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Res No 013-25-16305RESOLUTION NO.013-25-16305 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA,ESTABLISHING AN AUDITOR SELECTION COMMITTEE TO ASSIST IN THE PROCUREMENT OF A CERTIFIED PUBLIC ACCOUNTING FIRM PURSUANT TO SECTION 218.391,FLORIDA STATUTES;APPOINTING COMMITTEE MEMBERS;PROVIDING FOR IMPLEMENTATION,CORRECTIONS,AND AN EFFECTIVE DATE. WHEREAS,the City of South Miami (the “City”)desires to issue a request for proposals (“RFP”)to obtain proposals from certified public accounting firms (“Respondents”)for the City’s annual financial audit required pursuant to Section 218.39,Florida Statutes,single audits,and such other financial auditing services as may be needed by the City (the “Services”);and WHEREAS,pursuant to Section 218.391(2),Florida Statutes,the City Commission is required to establish an auditor selection committee (the “Committee”)to evaluate proposals received from Respondents in response to an RFP for the Services;and WHEREAS,the Committee must consist of at least three (3)members,including one member of the City Commission that will serve as the Committee chair;and WHEREAS,Section 218.391(2)(c),Florida Statutes,provides that an employee,chief executive officer,or chief financial officer of the City may not serve as a member of the Committee;however,the City Commission may designate a City employee to serve in an advisory capacity to the Committee;and WHEREAS,the City Commission desires to establish the Committee consisting of three (3)members,appoint Committee members,and designate the following individuals as Committee members:(1)Commissioner Steve Calle,as the Chair/Commission member (2)Justin Puente,and (3)Jaime L.Parlade;and WHEREAS,the City Commission finds that this Resolution is in the best interest and welfare of the City. NOW,THEREFORE,BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA,AS FOLLOWS: Section 1.Recitals.The above-stated recitals are true and correct and are incorporated herein by this reference. Section 2.Committee Established.The City Commission hereby establishes the Committee pursuant to Section 218.391,Florida Statutes.The Committee shall have the primary purpose of assisting the City Commission in selecting a certified public accounting firm to conduct the City’s annual financial audit required pursuant to Section 218.39,Florida Statutes,single audits,and such other financial auditing services as may be needed by the City in accordance with Section 218.391,Florida Statutes. Page 1 of 2 Res.No.013-25-16305 Section 3.Appointment.The City Commission hereby appoints the following individuals to the Committee: 1 .Committee Member No.1/Chair:Commissioner Steve Calle 2.Committee Member No.2:Justin Puente 3.Committee Member No.3:Jaime L.Parlade The City Commission hereby further designates the City’s Chief Financial Officer,Alfredo Riverol,to serve in an advisory capacity to the Committee. Section 4.Dissolution.The Committee shall exist until it completes its evaluation of RFP responses and ranks and recommends,in order of preference,the most highly qualified Respondent(s)to perform the Services;provided,however,that the City Commission may,by an affirmative motion or resolution,extend or dissolve the term of the Committee. Section 5.Implementation.The City Manager is authorized to take any and all actions necessary to implement the purposes of this Resolution. Section 6.Col l ections.Conforming language or technical scrivener-type corrections may be made by the City Attorney for any conforming amendments to be incorporated into the final resolution for signature. Section 7.Effective Date.This Resolution shall become effective immediately upon adoption. PASSED AND ADOPTED this 4th day of February,2025. ATTEST:citJ^^riM READ AND APPROVED AS TO FORM, LANGUAGE,LEGALITY AND EXECUTION THEREOF W^SEROTA I^feLFMAN COLE &BIERMAN,P.L. CITY ATTORNEY APPROVED: CIT^MAYOR^^ COMMISSION VOTE:5-0 Mayor Javier Fernandez:Yea Vice Mayor Brian Corey:Yea Commissioner Lisa Bonich:Yea Commissioner Steve Calle:Yea Commissioner Danny Rodriguez:Yea Page 2 of 2 Agenda Item No:4. City Commission Agenda Item Report Meeting Date: February 4, 2025 Submitted by: Nkenga Payne Submitting Department: City Clerk Item Type: Resolution Agenda Section: Subject: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, ESTABLISHING AN AUDITOR SELECTION COMMITTEE TO ASSIST IN THE PROCUREMENT OF A CERTIFIED PUBLIC ACCOUNTING FIRM PURSUANT TO SECTION 218.391, FLORIDA STATUTES; APPOINTING COMMITTEE MEMBERS; PROVIDING FOR IMPLEMENTATION, CORRECTIONS, AND AN EFFECTIVE DATE. 3/5 (CITY CLERK/FINANCE DEPT.) Suggested Action: Attachments: Memo - Audit Committee Selection.docx 4AF8896-Reso Establishing Auditor Selection Committee CAv2.docx FL Statute Section 218.391.pdf 1 CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM TO:The Honorable Mayor, Vice Mayor, and Members of the City Commission FROM:Genaro “Chip” Iglesias,City Manager DATE:February 4, 2025 SUBJECT:Audit Selection Committee Appointment and Compliance with Florida Statute 218.391 Recommendation: It is recommended that