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HomeMy WebLinkAboutCity of Tamarac Resolution R-93-011I CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-93-J_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TAMARAC, FLORIDA APPROVING AN AGREEMENT BETWEEN THE CITY OF TAMARAC AND MUNICIPAL ADMINISTRATIVE SERVICES TO PROVIDE PROFESSIONAL AUDITING SERVICES TO THE CITY OF TAMARAC, FLORIDA RELATIVE TO FLORIDA POWER AND LIGHTS FRANCHISE AGREEMENT; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council deems it in the best interest of the City of Tamarac to e into a Contract with Municipal Administrative Services, Inc., to provide Professional Aud Services to the City of Tamarac, Florida Relative to Florida Power and Light's Franc Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF T, FLORIDA: SECTION 1: That the appropriate City officials are hereby authorized to execute a Agreement with Municipal Administrative Services, Inc. to provide Professional Audi Services to the City of Tamarac, Florida Relative to Florida Power and Light's Franchise Agreement, a copy of the Agreement is attached hereto as "Exhibit A" and made a part hereof. $.ECTION 2:. All resolutions or parts of resolutions in conflict herewith are herebv repealed to the extent of such conflict. SrTION 3: If any clause, section, other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or application, it shall not affect the validity of the remaining portions or applications of this Resolution. SECTION 4: This Resolution shall become effective immediately upon its passage and adoption. PASSED, ADOPTED AND APPROVED this ATTEST: CAROL A. EVANS CITY CLERK I HPAEBX CERTIFY that I have ap roved this RH'SOLUTIOAI as to M. L—MITCHELL S.W CITY ATTORNEY (MAS.FPL.Audit.ms) MATUH RECORD OF COUNCIL,. VOTE MAYOR-....N0 R DISTRICT 1: QadKA DISTRICT 2., ..yAd.w�►IN DISTRICT 3: C,/M SCHRFIAF" I DIS rRICT 4: CJM ARRAAAMOkI r-P IN 5-3 - CONTRACT TO PROVIDE PROFESSIONAL AUDITING SERVICES TO THE CITY OF TAMARAC, FLORIDA RELATIVE TO FLORIDA POWER & LIGHTS FRANCHISE AGREEMENT 12 THIS CONTRACT, entered into this F day of e_,J?<<4 Nf ,199�and effective immediately, by and between Municipal Administrative Services, Inc. (hereinafter referred to as the "Consultant") and City of Tamarac, a Municipal Corporation organized under the laws of the State of Florida (hereinafter referred to as the "City"), WITNESSETH THAT: WHEREAS, the City receives certain utility tax and franchise fee revenue from utilities conducting operations within the City; and, WHEREAS, the. City following sound management practices desires to review the correctness of the revenues as paid to it; and, WHEREAS, the Consultant is staffed with personnel knowledgeable and experienced in the requirements of developing and conducting such reviews; and, WHEREAS, the City desires to engage the Consultant to conduct reviews to ensure fair and reasonable payment of amounts due by said utilities. NOW THEREFORE, the parties hereto mutually agree as follows: 1. Employment of Consultant. The city agrees to engage the Consultant and the Consultant hereby agrees to perform the following services. 2. Sco a of Services. The Consultant shall do, perform and carry out in a good and professional manner the following services: Conduct a review and analysis of the payments to the City of franchise fees and utility taxes by Florida Power & Light. Such reviews will be conducted pursuant to the scope of work and work plan as specified in Exhibit A, attached hereto and incorporated herein. Work outlined in the attachment will only be undertaken following receipt of this signed contract. 3. Time of Pert rmance. The services to be performed hereunder by the Consultant shall be undertaken and completed in such sequence as to assure their expeditious completion and best carry out the purposes of the agreement. The project will be started within 10 days of notice to proceed and the report required delivered not later than 60 days from the actual start date, bearing exigencies beyond the control of MAS. �C-93- l� 4. Compensation. The City agrees to pay the Consultant as outlined in item 10 "Payment for Services." 