HomeMy WebLinkAboutR-89-0533NMI
J-89-554
5/30/89
RESOLUTION NO. S19-5 3
A RESOLUTION, WITH ATTACHMENT, AUTHORIZIING
THE CITY MANAGER TO EXECUTE AN AGREEMENT l�,
IN SUBSTANTIALLY THE FORM ATTACHED, BETWEEN
THE CITY OF MIAMI AND DELOITTE HASKINS AND
SELLS, CERTIFIED PUBLIC ACCOUNTANTS, IN
ASSOCIATION WITH SHARPTON, BRUNSON & COMPANY,
P.A., VERDEJA, IRIONDO & GRAVIER, CPAS AND
WATSON & COMPANY, FOR EXTERNAL AUDITING
SERVICES FOR THE FISCAL YEAR ENDING
SEPTEMBER 30, 1989, WITH FUNDS IN AN AMOUNT
NOT TO EXCEED $295,000 THEREFOR ALLOCATED
FROM SPECIAL PROGRAMS AND ACCOUNTS.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The City Manager is hereby authorized to
execute an agreement l/, in substantially the form attached,
between the City of Miami and Deloitte Haskins & Sells, Certified
Public Accountants, in association with Sharpton, Brunson, &
Company, P.A., Verdeja, Iriondo & Gravier, CPAs, and Watson &
Company for auditing services to be provided to the City for
Fiscal Year ending September 30, 1989, and with a series of four
one-year options for first consideration to renegotiate the
agreement, subject to review and approval of the Audit Advisory
Committee and the City Commission, with funds in an amount not to
exceed $295,000 therefor hereby allocated from Special Programs
and Accounts.
Section 2. This Resolution shall become effective
immediately upon its adoption pursuant to law.
PASSED AND ADOPTED this 7th day of me , 1989.
XAVIER L. VOAREZ, 14AYOR
ATTEST• v
MATTY HIRAI, CITY CLERK
The herein authorization is further subject to compliance
with all requirements that may be imposed by the City
Attorney as prescribed by applicable City Code provisions
CITY COMMISSION.
ATTAINNEEITS
MEETING OF
JUN 7 1989CONTAKH" VED
RESOLUTION Flo.
REMARKS:
FINA L REVIEW:
CAR . GARCIA, DIRECTOR
DEPART NT OF FINANCE
BUDGET REVIEW:
MANOH4SUR DIRECTORMANAGDGET DEPARTMENT
PREPARED AND APPROVED BY:
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ROBERT F. CLARK
ASkSTANT CITY ATTORNEY
LEGISLATION DIVISION CHIEF
APPROVED AS TO FORM AND CORRECTNESS:
J GE ERN' DEZ
CITY ATTORNIE
RFC:bss:1078
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This Agreement entered into this day of , 1989,
by and between the City of Miami, a municipal corporation of the
State of Florida, hereinafter referred to as "CITY" and Deloitte
Haskins & Sells, Certified Public Accountants; Sharpton, Brunson
& Company, F.A.; Verdeja, Iriondo & Gravier,'CPA's; and Watson &
Company, hereinafter referred to .as "CONSULTANTS".
RECITAL:
WHEREAS, THE CITY OF MIAMI, .FLORIDA, requires professional
services, in the nature of external auditing services; and
WHEREAS, the CONSULTANTS have expressed- a desire to. perform
the required external auditing services for the CITY; and •
WHEREAS, the City Commission authorized the City Manager to
negotiate and execute a professional service agreement by
Resolution No. 89-359-
NOW, THEREFORE, in consideration of the promises and the
t mutual covenants and obligations herein contained, and subject to
s
the terms and conditions hereinafter stated, the parties hereto
understand and agree as follows:
I.
TERM:
This Agreement shall commence June 1, 1989, for the purpose of
auditing the books, accounting records, and finances of the City
for the fiscal year ending September 30, 1989, with a series of
four one-year options for first consideration to renegotiate a
contract, subject to review and approval of the Audit
Advisory
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Committee and the City Commission, up to a maximum of
four (4),
additional years.
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SCOPE OF SERVICES:
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The CONSULTANTS shall provide the following professional
services
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as part of this Agreement:
A. The CONSULTANTS shall examine and report on the
financial
®
statements and certain supplemental financial schedules
of
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the funds and account groups of the CITY as listed in
Exhibit I attached hereto.
B. The CONSULTANTS shall adhere to "Generally Accepted -
Auditing Standards" applicable to governmental units.
C. The CONSULTANTS must be knowledgeable of Federal and State
statutes, reporting requirements under the Single Audit Act
of 1984 and OMB Circular A-128, GAO standards, regulations
and guidelines applicable to municipalities in the State of
Florida, and will conduct the audit in accordance with
these requirements existing, or as may be pronounced during
the period or term of this audit engagement.
