C7D-Accept Recomm RFQ For Audit Services For Resort Taxes And Internal AuditsCOMMISSION ITEM SUMMARY
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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 (RFO)
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; GROWE HORWATH, PROTIVITI, BCAWATSON 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
SUGCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
Ensure Expenditure Trends Are Sustainable Over the Lonq Term
Data (Surveys, Environmenta! Scan, etc: N/A
Item Summary/Recommendation :
On December 17,2014, the City Commission approved the issuance of the subject Request for
Qualification (RFa). On December 19, 2014 lhe RFQ was issued with an opening date of
February 26,2015. A pre-proposalconference 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
lnternal 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 (RFO) No.2015-043-WG, forAudit Services for Resort Taxes and lnternal 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 lnternal Audits portion of the RFQ, and further authorize the City
Managerto execute agreements upon conclusion of successful negotiations bythe Administration.
RECOMMENDATION
ADOPT THE RESOLUTION.
Board Recommendation:
Financial lnformation :
Source of
Funds:
OBPI^,
Amount Account
1 $106,400 1 60-0330-000312 Resort Taxes
t12 2 $150,000 01 1-0330-000312 lnternal Audits
Financial lmpact Summary: The annual cost associated with the procurement of auditing
services is subiect to the funds availabilitv aooroved throuqh the Citv's budoetino orocess.
Alex Denis, Extension 6641
& rIAIAArIIBTACH AGE}IDA
D.^rE {-6-l(160
g MIAMIBEACH
City of Miomi Beoch, ,l700 Convention Cenier Drive, Miomi Beoch, Florido 33139, www.miomibeochfl.gov
COMMISSIO MEMORANDUM
Mayor Philip Levine and Members of City
FROM: Jimmy L. Morales, City Manager
DATE: May 6, 2015
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA,EPTING THE RECOMMENDATION
OF THE CITY MANAGER PERTAINING TO THE RANKING OF
PROPOSALS, PURSUANT TO REQUEST FOR QUALTFTCATTONS (RFO)
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 N EGOTIATIONS BY THE ADMI NISTRAT!ON.
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 lnternal Audit Division conducts routine
periodic audits of the businesses within the City required to pay resort taxes. ln addition, the
City Administration may determine a need to audit a particular arca whereby the lnternal
Audit Division does not have the resources to audit at a particular time. ln 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 Honruath, Protiviti and BCA
Watson Rice for the lnternal Audits portion of the RFQ.
161
Commission Memorandum - RFQ 2015-043-WG Audit Services for Resort Taxes and lnternal 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 lnternal 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 lmprovement Projects, City of Miami Beach. Sanford Honruitz, 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, lnternal Auditor Office of Budget and Performance lmprovement,
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.
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.
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Laura
Franco-
Rubines Rankinq
Juan
f.odriquez Ranklnq
Maria
Cerna Rankinq
Sandy
Horwitz Rankino Marie Paul Rankino
SKJT&G 80 I 90 1 90 1 75 1 90
lGl Fnrcncinc 50 2 60 4 70 4 10 4 60 3
(ilqour & Associates LLC 40 3 75 2 78 3 50 2 55 4
RflA Walean Rinc 40 3 65 3 8'l 2 40 3 70 2
162
Commission Memorandum - RFQ 2015-043-WG Audit Services for Resort Taxes and lnternal Audits
May 6, 2015
Page 3
Laura
Franco-
Rubines Rankino
Juan
Rodrior nz Rankino
VIaria
lema Rankino
Sandy
Horwitz Rankino Marie Paul Rankino
BCA Watson Rice 80 3 93 2 89 3 60 3 80 3
3rowe Horwath 95 ,l 95 ,|90 2 90 1 85
Protiviti 85 2 90 J 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 lnternal 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 Honruath, Protiviti and BCA Watson Rice for the lnternal 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 lnternal Audits.
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T:\AGENDA\2015\May 6\Procurement\RFQ 201 5-043-WG Audit Services for Resort Taxes and lnternal Audits - Memo.doc
163
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAM! BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS,
PURSUANT TO REQUEST FOR QUAL|F|CATTONS (RFO) 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 (RFO) 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 29,2Q14; 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 lnternal Auditor, Office of Budget and Performance
lmprovement, City of Miami Beach. Juan Rodriguez, CPA, Finance Department, City of Miami Beach. Maria Cerna, Division Director, Capital Improvement Projects, City of Miami Beacho Sanford Honvitz, CPA, City of Miami Beach Audit Committee. Ronald Starkman, CPA, City of Miami Beach Audit Committee
The following alternates were also appointed:
o James Sutter, CPA, lnternal Auditor Office of Budget and Performance lmprovement,
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
164
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 Horurrath,
Protiviti, BCA Watson Rice, for the lnternal 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 lnternal 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 Horurrath, Protiviti, BCA Watson Rice, for the
lnternal 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
ATTEST:
Rafael E. Granado, City Clerk Philip Levine, Mayor
r ffi
2015.
APPROVED AS TO
FORM & IANGUAGE
&FOR EXECUTION
;L [-yb
Date
165