inc. These
haulers pay 20% of their gross receipts plus a 2% Public Right-of-Way fee and a 2% Sustainability Fee,
totaling 24% in fees under franchise agreements with the City.
3) Numerous Construction and Demolition (C&D) debris haulers holding Sanitation Fee permits and
accounts with the City. Haulers must have permits to operate and pay the City a Sanitation Fee
equivalent to 20% of gross revenues. C&D haulers were formerly referred to as Roll-Off contractors
which changed when the City Commission adopted a proposal by Commissioner Tanya Bhatt in 2024,
clarifying its Sanitation Ordinance and ensuring that all C&D contractors remit fees to the City
regardless of the type of containers used to collect debris. This change has brought additional revenue
to the City.
Note: There is currently a proposal pending before the City Commission which, if passed, would raise
the 8-unit limit for multi-family units under the residential system (#1 above) to 16 units, thereby limiting
the multi-hauler franchise system (#2) to residences over 16 units.
As detailed on the next page, during 2025 the OIG performed detailed audits on both franchise haulers
in #2 above and two audits on C&D haulers (#3).
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Franchise Hauler Audits
Waste Management, Inc. Audit
An internal audit was conducted in compliance with the Non-Exclusive Franchise Waste
Contractor Agreement and the associated Service Agreement for Waste Management of
Florida, Inc., covering the period from January 1, 2022, to December 31, 2024. Key findings
included:
1. Uncollected Late Fees: Eleven late payments totaling $32,720 in penalties and interest
were identified. The Finance and Sanitation departments failed to bill Waste Management
for these delays.
2. Sustainability Fees Overcharged: Waste Management incorrectly included temporary
C&D container revenues in sustainability fee calculations, resulting in customers being
overcharged $89,266 .
3. Right-of-Way Fees Underbilled: Permanent roll-off container revenues were excluded
from right-of-way fee calculations, leading to a $99,193 underpayment.
4. Non-Compliant Contamination Audits: Contamination audits required to be performed
by the franchisee to distinguish exempt recycling material from taxable waste lacked
quantifiable data and documentation, raising concerns about unreported revenues.
Recommendations included improved billing practices, clearer contractor education, and
quality review processes for contamination audits performed by the franchisee. Implementation
of corrective action is scheduled for June 30, 2026.
Waste Connections of Florida, Inc. Audit
The OIG audited Waste Connections of Florida, Inc. for the period January 1, 2022, through
December 31, 2024. The audit evaluated compliance with the Non-Exclusive Franchise Waste
Contractor Agreement and the associated Service Agreement. Key findings included:
1. Uncollected Late Fees: Five late payments resulted in $72,372 in unbilled penalties
and interest due to lack of enforcement by the Finance and Sanitation departments.
2. Sustainability Fees Overcharged: Waste Connections incorrectly included C&D
container revenues in sustainability fee calculations, resulting in customers being
overcharged $57,356.
3. Questionable Exempt Amounts: $6,066,253 in claimed exemptions lacked
documentation to confirm they were related to recycling, raising concerns about
underreported revenues.
4. Non-Compliant Contamination Audits: Contamination audits required to be
performed by the franchisee to distinguish exempt recycling material from taxable waste
failed to meet contractual standards lacked signatures, quantifiable data, and lists of
non-compliant accounts.
Recommendations included stricter billing enforcement, improved documentation of recycling
activities, and quality review processes for contamination audits performed by the franchisee.
Implementation of corrective action is scheduled for June 30, 2026..
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C&D Sanitation Fee Audits
Eastern Waste Systems Inc. Sanitation Fee Audit
This audit reviewed the compliance of Eastern Waste Systems, Inc. (EWS) with City regulations
regarding payment of Sanitation Fee revenues for the collection of C&D debris from March 1, 2019,
through July 31, 2021. The OIG examined whether EWS properly obtained BTRs, maintained required
insurance, filed accurate monthly and annual reports, and remitted Sanitation Fees in accordance with
the City Code. [Note: EWS ceased operations in the City in July 2021, becoming part of Coastal Waste
& Recycling].
The audit found that, while EWS obtained necessary permits and submitted required reports, its use of
dual accounting systems led to discrepancies between its monthly sales reports ($2.3 million) and its
revenue reports to the City ($2.7 million). Since reports to the City showed higher gross receipts, no
additional tax was assessed. The OIG recommended that contractors report sales as incurred, not
when payments are received, to ensure consistency in future filings. The report emphasized the need
for accurate, timely reporting and adherence to City regulations.
