HomeMy WebLinkAboutMemo - Public Financial ManagementCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Johnny Martinez, P.E. DATE: March 5, 2012
City Manager
Kenneth Robertson
Director/ Chief Procurement Officer
FROM: Janice Larned�/�
CFO/Assistant City Manager
SUBJECT: Finding re: Professional Services
Agreement with Public Financial
Management, Inc.
BACKGROUND
On July 22, 2010, by Resolution No. R-10-0325, the City Commission authorized the City
Manager to execute a Professional Services Agreement ("PSA") with Public Financial
Management, Inc. ("PFM"), utilizing an existing City of Philadelphia Request for Qualifications
dated April 3, 2009, and subsequent agreement, as amended, for the provision of financial
services, for the office of the City Manager. The financial services consist of, but are not limited
to: providing expert advice and analysis for collective bargaining negotiations, expert testimony,
analysis of salaries, , benefits, and pensions for uniformed bargaining and non -uniformed
bargaining unit employees, preparation of materials/documentation, oral presentations, meeting
with government officials, etc.
The City Commission authorized the PSA to be effective through May 31, 2011, for an amount
not to exceed $125,000.00, with options to renew for two (2) additional one (1) year periods.
The PSA also provides for PFM to be reimbursed for all out-of-pocket expenses on an actual
cost basis, subject to PFM's submission and the City's acceptance of appropriate
documentation. However, the PSA was not routed for signature, and thus not executed. The
PSA with PFM is currently being routed for signature and approval, after the fact, retroactive to
the date of the City Commission's approval of the PSA.
During the initial term of the agreement, PFM provided financial services and incurred out-of-
pocket expenses in the amount of $169,392.00, which exceeds the authorized $125,000.00
initial contract value by $44,392.00. PFM also provided financial services at the City's request
after the expiration of the initial agreement, from June 1, 2011 through October 15, 2011. The
City compensated PFM for its services and related out-of-pocket expenses in the amount of
$65,752.00. Furthermore, because the PSA with PFM expired, and was not specifically renewed
by the City Commission, it cannot now be renewed because it expired on May 31, 2011 by its
own terms.
It is now necessary to seek proper authorization from the City Commission to ratify payments
made to PFM, in an amount not to exceed $110,144.00, for financial services and out-of-pocket
expenses incurred in excess of the initial contract amount and for the period between June 1,
2011 and October 15, 2011.
Finding Memo
Public Financial Management, Inc.
FINDING
The City Administration finds that is in the best interest of the City to authorize the City Manager
to execute a Professional Services Agreement with PFM, for an amount not to exceed
$110,144, for, quantitative and analytical financial services to the City of Miami in support of
collective bargaining, labor negotiations, and related budget issues. To accomplish this, it is
necessary to waive the competitive sealed bidding requirements set forth in the Code of the City
of Miami, as amended, pursuant to Section 18-85(a). As provided in accordance with Section
18-85(a) of the City Code, we recommend that the City Manager affirm and adopt this
memorandum as his own justification for the waiver of competitive bidding procedures and
recommendation to execute a Professional Services Agreement with PFM.
Approved:
Approved:
ny Martinez, P.E.
CManager
E>AM�J - . /jL 3/il/P -.
enneth Robe son
Chief Procurement Officer
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