5. Changes. The City representative may, from time to time, require changes in the scope of the services of the Consultant to be performed hereunder. Such changes which are mutually agreed upon by and between the City and the consultant, shall be incorporated in written amendment to this agreement. Any changes in the scope of work as outlined in the Attachment shall be billed at MAS's standard hourly rate. 5.1 Independent Contractor. The relationship of the Contractor to the City shall be that of an independent contractor, and no principal - agent or employer -employee relationship between the parties is created by this Contract. By entering into this Contract with the City, Contractor acknowledges that it will, in the performance of its duties and under this Contract, be acting as an independent contractor and that no officer, agent or employee of the Contractor will be for any purpose an employee of the City and that no officer, agent or employee of the Contractor is entitled to any of the benefits and privileges of a City employee or officer under any provision of the statutes of the State of Florida and ordinances of the City. 5.2 Non -waiver of Powers of -Regulations. This Contract shall not be taken or held to imply the relinquishment or waiver by the City of its power to make other reasonable requirements or regulations pertaining to the subject matter hereof, and the City hereby expressly reserves the right to make all regulations which may be necessary or proper to secure the safety, welfare and accommodation of the public. Further, nothing herein contained shall constitute a waiver of any of the requirements of the rules and regulations heretofore adopted by the City, including the right to make such changes and amendments to said rules and regulations as said City may deem to be advisable and necessary to protect the public health and general welfare of its inhabitants. E Services and Materials to locally furnish the Consultant be with allavastl�hed by„tf�e City. The City shall able necessary information, data, and material pertinent to the execution of this agreement. The City shall cooperate with the consultant in carrying out the work herein and shall provide adequate staff for liaison with the Consultant. 7. Termination of a regment . The city shall have the right to terminate this agreement by giving written notice to the Consultant of such termination and specifying the effective date thereof. The Consultant shall be entitled to payment for services rendered to and accepted by the City through the effective date of the termination. Pq 0 8. Insurance 8.1 General The Contractor shall not commence work under this Contract until it has obtained all the insurance required under this Contract. Contractor shall be responsible for delivering to the City the Certificate of Insurance. Contractor shall name the City of Tamarac as an additional insured on the Certificate of Insurance. All insurance policies shall be issued by companies duly licensed to write business insurance policies in the State of Florida and rated -A- or better by A.M. Best Key Rating Guide. Further, the City shall be named as an additional insured on all insurance policies (except Workers's Compensation). Insurance coverage specified herein constitutes the minimum requirements and said requirements shall in no way lessen or limit the liability of the Contractor under the terms of this Contract. The Contractor shall procure and maintain, at its own cost and expense, any additional kinds and amounts of insurance that, in its own judgement, may be necessary for proper protection in the prosecution of its work. 8.2 Compensation Insurance The Contractor shall maintain, during the term of this Contract and any renewals, Workers' Compensation Insurance on all of its employees to be engaged in work under this Contract, and shall require the same from any subcontractors used. In the event that any class of employees engaged in hazardous work pursuant to this Contract is not protected under the Workers' Compensation Statute, the Contractor shall provide adequate employer's general liability insurance for the protection of employees not so protected. 8.3 Comprehensive General Liabil _ity Insurance The Contractor shall procure and shall maintain during the term of this Contract and any renewals Public Liability and Property Damage Insurance in an amount not less than $1,000,000 combined single limit coverage for bodily injury, death and property damage (except automobile). 8.4 Automobile Insurance The Contractor shall procure and maintain, during the term of this Contract and any renewals, Comprehensive Automobile Liability Insurance in an amount not less that $1,000,000 combined single limit coverage for bodily injury, death, and property damage (automobile). 8.5 Excess Umbrella Liability - The Contractor shall procure and maintain, during the term of this Contract and any renewals, Excess Umbrella Liability Insurance in an amount not less than $1,000,000 coverage in excess of Automobile and Bodily Injury/Property Damage coverages. 