OIG 11-021 Final Report - Broward County, Florida · OIG Final Report Re: Misconduct by the City...

BROWARD OFFICE OFTHE INSPECTOR GENERAL

MEMORANDUM

To: Barrington A. Russell , Sr., Mayor

Ci ty of Lauderdale Lakes ~, ;('

From: John W. Scott, Inspector General i0~ Broward Office of the Inspector Gener I

Date: March 26, 20 12

Subject: OIG Final Report Re: Misconduct by the City Manager ofLauderdale Lakes in the Contracting for Management Services ofa Former City Employee, Ref. 0/G 11-021

Attached please find the final report of the Broward Office of the Inspector General (OIG) regarding the above-captioned matter. The O IG investigati on found that Jonathan K. Allen, the C ity Manager of the C ity of Lauderda le Lakes (City), engaged in intentiona l bid splitting and other misconduct to improperly authorize a contract for the management services of Manny Diez, a former c ity employee. Specifically, the O IG investigati on determined that after A.D.A. Engineering (ADA) provided a proposa l to Mr. A llen for Mr. Diez' services in the amount of $6 1,000 for seventeen weeks of part-time service, Mr. Allen directed Mr. Diez to split the proposal for the ex plicit purpose of bringing it under Mr. Allen ·s $25,000 award authority. In addition, to avoid competiti ve solic itation requirements, Mr. Allen purported to obtain ADA's services through an ex isting contract dating back to 2006, but that contract was for engineering services, rather than the professional services Mr. Diez would be providing in managing and admi nistering the Public Works department. Fina lly, Mr. Allen agreed to pay Mr. Diez a significantl y higher rate than that of recent Public Works Directors.

The report contains two recommendations. Accord ingly. a status report regarding these recommendations is being required by the O IG. The OIG requests receiving the status report on or before May 25, 201 2.

Attachment

cc: Honorable John E. Rodstrom, Jr. , Mayor, Broward County and Members, Broward Board o f County Commissioners

Evan Lukic, County Auditor Michael Satz, Broward State Attorney Individua ls previously provided a Pre liminary Report (under separate cover)

John W. Scott. !nspeclor General One North University Drive. Suite Ill • Plantation. Florida 3332-1 • (954)357-7873 • Fa\ 954-357-7857

\\\\\\ .browardig.org • 95-1-357-I IPS

BROWARD OFFICE

OF THE INSPECTOR GENERAL

FINAL REPORT

===========================================================

OIG 11-021 MARCH 26, 2012

Misconduct by the City Manager of Lauderdale Lakes in the Contracting for Management Services of a Former City Employee

BROWARD OFFICE OF THE INSPECTOR GENERAL

OIG 11-021

March 26, 2012 Page 1 of 16

FINAL REPORT RE: MISCONDUCT BY THE CITY MANAGER OF LAUDERDALE LAKES IN

THE CONTRACTING FOR MANAGEMENT SERVICES OF A FORMER CITY EMPLOYEE

SUMMARY In November 2011, the Broward Office of the Inspector General (OIG) began an investigation into allegations that Jonathan K. Allen, the City Manager of the City of Lauderdale Lakes (City), contracted for services in a manner which violated Florida law. Specifically, it was alleged that Mr. Allen engaged in intentional bid splitting and other misconduct to undermine procurement controls, and to improperly authorize a contract for the management services of a former city employee. The OIG investigation substantiated the allegations. We determined that Mr. Allen contacted a former city employee, Manny Diez, currently of A.D.A. Engineering (ADA), about the City’s need for a temporary Public Works Director. ADA provided a proposal to Mr. Allen for Mr. Diez services in the amount of $61,000 for seventeen weeks of part-time service. However, the Code of Ordinances of Lauderdale Lakes (Code) did not authorize Mr. Allen to award a contract for services over $25,000. In order to bypass this legal prohibition—which required the approval of the City Commission for any contract over $25,000—Mr. Allen directed Mr. Diez to split the proposal for the explicit purpose of bringing it under Mr. Allen’s award authority. He pursued the bid splitting even after notification from the City’s purchasing manager that the splitting was improper. In addition, to avoid competitive solicitation requirements, Mr. Allen purported to obtain ADA’s services through an existing contract dating back to 2006, but that contract was for engineering services, rather than the professional services Mr. Diez would be providing in managing and administering the Public Works department. Finally, Mr. Allen agreed to pay Mr. Diez a significantly higher rate than that of recent Public Works Directors. The investigation also found that in contracting with his favored vendor instead of conducting a competitive solicitation, Mr. Allen violated not only the Code, but also basic tenets of good public policy. By contracting for Mr. Diez services as Acting Public Works Director, Mr. Allen made him responsible for overseeing existing ADA contracts with the City. Mr. Diez was even charged with recommending what work the department needed to plan for in the future, a subject in which ADA would have a significant interest. Accordingly, Mr. Allen’s actions created both real and apparent conflicts of interest. Moreover, in the wake of the gross mismanagement of public funds that has already endangered the City—as addressed in our companion report, OIG 11-017—Mr. Allen heedlessly paid significantly more for the management services. In interviews with OIG staff, Mr. Allen made various statements which are contradicted by the evidence uncovered during the investigation. By way of this report, the OIG refers this matter to the City Commission to consider appropriate administrative action to address Mr. Allen’s conduct.

BROWARD OFFICE OF THE INSPECTOR GENERAL FINAL REPORT RE: MISCONDUCT BY THE CITY MANAGER OF LAUDERDALE LAKES IN THE CONTRACTING FOR MANAGEMENT SERVICES OF A FORMER CITY EMPLOYEE

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Further, at the conclusion of this report, the OIG provides recommendations for strengthening the City’s procurement protocols. OIG CHARTER AUTHORITY Section 12.01 of the Charter of Broward County empowers the OIG to investigate misconduct and gross mismanagement within the Charter Government of Broward County and all of its municipalities. This authority extends to all elected and appointed officials, employees and all providers of goods and services to the County and the municipalities. On his own initiative, or based on a signed complaint, the Inspector General shall commence an investigation upon a finding of good cause. As part of any investigation, the Inspector General shall have the power to subpoena witnesses, administer oaths, require the production of documents and records, and audit any program, contract, and the operations of any division of the County, its municipalities and any providers. The OIG is also empowered to issue reports, including recommendations, and to require officials to provide reports regarding the implementation of those recommendations. RELEVANT GOVERNING AUTHORITIES AND BACKGROUND Code of Ordinances of Lauderdale Lakes, Section 2-212 Section 2-212 of the Code provides that “[t]he city manager shall be responsible to the city commission for the proper administration of all affairs of the city coming under the city manager's jurisdiction, and to that end, he shall:”

(9) Investigate and determine whether purchases of current supplies and contractual services are made in accordance with regulations prescribed by Charter and ordinances, and whether competitive conditions are maintained in a fair and impartial manner; and

(14) The city manager shall be authorized to approve any expenditure for any of the city departments, including the making of contracts, not to exceed a duration of three years, in a sum not to exceed $25,000.00; provided, however, that any contract exceeding a sum of $25,000.00 irrespective of duration shall require commission approval.

The City of Lauderdale Lakes Administrative Policy Number 00-19 The City of Lauderdale Lakes Administrative Procurement Policy governs the acquisition of goods and services procured by the City. The relevant sections mandate the following:

(4.2) The City Commission must approve purchases in excess of $25,000 and/or three or more years in duration.

(4.3) Purchases up to $25,000 require informal competitive conditions.


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(4.4) Purchases over $25,000 require formal competitive conditions. (5.5.11) If the dollar amount is between $2,500 and $25,000 user departments are required to submit specifications and suggested vendor information to the Purchasing Division via the MUNIS requisition and/or separate mail. (5.5.12) Sole source purchases shall not be authorized unless User departments provide supporting documentation to justify the authenticity of the claim. The Florida Bid Tampering Statute The bid tampering statute, Sec. 838.22(2), states in pertinent part:

It is unlawful for a public servant, with corrupt intent to obtain a benefit for any person or to cause unlawful harm to another, to circumvent a competitive bidding process required by law or rule by using a sole-source contract for commodities or services.