Double Waste Service Inc. Sanitation Fee Audit
This audit examined the compliance of Double Waste Service, Inc. (DWS) with City regulations
regarding submission of Sanitation Fees for the collection of C&D debris from August 1, 2018, through
May 31, 2021. The OIG determined whether the contractor properly obtained BTRs, filed accurate
monthly reports, and remitted the required fees per City Code.
The audit found that DWS, instead of remitting 20% of gross receipts to the City, submitted only 18%
on certain jobs and failed to remit any fees from collection on three invoices. These discrepancies
resulted in unpaid permit fees totaling $742, including penalties and interest. The OIG recommended
immediate corrective action to ensure proper application of the prescribed rate and timely fee
remittance. The audit also confirmed that the contractor eventually provided all necessary
documentation after initial delays and highlighted the importance of accurate calculations and
compliance with City regulations to avoid financial penalties.
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INVESTIGATIONS
AND REVIEWS
The OIG Investigative Unit conducts investigations,
reviews, and inspections of City operations,
programs, and expenditures. These may be opened
at the discretion of the OIG but are often prompted by
complaints or requests from the City’s elected or
appointed officials, residents, or businesses. They
range from brief inquiries to formal investigations and
may include use of the OIG subpoena power to obtain
witness testimony or records. The individual providing
the information may choose to remain anonymous.
Many investigations result in reports to the City
Commission, while some may be handled less
formally, depending on the nature of the information
provided and the findings of the investigation. Upon
closure, all such actions are documented and
available as public records.
Criminal matters are handled jointly with a law
enforcement agency. When ethical violations are
found, the OIG may file an ethics complaint with the
Miami-Dade Commission on Ethics and Public Trust
for enforcement under the Miami-Dade County Ethics
Code. Findings of employee misconduct or
management issues may be referred to the City
Administration or to City Department heads for
appropriate action.
The following summaries include matters of
significance that were closed by the OIG with findings
forwarded to the City Commission during 2025.
Investigation of Community
Development Block Grant –
Coronavirus Funds Recipient
This investigation found that Early Childhood Quality
Consultants, LLC (ECQC) fraudulently obtained a
$10,000 grant through the City of Miami Beach Small
Business COVID-19 Program. ECQC made false
representations in its Duplication of Benefits Affidavit,
which was required to confirm that the federal
Paycheck Protection Program (PPP) loan funds
ECQC had previously received had been fully
expended before receiving the City grant. However,
bank records showed that the funds remained
untouched in a separate account until two years after
the grant was awarded. The grant was approved by
the City on self-generated profit and loss statements,
without verification of supporting bank documentation,
contrary to program requirements.
Additionally, the OIG found evidence that the salary of
an ECQC employee was funded by the countywide
Children’s Trust, which provided a yearly grant budget
to ECQC exceeding $451,000 and was used to collect
grant money from the City, and that ECQC had
improperly requested reimbursement from the
Children’s Trust for other expenses. This information
was forwarded to the Miami-Dade County OIG, which
conducted further investigation, leading to the
Children’s Trust rescinding its funding to ECQC.
The OIG recommended that the City pursue remedies
to recover the funds, strengthen verification
procedures for future grants, and consider restrictions
on future applications from ECQC. The City is
engaged in negotiations for repayment of the funds to
the City.
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Investigation of Poseidon Ferry No-Bid Contract and Public
Subsidy
This investigation, initiated based on a citizen complaint, revealed that the City of Miami Beach entered
into a $600,000 no-bid contract with Poseidon Ferry, LLC to operate a cross-bay water taxi service
without having conducted proper due diligence on the company’s financial health or operational
capacity. The contract was approved following a 6–1 City Commission vote to waive competitive
bidding. Notably, the City Procurement Department was not involved in the process, and no formal
assessment was made of Poseidon’s financial status, operational ability, or service history.
Poseidon Ferry had a documented history of failure, having previously attempted and failed three times
to operate a similar service. In its last year of operation, the company reported losses exceeding
$500,000. Despite these red flags, the City executed a one-year agreement with Poseidon in March
2024. The service was launched on June 30, 2024, but was quickly plagued by mechanical failures,
low ridership, and financial instability. Within 21 days, operations were suspended. The City terminated
the agreement on September 16, 2024.
