Purpose Method Reporting

Transcription

1 Purpose On September 26, 2007, while performing year-end inventory counts at the General Services/Purchasing Department, Compliance and Internal Audit observed County dump trucks operated by the Road & Bridge Department hauling fill material, in a rapid procession, from several large piles located on the Road & Bridge storage property. The activity was noted by Compliance and Internal Audit; however, was not considered an issue at the time of observation. Following observation, Compliance and Internal Audit received a complaint from an anonymous source alleging that County equipment was being utilized by the Road & Bridge Department to haul fill material to a private property located off Farm Road, Sebring. An investigation into the allegations was launched. Method The following activities were performed by Compliance and Internal Audit during our investigation into the allegations: Observed and documented activities of the Road & Bridge Department during the two week period of September 24 th thru October 8 th 2007 Reviewed Florida Statutes, the Florida Administrative Code, Rules of the Southwest Florida Water Management District and the Environmental Protection Agency, the Highlands County Municipal Code, and Board of County Commissioner s Purchasing Manual Reviewed fuel reports obtained from the Finance Department and the Purchasing Department Reviewed Break Even Reports utilized by the Road & Bridge Department for the Fiscal Year Performed analytical procedures in an effort to estimate a total cost to County taxpayers as a result of the misuse of County equipment and time and the improper disposal of County property Reporting This report will provide a summary of the significant issues and/or concerns identified by the based on our investigation into the allegations relating to the potential misuse of County property by the Road & Bridge Department. As you will note, the report has been divided into two sections based on the significant issues identified during our investigation into the allegations. The first section addresses general concerns; including the misuse of County resources, the value of the disposed material and the potential conflict of interest. The second section addresses the disposal of the material; including the improper disposal of solid waste, disposal of solid waste within 200 feet of a body of water, and the disposal of materials in a surface water area. Based on a conversation with the Southwest Florida Water Management District, it is believed that the disposal area is a surface water area; however, determination would need to be made by the appropriate parties. 1 of 13

2 SECTION I GENERAL CONCERNS 1) Misuse of County Time and Equipment During the two week period of September 24 th thru October 5 th 2007, Compliance and Internal Audit observed six County owned dump trucks (# 2140, 2096, 2068, 2062, 2179, 2061), a backhoe and loader, operated by employees of the Road & Bridge Department, being utilized to haul fill material from the Road & Bridge storage property to a private property located off Farm Road, Sebring (Attachment 1). County employees are responsible for protecting County assets and ensuring their efficient and proper use. County property, equipment, and vehicles should be used strictly for the performance of official duty as outlined in Section of the Board of County Commissioners Personnel Rules and Regulations Manual (Attachment 2). Compliance and Internal Audit utilized two methods in order to establish an estimated cost to County taxpayers as a result of the misuse of County time, equipment and material during this two week period. A) The first method of valuation was based on employee hourly rates and fuel consumption. During our observations, Compliance and Internal Audit identified, by vehicle number, six Road & Bridge dump trucks being utilized to haul fill material from the Road & Bridge storage property to a private property located off Farm Road, Sebring. By obtaining fuel consumption reports (Attachment 3), Compliance and Internal Audit was able to estimate the value of fuel consumed by the six trucks during the two week period and determine the employees assigned to these vehicles and their respective hourly rates. The following table provides a summary of the estimated costs to the taxpayer based on this method of calculation: Miles Driven Gallons Consumed Fuel Value Employee Hourly Rate Employee Hours Employee Value Vehicle , , , , , , , , Backhoe -. unavailable unavailable unavailable 80 unavailable Loader -. unavailable unavailable unavailable 80 unavailable Totals 6,464 1, $ 4, $ 6, Based on this method, the estimated cost to County taxpayers as a result of the misuse of County time and equipment is $10, of 13

3 It should be noted that the first method does not take into consideration maintenance, insurance or normal usage costs associated with the use of the dump trucks, nor does it take into consideration costs associated with employee benefits. We were unable to determine fuel consumption and employee hourly rates associated with the backhoe and loader utilized during these transactions. B) The second method of valuation was based on Break Even calculations prepared and utilized by the Road & Bridge Department (Attachment 4) for fiscal year Road & Bridge uses the Break Even calculations when billing intergovernmental departments for services provided. Vehicle Break Even Rate Vehicle Hours Vehicle Usage Value Employee Break Even Rate Employee Hours Employee Value Vehicle , , , , , , , , , , , , Backhoe , , Loader , , Totals 640 $ 10, $ 10, Based on this method, the estimated cost to County taxpayers as a result of the misuse of County time and equipment is $21, BOARD OF COUNTY COMMISSIONERS PERSONNEL RULES AND REGULATIONS USE OF COUNTY PROPERTY Employees shall not use County property, equipment, or vehicles except in the performance of official duty, nor permit their use by an unauthorized person, either on or off duty. Employees may be allowed to use vehicles to and from work with permission of the County Administrator and per de minimus functions described under the County vehicle use policy. 3 of 13

