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99-23253 RESO RESOLUTION NO. 99-23253 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 A PROFESSIONAL SERVICES AGREEMENT WITH LARRY DONOGHUE AND ASSOCIATES, INC, IN THE AMOUNT OF $75,000 FOR THE EVALUATION OF THE PARKING METER REVENUE CONTROL SYSTEM AND OPERATIONAL AUDITS FOR PARKING FACILITIES. WHEREAS, the City's Parking Department is responsible for providing public parking in Miami Beach; and WHEREAS, the City's parking supply is one of its most valuable assets; and WHEREAS, a comprehensive study was prepared in 1995 which recommended the implementation of revenue control equipment and the development of a plan to purchase new parking meters; and WHEREAS, the new revenue control equipment has been purchased and installed and all the mechanical parking meters have been replaced with electronic ones; and WHEREAS, now that the new revenue control parking equipment and the meters are in place, it is prudent business practice to conduct operational audits of the parking facilities and review the revenue control systems; and WHEREAS, this review will evaluate the City's current procedures and controls for revenue collection; processing and reconciliation; and would detect any weaknesses, discrepancies and deviations from our procedures; and WHEREAS, a report will be issued identifying weaknesses in the process, and recommendations will be made, if necessary, to ensure adequate security and integrity of revenue collections control and audit procedures; and WHEREAS, the Administration would recommend that the Mayor and the City Commission approve and authorize the Mayor and City Clerk to execute a professional services agreement with Larry Donoghue, Inc. in the amount of $75,000 for the evaluation of the Parking Meter Revenue Control systems and Operational Audits for Parking Facilities NOW, THEREFORE BE IT DUL Y 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, approving and authorizing the Mayor and City Clerk to execute a Professional Services Agreement with Larry Donoghue and Associates, Inc, in the amount of $75,000 for the evaluation of The Parking Meter Revenue control system and operational audits for par king facilities. PASSED and ADOPTED this 21stday of JUIYYJi1li MAYOR ,1999 ~~~ CITY CLERK APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 4:;L~ r~~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\cLmiami-beach.f1.us m COMMISSION MEMORANDUM NO. 55()-q~ TO: Mayor Neisen O. Kasdin and Members of the City Commission Sergio ROdriguezQ1lV City Manager DATE: July 21, 1999 FROM: SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COl\1MISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH LARRY DONOGHUE AND ASSOCIATES, INC, IN THE AMOUNT OF $75,000 FOR THE EVALUATION OF THE PARKING METER REVENUE CONTROL SYSTEM AND OPERATIONAL AUDITS FOR PARKING FACILITIES. ADMINISTRA TION RECOMMENDATION: Adopt the Resolution. BACKGROUND: The City of Miami Beach's Parking Department is responsible for providing public parking in Miami Beach. As such, the City's parking supply is one of its most valuable assets. Therefore, in 1995, a comprehensive study was prepared which recommended the implementation of revenue control equipment and the development of a plan to purchase new parking meters. Since then, new revenue control equipment has been purchased and installed and all the mechanical parking meters have been replaced with electronic ones. ANALYSIS: Now that the new revenue control equipment and the meters are in place, it is prudent business practice to conduct operational audits of our facilities and review the revenue control systems. Based on a joint recommendation of the Finance Director and the City I S Internal Auditor, a proposal was requested from Larry Donoghue Associates, Inc. This company has extensive experience in conducting operational audits of public parking facilities besides having specialized experience in evaluating all types of revenue control systems for municipal garage operators as well as revenue control systems manufacturers. AGENDA ITEM 87 DATE This review will evaluate our current procedures and controls for revenue collection, processing, reconciliation and enforcement and would detect weaknesses, discrepancies and deviations from our procedures. A report will be issued identifying weaknesses in procedures and recommendations will be made, if necessary, to ensure adequate security and integrity of revenue collection controls and audit procedures. CONCLUSION: The Administration recommends that the Mayor and City Commission approve the attached Resolution to execute a professional services a with Larry Donoghue Associates, Inc. S-i.JGE:odP 88 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND LARRY DONOGHUE ASSOCIATES, INC. THIS AGREEMENT is made this 17th day of Auqust , 1999, by and between the CITY OF MIAMI BEACH, FLORIDA ("City"), a political subdivision of the State of Florida, and LARRY DONOGHUE ASSOCIATES, INC. ("Consultant"). Section 1. DEFINITIONS "Agreement" means this written Agreement between the City and the Consultant. "City Manager" means the Chief Administrative Officer of the City. "Final Acceptance" means notice from the City to the Consultant that the Consultant's Services are complete, as same are set forth in this Agreement. "Project Coordinator" means an individual designated by the City Manager to coordinate, direct and review on behalf of the City all technical matters involved in the Services. "Risk Manager" means the Risk Manager of the City, with offices at 1700 Convention Center Drive, Third Floor, Miami Beach, Florida 33139. "Services" means all services, work and actions by the Consultant performed pursuant to or undertaken under this Agreement, as more fully described herein and in Exhibits "A" and "B" hereto. "Termination" means the termination of Consultant Services as provided in Subsection 4.11 of this Agreement. "Task" means a discrete portion of the Services to be accomplished by the Consultant, as described in this Agreement, as directed and authorized by the City. Section 2. METERED PARKING: CONSULTANT'S SERVICES AND COMPENSATION The scope of work to be performed by the Consultant in connection with the City's metered parking is set forth in Exhibit "A," entitled "Metered Parking: Services and Compensation," which Exhibit "A" is incorporated by reference and made part of this Agreement as though fully set forth herein. Section 3. OFF-STREET PARKING: CONSULTANT'S SERVICES AND COMPENSATION The scope of work to be performed by the Consultant in connection with the City's parking facilities located at 7th Street and 17th Street (the "Facilities"), is set forth in Exhibit "B," entitled "Off- Street Parking: Services and Compensation," which Exhibit "B" is incorporated by reference and made part of this Agreement as though fully set forth herein. F:IA TTO\l.EVlIAGREEMNT1PARKINGC. WPO Augusl20, 1999 (11:348m) Section 4. GENERAL PROVISIONS 4.1 RESPONSIBILITY OF THE CONSULTANT With respect to the performance of the Services, the Consultant shall exercise that degree of skill, care, efficiency and diligence normally exercised by recognized professionals with respect to the performance of comparable Services. In its performance of the Services, the Consultant shall comply with all applicable laws and ordinances, including but not limited to, applicable regulations of the City, County, State, Federal Government, ADA, EEO Regulations and Guidelines. 