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PSA with Crowe Horwath LLP aois--02'oa 5 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND CROWE HORWATH LLP FOR INTERNAL AUDIT SERVICES RFQ NO. 2015-043-WG This Professional Services Agreement ("Agreement") is entered into this 12— day of PCc r,nn tj c I , 2015 ("Effective Date"), between the CITY OF MIAMI BEACH, FLORIDA, a municipal corporation organized and existing under the laws of the State of Florida, having its principal offices at 1700 Convention Center Drive, Miami Beach, Florida, 33139 ("City"), and CROWE HORWATH LLP, a State of Illinois, limited liability company, whose address is 225 W. Wacker Drive, Suite 2600, Chicago, Illinois 60606 ("Consultant"). SECTION 1 DEFINITIONS Agreement: This Agreement between the City and Consultant, including any exhibits and amendments thereto. City Manager The chief administrative officer of the City. City Manager's Designee: The City Manager's designee shall be James Sutter, Internal Auditor. Consultant: For the purposes of this Agreement, Consultant shall be deemed to be an independent contractor, and not an agent or employee of the City. Services: All services, work and actions by the Consultant performed or undertaken pursuant to the Agreement. Fee: Amount paid to the Consultant as compensation for Services. Proposal Documents: Proposal Documents shall mean the City of Miami Beach Request for Qualifications (RFQ) No. 2015-043-WG for audit services for resort taxes and other internal audits, together with all amendments thereto, issued by the City in contemplation of this Agreement (the RFQ), and the Consultant's proposal in response thereto ("Proposal"), all of which are hereby incorporated and made a part hereof; provided, however, that in the event of an express conflict between the Proposal Documents and this Agreement, the following order of precedent shall prevail: this Agreement; the RFQ; and the Proposal. Risk Manager: The Risk Manager of the City, with offices at 1700 Convention Center Drive, Third Floor, Miami Beach, Florida 33139: telephone number (305) 673-7000, Ext. 6435: and fax number (305) 673-7023. 1 SECTION 2 SCOPE OF SERVICES (SERVICES) Consultant shall provide the City with internal audit services contingent to the type of audit requested. Types of audits which may be requested will comprise of Financial Audits, Attestation Engagements (includes examination, review or agreed upon procedures), Forensic Audits and Performance Audits, as further detailed in Exhibit "A". SECTION 3 TERM The term of this Agreement (Term) shall before an initial period of two (2) years, commencing upon the Effective Date. The City, through its City Manager and at its sole discretion, will have the option to extend the Agreement for three (3) additional one-year periods. Notwithstanding the Term provided herein, Consultant shall adhere to any specific timelines, schedules, dates, and/or performance milestones for completion and delivery of the Services, as set forth on each individual project requirement, as requested. SECTION 4 FEE 4.1 FEES In consideration of the Fee to be paid to Consultant by the City, Consultant shall provide the work and services as set forth in Section 2 and described in Exhibit "A" (the "Services"), in accordance with the "not to exceed" hourly rates described in "Exhibit B (the "Fees"). 4.2 TRAVEL No travel expenses will be allowable for the routine provision of internal audits. In the event that the City assigns a project to a Consultant that requires travel, all travel in connection with this Agreement must be pre-approved in writing by the City Manager's designee, prior to incurring said travel expenses. All travel expenses will be reimbursed in accordance with the requirements of Section 112.061, Florida Statutes. SECTION 5 TERMINATION 5.1 TERMINATION FOR CAUSE If the Consultant shall fail to fulfill in a timely manner, or otherwise violates, any of the covenants, agreements, or stipulations material to this Agreement, the City, through its City Manager, shall thereupon have the right to terminate this Agreement for cause. Prior to exercising its option to terminate for cause, the City shall notify the Consultant of its violation of the particular term(s) of this Agreement, and shall grant Consultant ten (10) days to cure such default. If such default remains uncured after ten (10) days, the City may terminate this 2 Agreement without further notice to Consultant, or make appropriate reductions in the payment. Upon termination, the City shall be fully discharged from any and all liabilities, duties, and terms arising out of, or by virtue of, this Agreement. Notwithstanding the above, the Consultant shall not be relieved of liability to the City for damages sustained by the City by any breach of the Agreement by the Consultant. The City, at its sole option and discretion, shall be entitled to bring any and all legal/equitable actions that it deems to be in its best interest in order to enforce the City's right and remedies against Consultant. The City shall be entitled to recover all costs of such actions, including reasonable attorneys' fees. 5.2 TERMINATION FOR CONVENIENCE OF THE CITY THE CITY MAY ALSO, THROUGH ITS CITY MANAGER, AND FOR ITS CONVENIENCE AND WITHOUT CAUSE, TERMINATE THE AGREEMENT AT ANY TIME DURING THE TERM BY GIVING WRITTEN NOTICE TO CONSULTANT OF SUCH TERMINATION; WHICH SHALL BECOME EFFECTIVE WITHIN THIRTY (30) DAYS FOLLOWING RECEIPT BY THE CONSULTANT OF SUCH NOTICE. IF THE AGREEMENT IS TERMINATED FOR CONVENIENCE BY THE CITY, CONSULTANT SHALL BE PAID FOR ANY SERVICES SATISFACTORILY PERFORMED UP TO THE DATE OF TERMINATION; FOLLOWING WHICH THE CITY SHALL BE DISCHARGED FROM ANY AND ALL LIABILITIES, DUTIES, AND TERMS ARISING OUT OF, OR BY VIRTUE OF, THIS AGREEMENT. 5.3 TERMINATION FOR INSOLVENCY The City also reserves the right to terminate the Agreement in the event the Consultant is placed either in voluntary or involuntary bankruptcy or makes an assignment for the benefit of creditors. In such event, the right and obligations for the parties shall be the same as provided for in Section 5.2. SECTION 6 INDEMNIFICATION AND INSURANCE REQUIREMENTS 6.1 INDEMNIFICATION Consultant agrees to indemnify and hold harmless the City of Miami Beach and its officers, employees, agents, and contractors, from and against any and all actions (whether at law or in equity), claims, liabilities, losses, and expenses, including, but not limited to, attorneys' fees and costs, for personal, economic or bodily injury, wrongful death, loss of or damage to property, which may arise or be alleged to have arisen from the negligent acts, errors, omissions or other wrongful conduct of the Consultant, its officers, employees, agents, contractors, or any other person or entity acting under Consultant's control or supervision, in connection with, related to, or as a result of the Consultant's performance of the Services pursuant to this Agreement. To that extent, the Consultant shall pay all such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses, and shall pay all costs and attorneys' fees expended by the City in the defense of such claims and losses, including appeals. The parties agree that one percent (1%) of the total compensation to Consultant for performance of the Services under this Agreement is the specific consideration from the City to 3 the Consultant for the Consultant's indemnity agreement. The provisions of this Section 6.1 and of this indemnification shall survive termination or expiration of this Agreement. 6.2 INSURANCE The Consultant shall maintain and carry in full force during the Term, the following insurance: A. Consultant General Liability, in an amount not less than $1,000,000, combined singled limit per occurrence for bodily injury and property damage. B. Consultant Professional Liability, in an amount not less than $1,000,000, with the deductible per claim, if any not to exceed 10% of the limit of liability. C. Worker's Compensation and Employer's Liability Insurance pursuant to Florida Statute 440. The insurance must be furnished by insurance companies authorized to do business in the State of Florida. All insurance policies must be issued by companies rated no less than "B+" as to management, and no less than "Class VI" as to strength, by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent, subject to the approval of the City's Risk Management Division. Consultant shall endeavor to provide not less than thirty (30) days prior written notice of termination, cancellation or reduction in coverage on the policy, unless comparable coverage is promptly secured. The insurance certificates for general liability shall include the City as an additional insured and shall contain a waiver of subrogation endorsement in favor of the City. Original certificates of insurance must be submitted to the City's Risk Manager for approval (prior to any work and/or Services commencing) and will be kept on file in the Office of the Risk Manager. The City shall have the right to obtain from the Consultant specimen copies of the insurance policies in the event that submitted certificates of insurance are inadequate to ascertain compliance with required coverage. The Consultant is also solely responsible for obtaining and submitting all insurance certificates for any sub-consultants. CERTIFICATE HOLDER MUST READ: CITY OF MIAMI BEACH 1700 CONVENTION CENTER DRIVE 3rd FLOOR MIAMI BEACH, FL 33139 Compliance with the foregoing requirements shall not relieve the Consultant of the liabilities and obligations under this Section or under any other portion of this Agreement. 4 SECTION 7 LITIGATION JURISDICTIONNENUE/JURY TRIAL WAIVER This Agreement shall be construed in accordance with the laws of the State of Florida. This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. By entering into this Agreement, Consultant and the City expressly waive any rights either party may have to a trial by jury of any civil litigation related to or arising out of this Agreement. SECTION 8 LIMITATION OF CITY'S LIABILITY The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action, for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of $10,000. Consultant hereby expresses its willingness to enter into this Agreement with Consultant's recovery from the City for any damage action for breach of contract to be limited to $10,000. Accordingly, and notwithstanding any other term or condition of this Agreement, Consultant hereby agrees that the City shall not be liable to the Consultant for damages in an amount in excess of $10,000 for any action or claim for breach of contract arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement. Nothing contained in this section or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability, as set forth in Section 768.28, Florida Statutes. SECTION 9 [INTENTIONALLY DELETED] SECTION 10 GENERAL PROVISIONS 10.1 [INTENTIONALLY DELETED] 10.2 [INTENTIONALLY DELETED] 10.3 ASSIGNMENT, TRANSFER OR SUBCONSULTING 10.3.1 Consultant shall not subcontract, assign, or transfer all or any portion of any work and/or service under this Agreement without the prior written consent of the City Manager, which consent, if given at all, shall be in the Manager's sole judgment and discretion. Neither this Agreement, nor any term or provision hereof, or right hereunder, shall be assignable unless as approved pursuant to this Section, and any attempt to make such assignment (unless approved) shall be void. 5 10.3.2 Subcontractors. The Consultant shall be liable for the Consultant's services, responsibilities and liabilities under this Agreement and the services, responsibilities and liabilities of sub-contractors, and any other person or entity acting under the direction or control of the Consultant. When the term "Consultant" is used in this Agreement, it shall be deemed to include any sub-contractors and any other person or entity acting under the direction or control of Consultant. All sun-contractors must be approved in writing by the City prior to their engagement by Consultant. 10.4 PUBLIC ENTITY CRIMES Prior to commencement of the Services, the Consultant shall file a State of Florida Form PUR 7068, Sworn Statement under Section 287.133(3)(a) Florida Statute on Public Entity Crimes with the City's Procurement Division. 10.5 EQUAL EMPLOYMENT OPPORTUNITY In connection with the performance of the Services, the Consultant shall not discriminate against any employee or applicant for employment because of race, color, national origin, religion, sex, intersexuality, gender identity, sexual orientation, disability, marital and familial status, or age. 10.6 CONFLICT OF INTEREST The Consultant herein agrees to adhere to and be governed by all applicable Miami-Dade County Conflict of Interest Ordinances and Ethics provisions, as set forth in the Miami-Dade County Code, and as may be amended from time to time; and by the City of Miami Beach Charter and Code (as some may be amended from time to time); both of which are incorporated by reference herein as if fully set forth herein. The Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirectly, which could conflict in any manner or degree with the performance of the Services. The Consultant further covenants that in the performance of this Agreement, no person having any such interest shall knowingly be employed by the Consultant. No member of or delegate to the Congress of the United States shall be admitted to any share or part of this Agreement or to any benefits arising there from. All parties (including Consultant's officers, employees or contractors) shall be independent of the City, as defined by generally accepted auditing standards and Government Auditing Standards. SECTION 11 NOTICES All notices and communications in writing required or permitted hereunder, shall be delivered personally to the representatives of the Consultant and the City listed below or may be mailed by U.S. Certified Mail, return receipt requested, postage prepaid, or by a nationally recognized overnight delivery service. 6 Until changed by notice in writing, all such notices and communications shall be addressed as follows: TO CONSULTANT: Crowe Horwath LLP Attn: John C. Weber, Partner 225 W. Wacker Drive, Suite 2600 Chicago, Illinois 60606 TO CITY: City of Miami Beach Office of Budget and Performance Improvement 1700 Convention Center Drive, 3rd Floor Miami Beach, Florida 33139 Attention: James Sutter, Internal Auditor and City of Miami Beach Procurement Department 1755 Meridian Avenue, 3rd Floor Miami Beach, Florida 33139 Attention: Alex Denis, Director Notice may also be provided to any other address designated by the party to receive notice if such alternate address is provided via U.S. certified mail, return receipt requested, hand delivered, or by overnight delivery. In the event an alternate notice address is properly provided, notice shall be sent to such alternate address in addition to any other address which notice would otherwise be sent, unless other delivery instruction as specifically provided for by the party entitled to notice. Notice shall be deemed given on the day on which personally served, or the day of receipt by either U.S. certified mail or overnight delivery. SECTION 12 MISCELLANEOUS PROVISIONS 12.1 CHANGES AND ADDITIONS This Agreement cannot be modified or amended without the express written consent of the parties. No modification, amendment, or alteration of the terms or conditions contained herein shall be effective unless contained in a written document executed with the same formality and of equal dignity herewith. 12.2 SEVERABILITY If any term or provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall not be affected and every other term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 12.3 ENTIRETY OF AGREEMENT The City and Consultant agree that this is the entire Agreement between the parties. This Agreement supersedes all prior negotiations, correspondence, conversations, agreements or 7 understandings applicable to the matters contained herein, and there are no commitments, agreements or understandings concerning the subject matter of this Agreement that are not contained in this document. Title and paragraph headings are for convenient reference and are not intended to confer any rights or obligations upon the parties to this Agreement. 12.4 CONSULTANT'S COMPLIANCE WITH FLORIDA PUBLIC RECORDS LAW Pursuant to Section 119.0701 of the Florida Statutes, if the Consultant meets the definition of "Contractor" as defined in Section 119.0701(1)(a), the Consultant shall: a) Keep and maintain public records that ordinarily and necessarily would be required by the public agency in order to perform the service; b) Provide the public with access to public records on the same terms and conditions that the public agency would provide the records and at a cost that does not exceed the cost provided in this chapter or as otherwise provided by law; c) Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law; and d) Meet all requirements for retaining public records and transfer to the City, at no City cost, all public records created, received, maintained and/or directly related to the performance of this Agreement that are in possession of the Consultant upon termination of this Agreement. Upon termination of this Agreement, the Consultant shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. All records stored electronically must be provided to the City in a format that is compatible with the information technology systems of the City. For purposes of this Article, the term "public records" shall mean all documents, papers, letters, maps, books, tapes, photographs, films, sound recordings, data processing software, or other material, regardless of the physical form, characteristics, or means of transmission, made or received pursuant to law or ordinance or in connection with the transaction of official business of the City. Consultant's failure to comply with the public records disclosure requirement set forth in Section 119.0701 of the Florida Statutes shall be a breach of this Agreement. In the event the Consultant does not comply with the public records disclosure requirement set forth in Section 119.0701 of the Florida Statutes, the City may, at the City's sole discretion, avail itself of the remedies set forth under this Agreement and available at law. 12.5 Ownership of Documents All documents prepared by the Consultant pursuant to this Agreement are related exclusively to the Services described herein, and are intended or represented for ownership by the City. Any reuse, distribution, or dissemination of same by Consultant, other than to the City, shall first be approved in writing by the City Manager. 8 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their appropriate officials, as of the date first entered above. FOR CITY: CITY OF MIAMI BEACH, FLORIDA ATTEST: / By: � 22 1c .•.�.�� %" �; Rafael E. Granado, City li p ` y �. � � I� �. 8�� hif i L�� e fMa or \v` F. /NOORP ORATED s FOR CONSULTANT: \'? j . \ 'OWE-• : HORWATH LLP / 261'' ATTEST: ��"��• By: )114Ak- f C Slim, 1.4ef /;v Print Name/Ti le r Print Name/Title APPROVED AS TO FORM & LANGUAGE & FOR EXEC I N A ( ) ity Attorney r'r Date F:\ATTO\TORG\Agreement/Audit Agreement/Crowe Horwath LLP Final 11-5-2015 9 EXHIBIT "A" SCOPE OF SERVICES FOR INTERNAL AUDITS (RESORT TAX AUDITS EXCLUDED) ON A NON-EXCLUSIVE BASIS 1. Audit Services within Scope of Services. The Consultant, on a non-exclusive basis, shall develop audit programs for internal audits (Resort Tax Audits Excluded), based upon the scope of work requested by the City. The scope of work for internal audits will be contingent upon the type of audit requested. The types of audits which may be requested by the City and required to be performed by Consultant will comprise of Financial Audits, Attestation Engagements (includes examinations, review or agreed upon procedures), Performance Audits, and Forensic Audits. The City will assign these audits as needed depending upon funding. Audit work shall be performed by Consultant in accordance with the Government Auditing Standards. Prior to authorizing work on an internal audit, Consultant shall be required to submit to the City Manager a fixed price proposal (the "Proposal") based on the number of hours estimated to complete the work and a price per hour that is less than or equal to the approved hourly rates set forth in the Fee schedule, attached to the Agreement as Exhibit "B". The total Fee for the audit work set forth in the Proposal may not exceed the total Fee contained in the Proposal, even if the Consultant expends additional time in connection with the proposed audit work requested by the City. Thereafter, if the City Manager, in his sole discretion, determines to proceed with the Proposal, the City Manager shall send Consultant a written notice to proceed. Any change to the approved scope of work shall require the prior written approval of the City Manager, which approval shall be memorialized in writing, in the form of an amendment to the Agreement, executed by the parties. Each audit shall not be complete until such time as Consultant has submitted a final report, containing audit findings, which final report has been accepted by the City Manager, as evidenced by a written confirmation of acceptance from the City Manager. 2. Resort Tax Audits Excluded. Consultant will not be providing Resort Tax Audit services. 3. Additional Services. During the Term of this Agreement, services not specifically identified in this Scope of Services may be added upon successful negotiation between the City Manager and Consultant, including relevant fees ("Additional Services"). Additional Services shall require the prior written approval of the City Manager, which approval shall be memorialized in writing, in the form of an amendment to the Agreement, executed by the parties. 10 EXHIBIT "B" FEES Internal audits will be requested by the City on an as needed basis. The consultant shall propose the estimated number of hours necessary to complete the audit work based on negotiated "Not to Exceed" hourly rates specified below. INTERNAL AUDIT RATES BY FIRM Position Hourly Rate Partner/Principal $350.00 Director $270.00 Manager $170.00 Senior $140.00 Staff/Consultant $120.00 Administrative Support $80.00 11 RESOLUTION NO. 2015-29005 12 RESOLUTION NO. 2015-29005 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS, PURSUANT TO REQUEST FOR QUALIFICATIONS (RFQ) NO. 2015-043-WG FOR AUDIT SERVICES FOR RESORT TAXES AND INTERNAL AUDITS; AUTHORIZE THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH SKJT&G, BCA WATSON RICE, KILGOUR & ASSOCIATES, RGL FORENSICS, FOR THE RESORT TAX AUDITS PORTION OF THE RFQ; CROWE HORWATH, PROTIVITI, BCA WATSON RICE, FOR THE INTERNAL AUDITS PORTION OF THE RFQ; AND FURTHER AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS WITH THESE FIRMS UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, Request for Qualifications (RFQ) No. 2015-043-WG was issued on December 19, 2014 with an opening date of February 26, 2014; and WHEREAS, a voluntary pre-proposal meeting was held on December 29, 2014; and WHEREAS, the City received seven (7) proposals; and WHEREAS, on April 14, 2015, the City Manager via Letter to Commission (LTC) No. 144-2015, appointed an Evaluation Committee (the "Committee"), consisting of the following individuals: • Laura Franco-Rubines, Assistant Internal Auditor, Office of Budget and Performance Improvement, City of Miami Beach • Juan Rodriguez, CPA, Finance Department, City of Miami Beach • Maria Cerna, Division Director, Capital Improvement Projects, City of Miami Beach • Sanford Horwitz, CPA, City of Miami Beach Audit Committee • Ronald Starkman, CPA, City of Miami Beach Audit Committee The following alternates were also appointed: • James Sutter, CPA, internal Auditor Office of Budget and Performance Improvement, City of Miami Beach • Marie Paul, CPA, Finance Department, City of Miami Beach WHEREAS, the Committee convened on April 24, 2015 to consider proposals received; and WHEREAS, the Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law; general information on the scope of services, references, and a copy of the proposal; and WHEREAS, the Committee was instructed to score and rank the proposals pursuant to the evaluation criteria established in the RFQ; and WHEREAS, after reviewing all the submissions and the Evaluation Committee's rankings, the City Manager exercised his due diligence and is recommending that the Administration be authorized to enter into negotiations with SKJT&G, BCA Watson Rice, Kilgour & Associates, RGL Forensics, for the Resort Tax Audits portion of the RFQ; Crowe Horwath, Protiviti, BCA Watson Rice, for the Internal Audits portion of the RFQ. 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 recommendation of the City Manager pertaining to the ranking of proposals, pursuant to Request for Qualifications No. 2015-043-WG '(the RFQ), for Audit Services for Resort Taxes and Internal Audits; authorize the Administration to enter into negotiations with SKJT&G, BCA Watson Rice, Kilgour & Associates, RGL Forensics, for the Resort Tax Audits portion of the RFQ; Crowe Horwath, Protiviti, BCA Watson Rice, for the Internal Audits Portion of the RFQ; and further authorize the Mayor and City Clerk to execute Agreements with these firms upon conclusion of successful negotiations by the Administration. PASSED AND ADOPTED this day of //44 2015. ATTEST: i AN' 'afael E. c ana.o, ity Clerk Philip ev' ,Mayor • Nan ORATED: • �.INCORP to; APPROVED AS TO c FORM.&LANGUAGE � ' � `FOR EXECUTION (47CH 26 - %%arm 1 .___44r0L— 4- Yr:( 4 City Attorney Date ur g.: .._ _�_.T_,.__r_v-ATZ I_-r..;--+._--.evlifta..+mac-ee - .. ,- r�,4 e►1da1203"51M�3C 61RF(1`:2(}15-04.��VG`A�i,�ervtt'.e5 for Re5orCaTaxe52ar1 ;f`nferrt2f;}1ud'it5�FBSO.