Item C29
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: May 16,2001
Division:
Management Services
Bulk Item: Yes X
No
Department: Administrative Services
AGENDA ITEM WORDING:
Approval of contract with KPMG Peat Marwick to update the Fiscal Year 2001 Full Cost Allocation
Plan and the OMB A-87 Cost Allocation Plan.
ITEM BACKGROUND:
Full cost allocation reduces ad valorem taxes by recovering indirect costs from non-ad valorem
revenue funds and corrects for indirect cost subsidy to special taxing districts.
PREVIOUS REVELANT BOCC ACTION:
The BOCC approved implementation of full cost allocation in stages beginning with Fiscal Year 1998.
Each year this plan is updated and adjusted to changing organizational and accounting needs.
CONTRACT/AGREEMENT CHANGES:
The cost of this contract has increased by $2,000 since our last contract. The payment terms have been
changed to allow 50% of the fee to be paid after the initiation of fieldwork.
STAFF RECOMMENDATIONS:
Approval.
TOTAL COST:
$11,500
BUDGETED: Yes X
No
COST TO COUNTY:
$11,500
REVENUE PRODUCING: Yes
No
AMOUNT PER MONTH
Year
APPROVED BY: County Atty _ OMBiPurchasing l Risk Management _
DIVISION DIRECTOR APPROVAL:
~2Q
~--~ D.:::c-
James L. Roberts
DOCUMENTATION:
Included
To Follow X
Not Required_
DISPOSITION:
AGENDA ITEM #L~q
Revised 2/27/01
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract #
Effective Date: May 16, 2001
Expiration Date:
To update the Fiscal Year 2001 OMB A-87 and full cost
Contract with: KPMG
Contract Purpose/Description:
allocation plan.
Contract Manager:Jennifer Hill
(Name)
4444
(Ext. )
Administrative Services
(Department)
for BOCC meeting on May 16, 2001
Agenda Deadline: May 2, 2001
CONTRACT COSTS
Total Dollar Value of Contract: $11,500.00 Current Year Portion: $11,500.00
Budgeted? Yes~ No 0 Account Codes: 001-06001-530340-_
Grant: $
County Match: $
ADDITIONAL COSTS
Estimated Ongoing Costs: $ _/yr For:
(Not included in dollar value above) (eg. maintenance, utilities, janitorial, salaries, etc.)
CONTRACT REVIEW
Changes
Date In Needed
Division Director . ,r; 41 ......, YesO Nog--
Risk Management S-#' YesO No (L \G(Jv\,"d ft-c~~ cl~(;'v"
o~lPurLg ~l YesEJNo~ () 6A-h~,,--,
County Attomey 4~1 YesONo~ ~4--...-.
Comments: PU/I(!IU<i-i^-7 t'Ottt,~ ,tJAc7f,Jd I.:u f/7c../cd<.Jl @
Date Out
.-
.. - ~e--1
~o,
.5'- y-o /
5~
OMB Form Revised 9/11/95 Mep #2
05-08-2001 11 :S8am From-
1-140 P.002/00S F-590
IW
111 North Orange Avenue, : ;uite 1600
P.O. Sa< 3031
Orlando. FL 32802
Telephone 4Cf7 423 3425
Fax 4fIl 648 8557
May 8, 2001
Ms. Sheila Barker
Interim Director
Office of Management and Budget
Monroe County
5100 College Road
Key West, Florida 33040
Dear Ms. Barker:
This letter is to confIrm our undl:rsranding of the teons of our engagement and the nature
and limitations of the services WI: will provide.
KPMG LLP (KPMG) is pleased [0 submit this Engagement letter to Monroe County (the
County) to provide professional consulting services for the development and preparation
of an OMB Circular A-87 and .1 Full Cost Countywide central services cost allocation
plan. The plans will utilize FY 1999 actual costs, and win- be prepared in accordance
with Federal Circular A-87, COSl Principles for State and Local Governments. The plans
wi!! be fully compliant with lhe recently revised A.87 regulations governing cost.
allocation plans. 1'he Full Cost ~,lan will include some central service costs which are not
allowable under A-87 regulation.!..
We estimate that an elapsed calendar time of twelve weeks from the date of
commencement would be requirf'd to develop and prepare the Countywide cost allocation
plans, with commencement ace wring within two weeks from the notice of contract
award. This time frame, of c~urse, is dependent upon the timeliness of requested
infonnation furnished by the COlmty. The County will be responsible for the collection
of all statistical information us,~d as allocation bases. Changes in the existing cost
allocation planS will be made to account for and reflect County organizational changes
made since the last plans were.prl:pared.
