Daniel J Ste rmer Mayor

Angel M Gomez Commissioner

Toby Feue r Commissioner

Jim Norton Commissioner

Thomas M Kallman Commission er

John R Flint City ManagerCEO

BROWAHD INSPECTOR GENERAl

2 December 20 7 4 1f l ij n - l Imiddot - ~ - middot l bull ~~ 0middot gtrbull middot middot - middot tl I l _- )

john W Scott Inspector General Broward Office of th e Inspector Gen era l O ne North University Drive Suite 711 Plantation FL 33324

Re Status Report - 0G Final Report Re Employee and Vendor Misconduct and Gross Mismanagement by the City of Weston Ref No 0G 13-014

Dear Mr Sco tt

O n Sep tember 5 20 14 th e O ffice o f the Inspector General (the OIC) issued the fina l report on th e above referenced matter (th e Report) In the Report the OIC requests th at it be provided w ith a sta tus report by December 5 207 4 regarding th e City of Wes tons (the City) actions in response to the Report and th e status o f the C ity s lawsuit against Varney and Sons Tree Expert Co Inc ( Varn ey) including any recovery of overbilled amounts and dam ages The purpose o f this correspondence is to provide the O IC with the requested info rma tion

CITYS RESPONSE TO 0GS RECOMMENDATIONS- UPDATE

7 O IG Recommendation Assess the responsibility and integrity of Varn ey amp Sons for continued performance of current contracts and eligibi lity for future City contracts

Citys Response The City Commission at its first m eeting after receipt of the O IG Report voted unanimo usly to terminate the Citys contract with Varn ey The contract was terminated on August 78 2014

2 O IG Recommendation In accordance w ith th e Citys current contract with V arn ey amp Sons withhold all pending payments and any payments that may come due for additional work until such time as the City dete rmines th at is has been made who le

Citys Response The City Commission unanimousl y directed the suspension of all pending and future payments to Varn ey The City initially withheld $4250978 in pending invoices Subsequently additional invoices w ere identified and th e amount b eing withheld rose to $6 179248 The City and Varney entered into a settlement agreem ent providin g fo r th e C ity to retain th e withheld $6179248 as a credit w ith no further payments due to Varney

The Nation s Premier Munic ipal Corporation5

17200 Roya l Palm Bo ulevard bull Weston Florida 33326 bull Pho ne 954 -385-2000 bull Fax 954-385-20 I 0 bull wwwwestonllorg

Jo hn W Scott 2 D ecember 2014 Page 2 o f 6

3 O IG Recommendati on Evaluate potential legal action

Citys Response The City Commission unanimousl y autho rized and directed the City A ttorn ey to file a lawsuit against Varney to recover all overbilled am o un ts and seek da mages The City filed the lawsuit against Varney in Broward County Circuit Court on August 19 20 14 Case No CACE-14-0 16202 The lawsuit resulted in a favorable settlem ent fo r the City as further d etailed below

4 O IG Recommendation Establi sh writte n procedures for plac ing orders for landscapin g w ork and trackin g the frequency of tree trimmin g This information can be utili zed b y the City in th e future to negoti ate co ntracts for only th ose services it requires and to save additional costs

Citys Resp onse The City is implementing a new Work Order and Asset M anagem ent Software to better document and track contracto r assignments and wo rk perfo rmed On D ecember 1 201 4 the City Commissio n awarded a contract for th e W ork O rder and Asset M anagem ent Software The system w ill operate as follows

bull Origination Wo rk order (WO) created b y City o f W esto n

Department (COW D )

bull Scheduling COW D assigns WO to on-s ite Co ntracto r personnel

o r extern al Contracto r

bull Execution W o rk comp leted b y Contractor and work deta ils

inputted o n WO b y Contractor

bull Review COWD inspects work for quality and completeness

bull Closing W o rk status changed to completed and clea red fo r

in vo icing Invo ice linked to WO

The sys tem is scheduled to be implem ented in th e first quarter of

201 5 and operational by the end of th e second quarter o f 201 5

5 O IG Recommend ation Establi sh a procedure fo r th e verifi cati on of co mpleted land scaping work that includes documentation th at can be revi ewe d by City management Verifi cation should make use of the ex isting Tree Pl an as one resource to identify potenti al fraud The City should maintain documentation th at w oul d permit City management to verify th at the empl o yees are exec uting their responsibiliti es

