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2012-27926 Reso RESOLUTION No. 2012-27926 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. WHEREAS, 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 formalize relationships between the participating agencies for policy guidance, planning, training, and public/relations relative to public corruption; and WHEREAS, the MACTF is comprised of a specialized group of Federal, State, and local investigators and prosecutors responsible for investigating and prosecuting significant public corruption throughout the Southern District of Florida; and WHEREAS, the MACTF enhances the effectiveness of Federal, State and local law enforcement resources through well-coordinated initiatives, seeking the most effective investigative and prosecution avenues by which to convict and incarcerate individuals involved in public corruption; and WHEREAS, the Miami Beach Police Department's participation in the MACTF is a mutually beneficial partnership that establishes an ongoing relationship between these two law enforcement entities, provides for increased investigative resources and capabilities, improves the effectiveness of the Miami Beach Police Department's law enforcement activities in investigating public corruption, and demonstrates the FBI's confidence and trust in our Police Department's leadership and investigative staff; and WHEREAS, the City of Miami Beach, on behalf of the Miami Beach Police Department, and the Federal Bureau of Investigation, wishes to execute a Memorandum of Understanding, commencing upon the signatures of all parties, and remaining in effect for the duration of the City's participation in the MACTF; and WHEREAS, the Miami Beach Police Department shall appoint a sworn officer on a full time basis to the MACTF to work in conjunction with Federal, State, and local law enforcement personnel in identifying, locating and apprehending individuals who are involved in public corruption. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission thereby authorize the City Manager and City Clerk to execute a Memorandum of Understanding between the City of Miami Beach, on behalf of the Miami Beach 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. PASSED and ADOPTED this day of JQNE , 2012. �\P MAY APPROVED AS TO AT ST: 1 y FORM &LANGUAGE IN OR 0 B-FO EXECUTION Cl RK Cti 26 me Date J 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 AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A PROFESSIONAL SERVICES AGREEMENT, IN AN AMOUNT NOT TO EXCEED $150,000,WITH CROWE HORWATH, LLP FOR SERVICES RELATED TO AUDITING THE PROCESSES OF CERTAIN REGULATORY DEPARTMENTS OR DIVISIONS; AND SHOULD THE ADMINISTRATION NOT BE ABLE TO SUCCESSFULLY NEGOTIATE AN AGREEMENT WITH CROWE HORWATH, LLP, AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH TCBA WATSON RICE, LLP; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH THE SUCCESSFUL PROPOSER UPON COMPLETION OF NEGOTIATIONS BY THE ADMINISTRATION. 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: At the May 9, 2012 City Commission, four recommendations to promote clean government and to root out and/or prevent corruption were proposed by the City Manager. The City Commission voted to defer and refer these items to be discussed at the May 17, 2012 Finance and Citywide Projects Committee and/or the May 18-19, 2012 City Commission Retreat. These items were proposed as a result of the April 11, 2012 arrest of seven city employees who were arrested by the Federal Bureau of Investigations (FBI) 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 following proposed actions require Commission consideration and approval. These four recommendations remain as important today, and are submitted once again for your consideration: 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 MIAMIrBEACH AGENDA ITEM R1 E I7 DATE 6'b —12- 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. The proposed MOU was discussed at the Finance and Citywide Projects Committee meeting of May 17, 2012. The Committee endorsed the City Manager's recommendation, as put forth on May 9th, and recommended approval of the proposed MOU. 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, and discussions continue with the MDCOIG on the terms of the engagement. Authorization for the City Administration, in conjunction with the City Attorney's office, to finalize negotiations is recommended. The final negotiated agreement would be brought back to the City Commission for approval. 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. Each employee would receive 12.5 hours of specialized training over six months. A total of 230 employees would receive this training, and this program is in addition to the current training provided to all employees. The proposed program of work is attached to the memo. Commissioner Tobin was tasked with contacting the Director of the Commission on Ethics directly to discuss this further. I recommend that the City Commission approve the proposed program, as I previously proposed on May 9th 4) Waiving competitive bidding and authorizing 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 I took with the external audit of the Building Department by Watson Rice a few years ago. 