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OIG No. 25-15 Inspector General G.O. Bond Quarterly ReportJoseph M.Centorino,Inspector General TO:Honorable Mayor and Members of the City Commission FROM:Joseph Centorino,Inspector General DATE:September 15,2025 RE:Inspector General G.O.Bond Quarterly Report OIG No.25-15 Introduction This report is written in compliance with Section 2-256(j)of the City of Miami Beach Code, which requires that the Office of the Inspector General (OIG)prepare and submit to the City Commission on a quarterly basis a written report concerning the planning and execution of the General Obligation Bond Program,including progress reports,financial analysis,and potential risks.The OIG review is based on official city records,OIG attendance at internal implementation and oversight committee meetings,interviews with staff and other department personnel as well as regular discussions with the Program Director.This report is intended to provide the Mayor,City Commission and the public with useful information and periodic evaluations regarding the implementation of the G.O. Bond projects to date Financial Status The current financial status of the 2018 G.O.Bond program as of this report is: PARKS INFRASTRUCTURE PUBLIC [TOTAL SAFETY SPENT $55,972,481 $29,504,248 $23,556,048 $109.032,77 ENCUMBERED $20,542,956 $5,348,875 $6,312,523 $32,204,354 AVAILABLE $16,353,759 $14,650,281 $8,283,452 $39,287,492 FUTURE $80,248,184 $146,496,596 $34,815,902 $261,560,682 TOTAL $173,117,380 $196,000,000 $72,967,923 $442,085,303 Page 1 of 13 Accrued Interest Transfers PRIOR PROPOSED [TOTAL TRANSFERS /TRANSFERS /TRANSFER THIS QUARTER PARKS $6,066,106 $70,150 $6,136,256 PUBLIC SAFETY $1,746,058 $1,746,058 INFRASTRUCTURE $1,673,432 $76,748 $1,750,180 /TOTAL $9,485,596 $146,898 $9,632,494 GO#19 SOUNDSCAPE PARK-STORAGE FACILITY-As part of the 2018 GO Bond, $4.5 million was allocated to Soundscape Park,including $827,000 for the construction of a dedicated storage facility to house portable screens supporting the WALLCAST program.The construction of the new storage facility is nearing completion.However, during installation of drainage infrastructure per approved permitted plans,the contractor encountered unforeseen conflicts,resulting in additional costs.To complete the project, an additional $70,150 is required.The request will be included in the upcoming Capital Budget. GO#40 41st ST CORRIDOR IMPROVEMENTS-On December 11,2024,the City Commission adopted a resolution approving the 60%design documents,including the additional scope of work resulting from the Design Review Board,community input,and Commission direction.The additional scope includes the replacement of the temporary string lights (including infrastructure)with permanent up and down lights at every other palm tree and providing the electrical infrastructure for License Plate Reader (LPR) cameras.On February 13,2025,the G.O.Bond Oversight Committee approved the transfer of $391,278 in accrued interest from the Infrastructure category to incorporate the approved changes.Subsequently,on February 26,2025,the City Commission adopted a Capital Budget Amendment formally allocating the funds.The total estimated cost of the additional scope of work is $4.6 million.As part of the Capital Budget process for FY 26,$76,748 from the accrued interest available in the Infrastructure Category will be allocated.The remaining balance will be funded by non-G.O.Bond dollars. To date,and in addition to the allocations above,accrued interest within the 2018 G.O. Bond has gone towards overcoming budget gaps in the Par 3/Bayshore Park ($4,466,106),Fire-station #1 ($1,746,058),and 23°Streetscape ($1,282,154), Soundscape Park sound system ($1,6000,000)and 41 Street Corridor Improvements ($391,278)projects.The remaining balance of accrued interest is $1,610,949. Page 2 of 13 Tranche 2 Expenditures In June 2024,the City Commission,via Resolution #2024-33099,approved an initial Declaration of Intent to issue the second tranche of G.O.Bond funds,in the amount of $20,030,000,allowing the continuation of five projects from the Neighborhoods & Infrastructure category:Street Tree Master Plan,Sidewalk Improvements,Street Paving, Seawalls &Shorelines,and Traffic Calming. As of July 2025,$3.1 million has been expended and $2.5 million has been encumbered for a total of $5.6 million of the $20 million Tranche 2 funds.In order to advance additional projects within this category,the administration will be asking for an expansion of the previously approved Tranche 2 Declaration of Intent to Issue. Notable Project Delays: Marine Patrol Facility The Marine Patrol Facility is currently in the design stage.The original project budget was $2.7 million,and the original construction budget was $1.6 million.After the Design Review Board made its recommendations,the construction budget increased to $4.6 million.In June 2024,M.C.Harry &Associates,the NE Consultant,provided the City with 90%construction documents.The 