the City Commission appoint a minimum of three members to the Audit Selection Committee, ensuring compliance with Florida Statute.Additionally, the committee requires, and will benefit,from the inclusion of an elected City Commission member, fulfilling the statutory requirements and maintaining the integrity of the selection process for the City’s new external auditing firm. BACKGROUND: In accordance with the requirements of Florida Statutes, the City is obligated to form an Audit Selection Committee to recommend the appointment of an external independent auditing firm. Florida Statutes stipulate that the committee must include at least one elected official from the City Commission. The City of South Miami must adhere to this requirement, and it is necessary for the City commission to appoint individuals who will fulfill the duties of this committee. Additionally, per the City Charter, the City has a maximum 6-year engagement term for the external auditing firm. Caballero Fierman Llerena & Garcia LLP has completed its 6-year engagement, and as such, the City is required to select a new external auditor, in compliance with this term limitation. To meet the requirements for forming the Audit Selection Committee, the City has identified qualified individuals to serve on this committee. Both Mr. Justin Punte and Mr. Jaime L. Parlade are well-suited for this role, given their backgrounds in public accounting and their service on various City boards. Justin Puente:A City resident and former member of the Budget and Finance Committee, Mr. Punte currently serves on the City’s General Employees and Police Pension boards. His extensive experience in public accounting and local government finance makes him a valuable candidate for the Audit Selection Committee. 2 $South ’Miami THE CITY OF PLEASANT LIVING CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM Jaime L. Parlade: A former member of the City’s Pension Board, Mr. Parlade brings a wealth of experience from his career in public accounting and his deep understanding of the City’s financial operations, further ensuring the committee’s expertise. Both individuals have demonstrated a strong commitment to the City's fiscal health and governance and are highly qualified to serve on the Audit Selection Committee should they be requested and appointed to serve. 3 South'*’Miami THE CITY OF PLEASANT LIVING 7 1/29/25,4:46 PM Statutes &Constitution :View Statutes :Online Sunshine Select Year:2024 v Go The 2024 Florida Statutes Title XIV Chapter 218 View Entire TAXATION AND FINANCIAL MATTERS PERTAINING TO POLITICAL Chapter FINANCE SUBDIVISIONS 218.391 Auditor selection procedures.- (1 )Each local governmental entity,district school board,charter school,or charter technical career center, prior to entering into a written contract pursuant to subsection (7),except as provided in subsection (8),shall use auditor selection procedures when selecting an auditor to conduct the annual financial audit required in s.218.39. (2)The governing body of a county,municipality,special district,district school board,charter school,or charter technical career center shall establish an auditor selection committee. (a)The auditor selection committee for a county must,at a minimum,consist of each of the county officers elected pursuant to the county charter or s.1(d),Art.VIII of the State Constitution or their respective designees and one member of the board of county commissioners or its designee. (b)The auditor selection committee for a municipality,special district,district school board,charter school,or charter technical career center must consist of at least three members.One member of the auditor selection committee must be a member of the governing body of an entity specified in this paragraph,who shall serve as the chair of the committee. (c)An employee,a chief executive officer,or a chief financial officer of the county,municipality,special district,district school board,charter school,or charter technical career center may not serve as a member of an auditor selection committee established under this subsection;however,an employee,a chief executive officer,or a chief financial officer of the county,municipality,special district,district school board,charter school,or charter technical career center may serve in an advisory capacity. (d)The primary purpose of the auditor selection committee is to assist the governing body in selecting an auditor to conduct the annual financial audit required in s.218.39;however,the committee may serve other audit oversight purposes as determined by the entity’s governing body.The public may not be excluded from the proceedings under this section. (3)The auditor selection committee shall: (a)Establish factors to use for the evaluation of audit services to be provided by a certified public accounting firm duly licensed under chapter 473 and qualified to conduct audits in accordance with government auditing standards as adopted by the Florida Board of Accountancy.Such factors shall include,but are not limited to,ability of personnel,experience,ability to furnish the