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PROFESSIONAL SERVICES AGREEMENT
This Agreement is entered into this &0 day of November, 2007 (but effective as of
SeptemberA, 2007) by and between the City of Miami, a municipal corporation of the State of
Florida ("City") and McGladrey & Pullen ("Provider").
RECITAL
A. The City has issued a Request for Proposals ("RFP") for the provision of External
Auditing services ("Services") and Provider's proposal ("Proposal"), in response thereto, has
been selected as the most qualified proposal for the provision of the Services. The RFP and the
Proposal are sometimes referred to herein, collectively, as the Solicitation Documents, and are by
this reference incorporated into and made a part of this Agreement. In the event of an express
conflict between the RFP and/or the Proposal and this Agreement, this Agreement shall control.
B. The Commission of the City of Miami, by Resolution No. 07-0543, adopted on
September 27, 2007, approved the selection of Provider and authorized the City Manager to
execute a contract, under the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and promises herein
contained, Provider and the City agree as follows:
TERMS
1. RECITALS: The recitals are true and correct and are hereby incorporated into and made
a part of this Agreement.
2. TERM: The term of this Agreement shall be one (1) year commencing on the
effective date hereof.
3. OPTION TO EXTEND: The City Manager shall have two (2) option(s) to extend the
term hereof for a period of one (1) year each, subject to availability and appropriation of funds.
City Commission approval shall not be required as long as the total extended term does not
exceed three (3) years, or a period equal to the original term of this Agreement, whichever is
longer.
4. SCOPE OF SERVICE:
A. Provider agrees to provide the Services as specifically described, and under the
special terms and conditions set forth in Attachment "A" hereto, which by this reference is
incorporated into and made a part of this Agreement.
B. Provider represents and warrants to the City that: (i) it possesses all
qualifications, licenses and expertise required under the Solicitation Documents for the
performance of the Services; (ii) it is not delinquent in the payment of any sums due the City,
including payment of permit fees, occupational licenses, etc., nor in the performance of any
obligations to the City; (iii) all personnel assigned to perform the Services are and shall be, at all
times during the term hereof, fully qualified and trained to perform the tasks assigned to each;
and (iv) the Services will be performed in the manner described in Attachment "A".
5. COMPENSATION:
A. The amount of compensation payable by the City to Provider shall be based on the
rates and schedules described in Attachment "B" hereto, which by this reference is incorporated
into this Agreement; provided, however, that in no event shall the amount of compensation
exceed $ 380,000 in the first year, $390,000 in the second year and $410,000 in the third year, in
the absence of a duly executed amendment to this Agreement. The City shall have no liability
for payment of any compensation beyond the limitations expressed in this Section.
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B. Unless otherwise specifically provided in Attachment "B", payment shall be made
within forty five (45) days after receipt of Provider's invoice, which shall be accompanied by
sufficient supporting documentation and contain sufficient detail, to allow a proper audit of
expenditures, should City require one to be performed. If Provider is entitled to reimbursement
of travel expenses {i.e. Attachment "B" includes travel expenses as a specific item of
compensation], then all bills for travel expenses shall be submitted in accordance with Section
112.061, Florida Statutes.
6. OWNERSHIP OF DOCUMENTS: Except for Provider's work papers or
administrative records, which shall remain the property of Provider, Provider understands and
agrees that any information, document, report or any other material whatsoever which is given by
the City to Provider or which is otherwise obtained by Provider pursuant to or under the terms of
this Agreement is and shall at all times remain the property of the City. Provider agrees not to
use any such information, document, report or material for any other purpose whatsoever without
the written consent of the City Manager, which may be withheld or conditioned by the City in its
sole discretion. However, the parties hereto agree that the City of Miami shall have access at all
times to workpapers or administrative records pertaining hereto.