90%construction documents increased the estimated construction budget to $9,314,212 making the total budget estimate $13,433,792.The amount budgeted for the project is $8,800,056.The 90%construction documents have been submitted for permits by Miami-Dade County DERM,the City Building Department, FDEP and Army Corps.The construction documents are being revised based on comments from the regulatory agencies. Staff members continue to analyze value engineering strategies and cost reduction options to reduce the budget shortfall and move the project forward.However,it was reported this quarter that the identified value engineering options do not reduce the estimated construction cost and the budget remains with a shortfall of $4.2 million.The project,scheduled to begin construction in the third quarter of 2025,is now delayed until January 2026. Fire-station #1 The OIG has previously reported on the waste of taxpayer money due to site-changes and delays on the Fire-station #1 project.A brief history and assessment of the status of the project is warranted in this update. Page 3 of 13 2015-2016 The need to replace Fire-station #1 was identified in 2015.The current station at 1051 Jefferson Avenue,built in 1967,no longer meets the operational requirements of the MBFD.The facility requires complete replacement for the following reasons: 1.It does not meet National Fire Protection Association (NFPA)standards that are needed for building certification. 2.It sits 2.5 feet below FEMA base flood elevation (BFE)standards and has the highest vulnerability rating amongst all twelve Miami Beach fire and police facilities. 3.It is not built to sustain major storm conditions,potentially rendering it uninhabitable after a hurricane. 4.It has limited access for emergency vehicles to efficiently enter and exit apparatus garage bays. 5.It is too small to fit critical equipment,including ladder trucks necessary to respond to high rise condos and hotels. 6.It does not accommodate the parking that is needed for MBFD personnel. 7.It has no room for expansion or growth that can accommodate current and future equipment,vehicle,and personnel needs. Since 2015,the City has engaged in an exhaustive search of both city-owned and privately-owned properties to find a new location for a future Fire-station #1.Overall,a total of nine sites were analyzed during 2015 and 2016,and eight additional sites were analyzed between 2018 and 2024 for a total of 17 sites studied. The City retained Borelli and Partners in February 2015 to determine the overall condition of the existing Fire-station #1.In July 2015,the company issued its facilities assessment report,which recommended a full demolition.The company also created a conceptual design which was discussed with the City Commission on January 13,2016.That design was for a new facility either on the existing site at 1051 Jefferson Avenue or four potential alternative sites on City-owned property.Those sites included: 1.225 Washington Avenue 2.The former Property Management site at Flamingo Park and Michigan Avenue 3.The parking lot (P10)at Flamingo Park and Michigan Avenue next to the baseball field 4.The parking lot (P9)east of the Police Athletic League Facility in Flamingo Park on 11 Street. The Commission referred the siting of the project to the Neighborhood/Community Affairs Committee as well as the Finance and Citywide Projects Committee.Between both Committees the project was discussed 13 times.The project was also discussed with the Flamingo Park Neighborhood Association and the South of Fifth Neighborhood Association,after which it was decided that the P9 parking lot in Flamingo Park was the most viable option.All other City-owned options were eliminated.However,the Page 4 of 13 Neighborhoods/Community Affairs Committee asked the Administration to consider four additional privately-owned properties as alternative sites.Those properties were considered and assessed as follows: 5.727 Collins Avenue -This property was deemed unsuitable because it comprises four individual,non-contiguous parcels. 6.960 Alton Road (2 Parcels)-This property was deemed unsuitable as the required ramp would reduce the site's available space once the apparatus bay is set at BFE +3 elevation. 7.835 -855 Alton Road-This property was not considered suitable as it was only 0.48 acres and would require a height waiver for a three-story Fire-station design;and 8.749 -755 Washington Avenue-This property was not considered suitable as it was only 0.48 acres and would require fire trucks to back in from the heavy traffic on Washington Avenue. Both Committees accepted the P9 lot in Flamingo Park as the best site option and asked staff to return to Committee with more details.The Administration retained AECOM to develop design concepts which were presented to both Committees.The Finance Committee made a recommendation regarding one concept,but the Neighborhoods Committee did not.The item went back to the Commission and was then withdrawn. 