2008-26834 ResoRESOLUTION NO. 2008-26834
A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, APPROVING AND AUTHORIZING EXECUTION
OF A SETTLEMENT AGREEMENT IN THE AMOUNT OF
$22,988.57 BETWEEN AND AMONG THE FORMER
MEMBER JURISDICTIONS OF THE SOUTH FLORIDA
EMPLOYMENT AND TRAINING CONSORTIUM AND THE
STATE OF FLORIDA AGENCY FOR WORKFORCE
INNOVATION.
WHEREAS, on July 1, 2004, Miami Dade County, Monroe County, the
City of Miami, the City of Miami Beach, and the City of Hialeah, entered into a
Consortium Agreement which created the South Florida Employment and
Training Consortium; and
WHEREAS, during a routine audit of federal funds awarded to the
Consortium for its first year ending June 30, 2005, the Consortium's independent
auditor discovered a number of unjustified prepaid transportation costs in the
Consortium's prepaid transportation account; and
WHEREAS, these events took place under the previous administration
that managed the program with the predecessor regional workforce board and
the predecessor management team of that board; and
WHEREAS, on September 27, 2006, a total of $651,282.00 was identified
in undistributed and unjustified cards that were considered disallowed costs, and
this amount needed to be repaid using anon-federal funding source; and
WHEREAS, as of June 30, 2007, a substantial portion ($305,652.50) of
the aforementioned disallowed costs was subsequently collected by the South
Florida Workforce Investment Board staff on behalf of all the former members of
the Consortium and these monies have been deposited in a Miami Dade County
Trust Account for the benefit of the five former members of the Consortium; and
WHEREAS, it was determined that the five former members of the
Consortium currently owe a combined total of $343,688.00, with the City of Miami
Beach responsible for 6.7 percent ($22,988.57); and
WHEREAS, the Administration would recommend the Mayor and City
Commission approve and authorize the execution of the attached Settlement
Agreement in the amount of $22,988.57.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND
CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the
Mayor and City Commission hereby approve and adopt the resolution which
approves the execution of a settlement agreement of the pending litigation
between and among the former member jurisdictions of the South Florida
Employment And Training Consortium and the State of Florida Agency for
Workforce Innovation,
2008.
PASSED and ADOPTED this 25th
AT EST:
P~~
day of
June
CITY CLERK
Robert Parcher
A
Matti Herrera Bower
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
,~---~ ~ ~G G ~`
City Atto Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving the settlement agreement between and among the former members of the
South Florida Employment and Training Consortium and the State of Florida Agency for Workforce
Innovation
Ke Intended Outcome Su orted:
Increase Access to Workforce or Affordable Housin
Supporting Data (Surveys, Environmental Scan, etc.
Issue:
Shall the Cit Commission ado t the Resolution?
Item Summary~Kecommenaaiion:
On July 1, 2004, Miami Dade County, Monroe County, the City of Miami, the City of Miami Beach and
the City of Hialeah, entered into a Consortium Agreement which created the South Florida
Employment and Training Consortium. During a routine audit of federal funds awarded to the
Consortium for its first year ending June 30, 2005, the Consortium's independent auditor discovered a
number of unjustified prepaid transportation costs in the Consortium's Prepaid Transportation account.
These events took place under the previous administration that managed the program with the
predecessor regional workforce board and the predecessor management team of that board.
The unjustified transportation costs in the Prepaid Transportation Account were associated with
undistributed and unjustified cards. Undistributed transportation cards were actual cards at either the
Consortium's administrative office or that of its service provides. In an attempt to promote more
accountability and transparency, on August 1, 2005, the Consortium changed from a prepayment
system to a cost reimbursement system. However, the Consortium still had a significant amount of
unjustified cards on its books.
Even though the South Florida Employment and Training Consortium was dissolved in March 2006,
the former members have been determined to be responsible for the amount that was identified in
undistributed and unjustified cards that were considered disallowed costs. As of June 30, 2007, a
substantial portion ($305,652.50) of the aforementioned disallowed costs was subsequently collected
on behalf of all the former members of the Consortium and these monies have been deposited in a
Miami Dade County Trust Account for the benefit of the five former members of the Consortium. The
five former members of the Consortium currently owe a combined total of $343,688.00. Each of the
five former members is responsible for covering this amount. The City of Miami Beach is responsible
for 6.7 percent for a total of $22,988.57. Monies from the City's Risk Management account will be
used to cover the amount. The City Attorney's Office has been involved with this settlement.