Competitive Solicitations and Bid Splitting According to the National Institute of Governmental Purchasing, “Competitive Bidding is the process of inviting and obtaining bids from competing sources in response to advertised competitive specifications, by which an award is made to the lowest and best bidder meeting the specifications. The purpose of competitive bidding is to stimulate competition, prevent favoritism, and secure the best goods and services at the lowest practicable price, for the benefit of the agency. Competitive bidding cannot occur where contract specifications, terms, or conditions prevent or unduly restrict competition, favor a particular supplier, or increase the cost of goods or services without providing a corresponding benefit to the agency.” As Florida courts have recognized, competitive solicitation is sound public policy enacted for the protection of the public. It prevents arbitrary and capricious award by public officials while allowing the government to obtain the lowest price.1 Procurement regulations often require competitive and open solicitation of contracts valued above a particular threshold. Purchasing authority for particular public officials is also often limited to a particular threshold. Bid splitting is the act of intentionally dividing a purchase into two or more smaller purchases in order to avoid triggering purchasing restrictions that are tied to dollar thresholds. The practice has been widely recognized as violating public policy and is illegal in many jurisdictions. Florida explicitly prohibits the practice in relation to purchases made by state agencies.2 The criminal statutes are less explicit, but the bid tampering statute prohibits the circumvention of legally required competitive solicitations. 1 Marriott Corp. v. Metro. Dade County, 383 So.2d 662, 665 (Fla. 3d DCA 1980) (quoting Hotel China and Glassware Co. v. Bd. of Pub. Instruction, 130 So.2d 78, 81 (Fla. 1st DCA 1961). 2 Sec. 287.057(9), Fla. Stat., “An agency shall not divide the solicitation of commodities or contractual services so as to avoid the requirements of [competitive solicitation].”


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INDIVIDUALS COVERED IN THIS REPORT Jonathan K. Allen Mr. Allen is currently the City Manager of Lauderdale Lakes, a position he has held since June 14, 2011. He has been with the City for approximately 13 years, during which he has served in the capacities of an Operations Manager, Director of Parks and Recreation, Director of Public Works, Assistant to the City Manager and Acting City Manager. Manny Diez Mr. Diez was recently employed as a senior project manager at ADA. He was previously employed as a Public Works Director for the City of Lauderdale Lakes from July 2005 through April 2007. INVESTIGATION This investigation is predicated on information alleging that Mr. Allen deliberately split the cost of a proposal for contractual services—to provide Public Works management services—so as to avoid an open competitive solicitation process. The OIG investigation substantiated the allegation, and also found that Mr. Allen’s conduct created both real and apparent conflicts of interest. The investigation included the review of substantial documentation by OIG staff including, but not limited to, the City’s ordinances and administrative policies; the City’s procurement files and materials relating to ADA’s 2006 contract for professional engineering services; email communications between the City and ADA; and City Commission meeting minutes and recordings. The OIG staff, including the OIG Contract Oversight Specialist, also conducted interviews of current and former City employees including Mr. Allen and Mr. Diez. The Original ADA Proposal The OIG obtained emails dating from May 2011 which revealed that communications had begun between Mr. Allen and Mr. Diez, which resulted in an ADA proposal being sent to Mr. Allen on May 27, 2011 (Exhibit 1). In the proposal, ADA offered to provide the City’s Public Works and Engineering Services Department with management services on an interim part-time basis from June 13, 2011 through September 30, 2011, for approximately $61,000. The original proposal raised several procurement issues:

1. The Proposal was Improperly Based on an Unrelated Contract

As explicitly stated in the proposal, the rates for Mr. Diez’s services were based on the negotiated project manager rate in an ADA contract dating back to 2006 (2006 Contract). A review of the 2006 Contract reveals that the services described in the management proposal did not comport with the scope of the 2006 Contract. The 2006 Contract provides for professional stormwater and drainage engineering services on a “continuing contract” basis for the City’s


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Public Works Department. Mr. Diez, the Director of Public Works at the time of the award of this contract, also served on the selection committee that ultimately awarded the 2006 Contract to ADA.

The scope of services listed in the management proposal include daily management duties of an administrative nature. For example, the proposal lists providing leadership, attending meetings, and administering discipline as typical duties. In contrast, the 2006 Contract lists work that would require a current engineering license, such as planning and design. During his interview with the OIG, Mr. Allen admitted that he did not believe the services rendered by Mr. Diez in 2011 were within the scope of the 2006 contract.

2. The Proposal Amount Exceeded Mr. Allen’s Approval Authority

The original proposal contains ADA’s apparent understanding that Mr. Allen wanted Mr. Diez’s services through September 30, 2011. This understanding was accurate, as demonstrated by the fact that Mr. Diez ultimately did work until September 30. However, even on a part-time basis, at the professional engineering rate of $158.58 per hour, the cost for this service was $61,000. Mr. Allen only had the authority to enter into contracts for less than $25,000. Thus, the proposal would trigger the need for approval by the City Commission.

3. The Proposal was Not Competitively Solicited

The City procurement administrative policy mandates that procurements over $25,000 must undergo a competitive solicitation process. As explained above, this is sound public policy enacted for the protection of the public, because it is intended to prevent exactly the type of arbitrary and capricious award of public funds that Mr. Allen ultimately made. By pretending that the new contract was merely an extension of the 2006 Contract, Mr. Allen devised a scheme by which he could improperly obtain public works management services without competitively soliciting for them. As discussed below, this approach may have cost the City thousands of dollars through the payment of an inflated, unwarranted rate.

The Initial Attempt to Circumvent Mr. Allen’s Award Authority Limits The OIG investigation uncovered a chain of emails which document the manner in which Mr. Allen procured Mr. Diez’s services. These emails reveal the initial considerations of the multiple ways the City Commission’s authority could be circumvented. Mr. Diez sent an email to Mr. Allen—three days before his scheduled start date—specifically suggesting three ways in which Mr. Allen could approve the proposal from ADA, despite the fact that it was above his award authority and had not been competitively solicited.


OIG 11-021


From: [email protected] Sent: Friday, June 03, 2011 11:02 AM To: Jonathan Allen Subject: Manny Start Date Jonathan: I am planning to start at Lauderdale Lakes this coming Monday June 6 at 8AM. I will call you early this afternoon to confirm, or you can just respond to this message if you wish. I thought of a few additional ways that you may be able to arrange for the costs: 2. Cut a PO for $25k under your authority as CM, that will get me through about 6 ½ weeks, giving

you time to go to commission 3. Prepare a requisition for the full amount $60k and call it an emergency (may not endear you to commission, but they should expect it) 4. Provide us with a Notice-to-Proceed for Monday and directing us to use the balance of one or both of the open task orders that we have with the City. Simone should have the details on this since I recently asked for Vince to research them. (There is only about $20k left on these tasks combined, but that will be enough until you get to commission) Again, if there is anything that I can do to assist you with this, just let me know. Talk to you soon… Regards, Manny Diez * Exhibit 2 contains email exchanges prior to the first submission of the proposal to Purchasing for payment, including the

e-mail above. As evidenced by the following email from the Administrative Coordinator for the Public Works and Engineering Services Department (Administrative Coordinator),3 Mr. Allen apparently instructed his staff to issue a requisition for $22,835.52 and then increase the contract amount every six weeks, thus keeping each increase under $25,000. A copy of the proposal for $61,000 was attached. From: Simone Campbell Sent: Wednesday, June 08, 2011 3:58 PM To: Jonathan Allen Cc: '[email protected]'; Manny Diez; Diane LeRay; Geeta Ramharry Subject: REQ 11100093 ADA Engineering (Public Works Mgmt Services - Manny Diez) Importance: High Jonathan, Please approve the above released requsition. Attached is the proposal. As per your instructions, I'll do a change order to increase the PO every 6 weeks. 3 Email and its attachments attached as Exhibit 3.


