Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
2012-28094 Reso
RESOLUTION NO. 2012-28094 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, PROVIDED FURTHER THAT THE FINAL NEGOTIATED AGREEMENT AND COST FOR SAME SHALL BE BROUGHT BACK TO THE CITY COMMISSION FOR FURTHER CONSIDERATION AND APPROVAL. 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, provided further that the final negotiated agreement and cost for same shall be brought back to the City Commission for further consideration and approval. PASSED and ADOPTED this 12th day of December, 2012. ATTEST BY: B Phi .... .-� R MAT I ElkRERA BOWER RAFAEL GRANADO CIT CE. ORATED: TO c� 4TAORMA AGE ON T:\AGENDA\2012\12-12-12\Action Plan to d.0Wf ,i^ OIG Reso.docx 26 12-7 DATE COMMISSION ITEM SUMMARY Condensed Title: A Resolution Approving And Authorizing 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 Operationsln Order To Prevent And Detect Fraud, Waste, Financial Mismanagement, Employee Misconduct Or Other Abuses. A Resolution Approving And Authorizing 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. 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 Item Summa /Recommendation: On April 11, 2012, the FBI arrested five Code Compliance and two Fire Department employees on charges including conspiracy to commit extortion. These arrests and alleged misconduct by a few City employees represent a huge betrayal of the public's trust and of our entire organization. To date, the City Commission has approved actions to address potential corruption and misconduct, including: 1) Reassigning Commander Cardeno from the Police Department to assist the Code Compliance Division in providing day-to-day oversight;2)Entering an MOU with the FBI;3)Entering an agreement with Crowe Horwath, LLP to audit the processes of certain regulatory departments/divisions. On June 6, 2012, the City Commission referred the following two additional anti-corruption items to the NCAC: 1) An agreement with the Miami-Dade County Office of the Inspector General(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; and 2)An Agreement with the Commission on Ethics to develop and provide comprehensive ethics training to City employees who hold positions that are in regulatory areas. On July 18,2012, Inspector General Mazzella advised the City that the MDCOIG was not able to provide its services at this time. On November 19, 2012, NCAC discussed these items. Mr. Centorino, the Executive Director of the Commission on Ethics made a presentation regarding the Commission's proposed ethics training. Mr.Centorino emphasized that the Commission on Ethics is uniquely qualified to teach the course, since its purpose is to serve as the guardian of the public trust by, among other things, educating public servants as to the required standards of ethical conduct. The Administration is seeking direction from the City Commission on: 1)Whetherthe Administration should re-contact the IG to determine if the MDCOIG is able to provide its services at this time. In the alternative,whether to pursue a hotline RFP to establish a reporting mechanism by which employees and the public can report unethical, illegal or questionable behavior by City personnel and the hiring of an Anti-Corruption/Chief Compliance Officer who will be responsible to oversee the hotline, follow-up on investigation brought through the hotline or other sources and conduct contract compliance oversight; and 2) Whether to proceed with the ethics training agreement with the Commission on Ethics. In the alternative,whether to pursue ethics training through other third parties such as Barry University, FIU or Miami-Dade College. Advisory Board Recommendation: FN-CAC (Commissioners Tobin and Libbin present)forwarded the item without recommendation to the City Commission. Financial Information: Source of Funds: Amount Account 1 $45,000 (Ethics) TBD 4-"j__ 2 TBD (MDCOIG) TBD ol§pl Total Financial Impact Summary: City Clerk's Office Legislative Tracking: Rafael E. Granado, City Clerk Sign-Offs: F Department D'r for Assists City na r Manager REG MAS KGB TAAGENDA\2012\1 Y 12-12\Action Ran Commission Summary.do r AGENDA ITEM��D MIAMIBEACH �r DATE IZ 1241L 1L NAIAMI BEACH City of Miami Beath, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Com ission FROM: Kathie G. Brooks, Interim City Manager DATE: December 12, 2013 SUBJECT: Resolutions Authorizing Agreements with Various External Entities to Assist the City in Implementing the Action Plan to Address Potential Corruption and Misconduct: a. A Resolution 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 Operationsln Order To Prevent And Detect Fraud,Waste,Financial Mismanagement, Employee Misconduct Or Other Abuses. b. A Resolution Approving And Authorizing The Mayor And City Clerk To Execute An Agreement In The Not To Exceed Amount Of $459000, 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. ADMINISTRATION REQUEST The Administration is seeking direction from the City Commission regarding the Action Plan to address potential corruption and misconduct. 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 (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. Their irresponsible actions have now cast a negative light on the vast majority of our employees, who are hardworking, dedicated men and women committed to our mission of public service. They also paint an unfair picture of the hard work and I City Commission Meeting, December 12,2012 Action Plan To Address Potential Corruption And Misconduct Page 2 efforts by the Mayor and City Commission to provide honest guidance and vision for our community. Subsequently, 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 was presented. The plan included reassigning Commander Hernan Cardeno from the Police Department to assist the Code Compliance Division in providing day-to-day oversight of the staff.Additionally, a review of Code Compliance cases also began immediately, handled by the City's Internal Audit Division of the Office of Budget and Performance Improvement. The other four proposed actions required Commission consideration and approval. These items were discussed during the May 9, 2012 and June 6, 2012 City Commission meetings. Two (2) of the four(4) items were approved by the City Commission, which are summarized for you here. 1. Resolution No. 2012-27926 (Attachment 1) was passed authorizing the City to enter into a Memorandum of Understanding between the City and the Federal Bureau of Investigation, Miami area corruption task force. 2. Resolution No. 2012-27927 (Attachment 2) was passed authorizing the City to negotiate and execute a professional services agreement with a qualified firm for services related to auditing the processes of certain regulatory departments or divisions. Attached for your reference is a copy of the Professional Services Agreement with Crowe Horwath, LLP for these services, as well as LTC No. 247-2012 from September 28, 2012, (Attachment 3) which provides a status of these services. On June 6, 2012, the City Commission referred two (2) items to the Neighborhood and Community Affairs Committee for further discussion. Those two(2)items are summarized for your review and consideration. 1. 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. Shortly afterthe news of the arrests,the City reached out to Miami-Dade County Inspector General Christopher R. Mazzella about the possibility of the Miami-Dade County Office of the Inspector General (MDCOIG) providing our City with their services to investigate and review allegations of waste, fraud, abuse, employee misconduct and mismanagement. The 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. The Mayor and the former City Manager met with Mr. Mazzella 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 the basis of an engagement agreement began. 