John W Sco tt 2 December 20 74 Page 3 of 6

Citys Response Until the implem entation of th e new Work Order and Asset Management Software in the coming mo nths City management is ass igning work in writing andor m eeting with the contractors on site monitoring the progress of th e work inspecting the work upon completion and assuring that th e work invoiced by the contractor matches the work completed for th e scheduled units and costs The Tree Inventory is one resource to manage th e Citys urban forest and whose primary purpose is to give an overview of th e urban fores t however it is not intended to replace physical monitoring inspection of work and compliance with work orders and contracts

6 OIG Recommend ation Consider whether paym ent by unit pri ces based on tree diameters for arboricultural servi ces is appropriate and cost effective given the Citys demonstrated inability to monitor such contracts

Citys Response City managem ent has determined that unit pricing based on diameter breast height is likely not the most effic ient and effective m ethod for pricing arboricultural services The City is preparing a new Request for Proposals for Arboricultural Services The RFP will provide for pricing based on an hourly rate W ork w ill be assigned via the Citys new Work Order and Asset Management Software and each work order will be negotiated with th e contractor to establish the number of hours for the work ass igned The contractor and the work will be monitored b y the Citys landscape staff For interim arboricultural services the City obtained written proposals for hourly work from three contractors Initially the City had sufficient work to use all three contractors upon completion o f that work th e City has sufficient work for one contractor and th e City is using the contractor with the lowest cost

ADDITIONAL CITY ACTIONS- UPDATE

7 Employee Disclosure Forms- Selection Committee Participatio n

On November 77 2014 th e City Commission amended Chapter 32 Acquisition of Goods and Services and Disposal of City Property of th e Citys Code of Ordinances to require each Selection Committee m ember and th e technical advisor to complete and execute an indep endence affidavit Th e City Manager will review the independence affidavits to ensure that no conflicts of interest exist

John W Scott 2 December 20 14 Page 4 of 6

8 Improved Identification System for Verifying Tree Trimming Work Performed

Sin ce February 2014 the City h as been utiliz in g street light pole numbers for a more precise reference for work identification and verification purposes as opposed to the Citys former method of using street n ames for location referen ces Further the new Work O rder and Asset Management Software coupled with the new pricing metho do logy will add to improved identifica tion fo r verification o f tree trimming work performed

9 Ethics Training

O n August 27 20 14 th e City provided ethics training for all City employees and designated Weston ass ign ed contracto r personnel The training sessio n was attended by all nine City employees as well as 82 employees from its primary service p roviders City management will now make ethics training fo r all City employees and designated Weston assigned contractor p ersonnel an annual event as well as providing ethics training for newly hired individuals within 60 days o f hire

10 Revised Administrative Policies fo r City Employees and Service Prov iders

Section 4 13 o f th e Citys Administrative Policies for Serv ice Providers and Section 327 of the Employment and Benefit Polic ies fo r City Employees now exp licitly prohibits employees and contracted designated supervisor personnel respective ly fro m maintaining improper personaloutside business relationships w ith firms they are responsible fo r monitoring on behalf o f th e City

11 Periodic Review of Pro curement Code fo r Enhan cernents

The City periodically review s its Procuremen t Code fo r potential modifications and improvem ents that foster more transparency and competition See Item No 7 above as an example

12 Current Internal Review of all Landscaping Contracts

The City is currently preparing a new Request for Proposa ls fo r Compreh ens ive Parks Maintenance which will provide for separate pricing in the fo llowin g five venues Regional Park Tequesta Trace Park Vista Park Small Parks Turf C rass and Small Parks Non-turf C rass This new RFP will enable the City to

john W Sco tt 2 December 2014 Page 5 of 6

implement better measurem ent m ethods fo r the cost o f work enhan ce performance verification utiliz in g th e new Work O rder and Asset M an agement Software and promote increased participation and competition by segmenting the work