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The Procurement Manager Warns Mr. Allen that the Process Violates the Code4 Upon receipt of the Administrative Coordinator’s email, the Purchasing Manager sent an email advising all parties that the approval of the City Commission was required. From: [email protected] Sent: Wednesday, June 08, 2011 4:03 PM To: [email protected]; [email protected] Cc: [email protected]; [email protected]; [email protected] Subject: RE: REQ 11100093 ADA Engineering (Public Works Mgmt Services - Manny Diez) All: Please be advised that that the total amount of the proposal exceeds that of the City Manager’s authority. Therefore, before Purchasing can issue a purchase order, a resolution with the approval by the City Commission needs to be submitted to move forward accordingly. Thank you, Diane LeRay, CPPO, CPPB, FCPM Purchasing & Contracts Manager | Purchasing Division In response to the Purchasing Manager’s concerns, the Administrative Coordinator emailed Mr. Diez, requesting that he modify the proposal for six weeks of service—as opposed to 17 weeks of service—for a total of $22,835.82. This request clearly was not based on an actual intent to limit the contract to six weeks of work, as indicated by her accompanying assertion that the total amount of the proposal would later be brought to the Commission for approval. During his interview with the OIG, Mr. Diez stated that it was “common knowledge” that the proposal was revised only for the purpose of bringing it under Mr. Allen’s award authority. However, the requested revision did not cure the Purchasing Manager’s concerns. Before receipt of the revised proposal, she again indicated, via email, that Purchasing could not legitimately issue a purchase order, thereby authorizing payment, because it was apparent that Mr. Allen was circumventing purchasing procedures.

4 The chain of emails referenced in this section is attached as Exhibit 4.


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From: Diane LeRay Sent: Thursday, June 09, 2011 12:22 PM To: Simone Campbell Cc: Geeta Ramharry; Jonathan Allen; Manny Diez Subject: RE: REQ 11100093 ADA Engineering (Public Works Mgmt Services - Manny Diez) Simone: May I suggest, based on the knowledge that the City Commission approval will ultimately be pursued for the total amount due to ADA Engineering, that instead of sending the requisition peace meal, that check requests be approved in lieu of the purchase order. This way Manny will not be affected adversely. After the formal approval has been realized, then a request for purchase order with all backup documentation (resolution, PSA, etc.) can be submitted to Purchasing for the balance of the work order that has not been paid previous to the Commission approval. It will be difficult for Purchasing to initiate a purchase order at this time with the knowledge that the amount submitted is only partial. In the interest of disclosure, it gives the perception of circumvention of the purchasing procedures. Please advise should you need further clarification. Diane LeRay, CPPO, CPPB, FCPM Purchasing & Contracts Manager | Purchasing Division Mr. Diez responded by expressing that perhaps “the best thing to do is to proceed with putting the entire requisition for $61,000 in front of the commission at one time in June of 2011 to maintain a clean procurement process.” Mr. Allen Proceeds to Engage in Bid-Splitting to Circumvent his Authority Limitations Despite the explicit warnings of his professional Purchasing staff, Mr. Allen proceeded with his scheme to circumvent his award authority limitations. On June 15, 2011, Mr. Diez, pursuant to Mr. Allen’s request, provided a revised proposal for six weeks of service in the amount of $22,835.52. As indicated in the following emails, the arrangement was for the explicit purpose of circumventing proper policy and included paying ADA from an existing task order tied to the 2006 Contract for the first week of service Mr. Diez had already completed.5

5 The emails cited in this exchange, including the revised proposal, are attached as Exhibit 5.


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From: Manny Diez Sent: Wednesday, June 15, 2011 8:57 AM To: Jonathan Allen Cc: Diane LeRay; Simone Campbell Subject: ADA Proposal Jonathan: Attached is the proposal for six weeks of service to the City. If you will require my services for a longer period please advise at your earliest convenience. As we discussed, I have charged the first week of services to an existing task order that ADA has with the City. Please advise if this is acceptable to you. Manny Diez ADA Engineering From: [email protected] [mailto:[email protected]] Sent: Wednesday, June 15, 2011 12:19 P

Mr. Alex Vasquez is Mr. Diez’s supervisor at ADA.

M To: [email protected] Subject: FW: ADA Proposal Alex: Jonathan asked that I revise our proposal for an amount under his signature authority of $25k. Attached is that revised proposal. That will pay for 6 weeks of time +/-. He also wants me to provide a proposal for the balance of the time. I will put that together asap. Manny From: [email protected] [mailto:[email protected]] Sent: Wednesday, June 15, 2011 7:01 PM To: [email protected]; [email protected]; [email protected] Cc: [email protected]; [email protected]; [email protected] Subject: Response: Corrected proposal Manny, This is to confirm that you are providing your initial contractual services through the outstanding task order(s) with ADA. I’m asking Public Works/Purchasing staff to prepare a new purchase order/task order for other Public Works Management/Oversight services in an amount not to exceed $25,000. Let me know if you have any questions. Thanks! > Jonathan In order to approve the proposal, Mr. Allen split the cost and weeks of service to ensure that the dollar value of the contract would be within his award authority. During his interview with the OIG, Mr. Allen claimed—despite the existence of the original proposal and without reason to believe the timeline had changed—that he was not aware that the contract would exceed $25,000. Mr. Allen stated that if he was aware that the total proposal would exceed $25,000, he would have submitted the


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March 26, 2012 Page 10 of 16

full amount of the proposal to the City Commission for approval. He also stated that the contract could not be competitively solicited because the circumstances were “dire.”6 However, no emergency justification was included, much less even referenced, in any of the procurement files or in any of the communications reviewed by the OIG. The City Commission is Finally Asked to Approve the Remaining Contract Amount On August 9, 2011, more than two months after Mr. Diez had begun working with the City, Resolution Number 2011-73 (Resolution) was submitted to the City Commission (Exhibit 6). The resolution authorizes the City Manager to accept the proposal from ADA to provide Public Works management services to the City for ten weeks of services, for a total of $41,865. The authorization would commence retroactively on July 18, 2011. Mr. Allen stated in the meeting that the approval of the proposal was favorable due to the transitions within the City, and that Mr. Diez had operating experience to get the protocols right for the operation. However, various members of the City Commission expressed concerns. The Deputy Vice Mayor expressed concerns about the City’s financial condition and the lack of funds to pay $41,000 for a part-time director. She also indicated that it might make better financial sense to hire a director rather than contracting for one. Another Commissioner stated that she was not comfortable with ADA, as it has been with the City since 2006, and that it was now time for a competitive solicitation. The Vice Mayor indicated that this contract was the recommendation of management, and “it comes down to trust of the administration.” Some Commissioners indicated they were aware of the initial payment to ADA and asked for clarification about the exact amount the Commission would be approving. The City Attorney confirmed that the resolution was for $41,865 for services from July 18, 2011 through September 30, 2011. The Commission approved the resolution, but was never asked to approve the additional amounts previously authorized by Mr. Allen. The entire project cost of ADA’s managerial service was $64,700.52. Had the Commission been consulted prior to the commencement of the contract, it might have been able to do more to address its concerns. However, by the time it was consulted, Mr. Diez had been working for the City for two months, and had already been paid $22,835.52. The City Likely Overpaid for Mr. Diez’s Services Mr. Diez was paid a rate of $158.58 per hour for his managerial work at the City. Because the procurement was not competitively solicited, the City will never know if it could have obtained contract managerial services at a lower rate. However, a comparison of salaries for recent public works directors employed by the City reveals that the rate is significantly higher than what the position normally pays.7 The investigation determined that while Mr. Diez was the Public Works Director between 2005 through 2007, his annual salary was approximately $85,000 a year, or $45.00 per hour. 6 Mr. Allen alternatively suggested that Sec. 66-39 of the Code granted him the authority to enter into the contract for Mr. Diez’s services. The OIG review of that section reveals that it deals with the authority to make appointments thru Human Resources, which would be direct hires, so that it is not applicable. 7 It should also be noted that the hourly rate of $158.58 is arbitrary as it relates to public works administration, as it was negotiated in 2006 for professional engineering services of a substantially different nature.


