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Resolution 2021-31600 { RESOLUTION NO. 2021-31600 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE it RECOMMENDATION OF THE COMMITTEE OF THE WHOLE RELATING TO THE ANNUAL PERFORMANCE EVALUATION OF RAUL J. AGUILA; o� AND, IN CONSIDERATION AND RECOGNITION OF RAUL J. AGUILA'S PERFORMANCE DURING THE CONTRACT YEAR MAY 16, 2019, THROUGH MAY 16, 2020,AND IN FURTHER CONSIDERATION OF THE CITY COMMISSION APPOINTING RAUL J. AGUILA AS THE INTERIM CITY MANAGER, AMENDING RAUL J. AGUILA'S EMPLOYMENT AGREEMENT BY: (1) PROVIDING (AND AS PERMITTED BY CITY CHARTER SECTION 3.01(g)), THAT.RAUL J. AGUILA WILL SERVE AS INTERIM CITY MANAGER AND EXERCISE ALL POWERS AND DUTIES OF THE CITY MANGER UNDER THE CITY CHARTER AND CITY CODE FUNCTION UNTIL JUNE 1, 2021, OR UPON COMMENCEMENT OF THE EMPLOYMENT TERM OF A NEW CITY MANAGER, WHICHEVER IS EARLIER; (2) RAUL J. AGUILA SHALL, DURING HIS PERIOD OF SERVICE AS INTERIM CITY MANAGER, DIVEST HIMSELF OF ALL RESPONSIBILITY FOR THE MANAGEMENT, DECISION MAKING, POWERS AND DUTIES OF THE CITY ATTORNEY UNDER THE CITY CHARTER AND CITY CODE; (3) RAUL J. AGUILA SHALL AUTOMATICALLY, AND WITH NO FURTHER COMMISSION ACTION NECESSARY, RESUME HIS POSITION AS CITY ATTORNEY ON THE EARLIER OF JUNE 2, 2021 OR UPON THE COMMENCEMENT OF THE EMPLOYMENT TERM OF A NEW CITY MANAGER; (4) PROVIDING A MERIT INCREASE AND COMMENSURATE SALARY ADJUSTMENT OF 2%,WHICH SHALL BE RETROACTIVE TO MAY 16, 2020, AND A COST OF LIVING ADJUSTMENT FOR FY20121 IN THE AMOUNT OF 1%, IF PROVIDED TO GENERAL UNCLASSIFIED EMPLOYEES; (5) AMENDING THE CAP ON ACCRUED ANNUAL LEAVE FROM 500 HOURS TO 650 HOURS, EFFECTIVE IMMEDIATELY; AND (6) ADJUSTING RAUL J. AGUILA'S IRA CONTRIBUTION FROM $6,700 TO $7,000(THE MAXIMUM ALLOWABLE BY LAW FOR 2020)AND HIS 401 CONTRIBUTION FROM $24,000 TO $26,000 (THE MAXIMUM ALLOWABLE BY LAW FOR 2020). WHEREAS, at its meeting on April 9, 2014, the Mayor and City Commission unanimously approved Resolution No. 2014-28540, appointing Raul J. Aguila to the position of City Attorney of the City of Miami Beach, effective May 16, 2014; and WHEREAS, Mr. Aguila's engagement is reflected in an Employment Agreement, dated July 24, 2014, and unanimously approved by the City Commission pursuant to Resolution No. 2014-28692 (the Employment Agreement); and Page 1124 of 1252 WHEREAS, on May 15, 2015 Mr. Aguila's contract was further amended pursuant to Resolution No. 2015-29186; and; ii WHEREAS, on July 7, 2016 Mr. Aguila's contract was further amended pursuant to Resolution No. 2016-29514;and; WHEREAS, on July 26, 2017 Mr. Aguila's contract was further amended pursuant to Resolution No. 2017-29959; and; WHEREAS, on July 17, 2018 Mr. Aguila's contract was further amended pursuant to Resolution No. 2018-30383; and; WHEREAS, on September 11, 2019 Mr. Aguila's contract was further amended pursuant to Resolution No. 2019-30991; and; WHEREAS, on October 7, 2020, City Manager Jimmy Morales, submitted his letter of resignation to the Mayor and City Commission; and WHEREAS, subsequently, Mr. Morales advised the City Commission that his last day as the City Manager would be December 11, 2020; and WHEREAS, immediately following Mr. Morales' resignation, the City Commission initiated the recruitment process for the selection of a permanent City Manager, while also recognizing the need to appoint an Interim City Manager during the course of the selection process; and WHEREAS, in view of the strong internal candidates for the permanent City Manager position, the City Commission determined that it would be unfair to appoint any internal candidate interesting in the permanent position to serve as Interim City Manager, as the City Commission desired not to provide any undue advantage to any one candidate over others; and WHEREAS, based on the City Commission's desire to level the playing field for the recruitment process for the permanent City Manager position, the City Commission determined that it would only appoint an Interim City Manager who would pledge and commit to not apply for the permanent position; and WHEREAS, five extremely talented and capable internal candidates indicated their interest to serve as Interim City Manager until a permanent City Manager is appointed; and WHEREAS, among those candidates was Raul J. Aguila, the then City Attorney; and WHEREAS, Mr. Aguila is a dedicated public servant with twenty-nine (29) years in municipal public service - he served in the City Attorney's Office for Miami Page 1125 of 1252 Beach for twenty-three (23) years as either a First Assistant City Attorney or Chief Deputy City Attorney, before being unanimously appointed by the City Commission to serve as the City Attorney in 2014 (on February 1, 2021, he started his 29th year with the City); and WHEREAS, Mr. Aguila's tenure as the City Attorney will end in March 2022, both as a matter of his employment contract, and the requirements of the City's Deferred Retirement Option Program ("DROP"); and WHEREAS, Mr. Aguila, in addition to being an exceptional chief legal officer for the City, is familiar with the workings of every City department and possesses the institutional history and intimate knowledge of the City's business and the policy objectives the City Commission desires to achieve; and WHEREAS, when Mr. Aguila advised the Mayor, the City Commissioners, and the City Clerk of his interest in the position as Interim City Manager, he advised that he would only accept the position if the ultimate vote of the City Commission to appoint him as Interim City Manager was unanimous; and, further, that once the permanent new City Manager was appointed, that he be allowed to return to his permanent position as City Attorney, until the end of his tenure in March 2022; and WHEREAS, on December 9, 2020, the City Commission unanimously appointed Raul J. Aguila as the Interim City Manager until the term of a new City Manager commenced; and WHEREAS, Raul J. Aguila's Employment Agreement provides for an annual performance review and evaluation of the City Attorney, at which time the City Commission shall review the annual salary and/or other benefits of the City Attorney, and shall make adjustments in such amounts and to such extent as the City Commission may determine it is desirable to do so; and WHEREAS, the Employment Agreement further provides that an annual salary review of the City Attorney will be made every year within thirty (30) days after May 1St of each Contract year; and WHEREAS, in prior years, the City's informal policy has been to refer the evaluation for the performance of the constitutional officers to the Finance and Economic Resiliency Committee ("FERC"), where the Chair of the Committee was instructed to meet separately with each constitutional officer with regard to their performance and, in particular, any proposed contract changes the officer was proposing to their employment contract, and the FERC Chair would then give a recommendation at the Committee of the Whole meeting, which would then conduct its own evaluation; engage in discussion; ask questions; make comments; and formally move any proposed action; and i1 Page 1126 of 1252 WHEREAS, this year, in no small part due to the COVID-19 pandemic - which necessitated in other matters taking priority on Commission agendas and Commissioners' schedules - the FERC Chair, Commissioner Ricky Arriola, requested that the evaluations be done directly at a Committee of the Whole meeting; and WHEREAS, on January 27, 2021, the Committee of the Whole met, and ;l discussed the annual performance evaluation and salary/benefits review of the now Interim City Manager; and WHEREAS, in consideration and recognition of the Interim City Manager's j performance for Contract Year May 16, 2019 through May 16, 2020, and in further of consideration of the Mayor and City Commission appointment of Raul J. Aguila as Interim City Manager, the Mayor and City Commission hereby deem that it is in the best interest of the City to approve an amendment to Raul J. Aguila's Employment Agreement, all as further set forth below. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH FLORIDA, that, in consideration and 'I recognition of Raul J. Aguila's exemplary performance during Contract Year May 16, (I 2019, through May 16, 2020, and in further consideration of the City Commission appointing Raul J. Aguila as the Interim City Manager, the Mayor and City Commission hereby approve the following amendments to Raul J. Aguila's Employment Agreement: 1. MERIT INCREASE Annual Present Base Salary: $314,908.70 + 2% Salary Increase': $6,298.17 New Base Salary: $321,206.87 2. INTERIM CITY MANAGER Serve as Interim City Manager and exercise all powers and duties of the City Manager under the City Charter and City Code function until June 1, 2021, or upon commencement of the employment term of new City Manager,whichever is earlier; divest himself, during his period of service as Interim City Manager, of all r; responsibility for the management, decision-making, powers and duties of the City Attorney under the City Charter and City Code; and automatically resume his position as City Attorney on June 2, 2021, or upon commencement of employment $, term of new City Manager, whichever is earlier, without any City Commission action necessary. 1 Because Mr. Aguila's merit raises have been traditionally conducted following his contract anniversary dates,the merit increase shall be retroactive to May 16, 2020. Page 1127 of 1252 3. ACCRUED ANNUAL LEAVE Increase cap on accrued annual leave, from maximum of 500 hours, to maximum P of 650 hours, effective upon adoption of this Resolution. 4. FY 2021 COLA Raul J. Aguila shall be entitled to any COLA provided to unclassified employees in FY 20/21. to 5. CITY'S IRA AND 457 CONTRIBUTIONS In accordance with the maximum allowable contribution afforded by the IRS for 'I 2020, the City's contribution to Mr. Aguila's IRA shall increase from $6,700 to $7,000; and the City's contribution to Mr. Aguila's 457 account, shall be increased .1 from $24,000 to $26,000. li PASSED and ADOPTED this /0 day of l r I Ptgfy , 2021. r� Dan Gelber, Mayor ATTEST,:y 2./22!292( E. Granado/Ci G�lerk Rafael ty 1 "�1j11 APPROVED AS TO FORM&LANGUAGE If1CORP60RATED 8 FOR EXECUTION ApicH 26 c - _ ,„„,,,,,,,,,,,,, City Niamey Oak t Page 1128 of 1252 New Business and Commission Requests -R9 D MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Office of the Mayor and Commission DATE: February 10, 2021 12:00 p.m. SUBJECT:COMMITTEE OF THE WHOLE MEETING TO DISCUSS THE ANNUAL PERFORMANCE EVALUATIONS OF THE INTERIM CITY MANAGER, ACTING CITY ATTORNEY, CITY CLERK, AND INSPECTOR GENERAL, AND POTENTIAL CONTRACT AMENDMENTS. ANALYSIS To participate or provide comments during the Committee of the Whole, the public may join the webinar at: https://miamibeachfl-gov.zoom.us/j/87638488184 or via telephone at: 1.312.626.6799 (U.S.) or 877.853.5257 (Toll Free). Webinar ID: 876 3848 8184. Members of the public wanting to speak on this item must click the "raise hand" icon if using the Zoom app or press ''9 on the telephone to raise their hand. SUPPORTING SURVEY DATA N/A Applicable Area Not Applicable Is this a "Residents Right Does this item utilize G.Q. to Know" item. pursuant to Bond Funds? City Code Section 2-14? No No Legislative Tracking Office of the Mayor and Commission ATTACHMENTS: Description o Charter Officers Memo ❑ Exhibit A- Summary of Requested Adjustments In Exhibit B - December 9, 2020 Resolution Appointing Interim City Manager&Acting City Attorney ❑ Exhibit C - Reso Aguila Contract Amendment Page 1115 of 1252 ❑ Exhibit D -- Reso Granado Contract Amendment ❑ Exhibit E — Paz Proposed Contract ❑ Exhibit F --2012 Kathie Brooks Interim City Manager Contract ❑ Exhibit G - OIG Annual Report 2020 ❑ Exhibit H - Rafael E. Granado- Significant Accomplishments Page 1116 of 1252 "\ 6 A 1 f t `` p irk; TA COMMISSION MEMORANDUM TO: Mayor Dan Gelber and Members of the City Commission FROM: Raul J. Aguila, Interim City Manager Rafael E. Granado, City Clerk Rafael Paz, Acting City Attorney Joseph Centorino, Inspector General DATE: February 10, 2021 SUBJECT: COMMITTEE OF THE WHOLE MEETING TO DISCUSS THE ANNUAL PERFORMANCE EVALUATIONS OF THE INTERIM CITY MANAGER, ACTING CITY ATTORNEY, CITY CLERK, AND INSPECTOR GENERAL, AND POTENTIAL CONTRACT AMENDMENTS. The following Memorandum is prepared by the City's constitutional officers in anticipation of the Committee of the Whole Meeting, currently scheduled for February 10,2021. The purpose of this meeting is for the Mayor and City Commission to review the annual performance, of the above constitutional officers and, in conjunction therewith, consider the attached requested amendments to their contracts; and, in the case of Acting City Attorney Paz, to consider an employment contract during his tenure as an acting constitutional officer (as has been the previous custom in the City). Under the existing constitutional officers' employment contracts (i.e. Aguila, Granado, and Centorino), those contracts state that the City Commission shall conduct an annual performance evaluation (including salary and benefits review) on an annual basis, within thirty (30) days of the anniversary date of the respective employee's contract. At such time, the City Commission shall review the annual salary and/or benefits of the employee, and shall make adjustments in such amounts and to such extent as the City Commission may determine that it is desirable to do so. It is also the time when the Mayor and City Commission shall provide the respective constitutional officer with their individual input regarding their performance and allow for discussion of same between the Commission and the employee/officer. In prior years, the City's informal policy has been to refer the evaluation for the performance of the constitutional officers to the Finance and Economic Resiliency Committee,where the Chair of the Committee was instructed to meet separately with each constitutional officer with regard to their performance and, in particular, any proposed contract changes the officer was proposing to their employment contract (including merit increase, COLA, extension, etc.). The FERC Chair would then give a recommendation at the Committee of the Whole meeting,which would then conduct its own evaluation; engage in discussion; ask questions; make comments; and formally move any proposed action. Page 1117 of 1252 Commission Memorandum February 10, 2021 Page 2 This year, in no small part due to the COVID-19 pandemic-which necessitated in other matters taking priority on Commission agendas and Commissioners' schedules - the FERC Chair, Commissioner Ricky Arriola, requested that the evaluations be done directly at a Committee of the Whole meeting. Commissioner Arriola originally made his request to convene the Committee on or about June 24, 2020, but the item was continuously deferred until now. In the interim, former City Manager Jimmy L. Morales is no longer with the City; City Attorney Raul J. Aguila was appointed as Interim City Manager on December 9, 2020; and (also on December 9, 2020) Deputy City Attorney Rafael Paz was appointed as Acting City Attorney. Additionally, this will also be the first annual evaluation for the Inspector General Centorino, whose employment contract commenced on November 1, 2019. Finally, having outlined the process and why it was justifiably delayed this year, we are attaching Exhibit"A"to the Memorandum,which-like in past years-outlines what each Charter officer is respectfully requesting. In addition, the December 9, 2020 Resolution approving the interim appointment of the City Manager and City Attorney is attached as Exhibit"B." The proposed Resolution approving the contract amendments for the Interim City Manager and City Clerk are attached hereto as Exhibits "C" and "D," respectively. The proposed employment agreement for the Acting City Attorney is attached as Exhibit "E." The proposed contract was based on the very similar terms of the 2012 employment agreement for Kathie Brooks, during her period of service as Interim City Manager in 2012. For ease of reference, Ms. Brooks' 2012 employment agreement is attached hereto as Exhibit F. As required by the enabling legislation establishing the OIG, the Inspector General has also included his Office's annual report. See Exhibit"G."As he has done in previous years as well, the City Clerk has also provided his annual report. See Exhibit"H." Thank you for your consideration. On behalf of all of us, it is a continued honor and a privilege to be able to serve the Mayor and City Commission, as well as the citizens of our unique and wonderful Miami Beach. Attachments: Exhibit A—Summary of Requested Adjustments Exhibit B—December 9, 2020 Resolution Appointing Interim City Manager&Acting City Attorney Exhibit C—Reso Aguila Contract Amendment Exhibit D—Reso Granado Contract Amendment Exhibit E—Paz Proposed Contract Exhibit F—2012 Kathie Brooks Interim City Manager Contract Exhibit G—OIG -Annual Report 2020 Exhibit H—Rafael E. Granado -Significant Accomplishments Page 1118 of 1252 EXHIBIT "A" Summary of Requested Adjustments INTERIM CITY MANAGER RAUL AGUILA The Interim City Manager requests that the City Commission consider the following proposed changes to the terms of his employment contract: • Contract amendment to formalize that Aguila will: o Serve as Interim City Manager and exercise all powers and duties of the City Manager under the City Charter and City Code function until June 1, 2021, or upon commencement of employment term of new City Manager, whichever is earlier; o divest himself, during his period of service as Interim City Manager, of all responsibility for the management, decision-making, powers and duties of the City Attorney under the City Charter and City Code; o automatically resume his position as City Attorney on June 2, 2021, or upon commencement of employment term of new City Manager, whichever is earlier, without any City Commission action necessary • 2% salary adjustment, plus any COLA provided to unclassified employees in FY 20/21, if any • Increase cap on accrued annual leave, from maximum of 500 hours to maximum of 650 hours • Increase 401K and IRA contributions to the maximum allowable amount for 2020 (see attached resolution) CITY CLERK RAFAEL E. GRANADO The City Clerk requests that the City Commission consider the following proposed changes to the terms of his employment contract: • Extension of term for a period of one year • Change the retirement benefit multiplier from 3% to 4%, which is equivalent to what the other two Charter Officers who sit on the dais receive. • Increase cap on accrued annual leave, from 500 hours to 650 hours • Any cost of living adjustment for FY 20/21, if provided to general unclassified employees of the City ACTING CITY ATTORNEY RAFAEL PAZ The Acting City Attorney does not currently have an employment contract. For the last decade, if not longer, all the City's Charter officers have had employment contracts. In addition, the City Page 1119 of 1252 has previously extended an employment contract to Charter officers serving in an interim role (such as the last Interim City Manager, Kathie Brooks). Based on the above, Acting City Attorney Paz requests the following: • An employment contract to cover Paz's period of service as Acting City Attorney, to formalize Paz's performance of all functions of the City Attorney under the City Charter and City Code. The contract, along with the amendment to Mr. Aguila's contract, will formalize the separation of Charter functions between the Interim City Manager and Acting City Attorney. • The contract would provide that upon appointment of new City Manager, and Mr. Aguila's returning as City Attorney, Paz would automatically resume his role as Deputy City Attorney, without any City Commission action necessary • Temporary"out-of-class" adjustment for period of service of 4%, plus any cost of living adjustment provided in FY20/21 to general unclassified employees, if any o By way of reference, employees promoted to interim Department Directors have received a 10% adjustment during period of service as interim department heads o With the proposed temporary 4% adjustment, the Acting City Attorney's salary would still be less than the salary for any Assistant City Manager. INSPECTOR GENERAL JOSEPH CENTORINO The.Inspector General is not requesting any changes. If a cost of living adjustment for FY 20/21, is provided to general unclassified employees of the City, Mr. Centorino leaves it to the City Commission to determine whether to extend the COLA to him. 2 Page 1120 of 1252 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPOINTING CITY ATTORNEY RAUL J. AGUILA AS INTERIM CITY MANAGER UNTIL SUCH TIME AS THE CITY COMMISSION APPOINTS A PERMANENT CITY MANAGER AND THE NEW CITY MANAGER COMMENCES THEIR TERM OF EMPLOYMENT, WITH THE UNDERSTANDING THAT: (1) MR. AGUILA WILL RETURN TO HIS PERMANENT POSITION AS THE CITY ATTORNEY ONCE THE PERMANENT CITY MANAGER'S EMPLOYMENT TERM COMMENCES, AND (2) THE INTERIM CITY MANAGER WILL NOT MAKE ANY SIGNIFICANT PERSONNEL CHANGES AMONG EXECUTIVE ADMINISTRATIVE STAFF WITHOUT PRIOR CONSULTATION WITH THE MAYOR AND CITY COMMISSION; AND ALSO, APPOINTING DEPUTY CITY ATTORNEY RAFAEL PAZ AS THE ACTING CITY ATTORNEY DURING MR. AGUILA'S PERIOD OF SERVICE AS INTERIM CITY MANAGER, WITH THE UNDERSTANDING THAT MR. PAZ WILL RETURN TO HIS POSITION AS DEPUTY CITY ATTORNEY ONCE MR. AGUILA RETURNS TO HIS PERMANENT POSITION AS CITY ATTORNEY. WHEREAS, on October 7, 2020, City Manager Jimmy Morales, submitted his letter of resignation to the Mayor and City Commission; and WHEREAS, subsequently, Mr. Morales advised the City Commission that his last day as the City Manager would be December 11, 2020; and WHEREAS, immediately following Mr. Morales' resignation, the City Commission initiated the recruitment process for the selection of a permanent City Manager, while also recognizing the need to appoint an Interim City Manager during the course of the selection process; and WHEREAS, in view of the strong internal candidates for the permanent City Manager position, the City Commission determined that it would be unfair to appoint any internal candidate interesting in the permanent position to serve as Interim City Manager, as the City Commission desired not to provide any undue advantage to any one candidate over others; and WHEREAS, based on the City Commission's desire to level the playing field for the recruitment process for the permanent City Manager position, the City Commission determined that it would only appoint an Interim City Manager who would pledge and commit to not apply for the permanent position; and Page 1121 of 1252 WHEREAS, five extremely talented and capable internal candidates indicated their interest to serve as Interim City Manager until a permanent City Manager is appointed; and WHEREAS, among those candidates was Raul J. Aguila, the City's current City Attorney; and WHEREAS, Mr. Aguila is a dedicated public servant with twenty-nine (29) years in public service — he served in the City Attorney's Office for Miami Beach for twenty-three (23) years as either a First Assistant City Attorney or Chief Deputy City Attorney, before being unanimously appointed by the City Commission to serve as the City Attorney in 2014; and WHEREAS, Mr. Aguila's tenure as the City Attorney will end in March 2022, both as a matter of his employment contract, and the requirements of the City's Deferred Retirement Option Program ("DROP"); and WHEREAS, Mr. Aguila, in addition to being an exceptional chief legal officer for the City, is familiar with the workings of every City department and possesses the institutional history and intimate knowledge of the City's business and the policy objectives the City Commission desires to achieve; and WHEREAS, when Mr. Aguila advised the Mayor, the City Commissioners, and the City Clerk of his interest in the position as Interim City Manager; he advised that he would only accept the position if the ultimate vote of the City Commission to appoint him as Interim City Manager was unanimous, and,further,that once the permanent City Manager is appointed, he be allowed to return to his permanent position as City Attorney, until the end of his tenure in March 2022; and WHEREAS, by virtue of the City Commission appointing Mr. Aguila as the Interim City Manager, there must be an Acting City Attorney during Mr. Aguila's period of service as the Interim City Manager; and WHEREAS, at the December 9, 2020 City Commission meeting, Commissioner Michael Gongora made a motion to appoint Mr. Aguila as the City's Interim City Manager, and to appoint Deputy City Attorney Rafael Paz as the Acting City Attorney; and WHEREAS, as part of the motion to appoint Mr. Aguila, the City Commission directed that the Interim City Manager not make any personal changes among executive in the City administration staff without prior consultation with the Mayor and City Commission; and 2 Page 1122 of 1252 WHEREAS, once the appointments begin,the Interim City Manager and the Acting City Attorney will report directly to the City Commission, with the Interim City Manager exercising all powers of the City Manager, as chief executive officer for the City, under the City Charter and City Code; and the Acting City Attorney exercising all of the powers and duties of the City Attorney, as chief legal officer for the City, under the City Charter and City Code; and WHEREAS, Commissioner Michael Gongora's motion was seconded by Commissioner David Richardson, and the motion passed unanimously. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and the City Commission hereby appoint City Attorney Raul J. Aguila as Interim City Manager until such time as the City Commission appoints a permanent City Manager and the new City Manager commences their term of employment, with the understanding that: (1) Mr. Aguila will return to his permanent position as the City Attorney once the permanent City Manager's employment term commences; and (2)the Interim.City Manager will not make any significant personnel changes among executive administrative staff without prior consultation with the Mayor and City Commission; and also, appointing Deputy City Attorney Rafael Paz as the Acting City Attorney during Mr. Aguila's period of service as Interim City Manager, with the understanding that Mr. Paz will return to his position as Deputy City Attorney once Mr. Aguila returns to his position as City Attorney. PASSED and ADOPTED this day of , 2021. Dan Gelber, Mayor ATTEST: Rafael E. Granado, City Clerk APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 9814-17 (f0. -- 01)(Cl)ZDL1 4{\ City Attorney pato J. c 3 Page 1123 of 1252 EMPLOYMENT AGREEMENT THIS EMPLOYMENT AGREEMENT (the "Agreement") is entered into this day of , 2021, by, and between Rafael A. Paz("Paz")and the CITY OF MIAMI BEACH, FLORIDA (the "City")(each, a "Party" and collectively, the "Parties"). WHEREAS, on December 9, 2020, the Mayor and City Commission appointed PAZ as Acting City Attorney of the City of Miami Beach during City Attorney Raul Aguila's period of service as Interim City Manager, effective December 12, 2020; and WHEREAS, on February 10, 2021, at a Committee of the Whole meeting, the Mayor and City Commission approved the execution of this Agreement. NOW, THEREFORE, the Parties agree as follows: 1. Recitations. Parties agree that the recitations above are true and correct and are incorporated as if fully set forth here. 2. Employment and Duties.The City hereby agrees to engage PAZ, and PAZ agrees to be engaged, as Acting City Attorney for the City of Miami Beach. PAZ shall devote his full working time to his duties as Acting City Attorney, and shall perform all duties and responsibilities of the City Attorney as set forth in the Charter of the City of Miami Beach, Florida, and in the Code of the City of Miami Beach, Florida, and all such duties customary and appropriate to this position of Acting City Attorney and such other appropriate duties as may be assigned by the City Commission or its designee from time to time. a. PAZ will not accept or perform any other employment, paid or unpaid, while he is employed as Acting City Attorney,except as expressly set forth herein or expressly agreed to by the City Commission by resolution and modification of this Agreement according to its terms. b. However, nothing in this Agreement shall prohibit PAZ from occasional other work, such as teaching,writing, community activities, pro bono work,or civic or charitable activities as is appropriate to this position of Acting City Attorney, provided, however, that such work shall not interfere with PAZ's duties as Acting City Attorney and shall not in any way reflect unfavorably on the City. c. PAZ shall at all times apply his best efforts to the performance of his duties as Acting City Attorney. 3. Employment at Will. PAZ is employed at will and serves at the pleasure of the City Commission. This Agreement and Paz's employment may be terminated by the City Commission at any time and for any reason or for no reason,subject only to the express Termination provisions of this Agreement. 