�OC • COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS, PURSUANT TO REQUEST FOR QUALIFICATIONS (RFQ) NO. 2015-043-WG FOR AUDIT SERVICES FOR RESORT TAXES AND INTERNAL AUDITS; AUTHORIZE THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH SKJT&G, BCA WATSON RICE, KILGOUR & ASSOCIATES, RGL FORENSICS, FOR THE RESORT TAX AUDITS PORTION OF THE RFQ; CROWE HORWATH, PROTIVITI, BCA WATSON RICE, FOR THE INTERNAL AUDITS PORTION OF THE RFQ; AND FURTHER AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS WITH THESE FIRMS UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. Key Intended Outcome Supported: Ensure Ex•enditure Trends Are Sustainable Over the Lon. Term Supporting Data (Surveys, Environmental Scan, etc: N/A Item Summary/Recommendation: On December 17, 2014, the City Commission approved the issuance of the subject Request for Qualification (RFQ). On December 19, 2014 the RFQ was issued with an opening date of February 26, 2015. A pre-proposal conference to provide information to the proposers submitting a response was held on December 29,2014. The City received four(4)proposals from SKJT&G, RGL Forensics, Kilgour&Associates and BCA Watson Rice for the Resort Tax Audits portion of the RFQ, and three (3) proposals from Crowe Horwath, Protiviti and BCA Watson Rice for the Internal Audits portion of the RFQ. On April 14, 2015, the City Manager appointed, via letter to Commission(LTC)No. 144-2015, an Evaluation Committee (the Committee), which convened on April 24, 2015, to consider the proposals. The Committee was instructed to score and rank the proposal pursuant to the evaluation criteria established in the RFQ. The results of the evaluation committee process were presented to the City Manager for his recommendation to the City Commission. After reviewing the submission and the Evaluation Committee's rankings of proposals received,the City Manager recommends that the Mayor and the City Commission, pursuant to Request for Proposals (RFQ) No. 2015-043-WG, for Audit Services for Resort Taxes and Internal Audits, authorize the Administration to enter into negotiations with all ranked proposers(who have been deemed by the Committee to be qualified), SKJT&G, RGL Forensics, Kilgour& Associates and BCA Watson Rice for the Resort Tax Audits portion of the RFQ, and Crowe Horwath, Protiviti and BCA Watson Rice for the Internal Audits portion of the RFQ, and further authorize the City Manager to execute agreements upon conclusion of successful negotiations by the Administration. RECOMMENDATION I ADOPT THE RESOLUTION. Advisory Board Recommendation: Financial Information: Source of i Amount Account Funds: 1 $106,400 160-0330-000312 Resort Taxes OBP 2 $150,000 011-0330-000312 Internal Audits Financial Impact Summary: The annual cost associated with the procurement of auditing services is subject to the funds availability approved through the City's budgeting process. City Clerk's Office Legislative Tracking: Alex Denis, Extension 6641 Sign-Offs: - rtment Director t City Manager City . iInager JW P. _ A 5\AT P. JL ) A . MIAMIBEACH AGENDA - M C 7 l� DATE 5-g-1( MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSIO'- MEMORANDUM TO: Mayor Philip Levine and Members of e City Corn ,-sion FROM: Jimmy L. Morales, City Manager _41 _ � DATE: May 6, 2015 SUBJECT: A RESOLUTION OF THE MAYO'.' AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, 'FLORIDA, AC EPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS, PURSUANT TO REQUEST FOR QUALIFICATIONS (RFQ) NO. 2015-043-WG FOR AUDIT SERVICES FOR RESORT TAXES AND INTERNAL AUDITS; AUTHORIZE THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH SKJT&G, BCA WATSON RICE, KILGOUR & ASSOCIATES, RGL FORENSICS, FOR THE RESORT TAX AUDITS PORTION OF THE RFQ; CROWE HORWATH, PROTIVITI, BCA WATSON RICE, FOR THE INTERNAL AUDITS PORTION OF THE RFQ; AND FURTHER AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS WITH THESE FIRMS UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. FUNDING The annual cost associated with the procurement of auditing services is subject to the funds availability approved through the City's budgeting process. BACKGROUND The Administration issued RFQ 2015-043-WG to seek the proposals from qualified firms to perform resort tax audits and internal audits, in an effort to create a pre-qualified pool to perform review of the City's resort tax revenues and conduct internal audits as may be necessary. These audits shall identify billing errors and other discrepancies for cost recovery. The City of Miami Beach charges a resort tax of revenue generated by the sale of rooms and on revenues from food and beverages earned within the City. Businesses are required to register with the City, to collect and remit taxes. The Internal Audit Division conducts routine periodic audits of the businesses within the City required to pay resort taxes. In addition, the City Administration may determine a need to audit a particular area whereby the Internal Audit Division does not have the resources to audit at a particular time. In the past, the Administration has sought outside assistance from qualified firms to accomplish these assignments. RFQ PROCESS On December 17, 2014, the City Commission approved the issuance of the subject Request for Qualification (RFQ). On December 19, 2014 the RFQ was issued with an opening date of February 26, 2015. A pre-proposal conference to provide information to the proposers submitting a response was held on December 29, 2014. The City received four (4) proposals from SKJT&G, RGL Forensics, Kilgour & Associates and BCA Watson Rice for the Resort Tax Audits portion of the RFQ, and three (3) proposals from Crowe Horwath, Pro.tiviti and BCA Watson Rice for the Internal Audits portion of the RFQ. Commission Memorandum —RFQ 2015-043-WG Audit Services for Resort Taxes and Internal Audits May 6, 2015 Page 2 On April 14, 2015, the City Manager appointed, via letter to Commission (LTC) No. 144-2015, an Evaluation Committee (the Committee), consisting of the following individuals: • Laura Franco-Rubines, Assistant Internal Auditor, Office of Budget and Performance Improvement, City of Miami Beach • Juan Rodriguez, CPA, Finance Department, City of Miami Beach • Maria Cerna, Division Director, Capital Improvement Projects, City of Miami Beach • Sanford Horwitz, CPA, City of Miami Beach Audit Committee • Ronald Starkman, CPA, City of Miami Beach Audit Committee The following Alternates were also appointed: 0 James Sutter, CPA, Internal Auditor Office of Budget and Performance Improvement, City of Miami Beach • Marie Paul, CPA, Finance Department, City of Miami Beach The Committee convened on April 24, 2015, to consider the proposals received. Ronald Starkman was unable to attend; therefore Marie Paul was selected to serve as an alternate. The Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law. The Committee was also provided general information on the scope of services, references, and a copy of each proposal. The Committee was instructed to score and rank the proposal pursuant to the evaluation criteria established in the RFQ. Evaluation Criteria Total Points Qualifications of the proposing firm 100 Similar project experience References Team member qualifications Financial capacity Litigation History or Other Factors or Information Requested under this RFQ The Committee pointed out the importance of rapid response times to City inquiries, good communication between the proposer, business owner and City staff and adherence to specified completion dates, in order to allow for a successful partnership. The RFQ also stipulated that additional points would be applied, if applicable pursuant'to the City's Veteran's Preference Ordinance. However, none of the proposers were eligible for the veteran's reference. RFQ#2015-043-WG FOR AUDIT SERVICES OF Laura RESORT TAXES Franco- Juan Maria Sandy Rubines Ranking Rodriguez Ranking Cerna Ranking Horwitz Ranking Marie Paul Ranking SKJT&G 80 1 90 1 90 1 75 1 90 1 RGL Forensics 50 2 60 _ 4 70 4 10 4 60 3 Kilgour&Associates LLC 40 3 75 2 78 3 50 2 55 4 BCA Watson Rice 40 3 65 3 _ 81 2 ' 40 3 I 70 2 Commission Memorandum —RFQ 2015-043-WG Audit Services for-Resort Taxes and Internal Audits May 6, 2015 Page 3 RFO#2015-043-WG FOR OTHER INTERNAL Laura AUDITS Franco- Juan Maria Sandy Rubines Ranking Rodriguez Ranking Cema Ranking Horwitz Ranking Marie Paul Ranking BCA Watson Rice 80 3 93 2 89 3 60 3 80 3 Crowe Horwath 95 1 I 95 1 90 2 90 1 85 2 Protiviti 85 2 90 3 92 1 80 2 90 1 MANAGER'S DUE DILIGENCE & RECOMMENDATION The City Manager has reviewed the proposals received, pursuant to RFQ 2015-043-WG, for Audit Services for Resort Taxes and Internal Audits, and the results of the Evaluation Committee process, and recommends that the Mayor and City Commission of the City of Miami Beach, Florida, authorize the Administration to enter-into negotiations with SKJT&G, RGL Forensics, Kilgour & Associates and BCA Watson Rice for the Resort Tax Audits portion of the RFQ, and Crowe Horwath, Protiviti and BCA Watson Rice for the Internal Audits portion of the RFQ; and further authorize the Mayor and City Clerk to execute agreements with these firms upon completion of successful negotiations by the Administration. CONCLUSION The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida, approve the resolution accepting the recommendation of the City Manager, pursuant to Request for Qualification (RFQ) No. 2015-043-WG, for Audit Services for Resort Taxes and Internal Audits. 'i9 JLM/ MT/J T:\AGENDA\2015\May 6\Procurement\RFQ 2015-043-WG Audit Services for Resort Taxes and Internal Audits-Memo.doc • • RFQ 201 5-043-WG AND ADDENDA 13 MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov PROCUREMENT DEPARTMENT Tel: 305-673-7490 Fax: 786-394-4002 ADDENDUM NO. 5 REQUEST FOR QUALIFICATIONS NO.2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS February 13,2015 This Addendum to the above-referenced RFQ is issued in response to questions from prospective proposers, or other clarifications and revisions issued by the City.The RFQ is amended in the following particulars only. I. Revision: Section 0300, Proposal Submittal Instructions and Format, Tab 2, is revised to include the following language: 2.2 Qualification of Proposer Team.Provide an organizational chart of all personnel and consultants to be used if awarded, the role that each team member will play in providing the services detailed herein and each team member's qualifications. A resume of each individual, including education, experience, certification such as Certified Public Accountants (CPA), Certified Internal Auditors(CIA) or Certified Fraud Examiners (CFE)and any other pertinent information, shall be included for each proposal team member to be assigned to this contract. H. Revision: Delete Paragraph C2.1, Internal Audits—Minimum Requirements and Project Specifications, in its entirety. Proposers are not required to be American Institute of Certified Public Accountants (AICPA) or Florida Institute of Certified Public Accountants(FICPA). III. Responses to Questions Received Q1) Prospective bidder, (as a company) is not a member of either the American Institute of Certified Public Accountants (AICPA) or Florida Institute of Certified Public Accountants (FICPA), however several of our practice professionals across the firm including our local offices and audit professionals here in South Florida, are Certified Public Accountants (CPA) and members of one or both organizations. We are members of The Institute of Internal Audit (The IIA), and as such, we fully subscribe to The IIA's International Standards for the Processional Practice of Internal Auditing. Al) In an effort to ensure a greater response to the RFQ, the City has removed the minimum requirement that proposers be members of the AICPA (American Institute of Certified Public Accountants) and FICPA (Florida Institute of Certified Public Accountants). Instead,the RFQ will now require respondents to provide those certifications held by their team members,which is a more accurate measure of the qualifications of the team members which will be providing services to the City. Team member certifications will be evaluated under the qualifications portions of the evaluation criteria. Q2).Prospective bidder is unable to provide attestation services as we are not a CPA firm. However it appears that the scope of the services being requested are Internal Audit in nature and the entirety of the engagements outlined would not require attestation work. A2)Project Specifications for Internal Audits lists those types of audit which may be conducted. The majority of internal audits fall under the Performance Audits,therefore this should not exclude any firm who cannot perform attestation work to make a proposal for performance audit work. Any questions regarding this Addendum should be submitted in writing to the Procurement Management Department to the attention of the individual named below,with a copy to the City Clerk's Office at RafaelGranado(amiamibeachfl.gov Contact: Telephone: Email: William Garviso 305-673-7000 ext.6650 WilliamGarviso @miamibeachfl.gov Bi.•ers are reminded to acknowledge receipt of this addendum as part of your RFQ submission. a lex D is rement Director 1 ADDENDUM 5 ITB 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS I M City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov PROCUREMENT DEPARTMENT Tel: 305-673-7490 Fax: 786-394-4002 ADDENDUM NO. 4 REQUEST FOR QUALIFICATIONS NO. 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS February 9, 2015 This Addendum to the above-referenced RFQ is issued in response to questions from prospective proposers, or other clarifications and revisions issued by the City. The RFQ is amended in the following particulars only. I. Revision Deadline for receipt of proposals is hereby changed to February 26, 2015 at 3:00PM. Any questions regarding this Addendum should be submitted in writing to the Procurement Management Department to the attention of the individual named below, with a copy to the City Clerk's Office at RafaelGranado(c�miamibeachfl.gov Contact: Telephone: ; Email: William Garviso 305-673-7000 ext. 6650 WilliamGarviso @miamibeachfl.gov Bidders are reminded to acknowledge receipt of this addendum as part of your RFQ submission. cerely, 11J"7-.._go� • ex D-' rocurement Director 1 ADDENDUM 4 ITB 2015-043-VVG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS MIAMI B EAC City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov PROCUREMENT DEPARTMENT Tel: 305-673-7490 Fax: 786-394-4002 ADDENDUM NO. 3 REQUEST FOR QUALIFICATIONS NO. 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS January 28, 2015 This Addendum to the above-referenced RFQ is issued in response to questions from prospective • proposers, or other clarifications and revisions issued by the City. The RFQ is amended in the following particulars only. I. Revisions Deadline for receipt of proposals is hereby changed to February 12, 2015 at 3:00PM . i Any questions regarding this Addendum should be submitted in writing to the Procurement Management Department to the attention of the individual named below, with a copy to the City Clerk's Office at RafaelGranado( miamibeachfl.gov • Contact: Telephone: Email: William Garviso 305-673-7000 ext. 6650 WilliamGarviso©miamibeachfl.gov :i•ders are reminded to acknowledge receipt of this addendum as part of your RFQ submission. Sof ttV — -r•cur -nt Director 1 ADDENDUM 3 ITB 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov PROCUREMENT DEPARTMENT Tel: 305-673-7490 Fax: 786-394-4002 ADDENDUM NO. 2 REQUEST FOR QUALIFICATIONS NO. 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS January 15, 2015 This Addendum to the above-referenced RFQ is issued in response to questions from prospective proposers, or other clarifications and revisions issued by the City. The RFQ is amended in the following particulars only. Revisions 1. Deadline for receipt of proposals is hereby changed to January 29, 2015 at 3:00PM Any questions regarding this Addendum should be submitted in writing to the Procurement Management Department to the attention of.the individual named below, with a copy to the City Clerk's Office at RafaelGranado(cr,miamibeachfl.gov Contact: Telephone: Email: William Garviso 305-673-7000 ext. 6650 WilliamGarviso @miamibeachfl.gov Bidders are reminded to acknowledge receipt of this addendum as part of your RFQ submission. /4 ement Director 1 ADDENDUM 1 ITB 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS M City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov PROCUREMENT DEPARTMENT Tel: 305-673-7490 Fax: 786-394-4002 ADDENDUM NO. 1 REQUEST FOR QUALIFICATIONS NO. 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS December 26, 2014 This Addendum to the above-referenced RFQ is issued in response to questions from prospective proposers, or other clarifications and revisions issued by the City. The RFQ is amended in the following particulars only. 1. PRE-BID CONFERENCE. The Dial-in Meeting number for the pre-bid conference scheduled for December 29, 2014 at 10:00AM has been revised as follows: Dial-in Instructions: • Dial the Telephone Number: 888-270-9936 • Enter the Meeting 4142489 and then press the pound (#) key As indicated in page 2 of the RFQ, "The Pre-Bid Conference is not mandatory. However, it is strongly encouraged that all prospective bidders attend." Any questions regarding this Addendum should be submitted in writing to the Procurement Management Department to the attention of the individual named below, with a copy to the City Clerk's Office at RafaelGranado(c�miamibeachfl.gov Contact: Telephone: Email: • William Garviso 305-673-7000 ext. 6650 WilliamGarviso @miamibeachfl.gov 1e e reminded to acknowledge receipt of this addendum as part of your RFQ submission. • --��- Denis _ (V('Procurement Director 1 ADDENDUM 1 ITB 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS 11 REQUEST FOR QLALIFJCATIONS ( RFQ AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS 2015 043- WG RFQ ISSUANCE DATE: DECEMBER 19, 2014 PROPOSALS DUE: JANUARY 15, 2015 @ 3:00PM ISSUED BY: WILLIAM GARVISO, CPPB MIAMIBEACH WILLIAM GARVISO, PROCUREMENT COORDINATOR PROCUREMENT DEPARTMENT 1700 Convention Center Drive, 3rd Floor, Miami Beach, FL 33139 305.6737000 X6650 I www.miamibeachfl.gov CPA AA!.W 1 AC l- TABLE OF CONTENTS SOLICITATION SECTIONS: PAGE 0100 NOT UTILIZED N/A 0200 INSTRUCTIONS TO PROPOSERS & GENERAL CONDITIONS 3 0300 SUBMITTAL INSTRUCTIONS & FORMAT 10 0400 PROPOSAL EVALUATION 11 APPENDICES: APPENDIX A PROPOSAL CERTIFICATON, QUESTIONNAIRE AND AFFIDAVITS APPENDIX B "NO PROPOSAL" FORM APPENDIX C MINIMUM REQUIREMENTS & SPECIFICATIONS APPENDIX D SPECIAL CONDITIONS APPENDIX E SAMPLE CONTRACT APPENDIX F INSURANCE REQUIREMENTS APPENDIX G SAMPLE AUDIT PROGRAMS FOR RESORT TAX AUDITS RFQ 2015-043-V\/G 2 SECTION 0200 INSTRUCTIONS TO RESPONDENTS & GENERAL CONDITIONS 1. GENERAL. This Request for Qualifications (RFQ) is issued by the City of Miami Beach, Florida (the City"), as the means for prospective Proposers to submit their qualifications, proposed scopes of work and cost proposals (the "proposal") to the City for the City's consideration as an option in achieving the required scope of services and requirements as noted herein. All documents released in connection with this solicitation, including all appendixes and addenda, whether included herein or released under separate cover, comprise the solicitation, and are complementary to one another and together establish the complete terms, conditions and obligations of the Proposers and, subsequently, the successful Proposer(s) (the"contractor[s]") if this RFQ results in an award. The City utilizes PublicPurchase (www.publicourchase.com) for automatic notification of competitive solicitation opportunities and document fulfillment, including the issuance of any addendum to this RFQ. Any prospective Proposer who has received this RFQ by any means other than through PublicPurchase must register immediately with PublicPurchase to assure it receives any addendum issued to this RFQ. Failure to receive an addendum may result in disqualification of proposal submitted. 2. PURPOSE. Through this Request for Qualifications, the City of Miami Beach is seeking proposals from interested qualified parties in order to establish a contract(s) for the provision of audits of resort taxes and other internal audits, on an as needed basis. Interested parties shall submit proposals for resort tax audits and/or for other internal audits. Interested parties may submit proposals for both categories; however, each category (resort tax or other internal audits) requires a separate and distinct proposal. The process for this RFQ shall be as follows: • Proposals are solicited pursuant to the RFQ. • Responses are evaluated in accordance with the criteria established herein. • The City Manager shall make an award recommendation to the City Commission which may include more than one (1)consultant recommended for each category. • The City Commission will make final approval of the selected consultant(s). • Any resulting Agreement will be based on the attached sample agreement. The City will negotiate final scope and pricing with selected consultant(s). • The City may declare an impasse at any time with any selected consultant with whom terms, scope of services or pricing cannot be mutually agreed upon. For the purpose of this RFQ, the term "Proposer' is intended to define a firm or individual submitting a proposal (statements of qualifications)to the City pursuant to this RFQ. 3. SOLICITATION TIMETABLE. The tentative schedule for this solicitation is as follows: RFQ Issued December 19, 2014 Pre-Proposal Meeting December 29, 2014 @ 10:00AM Deadline for Receipt of Questions January 5, 2015 Responses Due January 15, 2015 @ 3:00PM Evaluation Committee Review TBD • Proposer Presentations TBD Tentative Commission Approval Authorizing Negotiations TBD Contract Negotiations Following Commission Approval RFQ 2015-043-WG 3 BE AC 4, PROCUREMENT CONTACT. Any questions or clarifications concerning this solicitation shall be submitted to the Procurement Contact noted below: Procurement Contact: Telephone: Email: William Garviso 305.673.7000 x6650 williamgarviso @miamibeachfl.gov Additionally, the City Clerk is to be copied on all communications via email at: RafaelGranado(@_miamibeachfl.aov or facsimile: 786-394-4188. The Bid title/number shall be referenced on all correspondence. All questions or requests for clarification must be received no later than ten (10) calendar days prior to the date proposals are due as scheduled in Section 0200-3. All responses to questions/clarifications will be sent to all prospective Proposers in the form of an addendum. 5. PRE-PROPOSAL MEETING OR SITE VISIT(S). Only if deemed necessary by the City, a pre-proposal meeting or site visit(s) may be scheduled. A Pre-Proposal conference will be held as scheduled in Solicitation Timeline above at the following address: City of Miami Beach City Hall -4th Floor City Manager's Large 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: 1-888-270-9936 (Toll-free North America) (2) Enter the MEETING NUMBER:.1142644 Proposers who are interested in participating via telephone should send an e-mail to the contact person listed in this RFQ expressing their intent to participate via telephone. 6. PRE-PROPOSAL INTERPRETATIONS. Oral information or responses to questions received by prospective Proposers are not binding on the City and will be without legal effect, including any information received at pre- submittal meeting or site visit(s). Only questions answered by written addenda will be binding and may supersede terms noted in this solicitation.Addendum will be released through PublicPurchase. 7. CONE OF SILENCE. Pursuant to Section 2-486 of the City Code, all procurement solicitations once advertised and until an award recommendation has been forwarded to the City Commission by the City Manager are under the "Cone of Silence." The Cone of Silence ordinance is available at http://library.municode.comrndex.aspx?clientlD=13097&statelD=9&statename=Florida. Any communication or inquiry in reference to this solicitation with any City employee or City official is strictly prohibited with the of exception of communications with the Procurement Director, or his/her administrative staff responsible for administering the procurement process for this solicitation providing said communication is limited to matters of process or procedure regarding the solicitation. Communications regarding this solicitation are to be submitted in writing to the Procurement Contact named herein with a copy to the City Clerk at RafaelGranado @miamibeachfl.gov. RFQ 2015-043-WG 4 4 { �t 3 :1 3 M BEACH H 1.A i EAC 8. SPECIAL NOTICES. You are hereby advised that this solicitation is subject to the following ordinances/resolutions, which may be found on the City Of Miami Beach website: http://web.miamibeachfl.qov/procurement/scroll.aspx?id=23510 • CONE OF SILENCE ............................................................... CITY CODE SECTION 2-486 • PROTEST PROCEDURES................................................. ..... CITY CODE SECTION 2-371 • DEBARMENT PROCEEDINGS............. ....... ..... ..... CITY CODE SECTIONS 2-397 THROUGH 2-485.3 • LOBBYIST REGISTRATION AND DISCLOSURE OF FEES,.. CITY CODE SECTIONS 2-481 THROUGH 2-406 • CAMPAIGN CONTRIBUTIONS BY VENDORS ........ CITY CODE SECTION 2-487 • CAMPAIGN CONTRIBUTIONS BY LOBBYISTS ON PROCUREMENT ISSUES... CITY CODE SECTION 2-488 • REQUIREMENT FOR CITY CONTRACTORS TO PROVIDE EQUAL BENEFITS FOR DOMESTIC PARTNERS CITY CODE SECTION 2=373 • LIVING WAGE REQUIREMENT.. CITY CODE SECTIONS 2-407 THROUGH 2-410 ,CCE_E A. __ _H BASED VENDORS......... CITY CODE SECTION 2 372 • PREFERENCE FOR FLORIDA SMALL BUSINESSES OWNED AND CONTROLLED BY VETERANS AND TO STATE-CERTIFIED SERVICE- DISABLED VETERAN BUSINESS ENTERPRISES... CITY CODE SECTION 2-374 • FALSE CLAIMS ORDINANCE ....................................... CITY CODE SECTION 70-300 • ACCEPTANCE OF GIFTS,FAVORS&SERVICES.............................. CITY CODE SECTION 2-449 9. POSTPONEMENT OF DUE DATE FOR RECEIPT OF PROPOSALS. The City reserves the right to postpone the deadline for submittal of proposals and will make a reasonable effort to give at least three (3) calendar days written notice of any such postponement to all prospective Proposers through PublicPurchase. 10. PROTESTS. Protests concerning the specifications, requirements, and/or terms; or protests after the proposal due date in accordance with City Code Section 2-371, which establishes procedures for protested proposals and proposed awards. Protests not submitted in a timely manner pursuant to the requirements of City Code Section 2- 371 shall be barred. 11. VETERAN BUSINESS ENTERPRISES PREFERENCE. Pursuant to City of Miami Beach Ordinance No. 2011- 3748, the City shall give a five (5) point preference to a responsive and responsible Proposer which is a small business concern owned and controlled by a veteran(s) or which is a service-disabled veteran business enterprise. 12. DETERMINATION OF AWARD. The final ranking results of Step 1 & 2 outlined in Section V, Evaluation of Proposals, will be considered by the City Manager who may recommend to the City Commission the Proposer(s) he/she deems to be in the best interest of the City or may recommend rejection of all proposals. The City Manager's recommendation need not be consistent with the scoring results identified herein and takes into consideration Miami Beach City Code Section-2-369, including the following considerations: (1) The ability, capacity and skill of the Proposer to perform the contract. (2) Whether the Proposer can perform the contract within the time specified, without delay or interference. (3)The character, integrity, reputation,judgment, experience and efficiency of the Proposer. (4) The quality of performance of previous contracts. (5) The previous and existing compliance by the Proposer with laws and ordinances relating to the contract. The City Commission shall consider the City Manager's recommendation and may 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. Upon approval of RFQ 2015-043-WG 5 • MIAMI BE H {i selection by the City Commission, negotiations between the City and the selected Proposer(s) will take place to arrive at a mutually acceptable Agreement. The City may award multiple vendors for each category(Resort Tax Audits or Internal Audits). 13. ACCEPTANCE OR REJECTION OF PROPOSALS. The City reserves the right to reject any or all proposals prior to award. Reasonable efforts will be made to either award the Contract or reject all proposals within one- hundred twenty (120) calendar days after proposals opening date. A Proposer may not withdraw its proposals unilaterally before the expiration of one hundred and twenty(120) calendar days from the date of proposals opening. 14. 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 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. 15. 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. 16. 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. 17. TAXES.The City of Miami Beach is exempt from all Federal Excise and State taxes. 18. MISTAKES. Proposers are expected to examine, the terms, conditions, specifications, delivery schedules, proposed pricing, and all instructions pertaining to the goods and services relative to this RFQ. Failure to do so will be at the Proposer's risk and may result in the Proposal being non-responsive. 19. PAYMENT. Payment will be made by the City after the goods or services have been received, inspected, and found to comply with contract, specifications, free of damage or defect, and are properly invoiced. Invoices.must be I consistent with Purchase Order format. 20. PATENTS & ROYALTIES. Proposer shall indemnify and save harmless the City of Miami Beach, Florida, and its officers, employees, contractors, and/or agents, from liability of any nature or kind., including cost and expenses for, or on account of, any copyrighted, patented, or unpatented invention, process, or article manufactured or used in the performance of the contract, including its use by the City of Miami Beach, Florida. If the Proposer uses any design, device or materials covered by letters, patent, or copyright, it is mutually understood and agreed, without exception, that the proposal prices shall include all royalties or cost arising from the use of such design, device, or materials in any way involved in the work. 21. MANNER OF PERFORMANCE. Proposer agrees to perform its duties and obligations in a professional manner and in accordance with all applicable Local, State, County, and Federal laws, rules, regulations and codes. Lack of knowledge or ignorance by the Proposer with/of applicable laws will in no way be a cause for relief from RFQ 201 -04 3 A G 6 "\,:\1 A1 \I B E AC H responsibility. Proposer agrees that the services provided shall be provided by employees that are educated, trained, experienced, certified, and licensed in all areas encompassed within their designated duties. Proposer agrees to furnish to the City any and all documentation, certification, authorization, license, permit, or registration currently required by applicable laws, rules, and regulations. Proposer further certifies that it and its employees will keep all licenses, permits, registrations, authorizations, or certifications required by applicable laws or regulations in full force and effect during the term of this contract. Failure of Proposer to comply with this paragraph shall constitute a material breach of this contract. Where contractor is required to enter or go on to City of Miami Beach property to deliver materials or perform work or services as a result of any contract resulting from this solicitation, the contractor will assume the full duty, obligation and expense of obtaining all necessary licenses, permits, and insurance, and assure all work complies with all applicable laws. The contractor shall be liable for any damages or loss to the City occasioned by negligence of the Proposer, or its officers, employees, contractors, and/or agents, for failure to comply with applicable laws. 22. SPECIAL CONDITIONS. Any and all Special Conditions that may vary from these General Terms and Conditions shall have precedence. 