OIG Annual Report 2020Joseph M. Centorino, Inspector General
O F F IC E O F TH E IN S P E C T O R G E N E RA L
A N N U A L R E P O R T 2020
T O :
F R O M :
R E :
D A T E :
H o n o rab le M a yo r an d M em be rs of the C ity C om m ission
Jo se p h M . C e nto rino, Inspe ctor G e ne ral
A n n ua l R e p o rt of O IG A ctivity
N o vem b e r 1, 20 2 0
T h is an n ua l re port is sub m itt e d to the M a yor and C ity C om m ission by the City of M iam i Beach
O ff ic e of the In sp e ctor G ene ral in com p lia nce w ith Se ction 2-256 U) of the City of M iam i Beach
C o d e .
C R E A T IO N O F O F FIC E A N D A P P O IN T M E N T O F IN S P E C T O R G E N E RA L
T h e C ity of M ia m i B e a ch O ff ice of the In spector G eneral w as created as a result of a ci tizen
re fe re n d u m in N o ve m b e r 2018, in w hich a pro posed Chart er A m endm ent w as passed
o v e rw he lm in g ly by the vote rs, establish ing the off ice as "an independent body to perform
in v e stig a tions, au d its, re vie w s, and oversig ht of m unicipal m atters including City contracts,
pro g ra m s, proje cts, an d expe nd itures, in orde r to identify effi ci encies, and to detect, investigate
a n d prev e nt fr au d , w a ste , m ism ana ge m ent, m iscond u ct, and abuse of pow er."
B y virt ue of the enab lin g ord in ance adopted to fle sh out the offi ce's scope of activity, the office is
pro v id e d w ith the authority to "cond uct any review s, audits, or investigations relating to any past,
pre se n t, and pro po se d C ity contracts, pro gram s, pro jects, and expenditures," as w ell as to
co n d u c t "any revie w s, au d its, inspections, or investigations relating to City D epartm ents,
a g e n cie s , bo a rds, an d co m m itt ees." T he offi ce w as also granted pow er to subpoena w itnesses,
a d m in ister oa ths, an d req u ire the prod uctio n of records, and to "require report s fr om the C ity
M an a g er, C ity dep a rt m e n ts, C ity age ncie s, boa rds and com m ittees, and City officers and
e m p lo y e e s , reg a rd in g any m a tt er w ithin the jurisdictio n of the Inspector G eneral."
T h e In s p e cto r G e n e ra l is cho se n by an inde pe ndent A d H oc Selection C om m ittee subject to the
a p p ro v a l of the C ity C o m m issio n . Follo w ing a le ngthy selection pro cess, Joseph M . C entorino
w a s sele cte d as In sp e cto r G e neral by the A d H o c C o m m ittee and his appointm ent to a fo ur-year
te rm w a s ap p ro ve d by the C ity C o m m issio n on O ctober 16 , 2019. M r. C entorino began service
a s In s p e cto r G e nera l on N o ve m ber 1, 2019.
Page 1 of 16
O R G A N IZA T IO N O F O F F IC E
Prior to his appointment as Inspector General, Mr. Centorino served as Executive Director and
General Counsel at the Miami-Dade Commission on Ethics, and previously served as Chief of
the Public Corruption Division at the Miami-Dade State Attorney's office. In those capacities he
became familiar with the functions of an Inspector General Office by virtue of working on joint
investigations with the Miami-Dade OIG, participating in their conferences and training sessions,
and collaborating with its staff on various County issues of mutual concern, including legislation
affecting his employing agencies as well as all municipalities within the County.
Before beginning his service in Miami Beach, he met with the senior staff of the Miami-Dade and
Broward County OIGs to review their procedures and systems of operation and performance. He
also reviewed the operations of the City of Miami Beach and its various departments through its
website. During the first few weeks of the OIG's existence, the Inspector General met personally
with all City Department directors, as well as with many City staff members, to discuss the role of
the OIG and establish working relationships with City decision-makers.
The City of Miami Beach is the first City of its size in the State of Florida to establish such an
office. It was understood at the time of the creation of the office that, due to practical fiscal
considerations, the City of Miami Beach OIG would not have the extensive in-house investigative
resources with which many OIG offices at County and State levels are equipped. At the same
time, given the unique and complex issues often dealt with In Miami Beach, particularly in the
area of resiliency and climate change, part of the IG's initial organizational strategy was to
supplement staff resources whenever possible through collaboration with the City of Miami Beach
Police Department as well as other law enforcement and regulatory agencies inside and outside
of Miami Beach.
New OIG Positions
At the time of the commencement date of the OIG on November 1, 2019, funding for the position
of Inspector General, as well as for three new staff positions had been budgeted by the City for
FY 2019-2020. The additional positions included one investigator and two auditors to be added
to the existing Office of Internal Audit staff which was to be subsumed into the OIG. Due to the
critical need for investigative staff, the Inspector General decided to alter those positions to two
investigators and one auditor. Salary adjustments were made in order to stay within budget and
to cover what would otherwise have resulted in a budget shortfall.
Existing Audit Staff
The personnel of the Office of Internal Audit, which previously reported to the City Manager, was
assigned to the OIG, and hence became independent of the City Administration. Inasmuch as
auditing is one of the key functions of an OIG, this was a positive move by the City. Internal Audit
at that time was led by Interim Internal Auditor Mark Coolidge, a CPA and longtime City employee.
The rest of the office of Internal Audit consisted of three Internal Auditors, four Tax Auditors, and
one vacant Tax Auditor position.
Internal Auditors perform the auditing function served by most OIG auditors. They have the
professional training to conduct detailed audits of any governmental activity within the OIG's
purview, such as an audit of a City department for compliance, waste and/or efficiency, as well
Page 2 of 16
a s o f a n y C ity c o n tra c t o r C ity p r o g ra m . T h e y a ls o a re tra in e d to d ra ft d e ta ile d re p o rt s , a s w e ll a s
to c re a te s p r e a d s h e e ts a n d o th e r c o m p ila tio n s to ill u s tra te th e ir fi n d in g s .
T a x A u d ito r s c o n d u c t a u d its o f re v e n u e s o w e d to th e C ity b y re s o rt ta x fil e rs o r s a n ita tio n
c o m p a n ie s (w a s te c o n tra c to r s a n d ro ll-o ff c o m p a n ie s ). T h e y s e rv e a n a rro w e r fu n c ti o n th a t
in v o lv e s a re v ie w o f th e re c o r d s o f re v e n u e s g e n e ra te d b y h o te ls , a p a rt m e n t b u ild in g s ,
b a r s /n ig h tcl u b s a n d re s ta u r a n ts , a s w e ll a s a p p lic a b le s a n ita tio n c o n tra c to rs , a n d th e p a y m e n ts
d u e to th e C ity fr o m th o s e fu n d s . A lth o u g h u n u s u a l fo r m o s t m u n ic ip a litie s , th e ir ro le is c o n s is te n t
w ith O IG fu n c tio n s . T h e ir w o r k in u n c o v e rin g u n p a id ta x a s s e s s m e n ts o ft e n le a d s to in c re a s e d
re v e n u e s p a id to th e C ity . R e s o rt T a x A u d ito rs a re p a id fr o m th e C ity 's re s o rt ta x re c e ip ts a n d th e
S a n ita tio n T a x A u d ito r is p a id w ith S a n ita tio n fu n d s , w h e re a s th e In te rn a l A u d ito rs a re p a id
p r im a r ily fro m th e C ity 's G e n e r a l F u n d .
A u d it S ta ff C h a n g e s
A fte r a c o u p le o f m o n th s o f w o r k in g w ith th e a u d it s ta ff a n d o b s e rv in g th e ir w o rk , th e In s p e c to r
G e n e r a l n a m e d th e C ity 's In te r im In te rn a l A u d ito r, M a rk C o o lid g e , C .P .A , C .I.A., a s C h ie f A u d ito r
o f th e O IG . N o rm an Bl ai o tt a , C .I.A ., pr e vi o u sl y S e n io r A u d ito r, a n d a ls o a C e rt ifi e d F ra u d
E x a m in e r , w a s p ro m o te d to D e p u ty C h ie f A u d ito r . R e s o rt T a x A u d ito r J e s s ic a R o m e ro w a s
p ro m o te d to th e n e w In te rn a l A u d ito r p o s itio n b a s e d u p o n h e r o u ts ta n d in g p e rf o rm a n c e re v ie w s
a n d p o te n t ia l v a lu e to th e a g e n c y a s a p e rm a n e n t In te rn a l A u d ito r. H e r p re v io u s p o s itio n a n d th e
v a c a n t T a x A u d ito r p o s itio n w e re fi lle d b y n e w h ire s , T o m a s V a ld e s a n d J u a n O s p in a , b o th o f
w h o m h a d p r e v io u s ly h e ld T a x A u d ito r IV p o s iti o n s a t th e F lo rid a D e p a rt m e n t o f R e v e n u e .
