Loading...
2012-27905 Reso RESOLUTION NO. 2012-27905 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, WAIVING, BY 5/7THS VOTE, THE COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A PROFESSIONAL SERVICES AGREEMENT, IN AN AMOUNT NOT TO EXCEED $150,000, WITH A QUALIFIED FIRM FOR SERVICES RELATED TO AUDITING THE PROCESSES OF CERTAIN REGULATORY DEPARTMENTS OR DIVISIONS. WHEREAS, at the April 16, 2008 City Commission Meeting, the Commission authorized the hiring of an outside auditor to perform an audit of the operations and processes of the Building Department; and WHEREAS, at that meeting, the Commission appointed Commissioner Deede Weithorn to work with the Administration to develop the scope of work for this process, and to assist the Administration in identifying/selecting a firm and negotiating an agreement for services; and WHEREAS, after meeting with various consultants, Watson Rice was subsequently selected to perform the organizational review and operational analysis, which resulted in a report that provided specific recommendations to improve the operations of the building development process; and WHEREAS, similar audits for other City departments and divisions have been discussed since then, including for the Capital Improvements Projects Office, Code Compliance Division and Parking Enforcement; and WHEREAS, based on the recent arrests of Code Compliance and Fire Inspection employees, the Administration is recommending that the City immediately initiate a similar process for selecting and entering into a professional services agreement with a consultant to conduct an external audit of the processes, internal controls, organizational structure and operations of the Code Compliance Division, Fire Inspection process, Parking Enforcement Division, as well as the Fire Prevention Division, Public Works Department (permitting processes only), Planning Department (permitting process, concurrency fees, impact fees and other related areas), and Special Master Process. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission waive, by 5/7ths vote, the competitive bidding requirement, finding such waiver to be in the best interest of the City, and authorize the City Manger to negotiate and execute a professional services agreement, in an amount not to exceed $150,000, with a qualified firm for services related to auditing the processes, internal controls, organizational structure and operations of certain regulatory departments or divisions. PASSED and ADOPTED this ?AA day of rnA , 2012. ATTEST: S CITY CLERK yr A OR APPROVED AS TO :INCORF ORATED: T.\AGENDA\2012\5-9-12\Post Arrest Action' P ..Audit 4kices:k 7 oc FORM&LANGUAGE CN-�.� 0 &F R EXECUTION ttorne Date Condensed Title: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY, AND THE FEDERAL BUREAU OF INVESTIGATION, MIAMI AREA CORRUPTION TASK FORCE, FOR THE PURPOSE OF IDENTIFYING AND PROSECUTING PUBLIC OFFICIALS AND LAW ENFORCEMENT OFFICERS INVOLVED IN PUBLIC CORRUPTION. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO NEGOTIATE AN AGREEMENT WITH THE MIAMI-DADE COUNTY OFFICE OF THE INSPECTOR GENERAL (MDCOIG, TO AUTHORIZE THE MDCOIG TO PROVIDE INDEPENDENT INVESTIGATIONS INTO CITY PRACTICES AND OPERATIONS IN ORDER TO PREVENT AND DETECT FRAUD, WASTE, FINANCIAL MISMANAGEMENT, EMPLOYEE MISCONDUCT OR OTHER ABUSES. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT IN THE NOT TO EXCEED AMOUNT OF $45,000, WITH THE MIAMI-DADE COUNTY COMMISSION ON ETHICS AND PUBLIC TRUST, TO DEVELOP AND PROVIDE A COMPREHENSIVE ETHICS TRAINING PROGRAM FOR CITY EMPLOYEES WHO HOLD POSITIONS THAT ARE IN REGULATORY AREAS OF THE CITY. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, WAIVING, BY 5/7THS VOTE, THE COMPETITIVE BIDDING REQUIREMENT, AND AUTHORIZING THE MANAGER TO NEGOTIATE AND EXECUTE A PROFESSIONAL SERVICES AGREEMENT, IN AN AMOUNT NOT TO EXCEED $150,000, WITH A QUALIFIED FIRM FOR SERVICES RELATED TO AUDITING THE PROCESSES OF CERTAIN REGULATORY DEPARTMENTS OR DIVISIONS. Key Intended Outcome Supported: Increase Community Satisfaction with City Services; Increase Resident Satisfaction with Employee Contact; Attract and Maintain a Quality Workforce; and Ensure Expenditure Trends are Sustainable over the Long Term. Supporting Data (Surveys, Environmental Scan, etc.): N/A Issue: Shall the Mayor and the City Commission approve the Resolutions? Item Summary/Recommendation: On April 11, 2012, five (5) Code Compliance and two (2) Fire Department employees were arrested by the Federal Bureau of Investigations on charges including conspiracy to commit extortion. These arrests and alleged misconduct by a few city employees represent a huge betrayal not only of the public's trust, but of our entire organization. In my Letter to Commission (LTC) #105-2012, dated April 24, 2012, the administration delineated actions taken and proposed to be taken to address issues raised by these arrests. Specifically, I proposed a five- point approach that is intended to support the City in our efforts to root out employee misconduct and corruption, and improve upon or create the necessary processes to prevent this from occurring again. One of the five actions has already been initiated; Commander Hernan Cardeno has been re-assigned from the Police Department to provide day-to-day oversight. In addition, a review of Code Compliance and Fire Inspection cases is also underway, being handled by our City's Internal Audit Division. The other four proposed actions require Commission consideration and approval. 