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 City Commission Meeting, December 12,2012 Action Plan To Address Potential Corruption And Misconduct Page 3 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 and City Attorney's Office 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. (Attachment 4) The following generally describes the role of the Inspector General and the scope of services that were contemplated to be provided through the Agreement, to be further negotiated: • It is intended that the organization and administration of the MDCOIG will be sufficiently independent to assure that no interference or influence external to the MDCOIG adversely affects the independence and objectivity of the Inspector General. The Inspector General considers this an integral component of any engagement with their office. • The MDCOIG may exercise any of the responsibilities, functions and authorities contained in the Agreement upon his or her own initiative. • The Mayor and Commission, City Manager, City Attorney, City's Internal Auditor and Miami Beach Police will cooperate with the MDCOIG to achieve the goals of preventing and detecting fraud, waste, financial mismanagement, employee misconduct or other abuses, and promoting accountability, integrity, economy, and efficiency in government. It was anticipated that, subject to any limitations that 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. City Commission Meeting, December 12, 2012 Action Plan To Address Potential Corruption And Misconduct Page 4 • 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," that shall be operational throughout the duration of the 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 was not intended to, 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. The proposed Agreement was for a term of three (3) years from date of execution by all parties, and would have been renewable for an additional term; any additional term would be determined and agreed upon by both parties. On July 18, 2012, Inspector General Christopher Mazzella advised the City that the MDCOIG is not able to provide Inspector General services at this time. The Administration can contact the Inspector General again if the City Commission would like to pursue this again. In the event the MDCOIG will not be able to provide these services, it is imperative that the City continue to pursue every effort to prevent and detect fraud, waste, financial mismanagement, employee misconduct or other abuses. It is important that employees, residents and business owners alike report conduct that is not consistent with the integrity the City expects 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 a 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. To that end, in the event the MDCOIG is not able to provide these services, or the Commission desires to explore other avenues, I recommend contracting out for a dedicated hotline reporting service, providing 24-hour toll-free telephonic personal answering, reporting and tracking of compliance concerns to assist in the identification of possible unethical, illegal or questionable behavior. The hotline provides an efficient and independent means of reporting and identifying concerns regarding potential misconduct. These services would be procured through a Request for Proposal(RFP). The features of the proposed hotline would likely include: • 24/7/365 Call Center; • Unique toll-free number with customized greeting; • No call queues ever used. Every Call answered by live operators; • Online case management for reporting, tracking and analysis; and • Immediate notification 24 hours-a-day for severe/sensitive situations; • Online web-reporting for employees. The hotline would provide for the establishment of a reporting mechanism that provides employees, residents and business owners with a means by which to voice their concerns on compliance and other regulatory issues without fear of retribution. City Commission Meeting, December 12, 2012 Action Plan To Address Potential Corruption And Misconduct Page 5 Additionally, I recommend hiring of an Anti-Corruption/Chief Compliance Officer who will be responsible to oversee the ethics hotline,as well as follow up on investigations brought through the hotline or other sources. These types of investigations are currently handled by the City's Human Resources Department, but these investigations take resources from other Human Resources functions. In addition, this position could also include responsibilities for contract compliance oversight. Should the Commission recommend approval of this new position, I would still need to research and identify funding. 2. 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. On April 13, 2012, immediately following the arrests, the City 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 assists the City of Miami Beach with specialized ethics training for all City employees in regulatory functions. On April 19, 2012, Mayor Bower and the former City Manager, 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. 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 5). 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; (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 (6) months of training,which will be 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. City Commission Meeting, December 12, 2012 Action Plan To Address Potential Corruption And Misconduct Page 6 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 that 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. Video recording of sessions and permission to use and/or edit videos as needed to be used in the City's online training as vignettes. 9. 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. 10. 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. By way of background, in 2004, the City developed 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 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 online electronic learning system was procured and has been deployed allowing the City to provide access to all employees of these required trainings 24-hours-7-days-a-week. This system was rolled out in May 2012, and allows the City to enhance staff performance with day-to-day operations and assist with scheduling of departments that have non-traditional working hours. Access to our e-learning system is easy using a link located on both the intranet (Fish Tank) and internet. All departments have access to current available courses covering sexual harassment,diversity,and ethics. Additional courses will be made available once developed. City Commission Meeting, December 12,2012 Action Plan To Address Potential Corruption And Misconduct Page 7 Required courses for all personnel are as follows: • Diversity— every 3 years • Sexual Harassment—every 2 years • Ethics —every 2 years • Teambuilding—every 5 years • Service Excellence/Customer Service Standards—every 3 years Below is the introduction to the Ethics 2012 e-learning workshop available online to all City employees: The Ethics in the Workplace workshop has been developed by the City's Organizational Development Division. In our everyday lives we follow rules and morals that guide us to make decisions. Sometimes though, honoring ethical guidelines is not always easy, as they are often open to interpretation and are ever-changing. We will explore ethical choices and what it takes to be ethical in our behavior. We will go deeper to discover what kinds of personal power we have and how we use this power effectively for ethical behavior. Our goal is to go beyond the basics and create a vibrant environment in which our ethical principles enthusiastically embraced. An ethical workplace will make us stronger personally and professionally, providing for pleasant, meaningful and successful lives. This is a 1-hour course, which also contains short review questions to validate your retention of the information. To complete the course, you must view all slides and answer all questions. In addition to the online option, the City will continue to offer "live" classes for staff who prefer a more traditional learning environment. Additionally, the City has consulted with Barry University in the past to provide external trainers at a fee that ranges from $2,000-2,800 per session, and may opt to pursue this as well, specifically for the ethics workshops. Other local universities such as Florida International University and Miami-Dade College can also be used to provide similar employee training services. The Commission on Ethics also provides free training to municipalities, advisory boards, community councils and private and professional organizations. The two-hour program covers issues pertaining to Conflict of Interest and the Code of Ethics Ordinance. These are Informational sessions intended to increase public awareness of the Ethics Commission and its functions. NEIGHBORHOOD AND COMMUNITY AFFAIRS COMMITTEE The Neighborhood and Community Affairs Committee discussed this item at its November 19, 2012 meeting.Joseph M. Centorino, Executive Director and General Counsel of the Commission on Ethics made a presentation regarding the Commission's proposed specialized ethics training for all City employees in regulatory functions. Mr. Centorino emphasized that the Commission is uniquely qualified to teach the course, since the purpose of the Commission on Ethics is to serve as the guardian of the public trust by, among other things, educating the public, elected and appointed officials and other public servants as to the required standards of ethical conduct. At the conclusion of the discussion the Committee(Commissioners Tobin and Libbin present) forwarded the item without recommendation to the City Commission. City Commission Meeting, December 12,2012 Action Plan To Address Potential Corruption And Misconduct Page 8 CONCLUSION The Administration is seeking direction from the City Commission on: 1. Whetherthe Administration should re-contact the Inspector General to determine if the MDCOIG is able to provide services at this time. In the alternative,whether to pursue a hotline RFP to establish a reporting mechanism by which employees and the public can report unethical, illegal or questionable behavior by City personnel and the hiring of an Anti-Corruption/Chief Compliance Officer who will be responsible to oversee the hotline, follow-up on investigation brought through the hotline or other sources and conduct contract compliance oversight. 