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RFP 34-11/12 REQUEST FOR PROPOSALS ( RFP) RFP NO. 34-11,12 FOR AUDITING SERVICES TO EXAMINE THE CITY'S BASIC FINANCIAL STATEMENTS INCLUDED IN THE CITY'S COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR), FEDERAL GRANT PROGRAMS AND STATE PROJECTS (OMB A-133 SINGLE AUDIT), THE MIAMI BEACH REDEVELOPMENT AGENCY'S BASIC FINANCIAL STATEMENTS (RDA), THE PARKING SYSTEMS FUND'S (PSF) FINANCIAL STATEMENTS, THE MIAMI BEACH VISITOR AND CONVENTION AUTHORITY'S (VCA) FINANCIAL STATEMENTS, THE MIAMI BEACH CONVENTION CENTER FINANCIAL STATEMENTS, THE BUILDING BETTER COMMUNITIES BOND PROGRAM (BBC) THE CHILDREN TRUST GRANT PROGRAM (CT), AND THE SAFE NEIGHBORHOOD PARKS AND BOND PROGRAM (SNP). RFP Issuance Date: April 20, 2012 PROPOSAL DUE DATE: May 18, 2012 at 3:00 P.M. PAMELA J. LEJA-KATSARIS,CPPO,CPPB,Sr.Procurement Specialist CITY HALL PROCUREMENT DIVISION, 3RD Floor 1700 Convention Center Drive Miami Beach, FL 33139 Phone: 305.673.7490 Fax: 786.394.4006 E-mail: PamelaLeia @miamibeachfl.gov 4/20/12 RFP No:34-11/12 Auditing Services 1 of 43 MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov PROCUREMENT DIVISION Tel: 305-673-7490,Fax:786-394-4006 PUBLIC NOTICE Request for Proposals No. 34-11112 For Auditing Services To Examine The City's Basic Financial Statements Included In The City's Comprehensive Annual Financial Report (CAFR), Federal Grant Programs And State Projects (OMB A-133 Single Audit), The Miami Beach Redevelopment Agency's Basic Financial Statements (RDA), The Parking Systems Fund's (PSF) Financial Statements, The Miami Beach Visitor And Convention Authority's (VCA) Financial Statements, The Miami Beach Convention Center Financial Statements, The Building Better Communities Bond Program (BBC) The Children-Trust Grant Program (C-T), And The Safe Neighborhood Parks And Bond Program (SNP). The purpose of the audit is to examine the City's Basic Financial Statements included in the City's Comprehensive Annual Financial Report (CAFR). The engagement shall also include the Single Audit, PSF, VCA, Convention Center, BBC, CT, and SNP audits, for a term of up to five (5) years (to be determined at the option of the City). The original engagement will be for the City's fiscal year ending September 30, 2012. Additional years of the engagement or additional auditing services would be subject to the approval of the Audit Committee and confirmation by the City Commission annually. Sealed proposals will be received until 3:00 PM on May 18, 2012, at the following address: City of Miami Beach City Hall Procurement Division—Third Floor 1700 Convention Center Drive Miami Beach, Florida 33139 ANY PROPOSAL RECEIVED AFTER 3:00 PM ON MAY 18, 2012, WILL BE RETURNED TO THE PROPOSER UNOPENED, AND . WILL NOT BE CONSIDERED. THE RESPONSIBILITY FOR SUBMITTING PROPOSALS BEFORE THE STATED TIME AND DATE IS SOLELY THE. RESPONSIBILITY OF THE PROPOSER. THE CITY WILL NOT BE RESPONSIBLE FOR DELAYS CAUSED BY MAIL, COURIER SERVICE, OR ANY OTHER ENTITY OR OCCURRENCE. A Pre-Proposal Submission Meeting is scheduled for May 1, 2012 at 10:00a.m. at the following address: City of Miami Beach City Hall Mayor's Conference Room—Fourth Floor 1700 Convention Center Drive Miami Beach, Florida 33139 Attendance (in person or via telephone) to this Pre-Proposal Submission Meeting is encouraged and recommended as a source of information, but is not mandatory. Proposers interested in participating in the Pre-Proposal Submission Meeting via telephone must follow these steps: (1) Dial the TELEPHONE NUMBER: 1-877-953-3061 (Toll-free North America) (2) Enter the MEETING NUMBER: 8982915# 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 2 of 43 Proposers who are interested in participating via telephone, please send an e-mail to ParnelaLeia(M-miamibeachfl.gov expressing your intent to participate via telephone at least one business day in advance of the meeting. The City utilizes BidNet for automatic notification of bid opportunities and document fulfillment. This system allows vendors to register online and receive notification of new bids, amendments and awards. Vendors with Internet access should review the registration options at the following website: http://www.govbids.com/scripts/panhandle/public/home1.asp?utm medium=referral&utm source=Ml A28FL&utm campaign=web site. If you do not have Internet access, please call the BidNet support i group at 800-677-1997 extension#214. The City also provides bid information on its website, please visit: http://web.miamibeachfl.gov/procurement. PROPOSERS ARE HEREBY ADVISED THAT THIS RFP IS SUBJECT "TO THE FOLLOWING ORDINANCES/RESOLUTIONS, WHICH MAY BE FOUND ON THE CITY OF MIAMI BEACH WEBSITE: hftp://www.miamibeachfl.gov/newcity/depts/purchase/bidintro.asp • CONE OF SILENCE -- ORDINANCE NO. 2002-3378 • PROTEST PROCEDURES -- ORDINANCE NO. 2002-3344. • DEBARMENT PROCEEDINGS -- ORDINANCE NO. 2000-3234 • LOBBYIST REGISTRATION AND DISCLOSURE OF FEES — ORDINANCE NO. 2002-3363. • CAMPAIGN CONTRIBUTIONS BY VENDORS- ORDINANCE NO. 2003-3389. • REQUIREMENT FOR CITY CONTRACTORS TO PROVIDE EQUAL BENEFITS FOR DOMESTIC PARTNERS -ORDINANCE NO. 2005-3494 • LOCAL PREFERENCE FOR MIAMI BEACH-BASED VENDORS — ORDINANCE NO. 2011- 3747. • PREFERENCE FOR FLORIDA SMALL BUSINESSES OWNED AND CONTROLLED BY VETERANS AND TO STATE-CERTIFIED SERVICE-DISABLED VETERAN BUSINESS ENTERPRISES -ORDINANCE NO. 2011-3748. • CODE OF BUSINESS ETHICS -- RESOLUTION NO. 2000-23879. Any questions or requests for clarifications concerning this RFP shall be submitted by"e-mail to: ParnelaLeia(ED-miarnibeachfl.gov, with copies also submitted to the City Clerk: RafaelGranado @miamibeachfl.gov. All questions or requests for clarifications must be received no later than five (5) calendar days prior to the scheduled RFP submission date. All responses to questions/clarifications will be sent to Proposers in the form of a written addendum. THE CITY OF MIAMI BEACH RESERVES THE RIGHT TO ACCEPT ANY PROPOSAL DEEMED TO BE IN THE BEST INTEREST OF THE CITY, OR WAIVE ANY IRREGULARITY AND/OR INFORMALITY IN ANY PROPOSAL, OR REJECT ANY AND/OR ALL PROPOSALS. Sincerely, Raul J. Aguila Chief Deputy City Attorney (for Procurement Division) 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 3 of 43 MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov PROCUREMENT Division Tel: 305.673.7490 Fax:786.394.4006 RFP No. 34-11/12 NOTICE TO PROSPECTIVE PROPOSERS If not submitting a Proposal at this time, please detach this sheet from the RFP documents, complete the information requested, and return to the address listed above. NO PROPOSAL SUBMITTED FOR REASON(S) CHECKED AND/OR INDICATED: Not responding due to workload issues Not responding due to minimum qualifications requirements Not responding due to scope of services Not responding due to project's size and/or complexity OTHER. (Please specify) We do do not want to be retained on your mailing list for future proposals for the type or product and/or service. Signature: Title: Company: Note: Failure to respond, either by not submitting a proposal or this completed form, may result in your company being removed from the City's bid list. 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 4 of 43 MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov PROCUREMENT DIVISION Tel: 305-673-7490,Fax: 786.394.4006 TABLE OF CONTENTS PAGE I. OVERVIEW AND PROPOSAL PROCEDURES 6-11 II. SCOPE OF SERVICES 12-16 III. PROPOSAL FORMAT 17-18 IV. EVALUATION/SELECTION PROCESS/ CRITERIA FOR EVALUATION 19 V. SPECIAL TERMS AND CONDITIONS-INSURANCE 20-21 VI. PROPOSAL DOCUMENTS TO BE COMPLETED AND 21-41 RETURNED TO CITY WITH PROPOSAL SUBMISSION -All items outlined as required under Proposal Format(Section III) And Scope of Services/Specifications (Section II) -Signed Insurance Checklist -Proposer Information -Acknowledgment of Addenda -Declaration -Sworn Statement/Section 287.133(3) (a), Florida Statutes - Public Entity Crimes -Questionnaire -Acknowledgment Letter -Disclosure and Disclaimer -Declaration: Non-Discrimination in Contracts and Benefits -Reasonable Measures Application (if applicable) -Substantial Compliance Form (if applicable) VII. DOCUMENTS TO BE COMPLETED BY CUSTOMERS OF THE PROPOSERS -Performance Evaluation Letters 42 -Performance Evaluation Survey 43 4120112 RFP No:34-11/12 City of Miami Beach Auditing Services 5 of 43 SECTION I -OVERVIEW AND PROPOSAL PROCEDURES: A. INTRODUCTION /BACKGROUND The Mayor and City Commission at its March 21, 2012 meeting, authorized the Administration to issue this RFP for Auditing Services. The purpose of the RFP is to solicit professional auditing services to examine the City's Basic Financial Statements included in the City's Comprehensive Annual Financial Report (CAFR). The engagement shall also include the Single Audit, PSF, VCA, Convention Center, BBC, CT, and SNP audits. The term of the contract entered into between the City and the successful proposer(s) shall be for an initial term of up to five (5)years, to be determined at the option of the City. n in September 30 2012 . Additional ears of the The original en a engagement will be for the fiscal eared g p Y 99 Y engagement or additional auditing services would be subject to the approval.of the Audit Committee and confirmation by the City Commission annually. There are ten services which are required as part of this RFP. All services must be included in Proposers' responses in order for such responses to be considered. B. RFP TIMETABLE The anticlRated schedule for this RFP is as follows: RFP issued April 20, 2012 Pre-proposal submission meeting May 1, 2012 at 10:00 a.m. Deadline for receipt of questions May 3, 2012 at 5:00 p.m. Deadline for receipt of Proposals May 18, 2012 at 3:00 p.m. Evaluation Committee review May/June 2012 Commission approval authorizing negotiations July 2012 Contract negotiations July 2012 C. PROPOSAL SUBMISSION An original and ten (10) copies of complete Proposals, plus a CD, must be received no later than 3:00 p.m. on May 18, 2012, at the following address: City of Miami Beach City Hall Procurement Division --Third Floor 1700 Convention Center Drive Miami Beach, Florida 33139 The original and all copies, plus the CD, must be submitted to the Procurement Division in a sealed envelope or container stating on the outside the Proposer's name, address, and RFP number and title. No facsimile, electronic, or e-mail Proposals will be considered. THE RESPONSIBILITY FOR SUBMITTING A PROPOSAL IN RESPONSE TO THIS RFP, ON OR BEFORE THE STATED TIME AND DATE, WILL BE SOLELY AND STRICTLY THAT OF THE PROPOSER. THE CITY WILL IN NO WAY BE RESPONSIBLE FOR.DELAYS CAUSED BY MAIL, COURIER SERVICE, OR BY ANY OTHER ENTITY OR OCCURRENCE. ANY PROPOSAL RECEIVED AFTER 3:00 P.M. ON MAY 18, 2012 WILL BE RETURNED TO THE PROPOSER UNOPENED. PROPOSALS RECEIVED AFTER THE RFP DUE DATE AND.TIME WILL NOT BE ACCEPTED AND WILL NOT BE CONSIDERED. 4/20112 RFP No:34-11/12 City of Miami Beach Auditing Services 6 of 43 D. REQUIREMENT FOR CITY CONTRACTORS TO PROVIDE EQUAL BENEFITS FOR DOMESTIC PARTNERS The contract awarded pursuant to this RFP is subject to the City's Equal Benefits Ordinance (as adopted pursuant to Ordinance No. 2005-3494, and as codified in Section 2-373 of the City Code entitled, "Requirement for City Contractors to Provide Equal Benefits for Domestic Partners, and hereafter referred to as the"Ordinance"). The Ordinance applies to all employees of a Contractor who work within the City limits of the City of Miami Beach, Florida; and the Contractor's employees located in the United States, but outside of the City of Miami Beach limits, who are directly performing work on the contract within the City of Miami Beach. The City shall not enter into any contract unless the bidder/proposer certifies that such firm does not discriminate in the provision of Benefits between employees with Domestic-Partners and employees with spouses and/or between the Domestic Partners and spouses of such employees. Contractors may also comply with the Ordinance by providing an employee with the Cash Equivalent of such Benefit or Benefits, if the City Manager or his designee determines that the Contractor has made reasonable yet unsuccessful effort to provide Equal Benefits. The Contractor shall complete and return the "Reasonable Measures Application"contained herein, and the Cash Equivalent proposed. It is important to note that Contractors are considered in compliance if Contractor provides benefits neither to employees' spouses nor to employees' Domestic Partners. Attached to this RFP are the following documents that need to be returned to the City with your Proposal or, if omitted as part of your Proposal submission, within-five (5) calendar.days after receipt of written request from the City: • Declaration: Nondiscrimination in Contracts and Benefits Form; • Reasonable Measures Application Form; and • Substantial Compliance Authorization Form. E. PRE-PROPOSAL SUBMISSION MEETING A Pre-Proposal Submission Meeting is scheduled for Tuesday, May 1, 2012 at 10:00 a.m. at the following address: City of Miami Beach City Hall — 4t' Floor, Mayor's Conference Room, 1700 Convention Center Drive, Miami Beach, Florida 33139 Attendance (in person or via telephone) is encouraged and recommended as a source of information, but is not mandatory. Proposers interested in participating in the Pre-Proposal Submission Meeting via telephone must follow these steps: (1) Dial the TELEPHONE NUMBER: 1-877-953-3061 (Toll-free North America) (2) Enter the MEETING NUMBER: 8982915# Proposers who are interested in participating via telephone should send an e-mail to the contact person . listed in Section E of this RFP expressing their intent to participate via telephone. F. CONTACT PERSON/ADDITIONAL INFORMATION/ADDENDA The contact person for this RFP is Pamela Leja-Katsaris, Sr. Procurement Specialist, who may be reached by phone at 305.673.7490; fax at 786.394.4006, or e-mail at 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 7 of 43 Pamela Leja(aD-miamibeachfl.gov. Oral communications between a proposer, bidder, lobbyist, and/or consultant and.the Procurement contac tare limited to matters of process or procedure. Requests for additional information or requests for clarifications must be made in writing to the Procurement Division. Facsimile or e-mail requests are acceptable. Please send all questions and/or requests for clarifications to PamelaLeja @miamibeachfi.gov, with a copy to the City Clerk's Office at RafaelGranado(a-)-miamibeachfl.gov, no later than the date specified in the RFP timetable. The Procurement contact will issue replies to inquiries and any other corrections or amendments, as he deems necessary, in written addenda issued prior to the deadline for responding to the RFP. Proposers should not rely on representations, statements, or explanations (whether verbal or written), other than those made in this RFP or in any written addendum to this RFP. Proposers .should verify with the Procurement Division prior to submitting a Proposal that all addenda have been received. PURSUANT TO THE CITY'S CONE OF SILENCE ORDINANCE, AS-CODIFIED IN SECTION 2486 OF THE CITY CODE, PROPOSERS ARE ADVISED THAT ORAL COMMUNICATIONS BETWEEN THE PROPOSER, OR THEIR REPRESENTATIVES AND 1) THE MAYOR AND CITY COMMISSIONERS AND THEIR RESPECTIVE STAFF; OR 2) MEMBERS OF THE CITY'S ADMINISTRATIVE STAFF (INCLUDING BUT NOT LIMITED TO THE CITY MANAGER AND HIS STAFF); OR 3) EVALUATION COMMITTEE MEMBERS, IS PROHIBITED. G.. MODIFICATION/WITHDRAWALS OF PROPOSALS A Proposer may submit a modified Proposal to replace all or any portion of a previously submitted Proposal up until the Proposal due date and time. Modifications received after the Proposal due date and time will not be considered. Proposals shall be irrevocable until contract award unless withdrawn in writing prior to the Proposal due date, or after expiration of 120 calendar days-from the opening of Proposals without a contract award. Letters of withdrawal received after the Proposal due date and before said expiration date, and letters of withdrawal received after contract award will not be considered. H. RFP POSTPONEMENT/CANCELLATION/REJECTION The City may, at its sole and absolute discretion, reject any and all, or parts of any and all, Proposals; re-advertise this RFP; postpone or cancel, at any time, this RFP process; or waive any irregularities in this RFP, or in any Proposals received as a result of this RFP. I. COSTS INCURRED BY PROPOSERS All expenses involved with the preparation and submission of Proposals, or any work performed in connection therewith, shall be the sole responsibility (and shall be at the sole cost and expense) of the Proposer, and shall not be reimbursed by the City. J. EXCEPTIONS TO RFP Proposers must clearly indicate any exceptions they wish to take to any of the terms in this RFP, and outline what, if any, alternative is being offered. All exceptions and alternatives shall be included and clearly delineated, in writing, in the Proposal. The City, at its sole and absolute discretion, may accept or reject any or all exceptions and alternatives. In cases in which exceptions and alternatives are rejected, the City shall require the Proposer to comply with the particular term and/or condition of the RFP to which Proposer took exception to (as said term and/or condition was originally set forth on the RFP). 