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Alberni, Caballero & Castellanos LLP Agreementboa 7- ~ ~ ~ a 6 PROFESSIONAL SERVICE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND ALBERNI, CABALLERO, 8~ CASTELLANOS, LLP FOR PROFESSIONAL SERVICES IN INTERNAL AUDITS OF NON-PROFIT ORGANIZATIONS THIS AGREEMENT made and entered into this ~~~I-f day of June, 2007, by and between the CITY OF MIAMI BEACH, FLORIDA (hereinafter referred to as City), a municipal corporation, having its principal offices at 1700 Convention Center Drive, Miami Beach, Florida, 33139, and Alberni, Caballero, & Castellanos, LLP (hereinafter referred to as Consultant), a limited liability partnership, whose address is 4649 Ponce de Leon Blvd, Suite 404, Coral Gables, Florida 33146. SECTION 1 DEFINITIONS Agreement: This Agreement between the City and Consultant. City Manager: The Chief Administrative Officer of the City. Consultant: For the purposes of this Agreement, Consultant shall be deemed to be an independent Consultant, and not an agent or employee of the City. Services: All services, work and actions by the Consultant performed pursuant to or undertaken under this Agreement, as described in Section 2. Fee: Amount paid to the Consultant to cover the costs of the Services. Risk Manager: The Risk Manager of the City, with offices at 1700 Convention Center Drive, Third Floor, Miami Beach, Florida 33139, telephone number (305) 673-7000, Ext. 6435, and fax number (305) 673- 7023. SECTION 2 SCOPE OF WORK The scope of work to be performed by Consultant is set forth below and in Exhibit "A," entitled "Scope of Services", attached and incorporated hereto (collectively the "Services"). ~.IT'Y CLEfd{: Internal Audits of Non-Profits: Audits are to be performed on non-profit organizations receiving funding from and / or through the City. The scope of the work consists of examining the organization's accounting records, such as general ledgers, revenues and expenditure transactions, and other records as may be maintained by the organization, and the preparation of schedules and analyses of work to determine compliance with the applicable regulations of the funding received from the City. Detailed testing is performed on a sample basis. Consultant is to work under the direction of the City's Internal Auditor by using internal audit programs for auditing non-profit agencies. Audit scope is to be determined for each audit by the Internal Auditor upon assignment. City forms and programs will be provided in electronic format. Each audit is completed by submission of work papers with a draft audit report listing findings to the internal auditor for final review and approval. The Internal Audit Department will assign these audits. It is anticipated that the total number of audits assigned to the all of the consultants for current fiscal year (06/07) would be approximately 4 audits depending upon funding. The Internal Audit Department may from time to time request a proposal for other internal audits of city departments. The consultant firms may bid on these separate assignments using applicable rate structures. SECTION 3 COMPENSATION 3.1 FIXED FEE Consultant shall be compensated for the Services, as set forth in Section 2 and Exhibit A, as follows: For internal audits of non-profit organizations, $75 per hour. 3.2 INVOICING Consultant shall submit an invoice, which includes the purchase order number and a detailed description of the Services provided. 3.3 METHOD OF PAYMENT Payments shall be made for services satisfactorily rendered within thirty (30) days of the date of invoice, in a manner satisfactory to, and as approved and received by, the City. Consultant shall mail all invoices to: 2 City of Miami Beach Accounts Payable 1700 Convention Center Drive 3~d Floor Miami, Florida 33139 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, ordinances, and regulations of the City, Miami-Dade County, State of Florida, and Federal Government. 4.2 PUBLIC ENTITY CRIMES A State of Florida Form PUR 7068, Sworn Statement under Section 287.133(3)(a) Florida Statute on Public Entity Crimes shall be filed with the City's Procurement Division, prior to commencement of the Services herein. 4.3 DURATION AND EXTENT OF AGREEMENT The term of this Agreement shall be for a period of one year from the date this Agreement is executed by all parties hereto. The City may, at its sole option and discretion, and upon written notice to Consultant, renew the Agreement for two (2) additional one year terms, subject to the same terms and conditions set forth herein. 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 the Agreement. 4.4 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. 4.5 TERMINATION, SUSPENSION AND SANCTIONS 4.5.1 Termination for Cause If 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 this Agreement for cause. 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 seven (7) days to cure such default. If such default remains uncured after seven (7) days, the City, upon three (3) days' notice to Consultant, may terminate this Agreement and the City shall be fully discharged from any and all liabilities, duties and terms arising out of/or by virtue of this Agreement. Notwithstanding the above, the Consultant shall not be relieved of liability to the City for damages sustained by the City by any breach of the Agreement by the Consultant. The City, at its sole option and discretion, shall additionally be entitled to bring any and all legal/equitable actions that it deems to be in its best interest in order to enforce the City's right and remedies against the defaulting party. The City shall be entitled to recover all costs of such actions, including reasonable attorneys' fees. To the extent allowed bylaw, the defaulting party waives its right to jury trial and its right to bring permissive counter claims against the City in any such action. 4.5.2 Termination for Convenience of City NOTWITHSTANDING SECTION 4.5.1, THE CITY MAY ALSO, FOR ITS CONVENIENCE AND WITHOUT CAUSE, TERMINATE AT ANY TIME DURING THE TERM HEREOF BY GIVING WRITTEN NOTICE TO CONSULTANT OF SUCH TERMINATION, WHICH SHALL BECOME EFFECTIVE SEVEN (7) DAYS FOLLOWING RECEIPT BY THE CONSULTANT OF THE WRITTEN TERMINATION NOTICE. IN THAT EVENT, ALL FINISHED OR UNFINISHED DOCUMENTS AND OTHER MATERIALS, AS DESCRIBED IN SECTION 2 AND IN EXHIBIT "A",SHALL BE PROPERLY ASSEMBLED AND DELIVERED TO THE CITY AT CONSULTANT'S SOLE COST AND EXPENSE. IF THE AGREEMENT IS TERMINATED BY THE CITY AS PROVIDED IN THIS SUBSECTION, CONSULTANT SHALL BE PAID FOR ANY SERVICES SATISFACTORILY PERFORMED, AS DETERMINED BY THE CITY AT 4 ITS DISCERTION, UP TO THE DATE OF TERMINATION. PROVIDED, HOWEVER, THAT AS A CONDITION PRECEDENT TO SUCH PAYMENT, CONSULTANT SHALL HAVE DELIVERED ANY AND ALL DOCUMENTS, MATERIALS, ETC, TO CITY. AS REQUIRED HEREIN. 4.5.3 Termination for Insolvency The City also reserves the right to terminate the Agreement 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 4.5.2. 4.5.4 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, Miami-Dade County, and / or the State of Florida, as applicable, 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 Agreement. In the event the City cancels or terminates the Agreement pursuant to this Subsection the rights and obligations of the parties shall be the same as provided in Section 4.5.2. 4.6 CHANGES AND ADDITIONS Changes and additions to the Agreement shall be directed by a written amendment signed by the duly authorized representatives of the City and Consultant. 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. 4.7 OWNERSHIP OF DOCUMENTS 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 distribution, or dissemination of same by Consultant, other than to the City, shall first be approved in writing by the City. 4.8 INSURANCE REQUIREMENTS The Consultant shall not commence any work pursuant to this Agreement until all insurance required under this Section 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 the following insurance: Consultant Professional Liability in the amount of $500,000. 5 3. Workers Compensation & Employers Liability as required pursuant to Florida statute. 4. 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. 5. Original certificates of insurance for the above 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. 6. The Consultant is solely responsible for obtaining and submitting all insurance certificates for its sub-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 A.M. 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 Section 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. 4.8.1 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. 4.8.2 Certificates Unless directed by the City otherwise, the Consultant shall not commence any services pursuant to this Agreement until the City has received and approved, in writing, certificates of insurance showing that the requirements of this Section (in its entirety) have been met and provided for. 4.9 ASSIGNMENT, TRANSFER OR SUBCONTRACTING The Consultant shall not subcontract, assign, or transfer any work under this Agreement in whole or in part, without the prior written consent of the City. 4.10 SUB-CONTRACTORS The Consultant shall be liable for the Consultant's services, responsibilities and liabilities under this Agreement and the services, responsibilities and liabilities of sub-contractors, and any other person or entity acting under the direction or control of the Consultant. When the term "Consultant" is used in this Agreement, it shall be deemed to include any sub-contractors and any other person or entity acting under the direction or control of Consultant. All sub-contractors must be approved in writing by the City prior to their engagement by Consultant. 6 4.11 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, and national origin, place of birth, marital status, physical handicap, or sexual orientation. 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. 4.12 CONFLICT OF INTEREST The Consultant agrees to adhere to and be governed by the Metropolitan 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 herein as if fully set forth herein, in connection with the Agreement conditions hereunder. 