4.2 PUBLIC ENTITY CRIMES State of Florida Form PUR 7068, Sworn Statement under Section 287. 133(3)(a) Florida Statute on Public Entity Crimes as available with the office of the City Clerk, shall be filed by Consultant. 4.3 PROJECT MANAGEMENT The Consultant shall appoint a qualified individual acceptable to the City to serve as Project Manager for the Services who shall be fully responsible for the day-to-day activities under this Agreement and who shall serve as the primary contact for the City's Project Coordinator. 4.4 DURATION AND EXTENT OF AGREEMENT The term of this Agreement shall be for a period of fourteen (14) months from the date of execution of this Agreement, provided, however, that as to any additional services requested by the City within such fourteen (14) month period, such services may be completed beyond such fourteen (14) month period, as mutually agreed to in writing by the parties, prior to their commencement. 4.5 TIME OF COMPLETION The Services to be rendered by the Consultant shall be commenced upon receipt of a written Notice to Proceed from the City subsequent to the execution of this Agreement, and Consultant shall adhere to the completion schedule as referenced by Exhibit "A" hereto. A reasonable extension of time shall be granted in the event the work of the Consultant is delayed or prevented by the City or by any circumstances beyond the reasonable control of the Consultant, including weather conditions or acts of God which render performance of the Consultant's duties impracticable. 4.6 NOTICE TO PROCEED Unless directed by the City otherwise, the Consultant shall proceed with work on the Services only upon issuance of a Notice to Proceed by the City. F:IA TTOIlEVLIAGREEMNnPARKINGC.WPD August 20. '999 (ll:3<4om) 2 4.7 OWNERSHIP OF DOCUMENTS AND EQUIPMENT 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 by Consultant or the parties shall be approved in writing by the City. 4.8 INDEMNIFICATION Consultant agrees to indemnify and hold harmless the City of Miami Beach and its officers, employees and agents, from and against any and all actions, claims, liabilities, losses, and expenses, including, but not limited to, attorneys' fees, for personal, economic or bodily injury, wrongful death, loss of or damage to property, at law or in equity, which may arise or be alleged to have arisen from the negligent acts, errors, omissions or other wrongful conduct of the Consultant, its employees, agents, sub-consultants, or any other person or entity acting under Consultant's control, in connection with the Consultant's performance of the Services pursuant to this Agreement; and to that extent, the Consultant shall pay all such claims and losses and shall pay all such costs and judgements 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 the 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 Consultant's obligation under this Subsection shall not include the obligation to indemnify the City of Miami Beach and its officers, employees and agents, from and against any actions or claims which arise or are alleged to have arisen from negligent acts or omissions or other wrongful conduct of the City and its officers, employees and agents. The parties each agree to give the other party prompt notice of any claim coming to its knowledge that in any way directly or indirectly affects the other party. 4.9 INSURANCE REQUIREMENTS The Consultant shall not commence any work pursuant to this Agreement until all insurance required under this Subsection has been obtained and such insurance has been approved by the City's Risk Manager. The Consultant shall maintain and carry in full force during the term of this Agreement and throughout the duration of the work the following insurance: 4.9.1 Consultant General Liability in the amount of $1,000,000.00. A certified copy of the Consultant's (and any sub-consultants') Insurance Policy must be filed and approved by the Risk Manager prior to commencement. 4.9.2 Workers Compensation & Employers Liability as required pursuant to Florida statute. Thirty (30) days written notice of cancellation or substantial modification in the insurance coverage must be given to the City's Risk Manager by the Consultant and his insurance company. The insurance must be furnished by insurance companies authorized to do business in the State of Florida and approved by the City's Risk Manager. Original certificates of insurance for the above F:IA TTOII.EVLIAGREEMNT\PARKINGC.WPD AugUS120. 1999 ('1:348m) 3 coverage must be submitted to the City's Risk Manager for approval prior to any work commencing. These certificates will be kept on file in the office of the Risk Manager, 3rd Floor, City Hall, 1700 Convention Center Drive, Miami Beach, Florida 33139. The Consultant is responsible for obtaining and submitting all insurance certificates for their consultants. All insurance policies must be issued by companies authorized to do business under the laws of the State of Florida. The companies must be 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 AM. Best Company, Oldwick, New Jersey, or its equivalent, subject to the approval of the City's Risk Manager. Compliance with the foregoing requirements shall not relieve the Consultant of the liabilities and obligations under this Subsection or under any other portion of this Agreement, and 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 overage. 4.9.3 Endorsements All of Consultant's certificates, above, 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. 4.9.4 Certificates Unless directed by the City otherwise, the Consultant shall not commence the Services until the City has received and approved, in writing, certificates of insurance showing that the requirements of this Subsection (in its entirety) have been met and provided for. 4.10 FINAL ACCEPTANCE When the Services have been completed, the Consultant shall so advise the City in writing. Final Acceptance shall not constitute a waiver or abandonment of any rights or remedies available to the City under any other Section of this Agreement. 