Ordinance 2021-4409 ORDINANCE NO. 2021-4409
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE
CITY CODE, ENTITLED ADMINISTRATION, BY AMENDING ARTICLE
VI THEREOF, ENTITLED PROCUREMENT, BY AMENDING DIVISION
3 THEREOF, ENTITLED CONTRACT PROCEDURES, BY AMENDING
SECTION 2-378, ENTITLED "INSPECTOR GENERAL CONTRACT
ALLOCATION," TO REPEAL PROVISIONS RELATING TO THE
CONTRACT ALLOCATION METHODOLOGY UTILIZED FOR
FUNDING THE OFFICE OF INSPECTOR GENERAL; PROVIDING FOR
REPEALER, SEVERABILITY, CODIFICATION AND AN EFFECTIVE
DATE.
WHEREAS, on November 6, 2018, the City's voters approved an amendment to
the City Charter, creating Article IX, which creates the City of Miami Beach Office of
Inspector General; establishes the functions of the office; provides the Inspector General
with the power to subpoena witnesses, administer oaths, and require production of
records, in order to conduct its investigations; and provides that the Inspector General's
appointment, term, functions, authority, and powers shall be further established by
Ordinance; and
WHEREAS, on February 23, 2019, the Mayor and City Commission adopted
Ordinance No. 2019-4239, to implement the provisions of the newly created Article IX of
the City Charter; and
WHEREAS, on January 15, 2020, the Mayor and City Commission adopted
Ordinance No. 2020-4325 which created a dedicated fund for the activities and operations
of the Office of Inspector General (the "OIG Fund"), with allocations to the OIG Fund
consisting of a specified percentage of the contract expenditures made under certain City
contracts; and
WHEREAS, the Administration and the Inspector General desire to repeal the
contract allocation methodology codified in Section 2-378 of the City Code, to permit the
City to adopt a more flexible internal service fund methodology for annual funding of the
Office of Inspector General, similar to the approach utilized with other departments such
as City Clerk-Central Services, Fleet Management, Information Technology, Property
Management, Risk Management, and Medical & Dental Insurance; and
WHEREAS, the proposed Ordinance would otherwise leave intact the required
contract provisions which provide audit and other rights to the Inspector General in
connection with City contracts and competitive solicitations.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
Section 1. That Chapter 2, entitled "Administration," Article VI thereof, entitled
"Procurement," Division 3 thereof, entitled "Contract Procedures," of the Code of the City
of Miami Beach is hereby amended by creating Section 2-378 as follows:
CHAPTER 2
ADMINISTRATION
ARTICLE VI. PROCUREMENT
Sec. 2-378 — Inspector General Contract Provisions.—Aeration.
a. The inspector general may, on a random basis, perform reviews, audits, inspections,
or investigations of any past, present, or proposed city contracts. All appropriations
. e- e . "a n e -e . _ L A. _ . .
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expended, except as approved by the city commission pursuant to a budgeted
b. The amount allocated to the OIG fund shall consist of one half of one percent(.5%)of
contract amendments or change orders, except as provided herein. The total amount
( ) auditing contracts;
(2) insurance contracts;
( ) contrasts for legal services;
( ) contrasts for financial advisory services;
( ) leases and facility rental agreements;
(6) management agreements;
(7) revenue generating contracts, including, without limitation, concession
agreements;
(8) federal, state and local government agreements, including grants;
(9) interlocal agreements;
(10) grant agreements; and
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(11) contracts for emergency purchases pursuant to section 2 396 of the city
code.
. _ .
the OIG fund.
ad. All city contracts and competitive solicitations shall include the following contract
language:
1. Pursuant to Section 2-256 of the code of the city of Miami Beach, the city has
established the Office of the Inspector General which may, on a random basis,
perform reviews, audits, inspections and investigations on all city contracts,
throughout the duration of said contracts. This random audit is separate and
distinct from any other audit performed by or on on behalf of the city.
2. The Office of the Inspector General is authorized to investigate city affairs and
empowered to review past, present and proposed city programs, accounts,
records, contracts and transactions. In addition, the Inspector General has the
power to subpoena witnesses, administer oaths, require the production of
witnesses and monitor city projects and programs. Monitoring of an existing city
project or program may include a report concerning whether the project is on time,
within budget and in conformance with the contract documents and applicable law.
The Inspector General shall have the power to audit, investigate, monitor, oversee,
inspect and review operations, activities, performance and procurement process
including but not limited to project design, bid specifications, (bid/proposal)
submittals, activities of the contractor, its officers, agents and employees,
lobbyists, city staff and elected officials to ensure compliance with the contract
documents and to detect fraud and corruption.