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. No member of or delegate to the Congress of the United States shall be admitted to any share or part of this Agreement or to any benefits arising therefrom. 4.13 PATENT RIGHTS; COPYRIGHTS; CONFIDENTIAL FINDINGS Any patentable result arising out of this Agreement, as well as all information, 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 orsub-contractors, without the prior written consent of the City. 4.14 NOTICES All 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 mailed by registered mail, postage prepaid (or airmailed if addressed to an address outside of the city of dispatch). 7 Until changed by notice in writing, all such notices and communications shall be addressed as follows: TO CONSULTANT: Alberni, Caballero, & Castellanos, LLP Attn: Nelson Caballero, CPA 4649 Ponce de Leon Blvd, Suite 404 Coral Gables, Florida 33146 (305) 662-7272 TO CITY: City of Miami Beach Attn: Procurement Division 1700 Convention Center Drive Miami Beach, Florida 33139 (305) 673-7490 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. 4.15 LITIGATION JURISDICTIONNENUE 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. BY ENTERING INTO THIS AGREEMENT, THE CONSULTANT EXPRESSLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS AGREEMENT. 4.16 ENTIRETY OF AGREEMENT 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. 4.17 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 City'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 $1,000. Consultant hereby expresses its willingness to 8 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 $1,000. 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 $1,000 for any action or claim for breach of contract arising out of the performance ornon-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. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 9 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their appropriate officials, as of the date first entered above. FOR CITY: CITY OF MJ~VII BEACH, FLORIDA ATTEST: By: ~~u'~ ~ d' P~ ~ City Clerk Robert Parche Date FOR CONTRACTOR: ATTES ;, By: Secretary f`~N1~~ ~.~e,a Print Name Date David Dermer Date ALBERNI, CABALLERO, 8~ CASTELLANOS, LLP ~'''. - President /v Print Nam ~~~~~ Date Attachments: Exhibit "A" -Request for Proposal No: 08-06/07, Addendums hereto, and Proposer's response to the RFP. APPROVED AS TO FORM & LANGUAGE ~ FOR CUTION i' l r~ ~,~ 7 ,~ 1 EXHIBIT "A" 11 REQUEST FOR PROPOSALS FOR AUDIT OF RESORT TAXES AND INTERNAL AUDITS OF NON-PROFIT ORGANIZATIONS. RFP # 08-06/07 RFP DUE DATE: NOVEMBER 28, 2006 at 3:00 P.M. Gus Lopez, CPPO, Procurement Director PROCUREMENT DIVISION 1700 Convention Center Drive, Miami Beach, FL 33139 vvvrw.m iamibeachfl.gov F:IPURC\$ALL\MarialRFP'S108-071RFP 08-06-07 -Audit of Resort Taxes and Internal Audits of Non-Profit Organizations\Original RFP Documents and Addendums\RFP 08-06-07.doc ~, ~~ I ~~ ~ RFP No: 08-06/07 ~T y ii LLL/// 1 of 46 m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov PROCUREMENT DIVISION PUBLIC NOTICE Tel: 305-673-7490, Fax: 305-673-7851 For Audit of Resort Taxes and Internal Audits of Non-Profit Organizations. Request for Proposals (RFP) No. 08-06/07 This Request for Proposals (RFP) seeks responses from licensed and high performing companies or individuals with strong professional qualifications in providing audit of resort taxes and internal audits of non-profit organizations. Pursuant to the City Key Intended Outcome to Improve the City's Overall Financial Health and Maintain Overall Bond Rating, the City's Internal Audit Department is in need of a "best value" solution. Proposals can be submitted either for Audit of Resort Taxes or Internal Audits of Non-Profit Organizations or both services. The services to be provided: Audits are to be performed on business registered with the City for collecting resort taxes, and non-profit organizations receiving funding through the City. Sealed proposals will be received until 3:00 PM on November 28, 2006, at the following address: City of Miami Beach City Hall Procurement Division --Third Floor 1700 Convention Center Drive Miami Beach, Florida 33139 Any response received after 3:00 PM on November 28, 2006 will be returned to the contractor unopened. The responsibility for submitting proposals before the stated time and date is solely the responsibility of the contractor. The City will not be responsible for delays caused by mail, courier service, including U.S. Mail, or any other occurrence. A Pre-Proposal Submission Meeting is scheduled for November 7, 2006 at 10:00 a.m. at the following address: City of Miami Beach City Hall City Manager's Small Conference Room, 4t" Floor 1700 Convention Center Drive Miami Beach, Florida. The City of Miami Beach is using RFP Depot, a central notification system which provides bid notification services to interested vendors. RFP Depot allows for vendors to register online and receive notification of new bids, amendments and awards. Vendors with Internet access should review the registration options at the following website: www.rfpdepot.com If you do not have Internet access, please contact the RFP Depot's vendor support group at 800- 990-9339 or 801-765-9245. October 24, 2006 City of Miami Beach RFP No: 08-06/07 2 of 46 Attendance (in person or via telephone) to this Pre-Proposal submission meeting is encouraged and recommended as a source of information but is not mandatory. Companies or individuals interested in participating in the pre-Proposal submission meeting via telephone must follow these steps: (1) Dial the TELEPHONE NUMBER: 1-800-915-8704 (Toll-free North America) (2) Enter the MEETING NUMBER: *2659980* (note that number is preceded and followed by the star (*) key). Companies or individuals, who are interested in participating via telephone, please send an a-mail to mestevez@miamibeachfl.gov expressing your intent to participate via telephone. The City of Miami Beach reserves the right to accept any proposal deemed to be in the best interest of the City of Miami Beach, or waive any informality in any proposal. The City of Miami Beach may also reject any and all proposals. YOU ARE HEREBY ADVISED THAT THIS REQUEST FOR PROPOSAL IS SUBJECT TO THE FOLLOWING ORDINANCES/RESOLUTIONS, WHICH MAYBE FOUND ON THE CITY OF MIAMI BEACH WEBSITE: http://www.miamibeachfl.gov/newcity/depts/purchase/bidintro.asp • CONE OF SILENCE -- ORDINANCE NO. 2002-3378 • CODE OF BUSINESS ETHICS -- RESOLUTION NO. 2000-23879. • DEBARMENT PROCEEDINGS -- ORDINANCE NO. 2000-3234. • PROTEST PROCEDURES --ORDINANCE NO. 2002-3344. • LOBBYIST REGISTRATION AND DISCLOSURE OFFEES --ORDINANCE N0.2002-3363. Sincerely, ~, ,.. - Gus Lopez, CPPO Procurement Director October 24, 2006 RFP No: 08-06/07 City of Miami Beach 3 of 46 m MIAMIBEACH City of Miami Beoch, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachFl.gov PROCUREMENT DIVISION NOTICE TO PROSPECTIVE BIDDERS Tel: 305-673-7490, Fax: 305-673-7851 NO BID If not submitting a bid at this time, please detach this sheet from the bid documents, complete the information requested, and return to the address listed above. NO BID SUBMITTED FOR REASON(S) CHECKED AND/OR INDICATED: -Our company or individual does not handle this type of product/service. _We cannot meet the specifications nor provide an alternate equal product. -Our company or individual is simply not interested in bidding at this time. -Due to prior commitments, I was unable to attend pre-proposal meeting. -OTHER. (Please specify) We do _ do not _ want to be retained on your mailing list for future bids for the type or product and/or service. Signature: Title: Company or individual: Note: Failure to respond, either by submitting a bid or this completed form, may result in your company or individual being removed from the City's bid list. October 24, 2006 City of Miami Beach RFP No: 08-06/07 4 of 46 ~~~~ City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov PROCUREMENT DIVISION Tel: 305-673-7490, Fax: 305-673-7851 TABLE OF CONTENTS Page REQUEST FOR QUALIFICATIONS OVERVIEW AND REPONSE PROCEDURES A. Introduction/Analysis 6 B. Purpose 6 C. RFP Time Table 6 D. Qualification Submission 6 E. Pre-Proposal Submission Meeting 7 F. Contact Person 7 SCOPE OF SERVICES 9-10 III. PROPOSAL FORMAT 11-12 IV. MINIMUM REQUIREMENTS/QUALIFICATIONSS 13 V. EVALUATION/SELECTION PROCESS/ CRITERIA FOR EVALUATION 14 VI. LEGAL TERMS AND CONDITIONS/ INSURANCE 15-19 VII. QUALIFICATION DOCUMENTS TO BE COMPLETED AND RETURNED TO CITY 20-30 -Insurance Check List 20 -Cost Information 11 -Organizational Chart -Risk Assessment Plan -Acknowledgment of Addenda 22 -Declaration 23 -Sworn Statement/Section 287.133(3)(a), Florida Statutes -Public Entity Crimes 24-25 -Questionnaire 26-30 VIII. DOCUMENTS TO BE COMPLETED BY CUSTOMERS OF THE RESPONDENTS 32-33 - Performance Evaluation Letter 32 -Performance Evaluation Survey 33 October 24, 2006 City of Miami Beach RFP No: 08-06/07 5 of 46 SECTION I - OVERVIEW A. INTRODUCTION /BACKGROUND This Request for Proposals (RFP) seeks responses from licensed and high performing companies or individuals with strong professional qualifications in providing audit of resort taxes and internal audits ofnon-profit organizations. Pursuant to the City Key Intended Outcome to Improve the City's Overall Financial Health and Maintain Overall Bond Rating, the City's Internal Audit Department is in need of a "best value" solution. B. PURPOSE It is the intent of this RFP is to use the "Best Value" Procurement process to select a company or individual with the experience and qualifications; the ability; capability, and capacity; and proven past successful performance in providing audit of resorts taxes and internal audits of non-profit organizations. Proposals can be submitted either for Audit of Resort Taxes or Internal Audits of Non-Profit Organizations or both services. C. RFP TIMETABLE The anticipated schedule for this RFP and contract approval is as follows: RFP to be issued Pre-Proposal Conference Deadline for receipt of questions Deadline for receipt of responses Evaluation committee meetings Commission approval/ authorization of negotiations Contract negotiations Projected award date Projected contract start date October 23, 2006 November 7, 2006 November 15, 2006 November 28, 2006 @ 3:00 p.m. December, 2006 January, 2007 