73 Term ination of Creensource Contracts and New Procurement for City Parks Landscaping and Maintenance

On Sep tember 15 2014 the City Commission authorized the issuance of a Request for Proposa ls for landscaping and m aintenance of th e C itys parks (see Item No 12 above) and authorized th e C ity Manager to termina te th e existing contracts with C reenso urce upon th e effective date of th e new contracts resulting from the RFP

14 Implem enting Annual Emp loyee Independence Affidavits

The City has developed an Annual Fiscal Year Audit D isclosure for City Employees to be filed by each C ity employee by March 1 of each year The disclosure form tra cks the lang uage in the form th at is used by the Citys independent auditor for execution by th e City M an ager and Chief Financial Officer

15 Training o n Fraud Discovery and Prevention

On August 20 2014 the Citys Assistant City ManagerChief Operating Officer attended a seminar held by the Association of Certified Fraud Examiners (ACFE) on Investiga tin g Conflicts of Interests amp Procurement Fraud H e took deta iled notes at the seminar and sh ared this va l uab le inform ation with City sta ff upon his return The City is committed to continued training and education for City m anagem ent

ADDITIONAL CITY ACTIONS- NEW

76 The C ity w ill prepare a new Request for Proposa ls for grounds maintenance to in clude rights-of-w ays and facilities upon completion of the RFPs for Comprehens ive Parks Maintenance and for Arboricultural Services

j ohn W Sco tt 2 December 20 14 Page 6 o f 6

CITY OF WESTON VS VARNEY AND SONS~ INC- UPDATE

O n December 1 20 14 th e City Commission app roved a settlemen t with Varney providing fo r $2 71 J92 48 settlement in favor of the City Under the Settlement Agreement Varn ey is required to pay the City $150000 within 30 days o f t he executed Settlement Agreement and the City reta ins $6 1 J 92 48 as a credit aga inst the o utstand ing Varney in voices w ith no furth er pa yments due to Varney

The City appreciates the 0 Cs ongoing interest in the Citys

improvements an d enhancemen ts o f its interna l contro ls

Sincerel y

THE CITY OF W ESTON

jo hn R Flint C ity M anagerCEO

C H o no rable M ayor and City Com m issioners Jamie Alan Cole City Attorney

5920vl

John W Sco tt 2 December 20 74 Page 3 of 6

Citys Response Until the implem entation of th e new Work Order and Asset Management Software in the coming mo nths City management is ass igning work in writing andor m eeting with the contractors on site monitoring the progress of th e work inspecting the work upon completion and assuring that th e work invoiced by the contractor matches the work completed for th e scheduled units and costs The Tree Inventory is one resource to manage th e Citys urban forest and whose primary purpose is to give an overview of th e urban fores t however it is not intended to replace physical monitoring inspection of work and compliance with work orders and contracts

6 OIG Recommend ation Consider whether paym ent by unit pri ces based on tree diameters for arboricultural servi ces is appropriate and cost effective given the Citys demonstrated inability to monitor such contracts

Citys Response City managem ent has determined that unit pricing based on diameter breast height is likely not the most effic ient and effective m ethod for pricing arboricultural services The City is preparing a new Request for Proposals for Arboricultural Services The RFP will provide for pricing based on an hourly rate W ork w ill be assigned via the Citys new Work Order and Asset Management Software and each work order will be negotiated with th e contractor to establish the number of hours for the work ass igned The contractor and the work will be monitored b y the Citys landscape staff For interim arboricultural services the City obtained written proposals for hourly work from three contractors Initially the City had sufficient work to use all three contractors upon completion o f that work th e City has sufficient work for one contractor and th e City is using the contractor with the lowest cost