D. The CONSULTANTS shall express an opinion on the "General =
Purpose Financial Statements". Information for the
combining and individual fund statements and schedules of
the Comprehensive Annual Financial Report will also be
subject to the auditing procedures applied in the =
examination for the general purpose financial statements.
E. The CONSULTANTS shall review the system of internal -
accounting control and internal administrative control to
the extent required by Generally Accepted Auditing
Standards and requirements of the Single Audit Act.
F. The CONSULTANTS shall fulfill requirements of Section
10.557 of the Rules of the Auditor General, including:
1) Preparation of Annual Financial Audit Report.
2) Issuance of Annual Management Letter to inform
the CITY of any weaknesses in the system of
internal control as uncovered by their
examination, and to make known their
recommendations which, if implemented, would, in
the CONSULTANTS opinion, increase efficiency,
improve management and improve internal control.
3) Preparation of Single Audit Report, and other
necessary Federal and State Reports.
G. The CONSULTANTS shall assist in the preparation of required
reports for submission in order to attain a Certificate of
Achievement for Excellence in Financial Reporting.
89-533
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H. The CONSULTANTS agree to schedule their audit work to
perform a substantial portion prior to year-end. Field
examination of the annual audit shall be completed by
December 31, and the opinion letter shall be submitted no
later than January 31 for each year of the life of this
agreement.
I. The CONSULTANTS agree to maintain and make available their
working papers to any Federal or State agency upon
appropriate request through the City Manager and in
accordance with Federal and/or State legal provisions.
J. The CONSULTANTS agree to commuAicate with the City Manager
or designee, the Audit Advisory Committee, or the City
Commission as requested.
EXTRA WORK: fi •
The CONSULTANTS, upon receipt of a written request from the City
Manager or his designee, shall perform such additional work as
may reasonably be required, including, but not limited to,
special revenue audits, special EDP reviews, reviews of Official
Statements for offerings of securities by the City, meetings with
underwriters and attorneys in connection with offerings of
securities and other requested services.
IV.
WORK PAPERS:
For a period of three (3) years after completion of any work
provided herein; the CONSULTANTS shall make their work papers,
records, and other evidence and documents relating to such work
available to their successor and the CITY, including its
designees. The CITY and its representatives shall be entitled,
at any time during such three (3) year period, to inspect such
documents and to reproduce same at the CITY's expense, for which
provisions will be made at the time the need for reproduction
arises. Such access, inspection, and reproduction of working
papers, records, and other documents may be restricted by the
CONSULTANTS as to that portion of working papers which pertain to
their auditing procedures and the nature and extent of their
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audit testing.
V.
COMPENSATION:
A. The CITY shall pay the CONSULTANTS, as compensation for the
services required pursuant to Paragraph II hereof, a fee not
to exceed $295,000, of which $75,000 will be allocated to
the Single Audit requirement.
B. The CONSULTANTS shall be reimbursed for travel, per diem and
related expenses. All expenses relating to travel shall be
approved in advance by the CITY.
C. Compensation to the CONSULTANTS for. extra work performed
pursuant to Paragraph III of this Agreement shall be based
on their prevailing standard hourly rate schedules, as
stated in Exhibit II.
COMPLIANCE WITH FEDERAL, STATE, AND LOCAL _LAWS:
Both parties shall comply with all applicable laws, ordinances,
and codes of Federal, State, and Local Government.
VII.
• GENERAL CONDITIONS:
A. All notices or other communications which shall or may be
given pursuant to this Agreement shall be in writing and
shall be delivered by personal service, or by registered
mail addressed to the other party at the address indicated
herein or' as the same may be changed from time to time.
Such notice shall be deemed given on the day on which
personally served; or, if by mail, on the fifth day after
being posted or the date of actual receipt, whichever is
earlier.
CITY OF MIAMI CONSULTANTS
City of Miami Deloitte Haskins & Sells
3500 Pan American Drive 100 S. E. 2nd Street.
Miami, Florida 33133 Miami, Florida 33131
B. Title and Paragraph headings are for convenient reference
and are not part of this Agreement.
C. In the event of conflict between terms of this, Agreement and
any terns or conditions contained in any attached documents,
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the terms in this Agreements shall rule."'
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D. No waiver or breach of any provision of this Agreement shall.
constitute a waiver of any subsequent breach of the same or
any other provision hereof, and no waiver shall be effective
unless made in writing.
E. Should any provision, paragraphs, sentences, words or
phrases contained in this Agreement be determined by a court
of competent jurisdiction to be invalid, illegal or
otherwise unenforceable under the laws of the State of
Florida or the City of Miami, such provisions, paragraphs,
sentences, words or phrases shall be deemed modified to the
extent necessary in order to conform with such laws, or if
not modifiable to conform with such laws, then same shall be
deemed severable, and in either event, the remaining terms
and provisions of this Agreement -shall remain unmodified and
in full force and Affect. •
VIII.
