Mayor Peyton speech - Jacksonville City Council, 28 August, 2007

<p><i>This is the complete text of Mayor John Peyton's speech to the
Jacksonville City Council in which he appoints City Ethics' Carla
Miller as Ethics Officer.</i><br>
<b>August 28, 2007</b>
<h1>
Peyton apologizes, promises reforms, looks to the future</h1>
<p>
These are demanding and difficult times for Jacksonville, a city with a
proud tradition of fiscal responsibility. </p>
<p>For the past 12 years, we have enjoyed the lowest
property tax rate of any major city in Florida, and we have lowered
that rate every year. And, until now, we have also been able to avoid
charging fees that others throughout the state have been paying for
many years. </p>
<p>The Florida Legislature changed that scenario
dramatically, necessitating a major shift in how we manage our
finances. </p>
<p>Its sweeping changes to the state's property tax
system significantly reduced the amount of revenue Jacksonville could
expect in the coming year, leaving us with a $65 million shortfall. </p>
<p>To address that shortfall and make provisions for the
city's future, my 2007-08 budget proposes a blend of reductions and
cuts, combined with the institution of three fees similar to those
already in effect throughout the state. </p>
<p>Make no mistake about it: We are not making these
changes just to "fill a hole" in the budget. We are making them to
ensure we can continue to provide core services like public safety and
infrastructure maintenance. </p>
<p>We are also taking steps to make sure that
Jacksonville's quality of life - the thing that sets us apart from
other cities - is maintained. </p>
<p>On one hand, we are asking citizens, city employees
and the nonprofit community to tighten their belts and make do with
less. On the other, we are asking Jacksonville residents to pay the
three fees I have mentioned. </p>
<p>These fees are moderate, and they have been
structured so as not to impose an undue burden on any individual or
business. They are also smaller than comparable fees throughout the
state. Still, I regret the need for them, because they represent a
change in our way of doing business, and change is not easy,
particularly when it involves money. </p>
<h2>Hiring mistakes were 'inexcusable' </h2>
<p>We are asking for these changes at the same time that
we are working hard to correct deficiencies in the way the city
procures professional services. The hiring of two contractors who were
personal friends of mine, one of whom was a former staff member in The
Mayor's Office, should not have happened. </p>
<p>Our government is only as good as the processes in
place and the people who administer them, and these incidents were a
failure of both. They are inexcusable; and, although I was not involved
in the hiring process, I am ultimately responsible. I am deeply sorry
about this lapse in judgment and I apologize. </p>
<p>Over 2,800 formal contracts, worth in excess of $1
billion, have been executed since I took office, along with an average
of approximately 16,000 purchase orders per year. However, even one
incorrect or inappropriate award erodes the public's trust, and it is
important to address citizens' concerns in the most immediate,
conscientious and transparent manner possible. </p>
<p>I have taken corrective actions to ensure that
incidents like these do not occur again. Some of these actions were
begun prior to the discovery of contract improprieties, and others
directly address deficiencies that were recently revealed. The action
steps are as follows: </p>
<ul>
<li>The establishment of a high-level, in-house ethics
officer for the city of Jacksonville. I have asked Carla Miller to take
on this important responsibility. She is a former federal prosecutor,
former chair of the Jacksonville Ethics Commission and internationally
recognized expert on government ethics who has served our city well
over the past few years as a volunteer. </li>
<li>She has been an invaluable resource to
municipalities throughout the nation and governments throughout the
world in this regard. I have asked that she work closely with the
Jacksonville Ethics Commission, chaired by Mary Alice Phelan, upon
assuming her position. The commission has done important work that
should be built upon. </li>
<li>The establishment of an ethics hot line to
facilitate disclosure of ethical concerns by city employees. It will be
completely confidential. I encourage any city employee who believes
they know of a legal or ethical breech to call this hotline immediately
if their concerns are not appropriately addressed by their supervisor. </li>
<li>All reports will be investigated, and we will use
the information received to identify opportunities to improve internal
controls in the future. The hot line number is (904) 630-1015. </li>
<li>All city employees will be asked to agree to a
code of conduct developed by my team in conjunction with Miller, and
will be required to attend a training class regarding the code. The
jobs we hold in government are a public trust, and we must execute our
duties in a manner that is above reproach. </li>
</ul>
<h2>New auditing oversight </h2>
<ul>
<li>As part of the government reorganization I have
proposed, we will create the position of inspector general for the city
of Jacksonville. I have asked Pamela Markham, presently the deputy