Prior to the termination, the City had made subsidy payments totaling $65,000 to Poseidon for a
program that failed and caused substantial embarrassment to the City.
The investigation concluded that the City’s decision to bypass competitive procurement and due
diligence requirements placed it at risk of financial loss and reputational harm. The OIG issued
recommendations aimed at strengthening procurement integrity, including requiring due diligence for
all proposed contracts regardless of procurement method, mandating vendor disclosure of bankruptcy
filings and outstanding debts, ensuring that all bid waivers are placed on the regular Commission
agenda for full discussion, and instituting independent risk assessments whenever procurement
safeguards are waived.
This case highlighted the need for transparency, accountability, and best procurement practices in all
City contracting decisions.
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Review of Log Cabin Restoration Project
The OIG’s review of the demolition and removal of the historic Log Cabin in North Beach was prompted
by a resident’s complaint alleging gross negligence, willful misconduct, and breach of fiduciary duty by
City officials. While the factual predicate provided by the resident was deemed insufficient to justify a
full-blown OIG investigation of the allegations, the OIG recognized that the public interest in this project
and its questionable execution justified a review of the City's actions as part of the OIG's ongoing
oversight of City programs and expenditures.
The OIG found no evidence of intentional misconduct; however, it did find significant procedural failures
that denied the Log Cabin a historic designation which may have saved the structure from demolition.
With no historic designation and a determination that the Log Cabin was structurally unsound, it was
dismantled and its salvageable components stored for future use. No maintenance or repair work was
performed on the deconstructed Log Cabin for four years. Funding and restoration efforts were delayed
due to project prioritization and difficulties in securing consultants. In 2024, the City Commission moved
the project to a higher funding priority and design work began to construct a new Log Cabin
incorporating the salvaged materials. The OIG continues to monitor this project.
Investigation of Alleged Lobbyist Registration and Contingency
Fee Violations on Belle Isle Project
The OIG, in collaboration with the Miami Dade Commission on Ethics and Public Trust (COE), reviewed
alleged violations of the Miami Beach Code relating to lobbyist registration requirements and prohibited
contingency fees. The allegations involved a local developer who agreed to pay the Belle Isle Residents
Association (BIRA) $1.2 million in exchange for public support of the developer’s pending project.
Representatives of BIRA did not register to lobby prior to their appearances at public hearings related
to the zoning change.
The COE found that BIRA’s officers, as unpaid neighborhood representatives, were exempt from
lobbyist registration, and that there was no evidence of personal compensation constituting a prohibited
contingency fee, i.e., a payment to an individual in exchange for that person’s support of a City project
conditioned upon the City’s approval of the project. However, the COE found that BIRA representatives
failed to file required disclosure forms before contacting City officials, a requirement that had not been
enforced previously by the City.
The OIG recommended amending the City Code to clarify that contingency fee prohibitions apply to
both individuals and entities. Additionally, the OIG encouraged the Commission to pass an Ordinance
to require that those lobbyists actively lobbying the City or participating in quasi-judicial hearings file
financial and advocacy disclosures. Finally, the OIG recommended that registered associations
engaged in lobbying on a quasi-judicial matter should be required to disclose any contribution received
from an applicant within two years prior to the lobbying activity with an appropriate penalty for non-
disclosure.
Following the report, the Commission passed an Ordinance, sponsored by Commissioner David
Suarez, strengthening the City’s regulations regarding lobbyist registration, disclosures, and ethical
conduct. It ensures that all individuals who engage in lobbying activities are properly registered,
reinforces prohibitions on contingency fees, and clarifies enforcement mechanisms.
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Inquiry into Alleged Prohibited Gift Solicitation/Conflict of Interest
Involving a Planning Board Member
This matter was initiated following complaints from anonymous sources that a member of the City
Planning Board may have solicited a contribution from a developer to a “mobility fund” in connection
with the developer’s application for approvals for a proposed development; and that the same individual
may have had a voting conflict of interest in voting on matters where he was employed by a not-for-
profit entity whose director, who supervised that employee, appeared before the board to lobby on an
issue on behalf of the employing entity. A video recording of a portion of the Planning Board meeting
where the solicitation allegedly occurred was reviewed by the OIG.