OUf fees for professional service) are based on the time and staff"mg requirements of the
engagement, and include all expenses incurred by us. Our total contract costs to perform
the professional consulting services will not exceed $11,500. The engagement fee will be
billed to the County as follow~: 50% of the fee thirty days after the initiation of
fieldwork, 25% upon delivery ,of the draft plans, and 25% upon delivery of the final
plans. This engagement will bt- managed by Ken Carey, and will be staffed by Ken
Carey and Heidi PoweII, both experienced cost allocation consultants. Additionally, this
engagement is subject to the stan<lard terms and conditions included as Anachment A.
. .... "rMe ~"(PMG l.....,s 1J.S'.If'1,..,a tI.JQJ.l~ ~.n~th,p. ~
t,'l11"t~O~ ~ q~ 1l"lt'fn"".&QJ'o3f. :l SWI~~ . ~~S.l,on.
05-08-2001 lJ:58am From-
T-140 P.003/006 F-590
..
Ms. Sheila Barker
Monroe County
May 8, 2001
Page 2
We look forward to working with you and your staff in the performance of these services.
We would be pleased to discuss lhis letter with you at any time.
For your convenience in confIrming these arrangements, we enclose a copy of this letter.
Please sign it and return it to me.
Very truly yours,
KPMG LLP
KeIUleth S. Carey
Manager
ACCEPTED:
Authorized Signature
Title
Dare
05-08-2001
11 :59am
From-
T-140 P.004/006 F-590
I'mtI
KPMG LLP
Standard Terms and Conditions
I . Sen'ices. Our services may include advice and
rKommendations; tm.t Itll decisi\)l\s in CO,iMC{i\)t\ with
the implcmcntlltion of such l.dvice lIml
recommendations shall be)'Our 501<: r~poo:jibility.
2. Payment (If rnvoice!l. You ~/P'CC 10 llaY properly
submitted invoices within lhirty (30) days .)f the invoice
dale (or any other dilte lhat We: mayagru ." in writing)
W~ t<hall have the right to halt or 'tl:tminal~ entirely OUT
~e:f\<ice~ until payment is receive:d on past dlJe iavoice.-t
All j(~es, charges lUld other amount,; jl.ly3ble 10 us
hereW1der do nOl include any ll;llc:s, use, t:XCisc:, value
added or other applicable lues, tarifi,; or dillies,
paymenl of which $llall be YO\lr sole 'cSp(lnliibility,
excluding any ~ppljcable tlIxc:s based on ellr ner income
Of \ax.;s arisj~ from the employment OJ indcpc.ndcnl
contractor relationship belween us and our l)erKonnel.
3. Term. Unless tenninated sooner ill accoruance with it~
le1'IIls. lhi~ engugement shall . rermm.lte On the:
completion of OUT services hereu.ador, In ~d<lilion. Ibis
cng:lgemcmt may be terminated hy either olf u~ at any
time by gi.....ing Wlitlcn notice to the other ParTY not JC$~
tboll 30 calendar Jays bcfClTe the efiec(iv.; dore of
termination.
4. Ownership.
(a) KPMG Property. We create, acq<lire or own
various concepts, methodologies, :in(1 techniquCli;
model$; templams; software, user J~terfaces 01'
Sl:l'ccn dcsi~; gellcJ1"al pwpo.llC CO.lSalting and
software tools: and logic. eoherencclIld methods
of operation of :lystoms (collectively, the "K.PMG
Propmy"). We retain all ownetsh.ip rights ill the
KPMG Pt'Opcl1'ty. You shall acquire) no right or
intereSt ill such prope.l'IY. except flll the license
expl'csllly gtal1t.."d ill the next paf:.Sfaph. In
addition, we shall be fr<< to provide: s~,viecs of any
kind to any orner party as we deem appropriate, and
we may use the KPMG Propcny to do so. We
acknowledge lhar KPMG Propeny llhall not include;
any of your confidential infollIlat.i.m or your
t~n,qible or intangible property, and \1 ~ shall have
no ownc:t'llhip righls in such property.
(b) Own"r~hi" ()f Deli"erabl~. Except for KPMG
Propcny. and UpQO full and tinal pa~menr to us.
deliverables or work product spcciticd in the
engagement lo"ltlCf ur proIhlsal to whid these toans
are arrached (the "Dcliv(lJlIblcs") will I><<ome your
prop~rty. If lUly KPMO Propcny is I;onraincd in
lIny of Ille Dcliverables, W'O hereby ~ filnt you, a
roynlty-free. 40n-cJ1o:c!U:llw lireJ18e [0 use th~
KPMG Property 111 connection witl'! the use: of the
Dillivcrab1c-s.
