2012-28030 Reso RESOLUTION NO.I 2012 -28030
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER
PERTAINING TO THE RANKING OF FIRMS PURSUANT TO REQUEST FOR
PROPOSALS (RFP) NO. 50 -11/12 FOR COST ALLOCATION STUDIES FOR THE CITY
OF MIAMI BEACH; AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE TOP - RANKED FIRM, MAXIMUS CONSULTING SERVICES,
INC., AND SHOULD THE ADMINISTRATION NOT BE ABLE TO NEGOTIATE AN
AGREEMENT WITH THE TOP - RANKED FIRM, AUTHORIZING THE ADMINISTRATION
TO NEGOTIATE WITH THE SECOND - RANKED FIRM, MGT OF AMERICA, INC; AND
FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT UPON COMPLETION OF SUCCESSFUL NEGOTIATIONS BY THE
ADMINISTRATION.
WHEREAS, the City of Miami Beach provides administrative support to its service
departments in the General Fund, Enterprise Funds, and Special Revenue Funds, through
administrative support departments such as The Manager's Office, Finance, Human Resources,
Budget and Performance Improvement, Procurement, and other departments; and
WHEREAS, the City has conducted prior cost allocation studies, on a periodic basis, to
document and allocate the costs of these services to operating departments based on an Indirect
Cost Allocation Study; and
WHEREAS, on June 6, 2012, the Mayor and City Commission approved the issuance of
Request for Proposals (RFP) for cost allocation studies for the City of Miami Beach; and
WHEREAS, on July 11, 2012, RFP No. 50 -11/12 was issued and notices were sent to over
40 firms; and
WHEREAS, on the specified due date, the Procurement Division received responses from
Maximus, Inc.; MGT of America, Inc.; and Sequoia Consulting Group, Inc.; and
WHEREAS, on July 23, 2012, the Interim City Manager via Letter to Commission No. 191-
2012, appointed an Evaluation Committee (the "Committee "), consisting of the following individuals:
Ruth Cooper - Resident and Leadership Academy Graduate;
David Lancz - Resident and Budget Advisory Committee Member;
Anna Parekh - Real Estate, Housing and Community Development Director, CMB;
James Sutter - Internal Auditor, CMB;
Allison Williams - Chief Accountant, CMB; and
WHEREAS, the Committee convened on August 20, 2012, and was provided with an
overview of the project, information relative to the City's Cone of Silence Ordinance, the Government
in the Sunshine Law, listened to presentations, and participated in question and answer sessions
with each of the three (3) proposers; and
WHEREAS, the Committee scored and ranked each proposal pursuant to the evaluation
criteria established in the RFP:
• Qualifications of individuals assigned to work with the City - 35 points;
• Consultant(s) experience and past performance with similar projects - 20 points;
• Proposed Fees - 35 points; -
• Methodology and Approach - 10 points; and
WHEREAS, the Committee ranked Maximus, Inc. as the top- ranked firm, and MGT of
America, Inc. as the second - ranked firm; and
WHEREAS, the City Manager concurs with the recommendation.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission
hereby accept the recommendation of the City Manager pertaining to the ranking of proposals
pursuant to Request for Proposals (RFP) No. 50 -11/12 For Cost Allocation Studies for the City of
Miami Beach; authorize the Administration to enter into negotiations with the top- ranked firm,
Maximus, Inc., and should the Administration not be able to negotiate an agreement with the top-
ranked firm, authorize the Administration to negotiate with the second - ranked firm, MGT of America,
Inc.; and further authorize the Mayor and City Clerk to execute an agreement upon the completion
of successful negotiations by the Administration.
PASSED AND'ADOPTED this aV/� day of Ode 6•er , 2012.
ATTEST:
-
Rafael E. Granado, City Clerk '
Jorge R. Exposito I
p Vice -Mayor
TAAGENDA \2012 \9- 12- 12 \CostAllocatio tudieg
CH 2-b
APPROVED AS TO
FORM & LANGUAGE
W IL TION
f Cit Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Accepting The City Manager's Recommendation Pertaining To The Ranking Of Firms For .
Cost Allocation Studies, Authorizing The Administration To Enter Into Negotiations With The Top- Ranked
Firm, Maximus, Inc., And If Unsuccessful, With The Second - Ranked Firm, MGT Of America, Inc., And
Authorizing The Mayor And City Clerk To Execute An Agreement For Auditing Services.
Key Intended Outcome Supported:
Improve the City's Overall Financial Health and Maintain Overall Bond Rating
Issue:
Shall the Commission Adopt the Resolution?
