2013-28414 Reso RESOLUTION NO.' 2013-28414
A-RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE CITY MANAGER'S REVISED
RECOMMENDATION TO REJECT ALL PROPOSALS RECEIVED PURSUANT
TO REQUEST FOR PROPOSALS (RFP) NO. 064-2013, FOR AUDIT
SERVICES OF CAPITAL IMPROVEMENT PROJECTS.
WHEREAS, on February 22, 2013, the-City issued Request for Proposals No. 064-2013,
for Audit Services of Capital Improvement Projects (the RFP), with an opening date of April 4,
2013; and
WHEREAS, the Evaluation Committee appointed by the City Manager convened on
June 12, 2013, to consider proposals received pursuant to the evaluation criteria established in
the RFP; and
WHEREAS, after deliberations and,discussion the Evaluation Committee recommended
that the Administration enter into negotiations with Marcum, LLP, and should negotiations not be
successful with this firm, authorizing negotiations with Resolution Management Consultants,
and should negotiations not be successful with this firm, authorizing negotiations with Crowe
Horwath LLP; and
WHEREAS, since that time, after carefully reviewing the RFP requirements and the
results of the Committee evaluation process, the City Manager, in his due diligence, conducted
additional review of each top-ranked firm and RFP process and finds that it is in the best interest
of the City Commission to reject all proposals received pursuant to the RFP, and to explore
alternative courses of action for soliciting firms and proposals to perform these audits, including
but not limited to revising the specifications, conducting an industry review meeting of proposed
specifications, combining audit service requirements into a multi-discipline solicitation, or
utilizing previously awarded cooperative agreements executed by the State of Florida; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the City Manager's revised recommendation to reject all proposals
received pursuant to Request for Proposals (RFP) No. 064-2013, for Audit Services for Capital
Improvement Projects.
PASSED AND ADOPTED this day of 2013.
ATTEST:
Rafa6l Gran °i•y -le i e, Mayor
APPROVED AS TO
: r"�J''a 0c -
���• "' �F
I �ATD= �� FORM&LANGUAGE
&FOR EXECUTION
y C, me Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida,Accepting The
Revised Recommendation Of The City Manager Pertaining To The Ranking Of Proposals, Pursuant To
Request For Proposals RFP No. 064-2013, For Audit Services Of Capital Improvement Projects.
Key Intended Outcome Supported:
Improve the City's overall financial health and maintain overall bond rating.
Supporting Data (Surveys, Environmental Scan, etc: N/A
Item Summa /Recommendation:
The Administration has proposed an audit that will focus on the City's processes for capital projects
which should cover the review of the process the departments utilize to take a capital project from the
beginning to final completion. In addition, the audit should include a review of capital improvement
projects under the administration of the divisions within the Public Works Department. Internal controls
over these processes should be reviewed for adequacy and effectiveness. The audit(s) will cover a
three year period from October 1, 2009 through September 30, 2012. In order to seek proposals from
qualified firms,on January 16,2013,the Mayor and City Commission approved the issuance of Request
for Proposals (RFP) No. 064-2013 for Audit Services of Capital Improvement Projects (RFP).
On April 4,2013, proposals were received from four firms.The Evaluation Committee(the"Committee")
appointed by the City Manager convened on June 12,2013,to consider proposals received pursuant to
the evaluation criteria established in the RFP.The Committee discussed the proposers'qualifications,
experience, and competence, and further scored and ranked the proposers accordingly. The
Committee recommended that the Administration:enter into negotiations with Marcum,LLP;and should
negotiations not be successful with this firm, authorizing negotiations with Resolution Management
Consultants; and should negotiations not be successful with this firm, authorizing negotiations with,
Crowe Horwath, LLP.
After carefully reviewing the RFP requirements and the results of the Committee evaluation process,the
City Manager, in his due diligence, conducted additional review of each top-ranked firms and the RFP
process. The manager finds that it is in the best interest of the City to reject all proposals received and
to explore alternative courses of action for soliciting firms and proposals to perform these audits,
including but not limited to: revising the specifications, conducting an industry review meeting of
proposed specifications, combining audit service requirements into a multi-discipline solicitation, or
utilizing previously awarded cooperative agreements executed by the State of Florida.
