LTC 022-2017 Report on Emergency Purchases and Unauthorized PurchasesMIAMIBEACH
Procurement Department, 1755 Meridian Avenue, 3`" Floor, Miami Beach, Florida 33139, www.miamibeachfl.gov, 305-673-7490
022-2017
ETTER TO COMMISSION
To: Mayor Philip Levine and Members of he City Com ' ission
From: Jimmy L. Morales, City Manager
Date: January 12, 2017
Subject: Report on emergency purchases and nauthorized purchases
EMERGENCY PURCHASES. Miami Beach City Code Section 2-396 provides for the City
Manager to waive the requirements for competitive bidding for emergency purchases as defined
in the Code. Pursuant to this provision, emergency purchases exceeding $50,000.00 are to be
reported to the City Commission at its meeting following the emergency. The emergency
purchase request process outlined in Code allows the City to respond expeditiously to
unexpected needs. The Emergency Purchase Request form for each emergency reported is
attached.
Emergency Purchases
Form. No.
2017 -081 -MG
Nature of
Emergency
Rental of Hydraulic
Pumps to help
prevent the City of
Miami Beach from
flooding during
Hurricane Matthew
and the October
King Tide events.
Requestor
Public Works
Operation/Storm
Water Division
Contractor
Bergeron Land
Development
Inc.
Estimate
Value
$181,361.85
2017 -101 -FP
Replacement of the
pool deck at
Flamin•o Park.
Parks and
Recreation
Robertson
Industries, Inc.
$67,550
2017 -103 -FP
Assessment of the
City's Treasury and
ACH functions for
risk of fraud -testing
of internal controls.
Finance
BDO
Consulting, a
division of BDO
USA, LLP
$75,000
UNAUTHORIZED PURCHASES. Miami Beach City Code Section 2-393(a) prohibits the
purchase of goods or services unauthorized by the Procurement Division (typically through the
issuance of a Purchase Order with stated purchase authority prior to the receipt of goods or
services). In its due diligence, the Department of Procurement Management (DPM) has
identified those purchases that have been transacted in violation of the stated Code
requirement. In those cases, the DPM has required documentation and justification be provided
to the City Manager, through the Unauthorized Purchase form, who may then, pursuant to
Code, consider and authorize the purchase. Unauthorized purchases exceeding $50,000 are
reported to the City Commission at its meeting following the approval of the Unauthorized
Purchase form.
Page 12
Unauthorized Purchases
Nature of
Form No. Unauthorized
Purchase
Requestor
Contractor Value
Nothing To Report
F:\PURC\$ALL\REPORTS\Monthly Reports\FY 2017\Emergency & Unauthorized Purchase
Report\January 12, 2017.docx
MIAMIBEACH
Date:
21 November 2016
Emergency Purchase
Authorization ; Request
No.: 201--Q t (flG
Contact Information
Requestor:
Stanley Payne
Location of Emergency:
City Wide
Requesting Department:
Public Works Operation/ Storm Water Division
Required Goods/Services:
Hydraulic Pumps
Contact No.:
(786) 673-7620 Ext. 2343
Nature of Emergency
Describe Type (threat to public's life, health, welfare or significant loss of property) and Details of Emergency (Attach additional detail, if
necessary, and all available documentation justifying emergency declaration.)
From 05 October 2016 to 24 October 2016, our vendors were not able to provide us with hydraulic
pumps to help prevent the City of Miami Beach from flooding during Hurricane Matthew and the
October King Tide events. Once we were informed that these vendors would not be able to
accommodate our request for pumps, we reached out to the Engineering Department for assistance.
The Engineering Department contacted Bergeron Land Development, Inc. The vendor was able to
provide 35 hydraulic pumps, fuel and personnel to monitor as well as service these pumps at various
locations throughout the City of Miami Beach during this time period.
• Vendors) Information
Proposed Vendor (attach detail if multiple vendors):
Bergeron Land Development, Inc.