ADDITIONAL CITY ACTIONS- UPDATE

7 Employee Disclosure Forms- Selection Committee Participatio n

On November 77 2014 th e City Commission amended Chapter 32 Acquisition of Goods and Services and Disposal of City Property of th e Citys Code of Ordinances to require each Selection Committee m ember and th e technical advisor to complete and execute an indep endence affidavit Th e City Manager will review the independence affidavits to ensure that no conflicts of interest exist

John W Scott 2 December 20 14 Page 4 of 6

8 Improved Identification System for Verifying Tree Trimming Work Performed

Sin ce February 2014 the City h as been utiliz in g street light pole numbers for a more precise reference for work identification and verification purposes as opposed to the Citys former method of using street n ames for location referen ces Further the new Work O rder and Asset Management Software coupled with the new pricing metho do logy will add to improved identifica tion fo r verification o f tree trimming work performed

9 Ethics Training

O n August 27 20 14 th e City provided ethics training for all City employees and designated Weston ass ign ed contracto r personnel The training sessio n was attended by all nine City employees as well as 82 employees from its primary service p roviders City management will now make ethics training fo r all City employees and designated Weston assigned contractor p ersonnel an annual event as well as providing ethics training for newly hired individuals within 60 days o f hire

10 Revised Administrative Policies fo r City Employees and Service Prov iders

Section 4 13 o f th e Citys Administrative Policies for Serv ice Providers and Section 327 of the Employment and Benefit Polic ies fo r City Employees now exp licitly prohibits employees and contracted designated supervisor personnel respective ly fro m maintaining improper personaloutside business relationships w ith firms they are responsible fo r monitoring on behalf o f th e City

11 Periodic Review of Pro curement Code fo r Enhan cernents

The City periodically review s its Procuremen t Code fo r potential modifications and improvem ents that foster more transparency and competition See Item No 7 above as an example

12 Current Internal Review of all Landscaping Contracts

The City is currently preparing a new Request for Proposa ls fo r Compreh ens ive Parks Maintenance which will provide for separate pricing in the fo llowin g five venues Regional Park Tequesta Trace Park Vista Park Small Parks Turf C rass and Small Parks Non-turf C rass This new RFP will enable the City to

john W Sco tt 2 December 2014 Page 5 of 6

implement better measurem ent m ethods fo r the cost o f work enhan ce performance verification utiliz in g th e new Work O rder and Asset M an agement Software and promote increased participation and competition by segmenting the work

73 Term ination of Creensource Contracts and New Procurement for City Parks Landscaping and Maintenance

On Sep tember 15 2014 the City Commission authorized the issuance of a Request for Proposa ls for landscaping and m aintenance of th e C itys parks (see Item No 12 above) and authorized th e C ity Manager to termina te th e existing contracts with C reenso urce upon th e effective date of th e new contracts resulting from the RFP

14 Implem enting Annual Emp loyee Independence Affidavits

The City has developed an Annual Fiscal Year Audit D isclosure for City Employees to be filed by each C ity employee by March 1 of each year The disclosure form tra cks the lang uage in the form th at is used by the Citys independent auditor for execution by th e City M an ager and Chief Financial Officer

15 Training o n Fraud Discovery and Prevention

On August 20 2014 the Citys Assistant City ManagerChief Operating Officer attended a seminar held by the Association of Certified Fraud Examiners (ACFE) on Investiga tin g Conflicts of Interests amp Procurement Fraud H e took deta iled notes at the seminar and sh ared this va l uab le inform ation with City sta ff upon his return The City is committed to continued training and education for City m anagem ent

ADDITIONAL CITY ACTIONS- NEW

76 The C ity w ill prepare a new Request for Proposa ls for grounds maintenance to in clude rights-of-w ays and facilities upon completion of the RFPs for Comprehens ive Parks Maintenance and for Arboricultural Services

j ohn W Sco tt 2 December 20 14 Page 6 o f 6

CITY OF WESTON VS VARNEY AND SONS~ INC- UPDATE

O n December 1 20 14 th e City Commission app roved a settlemen t with Varney providing fo r $2 71 J92 48 settlement in favor of the City Under the Settlement Agreement Varn ey is required to pay the City $150000 within 30 days o f t he executed Settlement Agreement and the City reta ins $6 1 J 92 48 as a credit aga inst the o utstand ing Varney in voices w ith no furth er pa yments due to Varney