In v e s tig a tiv e S ta ff
T h e u s u a l m o d e l fo r in v e s tig a tiv e s ta ff a t a n O IG fa v o rs fo rm e r o r re tire d p o lic e o r o th e r la w
e n fo r c e m e n t a g e n ts . T h a t w a s n o t th e m o d e l fo llo w e d a t th e C ity O IG fo r tw o re a s o n s . O n e
re a s o n w a s b a s e d o n th e m a jo r p e n d in g c o n s tru c tio n c o n tra c ts in th e C ity , w h ic h w o u ld re q u ire
m o r e s o p h is tic a te d a n a ly tic a l a n d in v e s tig a tiv e to o ls th a n u s u a ll y fo u n d in la w e n fo rc e m e n t. S u c h
p ro je c ts w e r e a p p a r e n t in th e C ity 's re s ilie n c y a n d G .O . B o n d p ro g ra m s . T h e fo rm e r h a d a lre a d y
ra is e d s e r io u s is s u e s o f m is c o n d u c t a n d /o r m is m a n a g e m e n t in th e P a lm /H ib is c u s a n d In d ia n
C re e k p ro je c ts , a n d h a d b e e n th e s u b je c t o f re q u e s ts fo r O IG in v e s tig a tio n b y C ity C o m m is s io n
m e m b e rs e v e n b e fo re th e o ffi c e b e g a n its w o rk . T h e G .O . B o n d p ro je c ts w e re e x p lic itly n a m e d in
th e O IG e n a b lin g o r d in a n c e fo r th e n e w a g e n c y to c lo s e ly m o n ito r a n d re p o rt o n to th e C ity
C o m m is s io n .
T h e s e c o n d re a s o n is th a t a n u n d e rs ta n d in g w a s re a c h e d b y th e In s p e c to r G e n e ra l w ith th e C ity
o f M ia m i B e a c h P o lic e D e p a rt m e n t fo r its In te rn a l A ff a irs U n it to w o rk jo in tly w ith th e O IG o n
in v e s tig a tio n s in to m is c o n d u c t b y C ity p e rs o n n e l in v o lv in g p o te n ti a l c rim in a l v io la tio n s . T h e ir
a s s is ta n c e to th e O IG h a s p ro v e n v a lu a b le a n d h a s p ro v id e d th e O IG w ith la w e n fo rc e m e n t
s u p p o rt w h e n e v e r n e e d e d . In th e e v e n t o f c irc u m s ta n c e s th a t w o u ld re q u ire a n o u ts id e la w
e n fo r c e m e n t a g e n c y , p u b lic c o r r u p tio n u n its a t th e M ia m i-D a d e S ta te A tt o rn e y 's O ffi c e , M ia m i-
D a d e P o lic e D e p a rt m e n t a n d F lo r id a D e p a rt m e n t o f L a w E n fo rc e m e n t w o u ld b e a v a ila b le to a s s is t
th e O IG .
D u e to th e s e fa c to r s a n d th e O IG 's lim ite d in v e s tig a tiv e s ta ff , th e tw o O IG in v e s tig a ti v e p o s itio n s
w e re fi ll e d w ith p e r s o n s h a v in g n o t o n ly in v e s tig a tiv e e x p e rie n c e , b u t a ls o h a v in g b ro a d
e x p e r ie n c e in g o v e rn m e n t a t d iff e re n t le v e ls a n d th e c a p a b ility o f h a n d lin g a n d re p o rt in g o n
s o p h is tic a te d a n a ly s e s o f c o m p le x lo c a l g o v e rn m e n t p ro g ra m s .
P a g e 3 o f 1 6
S p e c ia l A g e n t F . Ja m e s M c G e e h o ld s a B .S . in Jo u rn a lis m fro m the U n iv e rsity of F lo rid a . H e ha s
se rv e d a s a n in v e s tig a to r a t th e M ia m i-D a d e C o m m iss io n o n E th ics; a licen se d private
in v e s tig a to r in V irg in ia a n d F lo rid a , sp e c ia liz in g in civ il fa ct in v e stig a tio n s ; a sta ff inve stig a tor in
W a sh i ng ton D .C . wi th th e U .S . S e n a te H o m e la n d S e c u rity a n d G o v e rn m e n ta l A ff a irs C o m m itt ee s;
a n in v e s tig a tiv e re p o rt e r w ith th e Washing ton P ost, and, during the 1980's, with the M iam i Herald
where he was a member of a Pulitzer Prize winning reporting team on the Iran-Contra Affair. He
is an author, a credentialed Certified Fraud Examiner and holds a Certificate in Forensic
Accounting from Georgetown University.
Special Agent Jani Kline Singer, Esq., is an attorney and Florida Bar member who for seven years
served as a prosecutor in the Miami-Dade State Attorney's Office Public Corruption Unit, leading
significant local government corruption investigations and prosecutions. She holds a Bachelor
Degree in Politics and Sociology from Mount Holyoke College and a J.O. from the University of
Miami School of Law. Ms. Singer is also a former public defender at the Miami-Dade Public
Defender's Office; and a former managing attorney of Children's Legal Services at the Florida
Department of Children and Families. In addition, she has extensive local experience as a
nonprofit board member and social justice consultant, and is a longtime resident of Miami Beach.
Scope of Activity
As noted above, the scope of activity of the OIG, based on the enabling ordinance, includes, in
addition to investigations and audits, other types of inquiry and reporting such as reviews,
inspections, and contract oversight. Reviews and inspections may involve more flexible and
limited oversight and are denoted as such when reports are generated from such activity.
Contract oversight is a key function of an OIG, and may range from a focused review of a City
contract provision or procurement procedure, to much more in-depth investigations or audits.
There is currently no discrete contract oversight position in existence at the OIG, and, therefore,
any of the OIG's investigators or internal auditors may be involved in contract oversight.
OIG Contract Allocation Fee
Similar to Miami-Dade County's dedicated funding source for its OIG budget, which is based on
a percentage of County contracts payable by the vendors, a contract surcharge of 1.5% of City
contracts to be paid by City vendors was proposed as the source of funding the City's newly-
created OIG. Due to technical considerations raised by the City Finance Department, a revised
measure adopted by the City Commission in January 2020, which created a .5% contract
allocation fee, payable by the City Department rather than the contractor, and applied to non-
exempt contracts, either entered into or on which a competitive solicitation was issued prior to
April 1, 2020. The amount allocated from any individual contract was capped at $50,000.
It was understood that any shortfall in the amount raised by the fee would be covered by the
General Fund. The OIG has monitored the amount of the fees generated by the contract
allocation, which at this point appears to be much less than anticipated, due in part to some
confusion among City departments concerning its applicability. It is anticipated that the OIG and
Finance Department will be requesting a reassessment of this policy by the City Commission in
the near future.
Page 4 of 16
OUTR EA CH
The most important currency for a public investigative agency is information. In dealing with
issues such as fraud, waste, abuse or other serious mismanagement or misconduct, there is no
substitute for accurate, truthful inside information from individuals positioned to possess
knowledge of the facts. To be successful in the quest to capture such intelligence, an agency
must be known, accessible and trusted. The strong public support for creation of the Miami Beach
OIG was an indication that the public understood the important role that an OIG could play in
promoting integrity and efficiency in City government. A vital part of the OIG's mission is to tap
into that support and maximize the flow of information to the agency.
The City Manager's decision to locate the OIG in Historic City Hall on Washington Avenue was
an inspired one. The location is well known and easily accessible. It is next to the Miami Beach
Police Department. And it affords any City employee or official, or any member of the public, the
opportunity to visit the OIG in a confidential man ner. Th e renovated offices on the 6 and 4
floors are reserved exclusively for the OIG and have the space and up-to-date technological
equipment needed for its operations.