23. ANTI-DISCRIMINATION. The Proposer certifies that he/she is in compliance with the non-discrimination clause contained in Section 202, Executive Order 11246, as amended by Executive Order 11375, relative to equal employment opportunity for all persons without regard to race, color, religion, sex or national origin. 24. DEMONSTRATION OF COMPETENCY. A. Pre-award inspection of the Proposer's facility may be made prior to the award of contract. B. Proposals will only be considered from firms which are regularly engaged in the business of providing the goods and/or services as described in this solicitation. C. Proposers must be able to demonstrate a good record of performance for a reasonable period of time, and have sufficient financial capacity, equipment, and organization to ensure that they can satisfactorily perform the services if awarded a contract under the terms and conditions of this solicitation. D. The terms "equipment and organization", as used herein shall, be construed to mean a fully equipped and well established company in line with the best business practices in the industry, and as determined by the City of Miami Beach. E. The City may consider any evidence available regarding the financial, technical, and other qualifications and abilities of a Proposer, including past performance (experience), in making an award that is in the best interest of the City. F. The City may require Proposers to show proof that they have been designated as authorized representatives of a manufacturer or supplier, which is the actual source of supply. In these instances, the City may also require material information from the source of supply regarding the quality, packaging, and characteristics of the .products to be supplied to the City. 25. ASSIGNMENT. The successful Proposer shall not assign, transfer, convey, sublet or otherwise dispose of the contract, including any or all of its right, title or interest therein, or his/her or its power to execute such contract, to any person, company or corporation, without the prior written consent of the City. a _ 26. LAWS, PERMITS AND REGULATIONS. The Proposer shall obtain and pay for all licenses, permits, and inspection fees required to complete the work and shall comply with all applicable laws. 27. OPTIONAL CONTRACT USAGE. When the successful Proposer(s) is in agreement, other units of government or non-profit agencies may participate in purchases pursuant to the award of this contract at the option of the unit of RF Q 20I 5-043-WG 7 • sr.nu.•r...•?v:se:-o-.x.:.::.s.'=9:Y'.Ma I 1 I r--i../ i BEACH government or non-profit agency. 28. VOLUME OF WORK TO BE RECEIVED BY CONTRACTOR. It is the intent of the City to purchase the goods and services specifically listed in this solicitation from the contractor. However, the City reserves the right to purchase any goods or services awarded from state or other governmental contract, or on an as-needed basis through the City's spot market purchase provisions. 29. DISPUTES. In the event of a conflict between the documents, the order of priority of the documents shall be as follows: A. Any contract or agreement resulting from the award of this solicitation; then B. Addendum issued for this solicitation, with the latest Addendum taking precedence; then C. The solicitation; then D. The Proposer's proposal in response to the solicitation. 30. INDEMNIFICATION. The contractor shall indemnify and hold harmless the City and its officers, employees, agents and instrumentalities from any and all liability, losses or damages, including attorney's fees and costs of defense, which the City or its officers, employees, agents or instrumentalities may incur as a result of claims, demands, suits, causes of actions or proceedings of any kind or nature arising out of, relating to or resulting from the performance of the agreement by the contractor or its employees, agents, servants, partners, principals or subcontractors. The contractor shall pay all claims and losses in connection therewith, and shall investigate and defend all claims, suits or actions of any kind or nature in the name of the City, where applicable, including appellate proceedings, and shall pay all costs, judgments, and attorney's fees which may be incurred thereon. The contractor expressly understands and agrees that any insurance protection required by this Agreement or otherwise provided by the contractor shall in no way limit the responsibility to indemnify, keep and save harmless and defend the City or its officers, employees, agents and instrumentalities as herein provided. The above indemnification provisions shall survive the expiration or termination of this Agreement. 31. CONTRACT EXTENSION. The City reserves the right to require the Contractor to extend contract past the stated termination date for a period of up to 120 calendar days in the event that a subsequent contract has not yet been awarded. Additional extensions past the 120 calendar days may occur as needed by the City and as mutually agreed upon by the City and the contractor. 32. 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) calendar days after opening of the proposals, whichever is earlier. Additionally, Contractor agrees to be in full compliance with Florida Statute 119.0701 including, but not limited to, agreement to (a) Keep and maintain public records that ordinarily and necessarily would be required by the public agency in order to perform the services; (b) provide the public with access to public records on the same terms and conditions that the public agency would provide the records and at a cost that does not exceed the cost provided in this chapter or as otherwise provided by law; (c) Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law; (d) Meet all requirements for retaining public records and transfer, at no cost, to the public agency all public records in possession of the contractor upon termination of the contract and destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. All records stored electronically must be provided to the public agency in a format that is compatible with the information technology systems of the public agency. RFC) 201 043-WvG 8 33. 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. 34. EXCEPTIONS TO RFQ. Proposers must clearly indicate any exceptions they wish to take to any of the terms in this RFQ, 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 acceptor 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 RFQ to which Proposer took exception to (as said term and/or condition was originally set forth on the RFQ). 35. 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 to improperly influence him/her in the discharge of his official duties. • RFQ 201 5-043-WG t_`,,,;A/\/,{ BEACH SECTION 0300 PROPOSAL SUBMITTAL INSTRUCTIONS AND FORMAT 1. SEALED RESPONSES. One original Proposal (preferably in 3-ring binder) must be submitted in an opaque, sealed envelope or container on or before the due date established for the receipt of proposals. Additionally, ten (10) bound copies and one (1) electronic format (CD or USB format) are to be submitted. The following information should be clearly marked on the face of the envelope or container in which the proposal is submitted: solicitation number, solicitation title, Proposer name, Proposer return address. Proposals received electronically, either through email or facsimile, are not acceptable and will be rejected. Proposals are to be delivered to City of Miami Beach Procurement Department, 1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139. 2. LATE BIDS. Bid Proposals are to be received on or before the due date established herein for the receipt of Bids. Any Bid received after the deadline established for receipt of proposals will be considered late and not be accepted or will be returned to Proposer unopened. The City does not accept responsibility for any delays, natural or otherwise. 3. PROPOSAL FORMAT. In order to maintain comparability, facilitate the review process and assist the Evaluation Committee in review of proposals, it is strongly recommended that proposals be organized and tabbed in accordance with the sections and manner specified below. Hard copy submittals should be tabbed as enumerated below and contains a table of contents with page references. Electronic copies should also be tabbed and contain a table of contents with page references. Proposals that do not include the required information will be deemed non- responsive and will not be considered. U. '� Via: Cover Letter& Minimum Qualifications Requirements 1.1 Cover Letter and Table of Contents. The cover letter must indicate Proposer and Proposer Primary Contact for the purposes of this solicitation. Additionally, the Cover Letter must state which category of audit(resort tax audit or internal audits) the proposal is intended. Those Proposers wishing to submit proposals for both categories must submit two proposals—one for each category. 1.2 Proposal Certification, Questionnaire & Requirements Affidavit (Appendix A). Attach Appendix A fully completed and executed. 1.3 Minimum Qualifications Requirements. Submit verifiable information documenting compliance with the minimum qualifications requirements established in Appendix C, Minimum Requirements and Specifications. Y Y .K i{" . -7 Experience &Qualifications 2.1 Qualifications of Proposer. Submit detailed information regarding the firm's history and relevant experience and proven track record of providing the scope of services similar as identified in this solicitation, including experience in providing similar scope of services to public sector agencies. For each project that the Proposer submits as evidence of similar experience, the following is required: project description, agency name, agency contact, contact telephone & email, and year(s) and term of engagement. If the proposer is an individual, rather than a firm, the same information is to be provided. 2.2 Qualifications of Proposer Team. Provide an organizational chart of all personnel and consultants to be used if awarded, the role that each team member will play in providing the services detailed herein and each team members' qualifications. A resume of each individual, including education, experience, and any other pertinent information, shall be included for each Proposal team member to be assigned to this contract. Note: After proposal submittal, the City reserves the right to require additional information from Proposers (or Proposer team members or sub-consultants) to determine: qualifications (including, but not limited to, litigation history, regulatory action, or additional references); and financial capability (including, but not limited to, annual reviewed/audited financial statements with the auditors notes for each of their last two complete fiscal years). RFC) 201 5-043 WG 10 SECTION 0400 PROPOSAL EVALUATION 1. Evaluation Committee. An Evaluation Committee, appointed by the City Manager, shall meet to evaluate each Proposal in accordance with the requirements set forth in the solicitation. If further information is desired, Proposers may be requested to make additional written submissions of a clarifying nature or oral presentations to the Evaluation Committee. The evaluation of proposals will proceed in a two-step process as noted below. It is important to note that the Evaluation Committee will score the qualitative portions of the proposals only. The Evaluation Committee does not make an award recommendation to the City Manager. The results of Step 1 & Step 2 Evaluations will be forwarded to the City Manager who will utilize the results to make a recommendation to the City Commission. 2. Step 1 Evaluation. The first step will consist of the qualitative criteria listed below to be considered by the Evaluation Committee. The second step will consist of quantitative criteria established below to be added to the Evaluation Committee results by the Department of Procurement Management. An Evaluation Committee, appointed by the City Manager, shall meet to evaluate each Proposal in accordance with the qualifications criteria established below for Step 1, Qualitative Criteria. In doing so, the Evaluation Committee may: • review and score all proposals received, with or without conducting interview sessions; or a review all proposals received and short-list one or more Proposers to be further considered during subsequent interview session(s) (using the same criteria). • Proposals shall be evaluated in accordance with the following evaluation criteria (in no particular order or weight): ® Qualifications of the proposing firm • Similar project experience • References ® Team member qualifications • Financial capacity • Litigation History ® or Other Factors or Information Requested under this RFQ. • =riTa i �PQ . r Sao 4 3. Step 2 Evaluation. Following the results of Step 1 Evaluation of qualitative criteria, the Proposers may receive - -• additional quantitative criteria points to be added by the Department of Procurement-Management to those points earned in Step 1, as follows. Step Quantitative Crteria _.4 � x �` a � � . T.cam F. « ,_ r`,' . `-�.•»,YL$ Veterans Preference 5 ,- 'l 'GQTTAtr401 J BE,5,STE _POII TS 5 ' RFQ 2O i5-O 3 VVG i { en ;,,,,,1 ,,,A, ,A, p,r...r-A(-1,4 5. Determination of Final Ranking. At the conclusion of the Evaluation Committee Step 1 scoring, Step 2 Points will be added to each evaluation committee member's scores by the Department of Procurement Management. Step 1 and 2 scores will be converted to rankings in accordance with the example below: y.,e..�-d-G'''am ds•-'. .r.4��y.�.`iK�s-'��+r �'c�-.- � ,T£x�°C.+��t 1�.�.�5-3'<�s�-33�zy,�.-'��a;.5'G '%'�z*s ,z,:i:i.;;� 6 7 r�x""_,_i?�p�Y x f�. t f s}zc r a X ira'"�� i 3��' -ta.; rs�•..:�,,��x�.c�x� IY'��r-�iPS�poseE��,..�RPropOSefB;��#�•-.s�.yP�ro�icSer(:?z I I Step 1 Points ! 82 76 I 80 Step 2 I i Points 22 t 15 I 12 Committee Total I 1041 91 I 92 Member 1 Rank 1 1 3 2 Step 1 Points 79 85 72 Step 2 Points 22 15 12 Committee Total I 101 1 100 I 84 Member 2 Rank 1 I 2 3 Step 1 Points 80 , 74 66 • Step 2 Points 22 15 12 Committee Total I 102 I 89 I 78 Member 2 Rank I 1 I 2 3 wu-; firesrs.A.--'-� .,' ;,�,.sc rt. V a yIA x r, —'"*3' '`' "$'#«;e 4 tf—S411,9,109,9r2g.a—te- S°T,WAV r � t41-, �„� �"'. il`N4.- S° t �� Ytt 's ` 5. s' 19s ,'f?..sx.L 'n`"�is�'; l *Final Ranking is presented to the City Manager for further due diligence and recommendation to the City Commission. Final Ranking does not constitute an award recommendation until such time as the City Manager has made his recommendation to the City Commission. which may be different than final ranking results. RFQ 201 043-WG 12 APPENDIX A RAIA,M1 F AC H Proposal Certification , Questionnaire & Requirements Affidavit 2015-043-WG AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED '- PROCUREMENT DEPARTMENT 1 700 Convention Center Drive Miami Beach, Florida 33139 Solicitation No: Solicitabon Title: 2015-043-VVG AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED Procurement Contact: Tel: I Email: William Garviso 1 305.673.7000 x 6650 i williamgarviso©miamibeachfl.gov PROPOSAL CERTIFICATION, QUESTIONNAIRE & REQUIREMENTS AFFIDAVIT Purpose: The purpose of this Proposal Certification, Questionnaire and Requirements Affidavit Form is to inform prospective Proposers of certain solicitation and contractual requirements, and to collect necessary information from Proposers in order that certain portions of responsiveness, responsibility and other determining factors and compliance with requirements may be evaluated. This Proposal Certification, Questionnaire and Requirements Affidavit Form is a REQUIRED FORM that must be submitted fully completed and executed. General Proposer Information. PROPOSER NAME: No of Years in Business: No of Years in Business Locally: No.of Employees: OTHER NAME(S)PROPOSER HAS OPERATED UNDER IN THE LAST 10 YEARS: PROPOSER PRIMARY ADDRESS(HEADQUARTERS): CITY: STATE: ZIP CODE: TELEPHONE NO.: TOLL FREE NO.: FAX NO.: FIRM LOCAL ADDRESS: CITY: STATE: ZIP CODE: PRIMARY ACCOUNT REPRESENTATIVE FOR THIS ENGAGEMENT: ACCOUNT REP TELEPHONE NO.: ACCOUNT REP TOLL FREE NO.: ACCOUNT REP EMAIL: FEDERAL TAX IDENTIFICATION NO.: The City reserves the right to seek additional information from Proposer or other source(s),including but not limited to: any firm or principal information, applicable licensure, resumes of relevant individuals, client information; financial information, or any information the City deems necessary to evaluate the capacity of the Proposer to perform in accordance with contract requirements. 14 1. Veteran Owned Business.Is Proposer claiming a veteran owned business status? �IYES I INO • 1 SUBMITTAL REQUIREMENT: Proposers claiming veteran owned business status shall submit a documentation proving that firm is certified as a veteran-owned business or a service-disabled veteran owned business by the State of Florida or United States federal government, as required pursuant to ordinance 2011-3748. • 2. 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. SUBMITTAL REQUIREMENT: Proposers must disclose 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. Proposers must also 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 3. References & Past Performance. Proposer shall submit at least three (3) references for whom the • Proposer has completed work similar in size and nature as the work referenced in solicitation. SUBMITTAL REQUIREMENT: For each reference submitted, the following information is required: 1) Firm Name,2)Contact Individual Name&Title,3)Address,4)Telephone,5)Contact's Email and 6)Narrative on Scope of Services Provided. 4. Litigation History.Proposer shall submit a statement of any litigation or regulatory action that has been filed against your firm(s) in the last five years. If an action has been filed, state and describe the litigation or regulatory action filed, and identify the court or agency before which the action was instituted, the applicable case or file number, and the status or disposition for such reported action. If no litigation or regulatory action has been filed against your firm(s),provide a statement to that effect. If No litigation or regulatory action has been filed against your firm(s),please provide a statement to that effect.Truthful and complete answers to this question may not necessarily disqualify a firm from consideration but will be a factor in the selection process. Untruthful, misleading or false answers to this question shall result in the disqualification of the firm for this project. SUBMITTAL REQUIREMENT: Proposer shall submit history of litigation or regulatory action filed against proposer, or any proposer team member firm, in the past 5 years. If Proposer has no litigation history or regulatory action in the past 5 years,submit a statement accordingly. 5. Suspension,Debarment or Contract Cancellation.Has Proposer ever been debarred,suspended or other legal violation,or had a contract cancelled due to non-performance by any public sector agency? YES NO SUBMITTAL REQUIREMENT: If answer to above is"YES,"Proposer shall submit a statement detailing the reasons that led to action(s). 15 ...................................�_....._..._....__....._........:...».__.»�.....__...�......,..�.«...,....-,.....,..»...a.xx+..a»..n.,- .rv,.,ea.•anv:.�v..uueew m� 6. Vendor Campaign Contributions. 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. SUBMITTAL REQUIREMENT: Submit the names of all individuals or entities (including your sub- consultants) with a controlling financial interest as defined in solicitation. For each individual or entity with a controlling financial interest indicate whether or not each individual or entity has contributed to the campaign either directly or indirectly, of a candidate who has been elected to the office of Mayor or City Commissioner for the City of Miami Beach. 7. 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 proposal/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. SUBMITTAL REQUIREMENT: Proposer shall submit firm's Code of Business Ethics. In lieu of submitting Code of Business Ethics, Proposer may submit a statement indicating that it will adopt, as required in the ordinance,the City of Miami Beach Code of Ethics,available at www.miamibeachfl.gov/procurement/. 8. Agreement,the hourly living wage rates listed below: $11.28/hourly with health benefits. Hcwevcr, The City Commission approval Ordinance 2014 3897 on Scpter c _•, • '. •: - ••e - - - - : •e- • January 1, 2015. annually for inflation using the Consumer Price Index for all Ur-ban Qensurnccs(CPI U)Miami/Ft.Lauderdale, issued by The U.S. Department of Labors Burecu of Labor Statistics. Neh,vithstanding the preceding;-no wage rate in any particular year, if it determines it would not be fiscally sound to implement same (in a particular year). .. WI-1i the City may;'at its so'- :: •:•, • •••_-- - ••••• • - ete •-• --• •.-, - - • - _•-• vtivw.rniamibeachfl.govlprocurcment". SUBMITTAL REQUIREMENT: No additional submittal is required. By virtue of executing this affidavit document,Proposer agrees to the living wage requirement. • 16 9. Equal Benefits for Employees with Spouses and Employees with Domestic Partners.When awarding competitively solicited contracts valued at over$100;000 whose contractors maintain 51 or more full time employees on their payrolls during 20 or more calendar work weeks, the Equal Benefits for Domestic Partners Ordinance 2005-3494 requires certain contractors doing business with the City of Miami Beach, who are awarded a contract pursuant to competitive proposals, to provide "Equal Benefits" to their employees with domestic partners,as they provide to employees with spouses.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. A. Does your company provide or offer access to any benefits to employees with spouses or to spouses of • employees? YES NO B. Does your company provide or offer access to any benefits to employees with (same or opposite sex) domestic partners*or to domestic partners of employees? YES NO • • Ia 17 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 Firm Provides for Firm Provides for, Firm does not Employees with Employees with I Provide Benefit Spouses Domestic Partners I Health I Sick Leave f Family Medical Leave I I Bereavement Leave I I I If Proposer cannot offer a benefit to domestic partners 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 and submit a completed Reasonable Measures Application (attached) with all necessary documentation. Your Reasonable Measures Application will be reviewed for consideration by the City Manager, or his designee. Approval is not guaranteed and the City Manager's decision is final. Further information on the Equal Benefits requirement is available at www.miamibeachfl.gov!procurementl. 10. Public Entity Crimes. Section 287.133(2)(a), Florida Statutes, as currently enacted or as amended from time to time, states that a person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a proposal, proposal,or reply on a contract to provide any goods or services to a public entity;may not submit a proposal,proposal, or reply on a contract with a public entity for the construction or repair of a public building or public work; may not submit proposals, proposals, or replies on leases of real property to a public entity; may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity; and may not transact business with any public entity in excess of the threshold amount provided in s. 287.017 for CATEGORY TWO for a period of 36 months following the date of being placed on the convicted vendor list. SUBMITTAL REQUIREMENT: No additional submittal is required. By virtue of executing this affidavit document, Proposer agrees with the requirements of Section 287.133, Florida Statutes, and certifies it has not been placed on convicted vendor list, 11. Acknowledgement of Addendum. After issuance of solicitation, the City may release one or more addendum to the solicitation which may provide additional information to Proposers or alter solicitation requirements. The City will strive to reach every Proposer having received solicitation through the City's e- procurement system, PublicPurchase.com. However, Proposers are solely responsible.for..assuring they • have received any and all addendum issued pursuant to solicitation. This Acknowledgement of Addendum section certifies that the Proposer has received all addendum released by the City pursuant to this solicitation. Failure to obtain and acknowledge receipt of all addendum may result in proposal disqualification, Initial to Confirm I Initial to Confirm Initial to Confirm Receipt ! Receipt Receipt { Addendum 1 I Addendum 6 Addendum 11 ( Addendum 2 I Addendum 7 Addendum 12 Addendum 3 j Addendum 8 Addendum 13 I Addendum 4 Addendum 9 Addendum 14 Addendum 5 I Addendum 10 Addendum 15 If additional confirmation of addendum is required,submit under separate cover. 18 ;2 .y.2W1G8,ss-'� L..[�' Y. Y L y' =a 1 .[' �i - u iMIN;a y,� ;,wad DISCOSl1RErAND QISCLAIMER.SEGTIONAI L� .¢�L MM...... The solicitation referenced herein 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 solicitation,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 solicitation,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 solicitation either before or after receiving proposals, may accept or reject proposals, and may accept proposals which deviate from the solicitation, 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 solicitation. Following submission of a Bid or 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 solicitation. 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 solicitation 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 solicitation, the selection and the award process, or whether any award will be made. Any recipient of this solicitation 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 solicitation are submitted at the sole risk and responsibility of the party submitting such Proposal. This solicitation 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 solicitation 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 proposal form and shall remain confidential to the extent permitted by Florida Statutes, until the 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 solicitation. 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 solicitation, 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 solicitation, 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. 19 In the event of any differences in language between this Disclosure and Disclaimer and the balance of the solicitation, it is understood that the provisions of this Disclosure and Disclaimer shall always govern. The solicitation and any disputes arising from the solicitation shall be governed by and construed in accordance with the laws of the State of Florida. • • • • 20 it i 1 �-`.e �',�v G��'�{�. ,��& mod.--.�rye,✓-�+r S,.a�*:,� :a T r r i3-�:.� e��.�xl-t .-� .( �. , r.� ,: : i PROPOSER CERTIFICATION S YY-•fir..d+a• .ff.'mod. i-*- ...x_F�! -.s-ra,•: 5.7- .; li a" +-�,i -•:y�-5�1)}.3.t �. •�Ta.