1) Authorizing the City Manager and City Clerk to execute a Memorandum of Understanding between the City and the Federal Bureau of Investigation, Miami Area Corruption Task Force. This will enhance the City's ability to engage in public corruption investigations, and allows us to leverage the Task Force's resources in this regard. The City was invited to participate in the Task Force. A proposed MOU is attached to the memo. 2) Authorizing the City Manager and City Attorney to finalize the negotiations of an agreement with the Miami- Dade County Office of the Inspector General (MDCOIG), authorizing the MDCOIG to provide independent investigations into city practices and operations in order to prevent and detect fraud, waste, financial mismanagement, employee misconduct or other abuses. The MDCOIG would serve as the City's Inspector General and operate independently to initiate investigations, as well as respond to calls and complaints about potential wrongdoing. A draft scope of work is attached to the memo. Direction from the Commission is requested. The final negotiated agreement would be brought back to the City Commission in June. 3 Authorizing the City to enter into an agreement with the Miami-Dade County Commission on Ethics and ® AGENDA ITEM 7 T MIAMIBEACH DATE Z- I Public Trust, to develop and provide a comprehensive ethics training program for city employees who hold positions that are in regulatory areas of the city. This program is in addition to the current training provided to all employees. A proposed program of work is attached to the memo. 4) Waiving competitive bidding and authorizing the City Manager to work with Commissioner Weithorn to identify, negotiate and execute a professional services agreement, in an amount not to exceed $150,000, with a qualified firm for services related to auditing the processes of certain regulatory departments or divisions. This follows the same approach taken with the external audit of the Building Department by Watson Rice. The scope includes, but is not limited to, reviewing organizational structure and culture, internal controls, processes, and operations. Departments/divisions to be reviewed include the Code Compliance Division; Fire Inspection process; Parking Enforcement Division; Fire Prevention Division; Public Works Department (permitting processes only); Planning Department (permitting process, concurrency fees, impact fees and other related areas); and Special Master Process. While all of these reviews are important, we will be asking the selected firm to prioritize and complete the audits of the Code Compliance Division, Fire Inspection process and Parking Enforcement Division first. A draft scope of work is attached to the memo. To enhance these above-recommended efforts and assist me directly on all similar matters, I have reached out to former U.S. Attorney for the Southern District of Florida, Roberto (Bob) Martinez, to serve in an advisory capacity on matters related to protecting the integrity of our operations. It is recommended that the Mayor and City Commission approve all four resolutions. Advisory Board Recommendation: Financial Information: Source of Amount Account Approved Funds: 1 $150,000 (Audit) TBD 2 $45,000 (Ethics) TBD 3 TBD MDCOIG TBD OBPI Total $195,000 Financial Impact Summary: City Clerk's Office Legislative Tracking: Sign-Offs: Department Director Assistant Ci ger City M R nager HM J M G \ &L— ®_ MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: May 9, 2012 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,APPROVING AND AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY,ON BEHALF OF ITS POLICE DEPARTMENT,AND THE FEDERAL BUREAU OF INVESTIGATION, MIAMI AREA CORRUPTION TASK FORCE, FOR THE PURPOSE OF IDENTIFYING AND PROSECUTING PUBLIC OFFICIALS AND LAW ENFORCEMENT OFFICERS AT THE FEDERAL, STATE, AND LOCAL LEVELS OF GOVERNMENT INVOLVED IN PUBLIC CORRUPTION THROUGHOUT THE SOUTHERN DISTRICT OF FLORIDA. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO NEGOTIATE AN AGREEMENT WITH MIAMI-DADE COUNTY,ON BEHALF OF THE MIAMI-DADE COUNTY OFFICE OF THE INSPECTOR GENERAL (MDCOIG), TO AUTHORIZE THE MDCOIG TO PROVIDE INDEPENDENT INVESTIGATIONS INTO CITY PRACTICES AND OPERATIONS IN ORDER TO PREVENT AND DETECT FRAUD, WASTE, FINANCIAL MISMANAGEMENT, EMPLOYEE MISCONDUCT, OR OTHER ABUSES. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA,APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT IN THE NOT TO EXCEED AMOUNT OF $45,000, WITH MIAMI-DADE COUNTY, FLORIDA,ON BEHALF OF THE MIAMI-DADE COUNTY COMMISSION ON ETHICS AND PUBLIC TRUST, TO DEVELOP AND PROVIDE A COMPREHENSIVE ETHICS TRAINING PROGRAM FOR CITY EMPLOYEES WHO HOLD POSITIONS THAT ARE IN REGULATORY AREAS OF THE CITY. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, WAIVING, BY 5/7THS VOTE, THE COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND AUTHORIZING THE MANAGER TO NEGOTIATE AND EXECUTE A PROFESSIONAL SERVICES AGREEMENT, IN AN AMOUNT NOT TO EXCEED $150,000, WITH A QUALIFIED FIRM FOR SERVICES RELATED TO AUDITING THE PROCESSES OF CERTAIN REGULATORY DEPARTMENTS OR DIVISIONS. ADMINISTRATION RECOMMENDATION Adopt the Resolutions. KEY INTENDED OUTCOMES SUPPORTED Increase Community Satisfaction with City Services; Increase Resident Satisfaction with Employee Contact; Attract and Maintain a Quality Workforce; and Ensure Expenditure Trends are Sustainable over the Long Term. Action Items-April 11 Events Page 2 of 8 BACKGROUND On April 11, 2012,five(5)Code Compliance and two(2) Fire Department employees were arrested by the Federal Bureau of Investigations on charges including conspiracy to commit extortion. These arrests and alleged misconduct by a few city employees represent a huge betrayal not only of the public's trust—but of our entire organization. Their irresponsible actions have now cast a negative light on the vast majority of our employees,who are hard working, dedicated men and women committed to our mission of public service. They also paint an unfair picture of the hard work and efforts by the Mayor and City Commission to provide honest guidance and vision for this community.As reported to you in my Letter to Commission (LTC) #105-2012, dated April 24, 2012 (Attachment 1), these employees were immediately placed on leave without pay, and the process to terminate their employment was initiated. The LTC also delineated the administration's actions subsequent to the arrests. More specifically, I proposed a five-point approach that is intended to support the City in our efforts to root out employee misconduct and corruption, and improve upon or create the necessary processes to prevent this from occurring again. One of the five actions has already been initiated; Commander Hernan Cardeno has been re-assigned from the Police Department to assist the Code Compliance Division by providing day- to-day oversight of the staff. In addition, a review of Code Compliance and Fire Inspection cases is also underway, being handled by our City's Internal Audit Division of the Office of Budget and Performance Improvement. Commissioner Weithorn met with me and staff to discuss potential approaches to this internal review, and we will continue to seek her suggestions and input as that process proceeds. The other four proposed actions require Commission consideration and approval. 1. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE FEDERAL BUREAU OF INVESTIGATION, MIAMI AREA CORRUPTION TASK FORCE The Miami Division of the Federal Bureau of Investigation (FBI) has established the Miami Area Corruption Task Force (MACTF) for the purpose of maximizing inter-agency cooperation and formalizing relationships between the participating agencies, for purposes of coordinating policy guidelines, planning, training and public relations relative to public corruption. The mission of the MACTF is to identify significant Public Corruption investigations throughout the Southern District of Florida. The MACTF consists of a specialized group of investigators and prosecutors who are responsible for the identification, investigation, prosecution, and forfeiture of all assets involved in such cases. The MACTF also works to identify and develop new cases of corruption by both Public Officials and Law Enforcement Officers on the Federal, State, and Local levels of government. It is intended to enhance the effectiveness of Federal, State and local law enforcement resources through coordinated initiatives, using the most effective investigative and prosecution avenues to investigate, convict and incarcerate offenders. Current MACTF members include the Federal Bureau of Investigation; City of Miami Police Department; United States Attorney's Office-Southern District of Florida; United States Department of Housing and Urban Development - Office of Inspector General; United States Department of Transportation-Office of Inspector General; Internal Revenue Service-Criminal Investigation