7. AUDIT AND INSPECTION RIGHTS:
A. The City may, at reasonable times, and for a period of up to three (3) years
following the date of final payment by the City to Provider under this Agreement, audit, or cause
to be audited, those work papers of Provider which are related to Provider's performance under
this Agreement. Provider agrees to maintain all such books and records at its principal place of
business for a period of three (3) years after final payment is made under this Agreement.
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B. The City may, at reasonable times during the term hereof, inspect Provider's
facilities and perform such tests, as the City deems reasonably necessary, to determine whether
the goods or services required to be provided by Provider under this Agreement conform to the
terms hereof and/or the terms of the Solicitation Documents, if applicable. Provider shall make
available to the City all reasonable facilities and assistance to facilitate the performance of tests
or inspections by City representatives. All tests and inspections shall be subject to, and made in
accordance with, the applicable provisions of Chapter 18 of the Code of the City of Miami,
Florida, as same may be amended or supplemented, from time to time.
8. AWARD OF AGREEMENT: Provider represents and warrants to the City that it
has not employed or retained any person or company employed by the City to solicit or secure
this Agreement and that it has not offered to pay, paid, or agreed to pay any person any fee,
commission, percentage, brokerage fee, or gift of any kind contingent upon or in connection
with, the award of this Agreement.
9. PUBLIC RECORDS: Provider understands that the public shall have access, at all
reasonable times, to all documents and information pertaining to City contracts, subject to the
provisions of Chapter 119, Florida Statutes, and agrees to allow access by the City and the public
to all documents subject to disclosure under applicable law. Provider's failure or refusal to
comply with the provisions of this section shall result in the immediate cancellation of this
Agreement by the City.
10. COMPLIANCE WITH FEDERAL1 STATE AND LOCAL LAWS: Provider
understands that agreements between private entities and local governments are subject to certain
laws and regulations, including laws pertaining to public records, conflict of interest, record
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keeping, etc. City and Provider agree to comply with and observe all applicable laws, codes and
ordinances as they may be amended from time to time.
11. INDEMNIFICATION: The Provider 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 Provider, or its respective
officers, employees, agents, servants, partners or principals. The Provider agrees to investigate,
respond, adjust, and provide a defense for any such claims, demands, and actions, at the
Provider'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 Provider'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.
12. DEFAULT: If Provider fails to comply with any term or condition of this Agreement,
or fails to perform any of its obligations hereunder, then Provider shall be in default. Prior to
termination of this Agreement for default, the City shall notify the Provider in writing of its
intent to terminate the Agreement for default, identify the alleged deficiencies in performance
giving rise to the intent to terminate, and shall give the Provider thirty (30) days to cure such
deficiencies. Upon the occurrence of a default hereunder the City, in addition to all remedies
available to it by law, may following thirty (30) days from the date of the written notice to
Provider, terminate this Agreement whereupon all payments, advances, or other compensation
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paid by the City to Provider while Provider was in default shall be immediately returned to the
City. Provider understands and agrees that termination of this Agreement under this section shall
not release Provider from any obligation accruing prior to the effective date of termination.
Should Provider be unable or unwilling to commence to perform the Services within the time
provided or contemplated herein, then, in addition to the foregoing, Provider shall be liable to the
City for all expenses incurred by the City in preparation and negotiation of this Agreement, as
well as all costs and expenses incurred by the City in the re -procurement of the Services,
including consequential and incidental damages.
13. RESOLUTION OF CONTRACT DISPUTES: Provider understands and agrees that
all disputes between Provider and the City based upon an alleged violation of the terms of this
Agreement by the City shall be submitted to the City Manager for his/her resolution, prior to
Provider being entitled to seek judicial relief in connection therewith. In the event that the
amount of compensation hereunder exceeds $25,000, the City Manager's decision shall be
approved or disapproved by the City Commission. Provider shall not be entitled to seek judicial
relief unless: (i) it has first received City Manager's written decision, approved by the City
Commission if the amount of compensation hereunder exceeds $25,000, or (ii) a period of sixty
(60) days has expired, after submitting to the City Manager a detailed statement of the dispute,
accompanied by all supporting documentation (90 days if City Manager's decision is subject to
City Commission approval); or (iii) City has waived compliance with the procedure set forth in
this section by written instruments, signed by the City Manager.