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 8 of 43 K. FLORIDA PUBLIC RECORDS LAW Proposers are hereby notified that all Proposals including, without limitation, any and all information and documentation submitted therewith, are exempt from public records requirements under Section 119.07(1), Florida Statutes, and s. 24(a), Art. 1 of the State Constitution until such time as the City provides notice of an intended decision or until thirty (30) days after opening of the Proposals, whichever is earlier. L. NEGOTIATIONS The City reserves the right to enter into further negotiations with the selected Proposer. Notwithstanding the preceding, the City is in no way obligated to enter into a contract with the selected Proposer in the event the parties are unable to negotiate a contract. It is also understood and acknowledged by Proposers that by submitting a Proposal, no property interest or legal right of any kind shall be created at any time until and unless a contract has been agreed to; approved by the City; and executed by the parties. M. PROTEST PROCEDURE Proposers that are not selected may protest any recommendation for selection of award in accordance with the proceedings established pursuant to the City's bid protest procedures (Ordinance No. 2002- 3344), as codified in Sections 2-370 and 2-371 of the City Code. Protests not timely made pursuant to the requirements of Ordinance No. 2002-3344 shall be barred. N. OBSERVANCE OF LAWS Proposers are expected to be familiar with, and comply with, all Federal, State, County, and City laws, ordinances, codes, rules and regulations, and all orders and decrees of bodies or tribunals having jurisdiction or authority which, in any manner, may affect the scope of services and/or project contemplated by this RFP (including, without limitation, the Americans with Disabilities Act, Title VII of the Civil Rights Act, the EEOC Uniform Guidelines, and all EEO regulations and guidelines). Ignorance of the law(s) on the part of the Proposer will in no way relieve it from responsibility for compliance. O. DEFAULT Failure or refusal of the successful Proposer to execute a contract following approval of such contract by the City Commission, or untimely withdrawal of a Proposal before such award is made and approved, may result in forfeiture of that portion of any surety required as liquidated damages to the City. Where surety is not required, such failure may result in a claim for damages by the City and may be grounds for removing the Proposer from the City's vendor list. P. CONFLICT OF INTEREST All Proposers must disclose, in their Proposal, the name(s) of any officer, director, agent, or immediate family member (spouse, parent, sibling, and child) who is also an employee of the City of Miami Beach. Further, all Proposers must disclose the name of any City employee who owns, either directly or indirectly, an interest of ten (10%) percent or more in the Proposer entity or any of its affiliates. Q. PROPOSER'S RESPONSIBILITY Before submitting a Proposal, each Proposer shall be solely responsible for making any and all investigations, evaluations, and examinations, as it deems necessary, to ascertain all conditions and requirements affecting the full performance of the contract. Ignorance of such conditions and 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 9 of 43 requirements, and/or failure to make such evaluations, investigations, and examinations, will not relieve the Proposer from any obligation to comply with every detail and with all provisions and requirements of the contract, and will not be accepted as a basis for any subsequent claim whatsoever for any monetary consideration on the part of the Proposer. R. RELATIONSHIP TO THE CITY It is the intent of the City, and Proposers hereby acknowledge and agree, that the successful Proposer is considered to be an independent contractor, and that neither the Proposer, nor the Proposer's employees, agents, and/or contractors, shall, under any circumstances, be considered employees or agents of the City. S. PUBLIC ENTITY CRIME A person or affiliate who has been placed on the convicted vendor- list following a conviction for public entity crimes may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entity for the construction or repair of a public building or public work, may not submit bids on leases of real property to public entity, may not be awarded or perform work as a contractor, supplier, sub-contractor, or consultant under a contract with a public entity, and may not transact business with any public entity in excess of the threshold amount provided in Sec. 287.017, for CATEGORY TWO for a period of 36 months from the date of being placed on the convicted vendor list. T. COMPLIANCE WITH THE CITY'S LOBBYIST LAWS This RFP is subject to, and all Proposers are expected to be or become familiar with, all City lobbyist laws. Proposers shall be solely responsible for ensuring that all City lobbyist laws are complied with, and shall be subject to any and all sanctions, as prescribed therein, including, without limitation, disqualification of their Proposals, in the event of such non-compliance. U. CONE OF SILENCE This RFP is subject to, and all Proposers are expected to be or become familiar with, the City's Cone of Silence requirements, as codified in Section 2-486 of the City Code. Proposers shall be solely responsible for ensuring that all applicable provisions of the City's Cone of Silence are complied with, and shall be subject to any and all sanctions, as prescribed therein, including rendering their Proposal voidable, in the event of such non-compliance. V. DEBARMENT ORDINANCE This RFP is subject to, and all Proposers are expected to be or become familiar with, the City's Debarment Ordinance (as adopted pursuant to Ordinance No. 200-3234, and as codified in Sections 2- 397 through 2-406 of the City Code). - W. COMPLIANCE WITH THE CITY'S CAMPAIGN FINANCE REFORM LAWS This RFP is subject to, and all Proposers are expected to be or become familiar with, the City's Campaign Finance Reform laws, as codified in Sections 2-487 through 2-490 of the City Code. Proposers shall be solely responsible for ensuring that all applicable provisions of the City's Campaign Finance Reform laws are complied with, and shall be subject to any and all sanctions, as prescribed therein, including disqualification of their Proposals, in the event of such non-compliance. 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 10 of 43 X. CODE OF BUSINESS ETHICS Pursuant to City Resolution No.2000-23879, each person or entity that seeks to do business with the City shall adopt a Code of Business Ethics ("Code") and submit that Code to the Procurement Division with its bid/response or within five (5) days upon receipt of request. The Code shall, at a minimum, require the Proposer, to comply with all applicable governmental rules and regulations including, among others, the conflict of interest, lobbying and.ethics provision of the City of Miami Beach and Miami Dade County. Y. AMERICAN WITH DISABILITIES ACT (ADA) Call 305-673-7490NOICE to request material in accessible format; sign language interpreters (five days in advance when possible), or information on access for persons with disabilities. For more information on ADA compliance, please call the-Public Works Department, at 305-673-7631. Z. ACCEPTANCE OF GIFTS, FAVORS, SERVICES Proposers shall not offer any gratuities, favors, or anything of monetary value to any official, employee, or agent of the City, for the purpose of influencing consideration of this Proposal. Pursuant to Sec. 2- 449 of the City Code, no officer or employee of the City shall accept any gift, favor or service that might reasonably tend improperly to influence him in the discharge of his official duties. 4120/12 RFP No:34-11112 City of Miami Beach Auditing Services 11 of 43 SECTION II—SCOPE OF SERVICES There are ten (10) services which are required as part of this RFP. All services must be included in Proposers' responses to the RFP in order for proposals/responses to be considered. The required services are as follows: 1. CAFR—The auditor will prepare and issue an auditor's opinion and conduct an audit of the City's CAFR in accordance with Generally Accepted Auditing Standards (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Controller General of the United States. The examination must be made in accordance with the guidelines prepared by the Governmental Finance Officers Association (GFOA) in order for the City to apply for the Certificate of Achievement for Excellence in Financial Reporting. The examination will include the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund balances of the City, except for the City of Miami Beach Retirement Systems for Firefighters and Police Officers, the City of Miami Beach.Retirement Systems for General Employees, the City of Miami Beach Retirement System for Unclassified Employee and Elected officials, the Firemen's Relief and Pension Fund, and the Policemen's Relief and Pension Fund, which are audited by other auditors. On an annual basis, the City will prepare the CAFR for auditing. The auditors will provide guidance with the implementation of Governmental Accounting Standard Board (GASB) statements as necessary. The audit firm shall issue an audit opinion to the City no later than 180 days following the fiscal year end. 2. OMB A-133 Single Audits - The auditor must perform an audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non- Profit Organizations. The auditor must issue an Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance, Independent Auditors' Report on Compliance and Internal Control over Compliance Applicable to Each Major Federal Program and State Project, and Schedule of Findings and Questioned Costs. The City will prepare -the Schedule of Expenditure of Federal Awards and State Financial Assistance. The audit firm shall issue the single audit report and data collections form to the City no later than 180 days following the fiscal year end. 3. Management Letter in Accordance with the Rules of the Auditor General of the State of Florida - The auditor shall issue a management letter to address the following: • The City's compliance and internal controls or schedule of findings and questioned costs, or not inaccuracies shortages, defalcations, fraud and/or violations of laws, whether 9 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 12 of 43 I rules, regulations, and contractual provisions reported in the preceding annual financial audit report have been corrected. • The City's compliance and internal controls or schedule of findings and questioned costs, whether or not recommendations made in the preceding annual financial audit report have been followed. • Provisions of Section 218.415, Florida Statutes, regarding the City's investment of public funds. • The City's compliance and internal controls or schedule of findings and questioned costs: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures (for example, the omission of required disclosures from the financial statements); (4) failures to properly record financial transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. • Section 218.503(1), Florida Statutes, regarding financial emergencies. • The annual financial report for the City filed with the Department of Financial Services pursuant to Section 218.32, Florida Statutes. • The name or official title and legal authority for the primary government and. each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The audit firm shall issue a management letter to the City no later than 180 days following the fiscal year end. 4. RDA — The City issues stand-alone basic financial statements for the RDA, a blended component unit of the City. The auditor will prepare and issue an auditor's opinion and conduct an audit of the RDA basic financial statements in accordance with Generally Accepted Auditing Standards (GARS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Controller General of the United States.. The financial statements, footnotes and schedules are to be prepared by the auditor. The audit firm shall issue the RDA basic financial statements to the City no later than 180 days following the fiscal year end. one financial statements for the PSF, a major enterprise fund of 5. PSF- The City issues stand-alone J the City. The auditor will prepare and issue an auditor's opinion and conduct an audit of the PSF financial statements in accordance with Generally Accepted Auditing Standards (GARS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Controller General of the United States. The financial statements, footnotes and schedules are to be prepared by the auditor. The audit firm shall issue the PSF basic financial statements to the City no later than 150 days following the fiscal year end. 6. VCA- The City issues stand-alone basic financial statements for the VCA, a discretely presented component unit of the City. The auditor will prepare and issue an auditor's opinion and conduct an audit of the VCA financial statements in accordance with Generally Accepted Auditing 4/20/12 RFP No:34-11112 City of Miami Beach Auditing Services 13 of 43 Standards (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Controller General of the United States. The financial statements, footnotes and schedules are to be prepared by the auditor. The audit firm shall issue the VCA basic financial statements to the City no later than 90 days following the fiscal year end. 7. Convention Center - The City issues special purpose financial statements for assets, liabilities, revenues, and expenses of the Miami Beach Convention Center, as managed by Global Spectrum. The auditor will prepare and issue an auditor's opinion and conduct an audit of the assets, liabilities, revenues and expenses in accordance with Generally Accepted Auditing Standards (GARS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Controller General of the United States. The financial statements; footnotes and schedules-are to be prepared by the auditor. The audit firm shall issue the SMG special purpose financial statements to the City no later than 90 days following the fiscal year end. 8. SNP- The SNP governing Miami-Dade County ordinance No. 96-115 requires that an annual independent audit of all bond funds be conducted. The auditor will conduct an audit to incorporate the following: • Tests for compliance with the grant agreement, SNP ordinance No. 96-115, applicable resolution and the SNP Administrative Rules. Tests for compliance with advance requirements. • Tests for expenditures of required match dollars. Verification of the Fund Summary Status Report. The audit report, notes and schedules are to be prepared by the auditor. The audit firm shall issue the SNB to the City no later than 90 days following the fiscal year end. 9. BBC- The BBC governing Miami-Dade County ordinance No. 05-47 requires that an annual independent audit of all bond funds be conducted. The auditor will conduct an audit to incorporate the following: • Tests for compliance with the grant agreement, BBC ordinance No. 05-47, applicable resolution and the BBC Administrative Rules. • Tests for compliance with advance requirements. • Tests for expenditures of required match dollars. • Verification of the Fund Summary Status Report. The audit report, notes and schedules are to be prepared by the auditor. The audit firm shall issue the BBC to the City no later than 90 days following the fiscal year end. 10. The Children's Trust - 'The Children's Trust Fund (the "Trust") requires that an annual independent audit of the Trust financial statement be performed as to the specific audit 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 14 of 43 requirements imposed by the Trust's contractual agreement. The auditor will prepare and issue an auditor's opinion and other reports in accordance with the Trust agreement and in accordance with Generally Accepted Auditing Standards (GRAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Controller General of the United States. The audit report, notes and schedules are to be prepared by the auditor. The audit firm shall issue the Trust audit to the City no later than 90 days following the fiscal year end. MINIMUM SUBMITTAL AND QUALIFICATIONS REQUIREMENTS 1 Prol2oser's Qualifications a. Describe the proposer's professional development program, including the approximate number of hours of continuing education attended by the proposer. Also indicate the number of days of specialized training in governmental accounting and auditing received during the last two (2) years for personnel to be assigned to this engagement. Indicate compliance with the State Board of Accountancy requirements applicable to audits of Florida local governments. b. Describe the participation of the proposer in national or state, governmental or professional, accounting or auditing boards or committees during the last three (3)years. C. Describe the proposer's quality control programs and procedures that ensure compliance with the proposer's professional standards review and AICPA standards. Indicate whether the proposer is in the SEC Practice Section and/or the Private Companies Practice Section of the Quality Control Program. If the proposer answered positively to the preceding, attach a copy of the last Peer Review received by the proposer. d. Describe the proposer's (local office for national firms) experience in providing accounting and auditing services to local governments. e. Describe any litigation in excess of $100,000 filed against the proposer in the State of Florida over the last three (3) years. Also describe any terminations, suspensions, censures, reprimands, probations or similar actions against the proposer, or any member of the proposer's firm by the Florida State Board of Accountancy in the last three (3) years. f. The proposer will make a statement as to their independence with regard to the City. 2. Qualifications of Project Team: List the members of the project team. Provide a list of the personnel to be used on the project and their qualifications. A resume including education, experience, licenses and any other pertinent information shall be included for each team member, including subcontractors to be assigned to each project. These resumes should be, at minimum, for the partner, the manager, and the senior for this engagement. The resume should include the continuing education in governmental auditing and other governmental audit engagements that they have undertaken. 3. Methodology and Approach: Describe the proposer's approach to this audit engagement. This should include at least the 4120/12 RFP No:34-11/12 City of Miami Beach Auditing Services 15 of 43 following: • Development of the audit program. • Organization of the audit team and titles of team members and approximate amount of time each such class of member will spend on the audit. • The names of the partner and manager that will be assigned to this engagement and the extent of their involvement with this engagement. Any substitution of these individuals must be approved by the Audit Committee prior to any change of staffing. • The proposed schedule for the audit. • Any anticipated use of internal audit staff or other City staff. • Provide at least five (5) client references within the South Florida area (Le within Miami-Dade, Broward, or Palm Beach County). 4. Previous Similar Projects: A list of a minimum of ten similar projects must be submitted. Information should include: • Client Name, address, contact phone number, e-mail address, and fax number. • Description of similar scope of services. • Month and Year the project was started and completed. 5. Training The City desires to maintain and improve the level of training of its personnel assigned to the internal audit function and in accounting positions. The proposal should indicate if the firm conducts any training for its employees and if City personnel could attend such training. i 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 16 of 43 SECTION III —PROPOSAL FORMAT Each Proposal shall include, at a minimum, the following documents, each fully completed and signed, as required. If any items are omitted, Proposers must submit the omitted documentation within five (5) calendar days upon request from the City, or the Proposal may be deemed non-responsive. 1. Table of Contents: Outline in sequential order the major areas of the Proposal, including enclosures. All pages must be consecutively numbered and correspond to the table of contents. 2. Proposal Points to Address: a). Introduction letter outlining the Proposer's professional specialization, and providing past experience to support the qualifications of the Proposer. b) Proposer's must provide documentation sufficient to satisfy the Minimum Submittal and Qualifications Requirements as specified in the RFP. C) Qualifications of Proposer/Associated Proposal Team Members/ Management Team and Key Personnel: Proposer must outline in detail the experience and qualifications as specified in the RFP, as well as provide experience and qualifications on (and as to) similar projects as the one contemplated in this RFP. d) Fee Information: Cost information must be submitted. Notwithstanding any fee submitted, the City reserves the right to further negotiate same with the successful Proposer. e) Evidence of Financial Stability: All Proposers must attach a financial statement, balance sheet or other assurance that indicates the financial capability and viability of the Proposer. The submitted information must either be certified by an independent CPA, or In the case of a banking reference) by an appropriate banking official. f) Past Performance Client Survey Information: Past performance information will be collected on all Proposers. Proposers are required to identify and submit their best projects. Proposers will be required to send out Performance Evaluation Surveys to each of their clients. Please provide your client with the Performance Evaluation Letter and Survey attached herein, and request that your client submit the completed survey to to Pamela Leja- Katsaris at Fax: 786-394-4006 or E-mail: PamelaLeja @miamibeachfl.gov. Proposers are responsible for making sure their clients return the Performance Evaluation Surveys to the City. Proposers are solely responsible for making sure their clients return the Performance Evaluation Surveys to the City. The City reserves the right to verify any informations u bmitted throughout this process. Such verification may include, but is not limited to, speaking with current and former clients, review of relevant client documentation, site-visitation, and other independent confirmation of data. THE CITY WILL NOT ACCEPT CLIENT SURVEYS SENT TO THE PROCUREMENT DIVISION FROM THE OFFICE OF THE PROPOSER. IN ORDER TO BE CONSIDERED, SURVEYS MUST BE SENT TO THE PROCUREMENT DIVISION DIRECTLY FROM YOUR CLIENT'S OFFICE(S). 