Division; City of Hialeah Police Department; and the United States Environmental Protection Agency-Office of Inspector General. Participation in the MACTF allows the participating agencies to utilize the task force as a force multiplier. In the course of discussions relating to the recent arrests,the Miami Beach Police Department(MBPD) and the FBI discussed the City's participation in the MACTF. Both the FBI and the City felt that this was a mutually beneficial partnership, as it establishes an ongoing relationship between these two law enforcement entities. The invitation for the MBPD to participate also demonstrates the FBI's confidence Action Items-April 11 Events Page 3 of 8 and trust in our Police Department's leadership and investigative staff. The proposed Memorandum of Understanding (MOU) between the FBI and the City of Miami Beach on behalf of the MBPD (ATTACHMENT 1), would allow the City to assign a sworn police officer full time to the MACTF to work in conjunction with their personnel in investigating and prosecuting public corruption. Participation in the MACTF will benefit the City and the MBPD by providing access to the full benefit of the Task Force's investigatory support and capabilities to attack corruption now and in the future on Miami Beach. In addition to the assigned officer, other Police Department investigative personnel will also be deputized to have special training and clearance to work with MACTF. The term of the MOU is for the duration of the MACTF operations, and can be terminated at any time upon written mutual consent of the agencies involved. There is no additional cost associated with the City's participation in the MACTF beyond the City's continued funding of the full time sworn officer.The FBI covers costs associated with providing a car(including fuel), phone,training, and reimbursement of overtime. Additionally, the City will participate in the distribution of funds from any seizures. We continue to provide the FBI hotline number(305.944.9101) as a means to report anonymous tips either about this investigation or any other, similar issue. 2. AGREEMENT BETWEEN THE MIAMI-DADE COUNTY OFFICE OF THE INSPECTOR GENERAL AND THE CITY, TO PROVIDE INDEPENDENT INVESTIGATIONS INTO CITY PRACTICES AND OPERATIONS IN ORDER TO PREVENT AND DETECT FRAUD,WASTE, FINANCIAL MISMANAGEMENT, EMPLOYEE MISCONDUCT OR OTHER ABUSES. It is important that employees, residents and business owners alike report conduct that is not consistent with the integrity we expect of our public servants and, when doing so, those reporting such activities must feel confident that their call and concerns will be properly investigated. Likewise, it is beneficial for the City to have available an independent process to investigate any reported fraud or employee misconduct, such as concerns with the City's procurement and regulatory functions, especially as it relates to matters that may not rise to the level necessitating the FBI's involvement. Shortly after the news of the arrests, the Mayor and I reached out to Miami-Dade County Inspector General Christopher R. Mazzella about the possibility of the Miami-Dade County Office of the Inspector General (MDCOIG) providing our City with their services to investigate and review allegations of waste, fraud, abuse, employee misconduct and mismanagement. The Mayor and I met with him and his staff on April 18, 2012,to discuss the possibility of a formal relationship between his office and our City.The Inspector General was receptive to such an engagement. The MDCOIG was created in 1998 by the Miami-Dade County Commission,through County Ordinance, and has the authority to"review past, present and proposed County and Public Health Trust programs, accounts, records, contracts, and transactions. The MDCOIG investigates allegations of fraud,waste, abuse and misconduct amongst public officials and County employees, as well as contractors and vendors doing business with the County." To carry out this function, the MDCOIG is empowered with the ability to require the production of documents and records in the possession and control of the County, and has the power to issue subpoenas,where necessary. The MDCOIG can also require reports from any County official, County agency or instrumentalities regarding any matter in its jurisdiction; to report on and recommend to County government on whether a particular program, contract or transaction is financially sound, reasonable, necessary or operationally deficient; to conduct random audits; and to provide general oversight of department programs and large-scale construction projects.The MDCOIG has oversight of over 40 county departments, including Aviation, the Seaport, Transit, Housing, Community and Economic Development, Water and Sewer, Solid Waste, Public Works and the Public Health