2025 Amendment No1 To Professional Services Agreement between CMB & RSM US LLP 23z1-1 - ? 3t0
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AMENDMENT NO. 1TO
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF MIAMI BEACH, FLORIDA
AND
RSM US LLP
PURSUANT TO RFP-2019-092-JC
FOR AUDITING SERVICES
This Amendment No. 1 ("Amendment")to the Professional Services Agreement No. 19-092-01,
dated August 8, 2019("Agreement"), by and between the CITY OF MIAMI BEACH, FLORIDA,
a municipal corporation organized and existing under the laws of the State of Florida, having its
principal place of business at 1700 Convention Center Drive, Miami Beach, Florida 33139(the
"City"), and RSM US LLP, a LLP registered and doing business in Florida,whose local address
is 2811 Ponce De Leon Blvd, Suite 820, Coral Gables, FL 33134, (ti4e " tractor"), is entered
-
into this _day of , 2024. HAT2n
RECITALS
WHEREAS, on February 13, 2019, the Mayor and City Commission approved the
issuance of Request for Proposal (RFP)No. 2019-092-JC for Auditing Services (the RFP); and
WHEREAS, on June 5.2019, the Mayor and the City Commission adopted Resolution
No. 2019-30843, accepting the recommendation of the City Manager, pursuant to the RFP, to
enter into simultaneous negotiations with RSM US, LLP and Crowe, LLP as the top-ranked
proposers; provided, however, that the final selection of the recommended proposer(s) and
contract(s)was subject to approval by the Mayor and City Commission; and
WHEREAS, on August 8, 2019, the City executed a Professional Services Agreement
("Agreement")with Contractor, effective date of execution of the contract covering audit periods
FY 2019 through FY 2023, having an initial five (5) year term, with three(3) possible one-year
renewals terms,at the sole option and discretion of the City Manager; by providing written notice
of the same no less than thirty (30) days prior to the expiration of the initial term; and
WHEREAS, the City seeks to execute the extension permitted under the Agreement for
the three (3)optional one (1)year renewal periods; and
WHEREAS, the Contractor has expressed to the Department during the renewal
process that due to changes in the City's operations, the scope of the audits and pricing would
require modifications and that it could no longer provide audit services at the rates provided in
Exhibit B of the Agreement; and
WHEREAS, the current agreement Contract No. 19-092-01, as currently outlined, has
no provision for any modification of fees and rates, nor any adjustments for CPI as noted in
previous years nor for any allowance for adjustments for any significant changes in regulatory
conditions; and
WHEREAS, the costs of procuring professional accounting services has experienced
marked changes post 2019 resulting in significant challenges in procuring services of highly
skilled professional accountants essential to performing professional auditing services; and
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WHEREAS, there are increased demands of the auditing regulatory reporting
environment attributed to increased Governmental Accounting Standards Board (GASB)
regulations. Since 2019, GASB has issued more than 12 new standards, several fully
implemented by the City of Miami Beach, including Statement No. 87 Leases, Statement No.
91 Conduit Debt Obligations, and Statement No.96 Subscription Based Information Technology
Arrangements; and
WHEREAS, the American Institute of Certified Public Accountants (AICPA), Auditing
Standards Board (ASB), the agency that regulates and promulgates standards that all
professional auditors follow, recently issued a series of standards — Statements on Auditing
Standards (SAS) 145 through 149. The adoption of these standards has, among other things,
increased documentation requirements, including the integration of advanced technologies and
mandates enhanced risk assessment procedures to be incorporated in the completion of
financial audits; and
WHEREAS, the implementation of increased regulatory disclosures, reporting and
auditing standards requires significant modifications of audit procedures and enhanced training
and technical resources to perform audits in compliance with new regulatory requirements: and
WHEREAS, on October 30, 2024, the Mayor and City Commission accepted the
recommendation of the City Manager to approve amending Contract No. 19-2019-01 between
the City of Miami Beach and RSM US LLP for auditing services allowing for City Administration
to execute the extension permitted under the Contract for the three (3) optional one (1) year
renewal periods; and modifying the scope of services to remove services no longer required
and to add additional required audits and reports for regulatory and contract compliance and to
allow the City Administration authorization to negotiate increases in rates and fees in an amount
not to exceed 10% for FY 2024 and negotiate increases in rates not to exceed CPI for
subsequent audits for FY 2025 and FY 2026 and further authorizing the City Manager and City
Clerk to execute Amendment.