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The former Public Works Director from October 2008 through 2010 was paid at an approximate hourly rate of $52.00 per hour. The current Public Works Director is paid at an approximate hourly rate of $50.00 per hour.8 The Agreement with ADA Made the City Vulnerable to Possible Conflicts of Interest A final concern raised by the agreement was the authority it gave to a third-party individual over the contracts of his own employer. The proposal accepted by Mr. Allen required that Mr. Diez be allowed to perform tasks and assignments pertaining to ADA business while also employed by the City. In fact, one of Mr. Diez’s first orders of business was to collect data from staff, schedule a brainstorming meeting, and re-negotiate existing contracts. Those contracts included work that was contracted to ADA, or that ADA might be interested in acquiring. While there may be legitimate reasons for a public works director to take such an interest in re-negotiating contracts, Mr. Diez’s financial stake in them risked the creation of both real and apparent conflicts of interest, thus undermining the independent authority of the City administration. INTERVIEW SUMMARIES As part of the investigation, OIG Special Agents and the OIG Contract Oversight Specialist conducted numerous witness interviews. Significant interviews are summarized below:

1. Interview of the Purchasing Manager

The Purchasing Manager stated that one of her main objectives was to ensure that all procurement was processed through the Purchasing Division so as to prevent the circumvention of procurement policies. With regard to the ADA proposal, she stated that she first learned of it when the request was submitted to the Purchasing Division for a purchase order. She further stated that the original proposal was in the amount of $61,000.

The Purchasing Manager stated that not only was a competitive solicitation not processed for the provision of Public Works management services, no justification was provided explaining why the City did not conduct a competitive solicitation. She also stated that the proposal from Mr. Diez to provide Public Works management services was not within the scope of the services listed in the 2006 Contract. She further stated that she initially rejected the requisition request because it exceeded Mr. Allen’s award authority, and she advised staff that the proposal for $61,000 needed to go before the City Commission for approval.

The Purchasing Manager initially stated that she did not know how the partial amount of the proposal for $22,835 was approved. After reviewing a copy of requisition 11100093-00, she stated that she did approve the second requisition for partial payment of the proposal, but only because “she had no other choice.” The Purchasing Manager stated that she approved the requisition with

8 The OIG recognizes that these hourly rates do not contemplate the costs for payment of additional benefits. Nevertheless, by any measure, the comparison demonstrates that the market should have been tested through an open competitive procurement.


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the understanding that Mr. Allen would also submit an agenda to the City Commission requesting the retroactive approval for the entire amount of $61,000. The Purchasing Manager was laid off from her position with the City in June 2011, shortly after these events. 2. Interview of Manny Diez

Mr. Diez stated that on May 17, 2011, he sent an email to his colleagues in the American Public Works Association, which included Mr. Allen, advising them of his current position with ADA. Mr. Diez advised that shortly thereafter, Mr. Allen responded to his e-mail and later called him, stating that he was in a “difficult position” and wanted Mr. Diez to return to the City as the interim Public Works Director. Mr. Diez further stated that he created a proposal to provide Public Works management services, including establishing the scope of services, the time period the services would be provided, and the cost of services he thought would be sufficient to assist Mr. Allen and the City. He also stated that he established the scope of services based on his past engineering experience and based the hourly wage for the proposal on the 2006 Contract.

Mr. Diez stated that the initial proposal was for six weeks of service for approximately $22,000. He further stated that he emailed the initial proposal to Mr. Allen, and that it was approved immediately without modifications. In fact, he stated, the proposal was approved by Mr. Allen prior to the Purchasing Department’s approval of the purchase order. Mr. Diez stated that he started his assignment with the City in early June, 2011 and reported directly to Mr. Allen. He explained that his initial duties within the Public Works Department involved renegotiating contracts, and reorganizing the Development Services Department by consolidating the Public Work Department with Development Services. Mr. Diez stated that he implemented cost reductions within the Public Works budget, administered brainstorming meetings with the Public Works superintendents, trained the newly appointed Public Works and Development Services Director, and assisted the Department in generating a zero based budget operating procedure.

After he was provided with the emails detailed in this report, Mr. Diez admitted that the initial proposal for Public Works management services was $61,000 and that the proposal was revised to an amount within Allen’s award authority. Mr. Diez also admitted that Mr. Allen advised him to split the proposal amount to ensure that the initial proposal would be within his award authority. Mr. Diez further admitted that Mr. Allen directed him to draft a proposal for the remaining balance of service at the same time of the submittal of the initial proposal. He stated “everyone knew why the proposal was split” and that he was only doing what was requested of him in order to “get the job done.” 3. Interview of Jonathan K. Allen

Mr. Allen stated that in 2010, the City’s Public Works Department underwent some reorganization. He explained that the Public Works and Engineering Services Department were combined and that later, the City consolidated the Public Works Department with Development


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Services. Mr. Allen stated that during this time period the City Commission froze all hiring, but that the newly-appointed Director for Public Works and Development Services required training as a Public Works Director. Mr. Allen further stated that during the reorganization, he needed a Director of the Public Works Department. He stated that after he received an email from Mr. Diez advising that he went to work for ADA, he contacted Mr. Diez on May 24, 2011, the day he was named Acting City Manager. He stated that Mr. Diez’s ADA supervisor subsequently submitted the initial proposal regarding the management services contract with the City. Mr. Allen admitted that Mr. Diez began his assignment on June 6, 2011, prior to the approval of the purchase order. When asked why there was a three-week delay in contracting Mr. Diez—given the apparent critical need for his services—Mr. Allen declined to respond.

Mr. Allen stated that he was aware that the initial proposal was for $61,000, but that he considered it to be “merely a draft.” He also stated that after Mr. Diez began his assignment on June 6, 2011, the City monitored his schedule to ensure that he did not exceed the $25,000 threshold. Mr. Allen then stated that he was not aware that the contract would exceed $25,000. He further stated that if he had been aware that the total proposal would exceed $25,000, he would have submitted the full amount of the proposal to the City Commission for approval. Mr. Allen admitted that he knew that the Administrative Coordinator sent an email to Mr. Diez regarding the proposal for $61,000, in which she asked that the proposal be revised to under $25,000, and that the revisions were subsequently made.

Mr. Allen stated that the $158.58 per hour rate within the proposal was established based on the rate approved in the 2006 Contract. He admitted that the scope of Mr. Diez’s Public Works management services was not within the scope of services defined within the 2006 Contract. However, he claimed he had the authority to hire Mr. Diez pursuant to Sec. 66-39 of the Code, which pertains to appointments to fill employee vacancies.

Mr. Allen stated that he did not consider competitively bidding the contract because the City was in dire circumstances and was in need of a Public Works Director. Mr. Allen also stated that he was the Acting City Manager at the time the proposal was submitted, and that meant that he was no longer able to actively manage the Public Works Department. Mr. Allen further stated that the Code and City procurement policies gave him the authority to approve a contract of $25,000 or less if it was an urgent matter. He stated that once he saw that the contract would exceed $25,000, he prepared a resolution requesting approval of the additional balance of $41,865 for remaining services. Mr. Allen also stated that the City Commission was fully aware of his intention to hire Mr. Diez before he submitted the resolution for its approval. RESPONSES TO THE PRELIMINARY REPORT AND OIG COMMENT In accordance with Section 12.01(D)(2)(a) of the Charter of Broward County, a preliminary version of this report was provided to Mr. Allen, Mr. Diez, and the City of Lauderdale Lakes for their discretionary written responses. The OIG received a response from Mr. Allen, which is attached and incorporated herein as Appendix A. The OIG also received a response from the


OIG 11-021

March 26, 2012 Page 14 of 16

President of ADA, which is attached and incorporated herein as Appendix B. We appreciate receiving the responses. 1. Response of Mr. Allen