4. Effective Date. This Agreement shall become effective as of December 12, 2019 (the"Effective Date"). 1 Page 1132 of 1252 5. Term. The term of this Agreement shall be deemed to have commenced retroactively as of December 12, 2020(Commencement Date), and shall expire on June 1, 2021, unless otherwise extended by the City Commission at its sole option, or terminated earlier in accordance with the Termination provisions set forth herein. a. Upon the City's engagement of a permanent City Manager and Raul Aguila's return to his position as City Attorney, this Agreement shall automatically expire and PAZ shall revert to his position as Deputy City Attorney, provided, however, that if Paz is terminated or demoted to a lesser position within a period of 120 days from his return to his position as Deputy City Attorney, then Paz shall be entitled to the Severance Payment described in Section 8(a). b. Upon reverting to the position of Deputy City Attorney, any salary adjustment provided to PAZ under this Agreement shall automatically expire, and PAZ's base salary will be adjusted downward to an amount equal to Paz's base salary as Deputy City Attorney as of December 11, 2021. c. In addition to the automatic termination of this Agreement pursuant to Section 5(a), the City Commission may also terminate this Agreement, at any time, without cause and for convenience, upon fifteen (15) days prior written notice to PAZ, as provided in Section 8(a) of this Agreement. The City Commission may also terminate this Agreement, and PAZ's employment with the City, for "Cause," as provided in Section 8(b) of this Agreement. 6. Compensation. PAZ shall receive compensation for performing the duties of Acting City Attorney as set forth in this Section 6. Nothing other than those items set forth in this Section 6 shall be considered or treated as compensation, wages, salary, earnings or remuneration to PAZ for any purpose whatsoever, including pension or for purposes of Section 448.08, Florida Statutes, or in arbitration. a. Salary. The City shall pay PAZ the base salary PAZ earned as Deputy City Attorney as of December 11, 2020, plus an adjustment of % during the term of this Agreement, to be earned and to be accrued bi-weekly, and any cost-of-living adjustment in FY20/21, if any such adjustment is provided to general unclassified employees of the City. This salary shall be paid bi-weekly according to the usual payroll practices of the City applicable to unclassified general employees. b. Employee Benefits. The Parties agree and acknowledge that PAZ shall be entitled to and shall continue to receive the same employee benefits which PAZ earned as Deputy City Attorney as of December 11, 2020, including, without limitation, the City-offered group medical, dental and life insurance benefits; annual leave, holidays and sick leave; vehicle allowance; mobile telephone allowance; payment of any professional bar dues or professional development expenses, in the same manner as generally made available to attorneys in the Office of the City Attorney; and any other fringe benefits available to any other general unclassified employee of the City. c. Other terms and conditions. The City Commission shall fix any such other terms and conditions of employment, as it may reasonably determine from time to time during the Term, provided such terms or conditions do not conflict with the City Charter or any other law, or do not reduce the salary and benefits provided in this 2 Page 1133 of 1252 Section 6 of this Agreement, except to the degree of a reduction (or reductions) in salaries and/or benefits which are made across-the-board for, and apply to, all general unclassified employees of the City. 7. Termination by PAZ. In the event PAZ voluntary resigns his position with the City prior to the expiration or earlier termination of this Agreement, PAZ shall give the City Commission at least thirty(30)days prior written notice, and the City shall have no obligation to pay, and PAZ shall have no right to collect, the Severance Payment under this Agreement, unless the Parties otherwise agree. 8. Termination by the City. In addition to the automatic termination of this Agreement upon the engagement of a new City Manager as provided in Section 5(a), the City Commission may terminate this Agreement and, thereby, PAZ's employment, at any time, with or without notice, and for any reason or for no reason. a. Without Cause. Should the City Commission terminate this Agreement without Cause, it shall pay PAZ an amount equivalent to 20 weeks of the salary amount set forth in Section 6(a) (the Severance Payment"), along with all payments due for work performed through the date of termination and other payments due, if any, upon termination on the same terms and conditions applicable to unclassified general employees and shall have no further liability to him whatsoever. b. With Cause. Should the City terminate this Agreement with Cause, as herein defined, the City shall pay PAZ any payments due for work performed through the date of termination and other payments due, if any, upon termination on the same terms and conditions applicable to unclassified general employees and the City shall have no further liability to him whatsoever, including no obligation to pay the Severance Payment as defined in Section 8(a). "Cause" is defined as one or more of the following: material breach of this Agreement; conviction of any felony; admission of conduct that would constitute any felony; conduct that would constitute a violation of any applicable code of ethics or professional conduct; conduct that would constitute malfeasance or misfeasance in office as those terms are interpreted under Section 112.3187, Florida Statutes; or other similar conduct that the City Commission reasonably determines merits termination. 9. Pension. PAZ shall continue his participation as a member of the Miami Beach Employees Retirement Plan pursuant to the governing ordinance of the plan (which plan, at the time of the execution of this Agreement, includes an accrual factor of 4 percent for PAZ's period of service in the position of City Attorney). 10. Indemnification. The City shall indemnify and defend PAZ or, at its option, provide a defense to PAZ against claims arising out of and in the course and scope of his employment or function, consistent with and to the extent of Florida law under Chapter 111, Florida Statutes, and a public official's right to a defense against claims arising from their performance of their public duties performed while serving a public purpose under the common law of Florida. 11. Notice. Any notice hereunder shall be effective if made by delivery, postage paid, to the United States Postal Service or by a manner valid for personal service under the Florida Rules of Civil Procedure or by public statement on the record during a meeting of the City Commission in the presence of the party to whom notice is to be given. Notice, for purposes of this Agreement, is to be given to: 3 Page 1134 of 1252 City: Mayor Dan Gelber(or successor) City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 and Interim City Manager Raul Aguila (or successor) City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 PAZ: Rafael A. Paz [Address exempt from public disclosure under Fla. Law] 12. No Assignment or Delegation; No Third-Party Beneficiaries. The services provided by PAZ are considered unique and personal to him.Accordingly, PAZ may not delegate or assign any duty, obligation, or benefit attaching or accruing hereunder. This Agreement is entered into and intended for the benefit solely of the City and of PAZ and not for the benefit of any other person or entity. 13. Entire Agreement, Severability, Modification, Waiver. The provisions of this Agreement constitute the entire agreement between the Parties on its subject matter and this Agreement supersedes any other agreement, understanding, representation, or promise whatsoever. PAZ agrees that he has relied solely upon the express language of this Agreement in determining whether to enter into this Agreement and not upon any other understanding or communication of any kind, whether written or oral. Should a court or arbitrator of competent jurisdiction determine that any provision or portion thereof of this Agreement is illegal, invalid, or unenforceable, the remaining provisions or portions thereof shall remain in full force and effect. This Agreement may be modified only by a writing signed by both Parties and approved by the City Commission by resolution. Waiver of any right or of any breach of this Agreement by either party in any instance or instances shall not constitute or be construed as a waiver in any other instance. 14. Construction, Governing Law, Headings. This Agreement shall be construed according to its express language and not strictly for or against either Party, regardless of authorship.This Agreement shall be governed by and according to the laws of the State of Florida. Section headings are for convenience only and shall have no legal effect. 15. Arbitration. The. Parties agree that any claim or dispute arising from this Agreement, its interpretation, its renewal or its breach shall be settled in final and binding arbitration by a single arbitrator under the Arbitration Policies and Procedures of the Federal Mediation and Conciliation Service. A panel of arbitrators may be requested by either Party and the Parties will select an arbitrator by alternative strikes.The first Party to strike will be determined by agreement or coin flip. Each Party may one-time reject a proposed panel of arbitrators and request another. The party requesting any panel shall bear the expense of the request. The Parties shall bear equally the expense of the arbitrator and the location of the arbitration hearing. The Parties shall each bear their own litigation costs,including attorney's fees, court reporter fees, and witness fees, if any. The arbitrator shall apply a preponderance of the evidence standard of proof. The party asserting a claim or affirmative defense shall have the burden of persuasion as to that claim or affirmative defense. The arbitrator shall not have authority to make any award of 4 Page 1135 of 1252 attorney's fees or the costs of the arbitration. The arbitrator shall confine himself or herself strictly to the language of this Agreement and shall have no authority to add to, subtract from, or modify any term or provision of this Agreement. The arbitrator shall have no authority to construe any law, regulation, rule, principle of law, decision, or provision or provisions of this Agreement or to make any award that would result in or obligate the City, directly or indirectly, to incur any debt, cost, expense, or liability in excess of the amount initially budgeted, approved, and appropriated for the funding of this Agreement. Any such purported construction or award will be null and void. The arbitrator's award shall be subject to enforcement or vacation by the Circuit Court according to law. Moreover, and without waiving the preceding limitation, in no case shall the City be liable for any punitive, consequential, indirect or incidental damages whatsoever. 16. Counterparts, Electronic Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute a single instrument. Execution and delivery of this Agreement by electronic exchange bearing the copies of a Party's signature shall constitute a valid and binding execution and delivery of this Agreement by such Party. Such electronic copies shall constitute enforceable original documents. 5 Page 1136 of 1252 WHEREFORE, the Parties, after full consideration, including consultation with independent counsel, do knowingly, voluntarily, and intending to be legally bound, hereby enter into this Agreement duly executed on the dates written below. Attest: FOR CITY OF MIAMI BEACH, FLORIDA: Rafael E. Granado, City Clerk Dan Gelber, Mayor day of , 2021. FOR ACTING CITY ATTORNEY: Witness Signature Rafael A. Paz, day of , 2021. Print Name Witness Signature Print Name APPROVED AS TO FORM &LANGUAGE &FOR EXECUTION 2 3 2021 .1CItyMoore'!t.`;`. '— Date 6 Page 1137 of 1252 • ;oil).—a7 `l76 • • EMPLOYMENT AGREEMENT • This Employment Agreement (Agreement) is made and entered into as of the 18th day of July, 2012, by and between the City of Miami Beach, a municipal corporation (City), and Kathie G. Brooks (Manager). The City and Manager may also be referred to herein, individually, as a "Party" and, collectively, as the "Parties." WITNESETH: • WHEREAS, the City desires to secure and retain the services of Manager as the Interim City Manager of the City of Miami Beach during such time as the City Commission • conducts its search process for a new permanent City Manager; and WHEREAS, the Manager desires to accept the position under the terms and conditions contained in this Agreement; and • • WHEREAS, the Parties acknowledge that in accepting this engagement, Manager has taken (and been given) leave from her position as the City's Director of the Office of Budget and Performance Improvement (Director) and that, upon the •normal expiration of . the term of this Agreement and successful completion of her services as the Interim City Manager, it is the intent of the Parties that she return to her position as•Director, or such other higher level executive staff level position as the new permanent City Manager may appoint her to (since it is contemplated that, during the term of this Agreement, the City will have conducted and successfully completed the aforestated search process for a permanent City Manager). NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: Section 1. Duties The City hereby agrees to engage Manager, and Manager agrees to be engaged, as the Interim City Manager, to perform the functions and duties of the City ,Manager, as specified in the City Charter and the City Code. • Section 2. Term a. The term of this Agreement (Term) and, accordingly, the Manager's services • under this Agreement, shall be deemed to have commenced retroactively as_of July 8, 2012 (Commencement Date), and shall terminate on January 7, 2013 (Termination Date), subject to the earlier termination or extension provisions set forth herein. Upon the normal termination of this Agreement, Manager shall automatically revert to her position as Director, or shall accept such other higher executive staff level position as the new permanent City Manager may appoint her to; provided, however that if, after accepting such position, Manager is either terminated, or demoted to a lesser position, at any time within a period of 120 days from her acceptance of such position, then Manager