Office of Inspector General City of New Orleans Report of Inquiry into The selection of New Orleans Police Officer Edwin Hosli to Coordinate the Red Light Camera Detail E. R. Quatrevaux Inspector General Final Report June 14, 2013 EXECUTIVE SUMMARY The Investigations Division of the Office of Inspector General conducted an investigation into the facts surrounding how New Orleans Police Department (NOPD) 8th District Commander Edwin Hosli obtained the "Detail" to manage the review of traffic camera violation images, also known as the red light cameras. The investigation concluded that Commander Hosli formed a Limited Liability Company (LLC) called Anytime Solutions through which he managed the aforementioned Detail. This was in violation of NOPD policy. The investigation found that the former Director of Public Works, Robert Mendoza, violated City policy by improperly expanding the Affiliated Computer Services (ACS) contract. Office of Inspector General City of New Orleans (Final Report) OIG-Investigations (11-0004-I) Red Light Camera Detail Page 1 of 5 June 14, 2013 I. INTRODUCTION The Investigations Division of the Office of Inspector General opened an investigation on May 11, 2011 after receiving a complaint that New Orleans Police Department (NOPD) 8th District Commander Edwin Hosli formed a Limited Liability Company (LLC) known as Anytime Solutions, allegedly to conceal his role in the management and oversight of an off-duty "Detail" reviewing traffic camera violation images. It is against NOPD policy for an Officer to form an LLC for the purpose of managing a Detail. It is also an ethics violation for a City of New Orleans employee to contract with the City of New Orleans.1 A. INTERVIEWS OF AMERICAN TRAFFIC SOLUTIONS (ATS) EXECUTIVES David Jackson, Senior Business Development Manager and Andrew Souder, Senior Accounts Manager for American Traffic Solutions (ATS) advised that they were responsible for selling the Red Light and Speed Camera System to the City of New Orleans. Souder advised that in all the other cities that ATS does business with, throughout the United States and Canada, New Orleans is the only one he knows that uses paid Details to review the tickets generated by the cameras. 2 In all the other municipalities on-duty police officers do the reviewing. They stated that they did not know Edwin Hosli, nor were they paying him (or anyone else) for a Detail. B. INTERVIEWS OF CITY OF NEW ORLEANS EMPLOYEES Former Director of Public Works, Robert Mendoza 3 advised that since 2005, Affiliated Computer Services (ACS) had been collecting monies due from parking tickets and boot fees, under the terms of a professional services contract with the City of New Orleans. He stated that beginning in 2008, American Traffic Solutions (ATS) installed the "red light cameras" in the City. He said that in March or April of 2010, ATS began using ACS to collect the fines resulting from the red light camera violations. Mendoza personally asked then Superintendent of Police Warren Riley to provide on-duty NOPD Officers to review the red light camera violations. Mendoza said that Chief Riley told him he could not spare any Officers. Mendoza tasked his Operations Chief of the Parking Division, Zepporiah Edmonds, with finding NOPD Officers to review the red light camera images as a paid Detail. He said that in September of 2010, ACS and the Department of Public Works began using "Hosli's Detail Officers." Mendoza stated that 1 La. R.S. 42:1113 ATS website states that ATS has 230 customers throughout the United States and Canada and claims to have more major metropolitan municipal clients than any other vendor. 3 Employment terminated by the City of New Orleans on 08/16/2011 2 Office of Inspector General City of New Orleans (Final Report) OIG-Investigations (11-0004-I) Red Light Camera Detail Page 2 of 5 June 14, 2013 he met with NOPD Superintendent Ronal Serpas on November 22, 2010 to discuss the red light camera program. 4 Mendoza said that Chief Serpas told him he could not afford to use any Officers to do the review. Mendoza stated that the Chief told him that a Detail would be the way to go and he suggested that Mendoza should use the New Orleans Police and Justice Foundation to compensate the Officers. Mendoza admitted that he violated procedures by not notifying his superiors that he was expanding ACS's contract. He also admitted that he again violated procedures by not bringing this to the attention of the City Council, for the purpose of expanding ACS's contract. Zepporiah Edmonds, Operations Chief for the Department of Public Works (DPW) Parking Division advised that she knew NOPD Lieutenant Joe Valiente and in August of 2010 she asked him if he knew someone who could handle the red light camera image review. Edmonds said that Valiente recommended Commander Edwin Hosli. She then chose Hosli to handle