NONDELEGABILITY:
It is mutually agreed by both Parties .that the CONSULTANTS shall
assign 50% of the compensation for Basic Services outlined in
Section V. herein, among the firms of Sharpt on, Brunson &
Company, P.A.; Verdeja, Iriondo & Gravier, CPA's; and Watson &
Company.
This Agreement, or any interest herein, shall not be otherwise
assigned, transferred, or encumbered, without prior written
approval of the City Manager. The obligations undertaken by
CONSULTANTS pursuant to this Agreement shall not be otherwise
delegated or assigned to any other person of firm unless CITY
shall first consent in writing to the, performance or assignment
of such service or any part thereof by another person of firm.
IX.
AWARD OF AGREEMENT:
CONSULTANTS warrant that they have not employed or retained apy
person employed by the CITY to solicit or secure this Agreement
and that they have not offered to pay, paid, or agreed to pa.y any
person employed by the CITY any fee, commission, percentage,
brokerage fee, or gift of any kind contingent upon or resulting
from the award of this Agreement....
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CONSTRUCTION OF AGREEMENT:
This Agreement shall be construed and enforced according to the
laws of the State of Florida.
XI.
SUCCESSORS AND ASSIGN:
This Agreement shall be binding upon the parties herein, their
heirs, executors, legal representatives, successors, and assigns.
XII.
INDEMNIFICATION:
CONSULTANTS shall indemnify and saye CITY harmless from and
against any and all claims, liabilities, losses, and causes of
action which may arise out of CONSULTANTS's activities under this
Agreement, including all other acts or omissions to act on the
part of CONSULTANTS, including any person acting for or on their
behalf, and, from and against any orders, judgments, or decrees
which may be entered and from and against all costs, attorney's
fees, expenses and liabilities incurred in the defense of any
such claims, or in the investigation thereof.
It is hereby understood by and between CITY and CONSULTANTS that
any payment made in accordance with this Section to CONSULTANTS
shall be made only if said CONSULTANTS are not in default. If
said CONSULTANTS. are in default then CITY shall in no way be
obligated and shall not pay to CONSULTANTS any sum whatsoever.
XIII.
CONFLICT OF INTEREST:
A. CONSULTANTS covenant that no person under their employ who
presently exercises any functions or responsibilities in
connection with this Agreement has any personal financial
interest, direct or indirect with CITY. CONSULTANTS further
covenant that, in the performance of this Agreement, no
person having such conflicting interest shall be employed.
Any such interests on the part of CONSULTANTS or their
employees, must be disclosed in writing to CITY.
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B. CONSULTANTS are aware of the conflict of interest laws of
the City of Miami (City of Miami Code Chapter 2, Article V),
Dade County Florida (Dade County Code Section 2-11.1) and
the State of Florida, and agree that they shall fully comply
in all respects with the terms of said laws.
XIV.
INDEPENDENT CONTRACTOR:
CONSULTANTS and their employees and agents shall be deemed to be
independent contractors, and not agents or employees of CITY, and
shall not attain any rights or benefits under the Civil Service
or Pension Ordinances of CITY, or arty rights generally afforded
classified or unclassified employees; further they shall not be
deemed entitled to the Florida Workers' Compensation benefits as
employees of CITY.
XV. ,
TERMINATION OF CONTRACT:
CITY retains the right to terminate this Agreement at any time
prior to the completion of the services required pursuant to
paragraph II"hereof without penalty to CITY. In that event,
notice of termination of this Agreement shall be in writing to
CONSULTANTS, who shall be paid for those services performed prior
to the date of their receipt of notice of termination. In no
case, however, will CITY pay CONSULTANTS an amount in excess of
the total sum provided by this Agreement.
XVI.
NONDISCRIMINATION:
CONSULTANTS agree that they shall not discriminate as to 'race,
sex, color, creed, or national origin or handicap in connection
with their performance under this Agreement.
XVII.
MINORITY PROCUREMENT COMPLIANCE:
CONSULTANTS acknowledge that they have been furnished a cop :of
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Ordinance No. 10538, the Minority Procurement Ordinance of the
City of Miami, and agree to comply with
substantive and procedural provisions therein,
amendments thereto.
all applicable
including any
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CONTINGENCY CLAUSE:
Funding for this Agreement is contingent on the availability of
funds and continued authorization for program activities and is
subject to amendment or termination due to lack of funds, or
authorization, reduction of funds, and/or change in regulations.
XIX.