Adviso Board Recommendation:
N/A
Financial Information:
Source of Amount Account
Funds: 1 $22,988.57 540.1790.0000312
0 2
OBPI Total
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Ramiro In uanzo
Si n-Offs:
De artme i or Assistant Cit Mana er Ci Mana er
RI JMG
T:WGENDA\2008Uune 25tRegular\Settlement Agreement with AWI Summary
m MIAMIBEACH
A~GEWaA @TEIIA ~~
m MIAMIBEACH
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
MEMO #
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: June 25, 2008
SUBJECT: A RESOLUTION APPROVING THE SETTLEMENT AGREEMENT BETWEEN AND
AMONG THE FORMER MEMBERS OF THE SOUTH FLORIDA EMPLOYMENT AND
TRAINING CONSORTIUM AND THE STATE OF FLORIDA AGENCY FOR
WORKFORCE INNOVATION
ADMINISTRATIVE RECOMMENDATION
It is recommended that the City Commission authorize the execution of the attached
Settlement Agreement (attached) between and among the former members of the South
Florida Employment and Training Consortium (Consortium), of which the City of Miami
Beach was a member, and the State of Florida's Agency for Workforce Innovation (AWI) on
the terms and conditions set forth in the attached Settlement Agreement. This agreement
will address issues that occurred under the previous administration and predecessor
regional workforce board.
FUNDING
Pursuant to the original Consortium Agreement (attached), the City of Miami Beach will pay
for 6.7 percent, or $22,988.57, of the $343,688 settlement amount owed to the State of
Florida Agency for Workforce Innovation (AWI). However, the final fiscal impact to the City
may be reduced further as a result of a potential redistribution of the disallowed
transportation costs collected thus far.
ANALYSIS
On July 1, 2004, Miami Dade County, Monroe County, the City of Miami, the City of Miami
Beach and the City of Hialeah entered into a Consortium Agreement which created the
South Florida Employment and Training Consortium. During a routine audit of federal funds
awarded to the Consortium for its first year ending June 30, 2005, the Consortium's
independent auditor discovered a number of unjustified prepaid transportation costs in the
Consortium's Prepaid Transportation account. These unjustified transportation costs were
related to the following three (3) programs under the Consortium's jurisdiction: (1) WIA Adult
Services, Youth Services, and Dislocated Services; (2) Temporary Assistance for Needy
Families; and (3) Refugee and Entrant Assistance Program. These events took place under
the previous administration that managed the program with the predecessor regional
workforce board and the predecessor management team.
The unjustified transportation costs in the Prepaid Transportation Account were associated
with undistributed and unjustified cards. Undistributed transportation cards were actual
cards at either the Consortium's administrative office or that of its service providers.
Commission Memorandum -Settlement Agreement with AW!
June 25, 2008, Page 2 of 2
Unjustified cards were transportation cards that were distributed by the Consortium's service
providers to a participant(s), but the service provider failed to submit the supporting
documentation for those distributions to the Consortium.
In an attempt to promote more accountability and transparency, on August 1, 2005, the
Consortium changed from a prepayment system to a cost reimbursement system. However,
the Consortium still had a significant amount unjustified cards on its books. Because some
service providers were not submitting justification packets as requested, the allow-ability of
some transportation expenses could not be readily determined. These undetermined
amounts were considered questioned costs and were reported to the AWI. Subsequently,
AWI rendered a decision regarding the auditor's findings and in total, AWI identified
$651,282.00 in undistributed and unjustified cards that were considered disallowed costs
and advised that this amount must be repaid to AWI using anon-federal funding source.
In March 2006, the South Florida Employment and Training Consortium was dissolved and
in its place the South Florida Work Force Investment Board was created. The City of Miami
Beach has a representative which serves on this board, along with the four other former
members of the Consortium and 38 other members from the private and public sector.
Although the members of the South Florida Work Force Investment Board are collectively
responsible for decisions made by the Board, the financial liability now rests only with Miami
Dade County and Monroe County pursuant to the Inter-local Agreement currently in place.
Even though the South Florida Employment and Training Consortium is no longer in place,
the five former members are responsible for covering the AWI reimbursement for the
undistributed transportation cards.
As of June 30, 2007, service providers had submitted additional justifications for the
undistributed transportation cards and the AWI Office of the Inspector General has accepted
said justifications. In addition, a substantial portion ($305,652.50) of the aforementioned
disallowed costs was subsequently collected by the South Florida Workforce Investment
Board staff on behalf of all the former members of the Consortium and these monies have
been deposited in a Miami Dade County Trust Account for the benefit of the five former
members of the Consortium.
Upon review of this additional information, AWI has determined that the five former
members of the Consortium have justified $307,594.00 of the previously disallowed costs
and as such, the amount currently due to AWI is $343,688.00. Each of the five former
members are responsible for covering the amount as follows:
Miami Dade County 42.2% ($144,793.68)
City of Miami 33.3% ($114,448.10)
City of Hialeah 11.1% ($38,149.36)
Monroe County 6.7% ($22,988.57)
City of Miami Beach 6.7% ($22,988.57)
The elected bodies of all other four (4) former members of the Consortium have all already
passed resolutions to repay the respective amounts owed to AWI.
The attached Settlement Agreement provides for the repayment to AWI by all five former
members of the Consortium in accordance with the percentages set forth in the Consortium
Agreement in effect at that time and as such, it is recommended that the attached resolution
be approved authorizing the execution of the Settlement Agreement.
T:\AGENDA\2008Uune 25\Ftegular\Settlement Agreement with AWI Memo.doc