3 8.6 Scope of Insurance The insurance required under the above paragraphs shall provide adequate protection for the Contractor against damage claims which may arise from operations under this Contract, whether such operations be by the insured or by anyone directly or indirectly employed by the insured. The City shall be named as an insured on all of Contractor's insurance policies provided for herein. 8.7 INSURANCE OF THE CONSULTANT PRIMARY. The Consultant's required coverage shall be considered primary, and all other insurance shall be considered as excess, over and above the Consultant's coverage. The Consultant's policies of coverage will be considered primary as relates to all provisions of the Contract. 8.8 LOSS CONTROL -AND SAFETY. The Consultant shall retain control over its employees, agents, servants and subcontractors, as well as control over its invitees, and its activities on and about the subject premises and the manner in which such activities shall be undertaken and to that end, the Consultant shall not be deemed to be an agent of the City. Precaution shall be exercised at all times by the Consultant for the protection of all persons, including employees, and property. The Consultant shall make special effort to detect hazards and shall take prompt action where loss control/safety measures should reasonably be expected. 8.9 HOLD HARMLESS. The Consultant shall hold harmless, indemnify the City of Tamarac its subsidiaries or affiliates, elected and appointed officials, employees, volunteers, representatives and agents from any and all claims, suits, actions, damages liability and expenses in connection with copyright violations, trade secrets, loss of life, bodily or personal injury, or property damage, including loss or use thereof, directly or indirectly caused by, resulting from, arising out of or occurring in connection with the performance of this Contract, whether arising solely out of the negligence of the Consultant or not. The Consultant's obligation shall not be limited by, or in any way to, any insurance coverage or by any provision in or exclusion or omission from any policy of insurance. 9. Information and _Reports. The Consultant shall, at such time and in such form as the city may require, furnish such periodic reports concerning the status of the project, such statements, certificates, approvals and copies of proposed and executed plans and claims and other information relative to the project as may be requested by the City. 10. A) Payment_ for ,Services. Work for this specific project shall be performed on a contingency basis. MAS shall receive as compensation for their work under this agreement (33 1/3%) of- monies recovered and 4 received in hand by the City, based on the final report of MAS, as to the amount owed and recoverable to the City of Tamarac at the time of the MAS final report. The City shall have no obligation to MAS for future recovery based on the findings of MAS, unless the City enters into an agreement to forgive past due amounts. If the City forgives past due amounts the City will pay MAS a prorata share of future recovery not to exceed the amount due pursuant to the previous paragraph. Travel costs will be billed as a separate item .not to exceed $ 2,500, and include airline, hotel, meals, rental car etc. Itemized bills will be provided to the City upon request and shall be subject to the approval of the City Manager. B) It is further agreed and understood that the City will diligently pursue the collection of any and all monies found due to the City as a result of underpayment, error or omission on the part of the utility audited, reviewed, examined or analyzed. Findings include nonpayments, underpayments or any other omissions. Recovery may take the form of cash payments, installment payments or any other compensation directly benefiting the City. 10 The City may elect to pursue collection or may delegate collection authority to MAS or its assigns as agents of the City for no additional fees or costs. Should the City elect not to pursue the findings or elects not to delegate collection authority as indicated herein, then MAS will be compensated for work done on the basis of hours worked at the MAS standard hourly rate as set forth in the MAS rate schedule (See Attachment B, attached and incorporated herein). C) The maximum out-of-pocket cost billed to the City for MAS services as specified in the Agreement is Two Thousand Five Hundred dollars and no/100 ($2,500.00). MAS will conduct an audit of Florida Power and Light and if after the audit is complete it is found that Florida Power and Light owes money to the City, the City in its sole discretion my delegate authority to MAS to pursue collection. Once the City delegates authority to MAS to pursue collection, the City shall have no further obligation to MAS other than MAS's right to retain 33 1 /3% of monies received in the