In his response, Mr. Allen denied that he engaged in intentional bid-splitting. Instead, as he stressed numerous times in his response, he used the 2006 Contract because he believed there was an “urgent need” to obtain Mr. Diez’s professional management services, a need he viewed as a “top priority.” Mr. Allen also stated that the City Attorney advised him that “it was appropriate for me to utilize the [2006 Contract] for the specific professional services as a sole source item.”9 The OIG is not persuaded by Mr. Allen’s claim that he acted solely in response to an emergency. If the demand for Public Works management services was truly critical and urgent, as proclaimed in hindsight by Mr. Allen, he could have contemporaneously declared the required services for the Public Works Department an emergency need and notified the City Commission accordingly.10 The OIG review of the documents provided by the City, including emails and bid materials, reveals that Mr. Allen never availed himself of that opportunity, even after he was explicitly warned by the Purchasing Manager about exceeding his authority. Mr. Allen insists that he did not know Mr. Diez’s engagement would exceed $25,000. He stated that the proposal for $61,000, for services through September 30th, was merely a draft. As a result of the need to “reduce the overall cost,” he stated that the draft proposal was modified, not split. However, the OIG notes that Mr. Diez did indeed ultimately work until September 30th, as indicated in the initial proposal, for a cost of over $61,000. Further, Mr. Allen does not articulate a change in circumstance upon which he could have based a reasonable understanding that a reduced time frame would be sufficient at the time he authorized the first engagement. In light of these facts, as well as the chain of emails raising alarming questions about the process, the OIG cannot credit Mr. Allen’s assertion. Mr. Allen also stated, that the 2006 Contract was properly “modified,” because although ADA was to provide professional/consultation services in the area of stormwater engineering services, the 2006 Contract did not prohibit ADA from providing professional services for other projects on an as-needed basis. The OIG acknowledges that the mechanism for modification existed, and does not dispute its propriety, so long as the modifications are reasonably related to the scope of work of the initial contract. However, the suggestion that stormwater engineering services could be morphed into governmental management services, in lieu of a public bid process, strains the propriety of employing that mechanism well beyond the breaking point. Furthermore, Mr. Diez

9In contrast, the City Attorney stated on March 5, 2012, during a public meeting of the City Commission, that he did not recall ever speaking with Mr. Allen about using the 2006 Contract to obtain Mr. Diez’s services. In addition, the City Attorney stated that he had reviewed numerous materials including correspondence and emails, but could not locate any reference to the issue. 10 Recall Mr. Diez’s email suggestion that perhaps “the best thing to do is to proceed with putting the entire requisition for $61,000 in front of the commission at one time in June of 2011 to maintain a clean procurement process.” (Emphasis added.) Mr. Allen was copied on that email, yet stated to OIG staff that he had been aware that the total proposal would exceed $25,000 he would have submitted the full amount of the proposal to the City Commission for approval.


OIG 11-021

March 26, 2012 Page 15 of 16

admitted that the scope of services he proposed did not include the updating of the city Stormwater Master Plan and the stormwater utility rates that Mr. Allen identified as a basis for the modification of the 2006 Contract. In his response, Mr. Allen also stated that the hiring of Mr. Diez did not create any real conflicts of interest. Mr. Allen further stated that Mr. Diez’s hiring did not render the City vulnerable to possible conflicts of interest because “adequate internal controls” existed to prevent that from happening. The OIG acknowledges that the actual existence of any such conflicts was not a focus of the investigation. Instead, as we noted in the preliminary version of this report, our concern was—and remains—that any such arrangement, wherein a government supervisor has a personal financial stake in a third-party vendor, necessarily creates the appearance of a conflict, and should be avoided. Mr. Allen stated that with regard to the Purchasing Manager having been laid off, any “sincere and earnest inquiry” would have revealed that, as reflected in a memo authored by the former City Manager, her position had previously been identified for elimination in December 2010, a decision in which he had not been personally involved. (Attachment 3 to Appendix A) What Mr. Allen did not reveal in his response, though, was that the person employed in the other position identified in that memo for elimination, that of “Administrative Services Director (former HR Manager),” remains employed by the City. 2. Response of the ADA President

In his response, the President stated his concern that the second of the recommendations suggested by the OIG at the conclusion of this report, pertaining to the risk of paying inflated rates for comparable services, fails to recognize that ADA properly used “multipliers” including overhead costs, fringe benefits, and profit, that resulted in the establishment of its $158.58 hourly billable rate. As reflected in footnote 8, however, the OIG has considered this issue, and remains convinced that it is in the best interest of the City to test the market through an open competitive procurement. We also note that in his response, Mr. Allen stated that that the City’s most recent Public Works and Engineering Services Director was paid “approximately $69.77 per hour inclusive of benefits.” (Emphasis added.)

CONCLUSIONS AND RECOMMENDATIONS The OIG investigation revealed that Mr. Allen deliberately violated the Code, administrative policy and public policy. Mr. Allen’s open disregard for policies and processes designed to protect the public interest raises significant concerns regarding the City’s institutional attitude toward proper public process, including compliance with the law. The OIG review of the City’s procurement policies and procedures also revealed that they were vague and provided minimal guidance. The facts of this particular investigation illustrate a violation so flagrant that even the most minimal procurement code would have been breached. Nonetheless, more substantial procurement guidance would improve the City’s overall procurement culture so that


OIG 11-021

March 26, 2012 Page 16 of 16

violations are discouraged and prevented from proceeding. Based upon the findings of this investigation, the OIG makes the following recommendations:

1. The city should adopt language specifically addressing the requirements of a competitive solicitation process for all categories of contracts, and the thresholds which trigger the various requirements.

2. When an informal competitive process is permitted, documentation of market research or other price justification should be required, so that the City does not risk paying highly inflated rates for comparable services.

The OIG requests that we are provided with a status report in 60 days, or by May 25, 2012, regarding the City’s adoption and implementation of these recommendations.

By way of this report, the OIG refers this matter to the City Commission to consider appropriate administrative action to address Mr. Allen’s misconduct. The OIG also refers this matter to the Broward State Attorney’s Office for its independent assessment of the application of the Florida bid tampering statute.

OIG 11-021

EXHIBIT 1

From: [email protected] [mailto:[email protected]]

Sent: Friday, May 27, 2011 5:25 PM

To: Jonathan Allen

Cc: [email protected]

Subject: PW Director Proposal

Jonathan:

Attached is a draft proposal for the Acting PW Director position. I will provide you with a resume for the

agenda item as part of the final proposal once you okay this.

Thanks for the opportunity.

Manny Diez

Sr. Project Manager A.D.A. Engineering, Inc. 1800 Old Okeechobee Road Suite 202 West Palm Beach, Fl33409 T 561-615-8880, X. 210 c 954-309-0786 F 561-615-8858 www.adaengineering.com

PLEASE NOTE: The content included in this email, including any attachments. may include privileged and/or confidential information. Any distribution, dissemination or copying of this communication, including attachments, by anyone other than the intended recipient is strictly prohibited and may be unlawful. If you are not the intended recipient, please notify the sender by replying to this message and then delete it from your system. Any views or opinions presented are solely those of the author and do not necessarily represent those of A.D.A. Engineering. Inc.

http:www.adaengineering.commailto:[email protected]:mailto:[email protected]:[email protected]

May27, 2011

Mr. Jonathan Allen

Acting City Manager

City of Lauderdale Lakes

3463 NW 36th Street

Lauderdale Lakes, Florida 33319-5599

REFERENCE: PROPOSALFOR SERVICES TO THE CITY

Dear Mr. Allen:

As per your request, ADA Engineering is Lauderdale Lakes with a plan and proposal for providing an interim basis. The scope of services envisioned

• • • on of the City • as required

pw.•u"""'"• maintenance plans and schedules standards and measures

• Assist in the funding • Provide leadership management if needed • Administer employee and coaching as required • Review and approve req leave requests, invoices and payroll • Evaluate contracting strategy and provide recommendations for improvements • Assist the City Manager with other duties as requested

The individual that ADA proposes to provide these services is Mr. Manny Diez. We believe that Mr. Diez has the required skills and institutional knowledge of the City, having served as the Public Works Director in Lauderdale Lakes in 2005-2007. In addition, Mr. Diez has over 28 years of experience in managing construction and maintenance activities for municipalities and utilities, several of these in South Florida.

11401 S.W. 401h Street, Suite 470, Miami, Florida 33165

Office: (305) 551-4608 · Fax: (305) 551-8977 · www.adaengineering.com

http:www.adaengineering.com

Mr. Jonathan Allen May27, 2011 Page 2 of2

Mr. Diez is now employed ADA and is available to assume these duties immediately upon receipt of a Notice-to-Proceed by the City.