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. A draft scope of work is attached to the memo. At the May 17`h Finance and Citywide Projects Committee meeting, the Committee approved the issuance of a request for "Expressions of Interest" from identified firms and recessed the Committee until June 1st. That solicitation resulted in the receipt of six responses, which were reviewed by the Committee on June 1". Two firms were selected for interviews on June 5, where the Committee recommended that the City enter into negotiations with Crowe Horwath, LLP, and should those negotiations not be successful, enter into negotiations with TCBA Watson Rice, LLP. The four recommended actions are as important today as they were on May 9th. It is recommended that the Mayor and City Commission approve all four resolutions. Advisory Board Recommendation: Finance and Citywide Projects Committee on May 17, 2012 (continued to June 1 and June 5); Commission Retreat, May, 2012. 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 City Manager City Mana er JMG 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 Manage DATE: June 6, 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 AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A PROFESSIONAL SERVICES AGREEMENT, IN AN AMOUNT NOT TO EXCEED $150,000, WITH CROWE HORWATH, LLP FOR SERVICES RELATED TO AUDITING THE PROCESSES OF CERTAIN REGULATORY DEPARTMENTS OR DIVISIONS; AND SHOULD THE ADMINISTRATION NOT BE ABLE TO SUCCESSFULLY NEGOTIATE AN AGREEMENT WITH CROWE HORWATH, LLP, AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH TCBA WATSON RICE, LLP; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH THE SUCCESSFUL PROPOSER UPON COMPLETION OF NEGOTIATIONS BY THE ADMINISTRATION. ADMINISTRATION RECOMMENDATION Adopt the Resolutions. City Commission Memorandum June 6, 2012 External Organizational Audit Page 2 of 10 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. 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. The LTC also delineated the administration's actions subsequent to the arrests. More specifically, I proposed a five-point approach intended to support the City in its 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 implemented; 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. These items were briefly discussed during the May 9, 2012 City Commission meeting, with only one item being approved at that time, pending further discussion. Subsequently, three of the items have been discussed, at some level, at either Committee meeting, or at the Commission Retreat. They are once again submitted for your review, 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 City Commission Memorandum June 6, 2012 External Organizational Audit Page 3 of 10 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 City Manager, 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 and trust in our Police Department's leadership and investigative staff. The proposed Memorandum of Understanding (MOU) between the City and the FBI was discussed at the Finance and Citywide Projects Committee at their May 17, 2012 meeting. Chief Raymond A. Martinez and FBI Supervisory Special Agent John Jimenez, supervisor of the Public Corruption Task Force, were in attendance to discuss the details of the MOU and requirements for participating in MACTF. 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 in Miami Beach. 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. As part of MACTF, the officer would be under the FBI's supervision, and would report to the Internal Affairs chain of command. Special Agent Jimenez explained that the reporting done would be FBI reports, which could not be disseminated outside of the FBI without the FBI's approval. Communication with the Miami Beach Chief of Police would be done on a "need to know" basis; would depend on the scope of the case; and would be left to up to his discretion. Although there is no time commitment required for participation, Special Agent Jimenez stated that since there is a learning curve in investigating public corruption and FBI procedures, that his recommendation would be a minimum of a three to five year commitment. As a result of the discussion, the Committee endorsed the City Manager's recommendation, as put forth at the May 9, 2012 City Commission meeting, and recommended approval of the Memorandum of Understanding (MOU), and that the item be brought to the full Commission on June 6, 2012. City Commission Memorandum June 6, 2012 External Organizational Audit Page 4 of 10 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. As you have been advised, 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. It is my belief that 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. The Mayor and I met with Mr. Mazella 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 and we began laying out the basis of an engagement agreement. As you may know, 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 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 began working to refine a proposed Agreement setting forth the authorized powers and duties of the Inspector General, if contracted to provide these services to our City. As we are the first municipality to propose this type of an engagement with the MDCOIG, no existing template for that type of Agreement exists. The negotiated Agreement would be brought back to the City Commission in 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, to be further negotiated: City Commission Memorandum June 6, 2012 External Organizational Audit Page 5 of 10 • 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 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 MDCOIG understands the concerns that have been raised by the City Attorney's Office with regards to privileged information, in particular when it may involve litigation against Miami-Dade County. Language to address this concern has been discussed with the City Attorney and would be further flushed out for inclusion in the final Agreement. 