Trust (JMH). Since 2007, the MDCOIG has been serving as the Inspector General for the Miami-Dade Action Items-April 11 Events Page 4 of 8 County School Board through an Interlocal Agreement. The MDCOIG's powers do not extend to municipalities. A proposed Agreement between the City and Miami-Dade County, on behalf of the MDCOIG, would authorize the MDCOIG to provide similar services to the City. Staff members from the MDCOIG, City Administration, City Attorney's Office and I have been working closely to refine a proposed Agreement setting forth these authorized powers and duties. As we are the first municipality to propose an Agreement with the MDCOIG, no existing template for that type of Agreement exists. The negotiated Agreement would be brought back to the City Commission in June for final approval. Please refer to the attached DRAFT Scope of Services for this Agreement(ATTACHMENT 2). The following generally describes the role of the Inspector General and the scope of services that would be contemplated to be provided through the Agreement being negotiated: • It is intended that the organization and administration of the MDCOIG will be sufficiently independent to assure that no interference or influence external to the MDCOIG adversely affects the independence and objectivity of the Inspector General. The Inspector General considers this an integral component of any engagement with their office. • The MDCOIG may exercise any of the responsibilities, functions and authorities contained in the Agreement upon his or her own initiative. • The Mayor and Commission, City Manager, City Attorney, City's Internal Auditor and Miami Beach Police will cooperate with the MDCOIG to achieve the goals of preventing and detecting fraud,waste,financial mismanagement,employee misconduct or other abuses, and promoting accountability, integrity, economy, and efficiency in government. It would be anticipated that, subject to any limitations which may be specifically delineated in the Agreement, the MDCOIG would be authorized by the City to: • Serve as the Inspector General for the City during the term of the Agreement. • Randomly or in response to complaints,conduct any reviews,audits, inspections, investigations or analyses relating to departments; offices; committees; activities; accounts; records; procurement processes(e.g. how bid specifications were established; how the bid process was managed; and the activities of the prospective bidder, its officers, agents and employees, lobbyists, City staff, and elected officials); contracts;transactions; past/present/future programs and agencies of the City: employee compliance with established policies and/or standard operating procedures of the City (including the operations of departments or divisions of the City with regulatory oversight of city/state/federal codes such as, but not limited to,fire, parking, planning and zoning, building, property maintenance, noise, etc.); and allegations of employee misconduct. • Require reports and the production of records from the Mayor, Commission,City Manager,City officers, employees(except any files or reports relating to litigation that are subject to attorney- client or other similar privilege) and entities under contract with the City. • Staff and support a "hotline," which shall be operational throughout the duration of this Agreement, to accept calls from individuals reporting alleged fraud, waste, financial mismanagement, employee misconduct or other abuses. Such hotline shall be advertised by the City. The MDCOIG will not, whenever possible, duplicate the work of the City's Internal Auditor, Miami Beach Police Department Internal Affairs Division, Miami Beach Human Resources Department, City Commission, City Manager and City Attorney, or of the State Attorney's Office or Miami-Dade County Commission on Ethics. It is understood, however,that the MDCOIG's audits, investigations, inspections and reviews may from time to time address the same or similar issues or activities being reviewed by the aforementioned entities. In such cases,the MDCOIG's audits,investigations, inspections and reviews will be conducted separately and independently from those entities, and Action Items-April 11 Events Page 5 of 8 upon conclusion, the MDCOIG, where appropriate, will refer the disposition or finalization of any audit, investigation, inspection or review to the appropriate City entity for any additional action. The proposed Agreement would be for a term of three (3) years from date of execution by all parties, and would be renewable for an additional term; any additional term would be determined and agreed upon by both Parties. The Agreement may be terminated for any reason, including convenience, by either party by thirty (30) days' written notice to the other party. Direction from the Commission is requested on the DRAFT Scope of Services for this Agreement. 