HomeMy WebLinkAbout2006-26247 Reso
RESOLUTION NO. 2006-26247
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 FIRMS PURSUANT TO
REQUEST FOR PROPOSALS (RFP) NO. 23-05/06 FOR AUDITING SERVICES
TO EXAMINE THE CITY'S BASIC FINANCIAL STATEMENTS INCLUDED IN
THE CITY'S COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR),
FEDERAL GRANT PROGRAMS AND STATE PROJECTS (OMB A-133
SINGLE AUDIT), THE MIAMI BEACH REDEVELOPMENT AGENCY'S (RDA)
BASIC FINANCIAL STATEMENTS, THE PARKING SYSTEMS FUNDS' (PSF)
FINANCIAL STATEMENTS, THE MIAMI BEACH VISITOR AND CONVENTION
AUTHORITY'S (VCA) FINANCIAL STATEMENTS, THE MIAMI BEACH
CONVENTION CENTER (MBCC) AND JACKIE GLEASON THEATER OF THE
PERFORMING ARTS (JGT), AS MANAGED BY SMG, FINANCIAL
STATEMENTS, AND THE SAFE NEIGHBORHOOD PARKS AND BOND
PROGRAM (SNP); AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE FIRMS MCGLADREY & PULLEN, LLP., AND
KPMG LLP; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE AN AGREEMENT(S) UPON THE COMPLETION OF
SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
WHEREAS, on May 10, 2006, the City Commission authorized the issuance of an RFP
to solicit proposals for auditing services for the City of Miami Beach; and
WHEREAS, on May 19, 2006, RFP No. 23-05/06 was issued and notices sent to over 22
firms; and
WHEREAS, on the specified due date of June 19, 2006, the Procurement Division
received responses from McGladrey & Pullen, LLP, and KPMG LLP; and
WHEREAS, on June 20,2006, the City Manager, via Letter to Commission No. 165-2006,
appointed an Evaluation Committee (the "Committee"), consisting of the following individuals:
Jeryl (Deede) Weithorn - Independent CPA;
Georgina Echert - Assistant Director, Finance, CMB;
James Sutter - Internal Auditor, CMB;
Larry Herrup - Independent CPA;
Marc Gidney - Independent CPA; and
WHEREAS, the Committee convened on June 27, 2006 and was provided with an
overview of the project, information relative to the City's Cone of Silence Ordinance, and the
Government in the Sunshine Law; and
WHEREAS, the Committee scored the two (2) firms based on the following criteria, as
outlined in the RFP, for a maximum possible total of 100 points:
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· Firm's Experience in Auditing Services - 20 points;
· Qualifications of the Project Team - 20 points;
· Methodology and Approach - 10 points;
· Risk Assessment Plan for Ensuring Quality of Work - 15 points;
· Past Performance Based on Client References and Number and Quality of the Performance
Evaluation Surveys - 15 points;
· Fees - 20 points; and
WHEREAS, the Committee unanimously ranked McGladrey & Pullen as the top-ranked
firm; and
WHEREAS, notwithstanding the aforestated ranking, the Committee also voted to allow
the Administration the flexibility to engage both submitting firms in negotiations, with the potential to
split the different audits between the two firms, as deemed in the best interest of the City; and
WHEREAS, the City Manager concurs with the Committee's recommendations.
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 firms pursuant
to Request for Proposals (RFP) No. 23-05/06 for Auditing Services; authorize the Administration to
enter into negotiations with the firms of McGladrey & Pullen, LLP, and KPMG LLP; and further
authorize the Mayor and City Clerk to execute an agreement(s) upon the completion of successful
negotiations by the Administration.
PASSED AND ADOPTED this 12th day of July
,2006.
A TTI;:ST:
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~e' CC )L.~
CITY CLERK .. ~.