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 City Commission Memorandum June 6,2012 External Organizational Audit Page 6 of 10 convenience, by either party by thirty (30) days' written notice to the other party. We continue to discuss the proposed engagement with the MDCOIG and would request that the City Commission authorize the City Manager's office, in coordination with the City Attorney's office, to continue to negotiate the proposed scope of services for the Commission's future consideration. 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. As you know, 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 their Executive Director and General Counsel Joseph M. Centorino about having the Commission on Ethics assist the City of Miami Beach with specialized ethics training for all city employees in regulatory functions. While the City currently provides and requires ethics training for all City employees, I believe that 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 was and is necessary. 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 Human Resources Department, the Miami-Dade Commission on Ethics, the Office of the City Attorney, 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: 1) 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; City Commission Memorandum June 6, 2012 External Organizational Audit Page 7 of 10 (4) code enforcement; and (5) planning. Each employee would receive approximately 12.5 hours of training. 2) Training for approximately 230 employees. 3) The Commission on Ethics is prepared to design, conduct and conclude the initial training within six months. The proposed sessions include the following over the six months of training (provided through approximately 12.5 hours of training, per employee): 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 (12.5 hours per employee) would be approximately $195.65 per employee, or $15.65 per hour of training. As you may recall, at the May 9, 2012, City Commission meeting, Commissioner Tobin was tasked with contacting Mr. Centorino directly to discuss this proposal further. It continues to be the Administration's recommendation that the Mayor and Commission approve the proposed enhanced ethics training program, as delineated above. City Commission Memorandum June 6, 2012 External Organizational Audit Page 8 of 10 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 the 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 and 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. At the May 9, 2012 City Commission Meeting, the Administration presented a memorandum which, in part, would have waived the competitive bidding requirement, by 5/7ths vote, and authorized the City Manager to negotiate and execute a Professional Services Agreement (PSA), 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. The process recommended by the Administration mirrored that of the process used to select and hire Watson Rice to conduct an organizational review and operational analysis of the Building Department in 2008. The functional areas to be covered under the proposed PSA included 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, the Administration proposed 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. City Commission Memorandum June 6, 2012 External Organizational Audit Page 9 of 10 An expedited timeline was envisioned for the component of the review relating to the Code Compliance Division, Fire inspections and Parking enforcement, with complete reviews 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 PSA 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. Attachment 4 includes the DRAFT scope of services proposed at the May 9, 2012 City Commission meeting. At the May 9, 2012 City Commission meeting, the City Commission approved the waiver of competitive bidding, but referred the concept of the performance audit to the May 17, 2012 meeting of the Finance and Citywide Projects Committee (Committee), where the Committee (and any other members of the City Commission who wished to participate) would further refine the proposed scope, have the Administration develop the appropriate purchasing mechanism(s), and bring the item back to the City Commission at its June 6, 2012 meeting. At the May 17, 2012 Committee meeting, the Administration was directed to send out a request for "Expressions of Interest" from identified firms. The Committee meeting was recessed until Friday, June 1, 2012, when the Committee would reconvene to review the responses from firms, and determine which