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Resolution 2018-30389RESOLUTION NO. 2018- 30389 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 2018- 081 -JC, FOR COST CONTROL AND RECOVERY AUDIT SERVICES; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH UTIL AUDITORS, LLC, THE SOLE RANKED PROPOSER, FOR CATEGORY 1, CREDIT CARD PROCESSING; FURTHER, AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH PUBLIC RISK ADVISORS, THE SOLE RANKED PROPOSER, FOR CATEGORY 2, INSURANCE POLICIES; AND FURTHER, AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH ECS BUSINESS SERVICES, THE SOLE RANKED PROPOSER, FOR CATEGORY 5, ELEVATOR SERVICES AGREEMENTS; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH EACH OF THE SUCCESSFUL PROPOSERS UPON CONCLUSION OF NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, on February 14, 2018, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) No. 2018- 081 -JC, for Cost Control and Recovery Audit Services; and WHEREAS, the RFP was issued on February 15, 2018, with an opening date of March 29, 2018; and WHEREAS, a non - mandatory pre - proposal meeting was held on March 7, 2018; and WHEREAS, on May 7, 2018, the City Manager, via Letter to Commission (LTC) No. 256 -2018, appointed an Evaluation Committee (the "Committee "); and WHEREAS, on May 4, 2018, the City received a total of four (4) proposals, three of which were deemed to be responsive proposals; and WHEREAS, the proposal received from AudiTec Solutions, Inc., was deemed non - responsive for failure to conform to the RFP submittal requirements; and WHEREAS, only one (1) proposal was received for Category 1, Credit Card Processing; only one (1) proposal was received for Category 2, Insurance Policies; and only one (1) proposal was received for Category 5, Elevator Services Agreements; and WHEREAS, no proposals were received for Category 3, Security Services, or Category 4, Shipping Services; and WHEREAS, the Committee convened on May 23, 2018 to review and score the responsive 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, and a copy of each proposal; and WHEREAS, the Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFP; and WHEREAS, the Committee's ranking was as follows: Util Auditors, LLC, as the sole ranked proposer, for Category 1, Credit Card Processing; Public Risk Advisors, as the sole ranked proposer, for Category 2, Insurance Policies; and ECS Business Services, as the sole ranked proposer, for Category 5, Elevator Services Agreements; and WHEREAS, after reviewing all the submissions and the results of the evaluation process, the City Manager recommends that the Mayor and City Commission authorize the Administration to enter into negotiations with Util Auditors, LLC, the sole ranked proposer, for Category 1, Credit Card Processing; further, authorize the Administration to enter into negotiations with Public Risk Advisors, the sole ranked proposer, for Category 2, Insurance Policies; and further, authorize the Administration to enter into negotiations with ECS Business Services, the sole ranked proposer, for Category 5, Elevator Services Agreements. 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 of the City of Miami Beach, Florida hereby accept the recommendation of the of the City Manager, pursuant to Request for Proposals (RFP) No. 2018 - 081 -JC, for Cost Control And Recovery Audit Services; authorize the Administration to enter into negotiations with Util Auditors, LLC, the sole ranked proposer, for Category 1, Credit Card Processing; further, authorize the Administration to enter into negotiations with Public Risk Advisors, the sole ranked proposer, for Category 2, Insurance Policies; and further, authorizing the Administration to enter into negotiations with ECS Business Services, the sole ranked proposer, for Category 5, Elevator Services Agreements; and further, authorize the Mayor and City Clerk to execute an agreement with each of the successful proposers, upon conclusion of negotiations by the Administration. PASSED AND ADOPTED this aC day of 2018. ATTEST: afael E. Granado, City Clerk APPROVED AS TO FORM & LAN 'A E & FO EXE MIAMI BEACH Resolutions - C7 E COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: July 25, 2018 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 2018-081 - JC, FOR COST CONTROL AND RECOVERY AUDIT SERVICES; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH UTIL AUDITORS, LLC, THE SOLE RANKED PROPOSER, FOR CATEGORY 1, CREDIT CARD PROCESSING; FURTHER, AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH PUBLIC RISK ADVISORS, THE SOLE RANKED PROPOSER, FOR CATEGORY 2, INSURANCE POLICIES; AND FURTHER, AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH ECS BUSINESS SERVICES, THE SOLE RANKED PROPOSER, FOR CATEGORY 5, ELEVATOR SERVICES AGREEMENTS; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH EACH OF THE SUCCESSFUL PROPOSERS UPON CONCLUSION OF NEGOTIATIONS BY THE ADMINISTRATION. RECOMMENDATION Adopt the Resolution. ANALYSIS At its September 20, 2017 meeting, the Finance and Citywide