January, 2007 March, 2007 March, 2007 D. PROPOSALS SUBMISSION An original and ten (10) copies of Companies or individuals' proposal will be received until 3:00 p.m. on November 28, 2006, at the following address: City of Miami Beach City Hall Procurement Division -- Third Floor 1700 Convention Center Drive Miami Beach, Florida 33139 The original and all copies must be submitted to the Procurement Division in a sealed envelope or container stating on the outside the Contractor's name, address, telephone number, RFP number and title, and due date. No facsimile or a-mail responses will be considered. The responsibility for submitting a response to this RFP to the Procurement Division on or before the stated time and date will be solely and strictly that of the contractor. The City will in no way be responsible for delays caused by the U.S. Post Office or caused by any other entity or by any occurrence. Responses received after the RFP due date and time will not be accepted and will not be considered. October 24, 2006 RFP No: OS-06/07 City of Miami Beach 6 of 46 E. PRE-PROPOSAL SUBMISSION MEETING A pre-Proposal submission meeting is scheduled for November 7, 2006 at 10:00 a.m. at the following address: City of Miami Beach City Hall City Manager's Small Conference Room, 4th Floor 1700 Convention Center Drive Miami Beach, Florida. Attendance (in person or via telephone) is encouraged and recommended as a source of information but is not mandatory. Companies or individuals interested in participating in the pre-RFP submission meeting via telephone must follow these steps: (1) Dial the TELEPHONE NUMBER: 1-800-915-8704 (Toll-free North America) (2) Enter the MEETING NUMBER: ''2659980* (note that number is preceded and followed by the star (*) key). Companies or individuals who are interested in participating via telephone, please send an e- mail to the contact person listed on the next page, expressing your intent to participate via telephone. F. CONTACT PERSON The contact person for this RFP is Maria Estevez, Procurement Coordinator. Ms. Estevez may be reached by phone: 305.673.7490; fax: 305.673.7851; or a-Mail: mestevez@miamibeachfl.gov. The City's Procurement Director is authorized by the City's Cone of Silence Ordinance to have oral communications with prospective Companies or individuals relative to matters of process or procedures only. Requests for additional information or clarifications must be made in writing to the Procurement Director. Facsimile or a-mail requests are acceptable. Please sent all questions to mestevez(a~miamibeachfl.gov and copy the City Clerk's office RobertParcher@miamibeachfl.gov. The Procurement Director will issue replies to inquiries and additional information or amendments deemed necessary in written addenda, which will be issued prior to the deadline for responding to this RFP. Companies or individuals should not rely on representations, statements, or explanations other than those made in this RFP or in any addendum to this RFP. Companies or individuals are advised that oral communications between the Companies or individuals or their representatives and the Mayor or City Commissioners and their respective staff, or members of the City's administrative staff to include the City Manager and his staff, or evaluation committee members is prohibited. G. TERM OF CONTRACT This contract shall commence the day specified in the contract as a result of negotiations, and remain in effect for a period of one (1) year. The City of Miami Beach has the option to renew the contract at its sole discretion for an additional two (2) year period on a year-to-year basis. Renewal of the contract is a City of Miami Beach prerogative- not a right of the contractor. Such option will be exercised, if at all, only when it is in the best interest of the City of Miami Beach. October 24, 2006 RFP No: 08-06/07 City of Miami Beach 7 of 46 In the event that the contract is held over beyond the term herein provided it shall only be from a month-to-month basis only and shall not constitute an implied renewal of the contract. Said month to month extension shall be upon the same terms of the contract and at the compensation and payment provided herein, and shall not exceed six (6) months. Option to Renew / Adjustment to Contract Amount: In the event the City of Miami Beach exercises its option to renew beyond the initial three (3) year contract, the contract prices and any other terms the City may choose to negotiate, will be reconsidered for adjustment prior to renewal due to increases or decreases in labor costs; but in no event will the prices be increased or decreased by a percentage greater than the percentage change reflected in the Consumer Price Index -All Urban Areas (CPI-U) as published by the U.S. Department of Labor. The City of Miami Beach reserves the right to accept the renewal adjustment or to allow the contract to terminate and re-advertise for bids, whichever is in the best interest of the City. October 24, 2006 RFP No: OS-06/07 City of Miami Beach 8 of 46 SECTION II --SCOPE OF SERVICES Audits are to be performed on businesses registered with the City for collecting resort taxes, and for non-profit organizations receiving funding through the City. The City of Miami Beach invites Requests for Proposals from qualified providers of auditing services. Resort Taxes: The City of Miami Beach charges a resort tax of three percent on revenues generated by the sale of rooms and two percent on revenues from food and beverages earned within the City. Businesses are required to register with the City to collect and remit taxes. It is projected that $35.8 million in resort taxes will be collected in fiscal year 06/07. As of October 1, 2006, there were 1,811 businesses registered to collect resort taxes. Of that total, 665 are reporting taxes to the City on a monthly basis, and 4 are reporting taxes on a quarterly basis. These businesses consist of hotels, restaurants, nightclubs, and bars. The balance of registered businesses (1,142) represents apartments required to report on an annual basis to the City. The City employs field agents to audit these businesses. In October 1994, the City began to utilize independent companies or individuals to expand the audit coverage for these audits. Currently, the City has three field agents and two professional service agreements with companies or individuals which expired March 14, 2007. The Internal Audit objective for fiscal year 06/07 is to audit 23 percent of the monthly and 9 percent of the annual active resort tax accounts for a total of 250 accounts. The Internal Audit Department will assign these audits to the City's field agents and independent companies or individuals. Contracts may be awarded to more than one company or individual. The contract term would be for a period of one year with the option of two one-year renewals. Funds are available from the resort tax fund. The budget for fiscal year 06/07 has $96,250 for these professional services. Expenditures for fiscal year 05/06 are expected to be $66,250. It is anticipated that the total number of audits assigned to the companies or individuals will be about 100 audits per year. Audits are to be performed on businesses registered with the City for collecting resort taxes. The scope of the work consists of examining the taxpayer's accounting records, such as general ledgers, cash receipts journals, sales journals, and other records as may be maintained by the taxpayer; comparison of reported taxable sales with other reports such as Florida sales tax reports, and the preparation of schedules and analyses of work to determine compliance with the City Code relating to the collection and payment. All taxpayers' records which are subject to, determined to be, or administered by the Resort Tax codes are examined. Detailed testing is performed on a sample basis. Contractor is to follow the City's Internal Audit programs for auditing resort tax businesses. There are separate programs for the annual filing and the monthly filing accounts. Revenues reported in monthly filing accounts may vary by containing revenues from rooms, food and or alcohol. City forms and programs will be provided in electronic format. (Attachments to this RFP, please see pages 34 and 46) Also included in the work to be performed is the initial contact with the business and the performance of an audit which results in the issuance of a resolution letter stating the results of the audit. Each audit is completed by the submission of workpapers and a resolution letter to the Internal Auditor for final review and approval. There were two fee amounts of $750 & $900 for audits of monthly and quarterly accounts, and $600 and $700 for annual accounts. For the fiscal year ended September 30, 2006, the two companies or individuals completed 56 audits of monthly filers and 24 audits of annual filers. The companies or individuals' average hours per audit are 21.0 hours for monthly accounts and 7.3 hours for annual accounts. October 24, 2006 RFP No: OS-06/07 City of Miami Beach 9 of 46 Internal Audits of Non-Profits: The City of Miami Beach distributes funding from various sources to several non-profit agencies on an annual basis. Funding sources consist of monies from the general fund, resort tax fund, Community Development Block Grants, Home Investment partnerships, and Emergency Shelter Grants. The City Commission has requested that these agencies be included in the Internal Audit's audit schedule. The Internal Audit Department has identified 30 agencies receiving funding totaling $7,772,000 for fiscal years 04/05 and 05/06. Ranges in funding distributed to these agencies were from $5,000 to $2,525,000. The Internal Audit Department's objective for fiscal year 06/07 is to audit four to six of these non- profit agencies. The Internal Audit Department will assign these audits to the independent companies or individuals and the inside staff auditors. Contracts may be awarded to more than one company or individual. The contract term would be for a period of one year with the option of two one-year renewals. Funds are available from the general fund. The proposed budget for fiscal year 06/07 is $10,000. Funding for subsequent years may increase depending upon the need for