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Engagement LetterI I~il I ~ M ~ IIMI I BEAC H City of mi Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov Office of the City Manager Tel: (305) 673-7010, Fax: (305) 673-7782 August 20, 2008 Via Federal Express Ronald Thompkins, CPA, Partner TCBA Watson Rice, LLP 500 NW 165th Street Road Suite 205 Miami, FL 33169 RE: Executed Originals of Professional Services Agreement and Engagement Letter Dear Mr. Thompkins: Please find enclosed one (1)fully-executed original of the Professional Services Agreement and one (1)fully-executed original of the Engagement Letter. Should you have any questions or concerns, please do not hesitate to contact me. Sin rely, Tim mstreet Assistant City Manager Enclosures C: Jose Smith, City Attorney Raul Aguila, Deputy City Attorney Robert Parcher, City Clerk Vve arc" commirled to providing exceiient pubic service and safer ~o a~; who hvE wort and pray in our vibranC troprcol historic comnwni7~ ~-.~,. tN~o ire t Miami 500 NW 165th Street Road Suite 205 Miami, Florida 33169 Telephone: (305) 947-1638 Toll Free: (800) 599-3103 Facsimile: (305) 944-6225 August 5, 2008 Jose Smith, City Attorney City of Miami Beach, Florida 1700 Convention Center Drive Miami Beach, Florida 33139 Re: City's Building Department Dear Mr. Smith: Purpose of Letter Thank you for selecting us to assist you in the above captioned matter. This letter constitutes an agreement between you and TCBA Watson Rice LLP (the "Consultant") under which we will provide litigation support consulting services to the City of Miami Beach, Florida's (the "City") attorneys. We understand and accept that we may be requested to also furnish testimony at trial to support our findings. We will be available for consultation, investigations, accounting, and other services including planning strategy, and the tax effect of proposed settlements in connection with this case. Limitation of Distribution The reports, data, worksheets, or other documents that we prepare in connection with this engagement will be submitted only to you unless you or a lawful court process directs us to do otherwise. Any report or working papers that we prepare in connection with this case are to be used only for this case. No other use, disclosure, or dissemination of them is to be made without our express written permission. Conflicts 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. We performed an internal search for any potential conflicts of interest based upon the names of the parties that you have provided. We have not found any conflict of interest with respect to any of these parties. Limitation of Responsibility The Consultant shall protect, defend, reimburse, indemnify, and hold harmless the City and the City's officers, agents, and employees free and harmless from and against any and all claims, losses, penalties, damages, settlements, costs, charges, attorneys' or other professional fees, or other expenses or liabilities of every kind and character arising out of or relating to any and all claims, liens, demands, obligations, actions, or proceedings directly or indirectly arising out of or resulting from the mistakes or negligence, gross negligence, willful, and wanton acts and the performance of this Agreement by the Consultant, or its respective officers, employees, agents, servants, partners, or principals. The Consultant agrees to investigate, respond, adjust, and provide a defense for any such claims, demands, and actions, at the Consultant's sole expense and agrees to bear and remain liable for all such other costs and expenses relating thereto, even if such claim is groundless, false, or fraudulent. Notwithstanding the foregoing, the Consultant's indemnity shall not extend to liability for damages to persons or property to the extent such damage was caused by the sole and/or gross negligence of the City. Althot-gh our work may involve analysis of financial statements, forecasts of future operations, or other accounting data, we will not audit, review, compile, or provide any form of assurance on them. Additionally, our engagement cannot be relied upon to disclose errors, irregularities, or illegal acts, including fraud or defalcations, that may exist. Fees and Billing l ~„ A~'~` Our fees are ed on the actual time spent at our standard hourly rates for this type of work, plus ravel and other out-of-pocket costs such as report reproduction, typing, and postage. They reflect the degree of responsibility assumed, complexity of the engagement, special skills needed to solve problems, and the value of services rendered. Our standard hourly rates vary according to the experience level of the personnel assigned to the engagement. Our current hourly rates range from $119 per hour for staff to $238 per hour for partners. Note that the primary partner on this matter's rate is $238 per hour. We estimate the fees for this engagement will not exceed $50,000, plus $5,000 in expenses. The Consultant shall be entitled to invoice monthly for the portion(s) of Services completed. Upon review and approval of the invoice by the City's Attorney, the City will make its best. efforts to pay the Consultant withi days of the receipt of invoice. \~ Except to the extent finally determined to have resulted from our fraudulent behavior or willful misconduct, our maximum liability to you, for any reason, including our negligence relating to the services under this letter, shall be limited to the fees paid to us for the service or work product giving rise to liability. Request for Signature If this letter correctly expresses your understanding of our agreement, please sign the original copy of this letter and return it to us at your earliest convenience. When this letter has been returned, we will proceed forward on your behalf. If you have any questions concerning the engagement, including any of the detailed contents of this letter, do not hesitate to call us. Cordially, TCBA WATSON RICE LLP GGrCi e~r~ Ronald Thompkins, CPA, Partner ACCEPTANCE: This letter correctly sets forth my understanding: uate