2013-28314 Reso RESOLUTION NO.� 2013-28314
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH ACCEPTING THE RECOMMENDATION OF THE FINANCE
AND CITY WIDE PROJECTS COMMITTEE (FCWPC) REJECTING THE
PROPOSAL TO HIRE AN INSPECTOR GENERAL TO INVESTIGATE CLAIMS
OF FRAUDULENT ACTIVITY AND PERFORM OTHER INVESTIGATIVE
SERVICES AND RECOMMENDING THAT THE ADMINISTRATION DEVELOP
A REQUEST FOR PROPOSAL FOR A DEDICATED HOTLINE REPORTING
SERVICE CAPABLE OF PROVIDING A 24-HOUR CALL CENTER WITH A
TOLL-FREE NUMBER AND A CUSTOMIZED GREETING, NO CALL QUEUES,
STAFFED BY TRAINED CALL INTAKE PERSONNEL; ONLINE CASE
MANAGEMENT TO REPORT, TRACK AND ANALYZE CALLS, AN
IMMEDIATE 24-HOUR NOTIFICATION SERVICE FOR SEVERE/SENSITIVE
SITUATIONS AND'AN ONLINE WEB-BASED REPORTING MECHANISM FOR
EMPLOYEES; SUBJECT TO BUDGET APPROPRIATION.
WHEREAS, on April 11, 2012, five Code Compliance and two Fire Department
employees were arrested by the Federal Bureau of Investigations (FBI) on charges that
included conspiracy to commit extortion; and
WHEREAS, on December 12, 2012, the Commission approved an action plan to
address potential corruption and misconduct which, among other things, included
contracting with the Miami-Dade County Office of Inspector General (MDCOIG) for the
oversight and investigatory services the office provides; and
WHEREAS, on February 20, 2013, the MDCOIG informed the City it was unable
to provide such services to the City of Miami Beach due to current and foreseeable
workload commitments; and
WHEREAS, In light of the MDCOIG's unavailability, at the July 25, 2013, the
members of the FCWPC discussed three other options presented by staff: (1) hire an
inspector general for the City of Miami Beach; (2) issue a request for proposal to result in
a contract with a dedicated hotline reporting service, capable of providing a 24-hour toll-
free telephonic personal answering service and reporting and tracking compliance
concerns to enhance the Administration's ability to identify possible unethical, illegal or
questionable behavior; and/or (3) hire a compliance officer subject to budget
appropriation;
WHEREAS, at the July 25, 2013, the FCWPC recommended that the
administration issue an RFP for a dedicated hotline and hire a chief compliance officer
subject to budget appropriation; and
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that an RFP with all the
hotline characteristics approved by the FCWPC on July 23, 2013, incorporated herein by
reference, be issued and that the chief compliance officer will be responsible for the
ethics hotline, investigate complaints brought about from hotline reports or other
sources.
PASSED AND ADOPTED this /My day of September, 2013.
ATTEST BY: -
•�� I HERRERA BOWER, MAYOR
RA AEL E. GRANADO,
Y aCORP ORATEp= .
�'•• 4
TAAGENDA\2013\September 11\Compliance Officer-Hotline Resolution.docx
APPROVED AS TO
FORM & LANGUAGE
-FOR EXECUTION
6'C4*'
ttorn r Date
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Mayor and City Commission of the City of Miami Beach accepting the
recommendation of the Finance and Citywide Projects Committee (FCWPC) that the Administration
develop a request for proposal (RFP) for a complex and comprehensive dedicated hotline reporting
service, subject to budget appropriation.
Key Intended Outcome Supported:
Increase community satisfaction with City government; Expanding hours and services through E-
overnment; Enhance external/internal communications from and within the City
Item Summa /Recommendation:
On April 11, 2012, five Code Compliance and two Fire Department employees were arrested by the
Federal Bureau of Investigations (FBI) on charges that included conspiracy to commit extortion.
The City reached out to Miami-Dade County Inspector General for assistance; however, the
MDCOIG was unable to meet the City's needs.
At the July 25, 2013, the FCWPC discussed other options: (1) hire an inspector general for the City
of Miami Beach; (2) hotline and/or(3) hire a compliance officer subject to budget appropriation. The
Committee members rejected the first option and directed staff to pursue the second and third
options.