{_i •=t t -, _ I hereby certify that: I, as an authorized agent of the Proposer, am submitting the following information as my firm's proposal; Proposer agrees to complete and unconditional acceptance of the terms and conditions of this document, inclusive of this solicitation, all attachments, exhibits and appendices and the contents of any Addenda released hereto, and the Disclosure and Disclaimer Statement; Proposer agrees to be bound to any and all specifications, terms and conditions contained in the solicitation, and any released Addenda and understand that the following are requirements of this solicitation and failure to comply will result in disqualification of proposal submitted; Proposer has not divulged, F discussed,or compared the proposal with other Proposers and has not colluded with any other Proposer or party to any other proposal; Proposer acknowledges that all information contained herein is part of the public domain as defined by the State of Florida Sunshine and Public Records Laws; all responses, data and information contained in this proposal, inclusive of the Proposal Certification, Questionnaire and Requirements Affidavit are true and accurate. Name of Proposer's Authorized Representative: i Title of Proposer's Authorized Representative: Signature of Proposer's Authorized Representative: Date: State of ) On this day of ,20_,personally appeared before me who County of ) stated that (s)he is the of , a corporation, and that the instrument was signed in behalf of the said corporation by authority of its board of directors and acknowledged said instrument to be its voluntary act and deed. Before me: Notary Public for the State of My Commission Expires: Il 21 • • APPENDIX B „4„-, NA ! A " No Bid Form 2015-043-W G AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED PROCUREMENT DEPARTMENT 1700 Convention Center Drive Miami Beach, Florida 33139 r, I; i* ` o ' `'ekifij*ffo!hi,t,04. e li ## � o 'hove voided. tt � 'fie a ge t teme .� o S en (of No provides he , t information' on tow - `�" r� solicitation roc f k Q � r. Statement of No Bid )2 • WE HAVE ELECTED NOT TO SUBMIT A PROPOSAL AT THIS TIME FOR REASON(S) CHECKED AND/OR INDICATED BELOW: Workload does not allow us to proposal Insufficient time to respond Specifications unclear or too restrictive Unable to meet specifications Unable to meet service requirements Unable to meet insurance requirements Do not offer this product/service OTHER. (Please specify) _$.S+°.:.�}✓-ikii!+'Pi?164t'1�.'?."i17.3�=if:J3,Gi.:-.'s`t�a+.•-.L!?'� +°S"a'i i?F"-'.K.'�9i:F:t93!f.:2L-ifiMr.!i*,T 4+i4:25'43„1:'sYAr?.: n:'.'SwS?iYiti.�Sh.4 Y'�!4.s.�'-!i�4'.?/ rs'::.;N-Y�'Y�M irFC.c1t=K,YV'G:i12vi!.Y= We do_ do not_want to be retained on your mailing list for future proposals of this type product and/or service. Signature: Title: Legal Company Name: Note: Failure to respond, either by submitting a proposal or this completed form, may result in your company being removed from our vendors list. PLEASE RETURN TO: CITY OF MIAMI BEACH PROCUREMENT DEPARTMENT ATTN: William Garviso RFQ PROPOSAL#2015-043-WG 1700 Convention Center Drive MIAMI BEACH, FL 33139 APPENDIX C ,M I AIM 1 Minimum Requirements & Specifications 201 5-043-WG AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED PROCUREMENT DEPARTMENT 1700 Convention Center Drive Miami Beach, Florida 33139 Cl.• RESORT TAX AUDITS—MINIMUM REQUIREMENTS AND PROJECT SPECIFICATIONS. C1.1 — Minimum Requirements for Resort Tax Audits. The Minimum Eligibility Requirements for this category are listed below. Proposer shall submit detailed verifiable information affirmatively documenting compliance with each minimum requirement. Proposers that fail to comply with minimum requirements will be deemed non-responsive and will not be considered. A. Proposer must be registered to do business within the State of Florida for a period of not less than one(1) prior to the due date for receipt of proposals. B. For audits of resort tax businesses, the respondent must have at least three (3) years of experience in audits of revenues for hotels, restaurants, nightclubs and apartment buildings. For each experience proposer must submit as evidence: contact name, telephone number,email and year(s) of experience for verification purposes. C. Proposer must maintain a permanent office within Miami-Dade, Broward or Palm Beach County upon award of contract, documented through a Business Tax Receipt, Occupational License or its equivalent. C1.2 — Project Specifications for Resort Tax Audits. Audits are to be performed on businesses registered with the City for collecting resort taxes. The scope of the work consists of examining the taxpayer's accounting records, such as general ledgers, cash receipts journals, sales journals, and other records as may be maintained by the taxpayer; comparison of reported taxable sales with other reports such as Florida sales tax reports, and the preparation of schedules and analyses of work to determine compliance with the City Code relating to the collection and payment. All taxpayers' records which are subject to, determined to be, or administered by the Resort Tax codes are examined. Detailed testing is performed on a sample basis. Contractor is to follow the City's Internal Audit programs for auditing resort tax businesses. There are separate programs for the annual filing and,the monthly filing accounts. Revenues reported in monthly filing accounts may vary by containing revenues from rooms, food and or alcohol. City forms and audit programs are attached as exhibits and will be provided in • - electronic format. Also included in the work to be performed is the initial contact with the business and the performance of an audit which results in the issuance of a resolution letter stating the results of the audit. Each audit is completed by the submission of work papers and a resolution letter to the Internal Auditor for final review and approval. The Internal Audit Department will assign these audits. Audit period for each audit assignment is three years. It is anticipated that the total number of audits assigned to the contractors will be about 70 audits per year. • C2. INTERNAL AUDITS—MINIMUM REQUIREMENTS AND PROJECT SPECIFICATIONS. C2.1 — Minimum Requirements for Internal Audits. The Minimum Eligibility Requirements for this category are listed below. Proposer shall submit detailed verifiable information affirmatively documenting compliance with each minimum requirement. Proposers that fail to comply with minimum requirements will be deemed non-responsive and will not be considered. A. Proposer must be registered to do business within the State of Florida for a period of not less than one (1) prior to the due date for receipt of proposals. B. The respondent must have three (3) years of experience providing ALL of the following services to governmental and/or public sector agencies: a. Internal Financial Audits b. Internal Operational Audits c. Forensic Audits For each experience (a-c), proposer must submit as evidence: agency name, brief scope of work provided, contact name, contact telephone number, contact email and year(s) of experience for verification purposes. C. Proposer must be a member of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. D. Proposer must maintain a permanent office within Miami-Dade, Broward or Palm Beach County upon award of contract, documented through a Business Tax Receipt, Occupational License or its equivalent. C2.2 — Project Specifications for Internal Audits. The scope of the work for internal audits will be contingent to the type of audit requested. Types of audits which maybe requested will comprise of Financial Audits, Attestation Engagements (includes examinations, review or agreed upon procedures), and Performance Audits. Audit work should be performed in accordance to governmental auditing standards. In addition, Forensic Audits may be requested. Contractor is to develop audit programs for the scope of work provided. Audit findings are to be presented to the City Administration. Prior to authorizing work on an internal audit, the successful proposers will be required to submit a price proposal based on the number of hours estimated to complete the work and a price per hour that is less than or equal to the per hour proposal price. The City shall, at its sole option, determine whether to proceed with the scope of work. Each audit is completed by the submission a final report accepted by the City. ... ...,.....................�.._._.......�_._.._._..�:............._»......�..v-+e....+s.r+s.......rams.awers.ww.a'ai:a:.atwA'GS.�O:.xav=.x:-��.T':m:uRhC'.�.'.ciri APPENDIX D • Si Special 2015-043-W G AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED PROCUREMENT DEPARTMENT 1700 Convention Center Drive Miami Beach, Florida 33139 1. INDEPENDENCE OF AUDITORS. All parties must be independent of the City as defined by generally accepted auditing standards and Government Auditing Standards. 2. TERM OF CONTRACT. The contract shall commence upon the date of notice of award and shall be effective for two (2) years. 3. OPTION TO RENEW. The City, through its City Manager, will have the option to extend for three (3) additional one-year periods subject to the availability of funds for succeeding fiscal years. Continuation of the contract beyond the initial period is a City prerogative; not a right of the bidder. This prerogative will be exercised only when such continuation is clearly in the best interest of the City. 5. FAILURE TO PERFORM. Should it not be possible to reach the contractor or supervisor and/or should remedial action not be taken within 48 hours of any failure to perform according to specifications, the City reserves the right to declare Contractor in default of the contract or make appropriate reductions in the contract payment. 6. ADDITIONAL SERVICES. Services not specifically identified in this request may be added to any resultant contract upon successful negotiations (including fees) and mutual consent of the contracting parties. The Purchase Order shall act as the contract amendment authorizing the additional services. 7. RECORDS. During the contract period, and for at least five (5) subsequent years thereafter, Successful Proposer shall provide the City access to all files and records maintained on the City's behalf. APPENDIX E 44-1 A rtr. All I A IV\ E H Sample Agreement 2015-043-WG AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED PROCUREMENT DIVISION 1700 Convention Center Drive Miami Beach, Florida 33139 APPENDIX E PROPOSAL TENDER FORM PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND [FILL IN CONSULTANT NAME] FOR [XXXXXXXXXXXXXXXX], PURSUANT TO [FILL IN RFQ, RFQ, OR ITB#] This Professional Services Agreement ("Agreement") is entered into this XXXXXX day of XXX)(XXXXXXXX, 2010, between the CITY OF MIAMI BEACH, FLORIDA, a municipal corporation organized and existing under the laws of the State of Florida, having its principal offices at 1700 Convention Center Drive, Miami Beach, Florida, 33139 ("City"), and [FILL IN CONSULTANT NAME], a [FILL IN TYPE OF ENTITY/I.E. CORPORATION, LLC, ETC.], whose address is XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX(Consultant). SECTION 1 DEFINITIONS Agreement: This Agreement between the City and Consultant, including any exhibits and amendments thereto. City Manager: The chief administrative officer of the City. Consultant: For the purposes of this Agreement, Consultant shall be deemed to be an independent contractor, and not an agent or employee of the City. Services: All services, work and actions by the Consultant performed or undertaken pursuant to the Agreement. Fee: Amount paid to the Consultant as compensation for Services. Proposal Documents: Proposal Documents shall mean City of Miami Beach [FILL IN RFQ, RFQ, OR ITB] No. [XXXXXXXXXXXXXX] for [XXXXXXXXXXXXXXXXXXXXXX], together with all amendments thereto, issued by the City in contemplation of this Agreement [FILL IN CORRECT ABBREVIATION RFQ, RFQ, OR ITB], and the Consultant's proposal in response thereto (Proposal), all of which are hereby incorporated and made a part hereof; provided, however, that in the event of an express conflict between the Proposal Documents and this Agreement, the following order of precedent shall prevail: this Agreement; the [FILL IN RFQ, RFQ, or ITB]; and the Proposal. Risk Manager: The Risk Manager of the City, with offices at 1700 Convention Center Drive, Third Floor, Miami Beach, Florida 33139: telephone number(305) 673-7000, Ext. 6435: and fax number (305) 673-7023. l' ... .......... SECTION 2 SCOPE OF SERVICES (SERVICES) 2.1 In consideration of the Fee to be paid to Consultant by the City, Consultant shall provide the work and services described in Exhibit"A" hereto (the Services). [NOTE: EXHIBIT"A" MUST INCLUDE DETAILED DESCRIPTION OF SERVICES] 2.2 Consultant's Services, and any deliverables incident thereto, shall be completed in accordance with the timeline and/or schedule in Exhibit [XXX] hereto. [NOTE: TIMELINE FOR DELIVERABLES CAN ALSO BE INCLUDED IN EXHIBIT"A" OR IN SEPARATE EXHIBIT] SECTION 3 TERM The term of this Agreement (Term) shall commence upon execution of this Agreement by all parties hereto, and shall have an initial term of [X)CXXXXX)CXXXX], with [XXX)CXX)CXXX] renewal options, to be exercised at the City Manager's sole option and discretion, by providing Consultant with written notice of same no less than thirty (30) days prior to the expiration of the initial term. Notwithstanding the Term provided herein, Consultant shall adhere to any specific timelines, schedules, dates, and/or performance milestones for completion and delivery of the Services, as same is/are set forth in the timeline and/or schedule referenced in Exhibit fXXXI hereto. SECTION 4 FEE 4.1 In consideration of the Services to be provided, Consultant shall be compensated on a fixed fee basis, in the amount of$XXXXXXXX. 4.2 [NOTE: INCLUDE AMOUNT FOR REIMBURSABLES, IF ANY]. 4.3 [NOTE: INCLUDE HOW FEE IS TO BE PAID — I.E. "X" PERCENTAGE UP FRONT; "X" UPON DELIVERY; MONTHLY; LUMP SUM; ETC.]. 4.4 INVOICING Upon receipt of an acceptable and approved invoice, payment(s) shall be made within thirty (30) days for that portion (or those portions) of the Services satisfactorily rendered (and referenced in the particular invoice). Invoices shall include a detailed description of the Services (or portions thereof) provided, and shall be submitted to the City at the following address: SECTION 5 TERMINATION 5.1 TERMINATION FOR CAUSE If the Consultant shall fail to fulfill in a timely manner, or otherwise violates, any of the covenants, agreements, or stipulations material to this Agreement, the City, through its City Manager, shall thereupon have the right to terminate this Agreement for cause. Prior to exercising its option to terminate for cause, the City shall notify the Consultant of its violation of the particular term(s) of this Agreement, and shall grant Consultant ten (10) days to cure such default. If such default remains uncured after ten (10) days, the City may terminate this Agreement without further notice to Consultant. Upon termination, the City shall be fully discharged from any and all liabilities, duties, and terms arising out of, or by virtue of, this Agreement. Notwithstanding the above, the Consultant shall not be relieved of liability to the City for damages sustained by the City by any breach of the Agreement by the Consultant. The City, at its sole option and discretion, shall be entitled to bring any and all legal/equitable actions that it deems to be in its best interest in order to enforce the City's right and remedies against Consultant. The City shall be entitled to recover all costs of such actions, including reasonable attorneys' fees. 5.2 TERMINATION FOR CONVENIENCE OF THE CITY THE CITY MAY ALSO, THROUGH ITS CITY MANAGER, AND FOR ITS CONVENIENCE AND WITHOUT CAUSE, TERMINATE THE AGREEMENT AT ANY TIME DURING THE TERM BY GIVING WRITTEN NOTICE TO CONSULTANT OF SUCH TERMINATION; WHICH SHALL BECOME EFFECTIVE WITHIN THIRTY (30) DAYS FOLLOWING RECEIPT BY THE CONSULTANT OF SUCH NOTICE. IF THE AGREEMENT IS TERMINATED FOR CONVENIENCE BY THE CITY, CONSULTANT SHALL BE PAID FOR ANY SERVICES SATISFACTORILY PERFORMED UP TO THE DATE OF TERMINATION; FOLLOWING WHICH THE CITY SHALL BE DISCHARGED FROM ANY AND ALL LIABILITIES, DUTIES, AND TERMS ARISING OUT OF, OR BY VIRTUE OF, THIS AGREEMENT. 5.3 TERMINATION FOR INSOLVENCY The City also reserves the right to terminate the Agreement in the event the Consultant is placed either in voluntary or involuntary bankruptcy or makes an assignment for the benefit of creditors. In such event, the right and obligations for the parties shall be the same as provided for in Section 5.2. { SECTION 6 INDEMNIFICATION AND INSURANCE REQUIREMENTS 6.1 INDEMNIFICATION Consultant agrees to indemnify and hold harmless the City of Miami Beach and its officers, employees, agents, and contractors, from and against any and all actions (whether at law or in equity), claims, liabilities, losses, and expenses, including, but not limited to, attorneys' fees and costs, for personal, economic or bodily injury, wrongful death, loss of or damage to property, which may arise or be alleged to have arisen from the negligent acts, errors, omissions or other wrongful conduct of the Consultant, its officers, employees, agents, contractors, or any other person or entity acting under Consultant's control or supervision, in connection with, related to, or as a result of the Consultant's performance of the Services pursuant to this Agreement. To that extent, the Consultant shall pay all such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses, and shall pay all costs and attorneys' fees expended by the City in the defense of such claims and losses, including appeals. The parties agree that one percent (1%) of the total compensation to Consultant for performance of the Services under this Agreement is the specific consideration from the City to the Consultant for the Consultant's indemnity agreement. The provisions of this Section 6.1 and of this indemnification shall survive termination or expiration of this Agreement. 6.2 INSURANCE REQUIREMENTS [NOTE: INSURANCE TYPES AND LIMITS BELOW SHOULD ALWAYS BE SAME AS WHAT WAS SPECIFICED IN BID DOCUMENTS] The Consultant shall maintain and carry in full force during the Term, the following insurance: 1. Consultant General Liability, in the amount of$1,000,000; 2. Consultant Professional Liability, in the amount of$200,000; and 3. Workers Compensation & Employers Liability, as required pursuant to Florida Statutes. The insurance must be furnished by insurance companies authorized to do business in the State of Florida. All insurance policies must be issued by companies rated no less than "B+" as to management and not less than "Class VI" as to strength by the latest edition of Best's Insurance Guide, published by A.M. Best Company., Oldwick, New Jersey, or its equivalent. . All of Consultant's certificates shall contain endorsements providing that written notice shall be given to the City at least thirty (30) days prior to termination, cancellation or reduction in coverage in the policy. Original certificates of insurance must be submitted to the City's Risk Manager for approval (prior to any work and/or services commencing) and will be kept on file in the Office of the Risk Manager. The City shall have the right to obtain from the Consultant specimen copies of the insurance policies in the event that submitted certificates of insurance are inadequate to ascertain compliance with required coverage. The Consultant is also solely responsible for obtaining and submitting all insurance certificates for any sub-consultants. Compliance with the foregoing requirements shall not relieve the 'Consultant of the liabilities and obligations under this Section or under any other portion of this Agreement. • I ^ The Consultant shall not commence any work and or services pursuant to this Agreement until all insurance required under this Section has been obtained and such insurance has been approved by the City's Risk Manager. SECTION 7 LITIGATION JURISDICTION/VENUE/JURY TRIAL WAIVER This Agreement shall be construed in accordance with the laws of the State of Florida. This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. By entering into this Agreement, Consultant and the City expressly waive any rights either party may have to a trial by jury of any civil litigation related to or arising out of this Agreement. SECTION 8 LIMITATION OF CITY'S LIABILITY The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action, for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of $10,000. Consultant hereby expresses its willingness to enter into this Agreement with Consultant's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of$10,000. Accordingly, and notwithstanding any other term or condition of this Agreement, Consultant hereby agrees that the City shall not be liable to the Consultant for damages in an amount in excess of$10,000 for any action or claim for breach of contract arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement. Nothing contained in this section or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability, as set forth in Section 768.28, Florida Statutes. SECTION 9 [INTENTIONALLY DELETED] 'SECTION 10 GENERAL PROVISIONS 10.1 AUDIT AND INSPECTIONS Upon reasonable verbal or written notice to Consultant, and at any time during normal business hours (i.e. 9AM — 5PM, Monday through Fridays, excluding nationally recognized holidays), and as often as the City Manager may, in his/her reasonable discretion and judgment, deem necessary, there shall be made available to the City Manager, and/or such representatives as the City Manager may deem to act on the City's behalf, to audit, examine, and/or inspect, any and all other documents and/or records relating to all matters covered by this Agreement. Consultant shall maintain any and all such records at its place of business at the address set forth in the 'Notices"section of this Agreement. 10.2 [INTENTIONALLY DELETETD] 10.3 ASSIGNMENT. TRANSFER OR SUBCONSULTING Consultant shall not subcontract, assign, or transfer all or any portion of any work and/or service under this Agreement without the prior written consent of the City Manager, which consent, if given at all, shall be in the Manager's sole judgment and discretion. Neither this Agreement, nor any term or provision hereof, or right hereunder, shall be assignable unless as approved pursuant to this Section, and any attempt to make such assignment (unless approved) shall be void. 10.4 PUBLIC ENTITY CRIMES Prior to commencement of the Services, the Consultant shall file a State of Florida Form PUR 7068, Sworn Statement under Section 287.133(3)(a) Florida Statute on Public Entity Crimes with the City's Procurement Division. 10.5 EQUAL EMPLOYMENT OPPORTUNITY In connection with the performance of the Services, the Consultant shall not discriminate against any employee or applicant for employment because of race, color, national origin, religion, sex, gender identity, sexual orientation, disability, marital and familial status, or age. 10.6 CONFLICT OF INTEREST The Consultant herein agrees to adhere to and be governed by all applicable Miami-Dade County Conflict of Interest Ordinances and Ethics provisions, as set forth in the Miami-Dade County • Code, and as may be amended from time to time; and by the City of Miami Beach Charter and Code (as some may be amended from time to time); both of which are incorporated by reference herein as if fully set forth herein. The Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirectly, which could conflict in any manner or degree with the performance of the Services. The Consultant further covenants that in the performance of this Agreement, no person having any such interest shall knowingly be employed by the Consultant. No member of or delegate to the Congress of the United States shall be admitted to any share or part of this Agreement or to any benefits arising there from. 10.7 TRAVEL No travel expenses will be allowable for the routine provision of resort tax or internal audits. In the event that the City assigns a project to a Consultant that requires travel, all travel in connection with this Agreement must be pre-approved by the City. All travel expenses will be reimbursed in accordance with the requirements of Section 112.061, Florida Statutes. SECTION 11 NOTICES All notices and communications in writing required or permitted hereunder, shall be delivered personally to the representatives of the Consultant and the City listed below or may be mailed by U.S. Certified Mail, return receipt requested, postage prepaid, or by a nationally recognized overnight delivery service. Until changed by notice in writing, all such notices and communications shall be addressed as follows: TO CONSULTANT: [FILL IN] TO CITY: [FILL IN] Notice may also be provided to any other address designated by the party to receive notice if such alternate address is provided via U.S. certified mail, return receipt requested, hand delivered, or by overnight delivery. In the event an alternate notice address is properly provided, notice shall be sent to such alternate address in addition to any other-address which notice would otherwise be sent, unless other delivery instruction as specifically provided for by the party entitled to notice. Notice shall be deemed given on the day on which personally served, or the day of receipt by either U.S. certified mail or overnight delivery. SECTION 12 MISCELLANEOUS PROVISIONS 12.1 CHANGES AND ADDITIONS This Agreement cannot be modified or amended without the express written consent of the parties. No modification, amendment, or alteration of the terms or conditions contained herein shall be effective unless contained in a written document executed with the same formality and of equal dignity herewith. 12.2 SEVERABILITY If any term or provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall not be affected and every other term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 12.3 ENTIRETY OF AGREEMENT The City and Consultant agree that this is the entire Agreement between the parties. This Agreement supersedes all prior negotiations, correspondence, conversations, agreements or understandings applicable to the matters contained herein, and there are no commitments, agreements or understandings concerning the subject matter of this Agreement that are not contained in this document. Title and paragraph headings are for convenient reference and are not intended to confer any rights or obligations upon the parties to this Agreement. 