CAO 99-08
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CITY OF MIAMI BEACH
DATE: MAY 14, 1999
TO:
SERGIO RODRIGUEZ, CITY MANAGER
FROM:
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MURRAY H. DUBBIN, CITY ATTORNEnM
CAO #99-8: CONFLICT OF INTEREST: CITY EMPLOYEE MERCEDES
ROVIROSA SEEKING SIDP FUNDS.
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RE:
Pursuant to your request, I have researched the issue of whether a conflict of interest exists
were City of Miami Beach employee Mercedes Rovirosa to receive State Housing Incentive
Partnership (SHIP) Program funds. For the reasons stated more fully below, a conflict of interest
exists under applicable laws.
I. Factua) Bacqround.
The City of Miami Beach Community Economic Development Department ("Department")
is comprised of three Divisions: 1) Community Development; 2) Housing; and 3) Economic
Development. Each Division has its own responsibilities, with the Housing Division in particular
administering State Housing Incentive Partnership (SHIP) Program funds. Moreover, the Divisions
share filing rooms and common office space within the Department.
Entities receiving SHIP funds enter into contracts with the City of Miami Beach concerning
operation of Home Ownership Programs, and are thus subject to the continuing regulation of the
Department's Housing Division.
Miami Beach Community Development Corporation (MBDC) presently operates a Home
Ownership Program utilizing SHIP funds. Individuals applying to MBDC for use of these SHIP
monies are required, upon the purchase of a home, to execute a second mortgage and assign same
to MBDC.
Mercedes Rovirosa, employee of the Community Development Division, is interested in
applying for SHIP funds. As an employee of the Department, Ms. Rosirosa is privy to information
concerning funds administered by said Department, including SHIP funds.
II. Leea) Analysis.
The State Code of Ethics for Public Officers and Employees provides in relevant part:
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To: Sergio Rodriguez, City Manager
From: Murray H. Dubbin, City Attorney
Re: CAO #99-8
Date: . May 14, 1999
Page: 2
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Conflictine employment or contractual relationship.
No public officer or employee of an agency shall have or hold any
employment or contractual relationship with any business entity or
any agency which is subject to the regulation of, or is doing business
with, an agency of which he or she is an officer or employee, . . . nor
shall an officer or employee of an agency have or hold any
employment or contractual relationship that will create a continuing
or frequently recurring conflict between his or her private interests
and the performance of his or her public duties where that would
impede the full and faithful discharge of his or her public duties.
Section 112.313(7)(a), Florida SUttutes. The above-quoted provision prohibits a public employee
from having a contractual relationship with a business entity which is either subject to the regulation
of its agency I or doing business with its agency. Inasmuch as Ms. Rovirosa's use of SHIP funds
would require her to have a contractual relationship with MBDC, an entity which is subject to the
regulation of the City and Ms. Rovirosa's agency (the Community Economic Development
Department), a prohibited conflict of interest would exist. See, Commission on Ethics Opinion 81-
51 (September 17, 1981), and Commission on Ethics Opinion 78-16 (March 15, 1978).
In addition to the above, the second part of Section 112.313(7)(a), Florida Statutes,
prohibiting a "continuing or frequently recurring conflict" does not require proof that a public
employee has failed to perform his responsibilities or has not acted impartially or otherwise acted
corruptly -- the Statute is entirely preventative in nature and was created to prevent situations in
which private economic considerations may override the faithful discharge of one's public
responsibilities. See, Zerweck v. State Commission on Ethics, 409 So.2d 57 (Fla. 4th DCA 1982).
Although facts have not been provided substantiating a frequently recurring conflict, the appearance
of Ms. Rovirosa's employment within the very Department that administers SHIP funds raises issues
pertaining to this conflict of interest proscription. Along these lines, the State Conflict of Interest
laws addressing use of certain information states as follows:
Disclosure of use of certain information.
No public officer, employee of an agency, or local govemment
attorney should disclose or use information not available to members
of the general public and gained by reason of his or her official
position for his or her personal gain or benefit or for the personal gain
or benefit of any other person or business entity.
1 "Agency" means any. . . municipal government entity of this state, . . . ; any
department, . . . or political subdivision of the state therein; . . . ". Section 112.312(2), Florida
Statutes.
To: Sergio Rodriguez, City Manager
From: Murray H. Dubbin, City Attorney
Re: CAD #99-8
. Date:' May 14, 1999
Page: 3
Section 112.313(8), Florida Statutes. This conflict of interest provision regards the temptation to
disclose or use infomation not available to the general public and gained by reason of one's official
position. The issue thus arises of whether by virtue of Ms. Rovirosa's employment with the
Department which oversees the Housing Division administering the subject state funds, she is in a
position to gain inside information not otherwise available to the general public with regard to said
funds. Again, the facts provided do not allow for a proper assessment to be made of whether this
prohibition on disclosing certain information has been violated.
It is suggested that the City Administration review its policies concerning municipal
personnel's involvement in Departmental administration of funds received by the City for eligible
citizen participants.
cc: Christina M. Cuervo, Assistant City Manager
Randolph Marks, Assistant Director, Community/Economic Development Dept.
Joanna Revelo, Community Development Division Director
Steven Cumbo, Housing Specialist
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