4.11 TERMINATION, SUSPENSION AND SANCTIONS 4.11.1 Termination for Cause If through any cause within the reasonable control of the Consultant, the Consultant shall fail to fulfill in a timely manner, or otherwise violate any of the covenants, agreements, or stipulations material to this Agreement, the City shall thereupon have the right to terminate the Services then remaining to be performed. Prior to exercising its option to terminate for cause, the City shall notify the Consultant of its violation of the particular terms of this Agreement and shall grant Consultant ten (10) days to cure such default. If such default remains uncured after (10) days, the City, upon seven (7) days notice to Consultant, may terminate this Agreement. F:IA TTOIl.EVlIAGREEMNTlPARKINGC.WPD AugU'120, 1999 (11:34.m) 4 In that event, all finished and unfinished documents, data, studies, surveys, drawings, maps, models, photographs, reports and other work products prepared by the Consultant and its subcontractors shall be properly delivered to the City and the City shall compensate the Consultant in accordance with Exhibits "A" and "8" hereto for all Services satisfactorily performed by the Consultant prior the date of the Notice of Termination. Notwithstanding the above, the Consultant shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of the Agreement by the Consultant and the City may reasonably withhold payments to the Consultant for the purposes of set-off until such time as the exact amount of damages due the City from the Consultant is determined. 4.11.2 Termination for Convenience of City The City may, for its convenience and without cause, terminate the Services then remaining to be performed at any time by giving written notice to Consultant of such termination, which shall become effective seven (7) days following receipt by Consultant of the written termination notice. In that event, all finished or unfinished documents and other materials as described in Exhibits "A" and "8" shall be properly delivered to the City. If the Agreement is terminated by the City as provided in this Subsection, the City shall compensate the Consultant for all Services satisfactorily performed by the Consultant and reasonable direct costs of Consultant for assembling and delivering to City all documents. Such payment shall be the total extent of the City's liability to the Consultant upon a Termination for Convenience, as provided for in this Subsection. 4.11.3 Termination for Insolvency The City also reserves the right to terminate the remaining Services to be performed 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 4.11.2. 4.12 Sanctions for Noncompliance with Nondiscrimination Provisions In the event of the Consultant's noncompliance with the nondiscrimination provisions of this Agreement, the City shall impose such sanctions as the City or the State of Florida may determine to be appropriate, including but not limited to, withholding of payments to the Consultant under the Agreement until the Consultant complies and/or cancellation, termination or suspension of the Services. In the event the City cancels or terminates the Services pursuant to this Subsection the rights and obligations of the parties shall be the same as provided in Section 4.11.2. 4.13 Changes and Additions Each such change shall be directed by a written Notice signed by the duly authorized representatives of the Consultant. Said Notices shall provide an equitable adjustment in the time of performance, a reallocation of the task budget and, if applicable, any provision of this Agreement which is affected by said Notice. The City shall not reimburse the Consultant for the cost of preparing Agreement change documents, written Notices to Proceed, or other documentation in this regard. F:IA TTOILEVlIAGREEMNT\PARKINGC.WPD August 20.1999 (11:34lm) 5 4.14 ASSIGNMENT, TRANSFER OR SUBCONTRACTING The Consultant shall not subcontract, assign, or transfer any work under this Agreement without the prior written consent of the City. 4.15 EQUAL EMPLOYMENT OPPORTUNITY In connection with the performance of this Agreement, the Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, sex, age, national origin, place of birth, marital status, or physical handicap. The Consultant shall take affirmative action to ensure that applicants are employed and that employees are treated during their employment without regard to their race, color, religion, ancestry, sex, age, national origin, place of birth, marital status, disability, or sexual orientation. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or termination; recruitment or recruitment advertising; layoff or termination; rates of pay, or other forms of compensation; and selection for training, including apprenticeship. 4.16 CONFLICT OF INTEREST The Consultant agrees to adhere to and be governed by the Miami-Dade County Conflict of Interest Ordinance (No. 72-82), as amended; and by the City of Miami Beach Charter and Code, which are incorporated by reference as if fully set forth herein, in connection with this Agreement. The Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirectly which should 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. 4.17 PATENT RIGHTS; COPYRIGHTS; CONFIDENTIAL FINDINGS Any patentable result arising out of this Agreement, as well as all information, design specifications, processes, data and findings, shall be made available to the City for public use. No reports, other documents, articles or devices produced in whole or in part under this Agreement shall be the subject of any application for copyright or patent by or on behalf of the Consultant or its employees or subcontractors. 4.18 NOTICES All communications relating to the day-to-day activities shall be exchanged between the Project Manager appointed by Consultant and the Project Coordinator designated by the City. The Consultant's Project Manager and the City's Project Coordinator shall be designated promptly upon commencement of the Services. All other notices and communications in writing required or permitted hereunder may be delivered personally to the representatives of the Consultant and the City listed below or may be F:IA TTOIlEVLIAGREEMNT\PARKINGC. WPD Augus120.1999 (11::J.4am) 6 mailed by registered mail, postage prepaid (or airmailed if addressed to an address outside of the city of dispatch). Until changed by notice in writing, all such notices and communications shall be addressed as follows: TO CONSULTANT: Larry Donoghue Associates, Inc. 1550 Northwest Highway Suite 334 Park Ridge, IL 60068 (847) 297-1180 TO CITY: Sergio Rodriguez City Manager City of Miami Beach 1700 Convention Center Drive 4th Floor Miami Beach, FL 33139 (305) 673-7010 With a copy to: Murray H. Dubbin City Attorney City of Miami Beach 1700 Convention Center Drive 4th Floor Miami Beach, FL 33139 (305) 673-7470 Notices hereunder shall be effective: If delivered personally, on delivery; if mailed to an address in the city of dispatch, on the day following the date mailed; and if mailed to an address outside the city of dispatch on the seventh day following the date mailed. 4.19 LITIGATION; JURISDICTION AND VENUE 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. 