Robert Parcher
David Dermer
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APPROVED AS TO
FORM & LANGUAGE
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Accepting the City Manager's Recommendation Pertaining to the Ranking of Firms for
Auditing Services, Authorizing the Administration to Enter into Negotiations, and Authorizing the Mayor and
Cit Clerk to Execute an A reement s for Auditin Services.
Ke Intended Outcome Su orted:
Improve the City's Overall Financial Health and Maintain Overall Bond Rating
Issue:
I Shall the Commission Adopt the Resolution?
Item Summary/Recommendation:
The purpose of the audit services is to examine the City's Basic Financial Statements included in the City's
Comprehensive Annual Financial Report (CAFR, Single Audit, PSF, VCA, SMG, and SNP audits.
On May 10, 2006 the City Commission authorized the issuance of an RFP to solicit proposals for auditing
services for the City of Miami Beach.
On May 19, 2006, RFP No. 23-05/06 was issued and notices sent to over 22 firms, which resulted in the
receipt of proposals from McGladrey & Pullen, LLP and KPMG LLP.
An Evaluation Committee appointed by the City Manager reviewed and discussed the proposals, then
scored and ranked the two proposals. Based on the published evaluation criteria, the Committee
unanimously ranked McGladrey & Pullen as the top-ranked firm. However, a motion was made and
carried, to allow the Administration the flexibility to engage both firms in negotiations, with the potential to
split the different audits between the two firms, where it was in the best interest of the City.
The Administration recommends approval.
Advisory Board Recommendation:
IN/A
Financial Information:
Source of Amount Account Approved
Funds: 1 Estimated 011-9310-000312; 168-1985-000312
expenditure 480-0461-000312; 440-0442-000312
$220,000 011-0950-000312
[$J 2
3
4
Total
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Gus Lopez, Procurement
Si
nt Director
City Manager
POW
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MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
Mayor David Dermer and Members of the City Commission
Jorge M. Gonzalez, City Manager ~ rr- ~
July 12, 2006 ()
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 FIRMS PURSUANT TO REQUEST FOR
PROPOSALS (RFP) NO. 23-05/06 FOR AUDITING SERVICES TO EXAMINE THE
CITY'S BASIC FINANCIAL STATEMENTS INCLUDED IN THE CITY'S
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR), FEDERAL GRANT
PROGRAMS AND STATE PROJECTS (OMB A-133 SINGLE AUDIT), THE MIAMI
BEACH REDEVELOPMENT AGENCY'S (RDA) BASIC FINANCIAL STATEMENTS,
THE PARKING SYSTEMS FUNDS' (PSF) FINANCIAL STATEMENTS, THE MIAMI
BEACH VISITOR AND CONVENTION AUTHORITY'S (VCA) FINANCIAL
STATEMENTS, THE MIAMI BEACH CONVENTION CENTER (MBCC) AND JACKIE
GLEASON THEATER OF THE PERFORMING ARTS (JGT), AS MANAGED BY SMG,
FINANCIAL STATEMENTS, AND THE SAFE NEIGHBORHOOD PARKS AND BOND
PROGRAM (SNP); AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE FIRMS MCGLADREY & PULLEN, LLP AND KPMG LLP;
AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT(S) UPON THE COMPLETION OF SUCCESSFUL NEGOTIATIONS BY
THE ADMINISTRATION.
TO:
FROM:
DATE:
SUBJECT:
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING AND ESTIMATED AMOUNT
$220,000
Service
Audit of City's Basic Financial Statement (CAFR)
OMB A-133 Single Audits
Management Letter in Accordance with the
Rules of the Auditor General of the State
of Florida
Miami Beach Redevelopment Agency (RDA)
Miami Beach Parking Systems Funds (PSF)
Miami Beach Visitor and Convention
Authority (VCA)
Miami Beach Convention Center and Jackie
Gleason Theater of the Performing Arts,
as Managed by SMG
Safe Neighborhood Parks Single Audit (SNP)
Funding Source
011.9310.000312
011.9310.000312
011.9310.000312
168.1985.000312
480.0461.000312
011.9310.000312
440.0442.000312
011.0950.000312
Estimated
Expenditure
$111,000
22,000
2,OQO
20,000
20,000
18,000
18,000
9,000
Future fiscal year expenditures will be funded from Professional Services budget accounts.