The hotline will provide an efficient and independent means of reporting and identifying concerns
regarding potential misconduct. The features of the proposed hotline will include: (1) 24/7/365 Call
Center; (2) Unique toll-free number with customized greeting; (3)No call queues ever used. Every
call answered by live operators; (4) Online case management for reporting, tracking and analysis; (5)
Immediate notification 24 hours-a-day for severe/sensitive situations; and (6) Online web-reporting
for employees.
The hotline will provide for the establishment of a reporting mechanism that affords employees,
residents and business owners with a means by which to voice their concerns on compliance and
other regulatory issues without fear of retribution.
As part of the FY 2013/14 Work Plan and Budget, it is proposed that Assistant City Manager, Joe
Jimenez, assume the role of chief compliance officer and will be responsible for the ethics hotline,
and follow up on investigations brought about from hotline reports or other sources.
Advisory Board Recommendation:
[-Finance and Citywide Project Committee recommended approval at the July 25, 2013, meeting.
Financial Information:
Source of Amount Account
Funds: 1 $70,000 011-031-000312 (subject to approval in Fiscal
Year 2013/2014 budget)
2
3
BPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Finance and Citywide Projects Committee
Sign-Offs:
Department Director Assis n City Manager City Manager
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AD NDA.ITEM C7
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MIAN� IBEACH
City of Miami Beath, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Mattie Herrera Bower and embers of e City Commission
FROM: Jimmy Morales, City Manager
DATE: September 11, 2013
SUBJECT: A RESOLUTION OF THE MAY RAND CITY COMMISSION OF THE CITY OF
MIAMI BEACH ACCEPTING THE RECOMMENDATION OF THE FINANCE AND
CITY WIDE PROJECTS COMMITTEE (FCWPC) REJECTING THE PROPOSAL
TO HIRE AN INSPECTOR GENERAL TO INVESTIGATE CLAIMS OF
FRAUDULENT ACTIVITY AND PERFORM OTHER INVESTIGATIVE SERVICES
AND RECOMMENDING THAT THE ADMINISTRATION DEVELOP A REQUEST
FOR PROPOSAL FOR A DEDICATED HOTLINE REPORTING SERVICE
CAPABLE OF PROVIDING A 24-HOUR CALL CENTER WITH A TOLL-FREE
NUMBER AND A CUSTOMIZED GREETING, NO CALL QUEUES, STAFFED BY
TRAINED CALL INTAKE PERSONNEL; ONLINE CASE MANAGEMENT TO
REPORT, TRACK AND ANALYZE CALLS, AN IMMEDIATE 24-HOUR
NOTIFICATION SERVICE FOR SEVERE/SENSITIVE SITUATIONS AND AN
ONLINE WEB-BASED REPORTING MECHANISM FOR EMPLOYEES;
SUBJECT TO BUDGET APPROPRIATION.
At the May 8, 2013, City Commissioners' meeting, Commissioner Michael Gongora referred the
subject issue to the Finance and Citywide Projects Committee (FCWPC).
BACKGROUND
On April 11,2012,five Code Compliance and two Fire Department employees were arrested by the
Federal Bureau of Investigations (FBI) on charges that included conspiracy to commit extortion.
Shortly after news of the arrests, the City reached out to Miami-Dade County Inspector General,
Christopher R. Mazzella, regarding the possibility of the MDCOIG providing the City with its services
to investigate and review allegations of waste, fraud, abuse, employee misconduct and
mismanagement.
On June 6, 2012, the subject issue was referred by the City Commission to the Neighborhood and
Community Affairs Committee for further discussion and the item was placed on the meeting
agenda for October 15, 2012, where discussion was deferred. On December 12, 2012, the
Commission approved an action plan to address potential corruption and misconduct which, among
other things, included contracting with the MDCOIG for the oversight and investigatory services the
office provides.
City Commission—September 11,2013
Compliance Officer
Page 2 of 4
The MDCOIG was created in 1998 by the Miami-Dade County Commission, through County
Ordinances, 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 the City. The Inspector General was receptive to such an
engagement and that meeting was the origin of a conceptual intergovernmental agreement
between the two parties.