chief administrative officer and a longtime auditor in the Office of
the City Council Auditor, to carry out this important function,
reporting directly to me.<br>
Markham will establish an internal working group to assist in the
implementation of new compliance and internal control systems. Our city
employees are good people, and rules already exist to ensure that the
public trust is maintained. However, we need to make sure those rules
are being followed. </li>
<li>I will recommend the city engage a nationally
recognized accounting firm to assist in the establishment of an
internal controls program, primarily in our procurement department and
each using agency that purchases goods and services. While I am hopeful
that a firm will participate on a pro bono basis, I am prepared to
dedicate up to $50,000 to such a project. </li>
<li>As part of my proposed reorganization of the
government, internal functions like human resources, procurement and
accounting will be consolidated into one area. This will eliminate
duplication and redundancy, improve communication within the
government, and eliminate "silos" that have come to exist over the
years, promoting greater transparency and collaboration. </li>
</ul>
<h2>Procurement reforms </h2>
<p>In addition to the steps detailed above, we will
review the city's purchasing code and tighten our practices. Devin
Reed, the city's present director of procurement, has suggested a
number of improvements, including: </p>
<ul>
<li>City procurement staff will establish specific
minimum requirements in all bid documents. Minimum requirements will be
located in a prominent place within the solicitation document and will
consist of objective pass/fail criteria that clearly communicate
whether the bid or proposal can go forward. Only after a procurement
buyer and the applicable awards committee establish that a potential
vendor meets the minimum requirements will the vendor's bid or proposal
be considered. Procurement staff will bear the responsibility of
ensuring that all minimum qualifications are met in every instance. </li>
<li>All requests for awards will be advertised, so the
public has the opportunity to know what services the city contemplates
using. </li>
<li>All scopes of work must be incorporated into a
written agreement and approved by the mayor or his designee prior to
the commencement of the work. Change orders must also be written and
approved in writing. </li>
<li>Using departments will no longer be allowed to
open any bid documents. Bids may only be opened by procurement staff,
and failure to comply will disqualify the award of the bidder. </li>
<li>The Procurement Department will continue with the
implementation of new software for contract monitoring. </li>
<li>City awards committees, when reviewing proposals,
will no longer be allowed to approve any vendor or service with any
conditions attached. At the time the awards committee meets to make
selections, the proposals must be complete or the committee will reject
the award. </li>
<li>All personnel throughout the government who deal
with procurement will receive intensive training to make sure they know
what is expected of them and to eliminate future errors. </li>
</ul>
<p>Much of what I will propose is contained in the
Taxation, Revenue and Utilization of Expenditures (TRUE) Commission's
recommendations from this spring. In this report, they identified
substantial strengths in our processes, but they also found important
opportunities to improve. </p>
<h2>Moving forward</h2>
<p>These are demanding times for our city. We are
grappling with financial issues that will affect us all for generations
to come, while adjusting to the fact that our state Legislature is now
willing and able to interfere with home rule. At the same time, we are
working to address serious lapses in judgment that led to the contract
awards described above. </p>
<p>When I took office, I pledged to work day and night
to be the best possible steward for the taxpayers of this city.
Implicit in that pledge was a promise to maintain the highest standards
of accountability and integrity in the operation of our government. </p>
<p>I deeply regret that recent events have cast doubt
upon that promise and my administration, and I am committed to
addressing the failures that resulted in these errors. </p>
<p>I want to thank the people of Jacksonville for their
faith and confidence. I have recommitted my efforts to making sure that
your city government is worthy of your trust. </p>
<p>As we prepare to move forward, I ask you to join me
in refocusing on the priorities we established four years ago: growing
our economy; creating jobs; raising per capita income; responsibly
managing growth; enhancing early literacy; and maintaining our quality
of life, including public safety, infrastructure, and the preservation
of our rich and diverse natural resources. </p>
<p>I ran for mayor because I believed in the future of
Jacksonville and I wanted to make a difference. </p>
<p>I still believe in Jacksonville's future, and I know
that the challenges we face today can be resolved if we meet them
together. </p>
<p>With hard work, forthright attention to our
weaknesses and faith in each other, we can make Jacksonville the great
American city in which we all want to live. </p>
<p>Thank you again for your confidence.</p>