Page 1
5. Umiration on Warranties. 1"IflS IS A SERVICES
ENGAGeMENT. KPMC WARRANTS THAT IT
WILL PERFORM SERVICES HEIU:UND:E:R IN
GOOD FACTH. KPMC OISCLAlMS ALl. OTHER
WARQAN1'IES, f:l'l'HER. eXPRESS OR lMPLIED,
lNCLVDlNG, wnlfOUT LlMlTATJON,
W ARIl..~TIES Of' MERCHAN1'ABJLl'l'Y .\N1)
FITNESS J.'OR A P.<\RTletTJ..AR PllRPOSE.
6. LimimrioD on DllJDllges.. Except for yow and our
r<::;pective in<lemnitic;llion pbligationli ill' d~aibcd in
lhcse Slandard Tcnn.~ and Conditions. Mithcr you nor
we lil1all be liable to the other lor any Qctions, d:lmages,
Clllimli, liilbi I iti~, co~'tS, expen:;es or 10:i8e$ arising ont of
thc :.-crviccs pcrfonncd h~undcr for a toral amount in
exc~i.~ of Ihe fees paid or owing 10 us fOr &ClViccs
rendered by us unJerth~ engagem<!ll.l. Ill. no eVe4I11~1
either you Ilr we be liable for consequential. apceial.
indira.'1, incidenl3l, punitive or exemplary dltmage.t;,
CO$l$, expenses, 01' lOsses (including. wilJwut limitation,
lost profits md opportunilY costs). The f1rovlsioJ1$ of
lhis PlIragrnph sllall o:lpply reg.1rdJes:l of the form of
action. damll~. Claim, liability, calif, expell$C, or 10....,
wbcthu in contraCt, Statute, lott, or oth~ise.
7. InfringeDlent.
la) We agrC~ to inaelTUlify. hol<1 IllIt1nl~ md dcf~lId
you from md agl1in:;t all claims. liabilitil:S, losses.
cxpcn.~cs (including te'.i:lonablc auomcys' fees),
f1De:~, pc:n"lti~~. taxes or darwgas (collectively
"Liabilitics") l".';.'icrwd by any third parry aga.iftSt
you 1.0 the: cxu:nt such Liabilities remIt froDl tile
infrin~cmall by the Dcliverablcs of any third
pany's 'rade S~Lo;. tIBdc:marks. COpyrighlS. L>r
patents issuc:d as of !.he date of lhe attached
EIIgagc:mc:nt Lcm:r. The: preceding provisions shaU
not apply 10 any infringemCllt arising OUt of \he
rollowing:
(i) use of the Delivc:mbles other thtlD in
:JCGOrdanco wirh applic.1ble documcnrarjo/1 or
insuucrions supplied by us (lr orhCT' than in
llccordancc Wirh Parogrnph 8(b);
(ii) any alteration. modilication or revision of tile
Dclivefllblcs not expressly agreed to in writing
by LJS: or
(iiil the cO.Q\bu,nrion of rht Deliverables '\\ith
materials not rupplied by us.
(b) In case any of the DelivcflIblcs or my ponion
thereof is held, or in our rcasol1ablt: opinion is
likely tol be held, in any such sl.Iit to ~tiMC
infringemcClt, we may Within a rt"6SOW1blc time, 3t
our opuon. cilh~r.
Rellised 16 Jan. 01
05-08-2001
II :S9am
From-
T-140 P.OOS/OOS F-590
IW
KPMG LLP
Standard Terms and Conditions
(i) $oourc fo~ yau the right to conti.'\lC rh~ \lSC of
stich infrinsin2 im~ or
(ii) rcplacc:, al our sole c,,<pen!lO, su,b item with n
substantially equivalent non-infnnging ileD! or
modify Mh item so lhat it tccomell non-
inlringing.
In the event W6 arc, in Ollr rca.~omlt.lc discrction.
unable to ped'orin either of options do ,scribed in (i)
or til) above, you must rewm tOO Del,ycrablc to liS.
and our sole lillbiliry shall be [0 rero'ld to you the
SlUOUJlT you paid us fot such item.
(c) The provisions of" this Pill'llgraph 7 SI.,te our entire
liabilil)' and your $ole i1nQ e.,<c1usive remedy with
rcspCCl to any infringl:mcnt 0)' claim of
infr1ngemcnt.