12.4 CONSULTANT'S COMPLIANCE WITH FLORIDA PUBLIC RECORDS LAW Pursuant to Section 119.0701 of the Florida Statutes, if the Consultant meets the definition of "Contractor" as defined in Section 119.0701(1)(a), the Consultant shall: a) Keep and maintain public records that ordinarily and necessarily would be required by the public agency in order to perform the service; b) Provide the public with access to public records on the same terms and conditions that the public agency would provide the records and at a cost that does not exceed the cost provided in this chapter or as otherwise provided by law; c) Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law; and d) Meet all requirements for retaining public records and transfer to the City, at no City cost, all public records created, received, maintained and/or directly related to the performance of this Agreement that are in possession of the Consultant upon termination of this Agreement. Upon termination of this Agreement, the Consultant shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. All records stored electronically must be provided to the City in a format that is compatible with the information technology systems of the City. For purposes of this Article, the term 'public records" shall mean all documents, papers, letters, maps, books, tapes, photographs, films, sound recordings, data processing software, or other material, regardless of the physical form, characteristics, or means of transmission, made or received pursuant to law or ordinance or in connection with the transaction of official business of the City. _ .. Consultant's failure to comply with the public records disclosure requirement set forth in Section 119.0701 of the Florida Statutes shall be a breach of this Agreement. In the event the Consultant does not comply with the public records disclosure requirement set forth in Section 119.0701 of the Florida Statutes, the City may, at the City's sole discretion, avail itself of the remedies set forth under this Agreement and available at law. [REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK] • • IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their appropriate officials, as of the date first entered above. FOR CITY: CITY OF MIAMI BEACH, FLORIDA ATTEST: By: City'Clerk Mayor FOR CONSULTANT: [INSERT NAME] ATTEST: By: Secretary President Print Name Print Name /Title t I APPENDIX F tt" t, „.3\r, v A . t k " Insurance Requirements 2015-043-WG AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED PROCUREMENT DIVISION 1700 Convention Center Drive Miami Beach, Florida 33139 IA A tAk 30-- A ir PROFESSIONAL SERVICES The provider shall furnish to the Human Resources Department, Risk Management Division, City of Miami Beach, 1700 Convention Center Drive, 3`d Floor, Miami Beach, Florida 33139, Certificate(s) of Insurance which indicate that insurance coverage has been obtained which meets the requirements as outlined below: A. Worker's Compensation and Employer's Liability Insurance for all employees of the provider as required by Florida Statute 440. B. Commercial General Liability on a comprehensive basis in an amount not less than $1,000,000 combined single limit per occurrence, for bodily injury and property damage. City of Miami Beach must be shown as an additional insured with respect to this coverage. C. Professional Liability Insurance in an amount not less than $1,000,000 with the deductible per claim, if any, not to exceed 10% of the limit of liability. The insurance coverage required above must include a waiver of subrogation in favor of the City. The insurance coverage required shall include those classifications, as listed in standard liability insurance manuals, which most nearly reflect the operations of the provider. All insurance policies required above shall be issued by companies authorized to do business under the laws of the State of Florida, with the following qualifications: The company must be rated no less than "B+" as to management, and no less than "Class VII" as to financial strength, by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent, subject to the approval of the City Risk Management Division. or The company must hold a valid Florida Certificate of Authority as shown in the latest "List of All Insurance Companies Authorized or Approved to Do Business in Florida" issued by the State of Florida Department of Insurance and are members of the Florida Guaranty Fund. Certificates will indicate no modification or change in insurance shall be made without thirty (30) days advance notice to the certificate holder. • CERTIFICATE HOLDER MUST READ: CITY OF MIAMI BEACH 1700 CONVENTION CENTER DRIVE 3rd FLOOR MIAMI BEACH, FL 33139 Compliance with the foregoing requirements shall not relieve the vendor of his liability and obligation under this section or under any other section of this agreement. • APPENDIX G • - B F - Sample Audit Programs for Resort Tax Audits 201 5-043-WG AUDITS OF RESORT .TAXES ANDOTHER.. INTERNAL AUDITS AS NEEDED PROCUREMENT DIVISION 1700 Convention Center Drive Miami Beach, Florida 33139 it APPENDIX G SAMPLE AUDIT PROGRAMS FOR RESORT TAX AUDITS To Follow CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS PRELIMINARY WORK NOTIFICATION LETTER: PRE-AUDIT INTERVIEW: AUDIT INTERVIEW QUESTIONNAIRE FOOD &ALCOHOL OPERATIONS Business Name: Date: What are your business hours and days of)operation? What is the seating/occupancy capacity? How many employees are there? Do you provide complimentary employee meals? Do you provide discounted employee meals? If yes, % of discount: How many cash registers/ POS Terminals are there? What system do you use? What internal daily records do you keep? Guest Checks Register Tapes POS Report (daily and monthly) Do you have promotional/complimentary("house") charges: Yes ( ) No ( ) If yes, approximately what% of total sales is this? How does your system work? 1 2. 3. 4. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS PRE-AUDIT INTERVIEW (NOTE: To be performed at least two (2)weeks prior to audit commencement date). I DATE I INTIALS 1 Tour premises with owner/contact noting layout. 2 Visually inspect the premises and: a. document any revenue control procedures and equipment. 3 Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file with the Resort Tax Section 4 Review what records are maintained to support Resort Tax.Returns with owner/contact. 5 Review Audit Questionnaire with owner/contact. REQUEST FOR RECORDS I DATE DATE REQUESTED RECEIVED 1 SOURCE DOCUMENTS a. Restaurants & Bars i. Daily Sales Tickets ii. Cash Register Tapes iii. Daily POS Reports iv. Daily/Weekly Summaries v. Purchase Records/Invoices iiii. Other(Specify) 2 ACCOUNTING RECORDS a. Restaurants & Bars i. Sales Journal ii. Purchases Journal iii. General Ledger 3 GENERAL ITEMS a. Federal Income Tax Returns b. State Sales Tax Return c. Exemption Documentation d. Financial Statements e. Bank Statements CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS GENERAL PROCEDURES DATE INITIALS 1 Examine Federal Income Tax Returns /Income Statements. a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 2 Examine State Sales Tax Returns a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 3 Examine Income Statements a. Compare sales with totals reported on the Resort Tax Returns. b. Compute the cost of sales ratio and determine its reasonableness within industry standards. c. Prepare and see related schedule(s). CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS REVENUE PROCEDURES SALES: DATE I INITIALS FT— Examine a sample of monthly sales from the i J Revenue Source Document. a. Trace sales to daily/weekly/monthly reports. b. Trace sales to State Sales Tax Returns. {, c. Prepare and see related schedules 2 Select a sample of guest checks/sales tickets and trace to the sales journal/revenue reports to verify propriety of the accounting records. (If possible obtain copy of guest checks for audit work papers). 3 If the business uses bank statements for reporting purposes: a. Compare bank deposits statements to the resort tax returns. b. Prepare and see related schedules 4 Document work performed, including an explanation of any alternate/additional audit procedures performed, explanations of unreasonable variances and conclusions made as to reasonableness of reported sales. PURCHASES: I DATE I INITIALS 1 Calculate/review food and beverage costs for a selected period and compare to industry/market averages. a. Prepare and see related schedules. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS POST AUDIT PROCEDURES DATE INITIALS 1 Discuss audit findings (if any)with owner/contact. 2 Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 3 Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 4 Final review of audit performed by Asst. Internal Auditor/ Internal Auditor. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM ANNUAL ACCOUNTS—APARTMENTS PRELIMINARY WORK NOTIFICATION LETTER: PRE-AUDIT INTERVIEW: AUDIT INTERVIEW QUESTIONNAIRE Business Name: Date: Total Available Rooms: How many floors? What kind of rentals do your exemptions represent? PRE-AUDIT INTERVIEW ' DATE INTIALS 1 Tour premises noting layout 2 Visually inspect the premises for the following: , a. Document any revenue control procedures and equipment. 3 Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file. I 4 Review what records are maintained to support Resort Tax Returns with owner/contact. 5 , Review Audit Questionnaire with owner/contact. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM ANNUAL ACCOUNTS—APARTMENTS REQUEST FOR RECORDS DATE DATE REQUESTED RECEIVED 1 SOURCE DOCUMENTS a. Hotels, Apartment Houses, Etc. i. Guest Cards/Folios ii. Receipt Register iii. Rent Rolls iv. Signed Lease v. Other(Specify) I ' 2 I ACCOUNTING RECORDS a. Hotels, Apartment Houses, Etc. i. Sales Journals ii. Transcript/Revenue Report iii General Ledger 3 GENERAL ITEMS a. Federal Income Tax Returns b. State Sales Tax Returns c. County Tax Returns d. Exemption Documentation • e. Financial Statements f. Bank Statements GENERAL PROCEDURES DATE INITIALS '. 1 Examine the Exemptions taken and determine their validity. a. Prepare and see related schedule(s). 2 Examine-Rental Income Records to determine taxable rentals if any. a. Trace to Resort Tax Return. b. Prepare and see related schedule(s). CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM ANNUAL ACCOUNTS—APARTMENTS POST AUDIT PROCEDURES DATE INITIALS 1 I Discuss audit findings (if any) with owner/contact. 2 Review late charge fees or other memos owed by taxpayer. 3 Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and •eneral overview. 4 Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 5 Final review of audit performed by Asst. Internal Auditor/Internal Auditor. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS —ROOMS ONLY AUDIT INTERVIEW QUESTIONNAIRE ROOMS OPERATIONS Business Name: Date: Check-In Time: Check-Out Time: How many floors? Total available rooms: What is the name of the front desk software?: What kind of rentals do your exemptions represent? How does your system work? 1 2. 3. 4. 5. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS — ROOMS ONLY PRE-AUDIT INTERVIEW (NOTE: To be performed at least two (2)weeks prior to audit commencement date). DATE INTIALS 1 Tour premises with owner/contact noting layout 2 Visually inspect the premises and document any revenue control procedures and equipment. 3 Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file with Resort Tax Section. 4 Review what records are maintained to support Resort Tax Returns with owner/contact. 5 Review Audit Questionnaire with owner/contact. REQUEST FOR RECORDS DATE DATE REQUESTED RECEIVED 1 I SOURCE DOCUMENTS a. Hotels, Rooms, Etc. i. Guest Cards/Folios ii. Receipt Register iii. Night Audit report iiii. Other(Specify) 2 ACCOUNTING RECORDS • a. Hotels, Rooms, Etc. i. Sales Journals ii. Transcript/Revenue Report iii. General Ledger 3 GENERAL ITEMS a. Federal Income Tax Returns b. State Sales Tax Returns c. County Tax Returns d. Exemption Documentation e. Financial Statements f. Bank Statements fi .I CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS— HOTELS — ROOMS ONLY GENERAL PROCEDURES I DATE INITIALS 1 Examine Federal Income Tax Returns/Income Statements a. Compare sales with totals reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 2 I Examine State Sales Tax Returns a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s) 3 Examine County Tax returns a. Compare sales with total reported on Resort Tax Returns, Reconcile, if necessary. b. Prepare and see related schedules(s) 4 Examine Sales Tax Worksheets a. Compare sales with totals reported on the Resort Tax Returns. b. Prepare and see related schedule(s). 5 Compare sales total from above return with the General Ledger totals. a. Prepare and see related schedule(s) REVENUE PROCEDURES SALES: DATE INITIALS i 1 ! Examine Revenue Source Document(Rooms, etc) a. Trace sales to daily/weekly/monthly reports. b. Prepare and see related schedules. 2 Examine a sample of daily revenue reports. a. Trace to the month end reports. b. Compare to the Monthly Income statement./Resort Tax Returns. c. Prepare and see related schedules. 3 Examine General Ledger(sales, purchases, and tax payable) a. Trace to Financial Statements/Resort Tax Returns. b. Prepare and see related schedules. 4 ' If the hotel uses bank statements for reporting purposes: a. Compare bank deposits statements to the resort tax returns. b. Prepare and see related schedules. I 1 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS— ROOMS ONLY 5 Review selected exemptions documents for proper 1 signature and propriety of exemption taken. 6 ! Document work performed, including an explanation of any alternate/additional audit procedures performed, explanations of unreasonable variances and conclusions made as to reasonableness of reported sales. POST AUDIT PROCEDURES DATE INITIALS l 1 Discuss audit findings (if any) with owner/contact. 2 Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 3 Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 4 Final review of audit performed by Asst. Internal Auditor/ Internal Auditor. 1 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS— HOTELS WITH FOOD AND BEVERAGE AUDIT INTERVIEW QUESTIONNAIRE FOOD &ALCOHOL OPERATIONS Business Name: Date: What are the food and beverage outlets operated by the hotel? What are the food and beverage outlets NOT operated by the hotel? Note: these operators must be registered with Resort Tax; you must follow up. What are your business hours and days of operation? What is the seating/occupancy capacity? Do you provide complimentary employee meals? Do you provide discounted employee meals? If yes, % of discount _ How many cash registers/ POS Terminal are there? What system do you use? Are they interfaced with the hotel? What internal daily record do you keep? Guest Checks Register Tapes POS Report (daily/monthly) Do you have promotional/complimentary("house") charges: Yes ( )No( ) If yes, approximately what % of total sales is this? How does your system work? 1 2. 3. 4. II, 41 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE ij AUDIT INTERVIEW QUESTIONNAIRE ROOMS OPERATIONS Business Name: Date: Check-In Time: Check-Out Time: How many floors? Total available rooms: What is the name of the front desk software?: What kind of rentals do your exemptions represent? How does your system work? 1 2. -3. 4. 5. � i CITY OF MIAMI BEACH ► RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE PRE-AUDIT INTERVIEW (NOTE: To be performed at least two (2)weeks prior to audit commencement date). DATE 1 INTIALS 1 Tour premises with owner/contact noting layout 2 Visually inspect the premises and document any revenue control procedures and equipment. 3 Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file with Resort Tax Section. 4 1 Review what records are maintained to support Resort Tax Returns with owner/contact. 5 Review Audit Questionnaire with owner/contact. REQUEST FOR RECORDS DATE I DATE • REQUESTED RECEIVED 1 SOURCE DOCUMENTS a. Hotels, Rooms, Etc. i. Guest Cards/Folios ii. Receipt Register iii. Night Audit report iiii. Other(Specify) 2 b. Restaurants & Bars i. Daily Sales Tickets ii. Cash Register Tapes iii. Daily/Weekly Summaries iv. Purchase Records/Invoices v. Other(Specify) CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE DATE DATE REQUESTED RECEIVED 2 ACCOUNTING RECORDS a. Hotels, Rooms, Etc. i. Sales Journals ii. Transcript/Revenue Report iii. General Ledger b. Restaurants & Bars i. Sales Journal ii. Purchases Journal iii. General Ledger 3 GENERAL ITEMS a. Federal.Income Tax Returns b. State Sales Tax Returns c. County Tax Returns d. Exemption Documentation e. Financial Statements f. Bank Statements GENERAL PROCEDURES ' DATE _ INITIALS 1 Examine Federal Income Tax Returns/Income Statements a. Compare sales with totals reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 2 Examine State Sales Tax Returns a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. . • b. Prepare and see related schedule(s) 3 Examine County Tax returns a. Compare sales with total reported on Resort Tax Returns, Reconcile, if necessary. b. Prepare and see related schedules(s) 4 Examine Sales Tax Worksheets a. ed Compare sales with totals reported p p rt on the o Resort Tax Returns. b. Prepare and see related schedule(s). 5 Compare sales total from above return with the General Ledger totals. a. Prepare and see related schedule(s) • • CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE REVENUE PROCEDURES I SALES: DATE INITIALS 1 Examine Revenue Source Document (Rooms, Food, Alcohol) a. Trace sales to daily/weekly/monthly reports. b. Prepare and see related schedules. I i 2 Examine a sample of daily revenue reports. a. Trace to the month end reports. b. Compare to the Monthly Income statement./Resort Tax Returns. c. Prepare and see related schedules. 3 Examine General Ledger(sales, purchases, and tax payable) a. Trace to Financial Statements/Resort Tax Returns. b. Prepare and see related schedules. 4 If the hotel uses bank statements for reporting purposes: a. Compare bank deposits statements to the resort tax returns. b. Prepare and see related schedules. 5 Review selected exemptions documents for proper signature and propriety of exemption taken. 6 Document work performed, including an explanation of any alternate/additional audit procedures performed, explanations of unreasonable variances and conclusions made as to reasonableness of reported sales. PURCHASES: I DATE INITIALS 1 Calculate/review food and beverage costs for a selected period and compare to industry/market averages. a. Prepare and see related schedules(s) CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE POST AUDIT PROCEDURES DATE INITIALS 1 1 Discuss audit findings (if any) with owner/contact. 2 I Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 3 Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 4 Final review of audit performed by Asst. Internal Auditor/ Internal Auditor. PROPOSAL 14 /\ /k Crowe Horvath. The Unique Alternative to the Big Four® &y_y ' - 5f,,-4-;: 1-1 6 - '.... - .. rw-v, .- _ t. S u, ..,--�-.,._ - �� - w-11 ♦:11 w-4 �. w 9 J --■.' 'n""w w� 1 el 'I.' . t, q s � wya -w w''�. is .... ) RI - a� a 4.---.....,,,-m� �`, : ;,-.i' 0,° ° 14. alp- .,-.4-n �. .� �J17'l± , 47-- •'T�7 t — 1 -a -•-rig ' am�- a••e 'M __ :iii = {` "-Van il - LQ°4a'7m°im" cti�-�f��, Y_ ` - }' r --4,.. +gyp 1...-----:11-,-,,--,---7,- '- ^..w�l �_ 'll Y1'L1 M .� i tr'tm•sc:ntTeirg eon:d _ '-''.—d.'_ -1-': '1. a _ a ' r a=___e m Y� 1.- m r . o _b-im..bt, L . II.- 0,, tiavx 'a`� ' s � .----71 -._,S-t-,..:,7-. ---4:ilf..-::' •'-. 44„-,T,,•_ --:"E---- --_ - -",_....I_ . t'" --,:-.•-_*-7.:,....:, ".."--.... . ' _Tillit,...?,„"uhii...`•••• -•■• :. .'''-'141,-_,S,„'.--,-;_- • �' :1." j try".;,• fo .N;l & p t r ...^. I 6- . .,_u ,_.- ,-$._ -tom ' , �d i r L � 1 _2, Proposal tO P' ro-- Ni i 08 el AA IAM BEACH ,„... i Sena AucUt Services January 15, 2015 2015-043-WG Submitted to: William Garviso, Procurement Coordinator Procurement Department City of Miami Beach 1700 Convention Center Drive, 3rd Floor Miami Beach, FL 33139 Submitted by: John C. Weber, Partner Crowe Horwath LLP 1395 Brickell Avenue, 11th Floor Miami, Florida 33602-5197 Direct 630.254.6567 Fax 786.534.0251 john.weber @crowehorwath.com Audit I Tax I Advisory I Risk I Performance Crowe Horwath, Crowe Horwath LLP Independent Member Crowe Horwath International 1395 Brickell Avenue,11th Floor Miami,Florida 33602-5197 Tel 786.534.0250 Fax 786.534.0251 www.crowehorwath.com Cover Letter & Minimum Qualifications Requirements 1.1 Cover Letter and Table of Contents January 15, 2015 William Garviso, Procurement Coordinator Procurement Department City of Miami Beach 1700 Convention Center Drive, 3rd Floor Miami Beach, FL 33139 Dear Mr. Garviso: Crowe Horwath LLP(Crowe)appreciates the opportunity to present our firm to the City of Miami Beach (the City)to provide internal audit services. This proposal illustrates why Crowe is uniquely qualified to serve the City. It also demonstrates how we differentiate our services from other firms: Our"Areas of Excellence" provide focus for industry and discipline-based specialties. This focused approach allows us to be recognized as a leading provider of services and solutions to local governments. The leadership that can only come from direct Partner involvement in every client relationship provides a higher level of expertise and commitment to responsive services that is not always found in other firms. Firm Background and Qualifications Crowe will value the City as a very important client and is committed to providing high quality service, aimed at exceeding your expectations on a long-term basis. Under our core purpose of"Building Value with Values®", Crowe uses its deep industry expertise to provide audit services to public and private entities,while also helping clients reach their goals with tax, advisory, risk and performance services. Crowe employs more than 3,000 professionals across many areas of expertise, including Public Sector Services(PSS). Crowe is highly qualified to serve the City for the following reasons: Internal Audit Experience.Through its internal audit work, Crowe is well versed in the operational, compliance and financial reporting risks of government. For the Town of Palm Beach, City of Coral Springs and the City of Tarpon Springs Crowe was engaged to perform a risk assessment and has conducted several internal audits in the areas of Finance, Human Resources, Recreation, Police and Fire, Planning, Building, and Zoning. Leading Risk Service Provider. Crowe has over 300 dedicated Risk professionals with thought leadership and in-depth experience working at government organizations. Crowe is a nationally recognized leader in corporate governance, internal audit, (anti)fraud, Sarbanes-Oxley and other Risk services and has over 600"risk"clients nationally. -i William Garviso, Procurement Coordinator City of Miami Beach Page ii Subject Matter Professionals. Our approach utilizes specialists throughout the firm to enhance our core internal audit team. Audits will primarily be serviced by our large local core internal audit team. However, on consulting projects, we are able include members with the necessary experience. We know the issues you face as a government organization, and this will broaden our ability for quality service.This expertise will also help with providing sound advice and practical recommendations in these difficult budgetary times. Program Plan. We will utilize Best Practices and employ the benefits of our extensive experience in serving government that has kept us on the leading edge of issues affecting your operations.We will formulate an effective and efficient internal audit plan that assists the City in helping to reduce your risks and provide timely recommendations focused on enhancing your operations and saving you money. Commitment to Quality. Our firm maintains close working relationships with the Institute of Internal Auditors,AICPA, including membership in the Governmental Audit Quality Center, the American Association of Government Accountants and the Government Finance Officers Association. In addition, members of our firm serve the Institute of Internal Auditors, various state CPA societies and the AICPA's State and Local Government Expert Panel and CPE Advisory Committee. Why Choose Our Team? We offer the following reasons to choose our team: An experienced team of resources with in-depth knowledge of government auditing services including Generally Accepted Accounting Principles(GAAP), the Comprehensive Annual Financial Report(CAFR), federal grant programs, the Single Audit Act and OMB Circular A-133 requirements, the rules of the Florida Auditor General and the project management disciplines required to be successful. Collaborative and creative style in working with clients to consistently identify and deliver high-quality, practical solutions. We understand the City's operations,funding,financial reporting and compliance. The proposed engagement team is familiar with your needs as we have previously completed an operational and performance audit for the City. Our local experience dealing with governments of all sizes will help create a smooth transition and help the City meet its reporting requirements. Seek to understand your needs, communicate our service objectives, collaborate with you and deliver the results you are expecting. Primary Contact This proposal is being submitted by John C. Weber, Partner,who is authorized to represent the Firm, is empowered to submit the proposal and is authorized to negotiate and execute a contract with the City. The contact information is provided below: John C. Weber, Partner Crowe Horwath LLP 1395 Brickell Avenue, 11th Floor Miami, Florida 33602-5197 Direct 630.254.6567 Fax 786.534.0251 john.weber @crowehorwath.com Concluding Comments Crowe is fully qualified to provide superior services to the City. Equally important, we have a strong desire to assist you and believe that we can add value to you by completing the audit in a timely manner and by actively seeking ways to assist you in improving your operations. Our proposal is a firm and irrevocable offer and will be valid for 120 days. William Garviso, Procurement Coordinator City of Miami Beach Page iii Crowe understands that both parties reserve their respective rights to negotiate appropriate and mutually acceptable provisions prior to execution of any contract should Crowe be considered for final negotiations. Crowe will wish to discuss any contract terms that may not comply with professional standards and would take exception to any such provisions and ask for appropriate modifications as we have listed in our proposal in Appendix C of our proposal. Again,we appreciate this opportunity to present our firm for your consideration,and if selected,will give the City our closest attention. Should you have any questions or require additional information, please do not hesitate to contact me at 630.254.6567. Sincerely, P John C.Weber Partner • Audit Services City of Miami Beach Table of Contents Cover Letter& Minimum Qualifications Requirements 1.1 Cover Letter and Table of Contents 1.2 Proposal Certification, Questionnaire&Requirements Affidavit 1 1.3 Minimum Qualifications Requirements 2 Experience&Qualifications 5 2.1 Qualification of Proposing Firm 5 2.2 Qualifications of Proposer Team 12 Appendix A: Proposal Certification,Questionnaire& Requirements Affidavit 16 Appendix B: Resumes 19 Appendix C: Exceptions 35 A, Crowe Horvath. www.crowehorwath.com MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Crowe Horwath LLP is an independent member of Crowe Horwath International,a Swiss verein.Each member firm of Crowe Horwath International is a separate and independent legal entity.Crowe Horwath LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International.Crowe Horwath International does not render any professional services and does not have an ownership or partnership interest in Crowe Horwath LLP.Crowe Horwath International and its other member firms are not responsible or liable for any acts or omissions of Crowe Horwath LLP and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath LLP. Audit Services City of Miami Beach 1 1.2 Proposal Certification, Questionnaire & Requirements Affidavit As required, we have provided a fully completed and executed Proposal Certification, Questionnaire& Requirements Affidavit in Appendix A of our proposal. A Crowe Horwath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 2 1.3 Minimum Qualifications Requirements C2.1 - Minimum Requirements for Internal Audits. A. Crowe is registered to do business within the State of Florida. We have provided our license below: RICK SCOTT,GOVERNOR STATE OF FLORIDA KEN LAWSON,SECRETARY DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION • BOARD OF ACCOUNTANCY ❑ r.,r. 0 LICENSE NUMBER 1:a I is.,41,, ,• AD65785 .' r ,,�F'•- The ACCOUNTANCY PARTNERSHIP Named below IS LICENSED t :05• Under the provisions of Chapter 473 FS. Expiration date: DEC 31,2015 CROWE HORWATH LLP 401 E LAS OLAS BLVD SUITE 11.00 FORT LAUDERDALE FL 33301-4230 YIYA FLORIDA ISSUED: 11/14/2013 SEO# 11311140000821 DISPLAY AS REQUIRED BY LAW B. Crowe has more than 40 years of experience providing ALL of the following services to governmental and/or public sector agencies: ❑ Internal Financial Audits ❑ Internal Operational Audits o Forensic Audits References Quality work, based upon strong competency and directed towards our client's needs, is the core element of creating value for our clients. Quality service involves prompt and efficient service delivery and effective communications with clients. Business relationships involve gaining trust and respect by listening to our client's needs and developing a comprehensive understanding of their business and vision for the future before providing advice. We have delivered high value to our clients for decades and we feel that we are well-suited to help the City. Our clients are the best judges of our ability to exceed your expectations. Please feel free to contact any of the individuals listed below for an appraisal of our work. Town of Palm Beach Type of Services Provided Internal Audit Key Staff Assigned 1 John Weber Michael Ciminero,Corrine Ahrend, Client Name,Email, Peter Elwell,Town Manager Telephone PElwell @townofpalmbeach.com 561.835.4724 Crowe Horwath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 3 Archdiocese of Chicago Type of Services Provided Internal Audit Key Staff Assigned 1 Michael Ciminero Client Name, Email, Mary Anne Murphy,Assistant Finance Director Telephone mamurphy @archchicago.org 312.751.5350 YMCA of the USA Type of Services Provided Internal Audit Key Staff Assigned 1 Michael Ciminero Client Name,Email, Nancy Owens, Director of Finance&Controller Telephone Nancy.owens @ymca.net 800.872.9622 ext 8429 City of Tarpon Springs Type of Services Provided Internal Audit Key Staff Assigned ' Michael Ciminero, ,John Weber,Corinne Ahrend Client Name, Email, Arie Walker, Director of Finance Telephone awalker @ctsfl.us 727.942.5612 • City of Coral Springs Type of Services IA Risk Assessment and Outsourcing Provided Key Staff Assigned 1 John Weber,Michael Ciminero, Michael Rozelle Client Name,Email, Susan Grant Telephone sgrant @coralsprings.org 954.344.1004 ,, Crowe Horvath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 4 C. The key personnel assigned to this engagement are members of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. Below we have provided the membership numbers for each of the key personnel holding a membership with the AICPA and/or the FICPA. Team Member AICPA Membership FICPA Membership John Weber, CPA 01567264 83190 - -- ------ --------- - ---------- -- -- Kevin Smith, CPA 01542969 1 N/A Michael Ciminero,CIA, CGAP 4954428 77787 Michelle Blackstock,CPA 1574193 ! 