Estimated Cost (if known):
$181,361.85
Describe How & Why Recommended Vendor(s) Selected:
Vendor was recommended by Engineering Department. This vendor was able to accommodate the number of •
pumps requested in the time frame they were need on short notice.
City Code Sec. 2.396. - Emergency Purchases:
(a) City Manager. In case of an apparent emergency requiring immediate purchase of supplies or contractual service, the city manager shall be
empowered to authorize the procurement director to secure by open market procedure at the lowest obtainable price, any supplies or contractual
services not exceeding $25,000.00. The city manager has the authority to act in the case of an emergency that might affect the health, safety and
welfare of the city. Such action shall be reported at the next regular meeting of the city commission when supplies or services exceed $25,000.00.
(b) Head of Department. In case of actual emergency, and with the prior consent of the procurement director, and the prior approval of the city
manager, the head of any using agency may purchase directly any supplies whose immediate procurement is essential to prevent delays in the work of
the using agency that may vitally affect the life, health or convenience of citizens. The head of such using agency shall send to the procurement director
a requisition and a copy of the delivery record, together with a full written report of the circumstances of the emergency.
Department Head
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Emergency Purchase
Authorization Request
Contact Information
Date:
May 24, 2016
Requestor:
John Rebar, Director
Location of Emergency:
Flamingo Park Pool
Requesting Department:
Parks and Recreation
Required Goods/Services:
REPLACEMENT OF AT FLAMINGO PARK POOL
DECK SURFACE
Contact No.:
305-673-7730
Nature of Emergency
Describe Type (threat to public's life, health, welfare or significant loss of property) and Details of Emergency (Attach additional detail, If
necessary, and all available documentation justifying emergency declaration.):
The Flamingo Park Pool recently took on several renovations including the replacement of the pool deck
surface. It has come to the department's attention that the color choice has been deemed unfavorable
due to the amount of heat it produces, causing pool users to discomfort while using this amenity. As a
result of this, we are requesting an Emergency Purchase Order in order to install a top layer of a lighter
color to remedy this issue. Due to time constraints, being that the pool's high season begins in 2 weeks,
we are requesting for this to be approved with the attached proposal from the selected vendor, with the
understanding that the project will not exceed $67,550.00 (includes a 5% contingency).
Vendor(s) Information.
Proposed Vendor (attach detail If multiple vendors):
Robertson Industries, Inc.
Estimated Cost (if known):
$67,550.00
Describe How & Why Recommended Vendor(s) Selected:
We propose to proceed with Robertson Industries, Inc. as the General Contractor overseeing this
project. Robertson Industries, Inc. is an approved contactor as per ITB #2015-137-02, Pour -in -Place
Surface, issued on 11/24/15. Robertson Industries, Inc. has agreed to expedite the project as they
understand the urgency.
City Code Sec. 2.396. - Emergency Purchases:
(a) City Manager. In case of an apparent emergency requiring immediate purchase of supplies or contractual service, the city manager shall be
empowered to authorize the procurement director to secure by open market procedure at the lowest obtainable price, any supplies or contractual
services not exceeding $25,000.00. The city manager has the authority to act in the case of an emergency that might affect the health, safety and
welfare of the city. Such action shall be reported at the next regular meeting of the city commission when supplies or services exceed $25,000.00.
(b) Head of Department. In case of actual emergency, and with the prior consent of the procurement director, and the prior approval of the city
manager, the head of any using agency may purchase directly any supplies whose immediate procurement is essential to prevent delays in the work of
the using agency that may vitally affect the life, health or convenience of citizens. The head of such using agency shall send to the procurement director
a requisition and a copy of the delivery record, together with a full written report of the circumstances of the emergency.