8. Jndemnificltdon.
(n) You <lnd we each asree to indemnifY. !lold harmless
and dotend the other from and again;t any and aU
Liabilities fOT injury to. illne.t11 or (troTh of, any
pet'Son or pClllonS reg,u:d1ess of Sr..'\nlS. and damage
(0 or desttuction of any tangible pers.)naJ pl:opcny
which the Olher parry am)' sustain 01 incur [0 rbe
exrent such LiabiJilies l'l!SUIt from the oeiJiaenoo 01'
willfuJ misc:onduc[ of the indemnifying PlInY.
(b) YOII acknowledge l111d lIg1"OO thaI any advice,
recommendations, infonnation or ....'ork prod'uC:1
provided ro you by us in c;olU1Cl:li,1n with mis
engagc:JDen1 is fol' )'Our cofItidOl'ltilll u,.o. E.'IC4:pt as
othatwisc required by law, you will n.lt disclose or
permit l\eCt$$ 1.0 such advice, rccottlmCndations,
infotmaoon or work product to any (.cher party or
~\mImarizo or refer 10 su.:b advi~,
recommendation::. infomtlltion or WOlle product or
to 01.lT engagement herc\lnc1er WithC'lll our prior
wriucn consenr. ln r.bar Rgurd, you w./l indemnilY.
dcfc::nd llnd hold us hannlcss from aD.1 againSt :my
3M all Liabili[ies assancd :lgainst us by any third
party to the c:(TeDr resultins from thllt ]tarry's usa or
possession of or relillJlCc upOn our advice:.
recommendafions, infOlTlllUion or WOk k product as
a direct or inCirec[ result of Y\lur me 01' disclosure
of ~ucl:1 advice, rccommc:noations, inlOffiUltion Or
work producT.
(c) The purry entitled to indcmnif.arion (the
"Indemnified PatIY") shall })romptl~. natify tbe
pany obligated to pro\lidc such ifwcmuitication
(the "lndill2lllitying Party") of any clU,lU for which
the Indemnified Party scclc.s indcmn,.fic.ntion and
rhe IndemAit);jng Party shall have Ihe right to
conduct the det'=se or seTtlilmeflI ofar,)! ruch e1aim
at the lnd<manit)ting Parly',; sole expfl19~. and Ibe
Indemnified PaL'ty shall coopcrat< with the
Page 2
indemnifYing Patty. The: party nor conducting the
defense shall nonGtb.elcss have the right to
patticipate in such defen.o;e <it itS own expellSe. The
Indemnified P3rty shall have the right to apprOve
the seulen\CIlt of any claim h<<eunder thar imposes
any liability Or obligation other than tJ1C payment or"
money dalnages.
9. CUlIper-atioa. You a~rec to coopcme with us in our
perloumsncc of atlr service.<; for you. including
providing Ull ",i!h rtalion:lbl~ facilities and timdy access
10. your data, informiUion and pCl'$Onnel. You $haU be
rl$ponsib1c for thc pcrfonnill1c:e of yO\lr employees 31\d
IlSa1!s lII1d fot ~ ;sl;C\l~ and c;omplc\Ctl.~~ of all data
and il1foromion providc:U to us for p\llpOlj<:$ of mill
eOSllsernctll.
10. Force Maj~ure. Neil1u:r you nor we shalllx: liable: for
3ny delays resulting from circumstanca or CDUSes
beyQnd our rec1l.O!IabJe COntrol. inc1udin~, wilhout
limilation, lire or oth~ Clu.uah)', act of God. str~ or
labor dispUh:, wllr or GUI<< vialence, (lr any law, ord~ or
requirement of any govcm~nlalllgCDC;y or authority.
11. Limitation ma AetiUIlS_ Neither you nor we may bring
any ac:tion alising under ot relating to rhis eogaglm1CJ1t
more: rMtI one year after the cause of action has ac:crued,
cXCl:pc tMl we tl1BY brine 3n action tOr non-payment not
later than one y~t utter tbe date of the wt payment duo
fO \IS.
]2. In&1,,opelldeat Conft'3c:tor. Vou and we ace both
indc:pcndel'i\ couttll.Ct01"S and neither you nor Wt) ll.l'C, or
shaH be considered to be, an ascnt, distributor or
rcp~Dwivc: of~ other. Ncith..'t' you ftOt we sball act
or represCDt itsolf. directly Of by implication. as an agent
or the other or in any manner a.~\lme or create any
ublisation on bthillf of, 01' in t.b~ fiAInf:, of. tbi; other.