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 17 of 43 g) Methodology and Approach. The Proposer must specifically describe its proposed methodology and approach for completing the services required in the scope of work. This is to include, but not be limited to, a proposed operational plan. h) Acknowledgment. of Addenda: (IF REQUIRED BY ADDENDUM) and Proposer Information forms. i) Acknowledgment Letter and Disclosure and Disclaimer j) Any other documents required by this RFP. The City reserves the right, in its sole discretion, to request additional information from Proposers following review of the initial Proposal submissions. 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 18 of 43 SECTION IV—EVALUATION/SELECTION PROCESS The procedure for response, evaluation and selection will be as follows: 1. The RFP will be issued 2. A Pre-Proposal Submission Meeting with potential Proposers will be conducted. 3. All timely received Proposals will be opened and listed. 4. An Evaluation Committee, appointed by the City Manager, shall meet to evaluate each Proposal in accordance with the requirements set forth in the RFP. If further information is desired, Proposers may be requested to make additional written submissions or oral presentations to the Evaluation Committee. 5. The Evaluation Committee will recommend to the City Manager the Proposer or Proposers that it deems to be the best candidate(s) by using the following evaluation criteria: - .: i ,,. :,, t = k c` .la s', >✓ C `�i t4�i rj^c,i .5, ation _ro r a .�,.,....�r' 20 Firm's Experience in Auditing Services 20 Qualifications of Project Team 10 Methodology and Approach 15 Previous Similar Projects 15 References Provided by Prior Clients 20 Fees 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. 6. The City Manager shall recommend to the City Commission the Proposal or Proposals which he deems to be in the best interest of the City. 7. The City Commission shall consider the City Manager's recommendation and, if appropriate, approve such recommendation. The City Commission may also, at its option, reject the City Manager's recommendation and select another Proposal or Proposals which it deems to be in the best interest of the City, or it may also reject all Proposals. 8. Negotiations between the City and the selected Proposer(s)will take place to arrive at a mutually s so directed the City may proceed to acceptable Agreement. If the City Commission has ty y p negotiate an Agreement with a proposer other than the top-ranked proposer. 9. The final proposed agreement(s)will be presented to the City Commission for approval. 10. If the agreement(s) are approved by the City Commission, the Mayor and City Clerk shall execute the contract(s), after the Proposer(or Proposers) has (or have) done so. BY SUBMITTING A PROPOSAL, ALL PROPOSERS SHALL BE DEEMED TO UNDERSTAND AND AGREE THAT NO PROPERTY INTEREST OR LEGAL RIGHT OF ANY KIND SHALL BE CREATED AT ANY POINT DURING THE AFORESAID EVALUATION/SELECTION PROCESS UNTIL AND UNLESS A CONTRACT HAS BEEN AGREED TO AND SIGNED BY BOTH PARTIES. 4/20/12 RFP No:34-11/12 Auditing Services 19 of 43 SECTION V—SPECIAL TERMS AND CONDITIONS: INSURANCE The successful Proposer(s) shall obtain, provide and maintain, during the term of the contract, the following types and amounts of insurance, which shall be maintained with insurers licensed to sell insurance in the State of Florida and have a B+ VI or higher rating in the latest edition of AM Best's Insurance Guide: Commercial General Liability. A policy including, but not limited to, comprehensive general liability, including bodily injury, personal injury, property damage, in the amount of a combined single limit of not less than $1,000,000. Coverage shall be provided on an occurrence basis. The City of Miami Beach must be named as certificate holder and additional insured on policy. 1. Workers' Compensation and Employer's Liability per the statutory limits of the state of Florida. 2. Comprehensive General Liability (occurrence form), limits of liability $1,000,000.00 per occurrence for bodily injury property damage to include Premises/Operations; Products, Completed Operations and Contractual Liability. 3. Automobile Liability - $1,000,000 each occurrence - owned/non- owned/hired automobiles included. Worker's Compensation. A policy of Worker's Compensation and Employers Liability Insurance, in accordance with worker's compensation, laws as required per Florida Statutes. Said policies of insurance shall be primary to and contributing with any other insurance . maintained by Proposer or City, and shall name the City of Miami Beach, as an additional insured. No policy can be canceled without thirty (30) days prior written notice to the City. The successful Proposer(s) shall file and maintain certificates of all insurance policies with the City's Risk Management Department showing said policies to be in.full force and effect at all times during the course of the contract. Such insurance shall be obtained from brokers of carriers authorized to transact insurance business in Florida and satisfactory to City. Evidence of such insurance shall be submitted to and approved by City prior to commencement of any work or tenancy under the proposed contract. If any of the required insurance coverages contain aggregate limits, or apply to other operations or tenancies of Proposer(s) outside the proposed contract, Proposer(s) shall give City prompt written notice of any incident, occurrence, claim settlement or judgment against such insurance which may diminish the protection such insurance affords the City. Proposer(s) shall further take immediate steps to restore such aggregate limits or shall provide other insurance protection for such aggregate limits. FAILURE TO PROCURE INSURANCE: The successful Proposers' failure to procure or maintain required the insurance program shall constitute a material breach of the contract. 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 20 of 43 INSURANCE CHECKLIST XXX 1. Workers' Compensation and Employer's Liability per the statutory limits of the state of Florida. XXX 2. Comprehensive General Liability (occurrence form), limits of liability 1,000,000.00 peroccurrence for bodily injury property damage to. include Premises/ Operations; Products, Completed Operations and Contractual Liability, and Contractual Indemnity (Hold harmless endorsement). 3. Automobile Liability - $1,000,000 each occurrence - owned/non-owned/hired automobiles included. 4. Excess Liability - $ 00 per occurrence to follow the primary coverages. 5. The City must be named as and additional insured on the liability policies; and it must be stated on the certificate. XXX 6. Other Insurance as indicated: Builders Risk completed value $ . 00 Liquor Liability $ . 00 Fire Legal Liability $ . 00 Protection and Indemnity $ . 00 Professional Liability/Medical Malpractice $ .00 Employee Dishonesty Bond $ .00 Theft Covering Money and/or Property Of Others $ .00 XXX Professional Liability $500,00.00 XXX 7. Thirty (30) days written cancellation notice required. XXX 8. Best's guide rating B+:VI or better, latest edition. XXX 9. The certificate must state the RFP number and title PROPOSER AND INSURANCE AGENT STATEMENT: I understand the Insurance Requirements of these specifications and that evidence of this insurance may be required within five (5) days after Proposal opening. If I am selected as the successful Proposer, I further understand and agree and acknowledge that failure to procure or maintain the required insurance policy shall constitute a material breach of the contract by which the City may immediately terminate same. For Proposer/Print Name/Title Signature of Proposer 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 21 of 43 I PROPOSER INFORMATION Submitted by: Proposer(Entity): Signature: Name (Printed): Address: City/State: Telephone: Fax: E-mail: Federal ID# It is understood and agreed by Proposer that the City reserves the right to reject any and all Proposals, to make awards on all items or any items according to the best interest of the City, and to waive any irregularities in the RFP or in the Proposals received as a result of the RFP. It is also understood and agreed by the Proposer that by submitting a proposal, Proposer shall be deemed to understand and agree than no property interest or legal right of any kind shall be created at any time until and unless a contract has been agreed to and signed by both parties. For Proposer: (Authorized Signature) (Date) (Printed Name) 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 22 of 43 REQUEST FOR PROPOSALS NO. 34-11/12 ACKNOWLEDGMENT OF ADDENDA Directions: Complete Part I or Part II, whichever applies. Part I: Listed below are the dates of issue for each Addendum received in connection with this RFP. Addendum No. 1, Dated Addendum No. 2, Dated Addendum No. 3, Dated Addendum No. 4, Dated Addendum No. 5, Dated Part II: No Addendum was received in connection with this RFP. Verified with Procurement staff Name of staff Date Proposer-Name Date Signature 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 23 of 43 DECLARATION TO: City of Miami Beach City Hall 1700 Convention Center Drive Procurement Division Miami Beach, Florida 33139 Submitted this day of , 2012. The undersigned, as Proposer, declares that the only persons interested in this Proposal are named herein; that no other person has any interest in this responses or in the contract to which this response pertains; that this response is made without connection or arrangement with any other person; and that this response is in every respect fair and made in good faith, without collusion or fraud. The Proposer agrees if this response is accepted, to execute an appropriate City of Miami Beach document(s)for the purpose of establishing a formal contractual relationship between the Proposer and the City, for the performance of all requirements to which the response pertains. The Proposer states that the response is based upon the documents identified by the following number: RFP No. 34-11/12. WITNESS PROPOSER SIGNATURE PRINTED NAME PRINTED NAME WITNESS TITLE PRINTED NAME 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 24 of 43 SWORN STATEMENT UNDER SECTION 287.133(3)(x), FLORIDA STATUTES, ON PUBLIC ENTITY CRIMES THIS FORM MUST BE SIGNED AND SWORN TO IN THE PRESENCE OF A NOTARY PUBLIC OR OTHER OFFICER AUTHORIZED TO ADMINISTER OATHS. 1. This sworn statement is submitted to [print name of public entity] by [print individual's name and title] for [print name of entity submitting sworn statement] Whose business address is And (if applicable) its Federal Employer Identification Number(FEIN) is (If the entity has no FEIN, include the Social Security Number of the individual signing this sworn statement) I understand that a "public entity crime" as defined in Paragraph 287.133(1)(g), Florida Statutes, means a violation of any state or federal law by a person with respect to and directly related to the transaction of business with any business with any public entity or with an agency or political subdivision of any other state or of the United States, including, but not limited to, any bid or contract for goods or services to be provided to any public entity or an agency or political subdivision of any other state or of the United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or material misrepresentation. I'understand that "convicted" or "conviction" as defined in Paragraph 287.133(1)(b), Florida Statutes, means a finding of guilt or a conviction of a public entity crime, with or without an adjudication of guilt, in any.federal or state trial court of record relating to charges brought by indictment or information after July 1, 1989, as a result of a jury verdict, nonjury trial, or entry of a plea of guilty or polo contendere. I understand that an "affiliate" as defined in Paragraph 287.133 (1)(a), Florida Statutes, means: 1) A predecessor or successor of a person convicted of a public entity crime;or 2) An entity under the control of any natural person who is active in the management of the entity and who has been convicted of a public entity crime. The term "affiliate" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in the management of an affiliate. The ownership by one person of shares constituting a controlling interest in another person, or a pooling of equipment or income among persons when not for fair market value under an arm's length agreement, shall be a prima facie case that one person controls another person. A person who knowingly enters into a joint venture with a person who has been convicted ..4120/12 RFP No:34-11112 City of Miami Beach Auditing Services 25 of 43 of a public entity crime in Florida during the preceding 36 months shall be considered an affiliate. I understand that a "person" as defined in Paragraph 287.133(1)(e), Florida Statutes means any natural person or entity organized under the laws of any state or of the United States with the legal power to enter into a binding contract and which bids or applies to bid on contracts for the provision of goods or services let by a public entity, or which otherwise transacts or applies to transact business with a public entity. The term person includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in management of.an entity. Based on information and belief, the statement which I have marked below is true in relation to the entity submitting this sworn statement. [indicate which statement applies.] Neither the entity submitting this sworn statement, nor any officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, nor any affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members or agents who are active in management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity'crime subsequent to July 1, 1989. The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. However, there has been a subsequent proceeding before a Hearing Officer of the State of Florida, Division of Administrative Hearings and the Final Order entered by the hearing Officer determined that it was not in the public interest to place the entity submitting this sworn statement on the convicted vendor list. [attach a copy of the final order] I UNDERSTAND THAT THE SUBMISSION OF THIS FORM TO THE CONTRACTING OFFICER FOR THE PUBLIC ENTITY IDENTIFIED IN PARAGRAPH 1 (ONE) ABOVE IS FOR THAT PUBLIC ENTITY ONLY AND, THAT THIS FORM IS VALID THROUGH DECEMBER 31 OF THE CALENDAR YEAR IN WHICH IT IS FILED. I ALSO UNDERSTAND THAT I AM REQUIRED TO INFORM THE.PUBLIC ENTITY PRIOR TO ENTERING INTO A CONTRACT IN EXCESS OF THE THRESHOLD AMOUNT PROVIDED IN SECTION 287.017, FLORIDA STATUTES FOR CATEGORY TWO OF ANY CHANGE IN THE INFORMATION CONTAINED IN THIS FORM. [signature] Sworn to and subscribed before me this day of ,2012 Personally known OR Produced identification Notary Public-State of My commission expires (Type of Identification) (Printed typed or stamped Commissioned name of Notary Public) 4/20112 RFP No:34-11/12 City of Miami Beach Auditing Services 26 of 43 QUESTIONNAIRE Proposer's Name: Principal Office Address: Official Representative: Individual Partnership (Circle One) Corporation Joint Venture If a Corporation, answer this: When Incorporated: In what State: If a Foreign Corporation: Date of Registration with Florida Secretary of State: Name of Resident Agent: Address of Resident Agent: President's Name: Vice-President's Name: Treasurer's Name: 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 27 of 43 Questionnaire(continued) ,�. Members of Board of Director: . If a Partnership: Date of organization: General or Limited Partnership*: Name and Address of Each Partner: NAME ADDRESS * Designate general partners in a Limited Partnership 1. Number of years of relevant experience in operating same or similar business: 2. Have an y agreements held by Proposer for a project ever been canceled? Yes O No If yes, give details on a separate sheet. 3. Has the Proposer or any principals of the applicant organization failed to qualify as a responsible Bidder/Proposer; or refused to enter into a contract after an award has been made; or failed to complete a contract during the past five (5) years; or been declared to be in default in any contract in the past 5 years? If yes, please explain: 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 28 of 43 Questionnaire (continued) 4. Has the Proposer or any of its principals ever been declared bankrupt or reorganized under Chapter 11 or put into receivership? Yes ( ) No ( ) If yes, give date, court jurisdiction, action taken, and any other explanation deemed necessary on a separate sheet. 5. Person or persons interested in this RFP have ( ) have not ( ) been convicted by a Federal, State, County, or Municipal Court of any violation of law, other than traffic violations. To include stockholders over ten percent (10%). (Strike out inappropriate words) Explain any convictions: 6. Lawsuits (any) pending or completed involving the corporation, partnership or individuals with more than ten percent(10%) interest: A. List all pending lawsuits: B. List all judgments from lawsuits in the last five (5)years: C. List any criminal violations and/or convictions of the Proposer and/or any of its principals: 7. Conflicts of Interest. The following relationships are the only potential, actual, or perceived conflicts of interest in connection with this Proposal: (If none, state same.) 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 29 of 43 Questionnaire(continued) 8. Public Disclosure. In order to determine whether the members of the Evaluation Committee for this Request for Proposals have any association or relationships which would constitute a conflict of interest, either actual or perceived, with any Proposer, and/or individuals and entities comprising or representing such Proposer, and in an attempt to ensure full and complete disclosure regarding this RFP, all Proposers are required to disclose all persons and entities who may be involved with this Proposal. This list shall include, without limitation, public relation firms, lawyers, and lobbyists. The Procurement Director shall be notified, in writing, if any person or entity is added to this list after receipt of Proposals. 9. Are there any pending discussions relative to mergers, acquisitions, partnerships, or assignment of contract? 10. Is the business entity a Miami Beach based Vendor? Yes ( ) No If Yes, please submit a copy of a Business Tax Receipt issued by the City of Miami Beach, or documentation to demonstrate that the headquarters is in the City of Miami Beach, or documentation which proves that goods and/or contractual services are being produced or performed, as appropriate, in the City of Miami Beach. 