4.20 ENTIRETY OF AGREEMENT; MODIFICATIONS; GOVERNING LAW This writing and the Services embody the entire Agreement and understanding between the parties hereto, and there are no other agreements and understandings, oral or written with reference to the subject matter hereof that are not merged herein and superseded hereby. The Services and the Proposal Documents are hereby incorporated by reference into this Agreement. F:IA TTO\LEVLIAGREEMNTlPARKINGC. WPD August 20.1999 (11:34am) 7 No alteration, change, or modification of the terms of this Agreement shall be valid unless amended in writing, signed by both parties hereto, and approved by the City Commission of the City of Miami Beach. This Agreement, shall be governed by and construed according to the laws of the State of Florida. 4.21 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 its'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 $70,705. 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 $70,705, less the amount of all funds actually paid by the City to Consultant pursuant to this Agreement. 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 $70,705, which amount shall be reduced by the amount actually paid by the City to Consultant pursuant to this Agreement, 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 paragraph 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. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their appropriate officials, as of the date first entered above. CITY OF MIAMI BEACH, FLORIDA By: 1~ Neisen O. Kasdin Mayor ATTEST: ~Q~~ Robert Parcher City Clerk APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION /fk11/}~ \ ~ tf" ~.ltomey ~~ F:IA TTOILEVLIAGREEMNT\PARKINGC. WPD August 20,1999 (11:348m) 8 {? 'in , o'-"-t~ (/. .AJ6-;1A' ./.--L~ ) [Name] O' / Secretary F:IA TTOILEVLIAGREEMNT\PARKINGC.IM'D August20.11l99 (11:34lm) 9 LARRY DONOGHUE ASSOCIATES, INC. By: l \\\ . ( ,-1 <.h, ;Jt",~'C~ ~ l~ J.L. Donoghue President EXHIBIT "A" METERED PARKING: CONSULTANT'S SERVICES AND COMPENSATION INTRODUCTION Larry Donoghue Associates, Inc. (the "Consultant") shall evaluate the revenue control system of the metered parking system of the Parking Department (the "Department") of the City of Miami Beach (the "City") as provided herein. The parking meter system is currently made up of 3966 on-street meters, 4533 off-street meters (located within 58 parking lots) making a total of 8499 meters, both on-street and off-street. All of the in-place meters are the POM model APM-E meters. The gross revenue from the meters for the 1997/1998 fiscal year was approximately $3,935,000. The revenues for the 1998/1999 fiscal year through 4/30/99 is $2,918,000. It appears that the gross revenues for the current fiscal year will be approximately $5,000,000. The parking meter rates are $0.50 and $1.00 per hour. There are two rate zones and 82 collection zones. The rates were last raised in September, 1992. The various activities are accomplished as noted below: Activity Collections Name of City Department Name of Outside Contractor Standard APCOA-VIP's Parking Park System Counting Maintenance Miami Beach Parking Dept. Miami Beach Parking Dept. Miami Beach Parking Dept. Issuing Citations Administration and Processing of Citations Miami-Dade Parking Violations Bureau Larry Donoghue Associates, Inc. shall undertake the evaluation in accordance with the specific procedures outlined in the following statement of Services (the "Services"). STATEMENT OF SERVICES TASK A - SYSTEM CHARACTERIZATION Consultant shall perform a two and one-half to three-day inspection, observation and data gathering trip attended by the Project Director, and shall interview during that period the collections, counting, maintenance, supervisory, accounting, internal audit, and management personnel employed by the Department in connection with the parking meter system. Consultant shall inspect and observe the functioning of the Department's metered parking system. In this inspection, follow the collection, counting, control, accounting and audit process from initial coin deposit by the parker through the various sequences of the collection and storage F:IA TTOIl.EVLIAGREEMNT\PARKINGC.WPD August 20, '999 ('1:34am) A-1 procedure and into and through the counting, reporting, deposit and audit sequence. Also review and observe the maintenance process. Consultant shall characterize the total process by means of a detailed, written narrative supported by spread sheet tabulations of various pertinent statistics and denote each event and each operational procedure in such a manner as to facilitate the detection of any possible weaknesses in the parking meter system. The Consultant shall prepare an evaluation on the Department's existing parking meter revenue control system, using a previously prepared 62 page structured questionnaire in which will be documented the salient and pertinent characteristics of that system. The issues covered by the questionnaire are briefly described in the following paragraphs. 1. Basic Data and Financial Review the present organization and functions of the meter revenue control and operating system as pertinent; determine the allocation of responsibilities among various units for collection, counting, accounting, maintenance, installation, and other functions; documentation of parking meter rates; review of annual reports and financial data of the parking meter system; analysis of revenue and expenses on a per meter basis, by routes, for the past three year period; revenue and expense analysis of the entire meter system; characterization of the Department's parking meter system staff personnel by number and duties. 2. Equipment Inspection of meter maintenance shop; detailed characterization of meter coin containers, mechanisms and housings; meter operation; coin collection canisters; truck for collections and money transport to counting room; counting room access and security features; counting room equipment and procedures; meter key controls. 3. Collection Procedures Characterization of: collection personnel; numbers of persons that handle collection money; collection procedures and route schedules (observe collection procedures by accompanying a collection crew during a routine collection operation); field supervision and controls on collection personnel; access to collections by Department personnel other than collection personnel. 4. Counting Procedures Characterization of: counting personnel, (observe counting personnel) surveillance, physical security, present checks on the integrity of the quantity and quality of coins brought in. A-2 5. Maintenance Procedures Review the maintenance personnel field procedures for repairing jammed meters. Review procedures for their handling of coins found in the top compartment of the meters. (Significant revenue loses have occurred elsewhere in the past due to lax maintenance procedures). . 6. Supervisory Procedures Characterization of: access to collections at various points of the collection, transfer and counting process; equipment and procedures for transfer of money to bank; random availability of meter keys; precount tests; surveillance of counting room; spot checks of counting room; spot checks of counting operations; safeguards and precautions against internal and external theft. 