completion of these audits. It is anticipated that the total number of audits assigned to the companies or individuals for fiscal year 06/07 would be approximately four to six audits depending upon funding. Audits are to be performed ofnon-profit organizations receiving funding through the City. The scope of the work consists of examining the organization's accounting records, such as general ledgers, revenue and expenditure transactions, and other records as may be maintained by the organization, and the preparation of schedules and analyses of work to determine compliance with the applicable regulations of the funding received from the City. Detailed testing is performed on a sample basis. Contractor is to follow the City's Internal Audit programs for auditing non-profit agencies. City forms and programs will be provided in electronic format. Each audit is completed by the submission of workpapers with a draft audit report listing findings to the Internal Auditor for final review and approval. There were two fee amounts of $50 and $60 per hour awarded for the previous contract. For fiscal year ended September 30, 2005, one contractor assisted in one audit of an agency for 48 hours totaling $2,880. There was no work performed by outside contractors for fiscal year ended September 30, 2006. October 24, 2006 RFP No: OS-06/07 City of Miami Beach 10 of 46 SECTION III -PROPOSAL FORMAT Proposals must contain the following documents, each fully completed, and signed as required. If any items are omitted, Companies or individuals must submit the documentation within five (5) calendar days upon request from the City, or the proposal shall be deemed non-responsive. The City will not accept cost information after deadline for receipt of proposal. 1. Table of Contents Outline in sequential order the major areas of the proposal, including enclosures. All pages must be consecutively numbered and correspond to the table of contents. 2. Proposal Points to Address: Proposer must respond to all minimum requirements listed below. Proposals which do not contain such documentation may be deemed non-responsive. a) Introduction letter outlining the Companies or individuals professional specialization, provide past experience to support the qualifications of the submitter. Interested Companies or individuals should submit documents that provide evidence as to the capability to provide grounds maintenance services. b) Cost Information: Cost information must be submitted using "Exhibit A" on page 47, and if selected as successful contractor, cost will be negotiated. Fee Proposal must include the following: -Audits of Resort Taxes must include proposed fees per audit. - Internal Audits of Non-Profit Organizations must include proposed hourly fees. c) Client Survey: Please provide your client with the Performance Evaluation Letter and Survey attached herein on pages 32 and 33, and request that your client submit the completed survey to the contact person listed on page 7. d) Past Performance Information: Past performance information will be collected on all companies or individuals. Companies or individuals are required to identify and submit their best projects. Companies or individuals will be required to send out Performance Evaluation Surveys to each of their clients. Companies or individuals are also responsible for making sure their clients return the Performance Evaluation Surveys to the City. The City reserves the right to verify and confirm any information submitted in this process. Such verification may include, but is not limited to, speaking with current and former clients, review of relevant client documentation, site-visitation, and other independent company or individual of data. e) Qualifications of Company or individual Team: Provide an organizational chart of all personnel and consultants to be used on this project and their qualifications. Aresume of each individual, including education, experience, and any other pertinent information shall be included for each team member to be assigned to this project. Proposers shall provide supporting documentation for the following in their response package to the City: 1. Proposer's Experience and Qualifications with Providing Services Requested in the RFP. 2. Qualifications of employees, to include key personnel. October 24, 2006 RFP No: 08-06/07 City of Miami Beach 11 of 46 3. Past performance based on references and Performance Evaluation Surveys. (Surveys must be submitted directly by clients, if surveys are received from the proposer, will not be accepted) 4. Number of years in auditing resort tax businesses and non-profit organizations. Acknowledgment of Addenda: (IF REQUIRED BY ADDENDUM) and Proposer Information forms (Pages 20-30); October 24, 2006 RFP No: 08-06/07 City of Miami Beach 12 of 46 SECTION IV -MINIMUM REQUIREMENTS/QUALIFICATIONS Must have at least three years experience in auditing operations of hotel, restaurants, bars, and / or apartment businesses. Experience should include reviewing internal controls surrounding revenue processing equipment, knowledge of operations, and auditing establishments' financial records to substantiate revenue amounts reported to the City. Must own a personal computer with common spreadsheet and word processing software. The City will provide audit programs, forms and letters in Microsoft Office formats. Must have a working knowledge of the use of this software. 3. Company or individual must have an office located in South Florida (Miami-Dade, Broward, Palm Beach, and Monroe Counties) for the past three years. October 24, 2006 City of Miami Beach RFP No: OB-06/07 13 of 46 SECTION V -EVALUATION/SELECTION PROCESS The procedure for response evaluation and selection wilt be as follows: • RFP issued. • Receipt of responses. • Opening and listing of all responses received. • An Evaluation Committee, appointed by the City Manager, shall meet to evaluate each response in accordance with the requirements of this RFP. If further information is desired, respondents may be requested to make additional written submissions or oral presentations to the Evaluation Committee. • The Evaluation Committee will recommed to the City Manager the response(s) which the Evaluation Committee deems to be in the best interest of the City by using the following criteria for selection: 1. Experience and qualification of the proposer. (25 points) 2. Experience and qualification of individuals assigned to audits (25 points) 3. Proposed fees per audit. (40 points) 4. Quality of references (10 points) The City may request, accept, and consider proposals for the compensation to be paid under the contract only during competitive negotiations. Important Note: By submitting a response, all companies or individuals shall be deemed to understand and agree that no property interest or legal right of any kind shall be created at any point during the aforesaid evaluation/selection process until and unless a contract has been agreed to and signed by both parties October 24, 2006 RFP No: OS-06/07 City of Miami Beach 14 of 46 SECTION VI -LEGAL TERMS AND CONDITIONS /INSURANCE A. MODIFICATION/WITHDRAWALS OF SUBMITTALS A contractor may submit a modified response to replace all or any portion of a previously submitted response up until the RFP due date and time. Modifications received after the RFP due date and time will not be considered. Responses shall be irrevocable until contract award unless withdrawn in writing prior to the RFP due date or after expiration of 120 calendar days from the opening of responses without a contract award. Letters of withdrawal received after the RFQ due date and before said expiration date and letters of withdrawal received after contract award will not be considered. B. RFP POSTPONEMENTICANCELLATION/REJECTION The City may, at its sole and absolute discretion, reject any and all, or parts of any and all, responses; re-advertise this RFP; postpone or cancel, at any time, this RFP process; or waive any irregularities in this RFP or in any responses received as a result of this RFP. C. COST INCURRED BY COMPANIES OR INDIVIDUALS All expenses involved with the preparation and submission of responses to the City, or any work performed in connection therewith, shall be the sole responsibility of the contractor (s) and not be reimbursed by the City. D. EXCEPTIONS TO RFP Companies or individuals must clearly indicate any exceptions they wish to take to any of the terms in this RFP, and outline what alternative is being offered. The City, after completing evaluations, may accept or reject the exceptions. Incases in which exceptions are rejected, the City may require the consultant to furnish the services or goods originally described, or negotiate an alternative acceptable to the City. E. SUNSHINE LAW Companies or individuals are hereby notified that all information submitted as part of a response to this RFP will be available for public inspection after opening of responses, in compliance with Chapter 286, Florida Statutes, known as the Florida Government in the Sunshine Law. F. NEGOTIATIONS The City may award a contract on the basis of initial offers received, without discussion, or may require consultants to give oral presentations based on their responses. The City reserves the right to enter into negotiations with the selected consultant, and if the City and the selected consultant cannot negotiate a mutually acceptable contract, the City may terminate the negotiations and begin negotiations with the next selected consultant. This process may continue until a contract has been executed or all responses have been rejected. No consultant shall have any rights in the subject project or property or against the City arising from such negotiations. October 24, 2006 RFP No: 08-06/07 City of Miami Beach 15 of 46 G. PROTEST PROCEDURES Companies or individuals that are not selected may protest any recommendation for selection of award in accordance with City of Miami Beach Ordinance No. 2002-3344, which establishes procedures for protesting the City Manager's recommendation. Protest not timely pursuant to the requirements of Ordinance No. 2002-3344 shall be barred. H. RULES; REGULATIONS; AND LICENSING REQUIREMENTS Companies or individuals are expected to be familiar with and