During its first year, the OIG has made an effort to promote and publicize the OIG's functions and
services. With the generous assistance of the City's Department of Marketing and
Communications, an attractive logo was designed for the agency and a website created at
www .mbinspectorgeneral.com (also accessible through the City's website) which describes its
mission and staff, provides important legal information about its role, as well as access to its
completed audits, investigations and other reports. It provides the means for anyone to contact
the agency by email on a confidential basis, as well as a telephone hotline number. The hotline
phone is always in the possession of a staff member. With the Marketing & Communications
Department's creative design assistance, an OIG poster has been printed and distributed for
display in public and private venues, with hotline, email and website information. The poster will
also be displayed in the Miami Beach Magazine and in City trolleys.
The best way to engage the public is through direct, personal contact. The Inspector General has
accepted all invitations to appear as a speaker at any meeting or gathering of a civic or community
organization. These have included a session sponsored by Commissioner Samuelian at the
MBPD and a virtual appearance at Commissioner Steinberg's Mondays With Micky. The
Inspector General and/or staff members will accommodate any Commission member or other
official or private group host who requests the OIG's appearance and participation at any
appropriate event. Almost all of these appearances have generated further contact with the OIG
by individuals present at the event. Appearances at future in-person programs with local groups
will resume as soon as they can safely occur.
PROFESSIONAL TRAINING
The audit and investigative processes in an Office of Inspector General are similar to, but not
always the same as, those same functions in other government entities. The Association of
Inspectors General {AIG), located in Philadelphia, through its Training Institutes, offers
certification courses for OIG personnel in their respective disciplines.
During the past year, both of the OIG's investigators became Certified Inspector General
Investigators. The OIG's Chief Auditor, Deputy Chief Auditor, and one Internal Auditor became
Page 5 of 16
Certified Inspector General Auditors. It is expected that the remaining OIG Internal Audit staff will
become certified within the next year, COVID-19 permitting. In addition to obtaining their
certifications, staff have received AIG sponsored training in "Fighting Fraud in the Government,"
"Fraud in Capital Projects and the Construction Process," and others.
OIG staff have also been provided membership in the Florida Chapter Association of Inspectors
General, which includes State of Florida Inspectors General as well as local Inspectors General
in Miami-Dade, Broward, and Palm Beach Counties and in the Cities of Jacksonville and
Tallahassee. The Florida Chapter sponsors annual training sessions open to its members and
serves as a resource for its member offices. Specialized training may also be provided among
its members. A special training session on contract oversight was arranged with the Miami-Dade
County OIG for all Miami Beach OIG personnel.
COMPLETED INTERNAL AUDITS
1. Taste Bakery MC City Hall LLC d/b/a Taste Bakery Café Audit
Testing by OIG staff concluded that compliance with the Lease and Concession
Agreements was generally adequate and their terms were being adhered to. The audit
determined that as a result of untimely rental payments, the tenant owes an additional
$954.1 O to the City. In addition, the tenant's insurance coverage should be further
reviewed to ensure compliance with the terms of the agreement.
2. State Beachfront Management Agreement (No. 3595) Audit
State Beachfront Management Agreement No. 3595 requires the City of Miami Beach to
remit 25% ("sand tax") from any and all monies collected from private concessionaires or
other private concerns for the use of State beachfront property to the State of Florida. It
also requires the City to provide the State of Florida with an annual audited report of all
monies collected from concessionaires.
The following shortcomings were noted during OIG's audit of the operational controls
surrounding the City's management of Agreement No. 3595, that need improvement:
a. The City inadvertently overpaid the State $2,363.94 due to 17 identified incorrect
general ledger entries.
b. Ten transactions were identified that were underbilled by $7,051.00. Of these ten,
the Shelborne Hotel owed $6,072.00, which was not included on the master
summary schedule provided to the Licensing Section by the Office of Real Estate.
One beachfront property, overbilled by $1,320.00 during the 2017/18 fiscal year,
still has not received a credit, and amounts owed from prior years by the Versailles
and Triton Tower-AC Hotels have not been resolved.
c. The Finance Department's Licensing Section incorrectly overbilled one entity by
$810.00 in beachfront concession permit fees.
d. The tested Boucher Brothers lnc.'s 21st & 46th Street concession payments were
not properly distributed among the City's general ledger accounts by the Office of
Real Estate and were not calculated in accordance with Section 4.2 of the
Concession Agreement's terms, resulting in a $72,151.72 underbilling to Boucher
Brothers by the City and a $13,470.94 sand tax underpayment to the State. If the
Page 6 of 16
C ity 's in te r p r e ta tio n o f th e a g re e m e n t d iff e rs fr o m th a t o f th e O IG a n d C ity A tt o rn e y ,
th e n th e a g r e e m e n t s h o u ld b e re v is e d b y th e C ity C o m m is s io n .
e . P e n ro d B ro th e r s In c . in c o rre c tl y re p o rt e d fo o d a n d b e v e ra g e s a le s to th e C ity
re s u ltin g in a n e t o v e r p a y m e n t o f $1 1 3 .5 6 to th e S ta te .
f. T h e O ff ic e o f R e a l E s ta te d id n o t in c lu d e s a n d ta x o n th e lu m p s u m a m o u n t p a id
b y P e n r o d 's B ro th e rs , re s u ltin g in a $5 5 5 .2 5 u n d e rp a y m e n t to th e S ta te .
3 . F o ll o w -U p R e v ie w o f th e S ta te B e a c h fr o n t M a n a g e m e n t A g re e m e n t (N o . 3 5 9 5 ) A u d it
O f th e n in e fi n d in g s c o n ta in e d in th e re p o rt th a t re q u ire d c o rre c tiv e a c tio n b y a C ity
d e p a rt m e n t , e ig h t re c o m m e n d a tio n s w e re fu ll y im p le m e n te d a n d o n e re c o m m e n d a tio n
w a s p a rt ia lly im p le m e n te d . It w a s re c o m m e n d e d th a t th e O ffi c e o f R e a l E s ta te a d d re s s
th e o n e o p e n ite m c o n c e rn in g th e a c c u ra c y o f th e b illin g o f B o u c h e r B ro th e rs c o n c e s s io n
p a y m e n ts .
4 . P u b lic W o r k s D e p a rt m e n t's W a re h o u s e In v e n to ry A u d it
B a s e d u p o n re s u lts o f te s t c o u n ts a n d in v e n to ry re p o rt s , O IG s ta ff re c o m m e n d e d th a t th e
F in a n c e D e p a rt m e n t u s e th e v a lu a tio n o f $1 ,7 9 5 ,5 0 0 .6 7 a s o f S e p te m b e r 3 0 , 2 0 1 8 . T h e
a n n u a l p h y s ic a l in v e n to ry w a s c o n d u c te d e ff e c tiv e ly , w ith th e c o rre s p o n d in g v a lu a tio n
d e e m e d re a s o n a b le . W a r e h o u s e s ta ff s h o u ld b e c o m m e n d e d fo r lo w e rin g th e s tra tifi e d
s a m p le 's c a lc u la te d p e r c e n ta g e d iff e re n c e to 0 .0 0 % fr o m th e p rio r y e a r's 5 .6 9 %.