7. Enforcement (Optional) Enforcement is considered to be an integral function of a parking meter revenue control system. Lack of enforcement invites parkers to ignore the parking meters. Revenues thus suffer and the effect may be a reduction in the net revenue accruing to the system. The proposed investigation of enforcement procedures and practices would indicate the possible degree to which meter revenue may be lost due to the parkers ignoring of parking meters. It will comprise the characterization of: · enforcement procedures and practices . percent of citations collected · deterrents (fines, follow-up, ratios of fines to the cost of parking) . disposition of fine money . responsibility for citations · spot checks on enforcement - number of meters in violation and number of vehicles having citations affixed · productivity ratios - annual citations per meter and annual citations per enforcement officer . sources of enforcement fund · utilization of courts, if pertinent . scofflaw procedures · enforcement by specialized enforcement personnel, e.g., maintenance or counting personnel, rather than by Police Department personnel 8. Patron Cheating Characterization of: use of slugs; use of foreign coins; use of devices to jam the meter; other methods of obtaining meter time without inserting a coin or slug. A-3 9. Third Party Theft and Vandalism Characterization of: observed forms of third party theft that have been experienced; holdups of collection personnel; possible prevalence of external theft rings; third party vandalism by type, such as plugging, jamming coin slot, lock torquing, physical damage to meter head, damage due to attempt to get at coin canister, theft of entire meter head; revenue lost to theft; dollar value of vandalism. 10. Internal Theft Characterization of experience with various forms of employee theft during coin handling opportunities. 11. Maintenance Expense Controls Control of meter system expenses can result in an increased net revenue of the system. The proposed investigation of system expense factors would indicate the areas in which gains may be realized by instituting improved operational and maintenance procedures. It will comprise the characterization of: · meter maintenance defects documentation · percent of installed meters that are inoperative . meter preventive maintenance procedures . meter overhaul practices . meter mechanism replacement practices · mechanical versus electronic meters, if pertinent · other items of operational and maintenance expenses 12. Audit Procedures Review of current City audit procedures including such items as: correlation of receipts with collector routes; comparison of receipts with receipt of similar, past periods; checkout of meter collections by means of planted amounts or marked coins. 13. Forms Review Review all of the revenue control and accounting forms used by the Department for adequacy. If any of them appear to need improvement, make specific suggestions and recommendations for their betterment. TASK B - ANALYSIS OF THE SYSTEM Consultant shall analyze the meter revenue collection, control and audit process, element by element and procedure by procedure, and identify weaknesses in the process which could be exploited through known methods of cheating and theft. Consultant shall recommend additional cost-effective controls that may be necessary to ensure adequate security and the integrity of revenue collections control and audit procedures. A-4 TASK C - PRELIMINARY REPORT Consultant shall prepare a Preliminary Report which will consider and compare various means of correcting possible weaknesses in the parking meter system revenue collection, counting, control and audit procedures and, if selected, the enforcement procedures. Said Preliminary Report shall identify and characterize the means that would be cost-effective and practicable, and suggest a course of action that could be undertaken to implement recommended, cost-effective improvements in the meter revenue control system. Consultant shall submit ten (10) copies of the Preliminary Report to the City. TASK 0 - SHIRTSLEEVES WORKING MEETING Consultant shall make an informal presentation of the Preliminary Report on the evaluation, and shall discuss, in the same, two-day shirtsleeves working meeting, the elements of the City's meter revenue control system that may be found to have significant weaknesses. Consultant shall review and discuss the recommendations for required improvements and indicate the degree to which the total revenue control system could be upgraded through implementation of the recommended improvements. In discussing the desirable improvements, Consultant shall review, page by page, the evaluation sheets for the metered parking system and address individually, the elements of the system that would be found to need improvement. Consultant shall assist the City in developing a consensus determination of the recommendations which will be implemented by the City. Based on the findings documented in the later described final report, supplemented by the results of the shirtsleeves working sessions, the City will be enabled to make a judgment as to the cost-effectiveness of the alternative means of meter revenue control systems improvement. Those means could entail (1) additional labor effort on the part of the City's managerial or audit staff, (2) additional labor effort on the part of parking meter system operational personnel, (3) additional revenue control equipment to be acquired, and (4) reassignment of pertinent task responsibilities among the system's personnel. TASK E - FINAL REPORT Following the shirtsleeves working meeting, Consultant shall revise, as appropriate, the Preliminary Report for the meter revenue control system, making any revisions in the recommendations for desired system improvements that may result from the consensus determination. Consultant shall furnish 10 copies of the Final Report. The following fee and expense quotation is based on the assumption that no separate meeting will be required as a part of this Task E. COMPENSATION Consultant shall prepare the desired study in accordance with the above description of Services for compensation established on the following time plus Expenses basis, subject to a below stated not to exceed (upset) limit. A-5 Compensation will be determined by multiplying, by a factor of two and one-half (2.5), the payroll costs of personnel as engaged in the provision of authorized services ("Time"); adding reimbursement of actual out-of-pocket expenses (e.g., telephone, postage, special handling, reproduction, travel and living, etc.) as would be incurred in provision of the services ("Expenses"). Expenses will be understood to include actual travel expenses, subsistence, costs of long distance telephone, expedited delivery, cost of reproduction and any other such incidental expenses related to accomplishment of the services covered by this proposal. Basic Services Consultant's compensation