ADA proposes using the current agreement between the City of Lauderdale Lakes and ADA (Contract Number 06-1302-01R) to establish the terms and conditions along with the pay structure for this proposal. ADA is willing to provide the services of Mr. Diez at the Project Manger rate, in spite of his title and pay class of Senior Project Manager with the firm. This offer is extended to the City due to the long stating relationship between our two organizations and the fact the ADA wishes to assist the City get through these difficult times, both financial and staffing wise.

In order to provide the City with the best continuity of service at the lowest possible price, ADA suggests that Mr. Diez work directly from the Public Works office and that he report there on a daily basis during the City's work hours: Monday through Thursday. He will spend eight (8) hours per day at the office, although he will only charge the City for hours actually spent performing City duties. We anticipate that this will be somewhere in the neighborhood of 4-6 hours daily, naturally dependant on the routine work load and the requests for his services requested by the City. In order to allow to offer this service, we respectfully request that Mr. Diez be allowed to perform tasks and assignments for ADA during periods where his time is not required by the City. In order to accomplish this, we would request that he be allowed to use the City internet connection and a City telephone for local calls. ADA will provide a computer and cell phone for his use.

It is our understanding that the City will be in need of Mr. Diez's services until the end of the fiscal year on September 30, 2011. Therefore, we are attaching a cost estimate for your use in preparing the not-toexceed purchase order for this task. The total anticipated cost for this purchase order is $61,000.

If you have any questions or need additional information, please do not hesitate to contact Alberto Argudin, P.E. or me at (305) 551-4608.

Enc: Fee Proposal

FEE PROPOSAL

THE CITY OF LAUDERDALE

PROPOSAL FOR PROVIDING PUBLIC WORKS SERVICES TO THE CITY

Labor Rate - Manny Diez, Project Manager

Assumed number of hours per week

Number of weeks (June 13- Sept 30)

Weekly cost

Total Cost

OIG 11-021

EXHIBIT2

From: Manny Diez Sent: Wednesday, June 01, 2011 3:40 PM To: Jonathan Allen Cc: Alex Vazquez Subject: PW Director Proposal

Jonathan:

I have corrected the proposal to reflect me being on site 5 days per week. I did not feel that I would

need to change the fee proposal. Attached is the written proposal, the fee proposal and my resume for

your use. Please let me know if there is anything else that you want me to do on this. FYI, if you want me to appear at a commission meeting to "interview" with them I would be happy to do that on my own

time.

Regards, Manny Diez

Sr. Project Manager A.D.A. Engineering, Inc.

1800 Old Okeechobee Road

Suite 202 West Palm Beach, FL 33409 T 561-615-8880,X.210 c 954-309-0786 F 561-615-8858 www.adaengineering.com

PLEASE NOTE: The content included in this email, including any attachments, may include privileged and/or confidential information. Any distribution. dissemination or copying of this communication, including attachments, by anyone other than the intended recipient is strictly prohibited and may be unlawful. If you are not the intended recipient, please notify the sender by replying to this message and then delete it from your system. Any views or opinions presented are solely those of the author and do not necessarily represent those of A.D.A. Engineering, Inc.


June 1, 2011

Mr. Jonathan Allen

Acting City Manager


3463 NW 36th Street


REFERENCE: PROPOSAL FOR PRO SERVICES TO THE CITY

Dear Mr. Allen:

As per your request, ADA Engineering is Lauderdale Lakes with a plan and proposal for providing an interim basis. The scope of services envisioned

• • • on of the City

as required

.....,"" .....~, maintenance plans and schedules

standards and measures • funding • Provide management if needed

and coaching as required

• Review and approve req leave requests, invoices and payroll • Evaluate contracting strategy and provide recommendations for improvements • Assist the City Manager with other duties as requested

The individual that ADA proposes to provide these services is Mr. Manny Diez. We believe that Mr. Diez has the required skills and institutional knowledge of the City, having served as the Public Worlcs Director in Lauderdale Lakes in 2005-2007. In addition, Mr. Diez has over 28 years of experience in managing construction and maintenance activities for municipalities and utilities, several of these in South Florida.


Office: (305) 551-4608 ·Fax: (305) 551-8977 · www.adaengineering.com





In order to provide the City with the best continuity of service at the lowest possible price, ADA suggests that Mr. Diez work directly from the Public Works office and that he report there on a daily basis during the City's work hours: Monday through Friday. He will spend eight (8) hours per day at the office, although he will only charge the City for hours actually spent performing City duties. We anticipate that this will be somewhere in the neighborhood of 4-6 hours daily, naturally dependant on the routine work load and the requests for his services requested by the City. In order to allow us to offer this service, we respectfully request that Mr. Diez be allowed to perform tasks and assignments for ADA during periods where his time is not required by the City. In order to accomplish this, we would request that he be allowed to use the City internet connection and a City telephone for local calls. ADA will provide a computer and cell phone for his use.



Enc: Fee Proposal

FEE PROPOSAL

THE CITY OF LAUDERDALE

PROPOSAL FOR PROVIDING PUBLIC WORKS

Labor Rate - Manny Diez, Project Manager

Assumed number of hours per week

Number of weeks (June 13- Sept 30)

Weekly cost

Total Cost

Mr. Diez has over 28 years of experience and is responsible for the overall coordination of assigned accounts, programs and projects. His extensive experience encompasses park construction including pools, tennis courts, hockey rinks and sports fields and lighting; vertical construction including schools, libraries, police and fire stations and other mu·nicipal structures; primary and secondary drainage improvements, including canal dredging and bank stabilization; water treatment plant, water main and force main construction and renovation; community beautification including streetscapes, entranceways and greenways; lift station design and construction including wastewater SCADA

; system installation; culvert, bridge and roadway inspections, repairs and replacements; and developing and implementing R&R programs for water, waste water and storm water. A summary of Mr. Diez' past experience is below.

Director of Public Works and Capital Projects -Town Of Davie (April 2007 to April2011) Mr. Diez directed the design, construction, asset management and maintenance activities for all assets of city of 36 square miles, including the preparation and

Education B.S., 1983, Electrical Engineering, Old Dominion University

Graduate Business Course work, Marymount University

Registration Virginia, Engineer-In-Training

Key Experience • Civil Engineering Design • Drainage Design • W

Stormwater Management ater Resources

•

management of the capital improvements program. His duties also included managing all parks, equestrian and recreational trail development and maintenance. He oversaw a variety of projects including the design and construction

· of the Davie Police Firearms Training Facility, Fire Station 1 04, six neighborhood parks, 10 miles of equestrian and pedestrian trails, and the Hiatus Road Culvert installation. In addition to this, he was responsible for an asphalt Roadway Master Plan, a Stormwater Master Plan Feasibility Study and an Emergency Operations Infrastructure Branch Plan, which he presented at the last Governors Hurricane Conference.

Director of Public Works Department- City Of Lauderdale Lakes (July 2005 to April 2007} As Director for the Lauderdale Lakes Public Works Department, Mr. Diez was responsible for every aspect of the Department including streets, storm water, landscaping, irrigation, facilities, fleet, solid waste and recycling.

· Project Manager for Capital Improvements Division - Palm Beach County Board of County Commissioners ' (June 2003 to July 2005}

Mr. Diez administered the engineering and architectural project development activities in the preparation of . construction documents for new buildings, renovations or building additions. Mr. Diez monitored the project permitting

process including federal, State and local regulatory requirements. He monitored all aspects of the construction process including invoicing, change orders and projects close out.

Capital Projects Manager - City Of Lauderhill, Department of Environmental and Engineering Services (May 1998 to June 2003) As Capital Projects Manager, his duties entailed cradle to grave management of all utility and public works construction projects for the City. His responsibilities included the simultaneous management of multiple projects in various phases of development including planning, consultant selection, design management, contractor selection, contract administration, invoicing, change orders, inspections and warranty administration.

' Construction Superintendent Dickerson Generating Station - Potomac Electric Power Company, Washington DC (June 1195- Apri11998) Mr. Diez was responsible for the overall coordination of projects from inception through operation. He developed project goals, scopes, specifications, budgets, bid packages, contract documents and schedules as needed.