5 . B u ild in g D e p a rt m e n t P e r m it F e e S u r c h a rg e s A u d it
T h is re p o rt is th e re s u lt o f a n a u d it c o n d u c te d to re v ie w th e B u ild in g D e p a rt m e n t's
c o m p li a n c e w ith th r e e te s te d p e r m it fe e s u rc h a rg e s a s d e fin e d in th e F lo rid a S ta tu te s , th e
M ia m i-D a d e C o u n ty C o d e a n d /o r th e M ia m i B e a c h C ity C o d e . T e s tin g d e te rm in e d th a t
th e p e r m it fe e s u r c h a r g e s a s s o c ia te d w ith F .S . 5 5 3 .7 2 1 w e re in c o rre c tly c a lc u la te d ,
re s u ltin g in a n a d d itio n a l a m o u n t o f $10 5 ,1 1 3 .9 7 d u e to th e D e p a rt m e n t o f C o m m u n ity
A ff a ir s (D C A ). In a d d itio n , p e rm it fe e s u rc h a rg e s a s s o ci a te d w ith F .S . S e c tio n 4 6 8 .6 3 1
w e r e in c o r re c tly c a lc u la te d , re s u ltin g in $8 6 ,3 0 6 .4 2 d u e to th e F lo rid a D e p a rt m e n t o f
B u s in e s s a n d P ro fe s s io n a l R e g u la tio n (D B P R ). 1 7 o f 18 te s te d q u a rt e rly p e rm it fe e
s u r c h a r g e p a y m e n ts d u e to th e D C A a n d th e D B P R w e re n o t re m itt e d tim e ly in a c c o rd a n c e
w ith F .S . S e c tio n s 5 5 3 . 7 2 1 a n d 4 6 8 .6 3 1 . M o n th ly p e rm it fe e s u rc h a rg e p a y m e n ts d u e to
M ia m i-D a d e C o u n ty w e re n o t re m itt e d tim e ly , re s u ltin g in th e in c o rre c t d e d u c tio n o f
$4 ,2 0 3 .8 9 in o ff e r e d d is c o u n ts . L a s tly , C ity C o d e S e c tio n 14 -7 0 ( 1) c o n ta in s a p e rm it fe e
s u r c h a rg e ra te th a t d iff e r s fr o m th e ra te in F .S . 5 5 3 .7 2 1 a n d s h o u ld b e c o rre c te d .
6 . M ia m i B e a c h T e n n is M a n a g e m e n t, L L C M a n a g e m e n t A g re e m e n t (F la m in g o P a rk T e n n is
C e n te r ) P re lim in a r y O b s e rv a tio n s
A lth o u g h th is a u d it w a s n o t c o m p le te d b e c a u s e th e c o n tra c to r te rm in a te d its a g re e m e n t
w ith th e C ity , th e fo llo w in g p re lim in a ry o b s e rv a tio n s w e re n o te d :
a . T h e c o n tra c to r o p e ra te d th e F la m in g o P a rk T e n n is C e n te r a n d th e N o rt h S h o re
T e n n is C e n te r w ith o u t o b ta in in g its a n n u a l b u s in e s s ta x re c e ip ts fo r e ith e r fa c ility .
In a d d itio n , s ix o f th e 1 4 k n o w n te n n is p ro fe s s io n a ls a p p e a re d n o t to h a v e o b ta in e d
th e ir 2 0 1 9 /2 0 fi s c a l y e a r b u s in e s s ta x re c e ip ts a s o f N o v e m b e r 2 7 , 2 0 1 9 .
b . F o u r c h e c k s is s u e d d u r in g th e 2 0 1 8 a n d 2 0 1 9 c a le n d a r y e a rs to th e C ity w e re
re tu rn e d d u e to in s u ff ic ie n t fu n d s .
P a g e 7 o f 1 6
c. T he contra ctor im pro perly m a intained a second checking accou nt to w hich the C ity
did not have access, and it w as incorrectly used to pay som e expe nses fr om its
M ia m i Shores Tennis C enter.
d. So m e tennis professionals com plained that they w ere not pa id tim e ly fro m the
contractor, one of w hom provided support ing do cum entation.
e. 1,14 5 of 5,864 lessons given w ere at rates that did not appe ar to m a tch any of
tho se listed in Exhibit K of the agreem e nt. 358 individuals received te nn is le sso ns
at no charge, and one w as charged m o re than the highest perm issib le rate .
7. Parking and P olice Depart m e nt R equested Tow s O perationa l A udit
T hree separa te audit report s w ere issued that address the O IG 's testing pe rf orm e d relative
to Beach Tow ing Serv ices, Inc., Trem o nt Tow ing Inc. and of the C ity de part m e nts, Pa rking
and P o lice , involved in the tow ing pro cess. These audits address a sig n ificant num be r of
deficie ncies in need of pro m pt corrective action ranging fr om neede d revisio ns in the
negotiated T ow ing Perm its, inaccurate C ity billings, poor C ity oversig ht and the tow
com pa nies' unsatisfactory pe rf orm a nce (especially by B each Tow ing S e rv ices, Inc.). The
current public tow structure is not functioning as w ell as it should, as tow custom e rs' rig hts
are not being adequately enfo rced and there appea rs to be overcha rging by the tow
com panie s fo r som e serv ices.
T he fo llow ing short com ings w ere noted during testing that need corrective actio n by the
C ity:
a. P arking and Police D epart m e nt's requested tow s w ere not pro pe rly bille d du ring
the audit period resulting in an estim ated unde rbilling of $24 ,8 2 2 ($2 1,5 77 fo r
P arking + $3,245 fo r P olice).
b. 12 of 26 tested P olice D e part m e nt billings w ere prepared after de sig na ted due
dates per Tow ing P erm it Section 3 (46.15 %) ranging fr om a lo w of tw o da ys late
fo r D ecem ber 20 17 to a high of 33 days late fo r N ovem ber 20 17 .
c. T he current Tow ing Perm its contain som e contradictory w ording w hich created
confusio n as to the ir interpretation, including charges fo r do llie s, ad m in istrative
fees, after-hours fees and hook-up fees; and the tow com pan ie s' acceptance of
add itional fo rm s of paym ent.
d. Form a l com plaint lo gs w ere not m a intained by the C ity's P arking and Po lice
D epart m e nts, w hich im peded verification that the actions requ ired unde r S ectio n
29 of the Tow ing P erm its w ere tim e ly perf orm e d.
e. T he tow truck operators' arrival tim es w ere not recorded fo r P o lice D e pa rt m e nt
reque sted tow s, creating an obstacle in determ ining com pliance w ith the 20-m inute
re sponse tim e required unde r Section 14 of the Tow ing P erm its.
f. T he P arking Depart m e nt did not m aintain adequate docum entatio n as to w hy the
tow com panies w ere not alw ays altern ated. B each Tow ing pe rf orm e d 15 m o re
public tow s than Trem o nt T ow ing during the 13 -m onth audit pe rio d .
g. P arking and Police D epart m e nt staff w ere unaw are that the tow co m p a nie s did not
m a intain the required insurance coverage in accorda nce w ith S e ctio n 4 of the
Tow ing P erm its.
h. T he Parking D epart m e nt's S tanda rd O perating Pro cedures w e re inco m p lete , and
P arking Enfo rcem e nt Specia lists present at the tow s did not do cum e nt V ehicle
S torage Receipts w he n usage of dollies or flatbed serv ices w ere w a rranted .
P age 8 of 16
8 . Be a ch Tow in g S erv ice s, Inc. - Tow ing A ud it
T he follo w in g short co m ings w ere no ted du ring testing that require corrective action by
Be a ch Tow in g:
a . Be a ch To w in g cha rge d the $40 fee fo r dollies or flatbed serv ices appro xim ately
65 0 % m ore fre q ue ntly tha n Trem ont Tow ing (7,179 com pared to 1,106) resulting
in an estim a ted $25 8,870 in add itiona l revenues during th e 13-m onth audit period.
b. Te stin g determ ined that B each T ow ing overcharged 55 Cl ass "B ", 73 Cl ass "C"
and 12 Cl a ss "D" sam p l e d custom e rs on hook-up fees of the 148 review ed
(14 0 /14 8 = 94.59%) based on an ana lysis of their gro ss vehicle w eight ratings.
c. Be a ch Tow ing cha rged the la bor to engage/tow fee fo r vehicle entry on 11,441 of
th e 11 ,6 14 teste d pu blic tow s tha t w e re charged hook-up fees during the audit
pe rio d (98 .51 % ). A review of Pa rking and Police D epart m ent pro vided body
ca m e ra fo o ta ge fo und that all 14 tested tow operators did not enter the vehicles at
the to w lo ca tions.
d. The am ou nts cha rge d by B each T ow ing fo r sam pled O ctober 2018 storage fees
co u ld no t be verifie d be cause their em ployees did not recor d the tim e/date
in d icatin g w hen the ow ners retrieved the tow ed vehicles.
e. The am ou nts charge d and collected by Beach Tow ing fo r state sales taxes on
ad m in istrative and/or storag e fees fo r Police D epart m ent requested tow s does not
ap p e a r to be ju stified .
f. Be a ch Tow ing did not m aintain the required insurance coverage in accordance
w ith Se ction 4 of the Tow ing P erm its.