The City appreciates the 0 Cs ongoing interest in the Citys

improvements an d enhancemen ts o f its interna l contro ls

Sincerel y

THE CITY OF W ESTON

jo hn R Flint C ity M anagerCEO

C H o no rable M ayor and City Com m issioners Jamie Alan Cole City Attorney

5920vl

John W Scott 2 December 20 14 Page 4 of 6

8 Improved Identification System for Verifying Tree Trimming Work Performed

Sin ce February 2014 the City h as been utiliz in g street light pole numbers for a more precise reference for work identification and verification purposes as opposed to the Citys former method of using street n ames for location referen ces Further the new Work O rder and Asset Management Software coupled with the new pricing metho do logy will add to improved identifica tion fo r verification o f tree trimming work performed

9 Ethics Training

O n August 27 20 14 th e City provided ethics training for all City employees and designated Weston ass ign ed contracto r personnel The training sessio n was attended by all nine City employees as well as 82 employees from its primary service p roviders City management will now make ethics training fo r all City employees and designated Weston assigned contractor p ersonnel an annual event as well as providing ethics training for newly hired individuals within 60 days o f hire

10 Revised Administrative Policies fo r City Employees and Service Prov iders

Section 4 13 o f th e Citys Administrative Policies for Serv ice Providers and Section 327 of the Employment and Benefit Polic ies fo r City Employees now exp licitly prohibits employees and contracted designated supervisor personnel respective ly fro m maintaining improper personaloutside business relationships w ith firms they are responsible fo r monitoring on behalf o f th e City

11 Periodic Review of Pro curement Code fo r Enhan cernents

The City periodically review s its Procuremen t Code fo r potential modifications and improvem ents that foster more transparency and competition See Item No 7 above as an example

12 Current Internal Review of all Landscaping Contracts

The City is currently preparing a new Request for Proposa ls fo r Compreh ens ive Parks Maintenance which will provide for separate pricing in the fo llowin g five venues Regional Park Tequesta Trace Park Vista Park Small Parks Turf C rass and Small Parks Non-turf C rass This new RFP will enable the City to

john W Sco tt 2 December 2014 Page 5 of 6

implement better measurem ent m ethods fo r the cost o f work enhan ce performance verification utiliz in g th e new Work O rder and Asset M an agement Software and promote increased participation and competition by segmenting the work

73 Term ination of Creensource Contracts and New Procurement for City Parks Landscaping and Maintenance

On Sep tember 15 2014 the City Commission authorized the issuance of a Request for Proposa ls for landscaping and m aintenance of th e C itys parks (see Item No 12 above) and authorized th e C ity Manager to termina te th e existing contracts with C reenso urce upon th e effective date of th e new contracts resulting from the RFP

14 Implem enting Annual Emp loyee Independence Affidavits

The City has developed an Annual Fiscal Year Audit D isclosure for City Employees to be filed by each C ity employee by March 1 of each year The disclosure form tra cks the lang uage in the form th at is used by the Citys independent auditor for execution by th e City M an ager and Chief Financial Officer

15 Training o n Fraud Discovery and Prevention

On August 20 2014 the Citys Assistant City ManagerChief Operating Officer attended a seminar held by the Association of Certified Fraud Examiners (ACFE) on Investiga tin g Conflicts of Interests amp Procurement Fraud H e took deta iled notes at the seminar and sh ared this va l uab le inform ation with City sta ff upon his return The City is committed to continued training and education for City m anagem ent

ADDITIONAL CITY ACTIONS- NEW

76 The C ity w ill prepare a new Request for Proposa ls for grounds maintenance to in clude rights-of-w ays and facilities upon completion of the RFPs for Comprehens ive Parks Maintenance and for Arboricultural Services

j ohn W Sco tt 2 December 20 14 Page 6 o f 6

CITY OF WESTON VS VARNEY AND SONS~ INC- UPDATE

O n December 1 20 14 th e City Commission app roved a settlemen t with Varney providing fo r $2 71 J92 48 settlement in favor of the City Under the Settlement Agreement Varn ey is required to pay the City $150000 within 30 days o f t he executed Settlement Agreement and the City reta ins $6 1 J 92 48 as a credit aga inst the o utstand ing Varney in voices w ith no furth er pa yments due to Varney