DEFAULT PROVISION:
In the event the CONSULTANTS shall fail to comply with each and
every term and condition of this Agreement or fails to perform
any of the terms and conditions contained herein, then CITY, at
its sole option, upon written notice to CONSULTANTS may cancel
and terminate this Agreement, and all payments, advances, or
other compensation paid to CONSULTANTS by CITY while CONSULTANTS
were in default of t4,e provisions herein contained, shall be
forthwith returned to CITY.
XX .
ENTIRE AGREEMENT:
This instrument and its attachments constitute the sole and only
Agreement of the parties hereto relating to said grant and
correctly sets forth the rights, duties, and obligations of each
to the other as of its date. Any prior agreements, promises,
negotiations, or representations not expressly set forth in the
Agreement are of no force of effect.
XXI.
AMENDMENTS:
No amendments to this Agreement shall be binding on either party
unless in writing and signed by both parties.
IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be executed by. the respective officials thereunto
duly authorized, this the day and year first above written.
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ATTEST:
MATTY HIRAI, CITY CLERK
ATTEST:
CORPORATE SECRETARY
APPROVED BY:
LINDA KELLY KEARSON
ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM
AND CORRECTNESS:
JORGE L. FERNANDEZ,
CITY ATTORNEY
BUDGET REVIEW:
—� MANOHAR SURANA, DIRECTOR
DEPT. OF MANAGEMENT & BUDGET
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FINANCE REVIEW:
CARLOS E. GARCIA, DIRECTOR
DEPARTMENT OF FINANCE
CITY OF MIAMI, a municipal
corporation of the State of
Florida
By: CESAR H. ODIO
CITY MANAGER
CONSULTANTS:
By: _
DELOITTE HASKINS & SELLS
By:
SHARPTON, BRUNSON & CO.,
P.A.
By: _
VERDEJA, IRIONDO &
GRAVIER, CPA's
By:
WATSON & COMPANY •
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NF IT
Exhibit I
FUNDS TO BE INCLUDED UNDER BASIC SERVICES
Funds and Groups of Accounts included in the
City's FY 88
Comprehensive Annual Financial Report, except for
the following
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component units which are audited under separate
contracts, and
are not the subject of this Agreement:
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Miami Sports & Exhibition Authority (Special
Revenue Fund)
M.S.E.A. Subordinate Obligation Note (Debt
Service Fund)
M.S.E.A. Special Obligation Bonds (Debt Service Fund)
Miami Arena (Capital Projects Fund)
Downtown Development Authority (Special Revenue Fund)
Department of Off Street Parking (Enterprise
Fund)
G & 0 Enterprise Fund
GESE Trust (Pension Trust Fundl-
FIPO Trust (Pension Trust Fund)
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CITY OF MIAMI. FLORIDA
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INTER -OFFICE MEMORANDUM V#46OJ6% =29
To Honorable Mayor and Members
of City Commission
rgzjr,� Cesar Odi
City Manag
RECOMMENDATION:
DATE MAY 3 � 1999
SUBJECT Agenda item for City
Commission meeting of
REFERENCES
ENCLOSURES
F.LE
It is respectfully recommended that attached resolution
authorizing the City Manager to execute an agreement, in
substantially the form attached hereto, between the City of Miami
and Deloitte Haskins & Sells, Certified Public Accountants, in
association with Sharpton, Brunson & Company, P.A., Verdeja,
Iriondo & Gravier, CPA's and Watson'.& Company, for external
auditing services for the fiscal year ending September 30, 1989,
with funds therefor not to exceed $295,000 allocated from Special
Programs and Accounts; be adopted.
BACKGROUND:
The City Commission by resolution No. 89-359 authorized the City
Manager to negotiate a coFtract with the firm of Deloitte Haskins
& Sells, in association 'with the minority firms of Sharpton,
Brunson & Company, P.A., Verdeja, Iriondo & Gravier, CPA's, and
Watson & Company, for the performance of external auditing
services for fiscal year 88-89, as recommended by the City's Audit
Advisory Committee.
Services covered by this agreement include:
Auditing and assisting in the preparation of the Financial
Section of the City's Comprehensive Annual Financial Report
and expressing an opinion on the General Purpose Financial
Statements contained therein.
Review the City's internal accounting controls and internal
administrative controls.
Preparation of Single Audit Report.
Issuance of Management Letter to inform the City of
!" weaknesses in internal controls and to make recommendations
to increase efficiency and to improve management.
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Honorable Mayor and Members
of City Commission
page 2.
Additional work that may be required from the firms will be
performed in accordance with schedule of fees attached to
agreement and as requested by the City Manager or his designee.
This agreement also allows a series of four one --year options for
first consideration to renegotiate a contract, subject to review
and approval of the City's Audit Advisory Committee and the City
Commission.
Of the $295,000 annual fees, $75,000 pertain to the performance of
the Single Audit as required by the Federal Government which will
be reimbursed by Community Development Block Grant and other
grants.
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