2018 to Present In 2018,Fire-station #1 was again identified as a facility in desperate need of repair or reconstruction and a critical facility to include in the 2018 General Obligation Bond (GO Bond)Public Safety bond category for voters to consider approving.The new Fire-station #1 would need to meet National Fire Protection Association standards,endure category 5 hurricanes,and accommodate the rapid growth in southern Miami Beach.After the G.O.Bond was approved by the voters,the Administration once again began a search for an adequate site. The research and site analysis performed during 2015 and 2016,plus the voter response to the referendum in 2018,which prioritized the need for a full-service,Category 5 Fire- station for the South Beach neighborhood,led to the creation of the following selection criteria as the "optimum"site for a new Fire-station: 1.SERVICE:The site must be centrally located within the service area to maximize response times; 2.SIZE:The site should be larger than ¾of one acre to provide proper access, meet Category 5 floor height requirements,provide storage of vehicles and equipment and parking for MBFD personnel; 3.ACCESS:Two adjacent roadways for vehicular and equipment access; 4.TIME:The site can have no major impediments which negatively impact response times; 5.COST:The site must be financially feasible. Page 5 of 13 The South Shore Community Center ("SSCC")was the only location which met all of the elements of the above criteria.This site was selected after the evaluation of multiple sites during the conceptual site planning and feasibility phase because of the size,shape, access to frontages on the three sides on 6th Street,Jefferson Avenue and Meridian Avenue,and its central location,which offered the possibility of improved response time towards the south,the Macarthur Causeway,and Palm and Hibiscus Islands. Construction of the new Fire-station #1 facility at this site required the demolition of the existing South Shore Community Center and included the construction of a temporary daycare facility within Flamingo Park. In 2019,the Historic Preservation Board reviewed the history of the South Shore Community Center and determined that the building was a non-contributing structure. This was reaffirmed in 2021 when the Historic Preservation Board voted by a 4/3 majority to maintain the South Shore Community Center's non-contributing designation. Subsequently,the City Commission passed Resolution 2021-3145 which stated that the SSCC had been designated as the intended location for a new Fire-station #1 as part of the 2018 GO Bond. Since 2015,there have been more than 105 public meetings during which the Fire-station #1 project has been discussed,including 51 City Commission meetings and 48 meetings with the G.O.Bond Oversight Committee between 2019 and 2025. On September 13,2023,the Mayor and City Commission adopted Resolution No.2023- 32775 approving and authorizing the Mayor and City Clerk to execute a Guaranteed Maximum Price (GMP)Amendment No.2,to the agreement between the City of Miami Beach,Florida and Kaufman Lynn Construction,Inc.,for the construction of the Fire- station #1 Project at the SSCC,the construction of temporary facilities for the Rainbow Intergenerational Learning Center (daycare)currently located at the South Shore Community Center,and the provision of the infrastructure for the future installation of the Apollo mural on the new Fire-station's facade. The cost for the amendment to the agreement was $24,991,845,plus a five percent owner's contingency in the amount of $1,249,592,for a total of $26,241,437.Additionally, the time to achieve substantial completion was changed from 420 days to 720 days.The total project budget was estimated to be $33,563,588.With this amendment,the project moved from design to the construction phase.It should be noted that the City entered into a grant agreement with the Florida Department of Environmental Protection (No. 22SRP35)for the Fire-station #1 project in the amount of $10,913,860.00.The agreement was for a project that "will construct a new Category 5 hurricane resilient Fire-station that is built over 8 ft above FEMA-required base flood elevation standards ..."The SSCC location fulfilled the terms of the grant agreement. In spite of the exhaustive process that staff had undertaken to find a site for the Fire- station,as well as the expenditure of millions of dollars in design-related activities,efforts to prevent the demolition of the South Shore Community Center and the building of the Fire-station began to increase.At its December 13,2023,meeting,the City Commission Page 6 of 13 considered a resolution to stop the contemplated demolition of the Community Center for the purpose of building the new Fire-station #1 at that site and,instead,rebuild Fire- station #1 at its existing location,a site previously determined to be inadequate.Once again,the Administration informed the Commission that the size of the property for the existing location of Fire-station #1 at 1045 Jefferson Avenue was insufficient (21,000 square feet)to accommodate the program for the new Fire-station #1 facility,rendering the proposition to reconstruct on the existing site unfeasible.The City Commission deferred the item and discussion to the next meeting on January 31,2024,for the purpose of identifying alternative locations for the facility. On January 31,2024,the Mayor and Commission further discussed the potential relocation of the Fire-station #1 project from the proposed 6th Street site to an alternate location.The Mayor and Commission adopted Resolution No.2024-32903,directing the Administration to pursue two parallel paths for the Fire-station #1 Project:(1)continue to execute the current Fire-station #1 Project at the South Shore Community Center site; and (2)continue to explore alternative sites for the new Fire-station #1 Project and directing the Administration to return to present its findings at the May 15,2024,meeting to enable the Commission to have all readily available information to inform its decision as to the option that would be in the best interests of the City and its residents. In the weeks following the January 31,2024 Commission Meeting,and at the direction of the Commission,the Administration and project team,including the design consultant and construction manager,commenced another review of potential alternate sites for the Fire- station #1 project.CIP staff spent an additional 324.5 hours in an effort to find an alternate site and an additional 295 hours of senior management time for the same purpose.The sites considered included: 1.Flamingo Park at Alton Road,between 11th and 12th Street (Flamingo Park) 2.1000 Alton Road (Whole Foods) 3.1100 5th Street (Pier 1) 4.960 Alton Road 5.550 9th Street and 900 Washington Avenue (City owned Surface Parking Lot P-12) 6.1260 Washington Avenue 7.429 Lenox Avenue On February 21,2024,the Mayor and Commission adopted Resolution No.2024-32927, directing the City Administration to study the possible relocation of the new Fire-station #1 project to a City-owned site located at the western boundary of Flamingo Park at Alton Road between 11th and 12th Streets (Flamingo Park Site),taking into account response times,the portability of the state grant,time and cost impacts of moving the project to the Flamingo Park site,as well as community input,and further directing the administration to work with the Office of the City Attorney to determine the requirements for a countywide voter referendum in August 2024,and to prepare the necessary resolutions to proceed with the referendum should the Commission decide to relocate the project to the Flamingo Park site.As mandated by the Miami-Dade County Charter (Article 7),a county-wide voter referendum would be required prior to locating the Fire-station #1 facility within the limits of public park space. Page 7 of 13 On April 3,2024,the City Manager advised the Commission as follows: "All things being equal,and discounting concerns related to time and cost impacts,the Flamingo Park and Whole Foods sites offer viable alternative sites for the Fire-station No. 1 project.However,with no current additional funding sources,considering the immediate and future needs of the Fire Department and the age of the existing Fire- station No.1,the Administration continues to recommend that the new Fire-station No.1 project,currently in the construction phase,remain at the currently proposed South Shore Community Center site,as designed and previously approved." (Emphasis added.) The site analysis provided to the Commission indicated that building Fire-station #1 as designed at the South Shore Community location would cost an additional $2,000,000 and could be completed by fall 2026 as it was construction ready.The additional $2 million was due to construction cost escalation,additional professional services and related fees as a result of the Commission directives and consequent delays. The City Manager also advised the Commission that $4,000,000 had already been spent on the project,including $2.1 million allocated in G.O.Bond funds,and that moving the Fire-station #1 project to Flamingo Park would cost an estimated additional $15-$20 million due to costs associated with construction escalation,additional design and pre- construction services,construction scope,impacts to the track,locker-room building,field house,artificial turf and drainage,fees and other incidentals ($7-9 million for the Fire- station and $8-10 million for park modifications).The Commission was also advised that relocation of the facility to this site could result in at least 24-30 months of project delays from the original project timeline,for a new completion date of fall 2028,inclusive of park modifications. Notwithstanding the increase in costs to relocate the site to Flamingo Park,the millions of dollars that had already been spent,expert opinions from staff and consultants,and consistent advocacy from the G.O.Bond Oversight Committee in favor