comply with all Federal, State and local laws, ordinances, codes, and regulations that may in any way affect the services offered, including the Americans with Disabilities Act, Title VII of the Civil Rights Act, the EEOC Uniform Guidelines, and all EEO regulations and guidelines. Ignorance on the part of the consultant will in no way relieve it from responsibility for compliance. I. DEFAULT Failure or refusal of a consultant to execute a contract upon award by the City Commission, or untimely withdrawal of a response before such award is made and approved, may result in forfeiture of that portion of any surety required as liquidated damages to the City; where surety is not required, such failure may result in a claim for damages by the City and may be grounds for removing the consultant from the City's vendor list. J. CONFLICT OF INTEREST All consultants must disclose with their response the name(s) of any officer, director, agent, or immediate family member (spouse, parent, sibling, and child) who is also an employee of the City of Miami Beach. Further, alt consultants must disclose the name of any City employee who owns, either directly or indirectly, an interest of ten (10%) percent or more in the consultant or any of its affiliates. K. COMPLIANCE WITH THE CITY'S LOBBYIST LAWS All Proposers are expected to be or become familiar with all City of Miami Beach Lobbyist laws, as amended from time to time. Proposers shall ensure that all City of Miami Beach Lobbyist laws are complied with, and shall be subject to any and all sanctions, as prescribed herein, in addition to disqualification of their Proposals, in the event of such non-compliance. L. CONSULTANT'S RESPONSIBILITY Before submitting responses, each consultant shall make all investigations and examinations necessary to ascertain all conditions and requirements affecting the full performance of the contract. Ignorance of such conditions and requirements resulting from failure to make such investigations and examinations will not relieve the successful consultant from any obligation to comply with every detail and with all provisions and requirements of the contract documents, or will be accepted as a basis for any claims whatsoever for any monetary consideration on the part of the consultant. M. RELATION OF CITY It is the intent of the parties hereto that the successful consultant be legally considered to be an independent consultant and that neither the consultant nor the consultant's employees and agents shall, under any circumstances, be considered employees or agents of the City. October 24, 2006 City of Miami Beach RFP No: 08-06/07 16 of 46 N. PUBLIC ENTITY CRIME (PEC) A person or affiliate who has been placed on the convicted vendor list following a conviction for public entity crimes may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entity for the construction or repair of a public building or public work, may not submit bids on leases of real property to public entity, may not be awarded or perform work as a contractor, supplier, sub-contractor, or consultant under a contract with a public entity ,and may not transact business with any public entity in excess of the threshold amount provided in Sec. 287.017, for CATEGORY TWO ($25,000.00) for a period of 36 months from the date of being placed on the convicted vendor list. O. ASSIGNMENT The successful consultant shall not enter into any sub contract, retain consultants, or assign, transfer, convey, sublet, or otherwise dispose of this contract, or of any or all of its right, title, or interest therein, or its power to execute such contract to any person, company or individual, or corporation without prior written consent of the City. Any unauthorized assignment shall constitute a default by the successful consultant. P. INDEMNIFICATION The successful consultant shall be required to agree 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, in law or in equity, which may arise or be alleged to have arisen from the negligent acts or omissions or other wrongful conduct of the successful consultant, its employees, or agents in connection with the performance of service pursuant to the resultant Contract; the successful consultant shall pay all such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses, and shall pay all costs expended by the City in the defense of such claims and losses, including appeals. R. TERMINATION FOR DEFAULT If through any cause within the reasonable control of the successful consultant, it shall fail to fulfill in a timely manner, or otherwise violate any of the covenants, agreements, or stipulations material to the Agreement, the City shall thereupon have the right to terminate the services then remaining to be performed by giving written notice to the successful consultant of such termination which shall become effective upon receipt by the successful consultant of the written termination notice. In that event, the City shall compensate the successful consultant in accordance with the Agreement for all services performed by the consultant prior to termination, net of any costs incurred by the City as a consequence of the default. Notwithstanding the above, the successful 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 successful consultant for the purposes of set off until such time as the exact amount of damages due the City from the successful consultant is determined. October 24, 2006 City of Miami Beach RFP No: OS-06/07 17 of 46 S. TERMINATION FOR CONVENIENCE OF CITY The City may, for its convenience, terminate the services then remaining to be performed at any time without cause by giving written notice to successful consultant of such termination, which shall become effective thirty (30} days following receipt by consultant of such notice. In that event, all finished or unfinished documents and other materials shall be properly delivered to the City. If the Agreement is terminated by the City as provided in this section, the City shall compensate the successful consultant in accordance with the Agreement for all services actually performed by the successful consultant and reasonable direct costs of successful consultant for assembling and delivering to City all documents. No compensation shall be due to the successful consultant for any profits that the successful consultant expected to earn on the balanced of the Agreement. Such payments shall be the total extent of the City's liability to the successful consultant upon a termination as provided for in this section. T. INSURANCE Successful Consultant shall obtain, provide and maintain during the term of the Agreement the following types and amounts of insurance as indicated on the Insurance Checklist which shall be maintained with insurers licensed to sell insurance in the State of Florida and have a B+ VI or higher rating in the latest edition of AM Best's Insurance Guide. Name the City of Miami Beach as an additional insured on all liability policies required by this contract. When naming the City of Miami Beach as an additional insured onto your policies, the insurance companies or individuals hereby agree and will endorse the policies to state that the City will not be liable for the payment of any premiums or assessments. Any exceptions to these requirements must be approved by the City's Risk Management Department. FAILURE TO PROCURE INSURANCE: Successful consultant's failure to procure or maintain required insurance program shall constitute a material breach of Agreement under which City may immediately terminate the proposed Agreement. U. CONE OF SILENCE Pursuant to Section 2-486 of the City Code, entitled Cone of Silence, you are hereby advised that the Cone of Silence requirements listed herein shall apply. V. DEBARMENT ORDINANCE Proposers are hereby advised that this RFQ is further subject to City of Miami Beach Ordinance No. 2000-3234 (Debarment Ordinance). Proposers are strongly advised to review the City's Debarment Ordinance. Debarment may constitute grounds for termination of the contract, as well as, disqualification from consideration on any City of Miami Beach RFP, RFQ, RFLI, or bid. X. CODE OF BUSINESS ETHICS Pursuant to Resolution No.2000 23879 each person or entity that seeks to do business with the City shall adopt a Code of Business Ethics ("Code") and submit that Code to the October 24, 2006 RFP No: 08-06/07 City of Miami Beach 18 of 46 Procurement Division with your bid/response or within five days upon receipt of request. The Code shall, at a minimum, require your company or individual or you as a sole proprietor, to comply with all applicable governmental rules and regulations including, among others, the conflict of interest, lobbying and ethics provision of the City Code. Y. AMERICAN WITH DISABILITIES ACT Call 305-673-7490/VOICE to request material in accessible format; sign language interpreters (five days in advance when possible), or information on access for persons with disabilities. For more information on ADA compliance please call Heidi Johnson Wright, Public Works Department, at 305-673-7080. Z. ACCEPTANCE OF GIFTS, FAVORS, SERVICES Proposers shall not offer any gratuities, favors, or anything of monetary value to any official, employee, or agent of the City, for the purpose of influencing consideration of this proposal. Pursuant to Sec. 2-449 of the City Code, no officer or employee of the city shall accept any gift, favor or service that might reasonably tend improperly to influence him/her in the discharge of his/her official duties. October 24, 2006 City of Miami Beach RFP No: 08-06/07 19 of 46 INSURANCE CHECK LIST XXX 1. Workers' Compensation and Employer's Liability per the statutory limits of the state of Florida. XXX 2. Comprehensive General Liability (occurrence form), limits of liability $1,000,000.00 per occurrence for bodily injury property damage to include Premises/ Operations; Products, Completed Operations and Contractual Liability. Contractual Liability and Contractual Indemnity (Hold harmless endorsement exactly as written in "insurance requirements" of specifications). XXX3.Automobile Liability - $1,000,000 each occurrence -owned/non-owned/hired automobiles included. 4.Excess Liability - $ . 