Senior Construction Supervisor Generating Construction Department- Potomac Electric Power Company, Washington De (December 1989- June 1995} Mr. Diez managed every aspect of a $15M complete electrical, controls, and instrumentation renovation of one of the largest power plants in the state of Maryland. He also managed the design, fabrication and erection of all electrical, controls and instrumentation of a new $21OM generating station.

Project Engineer Transmission & Distribution Administration Department- Potomac Electric Power Company, Washington DC (July 19878 to December 1989} Mr. Diez managed the design and installation of underground high voltage transmission pipeline projects totaling $20M, 1 0 miles of pipeline and 30 circuit miles of pipe type cable.

-----Original Message----

From: Jonathan Allen [mailto:[email protected]] Sent: Thursday, June 02, 20112:53 PM To: Manny Diez

Cc: Alex Vazquez Subject: Response: PW Director Proposal

Manny,

I'm down at a County Commission Meeting. Let's plan to start a 5-Day Schedule (part-time) beginning next and then move to a 3-Day Schedule the 2nd week and subsequent weeks. What's the weekly cost

as a task order under our existing contract?

I'll review the attached resume but everybody knows your background and experience. Sorry for the

delayed response. I've been under the gun. All the best! Thanks!! »Jonathan

Sent via BlackBerry by AT&T

mailto:mailto:[email protected]

From: [email protected] [mailto:[email protected]]

Sent: Friday, June 03, 201111:02 AM

To: Jonathan Allen

Cc: [email protected]

Subject: Manny Start Date

Jonathan:

I am planning to start at Lauderdale Lakes this coming Monday June 6 at BAM. I will call you early this

afternoon to confirm, or you can just respond to this message if you wish.

I thought of a few additional ways that you may be able to arrange for the costs:

1. Cut a PO for $25k under your authority as CM, that will get me through about 6 ~weeks, giving you time to go to commission

2. Prepare a requisition for the full amount $60k and call it an emergency (may not endear you to commission, but they should expect it)

3. Provide us with a Notice-to-Proceed for Monday and directing us to use the balance of one or both of the open task orders that we have with the City. Simone should have the details on this since I recently asked for Vince to research them. (There is only about $20k left on these tasks combined, but that will be enough until you get to commission)

Again, if there is anything that I can do to assist you with this, just let me know.

Talk to you soon ...

Regards, Manny Diez Sr. Project Manager A.D.A. Engineering, Inc. 1800 Old Okeechobee Road

Suite 202 West Palm Beach, FL 33409 T 561-615-8880, X. 210 c954-309-0786 F 561-615-8858 www.adaengi neering.com

PLEASE NOTE: The content included in this email, including any attachments, may include privileged and/or confidential information. Any distribution, dissemination or copying of this communication, including attachments, by anyone other than the intended recipient is strictly prohibited and may be unlawful. If you are not the intended recipient. please notify the sender by replying to this message and then delete it from your system. Any views or opinions presented are solely those of the author and do not necessarily represent those of A.D.A. Engineering, Inc.

http:www.adaengineering.commailto:[email protected]:mailto:[email protected]:[email protected]

OIG 11-021

EXHIBIT 3

From: Simone campbell Sent: Wednesday, June 08, 2011 3:58 PM To: Jonathan Allen Cc: '[email protected]'; Manny Diez; Diane LeRay; Geeta Ramharry Subject: REQ 11100093 ADA Engineering (Public Works Mgmt Services- Manny Diez) Importance: High

Jonathan,

Please approve the above released requsition. Attached is the proposal. As per your instructions, I'll do a change order to increase the PO every 6 weeks.

mailto:[email protected]

Bill To City of Lauderdale Lakes Attn: Accounts Payable4300 N.W. 36th Street Lauderdale Lakes, FL

33319-5599

Requisition 11100093-00 FY 2011

Acct No: 4011302-3410 Review: Buyer: jona Status: Released Page 1

Vendor Ship To A.D.A. ENGINEERING, .INC Public Works Department11401 S.W.40TH STREET City of Lauderdale Lakes SUITE 470 3463 N.W. 43rd Ave.

Lauderdale Lakes, FL 33319-5599 MIAMI, FL 33165 U.S.A.

Tel#305-551-4608 Fax 305-551-8977

Date IVendor IDate IShipOrdered Number Required Via ITerms !Department 06/08/11 1005644 !PUBLIC WORKS ADMINISTRATION

LN Description I Account Qty Unit Price Net Price Vendor Sourcing Notes

REF: CONTRACT 06-1302-01R

001 PUBLIC WORKS MANAGEMENT SERVICES 6.00 3805.92000 22835.52 (MANNY DIEZ) FOR THE CITY OF

LAUDERDALE LAKES FROM JUNE 6, 2 011 WK

THRU SEPTEMBER 4011302-3410

30, 2011. 22835.52

Ship To Public Works DepartmentCity of Lauderdale Lakes 3463 N.W. 43rd Ave. Lauderdale Lakes, FL 33319-5599

Bid Number:

Requisition Total 22835.52

***** General Ledger Summary Section ***** Account Amount Remaining Budget 4011302-3410 22835.52 47691.50

***** Approval/Conversion Info ***** Activity Date Clerk Comment

Queued 06/08/1Uonathan Allen

Authorized By: Date: s~gnature

http:47691.50http:22835.52http:22835.52

~llA·D·Allii(MIIIMMt.jlj![M

June 1, 2011

Mr. Jonathan Allen

Acting City Manager


3463 NW 361h Street

Lauderdale Lakes, Florida33319-5599

REFERENCE: PROPOSAL FOR PROVIDING PUBLIC WORKS MANAGEMENT SERVICES TO THE CITY

Dear Mr. Allen:

As per your request, ADA Engineering is pleased to provide the City of Lauderdale Lakes with a plan and proposal for providing Public Works Management Services to the City on an interim basis. The scope of services envisioned would include, but not be limited to, the following duties:

• Provide daily leadership and guidance to current Public Works Staff • Analyze and resolve resident complaints and issues • Provide technical and managerial advice to the City • Manage ongoing maintenance operations • Attend required meetings and conferences on behalf of the City • Attend Commission and Board meetings as required • Assist with the preparation of budgets, estimates, maintenance plans and schedules • Evaluate and report on performance standards and measures • Assist in the management of grant funding • Provide leadership in emergency management if needed • Administer employee discipline and coaching as required • Review and approve requisitions, leave requests, invoices and payroll • Evaluate contracting strategy and provide recommendations for improvements • Assist the City Manager with other duties as request~d











Enc: Fee Proposal

FEE PROPOSAL

THE CITY OF LAUDERDALE lAKES

PROPOSAl FOR PROVIDING PUBLIC WORKS MANAGEMENT SERVICES TO THE CITY

Labor Rate -Manny Diez, Project Manager $158.58

Assumed number of hours per week 24 hours

Number of weeks (June 6- Sept 30} 17 weeks

Weekly cost $3,805.92

Total Cost $64,700.64

Note: No reimbursable expenses are anticipated for this task order.

OIG 11-021

EXHIBIT4

From: Diane LeRay Sent: Wednesday, June 08, 2011 4:03 PM To: Simone Campbell; Jonathan Allen Cc: '[email protected]'; Manny Diez; Geeta Ramharry Subject: RE: REQ 11100093 ADA Engineering (Public Works Mgmt Services- Manny Diez)

All:

Please be advised that that the total amount of the proposal exceeds that of the City Manager's authority. Therefore, before Purchasing can issue a purchase order, a resolution with the approval by the City Commission needs to be submitted to move forward accordingly.

Thank you, Diane LeRay, CPPO, CPPB, FCPM Purchasing & Contracts Manager I Purchasing Division

City of Lauderdale Lakes 4300 NW 36th Street I Lauderdale Lakes, FL 33319 V: 954-535-2743 F: 954-733-3276 [email protected] www.lauderdalelakes.org

lUI New City Hall hours to serve you better and help the environment!