9770 Michael Rozelle N/A N/A Craig Sullivan, CPA, CISA,QSA Pubbens Clermont N/A N/A Steve Kocaj,CISA N/A — f N/A —D. Crowe maintains a permanent office within Miami-Dade County. Our office is located at: 1395 Brickell Avenue, 11th Floor Miami, Florida 33602-5197 C2.2-Project Specifications for Internal Audits. We understand that the scope of the work for internal audits will be contingent to the type of audit requested. Types of audits which maybe requested will comprise of Financial Audits, Attestation Engagements(includes examinations, review or agreed upon procedures), and Performance Audits. Audit work will be performed in accordance to governmental auditing standards. In addition, Forensic Audits may be requested. We understand that Crowe will be expected to develop audit programs for the scope of work provided. Audit findings will be presented to the City Administration. Prior to authorizing work on an internal audit, we will submit a price proposal based on the number of hours estimated to complete the work and a price per hour that is less than or equal to the per hour proposal price. We also understand that each audit should be completed by submission of a final report accepted by the City. A Crowe Horvath. www.crowehorwath.com (1,:i MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 5 Experience & Qualifications 2.1 Qualification of Proposing Firm About Crowe Horwath LLP Crowe Horwath LLP (www.crowehorwath.com)is one of the largest public accounting and consulting firms in the United States. Under its core purpose of"Building Value with Values®,"Crowe uses its deep industry expertise to provide audit services to public and private entities while also helping clients reach their goals with tax, advisory, risk and performance services. With a total of more than 3,000 personnel, Crowe and its subsidiaries have offices coast to coast. The firm is recognized by many organizations as one of the country's best places to work. Crowe serves clients worldwide as an independent member of Crowe Horwath International, one of the largest global accounting networks in the world, consisting of more than 150 independent accounting and advisory services firms in more than 100 countries around the world. Position in the Industry: One of the Nation's Largest Public Accounting and Consulting Firms Crowe ranks as the eighth largest U.S. public accounting and consulting firms(based on U.S. net revenue)according to the 2014 Accounting Today Top 100 Firms List. THE aCCOuntingTODAY TOP 100 FIRMS RANK REVENUE Year S % 14 13 Firm Headquarters Chief executive end, mn. chg. 1 1 Deloitte s New York City Joe Echevarria May 13,894.00 6.33 1 2 2 PwC t New York City Robert Moritz June 11,041.00 8.70 3 3 Ernst&Young 4 New York City Steve Howe June 9,100.00 10.98 4 4 KPMG" New York City John Veihmeyer !Sept 6,140.00 6.73 5• 5 McGladrey Chicago Joe Adams April 1,366`59 6.2� 6 6 Grant Thornton Chicago Stephen Chipman Dec 1,302.83 4.61 ----- - — —— — — 7 7 BDO Chicago Wayne Berson June 683.00 10.52 1 LL 8 9 Crowe Horwath Chicago Charles Allen -Dec f 664.62 11.68 9 10 CIiftonLarsonAllen2 Minneapolis Gordy Viere— _ Dec r- 563.55 -0.78 1 10 11 CohnReznick New York City Thomas Marino Jan 1 508.00 4.10 Office Locations Crowe serves clients coast to coast from the following office locations: • California I Los Angeles,Orange County,Sacramento, _o San Francisco #11r. 10,\ . '' o District of Columbia I Washington D.C. _Li Florida I Fort Lauderdale,Tampa, Lakeland,Miami • Georgia I Atlanta ° °1-4'° ��, ❑ Illinois I Chicago,Oak Brook,Springfield o-r' 0 Indiana I Elkhart, Ft Wayne, Indianapolis(2),South Bend ❑ Kentucky I Lexington, Louisville n Michigan I Grand Rapids L _0 New Jersey I Livingston . o • ❑ New York I New York El Ohio I Cleveland,Columbus o Tennessee I Knoxville, Nashville • Texas I Dallas ,A Crowe Horwath. www.crowehorwath.com m MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP r Audit Services City of Miami Beach 6 Areas of Specialization Crowe is unique in that we have dedicated teams focused on key industry issues, including: t Construction 1� ` �° `'Y.�. ❑ Financial Services 1 1 ci Food and Commodities l.. , J Government ..--..._— ❑ Healthcare Higher Education CX 1 ❑ Manufacturing and Distribution yam_ ;�`t. `- ci Not-for-Profit I �� El Private Equity Groups ci Retail Dealership Financial Stability Crowe Growth Founded in 1942, Crowe is celebrating more than 70 years of stability, 800 growth, and innovation. We are committed to a national expansion 700 program that aligns with serving the needs of our clients. - 600- -- For calendar year 2013, Crowe achieved a 11.68 percent revenue i 500 _ growth rate–leading all top U.S.firms.* ._ r— y Please note, Crowe Horwath LLP is privately held and asserts that its c2 300- - - - - - financial statements are confidential trade secret information. Our =200 financial statements will be provided upon request. z C *The 2014 Accounting Today Top 100 Firms **FY15 Budget is Consolidated Revenue,including CFS <,- -.. �A �A �-C' QA...` FA <cA <, ' JA National Government Practice Crowe has diverse, in-depth governmental experience that delivers insight and a clear understanding of the challenges and solutions of public sector agencies. Crowe has been serving the needs of government organizations for nearly 50 years. We work with many different types of government organizations, including counties, municipalities, special service districts, school districts, library districts, State agencies, and quasi-governmental entities. Crowe's Public Sector Services Team is comprised of over 200 professionals, across many of our disciplines and has worked with hundreds of public sector clients on thousands of engagements throughout the United States to deliver financial statement and compliance audits, streamline systems and processes, optimize revenue, and enable entities to meet reporting and compliance requirements. Our approach is to bring the best experience to the client to best serve the needs of the client. In today's environment, specialized skills are needed and our team spends their time serving clients in the public sector so that the clients receive the best expertise the firm has to offer regardless of where they are located. Our diverse skills sets–business process, technology, finance, accounting, fraud investigation, risk consulting, economic development, and performance-allows us to deliver effective, cost-efficient services and provides your audit team with an in-depth understanding of the unique needs of a local government. The following chart demonstrates Crowe industry sector, objectives and solutions. 44\ Crowe Horvath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 7 ° is >j Your Path to Comprehensive Government Solutions n • EXPLORE CROWE'S GOVERNMENT PRACTICES AREAS OF EXPERTISE JURISDICTIONS OBJECTIVES SOLUTIONS Air rort Authorities Federal Government. Streamline Operatfnns Audit Haa r and Human Services State and Local Gorrerrvnents Opdmize Revenue Accounting Consulting Justice mid Putilic Safety Authorities,Special Districts Reduce Costa Economic Development • Lehor�d lAfarldarce and Quaat-governmerrt 1=rrtides Beer Serve•Const uertts Financial Advisory Economic Devetopmerit Monitor Grant Funding Forensic Services TrensiD nation and Transit. Comply Periomiance Committing Education Manage FinanciEd and Agency Risk,Man8 Brnentand Ut6tiers Risk Cayce Administrative and FTnacroe, Protect rT Systems aid:Data Technology gi Risk Corgi trtA:motion Services Government Assurance Services Audits performed by a trusted CPA can provide peace of mind and identify opportunities to improve accounting and operational performance. We have an unmatched depth of governmental audit knowledge and the functional expertise to deliver superior audits. We help governmental agencies succeed by combining our deep industry experience, innovation, and knowledge with a comprehensive set of technical business competencies. Our specialists are trained to review an organization's systems and controls to provide recommendations to help the organization meet reporting and disclosure requirements. We have specific audit experience with many major governmental entities in Florida including Broward County, Miami-Dade County, City of Tarpon Springs, City of Fort Lauderdale and City of Tampa as representative examples. Crowe audit solutions include: Ei Internal Audit Regulatory Compliance Audits Financial Statement Audits ci Consulting and Advisory Services Ei Single Audits/A-133 ❑ Government Auditing Standards Performance Audits Examinations Our audit professionals are committed to maintaining our reputation for technical excellence, team performance, efficiency, and exceptional client service. By aligning our specialists along industry lines, we add depth and breadth of knowledge to our audit solutions. This industry specialization gives us a better view to understand your business and the unique challenges you face.As a result, you benefit from solutions delivered by people with a thorough understanding of your marketplace. We work with hundreds of public sector clients to audit systems and processes, identify high value opportunities, devise innovative solutions that address specific needs, and implement projects on time and on budget for immediate impact and long-term productivity gains. Crowe unique perspective—our team includes former governmental officials and advisers—accelerates the return on investment and delivers lasting operational improvements. Crowe Horvath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 8 To achieve more efficient operations, Crowe auditors help by providing feedback on how to: Reduce costs Improve constituent services ❑' Improve processes Engage in strategy planning, and Enhance productivity and performance E Better manage grants Get more from technology investments t Enhance operations and encourage collaboration. Publications and Seminars To keep you informed, Crowe publishes articles, white papers, newsletters, technical updates, and e-communications, and offers annual learning Government events across the country. We monitor current market trends and Advantage Series developments and can provide insight on how your business may be Fall 2012 Calendar affected. We publish Government Advantage quarterly to provide thought ± Download Calendar leadership and helpful tips on key issues gathered from our years of experience in helping governments achieve their mission. r, Crowe Hcrouth Combining thought leadership and industry specialization, The Public Sector Series connects business officers with 11 Public Sector 4 Resource Center — recent developments and best practices. Live seminars, �--- web-based tutorials and published alerts help our clients vaa criartuma stay current with issues that affect their organizations. - 1111 We also help our clients stay current by inviting them to participate in our in-house CPE courses, and providing i thought leadership through our webinars and seminars. - - Our industry groups within the firm offer audit and accounting updates where clients are invited to participate to gain current knowledge on topical issues. These seminars will be provided at no cost to the District. Thought Leadership You need to stay competitive. You want practical, timely, reliable A awm> , h information from knowledgeable, respected thought leaders. To keep you informed, Crowe publishes articles,white papers, newsletters, technical updates, and e-communications. The Accounting Alert offers accounting and auditing news you can use f-� from Crowe Horwath LLP audit and assurance specialists. In each - issue of this electronic newsletter,you will find abstracts of recent accounting issues,standard-setting activities,and regulatory - developments that affect commercial,not- for-profit,and state and local Accounting governmental entities. Please refer to http://www.crowehorwath.com/insights/accounting-alert Alert for additional Crowe accounting news. We publish Government Advantage quarterly to provide thought leadership and helpful tips on key issues gathered from our years of experience in helping governments achieve their mission. Combining thought leadership and industry specialization, The Public Sector Series connects business officers with recent developments and best practices. Live seminars,web-based tutorials and published alerts help our clients stay current with issues that affect their organizations. Crowe Horvath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 9 We also help our clients stay current by inviting them to participate in our in-house continuing professional education courses, providing thought leadership through our webinars and seminars. Our industry groups within the firm offer audit and accounting updates where clients are invited to participate to gain current knowledge on topical issues. For an interactive map of our services and our current calendar of events, please visit: http://www.crowehorwath.com/industries/government/. Risk Practice Crowe has provided risk solutions to over 500 organizations on a firm wide basis. Our staff to partner ratio of less than 7 to 1 illustrates the fact that our partners are much more involved in our client engagements than most of our competitors. We believe in bringing practical "hands-on"experience to clients to provide value-added versus reliance on younger, less experienced professionals. Our services focus on internal audit, IT audit, corporate governance, enterprise risk management, security&privacy and Sarbanes-Oxley services. We help clients identify, source, assess, and audit their business risks. Our industry coverage is broad and includes energy, manufacturing, construction, governmental, financial services, healthcare, insurance, real estate, services and technology. Governance, Risk and Compliance Services 11 Corporate Governance Assessment, Design and Monitoring I Enterprise Risk Management Program Assessment, Design, Development Monitoring and Training ri Enterprise Compliance Program Assessment, Design, Development, and Monitoring Business Risk Process Services ▪ Internal Audit Outsourcing and Co-sourcing i Risk Assessment and Monitoring ▪ Operational, Financial and Strategic Risk Consulting it Internal Control Assessment, Design, Implementation and Testing Technology Risk Services • IT Governance it IT Audit Outsourcing and Co-sourcing I IT and Compliance Risk Assessments I IT Control Assessment, Design, Implementation and Testing ▪ Attest Services(SAS70, PCI) it Application Integrity Assessment, Design and Testing I Threat and Vulnerability Management Program Assessment, Design and Testing I Business Continuity and Disaster Recovery Planning • Security and Privacy Program Assessment, Design and Implementation Education and Training id Enterprise Risk Management To Fraud and Ethics I Compliance • COSO Internals Control Framework I Internal Audit "A Crowe Horwath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 10 Risk Service Related Awards or Recognitions Crowe is nationally recognized for providing Risk Services. Examples of relevant risk service related awards or recognitions include: Crowe is ranked among the top 10 risk consulting firms worldwide and classified as an "end-to-end"provider of governance, risk, and compliance FORRESTER (GRC)services.—Forrester Research Inc., The Forrester Wave TM In its evaluation, Forrester researchers indicated that"Crowe is a strong performer in risk consulting and is more than capable of delivering successful engagements. Crowe client reference scores were among the highest in this evaluation, demonstrating that smaller and more nimble firms are ready to adapt and respond to clients more quickly." Forrester also acknowledged that Crowe received consistently high praise from client references and scored well in the areas of risk strategy and technology risk management. Researchers commented that"companies looking for reliable services on medium-scale projects and strategic alignment of risk and performance management should consider Crowe a strong option." Crowe is a member of the Principal Partner Program of the Institute of Internal Auditors with participation at local to international levels. Crowe personnel, including members of our proposed engagement team, regularly contribute thought leadership pieces to IIA Publications, serve as speakers �: c 9 PP P ? CtPALPARTNE and trainers at Chapter meetings and regional, national and international N _ 2" seminars and conferences, and participate as officers or members of the Board of Governors. Crowe has been chosen as a"Professional Exchange of Risk Knowledge" (PERK)Partner for the Risk and Insurance Management Society(RIMS).The 044(%fi Op PERK Program is a unique partnership between RIMS, RIMS chapters and anted industry experts.Through the PERK program, RIMS brings knowledge leaders 5' s to chapter meetings to deliver quality programming,facilitate membership yy PERK.e development and enhance networking opportunities.As a PERK Partner, PARTNER RIMS acknowledges Crowe as an industry leader who delivers high level sessions on cutting edge topics in the risk management field. Internal Audit Experience Crowe risk practice operates as a national practice. We currently provide internal audit services to over 500 organizations nation-wide. Our clients range in size from small privately held companies to large publicly traded companies with revenues in excess of$20 billion. Industries served include education, not-for-profit, government, services, manufacturing, real estate, distribution, healthcare,financial services, energy and construction. Crowe currently has more than 60 clients in Florida where we have performed outsourced internal audit services.These clients have included financial institutions and a public utility as well as governmental entities. Based on the City's strategic vision and objectives,we will tailor our internal audit approach to meet your specific needs.We have worked with a variety of organizations that have selected to implement or maintain their internal audit program through varying degrees of complexity. %� Crowe Horvath. www.crowehorwath.com m MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 11 Representative Government Client List We have worked with over 400 state and local governments and other public sector entities. To demonstrate our government audit and advisory experience and the recognition that Crowe has in the state and local government market place(including underwriters, bond rating agencies, regulators, etc.). In addition to the references provided in Section 1.3 Minimum Qualifications Requirements,we have provided the following sample listing of our governmental municipal clients in Florida. Clients A=Audit A-133 GFOA C=Consulting Audit Award I=Internal Audit Broward County A x x Broward County Sheriff A, C l x x City of Coral Springs I City of Lakeland - --- - - - - A'C ---X � -- x City of Ft. Lauderdale A x x _ City of Tampa A,C City of Tarpon Springs City of Miami Beach - -- - - -- A'c-_- -- - - - Florida State Board of Administration A,C --- - - j Lakeland Area Mass Transit District A,C x � Miami Dade County Transportation A x Pinellas County-Including all Constitutional i A Officers Port Everglades A x Town of Palm Beach_ --- - -� - - - � - -- -� Technical Expertise Crowe is organized by industry specialization versus by office. However our local Florida offices provide audit services to local government. We have structured the engagement team with local resources who are available to the City on a daily basis. Crowe has a sophisticated Centralized Resource Management function that is responsible for ensuring that the City's needs are met with the experienced and trained staff from our local offices, and if needed,from across our firm. As one of the largest U.S. public accounting and consulting firms, we are able to call upon a large base of talented individuals and resources. Crowe Horvath. www.crowehorwath.com m MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 12 2.2 Qualifications of Proposer Team Engagement Team Crowe has built its reputation on close senior-level involvement and maintaining a strong client relationship. The ultimate success of our client relationships is largely attributable to one key component—our people. The proposed engagement team is well qualified to provide quality, timely, and personalized services to you. Crowe has dedicated teams focused on key industry issues. We have structured the engagement team to include senior level Subject Matter Specialists that are leaders in their areas of expertise. Industry knowledge of the engagement team allows for better communication and understanding of issues raised. We have also structured our engagement team with extensive partner involvement. You will find our average partner-to-staff leverage ratio is higher than most other firms. By having partners involved in the daily execution, we reduce the time required to respond to accounting issues and thereby close the expectation gap. We are able to achieve this leverage by making significant investments in technology, uniform platforms and methodology, investments that allow us to work smarter and more efficiently. Our technology capabilities are widely recognized and commensurate with that of the Big Four accounting firms. The work that we will perform will be conducted in a timely, planned and orderly manner,without the uncertainty and confusion associated with a delayed, last minute performance. The proposed team takes pride in their client service ethic and in responding promptly to client inquiries. Their policy is to check voice mail throughout the day and return phone calls usually on the day received or within 24 hours at the latest. Likewise, they are typically able to access e-mail even when out of the office and respond promptly. Your Engagement Team is available to address your needs and concerns. Members of our team have significant experience performing internal audits and are focused in government sectors exclusively. Additionally, members of our team possess the Certified Public Accountant(CPA), the Certified Internal Auditor(CIA), and/or the Certified Government Auditing Professional(CGAP), which is a specialized certification focused on Government and Not-for-profit internal auditing. An overview of your engagement team is as follows: Key Personnel Role Experience - John Weber,CPA Engagement Partner: Mr.Weber has over twenty three years of experience Responsible for the focusing his entire career in providing assurance and Engagement and consulting services to public sector clients including Issuance of Reports government. Mr.Weber also served as Crowe's national partner in charge of the governmental audit practice for eight years and is a member of the United States Comptroller General Advisory Council on Government Auditing Standards. Kevin Smith,CPA 1 Audit Partner—Quality i Mr.Smith has approximately twenty years of experience Review providing both advisory and financial statement and 1 I compliance audits primarily to governmental. Mr.Smith is a member of the AICPA State and Local Governmental Expert Panel. Mr.Smith currently serves as Crowe's national partner in charge of the government audit practice. j 4\ Crowe Horvath. www.crowehorwath.com el MIAMI BEACH ©Copyright 2015 Crowe Harwell LLP Audit Services City of Miami Beach 13 Key Personnel Role Experience Michael Ciminero, Audit Senior Manager Mr.Cimonero has over fifteen years of experience servicing CIA,CGAP governmental clients with complex accounting issues.He brings in-depth experience in the field of accounting, assurance,and internal audit procedures and techniques. Michelle Blackstock, Audit Senior Manager Ms. Blackstock has twenty five years of experience in CPA,CITP providing assurance to public sector clients including government. Prior to joining Crowe she has prior work experience in both international and local public accounting firms. Michael Rozelle Audit Senior Staff Mr. Rozelle has over two years of experience working on multiple government client engagements. Craig Sullivan, CPA, IT Risk Partner Mr.Sullivan has 30 years'experience in accounting and CISA,QSA technology consulting related to Risk Management and Information Technology Controls. He is responsible for the thought leadership and technical activities of the Technology Risk activities of Crowe's Risk Consulting Services business J unit on a Firm-wide basis. Steven Kocaj,CISA IT Risk Manager Mr.Kocaj is a manager with the IT Risk group and has over 4 years of experience providing consulting services and performing attestation audits for information systems. Mr. Kocaj focuses on conducting IT audits for government, Sarbanes-Oxley(SOX)compliance for financial statement audits,internal audits for SOX,risk assessments,and conducting FFIEC reviews for financial institutions. Pubbens Clermont i IT Risk Staff f As a staff member in Crowe's Risk Consulting practice,Mr. Clermont is responsible for performing consulting services related to IT general controls,application controls and Sarbanes-Oxley. In addition,he performs SSAE16/SOC reviews and conducts Financial Audit Support jobs. Resumes We have provided resumes of the key individuals listed above in Appendix B of our proposal. The resumes detail educational background as well years of experience, licenses and certifications, professional affiliations and detailed relevant experience. AA Crowe Horvath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 14 Organizational Chart ,BEAC H Kevin Smith John Weber National Government Audit Partner Engagement Partner Subject Matter Specialist Michael Ciminero Michelle Blackstock Audit.Seni or Man ager Audit Senior Manager Michael Rozelle Audit Senior Staff Additional Local'Office Engagement Staff As Needed Resource Team Crowe Horwath. www.crowehorwath.com CO MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 15 The Big Four Reasons to Consult Crowe National Reputation and Global Reach. In today's world of rapid globalization and increasingly competitive markets, business leaders around the world are expressing needs we can help fulfill with our internationally recognized audit, tax, and advisory services. Crowe leverages the comprehensive knowledge we gain through a global network to offer timely, accurate, and cost-effective services no matter where your business is located. We can help sort through the complexities for U.S. companies with operations abroad and for global companies doing business in this country. Technical and Solution Thought Leadership. While some markets are shrinking, opportunities to innovate and grow are found by staying close to the source of change. The Crowe Innovation Model is our process for researching, predicting, developing, and validating solutions to meet your needs. Our new-product development funding and training programs allow us to continually invest in meeting the emerging needs of our markets. Our cross-functional professionals are regularly working together to hone their innovation skills, sustain new solutions, and provide value for our markets. Industry and Service Expertise. By aligning our specialists along industry lines,we add depth and breadth of knowledge to our solutions. Industry specialization gives us a better view to success in achieving your business goals and positioning your organization for a strong competitive advantage. You can trust us for advice on your market and business challenges because of our proven reputation and track record for credibility among key industry players, including lenders and professional organizations. Commitment to Client Service Excellence. Our client relationship model provides the framework for delivering our highest levels of service and client satisfaction. The high expectations we set for our service delivery teams are articulated in our client service standards. We hold ourselves accountable to the standards of superior performance by monitoring our service through feedback tools to track client satisfaction, engagement