C7B-Execute Amendments Audits Of Resort Taxes And For Other Internal AuditsCOMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Accepting The City Manager's Recommendation Pertaining To RFP No. 23-09/10 For Audits
of Resort Taxes And Other Internal Audits As Needed, Authorizing The Administration To Enter Into
Negotiations, And Authorizing the Mayor And City Clerk to Execute Agreements.
Key Intended Outcome Supported:
Improve the City's overall financial health and maintain overall bond rating
Supporting Data (Surveys, Environmental Scan, etc.): N/A
Issue:
Shall the City Commission adopt the resolution?
Item Summary/Recommendation:
The Mayor and City Commission at its May 12, 2010 City Commission meeting, passed and adopted
Resolution No. 201 0-27382, which accepted the City Manager's recommendation pertaining to the ranking
of firms pursuant to Request for Proposals (RFP) No. 23-09/10 for Auditing Services; authorized the
Administration to enter into negotiations with Jefferson Wells International, Inc.; TCBA Watson Rice, LLP;
RGL Forensics; Marcum Rachlin; and Sharpton, Brunson & Company for audits of resort taxes; and with
the firms of Jefferson Wells International, Inc.; Marcum Rachlin; TCBA Watson Rice, LLP; RGL Forensics;
CroweHorwath, LLP; and Sharpton, Brunson & Company for other internal audits as needed; and further
authorize the Mayor and City Clerk to execute agreements upon the completion of successful negotiations
by the Administration.
During the contract year resort tax audits were assigned to all firms. No assignments were made for other
internal audits as needed. Sharpton and Brunson pulled out of the agreement and were no longer able to
perform the audits. The remaining firms were asked if they would renew their agreements on the same
terms and conditions. Jefferson Wells International, Inc declined. The other three firms agreed to the
renewal of the agreements with the same terms and conditions.
Each agreement was for one year with two one year renewals. It was the intention to have the renewal
options per the agreements renewed by the City Manager. Therefore it is recommended to amend section
4.3 (Terms) to allow renewals for the second option year by the City Manager at his sole option and
discretion.
ADOPT THE RESOLUTION
Advisory Board Recommendation:
IN/A
Financial Information:
Source of Amount Account Approved
Funds: 1 Professional Services Account
$106,000 No. 160-0330-000312 for Resort
~ Tax Audits
2
3
OBPI Total
$106,000
Financial Impact Summary:
islative Trackin
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AGENDA IT'EM _C_7_B--::-c---:--
DATE J)-1 Cf-1/
~ MIAMI BEACH -
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
TO:
FROM:
DATE:
SUBJECT:
COMMISSION MEMORANDUM
Mayor Matti Herrera Bower and Members of the City Commission
Jorge M. Gonzalez, City Manager ~
December 14,2011 U L/
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AMENDMENTS TO THE PROFESSIONAL
SERVICES AGREEMENTS BETWEEN THE CITY OF MIAMI BEACH, FLORIDA
AND TCBA WATSON RICE LLP; RGL FORENSICS; AND MARCUM RACHLIN;
FOR THE AUDITS OF RESORT TAXES AND FOR OTHER INTERNAL AUDITS
AS NEEDED, DATED OCTOBER 22, 201 0; SAID AMENDMENTS APPROVES
THE FIRST YEAR RENEWAL OPTION OF THE AGREEMENTS AND FURTHER
AMENDS SECTION 4.3 (TERMS) TO ALLOW RENEWAL BY THE CITY
MANAGER AT HIS SOLE OPTION AND DISCRETION.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
$98,000 Funding is available from Professional Services Account No. 160-0330-000312
for Resort Tax Audits
BACKGROUND
The Mayor and City Commission at its May 12, 2010 City Commission meeting, passed and
adopted Resolution No. 2010-27382, which accepted the City Manager's recommendation
pertaining to the ranking of firms pursuant to Request for Proposals (RFP) No. 23-09/1 0 for
Auditing Services; authorized the Administration to enter into negotiations with Jefferson
Wells International, Inc.; TCBA Watson Rice, LLP; RGL Forensics; Marcum Rachlin; and
Sharpton, Brunson & Company for audits of resort taxes; and with the firms of Jefferson
Wells International, Inc.; Marcum Rachlin; TCBA Watson Rice, LLP; RGL Forensics;
CroweHorwath, LLP; and Sharpton, Brunson & Company for other internal audits as
needed; and further authorize the Mayor and City Clerk to execute agreements upon the
completion of successful negotiations by the Administration.
ANALYSIS
The purpose of this resolution is to recommend the first year renewals of three agreements
with the firms TCBA Watson Rice, LLP; RGL Forensics; and Marcum Rachlin pursuant to
RFP 23-09/10 and to amend the section 4.3 of agreements to allow renewal for the second
option year by the City Manager at his sole option and discretion.
Agreements were negotiated between the five firms for audits of resort taxes and for other
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Commission Memorandum
December 14, 2011
Page 2 of2
internal audits as needed. Four out of the five agreements between TCBA Watson Rice,
LLP; RGL Forensics; Marcum Rachlin; and Sharpton, Brunson & Company had start dates
of October 22, 2010. The agreement with Jefferson Wells International, Inc, had a start date
of November 15, 2010. The sixth company, CroweHorwath, LLP, could not reach terms for
audit services of other internal audit as needed, therefore no agreement was executed.
During the contract year resort tax audits were assigned to all firms and the following audits
were completed.
Firm Number of audits Total Amount
completed Paid
TCBA Watson Rice, LLP 16 $14,800
RGL Forensics 17 18,974
Marcum Rachlin 13 13,920
Sharpton, Brunson & Company 9 6,800
Jefferson Wells International, Inc 24 23,600
79 $78,094
No assignments were made for other internal audits as needed.
During the contract term, Sharpton and Brunson pulled out and were no longer able to
perform the audits. Near the end of the agreements, the remaining firms were asked
whether they were interested in renewing their agreements on the same terms and
conditions. Jefferson Wells International, Inc declined due their difficulty in covering costs
with the fees paid by the City and an increase of fees would be necessary. The other three
firms, TCBA Watson Rice, LLP; RGL Forensics; and Marcum Rachlin, agreed to the renewal
of the agreements with the same terms and conditions.
Each agreement was for one year with two one year renewals. It was the intention to have
the renewal options per the agreements renewed by the City Manager rather than presenting
the renewal options to the City Commission. Therefore it is recommended to amend section
4.3 (Terms) to allow renewals for the second option year by the City Manager at his sole
option and discretion.
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the attached
resolution, which authorizes the first year renewal of the agreements with TCBA Watson
Rice, LLP; RGL Forensics and Marcum Rachlin for audits of resort taxes and for other
internal audits as needed; and further authorize to amend the section 4.3 of agreements to
allow renewal for the second option year by the City Manager at his sole option and
discretion.
T:\AGENDA\2011\12-14-11\Resort tax Audits Renewal12-14-11 Memo.doc
165
RESOLUTION TO BE SUBMITTED
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