4 2) Value of Disposed Material Compliance and Internal Audit recognizes that the material provided by the County to this private individual provided the individual with a significant financial benefit. If required to purchase an appropriate fill material from an outside source, this individual would have paid approximately $ per load 1. Based on Compliance and Internal Audit observations, a review of fuel consumption reports which provided odometer readings, and analytical calculations, it is estimated that approximately 977 loads of fill material (Attachment 3) were hauled to the private property located off of Farm Road, Sebring (Attachment 5). It appears this fill material was utilized to fill craters that existed on the private property. The financial benefit to this individual as a result of this transaction is therefore estimated at $102, Cost per load is based on the following verbal estimates obtained by Compliance & Internal Audit on 10/19/07: Excavation Point Inc. - $ per load, 20 yards Hathaway s Land Services Inc. - $ per load, 18 yards Hickey Excavation Inc. - $ per load, 18 yards Ladwig Roy Landclearing - $ per load, 18 yards 4 of 13

5 3) Conflict of Interest During our investigation, Compliance and Internal Audit discovered that the individual who owns the private property also owns and operates a company that the County has conducted business with over the last several years. A review of payments made by the County to this company revealed that during the period of April 2000 through September 2007 the County purchased $1,519, in materials/services from this company. Section 2.70 of the Board of County Commissioner s Purchasing Manual (Attachment 6) addresses the issue of Conflict of Interest. If a Conflict of Interest did not exist prior to these transactions between the County and this vendor, it is likely it exists now. BOARD OF COUNTY COMMISSIONERS PURCHASING MANUAL SECTION 2 POLICIES 70 General Purchasing Policies All Purchases, Procurement, and Acquisitions (9) The General Services/Purchasing Director shall not knowingly issue a purchase order when there is evidence of a conflict of interest. In instances when a conflict may exist, but its existence is not clearly established, the General Services/Purchasing Director shall refer the matter to the Board Attorney for resolution. 5 of 13

6 SECTION II DISPOSAL OF MATERIAL I. Violations Resulting From the Improper Disposal of Solid Waste During the two week period of September 24 th thru October 5 th, Compliance and Internal Audit observed County dump trucks operated by employees of the Road & Bridge Department, hauling various mixtures of fill material, stored on the Road & Bridge storage property, to a private property located off Farm Road, Sebring (Attachment 1). The fill material observed was composed of a sand or sand/shell mixture and a sand, concrete, and asphalt mixture (Attachment 7) defined as construction and demolition debris (C&D) by the Florida Statutes and the Highlands County Municipal Code. The fill material appeared to be used to close in large craters which existed on the private property. The disposal of this C&D material, in a place other than a permitted solid waste management facility, is a violation of the Florida Statutes, the Florida Administrative Code and the Highlands County Municipal Code (Attachment 8, 9 & 10, respectively). FLORIDA STATUES CHAPTER 403 ENVIRONMENTAL CONTROL Prohibition. (1) A person may not: (a) Place or deposit any solid waste in or on the land or waters located within the state except in a manner approved by the department and consistent with applicable approved programs of counties or municipalities. However, this act does not prohibit the disposal of solid waste without a permit as provided in s (2) Definitions. (22) "Person" means any and all persons, natural or artificial, including any individual, firm, or association; any municipal or private corporation organized or existing under the laws of this state or any other state; any county of this state; and any governmental agency of this state or the Federal Government. (32) "Solid waste" means sludge unregulated under the federal Clean Water Act or Clean Air Act, sludge from a waste treatment works, water supply treatment plant, or air pollution control facility, or garbage, rubbish, refuse, special waste, or other discarded material, including solid, liquid, semisolid, or contained gaseous material resulting from domestic, industrial, commercial, mining, agricultural, or governmental operations. Recovered materials defined in subsection (24) are not solid waste. (31) "Special wastes" means solid wastes that can require special handling and management, including, but not limited to, white goods, waste tires, used oil, lead-acid batteries, construction and demolition debris, ash residue, yard trash, and biological wastes. 6 of 13

