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2011-040-1433 - Addendum to the Agreement with Harvey, Covington & Thomas LLC City of Miami Gardens Agenda Cover Memo Council Meeting Date: March 9, 2010 Item Type: (Enter X in box) Resolution Ordinance Other X Fiscal Impact: (Enter X in box) Yes No Ordinance Reading: (Enter X in box) 1st Reading 2nd Reading X Public Hearing: (Enter X in box) Yes No Yes No X Funding Source: General Fund Advertising Requirement: (Enter X in box) Yes No X Contract/P.O. Required: (Enter X in box) Yes No RFP/RFQ/Bid #: X (Enter #) Strategic Plan Related (Enter X in box) Yes No Strategic Plan Priority Area: Enhance Organizational Bus. & Economic Dev Public Safety Quality of Education Qual. of Life & City Image Communication Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address) N/A X Sponsor Name City Manager Department: Finance Short Title: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE AND ATTEST RESPECTIVELY, AN ADDENDUM TO THAT CERTAIN AGREEMENT WITH HARVEY, COVINGTON & THOMAS, L.L.C., TO PROVIDE FISCAL YEAR 2011 & 2012 ANNUAL FINANCIAL AUDITING SERVICES IN AN AMOUNT NOT TO EXCEED SIXTY-ONE THOUSAND FIVE HUNDRED DOLLARS ($61,500.00), AND A GENERAL OBLIGATION BOND AUDIT IN AN AMOUNT NOT TO EXCEED SEVEN THOUSAND FIVE HUNDRED DOLLARS ($7,500.00); PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING AN EFFECTIVE DATE. Staff Summary: In May 2008, the Council selected Harvey, Convington & Thomas, LLC as the City’s external auditor to perform annual auditing services according to Florida Statute 218.39 for fiscal year 2008, 2009 and 2010. ITEM K-1) CONSENT AGENDA RESOLUTION Agreement w/Harvey, Covington & Thomas, LLC 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 The agreement also allows the City to renew the agreement for a period of two years under the same terms and conditions. For fiscal year 2011, the City is required to implement GASB Statement 54 “Fund Balance Reporting and Governmental Fund Type Definitions”. Staff believes that the current auditor who is familiar with the City’s financials can assist staff in this implementation and as such recommends to extend the engagement of Harvey, Convington & Thomas, LLC for two years with the stipulation that the same audit staff and director be assigned to the City. Harvey, Convington & Thomas, LLC has to inform the City immediately of any staff changes and will present the City’s the new staff on the engagement their education and experience. Should the City feel uncomfortable with the staff assigned, the City has the right to terminate the extension. The fee charged by the auditing firm for FY 2010 audit is $61,500 for the annual audit, and $7,500 for the General Obligation Bond single audit required by the County. Harvey, Convington & Thomas, LLC will perform the audit for FY 2011, and FY 2012 for the same fees as set forth in FY 2010. Proposed Action: It is recommended that Council approve the extension of two year engagement with Harvey Convington & Thomas to perform the City’s FY 2011 and FY 2012 annual audit. Attachment: Attached A: Addendum to the agreement ADDENDUM TO CONTRACT FOR PROFESSIONAL AUDITOR SERVICES THIS ADDENDUM (“Addendum”) is incorporated into that Agreement between the City of Miami Gardens (“City”) and Harvey Covington & Thomas, LLC (“Harvey Covington & Thomas”). WITNESSETH 1. Article 4 Compensation is hereby amended to add the following language to the first paragraph: For all Services provided by Auditor, the City shall pay Auditor $57,500.00 for all-inclusive maximum price for 2008 audit; $59,500.00 for 2009 audit; $61,500.00 for 2010, 2011 and 2012 audits pending budget approval. The fee for the general obligation bond single audit shall be $7,500.00. All invoices for fees and compensation shall be submitted in sufficient detail to demonstrate compliance with the terms of this Agreement, and shall include a detailed explanation of all fees and charges. 2. Article 9 Term shall be amended as follows: This Agreement shall become effective upon execution by both parties and shall continue in force for a two year period through the completion, acceptance and presentation to City Council of 2010 2012 fiscal year audit, unless sooner terminated as provided herein. The City shall have the option to renew this Agreement for a period of two years upon the same terms and conditions contained herein upon 90 days written notice to Auditor. Thereafter, any renewal shall be in writing and executed by both parties. 3. STAFF. AUDITOR agrees to utilize the same staff as in FY 2010 to work on the City of Miami Gardens FY 2011 and 2012 audits. Any proposed staff changes by AUDITOR must be approved by the City, and if the City does not agree with the staff change, the City shall have the right to immediately terminate this Agreement. 4. INCONSISTENCY. In the event of an inconsistency or contradiction between the terms hereof and the terms of the Agreement, to which this Addendum is attached, the terms hereof shall control. 5. CONFLICT: In the event of any conflicts between this Addendum and the Agreement, this Addendum shall control. In all other respects, the Agreement shall remain in full force and effect. Page 1 of 2 Page 2 of 2 6. EFFECT OF ORIGINAL AGREEMENT. All terms of the Agreement not affected by this Addendum shall remain in full force and effect. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year set forth below their respective signatures. ATTEST: CITY OF MIAMI GARDENS ___________________________________ ____________________________________ City Clerk Dr. Danny Crew, City Manager Ronetta Taylor, MMC Date: ______________________ _________ WITNESS: HARVEY, COVINGTON, THOMAS, LLC __________________________________ By: _____________________ ___________ Print Name __________________________________ Print Name: _________________________ Approved as to form and legal Sufficiency: ___________________________________ Sonja K. Dickens, City Attorney