2. Whether to proceed with the agreement with the County Commission on Ethics. In the alternative, whether to pursue ethics training through third parties such as Barry University, Florida International University or Miami-Dade College. Attachments Resolution No. 2012-27926 (Attachment 1) Resolution No. 2012-27927 (Attachment 2) Agreement with Crowe Horvath, LLP and LTC No. 247-2012 (Attachment 3) Draft Scope of Services Inspector General Services (Attachment 4) Commission on Ethics Proposal for City of Miami Beach Ethics Training (Attachment 5) KGB/MAS/REG T:\AGENDA\2012\12-12-12\Action Plan to Address Corruption MEMORANDUM.doc I ATTACHMENT 1 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 LAIN 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 Bead 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 Miarni 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 swom officer on a full time basis to the MACTF to work in conjunction with Federal,State, and local law enforcement personneJ 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 MtAM1 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 govemment involved in public corruption throughout the Southern District of Florida. PASSED and ADOPTED this day of_J(J� ,2012. 9J "tlez4e� MAY A PPROV90 AS TO A ST: ' FORM&LANGUAGE riv QR p & EXECUTION C '9 K „ Z •....,...••',� Des ,� H(-" 26� ATTACHMENT 2 a • RESOLUTION NO.. 2012-27927 a A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THEl CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT, IN THE AMOUNT OF $23,0009 WITH CROWE HORWATH, LLP, FOR PHASE I SERVICES RELATED TO AUDITING THE PROCESSES OF CERTAI14 REGULATORY CITY DEPARTMENTS OR DIVISIONS. WHEREAS, at its regular meeting on May 9, 2012, the City Commission adopted Resolution No. 2012-27905, waiving, by 517ths vote,the competitive bidding requirement and authorizing the City Manager to negotiate a professional services agreement with a qualified firm for services related to auditing the processes of certain regulatory departments or divisions in the City;and WHEREAS, in conjunction with the waiver, the City Commission designated Commissioner Deede Weithom to work with the City Administration to develop a scope of work for the aforestated services;and WHEREAS, once developed, the City Commission directed that the proposed scope of work be referred to the Finance and Citywide Projects Committee(the Committee)for further discussion,and WHEREAS, at its regular meeting on May 17, 2012, the Committee approved upon the proposed scope of services, and recommended that, notwithstanding the formal waiver-of competitive bidding,the Administration conduct an"informal"solicitation process, and which the Administration did, by sending out a request for"Expressions of Interest"to certain identified firms;and WHEREAS,the firm of Crowe Horwath, LLP (Crowe)was deemed to be the most qualified firm pursuant to the aforestaEted informal solicitation process and, accordingly, the City and Crowe have negotiated the attached Professional Services Agreement for Phase 1 services, in the not to exceed amount of $23,000, related to auditing the processes for certain regulatory City departments or divisions. NOW,THEREFORE,BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission approve and authorize the i Mayor and City Cleric to execute a Professional Services Agreement, in the amount of $23,000, with Crowe Horwath, LLP, for Phase I services related to auditing the processes of certain regulatory Cityl. departments or divisions. • r PASSED and ADOPTED this_Lh_(__ ••day of 2012. ATTEST: .....8'•c�.,� �' •:tip � 'k INCOM RATE0. CITY CLERK R AS TO L T.%WNDAW1r64-12%Po*ArrftAcUon FORM&LANGUAGE H 2 &F EXECUTION i Yi r ATTACHMENT 3 = a PROIFESSKM&SERMES AGREMENT BETWEEN THE Ort Y OF MUW1 BEACH AND ti CROWE HORWATH LLP .FOR SERVICES RELATED TO AUDITING THE PROCESSESS OF CERTAIN MOUt,.ATORY DEPARTMENTS OR DMStONS 'tb1$ RVFDu�rral Services Agroment ("Agmwwn Is w tad M this 2e day of Jury, 2012 Pfac&m Cate), between the WY OF Mai BEACH, KOWA, a _munk4f corpombon organlod and axleft tinder the laws of the Stara of f fadda, he. its ndpW aMoae at 170 0 Convw4 n Cetrter Drlm, Ngaml Bmgh Fiarida, 33'139 �and CRONE HORWATH LL.P., an Ir�cilana Umfted Llgbltf'�jr Pnrb wta ,whose slots Is 401 E Las Cis Blvd,Wbe'1100,Ft. Lauderdale, Fivrida 33301. DEFINIMc, N8 Agreement: T Is Rgrbar a t betqee the CI#y and Ownuttsnt, Wuding aq exhibits and aunerdmar*thwato. C"dy Mmagef The chW ndmk*&*m o#t3cer of ft City. Consult ft For the purpum of this AgraernerA,Consuftak shed to deemed to be an Independent contm&r,and not an vent or employee of the City, semow., A H sawices, .work and act ions .by tits CAneuftard perto med or undertaim purwantto the Agreement . Fee: Amount paid to the Consultant=cormm don fix Servk va. Risk Manager. The RWk Hangar of ttw Clfy, wfth oflt ee gat 1740 Convwfdw Carrier DrWe, Third Flocx, Miami Beach, ode 33139: Waphone numb (3A 373-7000,EA fib:and fax nmter.{3i)873-7023. SEC` ION 2 . 8�7PE t3�f�EFfltiG�tS,E�V,ft'�Si 2A In corWdwaWn of the Fee to be peTd to Coneutarrt by ihe City, Corauhant shall provio tie vio* and s elves desaftd In Exhibit `,A" hareto.(the Services). The aforarnentfoned Exhfbft W dewfls s-only Phase I of#ho Pmjad-Plan. The'aoope of wMm for Phew It of dv Project fir}wOl'be negatlfed dur*V Phase I end, if pwtift aome to pmwed whh Phase%.it shalt be dare as an wianftw t to this Agreement 2.2 CcrmbAta Services, and any delivembWs Inddent thengo, $hall be wmpkted In accordance wb she tlmellne arWor schadula In'Exhibk"A•-herWo. 'i SECTION 3 JERM The term of this Agreement(Term) shall commence upon executlon of this Agreement by all parties hereto, as set forth in the Effective Date on page f hereof, and shall tarrninate six(6) months from such Effective Date (unless earlier terminated as otherwise provided in this Agreement In), Notwithstanding the Term provided herein, Consultant shall adhere to any specific timelines, schedules, dates, and/or performance milestones for. completion and dellvery of the Services, as same Is/are set forth In the tirnellno and/or schedule referenced In Exhibit `A" hereto, sECTiaN 4 4.1 In consideration of the Services to be provided, Consultant shall be compensated for Phase 1, in the amount of 23,000,as specified In Exhibit"K hereto. 4.2 The fee Is to be paid upon completion by Consultant and acceptance by the Cry, of The Services in Phase I, as attadied in Exhibit W. 41 Upon receipt of an acceptable and approved Invoice, payments) shah be made within thirty (30) days for that portion (or those portions) of the Services satisfac wly rendered hand referenced in the parficx:lar involoe), Invoices.snail inGiude a detailed descxlption ofi the Services (or portions thereof? provided, and-shall be submitted to#he City at the following address: Attn:Patricia Walker,Chief Financial Officer - 1700 Convention Center'Drlve,3 4 Floor Miami Beach, Fiodds 33139 SEC 10N 6 JERNIN$�� 15.1 IERMINAD914 FOR reAUE If the Consultant shall fall to fuMil in a timely manner, or otherwise violates, any of the covenants, agreements, or stipulations material to this Agreement, the City, through its City Manager, shall thereupon have the right to terminate this Agreement for cause. prior to exercising its option to terminate for cause, the City shall notify the ; Consuttant of Its violation of the particular term(s) of this Agreement, and shall grant Consultant seven (7) business days to cure such default If such default remains uncured after seven (T) business days, the City may terminate this Agreement without further notice to 2 ..................... ............. Consultant. Upon termination, the City shall be fully discharged from any and all llabillfies,duties,and terms arising out of, or by virtue of,this Agreement. Notwithstanding the above, and subject to 8. below, the Consultant shall not be relieved of liability to the City for damages sustained by the City by any breach cf the Agreement by the Consultant The C4, at Its sole option and discretion, shall be entitled to bring any and all legal/equitable actions that It deems to be In its best Interest in order to enforce the City's right and remedies against Consultant. The City shag be entitled to recover all costs of such actions, including reasonable, attorneys'fees subject to the limitation of liability specified In 8. below. 