The Administration recommends that the Mayor and City Commission of the City of Miami Beach,
Florida accept the recommendation of the City Manager pursuant to request for proposals (RFP) No.
064-2013 for Audit Services of Capital Improvement Projects.
ADOPT THE RESOLUTION
Advisory Board Recommendation:
Financial Information:
Source of Amount. Account
Funds: 1
2
OBPI Total
Financial impact Summary:
City Clerk's Office Legislative Tracking:
Alex Denis, Extension 6641
Sign-Offs:
D rtment Director Assist qt City Manager City M n er.
AD JS KGB JW JLM
Ile 71-117— 1 If
T:\AGEND 013Decembe 11\ P 064-2013 Audit Servic es of Capital Improvement Projects-Summary.doc
AGENDA ITEM G B
AA I AM I 1B*A E DATE
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,
www.miamibeachfl.gov
COMMIS ION MEMORANDUM
TO: Mayor Philip Levine and Members o[h,e
1he City Co mission
FROM: Jimmy L. Morales, City Manager
DATE: December 11, 2013
SUBJECT:A RESOLUTION OF THE MAYOR D CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCE NG THE REVISED RECOMMENDATION
OF THE CITY MANAGER PURSUANT TO REQUEST FOR PROPOSALS (RFP)
NO. 064-20139 FOR AUDIT SERVICES OF CAPITAL IMPROVEMENT
PROJECTS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOME SUPPORTED
Improve the City's overall financial health and maintain overall bond rating.
FUNDING
NA
BACKGROUND
The City has a Capital Improvement Plan which specifies financing and construction and/or
acquisition for projects and priorities that require significant capital investment for a five-year
period. This plan is updated annually and adopted by the City Commission. A capital project
is defined as capital expenditures of $25,000 or more, resulting in the acquisition,
improvement, or addition to fixed assets in the form of land, buildings, or improvements more
or less permanent in character, and durable equipment with a life expectancy of at least five
years.
The City handles a significant amount of capital improvement projects. The majority are
administered under the City's Capital Improvement Projects (CIP) Office. However, other
departments such as the Public Works Department (including the Property Management
Division), the Parks and Recreation Department, and the Convention Center also administer
capital improvement projects within the City.
The City established the CIP Office in 2001 to serve as a focal point for the planning and
construction management activities associated with the extensive capital projects work being
funded by the authorized General Obligation, Water and Sewer, and Storm Water Bonds
funding at the time. The total value of the City's capital improvement program has grown from
approximately $400 million to over $1.2 billion, including about 300 completed projects. The
CIP Office is presently managing over 170 active projects through their project life cycle.
Although the CIP Office has been supported in the past by Program Manager firms (H&S and
URS), those services were gradually reduced and eventually phased out during Fiscal Year
2008/09. With active projects valued at approximately $700M, the CIP Office will face its
biggest challenge, to advance the majority of these projects, including the recently acquired
Capital Renewal and Replacement projects, to completion within the next five years.
Commission Memorandum—RFP#064-2013 Audit Services of Capital Improvement Projects
December 11, 2013
Page 2
CIP staff is comprised of departmental administration, project managers with different levels of
experience and responsibility, financial managers, field inspectors, community information
coordinators and administrative personnel. Other City Departments also provide management
of some specialized projects. For example, the Public Works Department provides
construction management for environmental projects and some utility projects, while the Parks
and Recreation Department provides management of some landscaping projects.
The Administration has proposed engaging an outside firm to conduct an operational audit of
the CIP Office with regard to the process from project inception to completion. In addition, it
should include a review of capital improvement projects under the administration of the
divisions within the Public Works Department. Internal controls over these processes should
be reviewed for adequacy and effectiveness. The audit(s) are to cover a three year period
from October 1, 2009 through September 30, 2012.
In order to seek proposals from qualified firms, on January 16, 2013, the Mayor and City
Commission approved the issuance of Request for Proposals (RFP) No. 064-2013 for Audit
Services of Capital Improvement Projects (RFP).