Item Summa /Recommendation:
The City conducts cost allocation studies to determine the annual costs incurred in the City in the area
known as "South Pointe ", formerly the South Pointe Redevelopment District Area funded by tax increment
revenues; as well and the cost of City services that are eligible to be funded from Resort Taxes. Further,
some of the Resort Tax eligible costs are within the South Pointe area, and, as a result, the studies identify
Resort Tax eligible costs that are outside the South Pointe area. The City may also require other costs
allocation studies on an as needed basis.
On June 6, 2012, the City Commission authorized the Administration to issue an RFP to solicit proposals
for cost allocation studies for the City of Miami Beach. RFP No. 50 -11/12 was issued on July 11, 2012,
with notifications sent to over 40firms. This outreach resulted in the receipt of three (3) proposals from
Maximus Inc.; MGT of America, Inc.; Sequoia Consulting Group, Inc.
An Evaluation Committee appointed by the Interim City Manager reviewed the proposals, listened to
presentations and participated in question and answer sessions with each of the proposers, and discussed
the proposals. The Committee scored and ranked the three (3) proposals, and based on the published
evaluation criteria, the Committee ranked Maximus, Inc. as the top- ranked firm and MGT of America, Inc.
as the second - ranked firm.
ADOPT THE RESOLUTION
Advisory Board Recommendation:
Financial Information:
Source of Amount Account Approved
Funds: Professional Services Account
1 $50,000.00 No. 011.9322.000312
2 ..
3
4"
OBPI Total $50,000.00
Financial Im act Summa :
Citv Cler 's Office Legislative Tracking:
RJA
Si n - Offs:
Department Director.. Assistant City Manager' City Manager
GD PDW KGB
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M AGENDA ITEM e�3
DATE
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission / ;�
FROM: Kathie G Brooks, Interim City Manager
DATE: October 24, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER
PERTAINING TO THE RANKING OF FIRMS PURSUANT TO REQUEST FOR
PROPOSALS (RFP) NO. 50 -11/12 FOR COST ALLOCATION STUDIES FOR THE CITY
OF MIAMI BEACH; AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE TOP - RANKED FIRM, MAXIMUS CONSULTING SERVICES,
INC., AND SHOULDTHE ADMINISTRATION NOT BE ABLE TO NEGOTIATE AN
AGREEMENT WITH THE TOP - RANKED FIRM, AUTHORIZING THE ADMINISTRATION
TO NEGOTIATE WITHTHESECOND- RANKED FIRM, MGT OF AMERICA, INC; AND
FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT UPON COMPLETION OF SUCCESSFUL NEGOTIATIONS BY THE
ADMINISTRATION.
FUNDING
Not to exceed $50,000 annually Funding is available from Professional Services Account No.
011- 9322 - 000312
ADMINISTRATION RECOMMENDATION
Adopt the Resolution
KEY INTENDED OUTCOME
Improve the City's overall financial health and maintain overall bond rating
BACKGROUND AND ANALYSIS
The City of Miami Beach provides administrative support to its service departments in the General
Fund, Enterprise Funds and Special Revenue Funds, through administrative support departments
such as the City Manager's Office, Finance, Human Resources, Budget and Performance
Improvement, Procurement, and other departments. The City has conducted prior cost allocation
studies, on a periodic basis, to document and allocate the costs of these services to operating
departments based on an Indirect Cost Allocation Study. These studies provide auditable basis for
appropriately offsetting these costs in the General Fund by charging the appropriate costs to the
Enterprise and Special Revenue Funds. The latest study was performed using FY 2007/08 audited
costs.
In addition, the City conducts cost allocation studies to determine the annual costs incurred in the
October 24, 2012
City Commission Memorandum
Cost Allocation Studies
Page 2 of 4
City area known as "South Pointe ", formerly the South Pointe Redevelopment District Area, funded
by tax increment revenues, as well and the cost of City services that are eligible to be funded from
Resort Taxes. Further, some of the Resort Tax eligible costs are within the South Pointe area, and,
as a result, the studies identify Resort Tax eligible costs that are outside the South Pointe area.
The Mayor and City Commission at its June 6, 2012, meeting, authorized the Administration to issue
an RFP for cost allocation studies for the City of Miami Beach. The purpose of the RFP was to
select a qualified consulting firm to conduct cost allocation studies for the City. These costs
allocation studies include Indirect Cost Allocation Studies, South Pointe Cost Allocation Studies, and
Resort Tax Cost Allocation Studies. The City may also require other cost allocation studies on an
as- needed basis.
The City intends to enter into an agreement with an initial term of three (3) years with the sole option
and discretion of the City Manager to renew for two (2) additional one (1) year periods.