required services,and such other factors as may be determined by the committee to be applicable to its particular requirements. (b)Publicly announce requests for proposals.Public announcements must include,at a minimum,a brief description of the audit and indicate how interested firms can apply for consideration. (c)Provide interested firms with a request for proposal.The request for proposal shall include information on how proposals are to be evaluated and such other information the committee determines is necessary for the firm to prepare a proposal. (d)Evaluate proposals provided by qualified firms.If compensation is one of the factors established pursuant to paragraph (a),it shall not be the sole or predominant factor used to evaluate proposals. (e)Rank and recommend in order of preference no fewer than three firms deemed to be the most highly qualified to perform the required services after considering the factors established pursuant to paragraph (a).If www.leg.state.fi.us/statutes/index.cfm?mode=View Statutes&SubMenu=1&App_mode=Display_Statute&Search_String=218.391&URL=0200-0299/02...1/2 8 1/29/25,4:46 PM Statutes &Constitution :View Statutes :Online Sunshine fewer than three firms respond to the request for proposal,the committee shall recommend such firms as it deems to be the most highly qualified. (4)The governing body shall inquire of qualified firms as to the basis of compensation,select one of the firms recommended by the auditor selection committee,and negotiate a contract,using one of the following methods: (a)If compensation is not one of the factors established pursuant to paragraph (3)(a)and not used to evaluate firms pursuant to paragraph (3)(e),the governing body shall negotiate a contract with the firm ranked first.If the governing body is unable to negotiate a satisfactory contract with that firm,negotiations with that firm shall be formally terminated,and the governing body shall then undertake negotiations with the second-ranked firm.Failing accord with the second-ranked firm,negotiations shall then be terminated with that firm and undertaken with the third-ranked firm.Negotiations with the other ranked firms shall be undertaken in the same manner.The governing body,in negotiating with firms,may reopen formal negotiations with any one of the three top-ranked firms,but it may not negotiate with more than one firm at a time. (b)If compensation is one of the factors established pursuant to paragraph (3)(a)and used in the evaluation of proposals pursuant to paragraph (3)(d),the governing body shall select the highest-ranked qualified firm or must document in its public records the reason for not selecting the highest-ranked qualified firm. (c)The governing body may select a firm recommended by the audit committee and negotiate a contract with one of the recommended firms using an appropriate alternative negotiation method for which compensation is not the sole or predominant factor used to select the firm. (d)In negotiations with firms under this section,the governing body may allow a designee to conduct negotiations on its behalf. (5)The method used by the governing body to select a firm recommended by the audit committee and negotiate a contract with such firm must ensure that the agreed-upon compensation is reasonable to satisfy the requirements of s.218.39 and the needs of the governing body. (6)If the governing body is unable to negotiate a satisfactory contract with any of the recommended firms,the committee shall recommend additional firms,and negotiations shall continue in accordance with this section until an agreement is reached. (7)Every procurement of audit services shall be evidenced by a written contract embodying all provisions and conditions of the procurement of such services.For purposes of this section,an engagement letter signed and executed by both parties shall constitute a written contract.The written contract shall,at a minimum,include the following: (a)A provision specifying the services to be provided and fees or other compensation for such services. (b)A provision requiring that invoices for fees or other compensation be submitted in sufficient detail to demonstrate compliance with the terms of the contract. (c)A provision specifying the contract period,including renewals,and conditions under which the contract may be terminated or renewed. (8)Written contracts entered into pursuant to subsection (7)may be renewed.Such renewals may be done without the use of the auditor selection procedures provided in this section.Renewal of a contract shall be in writing. (9)If the entity fails to select the auditor in accordance with the requirements of subsections (3)-(6),the entity must again perform the auditor selection process in accordance with this section to select an auditor to conduct audits for subsequent fiscal years. History.—s.65,ch.2001-266;s.1,ch.2005-32;s.15,ch.2019-15. Copyright ©1995-2025 The Florida Legislature •Privacy Statement •Contact Us www.leg.state.fi.us/statutes/index.cfm?mode=View Statutes&SubMenu=1&App_mode=Display_Statute&Search_String=218.391&URL=0200-0299/02...2/2