11. Is the business entity owned by a certified service-disabled veteran, and or a small business owned and controlled by veterans, as defined on Section 502 of the Veteran Benefit Health, and Information Technology Act of 2006, and cited in the Database of Veteran-owned Business? Yes ( ) No 4/20/12 RFP No:34-11112 City of Miami Beach Auditing Services 30 of 43 Questionnaire (continued) The Proposer understands that information contained in this Questionnaire will be relied upon by the City in evaluating and making an award pursuant to the RFP, and such information is warranted by the Proposer to be true and accurate. In the event that the City, in its sole discretion, deems necessary, the Proposer agrees to furnish such additional information, relating to the qualifications of the Proposer, as may be required by the City. The Proposer further understands that the information contained in this Questionnaire may be confirmed through a background investigation conducted by the City, conducted either through the Miami Beach Police Department or by a third party retained by the City for such purposes. By submitting this Questionnaire the Proposer hereby agrees to cooperate with this investigation including, but not limited to, fingerprinting and providing information for a credit check. PROPOSER WITNESS: IF INDIVIDUAL: Signature Signature Print Name Print Name WITNESS: IF PARTNERSHIP: Signature Print Name of Successful Proposer Print Name Address By: General Partner Print Name ATTEST: IF CORPORATION: Secretary Print Name of Corporation Print Name Address By: President (CORPORATE SEAL) Print Name 4120/12 RFP No:34-11/12 City of Miami Beach Auditing Services 31 of 43 ACKNOWLEDGMENT LETTER Proposers shall incorporate in their Proposal the following letter and Disclosure and Disclaimer attachment on the Proposer's letterhead stationary: RE: RFP NO. 34-11/12 FOR AUDITING SERVICES Dear Sir or Madame: I have read the City of Miami Beach's RFP NO. 34-11/12 For Auditing Services. On behalf of our Proposal team, we agree to and accept the terms, specific limitations, and conditions expressed therein. In addition, we have read, rely upon, acknowledge, and accept the City's Disclosure and Disclaimer which is attached hereto and is fully incorporated into this letter. Sincerely, [NAME AND TITLE] [ORGANIZATION] [PROPOSER'S NAME] 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 32 of 43 DISCLOSURE AND DISCLAIMER This Request for Proposals ("RFP") is being furnished to the recipient by the City of Miami Beach (the "City") for the recipient's convenience. Any action taken by the City in response to Proposals made pursuant to this RFP, or in making any award, or in failing or refusing to make any award pursuant to such Proposals, or in cancelling awards, or in withdrawing or cancelling this RFP, either before or after issuance of an award, shall be without any liability or obligation on the part of the City. In its sole discretion,the City may withdraw the RFP either before or after receiving proposals, may accept or reject proposals, and may accept proposals which deviate from the RFP, as it deems appropriate and in its best interest. In its sole discretion, the City may determine the qualifications and acceptability of any party or parties submitting Proposals in response to this RFP. Following submission of a Proposal, the applicant agrees to deliver such further details, information and assurances, including financial and disclosure data, relating to the Proposal and the applicant including, without limitation, the applicant's affiliates, officers, directors, shareholders, partners and employees, as requested by the City in its discretion. The information contained herein is provided solely for the convenience of prospective Proposers. It is the responsibility of the recipient to assure itself that information contained herein is accurate and complete. The City does not provide any assurances as to the accuracy of any information in this RFP. Any reliance on these contents, or on any permitted communications with City officials, shall be at the recipient's own risk. Proposers should rely exclusively on their own investigations, interpretations, and analyses. The RFP is being provided by the City without any warranty or representation, express or implied, as to its content, its accuracy, or its completeness. No warranty or representation is made by the City or its agents that any Proposal conforming to these requirements will be selected for consideration, negotiation, or approval. The City shall have no obligation or liability with respect to this RFP, the selection and the award process, or whether any award will be made. Any recipient of this RFP who responds hereto fully acknowledges all the provisions of this Disclosure and Disclaimer, is totally relying on this Disclosure and Disclaimer, and agrees to be bound by the terms hereof. Any Proposals submitted to the City pursuant to this RFP are submitted at the sole risk and responsibility of the party. submitting such Proposal. This RFP is made subject to correction of errors, omissions, or withdrawal from the market without notice. Information is for guidance only, and does not constitute all or any part of an agreement. The City and all Proposers will be bound only as, if and when a Proposal (or Proposals), as same may be modified, and the applicable definitive agreements pertaining thereto, are approved and executed by the parties, and then only pursuant to the terms of the definitive agreements executed among the parties. Any response to this RFP may be accepted or rejected by the City for any reason, or for no reason,without any resultant liability to the City. The City is governed by the Government-in-the-Sunshine Law, and all Proposals and supporting documents shall be subject to disclosure as required by such law. All Proposals shall be submitted in sealed bid form and shall remain confidential to the extent permitted by Florida Statutes, until the 4120112 RFP No:34-11112 City of Miami Beach Auditing Services 33 of 43 date and time selected for opening the responses. At that time, all documents received by the City shall become public records. Proposers are expected to make all disclosures and declarations as requested in this RFP. By submission of a Proposal, the Proposer acknowledges and agrees that the City has the right to make any inquiry or investigation it deems appropriate to substantiate or supplement information contained in the Proposal, and authorizes the release to the City of any and all information sought in such inquiry or investigation. Each Proposer certifies that the information contained in the Proposal is true, accurate and complete, to the best of its knowledge, information, and belief. Notwithstanding the foregoing or anything contained in the RFP, all Proposers agree that in the event of a final unappealable judgment by a court of competent jurisdiction which imposes on the City any liability arising out of this RFP, or any response thereto, or any action or inaction by the City with respect thereto, such liability shall be limited to$10,000.00 as agreed-upon and liquidated damages. The previous sentence, however, shall not be construed to circumvent any of the other provisions of this Disclosure and Disclaimer which imposes no liability on the City. In the event of any differences in language between this Disclosure and Disclaimer and the balance of the RFP, it is understood that the provisions of this Disclosure and Disclaimer shall always govern. The RFP and any disputes arising from the RFP shall be governed by and construed in accordance with the laws of the State of Florida. ACCEPTED: [NAME AND TITLE] [ORGANIZATION] [PROPOSER'S NAME] 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 34 of 43 MIAMIBEACH CITY OF MIAMI BEACH DECLARATION: NONDISCRIMINATION IN CONTRACTS AND BENEFITS Section 1.Vendor Information Name of Company: Name of Company Contact Person: Phone Number: Fax Number: E-mail: Vendor Number(if known): Federal ID or Social Security Number: Approximate Number of Employees in the U.S.: (If 50 or less,skip to Section 4,date and sign) Are any of your employees covered by a collective bargaining agreement or union trust fund? Yes No Union name(s): Section 2. Compliance Questions Question 1. Nondiscrimination-Protected Classes A. Does your company agree to not discriminate against your employees, applicants for employment,employees of the City, or members of the public on the basis of the fact or perception of a person's membership in the categories listed below?Please note: a"YES"answer means your company agrees it will not discriminate;a"NO"answer means your company refuses to agree that it will not discriminate. Please answer yes or no to each category. ❑ Race _Yes_No ❑Sex Yes_No ❑ Color _Yes_No ❑ Sexual orientation _Yes_No ❑ Creed —Yes_No ❑ Gender-transgender status —Yes—No ❑ Religion _Yes_No ❑ Domestic partner status _Yes_No ❑ National origin _Yes_No ❑ Marital status —Yes—No ❑Ancestry _Yes—No ❑ Disability _Yes_No 11 Age _Yes—No El AIDS/HIV status _Yes_No El Height —Yes_No ❑Weight _Yes_No B. Does your company agree to insert a similar nondiscrimination provision in any subcontract you enter into for the performance of a substantial portion of the contract youhave with the City?Please note: you must answer this question,even if you do not intend to enter into any subcontracts. Yes No 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 35 of 43 Question 2. Nondiscrimination - Equal Benefits for Employees with Spouses and Employees with Domestic Partners Questions 2A and 2B should be answered YES even if your employees must pay some or all of the cost of spousal or domestic partner benefits. A. Will your company provide or offer access to any benefits to employees with spouses and/or to spouses of employees that may be assigned to work on the City of Miami Beach contract? Yes No B. Will your company provide or offer access to any benefits to employees with (same or opposite sex) domestic partners* or to domestic partners of employees that may be assigned to work on the City of Miami Beach contract? Yes No *The term Domestic Partner shall mean any two (2) adults of the same or different sex, who have registered as domestic partners with a government body pursuant to state or local law authorizing such registration, or with an internal registry. maintained by the employer of at least one of the domestic partners. A Contractor may institute an internal registry to allow for the provision of equal benefits to employees with domestic partner who do not register their partnerships pursuant to a governmental body authorizing such registration, or who are located in a jurisdiction where no such governmental domestic partnership exists. A Contractor that institutes such registry shall not impose criteria for registration that are more stringent than those required for domestic partnership registration by the City of Miami Beach If you answered"NO"to both Questions 2A and 2B,go to Section 4(at the bottom of this page),complete and sign the form, filling in all items requested. i If you answered"YES"to either or both Questions 2A and 2B, please continue to Question 2C below. C. Please check all benefits that apply to your answers above and list in the "other" section any additional benefits not already specified. Note: some benefits are provided to employees because they have a spouse or domestic partner, such as bereavement leave; other benefits are provided directly to the spouse or domestic partner, such as medical insurance. BENEFIT . Yes for Yes for Employees No,this Benefit Documentation of this Employees with with Domestic is Not Offered Benefit is Submitted Spouses Partners with this Form Health ❑ ° ° ° DentaL ❑ ° ° ° Vision ❑ ° Retirement(Pension, ❑ ❑ ° ° 401(k),etc. Bereavement ❑ ° ° ° Family Leave ❑ ° ° ° Parental Leave ❑ ° ° ° Employee Assistance ❑ ❑ ° ° Pro ram Relocation&Travel ❑ ° ° ° Company Discount, ❑ ° ° ° Facilities&Events Credit Union ❑ ° ° ° Child Care ❑ ° ° ° Other ❑ ° ° ° 4120/12 RFP No:34-11/12 City of Miami Beach Auditing Services 36 of 43 Note: If you can not offer a benefit in a nondiscriminatory manner because of reasons outside your control, (e.g., there are no insurance providers in your area willing to offer domestic partner coverage) you may be eligible for Reasonable Measures compliance. To comply on this basis, you must agree to pay a cash equivalent, submit a completed Reasonable Measures Application with all necessary attachments, and have your application approved by the City Manager,or his designee. Section 3. Required Documentation YOU MUST SUBMIT SUPPORTING DOCUMENTATION to verify each benefit marked in Question 2C.Without. proper documentation, your company cannot be certified as complying with the City's Equal Benefits Requirement for Domestic Partner Ordinance. For example, to document medical insurance submit a statement from your insurance provider or a copy of the eligibility section of your plan document; to document leave programs, submit a copy of your company's employee handbook. If documentation for a particular benefit does not exist,attach an explanation. Have you submitted supporting documentation for each benefit offered? _Yes_No Section 4. Executing the Document I declare under penalty of perjury under the laws of the State of Florida that the foregoing is true and correct,and that I am authorized to bind this entity contractually. Executed this day of , in the year ,at Signature Mailing Address Name of Signatory(please print) City,State,Zip Title 4/20/12 RFP No:3411/12 City of Miami Beach Auditing Services 37 of 43 MIAMIBEACH CITY OF MIAMI BEACH REASONABLE MEASURES APPLICATION Declaration: Nondiscrimination in Contracts and Benefits Submit this form and supporting documentation to the City's Procurement Division ONLY IF you: a. Have taken all reasonable measures to end discrimination in benefits; and b. Are unable to do so.; and c. Intend to offer a cash equivalent to employees for whom equal benefits are not available. You must submit the following information with this form: 1. The names, contact persons and telephone numbers of benefits providers contacted for the purpose of acquiring nondiscriminatory benefits; 2. The dates on which such benefits providers were contacted; 3. Copies of any written response(s) you received from such benefits providers, and if written responses are unavailable, summaries of oral responses; and 4. Any other information you feel is relevant to documenting your inability to end discrimination in benefits, including, but not limited to, reference to federal or state laws which preclude the ending of discrimination in benefits. I declare (or certify) under penalty of perjury under the laws of the State of Florida that the foregoing is true and correct, and that I am authorized to bind this entity contractually. Name of Company (please print) Mailing Address of Company Signature City, State, Zip Name of Signatory (please print) Telephone Number Title Date 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 38 of 43 Definition of Terms A. REASONABLE MEASURES The City of Miami Beach will determine whether a City Contractor has taken all reasonable measures provided by the City Contractor that demonstrates that it is not possible for the City Contractor to end discrimination in benefits. A determination that it is not possible for the City Contractor to end discrimination in benefits shall be based upon a consideration of such factors as: (1) The number of benefits providers identified and contacted, in writing, by the City Contractor, and written documentation from these providers that they will not provide equal benefits; (2)The existence of benefits providers willing to offer equal benefits to the City Contractor; and (3) The existence of federal or state laws which preclude the City Contractor from ending discrimination in benefits. B. CASH EQUIVALENT "Cash Equivalent" means the amount of money paid to an employee with a Domestic Partner(or spouse, if applicable) in lieu of providing Benefits to the employees' Domestic partner (or spouse, if applicable). The Cash Equivalent is equal to the employer's direct expense of providing Benefits to an employee for his or her spouse. Cash Equivalent. The cash equivalent of the following benefits apply: a. For bereavement leave, cash payment for the number of days that would be allowed as paid time off for death of a spouse. Cash payment would be in the form of wages of the domestic partner employee for the number of days allowed. b. For health benefits, the cost to the Contractor of the Contractor's share of the single monthly premiums that are being paid for the domestic partner employee, to be paid on a regular basis while the domestic partner employee maintains the such insurance in force for himself or herself. c. For family medical leave, cash payments for the number of days that would be allowed as time off for an employee to care for a spouse that has a serious health condition. Cash payment would be in the form of wages of the domestic partner employee for the number of days allowed. 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 39 of 43 MIAMIBEACH CITY OF MIAMI BEACH SUBSTANTIAL COMPLIANCE AUTHORIZATION FORM Declaration: Nondiscrimination in Contracts and Benefits This form, and supporting documentation, must be submitted to the Procurement Division by entities seeking to contract with the City of Miami Beach that wish to delay ending their discrimination in benefits pursuant to the Rules of Procedure, as set out below. Fill out all sections that apply. Attach additional sheets as necessary. A. Open Enrollment Ending discrimination in benefits may-be delayed until the first effective date after the first open enrollment process following the date the contract with the City begins, provided that the City Contractor submits to the Procurement Division evidence that reasonable efforts are being undertaken to end discrimination in benefits. This delay may not exceed two years from the date the contract with the City is entered into, and only applies to benefits for which an open enrollment process is applicable. Date next benefits plan year begins: Date nondiscriminatory benefits will be available: Reason for Delay: Description of efforts being undertaken to end discrimination in benefits: I B. Administrative Actions and Request for Extension Ending discrimination in benefits may be delayed to allow administrative steps to be taken to incorporate nondiscriminatory benefits into the City Contractor's infrastructure. The time allotted for these administrative steps shall apply only to those benefits for which administrative steps are necessary and may not exceed 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 40 of 43 three months. An extension of this time may be granted at the discretion of the Procurement Director, upon the written request of the City Contractor. Administrative steps may include, but are not limited to, such actions as computer systems modifications, personnel policy revisions, and the development and distribution of employee communications. Description of administrative steps and dates to be achieved If requesting extension beyond three months, please explain basis: C. Collective Bargaining Agreements(CBA) Ending discrimination in benefits may be delayed until the expiration of a City Contractor's Current collective bargaining agreement(s)where all of the following conditions have been met: 1. The provision of benefits is governed by one or more collective bargaining agreement(s); 2. The City Contractor takes all reasonable measures to end discrimination in benefits either by requesting that the Unions involved agree to reopen the agreements in order for the City Contractor to take whatever steps necessary to end discrimination in benefits or by ending discrimination in benefits without reopening the collective bargaining agreements; and 3. In the event that the City Contractor cannot end discrimination in benefits despite taking all reasonable measures to do so, the City Contractor provides a cash equivalent to eligible employees for whom benefits are not available. Unless otherwise authorized in writing by the Procurement Director, this cash equivalent payment must begin at the time the Unions refuse to allow the collective bargaining agreements to be reopened, or in any case no longer than three (3) months from the date the contract with the City is entered into. For a delay to be granted under this provision, written proof must be submitted with this form that: ❑The benefits for which the delay is requested are governed by a-collective bargaining agreement; ❑All reasonable measures have been taken to end discrimination in benefits(see Section C.2, above); and ❑A cash equivalent payment will be provided to eligible employees for whom benefits are not available. I