9 . T rem ont Tow ing, Inc._- Towi ng A ud it
T he fo llo w in g sh ort co m ings w ere noted du ring testing that require corrective action by
T re m ont T ow in g :
a. 12 of 20 sa m pled T rem o nt Tow ing custom ers w ere overcharged fo r dollies or
fla tbe d se rv ice s during a 14 -day test period, as such equipm ent w as not used at
the to w lo cations, based on availab le Parking D epart m ent body cam era fo otage.
b. Tre m o nt T ow in g , Inc. overcha rge d 16 C lass "B ", fo ur Class "C " and five Class "D "
veh icl e ow ne rs hoo k-up fee s of the 42 review ed (59.52%) based on an analysis of
their gross veh icl e w eig ht ratings and other pro vided docum entation.
c. T re m o nt T o w in g cha rged the $3 0 la bor to engage/tow fee fo r vehicle entry on
11 ,23 0 of the 11,294 public tow s tha t w ere charged hook-up fees during the audit
pe rio d. Te sting de term ine d tha t Trem o nt Tow ing overcharged its custom ers labor
to en g a g e /tow fees fo r 12 of the 25 tow s sam pled in O ctober 2018, based upon a
revie w of Pa rking and Po lice D e pa rt m ent body cam era fo otage, show ing that the
tow op e rato rs w e re not accessing the vehicles at the tow locations.
d . The tim e s tha t vehicle s w e re im po u nde d and/or released to their ow ners w ere not
alw a ys indicate d on Trem ont Tow ing's invoices.
e . The a m ou n ts charge d and colle cted by T rem ont T ow ing fo r state sales taxes on
ad m in istra tive and/or storage fee s fo r Police D epart m ent requested tow s do not
ap p e a r to be ju stified .
f. Tre m ont T o w in g did not m a intain the required insurance coverage in accordance
w ith Se ction 4 of the Tow ing Pe rm its, but subsequently pro vided evidence verifying
tha t the y had re so lved the coverag e de ficiencies.
P age 9 of 16
g . T re m o n t T o w in g 's in v o ice s co n ta in e d tw o se p a rate lin e ite m s co n ce rn ing the la b o r
to e n g a g e /to w fe e a n d th e e x tra la b o r o r e xtra w a itin g tim e fe e tha t contrad icte d
th e la n g u a g e in th e T o w in g P e rm its .
10. S e m i-a n n u a l F in a n c e R e vi e w s - F is cal Y e a r 2 0 19 /2 0
T h e p u rp o se o f th e se re v ie w s is to te st C ity sta ff s co m p lia n ce w ith re co m m e nd a tio ns fr o m
th e B O O a u d it co n d u c te d a s a re su lt o f a $3 .6 m illio n fr a u d in v o lvin g th e C ity's T re a su ry
D e p a rt m e n t a n d A u to m a tic C le a rin g H o u s e d is b u rse m e nts d u rin g th e fa ll of 20 16 .
T h e F irst R e v ie w fo c u s e d o n co m p lia n c e w ith re co m m e n d a tio n s nu m b e red 17 , 27 , a n d
3 8 , a n d re v e a le d th e fo llo w in g issu e s :
• A la c k o f se g re g a tio n o f d u tie s w a s no te d in fo u r in sta n c e s d u rin g a revie w of
A c c o u n t P a y a b le tra n s a ctio n s .
• S ix tra n s a ctio n s e q u a l to o r m o re th a n $10 0 ,0 0 w e re no t d u a lly ap p ro ved .
• T h e a u th o riz a tio n fo r o n e o f th e 12 sa m p le d R o le A ssig n m e n t C h a ng e s w a s no t
d o c u m e n te d b y th e M u n is S y ste m A d m in istra to r in ch a rg e .
T h e S e c o n d R e v ie w te ste d co m p lia n c e w ith re co m m e n d a tio n s nu m b e re d 18 an d 27 . N o
d e fi c ie n c ie s w e re n o te d .
11 . A n n u a l F in a n c e D e p a rt m e n t B a n k A cco u n t R e co n c ilia tio n s a n d S u m m a ry R e po rt
T h is a n n u a l re v ie w w a s be g u n by th e O ffi c e o f In te rn a l A ud it as a re s u lt of the $3 .6 m illio n
fr a u d co m m itt e d a g a in st th e C ity in 2 0 16 a n d ha s be e n co n tin u e d un d e r the O IG . O IG
A u d it sta ff h a s (1 ) re v ie w e d th e ba n k re co n c ilia tio n s pe rf o rm e d e ithe r m o nthly or qu a rt e rly
b y d e s ig n a te d F in a n c e D e p a rt m e n t sta ff to ve rify tha t th e y w e re co m p le ted tim e ly an d
p ro m p tly re v ie w e d a n d a p p ro v e d ; (2 ) co n fi rm e d th a t a ll en trie s o n th e D a ily D e b it
T ra n s a c tio n R e p o rt w e re d e e m e d va lid by F in a n c e D e p a rt m e n t sta ff ; a n d (3 ) ve rifi e d tha t
th e re is a cre d it in th e g e n e ra l de p o sito ry a cco u n t an d a co rre sp o n d in g de bit tran sa ctio n
in a n o th e r C ity b a n k a c co u n t fo r a ll Z B A (z e ro ba la n c e ac co u n t) tra n s a ctio ns. T he o n ly
e x c e p tio n no te d d u rin g th e 2 0 19 /2 0 fis ca l ye a r w a s tha t th e de sig na ted F ina n ce
D ep a rt m en t re vi e w e r d id no t lis t th e d a te th a t he com p le te d his review of the 5" and Alton
Garage's December 2019 bank reconciliation.
COMPLETED RESORT/SANITATION TAX AUDITS
The Tax Auditors, who primarily conduct Resort Tax revenue-based audits, completed a
total of 109 audits, consisting of 51 annual filers and 58 monthly filers, during the
November 1, 2019 through October 31, 2020 period. These completed audits resulted in
net assessments of $1,104,504.30 as of November 1, 2020.
Although the Office of the Inspector General determines the amount of an assessment (if any)
based on its audit, it is not involved thereafter in the collection phase unless additional
documentation is provided, which may lead to adjustment, appeal, settlement or resolution
through other City processes and agencies.
Page 10 of 16
A s s e s s m e n ts th a t a r e n o t ti m e ly p a id m a y re s u lt in lie n s b e in g im p o s e d b y th e C ity o n p ro p e rt ie s
o w n e d b y th e d e lin q u e n t ta x p a y e r s o r c o r p o ra te o ff ic e rs , w h ic h c a n re m a in in e ff e c t fo r u p to 2 0
y e a r s . A n y c o ll e c te d a s s e s s m e n ts b a s e d o n th e a u d its re p re s e n t a d d itio n a l re v e n u e s to th e C ity
th a t w o u ld o th e rw is e n o t h a v e b e e n re c e iv e d .
T h e o n e T a x A u d ito r p o s itio n a s s ig n e d to p e rf o rm S a n ita tio n a u d its o f w a s te c o n tra c to rs a n d /o r
ro ll -o ff c o m p a n ie s w a s v a c a n t fo r s ix m o n th s a n d w a s fi ll e d m id y e a r. T h e n e w T a x A u d ito r h a s
c o m p le te d o n e a u d it, w ith fo u r a u d its n e a rin g c o m p le tio n .
A ll T a x A u d ito r s h a v e fa c e d d e la y s in o b ta in in g re c o rd s d u e to fu ll o r p ar ti al C O VI D -1 9 sh ut d o wn s
a ff e c tin g m a n y o f th e ta x p a y in g e n titie s . T h e O IG h a s m a in ta in e d a p o lic y o f p e rm itt in g
re a s o n a b le e x te n s io n s to a ff e c te d ta x p a y e rs w h e n a p p ro p ria te .
IN V E S T IG A T IO N S , R E V IE W S A N D IN S P E C T IO N S
The OIG has broad investigative authority under Section 2-256(d) of the City Code. Its authority
includes investigation of any past, present, and proposed City contracts, programs, projects,
expenditures, departments, agencies, boards, and committees. In performing its investigative
function or other related functions, the office has been granted the power under the latter section
to subpoena witnesses, administer oaths, and require the production of records regarding any
matter within its jurisdiction.