Following a lengthy inquiry, it was concluded that under the County Ethics Code the solicitation involved
a suggested contribution toward a legitimate City interest that did not involve the Planning Board
member’s personal interest, nor would the member’s voting on an issue on which the member’s
supervisor was appearing before the board directly affect the member’s personal interest. Therefore,
neither issue amounted to a violation of the County Code. However, the OIG, citing the “appearance”
of a conflict that can be created where a member of a quasi-judicial board votes on matters on which
his/her supervisor and employing entity have taken a public position before the same board on which
the member sits, recommended that the City avoid appointments of individuals whose known
employment could lead to such situations.
Investigation of Alleged Deceptive Conduct in Solicitation of City
Employees to Join AFSCME Bargaining Unit
This investigation was opened following allegations received by the OIG in an anonymous complaint
claiming that representatives of the AFSCME bargaining unit had solicited employees in the Public
Works Department who were ineligible for membership in the bargaining unit by leading them to believe
that they were eligible to join the unit, resulting in their paying union dues but being unable to enjoy any
union benefits. The complaint alleged that the union had done so to regain its lost certification as a
bargaining unit due to lack of membership.
The OIG located 13 employees who had joined the union under that misapprehension, some of whom
had attempted unsuccessfully to obtain refunds from AFSCME. After interviewing the employees as
well as union representatives, the OIG determined that there was insufficient evidence to prove any
intentional fraud but noted that insufficient or incorrect information had been provided to the employees
to regarding their eligibility. After OIG discussions with an attorney for AFSCME regarding this matter,
the union agreed to refund the dues paid by the employees and all 13 employees involved were
provided refunds.
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GENERAL OBLIGATION BOND
OVERSIGHT: FOCUS ON FIRE-
STATION #1
The OIG provides periodic reports on its oversight of the City’s 2018 General Obligation Bond (G.O.B.)
projects, highlighting trouble spots such as project delays or wasteful practices that may jeopardize
completion of planned projects. On September 15, 2025, the OIG documented in detail the City’s
wasteful practices in connection with the Fire-Station #1 project.
In 2024, a previous OIG report highlighted the importance of ensuring that major City projects proceed
without interruptions or modifications once they have reached advanced stages of design or are shovel-
ready, citing the Fire-station #1 project. This led to the adoption by the City Commission of a useful
"Stop the Pause" Ordinance, establishing more stringent voting thresholds for actions that could pause,
delay, stop, or materially modify critical infrastructure projects at advanced stages. Although the
Ordinance did not apply to non-infrastructure projects, the OIG supported it as a positive step toward
greater fiscal responsibility and suggested that it could be extended in the future to cover additional
projects such as Fire-station #1.
Fire-station #1 had been identified in 2018 as a critical facility which should be included in the G.O.B.
program. Following an extensive review, the Administration identified the South Shore Community
Center (SSCC) on 6th Street as the only location which met all the necessary elements, including the
ability to withstand a Category 5 hurricane. After nearly two years of design and pre-construction work,
a Commission Resolution adopted in September 2023 authorized the mayor to execute an agreement
leading to a fully designed and funded project for construction at the SSCC location.
Three months later, the City Commission voted to halt the demolition of the SSCC building and
instructed the administration to identify alternative locations for Fire-Station #1. In February 2024, the
Commission adopted a Resolution directing the City Administration to again study the relocation of the
project to a site located at the western boundary of Flamingo Park.
At that time, $4,000,000 had already been spent on the project, including $2.1 million allocated in
G.O.B. funds. It was determined that moving the project to Flamingo Park would cost an estimated
additional $15-$20 million due to costs associated with construction escalation as well as additional
design and pre-construction services, increased construction scope, impacts to the track, locker-room
building, field house, artificial turf and drainage, plus fees and other incidentals. The Commission was
also advised by the City Administration that relocation of the facility to that site could result in at least
24-30 months of project delays from the original project timeline, with a new completion date during the
Fall of 2028. [Continued on next page]
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Notwithstanding the increase in costs to relocate the site to Flamingo Park, millions of dollars already
spent, expert opinions from staff and consultants, and consistent advocacy from the G.O.B. Oversight
Committee in favor of the SSCC location, the Commission voted in June 2024 to proceed with the
relocation of Fire-station #1 to the Flamingo Park site. This decision required an amendment to the
contract with the design team for an additional $2,611,752, bringing the total amount of the design
contract to $4,276,375, which was completed in May 2025. The proposed use of park land also
necessitated a countywide referendum, which resulted in a favorable vote on that site.