The City appreciates the 0 Cs ongoing interest in the Citys

improvements an d enhancemen ts o f its interna l contro ls

Sincerel y

THE CITY OF W ESTON

jo hn R Flint C ity M anagerCEO

C H o no rable M ayor and City Com m issioners Jamie Alan Cole City Attorney

5920vl

john W Sco tt 2 December 2014 Page 5 of 6

implement better measurem ent m ethods fo r the cost o f work enhan ce performance verification utiliz in g th e new Work O rder and Asset M an agement Software and promote increased participation and competition by segmenting the work

73 Term ination of Creensource Contracts and New Procurement for City Parks Landscaping and Maintenance

On Sep tember 15 2014 the City Commission authorized the issuance of a Request for Proposa ls for landscaping and m aintenance of th e C itys parks (see Item No 12 above) and authorized th e C ity Manager to termina te th e existing contracts with C reenso urce upon th e effective date of th e new contracts resulting from the RFP

14 Implem enting Annual Emp loyee Independence Affidavits

The City has developed an Annual Fiscal Year Audit D isclosure for City Employees to be filed by each C ity employee by March 1 of each year The disclosure form tra cks the lang uage in the form th at is used by the Citys independent auditor for execution by th e City M an ager and Chief Financial Officer

15 Training o n Fraud Discovery and Prevention

On August 20 2014 the Citys Assistant City ManagerChief Operating Officer attended a seminar held by the Association of Certified Fraud Examiners (ACFE) on Investiga tin g Conflicts of Interests amp Procurement Fraud H e took deta iled notes at the seminar and sh ared this va l uab le inform ation with City sta ff upon his return The City is committed to continued training and education for City m anagem ent

ADDITIONAL CITY ACTIONS- NEW

76 The C ity w ill prepare a new Request for Proposa ls for grounds maintenance to in clude rights-of-w ays and facilities upon completion of the RFPs for Comprehens ive Parks Maintenance and for Arboricultural Services

j ohn W Sco tt 2 December 20 14 Page 6 o f 6

CITY OF WESTON VS VARNEY AND SONS~ INC- UPDATE

O n December 1 20 14 th e City Commission app roved a settlemen t with Varney providing fo r $2 71 J92 48 settlement in favor of the City Under the Settlement Agreement Varn ey is required to pay the City $150000 within 30 days o f t he executed Settlement Agreement and the City reta ins $6 1 J 92 48 as a credit aga inst the o utstand ing Varney in voices w ith no furth er pa yments due to Varney

The City appreciates the 0 Cs ongoing interest in the Citys

improvements an d enhancemen ts o f its interna l contro ls

Sincerel y

THE CITY OF W ESTON

jo hn R Flint C ity M anagerCEO

C H o no rable M ayor and City Com m issioners Jamie Alan Cole City Attorney

5920vl

j ohn W Sco tt 2 December 20 14 Page 6 o f 6

CITY OF WESTON VS VARNEY AND SONS~ INC- UPDATE

O n December 1 20 14 th e City Commission app roved a settlemen t with Varney providing fo r $2 71 J92 48 settlement in favor of the City Under the Settlement Agreement Varn ey is required to pay the City $150000 within 30 days o f t he executed Settlement Agreement and the City reta ins $6 1 J 92 48 as a credit aga inst the o utstand ing Varney in voices w ith no furth er pa yments due to Varney

The City appreciates the 0 Cs ongoing interest in the Citys

improvements an d enhancemen ts o f its interna l contro ls

Sincerel y

THE CITY OF W ESTON

jo hn R Flint C ity M anagerCEO

C H o no rable M ayor and City Com m issioners Jamie Alan Cole City Attorney

5920vl