Investigations may entail administrative or criminal allegations or a combination of those matters.
Purely administrative investigations may be handled in-house by the OIG. Investigations which
include possible violations of criminal statutes may be handled jointly by the OIG and a law
enforcement agency. Investigations which produce evidence of violations of either the City or
County ethics ordinances will result in the referral of such issues to the Miami-Dade County
Commission on Ethics. Findings and recommendations from most investigations, as with audits
and some other activities, are provided to the City Administration and City Commission, and
posted on the OIG website. The OIG is also authorized by City Ordinance to conduct less formal
inquiries such as reviews and inspections of City programs and projects.
Investigation of Palm and Hibiscus Islands Stormwater Drainage Project
The most significant and in-depth investigation during the past year has been the probe of the
Palm and Hibiscus Neighborhood Infrastructure Improvement Project, which was the subject of
substantial attention and concern by the City Commission in the months preceding the
commencement of the OIG's operations. There were public airings of the significant change
orders and cost increases, as well as action by the County's environmental regulatory agency,
the Division of Environmental Resource Management (D E R M ), within the Miami-Dade County
Department of Regulatory and Economic Resources (R E R ).
The investigation, led by Special Agent Jim McGee, included more than fifty sworn interviews of
City personnel, contract staff, regulatory overseers and others, review and analysis of thousands
of project documents, emails, correspondence and other records, as well as relevant regulatory
provisions. A draft report of the investigation has been concluded. Following its review by the
affected parties for their explanations and/or rebuttals of the findings pursuant to Section 2-256(h)
of the City Code, it is anticipated that the final report of the investigation will be available publicly
before the end of the calendar year.
Page 11 of 16
In v e s tig a tio n o f Im p ro p e r P ro p e rt y T a x H o m e s te a d E x e m p ti o n s
B a s e d o n a n a n o n y m o u s s o u r c e , th e O IG c o n d u c te d a n in v e s tig a tio n in to p o s s ib le ta x fra u d
b a s e d u p o n im p r o p e r H o m e s te a d E x e m p tio n s c la im e d o n M ia m i B e a c h re s id e n tia l p ro p e rt ie s b y
a C ity P la n n in g D e p a rt m e n t e m p lo y e e a n d o th e r fa m ily m e m b e rs . T h e in v e s tig a tio n w a s
c o n d u c te d jo in tl y b y th e O IG a n d M ia m i B e a c h P o lic e O ffi c e o f In te rn a l A ff a irs , a lo n g w ith th e
a s s is ta n c e o f th e M ia m i-D a d e C o u n ty P ro p e rt y A p p ra is e r In v e s tig a tio n U n it T h e in v e s tig a tio n
d e te r m in e d th a t , d u e to th e im p ro p e r c la im o f H o m e s te a d E x e m p tio n o n a p ro p e rt y th a t h a d b e e n
re n te d o u t fo r y e a r s b y th e C ity e m p lo y e e in q u e s tio n , th e re w a s a n o u ts ta n d in g p ro p e rt y ta x
d e fi c ie n c y o f $1 0 ,9 1 8 .8 0 .
T h e in v e s tig a tio n a ls o d e te r m in e d th a t, o n tw o o th e r p ro p e rt ie s in M ia m i B e a c h o w n e d b y fa m ily
m e m b e rs o f th a t e m p lo y e e , th e r e w e re u n p a id d e fi c ie n ci e s a m o u n tin g to $6 9 ,3 5 4 .3 9 . W h ile th e
C o u n ty a s s e s s e s a n d c o lle c ts th e s e ta x p a y m e n ts , a p o rt io n o f p ro p e rt y ta x e s c o lle c te d a re
c re d ite d to th e C ity o f M ia m i B e a c h . T h e a s s e s s m e n ts o n th e p ro p e rt ie s w e re a p p ro p ria te ly
a d ju s te d . T h e C ity e m p lo y e e p a id th e $1 0 ,9 1 8 .8 0 o w e d in fu ll a n d a fa m ily m e m b e r p a id a n
a d d itio n a l $2 ,6 5 3 .3 5 . T h e C o u n ty c o m m e n c e d a c tio n to re c o v e r th e re m a in in g fu n d s o w e d .
T h e c a s e w a s re fe r re d to th e O ff ic e o f th e S ta te A tt o rn e y fo r M ia m i-D a d e C o u n ty , w h ic h d e c lin e d
c r im in a l p ro s e c u tio n . It w a s a ls o re fe r re d to th e C ity M a n a g e r fo r p o s s ib le a d m in is tra tiv e a c tio n .
In v e s tig a tio n in to E x tra D a y o f E a r ly V o tin g a n d P o litic a l A c tiv ity a t F a rm S h a re T u rk e y G iv e a w a y
E v e n t D u ri n g 2 0 1 9 Ci ty R u n -o ff E le c tio n
A n in v e s tig a tio n w a s c o n d u c te d in to a lle g a tio n s th a t th e a d d itio n o f a n e x tra d a y o f e a rly v o tin g
d u r in g th e 2 0 1 9 C ity R u n -o ff E le c tio n to A c c o m m o d a te th e O rt h o d o x J e w is h C o m m u n ity w a s a n
a b u s e o f p o w e r b y th e M a y o r ; a n d th a t a F a r m S h a re T u rk e y G iv e a w a y e v e n t c o in c id in g w ith th e
e le c tio n w a s m is u s e d fo r p o litic a l c a m p a ig n p u rp o s e s .
T h e in v e s ti g a tio n c o n c lu d e d th a t th e re w a s n o a b u s e o f p o w e r b y th e M a y o r in p ro m o tin g a n e x tra
d a y o f e a r ly v o tin g to a ll v o te r s b a s e d o n a re q u e s t fro m th e O rt h o d o x C o m m u n ity . T h e e x p a n s io n
o f e a r ly v o tin g b e n e fit e d a ll v o te r s a n d w a s a n a p p ro p ria te u s e o f th e M a y o r's a n d C o m m is s io n 's
d is c re ti o n a ry p o w e r s .
T h e in v e s tig a t io n d id n o t fi n d a n y in te n tio n a l m is c o n d u c t re g a rd in g th e lo c a tio n o f th e T u rk e y
G iv e a w a y in th e v ic in ity o f a p o ll in g lo c a tio n , a lth o u g h s o m e p o litic a l a c tiv ity o c c u rre d . It w a s
n o te d th a t a n a p p e a r a n c e o f im p ro p rie ty c o u ld b e c re a te d d u e to th e c o n n e c tio n o f a C ity -
s p o n s o r e d e v e n t to p o litic a l c a m p a ig n a c tiv ity . T h e O IG e n d o rs e d a re s o lu tio n , s p o n s o re d b y
C o m m is s io n e r s G o n g o ra a n d R ic h a rd s o n a n d p a s s e d b y th e C o m m is s io n , th a t w o u ld p ro h ib it a ll
p o litic a l c a n d id a te s , in c lu d in g in c u m b e n ts s e e k in g re -e le c tio n , fr o m h o s tin g o r c a m p a ig n in g a t
s u c h e v e n ts , a n d w o u ld p ro h ib it th e ir lo c a tio n w ith in 2 0 0 fe e t o f p o llin g p la c e s d u rin g v o tin g
p e r io d s .
In v e s tig a tio n o f P r iv a te B a r b e r D o in g B u s in e s s in P o lic e D e p a rt m e n t
B a s e d o n a n a n o n y m o u s c a ll o n th e O IG h o tlin e , a n in v e s tig a tio n w a s c o n d u c te d re g a rd in g a
p r iv a te b a r b e r o p e r a tin g w ith in th e P o lic e D e p a rt m e n t. It w a s a ll e g e d th a t th e b a rb e r w a s b e in g
p a id fo r h a ir c u ts , m a n ic u r e s , p e d ic u re s , e tc . d u rin g th e C O V ID lo c k d o w n , a n d th a t th e b u s in e s s
P a g e 1 2 o f 1 6
w a s b e in g p ro m o te d b y a P o lic e M a jo r p re s s u rin g o ffi c e rs to p a tro n iz e th e o p e ra tio n , a n d w h o , it
w a s s u g g e s te d , m ig h t b e g e tt in g c o m p e n s a te d .