Projects Committee (the "Committee ") discussed engaging a Cost Reduction Consultant to identify areas where the City could recover overpayments or errors in payments in the following areas: - Credit Card Processing Services, - Insurance Policies, - Security Services, - Shipping Services, and - Elevator Services. The Committee directed the Administration to issue a solicitation for a cost reduction consultant for the five (5) areas not covered by previous reviews. The Committee also approved that the consultant should have a minimum of five (5) years' experience in performing similar work for public and /or private sector clients. The scope of services includes, but is not limited to, examination of credit card processing service fees, reviews of city invoices paid and reviews of contracts from vendors relating to the above categories of expenditures. Additionally, the consultant shall determine if over - billings have occurred and recover retroactive refunds from companies that have been overpaid. Finally, the consultant shall determine whether new contract terms beneficial to the City could be secured to Page 311 of 1464 lower the overall costs for the City, considering the net result of this review is to reduce monthly costs paid for these services. Fees paid to the awarding consultant would be based under a contingency -fees arrangement and the City would incur no costs, since payment of fees would be based upon any savings and recoveries. RFP Process On February 14, 2018, the City Commission approved the issuance of Request for Proposals (RFP) No. 2018 - 081 -JC, for cost control and recovery audit services. The RFP was issued on February 15, 2018. At that time, eight- hundred fifty -three (853) vendors were notified via Public Purchase of the RFP. Subsequently, eighty -four (84) vendors accessed the RFP notice via Public Purchase. A voluntary pre- proposal conference was held on March 12, 2018, and was attended by four (4) vendors. RFP responses were due and received on May 4, 2018. The City received a total of four (4) proposals for three (3) of the five (5) business categories solicited. No proposals were received for Security Services (Category 3) or Shipping Services (Category 4). The City received proposals from the following firms: • Util Auditors, LLC submitted the sole proposal for Category 1, Credit Card Processing • Public Risk Advisors submitted the sole proposal for Category 2, Insurance Policies • ECS Business Services submitted the sole proposal for Category 5, Elevator Services Agreements No responses were received for Category 3 - Security Services or Category 4 - Shipping Services. The City received a proposal from AudiTec Solutions, Inc., which was deemed non - responsive for failure to comply with the RFP submittal requirements. Additionally, the City received one (1) Statement of No Bid from Strategic Audit Solutions. On May 7, 2018, the Evaluation Committee was appointed by the City Manager pursuant to LTC# 256 - 2018, to consider the responsive proposal received. The Committee convened on May 23, 2018 to consider the proposals received. The Committee was comprised of the following individuals: Andrew Bejel, Risk Analyst, Human Resources Department, City of Miami Beach; Elizabeth Miro, Assistant Director, Property Management Division, City of Miami Beach; Georgette Daniels, Finance Section Manager, Emergency Operations Department, City of Miami Beach; Susan Rosenthal, Vice President for Business and Finance, Barry University; Benjamin Nussbaum, Revenue Manager, Finance Department, City of Miami Beach. The Evaluation 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 with general information on the scope of services and a copy of each proposal. The Evaluation Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFP. The evaluation process resulted in the ranking of proposers as indicated in Attachment A. In summary, the Evaluation Committee found that each sole proposer was qualified to perform the required services in the Category for which each had submitted a proposals, as follows: • Category 1, Credit Card Processing: Util Auditors, LLC • Category 2, Insurance Policies: Public Risk Advisors • Category 5, Elevator Services Agreements: ECS Business Services The following is a brief summary of the qualifications of the proposers based on the information each Page 312 of 1464 provided in its proposal to the City. ECS Business Services ECS Business Services specializes in auditing services for water, sewer, gas, electric, trash, and telecom bills, and other monthly fixed costs /monthly client service contracts (i.e., air conditioning and elevator agreements), insurance, credit card and payroll processing. According to their proposal and company website, ECS Business Services has been in business nineteen (19) years providing clients with services directed at reducing business costs by recovering retroactive refunds where those clients have been charged incorrect rates or tariffs. ECS Business Services' clients include hotels, hospitals, non - profit organizations and businesses of all sizes. Some of the highlights of the proposal and oral presentation submitted by ECS Business Services, as articulated by the Evaluation Committee, include: • ECS Business Services' experience and knowledge is "top notch." • Confident ECS Business Services will do a great job. • Appreciate that ECS Business Services is a local firm. • ECS Business Services seems to fully understand the scope of services. • Glad to hear that ECS Business Services has an elevator expert on the consulting team. Util Auditors, LLC According to their proposal, Util Auditors, LLC is a consolidated solutions provider in cost reduction and recovery. They have a successful track record of reducing monthly costs and obtaining substantial refunds from providers of electricity, gas, waste removal, telecommunications, shipping, merchant processing, water /sewer and even workers' compensation insurance nationwide. Util Auditors, LLC represent small and large organizations internationally ranging in size from single location entities into the Forbes & Fortune top 20, as well as Global 100 firms. Util Auditors, LLC is headquartered in Deerfield Beach, FL and has been in business there for the past five (5) years. Some of the highlights of the proposal and oral presentation submitted by Util Auditors, LLC, as articulated by the Evaluation Committee, include: • Util Auditors, LLC experience is impressive. • Util Auditors, LLC provide a broad range of services. • Appreciate that Util Auditors, LLC is a South Florida firm. Public Risk Advisors According to their proposal, Public Risk Advisors has been in business locally for six (6) years providing audit services of insurance policies, health and accident losses, workers compensation claims and property claims. They have extensive experience with local governments and privately held companies, lowering the total cost of risks by tens of millions of dollars. Recent public sector clients include, City of Miami, City of Hialeah, City of Doral, and Miami -Dade Public Schools. Some of the highlights of the proposal and oral presentation submitted by Public Risk Advisors, as articulated by the Evaluation Committee, include: • Public Risk Advisors has an impressive list of local government clients. • Public Risk Advisors has the industry knowledge to successfully complete the required services. • Public Risk Advisors has demonstrated capability of actually returning significant cost Page 313 of 1464 recoveries to public sector clients. CONCLUSION After reviewing all the submissions and the results of the evaluation process, although the City received a sole response to each category, I find that the proposals received are from well qualified firms that have experience in similar cost recovery/control audits. While the RFP included specifications of the work that would be required for each area, it is now important to negotiate agreements with each firm that clearly articulates the parameters of each study or cost recovery/control exercise, and how each proposer will be compensated. Therefore, I recommend that the Mayor and City Commission approve the Resolution authorizing the Administration to enter into negotiations with: Util Auditors, LLC, for Category 1, Credit Card Processing; Public Risk Advisors for Category 2, Insurance Policies; and ECS Business Services for Category 5, Elevator Services Agreements; further, authorizing the Mayor and City Clerk to execute an agreement with the successful proposer for each respective proposal category upon conclusion of negotiations by the Administration. KEY INTENDED OUTCOMES SUPPORTED Strengthen Internal Controls To Achieve More Accountability FINANCIAL INFORMATION No grant funding will be utilized for this project. The cost of the related services are subject to funds availability approved through the City's budgeting process. Legislative Tracking Finance /Procurement ATTACHMENTS: Description o Attachment A o Resolution Page 314 of 1464 REP 2018-081-JC Cost Control and Recovery Audit Services (Credit Card Processing) Andrew Bejel c 12 Georgette Daniels Ranking Elizabeth Miro Ranking Benjamin Nussbaum rn .r Susan Rosenthal ' Ranking Low Ranking Aggregate Totals Util Auditors, LLC 95.00 1 90.00 1 90.00 1 91.00 1 100.00 1 5 1 Page 315 of 1464 roposal Ste}12 Q ant(ta ve rt h yF Proposer Revenue Proposed Maximum Points Total Points Awarded Util Auditors, LLC $130,000.00 35 35 Page 315 of 1464 6uNue>j 1) 0 0 0 0 0 0 0) 0 0 0 0 0 0 0) 0 0 0 ECS Business Services Total Points Awarded Maximum Points N co Revenue Proposed O O O O N F9 Page 316 of 1464 RFP 2018.081•JC Cost Control and Recovery Audit Services (Insurance Policies) Andrew Bejel Ranking Georgette Daniels Ranking Elizabeth Miro Ranking Benjamin Nussbaum Ranking Susan Rosenthal Y ai Low Ranking Aggreqate, Totals Public Risk Advisors 90.00 1 85.00 1 95.00 1 94.00 1 98.00 1 5 9 oposaI Ste tative Proposer Revenue Proposed Maximum Points Total Points Awarded Public Risk Advisors $160,000.00 35 35 Page 317 of 1464