event of recovery. Further MAS shall forward to the City 66 2/3% of monies received from Florida Power and Light within five (5) days of receipt by MAS of the recovered monies. R E 0 11. Notices. Any notices, bills, invoices, or reports required by this agreement shall be sufficient if sent by the parties in the United States mail, postage paid returned receipt requested, to the addresses noted below: John P. Kelly City Manager City of Tamarac 7525 N.W. 88th Avenue Tamarac, Florida 33321-2401 cc: H. L. Bender, Mayor Mitchell S. Kraft, City Attorney Mr. George T. White President, Municipal Administrative Services, Inc. 10103 Fondren, Suite 350 Houston, Texas 77096 (713) 541-5457 12. This agreement shall be governed by and construed in accordance with the laws of the State of Florida. Venue shall be Broward County. IN WITNESS WHEREOF, the City and the Consultant have executed this agreement as of the date first written above. ATTEST: CITY OF TpIIARAC, FLORIDA City Clerk APPROVED AS TO FORM: Attorney CITY OF TAMARAC APPROVED AT MEETING OF I - p7 7 - 9 -5 • %& ct rac 1.1 M M Cyty Manager MUNICIPAL A MINISTRATIVE SERVICES, I BY: Geor ite resi nt ATTEST - 'Corporate Secretary Y Y JL1 : 0 PHI -A 1E 11,;. : T 1 E--,41 t, IZ- ..4w ® D t� MVNIC4rwL AOMuwSIASTIVt SLAvICES, INC February 3, 1993 Mr. Mitchell Kraft City Attorney 7525 Northwest 88th Avenue Tamarac, Florida 33321-2401 Dear Mr. Kraft: Fri�.Cl_ The revised Attachment A as prepared by your office and telefaxed to us on January 22, 1993 is acceptable as a replacement for the previous (2)two Attachment A(s) submitted. - A. Scope of Work A. Work Plan 1 hese Two Attachments have been combined into a single document with the approval of MAS. Sincerely, Guy R. Rankin Vice President i4' 10 F~1;CIRFIN - Uil c h 0L0 - I iOIJ�'1'� 1�, Tk i '•i. 77; r. . �7t3) zl•11 1 . f AY (i1.51 , _ ATTACHMENT A MAS proposes to conduct franchise foe reviews of Florida Power and I_IQht Clec:trit; Company for the City of Tamarac. The benefits which may be realized by the City as a r®cult of the review, include potential revenue recoveries for past periods L-anc.l future; savings for the remaining term of tho agrooments. The reviews to be conducted by MAS Shall determine If any underpaid or unpaid amounts are due and shall include verification of the activities described below. MAS Stall provide the City with a draft and final report which will outline the review work performed, explain the review findings, and provide recommendations for the improvement of future franc; iisE; foes reporting and compliances efforts, the report will also identify monios due to tiles City, and future benefits, if any, MAS will review the most current year (i.e, 1902) with an option to expand the review to include 2 subsequent years, based on the results found in thc� curl bljt year rr~vit;w. Audit activities will enSura that appropriate fees were pald to me City through verification of the following: 1. Anal sls of Clfkl we.— Hues from fr• attchlse fees. MAS will reviews and analyze, 1i7e revenue accounts and deter y1ine whether the proper ducuunts werrw included in thf) tax base reported to the City by Florida power and Light, A summary of reven;if+ accounts wrongfully excluded from the tax base will be pruvidc u to the City. 2. Examination of method n r customers nd t rminatlon of ro r1e pt Cui timer �i d�� tion coctlr�©p The customer coding portion of this compliance review is very significant. fn some cities the major industrial and commercial entities suctr as factories, sl rupiairrg malls, and airports which are technlcally II)slde the Cl ly I-) as factplay have ho iirre5 ity drawn across the streets and around the site which could result in these entitiQ5 being excluded from the calculation. MAS will analyze and correltate City demographics to the growtir pattern, of the City of Tamarac {i.e., annexation, Issuance of ordinances category residential, commercial, industrial and other externa s fautorythat growth exist) which tend to elther enhance or- erode tl7e fi ancltise fee ruvenuu lease. S• p0 wrt t pIn In �$. MAS has beet, involved with monitoring and resuarchlr►g franchise issues for several years and ties developed � wealth Of irrforrtlstiun ar rct expertise In this speGializod area. MAS will evaluate tl rp existing and past Tamarac records and records of I`ioric.iF.A Power & Light relating to the franchise I1cilders and review CUI I OSPondt;n(&' ig . recoids, and any other documentation portaining to the existing franchise fee agreement with Florida Power & Light. MAS will provide the City with a detailed report on tho final findinge from the Audit. MAS will revlew all payments to this City by Florida Power & Light for tho appkable periods and provide the City with a narrative description, and u revenue trond analysis, 4. 