value, and timely issue resolution. Crowe Horwath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 16 Appendix A: Proposal Certification, Questionnaire Requirements Affidavit We have provided this information on the following pages. Due to varying file types, these pages will not be reflected in our Table of Contents. Required Information Veteran Owned Business Crowe is not a Veteran Owned Business. Conflict of Interest As a firm of certified public accountants, Crowe has policies and procedures to provide reasonable assurance that professional personnel maintain independence, integrity, and objectivity required under professional standards. A dedicated unit within Crowe, the ethics and independence group within the firm's national office, is responsible for managing and communicating independence and ethics guidance and firm protocol. Independence precludes relationships that might in fact or appearance impair objectivity in performing audit and other attest services. Integrity requires personnel to be honest and candid within the constraints of client confidentiality. Service and the public trust are not to be subordinated to personal gain or advantage. Objectivity is a state of mind and a quality that lends value to a firm's services. The principle of objectivity imposes the obligation to be impartial, intellectually honest, and free of conflicts of interest. Personnel must consciously refuse to subordinate their judgment to that of others and must avoid relationships that may impair objectivity or influence judgments. The Crowe policy is that all personnel must be in fact and appearance independent in attitude, in the conduct of work performed, and in relationships with clients, as required by applicable professional standards. All professional personnel shall follow the applicable independence rules and regulations of the American Institute of Certified Public Accountants(AICPA)Code of Professional Conduct, the state Boards of Accountancy, the Securities and Exchange Commission (for public company audit clients), the U.S. Government Accountability Office(GAO; for audits subject to GAO requirements), and other regulatory agencies. We communicate independence rules to help provide assurance that our personnel will comply with applicable rules. Our success as an independent public accounting firm requires that the firm and its personnel comply with all applicable ethical and independence standards and rules. The firm views independence or ethics violations seriously. After evaluating the circumstances, the firm may sanction an individual who violates applicable ethics or independence requirements or related firm policies and procedures. Sanctions may include, but are not limited to, entries in personnel records, reduction in responsibilities, reduction in compensation, termination, or other actions that the firm's management may determine are appropriate. Crowe is independent—as defined by the AICPA Code of Professional Conduct and Government Auditing Standards issued by the Comptroller General of the United States—of City of Miami Beach and any of its agencies, its elected or appointed officials, and its employees. Crowe is not aware of any conflicts of interest relative to performing the proposed audit for the City. Crowe Horvath. www.crowehorwath.com m' MIAMI B EAC H ©Copyright 2015 Crowe Horwath LLP V Audit Services City of Miami Beach 17 References and Past Performance We have provided this information in Sections 1.3 and 2.1 of our proposal. Litigation History Like all large professional service firms, Crowe Horwath LLP is subject to claims from time to time for a variety of reasons, and we occasionally receive notice of claims. Crowe has pending litigation, but it is Crowe's policy not to discuss any specific matters. However, in the view of management; there are no current claims that will result in significant losses to Crowe. Crowe has no pending or threatened litigation, administrative or regulatory proceedings or similar matters that could affect its ability to perform the required services. Crowe has not been the target of any criminal investigation, indictment, prosecution or other proceeding and there are no known felony convictions of any Owners, officers, or primary partners of Crowe. We understand the need for continued reporting of status changes related to this area. Code of Business Ethics Our Core Ideology The firm's core ideology is a combination of the firm's purpose: Building Value with Values®, its core values: We Care, We Share, We Invest, We Grow; and its WIN3 management philosophy that balances the needs of the client, the individual and the firm. This core ideology is simple and powerful. It is at the immutable center of the firm. It defines our values code. In the broadest context, building is what we do and builders are what we are. We choose to build significant and lasting value for our clients and ourselves by applying integrity and demonstrating the highest levels of professionalism in everything we do. Our results are defined by and valued for their ethical standards. Our Core Purpose f3•, j . Our purpose is Building Value with Values®. We choose to build as a f''.1.,,61,1";`Li ;5;- z \ team, and we have high expectations for the significance, creative 16.,`I excellence and value of what we build. We build for the benefit of our end- ,, 4 ` user clients, our communities, our professions and ourselves. The act of 4,14.,.._,.,., ;.e.. building, in and of itself, offers each of us great intrinsic rewards. It also " :,�:_=-", �' 1 ,b; gives us meaning and purpose. The way we build is with integrity at all - levels. s There are four core values that ground the firm: Z We Care itumr i dirila We Share, ` We Invest, .��`"`_ We Grow. Our Management Philosophy WIN3 is the philosophy that Crowe management has chosen as its guide. This philosophy defines the manner in which the firm will function on a daily basis. While there is no universally"right" philosophy, the WIN3 philosophy is seen as the most effective and efficient means to attain our vision of a firm with strong integrity. The WIN3 management philosophy defines success as having a thorough understanding and being responsive to the needs of the client, the individual and the firm. It submits that the best management decisions at all levels will be made when the benefits to all three of these stakeholders are maximized. In the short term, it is expected that one or more stakeholders' needs may take precedence, but over the longer term, success is defined as exceeding the expectations of all three stakeholders in satisfying their needs. Neither the client's, the individual's nor the firm's needs are more important based on their inherent nature. 1 'fA Crowe Horvvath. www.crowehorwath.com m MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 18 There is no hierarchy among the needs of these three. Client STAKEHOLDER (NEEDS) CO-CREATORS VALUED OF VALUE RELATIONSHIPS Firm Individual STAKEHOLDER STAKEHOLDER (NEWS) (NEEDS) MUTUAL COMMITMENT ,4\ Crowe Horvath. www.crowehorwath.com m MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Solicitation No: Solicitation Tale: 2015-043-WG AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED Procurement Contact Tel Email: William Garviso 305.673.7000 x6650 williamgarviso@miamibeachfl.gov PROPOSAL CERTIFICATION, QUESTIONNAIRE & REQUIREMENTS AFFIDAVIT Purpose: The purpose of this Proposal Certification, Questionnaire and Requirements Affidavit Form is to inform prospective Proposers of certain solicitation and contractual requirements, and to collect necessary information from Proposers in order that certain portions of responsiveness, responsibility and other determining factors and compliance with requirements may be evaluated. This Proposal Certification, Questionnaire and Requirements Affidavit Form is a REQUIRED FORM that must be submitted fully completed and executed. General Proposer Information. PROPOSER NAME: Crowe Horwath LLP No of Years in Business: 72 No of Years in Business Locally: No.of Employees: 3,000 OTHER NAME(S)PROPOSER HAS OPERATED UNDER IN THE LAST 10 YEARS: Crowe Chizek LLP PROPOSER PRIMARY ADDRESS(HEADQUARTERS): 225 W Wacker Drive, Suite 2600 CITY' Chicago STATE Illinois ZIP CODE: 60606 TELEPHONE No 312-899-7000 TOLL FREE NO: 888-929-0182 FAX NO. 312-899-5300 FIRM LOCAL ADDRESS, 1395 Brickell Avenue, Suite 1150 CITY. Miami STATE. Florida ZIP COOS: 33131 PRIMARY ACCOUNT REPRESENTATIVE FOR THIS ENGAGEMENT. John C. Weber ACCOUNT REP TELEPHONE NO.: 630.254.6567 ACCOUNT REP TOLL FREE NO. 877-534-0250 ACCOUNT REP EMAIL: john.weber @crowehorwath.corn FEDERAL TAX IDENTIFICATION NO.: 35-0921680 The City reserves the right to seek additional information from Proposer or other source(s),including but not limited to: any firm or principal information, applicable licensure, resumes of relevant individuals, client information, financial information, or any information the City deems necessary to evaluate the capacity of the Proposer to perform in accordance with contract requirements. *Crowe just opened the Miami office but has been operating out of the Fort Lauderdale office for 8 years. l4 1. Veteran Owned Business.Is Proposer claiming a veteran owned business status? YES J ✓ I NO SUBMITTAL REQUIREMENT: Proposers claiming veteran owned business status shall submit a documentation proving that firm is certified as a veteran-owned business or a service-disabled veteran owned business by the State of Florida or United States federal government, as required pursuant to ordinance 2011-3748. 2. 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. SUBMITTAL REQUIREMENT: Proposers must disclose the name(s) of any officer, director, agent, or immediate family member(spouse,parent,sibling,and child)who is also an em ployee of the City of Miami Beach. Proposers must also 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 3. References & Past Performance. Proposer shall submit at least three (3) references for whom the Proposer has completed work similar in size and nature as the work referenced in solicitation. SUBMITTAL REQUIREMENT: For each reference submitted, the following information is required: 1)Firm Name,2)Contact Individual Name&Title,3)Address,4)Telephone,5)Contact's Email and 6)Narrative on Scope of Services Provided. 4. Litigation History.Proposer shall submit a statement of any litigation or regulatory action that has been filed against your firm(s) in the last five years. If an action has been filed, state and describe the litigation or regulatory action filed,and identify the court or agency before which the action was instituted,the applicable case or file number,and the status or disposition for such reported action.If no litigation or regulatory action has been filed against your firm(s),provide a statement to that effect,If'No'litigation or regulatory action has been filed against your flrm(s),please provide a statement to that effect.Truthful and complete answers to this question may not necessarily disqualify a firm from consideration but will be a factor in the selection process. Untruthful, misleading or false answers to this question shall result in the disqualification of the firm for this project. SUBMITTAL REQUIREMENT: Proposer shall submit history of litigation or regulatory action filed against proposer, or any proposer team member firm, in the past 5 years. If Proposer has no litigation history or • regulatory action in the past 5 years,submit a statement accordingly. 5. Suspension,Debarment or Contract Cancellation.Has Proposer ever been debarred,suspended or other legal violation,or had a contract cancelled due to non-performance by any public sector agency? YES I ✓ I NO • SUBMITTAL REQUIREMENT: If answer to above is"YES,"Proposer shall submit a statement detailing the reasons that led to action(s). 15 6. Vendor Campaign Contributions. 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. SUBMITTAL REQUIREMENT: „Submit the names of all individuals or entities (including your sub- consultants)with a controlling financial interest as defined in solicitation.For each individual or entity with a controlling financial interest indicate whether or not each individual or entity has contributed to the campaign either directly or indirectly,of a candidate who has been elected to the office of Mayor or City Commissioner for:the City of Miami Beach. 7. 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 proposal/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. SUBMITTAL REQUIREMENT: Proposer shall submit firm's Code of Business Ethics. In lieu of submitting Code of Business Ethics, Proposer may submit a statement indicating that it will adopt, as required in the ordinance,the City of Miami Beach Code of Ethics,available at www.miamibeachtl.gov/procuremenu.•8. - - _ - - • . - • ... . • $ 48,4 urIywi; -- • - - - r. • - ... .. .• ... . _. .••- January-- 015. •_ .•-'f - _ • - - - ' I•. _ • • - . _ .._ . •, _ th g•Prepesers fail ile-te-GeRply-•. . •. t. . __ • _ - - . _ .. . . -•-__• .. . • ••- _ .. .. . .. 1 •-1 - - - • • • - • - 1 --- • •1 - SUBMITTAL REQUIREMENT: No additional submittal is required. By virtue of executing this affidavit document,Proposer agrees to the living wage requirement. i 16 9. Equal Benefits for Employees with Spouses and Employees with Domestic Partners.When awarding competitively solicited contracts valued at over$100,000 whose contractors maintain 51 or more full time employees on their payrolls during 20 or more calendar work weeks. the Equal Benefits for Domestic Partners Ordinance 2005-3494 requires certain contractors doing business with the City of Miami Beach, who are awarded a contract pursuant to competitive proposals, to provide "Equal Benefits° to their employees with domestic partners,as they provide to employees with spouses.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. A. Does your company provide or offer access to any benefits to employees with spouses or to spouses of employees? ,/ YES NO B. Does your company provide or offer access to any benefits to employees with(same or opposite sex) domestic partners;or to domestic partners of employees? j 1 YES ( I NO • 17 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 Firm Provides for Firm Provides for Firm does not Employees with Employees with Provide Benefit Spouses Domestic Partners Health I ✓ ✓ Sick Leave ✓ / Famil Medical Leave ✓ Bereavement Leave ✓ ✓ If Proposer cannot offer a benefit to domestic partners 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 and submit a completed Reasonable Measures Application (attached) with all necessary documentation. Your Reasonable Measures Application will be reviewed for consideration by the City Manager,or his designee. Approval is not guaranteed and the City Manager's decision is final. Further information on the Equal Benefits requirement is available at www.miamibeachfl.govlprocurementi. 10. Public Entity Crimes. Section 287.133(2)(a), Florida Statutes, as currently enacted or as amended from time to time,states that a person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a proposal,proposal,or reply on a contract to provide any goods or services to a public entity;may not submit a proposal,proposal,or reply on a contract with a public entity for the construction or repair of a public building or public work:may not submit proposals,proposals, or replies on leases of real property to a public entity;may not be awarded or perform work as a contractor, supplier,subcontractor,or consultant under a contract with any public entity;and may not transact business with any public entity in excess of the threshold amount provided in s.287 017 for CATEGORY TWO for a period of 36 months following the date of being placed on the convicted vendor list. SUBMITTAL REQUIREMENT: No additional submittal is required. By virtue of executing this affidavit document,Proposer agrees with the requirements of Section 287.133, Florida Statutes,and certifies it has not been placed on convicted vendor list 11. Acknowledgement of Addendum. After issuance of solicitation, the City may release one or more addendum to the solicitation which may provide additional information to Proposers or alter solicitation requirements.The City will strive to reach every Proposer having received solicitation through the City's e- procurement system, PublicPurchase.com. However, Proposers are solely responsible for assuring they have received any and all addendum issued pursuant to solicitation.This Acknowledgement of Addendum section certifies that the Proposer has received all addendum released by the City pursuant to this solicitation. Failure to obtain and acknowledge receipt of all addendum may result in proposal disqualification. Initial to Confirm Initial to Confirm Initial to Confirm Receipt Receipt Receipt JCW Addendum 1 Addendum 6 Addendum 11 } Addendum 2 Addendum 7 Addendum 12 Addendum 3 Addendum 8 Addendum 13 Addendum 4 Addendum 9 Addendum 14 Addendum 5 1 Addendum 10 Addendum 15 If additional confirmation of addendum is required,submit under separate cover. 18 117tc0.tu �oiscsECrio The solicitation referenced herein 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 solicitation,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 solicitation,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 solicitation either before or after receiving proposals,may accept or reject proposals;and may accept proposals which deviate from the solicitation,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 solicitation. Following submission of a Bid or 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 applicants 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 solicitation. Any reliance on these contents.or on any permitted communications with City officials,shall be at the recipients own risk. Proposers should rely exclusively on their own investigations, interpretations, and analyses. The solicitation 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 solicitation, the selection and the award process,or whether any award will be made. Any recipient of this solicitation 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 solicitation are submitted at the sole risk and responsibility of the party submitting such Proposal. This solicitation 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 solicitation 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 proposal form and shall • remain confidential to the extent permitted by Florida Statutes, until the 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 solicitation.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 solicitation,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 solicitation,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. 19 In the event of any differences in language between this Disclosure and Disclaimer and the balance of the solicitation, it is understood that the provisions of this Disclosure and Disclaimer shall always govern. The solicitation and any disputes arising from the solicitation shall be governed by and construed in accordance with the laws of the State of Florida 20 Pc. PR®POSER.CERTIFICATilON- r '-' I-hereby certify that I, as an authorized agent of the Proposer, am submitting the following information as my firm's proposal; Proposer agrees to complete and unconditional acceptance of the terms and conditions of this document, inclusive of this solicitation,all attachments,exhibits and appendices and the contents of any Addenda released hereto, and the Disclosure and Disclaimer Statement; Proposer agrees to be bound to any and all specifications, terms and conditions contained in the solicitation,and any released Addenda and understand that the following are requirements of this solicitation and failure to comply will result in disqualification of proposal submitted; Proposer has not divulged, discussed;or compared the proposal with other Proposers and has not colluded with any other Proposer or party to any other proposal;Proposer acknowledges that all information contained herein is part of the public domain as defined by the State of Florida Sunshine and Public Records Laws;all responses,data and information contained in this proposal, inclusive of the Proposal Certification,Questionnaire and Requirements Affidavit are true and accurate. Name of Proposers Authorized Representative: Title of Proposers Authorized Representative: John C. Weber Partner Sig.v ture of Proposers Authorized Representative: Date: 44; . t,/,/,(A_________ /1"--/s-- State of i ) On this/ day ofL). ,206,personally appeared before me. hn trail'r who County of 40 stated that (s)he is theAP/hori2r� pi n At of Qioof OfeiZe 1 or - , a corporation, and that the instrument was signed in behalf of the said corporation by authority of its board of directors and acknowledged said instrument to be its voluntary act and deed.Before me: Notary Public for the State of F-J o ri ��,.tipar AFB,,, KAREN L.MCCULLY My Commission Expires: ,r►f c- 9 f 20 . ?° ', `I;: Notary Public-State of Florida ''�� ,,,, 4 My Comm.Expires May 29.2016 .;f-,��Q.; Commission#EE 203170 OFF,,,•� Bonded Through National Notary Assn. 21 Audit Services City of Miami Beach 19 Appendix Resumes We have provided resumes for the proposed engagement team on the following pages. Crowe Horwath. www.crowehorwath.com m MIAMI B EAC H ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 20 John C. Weber, CPA — Partner Professional Summary Mr. Weber has over twenty three years of experience focusing his entire career in providing assurance and consulting services to public sector clients including government, college and university and non- profit organizations. Mr. Weber has also served as Crowe's national partner in charge of the governmental audit practice. Experience Audit Experience Municipal County • Village of Bridgeview a Broward County a City of Burbank i Pinellas County a City of DesPlaines a Will County ■ Village of Elmwood Park Special Districts • City of Fort Lauderdale 1 Chicago Transit Authority a Village of Glendale Heights a Children's Board of Hillsborough County • Village of Hillside a Dallas Area Rapid Transit a Village of Hoffman Estates a Lakeland Area Mass Transit District a City of Lakeland a Metra a Village of Franklin Park a Metropolitan Water Reclamation District of a City of Miami Beach Greater Chicago a Village of Rantoul a Miami Dade Transit a Village of River Grove a Northern Indiana Commuter Transportation a City of Tampa District _a North Texas Tollway Authority State a Pace(Suburban Bus Division of the Regional a Florida State Board of Administration Transit Authority) a Illinois Office of the Auditor General a Illinois Department of Corrections Federal Special Inspector General for Afghanistan a Illinois Department of Revenue Reconstruction a Illinois Environmental Protection Agency _a Illinois State Lottery Illinois State Treasurer's Office a Illinois Student Assistance Commission a Illinois Tollway Authority a Indiana State Lottery Commission a Kentucky Lottery Corporation Crowe Horvath. www.crowehorwath.com 05, MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 21 Consulting Engagements Accounting/Operational Consulting Consulting Clients a Audit Preparation I Broward County, Florida-Sheriffs Office a Capital Budgeting I Chicago Park District • Comprehensive Annual Financial Report City of Boulder, Colorado Preparation City of Coral Springs, Florida a Departmental Costing Analysis 1 City of Dayton, Ohio • Internal Audit Department Outsourcing I City of Fort Worth, Texas a Performance Audits a City of Miami Beach, Florida Business Process Reengineering I City of Tarpon Springs, Florida a Internal Control Assessments and I Indiana Bureau of Motor Vehicles Implementation Marion County, Indiana-Sheriffs Office a Departmental Re-Structuring a Metropolitan Water Reclamation District of • Policy and Procedure Manual Development Greater Chicago • Transition Auditing Publications and Speaking Engagements Mr. Weber has a number of publications including: _I OMB Releases New Compliance and Reporting Information for Recovery Act Spending, Government Advantage Update, Aug. 17, 2009 i Preventing Deficiencies for Single Audits, Not-for-Profit Advantage, Winter 2007 I Avoiding Pitfalls in Single Audits, Government Advantage, Fall/Winter 2007 _4 Forming an Audit Committee:A Matter of Dollars and (Good) Sense, Government Advantage, Winter 2006 Licenses and Certifications i Certified Public Accountant(CPA) I Florida, Illinois Professional Affiliations 4 American Institute of Certified Public Accountants(AICPA) I Former Firm Representative to the Government Audit Quality Center I Florida Institute of Certified Public Accountants I Member 4 Illinois CPA Society I Former Member, Ethics Committee I Illinois Government Finance Officers Association I Member 4 United States Comptroller General Advisory Council on Government Auditing Standards I Member Education I Bachelor of Science in Accounting • Elmhurst College • Elmhurst, Illinois ACrowe Horvath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 22 Kevin W. Smith, CPA — Partner Professional Summary Mr. Smith is a partner in Crowe's Dallas/Fort Worth office; he joined Crowe in August 2009. He has approximately twenty years of experience providing both advisory and financial statement and compliance audits primarily to governmental, not-for-profit, and the higher education industry receiving federal awards. Prior to joining Crowe, Mr. Smith was a partner with KPMG LLP,where he served as one that firm's designated A-133 concurring review partners. In addition, Mr. Smith was recently appointed as a member to the AICPA's State &Local Government Expert Panel. Experience Audit Experience Municipal Special Districts ® City of Arlington • Dallas Area Rapid Transit City of Carrollton �■ Dallas Fort Worth International Airport 1111 City of Cedar Hill a Employee Retirement Fund of Dallas a▪ City of Cleburne Houston Housing Finance Corporation a City of Dallas Houston Metro Transportation Authority • City of Denton a North Texas Tollway Authority City of Frisco 31 The Navajo Nation ▪ City of Midland a Work Source for Dallas County a City of Plano City of San Antonio a Dallas County State • California State Teachers Retirement System a State of Arkansas—State Wide CAFR • State of Arkansas—Division of Legislative Audit I State of Illinois—State Wide Single Audit— Various Agencies r Crowe Horvath. www.crowehorwath.com ® MIAMI B EAC H ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 23 Consulting Engagements Accounting/Operational Consulting Consulting Clients is Audit Preparation City of Arlington/Dallas Cowboys a Subrecipient Monitoring a City of Corpus Christi a Comprehensive Annual Financial Report • City of Dallas Preparation City of Fort Worth ▪ GASB 34 Implementation City of Frisco a Departmental Costing Analysis City of Irving a a Operational, Procedural and Performance r City of Plano Audits Business Process Reengineering a Dallas Convention and Visitors Bureau a Internal Control Assessments ISO New England ▪ Departmental Re-Structuring -I New York Independent System Operator s Policy and Procedure Manual Development North Central Texas Council of Government Transition Auditing II North Texas Tollway Authority Information Technology a Oklahoma State Department of Transportation ■ System Needs Analysis/System State of Arizona Auditor General—Rio Implementation Nuevo Multi-Purpose Facilities District a Fund Structure and Chart of Accounts a State of Arkansas—Arkansas Lottery Commission a State of South Carolina—Office of the Comptroller General Publications and Speaking Engagements Publications: "Mitigate Compliance risks Through Best Practices in Grants Management." Smith, Kevin W. and Eric J. Russell. Journal of the National Grants Management Association. Winter 2011, Volume 19, Number 2. Speaking Engagements: Mr. Smith has developed and/or lead internal and external Continuing Education Training programs related to: ti Single Audit Controls • A-133 Auditing • Yellow Book Standards • GASB Standards A sample of selected other speaking engagements include: ✓ Southeastern Intergovernmental Audit Forum—September 2011, Ft. Lauderdale, FL"OMB A-133 Update" • American Institute of Certified Public Accountants—August 2011 Washington DC, Government Accounting and Auditing Conference—"Sub-recipient Monitoring the Auditee and Auditor's Perspective" Crowe Horwath. www.crowehorwath.com (F.4 MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 24 t' American Institute of Certified Public Accountants—August 2011 Washington DC, Government Accounting and Auditing Conference—"Impact