15.2 JEEIMINATIQU FQ&Q2 I.YE, NIENCe OE THE QffY THE CITY MAY ALSO, THROUGH ITS CITY MANAGER, AND FOR ITS CONVENIENCE AND WITHOUT CAUSE,TERMINATE THE AGREEMEW AT ANY TIME DURING THE TERM BY GrVING WRITTEN NOTICE TO CONSULTANT OF SUCH TERMINATION; WHICH SHALL BECOME EFFECTWE, FIFTEEN 08) DAYS FOLLOWING RECSIPT BY THE CONSULTANT OF SUCH NOTICE, IF THE AGREEMENT IS TERMINATED FOR CONVENIENCE BY THE CITY, CONSULTANT SHALL BE PAID FOR ANY SERVICES SATISFACTORILY PERFORMED UP TO THE DATE OF TERMINATION; FOLLOWING WHICH THE CITY SHALL BE DISCHARGED FROM ANY AND ALL LIABILITIES, DUTIES, AND TERMS ARISING OUT OF,OR BY VIRTUE OF,,THIS AGREEMENT. 5.3 TERMIN I INULVENCY The Oily also reserves the right ht to terminate the Agreer ent in the event the P Consultant is placed either In voluntary or Involuntary bankruptcy or makes an assignment for ft benefd of creditors. In such event, the right and obligations for the parties shall be the same as provided for In Section 5.2. SECTION 6 INDEMNIE)CA ,ON AND INSURANCE REQUIREMENTS 6.1 JNJ29MNJF1GAD0N Consultant agrees to Indemnify and hold harmless the City of Miami Beach and-Its officers, employees, agents, and contractors, from and against any and all actions (whether at law or In equity), claims, Ilabliffies, losses, and axpnses, Including, but not lirnited to,attomeys'fees and costs,for personal or bodily Injury,wrongful death, loss of or damage to property, which may arise or be alleged to have arisen directLy and proximately from the negligent acts or willful misconduct of the Consultant, its officers, employees, agents, contractors, or any other person or.entity acting under Consultants control or supervision during Consultant's performance of tie Services pursuant to this Agreement. To that extent, the Consultant shall pay all such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses, and shall pay all costs and attorneys' fees expended by the City In the defense of-such claims and losses, including appsels. The parties agree that one percent (I%) of the total compensation to Consultant for performance of the Services under this Agreement is the specific consideration from the City to the Consultant for the Consultant's indemnity agreement. The provisions of this Section 6.1 and of this indernnificaUon shall survive termination or expiration of this Agreement. 3 6.2 INIjURANCE RE©UIREMEM The Consultant shall maintain and carry In full force during the Term, the foAowing Insurance: 1.Consultant General Liability,in the amount of$1,000,000; 2.Consultant Professional Uabillty, in the amount of$200,000;and 3.Workers Compensation&Employers Unbiilty, as required pursuant to Florida Statutes. The Insurance must be fumishad by Insurance companies authorized to do business in the State of Florida. All Insurance policies must be issued by companies rated no less than °B+* as to management and not less than Class Via as to strength by Lie latest edition of Best's insurance Guide, published by A.M. Best Company, Oldwick, New Jersey,or Its equivalent. Consultant shall give the City at least thirty (30) days written notice prior of termination, canc;eliat on or reduction in-coverage of any Insurance policy required grain. Original certificates of Insurance must be submftted to the Cfty's Risk manager for approval(prior to any work and/or services commencing) and wlil be kept on file In the Office of the Risk Manager. The Consultant is also solely responsible for obtaining and submitting all insurance certificates for any sub-mnsaltants. Compliance with the foregoing requirements shall not relieve the Consultant of the ilablilties and obligations under this Section or under any.other portion of this Agreement. The Consultant shall not commence any work and or services pursuant to this Agreement until all Insurance required under this Section has been obtained and such Insurance has been approved by the City's Risk Manager. SECTION 7 L1rfiA,3O.jUj3iSDjQIIQN N U EJjLjRY_JRL&wave This Agreemard shall be construed in accordance wfth the laws of the State of Florida. This Agreement shall be enforceable in Kaml-Dade County, Florida, and If legal action Is necessary by either party with respect to the erdorcernent of any or all of-the terms or conditions herein, exrtusive venue for the enforcement of same shall Ile In Miami-Dade -- County, Florida. By entering into this Agreemerd, Consubrt and the City expressly waive ' any rights either party may-have'to a trial by Jury of any civil litigation related to or arising out of this Agreement. • 4 4 ii f S r SECTION 8 LIM,A339H of_rdtIY.3 u�t�, Except where it is judicially determined that Consultant acted with bad faith or Intentional misconduct, and subject to the indemnification obligations of Contractor specified In Section 6, neither the City nor Consultants liability and the Ilabllity of their respective personnel shall not exceed the fees actually paid to Consultant under this Agreement. This limitation of liability shall apply to the fullest extend allowed by law, and shall apply to sny alleged or actual Bairn, liability or damages, Including without limitation, claims, llabiiltle$ or damages based In negggence or other tort, contract, warranty, fiduciary principles, statute or common law. This provision shall survive termination of this Agreement In whole or in part. SECTION 9 [INTEIsMONALLY DELETED] SECTION 10 2098F2001 2 i0A QUIT AND INSPEZION5 Upon reasonable verbal or written notice to Consultant, and at any time during normal business hours (i.e. 9AM r- 5PM, Monday through Fridays, excluding nationally recognized holidays), and as often as the City Manager may, in his/her reasonable discretion and judgment, deem necessary, there shall be made available to the City Manager,and/or such representatives as the City. Manager may dearn to act on the City's behatf, to audit, examine, and/or biped,any and all other documents and/or records relating to all matters covered by this Agreement. Consultant shall maintain any and all such records at its place of business at the address set forth in the'Notices" section of#his Agreement Consultant may retaln one copy of all such documents and/or records and work product for up to seven M years from termination or expiration of this Agreernerd. t 1.6.2 UNTEN-nONALLY DELETED] 40.3 ASSIGNMEbI TRANaErEn.��.5_t�.�.S..C_. )}NAUL33NM Consul;pant shall not subcontract, assign, or transfer all or any portion of any work and/or service under this Agreement without the.prior written consent of the City Manager, which consent, 9 given at all, shalt be in the Manager's sole judgment and discretion. Neither this Agreement, nor any terra or provision hereaf, or right hereunder, shall be asslgnable unless as approved pursuant to this Sd�tlon, and any attempt to make such assignment (unless approved)shall be void. 10.4 PI L!� C F.M33rt CRIMES Prior to commencement of the Services, the Consultant shall file a State of Florida Form PUR 7068, Sworn Statement under Section 287.133(3)(x) Florida Statute on Public Entity Crimes with the City's Procurernent l7ivt61on. 10.6 EQ U&9MELMEHI QPEQ MNITY In connection with the performance of the Services, the Consultant shall not discriminate against any employee or applicant for employment because of race, color, national origin, religion, sex, gender Identity, sexual orientation, disability, marital and familial status, or age. 10.$ ,"hjFL Q ,QF.INTCREST The Consultant herein agrees to adhere to and-be governed by all applicable Maml-Dade County Conflict of Interest Ordinances and Ethics provisions,as set forth In the Miaml-Dade County Code, and as may be amended from time to time; and by the City of Miami Beach Charter- and Code (as -some may be amended from time to time); both of which are incorporated by reference herein as if fully set forth herein. -The Consultant covenants that It presently has no Interest and shall not'aoquire any Interest, direct or Indirectly, which could conflict in any manner of degree with .the performance of the Services. The Consultant further covenants that in the performance of this Agreement, no person having any such interest shall knowingly be employed by the Consultant. No member-of or delegate td the Congress of the United States shall be admitted to any share or part.cf this Agreement or to any benefits arising there from. SECTION 11 Ail -noftees and communications In wrtfng required or perrnitted hereunder, shall be delivered personally to the representatives of the Consultant and the City listed below or may be malted by U.S.