of the SSCC location,the Commission voted in June 2024 to proceed with the relocation of the Fire- station #1 to the Flamingo Park site,provided that the required voter referendum was approved by a majority of both Miami-Dade County and Miami Beach voters.In August 2024,the voters approved placing the Fire-station within Flamingo Park and on September 11,2024,the Commission directed the Administration to proceed with the new location. The original contract for design services,which was awarded to Wannemacher Jensen in July 2019,was $999,917.00 and covered the planning,design,studies and preparation of the design criteria package for the new Fire-station #1 at the South Shore Community Center site.The contract was amended on October 26,2022,to add $571,037 for additional services and again on March 27,2023,to add another $93,669 for design services related to the integration of the Apollo Mural into the facade of the building, bringing the total contract amount,at the time of the Commission directive to pursue Page 8 of 13 relocation to Flamingo Park,to $1,664,623.Amendment 3 to the contract,the redesign of the Fire-station to fit into Flamingo Park,added an additional $2,611,752.34, bringing the total amount of the contract to $4,276,375. The conceptual design phase for the Fire-station #1 project in its new location was completed on May 23,2025.Then,at its July 23,2025,meeting,the Commission apparently voted to remove both the Flamingo Park and South Shore Community Center sites from further consideration (while acknowledging that nothing would prevent reconsideration),and directed the City administration to do the following: •Prepare a Request for Letters of Interest (RFU)to determine whether private property owners are interested in partnering with the City and including th Fire- station as part of their development projects. •Allow 60 days for receiving ideas from the community,elected officials,and Administration and an additional 60 days to explore and evaluate the feasibility of the ideas. •Return to Commission with all viable options,excluding Flamingo Park and South Shore Community Center,for review and a vote. The 120-day period concludes on November 20,2025.The next scheduled City Commission meeting to review the findings is December 17,2025,unless a Special Commission Meeting is called earlier. The Tranche 1 appropriation from the G.O.Bond for this project was $5,746,058.To date, $3,409,459.47 has been expended and $1,858,868.77 is encumbered leaving only $477,729.76 of the Tranche 1 money.Another amendment to the contract would be needed to cover the cost of again considering alternative sites. The chart below details the major expenditures beginning in fiscal year 2015. Fiscal Vendor Total Paid Services Year 2015 Borelli and $51,142 Facilities Assessment and Partners Conceptual Design 2016 AECOM and $58,950 Design Services J.B.Hale 2020 Wannemacher $53,323.65 Design Services Jensen Architects,Inc. 2021 Wannemacher $120,695.14 Design Services Jensen Architects,Inc Kaufman,Lynn $20,000 General Contractor Construction Page 9 of 13 2022 Wannemacher $245,584.93 Design Services Jensen Architects,Inc. 2023 Wannemacher $719,914.31 Design Services Jensen Architects,Inc. Kaufman Lynn $60,000 General Contractor Construction Walker $7500 Parking and Mobility Consultants,Consultant Inc. Radise $11,133.68 Geotechnical/Environmental International,Services L.C. R.E.Chisolm $30,159.80 Professional Services and Architects Site Analysis for Childcare Relocation 2024 Wannemacher $186,814.35 Design Services Jensen Architects,Inc. Kaufman Lynn $1,122,463.76 General Contractor Construction R.E.Chisholm $54,652.50 Professional Services and Architects Site Analysis for Childcare Relocation 2025 Wannemacher $264,190.55 Design Services Jensen Architects Minor vendors such as Miami-Dade County Department of Solid Waste,Miami-Dade Water and Sewer ($58,775.64 for permitting),GBCI (Green Business Certification,Inc.) Legal and Title Search ($49,899),Code Compliance Services ($7,182),additional refurbishment of current Fire-station #1 ($58,950),Post Cards and Mail ($6,171)and CIP and GOB Fees ($1,206,329.34)account for another $1,387,306.45. As of the time of this report,$4,796,765.92 has been spent and an additional $1,858,868.77 is encumbered,albeit on hold,while staff follows new direction from the Commission to consider alternative sites.These expenditures do not include the nearly $500,000 in non-G.O.Bond funds that has been spent for repairs and service to the existing Fire-station,nor do they include the huge amount of City staff time involved in the process to date.If the South Shore Community Center and Flamingo Park are no longer under consideration,and assuming that a new site can be located,it is probable that another redesign will be necessary as staff has estimated that only 10%-15%of the current design would be useable. Page 10 of 13 OIG Opinion and Recommendation It is the OIG's opinion that the public safety interest in the