for basic services for labor and incidental non-travel expenses for all of the above described tasks except Work Task A 7, Enforcement, will not exceed the amount of Thirty Six Thousand Five hundred Dollars ($36,500). The above stated compensation includes amounts for labor and all incidental out-of-pocket expenses such as supplies, long distance telephone, facsimile transmissions, postage, expedited handling, reproduction, etc. Travel Expenses Airline fares and travel costs range so widely and unpredictably that we are obligated to quote compensation in this matter. Unrestricted full coach fares between Chicago and Miami Beach as of July 1, 1999 will be approximately $1,230. At no time will we travel at higher than coach class fare. Moreover, we will exploit all economy fare opportunities. The City would be invoiced for the actual cost to the Consultant. There is a senior fare which, if available, currently amounts to about $350. The senior fare must be purchased at least 14 days in advance. Therefore, it is desirable to set the project kick-off date well in advance. Based on the above circumstances, Consultant estimates that the travel-related expenses for basic services including up to two trips would not exceed Twenty One Hundred Fifty Dollars ($2,150). This estimate is based upon the assumption that the senior fare would be utilized for both trips. Optional Services Consultant's compensation for Optional Work Task A 7, Enforcement, for labor and incidental non-travel related expenses will not exceed the sum of Nine Thousand Dollars ($9,000). In regard to travel-related expenses for Optional Work Task A 7, Enforcement, Consultant estimates the travel-related expenses would not exceed the sum of Three Hundred Dollars ($300). A-6 SCHEDULE The field trip inspections will be completed within thirty (30) days after execution of the Agreement. The Preliminary Report will be submitted approximately three months after the inspection trip. The shirtsleeves working meeting to discuss the Preliminary Report will take place within approximately fifteen (15) days after submission of the Preliminary Report. The Final Report for the study will be published approximately fifteen (15) days after holding of the shirtsleeves working meeting. The date of commencement of the evaluation will be established mutually at the time of award. TERMS AND CONDITIONS Billing Procedures It is understood that interim billing, in proportion to the amount of work accomplished and for expenses as they are incurred, shall be allowable during the course of the work. Payment is to be due upon receipt of invoices for services rendered in the billing period. Redirection It is presumed that, once initiated, the proposed work will proceed without fundamental redirection. Should a circumstance arise (a change of City Commission or key City staff personnel) that results in a redirection of work against modified or new requirements, objectives or biases, thus making necessary the discarding or substantial alteration of work already accomplished, it shall be understood that the Consultant will be compensated for the additional work made necessary by the redirection an appropriate, incremental compensation amount, determined on the above Time plus Expenses basis, but subject to the Consultant's compliance with the provision of the following paragraph of this Agreement. The incremental compensation will not be governed by the previously stated not to exceed amount. If, in the Consultant's reasonable business judgment, a redirection of work effort will have been made necessary by an action of the City, the Consultant will report this circumstance, in writing, specifying the value of the work that the redirection will have made invalid and indicating the probable amount of the incremental compensation that the redirection would necessitate. The Consultant will undertake the additional work made necessary by the redirection only with the City's concurrence in the circumstance of redirection and the City's approval of the corresponding compensation increment. A-7 Additional Services Should the City request any related services that are not contemplated by the above Statement of Services, the Consultant will be pleased to furnish such additional services for compensation to be determined on the above Time plus Expenses basis. Compensation for additional services shall not be governed by the previously stated maximum amounts. Responsibility of the City It is understood that the City will appoint a representative to be the Consultant's point of contact, to act in all matters of information and data exchange, direction, reviews and approvals. The City will provide, at no cost to the Consultant, the following documents, information, data and other items as noted. . Meter revenue and expense data for the three most recent fiscal years. · Parking meter staffing with job titles, job descriptions, if available, and related monthly salaries or hourly wage rates. · Meter maintenance defects documentation for the last three months. · A person with a vehicle who can accompany the Consultant during this three day inspection, observation and data gathering trip. This person should be knowledgeable about the City's parking meter system. · Other related data items that are pertinent to the evaluation. · Pertinent parking citation and enforcement statistics in the event optional Task A7 is authorized. Initial Here Parking Meter System - Basic Services* Compensation Travel Related Expenses $36,500.00 $ 2,150.00 Parking Meter System - Optional Services Compensation Travel Related Expenses $ 9,000.00 $ 300.00 *As a minimum, the Proposal A - Basic Services must be authorized by the City. A-a EXHIBIT "B" OFF-STREET PARKING: CONSULTANT'S SERVICES AND COMPENSATION INTRODUCTION The City of Miami Beach ("City") owns several public parking facilities. They are operated by Standard APCOA-VIP's Parking Park System, a joint venture of Standard Parking (the "Garage Operator"), under a Professional Services Agreement. The City wishes to have two of the facilities evaluated by a revenue control consultant. The two facilities are described below: No. of Spaces No. of Contracts 7th Street Garage 17th Street Garage 656 1 ,460 164 1,153 *1+1 5 *1+1 4 2,327 3,442 No. of Entry Lanes No. of Exit Lanes Peak Day No. of Exits Parking Rates (week days) 151 Hour $1.00 $8. 