declare (or certify) under penalty of perjury under the laws of the State of Florida that the foregoing is true and correct, and that I am authorized to bind this entity contractually. Name of Company (please print) Mailing Address of Company Signature City, State, Zip Name of Signatory (please print) Telephone Number Title Date 4/20/12 RFP No:34-11112 City of Miami Beach Auditing Services 41 of 43 MIAMIBEACH City of Miami Beath, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov PROCUREMENT DIVISION Tel:305.673.7490 ,Fax:786.394.4006 To: Phone: Fax: E-mail: Subject: Performance Evaluation of Number of pages including cover: 2 To Whom It May Concern: The City of Miami Beach (City) has implemented a process that collects past performance information pursuant to the submittal of responses to Request for Proposals (RFP). The information you provide will be used to assist the City in the evaluation of Proposals received in response to RFP No. 34-11/12 for Auditing Services. The company listed in the subject line has chosen to submit a Proposal in response to this RFP. It has listed you as a past client for which it has provided services. Both the company and City would greatly appreciate you taking a few minutes of your time to complete the accompanying Performance Evaluation Survey. Please review all items in the following Survey, and answer the questions to the best of your knowledge. If you cannot answer a particular question, please leave it blank. Please return the completed Survey to Pamela Leda Katsarls, Sr. Procurement Specialist, on or befo re May 18 2012y via fax: 786.394.4006, or e-mail PamelaLela(d_)miamibeachfl.gov. Thank you for your time and effort. Raul J. Aguila Chief Deputy City Attorney (for Procurement Division) 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 42 of 43 MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov PROCUREMENT DIVISION Tel:305.673.7490 ,Fax:786.394.4006 PERFORMANCE EVALUATION SURVEY Company Name: Point of Contact: Phone and e-mail: Please evaluate the performance of the company (10 means you are very satisfied and have no questions about hiring them again, and 1 is if you would never hire them again because of very poor performance). If you don't know, please leave blank. poor performance). Please leave blank if you don't know. NO. CRITERIA UNIT 1 Ability to maintain courteous and professional service 1-10 Communication, resolution of discrepancies, responsiveness 2 of personnel servicing the account [to include availability of (1-10) designated contact person(s) 3 Responsiveness to priorities for service 1-10 4 Ability to provide requested services within the designated (1-10) timeframe 5 Cost of services provided (1-10) g Experience level and credentials of assigned staff (1-10) 7 Overall customer satisfaction and hiring again based on performance comfort level in hiring this firmagain) 1-10 OVERALL COMMENTS Agency Providing Referral: Contact Name: Contact Phone and e-mail: Date of Services: Dollar Amount for Services: Thank you for your time and effort. Please return this form to Pamela Leja-Katsaris by May 18, 2012, via fax at 786.394.4006 or via e-mail at Pamela Leia(c�miamibeachfl.gov. 4/20/12 RFP No:34-11/12 City of Miami Beach Auditing Services 43 of 43 I MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachN.gov PROCUREMENT DIVISION Tel: 305-673-7490 Fax: 766.394.4006 May 9, 2012 ADDENDUM NO. 1 TO REQUEST FOR PROPOSALS (RFP) NO. 34-11/12 FOR AUDITING SERVICES In response to questions and requests for additional information received by prospective Proposers by the Administration, the subject RFP is hereby amended as follows: Questions and Answers Q1) Where can we get a copy of last year's financial statements for the following entities: PSF,VCA, Convention Center, SNP, BBC and the Children's Trust? Al) The link to access this information is: http://www.miamibeachfl.gov/procurement/scroll.aspx?id=70123 Q2) Does the City want fee information broken down by service or one fee quote for all services? A2) Broken down by service. Q3) What were the audit fees last year(for each service)? A3) The link to access this information is: http://www.miamibeachfi.gov/procuremenVscroll.aspx?id 70123 Q4) Do you-expect that the level of activity for the Single Audit and the other entities to be consistent for 2012 as compared to 2011? How about In future years? A4) Yes,we expect it to be more or less the same. The bigger entitlement grants should be the same, while the smaller grants come and go, net difference is not material. Q5) Page 29 of 43, question 6(A) and (B), requires a-listing of all litigation. However, on Page 15 of 43, 1(e), you request information on litigation in excess of $100,000. Please clarify. A5) List all litigation. Q6) Was Small Business Enterprise or Minority Business Enterprise participation included in the prior contract? A6) Sharpton, Brunson Company, P.A. participated in the audit, however, their contractual agreement was not with the City, but with McGladrey & Pullen. The City does not require small business enterprise or minority business enterprise participation. RFP No.34-11/12 Addendum#1 May 9,2012 Page 1 of 4 Q7) Other than the City, which of the other entities are accounted for by the City's finance department and which entities have their own accounting/finance department? A7) Below are the audit and who performs the accounting functions for them. • City's Comprehensive Annual Financial Report(CAFR)—CMB Finance Dept. Single Audit—CMB Finance Dept. Parking Systems Fund (PSF)—CMB Finance Dept. • Visitors and Conventions Authority—Miami Beach Visitors and Convention Authority • Convention Center — Global Spectrum, the management company at the Miami Beach Convention Center • Building Better Communities—CMB Finance Dept. • Children Trust—CMB Finance Dept. • Safe Neighborhood Parks—CMB Finance Dept. Q8) Are there reasons other than competitive solicitation requirements for the City's issuance of this RFP? A8) Not that we are aware of. Q9) What was the fee for each of the following components, and in total, for the three most recent fiscal years? • CAFR audit • Federal and State Single Audits • Redevelopment Agency audit • Parking System.audit • Visitor and Convention Authority audit • Convention Center audit • SNP report • BBC report • Children's Trust report A9) The link to access this information is: hftp://www.miamibeachfi.gov/procurement/scroll.aspx?id=70123 Q10) Could you please provide a copy of your contract with the previous firm? A10) The link to access this information is: hftp://www.miamibeachfl.qov/procurement/scroll.aspx?id=70123 is it reported in the City's Q11 What is the City's relationship to the Children's Trust and how i p tY CAFR? A11) The City receives grant funding from the Miami-Dade County Children's Trust. Please see the audit report for details. The Children's trust is accounted for in the general funds QI'IU III ll•11G�Jl'I'ICI-.7�JCliIQI ICVCI"IUe-IUIIU.7. Q12) Could you please provide electronic copies of the most recent audited stand-alone financial statements of RDA, PSF and VSA? RFP No.34-11/12 Addendum#1 May 9,2012 Page 2 of 4 Al2) The link to access this information is: http://www.miamibeachfl.gov/procurement/scroll.aspx?id=70123 Q13) Could you please provide an electronic copy of the most recent audited special- purpose financial statements of the Convention Center? A13) The link to access this information is: http•//www.miamibeachfl.gov/procurement/scroll.aspx?id=70123 Q14) Could you please provide an electronic copy of the most recent audited financial statement of the Children's Trust? A14) The link to access this information is: http•//www.miamibeachfl.Qov/procurement/scroll.aspx?id=70123 Q15) What percentage of the audit was performed by the minority subcontractor under the previous contract? A15) The City did not have a contract with the minority firm and does not require minority participation. The contract was between McGladrey and Sharpton, Brunson Company, P.A. The City has no knowledge of the percentage. Q16) Have there been any delays in any of the last three fiscal years in receiving the final reports of the City's retirement systems that are audited by other auditors? 'A16) No,there were no delays in receiving these reports. Q17) Have Single Audit reports historically been issued concurrently with the CAFR or afterwards? If issued after the CAFR, approximately how long after are they typically issued? A17) The Single Audit is issued after the CAFR. The Single Audit Report is issued before June 3e. Q18) How many programs were audited as major federal programs in fiscal year 2011? Major state programs? A18) The report for 2011 have not been issued at this time. The 2010 report, which include the programs audited is attached hereto. Q19) How many journal entries were proposed by the auditors and recorded in fiscal year 2011? A19) No entries were proposed. Q20) Does the City have an internal audit department? If yes,what is the extent of the internal audit department's involvement in the audit(s)? A?nl.,__YPS' thP_ tv ha3..an_inte real_audit.degartment...The..internal._ . ...____ , __.____...__.._._..__............ . ... _.. ._ audit department is no involved with the external audit. Q21) What are the key IT systems utilized by the City, including but not limited to: RFP No.34-11/12 Addendum#1 May 9,2012 Page 3 of 4 • General ledger package? ® Financial statement preparation package? • Payroll application? A21) The City has an Enterprise Systems (Eden), that includes all the items listed above, and AP, AR, fixed assets, budgeting, and UTB Q22) Are there any software conversions planned for fiscal year 2012 or during the proposed contract period? A22) No. Q23) Is there an internal deadline for issuing the final CAFR other than the March 31 GFOA deadline? A23) No. Q24) We noted that per McGladrey's auditors' report, the financial statements of the VCA and the Miami Beach Convention Center were audited by other auditors. Under the contract with McGladrey, was the VCA and the Miami Beach Convention Center included and McGladrey then decided to use another firm to audit these entities? Or was there a separate contract for the VCA and the Miami Beach Convention Center? A24) The City did not have a contract with the minority firm and does not require minority participation. The contract for VCA and MBCC was between McGladrey and Sharpton, Brunson Company, P.A. Q25) Page 17 of 43 — Section III 2(e) Evidence of Financial Stability This question is highly unusual as we do not see this in other proposals. We are a National private partnership and do not release or financial results to the public. Please clarify if such a statement by us would be sufficient or what, if any, statement by us would satisfy this requirement. A25) The information has to be provided by either CPA or bank, and cannot come from the proposer or proposer's firm Proposers are reminded to please acknowledge receipt of this addendum as part of your bid submission. Potential bidders that have elected not to submit a response to the RFP are requested to complete and return the "Notice to Prospective Proposers" questionnaire with the reason(s)for not submitting a proposal. CITY OF MIAMI BEACH "-94- r t. f IN- Raul J. Aguila, C ief Deputy City Attorney For the Procurement Division RFP No.34-11/12 Addendum#1 May 9,2012 Page 4 of 4 EXHIBIT "By' FEE COMPENSATION Services per the RFP: SERVICE FEES 2012 2013 1) Audit of City's Basic Financial $ 113,700 $115,260 Statement(CAFR) 2) OMB A-133 Single Audits 22,735 23,000 3) Management Letter in 2,275 2,300 Accordance with-the Rules of the Auditor General of the State of Florida 4) Miami Beach Redevelopment 20,500 21,000 Agency(RDA) 5) Miami Beach Parking Systems 20,500 21,000 Funds PSF 6) Miami Beach Visitor and 18,200 19,000 Convention Authority VCA 7) Miami Beach Convention 18,200 19,000 Center, as Managed by Global Spectrum GS 8) Safe Neighborhood Parks 9,500 9,500 SNP 9) Building Better Communities 8,500 8,500 BBC 10) Children's Trust Program (CT) 9,500 9,500 Total $243,610 $248,060 ORDINANCE NO. 2005-3494 - -- --- - :AN ORDINANCE OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING MIAMI BEACH CITY CODE CHAPTER 2, ARTICLE VI, DIVISION 3, BY CREATING SECTION 2-373 THEREOF, ENTITLED 66REQUIREMENT FOR CITY CONTRACTORS TO PROVIDE EQUAL BENEFITS FOR DOMESTIC PARTNERS,to BY MANDATING THAT CITY CONTRACTORS PROVIDE EQUAL BENEFITS FOR DOMESTIC PARTNERS; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION AND AN EFFECTIVE DATE. WHEREAS, it is in the best interest of the City to be responsible to the changing needs of society and to treat all persons fairly and equitably; and WHEREAS, the City recognizes that long-term committed relationships foster economic stability and emotional and physiological bonds; and WHEREAS, the City has adopted a human rights ordinance and seeks to comply with the full spirit of it. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF.THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. That Miami Beach City Code Chapter 2, Article VI, Division 3, is hereby amended to create a new Section 2-373 thereof, entitled "Requirement for City Contractors to Provide Equal Benefits for Domestic Partners", to read as follows: ARTICLE VI. PROCUREMENT DIVISION 3. CONTRACT PROCEDURES SECTION 2-373. REQUIREMENT FOR CITY CONTRACTORS TO PROVIDE EQUAL BENEFITS FOR DOMESTIC PARTNERS Definitions. For purposes of this section only, the following definitions shall apply: LD Benefits mean the following plan, program or policy provided or offered by a Contractor to its employees as part of the employer's total compensation package: sick leave, bereavement leave, family medical leave, and health benefits. (22) Bid shall mean a competitive bid procedure established by the City through the issuance of an invitation to bid, request for proposals, request for qualifications, or request for letters of interest. Q Cash Equivalent means the amount of money paid to an employee with a Domestic Partner (or spouse, if applicable) in lieu of providing Benefits to the employee's Domestic Partner (or spouse, if applicable). The Cash Equivalent is equal to the employer's direct expense of providing Benefits to an employee for his or her spouse. Cash Equivalent. The cash equivalent of the following benefits apply: a. For bereavement leave, cash payment for the number of days that would be allowed as paid time off for the death of a spouse. Cash payment would be in the form of the wages of the domestic partner employee for the number of days allowed. b. For health benefits, the cost to the Contractor of the Contractor's share of the single monthly premiums that are being paid for the domestic partner employee, to be paid on a regular basis while the domestic partner employee maintains such insurance in force for himself or herself. c. For family medical leave, cash payment for the number of days that would be allowed as time off for an employee to care for a spouse who has a serious health condition. Cash payment would be in the form of the wages of the domestic partner employee for the number of days allowed. Contract means any written agreement, purchase order, standing order or instrument entered into pursuant to the award of a Bid whereby the City is committed to expend or does expend funds in return for work, labor, professional services, consulting services, supplies, equipment, materials, construction, construction related services or any combination of the foregoing. Contractor means any person or persons, sole proprietorship, partnership, joint venture, corporation, or other form of doing business, that is awarded a Bid and enters into a Covered Contract with the City, and which maintains 51 or more full- time employees on the payroll during twenty_(20) or more calendar work weeks in either the current or the preceding calendar year. Work weeks include consecutive and non-consecutive work weeks. Covered Contract means a Contract between the City and a Contractor awarded subsequent to the date when this section becomes effective valued at over $100,000. Domestic Partner shall mean any two (2) adults of the same or different sex, who have registered as domestic partners with a governmental body pursuant to state or local law authorizing such registration, or with an internal registry maintained by the employer of at least one of the domestic partners. A Contractor may institute an internal registry to allow for the provision of equal benefits to employees with domestic partner who do not register their partnerships pursuant to a governmental body authorizing such registration, or who are located in a jurisdiction where no such governmental domestic partnership registry exists. A Contractor that institutes such registry shall not impose criteria for registration that are more stringent than those required for domestic partnership registration by the City of Miami Beach. IM Equal Benefits means the eguality of benefits between employees with spouses and employees with Domestic Partners, and/or between spouses of employees and Domestic Partners of employees. fm Equal Benefits Requirements. W All Bids for Covered Contracts which are issued on or after the effective date of this section shall include the requirement to provide Equal Benefits in the procurement specifications for such Bids. The City shall not enter into any Covered Contract unless the Contractor certifies that such Contractor does not discriminate in the provision of Benefits between employees with Domestic Partners and employees with spouses and/or between the Domestic Partners and spouses of such employees. Such certification shall be in writing and shall be signed by an authorized officer of the Contractor and delivered, along with a description of the Contractor's employee benefits plan, to the City's Procurement Director prior to entering into such covered Contract. 4 The City Manager or his/her designee shall reject a Contractor's certification of compliance if he/she determines that such Contractor discriminates in the provision of Benefits or if the City Manager or designee determines that the Certification was created, or is being used for the purpose of evading the requirements of this section. LQ The Contractor shall provide the City and/or the City Manager or his/her designee, access to its records for the purpose of audits and/or investigations to ascertain compliance with the provisions of this section, and upon request shall provide evidence that the Contractor is in compliance with the provisions of this section upon each new Bid, Contract renewal, or when the City Manager has received a complaint or has reason to believe the Contractor may not be in compliance with the provisions of this section. This shall include but not be limited to providing the City and/or the City Manager or his/her designee with certified copies of all of the Contractor's records pertaining to its Benefits policies and its employment policies and practices. i �6 The Contractor must post a copy of the following statement in conspicuous places at its place of business available to employees and applicants for employment: "During the performance of a Contract with the City of Miami Beach, Florida, the Contractor will provide Equal Benefits to its employees with spouses and its employees with Domestic Partners' The posted statement must also include a City contact telephone number which will be provided each Contractor when the Covered Contract is executed. The Contractor may not set up or use its contracting entity for the purpose of evading the requirements imposed by this section. Other Options for Compliance. Provided that the Contractor does not discriminate in the provision of Benefits, a Contractor may also comply with this section in the following ways: 1) The Contractor may provide an employee with the Cash Equivalent of such Benefit or Benefits, if the City Manager or his/her designee determines that either: aa) The Contractor has made a reasonable yet unsuccessful effort to provide Equal Benefits. The Contractor shall provide the City Manager or his/her designee with sufficient proof of such inability to provide such Benefit or Benefits which shall include the measures taken to provide such Benefits or Benefits and the Cash Equivalent proposed, along with its certificate of compliance, as is required under subsection (B) of this section. The City Manager or his designee shall, based on submitted evidence, determine whether the Contractor's failure to provide such Benefit or Benefits precludes such Contractor from entering into a Covered Contract pursuant to the requirements of this sections or Under the circumstances, it would be unreasonable to require the Contractor to provide Benefits to the Domestic Partner(or spouse, if applicable). The Contractor provides benefits neither to employees' spouses nor to employees's'Domestic Partners. Applicability. 