14. CITY'S TERMINATION RIGHTS:
A. The City shall have the right to terminate this Agreement, in its sole discretion, at
any time, by giving written notice to Provider at least five (5) business days prior to the effective
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date of such termination. In such event, the City shall pay to Provider compensation for services
rendered and expenses incurred prior to the effective date of termination. In no event shall the
City be liable to Provider for any additional compensation, other than that provided herein, or for
any consequential or incidental damages.
B. The City shall have the right to terminate this Agreement, without notice to
Provider, upon the occurrence of an event of default hereunder which, in the opinion of the City
Commission or City Manager, is of sufficient gravity that it is necessary to protect the interests of
public health, safety or general welfare. In such event, the City shall not be obligated to pay any
amounts to Provider and Provider shall reimburse to the City all amounts received while Provider
was in default under this Agreement.
15. INSURANCE: Provider shall, at all times during the term hereof, maintain such
insurance coverage as may be required by the City. All such insurance, including renewals, shall
be subject to the approval of the City for adequacy of protection and evidence of such coverage
shall be furnished to the City on Certificates of Insurance indicating such insurance to be in force
and effect and providing that it will not be canceled during the performance of the services under
this contract without thirty (30) calendar days prior written notice to the City. Completed
Certificates of Insurance shall be filed with the City prior to the performance of services
hereunder, provided, however, that Provider shall at any time upon request file duplicate copies
of the policies of such insurance with the City.
If, in the judgment of the City, prevailing conditions warrant the provision by Provider of
additional liability insurance coverage or coverage which is different in kind, the City reserves
the right to require the provision by Provider of an amount of coverage different from the
amounts or kind previously required and shall afford written notice of such change in
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requirements thirty (30) days prior to the date on which the requirements shall take effect.
Should the Provider fail or refuse to satisfy the requirement of changed coverage within thirty
(30) days following the City's written notice, this Contract shall be considered terminated on the
date that the required change in policy coverage would otherwise take effect. All references to
the City in Section 15 shall mean the City of Miami Risk Management Administrator.
16. NONDISCRIMINATION: Provider represents and warrants to the City that Provider
does not and will not engage in discriminatory practices and that there shall be no discrimination
in connection with Provider's performance under this Agreement on account of race, color, sex,
religion, age, handicap, marital status or national origin. Provider further covenants that no
otherwise qualified individual shall, solely by reason of his/her race, color, sex, religion, age,
handicap, marital status or national origin, be excluded from participation in, be denied services,
or be subject to discrimination under any provision of this Agreement.
17. MINORITY AND WOMEN BUSINESS AFFAIRS AND PROCUREMENT
PROGRAM: The City has established a Minority and Women Business Affairs and
Procurement Program (the "M/WBE Program") designed to increase the volume of City
procurement and contracts with Blacks, Hispanic and Women -owned business. The M/WBE
Program is found in Ordinance No. 10062, a copy of which has been delivered to, and receipt of
which is hereby acknowledged by, Provider. Provider understands and agrees that the City shall
have the right to terminate and cancel this Agreement, without notice or penalty to the City, and
to eliminate Provider from consideration and participation in future City contracts if Provider, in
the preparation and/or submission of the Proposal, submitted false or misleading information as
to its status as Black, Hispanic and/or Women owned business and/or the quality and/or type of
minority or women owned business participation.
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18. ASSIGNMENT: The Provider is a certified public accounting firm and their serives
are considered to be unique in nature by the City. This Agreement shall not be assigned by
Provider, in whole or in part, without the prior written consent of the City Commission, which
may be withheld or conditioned, in the City's sole discretion.