ones would be interviewed. The original deadline for responses was at 4:00 pm on Tuesday, May 29, 2012. The deadline was extended to 4:00 pm on Thursday, May 31, 2012. Attachments 5, 6, and 7 are the original request for Expression of Interest, and two deadline extensions that were sent to the various firms. The request for Expression of Interest was sent to the following firms: • TCBA Watson Rice • Berman Hopkins Wright and Laham • Marcum • Deloitte and Touche • International Data Consultants • Carr, Riggs and Ingram • Ernst and Young • Cherry, Bekaert and Holland • McGladrey • KPMG The following firms submitted responses by the deadline of Thursday, May 31, 2012, at 4:00 pm: • TCBA Watson Rice • McGladrey • Marcum • Cherry, Bekaert and Holland • Process Design and Development • Crowe Horwath (PD2) The Finance and Citywide Projects Committee met on Friday, June 1, 2012 to review the responses and determine which firms they would shortlist to interview. The Committee decided to interview Crowe Horwath and TCBA Watson Rice. I provided a recommendation to Commissioner Weithorn that the Committee should select Crowe Horwath, to provide the City with a fresh perspective. The Committee interviewed firms on Tuesday, June 5, 2012 and selected Crowe Horwath, LLP as its top ranked firm. Crowe Horwath, LLP (Crowe) is one of the largest public accounting and consulting firms in the United States. Under its core purpose of "Building Value with Values®," Crowe assists public and private company clients in reaching their goals through audit, tax, advisory, risk and performance services. With offices coast to coast and 2,500 personnel, Crowe serves clients worldwide as an independent member of Crowe Horwath International, one of the largest networks in the world. The network consists of 150 independent accounting and management consulting firms with offices in more than 580 cities around the world. Crowe's national Public Sector Services practice is City Commission Memorandum June 6, 2012 External Organizational Audit Page 10 of 10 comprised of over 250 professional, providing assurance, financial advisor and consulting services to over 450 federal, state and local governments and other public sector entity clients nationally. Crowe's Florida clients include the State of Florida, Miami-Dade County, Broward County, Broward Sherriff's Office, Port Everglades, and the cities of St. Petersburg, Tampa, and Palm Beach. As I did on May 9, 2012, 1 recommend that the Mayor and City Commission proceed with the outside performance audit as soon as the PSA with the successful firm is approved and finalized. CONCLUSION As you know, in the past I have initiated investigations of criminal misconduct whenever any information has come to my attention — several years ago when I received information about our Building Department, and most recently about our Procurement Director. 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. As I have advised you, I spoke with U.S. Attorney for the Southern District of Florida, Wifredo Ferrer, and assured him that the City will continue to provide its 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 11 to assist in their investigation and provide any information they have requested. The Administration once again 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) Authorizing the Administration to negotiate a Professional Services Agreement, in an amount not to exceed $150,000, with Crowe Horwath, LLP for services related to performance auditing of the processes of certain regulatory departments or divisions; and should the Administration not be able to successfully negotiate an agreement with Crowe Horwath, LLP, authorizing the Administration to enter into negotiations with TCBA Watson Rice, LLP; authorizing the Mayor and City Clerk to execute an agreement with the successful proposer upon completion of negotiations by the Administration. These steps remain as important today as they were on May 9, 2012, and I urge your approval so that the City may promptly implement these initiatives. ATTACHMENTS JMG/hmf/ri [MI] ATTACHMENT 1 .' FOR OFFICIAL USE ONLY This document is the property of the FBI and is loaned to your agency. Neither it nor Its contents may be released without authorization by FBI Headquarters. z FOR OFFICIAL USE ONLY This document Is the Property of the FBI and Is loaned to your agency. Neither It nor Its contents may be released without authorization by FBI Headquarters. 3 FOR OFFICIAL USE ONLY This document is the property of the FBI and is loaned to your agency. Neither It nor Its contents may be released without authorization by FBI Headquarters. 4 FOR OFFICIAL USE ONLY This document Is the property of the FBI and Is loaned to your agency. Neither It nor Its contents may be released without authorization by FBI Headquarters. s FOR OFFICIAL.USE ONLY This document is the properly of the FBI and Is loaned to your agency. Neither It nor its contents may be released without authorization by FBI Headquarters. 6 FOR OFFICIAL.USE ONLY This document Is the property of the FBI and Is loaned to your agency. Neither It nor Its contents may be released without authorization by FBI Headquarters. . 