-Ceftlffed'mail, returh receipt requested, postage,prepaid; or by a nationally recognized ovemight delivery service, Until changed by notice In writing, all such notices and communications shall be addressed as follows. TO CONSULTANT: John Weber Crows Horwath LLP 401 Las Alas Blvd.Sulta-1100 FL Lauderdale,Flori4 33301 TO CITY: -PaWcla Walker,Chlet'fFinancial Officer 1700 Convention Center.Drlve,V Floor Miami Beach, Florida.33139 6 Notice may also be provided to any other address designated by the party to rive notice V such altemate address is provided via U.S. certified mail, return receipt requested hand delivered, or by overnight delivery. In the event an alternate notice address is properly provided, notice shall be sent to such alternate address In addition to any other address which notice would otherwise be sent, unless other delivery lnstnx,bn as spedfif caily provided for by the party ended to notice. Notice shall be deemed given on the day on which personally served, or the day of receipt by either U.S.cerElfled mall or overnight delivery. SECTION 42 MJ6Q9LJMg0U8 PRQ3aSIQN3 42.1 CHAWES AND AQUIIIONS This Agreement cannot be modified or amended without the express written consent of the parties, No modification, amendment, or alteration of the terms or condiflons cont'alned herein shall be effective unless contained In 6 written document executed wfth the same formality and of equal dignity hew ft. 12.2 SE1�1 1L1"l'Y If any term or provision of this Agreement is held invalid or unenflorceable, the remainder of this Agreement shall not be affected and every other terra and provision of this Agreement- ': shall be valid and be enforced to the fullest exten#permifted by law. 12.3 �,, ,OFGRE,.EMM The,City and Consultant agree that this is the entire Agreement between the parties.This Agreement supersedes all prior negotiations, correspondence, conversations, agreements or understandings applicable to-the matters contained herein, and there are no commitments, agreements or understandings concerning the subject matter of this Agreement that are not i oontainad In this document. Title and paragraph headings are for convenient reference and are not intended to confer any rights or obligations upon the parties to this Agreement 7 IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be - exemded by their appropriate officials, as of the date first entered above. CITY OF MIAMI BEACH,FLORIDA ATTEST: By: Clty Cleric r B� MOST FQR CONSULT �°) CRf)VVE HaR11VATH LE,P ATTEST: .By. saewdw d, Partner Print Name Print Narne C;till9am7JRGesdA1 Dssk1..op\PSA for Cr+o"Pwwath.doc •APPROM AS TO FZNW&LANGUAGE A FM E>MCLMON City AUOMJS�� Date y Exhibit A The purpose of this project plan is to detail the speclficc tasks and procedures that will be taken as part of Phase I—Audit planning of Crowe Horwath LLP`s 'Crowe")engagement with the City. The main objective of phase 4 will be to finanze the scope and-Objectives for the audit and to develop specific eudit procedures to be performed.Though, Crowe envisions utilizing their standard operational and performance audit approach,as outlined.in their presentation to the City,that approach was designed to be fiuld so that changes can be made to meet the specific needs and goals of the City. Crown's plan for phase I is provided below. Phme I—Audtt planning �, ,t�merncx C,nr�#�narrca The first step of the engagement will be to conduct an entrance conference with City management and other key project stakeholders. during The entrance conference Crowe will coordinate the project tfmhg, Including scheduled meatings and deliverable due dates. In addition, Crowe will determine the goats estabil6hed by management which will be assessed during this project. Finally, during this meeting,Crowe will present the major tools that they envision using during the engagement Including a project work plan and project management toots so that the City and project stakeholders will stay abreast of the progress of the project I FYrWAN Scope=d Objaclt w In conjunction with Miami Beach,Crowe will finalize the scope and objectives to be audited. Due to the variable nature of the potential scope and objectives of performance audits, Crowe, and Muni Beach, need to have an undemtanding of the nature and profile of the program or prooess to be audited and the goals of Miami Beach. A clear definition of the Audit Scope and Audit Objectives will be the product and deliverable for this step. Miami Beach provided a listing of processes and departments. Therefore,Crowe have a preliminary understanding of the areas the City desires to cover. Specifically, Crowe.wilt plan to perform procedures over the following processes, Fire Inspection process � Fire Prsveatticm Division pe;rang practas + Public Works Dept pcmittttsg process In addition,tlo the 4 processes listed above,the City also has.other Departm enLcMi visions that are desired to be covered for this project These DapaftentafWslons are ss follaws. U&Complianca Division* + Per1dngBntrcemm1D1vision" P 'Department As part of this task, Crowe will work with the City to ensure that the four processes listed above as still desired to be part of the project scope. In addition,Crowe will drill Vwn Into the Department and Divisions rated above to determine what specific process(es),the City desires to cover as part of this project. Once the processes have been confirmed, Crowe will work with the City to finalize the project goals and objecttves. The City provided three main objectives for the project. These objectives are listed below: + Review orgmiza6mW structure and fanctiou }review d TmUaeat/div:l&bn pmcesso(includiag uses of techaoloV) o Re riew In�coy; Is o Raview departmntldivWon opersdm 9 0 Develop recc mmendatlons on:process iII#ovemeat,tmmnal controls,efficiencies,etc. 3. Assess Risk and S1gnl,{i=ce Performance audit risk,similar to the risk in financial audits,is the risk that the auditor will not-develop appropriate tests or gather sufficient competent evidential matter to support findings, conclusions or recommendations,or that there will be Intentional misrapresentation or fraud related to the audit scope or objectives. Crowe will assess risk around the audit scope and objectives to assist in the design of appropriate audit procedures.To determine significant risks, Crowe will perform Initial Interviews with City management and other key project stakeholders to determine what they view as the major issues or concerns over the processes that part of this engagement in addition, Crowe will review previous audit reports(both internal and external)to determine the nature and extent of any findings that relate to or affect the processes and/or departments covered by this project, d. Dew1gpAudUPrograms In a performance audit,the audit must identify the criteria that will support the assertions to be tested as well as determine what the appropriate measurement may be for the significant criterion. The last task of Phase i will be to develop the speck procedures to be performed. Utlilxing the scope and objectives from task 2 and the risks obtained from task 3, Crowe will design procedures to analyze the overall structure of each process along with a control and operational analysis of each process covered under this project. Utilizing the risks obtained in task 3 vAll allow audit steps to be focused in areas more significant to the objectives of the audit. Once the audit program is drafted,Crowe will provide a draft,of the program to the City for review and concurrence.Once the plan is approved,Crow6 will Initiate Phase 2 of the engagement. DellverabfsWOufput of Phase-1 will Include; Frcject/Communication Plan detailing M Objectives Scope X Audit.program(i.e.procedures to be performed) Reporting protocol Status report template is Escalation and Issue protocol • Departmental material request letter Expected Phase I timeline: WA Phase I Entrance Conference Determine Scope and Obiectives Assess Risk and Si n fcance develo p Audit Program ` Flxad Prica C"t for Phase 1- $23,000 10 I MIAVIBEACH OFFICE OF THE CITY MANAGER LTC# 247-2012 LETTER TO COMMISSION TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Kathie G. Brooks, Interim City Manager/;�t- DATE: September 28, 2012 SUBJECT: Report on status of services performed by Crowe Horwath LLP, related to the auditing the processes of certain regulatory departments or divisions. The purpose of this LTC is to update the Mayor and City Commission on the status of the services performed by Crowe Horwath LLP, related to the auditing the processes of certain regulatory departments or divisions. On May 9,2012,the Mayor and Commission adopted Resolution No.2012-27905,which waived,by 5/7th vote,the competitive bidding requirement,finding such waiver to be in the best interest of the City, and authorized the City Manager to negotiate and execute a professional services agreement, in an amount not to exceed $150,000, with a qualified firm for services related to auditing the processes of certain regulatory departments or divisions. On July 25th, The City entered into an agreement with Crowe Horwath LLP for phase I of this project in the total amount of $23,000. The purpose of Phase I was to detail the specific tasks and procedures that will be taken as part of the Audit planning of Crowe Horwath LLP's engagement with the City. The main objective of Phase I was to finalize the scope and objectives for the audit and develop specific audit procedures to be performed. On September 5,2012,Crowe Horwarth LLP,completed the attached Risk Assessment Report as a result of Phase I of the engagement with the City. Furthermore, Crowe Horwath LLP submitted the detailed specific tasks and procedures, timelines, and estimated costs for Phase II of this project. Amendment No.1,to the original contract,which includes the aforementioned Phase II of this project, is anticipated to be executed next week. Attachments C: Patricia D. Walker, Chief Financial Officer Raul J. Aguila, Chief Deputy City Attorney Rafael Granado, City Clerk `— tc n c- s''J • ; F:XPURC1$ALLWIaria\Contracts\Crawe Horwah LLPILTC for Crowe.doc r G? r OL LL m O > Lai w c a� C V � � Q N LA cu cl I— a (f) i N LL m O > a a cr 7 U D r.. y o .0 N V/ O E � O C c0 O C � � m O cc 2 O a t5 -.ca UL t a 0.O Q O c O O cm O CL ik _ CM a� Q � •c' aD cla ° Q CL �-' w O p m 4-0 cc x 0) cu -oc cu V w Ix M U 2 a a. z -- U - M LLL I D � I Zt 41 � Q N ai s a1 U F- n i a, E c N i �-- t as a o CL N W G = W eC C U I N L A♦ Ol 1 E (u W CL !C e2cC Y �.+ L i G e O Cu LE�" _ -- - -- (Q) c w -� N � U t IL O LL CL 0) m is O t � O c o, _. 4 WN N 1 i 5 A i M • C cu • CL i C _ ------- co 3 H 0 L!J a $ 0 i U") IL 3 O U. C O v� cc -p C ,— '�"' O cc x m -- O Cl) ® `- O .® O a C E C LO .cr (� C N �' ♦'' `C O -- cn a C -C CL O C O `O O O E C, ® O O Co CL o 2 O —_ CD C C O CD Co 0 0 C CL ® .® -C O ® O R co -0 to -� cu CD L) O as •� C L , O . � ° � � C cu O Je jj V ca ® O ® C3 u � �war � Q O O �. 'C O ( Q L Q O .L O CL x 2 -0 O O c* O (D -co) o O LL m d t O a cr v O CL s (L 4 cl E cII C 'O Y t cc ca 0 2 °o L w c� a IM Q CD m c � _ � .� V -o u. LD E cn v •c •o OINEW Cu ■ - ■ ■ C: C cu i � V E O o E .0 0 i O C Q L C - Amp 0 72 r-r _ V �Q 0 C V C Cl O C y, t!) c3 E ° U CO W Lu Q a —i ° O o cc U- � � C 0 L m V s 2 o ° O c r c L. � U V oc �- LL L) 0 (L 4-j A(�: Li m y t H H Q M a C 11 J H cr V •— v y a o � � o � N h +, m o Y v o C � w a as a �n u v O .� � Q ii a � o c O V C c LL cn •0 •> N O N o m a � c -- .� O c a� as Q �c O C �. C L Q C Cc CCS cl Oa j o F E 'o o C W t O c C] c t - IL L IL a € V E a o a Y 2 V .0 c � 0 (D ?L (s .— 2 C .�- O CL x _, .` O*a co O ■ ■ ■ ■ ■ �' .. 2 ■ Q I. m O LL O O y 0 N Q h an L. = v O = J N CU C CC = cc �- 'C w U C•7 • $, a, E E o t = n � Qau Z co ceiQ � CE. tiaJV 1— > o p u m O �C M t of V f Ln r N � 3 4 � o a �u `^ O O V o � a CL r ,a " m !A di s O , m of .20w rn c - a. o � L u c Y v d v 7 R cn GA 4u 0 _ rn O _d fd C n � V a C +r C' Q N ` a ro V a C ` u ro OI w � IA a u 'U Oo � >. � i� o � L oN ca ccc c a pt - c c 4 C '� j a.. is O ry ? C ;� C v V M E U � � � �'. � � � E � oo, 0CW 'L° o � � a•� Eo ca v vi Z a, 3 9 uiix u: V0 aaCc U. O cnmVa — F- O m IA v !I 0 m Q L J 0 cr I a J � C a 'c � a „ to • , x • �Mj O • • • ii IL • ■ u li t i I. V a a C c O W ® �a F F� c sL ® 1 �� as SM a E I IL 0 WSW ® ° ® w • � !� o- oI o Iota a VA 2130 'Eva. c� a o■■ti C 3Z m L r� O IL0 ILaa. aIL U) I IN 2' U ° • 1 'Ile mmmmmmmmi O a v�ao cu O cc C y.., cu ;�.., C s N cu -0 C cu a C is c }? O ® C •� a CL m Cb m vm C cm o .E a3 .� C� V cm J cu O J O e to 1 O O c J LV? O N cu c a m m c° .E — — O L a� C L L o . •� •a-0 Ca Co 5 d CO = C L U. V ia G .. .. LO C C LPL 01 V U e O C O 0 Cc C. C 4 a3 E c Co A CL 0 E y; EA) E O � r E � I I t I L- .— o o a, 5 a) o o }' as CL e C ® o C ® cu C a C 8 Cc 8 • .. — U C •m �.., se A� vac U L U �c .� v U E `° J? m CU a. o O a) •cm a� 0 co O c E — aD o c J E '® _ 'v J E C •— `•�' ` O O O — LL ■ U U a U cu t_ G Q w- r rn L C C (D C > C y co O � O •- c U e 0 0 U = Q C- Co p L" 0 0 •c O c j O v D o .p O E m O Q V E p N C � O _ E O C .V Cl) m a c O C Q N I 0 � O CU C CD O •- '`'' U C L O p O C N +_' . CD 0 V cn o p w Q. CD 2) 2 (D cn CO cp 0 O V O C 0) 0 0 U ® (o V1 > O > �- a V O ` m cn O Q cn ® p C Cl) L +� `o O c +=� U C 4- N O 4? Y � o 00 .0 EQ V o M v coo oL � � O v > e o ._ ci) oo E co C L- a- � o ,_ ai 4- s 0_ _ _ V � ® ,moo � e oo c� o LU 0 Cl)i > O cu a ca LL. ■ V/ If ■ ■ ' Q I N C i � c o LL O m L O wo- o E '- a� a O O c 70 +0.+ c u6 tea. CL a ® o 'a m c c C .E ca cc r 1 ♦••' 8 ,WM ; C 8 '® O — O O' cc m O p O O > O vi o > > CL ui tm s s ' A a� rn ® CL co 0 nntt 2 0 0 4? x 3 co cc e� V � � '� e' er � >co � ._ cu CL cc 0 cc cc C X cu 4w- Q� O � O® V a a U) ca c X:m a �. �O UJ •— , (n Q . E C: LL cu �, ■ 4 N I, 88 M C! �. ti P v) E m .0 fA W N 0 > a ++ J N � C � .Q C U D r t C M i 's U3 oo � eN _ A. cWCL c a cc � �I .- eW � � o '° ii CL o o 8 � 888 888 8 � 8 § � e LA N N LS! d' O N C N N - •i g N� O E •o. 4-0 �� d9 M 1A V c LL U e .� _ a it O o e O o '7 o c E r e 'O3L V � th m ® a •� O _ G = C C �y N t� t� c .� w •L X .�. o e e c rn c e ` ca U C e :r E ca o W c a ® O f' � m c p. `° U c > F H > > a Lcaa. V 1. 0. 4 1� Oi,. c4 a a a. (a ¢ vy .0 CD co !� _2 C� u cc � C cc m — C c. � }, 'c a a a� r I— d C O O C L- d °C o E cn > m O V O O CD C m •C C >* N .o •_ . CD cc _ �./ V ( c V a CL 2 ® CL O � .... 10 E L I a c a v C) C ILDR cn Cc 0 ca CL CL Lm 0 75 CC M CC O .0 V _ ®1! > >+ c 2 — N 4 0 o 4) cc 2 E 8 CL 2 o CL a e. a •a 0! or O E a� a� cn a� E a� E a� 2 U ® 0 O ® O O cim CL Jc CL ■ ■ ■ ■ ■ ■ Q L r O O U. 0) m O t O ..r y a cr ++ J a 'C U D ° 0 Q �I L � L ° c cu CL c a. Q cc 0 ca cc > �. 2�. ® L I L C 0 cu c� s a CL c U ca N 2- ® N CL °� c �, CL �_ 5 W � ° ' -1-0 > 4) � a O U) L CO) M - Q I AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND CROWE HORWATH LLP, DATED JULY 26, 20'12 FOR PHASE 11 SERVICES RELATED TO AUDITING THE PROCESSEESS OF CERTAIN REGULATORY DEPARTMENTS OR DIVISIONS This Amendment No. 1 to the Agreement made and entered this day of ,2012, by and between the City of Miami Beach,a Municipal Corporation existing under the laws of the State of Florida(hereinafter referred to as CITY), having its principal offices at 1700 Convention Center Drive, Miami Beach, Florida 33139, and CROWE HORWATH LLP., an Indiana Limited Liability Partnership, whose address is 401 E Las Olas Blvd. Suite 1100, Ft. Lauderdale, Florida 33301(hereinafter referred to as Consultant). RECITALS WHEREAS,the Mayor and City Commission adopted Resolution No.2012-27926 on June 6, 2012, approving and authorizing the Mayor and City Clerk to execute a Professional Services Agreement with Consultant for Professional Services for Services Related to Auditing the Processes of Certain Regulatory Departments or divisions (the Agreement); and WHEREAS, the Agreement provides for a Phase I and Phase it scope of services; and WHEREAS,the City and Consultant proceeded with Phase I services(audit planning),in the amount of$23,000, and now wish to proceed with Phase II; and WHEREAS Section 2.1 of said Agreement states that the scope of services for Phase II of • 9 p the Project Plan will be negotiated during Phase I and, if the parties agree to proceed with Phase 11,it shall be done as an amendment to the Agreement. NOW, THEREFORE, the parties hereto, and in consideration of the mutual promises, covenants, agreements, terms, and conditions herein contained, and other good and valuable consideration, the respect and adequacy are hereby acknowledged, do agree as follows: 1. ABOVE RECITALS The above recitals are true and correct and are incorporated as part of this Amendment No. 1. 2. MODIFICATIONS The Agreement is amended to include the scope of services for Phase II, which services (including the fee and timeline(s), for such services, are attached and incorporated as, respectively, Schedules "A-1", "A-2", and "A-3"to this Agreement. 