7 (6) "Construction and demolition debris" means discarded materials generally considered to be not water-soluble and nonhazardous in nature, including, but not limited to, steel, glass, brick, concrete, asphalt roofing material, pipe, gypsum wallboard, and lumber, from the construction or destruction of a structure as part of a construction or demolition project or from the renovation of a structure, and includes rocks, soils, tree remains, trees, and other vegetative matter that normally results from land clearing or land development operations for a construction project, including such debris from construction of structures at a site remote from the construction or demolition project site. Mixing of construction and demolition debris with other types of solid waste will cause the resulting mixture to be classified as other than construction and demolition debris. FLORIDA ADMINISTRATIVE CODE Prohibitions. (1) General prohibitions. (a) No person shall store, process, or dispose of solid waste except at a permitted solid waste management facility or a facility exempt from permitting under this chapter Definitions. The following words, phrases or terms as used in Chapters through , F.A.C., unless the context indicates otherwise, shall have the following meaning: (90) Person means any and all persons, natural or artificial, including any individual, firm, or association; any municipal or private corporation organized or existing under the laws of Florida or any other state; any county of this state; and any governmental agency of this state or the Federal Government. (113) Solid waste means: sludge unregulated under the federal Clean Water Act or Clean Air Act; sludge from a waste treatment works, water supply treatment plant, or air pollution control facility; or garbage, rubbish, refuse, special waste, or other discarded material, including solid, liquid, semi-solid, or contained gaseous material resulting from domestic, industrial, commercial, mining, agricultural, or governmental operations. Materials not regulated as solid waste pursuant to this chapter are: recovered materials; nuclear source or byproduct materials regulated under Chapter 404, F.S., or under the Federal Atomic Energy Act of 1954 as amended; suspended or dissolved materials in domestic sewage effluent or irrigation return flows, or other regulated point source discharges; regulated air emissions; and fluids or wastes associated with natural gas or crude oil exploration or production. (119) Special wastes means solid wastes that can require special handling and management, including but not limited to, white goods, waste tires, used oil, lead-acid batteries, construction and demolition debris, ash residue, yard trash, biological wastes, and mercury-containing devices and lamps. 7 of 13

8 (27) Construction and demolition debris means discarded materials generally considered to be not water soluble and non-hazardous in nature, including but not limited to steel, glass, brick, concrete, asphalt material, pipe, gypsum wallboard, and lumber, from the construction or destruction of a structure as part of a construction or demolition project or from the renovation of a structure, including such debris from construction of structures at a site remote from the construction or demolition project site. The term includes rocks, soils, tree remains, trees, and other vegetative matter which normally results from land clearing or land development operations for a construction project; clean cardboard, paper, plastic, wood, and metal scraps from a construction project; effective January 1, 1997, except as provided in Section (12)(j), F.S., unpainted, non-treated wood scraps from facilities manufacturing materials used for construction of structures or their components and unpainted, non-treated wood pallets provided the wood scraps and pallets are separated from other solid waste where generated and the generator of such wood scraps or pallets implements reasonable practices of the generating industry to minimize the commingling of wood scraps or pallets with other solid waste; and de minimis amounts of other non-hazardous wastes that are generated at construction or demolition projects, provided such amounts are consistent with best management practices of the construction and demolition industries. Mixing of construction and demolition debris with other types of solid waste will cause it to be classified as other than construction and demolition debris. HIGHLANDS COUNTY MUNICIPAL CODE CHAPTER 8 SOLID WASTE Section Mandatory disposal of municipal solid waste. All municipal solid waste, except horticultural trash not commingled with garbage, shall be disposed of exclusively at the county landfill except as approved in writing by the county administrator for delivery to a licensed recycling center. Section Prohibited acts. (a) No person shall place, deposit or dispose of any municipal solid waste or extraordinary waste, except at the county landfill. No person shall place, deposit, or dispose of any construction and demolition debris or horticultural trash, except at a landfill having all permits required by the county and FDEP. (h) A violation of any provision of this section shall be punished as provided in section Section Penalties. Any person found guilty of violating any provisions of this chapter shall be punished by a fine not exceeding $ or by imprisonment in the county jail for not more than 60 days, or by both such fine and imprisonment. 8 of 13