7 FOR OFFICIAL USE ONLY This document Is the property of the FBI and Is loaned to your agency. Neither It nor its contents may be released without authorization by FBI Headquarters. FOR OFFICIAL USE ONLY This document is the property of the FBI and is loaned to your agency. Neither It nor Its contents may be released without authorization by FBI Headquarters. s FOR OMCIAI.USE ONLY This document is the property of the FBI and is loaned to your agency. Neither It nor Its contents may be released without authorization by FBI Headquarters. 10 FOR OFFICIAL USE ONLY This document Is the property of the FBI and Is loaned to your agency. Neither It nor its contents may be released without authorization by FBI Headquarters. r . 17 FOR OFFICIAL USE ONLY This document Is the property of the FBI and is loaned to your agency. Neither It nor Its contents may be released without authorization by FBI Headquarters. 12 FOR OFFICIAL USE ONLY This document Is the property of the FBI and Is loaned to your agency. Neither it nor Its contents may be released without authorization by FBI Headgnartem Special Agent in Charge Federal Bureau of Investigation Miami, Florida Date 13 Commissioner Director Florida Dept. of Law Enforcement Tallahassee, Florida Date I 14 Special Agent in Charge U.S. Environmental Protection Agency - OIG Atlanta, Georgia Date 15 United States Attorney U.S. Attorney's Office - SDFL Miami, Florida Date i 16 I I Special Agent in Charge U.S. Dept. of Housing and Urban Development- OIG Miami, Florida Date 17 Special Agent in Charge Internal Revenue Service - CID Miami, Florida Date 16 ATTACHMENT 2 DRAFT SCOPE OF SERVICES INSPECTOR GENERAL SERVICES PARTIES: City of Miami Beach Miami-Dade County, on behalf of the Miami-Dade County Office of the Inspector General (MDCOIG) TERM: Three (3) years from date of execution by all parties. Renewable for an additional term, as such additional term is determined and agreed upon by both Parties. TERMINATION: May be terminated for any reason, including convenience, =by either party by thirty (30) days'written notice to the other party. SCOPE: The term "Inspector General" when standing alone hereinafter shall refer to the Inspector General for the City whose role is being fulfilled by the MDCOIG pursuant to the terms of this Agreement. a. Subject to the limitations provided herein, the MDCOIG is authorized to serve as the Inspector General for the City during the term of this Agreement. b. The organization and administration of the MDCOIG shall be sufficiently independent to assure that no interference or influence external to the MDCOIG adversely affects the independence and objectivity of the Inspector General. c. The MDCOIG shall have the authority to make investigations of City programs, accounts, records, contracts and transactions as further set forth in this Agreement, and the power to review past, present and proposed City programs, accounts, records, contracts and transactions, as further set forth in this Agreement. d. The MDCOIG shall have the power to require reports and the production of records from the Mayor, Commission, City Manager, City officers and employees, regarding any matter within the jurisdiction of the MDCOIG. Any files or reports relating to litigation that are subject to attomey-client or other privilege shall not be subject to disclosure to the MDCOIG. e. The Inspector General shall be authorized to conduct any reviews, audits, inspections, investigations or analyses relating to departments, offices, committees, activities, programs and agencies of the City of Miami Beach, including reviews of employee compliance with established policies and/or standard operating procedures of the City. f. The MDCOIG shall be authorized to conduct any reviews, audits, inspections or analyses relating to the operations of departments or divisions of the City with regulatory oversight of city codes such as, but not limited to, fire, parking; planning and zoning, building, property maintenance, noise, etc., and/or state or federal codes including, but not limited to, state building and fire codes, federal ADA requirements, etc., including reviews of employee compliance with established policies and/or standard operating procedures for their regulatory departments or divisions of the City. Such reviews, audits, inspections or analyses shall be in accordance with any Collective Bargaining Rights, Personnel Rules, and other Federal and State guidelines regarding employee rights. g. The MDCOIG may, on a random basis, perform audits, inspections and reviews of City contracts, and shall be deemed the City's designee for any audits, inspections, and reviews of City contracts provided for under the terms of those City contracts. h. The MDCOIG shall have the power to audit, investigate, monitor, inspect, and review the operations, activities and performance of the procurement process for contracts, including, but not limited to, 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; in order to ensure compliance with the City's established procurement procedures and any other State, County or City law or ordinance relating to procurement that is applicable to the City. L Notwithstanding the above, the MDCOIG shall have the power to review and investigate any citizen's complaints regarding City projects, programs, contracts, transactions, and employee