expeditious construction of a needed state-of-the-art Fire-station and the need to ensure the prudent expenditure of taxpayer funds have not been served by this process.Unnecessary and/or inefficient use or expenditure of public resources constitutes waste.This process appears to have wasted millions of taxpayer dollars and is on the verge of expanding that loss.Yet,it has failed to properly execute a necessary public safety project upon which the collective wellbeing of the community depends. The apparently well-intended move to delay discussion of the project until November of this year,in a quest to find yet another possible site for Fire-station #1,provides little hope for a foreseeable conclusion to this extensive,wasteful process.The likelihood that another suitable site will be found for this facility in an area dense with residents and commerce,without triggering similar "not in my backyard"reactions from area residents or other local interests is remote.This factor threatens further delay and cost escalation. The OIG has no role to play in the selection of the best available site for this facility,but pursuant to a directive from a City ordinance that provides,"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,"it is squarely within the OIG's mission to sound an alarm when a City project is fiscally and operationally out of control and headed for further depredation. The Fire-station #1 project has required difficult decisions involving valued and competing public interests.The OIG understands that there are legitimate arguments for and against the previously considered sites,as there likely would be for any future site that may be identified for the project.The OIG does not question that many of the decisions and opinions that have affected this project have emerged from good-faith efforts to accommodate strong community interests and convictions.But an honest appraisal and sober cost-benefit analysis of where these efforts have led and the limited options available should now create a consensus for ending the waste. In OIG No.25-05,the OIG reported on the wasteful practice of late-stage design changes on many City projects and their impact on project timelines and budgets.The OIG recommended that the City study the cumulative impact of this practice on project costs and timelines,weigh the costs and benefits of the practice and assess whether changes in the approval process for G.O.Bond and other City projects are warranted. The Mayor and City Commission in Resolution No.2024-33144 and the Office of the Inspector General in OIG Report Nos.24-05 and 24-12,both acknowledged the importance of ensuring that critical infrastructure projects proceed without interruptions or modifications once they have reached advanced stages of design or are shovel-ready as was the Fire-station #1 project.This recognition led to the adoption of a useful "Stop the Pause"ordinance,which established more stringent voting thresholds for actions that Page 11 of 13 could pause,delay,stop,or materially modify critical infrastructure projects at advanced stages. Although the ordinance,as adopted,did not apply to non-infrastructure projects,such as Fire-station #1,the OIG supported the ordinance as a positive step toward greater fiscal responsibility and suggested that its successful implementation could lead to its extension to cover additional projects,including certain ones in the 2018 General Obligation Bond such as Fire-station #1. At the G.O.Bond Oversight Committee meeting in July,the City's CFO met with Committee members to discuss,among other things,project cost escalation,and the challenges the City is facing in its capital budget.The City is reworking its capital budget projections on all of its large-scale capital projects,not just the ones in the G.O.Bond program.While there have been gaps in some of the G.O.Bond projects that have been filled,the same issues exist with respect to other projects in the City.As priorities shift and costs escalate,it is expected that some of the promised G.O.Bond projects may not be delivered due,in part,to avoidable waste in the execution of other planned projects. The Fire-station #1 project,with its anticipated impact on the City's ability to plan and execute much-needed future municipal projects,is the most notable example of waste among current G.O.Bond projects.To ensure optimal use of resources in upcoming projects,the OIG recommends that the scope of the "Stop the Pause"ordinance be expanded to cover more of the major projects undertaken by the City. 'spector General \~,,.._~ "u o::u------ atfl,hr Date cc:Karen Riva,Chairperson of the G.O.Bond Oversight Committee Eric Carpenter,City Manager Thais Vieira,Interim Director G.O.Bond Program Ricardo Dopico,City Attorney OFFICE OF THE INSPECTOR GENERAL,City of Miami Beach 1130 Washington Avenue,6th Floor,Miami Beach,FL 33139 Tel:305.673.7020 •Hotline:786.897.1111 Email:CityofMiamiBeachOIG@miamibeachfl.gov Website:www.mbinspectorgeneral.com Page 12 0f 13