9 Section Definitions. Solid Waste shall mean both municipal solid waste and special solid waste, as defined below: (1) Municipal solid waste means garbage, horticultural trash, extraordinary waste and rubbish. (2) Special solid waste shall include hazardous waste, bio-hazardous waste, construction and demolition debris or sludge, as defined below: c. Construction and demolition debris shall mean discarded materials generally considered not to be water-soluble and nonhazardous in nature including, but not limited to, steel, glass, brick, concrete, asphalt roofing material, pipe, and lumber, from the construction or destruction of a structure as part of a construction or demolition project or from the renovation of a structure. If the demolition project is from a structure where hazardous materials or hazardous waste are or were managed, the debris will be considered hazardous waste and will not be considered construction and demolition debris as defined in this chapter unless tested and the results show otherwise. The term includes rocks, soils, tree remains, trees, and other vegetative matter which normally results from land clearing or land development operations for a construction project. Regulated asbestos-containing materials as defined in 40 CFR are excluded from the construction and demolition debris definition. Gypsum wallboard is excluded from the construction and demolition debris definition. Mixing of construction and demolition debris with other types of solid waste, including material which is not from the actual construction or destruction of a structure, will cause the waste to be classified as other than construction and demolition debris. 9 of 13

10 2) Florida Administrative Code Violation Disposal of Solid Waste within 200 feet of Water During the two week period of September 24 th thru October 5 th, Compliance and Internal Audit observed County dump trucks operated by employees of the Road & Bridge Department, hauling various mixtures of fill material, stored on the Road & Bridge storage property, to a private property located off Farm Road, Sebring (Attachment 1). The fill material observed was composed of a sand or sand/shell mixture and a sand, concrete, and asphalt mixture. The fill material appeared to be used to close in large craters which existed on the private property. The disposal of this material within 200 feet of a natural or artificial body (Attachment 11) of water is a violation of Chapter of the Florida Administrative Code (Attachment 9). FLORIDA ADMINISTRATIVE CODE Prohibitions. (2) Sitting. Unless authorized by a Department permit or site certification in effect on May 27, 2001, or unless specifically authorized by another Department rule or a Department permit or site certification based upon site-specific geological, design, or operational features, no solid waste shall be stored or disposed of by being placed: (f) Within 200 feet of any natural or artificial body of water unless storage or disposal takes place at a facility for which a complete permit application was filed or which was originally permitted before the water body was in existence Definitions. (13) Solid waste means: sludge unregulated under the federal Clean Water Act or Clean Air Act; sludge from a waste treatment works, water supply treatment plant, or air pollution control facility; or garbage, rubbish, refuse, special waste, or other discarded material, including solid, liquid, semi-solid, or contained gaseous material resulting from domestic, industrial, commercial, mining, agricultural, or governmental operations. Materials not regulated as solid waste pursuant to this chapter are: recovered materials; nuclear source or byproduct materials regulated under Chapter 404, F.S., or under the Federal Atomic Energy Act of 1954 as amended; suspended or dissolved materials in domestic sewage effluent or irrigation return flows, or other regulated point source discharges; regulated air emissions; and fluids or wastes associated with natural gas or crude oil exploration or production (119) Special waste means solid wastes that con require special handling and management, including but not limited to, white goods, waste tires, used oil, lead-acid batteries, construction and demolition debris, ash residue, yard trash, biological wastes, and mercury-containing devices and lamps. 10 of 13

11 SURFACE WATER AREA 3) Florida Statutes Violation Disposal of Materials in Surface Water Area During the two week period of September 24 th thru October 5 th, Compliance and Internal Audit observed County dump trucks operated by employees of the Road & Bridge Department, hauling various mixtures of fill material, stored on the Road & Bridge storage property, to a private property located off Farm Road, Sebring (Attachment 1). The fill material observed was composed of a sand or sand/shell mixture and a sand, concrete, and asphalt mixture. The fill material appeared to be used to close in large craters, potentially surface water areas 2, which existed on the property. In addition to the two violations noted above, the use of any material to fill a surface water area without the required permits is a violation of Chapter 373 of the Florida Statutes (Attachment 8), Chapter , and of the Florida Administrative Code (Attachment 9), Southwest Florida Water Management District Rule 40D-4 (Attachment 12) and Section 12 of the Highlands County Municipal Code (Attachment 10). FLORIDA STATUES CHAPTER 373 WATER RESOURCES Permits for construction or alteration. (2) A person proposing to construct or alter a stormwater management system, dam, impoundment, reservoir, appurtenant work, or works subject to such permit shall apply to the governing board or department for a permit authorizing such construction or alteration Prohibitions, violations, penalty, intent. (1) It shall be a violation of this part, and it shall be prohibited for any person: (b) To fail to obtain any permit required by this part or by rule or regulation adopted pursuant thereto, or to violate or fail to comply with any rule, regulation, order, or permit adopted or issued by a water management district, the department, or local government pursuant to their lawful authority under this part. (5) Any person who willfully commits a violation specified in paragraph (1)(b) or paragraph (1)(c) is guilty of a misdemeanor of the first degree, punishable as provided in ss (4)(a) and (1)(g), by a fine of not more than $10,000 or by 6 months in jail, or by both, for each offense. 2 Based on a discussion with the Southwest Florida Water Management District it is believed that the area filled may have been a surface water area. Determination of a surface water area would need to be made by the appropriate parties. 11 of 13