misconduct, including misconduct by employees involved in regulatory oversight functions. Such review and investigation shall be in accordance with any Collective Bargaining Rights, Personnel Rules, and other Federal and State guidelines regarding employee rights. j. The MDCOIG may exercise any of the responsibilities, functions and authorities contained in the Agreement upon his or her own initiative. k. The MDCOIG shall be notified in writing prior to any meeting of an evaluation or negotiation committee where any matter relating to the procurement of goods or services by the City is to be discussed. The notice required by this section shall be given to the MDCOIG as soon as possible after a meeting has been scheduled, but in no event later than twenty-four hours prior to the scheduled meeting; said notice may be provided via electronic mail. The MDCOIG may, at his or her discretion, attend all duly noticed City meetings relating to the procurement of goods or services as provided herein, and may pose questions and raise concerns consistent with the functions, authority and powers of the Inspector General. An audio tape recorder shall be utilized to record all applicable evaluation and negotiation committee meetings. 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. J 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 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. REPORTING: The.MDCOIG shall provide an annual report to the City on the prior year's activities. STAFF &SUPPORT:All MDCOIG staff to remain staff of the MDCOIG City may assign City staff to support MDCOIG City to provide office space and office essentials (desks, phones, etc). FEES: Flat annual fee for service. Initial annual fee to be negotiated. Subsequent annual budget request to be submitted and approved by the City as part of annual City Budget process. RESOLUTION NO. 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. WHEREAS, Section 163.01, Florida Statutes, the "Florida Interlocal Cooperation Act of 1969," authorizes public agencies to enter into interlocal agreements for mutual benefit, except that no such agreement shall authorize the delegation of constitutional, statutory or Charter duties of city officers; and WHEREAS, the home rule powers under Chapter 166.021, Florida Statutes, authorizes the City to exercise any power except as expressly prohibited by the State Constitution or general law, and Section 2.03 of the City Charter empowers the City Commission to "investigate the official acts and conduct of any City official, and by similar investigations may secure information upon any matter"; and WHEREAS, the City seeks to hire an Inspector General that would be authorized, on behalf of the City, to conduct independent audits and investigations into City practices and operations, in order to prevent and detect fraud, waste, financial mismanagement, or other abuses, and promote accountability, integrity, economy, and efficiency in government; and WHEREAS, the County has already established the Miami-Dade County Office of the Inspector General (MDCOIG); and WHEREAS, the County and the City recognize that, given the knowledge, experience, and ability of the staff of the MDCOIG in conducting investigations into government waste, fraud, or mismanagement, it will serve the public interest to enter into an agreement with the MDCOIG in order to accomplish all of the goals set forth in this resolution. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MAIMI BEACH, FLORIDA that the Mayor and City Commission hereby authorize 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), and the City, 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. PASSED and ADOPTED this_day of , 2012. ATTEST: MAYOR CITY CLERK APPROVED AS TO FORM&LANGUAGE S FOR EXECUTION i 0 maj(. Date ATTACHMENT 3 MWII-DARE COUNTY COMMISSION ON ETHICS & PUBLIC TRUST May 2, 2012 Mayor and City Commission Miami Beach City Hall 1700 Convention Center Drive Miami Beach, FL 33139 Re: Ethics Training Honorable Mayor and City Commissioners: In response to the request of the City of Miami Beach, the Miami-Dade Commission on Ethics and Public Trust submits its proposal for a comprehensive ethics training program for regulatory employees. The attached program includes multiple sessions of intensive and interactive training for all employees and supervisors engaged in the areas of fire inspection, parking enforcement, building inspection, code enforcement, and planning, which comprises gpproximately 223 staff. We are prepared to conduct and conclude this training within six months of executing a final agreement for same under mutually agreed upon conditions. We are available to discuss this proposal further at your convenience and look forward to meeting with you. erely, ep M. Centorino xecutive Director and General Counsel Miami-Dade Commission on Ethics and Public Trust .. :.�,-y. ...r :/.�• '�?`......< <:iH/>i".:..,i._:./y.q. �.... {;A�:b�i'•T?.:5':•/ .•F4�,�/� li:l�:i••5.• Y!lr��..},. f•�l�/� r v l•.r n. r r.r.. �. ... . .rr/// rr%� / l//.ft >:R.;./!F'/7 /n r !r .l �`rai .,� .o_rri.(.•%Y'.'r.G;':G .. ..;il6x..