3. OTHER PROVISIONS. All other provisions of the Agreement, as amended, are unchanged. 4. RATIFICATION. The CITY and Consultant ratify the terms of the Agreement,as amended by this Amendment No. 1. • IN WITNESS WHEREOF; the parties hereto have caused this Amendment No. 1 to be executed in their names by their duly authorized officials as of the date first set forth above. ATTEST: CITY OF MIAMI BEACH By City Clerk, Mayor, Rafael Granado Mattie Herrera Bower ATTEST: CONSULTANT: CROWE HORWATH LLP i BY TITLE: TITLE: Print Name Print Name i r u i; I' F:\PURC\$ALL\Maria\Contracts\Crowe Horwah LLP1AmendmenAftendment Boiler Plate-September 2012.doc EXHIBIT A-1 i! CITY OF MIAMI BEACH PHASE 11 SCOPE OF SERVICES FOR PROFESSIONAL SERVICES AGREEMENT SERVICES RELATED TO AUDITING THE PROCESSEESS OF CERTAIN REGULATORY DEPARTMENTS OR DIVISIONS The purpose of this project plan Is to detail the specific tasks and procedures that will be taken as part of Phase II— Fieldwork and Reporting of our engagement with the City. The main objectives of phase 2 are: ! • For processes that have been given priority(are within scope),gather information and document the current state of processes using a standard format that uses process maps(diagrams)and narrative descriptions. j • For each process, identify and document control deficiencies and potential improvement opportunities. Perform verification steps to ensure current processes and control deficiencies are properly understood and documented. • Identify best practices, where available, and review applicability to the City. • Perform analysis of alternative process improvement approaches and create recommendations based on the analysis. Document recommendations and perform review steps to ensure there is common agreement that the recommendation adequately addresses the deficiency. Though, we envision utilizing our standard operational and performance audit approach, as outlined in our presentation to the City,that approach was designed to be fluid so that changes can be made to meet the specific needs and goals of the City. Our plan for Phase II is provided below: Phase 11 -Fieldwork Adequate planning, proper supervision and efficient execution are the keys to an effective audit process. We will Issue a status report at the end of each week for the duration of fieldwork that will provide stakeholders with information into key upcoming milestones and if we are on schedule with those milestones, project accomplishments, issues, risks and the next steps of our audit. We have provided below a brief outline of procedures that are common in operational audits. Process and Internal Control Audit Approach Our process and internal control audit approach is flexible to match our clients'different environments. This ensures we will deliver a solution which meets the needs of management and the requirements of the AICPA and GAGAS, as well as maximizes efficiency in getting there. Crowe's internal control assessment is built upon the COSO (Committee of Sponsoring Organizations of the Treadway Commission)framework for internal controls. Figure 1 -COSO Internal Control Model UNICATION e : F r� I Rju AssEssmtNT CONT- IROL Utilizing the COSO model will allow us to analyze and test each areas you have requested using a method and criteria that is deemed the Industry standard. Process Interviews and walkthroughs Our first task for Phase II is to conduct detailed process interviews with all City staff involved in the process being analyzed. In addition,we would perform walkthroughs of each process to observe the process as it occurs. These interviews will be comprehensive in nature and will incorporate as many staff involved in the process as possible to get input on the process from as many employees as feasible. We will analyze the information communicated to us and compare to the other interviews for this process and to the walkthroughs to ensure a consistent process is being communicated. We will note any inconsistencies between the interviews and between our interviews and our walkthrough. During the interviews, we will request additional information related to the current processes as deemed necessary. Documentation Analysis In order to enhance our understanding of the current processes and internal controls of the processes under audit, we will analyze the documentation collected at the entrance conference as well as in the interviews and walkthroughs. Written policies and procedures (if any) will be reviewed during this task along with any forms, checklists, etc... utilized by staff to assist with the process. These documents will be analyzed for proper controls and compared to the information provided during our interviews and our walkthroughs to determine any differences between the documented process and the actual process being performed. The documentation obtained will also be compared to industry best practice. Based upon the results of our documentation analysis, we may require limited follow-up interviews to verify information compiled during the documentation analysis stage of the project. Document the Process Once we have completed our interviews and reviewed any process documentation,we will draft a high level process flowchart of each process._This flowchart will include any significant controls that exist in the process.We envision using Microsoft Visio to complete the process flowcharts. Process and Control Assessment We will summarize our assessment of the current controls and processes of the functions under audit. This will include an identification of the major functions, job responsibilities, and existing internal controls for each of the areas under analysis. During this section,we will also assess the procedures that exist for each function under audit and if these procedures appear to be followed. Based on this assessment, we will identify any process gaps and control weaknesses. In addition, we will identify any repetitive processes or controls that could be leading to inefficiencies. Develop Findings and Recommendations Findings will be developed and written using the standard reporting criteria included in Government Auditing Standards. One of the critical steps to ensuring that Miami Beach receives high quality reports is to verify the facts of all findings that will be presented in our reports. Therefore, before any findings are drafted, we will ensure that the facts surrounding the process or control are understood and agreed upon by us and the City. Reporting Draft Report and Exit Conference We will develop and issue a draft report to Miami Beach for review. We will then plan to conduct an exit conference with Miami Beach. At this meeting will walk through our conclusions, internal control assessment and recommendations to (again) confirm the facts underlying any potential findings. Final Report Based on comments from the Exit Conference and Miami Beach's management review of the draft report,we will revise and finalize the report.We envision our report to include the following sections, but are flexible to modify this structure to meet the Miami Beach's needs: • Executive Summary • Background • Objective, Scope and Methodology • Findings and Recommendations I i ui a a I g I I I i N n � O { r E 'I r N N � � I 2 1 H W { X i Y W W N ' W e 'I 4' a f i s m I 7 i N I N m N $ m w E CD c� b W EW N N $ 4 r N � e � — LL y U H 7 f7E y 0 e IL CL j a a a z r: h I EXHIBIT A-3 1. ADDITIONAL SCOPE OF SERVICES Scope as set forth in Exhibit A-1 2. PAYMENT AND COMPENSATION The scope of services described in this amendment shall be performed for a not-to-exceed amount of$127,000. Invoicing shall be as referenced in the original agreement. Compensation Original Agreement $ 23,000 Amendment No. 1 $127,000 Total Revised Agreement $150,000 Table 1 Estimated Cost: Process Estimate Range Originally Proposed: Fire Prevention Division Inspections (night) $ 15,000 Permitting(new construction) 12,000 Code Compliance Division Complaints 12,000 Inspections 15,000 Violations/fines 14,000 Parking Enforcement Division Ticketing 10,000 Tows 12,000 Valet 10,000 Public Works Department Permitting 12,000 Planning Department Permitting 12,000 Concurrency/Impact fees 14,000 Special Master Process 14,000 Total Original Fees-Phase B $ 152,000 Discount on Originally Proposed Processes (25,000) Total Original Fees-After Discount $ 127,000 i i ATTACHMENT 4 DRAFT SCOPE OF SERVICES INSPECTOR GENERAL SERVICES PARTIES: City of Miami Beach Miami-Dade County, on behalf of the 14aml-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 tern Is determined and agreed upon by both Parties. TERMINATION: May be terminated for any reason, including oorwenienoe,:by either party by thirty(30) days'wrfen