12 Definitions. When appearing in this part or in any rule, regulation, or order adopted pursuant thereto, the following terms mean: (3) Impoundment means any lake, reservoir, pond, or other containment of surface water occupying a bed or depression in the earth s surface and having a discernible shoreline. FLORIDA ADMINISTRATIVE CODE General Permit for Minor Activities. (1) A general permit is hereby granted for the construction, alteration, maintenance, operation, abandonment and removal of the following minor systems: (c) The dredging or filling or less than 100 square feet of wetlands or other surface waters; (3) Persons wishing to qualify for this general permit must file a notice, describing the proposed activities and providing plans and other information necessary to evaluate the potential for adverse impacts from the proposed activities Permits Required. (1) Except as otherwise provided in Section , F.S., or subsections (11) through (16), F.S., or unless expressly exempted by law or Department rule, a noticed general, standard general, or individual environmental resource permit must be obtained from the Department, as provided in Chapters and , F.A.C., and this chapter, prior to construction, alteration, operation, maintenance, abandonment, or removal of any stormwater management system, dam, impoundment, reservoir, or appurtenant work or works, including dredging or filling in, on, or over wetlands and other surface waters, as determined by the methodology ratified by Section , F.S., and codified in rule Chapter , F.A.C. (2) Any dredging or filling in, on or over wetlands or other surface waters of the state which is authorized by a general or individual permit issued under Chapter 40B-1, 40B-4, 40C-4, 40C-40, 40C-42, 16I-4, 40D-1, 40D-4, 40D-40, 40E-1, or 40E-4, F.A.C., as such chapters existed on October 3, 1995, but which is not authorized by a permit or exemption under Chapter , F.A.C., as such chapter existed on October 3, 1995, shall require an environmental resource permit prior to the dredging or filling. However, such dredging or filling shall be exempt from the requirements of paragraphs 40B (1)(a) through (e) and (g) through (k), 40C (1)(a) through (e) and (g) through (k), F.A.C., Chapter 40C-42, F.A.C., paragraphs 40D (1)(a) through (e) and (g) through (k), F.A.C., Chapter 40D-40, F.A.C., and paragraphs 40E-4.301(1)(a) through (e) and (g) through (k), F.A.C. 12 of 13

13 Prohibitions. (2) Sitting. Unless authorized by a Department permit or site certification in effect on May 27, 2001, or unless specifically authorized by another Department rule or a Department permit or site certification based upon site-specific geological, design, or operational features, no solid waste shall be stored or disposed of by being placed: (e) In any natural or artificial body of water including ground water; RULES OF THE SOUTHWEST FLORIDA WATERMANAGEMENT DISTRICT Chapter 40D-4 Individual Environmental Resource Permits. 40D Permits Required. (1) Unless expressly exempt by law or District rule an Environmental Resource Permit shall be obtained from the District prior to: (b) The alteration, abandonment, or removal of any surface water management system. (2) The District issues the following types of Environmental Resource Permits: (a) General permits for construction, alteration, operation, removal or abandonment of surface water management systems for projects which have, either singularly or cumulatively, minimal environmental impact. 40D Definitions. When used in this chapter and Chapter 40D-40 and 40D-400, F.A.C.; (18) "Surface water management system" or "system" means any stormwater management system, dam, impoundment, reservoir, appurtenant work, or works or any combination thereof. The terms "surface water management system" or "system" include areas created by filling or by dredging as those terms are defined in Sections (13) and (14), F.S. HIGHLANDS COUNTY MUNICIPAL CODE Section Standards for Protection. D. Unless specifically permitted or exempted by the provisions of this division, no development activity shall be undertaken in a wetlands area. 13 of 13