1n:RjLrs2n, formal .prgbentatlon. MAS will visit the City of 'Tamarac to formally present the audit findings to the City one time as part of the servico under this agreement. Unless for reasons beyond the control of MAS, servicos shall be completsd Within 90 days from receipt of the signed contract. YQRK PLAN In order to complete to franchise fee & utility service tax reviow in an organized and timely manner, it i$ iinportant to Identify the work and develop a detailed schodu10 to cornplote the tasks. Following it; a typical franchise fee+ or utility tax review wort: plan: Task I - Pronaratinn of Audit Plan 01 An audit plan will be prepared which sets out all ste s t p o be i0llov,red ciurirrj th6 audit Pi Ocess including the following: • A tir nritable full- the comlaletion of the audit work • Notification to the company • Pre -audit meeting with company representatives • Site audit and collection of information • Processing of collected data TaSk 11 - Notification to UtliltyZPretlminar RerqP+est for Informati_qn.. The following is a specific checklist of the City's information 110odod for the roview; • A detailed map Of the City of Tarnarac. Irl Ordef to verify that the) franchisr.ers customers are correctly coded as being within the City, to nr�ala r,lr,<<rly depir;tir7 r.;ty and county boul)dades and all city and county streets vvill be required. • The franchise fee afid utility tax pAyrnents received from each company for illo yu,rarL. to Ue cover"ed by the audit and any supporting docurnontotion ti-,e col),p zrry list. provided with each payment. 3 0 WORK PLAN CONTINUED • A copy of the franchise ordinance and tax code for each company to be audited, and any addendum or amendments thereto. • A list of names, addrecs©w and telephone numbers of persons to contact for C:uCh ct the companies to be audited, • Pertinent City Charter provisions, If any, regarding the granting of frcancllisos. Trlo company will be notified in writing of the City's Intent to conduct the audit, advised of the date and time of the audit and requested to produce preliminary Information, Tagk n-ii = kilt..AudIt • The on -site audit portion of the franchise review may tajkc two - five dAys (on -sac space may be requirod). Assistance from the City Finance staff may be required. The auditor will perform all preliminary work prior to the; on site (audit. The MAS auditor will meet with ea doslgntated utility company r0Pre30ntative on the day of the on -site audit and deter' line tale work to be pee fur e71ud. • Tat3k V - Prg�� Wit$ Revenue and other data ol)tained from tilt; utility con,1par-ry v�-ill Qej ecr ally be I,rU.;e,I'll and analyzed in the auditor's offi(;e,5. Computer Generated Schedules The revenue data received from the company will be used to prepare a Ct7rrtPutw generated schedule that will be Included In the audit report. This scj)edule will i!{ust- tt, all revenuer earned by the City for each month of the audit period, This sc:hedulr� drill a t-I show the computation of the franchise fee and utility tax payment based on the pfc)per revenue base, the actual payment rnade to the city, and any r�;sultfng ur rci r ur overpayment. Other computer generated schedU1es cun•tmonly used in tilt; Fluent report will sll()vv tyet.�ll of any accounts miscoddd and a reconciling summary of any audit findings. C)tr-jtyr schedules may be used by tho auditor, to I-julp clarify any additional audit flndingy.. 0 WORK PLAN CONTINUED WrIPRRARglAo 10r I,nformatlon Inquiries regarding information provided by the utility company will by made ir1 ,%.rit!ri j, For example, the utility company's record may show an unusually largo bad dobt write off during a certain year. Requests for explanations and tho corresponding rosponsos Should be In writing. However, if time is a problem, a verbal responso may 130 obtolnoa i and documented with the date, time and nramo of parson responding. Tiii>ll documentation will be kept 03 part of tho Audit workpaspers. Task V « Flnal Audit Report After all the information has been procossod, MAC , will summarize the audit findings reflected in the audit workpapers, The summarization will include all revenue findings and also recommendations for improving the company's method of ac;countinp for friinchisu OF utility s6rviCe fads. All findings Set out ill the sumrnarizatiolj will be fully d am; -err �r1ie,; and fully supported by the auditors workpapers. CITY OF TAMARAC AUDIT PROPOSAL TIME TABLE OF MAJOR EVENTS • Ll Professional Staff Administrative Staff Clerical Support 0 ATTACHMENT B RATE SCHEDULE January 11, 1993 $ 95.00 per hour 45.00 per hour 25.00 per hour