shall be entitled to a 1 Page 1138 of 1252 • severance payment equal to (i) 20 weeks salary at the rate of pay in effect upon the date of termination or demotion; and (ii) 20 weeks of the benefits listed in Section 7 through 9 of the Agreement (Items (i) and (ii) shall collectively be defined as the Severance.Payment). b. The Term of this Agreement may be extended by mutual agreement of the Parties, and by written amendment to this Agreement duly executed by the Parties-and approved by the Mayor and City Commission. • • c. Notwithstanding subsection 2(a) herein, this Agreement may be terminated by the City Commission at any time, without liability to the City, in the event the City • Commission engages the new, permanent City Manager prior to the Termination • Date. In the event of a termination of this Agreement under this subsection 2(c), Manager shall either: (i) automatically revert to her position as Director;'or_(ii)• shall accept such other higher executive staff level position as the hew permanent City Manager may appoint her to; provided, however, that if, after accepting such position, Manager is either terminated, or demoted to a lesser • . position, at any time within a period of 120 days from her acceptance of such position, then Manager shall be entitled to the Severance Payment. ; . d. In addition to the termination provision provided in subsection 2(c) 'herein, the . • City Commission may also terminate this Agreement, at any time, without cause and for convenience, upon fifteen (15) days prior written notice for Manager. In . the event of such termination, Manager's remedies shall be the same as those . provided in subsections 2(c)(i) and (ii) hereof: . e. In the event this agreement is terminated pursuant to subsections 2(a), 2(c) or 2(d), and .the Manager elects to either (i) automatically revert to her position as • Director; or (ii) accept such other higher executive staff level position as the new permanent City Manager may appoint her to, it is.contemplated that her salary will be adjusted to the level set forth by the. City's standard practice when an • employee moves from a higher level position to a lower level position. f. The remedies provided to Manager in subsections 2(a)(i) and (ii); 2(c)(i) and (ii);' and/or 2(d) above, shall not apply (and, accordingly Manager shall not be entitled to same) in the event of a termination for"cause" pursuant to Section 4 hereof, or • Manager's voluntary resignation, pursuant to Section 5 hereof. Section 3. Exclusivity of Service The Manager agrees to remain in the exclusive service of the City as' long as this Agreement remains in full force and effect; provided, however, that nothing in this Section shall be construed to preclude occasional teaching, writing, pro bono activities, community, • and civic or charitable work, as is customary in high executive positions. • Section 4. Termination for Cause . The City Commission may, at any time during the Term, by majority vote, terminate this Agreement for cause, as reasonably determined by the City Commission; provided, however, •that prior to any such termination being effective, the Manager shall be given at • • least thirty (30) days prior written notice of such termination. "Cause" shall be defined as: • malfeasance, misfeasance, or nonfeasance; fraud; conviction of felony; refusal to perform . the duties andresponsibilities of the position; and/or committing any act which is found to be a violation of any applicable City of Miami Beach, State, or Federal, law protecting the 2 • • Page 1139 of 1252 rights of City employees. In the event the Manager is terminated for cause, the City shall have no obligation to pay, and the Manager shall have no right to collect, the Severance Payment under this Agreement, unless the Parties otherwise agree. i . Section 5. Voluntary Resignation In the event the Manager voluntarily resigns her position with the City prior to the Termination Date, then the Manager shall give the City at least thirty (30) days advance written notice and the City shall have no obligation to pay, and Manager shall have no right to collect, the Severance Payment under this Agreement, unless the Parties otherwise agree. - Section 6. Salary • The City agrees to pay the Manager for services rendered pursuant to this Agreement a salary annualized at Two Hundred and Twenty Thousand Dollars ($220,000), payable in bi-weekly installments at the same time as other employees of the City are paid. In addition, the Manager shall be entitled to an automobile allowance, as provided in Section 7; health and life insurance benefits, as provided in Section 9; continued participation in the Miami Beach Employees' Retirement Plan as provided in Section 10, at the respective employer/employee contribution level based upon her annualized salary as • Manager; and such other amenities which are customarily provided to other general unclassified employees of the City. Section 7. Automobile • The Manager shall receive an automobile allowance commensurate with that of an Assistant City Manager position, in recognition of her use of her personal automobile for City business. • Section 8. Vacation and Sick Leave The Manager shall be entitled to accrued vacation, sick, and other City permitted leave in the same manner as other general unclassified employees of the City; including the same provisions governing payment thereof upon termination of employment. • Section 9. Health and Life Insurance The City agrees to pay the premiums for the Manager for the following insurance policies, up to the amount and to the extent that the City would pay such premiums (or portions of such premiums as the case may be) for other general unclassified;employees of • • the City of Miami Beach: life, accident, dental, sickness, major medical and dependents' coverage group insurance covering the Manager and her dependents; with all;such policies to be of the same type and manner as those that are made available to other general unclassified employees of the City. 3 Page 1140 of 1252 Section 10. Retirement The Manager will remain a member of the Miami Beach Employees' Retirement Plan so long as her engagement continues. 1 Section 11. Dues and Subscriptions i The City agrees to budget and to pay for the professional dues and subscriptions of the Manager necessary for her continuation and full participation in national, regional, state and local associations and organizations •necessary and desirable for the Manager's continued professional participation, growth and advancement, and for the good of the City. Section 12. Professional Development a. The City hereby agrees to budget for and to pay the travel and subsistence expense of the Manager for professional and official travel, meetings and occasions adequate to continue the professional development of the Manager, and to adequately pursue necessary official and other functions for the City. b. The City also agrees to budget for and to pay for the travel and subsistence • expenses of the Manager for those courses, institutes and seminars that are necessary for the professional development of the Manager. • Section 13. General Expenses The City recognizes that certain expenses of a non-personal and generally job- : affiliated nature are incurred by the Manager and agrees to reimburse or to pay said general expenses, and the City's Finance Department is hereby authorized to disburse such monies upon receipt of duly executed expense or petty cash vouchers, receipts, statements or personal affidavits. There shall be an annual review of those expenses by the City's independent auditor. j .Section 14. Organization Membership The City recognizes the desirability of representation in and before local civic, social, and other organizations, and the Manager is authorized to become a member of such civic clubs or organizations, for which the City shall pay all job related expenses. No civic club or organization authorized hereunder may engage in discrimination as to race, sex, sexual orientation, color, creed, religion, national origin, or disabilities. Section 15. Bonding The City. shall bear the full cost and any fidelity or other bonds required of the Manager under any law or ordinance. Section 16. Other Terms and Conditions of Employment • . a. The City Commission shall fix any such other terms and conditions of employment, as it may reasonably determine from time to time during the Term, relating to the performance of the Manager; provided such terms and conditions 4 Page 1141 of 1252 • do not reduce the salary and benefits provided in Sections 6, 7, 8'and 9 of this Agreement, (except for a reduction or reductions in accordance to Section 17 hereof), nor conflict with the City Charter or any other law. b. All provisions of the City Charter and Code, and regulations and rules of the City relating to vacation and sick leave, holidays, other fringe benefits,; and working conditions, as they now exist or hereafter may be amended, shall also apply to the Manager as they would to any other general unclassified employee of the City. Section 17. No Reduction of Benefits The City shall not at any time during the Term reduce the salary or those benefits of the Manager, provided in Sections 6, 7, 8 and 9 of this Agreement, except to the degree of a reduction (or reductions) in salaries and/or benefits which are made across-the-board for and apply to all general unclassified employees of the City. l - I Section 18. Computer/Equipment The City shall pay for all equipment, systems software and portable communications equipment necessary for the Manager. • Section 19. Notices Notices pursuant to this Agreement shall be given by deposit in the custody of the U.S. postal Service, postage prepaid, addressed as follows: City: Mayor Math Herrera Bower City of Miami Beach 1700 Convention Center Drive • Miami Beach, Florida 33139 • Jose Smith, City Attorney City of Miami Beach 1700 Convention Center Drive • Miami Beach, Florida 33139 Manager: Kathie G. Brooks, City Manager City of Miami Beach 1700 Convention Center Drive • Miami Beach, Florida 33139 • - • Alternatively, notices required pursuant to this Agreement may be personally'served in the • same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice!in the course of transmission in the United States Postal Service. • Section 20. General Provisions t • a. The text herein shall constitute the entire Agreement between the parties. . . 5 Page 1142 of 1252 i • • b. This Agreement shall be binding upon and inure to the benefit of the heirs at law • and personal representatives of the Manager. • c. If any provision, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect. d. No alteration, modification or amendment of this contract shall be effective unless • • contained in writing, executed between the parties in a document of!equal dignity with this contract; and approved by the Mayor and City Commission. • Section 21. Expression of Intent i • While the City Commission acknowledges that, pursuant to the City Charter, the City Manager, as the chief executive officer and head of the administrative branch of the City government, is the individual authorized by the Charter to appoint and remove, at will, all City employees in the unclassified service of the City (including, without limitation, Assistant City Managers, City department directors, and City division heads), the City: Commission • •also hereby expresses its intent and wishes –which the Commission recognizes to be non- binding and solely advisory in nature—that, should the Manager successfully complete the services to be rendered by her pursuant to this Agreement, that the new permanent City Manager consider appointing her to the position of Assistant City Manager. Section 22. Investment Disclosure The Manager hereby advises the City Commission that she has a fiscal interest in a • corporation that owns an investment property in El Portal, Florida that is managed by her son. Section 23. Governing Law and Exclusive Venue This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principles of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami-Dade County, Florida, if in state court, and the U.S. District Court, Southern District of Florida, if in federal court. BY ENTERING INTO THIS AGREEMENT, CITY AND MANAGER 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. Section 24. Limitation of City's Liability The Severance Payment, when applicable, as provided in this Agreement shall • constitute the agreed, stipulated and • liquidated damages, and shall constitute of the maximum amount of financial liability for which the City may be liable in the event of a • termination and/or breach of this Agreement. Notwithstanding the preceding, in no event and/or circumstances shall the City be liable under this Agreement for any consequential incidental, punitive, or indirect damages arising from or in relation to this Agreement. - i • • 6 Page 1143 of 1252 • • IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day and year first above written. I Attest: FOR CITY OF MIAMI BEACH, FLORIDA: Raf el E. Granado, CityAsor ``� l errera Bower, Ma 3 �, /� Mayor * INCORP ORATED' E : �n day of Tt ,. 2012.• ',,.,CH,26 FORANAGER:Q/ Witness Signature , thie G. Bro2j6, Ii/iq 'va2//o D day of 2012. Print Name 4-011.14/ I ,loess Signature •• ().627.21 (c-6 Print Name • APPROVED AS TO FORM &LANGUAGE &Fn th ECUTION 4i /iz ttorney te • • F:1ATrO1AGUR)AGREEMENIIKathie Brooks-Employment Agreement(Redline 7-17-12).docx • • • 7 Page 1144 of 1252 f.