the red light camera Detail. Edmonds said that no one told her to pick Hosli, she selected him on her own based on Valiente's recommendation. Edmonds subsequently asked ACS Parking and Safety Solutions manager Charlotte Magee to coordinate payment procedures with Hosli. Edmonds said that Hosli formed a corporation through which the payments would be made. Richard Boseman, CNO Parking Adjudication Bureau Management Services Supervisor advised that he attended a meeting with DPW Director Robert Mendoza, NOPD Superintendent Ronal Serpas, and NOPD Personnel Director Stephanie Landry, shortly after Hosli was chosen to run the red light camera detail. Boseman stated that Chief Serpas and Stephanie Landry both suggested that the DPW use the New Orleans Police and Justice Foundation to process payments for the Officers in this Detail. C. INTERVIEWS OF NEW ORLEANS POLICE DEPARTMENT EMPLOYEES Superintendent Serpas stated that he and NOPD Personnel Director Stephanie Landry met with DPW Director Robert Mendoza and another DPW staff person on November 22, 2010 to discuss the red light camera program. Superintendent Serpas advised that the former NOPD Superintendent Warren Riley and Mendoza had previously agreed to use NOPD Officers on a Detail to review the red light camera images. Superintendent Serpas said that he suggested to Mendoza that he should move the Detail to the Police and Justice Foundation. Superintendent Serpas advised that he had no role in Hosli getting this Detail. He stated, "I didn't tell people 4 The Orleans Parish Civil District Court issued a judgment on October 1, 2010, which enjoined the City of New Orleans from enforcing its red light traffic camera program. The basis of the lawsuit was that the program violated the City Charter by being under the administration of the Department of Public Works rather than the NOPD. This judgment was upheld by the Louisiana Supreme Court on October 27, 2010. Washington-Wapegan v. City of New Orleans, 48 So.3d 280 (La. 10/27/10). Office of Inspector General City of New Orleans (Final Report) OIG-Investigations (11-0004-I) Red Light Camera Detail Page 3 of 5 June 14, 2013 who to hire for Details." He also advised that, "all Officers" that formed corporations to handle Details would be dealt with according to NOPD policy and procedures. Public Integrity Bureau (PIB) Deputy Chief Arlinda Westbrook reiterated what the Superintendent said and added that PIB would pursue any and all Officers who formed corporations to run Details to determine if they were in violation of NOPD policy. She also advised that she had heard that Hosli formed his company at the request of ACS in order to simplify payment procedures. Personnel Director Stephanie Landry advised that she attended a meeting with Superintendent Serpas, DPW Director Robert Mendoza, and DPW staff person Richard Boseman in November of 2010 to discuss the red light camera program. She said that Mendoza told them that NOPD Officers were being used on a paid Detail to review red light camera images. Personnel Director Landry advised that there was no discussion about who had the Detail. She recalled that Chief Serpas told Mendoza that the Detail should be outsourced to the New Orleans Police and Justice Foundation. D. INTERVIEW OF AFFILIATED COMPUTER SERVICES (ACS) EMPLOYEE Charlotte Magee, ACS Parking and Safety Solutions manager advised that she and Zepporiah Edmonds met with Edwin Hosli to discuss the red light camera Detail. Magee said that Edmonds selected Hosli to run this Detail. Magee said that ACS paid Hosli's invoices and the City of New Orleans reimbursed ACS. She stated that ACS's role was that of a "pass through" in this payment process. Magee advised that Hosli formed his corporation on his own. She did not request nor instruct him to form a corporation in order to receive payments from ACS. Office of Inspector General City of New Orleans (Final Report) OIG-Investigations (11-0004-I) Red Light Camera Detail Page 4 of 5 June 14, 2013 III. CONCLUSION The investigation concluded that Commander Hosli formed a Limited Liability Company (LLC) called Anytime Solutions through which he managed the red light camera Detail. This was in violation of NOPD and City policy. The Investigation found that the Operations Chief for the Department of Public Works Parking Division, Zepporiah Edmonds selected Hosli to run this Detail. The investigation found that the former Director of Public Works, Robert Mendoza, violated City policy by improperly expanding Affiliated Computer Services (ACS) contract. It should be noted that immediately upon notification, the NOPD placed the responsibility of the red light camera image review with on-duty Traffic Division Officers. Office of Inspector General City of New Orleans (Final Report) OIG-Investigations (11-0004-I) Red Light Camera Detail Page 5 of 5 June 14, 2013