00 per occurrence to follow the primary coverage. XXX 5. The City must be named as and additional insured on the liability policies; and it must be stated on the certificate. 6. Other Insurance as indicated: _ Builders Risk completed value $ . 00 Liquor Liability $ . 00 _ Fire Legal Liability $ . 00 _ Protection and Indemnity $ . 00 Employee Dishonesty Bond $ . 00 XXX Professional Liability $1.,000,000 .00 XXX 7.Thirty (30) days written cancellation notice required. XXX 8.Best's guide rating B+: VI or better, latest edition. XXX 9.The certificate must state the Quote number and title VENDOR AND INSURANCE AGENT STATEMENT: We understand the Insurance Requirements of these specifications and that evidence of this insurance may be required within five (5) days after Proposal opening. Vendor Signature of Vendor October 24, 2006 City of Miami Beach RFP No: 08-06/07 20 of 46 SECTION VII -DOCUMENTS TO BE COMPLETED AND RETURNED TO CITY October 24, 2006 RFP No: OS-06/07 City of Miami Beach 21 of 46 REQUEST FOR PROPOSALS NO. 08-06/07 ACKNOWLEDGMENT OF ADDENDA Directions: Complete Part I or Part II, whichever applies. Part I: Listed below are the dates of issue for each Addendum received in connection with this RFP: 07-06/07 Addendum No. 1, Dated Addendum No. 2, Dated Addendum No. 3, Dated Addendum No. 4, Dated Addendum No. 5, Dated Part II: No addendum was received in connection with this RFP. Verified with Procurement staff Name of staff Date (Contractor -Name) (Date) (Signature) October 24, 2006 City of Miami Beach RFP No: 08-06/07 22 of 46 DECLARATION TO: City of Miami Beach City Hall 1700 Convention Center Drive Procurement Division Miami Beach, Florida 33139 Submitted this day of , 2006. The undersigned, as consultant, declares that the only persons interested in this proposal are named herein; that no other person has any interest in this responses or in the Contract to which this response pertains; that this response is made without connection or arrangement with any other person; and that this response is in every respect fair and made in good faith, without collusion or fraud. The consultant agrees if this response is accepted, to execute an appropriate City of Miami Beach document for the purpose of establishing a formal contractual relationship between the consultant and the City of Miami Beach, Florida, for the performance of all requirements to which the response pertains. The consultant states that the response is based upon the documents identified by the following number: RFP No.08-06/07 SIGNATURE PRINTED NAME TITLE (IF CORPORATION) October 24, 2006 City of Miami Beach RFP No' OS-06107 23 of 46 SWORN STATEMENT UNDER SECTION 287.133(3)(a), FLORIDA STATUTES, ON PUBLIC ENTITY CRIMES THIS FORM MUST BE SIGNED AND SWORN TO IN THE PRESENCE OF A NOTARY PUBLIC OR OTHER OFFICER AUTHORIZED TO ADMINISTER OATHS. 1. This sworn statement is submitted to [Print name of public entity] By [Print individual's name and title] For [Print name of entity submitting sworn statement] Whose business address is and (if applicable) its Federal Employer Identification Number (FEIN) is (If the entity has no FEIN, include the Social Security Number of the individual signing this sworn statement: 4. I understand that a "public entity crime" as defined in Paragraph 287.133(1)(g), Florida Statutes, means a violation of any state or federal law by a person with respect to and directly related to the transaction of business with any business with any public entity or with an agency or political subdivision of any other state or of the United States, including, but not limited to, any bid or contract for goods or services to be provided to any public entity or an agency or political subdivision of any other state or of the United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or material misrepresentation. 5. I understand that "convicted" or "conviction" as defined in Paragraph 287.133(1)(b), Florida Statutes, means a finding of guilt or a conviction of a public entity crime, with or without an adjudication of guilt, in any federal or state trial court of record relating to charges brought by indictment or information after July 1, 1989, as a result of a jury verdict, nonjury trial, or entry of a plea of guilty or nolo contendere. 6. I understand that an "affiliate" as defined in Paragraph 287.133(1)(a), Florida Statutes, means: 1) A predecessor or successor of a person convicted of a public entity crime; or 2) An entity under the control of any natural person who is active in the management of the entity and who has been convicted of a public entity crime. The term "affiliate" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in the management of an affiliate. The ownership by one person of shares constituting a controlling interest in another person, or a pooling of equipment or income among persons when not for fair market value under an arm's length agreement, shall be a prima facie case that one person controls another person. A person who knowingly enters into a joint venture with a person who has been convicted of a public entity crime in Florida during the preceding 36 months shall be considered an affiliate. October 24, 2006 City of Miami Beach RFP No OS-06/07 24 of 46 5) I understand that a "person" as defined in Paragraph 287.133(1)(e), F-orida Statutes means any natural person or entity organized under the laws of any state or of the United States with the legal power to enter into a binding contract and which bids or applies to bid on contracts for the provision of goods or services let by a public entity, or which otherwise transacts or applies to transact business with a public entity. The term "person" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in management of an entity. 6) Based on information and belief, the statement which I have marked below is true in relation to the entity submitting this sworn statement. [Indicate which statement applies.] Neither the entity submitting this sworn statement, nor any officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, nor any affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members or agents who are active in management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. However, there has been a subsequent proceeding before a Hearing Officer of the State of Florida, Division of Administrative Hearings and the Final Order entered by the hearing Officer determined that it was not in the public interest to place the entity submitting this sworn statement on the convicted vendor list. [Attach a copy of the final order] I UNDERSTAND THAT THE SUBMISSION OF THIS FORM TO THE CONTRACTING OFFICER FOR THE PUBLIC ENTITY IDENTIFIED IN PARAGRAPH 1 (ONE) ABOVE IS FOR THAT PUBLIC ENTITY ONLY AND, THAT THIS FORM IS VALID THROUGH DECEMBER 31 OF THE CALENDAR YEAR IN WHICH IT IS FILED. I ALSO UNDERSTAND THAT I AM REQUIRED TO INFORM THE PUBLIC ENTITY .PRIOR TO ENTERING INTO A CONTRACT IN EXCESS OF THE THRESHOLD AMOUNT PROVIDED IN SECTION 287.017, FLORIDA STATUTES FOR CATEGORY TWO OF ANY CHANGE IN THE INFORMATION CONTAINED IN THIS FORM [Signature] Sworn to and subscribed before me this day of _ , 2006 Personally known OR Produced identification (Type of Identification) Notary Public -State of My commission expires (Printed typed or stamped Commissioned name of Notary Public) October 24, 2006 City of Miami Beach RFP No: OS-06/07 25 of 46 QUESTIONNAIRE Consultant's Name: Principal Office Address: Official Representative: Individual Partnership (Circle One) Corporation If a Corporation, answer this: When Incorporated: In what State: If a Foreign Corporation: Date of Registration with Florida Secretary of State: Name of Resident Agent: Address of Resident Agent: President's Name: Vice-President's Name: Treasurer's Name: Members of Board of Directors October 24, 2006 RFP No OB-06/07 City of Miami Beach 26 of 46 Questionnaire (continued) If a Partnership: Date of organization: General or Limited Partnership*: Name and Address of Each Partner: NAME ADDRESS * Designate general partners in a Limited Partnership I. Number of years of relevant experience in operating A/E business: 2. Have any agreements held by Consultant for a project ever been canceled? Yes() No() If yes, give details on a separate sheet. 3. Has the Consultant or any principals of the applicant organization failed to qualify as a responsible Bidder, refused to enter into a contract after an award has been made, failed to complete a contract during the past five (5) years, or been declared to be in default in any contract in the last 5 years? If yes, please explain: October 24, 2006 RFP No: 08-06/07 City of Miami Beach 27 of 46 Questionnaire (continued) 4. Has the Consultant or any of its principals ever been declared bankrupt or reorganized under Chapter 11 or put into receivership? Yes () No ( ) If yes, give date, court jurisdiction, action taken, and any other explanation deemed necessary on a separate sheet. 