• l Be • _ '. zs i HIS70tIC •c Q rf. R GRT HALL �C T Q R Joseph M. Centorino, Inspector General OFFICE OF THE INSPECTOR GENERAL ANNUAL REPORT 2020 TO: Honorable Mayor and Members of the City Commission FROM: Joseph M. Centorino, Inspector General RE: Annual Report of OIG Activity DATE: November 1, 2020 This annual report is submitted to the Mayor and City Commission by the City of Miami Beach Office of the Inspector General in compliance with Section 2-256 (j) of the City of Miami Beach Code. CREATION OF OFFICE AND APPOINTMENT OF INSPECTOR GENERAL The City of Miami Beach Office of the Inspector General was created as a result of a citizen referendum in November 2018, in which a proposed Charter Amendment was passed overwhelmingly by the voters, establishing the office as "an independent body to perform investigations, audits, reviews, and oversight of municipal matters including City contracts, programs, projects, and expenditures, in order to identify efficiencies, and to detect, investigate and prevent fraud, waste, mismanagement, misconduct, and abuse of power." By virtue of the enabling ordinance adopted to flesh out the office's scope of activity, the office is provided with the authority to "conduct any reviews, audits, or investigations relating to any past, present, and proposed City contracts, programs, projects, and expenditures," as well as to conduct "any reviews, audits, inspections, or investigations relating to City Departments, agencies, boards, and committees." The office was also granted power to subpoena witnesses, administer oaths, and require the production of records, and to "require reports from the City Manager, City departments, City agencies, boards and committees, and City officers and employees, regarding any matter within the jurisdiction of the Inspector General." The Inspector General is chosen by an independent Ad Hoc Selection Committee subject to the approval of the City Commission. Following a lengthy selection process, Joseph M. Centorino was selected as Inspector General by the Ad Hoc Committee and his appointment to a four-year term was approved by the City Commission on October 16, 2019. Mr. Centorino began service as Inspector General on November 1, 2019. Page 1 of 16 Page 1145 of 1252 ORGANIZATION OF OFFICE Prior to his appointment as Inspector General, Mr. Centorino served as Executive Director and General Counsel at the Miami-Dade Commission on Ethics, and previously served as Chief of the Public Corruption Division at the Miami-Dade State Attorney's office. In those capacities he became familiar with the functions of an Inspector General Office by virtue of working on joint investigations with the Miami-Dade OIG, participating in their conferences and training sessions, and collaborating with its staff on various County issues of mutual concern, including legislation affecting his employing agencies as well as all municipalities within the County. Before beginning his service in Miami Beach, he met with the senior staff of the Miami-Dade and Broward County OIGs to review their procedures and systems of operation and performance. He also reviewed the operations of the City of Miami Beach and its various departments through its website. During the first few weeks of the OIG's existence, the Inspector General met personally with all City Department directors, as well as with many City staff members, to discuss the role of the OIG and establish working relationships with City decision-makers. The City of Miami Beach is the first City of its size in the State of Florida to establish such an office. It was understood at the time of the creation of the office that, due to practical fiscal considerations, the City of Miami Beach OIG would not have the extensive in-house investigative resources with which many OIG offices at County and State levels are equipped. At the same time, given the unique and complex issues often dealt with In Miami Beach, particularly in the area of resiliency and climate change, part of the IG's initial organizational strategy was to supplement staff resources whenever possible through collaboration with the City of Miami Beach Police Department as well as other law enforcement and regulatory agencies inside and outside of Miami Beach. New OIG Positions At the time of the commencement date of the OIG on November 1, 2019, funding for the position of Inspector General, as well as for three new staff positions had been budgeted by the City for FY 2019-2020. The additional positions included one investigator and two auditors to be added to the existing Office of Internal Audit staff which was to be subsumed into the 01G. Due to the critical need for investigative staff, the Inspector General decided to alter those positions to two investigators and one auditor. Salary adjustments were made in order to stay within budget and to cover what would otherwise have resulted in a budget shortfall. Existing Audit Staff The personnel of the Office of Internal Audit, which previously reported to the City Manager, was assigned to the OIG, and hence became independent of the City Administration. Inasmuch as auditing is one of the key functions of an 01G, this was a positive move by the City. Internal Audit at that time was led by Interim Internal Auditor Mark Coolidge, a CPA and longtime City employee. The rest of the office of Internal Audit consisted of three Internal Auditors, four Tax Auditors, and one vacant Tax Auditor position. Internal Auditors perform the auditing function served by most OIG auditors. They have the professional training to conduct detailed audits of any governmental activity within the OIG's purview, such as an audit of a City department for compliance, waste and/or efficiency, as well Page 2 of 16 Page 1146 of 1252 as of any City contract or City program. They also are trained to draft detailed reports, as well as to create spreadsheets and other compilations to illustrate their findings. Tax Auditors conduct audits of revenues owed to the City by resort tax filers or sanitation companies (waste contractors and roll-off companies). They serve a narrower function that involves a review of the records of revenues generated by hotels, apartment buildings, bars/nightclubs and restaurants, as well as applicable sanitation contractors, and the payments due to the City from those funds. Although unusual for most municipalities, their role is consistent with OIG functions. Their work in uncovering unpaid tax assessments often leads to increased revenues paid to the City. Resort Tax Auditors are paid from the City's resort tax receipts and the Sanitation Tax Auditor is paid with Sanitation funds, whereas the Internal Auditors are paid primarily from the City's General Fund. Audit Staff Changes After a couple of months of working with the audit staff and observing their work, the Inspector General named the City's Interim Internal Auditor, Mark Coolidge, C.P.A, C.I.A., as Chief Auditor of the 01G. Norman Blaiotta, C.I.A., previously Senior Auditor, and also a Certified Fraud Examiner, was promoted to Deputy Chief Auditor. Resort Tax Auditor Jessica Romero was promoted to the new Internal Auditor position based upon her outstanding performance reviews and potential value to the agency as a permanent Internal Auditor. Her previous position and the vacant Tax Auditor position were filled by new hires, Tomas Valdes and Juan Ospina, both of whom had previously held Tax Auditor IV positions at the Florida Department of Revenue. Investigative Staff The usual model for investigative staff at an OIG favors former or retired police or other law enforcement agents. That was not the model followed at the City OIG for two reasons. One reason was based on the major pending construction contracts in the City, which would require more sophisticated analytical and investigative tools than usually found in law enforcement. Such projects were apparent in the City's resiliency and G.O. Bond programs. The former had already raised serious issues of misconduct and/or mismanagement in the Palm/Hibiscus and Indian Creek projects, and had been the subject of requests for OIG investigation by City Commission members even before the office began its work. The G.O. Bond projects were explicitly named in the OIG enabling ordinance for the new agency to closely monitor and report on to the City Commission. The second reason is that an understanding was reached by the Inspector General with the City of Miami Beach Police Department for its Internal Affairs Unit to work jointly with the OIG on investigations into misconduct by City personnel involving potential criminal violations. Their assistance to the OIG has proven valuable and has provided the OIG with law enforcement support whenever needed. In the event of circumstances that would require an outside law enforcement agency, public corruption units at the Miami-Dade State Attorney's Office, Miami- Dade Police Department and Florida Department of Law Enforcement would be available to assist the OIG. Due to these factors and the OIG's limited investigative staff, the two OIG investigative positions were filled with persons having not only investigative experience, but also having broad experience in government at different levels and the capability of handling and reporting on sophisticated analyses of complex local government programs. Page 3 of 16 Page 1147 of 1252 Special Agent F. James McGee holds a B.S. in Journalism from the University of Florida. He has served as an investigator at the Miami-Dade Commission on Ethics; a licensed private investigator in Virginia and Florida, specializing in civil fact investigations; a staff investigator in Washington D.C.with the U.S. Senate Homeland Security and Governmental Affairs Committees; an investigative reporter with the Washington Post, and, during the 1980's, with the Miami Herald where he was a member of a Pulitzer Prize winning reporting team on the Iran-Contra Affair. He is an author, a credentialed Certified Fraud Examiner and holds a Certificate in Forensic Accounting from Georgetown University. Special Agent Jani Kline Singer, Esq., is an attorney and Florida Bar member who for seven years served as a prosecutor in the Miami-Dade State Attorney's Office Public Corruption Unit, leading significant local government corruption investigations and prosecutions. She holds a Bachelor Degree in Politics and Sociology from Mount Holyoke College and a J.D. from the University of Miami School of Law. Ms. Singer is also a former public defender at the Miami-Dade Public Defender's Office; and a former managing attorney of Children's Legal Services at the Florida Department of Children and Families. In addition, she has extensive local experience as a nonprofit board member and social justice consultant, and is a longtime resident of Miami Beach. Scope of Activity As noted above, the scope of activity of the 01G, based on the enabling ordinance, includes, in addition to investigations and audits, other types of inquiry and reporting such as reviews, inspections, and contract oversight. Reviews and inspections may involve more flexible and limited oversight and are denoted as such when reports are generated from such activity. Contract oversight is a key function of an OIG, and may range from a focused review of a City contract provision or procurement procedure, to much more in-depth investigations or audits. There is currently no discrete contract oversight position in existence at the 01G, and, therefore, any of the OIG's investigators or internal auditors may be involved in contract oversight. OIG Contract Allocation Fee Similar to Miami-Dade County's dedicated funding source for its OIG budget, which is based on a percentage of County contracts payable by the vendors, a contract surcharge of 1.5% of City contracts to be paid by City vendors was proposed as the source of funding the City's newly- created 01G. Due to technical considerations raised by the City Finance Department, a revised measure adopted by the City Commission in January 2020, which created a .5% contract allocation fee, payable by the City Department rather than the contractor, and applied to non- exempt contracts, either entered into or on which a competitive solicitation was issued prior to April 1, 2020. The amount allocated from any individual contract was capped at $50,000. It was understood that any shortfall in the amount raised by the fee would be covered by the General Fund. The OIG has monitored the amount of the fees generated by the contract allocation, which at this point appears to be much less than anticipated, due in part to some confusion among City departments concerning its applicability. It is anticipated that the OIG and Finance Department will be requesting a reassessment of this policy by the City Commission in the near future. Page 4 of 16 Page 1148 of 1252 OUTREACH The most important currency for a public investigative agency is information. In dealing with issues such as fraud, waste, abuse or other serious mismanagement or misconduct, there is no substitute for accurate, truthful inside information from individuals positioned to possess knowledge of the facts. To be successful in the quest to capture such intelligence, an agency must be known, accessible and trusted. The strong public support for creation of the Miami Beach OIG was an indication that the public understood the important role that an OIG could play in promoting integrity and efficiency in City government. A vital part of the OIG's mission is to tap into that support and maximize the flow of information to the agency. The City Manager's decision to locate the OIG in Historic City Hall on Washington Avenue was an inspired one. The location is well known and easily accessible. It is next to the Miami Beach Police Department. And it affords any City employee or official, or any member of the public, the opportunity to visit the OIG in a confidential manner. The renovated offices on the 6" and 4" floors are reserved exclusively for the OIG and have the space and up-to-date technological equipment needed for its operations. During its first year, the OIG has made an effort to promote and publicize the OIG's functions and services. With the generous assistance of the City's Department of Marketing and Communications, an attractive logo was designed for the agency and a website created at www.mbinspectorgeneral.com (also accessible through the City's website) which describes its mission and staff, provides important legal information about its role, as well as access to its completed audits, investigations and other reports. It provides the means for anyone to contact the agency by email on a confidential basis, as well as a telephone hotline number. The hotline phone is always in the possession of a staff member. With the Marketing & Communications Department's creative design assistance, an OIG poster has been printed and distributed for display in public and private venues, with hotline, email and website information. The poster will also be displayed in the Miami Beach Magazine and in City trolleys. The best way to engage the public is through direct, personal contact. The Inspector General has accepted all invitations to appear as a speaker at any meeting or gathering of a civic or community organization. These have included a session sponsored by Commissioner Samuelian at the MBPD and a virtual appearance at Commissioner Steinberg's Mondays With Micky. The Inspector General and/or staff members will accommodate any Commission member or other official or private group host who requests the OIG's appearance and participation at any appropriate event. Almost all of these appearances have generated further contact with the OIG by individuals present at the event. Appearances at future in-person programs with local groups will resume as soon as they can safely occur. PROFESSIONAL TRAINING The audit and investigative processes in an Office of Inspector General are similar to, but not always the same as, those same functions in other government entities. The Association of Inspectors General (AIG), located in Philadelphia, through its Training Institutes, offers certification courses for OIG personnel in their respective disciplines. During the past year, both of the OIG's investigators became Certified Inspector General Investigators. The OIG's Chief Auditor, Deputy Chief Auditor, and one Internal Auditor became Page 5 of 16 Page 1149 of 1252 Certified Inspector General Auditors. It is expected that the remaining OIG Internal Audit staff will become certified within the next year, COVID-19 permitting. In addition to obtaining their certifications, staff have received AIG sponsored training in "Fighting Fraud in the Government," "Fraud in Capital Projects and the Construction Process," and others. OIG staff have also been provided membership in the Florida Chapter Association of Inspectors General, which includes State of Florida Inspectors General as well as local Inspectors General in Miami-Dade, Broward, and Palm Beach Counties and in the Cities of Jacksonville and Tallahassee. The Florida Chapter sponsors annual training sessions open to its members and serves as a resource for its member offices. Specialized training may also be provided among its members. A special training session on contract oversight was arranged with the Miami-Dade County OIG for all Miami Beach OIG personnel. COMPLETED INTERNAL AUDITS 1. Taste Bakery MC City Hall LLC d/b/a Taste Bakery Café Audit Testing by OIG staff concluded that compliance with the Lease and Concession Agreements was generally adequate and their terms were being adhered to. The audit determined that as a result of untimely rental payments, the tenant owes an additional $954.10 to the City. In addition, the tenant's insurance coverage should be further reviewed to ensure compliance with the terms of the agreement. 