W o r k in g w ith M B P D In te rn a l A ff a ir s , th e O IG d e te rm in e d th a t a p riv a te b a rb e r h a d b e e n g iv e n
p e r m is s io n to c o n d u c t b u s in e s s in th e d e p a rt m e n t a s a c o n v e n ie n c e to P o lic e p e rs o n n e l d u rin g
th e lo c k d o w n . It w a s fu rt h e r d e te rm in e d th a t th e b a rb e r in q u e s tio n d id c h a rg e fo r h is s e rv ic e s
a n d d id a ls o re tu rn a p o rt io n o f h is e a rn in g s to th e P o lic e M a jo r fo r th e p u rp o s e o f m a k in g a
c o n trib u tio n to a le g itim a te c h a r ita b le o rg a n iz a tio n . A lth o u g h n o le g a l v io la tio n s o c c u rre d , th e O IG
o p in e d th a t a p r iv a te b u s in e s s b e in g c o n d u c te d o n th e p re m is e s o f th e P o lic e D e p a rt m e n t c re a te d
a n a p p e a r a n c e o f im p ro p r ie ty . T h a t a c tiv ity h a s b e e n te rm in a te d .
R e v ie w o f C o m m u n ity O u tre a c h b y th e C ity in C o n n e c tio n w ith W e s t A v e n u e Im p ro v e m e n t
P ro je c t, P h a s e II
A t th e re q u e s t o f C o m m is s io n e r S a m u e li a n , a re v ie w w a s c o n d u c te d o f c o m p la in ts re c e iv e d b y
a r e a re s id e n ts c o n c e rn in g c o m m u n ity o u tre a c h e ff o rt s b y th e C ity in c o n n e c tio n w ith th e W e s t
A v e n u e Im p ro v e m e n t P ro je c t, P h a s e II. T h e c o m p la in ts w e re re c e iv e d d u rin g th e p ro c e s s o f th e
C ity 's d e te r m in in g w h e th e r to lo c a te a s to rm w a te r p u m p s ta tio n a n d a b o v e g ro u n d c o m p o n e n ts
in th e m e d ia n a t th e w e s t e n d o f Li n c o ln R o a d . In a d d itio n to C o m m is s io n e r S a m u e li a n ,
C o m m is s io n e r s R ic h a r d s o n a n d M e in e r h a d a ls o v o ic e d c o n c e rn s a b o u t th e C ity 's o u tre a c h
e ff o rt s o n th e p ro je c t. T h e is s u e fo c u s e d o n w h e th e r s u ffi c ie n t, a c c u ra te in fo rm a tio n h a d b e e n
p ro v id e d to th e c o m m u n ity re g a r d in g th e d e s ig n , lo c a tio n a n d fu n c tio n in g o f th e p u m p s ta tio n a n d
its c o m p o n e n ts . T h e O IG d e te r m in e d th a t, d e s p ite a p p ro p ria te a n d e x te n s iv e o u tre a c h e ff o rt s b y
C ity p e r s o n n e l, m a n y re s id e n ts h a d n o t re c e iv e d a c c u ra te a n d c o m p le te in fo rm a tio n . C ity
p e r s o n n e l a g r e e d th a t e x tra e ff o rt c a n b e m a d e to c o m m u n ic a te , e s p e c ia ll y o n c o n tro v e rs ia l
p ro je c t is s u e s , a n d a r e c o n tin u in g to re v is e a n d e x te n d o u tre a c h e ff o rt s to in s u re m a x im u m p u b lic
in f o r m a tio n a n d e n g a g e m e n t.
R e v ie w o f L G B T Q A d v is o r y C o m m itt e e V o te o n R e q u e s t fo r F u n d in g
A t th e re q u e s t o f C o m m is s io n e r R ic h a rd s o n , a re v ie w w a s c o n d u c te d o f a v o te ta k e n b y th e
L G B T Q A d v is o r y C o m m itt e e re c o m m e n d in g th a t th e C ity p ro v id e $1 5 0 ,0 0 0 in fu n d in g to th e
C o m m itt e e fo r u n s p e c ifi e d p u r p o s e s . Q u e s tio n s w e re ra is e d a b o u t p o s s ib le m is c o n d u c t in
c o n n e c tio n w ith th e a c c u r a c y o f C o m m itt e e re c o rd s c o n c e rn in g w h o o n th e C o m m itt e e h a d
a c tu a ll y s p o n s o re d th e m o tio n , fo ll o w in g a le n g th y a n d a t tim e s c o n fu s in g d is c u s s io n th a t la s te d
o v e r tw o m e e tin g s . T h e re v ie w re v e a le d th a t, a lth o u g h th e p u rp o rt e d o rig in a to r o f th e m o tio n h a d
p a rt ic ip a te d in th e o r ig in a l w o r d in g o f th e m o tio n a t th e re q u e s t o f th e C h a ir, s h e d id n o t in d ic a te
p e r s o n a l s u p p o rt o f th e m o tio n th a t c a rrie d h e r n a m e a n d , in fa c t, to ld th e O IG th a t s h e o p p o s e d
it. T h e c o n f u s io n o v e r th e id e n tifi c a tio n o f th e m o v e r d id n o t a ff e c t th e o u tc o m e o f a m o tio n th a t
p a s s e d w ith o u t o b je c tio n . H o w e v e r , it w a s re c o m m e n d e d th a t, in fu tu re d e lib e ra tio n s , th e
C o m m itt e e e x e r c is e m o re c a r e in a d h e rin g to p a rlia m e n ta ry p ro c e d u re to a v o id s u c h c o n fu s io n .
In s p e c tio n o f P a r k in g D e p a rt m e n t's Is s u a n c e o f C ityw id e a n d G P a rk in g P e rm its .
T h e O IG in itia te d a n in s p e c tio n o f th e P a r k in g D e p a rt m e n t's Is s u a n c e o f C ityw id e a n d G P a rk in g
P e r m its , w h ic h a ll o w d e s ig n a te d u s e rs to p a rk , fr e e o f c h a rg e a t d e s ig n a te d lo c a tio n s in th e C ity .
T h e in s p e c tio n re v e a le d in s ta n c e s in w h ic h th e p u rp o s e o f s o m e p e rm its h a d e x p ire d ; th a t s o m e
in d iv id u a ls p ro v id e d w ith p e r m its h a d te rm in a te d e m p lo y m e n t w ith th e C ity ; a n d th a t s o m e
P a g e 1 3 o f 1 6
in d iv id u a ls h a d m u ltip le p e r m its , w h ic h c o u ld le a d to a n a b u s e o f th e p riv ile g e . It w a s
re c o m m e n d e d th a t th e C ity a d o p t a cl e a re r p o lic y in re g a rd to th e d is trib u ti o n a n d re n e w a l o f th e
p e r m its to a v o id fu rt h e r d e fi c ie n c ie s in th is p ro c e s s . T h e C ity M a n a g e r p ro v id e d u s e fu l in fo rm a tio n
in re s p o n s e to th e d r a ft in s p e c tio n re p o rt th a t in c lu d e d a n e x p la n a tio n o f s o m e o f th e a p p a re n t
la p s e s a n d h is in te n tio n to ta k e c o r re c tiv e a c tio n to a d d re s s a n y d e fic ie n c ie s .
In s p e c tio n o f C ity B o a r d s a n d C o m m itt e e s M e m b e rs h ip
T h e O IG p e rf o r m e d a n in s p e c tio n o f th e ro s te rs o f C ity b o a rd s a n d c o m m itt e e s a n d c o m p lia n c e
w it h s e le c te d s e c tio n s o f th e C ity C o d e re g a rd in g c o m m itt e e m e m b e rs h ip re c o rd s a n d e lig ib ility ,
w it h th e fo llo w in g fi n d in g s :
1 . T h e d e s ig n a tio n o f b o a r d c h a irp e rs o n s a n d /o r v ic e c h a irp e rs o n s n e e d e d to b e u p d a te d .
T h e C ity C le r k a g r e e d to u p d a te th e C ity 's d a ta b a s e fo r th e s e a p p o in tm e n ts a n d to p e rf o rm
m o n th ly c h e c k s o f th e in fo r m a tio n .