3. AGREEMENT WITH THE MIAMI-DADE COUNTY COMMISSION ON ETHICS AND PUBLIC TRUST, TO DEVELOP AND PROVIDE A COMPREHENSIVE ETHICS TRAINING PROGRAM FOR CITY EMPLOYEES WHO HOLD POSITIONS THAT ARE IN REGULATORY AREAS OF THE CITY. While the City currently provides and requires ethics training for all City employees, additional,tailored ethics training focused on the issues and challenges faced by all of our regulatory employees in the Building, Code Compliance, Fire, Parking, Planning and Police Departments is necessary. On April 13, 2012, immediately following the arrests, I contacted the Miami Dade County Commission on Ethics and Public Trust (Commission on Ethics) and spoke to Executive Director and General Counsel Joseph M. Centorino about having the Commission on Ethics assist the City of Miami Beach with ethics training for all city employees. I requested that this training first focus on, and be provided to, those employees who work in any of the city's regulatory areas. On April 19, 2012, Mayor Bower and I along with other city staff met with several senior-level staff members from the Commission on Ethics including Mr. Centorino and Deputy General Counsel Miriam Ramos, to discuss this comprehensive ethics training. On April 23, 2012, Michael Murawski,Advocate for the Commission on Ethics had separate and individual meetings with senior-level staff from the city's Code Compliance, Fire, Parking, Organizational Development, and Internal Audit areas to gather additional information and details about the city's past and intended efforts pertaining to training on ethics, particularly for the employees in the regulatory areas of the city. By way of further background, in 2004, 1 appointed a team from throughout the city to develop curriculum and deployment strategies for each of the city's priority training areas which include: ethics, diversity, sexual harassment, customer service and team building. Course content was developed in consultation with the Office of the City Attorney, Human Resources, the Commission on Ethics and other external subject-matter experts. Training in each of these areas was geared specifically to each city department and made available to all city staff. By 2008, all employees were required to attend these trainings (employees are required to attend the Ethics course every two years). In addition, in 2011, an on-line electronic learning system was procured which allows the city to provide access to all employees of these required trainings 24-hours-7-days-a-week. The city is in the process of making this system available to all employees this month. The training that has been discussed with the Commission on Ethics would provide additional,specific and much more in-depth training to all employees who are in a regulatory area of the city. For now,the Commission on Ethics has been asked to first focus on employees in the Code Compliance, Building, Planning, Fire(Inspections)and Parking (Enforcement)areas of the city. It is expected that in the near future, a similar training program will be provided to other city employees. Attached is the proposal submitted by the Commission on Ethics (ATTACHMENT 3). The proposal includes multiple sessions of intensive and interactive training for all employees and supervisors engaged in the areas of(1) fire inspection; (2) parking enforcement; (3) building inspection; (4) code enforcement; and (5) planning. This includes nearly 230 employees. The Commission on Ethics is Action Items-April 11 Events Page 6 of 8 prepared to design, conduct and conclude the initial training within six months. The proposed sessions include the following over the six month period: 1. Introduction to Ethics—Interactive lecture and discussion led by staff from the Commission on Ethics on public service ethics, governmental organizational culture and professionalism. 2. Provide a detailed presentation on the code of ethics requirements for public employees emphasizing issues such as gifts, conflict of interest, and exploitation provisions particularly relevant to employees engaged in a regulatory role. These will be illustrated with case examples. 3. Presentation and discussion of legal and administrative consequences of illegal and unethical activity by public servants, including the participation of former public employees whose conduct led to termination. 4. Presentation on the laws that govern bribery, including a discussion of illustrative criminal cases from Miami-Dade County and elsewhere. 5. Presentation and discussion on the special integrity challenges presented by the regulatory environment in the City of Miami Beach, including presentations by a retired management-level employee of a local government municipality. 