3. Upon ten (10) days written notice to the contractor, the contractor shall make all
requested records and documents available to the Inspector General for inspection
and copying. The Inspector General is empowered to retain the services of
independent private sector auditors to audit, investigate, monitor, oversee, inspect
and review operations activities, performance and procurement process including
but not limited to project design, bid specifications, (bid/proposal) submittals,
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activities of the contractor, its officers, agents and employees, lobbyists, city staff
and elected officials to ensure compliance with the contract documents and to
detect fraud and corruption.
4. The Inspector General shall have the right to inspect and copy all documents and
records in the contractor's possession, custody or control which in the Inspector
General's sole judgment, pertain to performance of the contract, including, but not
limited to original estimate files, change order estimate files,worksheets, proposals
and agreements from and with successful subcontractors and suppliers, all project-
related correspondence, memoranda, instructions, financial documents,
construction documents, (bid/proposal) and contract documents, back-change
documents, all documents and records which involve cash, trade or volume
discounts, insurance proceeds, rebates, or dividends received, payroll and
personnel records and supporting documentation for the aforesaid documents and
records.
5. The contractor shall make available at its office at all reasonable times the records,
materials, and other evidence regarding the acquisition (bid preparation) and
performance of this contract, for examination, audit, or reproduction, until three (3)
years after final payment under this contract or for any longer period required by
statute or by other clauses of this contract. In addition:
i. If this contract is completely or partially terminated, the contractor shall
make available records relating to the work terminated until three (3) years
after any resulting final termination settlement; and
ii. The contractor shall make available records relating to appeals or to
litigation or the settlement of claims arising under or relating to this contract
until such appeals, litigation, or claims are finally resolved.
6. The provisions in this section shall apply to the contractor, its officers, agents,
employees, subcontractors and suppliers. The contractor shall incorporate the
provisions in this section in all subcontracts and all other agreements executed by
the contractor in connection with the performance of this contract.
7. Nothing in this section shall impair any independent right to the city to conduct
audits or investigative activities. The provisions of this section are neither intended
nor shall they be construed to impose any liability on the City by the contractor or
third parties.
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SECTION 2. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are
hereby repealed.
SECTION 3. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity. portions of this ordinance.
SECTION 4. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach,
and it is hereby ordained that the provisions of this ordinance shall become and be made
a part of the Miami Beach City Code. The sections of this ordinance may be renumbered
or relettered to accomplish such intention, and the word "ordinance" may be changed to
"section," "article," or other appropriate word.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect on the / day of p , 2021.
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PASSED AND ADOPTED this a/ day of 4001 , 2021.
ATTEST:
Dan Gelber, Mayor
2sa.1c
Rafae E. Gr nado, deftly/Clerk
Underline denotes additions cr.:: ;y'
Sigh denotes deletions tly�c�mor TEo' APPROVED AS TO
FORM&LANGUAGE
&FOR EXECUTION
(Sponsored by Commissioner Mark Samuelian) 7.4
City YNZ Imo.
5
Ordinances-R5 E
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Raul J.Aguila, Interim City Manager
DATE: April 21, 2021
10:30 a.m. Second Reading Public Hearing
SUBJECT:AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CITY
CODE, ENTITLED ADMINISTRATION, BY AMENDING ARTICLE VI
THEREOF, ENTITLED PROCUREMENT, BY AMENDING DIVISION 3
THEREOF, ENTITLED CONTRACT PROCEDURES, BY AMENDING
SECTION 2-378, ENTITLED "INSPECTOR GENERAL CONTRACT
ALLOCATION," TO REPEAL PROVISIONS RELATING TO THE
CONTRACT ALLOCATION METHODOLOGY UTILIZED FOR FUNDING
THE OFFICE OF INSPECTOR GENERAL; PROVIDING FOR REPEALER,
SEVERABILITY, CODIFICATION AND AN EFFECTIVE DATE.
SUPPORTING SURVEY DATA
N/A
Applicable Area
Not Applicable
Is this a"Residents Right Does this item utilize G.O.
to Know" item. pursuant to Bond Funds?
City Code Section 2-14?