• .._ r _! r i+s9.: ::z/.:cc4.r .. l r .::�:; PROPOSAL FOR CITY OF MELAMI BEACH ETHICS TRAINING The Miami-Dade Commission on Ethics and Public Trust submits the following proposal for ethics training for 223 City of Miami Beach employees and supervisors engaged in regulatory enforcement. This proposal is for an intensive training program to be completed within six months of implementation. Class size should not exceed 50. Sessions: 1) Introduction to Ethics: Interactive Lecture/Discussion led by Ethics Commission personnel focusing on public service ethics, governmental organizational culture and professionalism. (1 hr) 2) Detailed presentation of Miami-Dade County and City of Miami Beach Code of Ethics requirements for public employees, emphasizing gift, conflict of interest, and exploitation provisions particularly relevant to regulatory personnel, illustrated with case examples. (4 hrs) 3) Presentation/Discussion of legal and administrative consequences of illegal/unethical activity by public servants, including participation of a % mer City of Miami Beach official whose misconduct led to termination. (1 hr) 4) Presentation on the law of Bribery, including a discussion of illustrative criminal cases from Miami-Dade County and elsewhere. (1 hr) 5) Presentation/Discussion on the special integrity challenges presented by the regulatory environment in Miami Beach, including a presentation by a retired management level employee of a local municipality. (1 hr) 6) Interactive group discussion led by Ethics Commission personnel based on 6 hypothetical scenarios directly relevant to issues confronting regulatory personnel. (2 hrs) May 2,2012 7) "Train the trainer" program for supervisory level personnel, addressing the need for an ongoing strategy necessary for building an ethical organizational culture, with oversight controls and in-service ethics training within their respective departments. (2 hrs) 8) Private, confidential one-on-one sessions to be conducted with all regulatory employees by Ethics Commission staff to discuss and address past and future ethical concerns raised by their personal and professional experiences, with an invitation for them to suggest changes and/or improvements in the workplace that each employee feels would lead to a stronger ethical climate. (1/2 hr each) 9) Final Report prepared by Ethics Commission staff summarizing all training sessions, with recommendations for follow-up training and for implementation of long-term management strategies to prevent future corruption. Cost Estimate: $45,000 Proposal for City of Miami Beach Ethics Training 2 May 2,2012 RESOLUTION NO. 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. WHEREAS, on April 13, 2012, the City Manager 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; and WHEREAS, It was requested that this training first focus on, and be provided to, those City employees who work in any of the City's regulatory areas; and WHEREAS, on April 19, 2012, Mayor Matti Herrera Bower, the City Manager and other City staff met with several senior-level staff members from the Commission on Ethics to discuss the comprehensive ethics training; and WHEREAS, The Commission on Ethics has proposed a comprehensive training program which includes multiple sessions over a six month period of intensive and interactive training for all employees and supervisors engaged in the regulatory areas of the City in (1) fire inspection; (2) parking enforcement; (3) building inspection; (4) code enforcement; and (5) planning (includes nearly 230 City employees); and WHEREAS, The cost estimate for the proposed training by the Commission on Ethics is $45,000 and given that there are approximately 230 employees that would participate in all of the trainings, the per-person cost for the six month period would be approximately $200 per employee. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and authorize 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. PASSED and ADOPTED this, the day of MAYOR ATTEST: PROVED AS FORM, CITY CLERK UAGE & ECUTION r TTORNEY T:\AGENDA\2012\5-9-12\EthicsTrainingRESO rev.doc ATTACHMENT 4 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: 4 • 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 950 days following engagement,timeline for balance of areas FEES: Fee to be negotiated; not to exceed $150,000.00. ATTACHMENT 5 ® MIAMI EXPRESSION OF INTEREST Professional Services Related to the External Organizational Auditing of the Processes of Certain Regulatory Departments or Divisions The City of Miami Beach is in need of professional services related to the external organizational auditing of the processes of certain regulatory City departments or divisions. On May 9, 2012, the Mayor and City Commission adopted Resolution No. 2012-27905, waiving the competitive bid requirements to secure a firm to provide this scope of services. This "Expression of Interest' is serving as an informal procurement process in lieu of the competitive bidding process. It is anticipated that a Professional Services Agreement(PSA)will be executed for such services. The preliminary Scope of Work that will be required pursuant to this PSA is as follows, but will be more thoroughly defined with the successful firm: • Review organizational structure and functions • Review internal controls • Review department/division processes (including uses of technology) • Review department/division