00 $1.00 $8.00 $5.00 $50.00/$27.50 $1,438,000.00 Fed APD SST Daily Max. Special Events Monthly Rates Annual Gross Revenue Revenue Controls Entry Lanes Exit Lanes $75.00 $1,719,000.00 Fed APD SST Power Pad Power Pad *Reversible Lanes STATEMENT OF SERVICES Consultant shall perform an Operational Audit of the above-described parking facilities, as directed by the City in accordance with the following Statement of Services (the "Services"). B-1 REVENUE CONTROL SYSTEM EVALUATION 1. Data Compilation and Analysis Consultant shall characterize the revenue collection, control and audit system of each of the Facilities by means of field inspection, review and observation of operational procedures. The work to be accomplished shall be as follows: Perform a one to two day inspection of each Facility and gathering of data by the Project Director. Interview, during that period, cashier, supervisory, parking management personnel, and internal audit personnel of the City. Compile the data thus obtained, using an 186 sheet questionnaire, organized to delineate, individually, the five major elements of a parking revenue control system. Those major elements include: . Perimeter Integrity . Revenue Control Equipment . Cashier Procedures . Supervisory Procedures . Accounting and Audit Procedures Analyze each major element in terms of its sub-elements, in accordance with the following detailed breakdown. 1.1. Perimeter Integrity Check for perimeter weaknesses that would permit motorists to use the Facilities without passing through a cashier controlled lane or an unstaffed, controlled lane. Cover: Entry points Exit points Pedestrian walkways; service driveways; fencing; low curbs and berms, if appropriate Review each Facilities' parking rates, directional and space locator signs for location and clarity. Check lighting levels at entry lanes and exit lanes for adequacy in regard to safety and security for patrons and employees. B-2 1.2 Revenue Control Equipment Test present revenue control equipment at each of the following two locations. Note whether components function properly. Note whether any important components are not present. The tests will include the following elements: At Entry Lanes, if appropriate Red/Green Lane Lights Electronic "Full" Signs Loop Detectors Ticket Dispensers Barrier Gates Security Posts Counting Devices · Equipment Protection Devices (Bollards) Card Readers At Exit Lanes, if appropriate · Time Clocks Fee Computers or Cashier Terminals · Arming Loops Fee Displays Counting Devices Barrier Gates · Security Posts Cashier Booths and Related Equipment - HV AC - Drop Safes - Hold-up Alarms - Intercoms - Telephones Equipment Protection Card Readers Credit Card Processing Equipment At Central Cashiering Stations(s), if appropriate Fee Computers or Cashier Terminals Fee Displays Cashier Booths and Related Equipment - HV AC - Drop Safes - Hold-Up Alarms - Intercoms - Telephones B-3 Card Readers Credit Card Processing Equipment At Parking Manager's Office, if appropriate Safes · Security Controls/Alarms Intercoms · Telephones Counting Devices · Spare Clocks Key Controls Ticket Counting Devices Cashier Check-Out Room Ticket Storage Security Computers License Plate Inventory Devices Monthly Contract Patron Control Devices 1.3 Cashier Procedures Review the cashier manual. Establish from the manual and also by observation, procedures for handling: Shift opening procedures · Granting of grace periods Routine transactions Lost tickets · Insufficient funds Payment by personal check, credit card or debit card Non-revenue tickets · Mutilated tickets Ticket validation (if pertinent) Shift closing procedures Special events Review all cashier shift reports and facility daily reports for a period of three consecutive days including, as the middle day of the period, the peak day of the sample week. In selecting an appropriate three day period, assure insofar as practicable, that the cashiers working during this period represent a true cross section of range of experience (four categories of length of employment) of all the cashiers now employed at the Facilities. Confirm that all entries are made on appropriate forms · Confirm the continuity of counters, shift to shift · Check arithmetic accuracy 8-4 Check accuracy of ticket count for normal transactions; exceptional transactions; and malfunction/void tickets Check other daily and monthly reports, as appropriate 1.4 Supervisory Procedures Perform a 100 percent, 26 point audit of up to 2,000 of the parking tickets for each of the Facilities authorized for evaluation and all related cashier terminal printouts or journal tapes for the above (Work Task 1.3) for the peak day of a three consecutive day period. Verify that supervisors or clerks have accomplished the primary audit 26 point check. Confirm the accuracy of the entries for the pertinent audit point checks. Prepare a list of discrepancies for each cashier audited. Determine, for the tickets audited, the following discrepancy ratios: · Number missing tickets to total number of tickets collected · Number of manual transactions to total number of tickets collected Number of canceled transactions Compare discrepancy ratios to previously established standards for such ratios. Determine: Number and amounts of overcharges · Number and amounts of undercharges · Net over or undercharges Number of nonrevenue tickets not processed properly Number of other discrepancies, such as failure to follow prescribed procedures Individual cashier's total discrepancy ratio Cashier discrepancy ratio for all of the cashiers collectively Review all revenue control forms for adequacy. Recommended improvements in the forms, if pertinent. Recommend and characterize desirable forms that may not already be in use. Provide review and comment on the following: · Overnight inventory procedure · Security of unused and used tickets · Procedures for informing cashiers of detected discrepancies Holdup protection procedures Procedures for transport of cash from each Facility to the bank · Procedures for treatment of employees alleged to have stolen funds All forms and reports, such as cashier shift reports, daily reports, and monthly reports 8-5 Car theft prevention procedures and data for cars stolen from each of the Facilities Establish ratio of number of unaccounted for tickets to total number of tickets collected. Determine the effectiveness of collection procedures for outstanding insufficient funds transactions. 1.5 Audit Procedures Review primary and secondary audit procedures undertaken by Garage Operator. Visit with Garage Operator internal audit personnel to review the work papers for the Garage Operator's most recently conducted secondary audit. Review, as applicable, tertiary audit procedures accomplished by the City. Comment on the thoroughness and effectiveness of the secondary and tertiary audits. 2. Preliminary Report Consultant shall prepare a Preliminary Report consisting of 110 to 130 pages of text covering the Operational Audit. Present in narrative, tabular, or other form, as appropriate, the significant findings of the audit. Include as attachments, supplementary notes, sample forms, suggested form letters and other documents that would be useful in operating each Facility. In particular, identify in detail each of the system elements found to be significantly deficient. Those elements shall be reviewed with the City representatives and appropriate key staff personnel of each Facility during the shirtsleeves working meeting described below. Discuss proposed means of improvement at that meeting. Consultant shall submit ten copies of the Preliminary Report for review by the City. 3. Shirtsleeves Working Meeting Consultant shall hold with City representatives and if desired by the City, each Facility's operational key staff personnel, an eight (8) hour, one day, shirtsleeves working meeting to discuss the preliminary report on the evaluation. This meeting will be attended by the Consultant's Project Director who will review and discuss, in that meeting, the elements of each Facility's revenue control system that may need improvement. Discuss, also, specific cost-effective solutions. Indicate the benefit of implementing recommended improvements. 