2. State Beachfront Management Agreement (No. 3595) Audit State Beachfront Management Agreement No. 3595 requires the City of Miami Beach to remit 25% ("sand tax") from any and all monies collected from private concessionaires or other private concerns for the use of State beachfront property to the State of Florida. It also requires the City to provide the State of Florida with an annual audited report of all monies collected from concessionaires. The following shortcomings were noted during OIG's audit of the operational controls surrounding the City's management of Agreement No. 3595, that need improvement: a. The City inadvertently overpaid the State $2,363.94 due to 17 identified incorrect general ledger entries. b. Ten transactions were identified that were underbilled by$7,051.00. Of these ten, the Shelborne Hotel owed $6,072.00, which was not included on the master summary schedule provided to the Licensing Section by the Office of Real Estate. One beachfront property, overbilled by $1,320.00 during the 2017/18 fiscal year, still has not received a credit, and amounts owed from prior years by the Versailles and Triton Tower-AC Hotels have not been resolved. c. The Finance Department's Licensing Section incorrectly overbilled one entity by $810.00 in beachfront concession permit fees. d. The tested Boucher Brothers Inc.'s 21st & 46th Street concession payments were not properly distributed among the City's general ledger accounts by the Office of Real Estate and were not calculated in accordance with Section 4.2 of the Concession Agreement's terms, resulting in a $72,151.72 underbilling to Boucher Brothers by the City and a $13,470.94 sand tax underpayment to the State. If the Page 6 of 16 Page 1150 of 1252 City's interpretation of the agreement differs from that of the OIG and City Attorney, then the agreement should be revised by the City Commission. e. Penrod Brothers Inc. incorrectly reported food and beverage sales to the City resulting in a net overpayment of$113.56 to the State. f. The Office of Real Estate did not include sand tax on the lump sum amount paid by Penrod's Brothers, resulting in a $555.25 underpayment to the State. 3. Follow-Up Review of the State Beachfront Management Agreement (No. 3595)Audit Of the nine findings contained in the report that required corrective action by a City department, eight recommendations were fully implemented and one recommendation was partially implemented. It was recommended that the Office of Real Estate address the one open item concerning the accuracy of the billing of Boucher Brothers concession payments. 4. Public Works Department's Warehouse Inventory Audit Based upon results of test counts and inventory reports, OIG staff recommended that the Finance Department use the valuation of $1,795,500.67 as of September 30, 2018. The annual physical inventory was conducted effectively, with the corresponding valuation deemed reasonable. Warehouse staff should be commended for lowering the stratified sample's calculated percentage difference to 0.00% from the prior year's 5.69%. 5. Building Department Permit Fee Surcharges Audit This report is the result of an audit conducted to review the Building Department's compliance with three tested permit fee surcharges as defined in the Florida Statutes, the Miami-Dade County Code and/or the Miami Beach City Code. Testing determined that the permit fee surcharges associated with F.S. 553.721 were incorrectly calculated, resulting in an additional amount of $105,113.97 due to the Department of Community Affairs (DCA). In addition, permit fee surcharges associated with F.S. Section 468.631 were incorrectly calculated, resulting in $86,306.42 due to the Florida Department of Business and Professional Regulation (DBPR). 17 of 18 tested quarterly permit fee surcharge payments due to the DCA and the DBPR were not remitted timely in accordance with F.S. Sections 553.721 and 468.631. Monthly permit fee surcharge payments due to Miami-Dade County were not remitted timely, resulting in the incorrect deduction of $4,203.89 in offered discounts. Lastly, City Code Section 14-70 (1) contains a permit fee surcharge rate that differs from the rate in F.S. 553.721 and should be corrected. 6. Miami Beach Tennis Management, LLC Management Agreement (Flamingo Park Tennis Center) Preliminary Observations Although this audit was not completed because the contractor terminated its agreement with the City, the following preliminary observations were noted: a. The contractor operated the Flamingo Park Tennis Center and the North Shore Tennis Center without obtaining its annual business tax receipts for either facility. In addition, six of the 14 known tennis professionals appeared not to have obtained their 2019/20 fiscal year business tax receipts as of November 27, 2019. b. Four checks issued during the 2018 and 2019 calendar years to the City were returned due to insufficient funds. Page 7 of 16 Page 1151 of 1252 • c. The contractor improperly maintained a second checking account to which the City did not have access, and it was incorrectly used to pay some expenses from its Miami Shores Tennis Center. d. Some tennis professionals complained that they were not paid timely from the contractor, one of whom provided supporting documentation. e. 1,145 of 5,864 lessons given were at rates that did not appear to match any of those listed in Exhibit K of the agreement. 358 individuals received tennis lessons at no charge, and one was charged more than the highest permissible rate. 7. Parking and Police Department Requested Tows Operational Audit Three separate audit reports were issued that address the OIG's testing performed relative to Beach Towing Services, Inc., Tremont Towing Inc. and of the City departments, Parking and Police, involved in the towing process. These audits address a significant number of deficiencies in need of prompt corrective action ranging from needed revisions in the negotiated Towing Permits, inaccurate City billings, poor City oversight and the tow companies' unsatisfactory performance(especially by Beach Towing Services, Inc.). The current public tow structure is not functioning as well as it should, as tow customers' rights are not being adequately enforced and there appears to be overcharging by the tow companies for some services. The following shortcomings were noted during testing that need corrective action by the City: a. Parking and Police Department's requested tows were not properly billed during the audit period resulting in an estimated underbilling of $24,822 ($21,577 for Parking + $3,245 for Police). b. 12 of 26 tested Police Department billings were prepared after designated due dates per Towing Permit Section 3 (46.15%) ranging from a low of two days late for December 2017 to a high of 33 days late for November 2017. c. The current Towing Permits contain some contradictory wording which created confusion as to their interpretation, including charges for dollies, administrative fees, after-hours fees and hook-up fees; and the tow companies' acceptance of additional forms of payment. d. Formal complaint logs were not maintained by the City's Parking and Police Departments, which impeded verification that the actions required under Section 29 of the Towing Permits were timely performed. e. The tow truck operators' arrival times were not recorded for Police Department requested tows,creating an obstacle in determining compliance with the 20-minute response time required under Section 14 of the Towing Permits. f. The Parking Department did not maintain adequate documentation as to why the tow companies were not always alternated. Beach Towing performed 15 more public tows than Tremont Towing during the 13-month audit period. g. Parking and Police Department staff were unaware that the tow companies did not maintain the required insurance coverage in accordance with Section 4 of the Towing Permits. h. The Parking Department's Standard Operating Procedures were incomplete, and Parking Enforcement Specialists present at the tows did not document Vehicle Storage Receipts when usage of dollies or flatbed services were warranted. Page 8 of 16 Page 1152 of 1252 8. Beach Towing Services, Inc. -Towing Audit The following shortcomings were noted during testing that require corrective action by Beach Towing: a. Beach Towing charged the $40 fee for dollies or flatbed services approximately 650% more frequently than Tremont Towing (7,179 compared to 1,106) resulting in an estimated $258,870 in additional revenues during the 13-month audit period. b. Testing determined that Beach Towing overcharged 55 Class "B", 73 Class "C" and 12 Class "D" sampled customers on hook-up fees of the 148 reviewed (140/148 = 94.59%) based on an analysis of their gross vehicle weight ratings. c. Beach"Towing charged the labor to engage/tow fee for vehicle entry on 11,441 of the 11,614 tested public tows that were charged hook-up fees during the audit period (98.51%). A review of Parking and Police Department provided body camera footage found that all 14 tested tow operators did not enter the vehicles at the tow locations. d. The amounts charged by Beach Towing for sampled October 2018 storage fees could not be verified because their employees did not record the time/date indicating when the owners retrieved the towed vehicles. e. The amounts charged and collected by Beach Towing for state sales taxes on administrative and/or storage fees for Police Department requested tows does not appear to be justified. f. Beach Towing did not maintain the required insurance coverage in accordance with Section 4 of the Towing Permits. 9. Tremont Towing, Inc. - Towing Audit The following shortcomings were noted during testing that require corrective action by Tremont Towing: a. 12 of 20 sampled Tremont Towing customers were overcharged for dollies or flatbed services during a 14-day test period, as such equipment was not used at the tow locations, based on available Parking Department body camera footage. b. Tremont Towing, Inc. overcharged 16 Class "B", four Class "C" and five Class "D" vehicle owners hook-up fees of the 42 reviewed (59.52%) based on an analysis of their gross vehicle weight ratings and other provided documentation. c. Tremont Towing charged the $30 labor to engage/tow fee for vehicle entry on 11,230 of the 11,294 public tows that were charged hook-up fees during the audit period. Testing determined that Tremont Towing overcharged its customers labor to engage/tow fees for 12 of the 25 tows sampled in October 2018, based upon a review of Parking and Police Department body camera footage, showing that the tow operators were not accessing the vehicles at the tow locations. d. The times that vehicles were impounded and/or released to their owners were not always indicated on Tremont Towing's invoices. e. The amounts charged and collected by Tremont Towing for state sales taxes on administrative and/or storage fees for Police Department requested tows do not appear to be justified. f. Tremont Towing did not maintain the required insurance coverage in accordance with Section 4 of the Towing Permits, but subsequently provided evidence verifying that they had resolved the coverage deficiencies. Page 9 of 16 Page 1153 of 1252 g. Tremont Towing's invoices contained two separate line items concerning the labor to engage/tow fee and the extra labor or extra waiting time fee that contradicted the language in the Towing Permits. 10. Semi-annual Finance Reviews — Fiscal Year 2019/20 The purpose of these reviews is to test City staff's compliance with recommendations from the BDO audit conducted as a result of a $3.6 million fraud involving the City's Treasury Department and Automatic Clearing House disbursements during the fall of 2016. The First Review focused on compliance with recommendations numbered 17, 27, and 38, and revealed the following issues: • A lack of segregation of duties was noted in four instances during a review of Account Payable transactions. • Six transactions equal to or more than $100,00 were not dually approved. • The authorization for one of the 12 sampled Role Assignment Changes was not documented by the Munis System Administrator in charge. The Second Review tested compliance with recommendations numbered 18 and 27. No deficiencies were noted. 