NOW THEREFORE, in consideration of the mutual promises and conditions contained
herein, and other good and valuable consideration, the sufficiency of which is hereby
acknowledged, the City and Contractor hereby agree to amend the Agreement as follows:
1. ABOVE RECITALS.
The above recitals are true and correct and are incorporated as part of this Amendment.
2. MODIFICATIONS.
The Agreement is hereby modified (deleted items at sk-through and inserted items
underlined)as follows:
(a) Exhibit B of the Agreement is hereby deleted in its entirety and replaced with Exhibit
A of this Amendment.
•
(b) For FY 2025 and FY 2026, and in the City Manager's sole discretion, the rates listed
in Exhibit A of this Amendment are subject to an increase not to exceed the applicable
year's CPI.
3. RATIFICATION.
Except as amended herein,all other terms and conditions of the Agreement shall remain
unchanged and in full force and effect. In the event there is a conflict between the
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provisions of this Amendment and the Agreement, the provisions of this Amendment
shall govern.
THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their appropriate officials, as of the date first entered above.
FOR CITY: CITY OF MIAMI BEACH, FLORIDA
ATTEST:
By: 1
Ra el E.Granado, City Clerk Eric Carpenter, ity Manager
MAY - 5 2025 3 y
Date �� "'�'`� t
IN(OAP OIUTEDy
s?s ..
Cj:+26
FOR CONSULTANT: RSM US LLP
2811 Ponce de Leon Blvd, Ste 820
Coral Gables, FL 33134
ATTEST: % ►�
By �.
ignature Signature i
I le; ..:_ 4 / '3 fe1'7 1 ' a c� TM.e•. QCf.tti� ; 1r'
"rint ame a d Title Print Name and title
Date Date f
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
AtAskei C't\ 25
o1City Attorney =:" Date
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•
• ' Yam
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Exhibit A
RSM
wsra4S P
September 28,2024
%Sian Gave,CPPB,N(GP.CPP
•
Pmcurerrtenl Contracting CMcer le
City of Miami Beach Procurement De lair Mien:
1755 Marmot Avenue,3rd Mu
Shane Beach,Fl 33139
Not Mt&verso.
Ptrsuant b our professional seances agreement sRFP 2019.0924C lac Audblwng Sconces dated August
8,2019,we have proposed the following lees br services la(*cal year2024 as blows:
. Audit services Fees
I Auat of the City's Flax Fhanoal Slslemenb fACFR) S141 900
? OMB Lvwtnm Gtedance Seigle Beets 27,940
3 Management Letter w Accordance with he Rules of the Auditor General of 1,550
the Stile of Florida
1 Mram Beech ReoevetopmeatAgency(RDA( 24,530
S Mom Beach Parking D./mem Funds(PSF),at applwbre 24,530
8 Miami Beach Vence and Co•mmlxn Autnor1y(VC A) 21 521
f Manor Beach Commotion Center as Managed by Oak View Group(CVG) 21,527
8 Chadreis Trust(C7) 11.000
9 Examine counplunce of the CRA and Miami Beach Retie,ek anent Agency 7,000
(ROA)AO Seoul 218 415 Ronda Scabies regarding local government
e vestnwnt ponces.
10 Ewmrte compliance of the CRA did RDA wih Serims 183 387(6)and 7,000
103,387(7)Fbnda Statutes regarding the r devebrenent trusts
11 bsue a report on the sterxi•,lorne hoe!KM t statements of the North Beach 24.530
Commune,'Redevelopment Agency(NBCRA)
12 Issue a report on!lie standawte financial eliternentsprepared to 25,375
summarize t he acienoes d the bod sensors for t haMiannr Beach Convention
Center as trtanaged by Sodexa Lrvel15odao),also selected to as
C enlerplale
. total 1338 40S
111
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I V l I A! V 1 I B EAC H ContractJQocument Routin•
g For
19-092-01 Auditing Services
RSM US LLP Finance
•
samumiti
Jason Greene 7 5/1/2025 18:35 EDT N/A
X Type 1-Contract,amendment,change order,or task order resulting from a procurement-issued competitive solicitation.
Type 2-Any other contract,amendment,change order,or task order that does not result from a procurement-issued competitive solicitation.