In July 2025, in response to opposition from the Flamingo Park neighborhood, the Commission voted
to remove both the Flamingo Park and South Shore Community Center locations from further
consideration.
The Tranche 1 appropriation from the G.O.B. for the Fire-Station #1 project was $5,746,058. As of the
date of the 2025 OIG report, $4,796,766 had been expended and $1,858,869 was encumbered
(although on hold) leaving only $477,730 of the Tranche 1 money. The report recommended that the
City study the cumulative impact of this practice on project costs and timelines, weigh its costs and
benefits, and assess whether there should be changes in the approval process for G.O.B. and other
City projects.
The OIG report noted that the Fire-station #1 project, with its anticipated impact on the City's ability to
plan and execute much-needed future municipal projects, was the most notable example of waste
among current G.O.B projects and that, “an honest appraisal and sober cost-benefit analysis” of the
project’s status…should now create a consensus for ending the waste.” The report also recommended
that the scope of the 2024 "Stop the Pause" Ordinance be expanded to cover more of the major projects
undertaken by the City to avoid what occurred with Fire-Station #1.
Following the release of the OIG report, the City Commission again took up the Fire-Station #1 issue
at its December 17, 2025, meeting. After a lengthy discussion, the Commission voted 7-0 to locate the
facility at the original SSCC site on 6th Street recommended by the City Administration in 2018.
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Current Fire Station Planned Fire Station – 6th street
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PROCUREMENT OVERSIGHT
Contract Procurement is considered among the most vulnerable areas in local government to ethical
compromise or corruption. The OIG Contract Oversight Specialist monitors the City’s procurement
process with the cooperation of the City’s Procurement Director and staff. This oversight provides close
observation and analysis of the bid process, evaluation of submissions, negotiations, and contract
award, to promote efficiency and transparency and to ensure that decisions are fair, objective, and
without bias or prejudice toward any participant.
The OIG uses a Risk Assessment Worksheet for each contract exceeding one million dollars, or which
involves a project likely to attract public interest. Each contract examined is scored on nine risk factors
related to the nature and conditions of the project or program involved. The OIG calculates and applies
the scores to rate each contract as having a high, medium, or low risk level.
The OIG notifies key members of the City Administration of contracts with high-risk scores for special
managerial oversight. The Contract Oversight Specialist then follows each solicitation throughout the
procurement process, monitoring evaluation meetings, bid protests, and awards. The OIG considers
the risk scores in determining appropriate contracts for audit, review, investigation, or inspection.
The OIG periodically issues reports to the Commission and Administration summarizing risk
assessment activity and identifying high-risk contracts in the City. In its most recent report covering the
period of February 1, 2025, through November 30, 2025, there were 106 solicitations, 31 with low-risk
scores, 9 with medium-risk scores, and 9 with high-risk scores.
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IN MEMORIAM
“Nothing can dim the light that shines from within.”
-Maya Angelou
Jane Wairimu Sukuro
Deputy Chief Auditor
Office of the Inspector General, City of Miami Beach
October 20, 1964 – May 25, 2025
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CITY CHARTER, SECTION 9.01
The Office of Inspector General is herein established as an
independent body to perform investigations, audits, reviews, and
oversight of municipal matters including City contracts, programs,
projects, and expenditures, in order to identify efficiencies, and to
detect, investigate and prevent fraud, waste, mismanagement,
misconduct, and abuse of power. The Office shall have the power to
subpoena witnesses, administer oaths, and require the production of
records, in order to conduct its investigations.
The Inspector General shall be appointed by the Ad Hoc Inspector
General Section Committee, as further established by ordinance;
however, before any appointment by the Ad Hoc Inspector General
Section Committee shall become effective, the appointment must be
approved by a majority vote of the City Commission. The Inspector
General may be removed from office upon a five-sevenths (5/7) vote
of the City Commission. Such Office’s appointment, reappointment,
term, functions, authority, and powers shall be further established by
Ordinance. (Res. No. 2018-30437, 7-25-18, passed by voters 11-6-
18)
MIAMIBEACH
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