11. Annual Finance Department Bank Account Reconciliations and Summary Report This annual review was begun by the Office of Internal Audit as a result of the $3.6 million fraud committed against the City in 2016 and has been continued under the O1G. OIG Audit staff has (1) reviewed the bank reconciliations performed either monthly or quarterly by designated Finance Department staff to verify that they were completed timely and promptly reviewed and approved; (2) confirmed that all entries on the Daily Debit Transaction Report were deemed valid by Finance Department staff; and (3) verified that there is a credit in the general depository account and a corresponding debit transaction in another City bank account for all ZBA (zero balance account) transactions. The only • exception noted during the 2019/20 fiscal year was that the designated Finance Department reviewer did not list the date that he completed his review of the 5th and Alton Garage's December 2019 bank reconciliation. COMPLETED RESORT/SANITATION TAX AUDITS The Tax Auditors, who primarily conduct Resort Tax revenue-based audits, completed a total of 109 audits, consisting of 51 annual filers and 58 monthly filers, during the November 1, 2019 through October 31, 2020 period. These completed,audits resulted in net assessments of$1,104,504.30 as of November 1, 2020. Although the Office of the Inspector General determines the amount of an assessment (if any) based on its audit, it is not involved thereafter in the collection phase unless additional documentation is provided, which may lead to adjustment, appeal, settlement or resolution through other City processes and agencies. Page 10 of 16 Page 1154 of 1252 Assessments that are not timely paid may result in liens being imposed by the City on properties owned by the delinquent taxpayers or corporate officers, which can remain in effect for up to 20 years. Any collected assessments based on the audits represent additional revenues to the City that would otherwise not have been received. The one Tax Auditor position assigned to perform Sanitation audits of waste contractors and/or roll-off companies was vacant for six months and was filled midyear. The new Tax Auditor has completed one audit, with four audits nearing completion. All Tax Auditors have faced delays in obtaining records due to full or partial COVID-19 shutdowns affecting many of the taxpaying entities. The OIG has maintained a policy of permitting reasonable extensions to affected taxpayers when appropriate. INVESTIGATIONS, REVIEWS AND INSPECTIONS The OIG has broad investigative authority under Section 2-256(d) of the City Code. Its authority includes investigation of any past, present, and proposed City contracts, programs, projects, expenditures, departments, agencies, boards, and committees. In performing its investigative function or other related functions, the office has been granted the power under the latter section to subpoena witnesses, administer oaths, and require the production of records regarding any matter within its jurisdiction. Investigations may entail administrative or criminal allegations or a combination of those matters. Purely administrative investigations may be handled in-house by the 01G. Investigations which include possible violations of criminal statutes may be handled jointly by the OIG and a law enforcement agency. Investigations which produce evidence of violations of either the City or County ethics ordinances will result in the referral of such issues to the Miami-Dade County Commission on Ethics. Findings and recommendations from most investigations, as with audits and some other activities, are provided to the City Administration and City Commission, and posted on the OIG website. The OIG is also authorized by City Ordinance to conduct less formal inquiries such as reviews and inspections of City programs and projects. Investigation of Palm and Hibiscus Islands Stormwater Drainage Project The most significant and in-depth investigation during the past year has been the probe of the Palm and Hibiscus Neighborhood Infrastructure Improvement Project, which was the subject of substantial attention and concern by the City Commission in the months preceding the commencement of the OIG's operations. There were public airings of the significant change orders and cost increases, as well as action by the County's environmental regulatory agency, the Division of Environmental Resource Management (DERM), within the Miami-Dade County Department of Regulatory and Economic Resources (RER). The investigation, led by Special Agent Jim McGee, included more than fifty sworn interviews of City personnel, contract staff, regulatory overseers and others, review and analysis of thousands of project documents, emails, correspondence and other records, as well as relevant regulatory provisions. A draft report of the investigation has been concluded. Following its review by the affected parties for their explanations and/or rebuttals of the findings pursuant to Section 2-256(h) of the City Code, it is anticipated that the final report of the investigation will be available publicly before the end of the calendar year. Page 11 of 16 Page 1155 of 1252 Investigation of Improper Property Tax Homestead Exemptions Based on an anonymous source, the OIG conducted an investigation into possible tax fraud based upon improper Homestead Exemptions claimed on Miami Beach residential properties by a City Planning Department employee and other family members. The investigation was conducted jointly by the OIG and Miami Beach Police Office of Internal Affairs, along with the assistance of the Miami-Dade County Property Appraiser Investigation Unit The investigation determined that, due to the improper claim of Homestead Exemption on a property that had been rented out for years by the City employee in question, there was an outstanding property tax deficiency of$10,918.80. The investigation also determined that, on two other properties in Miami Beach owned by family members of that employee, there were unpaid deficiencies amounting to S69,354.39. While the County assesses and collects these tax payments, a portion of property taxes collected are credited to the City of Miami Beach. The assessments on the properties were appropriately adjusted. The City employee paid the $10,918.80 owed in full and a family member paid an additional $2,653.35. The County commenced action to recover the remaining funds owed. The case was referred to the Office of the State Attorney for Miami-Dade County, which declined criminal prosecution. It was also referred to the City Manager for possible administrative action. Investigation into Extra Day of Early Voting and Political Activity at Farm Share Turkey Giveaway Event During 2019 City Run-off Election An investigation was conducted into allegations that the addition of an extra day of early voting during the 2019 City Run-off Election to Accommodate the Orthodox Jewish Community was an abuse of power by the Mayor; and that a Farm Share Turkey Giveaway event coinciding with the election was misused for political campaign purposes. The investigation concluded that there was no abuse of power by the Mayor in promoting an extra day of early voting to all voters based on a request from the Orthodox Community. The expansion of early voting benefited all voters and was an appropriate use of the Mayor's and Commission's discretionary powers. The investigation did not find any intentional misconduct regarding the location of the Turkey Giveaway in the vicinity of a polling location, although some political activity occurred. It was noted that an appearance of impropriety could be created due to the connection of a City- sponsored event to political campaign activity. The OIG endorsed a resolution, sponsored by Commissioners Gongora and Richardson and passed by the Commission, that would prohibit all political candidates, including incumbents seeking re-election, from hosting or campaigning at such events, and would prohibit their location within 200 feet of polling places during voting periods. Investigation of Private Barber Doing Business in Police Department Based on an anonymous call on the OIG hotline, an investigation was conducted regarding a private barber operating within the Police Department. It was alleged that the barber was being paid for haircuts, manicures, pedicures, etc. during the COVID lockdown, and that the business Page 12 of 16 Page 1156 of 1252 was being promoted by a Police Major pressuring officers to patronize the operation, and who, it was suggested, might be getting compensated. Working with MBPD Internal Affairs, the OIG determined that a private barber had been given permission to conduct business in the department as a convenience to Police personnel during the lockdown. It was further determined that the barber in question did charge for his services and did also return a portion of his earnings to the Police Major for the purpose of making a contribution to a legitimate charitable organization. Although no legal violations occurred, the OIG opined that a private business being conducted on the premises of the Police Department created an appearance of impropriety. That activity has been terminated. Review of Community Outreach by the City in Connection with West Avenue Improvement Project, Phase II At the request of Commissioner Samuelian, a review was conducted of complaints received by area residents concerning community outreach efforts by the City in connection with the West Avenue Improvement Project, Phase II. The complaints were received during the process of the City's determining whether to locate a stormwater pump station and above ground components in the median at the west end of Lincoln Road. In addition to Commissioner Samuelian, Commissioners Richardson and Meiner had also voiced concerns about the City's outreach efforts on the project. The issue focused on whether sufficient, accurate information had been provided to the community regarding the design, location and functioning of the pump station and its components. The OIG determined that, despite appropriate and extensive outreach efforts by City personnel, many residents had not received accurate and complete information. City personnel agreed that extra effort can be made to communicate, especially on controversial project issues, and are continuing to revise and extend outreach efforts to insure maximum public information and engagement. Review of LGBTQ Advisory Committee Vote on Request for Funding At the request of Commissioner Richardson, a review was conducted of a vote taken by the LGBTQ Advisory Committee recommending that the City provide $150,000 in funding to the Committee for unspecified purposes. Questions were raised about possible misconduct in connection with the accuracy of Committee records concerning who on the Committee had actually sponsored the motion, following a lengthy and at times confusing discussion that lasted over two meetings. The review revealed that, although the purported originator of the motion had participated in the original wording of the motion at the request of the Chair, she did not indicate personal support of the motion that carried her name and, in fact, told the OIG that she opposed it. The confusion over the identification of the mover did not affect the outcome of a motion that passed without objection. However, it was recommended that, in future deliberations, the Committee exercise more care in adhering to parliamentary procedure to avoid such confusion. Inspection of Parking Department's Issuance of Citywide and G Parking Permits. The OIG initiated an inspection of the Parking Department's Issuance of Citywide and G Parking Permits, which allow designated users to park, free of charge at designated locations in the City. The inspection revealed instances in which the purpose of some permits had expired; that some individuals provided with permits had terminated employment with the City; and that some Page 13 of 16 Page 1157 of 1252 individuals had multiple permits, which could lead to an abuse of the privilege. It was recommended that the City adopt a clearer policy in regard to the distribution and renewal of the permits to avoid further deficiencies in this process. The City Manager provided useful information in response to the draft inspection report that included an explanation of some of the apparent lapses and his intention to take corrective action to address any deficiencies. Inspection of City Boards and Committees Membership The OIG performed an inspection of the rosters of City boards and committees and compliance with selected sections of the City Code regarding committee membership records and eligibility, with the following findings: 1. The designation of board chairpersons and/or vice chairpersons needed to be updated. The City Clerk agreed to update the City's database for these appointments and to perform monthly checks of the information. 2. A review of compliance with City board and committee membership requirements concerning all 371 voting members showed a lack of current supporting documentation concerning City residency or business affiliation in the City. The City Clerk agreed with the finding but felt that the execution of an Affiliation Affidavit, which is now completed by each member at the time of appointment, was all that his office was authorized to do, and that further inquiry into utility bills or leases would be unduly intrusive. The Clerk agreed, however, that an annual Affiliation Affidavit could be implemented to ensure compliance. 