2 . A re v ie w o f c o m p lia n c e w ith C ity b o a rd a n d c o m m itt e e m e m b e rs h ip re q u ire m e n ts
c o n c e rn in g a ll 3 7 1 v o tin g m e m b e rs s h o w e d a la c k o f c u rre n t s u p p o rt in g d o c u m e n ta tio n
c o n c e rn in g C ity re s id e n c y o r b u s in e s s a ff ilia tio n in th e C ity . T h e C ity C le rk a g re e d w ith
th e fi n d in g b u t fe lt th a t th e e x e c u tio n o f a n A ff ili a tio n A ffi d a v it, w h ic h is n o w c o m p le te d b y
e a c h m e m b e r a t th e ti m e o f a p p o in tm e n t, w a s a ll th a t h is o ff ic e w a s a u th o riz e d to d o , a n d
th a t fu rt h e r in q u iry in to u tili ty b ills o r le a s e s w o u ld b e u n d u ly in tru s iv e . T h e C le rk a g re e d ,
h o w e v e r , th a t a n a n n u a l A ff ilia tio n A ffi d a v it c o u ld b e im p le m e n te d to e n s u re c o m p li a n c e .
3 . A n u m b e r o f in d iv id u a ls s e rv in g o n tw o b o a rd s w e re a ls o id e n tifi e d , m o s t o f w h o m
a p p e a r e d to q u a lify fo r a n e x c e p tio n to th e o n e -b o a rd lim ita tio n , d u e to th e ir s e rv in g in a n
e x o ffi c io c a p a ci ty , o r o n a M a y o r's C o m m itt e e , o r o n a S ta te -s a n c tio n e d b o a rd o r A d H o c
C o m m itt e e in e x is te n c e fo r le s s th a n o n e y e a r. T h e C ity C le rk e x p la in e d th e p a s t a n d
c u r re n t p ra c tic e o f e x te n d in g th e d e s ig n a tio n o f a n A d H o c b o a rd b e y o n d th e o rig in a l o n e
y e a r w h e n a p p ro v e d b y th e C ity C o m m is s io n fo r u p to a n a d d itio n a l y e a r.
In s p e c tio n o f C O VI D -1 9 R ent Assistance Procedures
Utilizing a variety of funding sources, the City created several distinct pools of assistance funds
that began serving residents in May 2020, including Community Development Block Grant-
Coronavirus funds and HOME Investment Partnership funds. After becoming aware of a case in
which an applicant apparently submitted incomplete financial information, OIG staff offered
assistance to the Office of Housing and Community Development (HCD). The Excel spreadsheet
used in the grant approval process has now been revised by adding drop-down menus, formulas
and conditional formatting to facilitate an automatic determination of eligibility once all the
information is entered by HCD staff.
In addition, the Inspector General helped to expedite the department's request to obtain access
to the FinCertify software, which will help to reveal bank accounts in the name of an applicant
who may not have accurately reported his or her finances. Training on the new software has
included staff from both HCD and OIG. Going forward, financial information from both prior grant
recipients and new grant applicants will be vetted, and the State Attorney's Office notified of any
fraudulently obtained funds.
Page 14 of 16
C o n trac t O v e rsig h t R e : RFLI 2019 -318-W G
T h is o v e rsig h t action w as in itiated due to a com pla int by a respondent to a R equest fo r Letters of
In te re st (R F LI ) in co n ne ctio n w ith the m ana ge m ent of the Li ncoln R oad A ntiques and C ollectibles
M a rke t. T he m ana g e m e n t co ntract w as sche dule d to expire on Septem ber 30, 2019. The
co m p la inan t, o ne of th ree re spo ndents to the R FLI , alleged that the existing contractor had
viola ted the C o ne of Sile n ce by co m m u nicating w ith som eone fr om the City's Procurem ent
D e p a rt m ent du ring the C o ne pe rio d , and , in suppo rt , stated that the contra ctor had solicited fo r
ve n d ors fo r the M arket fo r future dates after the expiration of the existing contract.
T h e in q u iry by the O IG fo u nd that a m onth-to-m o nth extension of the existing contract had been
du ly ap p ro ved ; tha t co n tact betw een the current contractor and the City had occurred only in
co n n e ction w ith the exte nsio n ; and tha t interv iew s w ith the part icipants and an exam ination of
em ails did no t sho w any evid e nce of im p ro pe r com m u nication w ith the existing contractor.
G.0. BOND OVERSIGHT
T h e O IG ha s assu m ed an oversig ht role in the C ity's $439 m illion General Obligation Bond
P ro g ram , in acco rda n ce w ith S e ctio n 2-256 (f), C ity of M iam i Beach C ode, w hich states, "The
In s p e cto r G ene ra l sh a ll revie w , audit, inspe ct, and investigate City contracts, pro gram s, pro jects,
pro c u re m e nts, and expe nd itures asso cia ted w ith the C ity's G eneral O bligation Bond Pro gram ."
S h o rt ly afte r his ap p o intm e nt, the Inspe ctor G e ne ral m et w ith the Pro gram D irector, M aria
H ern a n d e z, w ho pro vide d a bro ad and de taile d review of the status of G .O . Bond pro jects and a
co m p e n d iu m of m a te ria ls pe rt ine nt to the pro g ram 's planning and im plem entation pro gress. The
In sp e cto r G e n eral atte nd e d se veral m eetings of the G .O . Bond advisory com m ittee, including one
in w h ich he m ad e a pre se ntatio n to the group rega rding th e O IG's pur p ose and functions.
In Ja n uary , O IG Sp e cia l A ge nt Ja n i Sing er w as assig ned to attend m eetings of the advisory board
as w e ll as in te rn a l staff m e e tings of dep art m ental pe rsonnel engaged in the projects. She has
ap p e a re d at G .O . B o n d com m u nity outreach m e etings in the South and N orth Beach
co m m u n ities, as w e ll as att e nd ing m id -be ach m eetings of the M ayor's Blue Ribbon Panel on 41 st
S tre e t an d the m id -be a ch ne ig hborhoo d asso ciatio n . Special A gent Singer has becom e w ell-
ve rse d on pro cu re m ent issue s related to the G .O Bond Pro gram , and regularly uses EBuilder in
he r ov e rsight of the pro je cts.
T h e O IG ha s pro vid e d qu a rt erly report s on its G .O . Bond oversight to the M ayor and City
C o m m is sion , in co m p lia n ce w ith the requ irem e nt in Section 2-256(j). Th e O IG perform ed a
fin an ci a l an aly sis on tw o of th e largest G .O . Bon d pro jects , Baysh ore Par k and th e 72° Stre et
C o m m u n ity C en te r refere nced in tho se repo rt s, w hich also raised concern s over the extensive
use of chan g e orders and de sig n cha nge s in those pro jects.
T h e G .O B o n d Pro g ram D ire ctor ha s w e lcom ed the O IG 's involvem ent in the pro gram and has
co m m itt e d to tra in ing staff on the im p a ct of w aste on G .O Bond pro jects, a step w hich the O IG
ha s co m m en d ed . T he O IG va lue s the pro fessio na l relationship it has developed w ith the Pro gram
D ire cto r in the co m m itm ent to im prove pe rf orm ance and system atically rem ove w aste.
P age 15 of 16
A s th e p ro g r a m p ro g r e s s e s fr o m "q u ic k w in " p ro je c ts to th e la rg e r im p a c t p ro je c ts d u rin g a tim e
o f fi s c a l c h a lle n g e s , th e O IG w ill c o n tin u e to c lo s e ly m o n ito r c h a n g e o rd e rs a n d c o n d u c t a u d its
a n d /o r in v e s tig a tio n s a s w a r ra n te d .
CONCLUSION
The City of Miami Beach Office of the Inspector General has been established and organized in
fulfillment of the mandate of the City's voters. The OIG will continue to expand its oversight of
City affairs, as well as its community outreach, and to involve and inform City personnel and
members of the public in order to maximize the information flow that is vital to its operations. It
will continue to welcome input and constructive criticism from the City Commission, City
personnel, and the public, in order to improve efficiencies and to better detect fraud, waste and
use wherever it may occur in City government.
Inspector General
Page 16 of 16