To carry out its mission,the MDCOIG is empowered to require, and issue subpoenas if necessary,
the production of documents and records in the possession and control of the County. The
MDCOIG can also call for reports from any County official, County agency or instrumentalities
regarding any matter within 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 proposed agreement between the City and Miami-Dade County, on behalf of the MDCOIG,
would have authorized the MDCOIG to provide similar services to the City. Staff members from the
MDCOIG, City Administration and City Attorney's Office worked to craft an agreement setting forth
the powers and duties of the Inspector General in the City of Miami Beach.
The following generally describe the role of the Inspector General and the scope of services that
the agreement contemplated:
• The organization and administration of the MDCOIG would have been sufficiently independent
to assure that no interference or influence external to the MDCOIG adversely affected the
objectivity of the Inspector General. The Inspector General considered this an integral
component of any relationship with his office.
• The MDCOIG would have exercised 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 would have cooperated 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.
Under the terms of the agreement, the MDCOIG would have been 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 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;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
(including the operation of departments or divisions of the City with regulatory oversight of
City Commission—September 11,2013
Compliance Officer
Page 3 of 4
local/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," that would be operational throughout the duration of the
agreement, to accept calls from individuals reporting alleged fraud, waste, financial
mismanagement, employee misconduct or other abuses and for such hotline to be advertised by
the City.
The proposed agreement with the MDCOIG was intended,whenever possible, not to 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,the State
Attorney's Office or Miami-Dade County Commission on Ethics. The Inspector General, however,
advised the City Attorney of his unavailability to provide this support.
In light of the MDCOIG's unavailability, at the July 25, 2013,the members of the FCWPC discussed
other options resented b staff: 1 hire an inspector general for the City of Miami Beach; (2)issue
p p Y ( ) P 9 Y
a request for proposal to result in a contract with a dedicated hotline reporting service, capable of
providing a 24-hour toll-free telephonic personal answering service and reporting and tracking
P 9 p p 9
compliance concerns to enhance the Administration's ability to identify possible unethical, illegal or
questionable behavior; and/or (3) hire a compliance officer subject to budget appropriation. The
Committee members rejected the first option and directed staff to pursue the second and third
options.
ANALYSIS
The Administration thinks it is imperative that the City continue to pursue every effort to prevent and
detect fraud,waste,financial mismanagement,employee misconduct or other abuses. Employees,
residents and business owners alike need a venue through which to report conduct that is not
consistent with the integrity the City expects of public servants and,when doing so,those reporting
such activities, must feel confident that their calls and concerns will be properly investigated.
Equally, it is to the City's benefit to have a process through which to investigate reported fraud or
employee misconduct, such as concerns with the City's procurement and regulatory functions,
primarily as it relates to matters that do not rise to the level compelling the FBI's involvement.
The hotline will provide an efficient and independent means of reporting and identifying concerns
regarding potential misconduct. The features of the proposed hotline will 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,
• Immediate notification 24 hours-a-day for severe/sensitive situations; and
• Online web-reporting for employees.
The hotline will provide for the establishment of a reporting mechanism that affords employees,
residents and business owners with a means by which to voice their concerns on compliance and
City Commission—September 11,2013
Compliance Officer
Page 4 of 4
other regulatory issues without fear of retribution.
As part of the FY2013/14 Work Plan and Budget, it is proposed that Assistant City Manager, Joe
Jimenez, assume the responsibilities of a chief compliance officer and be responsible for the ethics
hotline, and follow up on investigations brought about from hotline reports or other sources.These
types of investigations are currently handled by the City's Human Resources Department, but they
take resources from other functional responsibilities and depending upon the nature of the
complaint frequently require assistance from law enforcement.
RECOMMENDATION
Based on the FCWPC recommendation, it is recommended that the Commission adopt the
resolution directing the Administration to develop an RFQ for a dedicated hotline reporting service
capable of providing a 24-hour call center, no call queues, staffed by trained call intake personnel;
online case management to report, track and analyze calls, and immediate 24-hour notification
service for severe/sensitive situations and an online web-based reporting mechanism for
employees.
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TAAGENDA\2013\September 11\Compliance Officer Memo.doc