6. Interactive group discussion led by staff from the Commission on Ethics on six hypothetical scenarios directly relevant to issues confronting regulatory personnel. 7. Design and implement a"train the trainer" program for supervisory level staff which addresses the need for an on-going strategy necessary for building an ethical organizational culture with oversight controls and in-service ethics training throughout city departments. 8. Private and confidential one-on-one sessions to be conducted with all regulatory employees by staff from the Commission on Ethics to discuss and address past and future ethical concerns raised by their personal and professional experiences and providing each of them with an opportunity to suggest changes and/or improvements in the workplace that could help create a stronger ethical climate. 9. The Commission on Ethics will issue a final report summarizing all the training sessions and include recommendations for follow-up training and implementation of long-term management strategies to help prevent future corruption. The cost estimate for the proposed training by the Commission on Ethics is$45,000. Given that there are approximately 230 employees that would participate in all of the trainings described above,the per- person cost for the six month period would be approximately $200 per employee. 4. NEGOTIATION AND EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT WITH A QUALIFIED FIRM FOR SERVICES RELATED TO AUDITING THE PROCESSES OF CERTAIN REGULATORY DEPARTMENTS OR DIVISIONS. As you may recall, at the April 16, 2008 City Commission Meeting, the Commission authorized the hiring of an outside auditor to perform an audit of the operations and processes of our Building Department. At that meeting,the Commission appointed Commissioner Deede Weithorn to work with the administration to develop the scope of work for this process, and to assist he administration in identifying/selecting a firm and negotiating an agreement for services. After meetings with various consultants, Watson Rice was subsequently selected to perform the organizational review and operational analysis; their report provided specific recommendations to improve the operations of our building development process. Similar audits for other City departments and divisions have been discussed since then, including for the Capital Improvements Projects Office, Code Compliance Division and Parking Enforcement. I am recommending that we immediately initiate a similar external audit of the Code Compliance Division; Fire Inspection process; Parking Enforcement Division; Fire Prevention Division; Public Works Department(permitting processes only); Planning Department(permitting process, concurrency fees, Action Items-April 11 Events Page 7 of 8 impact fees and other related areas); and Special Master Process. While all of these reviews are important, we will be asking them to prioritize and complete the audits of the Code Compliance Division, Fire Inspection process and Parking Enforcement Division first. In order to expedite this process, an initial meeting was convened on April 23, 2012 to discuss the potential scope of such an audit. The attendees included Commissioner Weithorn and Dr. Morris Sunshine (both of whom offered their assistance); Hilda Fernandez, Assistant City Manager; Kathie Brooks, Director of the Office of Budget and Performance Improvement; Patricia Walker, Chief Financial Officer; Stephen Scott, Building Director; Kristin Tigner, Assistant Building Director; Robert Santos-Alborna, Code Compliance Division Director; and Hernan Cardeno, Division Commander assigned to the Code Compliance Division. Based on the input from the participants in this meeting, it was concluded that the minimum criteria necessary for a firm to conduct these audits would include the following: • experience with similar regulatory systems, including dispatch-based processes; • that it be a Florida Firm (registered in the State of Florida), preferably with a South Florida office; and • that Staff assigned to the project from the successful firm must have at least one of the following certifications: • certified public accountant; • certified fraud examiner; • certified fraud specialists; or • certified public auditor. An expedited timeline is envisioned for the component of the review relating to the Code Compliance Division, Fire inspections and Parking enforcement. Ideally, we would like to see the selected firm complete their review of these three areas within 120 days of contract execution, with separate final reports to follow on each individual area of review within 30 days. The balance of the areas for review would follow a timeline to be determined at the time of Agreement execution. If a contract is successfully negotiated by the end of June, field work on the first three