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Department. Head
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Procurement Director Assistant City Manager- City Maw ger
SIGNATURE:
SIGNATURE:
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DATE:
DATE:
MIAMIBEACH
Emergency Purchase
Authorization Request
Contact Information
Date:
01/04/2017
Requestor:
Allison R. Williams, Chief Financial Officer
Location of Emergency:
City of Miami Beach —Treasury Functions
Requesting Department:
Finance Department
Required Goods/Services:
Assessment of the City's Treasury and ACH Functions for risk of
fraud. Testing of internal controls.
Contact No.:
(305) 673-7000, extension 6608
Nature of Emergency
Describe Type (threat to public's life, health, welfare or significant loss of property) and Details of Emergency
(Attach additional detail, if necessary, and all available documentation justifying emergency declaration.):
The City of Miami Beach was the victim of bank fraud with respect to one of its bank accounts at SunTrust Bank.
One or more third parties obtained relevant bank information and were able to access the Automated Clearing
House (ACH) system via approximately 150 transactions and illegally have $3.6 million electronically transferred
from the City's bank account to other banks.
The City is working closely with our Miami Beach Police Department, Federal Bureau of Investigation (FBI) and
SunTrust Bank to conduct a full investigation.
In light of this crime, Administration is proposing to hire a firm to fully investigate where our internal controls may
have failed. The firm selected will conduct a thorough investigation and provide the following services:
1. Discussion with the City or those designated by City to assist the firm in understanding this matter;
including but not limited to findings from criminal law enforcement and internal investigative reviews.
2. Understanding the City' Treasury and ACH disbursement process, documentation, relevant personnel,
approval hierarchies, structure and internal controls including policies.
3. Documentation of the processes, structure and controls referred to in (2) above.
4. Assessing of risk of fraud in the City's Treasury and ACH functions.
5. Identifying and mapping internal controls to higher risks of ACH and Treasury department fraud.
6. Testing internal controls for design and implementation effectiveness.
7. Identifying exposed risks post internal control testing.
8. Assessing cost benefit of remediation on specific exposed risks.
9. Assisting or advising in the implementation of remediation plans post cost benefit assessment.
Vendor(s) Information
Proposed Vendor (attach detail if multiple vendors):
BDO Consulting, a division of BDO USA, LLP
Estimated Cost (if known):
Blended rate of $275 per hour. Not to exceed
$75,000.
Describe How & Why Recommended Vendor(s) Selected:
The proposed vendor was selected for their expertise in forensic accounting. BDO is internationally known for
providing strategic guidance to organizations across the country and around the world, helping them resolve
high-stakes matters involving fraud and corruption, accounting irregularities, and a wide variety of compliance
issues.
BDO Consulting offers a wide variety of services and programs designed to minimize risk as well as to deter and
prevent fraud and compliance violations. BDO professionals review and enhance policies and procedures, assess
risk, test controls, and remediate significant exposures, as well as, provide customized compliance training.
Attached hereinto is a proposal from BOO, form approved by our City Attorney's Office.
City Code Sec. 2-396. - Emergency Purchases:
(a) City Manager. In case of an apparent emergency requiring immediate purchase of supplies or contractual service, the city manager shall be
empowered to authorize the procurement director to secure by open market procedure at the lowest obtainable price, any supplies or contractual
services not exceeding $25,000.00. The city manager has the authority to act in the case of an emergency that might affect the health, safety and
welfare of the city. Such action shall be reported at the next regular meeting of the city commission when supplies or services exceed $25,000.00.
(b) Head of Department. In case of actual emergency, and with the prior consent of the procurement director, and the prior approval of the city
manager, the head of any using agency may purchase directly any supplies whose immediate procurement is essential to prevent delays in the work of
the using agency that may vitally affect the life, health or convenience of citizens. The head of such using agency shall send to the procurem nt director
a re uisition and a co of the delive record, to ether with a full written re ort of the circumstances of the emer' enc
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Department Head
SIGNAT• R "11444
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DATE:
Procurement Director Assistant City Manager City Manager
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DATE:
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