Type 3-Independent Contractor Agreement(ICA) Type 6-Tenant Agreement
Type 4-Grant agreements with the City as the recipient Type 7-Inter-governmental agency agreement
Type S-Grant agreements with the City as the grantor Type 8-Other:
On August 8,2019,the City executed a Professional Services Agreement("Agreement")with RSM US LLP for auditing services,covering
fiscal years 2019 through 2023.The contract included an initial five-year term,with three(3)optional one-year renewal periods at the
sole discretion of the City Manager,provided written notice was given at least 30 days before the initial term's expiration.
On October 30,2024,the Mayor and City Commission approved Resolution 2024-33188(see Attachment A),authorizing the execution
of an Amendment to Contract No.19-092-01 to:
1. Modify the scope of services by removing services that are no longer required and adding new audit and compliance reports
required for regulatory and contractual obligations;and
2. Authorize the City Manager to negotiate an increase in rates and fees, not to exceed 10%for FY 2024, and allow further
increases for FY 2025 and FY 2026 based on the Consumer Price Index(CPI).
Due to significant regulatory changes,including new Governmental Accounting Standards Board(GASB)requirements and American
Institute of Certified Public Accountants (AICPA) auditing standards, the modification ensures compliance with evolving financial
reporting and auditing procedures.
Pursuant to Resolution 2024-33188,this item seeks the City Manager's signature on the attached Amendment(see Attachment B)to
implement the renewal,scope modifications,and rate adjustments.
5 years 3 years 8 years
Grant Funded: I Yes X No [State Federal Other:
1 $180,840 011-0360-000312-12-400-582-00-00-00- Yes X No
1 $1,550 _ 011-0360-000312-12-400-582-00-00-00- Yes X No
1 $31,530 168-1985-000312-31-400-582-00-00-00- Yes X No
1 $24,530 480-0461-000312-27-413-526-00-00-00- Yes X No
1 $21,527 160-4300-000312-37-406-555-00-00-00- Yes X No
1 $46,902 440-0442-000312-35-413-551-00-00-00- Yes X No
1 $31,530 163-1987-000312-38-404-537-00-00-00- Yes X No
1.For contracts longer than five years,contact the Procurement Department.2.Attach any supporting explanation needed.3.Budget
approval indicates approval for the current fiscal year only. Future years are subject to City Commission approval of the annual
adopted operating budget.
City Commission Approved: X Yes No Resolution No.: CC Agenda Item No.: CC Meeting Date:
2024-33310 C7 G 10/30/2024
If no,explain why CC approval is not required:
Legal Form Approved: X Yes No If no,explain below why form approval is not necessary:
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Procurement: -D«.epr,wey: Grants: N/A
Kristy Bada �uw 'C„ 4/30/2025 I 2:10 EDT
,...--FCF87115FE87t&i
Budget: 5/1/2025 I 8:28 EDT Information N/A
Kyle Teijeiro1 Technology:
Budget:
DocuS prow by.
Tameka Otto Stewart taloa,06 s /1 ajYC[/2025 I 8:32 EDT
\—ONA...FF,A6,
Risk Management: N/A Fleet& N/A
Facilities:
Human Resources: N/A Reviewer: 4/29/2025 I 9:54 EDT
Monica Garcia MG
Reviewer: ,-.. 4/29/2025 I 10:00 EDT
Theresa Buigas I It
Rev.10/24
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RESOLUTION NO. 2024-33310
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA,APPROVING, IN SUBSTANTIAL FORM,AMENDMENT
NO.1 TO CONTRACT NO. 19-092-01, BETWEEN THE CITY AND RSM US LLP,
PURSUANT TO REQUEST FOR PROPOSAL NO. (RFP) 2019-092-JC FOR
AUDITING SERVICES; AUTHORIZING THE ADMINISTRATION TO RENEW THE
CONTRACT TO ADD ADDITIONAL AUDITS AS REQUIRED BY FEDERAL OR
STATE REGULATORY AGENCIES, BOND COVENANTS, GRANT
AGREEMENTS, PERFORMANCE-BASED MANAGEMENT AGREEMENTS
AND/OR CONTRACTS; AUTHORIZING THE ADMINISTRATION TO NEGOTIATE
A RATE INCREASE NOT TO EXCEED 10% FOR THE AUDIT SERVICES
REQUIRED FOR FISCAL YEAR 2024; DELEGATING TO THE CITY MANAGER
THE AUTHORITY TO NEGOTIATE A RATE INCREASE NOT TO EXCEED THE
CPI OF SAID YEAR FOR EACH SUBSEQUENT AUDIT REMAINING ON THE
CONTRACT FOR FISCAL YEARS 2025 AND 2026; AND FURTHER
AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE
AMENDMENT NO. 1.