1) Unless otherwise exempt, a Contractor is subject to and shall comply with all applicable provisions of this section. Q The requirements of this section shall apply to Contractor's operations as follows: I Employees of a Contractor with a Covered Contract who work within the City limits of the City of Miami Beach, Florida: and b� The Contractor's employees located in the United States, but outside of the City of Miami Beach limits, if those employees are-directly performing work on the Covered Contract within the City of Miami Beach. Mandatory Contract Provisions Pertaining to Egual Benefits. Unless otherwise exempt, every Covered- Contract shall contain language that obligates the Contractor to comply with the applicable provisions of this section. The language shall include provisions for the following: 1) During the performance of the Covered Contract, the Contractor certifies and represents that it will comply with this section. 2) The failure of the Contractor to comply with this section will be deemed to be a material breach of the Covered Contract. 3� If the Contractor fails to comply with this section, the City may terminate the Covered Contract and all monies due or to become due .under the Covered Contract may be retained by the City. The City may also pursue any and all other remedies at law or in equity for any breach. 4) If the City Manager or his designee determines that a Contractor has set up or used its contracting entity for the purpose of evading the requirements of this section, the City may terminate the Covered Contract. 5) Failure to comply with this section may subject the Contractor to the procedures set forth in Division 5, entitled "Debarment of Contractors from City Work.,, U Enforcement. 1� If the Contractor fails to comply with the provisions of this section: 1� The failure to comply may be deemed to be a material breach of the Covered Contracts or 2) The City may terminate the Covered Contract: or 3) Monies due or to become due under the Covered Contract may be retained by the City until compliance is achieved: or 4) The City may also pursue any and all other remedies at law or in equity for any breach: 5� Failure to comply with this section may also subject Contractor to the procedures set forth in Division 5, entitled "Debarment of Contractors from City Work.,' Non-applicability, Exceptions and Waivers. 1� The provisions of this section shall not apply where: pj The Contractor provides Benefits neither to employees' spouses nor to employees' Domestic Partners. b) The Contractor is a religious organization, association, society or any non-profit charitable or educational institution or organization' operated, supervised or controlled by or in conjunction with a religious organization, association or society. ) The Contractor is a governmental entity. The provisions of this section shall not apply to Covered Contracts which involve: a) The sale or lease of City property. b� Development agreements entered into pursuant to Chapter 163.3220, Florida Statutes, (the "Florida Local Government Development Agreement"), as same may be amended. c The award, pursuant to competitive processes, of CDBG, HOME, SHIP and Surtax Funds administered by the City's Office of Community Development. d) The award, pursuant to competitive processes, of Cultural Arts Council Grants. The acquisition of professional architectural, engineering, landscape architectural, or survey and mapping services procured pursuant to Chapter 287 055, Florida Statutes (the "Consultants' Competitive Negotiation Act"), as same may be amended. f) The procurement of life, health, accident, hospitalization, legal expense, annuity insurance, or all or any kinds of other insurance for the officers and employees of the City, and for the dependents of such officers and employees, from a group insurance plan. 3� Upon the request and written recommendation of the City Manager, the City Commission may, by resolution adopted by a five-seventh (5/7ths) vote of the City Commission, waive compliance of this section under the following circumstances: a) The Covered Contract is necessary to respond to an emergency, where the existence of an emergency is requested, upon written recommendation of the City Manager, and same is determined by the City Commission. For purposes of waiver under this subsection only, in determining whether there is an emergency, the City Commission may consider the following non-exclusive factors: i) The nature of the Covered Contract; ii The length of the Covered Contract; iii) The cost of the Covered Contracts iv Whether grants are involved in the Covered Contract and the requirements of those grants v� Whether there is a need to have materials, goods, and services furnished immediately and the consequences of a delay in having those materials, goods, and services furnished: vi The monetary consequences if action is not taken immediately: yjD Any health, safety, and welfare issues that may be involved. viii Increased labor costs, and scheduling of labor: ix The need to complete work before a strict deadline: or The impact of delaying one phase or portion of a project on the other phase(s) or portions of the project. Where only one Bid response is received: c) Where more than one Bid response is received, but the Bids demonstrate that none of the bidders can comply with the requirements of this section, and one or more of the Bids received would otherwise have been responsive if compliance with this section would not have been listed as a requirement in the Bid specifications; d) Where more than one Bid response is received and Bid responses are received from: 1 one or more bidders that comply with the requirements of this section and-are otherwise responsive; and ii) one or more bidders that do not or cannot comply with the requirements of this section, but would otherwise have been responsive if compliance with this section would not have been listed as a requirement in the Bid specifications; and iii the Procurement Director's review of the Bids demonstrates that the cost of the Bid (and/or the proposed Covered Contract which may be negotiated for such Bid), as submitted by-the lowest responsive bidder which complies with the requirements of this section (or, in the case of a proposal, the proposal of the top-ranked proposer), would be at least five percent (5%). or two hundred fifty thousand dollars ($250,000) (whichever is less), greater than the lowest responsive bid submitted by the bidder which does not comply with the requirements of this section but would otherwise have been responsive if compliance with this section would not have been listed as a requirement in the Bid specifications (or, in the case of a proposal, where the top-ranked proposer -which does not comply with the requirements of this section, but would otherwise have been responsive if compliance with this section would not have been listed as a requirement in the Bid specifications); then, upon request and written recommendation of the City Manager, the City Commission may, by resolution adopted by a 5/7ths vote of the City Commission, waive compliance of this section, and award the Bid to the lowest bidder (or, if a proposal, to-the top ranked proposer)which does not comply with the requirements of this section but would otherwise have been compliance responsive if with this p p section would not have been listed as a requirement in the Bid specifications. Consistency with Federal or State Law. The provisions of this section do not apply where the application of these provisions would violate or be inconsistent with the laws, rules or regulations of federal or state law, or where the application would violate or be inconsistent with the terms or conditions of a grant or contract with the United States of America, the State of Florida, or the instruction of an authorized representatives of any of these agencies with respect to any grant or contract. I) Nothing in this section shall be construed to limit the City's authority to cancel or terminate a Contract, deny or withdraw approval to perform a subcontract or provide supplies, issue a non-responsibility finding, issue a non-responsiveness finding, 1 1 deny a person or entity pre-qualifications, or otherwise deny a person or entity City business. J� Timing of Application. This section shall be applicable only to Covered Contracts awarded pursuant to Bids which are issued six (6) months from the date when this section becomes effective. SECTION 2. REPEALER All ordinances or parts or ordinances in conflict herewith be the same are hereby repealed. SECTION 3. SEVERABILITY If any section, sentence, clause or phrase of this ordinance is held to be invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect the validity of the remaining portions of this ordinance. SECTION 4. CODIFICATION It is intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby ordained that the provisions of this ordinance shall become and be made a part of the Code of the City of Miami Beach, Florida. The sections of this ordinance may be. renumbered or relettered to accomplish. such intention, and the word "ordinance" may be changed to "section", "article", or other appropriate word. SECTION 5. EFFECTIVE DATE This Ordinance shall take effect the 29th day of October PASSED and ADOPTED thos19th day of October If-MAYOR, ATTEST: David Dermer CITY CLERK Robert Parcber APPROVED AS TO FORM&LANGUAGE FAatto\AGUR\RESOS-ORD\Equal Benefits Ordinance(Final).doc ®R EXECUTION If kaeg. / /a bs City Attorney Date CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY Condensed Title: An Ordinance(Second Reading)Entitled"Requirement For City Contractors To Provide Equal Benefits For Domestic Partners,"By Mandating That City Contractors Provide Equal Benefits For Domestic Partners. Issue: Fs-hall the City Commission Adopt the Ordinance? Item Summa /Recommendation: The proposed Ordinance is being sponsored by Commissioner Luis Garcia and was prepared at the recommendation of the Neighborhood/Community Affairs Committee. The City Attorney's Office and the City's Procurement Division worked on the proposed Ordinance which would require certain contractors doing business with the City (as further defined herein) to provide "equal benefits"to their employees, including their employees with domestic partners. The proposed Ordinance was prepared,after having reviewed various equal benefits legislation from counties and municipalities in other states,as well as having conducted independent research and legal review. The Ordinance has also been reviewed with representatives of SAVE Dade, including their advisory legal counsel on this issue. The Mayor and Members of the City Commission at its September 8,2005 City Commission meeting, approved on first reading the proposed ordinance entitled"Requirement for City Contractors to Provide Equal Benefits for Domestic Partners"(the Ordinance),and the Contract Compliance Specialist position, by a ballot vote of 7-0. As part of the discussion relevant to the Ordinance and Contracts Compliance Specialist position,the following requests were made by the City Commission and in turn,the Administration conducted its due diligence relative to the issues raised which are addressed in the attached Commission Memo. Adopt the Ordinance, to be submitted in the Supplemental Agenda, reflecting the Finance& Citywide Projects Committee and the Nei hborhood/Communi Affairs Committee's requested modifications. Adv1sory Board Recommendation: On September 1,2005,the Finance and Citywide Projects Committee and the Neighborhood Community Affairs Committee unanimously moved the item to the full Commission, recommending approval of the proposed Ordinance. The Committees also recommended establishing a ramp-up period for ordinance and the creation of dedicated position for contract compliance issues. Financial Information: Source of Amount Account Approved Funds: 2 3 4 Finance Dept. Total Cfty Clerk's Office Legislative Tracking: [-Gus Lopez,ext.6641 Sign-Offs: Depaoment Director Assistant City Manager City Manager GL /��— PDW JMG QAAA T:1AG DA1200510ct19051 Regular\OrdinanceRequirementCont tors mmary.doc AGENDA ITEM RSA DATE l f -Os 1 Ir 1 CIT ■ OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH,FLORIDA 33139 www.miamibeachfi.gov COMMISSION MEMORANDUM To: Mayor David Dermer and Date: October 19,2005 Members of the City Commission From: Jorge M.Gonzalez SECOND READING City Manager PUBLIC HEARING Subject: AN ORDINANCE OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING MIAMI BEACH CITY CODE CHAPTER 2,ARTICLE VI,DIVISION 3,BY CREATING SECTION 2- 373 THEREOF, ENTITLED"REQUIREMENT FOR CITY CONTRACTORS TO PROVIDE EQUAL BENEFITS FOR DOMESTIC PARTNERS," BY MANDATING THAT CITY CONTRACTORS PROVIDE EQUAL BENEFITS FOR DOMESTIC PARTNERS; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION AND AN EFFECTIVE DATE. ADMINISTRATION RECOMMENDATION Adopt the Ordinance. ANALYSIS The Mayor and Members of the City Commission at its September 8, 2005 City Commission meeting, approved on first reading the proposed ordinance entitled "Requirement for City Contractors to Provide Equal Benefits for Domestic Partners"(the Ordinance), and the Contract Compliance Specialist position, by a ballot vote of 7-0. As part of the discussion relevant to the Ordinance and Contracts Compliance Specialist position, the following requests were made by the City Commission and in turn, the Administration conducted its due diligence relative to the following issues: 1. Commissioner Simon Cruz requested that the Contracts Compliance Specialist position reflect the enforcement not only of the Ordinance, but also the City's Living Wage Ordinance. The Administration has prepared the Contracts Compliance Specialist job description with duties and responsibilities that will include enforcement of the requirements set forth in the City's Living Wage Ordinance, Equal Benefits Requirements for Contractors Ordinance, and any other ordinance adopted by the Mayor and City Commission that requires enforcement by the Procurement Division. See attached Contracts Compliance Specialist job description. 2. Commissioner Cruz requested to have penalties in the Ordinance before second reading. The City Attorney's Office has incorporated the following penalty provisions in the proposed Ordinance: • The failure of the Contractor to comply with the Ordinance will be deemed to be a material breach of the Covered Contract; • If the Contractor fails to comply with the Ordinance, the City may terminate the Covered Contract and all monies due or to become due under the Covered Contract may be retained by the City; • The City may also pursue any and all other remedies at law or in equity for any breach; • If the City Manager or his designee determines that a Contractor has set up or used its contracting entity for the purpose of evading the requirements of this section, the City may terminate the Covered Contract; • Failure to comply with this section may subject the Contractor to the procedures set forth in Division 5, entitled "Debarment of Contractors from City Work."; • Monies due or to become due under the Covered Contract may be retained by the City until compliance is achieved; and • Failure to comply with the requirements of the Ordinance may also subject Contractor to the procedures set forth in the Miami Beach City Code, entitled "Debarment of Contractors from City Work." 3. Commissioner Jose Smith stated that as it relates to the enforcement issue,the City needs to look at creative ways to enforce the Ordinance, and suggested that perhaps another governmental agency,or law schools(i.e.,University of Miami and University of New York) as opposed to hiring full-time employee. The City's Procurement Director explored Commissioner Smith's suggestion with the following entities/individuals: i MIAMI-DADE COUNTY Marsha Jackman,Director, Department of Business Development,Miami-Dade County. Ms. Jackman also oversees the County's Compliance Division, which oversees the County's Living Wage Ordinance. Ms. Jackman informed the City's Procurement Director that the Miami-Dade County Commission established a 15-person Living Wage Commission with the purpose of reviewing the effectiveness of the County's Living Wage Ordinance, review certifications submitted by covered employers, review complaints filed by employees and to make recommendations to the County Mayor and the County Commission.And the County's Living Wage Ordinance is enforced by the Compliance Division within the Department of Business Development. The Compliance Division consists of 28 individuals, of which 9 are Contract Compliance Specialist II, and 14 are Contract Compliance Specialist I, and the 5 are support staff positions. When asked if the County would consider enforcing the City's Living Wage and/or Equal Benefits Ordinance, Ms.Jackman indicated that her office is only familiar with the Living Wage Ordinance. And as it relates to the Living Wage Ordinance, in order for her office to present a recommendation to the County Manager, the County needs to know if the City wants an "aggressive enforcement" process that includes but is not i limited to on-site interviews with employees of all covered employers, or enforcement only when complaints are filed? If the City desires "aggressive enforcement", based on the County's Compliance Division's existing staff and the volume of current County contracts that fall under the County's Living Wage Ordinance, coupled with the City's Living Wage contracts,then the County would need to hire additional staff and all costs associated with enforcement would be part of an inter-governmental agreement with the City. Should the City desire the County to process and resolve all complaints filed relative to Living Wage,then all costs associated with complaint procedures,sanctions,remedies, and administrative hearing processes would be part of an inter-governmental agreement with the City. University of Miami Professor Michael Fischl, University of Miami, School of Law. Professor Fischl had heard about the City's Equal Benefits Requirements Ordinance but was not aware of the particulars. His area of expertise and study has been the Living Wage Ordinance. Professor Fischl offered suggestions including the establishment of an oversight committee that would make recommendations and review staff reports relative to compliance or lack thereof by vendors. Additionally, Professor Fischl believed that a "specialist" whose job responsibilities would require enforcement of the various ordinances was a good-idea. New York University (NYU) Professor Paul Sonn, Brennan Center for Justice at NYU School of Law. Professor Sonn informed me that the NYU Center has assisted activists, lawmakers in cities across the country in designing, enacting and defending living wage laws. He is not familiar with Equal Benefits laws, but has done extensive research on Living Wage laws. However, as it relates to enforcement issues, he would defer to his colleague at the University of Massachusetts, Stephanie Luce. At the time this Commission Memorandum was being finalized,several messages and and Professor Gerald Lopez,e mails were sent to Professor Luce, p ,NYU School of Law. Any information provided by Professor Lopez or Professor Luce will be submitted as supplemental material. 