ANAL YSIS
The purpose of the audit services (the "engagement") is to examine the City's Basic
Financial Statements included in the City's Comprehensive Annual Financial Report (CAFR).
The engagement shall also include the Single Audit, PSF, VCA, SMG, and SNP audits, for a
period of five (5) years with the sole option and discretion of the City to renew for five (5)
additional one-year periods.
On May 10, 2006 the City Commission authorized the issuance of an RFP to solicit
proposals for auditing services for the City of Miami Beach.
The initial engagement will be for the fiscal year ending September 30, 2006. Additional
years of the engagement would be subject to the approval of the City Manager.
RFP PROCESS
On May 19, 2006, RFP No. 23-05/06 was issued and notices sent to over 22 firms, which
resulted in the receipt of two proposals from the following firms:
McGladrey & Pullen, LLP
KPMG LLP
This was the first RFP that incorporated the Requirement for City Contractors to Provide
Equal Benefits for Domestic Partners Ordinance No. 2005-3494. Both proposals received
by the City provided documentation that these firms extended the same benefits for
domestic partners of employees as those extended to spouses of employees.
On June 20, 2006, the City Manager via Letter to Commission No. 165-2006, appointed an
Evaluation Committee (the "Committee"), consisting of the following individuals:
Jeryl (Deede) Weithorn - Independent CPA
Georgina Echert - Assistant Director, Finance, CMB
James Sutter - Internal Auditor, CMB
Larry Herrup - Independent CPA
Marc Gidney - Independent CPA
The Committee convened on June 27, 2006 and was provided with an overview of the
project, information relative to the City's Cone of Silence Ordinance, and the Government in
the Sunshine Law. Georgina Echert was unable to attend the meeting due to a conflict.
The Committee was instructed to score and rank each proposal pursuant to the evaluation
criteria established in the RFP, which was as follows (total possible 100 points):
· Firm's Experience in Auditing Services - 20 points
· Qualifications of the Project Team - 20 points
· Methodology and Approach - 10 points
· Risk Assessment Plan for Ensuring Quality of Work - 15 points
· Past Performance Based on Client References and Number and Quality of the
Performance Evaluation Surveys - 15 points
· Fees - 20 points
The Committee discussed each of the proposals and proceeded to score and rank them as
follows:
COMMITTEE MEMBER McGLADREY & PULLEN, LLP
KPMG LLP
98
91
98
99
93 2
89 (2)
94 2
96 2
The Committee unanimously ranked McGladrey & Pullen as the top-ranked firm. However,
a motion was made and carried, to allow the Administration the flexibility to engage both
firms in negotiations, with the potential to split the different audits between the two firms,
where it was in the best interest of the City.
The Committee concurred that the number of large firms that can meet the scope of services
required in the RFP, and that are willing to perform work for cities and municipalities, has
decreased over the years.
KPMG has been performing audits for the City for the past nine years. The Committee
discussed the transition of staff that has been occurring from KPMG to McGladrey & Pullen
in the recent past.
Concerns were raised as to the effect on the City's bond rating if there were to be a shift
from KPMG to a potentially lesser known firm. However the Committee noted that while
McGladrey & Pullen is relatively new to the City's business, they are ranked the fifth largest
provider of accounting, tax and consulting services nationwide, with revenues exceeding $1
billion.
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the attached
resolution, which recommends the acceptance of the ranking of the firms and authorizes the
Administration to enter into negotiations with the firms McGladrey & Pullen, LLP, and KPMG
LLP; and further authorizing the Mayor and City Clerk to execute an agreement(s) upon the
completion of successful negotiations by the Administration.
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