No No
Legislative Tracking
Office of Management and Budget/Office of the City Attorney
Sponsor
Commissioner Mark Samuelian
ATTACHMENTS:
Description
❑ Memorandum
❑ Ordinance
Page 377 of 2709
MIAMI B
City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Dan Gelber and Members of the City Commission Second Reading
FROM: Raul J. Aguila, Interim City Manager
DATE: April 21, 2021
SUBJECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CITY CODE, ENTITLED
ADMINISTRATION, BY AMENDING ARTICLE VI THEREOF, ENTITLED
PROCUREMENT, BY AMENDING DIVISION 3 THEREOF, ENTITLED CONTRACT
PROCEDURES, BY AMENDING SECTION 2-378, ENTITLED "INSPECTOR
GENERAL CONTRACT ALLOCATION," TO REPEAL PROVISIONS RELATING TO
THE CONTRACT ALLOCATION METHODOLOGY UTILIZED FOR FUNDING THE
OFFICE OF INSPECTOR GENERAL; PROVIDING FOR REPEALER,
SEVERABILITY, CODIFICATION AND AN EFFECTIVE DATE.
RECOMMENDATION
The Administration recommends approval of the Ordinance on Second Reading.
BACKGROUND
On November 6, 2018,the City's voters approved an amendment to the City Charter creating the
City of Miami Beach Office of Inspector General (OIG). On February 23, 2019, the City
Commission adopted Ordinance No. 2019-4239 which created the 01G. On January 15, 2020,
the City Commission adopted Ordinance No. 2020-4325, which created a dedicated fund for the
activities and operations of the OIG Fund, as well as a funding mechanism consisting of a
specified percentage of the contract expenditures made under all City contracts (except for some
express exceptions).
ANALYSIS
The current contract allocation methodology consists of charging one half of one percent (0.5%)
of the contract amounts expended by the City pursuant to all City contracts, except for the
following exceptions: auditing contracts; insurance contracts; contracts for legal services;
contracts for financial advisory services; leases and facility rental agreements; management
agreements; revenue generating contracts; federal, state, and local government agreements,
including grants; interlocal agreements; grant agreements; and contracts for emergency
purchases. The total amount allocated to the OIG Fund for any individual City contract is capped
at $50,000. The contract fee allocations are treated as revenue to the OIG Fund and are
exclusively dedicated for the operations and activities of the 01G.
The idea behind the Ordinance was to create a consistent, recurring funding mechanism that,
over time,would make the OIG self-sustaining. The OIG's total General Fund budget for FY 2021
is$1,459,000; 50%funded by the City and 50%funded by the 0.5% contract allocation. The goal
was to fund 100% of the OIG's General Fund budget from the 0.5% contract allocation, once we
could more accurately determine how much revenue to the OIG the contract allocation will
generate at the end of FY 2021.
Page 378 of 2709
AMENDING SECTION 2-378, ENTITLED "INSPECTOR GENERAL CONTRACT ALLOCATION," TO
REPEAL PROVISIONS RELATING TO THE CONTRACT ALLOCATION METHODOLOGY UTILIZED
FOR FUNDING THE OFFICE OF INSPECTOR GENERAL
April21, 2021
Page 2
Following the conclusion of the 2020 fiscal year, the amount of administrative work necessary to
support the current contract fee allocation has led to several discussions between the OIG and
the Administration regarding the efficiency of the current methodology. Following these
discussions, the Inspector General and the Administration recommend repealing the contract
allocation methodology codified in Section 2-378 of the City Code, to permit the City to adopt a
more flexible internal service fund methodology for annual funding of the Office of Inspector
General, similar to the approach utilized with other departments such as City Clerk Central
Services; Fleet Management; Information Technology; Property Management; Risk Management;
and Medical & Dental Insurance.
The proposed change in methodology would be implemented beginning with the 2022 fiscal year
since the current methodology was used for the development of the 2021 fiscal year budget.
Under the new methodology, the OIG's total General Fund budget in FY 2022 would be allocated
out to departments on a budget basis (total department budget less payroll costs). This change
would not result in the General Fund contributing more than the current$730,000 in FY 2021 and
would most likely be somewhat less using the new allocation basis.
The proposed Ordinance amendment would otherwise leave intact the required contract
provisions which provide audit and other rights to the Inspector General in connection with City
contracts and competitive solicitations.
On March 17, 2021, the City Commission unanimously approved the proposed ordinance
amendment at first reading.
CONCLUSION
The Inspector General and the Administration recommend repealing the contract allocation
methodology codified in Section 2-378 of the City Code, to permit the City to adopt a more flexible
internal service fund methodology for annual funding of the 01G.
RJA/JW
Page 379 of 2709