RFP PROCESS
RFP No. 50 -11/12 was issued on July 11, 2012, and the Procurement Division e- mailed, as well as
uploaded the RFP to BidNet, sending notifications to over 40 firms. A non - mandatory pre - proposal
meeting to provide information and respond to questions from prospective proposers was held on
July 17, 2012. On the due date of August 6, 2012, three (3) proposals were received from the
following firms:
• Maximus, Inc.
• MGT of America, Inc.
• Sequoia Consulting Group, Inc.
On July 23, 2012, the Interim City Manager via Letter to Commission No. 191 -2012, appointed an
Evaluation Committee (the "Committee "), consisting of the following individuals:
Ruth Cooper Resident and Leadership Academy Graduate
David Lancz Resident and Budget Advisory Committee Member
Anna Parekh Real Estate, Housing and Community Development Director, CMB
James Sutter Internal Auditor, CMB
Allison Williams Chief Accountant, CMB
Alternate:
Barbara Knaub Leadership Academy Graduate
The Committee convened on August 20, 2012, and was provided with an overview of the project,
information relative to the City's Cone of Silence Ordinance, and revisions to the Government in the
Sunshine Law. David Lancz was selected as the Committee Chairperson. The Committee listened
to presentations, and participated in question and answer sessions with each of the three (3)
proposers.
The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria
established in the RFP, for a total of 100 points, which was as follows:
• Qualifications of individuals assigned to work with the City 35 points
October 24, 2012
City Commission Memorandum
Cost Allocation Studies
Page 3 of 4
• Consultant(s) experience and past performance with similar projects 20. points
• . Proposed Fees 35 points
• Methodology and Approach 10 points
Total 100 points
Additional points would have been allocated, if applicable, pursuant to, the following ordinances:
LOCAL PREFERENCE: The Evaluation Committee will assign an additional five (5) points to
Proposers, which are, or include as part of their proposal team, a Miami Beach -based vendor as
defined in the City's Local Preference Ordinance.
VETERANS PREFERENCE: The Evaluation Committee will assign an additional five (5) points to
Proposers, which are, or include as part of their proposal team, a small business concern owned
and controlled by a veteran(s) or a service- disabled veteran business enterprise, as defined in the
City's Veterans Preference Ordinance.
None of the three (3) firms met the criteria for the above noted Ordinances.
The Committee discussed each of the proposals and the corresponding presentations, and
proceeded to score and rank them as follows:
wwi Ruth David Anna Jim Allison Ranking
= Cooper Lancz Parekh Sutter Williams of Firm
Maximus 93(l) 95(l) 99(l) 95 1) 89 (2) 6
MGT of 90 (2) 86 (3) 88 (3) 92 (2) 90 (1) 11
America
Sequoia 82 (3) 89 (2) 91 (2) 85 (3) 76 (3) 13
The Committee ranked Maximus, Inc. as the top- ranked firm, and further agreed to the ranking of
MGT of America, Inc. as the second - ranked firm, and Sequoia Consulting Group, Inc. as the third-
ranked firm.
Maximus, Inc., based in Tallahassee, Florida, is an international consulting firm and is the largest
management consulting firm in the United States that serves public sector clients. It is a publicly
owned company, traded on the New York Stock Exchange. Maximus has annual revenues in
excess of $930 million, and has over 8,000 employees.
Cost allocation plans and cost of service studies for state and local governments are the core
offerings of Maximus. The firm prepares over 1,500 cost allocation studies on an annual basis. The
project management team members are well qualified and have extensive experience. Maximus
has performed cost allocation studies for several public agencies in Florida.
MGT of America, Inc. is a national research and management consulting firm, based in Tallahassee,
Florida. The firm has a staff of over 80 employees, is privately -held, and dedicated to providing cost
consulting services for cities, counties, and special districts.
October 24, 2012
City Commission Memorandum
Cost Allocation Studies
Page 4 of .4
MGT's project management team is experienced in providing cost allocation studies to several state
and local governments, and is well qualified. The firm has provided cost allocation studies for a
number of municipalities in Florida.
Sequoia Consulting Group, Inc. is incorporated in the state of Indiana, and is 100% employee
owned. Currently, Sequoia has over 25 staff members providing services to state and local
government clients. The project management team is well qualified, however, the firm has not
performed cost allocations studies in the state of Florida as of yet.
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the attached
resolution, which recommends the acceptance of the ranking of firms pursuant to Request for
Proposals (RFP) No. 50 -11/12 for Cost Allocation Studies for the City of Miami Beach, and
authorizes the Administration to enter into negotiations with the top - ranked firm, Maximus, Inc., and
should the Administration not be able to negotiate an agreement with the top- ranked firm,
authorizing the Administration to negotiate with the second- ranked firm, MGT of America, Inc.; and
further authorizes the Mayor and City Clerk to execute an agreement upon the completion of
successful negotiations by the Administration
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