RFP PROCESS
The RFP was issued on February 22, 2013, with an opening date of April 4, 2013. A pre-
proposal conference to provide information to the proposers submitting a response was held
on March 6, 2013. The RFP resulted in proposals from the following four firms:
1. Crowe Horwath LLP
2. Marcum LLP
3. Resolution Management Consultants, Inc.
4. RW Block Consulting, Inc.
The Evaluation Committee (the "Committee") appointed by the City Manager convened on
June 12, 2013, to consider proposals received pursuant to the evaluation criteria established
in the RFP. The Committee discussed the proposers' qualifications, experience, and
competence, and further scored and ranked the proposers accordingly. The Committee's
preliminary rankings are as follows:
PRELIMINARY
COMMITTEE Low
RANKINGS Peter Reyna Christi Maria Allison James Aggregate
Savineau Tama yo Cvi'anovic Cerna Williams Sutter Totals
Resolution
Management
Consultants, Inc. 88 2 87 4 101 (1) 900 78.9 (3) 91 1 12 1
Marcum LLP 96 (1) 93 (2) 87 4 90 (l) 83.5 (l) 5I J3 12 1
Crowe Horwath
LLP 83 (3) 89 (3 90 (3) 86 (4) 79.5 (2) 83 (2) 17 (2)
R W Block
Consulting, Inc. 69 (4) 97 (l) 95 (2) 89 3 74.7 (4) 79 4 18 (3)
After the all the scores were tallied, Resolution Management Consultants Inc., and Marcum
LLP, tied with twelve (12) low aggregate totals. In order to break the tie, the Committee
deliberated on the scores received and the qualifications of each firm. Following Committee
deliberations, a motion was presented by the Committee Chair, James Sutter, and seconded
Commission Memorandum—RFP#064-2013 Audit Services of Capital Improvement Projects
December 11, 2013
Page 3
by Maria Cerna, that the committee recommend that the Administration enter into negotiations
with Resolution Management Consultants Inc.; and should negotiations not be successful with
the top-ranked proposer, authorizing negotiations with the second-ranked proposer, Marcum
LLP; and should the Administration not be successful in negotiating an agreement with the
second-ranked proposer, authorizing negotiations with the third-ranked proposer, Crowe
Horvath LLP. The motion presented by Mr. Sutter failed.
Following the failure of the first motion, the Committee discussed that: the proposed price
submitted by Resolution Management Consultants Inc., was subject to assumptions and
limitations which could result in the final proposed price to increase substantially; that
Resolution Management Consultants, is not registered to do business in the State of Florida,
meaning they might not know the laws of the state; and that Resolution Management
Consultants was proposing a subcontractor and the committee was not comfortable with this
arrangement as there was no indication in their proposal that they are previously work together
to provide similar services as both firms were located in different states.
A second motion was made by Committee member Peter Savineau, and seconded by Allison
Williams, that the Administration: enter into negotiations with Marcum, LLP; and should
negotiations not be successful with this firm, authorizing negotiations with Resolution
Management Consultants; and should negotiations not be successful with this firm,
authorizing negotiations with, Crowe Horwath, LLP. The motion presented by Mr. Savineau
passed, with four (4) committee members in favor and two (2) against.
Following the successful motion presented by Mr. Savineau, Committee Member Christi
Cvijanovic presented a third motion, which was seconded by Maria Cerna, that the Committee
rescind the previous successful second motion and recommend that: that the Administration
enter into negotiations with Resolution Management Consultants Inc.; and should negotiations
not be successful, authorizing negotiations with, Marcum LLP; and should the Administration
not be successful in negotiating an agreement, authorizing negotiations with Crowe Horvath
LLP. The motion presented by Ms. Cvijanovic failed.
MANAGER'S DUE DILIGENCE
After carefully reviewing the RFP requirements and the results of the Committee evaluation
process, the City Manager, in his due diligence, conducted additional review of each top-
ranked firms and the RFP process. The manager finds that it is in the best interest of the City
to reject all proposals received and to explore alternative courses of action for soliciting firms
and proposals to perform these audits, including but not limited to: revising the specifications,
conducting an industry review meeting of proposed specifications, combining audit service
requirements into a multi-discipline solicitation, or utilizing previously awarded cooperative
agreements executed by the State of Florida.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida accept the recommendation of the City Manager pursuant to request for
proposals (RFP) No. 064-2013 for Audit Services of Capital Improvement Projects.
JLM/ /AD/LR
T:\AGEN A\2013\December 11\RFP 064-2013 Audit Services of Capital Improvement Projects- Memo Final.doc