19. NOTICES: All notices or other communications required under this Agreement shall
be in writing and shall be given by hand -delivery or by registered or certified U.S. Mail, return
receipt requested, addressed to the other party at the address indicated herein or to such other
address as a party may designate by notice given as herein provided. Notice shall be deemed
given on the day on which personally delivered; or, if by mail, on the fifth day after being posted
or the date of actual receipt, whichever is earlier.
TO PROVIDER: TO THE CITY:
Diana Gomez, Finance Director
Finance Department
City of Miami
444 SW 2nd Ave Suite 618
Miami, FL 33130
20. MISCELLANEOUS PROVISIONS:
A. This Agreement shall be construed and enforced according to the laws of the State
of Florida. Venue in any civil action between the parties shall be in Miami -Dade County, Florida.
In order to expedite the resolution or conclusion of any civil action between the
parties, the parties voluntarily and knowingly waive their right to demand a jury trial or to file a
permissive counterclaim in any action between them.
B. Title and paragraph headings are for convenient reference and are not a part of this
Agreement.
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C. 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.
D. Should any provision, paragraph, sentence, word or phrase 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 provision,
paragraph, sentence, word or phrase shall be deemed modified to the extent necessary in order to
conform with such laws, or if not modifiable, 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 effect or limitation of its use.
E. This Agreement constitutes the sole and entire agreement between the parties
hereto. No modification or amendment hereto shall be valid unless in writing and executed by
properly authorized representatives of the parties hereto.
21. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon the parties
hereto, their heirs, executors, legal representatives, successors, or assigns.
22. INDEPENDENT CONTRACTOR: Provider has been procured and is being
engaged to provide services to the City as an independent contractor, and not as an agent or
employee of the City. Accordingly, Provider shall not attain, nor be entitled to, any rights or
benefits under the Civil Service or Pension Ordinances of the City, nor any rights generally
afforded classified or unclassified employees. Provider further understands that Florida
Workers' Compensation benefits available to employees of the City are not available to Provider,
and agrees to provide workers' compensation insurance for any employee or agent of Provider
rendering services to the City under this Agreement.
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23. CONTINGENCY CLAUSE: Funding for this Agreement is contingent on the
availability of funds and continued authorization for program activities and the Agreement is
subject to amendment or termination due to lack of funds, reduction of funds and/or change in
regulations, upon thirty (30) days notice.
24. REAFIRMATION OF REPRESENTATIONS: Provider hereby reaffirms all of the
representations contained in the Solicitation Documents.
25. ENTIRE AGREEMENT: This instrument and its attachments constitute the sole and
only agreement of the parties relating to the subject matter hereof and correctly set 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 this Agreement are of no force or effect.
The Auditor's engagement letter is hereby included as Attachment "C" and incorporated by
reference into this Agreement and made part hereof provided, however, that any terms included
in Attachment "C" that are in conflict with this Agreement will be null and void and the terms of
the Agreement will govern.
26. COUNTERPARTS: This Agreement may be executed in two or more counterparts,
each of which shall constitute an original but all of which, when taken together, shall constitute
one and the same agreement.
27. SPECIAL INSURANCE AND INDEMNIFICATION RIDER: Please initial if
applicable:
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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their respective officials thereunto duly authorized, this the day and year above
written.
ATTEST:
-r -
Priscilla A. Thompson, C.
A 1-FEST:
Clerk
,y, `7
Print Name:
Title: Corporate Secretary
APPROVED AS TO FORM AND
CORRECTNESS:
/
Jorge Fern, nd z
CityA e
"City"
CITY OF MIAMI, a municipal
corporation
By.
Pedro G. Hernlydez, City Manager
"Provider"
Mc Gladrey and Pullen, LLP,
By:
Print Name: ,1 re kAkkN
Title: Partner
APPROVED AS TO INSURANCE
REQUIREMENTS:
LeeAnn Brehm
Administrator
Risk Management
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