4. Commissioner Richard Steinberg asked if the False Claims Ordinance can be changed, so that if someone is asking the City for payment based on a contract that they are supposed to pay a living wage or provide for domestic partner benefits, and they are not adhering the requirements of said Living Wage or Equal Benefits Ordinances,then that would trigger the False Claims Ordinance. The City Attorney's Office has reviewed the False Claims Ordinance, and, the current version would not apply with regard to enforcement of the proposed Equal Benefits Ordinance and,other ordinances such as the Living Wage Ordinance. An amendment to the False Claims Ordinance would be required which, upon request by the City Commission, the City Attorney's Office would prepare. 5. Commissioner Smith requested to know what the potential fiscal impact would be if the Cit y Commission exercised the waiver provisions set forth in the Ordinance. The Commission Memorandum presented to the City Commission on September 8, 2005, informed the Mayor and City that if the proposed Ordinance was enacted five years ago, the fiscal impact would have been have been. $2,149,887.56. This estimated fiscal impact was based on applying the requirements of the proposed Ordinance to the contracts awarded by the City over the past five years, without any waiver considerations.The potential fiscal impact if the City Commission had exercised the waiver provisions set forth in the Ordinance-is reduced from $2,149.887.56 to $366,119.56. The significant difference is in large part attributable to one contract—the North Shore Park and Youth Center which shows a difference between the low bidder who is not compliant, and the second low bidder who is compliant, of$1,652,768. FISCAL IMPACT Determining the five-year fiscal impact of the proposed Ordinance beyond the cost associated with aforementioned Contract Compliance Specialist position is extremely difficult when one considers the variables of the proposed Ordinance (i.e. applicability, exemptions,and waiver provisions). However,the Administration applied survey results to the bid results of the last five years' contract awards to determine the impact of the proposed Ordinance. In other words, if the proposed Ordinance was enacted five years ago, what would the fiscal impact have been? Based on the above, had the Ordinance been in place, the additional cost to the City would have been in excess of$2 million. The following are the bid results if the Ordinance applied at the time of award (looking back five years): (1) Total number of contracts awarded that the results were applied to:......174 (2) Total number/percentage of contractors who provide or offer equal benefits to all employees including individuals in a domestic partnership ....................... . ....................................129(74%) (3) Total number/percentage of contractors who would not provide or offer equal benefits to all employees including individuals in a domestic partnership.......................... ....................................................17(10%) (4) Total number/percentage of contracts exempted................................28 (16%) (5) Fiscal Impact Without Waiver.....................................................$2,149.887.56 (6) Fiscal Impact With City Commission Waiver .............................. $366,119.56 The fiscal impact in subsection (5) above, was calculated by comparing the lowest and best bids which did not meet the requirement of the proposed Ordinance (in terms of offering equal benefits to employees with domestic partners), versus the next lowest and best bids that did meet the requirements of the Ordinance (i.e., offered equal benefits to employees with domestic partners). BACKGROUND Pursuant to the � the request of Commissioner Luis Garcia Mayor and City Commission q Y tY passed and adopted on July 28,2004,Ordinance No.2004-3451,which amended Chapter 62 of the Miami Beach Code entitled "Human Relations" by adding Article IV thereto to provide for Registered Domestic Partnerships for those wishing to register who meet eligibility requirements,and granting certain rights including health care visitation and heath care decisions, among other rights. At the direction of the Neighborhood/Community Affairs Committee, the City Attorney's Office and the City's Procurement Division worked on the proposed Ordinance which would require certain contractors doing business with the City (as further defined herein) to provide "equal benefits" to their employees, including their employees with domestic partners. The attached Ordinance, entitled "Requirement for City Contractors to Provide Equal Benefits for Domestic Partners" (and which may hereinafter also be referred to as the Ordinance)was prepared by the City Attorney's Office and the Administration after having reviewed various equal benefits legislation from counties and municipalities in other states, as well as having conducted their own independent research and legal review. The Ordinance has also been reviewed with representatives of SAVE Dade, including their advisory legal counsel on this issue, and incorporates their comments and/or revisions. On September 1, 2005, the Finance and Citywide Projects Committee and the Neighborhood/Community Affairs Committee (the "Committees"), held a joint meeting to discuss the proposed Ordinance. The Committees listened to a presentation from Raul Aguila, First Assistant City Attorney, which provided an analysis of the major points of the proposed Ordinance. Additionally, the Committees listened to a presentation from Gus Lopez, Procurement Director,which provided the results of surveys issued to more than 2,800 vendors,and information relative to potential fiscal impact. Commissioner Steinberg requested that the "cash equivalent" option for compliance be further reviewed and/or modified to ensure that the applicability requirements are- consistent. Additionally, Commissioner Steinberg recommended as part of the waiver provisions, some consideration for the City Commission to waive the requirements of the proposed Ordinance, should the City Commission determine it is in the City's best economic interest. The Committees unanimously moved the item to the full Commission, recommending approval of the proposed Ordinance. The Committees also recommended establishing a ramp-up period for ordinance and the creation of dedicated position for contract compliance issues. Commissioner Garcia and Ms. Pena thanked the Committees for supporting the proposed Ordinance. PROPOSED EQUAL BENEFITS ORDINANCE SUMMARY The foregoing analysis provides a summary of the major points of the proposed Ordinance: 1)What is the intent of the Ordinance? The proposed Ordinance will require certain contractors doing business with the City of Miami Beach,who are awarded a contract pursuant to competitive bids,to provide"Equal Benefits"to their employees with Domestic Partners, as they provide to employees with spouses. 2) How are"Equal Benefits"defined and what kind of"Benefits"does the Ordinance cover? "Equal Benefits" means that contractors doing business with the City who are covered by the Ordinance shall be required to provide the same type of benefits that they offer to employees and their spouses, to employees with Domestic Partners. The type of"Benefits"defined by the Ordinance and which may be offered by a contractor include: sick leave, bereavement leave, family medical leave, and health benefits. " Ordinance are the same a of benefits that the City provides The Benefits defined in the Or type tY P to Domestic Partners of City employees, pursuant to Section 62-128 of the City Code]. Notwithstanding the definition of"Benefits"in the Ordinance,to comply with the Ordinance a Contractor is not required to provide all the above-described benefits. Contractors are only required to offer the same type of Benefits they offer to their employees with spouses, to employees with Domestic Partners. Additionally,a Contractor who offers no benefits to employees or their spouses,would not be required to offer any benefits to employees with Domestic Partners (and would still be in compliance with the Ordinance).] 3)Who is considered a"Domestic Partner" under the Ordinance? A"Domestic Partner"shall mean any two (2) adults of the same or different sex who have registered as domestic partners with a government body pursuant to state or local law authorizing such registration, or with an internal registry maintained by the employer of at least one of the domestic partners. 4) What type of Contracts and/or which Contractors are covered by the Ordinance? The Ordinance only applies to the following: • competitively,bid City contracts (bids, RFP's, RFQ's, RFLI's, etc.). • contracts valued at over$100,000. • contractors who maintain 51 or more full time employees on their payrolls during 20 or more calendar work weeks in either the current or the preceding calendar year. • contractors covered by the Ordinance are only required to comply as to employees who: 1) either work within the City limits of the City of Miami Beach; or 2) the contractor's employees located in the United States, but outside of the City limits, only if those employees are directly performing work on the City contract(covered by the-Ordinance). 5) In what cases does the Ordinance not apply? The provisions of the Ordinance do not apply where: • the City contract has been has been entered into prior to the effective date of the Ordinance (including renewal terms contained in such contracts). • the City contract is not competitively bid. • the City contract is valued at less than $100,000. • the contractor has less than 51 employees. • the contractor does not provide Benefits either to employees' spouses or to employees' Domestic Partners. • the contractor is a religious organization, association, society or any non profit charitable or educational institution or organization operated, supervised or controlled by or in conjunction with a religious organization, association or society. • the contractor is another government entity. The following City contracts are not covered by the Ordinance: • contracts for sale or lease of City property. . • Development Agreements. • contracts/grants for CDBG, HOME, SHIP, and Surtax funds administered by the City's Office of Community Development • Cultural Arts Council grants contracts for professional A/E, landscape A/E, or survey and mapping services procured pursuant to Chapter 287.055, Florida Statutes ("The Consultants Competitive Negotiation Act". contracts for the procurement of life,health,accident,hospitalization,legal expense, annuity insurance, or any and all other kinds of insurance for the officers and employees of the City and their dependents, from a group insurance plan. The Ordinance provides, upon written recommendation of the City Manager,that the City Commission may, by 5/7ths vote, waive application of the Ordinance for the following: • emergency contracts. • contracts where only one bid response is received. • contracts where more than one bid response is received, but none of the bidders can comply with the requirements of the Ordinance. The City's ability to apply the Ordinance may also be preempted in instances where the Ordinance impacts health,retirement,or pension program which fall within the jurisdiction of the Employee Retirement Income Security Act (ERISA), and may under certain circumstances be held invalid under Federal preemption. 6) How is the Ordinance enforced by the City? • City contracts that are covered by the Ordinance shall notify potential bidders/proposers of the Ordinance and its requirements in the issued bid documents. • at the time of entering into the contract with the City, the proposed City contractor shall certify to the City that it intends to provide Equal Benefits, along with the description of its employee benefits plan, which needs to be delivered to the Procurement Director prior to entering into the contract. • the City has the ongoing right to investigate/audit contracts for compliance with the provisions of the Ordinance. • the contractor is required to post notice to its employees at its place of business that it provides Equal Benefits. 7) Is there another way for a Contractor who does not provide Equal Benefits to comply with-the Ordinance? If a contractor covered by the Ordinance has made a reasonable yet unsuccessful effort to provide Equal Benefits, it can still comply with the Ordinance by providing an employee with the"Cash Equivalent"of the similar benefit(s)offered to the contractors employees and their spouses. 8) what are the penalties for non compliance? Failure of a contractor to comply with the requirements of the Ordinance may result in the following: ®breach/default under the contract. *termination of the contract. *monies due under the contract may be retained by the City until compliance is achieved. *debarment of contractors from City work,as prescribed by the City Code. ADMINISTRATIVE SURVEY AMONG CURRENT CITY VENDORS AND INITIAL FISCAL IMPACT ANALYSIS In addition to research and preparation of the proposed Ordinance,the City's Procurement Division prepared a written survey/questionnaire which was sent to vendors currently doing business with the City of Miami Beach. The purpose of the survey/questionnaire was to determine both the viability of the proposed Ordinance, particularly in terms of gauging potential fiscal impact, as well as impact upon the City's competitive bidding process and current available bidder"pools." More than 2,800 surveys were issued to City vendors to determine among them the number of contractors who currently offer equal benefits to all their employees including employees in a domestic partnership; and the number of contractors who currently do not offer equal benefits to all their employees but would comply if required as a condition of doing business with the City. Of the 2,800 surveys issued, 604 responses were received (representing 22%of the surveys issued).The specific questions asked and the responses thereto are listed below: a. Does your company provide or offer equal benefits to all employees including individuals in a domestic partnership? Yes—64.7% No—33.3% N/A or No Answer— 2% b. If the City was to require your company (as a condition of contract award), to provide/offer equal benefits to all your employees, including employees in a domestic partnership, would you continue to do business with the City? Yes-76.3% No-19.2% N/A or No Answer—4.5% RECOMMENDATION The Administration recommends that the Mayor and City Commission approve and adopt the attached Ordinance on second reading, public hearing; and approve the Contract Compliance Specialist position subject to the City's classification review process, in order to enforce the requirements set forth in the proposed Ordinance and the City's Living Wage Ordinance and any other ordinance the City Commission may adopt that requires the Administration to enforce. T:IAGENDA1 20051 Octl905 1Regular\RequirementsOrdinance 2nd reading Memo.doc r Contracts Compliance Specialist NATURE OF WORK Employees in this class are responsible for inspecting and monitoring vendors, firms, individuals, contractors and sub-contractors for compliance with requirements pertaining to the Living Wage Ordinance, Equal.Benefits Requirements for Contractors Ordinance, and any other ordinance adopted by the Mayor and City Commission that requires enforcement by the Procurement Division. Considerable field work is required to ensure contract compliance, through interviews and examination of documentation. Supervision is received from the Procurement Director who reviews work for compliance with established policies and procedures. ILLUSTRATIVE EXAMPLES OF ESSENTIAL DUTIES Performs field work to verify that vendors, contractors and sub-contractors are compliant with established living wage rates and equal benefits requirements. Provides City departments with general support and technical assistance, as required. Plans and schedules reviews of contractor payrolls and other applicable records required to determine compliance with appropriate ordinances. Conducts job-site interviews with contractor management staff and employees, as needed, concerning wage, benefit and job classification issues. Investigates complaints related to enforcement of applicable ordinances and prepares for administrative hearings. Determines any underpayments on the part of contractors or sub-contractors; reviews findings with Procurement Director. Prepares program evaluation reports. Exercises considerable independent judgment in ensuring vendor/contractor compliance with applicable ordinances Performs related work as required. KNOWLEDGE, SKILLS AND ABILITIES Considerable knowledge and understanding of ordinances and procedures pertaining to wages and benefits. Working knowledge of contracts, all applicable clauses, contract compliance and enforcement. Considerable knowledge of techniques in monitoring contracts for compliance. Knowledge of interviewing practices and techniques. Knowledge of regulations and rules governing payroll reporting procedures. Knowledge of public relations principles and techniques. Knowledge of job classifications in the construction and services industries. Ability to obtain, collect and organize pertinent information required to review contracts compliance issues. Ability to analyze detailed payroll and bookkeeping records. Ability to develop interview questionnaires and conduct interviews. Ability to deal effectively with departmental staff members, private contractors and their employees. Ability to communicate clearly and concisely, verbally and in writing. Ability to plan and schedule work to meet scheduled reviews of contractor' payroll records. MINIMUM REQUIREMENTS Graduation from an accredited college or university with a Bachelor's degree in Public or Business Administration, or a related field. Three (3) years experience which demonstrates competencies in required knowledge, skills and abilities needed for this position. Experience may substitute for education on a year-for-year basis. DESIRES: Positive attitude and ability to maintain composure. Excellent written and oral communication skills. Knowledge of Windows, Office Suite (i.e., Word, Excel, Access, PowerPoint) and automated purchasing system. PHYSICAL REQUIREMENTS Must have the use of sensory skills in order to effectively communicate and interact with other employees and the public through the use of the telephone and personal contact. Physical capability to effectively use and operate various items of office related equipment, such as, but not limited to, word processor, calculator, copier, and fax machine. No significant standing, walking moving, climbing, carrying, bending, kneeling, crawling, reaching, and handling, sitting, standing, pushing, and pulling. SUPERVISION RECEIVED General and specific assignments are received and work is performed with moderate latitude for the use of independent judgment in the selection of work methods and procedures and is subject to review for compliance with departmental standards and objectives. SUPERVISION EXERCISED May supervise the work of Procurement clerical staff F:\PURC\$ALL\GUS\Contracts Compliance Officer.doc e � _ CITY OF MIAMI BEACH ° 0 N NOTICE OF PUBLIC HEARING N C W NOTICE IS HEREBY given that public hearings will be held by the Mayor and City Commission of the City of Miami Beach, Florida, In the Commission Chambers, 3rd floor, City Hall, 1700 Convention Center Drive, Miami Beach, Florida,on Wednesday,October 19,2005,to consider the following: a 10:15 a.m. An Ordinance Amending Miami Beach City Code Chapter 2,Article VI, Division 3, By Creating.Section 2-373 .Thereof, Entitled "Requirement For City _ Contractors To Provide Equal Benefits For Domestic Partners," By Mandating o That City Contractors Provide Equal Benefits For Domestic Partners. Inquiries may be directed to the Procurement Division at(305)673-7490: 10:20 a.m. A Resolution'Setting A First Public Hearing To Consider Extending The o Approval Of The Miami Beach Convention Center As A Venue For Conventions, Expositions Or Events Involving Adult Materials, Pursuant To The Provisions Of Section 847.0134, Florida Statutes;.and Referring The Matter.To The Land.Use 3 And Development Committee. 