Monday- Thursday 7:00a.m. - 6:00 p.m. Closed on Fridays

The City of Lauderdale Lakes is a public entity subject to Chapter 119 of the Florida Statutes concerning public records. E-mail messages are covered under such law and thus subje~i to disclosure. All E-mails sent and received are captured by our servers and kept as public record.

http:www.lauderdalelakes.orgmailto:[email protected]:[email protected]

From: Simone Campbell Sent: Thursday, June 09, 201111:31 AM To: Manny Diez Cc: Geeta Ramharry; Diane LeRay; Jonathan Allen Subject: RE: REQ 11100093 ADA Engineering (Public Works Mgmt Services- Manny Diez) Importance: High

Manny: As per the ICM, please re-do the ADA Engineering Proposal & Fee Proposal for 6 weeks effective June 6, which totals $22,835.52. We'll have to do an agenda item for a Commission meeting for the total.

Purchasing: Please don't reject the requisition because that part is accurate. I'll send you the revised proposal for $22,835.82

Simone Campbell Administrative Coordinator I Public Works and Engineering Services

City of lauderdale lakes 4300 NW 36th Street I lauderdale lakes, FL 33319 V: 954-535-2779 F: 954-535-0799 [email protected] www.lauderdalelakes.org

lUI New City Hall hours to serve you better and help the environment! Monday- Thursday 7:00a.m.- 6:00p.m. Closed on Fridays

The City of Lauderdale Lakes is a public entity subject to Chapter 119 of the Florida Statutes concerning public records. E-mail messages are covered under such law and thus subject to disclosure. All E-mails sent and received are captured by our servers and kept as public record.

http:www.lauderdalelakes.orgmailto:[email protected]:22,835.82http:22,835.52

From: [email protected] [mailto:[email protected]] Sent: Thursday, June 09, 2011 11:36 AM To: [email protected] Cc: [email protected]; [email protected]; [email protected] Subject: RE: REQ 11100093 ADA Engineering (Public Works Mgmt Services- Manny Diez)

Will do.

mailto:[email protected]:[email protected]:[email protected]:[email protected]:mailto:[email protected]:[email protected]

From: [email protected] [mailto:[email protected]] Sent: Thursday, June 09, 2011 4:17PM To: [email protected]; [email protected] Cc: [email protected]; [email protected] Subject: RE: REQ 11100093 ADA Engineering (Public Works Mgmt Services- Manny Diez)

Hello All: In order to make this as simple as possible on all parties and considering that my company will not be preparing a bill for this until the end of the month, perhaps the best thing to do is to proceed with putting the entire requisition in front of commission at one time, hopefully for the last meeting in June. That way the amount of work needed is reduced and all noses are kept clean.

From: Diane LeRay Sent: Thursday, June 09, 201112:22 PM To: Simone campbell Cc: Geeta Ramharry; Jonathan Allen; Manny Diez Subject: RE: REQ 11100093 ADA Engineering (Public Works Mgmt Services- Manny Diez)

Simone:

May I suggest, based on the knowledge that the City Commission approval will ultimately be pursued for the total amount due to ADA Engineering, that instead of sending the requisition peace meal, that check requests be approved in lieu of the purchase order. This way Manny will not be affected adversely.

After the formal approval has been realized, then a request for purchase order with all backup documentation (resolution, PSA, etc.) can be submitted to Purchasing for the balance of the work order that has not been paid previous to the Commission approval.

It will be difficult for Purchasing to initiate a purchase order at this time with the knowledge that the amount submitted is only partial. In the interest of disclosure, it gives the perception of circumvention of the purchasing procedures.

Please advise should you need further clarification.

Diane LeRay, CPPO, CPPB, FCPM Purchasing & Contracts Manager I Purchasing Division

Lauderdale Lak~s t;~u:··na Fl:lll COtO~

City of Lauderdale Lakes 4300 NW 36th Street I Lauderdale Lakes, FL 33319 V: 954-535-2743 F: 954-733-3276 [email protected] www .lauderdalelakes.org

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OIG 11-021

EXHIBITS

From: [email protected] [mailto:[email protected]] Sent: Wednesday, June 15, 2011 8:57AM To: [email protected] Cc: [email protected]; [email protected] Subject: ADA Proposal

Jonathan: Attached is the proposal for six weeks of service to the City. If you will require my services for a longer period please advise at your earliest convenience. As we discussed, I have charged the first week of services to an existing task order that ADA has with the City. Please advise if this is acceptable to you. Manny Diez ADA Engineering

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FEE PROPOSAL

THE CITY OF LAUDERDALE LAKES

PROPOSAL FOR PROVIDING PUBLIC WORKS MANAGEMENT SERVICES TO THE CITY

Labor Rate -Manny Diez, Project Manager $158.58

Assumed number of hours per week 24 hours

Number of weeks (June 6- July 15) 6 weeks

Weekly cost $3,805.92

Total Cost $22,835.52

Note: No reimbursable expenses are anticipated for this task order.

June 1, 2011

Mr. Jonathan Allen

Acting City Manager


3463 NW 36th Street


REFERENCE: PROPOSAL FOR PROVIDING PUBLIC WORKS MANAGEMENT SERVICES TO THE CITY

Dear Mr. Allen:

As per your request, ADA Engineering is pleased to provide the City of Lauderdale Lakes with a plan and proposal for providing Public Works Management Services to the City on an interim basis. The scope of services envisioned would include, but not be limited to, the following duties:

• Provide daily leadership and guidance to current Public Works Staff • Analyze and resolve resident complaints and issues • Provide technical and managerial advice to the City • Manage ongoing maintenance operations • Attend required meetings and conferences on behalf of the City • Attend Commission and Board meetings as required • Assist with the preparation of budgets, estimates, maintenance plans and schedules • Evaluate and report on performance standards and measures • Assist in the management of grant funding • P~ovide leadership in emergency management if needed • Administer employee discipline and coaching as required • Review and approve requisitions, leave requests, invoices and payroll • Evaluate contracting strategy and provide recommendations for improvements • Assist the City Manager with other duties as requested


11401 S.W. 40th Street, Suite 470, Miami, Florida 33165



Mr. Jonathan Allen May 1, 2011 Page2 of2


ADA proposes using the current agreement between the City of Lauderdale Lakes and ADA (Contract Number 06-1302-0IR) to establish the terms and conditions along with the pay structure for this proposal. ADA is willing to provide the services of Mr. Diez at the Project Manger rate, in spite of his title and pay class of Senior Project Manager with the firm. This offer is extended to the City due to the long stating relationship between our two organizations and the fact the ADA wishes to assist the City get through these difficult times, both financial and staffing wise.


It is our understanding that the City is unsure of how long they will be in need of Mr. Diez' s services. Therefore, we are attaching a cost estimate for your use in preparing the not-to-exceed purchase order for a six week term. If his services are required for a longer period, the ·City can either choose to issue a change-in-order for the additional time, or ADA can provide a revised proposal. The total anticipated cost for this purchase order is $22,835.52.


Enc: Fee Proposal

http:22,835.52

From: Manny Diez [mailto:[email protected] Sent: Wednesday, June 15, 201112:19 PM To: Alex Vazquez Subject: FW: ADA Proposal

Alex: Jonathan asked that I revise our proposal for an amount under his signature authority of $25k. Attached is that revised proposal. That will pay for 6 weeks of time +/-. He also wants me to provide a proposal for the balance of the time. I will put that together asap. Manny

From: Manny Diez Sent: Wednesday, June 15, 2011 8:57AM To: Jonathan Allen Cc: Diane LeRay; Simone Campbell Subject: ADA Proposal

Jonathan: Attached is the proposal for six weeks of service to the City. If you will require my services for a longer period please advise at your earliest convenience. As we discussed, I have charged the first week of services to an existing task order that ADA has with the City. Please advise if this is acceptable to you. Manny Diez ADA Engineering

PLEASE NOTE: The content included in this email, including any attachments, may include privileged and/or confidential information. Any distribution. dissemination or copying of this communication, including attachments, by anyone other than the intended recipient is strictly prohibited and may be unlawful. If you are not the intended recipient, please notify the sender by replying to this message and then delete it from your system. Any views or opinions presented are solely those of the author and do not necessarily represent those of ADA Engineering, Inc.

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From: [email protected] [mailto:[email protected]] Sent: Wednesday, June 1

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