notice to the other party. SCOPE: The term`Irepedor Generaf'when standing alone herehvi er shall refer to the Inspector General for the City whose role is being fulfilled by the MDCOIG pursuant to the terms of this Agreernerrt. a. Subject to the limitations provided herein,the MDCOIG is aruthorbmd to serve as the Inspector General for the City during the loran of this Agreement. b. The o:pnbwdon and administration of the MDCOIG shall be sufticient}y independent to assure that no intefference or influence external to the MDCOIG adversely affects the Independence and objectivity of the Inspector C wal. I c. Thy MDWIG shall have the authority to make irwestigations of City programs, accounts, reoords, contracts and transactions as further set forth in this Agreement,and the power to review past,present and proposed City program, accounts, records, contracts and as further set forth In this Agneenw t. d. The MDCOIG "I halve the power to require reports and the production of rec" from the Mayor, Comrnd&sWn, City Manager,City officers and employees,rega ft any matter WWn the jurisdicdon of the MDCOIG.Any Nos or rqporls relating to litigation that ore subject to attorney-c!W or other privilege shall not be subjed to disclosure to the MDCOIG. e. The Inspector General shall be authorized to conduct any reviews, sudb. inspections, investigations or analyses relating to departments, oflioes, committees} activities, programs and age 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 eho be authertwd to conduct any reviews,-audits, kwpsckne or analyses relating do the operations of a cr divisions of the City with regu tory oversight of Y codes such as, but not limited to, fire, pert,Olanning and wing, building. property maintenance. noise, etc., and/or state or federal codes Including, but not limited to, date building and fire codes,federal ADA requirements,etc., induding reviews. of employee compliar=with estalfthed pades and/or standard operating procedures for their mplatory departments or divisions of the City. Such reviews,audits,thspections or analyses shall be In aaordance with any Collective Bargaining Rights, Personnel Rules, and other Federal and State guidelines regarding mVloyes 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 "if 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 erected officials* in order to ensure compliance with the CW9 established procurement procedures and any other State,County or City law or ordinance relating to procurement that is applicaVe to the City. i. Nobvffivtwdng the above, the MDCOIG "I have the power to review and Investigate any citizen's conVlaints regarding City projects. programs,contracts,transactions, and employee misconduct,including misconduct by employees involved in regulatory oversight ftroWna.Such rwlew and Invesfigadon shah be In aocorde with any Cofteodw BargalrM9 Rights, Personnel Rules, and other Federal and State guidelines regarding employee rights, The MDCOIG may exercise any of the responsibilities, functions and authorities contained In the Agreemerd upon his or her own initiative. k. The MDCOIG " be notified In writing prim to any meeting of an evaluation or negotiation commiltee where any Matter relating to the promwwt of goods or services by the City is to be discussed. Thy n*tIce required by We section shsffl be given to the MDCOIG as soon as possible after a nWWng has been mould, but In no event later than twvrdy-four hours prior to the sdmduled meeting; said notice may be provided via atectronic mall. The MDCOIG may, at his or her discretion, attend all duly noticed CRY oneels"i-sup r"nq to the procurement of goods or services as providecl herein,and may pose questions and raise W=W cones"t With the ft%tons,sub)orfty and powers of the Inspector General.An audio tope rwxrder shall be utilized to record all appkaWe evaluation and negotiation committee mieeft& The Wyor and Commission. City N*wpr, City Attorney. City's Inteml Audits and Weml Beach Police VAI cooperde wfth the MDCOIG to achieve the goals of prmnOng and detecting *aud, weds, financial m employee misconduct or adw abuses,and promoting accountablFfty,Integrity,economy,and efflcWxy In gammmont The MDCOIG will not,whenever possible,duplicate the work of the City's Internal Auditor,Miami Beach Police Dqwrbmd Internal Afts Division, Miami Beach Human Resources Department City Commilselon, CRY Msnager and City Attomey,or of to State Attorney's Office or MlamWade County Commission on Ethics.It Is understood, howsm,that to MDCOIG's audits,investigations,inspections and reVan may from time to tin* address the owe or shW Issues or acti1vides being reviewed by the aferementionsid entitles. In such cam the MOCOIG's audits, investigations,inspections and swiews wig be conducted separately and Independently from dMe entities, and upon conclusion, the MDCOIG, wham as OW, will refer the disposition or fin &m of any audit Investigation, Inspedlon or review to the appropriate City entity for any additionsi action. REPORTING: The.MDCOIG shall provide an annual report to the City an the prior year's actIvitles. STAFF&SUPPORT:All MDCOIG staff to remain aW of the MDCOIG City may assign City 9W to support MDCOIG City to provide office spew and office essentials(desks,phones.etc). FEES: Flat annual Re for service. Initial annual fee to be negotiated. SI ubsequent arvival budget request to be submitted and approved by the City as part of annual City Budget process, .......... ..........I.................... ATTACHMENT 5 Mum.Dp=Couwy Comwmonr 011 ftmcs&pimuc x May 2,2012 Mayor and City Commission Miami Beach City Hall 1700 Convention Curter Drive Miami Beach, FL 33199 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 Frost submits its proposal for a comprehensive ethics training program for regulatory employees. The attached program includes multiple session=s of intensive and interactive training for all employees and supervisors engaged in the areas of fire inspection, parking enfo=ement,buil&ag inspection,code enforcement,and planning,which comprises gpproximately 223 staffi 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. rely, , M. Centorino p TirecSv tor and general Counsel Miami-Dade Commission on Ethics and Public Trust ....tee...:._, ...,:<. .. .,:,.,:.:w..I.n::vt:s-c.•.:. ::ae. ;i 4 t t f i PROPOSAL FOR CITY OF MIAW BEACH ETHICS TRAINING The Mian&Dade Commission on Ethics and Public 'Trust submits the following pal for ethics training for 223 City of Miami Beach employees and supervisors t engaged in regulatory enforcement. This proposal is for an intensive training program to be completed within six months of implementation. Class size should not emceed 64. 1) Introduction to Ethics' Interactive LecturelDiscumion led by Ethic Commiimion personnel focusing on public service ethics, governmental orpsizational culture and professionalism.(1 hr) 2) Data kd presentation of Miami-Dade County and City of Miami Beach Code of Ethics requirements for public employees, e3mphasizing gift, contiict of interest, and exploitation provisions parficukrly relevant to regulatory personnel,illuatrated with case examples.(4 hre) 3) .Prewmft ion/Discussion of legal and administrative consequences of illogallunethical activity by public servants, including participation of a Mrmer City of Miami Beach official whose misvanduct led.to termination. (I hr) 4) Presentation on the law of Bribery, including a discussion of illustrative criminal cases from Miami-Dade County and elsewhere.(I hr) K) 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 by) 6) Interactive group discussion led by-Ethics Commission personnel based on 6 hypothetical scenarios directly relevant to issues confronting regulatory personnel.(2 bra) may 2.2012 i i 7) *Train the framer" program for supervisory level persoanel, addressing the need for an ongoing strategy n+ece8sary for building an ethical orgaairational culture. with umaigbt controls and in•serviice ethics training within their respective departments.(2 hre) 8) Private,oontdential we-on-one sessions to be conducted with all regulatory employes by Ethics Commission staff to discuss and address past and fa ft= ethical concerns raised by their personal and professional eaperienme, with an invitation for thus to suggest changes and/or huprovemente is the workplace that eacb employee bels Would lead to a stronger ethical,climate. (112 br each) 9) Final Report prepsred by Ethics Commasai,on staff s aII training sessions, with recammeadaxiooas for fallow-up traWing end for implementation of longrtem management strategies to prevent future comlptiom Cost Lstirmte:$45,000 FwposW 1 . for Cky cf Wami Bach Ethics Tmbbg 2 16►2.2012