4. Final Report Following the shirtsleeves working meeting, Consultant shall make any revisions in the recommendations for desired system improvements that may be indicated as a result of the review 8-6 and discussions. Consultant shall amend the Preliminary Report on the Operational Audit of the Facility's revenue control system to reflect the outcome of the shirtsleeves working meeting. Consultant shall publish the amended report as the Final Report of the revenue control system Operational Audit. The Final Report will be comprised of: Letter of transmittal summarizing the revenue control system Operational Audit of each of the Facilities · Set of supplementary notes, sample forms, suggested form letters and other documents as referred to under work element 2. · Revised text describing each perceived weakness and a cost-effective method of remedying that weakness Insofar as the audit is concerned, the Final Report will be comprehensive. It will fully inform the City as to the quality of the integrity of the parking revenue control system at each of the Facilities. The Final Report will inform the City of all the findings and recommendations of the revenue control system evaluation. Consultant shall furnish the City with ten copies of the Final Report in published form. SCHEDULE The field trip inspection and data gathering trip will be completed within ten (10) to twenty (20) working days after execution of this Agreement. The Preliminary Report on the revenue control system evaluation will be submitted approximately two months after Consultant's inspection of each of the Facilities. The shirtsleeves working meeting to discuss the Preliminary Report and any desirable improvements in each Facility's revenue control system will take place within approximately ten (10) working days after Consultant's submission of the Preliminary Report. The Final Report on the evaluation will be published approximately ten (10) working days after the holding of the shirtsleeves working meeting. COMPENSA TION Consultant's compensation shall be determined on the following Time plus Expense basis. Compensation will be determined by multiplying, by a factor of two and one-half (2.5), the payroll costs of personnel as engaged in the provision of authorized services (Time), adding reimbursement of such direct and actual expenses (e.g., travel, subsistence, long distance telephone, printing) as would be incurred in provision of the services (Expenses). Proposal A - 7th Street Garage - Basic Services 8-7 The fee for Time for Basic Services and non-travel related expenses for this Proposal A, will not exceed Thirteen Thousand Four Hundred Thirty-Five Dollars ($13,435). Travel Expenses for this Proposal A, will not exceed One Thousand Dollars ($1,000). Proposal 8 - 17th Street Garage - Optional Service The fee for Time for Optional Services and non-travel related Expenses for this Proposal B, will not exceed Seventy Seven Hundred Twenty Dollars ($7,720). The additional travel Expenses for this Proposal 8, will not exceed Six Hundred Dollars ($600). Interim billing, in proportion to the amount of work accomplished, and for expenses as they are incurred, shall be allowable during the course of the work covered by this proposal. Payment shall be due upon receipt of invoice for services rendered. A total of 80 percent of the pertinent fee for evaluation services will have become due by the time of submission of Consultant's Preliminary Report on the evaluation. Ninety-five (95) percent of the pertinent fee shall be due upon completion of the Shirtsleeves Session. The remaining amount of the fee will be due when Consultant's Final Report on the evaluation is published. ADDITIONAL SERVICES Should the City request any related services not contemplated by the above Statement of Services, Consultant furnish such additional services for compensation to be determined on the above Time plus Expenses basis. REDIRECTION It is presumed that, once initiated, the proposed work will proceed without fundamental redirection. Should a circumstance arise, however, (e.g., changes in City Commission members or key parking administration employees) that results in a redirection of work against modified or new requirements, objective or biases, thus making necessary the discarding or substantial alteration of work already accomplished, it shall be understood that the Consultant will be compensated for the additional work made necessary by the redirection an appropriate, incremental compensation amount, determined on the above Time plus Expenses basis. If, in the Consultant's reasonable business judgment, a redirection of work effort will have been made necessary by an action of the City, Consultant shall report this circumstance, in writing, to the City, specifying the value of the work that the redirection will have made invalid and indicating the probable amount of the incremental compensation that the redirection would necessitate. Consultant shall undertake the additional work made necessary by the redirection only with the 8-8 City's concurrence in the circumstance of redirection and the City's approval of the corresponding compensation increment. RESPONSIBILITY OF THE CITY OF MIAMI BEACH The City will provide at no cost to Consultant, the following documents and other items of information and data. Copies of all cashier reports and daily reports for the Facilities selected for a period of three consecutive days during a typical operating period. All tickets collected for the above three day period, including all non-revenue, test tickets and malfunctions, voids and other tickets not processed by the cashiers. · All cashier terminal printouts or journal tapes for the above three day period · Printouts of entries and exits of monthly contract patrons for the middle day of the above three day period · Copies of all revenue control and reporting forms used by the City and by Garage Operator in operating each Facility. · Copies of any other various records relating to revenue control. · Note: All the above items will be returned following the submittal of the Final Report. Initial Here Proposal A - 7th Street Garage - Basic Services* Compensation Travel Related Expenses $13,435.00 $ 1,000.00 Proposal B - 17th Street Garage - Optional Services Compensation $ 7,720.00 Travel Related Expenses $ 600.00 *As a minimum, the Proposal A - Basic Services must be authorized by the City. 8-9