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HomeMy WebLinkAboutExhibit 2AMENDMENT #2 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MIAMI AND RACHLIN, COHEN, AND HOLTZ, LLP FOR EXTERNAL AUDITING SERVICES This document is Amendment #2 ("Amendment#2") to the Professional Services Agreement entered into between the parties on October 1, 2004 (the "Agreement", a copy of which is attached hereto as Attachment A and made a part hereof) is entered into this day of , 2007, by and between the City of Miami, a municipal corporation of the State of Florida ("City"), and Rachlin, Cohen, and Holtz, LLP, a state of Florida limited liability partnership ("Provider"). RECITALS WHEREAS, Resolution No. 04-0458, adopted July 8, 2004, authorized the City Manager to negotiate and to execute the Agreement with Provider for a three (3) year period, in an amount not to exceed $349,000 for the first year, an amount not to exceed -$370,000 for the second year, and in an -amount not to exceed $390,000 for the third year, for a total contract amount not to exceed $1,109,000; and WHEREAS, the Department of Finance required an increase for the second year only of the Agreement in an amount not to exceed $60,000 from an amount not to exceed $370,000 to $430,000 and subsequently to the total contract amount from an amount not to exceed $1,109,000 to $1,169,000, and such increase for the second year only was authorized by the City Commission by Resolution No. 06-0428, adopted July 13, 2006, due to the fact that additional time was required for an updated scope of services; and WHEREAS, accordingly, the City and Provider subsequently entered into an Amendment to the Professional Services Agreement, dated August 18, 2006t ("Amendment # 1 ", a copy of which is attached hereto as Attachment B and made a part hereof); and WHEREAS, the Department of Finance now requires an increase for the third and final year of the Agreement in an amount not to exceed $50,000 from an amount not to exceed $390,000 to $440,000 and subsequently to the total contract amount from an amount not to exceed $1,169,000 to $1,219,000, and such increase for the third and final year has been authorized by the City Commission by Resolution No. , adopted , 2007, due to the fact that additional time was and is required for field work from the Provider to perform the federal and state and single audit; to determine the receivables and deferrals for various grants not recorded on the books and records of the City at the time the audit began back in December, including amounts for FEMA, UASI Revised Draft Amendment N2-07.1329 1?-s:T4i r6-1- _3)‘), and USAR, and Community Development Funds; to determine taxes receivable and associated deferred revenues; to audit capital assets and determine correct balances to be reflected in the City's financial statements; to assist in the preparation of the City's financial statements and note disclosures, including reconciliations to client calculations, revising note disclosures, and net asset calculations; and to meet with City staff to resolve various accounting issues (collectively, the "Additional Services Update" a copy of which is attached hereto and made a part hereof as Attachment C); and WHEREAS, the Agreement requires to be amended again by this Amendment #2 and executed by the City Manager and the Provider; WHEREAS, the Provider agrees to provide the additional services as specifically described, and under the special terms, conditions, and compensation set forth in the Agreement, this Agreement #2, and Attachment"C"; and NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained in this agreement, the City and PROVIDER hereby agree to amend the Agreement by this Amendment #2 as follows: TERMS Scope of Services: Section 4 of the Agreement is hereby amended to add the following subsection: Attachment "C": The Provider agrees to provide the services outlined in Attachment C, and any other allied or related additional services, consistent with the overall scope of work to complete the External Auditing Services. Provider hereby reaffirms its representations and warranties to the City as set forth in Section 4(B) in relation to each of Attachment A to the Agreement, Attachment C to Amendment #1, and Attachment C to this Amendment #2. 2. Compensation: Section 5 of the Agreement is hereby amended to read as follows: The total amount of compensation payable by the City to Provider shall be increased for the third and final year of the Agreement by an amount not to exceed $50,000, from $390,000 to $440,000, and subsequently, to the total contract amount from $1,169,000 to $1,219,000. The total compensation is inclusive of any allowable reimbursable expenses, which are subject to the limitations provided by 112.061, Florida Statutes. The Total Compensation or Contract Amount shall be the guaranteed maximum liability of the City under the Agreement, as amended by Amendment #1 and Amendment #2, subject to satisfactory and complete performance by the Provider. The City shall have no liability to pay or reimburse any amount, fee, cost, reimbursable expense, or charge greater than the Total Compensation or Contract Amount set forth herein. The Total Compensation or Contract Amount as a guaranteed Revised Draft Amendment #2-07-1329 2 maximum amount stated in this subsection is all inclusive of every expenditure, fee, cost, reimbursable expense, or other charge by the Provider, and any agent, representative or consultant of the Provider. 3. Except as expressly amended herein, all of the terms and provisions of the Agreement and the Attachments thereto, as amended and as further amended, shall remain in operative force and effect. 4. All Attachments are part of the Agreement, as amended and as further amended, and are each deemed as being expressly incorporated by reference herein as if set forth in full in the Agreement, as amended and as further amended. The parties, acting by and through an authorized corporate officer of the Provider and the City Manager or designee, if authorized by a delegation memo from the City Manager will initial each page of all attachments to any amendments. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers duly authorized. "City" CITY OF MTAMI, a municipal corporation ATTEST: By: Priscilla A. Thompson, City Clerk Pedro G. Hernandez, City Manager ATTEST: "Provider" Rachlin, Cohen, and Holtz, LLP, a Florida limited liability partnership By: Print Name: Print Name: Title: Title: APPROVED AS TO FORM AND APPROVED AS TO INSURANCE CORRECTNESS: REQUIREMENTS: Jorge L. Ferandez LeeAnn Brehm, Risk Management City Attorney Director Revised Draft Amendment #2 -07-1329 3 Attachment A — Professional Services Agreement— to be provided upon document eatecution Revised Draft Amendment N2-07-1329 4 Attachment B- Amendment #1 to be provided upon document execution Revised Draft Amendment #2-07-1329 5