operations • Develop recommendations on: 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 Fees will be negotiated, but are not to exceed $150,000.00. The following minimum criteria will be required in order to enter into a PSA with the City for these services: • Experience with similar regulatory systems, including dispatch-based processes; • A Florida firm (registered in the State of Florida), preferably with a South Florida Office; and • 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 Specialist; or • Certified Public Auditor. • Experience performing similar process audits of regulatory entities is preferred, but not required. Interested firms shall complete the information on the following page and return their responses to the attention of Kristin Tigner,Assistant Building Director at ktigner @miamibeachfl.gov(email)or 786-394-4540(fax),by no later than 4:00 pm on Tuesday,May 29,2012. The City will contact those firms it wishes to interview to determine which firm will be selected to enter into a PSA with the City and perform the work. We are commilled to povidiny exceileni public service and so'eiy to of wiro live, work, and aloy in our vibrow.iroPco!, nisic�ic cornmunity. ® MIAMI BEACH EXPRESSION OF INTEREST Professional Services Related to the External Auditing of the Processes of Certain Regulatory Departments or Divisions Firm Name: Firm Corporate/Florida Address: Firm Corporate/Florida Telephone Number: Fax Number: Firm South Florida Address(if applicable): Firm South Florida Telephone Number: Fax Number: Point of Contact Name: Title: Point of Contact Telephone Number: Email Address: Attach to this sheet, in NO MORE THAN A TOTAL OF THREE(3)typed pages(min. 10 font),answers to the following questions: 1. Briefly describe your firm and the services provided by your firm. 2. Identify/describe similar project(s)you have performed previously,including who the engagement was with,what types of entities were evaluated, and the scope of work performed in those engagements. Identify if any of the entities audited have regulatory responsibilities and describe the type of regulatory responsibilities they have. 3. Identify the key personnel who will be assigned to this project, including their certifications. 4. Identify the proposed methodology and approach for the work to be performed. 5. Identify proposed price for the work to be performed, and what is included in the price. Return your responses to the attention of Kristin Tigner, Assistant Building Director at ktigner @miamibeachfl.gov(email)or 786-394-4540(fax),by no later than 4:00 pm on Tuesday,May 29,2012. The City will contact those firms it wishes to interview to determine which firm will be selected to enter into a PSA with the City and perform the work. 1Ne are CJ!n;Tli!!ed IJ providu.y excallant public service and scla;y to eil v•iie live, work,and ploy in our viL'ront. vop:ca., nis!oric cJrrmuni y. ATTACHMENT 6 ® MIAMI BEACH EXPRESSION OF INTEREST Professional Services Related to the External Organizational Auditing of the Processes of Certain Regulatory Departments or Divisions Please note that the City has extended the deadline for responses to this request for Expression of Interest. Responses will now be due to the attention of Kristin Tigner, Assistant Building Director at ktigner @miamibeachfl.gov(email) or 786-394-4540 (fax), by no later than 4:00 pm on Wednesday, May 30, 2012 instead of the previous deadline of 4:00 pm on Tuesday, May 29, 2012. Please also note that firms will be notified the afternoon of Friday, June 1, 2012 whether or not they have been selected for an interview. Interviews will be held on June 5,2012 from 1 pm to 5 pm at Miami Beach City Hall in the City Manager's Large Conference Room for those firms selected for an interview only. Since it is such a tight timeframe,the City is letting all firms know of the date and time now, so they can be available if they are selected for an interview. We ore cor inMed to poviding excellent public Service Ond so ey 1O cll who live, wOil,and Toby in ou!vibrant, I'Opicol, historic commimi y. ATTACHMENT 7 ID MIAMI BEACH DEADLINE EXTENSION EXPRESSION OF INTEREST Professional Services Related to the External Organizational Auditing of the Processes of Certain Regulatory Departments or Divisions Please note that the City has extended the deadline for responses to this request for Expression of Interest. Responses will now be due to the attention of Kristin Tigner, Assistant Building Director at ktigner @miamibeachfi.gov(email)or 786-394-4540(fax),by no later than 4:00 pm on Thursday,May 31,2012 instead of the previous deadline of 4:00 pm on Wednesday, May 30, 2012. Please also note that firms will be notified the afternoon of Friday, June 1, 2012 whether or not they have been selected for an interview. Interviews will be held on June 5,2012 from 1 pm to 5 pm at Miami Beach City Hall in the City Manager's Large Conference Room for those firms selected for an interview only. Since it is such a tight timeframe,the City is letting all firms know of the date and time now, so they can be available if they are selected for an interview. We ore comoriried ro provid ing exce;,enl public service and so!ey 10 cif who!ire, work,and play in our vibronl,iropicof, nisloric comnwni!y.