of Economic Downturn on Audits of Local Governments" Oklahoma Society of CPA's—June 2011, Oklahoma City"Sub-recipient Monitoring the Auditee and Auditor's Perspective" * Electric Utilities Consultants, Inc. -October 2010 Baltimore, Maryland "Government Audits of Federal Grant Recipients" 1 Electric Utilities Consultants, Inc. - June 2010 Chicago, Illinois"ARRA Reporting, Grant Management&Audit Processes" I Government Finance Officers Association of Texas 2009 Fall Conference Fort Worth, Texas"Audit Guidance under a New ARRA" I McCall, Parkhurst&Horton LLP Presents"Build America Bonds A-Z"—Spring 2010, Irving, Texas I Association of Local Government Auditors—2010 National Conference, San Antonio, Texas "Auditing Franchise Revenues" i• State of Arkansas Department of Finance and Administration—2010"GAAP Update&ARRA Issues" Little Rock, Arkansas Southwest School of Government 2007 and 2008"Governmental Accounting— 101" Lubbock, Texas 1 International Bridge, Tunnel, and Turnpike Association 2007—Organization Management Workshop "When Does a Benefit Become a Liability—GASB Statement 45"Austin, Texas • Government Finance Officers Association of South Carolina 2002—"GASB 34 Background and Implementation Issues", Hilton Head, South Carolina Licenses and Certifications _.1 Certified Public Accountant(CPA) I California, New York,Texas Professional Affiliations • American Institute of Certified Public Accountants I State and Local Government Expert Panel, Government Accounting and Auditing Conference Planning Committee Member • Texas CPA Society I Member I Government Finance Officers Association I Certificate of Excellence Reviewer • Government Finance Officers Association of Texas I Financial Reporting and Regulatory Compliance Committee, Program Development Committee I Association of Government Accountants I Member I Baptist Foundation of Texas I Institutional Audit Group Education I Bachelor of Science in Accounting,with Honors • East Central University • Ada, Oklahoma A Crowe Horvath, www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 25 Michael J. Ciminero, CIA, CGAP - Senior Manager Professional Summary Mr. Ciminero is a Senior Manager with Crowe's Performance Government Group with over fifteen years of government and non-profit audit, compliance, and consulting experience. He brings in-depth experience in the field of accounting, assurance, and internal audit procedures and techniques. He is a Certified Internal Auditor(CIA)and a Certified Government Auditing Professional (CGAP). Experience Ui Mr. Ciminero's client base primarily includes governmental, educational, community development, and other nonprofit organizations. Significant responsibilities and experience include: a Current Project Manager for various risk assessment, internal audit, agreed-upon-procedure, and other compliance reviews with Illinois Institute of Technology,American Dental Association, Cities of Tarpon Springs and Coral Springs Florida, YMCA of the USA, Northwestern University, Archdiocese of Chicago, Argonne National Laboratory, Metro Washington Airport Authority, and various other large governmental and nonprofit entities A Performance of variance compliance reviews related to several governmental entities, including Chicago Housing Authority, North American Electric Reliability Corporation, Chicago Public Schools, Chicago Transit Authority, Illinois Student Assistance Commission, and the Illinois Department of Commerce and Economic Opportunity, and various others. a Financial audits and internal control review engagements for various governmental entities. _a Documentation and assessment of internal controls over all financial cycles as well as EDP specific controls for audit and other consulting engagements. _a Supervision of staff and engagements in delivery of services, including attestation, financial statement preparation, and financial audits and reviews. a Assisting clients in the development of internal controls to improve efficiency and execution of business processes. Government and University Clients A Illinois Institute of Technology—Internal Audit a Argonne National Laboratory— Internal Audit a United States Department of Treasury— Internal Audit a Illinois Student Assistance Commission—Internal Audit • Metropolitan Washington Airport Authority—Internal Audit a Town of Palm Beach, Florida— Internal Audit a City of Tarpon Springs, Florida— Internal Audit a City of Coral Springs, Florida—Internal Audit • Illinois Office of the Secretary of State—Internal Audit Assessment a Chicago Board of Education—Internal Audit and Consulting a Children First Fund, Foundation of Chicago Public Schools—Accounting Services a Chicago Housing Authority— Internal Audit and Assurance a Chicago Transit Authority-Assurance • Northwestern University— Internal Audit a Northeastern Illinois University—Internal Audit Assessment a University of Illinois—Chicago-Assurance a West Aurora School District-Assurance a Illinois Finance Authority— Internal Audit Crowe Horvath. www.crowehorwath.com ea MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 26 I Illinois Gaming Board-Assurance • Illinois Department of Corrections—Accounting Services ▪ Illinois Department of Commerce and Economic Opportunity-Assurance • LaPorte County, Indiana-Consulting a Chicago Park District a Office of State Auditor, Mississippi a Roosevelt University a City of Chicago a Regional Transportation Authority ▪ Pace Suburban Bus a Metropolitan Water Reclamation District of Chicago a Numerous Cities, Counties, and School Districts in the State of Ohio I Not-for-Profit Clients a The YMCA of the USA— Internal Audit a Archdiocese of Chicago— Internal Audit ® American Dental Association—Internal Audit I Community and Economic Development Association of Cook County—Internal Audit a North American Electric Reliability Corporation a Lakeland Electric a St Joseph Seminary, Loyola University— Internal Audit a Feeding America(formerly America's Second Harvest)— Internal Audit a Diocese of Grand Rapids, Michigan a Property Casualty Insurers Association of America—Internal Audit a Metropolitan Pier and Exposition Authority(MPEA)-Assurance a The Resurrection Project a Mission Investment Fund of the ELCA a Chicago Christian Industrial League Licenses and Certifications • Certified Internal Auditor(CIA) 4 Certified Government Auditing Professional (CGAP) Professional Affiliations a' The Institute of Internal Auditors(IIA) I Member I The Association of Certified Fraud Examiners(ACFE) I Member a' The Government Finance Officers Association (GFOA) I Member Education ▪ Bachelor of Science,Accounting _a Youngstown State University _a Youngstown, Ohio Crowe Horwath. www.crowehorwath.com e' MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 27 C. Michelle Blackstock, CPA/CITP — Senior Manager Professional Summary Ms. Blackstock has twenty five years of experience in providing assurance services to public sector clients. Ms. Blackstock has prior work experience in both international and local public accounting firms Experience Audit Experience Municipal Special Districts a Town of Davie II South Florida Water Management District ▪ City of North Lauderdale Single Audit • City of Cooper City a South Indian River Water Control District City of Fort Lauderdale a Pinellas Park Water Management District • City of Miami Beach _a South Trail Fire and Rescue District a Town of Hillsboro Beach a East Naples Fire Rescue District a Town of Lauderdale-By-The-Sea a Loxahatchee Groves Water Control District a Village of Wellington a Central Broward Water Control District • Town of Hypoluxo I Canaveral Port Authority a Town of Haverhill 1 Sanford Port Authority a Town of Hypoluxo a Miami Dade Transit a Town of Glen Ridge 3 Various Community Development Districts a Town of Cloud Lake ,1 Parkland Police Pension Fund a Jacksonville Police and Fire Pension Fund a City of Oviedo a City of Marietta, Georgia County a Housing Finance Authority of Broward County a Floyd County, Georgia a Cobb County Health Department Gwinnett County Health Department Publications and Speaking Engagements mi Internal Controls, Florida Institute of Certified Public Accountants 22nd Annual Accounting Show, June 2007 it Panel discussion on Special District Governance, Florida Association of Special Districts annual conference, June 2008, 2009 and 2011 Financial Reporting-Audit Requirements&Transparency, Florida Association of Special Districts annual conference, June 2010 Finance-New Reporting Requirements, Audit Update& How to Read and Understand Your Audit, Florida Association of Special Districts annual conference, June 2012 Crowe Horvath. www.crowehorwath.com m MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 28 • Fraud, Florida Government Finance Officers Association annual conference, June 2012 • Reading and Understanding Your Audit, Florida Association of Special Districts annual conference, June 2013 Licenses and Certifications I Certified Public Accountant(CPA) I Florida Certified Information Technology Professional CITP,AICPA Professional Affiliations American Institute of Certified Public Accountants(AICPA) I Member I Florida Institute of Certified Public Accountants(FICPA) I Member I Government Finance Officers Association (GFOA) I Special Review Committee • Florida Government Finance Officers Association (FGFOA) I Member Community Involvement and Other Professional Activities • Greater Palm Beaches Alumnae Association of Delta Gamma Fraternity I Treasurer • First United Methodist Church of Boca Raton I Assistance Treasurer Education I Bachelor of Science in Business Administration, Accounting ▪ University of Central Florida • Orlando, Florida Crowe Horvath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 29 Michael Rozelle — Senior Staff Professional Summary Michael Rozelle started at Crowe Horwath, LLP in September 2012 and has worked on multiple government engagements. Prior to joining Crowe, Michael gained experience dealing with not-for-profit entities. Experience Broward County ▪ Pinellas County • City of Ft. Lauderdale _I City of Miami Beach I Miami Dade Transit Education I Masters of Science in Accountancy a Indiana University a Bloomington, Indiana I Bachelors of Science in Finance a Ball State University _a Muncie, Indiana Crowe Horvath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 30 Craig D. Sullivan, CPA, CISA, QSA — Partner Professional Summary Craig has 30 years'experience in accounting and technology consulting related to Risk Management and Information Technology Controls. He is responsible for the thought leadership and technical activities of the Technology Risk activities of Crowe's Risk Consulting Services business unit on a Firm- wide basis. Experience I Oversight direction and continued advancement for supporting the Audit business unit's external financial audit practice I Directing, managing, and signing Service Organization Controls(SOC)report(SSAE 16/SOC1/SOC2)examinations for many different processing environments I Performs Data Security Compliance reviews on behalf of the Payment Card Industry(designated as a Qualified Data Security Professional) I Assistance with management and strategic direction of Crowe's Technology Risk Management& Information Security Services I Direct responsibility of coordination and scheduling of staff members and others as assigned 4 Review of staff activities, workpapers, and reports related to all external audit technology risk controls evaluations and assisting the integrated audit teams in the completion of Public Company control evaluations and conclusions. I Development of procedures to assist in the resolution of conversion balancing problems. I Creation and presentation of training courses for both internal Crowe Horwath seminars and for external banking and financial organizations Publications and Speaking Engagements Mr. Sullivan has taught Management Information Systems and Accounting courses at Bowling Green State University. Currently, he is active in the Continuing Professional Education program of Crowe Horwath and teaching a variety of audit, control and technology courses for Crowe staff members, as well as presenting similar courses for Internal Audit Seminars. Licenses and Certifications 4 Certified Public Accountant(CPA) • Certified Information Systems Auditor(CISA) I Qualified Security Assessor(QSA) Professional Affiliations Iw Michiana Public Broadcasting Corporation (WNIT Channel 34), a PBS Station I Board Member • Institute of Internal Auditors(IIA Organization) I Member 40\ Crowe Horwath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 31 Education Master of Accountancy • Bowling Green State University • Bowling Green Ohio Bachelor of Science in Business Administration, Accounting and Management Information Systems a Bowling Green State University ▪ Bowling Green, Ohio ,�J Crowe Horwath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 32 Steven Kocaj, CISA — Manager Professional Summary Steve is a manager consultant with Crowe Horwath LLP, providing general controls, application controls, and related special consulting services to clients. Experience Steven Kocaj is a manager with the IT Risk group, out of Fort Lauderdale, FL. Steven has over four(4) years of experience providing consulting services and performing attestation audits for information systems. The majority of clients Steven serves are in the financial institution, healthcare and manufacturing industries. Steven focuses on conducting Sarbanes-Oxley(SOX)compliance for financial statement audits, internal audits for SOX, risk assessments, and conducting FFIEC reviews for financial institutions. Before returning to Crowe Horwath, Steven worked as an IT Internal Auditor for a publicly traded company that generated $1.5 billion in revenue with IT operations in four countries. His primary responsibility was conducting planning,fieldwork and reporting on the controls relating to SOX. Steven also spent four years in public accounting where he provided external audit IT support, general control reviews, related special consulting services to clients, performed pre-audit work as well fieldwork for SSAE 16 engagements. Steven is a Certified Professional Accountant(CPA)in the state of Indiana(will be certified in the state of Florida in 2016). In addition, Steven has his Certified Information System Auditor(CISA)certification. IT Audit and Attestation Experience Executed audits of various applications and system platforms to assess information system controls for public, private and companies complying with FDICIA reviews. ' Developed Sarbanes-Oxley 404 process and documentation of key IT controls. I Reviewed technology,financial and operational processes to assess business risk, internal control, and the overall effectiveness and efficiency of processes. it Managed service organization examinations, including planning, testing, and documenting test results and recommendations. • Conducted SSAE 16, Type 1 and Type 2 attestations for software and business process outsources (payroll, item processing, third party collection agencies, and other processes). The controls included both IT general controls and business process controls. Internal Audit Experience • Assisted clients with developing and testing IT general controls and application controls in a co- sourcing and outsourcing arrangements. 1 Developed risk assessments based on different compliance and needs of the client; such as SOX, disaster recovery, HIPAA, and non-public financial audits. Informed clients and Chief Audit Executives(CAEs)on the regulatory and environmental changes that will impact current risk assessments. • Reviewed and tested for IT compliance under FFIEC Handbooks for Financial institutions ' Analyzed data and conducted interviews for investigations within different functional areas. A Crowe Horwath. www.crowehorwath.com ® MIA M I BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 33 Ni Conducted specialized segregation of duties testing across companywide ERP System, and reported conflicts to director of Internal Audit on a periodic basis. I Reviewed and assisted companies in documenting business continuity policies. Including business impact analysis, disaster recovery plan, risk assessments, testing, and drafted memos to the Board of Directors. License's and Certifications I Certified Public Accountant(CPA) I Indiana 4 Certified Information Systems Auditor(CISA) Professional Affiliations I Information Systems Audit and Control Association (ISACA) South Florida I Member I American Institute of Certified Public Accountants(AICPA) I Member I Society of Certified Public Accountants I Member Education 4 Masters of Science in Information Systems 4 Bachelor of Science in Business I Indiana University _a Bloomington, Indiana A, Crowe Horwath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 34 Pubbens Clermont — Staff Professional Summary As a staff member in the Fort Lauderdale Risk Consulting practice, Pubbens is responsible for performing consulting services related to IT general controls, application controls and Sarbanes-Oxley. In addition, Pubbens performs SSAE16/SOC reviews and conducts Financial Audit Support jobs. Experience Reviewing controls in both an internal and external audit environment I Performing Information System General Control reviews of data centers that include the following areas of walkthrough, inspection, inquiry, and testing: Logical Access(User Provisioning and Segregation of Duties), Physical Security, Disaster Recovery Planning and Testing (Business Continuity Planning), IS Related Insurance (Testing adequacy of coverage), Assessment of Policies and Procedures regarding IS controls, System Development(Change management processes and execution), and Computer Operations(job scheduling, file handling, retention, etc.). Financial Audit Support control testing: Perform testing on financially significant applications to determine the impact of control operation on the results of financial audit procedures and results. I Testing of Sarbanes-Oxley and Gramm-Leach-Bliley Act Controls through documented walkthroughs and control testing to evaluate control operating effectiveness I Review and testing of controls in support of SSAE16 and SOC reports Professional Affiliations 4 Information Systems Audit and Control Association (ISACA) I Member Education it Bachelor of Business Administration (BBA)in Management Information Systems(MIS) I Bachelor of Business Administration (BBA)in Finance • Florida International University • Miami, Florida A Crowe Horvath. www.crowehorwath.com m' MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 35 Appendix C: Exceptions Crowe has reviewed the Request for Qualifications,Audit Services for Resort taxes and Other Internal Audits—2015-043-WG. We propose the below modifications to the Request for Qualifications. The proposed modifications would be similar to Crowe's current contract with the City to perform the annual audit which have been agreed to by the City in our PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND CROWE HORWATH LLP FOR AUDITING SERVICES PURSUANT TO RFP 2014 276 LR. Appendix E, Section 6, 6.1, Indemnification—Replace with: Consultant agrees to indemnify and hold harmless the City of Miami Beach and its officers, employees, agents, and contractors, from and against any and all actions(whether at law or in equity), claims, liabilities, losses, and expenses, including, but not limited to, attorneys'fees and costs, for personal, economic or bodily injury,wrongful death, loss of or damage to property, which may arise or be alleged to have arisen from the negligent acts, errors, omissions or other wrongful conduct of the Consultant, its officers, employees, agents, contractors, or any other person or entity acting under Consultant's control or supervision, in connection with, related to, or as a result of the Consultant's performance of the Services pursuant to this Agreement.To that extent, the Consultant shall pay all such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses, and shall pay all costs and attorneys' fees expended by the City in the defense of such claims and losses,including appeals. The parties agree that one percent(1%) of the total compensation to Consultant for performance of the Services under this Agreement is the specific consideration from the City to the Consultant for the Consultant's indemnity agreement. The provisions of this Section 6.1 and of this indemnification shall survive termination or expiration of this Agreement. Appendix E, Section 6, 6.2, Insurance Requirements—Replace with: The Consultant shall maintain and carry in full force during the Term, the following insurance 1. Consultant General Liability,in the amount of$1,000,000; 2. Consultant Professional Liability, in the amount of$1,000,000;and 3. Workers Compensation&Employers Liability,as required pursuant to Florida Statutes. The insurance must be furnished by insurance companies authorized to do business in the State of Florida. All insurance policies must be issued by companies rated no less than "B+" as to management and not less than "Class VI" as to strength by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey,or its equivalent. Consultant shall endeavor to provide not less than thirty (30) days prior written notice of termination, cancellation or reduction in coverage in the policy, unless comparable coverage is promptly secured. Original certificates of insurance must be submitted to the City's Risk Manager for approval(prior to any work and/or services commencing) and will be kept on file in the Office of the Risk Manager. The City shall have the right to obtain from the Consultant specimen copies of the insurance policies in the event that submitted certificates of insurance are inadequate to ascertain compliance with required coverage. Crowe Horwath. www.crowehorwath.com MIAMI B EAC H ©Copyright 2015 Crowe Horwath LLP Audit Services City of Miami Beach 36 . The Consultant is also solely responsible for obtaining and submitting all insurance certificates for any sub-consultants. Compliance with the foregoing requirements shall not relieve the Consultant of the liabilities and obligations under this Section or under any other portion of this Agreement. The Consultant shall not commence any work and or services pursuant to this Agreement until all insurance required under this Section has been obtained and such insurance has been approved by the City's Risk Manager. Crowe Horwath. www.crowehorwath.com ® MIAMI BEACH ©Copyright 2015 Crowe Horwath LLP r Garviso, William From: Weber;John__<john weber,@c_rowehorwath;com> Sent: Monday, March 09, 2015 10:46 AM To: Mardayan-Salguero, Anna; Garviso, William Subject: RE: RFQ 2015-043-WG Audit Services for Resort Taxes and Other Internal Audits- City of Miami Beach -- Follow-Up-Flag:- --- - --Follow-up - — - -- — -- -Flag Status: Flagged Mr. Garviso, Can you please let us know if we have satisfied your request for additional information. Thanks From: Mardayan-Salguero,Anna Sent: Friday, March 6, 2015 3:57:09 PM To:williamgarviso @miamibeachfl.gov Cc:Weber,John Subject: FW: RFQ 2015-043-WG Audit Services for Resort Taxes and Other Internal Audits-City of Miami Beach Mr. Garviso, Thank you for contacting us! Attachedtplease-:find-the 3l emai_Is_tb:a:twwere=sent-toyou-'in regIr.-Ts-Co-Ada dnd 2-4 -Since-our proposal-was submi.tte.d on e Ja-nuar:14th. to make.-the,o:n rn_a:I due da_te:ofJ,anuar J5th:we were onl able_to.acknowl,ed e:on:the form Addendum- _::, �.g�..�---=y-- `;#=1.-However, per our conversation on January 15th, we were instructed by you to email our future acknowledgements. In addition, according to your website, only 4 addenda have been issued. Please see the "RFQ Information from Website" file. If we have missed the Addendum #5, could you please let us know where to find and acknowledge it? In.regards to Section 6'we have`',None"wtgdisclose !: If I can provide any additional information, please let me know. Thank you for your time. Anna Mardayan-Salguero Crowe Horwath LLP Office: 818-325-8467 I Fax: 818-325-8567 anna.mardayan(a.crowehorwath.com www.crowehorwath.com From: Garviso, William <WilliamGarviso @miamibeachfl.gov> Sent: Friday, March 6, 2015 1:14:59 PM To: Weber,John 1 Cc: Rodriguez, Lourdes; Granado, Rafael Subject: FW: RFQ 2015-043-WG Audit Services for Resort Taxex and Other Internal Audits-City of Miami Beach Good Morning Mr.Weber, In order to further evaluate your proposal for the above mentioned (OTHER INTERNAL AUDITS) solicitation we need the following clarification or additional information. Your firm did not provide responses to the following disclosure questions found in the solicitation's Proposal Certification Questionnaire and Requirements Affidavit,Please disclose-in-accor-d-with-P-ar-agr-aph-6 Vendor-Campaign-- - Contributions. You firm also only acknowledged addendum 1 of 5. Please clarify. can OEM 421M11111111111:01i 411•1111121911112111111, \ i P William Garviso, CPP13 Procurement Department 1700 Convention Center Drive, Miami Beach, FL 33139 Tel: 305-673-7000 Ext. 6650/Fax: 786-394-4002/williamgarviso(a miamibeachfl.gov We are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical,historic community. This email message,including attachments,is from Crowe Horwath LLP and may contain privileged or confidential information.If you are not the intended recipient of this message,you may not make any use of,or rely in any way on,this information,and you should destroy this message and notify the sender by reply email.Any opinions or advice contained in this email are subject to the terms and conditions in any applicable agreement or contractual obligation.Any legally binding obligation must be reduced to a separate writing executed by all parties,and this email does not constitute a contract or other legally binding obligation.Opinions,conclusions and other information in this message that do not relate to the official business of my firm must not be understood by you as given or endorsed by the firm.Any tax advice expressed in this communication by Crowe Horwath LLP should not be construed as a formal tax opinion unless expressly stated. 2 SFMSE-1 OP ID: P4 AC®1?®9 DATE(MM/DD/YYYY) CERTIFICATE OF LIABILITY INSURANCE 10/30/2015 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies) must be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). CONT PRODUCER NAMEACT Fausto Alvarez BROWN&BROWN OF FLORIDA INC 14900 NW 79th Court Suite#200 (A/C.No.Ext):305-364-7800 FAX No): 305-714 4401 Miami Lakes,FL 33016-5869 E-MAIL Fausto Alvarez ADDRESS: INSURER(S)AFFORDING COVERAGE NAIC# INSURER A:AmeriSUre Insurance Company 19488 INSURED SFM Services,Inc. INSURER B:The North River Ins.Company 21105 SFM Janitorial Services LLC 9700 NW 79 Avenue INSURER C: - Hialeah,FL 33016 INSURER D: INSURER E: • INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE INSD SUBR POLICY NUMBER POLICY EFF POLICY EXP LIMITS (MM/DDIYYYY) (MM/DD/YYYY) A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE X OCCUR X GL206548906 11/01/2015 11/01/2016 PREMI DAMAGE TO RENTED 100,000 PREMISES(Ea occurrence) $ X Retention:$10,000 MED EXP(Any one person) _ $ 5,000 PERSONAL&ADV INJURY $ 1,000,000 GE 'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 POLICY X JECT LOC PRODUCTS-COMP/OP AGG $ 2,000,000 OTHER: Emp Ben. $ 1,000,000 AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1,000,000 (Ea accident) A X ANY AUTO CA206549106 11/01/2015 11/01/2016 BODILY INJURY(Per person) $ ALL OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS AUTOS NON-OWNED PROPERTY DAMAGE HIRED AUTOS _ AUTOS (Per accident) X UMBRELLA LIAB X OCCUR EACH OCCURRENCE $ 3,000,000 B EXCESS LIAB CLAIMS-MADE 5811061437 11/01/2015 11/01/2016 AGGREGATE $ 6,000,000 DED RETENTION$ $ WORKERS COMPENSATION X AND EMPLOYERS'LIABILITY STATUTE FOR H A ANY PROPRIETOR/PARTNER/EXECUTIVE Y/EiN Vr'C2066144 12/1 2/2015 12/12/2016 E.L.EACH ACCIDENT 1,000,000 OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ 1,000,000 If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ 1,000,000 � C --v DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) T� City of Miami Beach is listed as additional insured with respects to General Liability when required by written contract. 7 co CC)C--) rrl c D rr7 cn CERTIFICATE HOLDER CANCELLATION / MIAMIBE SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Miami Beach ACCORDANCE WITH THE POLICY PROVISIONS. 1700 Convention Center Drive Miami Beach, FL 33139 AUTHORIZED REPRESENTATIVE i l Brown and Brown of Florida,Inc. ©1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25(2014/01) The ACORD name and logo are registered marks of ACORD I