3 Inquiries may be directed to the Planning Department at(305)673-7550. 10:30 a.m. An Ordinance Amending The Land Development Regulations Of The Code Of. The City Of Miami Beach, By Amending Chapter 118, "Administration And Review Procedures,"Article X, "Historic Preservation," Division 1', "Generally," By Amending Section 118-503 To Modify The Requirements For An After-The- Fact Certificate Of Appropriateness; By Amending Chapter 118, "Administration And Review Procedures," Article X, "Historic Preservation," Division 3, "Issuance Of Certificate Of Appropriateness/Certificate To Dig/ Certificate Of Appropriateness For Demolition," By Amending Section 118-562 To Add A Requirement For An Independent Structural Evaluation For Demolition Requests. Inquiries may be directed.to the Planning Department at(305)673-7550. 10:35 a.m.' An Ordinance Amending The Land Development Regulations Of The Code Of The City Of Miami Beach, By Amending Chapter 138, "Signs," By Amending Article I, "In General," By Amending Section 138-11 To Clarify The Requirements And Procedures For The Removal Of Signs; Providing For Inclusion In The City Code. Inquiries may be directed to the Planning Department at(305)673-7550. INTERESTED PARTIES are invited to appear at this meeting,or be represented by an agent, or,to express their views in writing addressed to the City Commission, c/o the City Clerk, 1700 Conventio Center Drive, 1st Floor,City Hall, Miami Beach, Florida 33139.Copies of the*ordinances are available for public Inspection during normal business hours in the City Clerk's Office, 1700 Convention Center Drive, 1 st Floor, City Hall,and Miami Beach,Florida 33139. This meeting may be continued and under such circumstances additional legal notice would not be provided. Robert E.Parcher,City Clerk City of Miami Beach Pursuant to Section 286.0105, Fla..Stat., the City hereby advises the public that: if a person decides to appeal any decision made by the City Commission with respect to any matter considered at Its meeting or Its hearing,such person must ensure that a verbatim record of the proceedings is made,which.record includes the testimony and `. evidence upon which the appeal is to be based. This notice does not constitute consent by the City for the Introduction or admission of otherwise Inadmissible or Irrelevant evidence, nor does It authorizechallenges or appeals not otherwise allowed by law. iTo request this material in accessible format,sign language Interoreters,Information on access for persons with disabilities, and/or any accommodation to review any documert or participate In anv city-sponsored proceeding_. please contact(305)604- i 2489 (voice), (305)573-7218n-m fi+.e devs in-advance to initiate your req�les!. TTY f users may also ca;;'"1 (Florida Relay Service). Ad#331 u�w�a..asr�:....s.rws�a. .w.ta•.�..ri 7✓ � .8 i [ :X. r ; qty h 1 �. k ( q f 1 3 Y ./.:!,.-. Fn 1 City of Miami Beach, Florida 1700 Convention Center Drive—3rd Floor -- - - Miami Beach, FL 33179 This letter is to explain our understanding of the arrangements for the services we are to perform for the City of Miami Beach, Florida (thereafter the"City")as of and for the fiscal years as outlined in this agreement. Audit Services We will perform an audit of the City's basic financial statements as of and for the fiscal years as outlined in this agreement. We understand that the financial statements will be prepared in accordance with accounting principles generally accepted in the United States of America. The objective of an audit of financial statements is to express an opinion on those statements. We are responsible for forming and expressing an opinion about whether the financial statements that have been prepared by management with the oversight of the City Commissioners are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. We will also perform the audit of the City, so as to satisfy the audit requirements imposed by the Single Audit Act and the U.S. Office of Management and Budget(OMB) Circular No. A-133 and the Florida Single Audit Act, should they become necessary during the contract period. We will conduct the audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States and the provisions of the Single Audit Act, OMB Circular A-133 and OMB's Compliance Supplement. Those standards, circulars, supplements or guides require that we plan and perform the audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement whether caused by error or fraud. Accordingly, a material misstatement may remain undetected. Also, an audit is not designed to detect errors or frauds that are immaterial to the financial statements. The determination of abuse is subjective; therefore, Government Auditing Standards do not expect us to provide reasonable assurance of detecting abuse. An audit of financial statements includes obtaining an understanding of the City and its environment, including its internal control, sufficient to assess the risks of material misstatement of the financial statements, and to design the nature, timing, and extent of further audit procedures. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. However,we will communicate to management and the board of directors any significant deficiencies or material weaknesses that we become aware of during the course of the audit. We will also communicate to the board (a) any fraud involving senior management and fraud (whether caused by senior management or other employees)that causes a material misstatement of the financial statements, (b) any illegal acts, violations of provisions of contracts or grant agreements, and abuse that come to our attention (unless they are clearly inconsequential), (c) should any arise, any disagreements with management and other serious difficulties encountered in performing the audit, and (d)various matters related to the City's accounting policies and financial statements. City of Miami Beach Page 2 In addition to our report on the City's financial statements, we will also issue the following reports or types of reports: • Report on internal control related to the financial statements and major programs. These reports will describe the scope of testing of internal control and the results of our tests of internal controls. • Report on compliance with laws, regulations, and the provision of contracts or grant agreements. We will report on any noncompliance which could have a material effect on the financial statements. • A report on the fairness of the presentation of the City's Schedule of Expenditures of Federal Awards and State Financial, if applicable during the contract period. • A schedule of findings and questioned costs. • A Management Letter in Accordance with the Rules of the Auditor General of the State of Florida. • A report on the financial condition of the City, in accordance with the rules of the Auditor General. Our report on internal control will include any significant deficiencies and material weaknesses in controls of which we become aware as a result of obtaining an understanding of internal control and performing tests of internal control consistent with requirements of the standards and circulars identified above. Our report on compliance will address material errors, fraud, abuse, violations of compliance requirements, and other responsibilities imposed by state and federal statutes and regulations and assumed by contracts; and any state or federal requirements we become aware, consistent with requirements of the standards identified above. The City's Responsibilities Management is responsible for the financial statements, including the selection and application of accounting policies, adjusting the financial statements to correct material misstatements, and for making all financial records and related information available to us. Management is responsible for the preparation of the schedule of federal awards and state financial assistance. Management is responsible for providing us with a written management representation letter confirming certain representations made during the course of our audit of the financial statements and affirming to us that it believes the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole and to the opinion units of the financial statements. Management is responsible for establishing and maintaining effective internal control over financial reporting and internal control over compliance, including monitoring ongoing activities, and for informing us of all significant deficiencies and material weaknesses in the design or operation of such controls of which it has knowledge. Management is responsible for identifying and ensuring that the City complies with the laws and pp regulations applicable to its activities, and for informing us about all known material violations of such laws or regulations. In addition, management is responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the City involving management, employees who have significant roles in internal control, and others where the fraud could have a material effect on the financial statements. Management is also responsible for informing us of its knowledge of any allegations of fraud or suspected fraud affecting the City received in communications from employees, former employees, analysts, regulators, or others. Management is also responsible for (a) making us aware of significant vendor relationships where the vendor is responsible for program compliance, (b)following up and taking corrective action on audit City of Miami Beach Page 3 findings, including the preparation of a summary schedule of prior audit findings, and a corrective action plan, and (c) report distribution including submitting the reporting package. Management is responsible for the preparation of the required supplementary information (RSI), including management's discussion and analysis (MD&A), and supplementary information, known as(SI) in accordance with accounting principles generally accepted in the United States of America. Management agrees to include the auditor's report on RSI and SI in any document that contains the RSI or SI and that indicates that the auditor has reported on such RSI or SI. Management also agrees to present the SI with the audited financial statements or, if it will not be presented with audited financial statements, to make the audited financial statements readily available to the intended users of the SI no later than the date of issuance of the SI and the auditor's report thereon. The board is responsible for informing us of its views about the risks of fraud within the City, and its knowledge of any fraud or suspected fraud affecting the City. The City agrees that it will not associate us with any public or private securities offering without first obtaining our consent. Therefore, the City agrees to contact us before it includes our reports or otherwise makes reference to us, in any public or private securities offering. We may conclude that we are not otherwise associated with the proposed offering and that our association with the proposed offering is not necessary, providing the City agrees to clearly indicate that we are not associated with the contents of the official statement or memorandum. The City agrees that the following disclosure will be prominently displayed in the official statement or memorandum: McGladrey LLP, our independent auditor, has not been engaged to perform, and has not performed, since the date of its report included herein, any procedures on the financial statements addressed in that report. McGladrey LLP also has not performed any procedures relating to this official statement or memorandum. Our association with an official statement or memorandum is a matter for which separate arrangements will be necessary. The City agrees to provide us with printer's proofs or masters of such offering documents for our review and approval before printing, and with a copy of the final reproduced material for our approval before it is distributed. In the event our auditor/client relationship has been terminated when the City seeks such consent, we will be under no obligation to grant such consent or approval. Because McGladrey LLP will rely on the City and its management and board to discharge the forgoing responsibilities, the City holds harmless and releases McGladrey LLP, its partners, and employees from all claims, liabilities, losses, and costs arising in circumstances where there has been a knowing misrepresentation by a member of the City's management that has caused, in any respect, McGladrey LLP's breach of contract or negligence. This provision shall survive the termination of this arrangement for services. The City's Records and Assistance If circumstances arise relating to the condition of your records, the availability of appropriate audit evidence, or indications of a significant risk of material misstatement of the financial statements because of error; fraudulent financial reporting, or misappropriation of assets which in our professional judgment prevent us from completing the audit or forming an opinion, we retain the unilateral right to take any course of action permitted by professional standards, including declining to express an opinion or issue a report, or withdrawal from the engagement. During the course of our engagement, we may accumulate records containing data that should be reflected in the City's books and records. The City will determine that all such data, if necessary, will be City of Miami Beach Page 4 so reflected. Accordingly, the City will not expect us to maintain copies of such records in our possession. The assistance to be supplied by the City's personnel, including the preparation of schedules and analyses of accounts, will be discussed and coordinated with management prior to the start of our fieldwork. The timely and accurate completion of this work is an essential condition to our completion of the audit and issuance of our audit report. From time to time and depending upon the circumstances, we may use third-party service providers to assist us in providing professional services to you. In such circumstances, it may be necessary for us to disclose confidential client information to them. We enter into confidentiality agreements with all third- party service providers and we are satisfied that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In addition, we may utilize financial information you have provided to us in connection with this engagement for purposes of creating benchmarking data to be used by McGladrey LLP professionals and other clients. This benchmarking data is aggregated with data from a minimum of five other entities so that users of the data are unable to associate the data with any single entity in the database. Our professional standards require that we perform certain additional procedures, on current and previous years' engagements, whenever a partner or professional employee leaves the firm and is subsequently employed by or associated with a client. Accordingly, the City agrees it will compensate McGladrey LLP for any additional costs incurred as a result of the City's employment of a partner or professional employee of McGladrey LLP. e are In the event w requested or authorized by the City or are required by government regulation, q subpoena, or other legal process to produce our documents or our pers onnel as witnesses with respect to our engagements for the City, the City will, so long as we are not a party to the proceeding in which the information is sought, reimburse us for our professional time and expenses, as well as the fees and expenses of our counsel, incurred in responding to such requests. The documentation for this engagement is the property of McGladrey LLP. However, you acknowledge and grant your assent that representatives of the cognizant or oversight agency or their designee, other government audit staffs, and the U.S. Government Accountability Office shall have access to the audit documentation upon their request; and that we shall maintain the audit documentation for a period of least three years after the date of the report, or for a longer period if we are requested to do so by the cognizant or oversight agency. Access to requested documentation will be provided under the supervision of McGladrey LLP audit personnel and at a location designated by our Firm. You have informed us that you intend to prepare a comprehensive annual financial report(CAFR)and submit it for evaluation by the Government Finance Officers Associations (GFOA) Certificate of Achievement for Excellence in Financial Reporting Program. We will also read the material included in the Introductory and Statistical Sections. You have also requested we assist you with the printing a binding of the financial statements. The two overarching principles of the independence standards of the Government Auditing Standards issued by the Comptroller General of the United States provide that management is responsible for the substantive outcomes of the works, and therefore, has a responsibility and is able to make any informed judgment on the results of the services described above. Accordingly, the City agrees that Patricia Walker or her designee will perform the following: • Be accountable and responsible for overseeing preparation of the financial statements. City of Miami Beach Page 5 • Establish and monitor the performance of the preparation of the financial statements to ensure that they meet management's objectives. • Make any decisions that involve management functions related to the preparation of the financial statements and accept full responsibility for such decisions. • Will evaluate the adequacy of services performed and any findings that result. In accordance with Government Auditing Standards, a copy of our most recent peer review report is attached to this letter, for your information. City of Miami Beach Page 6 910 F..,St.Loum Street,SUItfi 7W P.O.Box 1190 Spri^.tg.ie!d,Mil 6`_��151?,1190 BKOLL. CPAS�e AdY1SOrS 41 7.8()5.8701 Fax 417,Fi65�0hN2 rrivw.bkd.mm System Review Report To the Partners of McGladrey&Pullen,LLP and the National Peer Review Committee of the American Institute of Certified Public Accountants Peer Review Board We have reviewed the system of quality control for the accounting and auditing practice of McGladrey& Pullen,LI.P(the firm)applicable to non-SEC issuers in.effect for the year ended April 30,2010. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. The firm is responsible for.designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting inconformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review, The nature,objectives, scope,limitations of and the procedures performed in a System Review are described in the standards at www aicpa orJprsummary. As required by the standards,engagements selected for review included engagements performed under Government Auditing Standards,audits of employee benefit plans and audits performed under FDICIA. In our opinion,the system of quality control for the.accounting and auditing practice of McGladrey& Pullen,LLP applicable to non-SEC issures in effect for the year ended April 30,2010,has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass,pass with deficiency0es)or fail. M.cGladrey&Pullen,LLP has received a peer review rating of pass. 1 December 2,2010 raxi k..` aE:�lxzr?•' ,MPH AL experience �roe�r d ["lti tdr