WHEREAS, the City of Miami Beach (the "City") is required to have an annual audit
performed on the City's Annual Comprehensive Financial Report ("ACFR") in accordance with
Florida Statutes 218.39, and other audits are required to be conducted in accordance with the U.S.
Office of Management and Budget ("OMB") Uniform Guidance 2 CFR 200 ("Single Audit"), Bonded
Debt Covenants, Performance Management and/or Grant Agreements. Each audit must be
conducted by an independent audit firm; and
WHEREAS, in 2019, the City of Miami Beach entered into a professional services agreement
with RSM US LLP, for Auditing Services, pursuant to Request for Proposal No. (RFP) 2019-092-
JC, for a five (5)year period with three (3) optional one (1) year'renewal periods; and
WHEREAS, the City seeks to execute the extension permitted under the contract for the
three (3)optional one (1) year renewal periods; and
WHEREAS, the entities outlined in the contract are not consistent with current entities to be
included in the audit services offered to the City of Miami Beah for the ensuing years services and
the City seeks to modify the lists of audit entities; and
WHEREAS, the current agreement Contract No. 19-092-01, as currently outlined, has no
provision for any modification of fees and rates nor any adjustments for CPI as noted in previous
years nor for any allowance for adjustments for any significant changes in regulatory conditions; and
WHEREAS, after 2019, the costs of procuring professional accounting services has
experienced marked changes resulting in significant challenges in procuring services of highly skilled
professional accountants essential to performing professional auditing services; and
WHEREAS, there are increased demands of the auditing regulatory reporting environment
attributed to increased Governmental Accounting Standards Board ("GASB") regulations; and
WHEREAS, since 2019, GASB has issued more than 12 new standards, several fully
implemented by the City of Miami Beach including Statement No. 87 Leases, Statement No. 91
Docusign Envelope ID:DD027DE2-93B3-4E54-8389-ECC8B18DCEEA
Conduit Debt Obligations, and Statement No. 96 Subscription Based Information Technology
Arrangements: and
WHEREAS, the American Institute of Certified Public Accountants ("AICPA") Auditing
Standards Board ("ASB"), the agency that regulates and promulgates standards that all professional
auditors follow, recently issued a series of standards — Statements on Auditing Standards ("SAS")
145 through 149; and
WHEREAS, the adoption of these standards has, among other things, increased
documentation requirements, including the integration of advanced technologies and mandates
enhanced risk assessment procedures to be incorporated in the completion of financial audits; and
WHEREAS, the implementation of increased regulatory disclosures, reporting and auditing
standards requires significant modifications of audit procedures and enhanced training and technical
resources to perform audits in compliance with new regulatory requirements.
NOW,THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission approve, in
substantial form, Amendment no.1 to contract no. 19-092-01, between the City and RSM US LLP,
pursuant to Request for Proposal no. (RFP) 2019-092-JC for Auditing Services; authorize the
Administration to renew the contract to add additional audits as required by federal or state regulatory
agencies, bond covenants, grant agreements, performance-based management agreement and/or
contracts; authorize the Administration to negotiate a rate increase not to exceed 10% for the audit
services required for fiscal year 2024; delegate to the City Manager the authority to negotiate a rate
increase not to exceed the CPI of said year for each subsequent audit remaining on the contract for
Fiscal Years 2025 and 2026; and further authorize the City Manager and City Clerk to execute
Amendment No. 1.
PASSED AND ADOPTED this is day of ,61 2024.
i2(....A...,y, ,4„.....1._
Steven Meiner, Mayor
ATTEST:
'Ai NOV 0 5 2024
Rafael E. Granado, Secretary
APPROVED AS TO
cti'; FORM & LANGUAGE
r. _ 4s.'w 1 s & FOR EXECUTION
INNCORP1O11ATED'
''':,',6 5 .1-- City A orney ,r Date