3. A number of individuals serving on two boards were also identified, most of whom appeared to qualify for an exception to the one-board limitation, due to their serving in an ex officio capacity, or on a Mayor's Committee, or on a State-sanctioned board or Ad Hoc Committee in existence for less than one year. The City Clerk explained the past and current practice of extending the designation of an Ad Hoc board beyond the original one year when approved by the City Commission for up to an additional year. Inspection of COVID-19 Rent Assistance Procedures Utilizing a variety of funding sources, the City created several distinct pools of assistance funds that began serving residents in May 2020, including Community Development Block Grant- Coronavirus funds and HOME Investment Partnership funds. After becoming aware of a case in which an applicant apparently submitted incomplete financial information, OIG staff offered assistance to the Office of Housing and Community Development(HCD). The Excel spreadsheet used in the grant approval process has now been revised by adding drop-down menus, formulas and conditional formatting to facilitate an automatic determination of eligibility once all the information is entered by HCD staff. In addition, the Inspector General helped to expedite the department's request to obtain access to the FinCertify software, which will help to reveal bank accounts in the name of an applicant who may not have accurately reported his or her finances. Training on the new software has included staff from both HCD and 01G. Going forward, financial information from both prior grant recipients and new grant applicants will be vetted, and the State Attorney's Office notified of any fraudulently obtained funds. Page 14 of 16 Page 1158 of 1252 Contract Oversight Re: RFLI 2019-318-WG This oversight action was initiated due to a complaint by a respondent to a Request for Letters of Interest(RFLI) in connection with the management of the Lincoln Road Antiques and Collectibles Market. The management contract was scheduled to expire on September 30, 2019. The complainant, one of three respondents to the RFLI, alleged that the existing contractor had violated the Cone of Silence by communicating with someone from the City's Procurement Department during the Cone period, and, in support, stated that the contractor had solicited for vendors for the Market for future dates after the expiration of the existing contract. • The inquiry by the OIG found that a month-to-month extension of the existing contract had been duly approved; that contact between the current contractor and the City had occurred only in connection with the extension; and that interviews with the participants and an examination of emails did not show any evidence of improper communication with the existing contractor. G.O. BOND OVERSIGHT The OIG has assumed an oversight role in the City's $439 million General Obligation Bond Program, in accordance with Section 2-256(f), City of Miami Beach Code, which states, "The Inspector General shall review, audit, inspect, and investigate City contracts, programs, projects, procurements, and expenditures associated with the City's General Obligation Bond Program." Shortly after his appointment, the Inspector General met with the Program Director, Maria Hernandez, who provided a broad and detailed review of the status of G.O. Bond projects and a compendium of materials pertinent to the program's planning and implementation progress. The Inspector General attended several meetings of the G.O. Bond advisory committee, including one in which he made a presentation to the group regarding the OIG's purpose and functions. In January, OIG Special Agent Jani Singer was assigned to attend meetings of the advisory board as well as internal staff meetings of departmental personnel engaged in the projects. She has appeared at G.O. Bond community outreach meetings in the South and North Beach communities, as well as attending mid-beach meetings of the Mayor's Blue Ribbon Panel on 41s' Street and the mid-beach neighborhood association. Special Agent Singer has become well- versed on procurement issues related to the G.O Bond Program, and regularly uses EBuilder in her oversight of the projects. The OIG has provided quarterly reports on its G.O. Bond oversight to the Mayor and City Commission, in compliance with the requirement in Section 2-256(j). The OIG performed a financial analysis on two of the largest G.O. Bond projects, Bayshore Park and the 72x4 Street Community Center referenced in those reports, which also raised concerns over the extensive use of change orders and design changes in those projects. The G.0 Bond Program Director has welcomed the OIG's involvement in the program and has committed to training staff on the impact of waste on G.0 Bond projects, a step which the OIG has commended. The OIG values the professional relationship it has developed with the Program Director in the commitment to improve performance and systematically remove waste. Page 15 of 16 Page 1159 of 1252 As the program progresses from "quick win" projects to the larger impact projects during a time of fiscal challenges, the OIG will continue to closely monitor change orders and conduct audits and/or investigations as warranted. CONCLUSION The City of Miami Beach Office of the Inspector General has been established and organized in fulfillment of the mandate of the City's voters. The OIG will continue to expand its oversight of City affairs, as well as its community outreach, and to involve and inform City personnel and members of the public in order to maximize the information flow that is vital to its operations. It will continue to welcome input and constructive criticism from the City Commission, City personnel, and the public, in order to improve efficiencies and to better detect fraud, waste and ,use wherever it may occur in City government. .___7z__ e''�'r- f i_C d v i a ' W: M.Centorino Da Inspector General Page 16 of 16 Page 1160 of 1252 SIGNIFICANT ACCOMPLISHMENTS 3 RAFAEL E • GRANADO, CITY CLERK SIGNIFICANT ACCOMPLISHMENTS City Clerk Division Successfully conducted the November 5, 2019 General and • Open and Responsive Government' The Office of the City Special Elections and the November 19, 2019 Run-Off Election. Clerk ensured: 1) That all required legal postings were The Office of the City Clerk assisted the Miami-Dade Elections distributed in compliance with State law and City policy; 2) Department in preparing and running Early Voting at City Hall The accurate accumulation, accessibility, and preservation of and the North Shore Branch Library locations.This election was official City documents; 3) The accurate and timely particularly demanding in that a manual recount was called preparation of City Commission and Redevelopment Agency after two candidates were found to be within 0.25%of votes of (RDA) meeting after-actions (minutes); and 4) The compliance each other. The election had every Commission Group, except with the Florida Public Records Act, also known as F.S. 119. the Mayoral Seat, go to a Run-Off election that was held on November 19, 2019. City Clerk staff provided administrative To maximize public access and transparency,the Office of the support to the City of Miami Beach General, Special, and Run- City Clerk incorporated all meeting notices that are legally Off Elections Canvassing Board. required to be published in newspapers, on its publicly accessible website, providing a single point-of-access to this Produced a 2019 Candidate Information Handbook that was information for both internal and external users. provided to all candidates for City of Miami Beach elected office. The Handbook was designed to be a single source of 66 answers to questions candidates and campaigns might have while running for office in Miami Beach, whether to reference relevant election laws or simply check filing deadlines. Developed new elections web page to facilitate easy access to general election information, The Office of the City Clerk engaged in outreach efforts with 9! candidates and campaigns by sending periodic communications throughout the election cycle. These emails voter information, and ballot included status reports about early voting and turnout statistics, question information highlighted upcoming election deadlines, and provided reminders about relevant election laws. The City Clerk's helped draft in both English and Spanish, a Voter's Guide for the November 2019 Special Election to provide objective, impartial, and fact-based explanations of the • Historical Archives: The Office of the City Clerk continued the City's ballot questions, so that City voters may, in casting their digitization of the City's historical archives.The project's focus votes, be more informed with respect to the City issues presented is to digitize and catalog the large and fascinating collection to them at the polls. of photographs, postcards, and other visual materials that make up the historical archive held by the City of Miami Assisted in the Mail-in Special Election for the creation of the Beach. A total of 5,212 historical photographs and 23,217 Allison Island and Biscayne Beach Special Taxing Districts. The Resolutions were digitized in FY 2019. The link to the Miami Office of the City Clerk drafted and published ads informing the Beach historical photographs server is public of the Mail-in Special Election and posted the results as it http://dpanther,fiu,edu/dPonther/collections/mbda In was made available by the Miami-Dade County Elections 2019, the City's digital collection received 355,187 visits. Department. • Elections: Successfully managed the City Commission Seat •Group IV Vacancy. Commission Seat Group IV was vacated Cis C. m' s'o A•e d. a oration: Produced City on January 3, 2019, when a Commissioner resigned to run Commission agenda materials for 27 Commission meetings, for Congress. The Office of the City Clerk notified the public retreats/special meetings,and workshops;oversaw the agenda of the vacant seat and accepted and posted the applications preparation process and updated the City's webpage. and résumés of 38 candidates online and e-mailed the • After-Actions' Produced 27 after-action reports for Commission information to each member of the City Commission. meetings, retreats, special meetings, and workshops. Page 1161 of 1252 SIGNIFICANT ACCOMPLISHMENTS OFFICE OF THE CITY CLERK SIGNIFICANT ACCOMPLISHMENTS CONT'D • Public Notices: Completed and forwarded for newspaper • Ordinance and Resolution Registry: Maintained a web-based publication the required legal notices within the statutory time ry Ordinance and Resolution registry to provide an easy requirements for public hearings. Published the following research tool for the public. Processed 94 Ordinances and advertisements: 52 meeting notices, 192 public hearings, and 561 Resolutions. The information is available at: 38 election information notices. https://w wv,miamibeachfl.gov/city-hall/city-clerk/public- records-request/ • Special Master: Processed 1,421 new Special Master Appeals, Building Cases, Code Cases, Fire Cases, Red Light Camera • Public Records Requests: Responded to 2,104 public records Cases, and Short-Term Rental Cases. Processed the recording of requests (PRRs). One thousand three hundred and fifty-five 160 liens. (1,355) of said requests where processed in 7 days or under. The Office coordinated and monitored all Citywide PRRs to • Records Retention: Reviewed and monitored retention schedules; ensure prompt response. Improved government transparency and identified documents eligible for destruction. Destroyed through a searchable database of the most frequently 1,709 cubic feet of records in FY 2019. Assisted the following requested public records online. Assisted staff with research City departments/divisions with records destruction: Code of official records. Compliance, Finance, Fire, Internal Audit, Office of the City Clerk, Parking, Procurement, Property Management, Public • LaserFiche/Scanning: Scanned, indexed, quality-controlled, Works, and Special Master. and published all LTCs, Lobbyists Affidavits, Board and Committees Applications, Financial Disclosure Forms, • Meeting Calendar:Maintained electronic calendar of all public Ordinances, and Resolutions into LaserFiche; giving the public meetings. Posted electronically and in nine City Hall bulletin web-based access to all these documents. boards records of all meeting notices. • Boards and Committees:Maintained records for 39 boards and • Staff: Continued supplementing staff by recruiting senior citizen committees with 484 members. Processed 153 board and interns. committee applications and 172 appointments. Posted on the Office of the City Clerk's webpage a searchable database of • LTCs:The Office of the City Clerk has continuously e-mailed and all boards and committees on a weekly basis. Created and stored LTCs throughout the year. There were 665 LTCs sent in posted on the Office of the City Clerk's webpage a database of 2019. current board and committee openings, to assist residents wishing to become involved in City government. Produced the board and committee quarterly attendance reports and the board and committee biannual reports. Generated the board and committee minority report. Published a Boards and Committee Handbook, providing guidance to newly appointed members. • Lobbyists: Registered 304 (for profit and non-for-profit) lobbyists with 310 issues. Generated lobbyist information for elected officials and the administration, collected annual registration fees and per-issue fees totaling $306,400, and processed annual financial reports as mandated by the City Code. • Annual Reports: Processed Outside Employment, Gift Disclosure, Financial Disclosures, and Lobbyist Expenditure Forms, as required by the State, the County, and the City. Page 1162 of 1252 SIGNIFICANT ACCOMPLISHMENTS Central Services Division: • Copier Equipment: Central Services Division operates high speed, high volume photocopiers, and a digital color duplicator that reproduces professional results. These information logs, Code violation forms, retiree enrollment machines not only copy, but also collate and staple finished applications, door hangers, transportation element, residential documents, achieving cost effective digital reproduction of parking permit application, residential parking permit renewal, printed materials. players/parents code of conduct, release of liability, rules and regulations, warning signs, off-duty applications, Police • Li p roduction: Central Services Division received 1,360 Department forms, meter parking forms, etc. print jobs in FY 2019 and produced 3,252,000 impressions (black and white/color), at an average of 271,000 • Recruitment.,Actively recruited and filled three(3)vacancies.The impressions per month. These jobs included: Commission Central Services team was reorganized to increase the services meeting agenda books,MB Line magazines, supplementals to provided to City departments.This organizational redesign will the City Code, After-Actions, agenda reviews, Commission provide improved service delivery, employee professional Committees meeting agendas, proposed and final capital development, and succession management over the next five budget books, open enrollment books/insurance packages, years. As a result, the average number of days to complete zoning notifications,proclamations,posters,flyers,brochures, printing jobs per months decreased from 4.28 days to 2.25 maps, business cards, courtesy notices, meeting notices days. (Board of Adjustments, Planning Board, etc.), permit cards, work permits, unsafe stickers, surveys, vehicle safety and storage receipts, inspection handouts, daily reports, Page 1163 of 1252