audit areas could take place between July and October,with final reports for those three areas due in November.A timeline for the completion of the external audit of all other areas would be developed with the selected firm. Please refer to ATTACHMENT 4 for the DRAFT scope of services. A preliminary list of potential consultants to perform these external audits was also developed at the initial meeting. It would be recommended that a process similar to that used in the selection of Watson Rice be initiated for this process, designating Commissioner Weithorn to assist the administration in developing the short list of questions that the interested firms would respond to; reviewing and selecting the firm; negotiating the engagement agreement; and serving as a liaison to the administration during the audit process. The fees for the agreement would be negotiated, at a not to exceed amount of $150,000. CONCLUSION As you know, I have, in the past, initiated investigations of criminal misconduct whenever any information has come to my attention. I have sought out assistance from the State Attorney's Office and the Miami Beach Police Department, and even allocated investigative resources to ensure that criminal behavior is rooted out and removed from our organization. I have spoken with U.S. Attorney for the Southern District of Florida, Wifredo Ferrer, and assured him that we will continue to give our full support to his office and the FBI as the investigation continues. I and others from the City have met with representatives from the FBI on several occasions since April 11th to assist in their investigation and provide any information they have requested. Action Items-April 11 Events Page 8 of 8 To enhance these above-recommended efforts and assist me directly on all similar matters, I have reached out to former U.S. Attorney for the Southern District of Florida, Roberto (Bob) Martinez, to serve in an advisory capacity on matters related to protecting the integrity of our operations. The Administration recommends that the Mayor and City Commission approve the attached resolutions which will assist the City is further identifying any internal weaknesses and process improvement needs, in particular in our departments and divisions with regulatory roles, and in rooting out inappropriate conduct at any level of this government. In summary, this includes: 1) Authorizing the City Manager and City Clerk to execute a Memorandum of Understanding between the City and the Federal Bureau of Investigation, Miami Area Corruption Task Force; 2) Authorizing the City Manager and City Attorney to finalize the negotiations of an agreement with the Miami-Dade County Office of the Inspector General (MDCOIG), authorizing the MDCOIG to provide independent investigations into city practices and operations in order to prevent and detect fraud,waste,financial mismanagement, employee misconduct or other abuses; 3) Authorizing the City to enter into an agreement with the Miami-Dade County Commission on Ethics and Public Trust, to develop and provide a comprehensive ethics training program for city employees who hold positions that are in regulatory areas of the city; and 4) Waiving competitive bidding and authorizing the City Manager to work with Commissioner Weithorn to identify, negotiate and execute a professional services agreement, in an amount not to exceed $150,000, with a qualified firm for services related to auditing the processes of certain regulatory departments or divisions. ATTACHMENTS JMG/hmf DRAFT SCOPE OF SERVICES PROFESSIONAL SERVICES AGREEMENT (PSA) FOR SERVICES RELATED TO THE EXTERNAL AUDITING THE PROCESSES OF CERTAIN REGULATORY DEPARTMENTS OR DIVISIONS TERM: One (1) year from date of execution by all parties; Completion of first phase of reviews within 120 days of contract execution, with separate final reports to follow on each individual area of review within 30 days. TERMINATION: PSA may be terminated for any reason, including convenience, by either party by thirty (30) days' written notice to the other party. SCOPE: • Review organizational structure and functions • Review internal controls • Review department/division processes (including uses of technology) • Review department/division operations • Development recommendation: process improvement, internal controls, efficiencies, etc. Audit focus: • Code Compliance Division* • Fire Inspection process* • Parking Enforcement Division* • Fire Prevention Division (permitting processes only) • Public Works Department (permitting processes only) • Planning Department (permitting process, concurrency fees, impact fees and other related areas), • Special Master Process *to be completed within the first 150 days following engagement, timeline for balance of areas FEES: Fee to be negotiated; not to exceed $150,000.00.