5. Person or persons interested in this bid and Qualification Form have ( )have not ( ) been convicted by a Federal, State, County, or Municipal Court of any violation of law, other than traffic violations. To include stockholders over ten percent (10%). (Strike out inappropriate words) Explain any convictions: 6. Lawsuits (any) pending or completed involving the corporation, partnership or individuals with more than ten percent (10%) interest: A. List all pending lawsuits: B. List all judgments from lawsuits in the last five (5) years: C. List any criminal violations and/or convictions of the Consultant and/or any of its principals: 7. Conflicts of Interest. The following relationships are the only potential, actual, or perceived conflicts of interest in connection with this proposal: (If none, state same.) October 24, 2006 City of Miami Beach RFP No: 08-06/07 28 of 46 Questionnaire (continued) 8. Public Disclosure. In order to determine whether the members of the Evaluation Committee for this Request for Proposals have any association or relationships which would constitute a conflict of interest, either actual or perceived, with any Consultant and/or individuals and entities comprising or representing such Consultant, and in an attempt to ensure full and complete disclosure regarding this contract, all Consultants are required to disclose all persons and entities who may be involved with this Proposal. This list shall include public relation company or individuals, lawyers and lobbyists. The Procurement Division shall be notified in writing if any person or entity is added to this list after receipt of proposals. October 24, 2006 City of Miami Beach RFP No: 08-06/07 29 of 46 Questionnaire (continued) The Consultant understands that informatian contained in this Questionnaire will be relied upon by the City in awarding the proposed Agreement and such information is warranted by the Consultant to be true. The undersigned Consultant agrees to furnish such additional information, prior to acceptance of any proposal relating to the qualifications of the Consultant, as may be required by the City Manager. The Consultant further understands that the information contained in this questionnaire may be concompany or individuated through a background investigation conducted by the Miami Beach Police Department. By submitting this questionnaire the Consultant agrees to cooperate with this investigation, including but not necessarily limited to fingerprinting and providing information for credit check. WITNESS: IF INDIVIDUAL: Signature Signature Print Name Print Name WITNESS: IF PARTNERSHIP: Signature Print Name of Company or individual Print Name Address By: General Partner Print Name WITNESS: IF CORPORATION: Signature Print Name of Corporation Print Name Address By: President (CORPORATE SEAL) Attest: October 24, 2006 RFP No: OS-06/07 City of Miami Beach 30 of 46 SECTION VIII -BEST PERFORMANCE PROCUREMENT INFORMATION DOCUMENTS TO BE COMPLETED BY CUSTOMERS OF THE RESPONDENT October 24, 2006 City of Miami Beach RFP No: 08-06/07 31 of 46 m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139; www.miamibeachfl.gov PROCUREMENT DIVISION Tel: 305.673.7490 ,Fax: 305.673.7851 October 24, 2006 To: Phone: Fax: E-mail: Subject: Performance Evaluation of Number of pages including cover: 2 To Whom It May Concern: The City of Miami Beach has implemented a process that collects past performance information on various companies or individuals to perform auditing services. The information will be used to assist City of Miami Beach in the procurement of auditing of resort taxes and internal audits of non-profit organizations. The company or individual listed in the subject line has chosen to participate in this program. They have listed you as a past client that they have done work for. Both, the company or individual and City of Miami Beach would greatly appreciate you taking a few minutes out of your busy day to complete the accompanying questionnaire. Please review all items in the following attachment and answer the questions to the best of your knowledge. If you cannot answer a particular question, please leave it blank. Please return this questionnaire to Maria Estevez by Tuesday, December 5, 2006 by fax: 305.673.7851; or a-mail mestevezCa~miamibeachfl.gov Thank you for your time and effort. - f,~ Gus Lopez, CPPO Procurement Director October 24, 2006 City of Miami Beach RFP No: OS-06/07 32 of 46 m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov PROCUREMENT DIVISION Tel: 305.673.7490 ,Fax: 305.673.7851 PERFORMANCE EVALUATION SURVEY Contractor Name: Point of Contact: Phone and e-mail: Please evaluate the performance of the contractor (10 means you are very satisfied and have no questions about hiring them again, 5 is if you don't know and 1 is if you would never hire them again because of very poor performance). NO CRITERIA UNIT 1 Ability to manage the audit and budget costs (1-10) 2 Ability to maintain the audit schedule (complete on-time or early) (1.10) 3 Quality of audit work papers/documentation (1-10) 4 Professionalism and ability to manage the scope and objectives of the audit ( ~ 1-1 ~ 5 Communication of results of audit findings (1-10) 6 Ability to follow the users rules, regulations, and requirements (l_10) ~ Overall customer satisfaction and hiring again based on erformance (1 ~ ~~ Overall Comments: Agency or Contact Reference Business Name: Contact Name: Contact Phone and e-mail: Date of Services: Dollar Amount for Services: PLEASE FAX THIS QUESTIONAIRE TO MARIA ESTEVEZ AT 305.673.7851 October 24, 2006 RFP No: 08-06/07 City of Miami Beach 33 of 46 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM #1 ANNUAL ACCOUNTS -APARTMENTS PRELIMINARY WORK NOTIFICATION LETTER: PRE-AUDIT INTERVIEW: AUDIT INTERVIEW QUESTIONNAIRE Business Name: Date: Total Available Rooms: How many floors? What kind of rentals do your exemptions represent? PRE-AUDIT INTERVIEW (NOTE: To be performed at least two (2) weeks prior to audit commencement date). DATE INTIALS 1. Tour premises noting layout. 2. Visually inspect the premises for the following: a. Document any revenue control procedures and equipment. 3. Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file. 4. Review what records are maintained to support Resort Tax Returns with owner/contact. 5. Review Audit Questionnaire with owner/contact. October 24, 2006 City of Miami Beach RFP No: 08-06/07 34 of 46 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM #1 ANNUAL ACCOUNTS -APARTMENTS REQUEST FOR RECORDS DATE DATE REQUESTED RECEIVED SOURCE DOCUMENTS a. Hotels, Apartment Houses, Etc. i. Guest Cards/Folios ii. Receipt Register iii. Rent Rolls iv. Signed Lease v. Other (Specify) 2. ACCOUNTING RECORDS a. Hotels, Apartment Houses, Etc. i. Sales Journals ii. Transcript/Revenue Report iii General Ledger 3. GENERAL ITEMS a. Federal Income Tax Returns b. State Sales Tax Returns c. County Tax Returns d Exemption Documentation e Financial Statements f. Bank Statements GENERAL PROCEDURES DATE INITIALS 1. Examine the Exemptions taken and determine their validity. a. Prepare and see related schedule(s). 2. Examine Rental Income Records to determine taxable rentals if any. a. Trace to Resort Tax Return. b. Prepare and see related schedule(s). October 24, 2006 City of Miami Beach RFP No: 08-06/07 35 of 46 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM #1 ANNUAL ACCOUNTS -APARTMENTS POST AUDIT PROCEDURES DATE INITIALS 1. Discuss audit findings (if any) with owner/contact. 2. Review late charge fees or other memos owed by taxpayer. 3. Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 4. Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 5. Final review of audit performed by Asst. Internal Auditor/ Auditor. October 24, 2006 City of Miami Beach RFP No OS-06/07 36 of 46 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM #2 MONTHLY ACCOUNTS -RESTAURANT AND BARS PRELIMINARY WORK NOTIFICATION LETTER: PRE-AUDIT INTERVIEW: AUDIT INTERVIEW QUESTIONNAIRE FOOD & ALCOHOL OPERATIONS Business Name: Date: What are your business hours and days of operation? What is the seating/occupancy capacity? How many employees are there? Do you provide complimentary employee meals? Do you provide discounted employee meals? If yes, % of discount How many cash registers/ POS Terminals are there? What system do you use? What internal daily records do you keep? Guest Checks Register Tapes POS Report (daily and monthly Do you have promotional/complimentary ("house") charges: Yes ( ) No ( ) If yes, approximately what % of total sales is this? October 24, 2006 City of Miami Beach RFP No 08-06/07 37 of 46 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM #2 MONTHLY ACCOUNTS -RESTAURANT AND BARS PRE-AUDIT INTERVIEW (NOTE: To be performed at least two (2) weeks prior to audit commencement date). DATE INITIALS 1. Tour premises with owner/contact noting layout. 2. Visually inspect the premises and: a. document any revenue control procedures and equipment. 3. Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file with the Resort Tax Section. 4. Review what records are maintained to support Resort Tax Returns with owner/contact. 5. Review Audit Questionnaire with owner/contact. REQUEST FOR RECORDS DATE DATE REQUESTED RECEIVED SOURCE DOCUMENTS a. Restaurants & Bars i. Daily Sales Tickets ii. Cash Register Tapes iii. Daily POS Reports iv. Daily/Weekly Summaries v. Purchase Records/Invoices iiii. Other (Specify) 2. ACCOUNTING RECORDS a. Restaurants & Bars i. Sales Journal ii. Purchases Journal iii. General Ledger October 24, 2006 City of Miami Beach RFP No' 08-06/07 38 of 46 CITY OF MIAM! BEACH RESORT TAX AUDIT PROGRAM #2 MONTHLY ACCOUNTS -RESTAURANT AND BARS DATE DATE REQUESTED RECEIVED 3. GENERAL ITEMS a. Federal Income Tax Returns b. Alcohol Surcharge Reports c. State Sales Tax Return d. Exemption Documentation e. Financial Statements f. Bank Statements GENERAL PROCEDURES DATE INITIALS Examine Federal Income Tax Returns/ Income Statements. a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). Examine State Sales Tax Returns a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 3. Examine Income Statements a. Compare sales with totals reported on the Resort Tax Returns. b. Compute the cost of sales ratio and determine Its reasonableness within industry standard c. Prepare and see related schedule(s). 4. Alcohol Surcharge Tax Returns a. Reconstruct revenues and compare to Resort Tax Return. b. Prepare and see related schedule(s). October 24, 2006 City of Miami Beach RFP No: OS-06/07 39 of 46 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM #2 MONTHLY ACCOUNTS -RESTAURANT AND BARS REVENUE PROCEDURES SALES: DATE INITIALS 1. Examine a sample of monthly sales from the Revenue Source Document. a. Trace sales to daily/weekly/monthly reports. b. Trace sales to State Sales Tax Returns. c. Prepare and see related schedules. 2. Select a sample of guest checks/sales tickets and trace to the sales journal/revenue reports to verify propriety of the accounting records. (If possible obtain copy of guest checks for audit work papers.) 3. If the business uses bank statements for reporting purposes: a. Compare bank deposits statements to the resort tax returns. b. Prepare and see related schedules. 4. Document work performed, including an explanation of any alternate/additional audit procedures performed, explanations of unreasonable variances and conclusions made as to reasonableness of reported sales. PURCHASES: 1. Calculate/review food and beverage costs for a selected period and compare to industry/ market averages. a. Prepare and see related schedules. POST AUDIT PROCEDURES 1. Discuss audit findings (if any) with owner/contact. DATE INITIALS 2. Review late charge fees or other memos owed by taxpayer. 3. Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 4. Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 5. Final review of audit performed by Asst. Internal Auditor/ Auditor. October 24, 2006 City of Miami Beach RFP No: OS-06/07 40 of 46 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM #3 MONTHLY ACCOUNTS -HOTELS Business Name: Date: AUDIT INTERVIEW QUESTIONNAIRE FOOD & ALCOHOL OPERATIONS What are your food and beverage outlets? What are your business hours and days of operation?. What is the seating/occupancy capacity? Do you provide complimentary employee meals? Do you provide discounted employee meals? If yes, % of discount How many cash registers/ POS Terminal are there? What system do you use? Are they interfaced with the hotel? What internal daily record do you keep? Guest Checks Register Tapes POS Report (daily/monthly) Do you have promotional/complimentary ("house") charges: Yes ( )No( ) If yes, approximately what % of total sales is this? How does your system work? Business Name: Date: Check-In Time: Check-Out Time: AUDIT INTERVIEW QUESTIONNAIRE ROOMS OPERATIONS How many floors? Total available rooms: What kind of rentals do your exemptions represent? How does your system work? October 24, 2006 RFP No: 08-06/07 City of Miami Beach 41 of 46 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM #3 MONTHLY ACCOUNTS -HOTELS PRE-AUDIT INTERVIEW (NOTE: To be performed at least two (2) weeks prior to audit commencement date). 1. Tour premises with owner/contact noting layout. 2. Visually inspect the premises and document any revenue control procedures and equipment. 3. Determine the following with the ownerlcontact: a. Current ownership b. Current officers c. Above information agrees with information on file with Resort Tax Section. 4. Review what records are maintained to support Resort Tax Returns with owner/contact. 5. Review Audit Questionnaire with owner/contact. DATE INTIALS REQUEST FOR RECORDS DATE DATE REQUESTED RECEIVED SOURCE DOCUMENTS a. Hotels, Apartment Houses, Etc. i. Guest Cards/Folios ii. Receipt Register iii. Rent Rolls iv. Signed Lease v. Night Auditor vi. Other (Specify) b. Restaurants & Bars i. Daily Sales Tickets ii. Cash Register Tapes iii. Daily/Weekly Summaries iv. Purchase Records/Invoices v. Other (Specify) October 24, 2006 City of Miami Beach RFP No: OS-06/07 42 of 46 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM #3 MONTHLY ACCOUNTS -HOTELS 2. ACCOUNTING RECORDS a. Hotels, Apartment Houses, Etc. i. Sales Journals ii. Transcript/Revenue Report iii. General Ledger b. Restaurants & Bars i. Sales Journal ii. Purchases Journal iii. General Ledger 3. GENERAL ITEMS a. Federal Income Tax Returns b. State Sales Tax Returns c. County Tax Returns d Exemption Documentation e Financial Statements f. Bank Statements g. Alcohol Surcharge GENERAL PROCEDURES DATE INITIALS Examine Federal Income Tax Returns/Income Statements a. Compare sales with totals reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 2. Examine State Sales Tax Returns a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s) 3. Examine County Tax returns a. Compare sales with total reported on Resort Tax Returns, Reconcile, if necessary. b. Prepare and see related schedules(s) 4. Examine Sales Tax Worksheets a. Compare sales with totals reported on the Resort Tax Returns. b. Prepare and see related schedule(s). 5. Compare sales total from above return with the General Ledger totals. a. Prepare and see related schedule(s) October 24, 2006 City of Miami Beach RFP No' 08-06/07 43 of 46 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM #3 MONTHLY ACCOUNTS -HOTELS REVENUE PROCEDURES SALES: DATE INITIALS 1. Examine Revenue Source Document (Rooms, Food, Alcohol) a. Trace sales to daily/weekly/monthly reports. b. Prepare and see related schedules. 2. Examine a sample of daily revenue reports. a. Trace to the month end reports. b. Compare to the Monthly Income statement./Resort Tax Returns. c. Prepare and see related schedules. 3. Examine General Ledger (sales, purchases, and tax payable) a. Trace to Financial Statements/Resort Tax Returns. b. Prepare and see related schedules. 4. If the hotel uses bank statements for reporting purposes: a.Compare bank deposits statements to the resort tax returns. b.Prepare and see related schedules. 5. Review selected exemptions documents for proper signature and propriety of exemption taken. 6. Document work performed, including an explanation of any alternate/additional audit procedures performed, explanations of unreasonable variances and conclusions made as to reasonableness of reported sales. ROOMS AUDIT PROGRAM DATE INITIALS PURCHASES: 1. Calculate/review food and beverage costs for a selected period and compare to industry/market averages. a. Prepare and see related schedules(s) October 24, 2006 RFP No: 08-06/07 City of Miami Beach 44 of 46 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM #3 MONTHLY ACCOUNTS -HOTELS POST AUDIT PROCEDURES 1. Discuss audit findings (if any) with owner/contact. DATE INITIALS 2. Review late charge fees or other memos owed by taxpayer. 3. Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 4. Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 5. Final review of audit performed by Asst. Internal. Auditor/ Auditor. October 24, 2006 City of Miami Beach RFP No: OS-06/07 45 of 46 EXHIBIT A COST PROPOSAL Company Name Audits of Resort Taxes Monthly Review Quarterly Review Yearly Review $ $ $ Internal Audits of Non- Hourly Rate Profit Organizations October 24, 2006 RFP No. 08-06/07 City of Miami Beach 46 of 46 m MIAMIBEACH City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov PROCUREMENT Division Tel: 305-673-7490, Fax: 305-673-7851 REQUEST FOR PROPOSALS (RFP) NO. 08-06/07 ADDENDUM NO. 1 November 2, 2006 AUDIT RESORT TAXES AND INTERNAL AUDITS OF NON-PROFIT ORGANIZATIONS is amended as follows: Section IV on page 13, Subdivision 3, is revised (words added are denoted by an underscore; words deleted are denoted by a str+l~#) to read as follows: Company or individual must have an office located in South Florida (Miami-Dade, Broward, Palm Beach, and Monroe Counties) f^~+-,^ ...,~++~.^^ „^.,~~ Consultants are required to acknowledge this Addendum on proposal Page 22, "Acknowledgement of Addenda", or the proposal may be considered non-responsive. CITY OF MIAMI BEACH Gus Lopez, CPPO Procurement Director F:\PURC\$ALL\Maria\RFP'S\06-07\RFP 08-06-07 -Audit of Resort Taxes and Internal Audits of Non-Profit Organizations\Original RFP Documents and Addendums\RFP-08-06-07A1.doc We are committed to praviding excellent public service and safety try oli ~~~ho Irve, work, and play in our vibrant, tropical, historic community. m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, vvww.miamibeachfl.gov PROCUREMENT Division Tel: 305-673-7490, Fax: 305-673-7851 REQUEST FOR PROPOSALS (RFP) NO. 08-06/07 ADDENDUM NO. 2 November 9, 2006 AUDIT RESORT TAXES AND INTERNAL AUDITS OF NON-PROFIT ORGANIZATIONS is amended as follows: In response to questions and requests for additional information received by prospective Companies or Individuals at the Pre-Proposal Submission Meeting of November 7, 2006, and the Administration's additional review of the requirements set forth in the RFP, the RFP is hereby amended as follow: The Insurance Check List has been revised. Please see attached. 2. The Pre-Proposal Submission Meeting Sing-in sheet is attached as part of this addendum. 3. The Word format for the Client Performance Evaluation Survey form, pages Nos. 32 and 33 of the RFP, will be made available per request. Please send your requests to mariaestevez@miamibeachfl.gov. 4. The Cost Information provided in Exhibit A will be fixed for the first year of the contract. For the remaining years, price will be receptive to an annual adjustment in accordance with the CPI-U increment. 5. The City is seeking to award multiple contracts however; the number of contracts that will be awarded is unknown at this time. Awardees shall disclose to the City's Internal Auditor if auditing services are being provided to organizations assigned under this contract in order to avoid any legal or perceived conflict of interest. Companies or Individuals are required to acknowledge this Addendum on proposal Page 22, "Acknowledgement of Addenda", or the proposal may be considered non-responsive. CITY OF MIAMI BEACH ~;,~.. ;• ,. - -- Gus Lopez, CPPO Procurement Director W'e are cornmilted to providing excei!ert public service and snfery to all w;ho live, work, and ploy in cur vibrant, tropical, historic community F:\PURC\$ALL\Maria\RFP'S\06-07\RFP OS-06-07 -Audit of ResoR Taxes and Internal Audits of Non-Profit Organizations\Original RFP Documents and Addendu ms\RFP-08-06-07A1.doc INSURANCE CHECK LIST Other Insurance as indicated: _ Builders Risk completed value $ . 00 Liquor Liability $ . 00 _ Fire Legal Liability $ . 00 _ Protection and Indemnity $ . 00 Employee Dishonesty Bond $ . 00 XXX Professional Liability $ 500,000 .00 XXX 2.Thirty (30) days written cancellation notice required. XXX 3.Best's guide rating B+: VI or better, latest edition. XXX 4.The certificate must state the Quote number and title VENDOR AND INSURANCE AGENT STATEMENT: We understand the Insurance Requirements of these specifications and that evidence of this insurance may be required within five (5) days after Proposal opening. Vendor Signature of Vendor Amended, November, 9 2006 -Addendum No. 2 City of Miami Beach .fir i~~/'1~~ Q1~' C`~ ~-'rI-~. Q+~ ~ S[(~3IN5~-~T DATB: Novembe~'7f Zt}OG RAP Na.: RFP - 08-iQ7 fiI"fLE: AuI~tT IarSORT TAx1~s ~ iNTERt~tAL At~rrs ~~ I~C)N-PROFIT QItGAN1ZATIQI~S NAME (PLEASE PRINT} Cd~tPANY NAMIv' E-MAIL A.TfI~RESS PHOT+tE# FAQ ~~1'18 ~$~Cl° {.`~V~~ ~" p'$'AC#ll'~Illk.~l~ ~ivl&Ii~II ~{~~-~7~~-~~~~ ~~~~~7~~'~gJ~~ 111CS~C?1 c1#III~1 v C 1~4"Z ' '' ~~ ~ESaoaA r,ll~~L~ ~ iE4~7-i~~,~IC. ~ti j ~' 3~S ~~~'' Flv~ ~u~{~U(d ~~~~- ~',~~R~z ~~ ra'1 ~-I ~ :r rc~ fi~ mh ~ 1 ~ ~ O ~,~ ~ ~~`. T ~+r+~i , M }~~'4t J~1 ~r l ~ i~},~ . `.~,} h°' '~ L7 Ij ~~.~ ``~4~ ~~7, t~;~ ~~ / ~~ ~ ~~~ ` IC+~.I~ ~~~d ~' /~G . CfM ~~'1"~~~ ~~'~ SAD ~ ~.~r+~ .~ .~ } I2F"P-481147 Amended, November, 9 2006 -Addendum No. 2 City of Miami Beach