13. COlllidlmd8lity. You and we both acknowled~~:md
agree lhat all infOtmlttion cOn:lmllllicar.ed by otle patty
(me "Disc lOlling Pany'j to the other (lile "Rcceivirlc
Party.') in connection wilh this cngtgeJnCDl shall be
l'eceived in .:.>nt'Wcmce, shall be used only for purpoSCl!
of ~ cngagclIlCII.t, and 110 liuch confidential
informalion shall be di$c:lo~4 by tht Receiving Party or
i\$ aSI:.'I1ts or personnel wirhout lhc prior wriucn consent
of Ihc other pany. E..'tccpt 10 the exterll otberwi~
required by applicllble law Ot profC$.'>ionaI standard$, !he
obligarious I1ndtr thi, scetian do nOl apply to
inforlnatioD dull: (01) is or bo:Qme:s senc:ntlly liY:lihsbl~ 10
the public: other Lhan :IS 3. result of digcloll~ by the
Receiving Party, (b) wai known to thc Rccciv1ng Part')'
Ot had bem prc:viou:dy pOll:ll::ilied by the: Rcc:ci,,-ing Party
withOLlL ~.triction againsl disclosure at lh~ time: of
receipt lhe,""of by !hit Receivillg "ar!)', (c) WlIS
independently developed by the R.x:civing Party without
viClbtiotl of thu Agreem~t or (c1) you and we agree
from time 10 time ro disclose. Eactl party sball be
Revised 16 Jan. 01
OS-DB-ZOO 1 11: Seam
From-
T-140 P.OOS/OOS F-seo
I'SI
kPMG LLP
Standard Tenus and Conditions
deemed to hav~ met iti nondisclosure obliiati011:l undc1'
this Para~aph as long ~ it e'Ulcis~ the lamB level o)f
care to protect the other':; informarioQ as It .:xercises ro
pIOleCt il~ own confid01ltial infonnanon, ~cept to the
ex-tent that applicable law or protessiollal standards
impose a higher requirement. We DIllY rctl.iD, su~iect to
the tem'IS of this PiClgraph, olle cc.py of your
confidential infonnat.ioD requin:d fOr cODlpliance with
applicable prOfClL'iional standards or intc:rrn.l policies. If
either you or we recei~ a robJ'OilDa or IlID<:r valiJly
issued adminisll'arive or judjcial demand t;quiring: it to
disclllse the; oVId' party's confidential jufolDl.'\tion, :Ncb
patty shall pIovid~ prompt written notice t.) the othet oi
such d~d in orckr to pMDit it to sccl a protective
Qr(kr. So long as the notifying pa1'ty gi v'cs notice as
prllvicled hetein, the notifYing pa,1Y llhall lie entitled to
comply with such demand to the: ex.tent JX.'rmitted by
law. subjcct to any protootive order or the like that ma}>
have bcc:n entcroo in ID<"l matter.
14. S\ltv1val, lhc pro"i8ions ofPara~s 1,2,4,.5,6,7,
8, 9, 11, 12, 13 and J 5 htroof shall mrvive the
l:xpinltion ar rcnnil13tion oflhis CIlSil,>emerlL
J 5. A~llignment. Ncilh<< p.1lly may assign lnnsJer or
dclCg;lte ilny of ill' rights or ohliJPIlions witl.out !he prior
wri.kn COI1!;Cl1t of !he alba puny, ..uch C011:Wl nor to be
unrC3son3bly withheld.
16. SevenbiJity. In the evcnr rh.1t any renn or provision of
rl1is Agr~men' shall be held to be iDVI,lid, void or
uncnfoI'CQIbJ.:, [bell tho remainder of thi I Agr=nr
shnll not be I1fieered, and c:1ch such term and provision
of rhis Agreemenr ~hall be valid and enfor.:eablc to the
fullest ex-renr pCmltttoo by law.
17. Enrir-e Agreement. These tams. lIIU1 the Proposal Or
:Ensagemcnt LeltCT 10 which these lcrlll$ a..'D appended,
i~cJudinS Exhibits. cOlutitute the .:IDUrc Asrccm.mt
bdweell us with ~pcct to the ~ell ~t and
S\1pcrsede all orher 01'011 and wrirtl:n re,,~cntatil)n.
under~""Wlding! or agreements rolatin g to the
enll'agcmcnt.
Page 3
Revisecl16Jan. 01
PUBLIC ENTITY CRIME STATEMENT
"A person or affiliate who has been placed on the convicted vendor list
following a conviction for public entity crime may not submit a bid on a
contract to provide any goods or services to a public entity, may not submit a
bid on a contract with a public entity for the construction or repair of a public
building or public work, may not submit bids on leases of real property to
public entity, may not be awarded or perform work as a contractor, supplier,
subcontractor, or consultant under a contract with any public entity, and may
not transact business with any public entity in excess of the threshold amount
provided in Section 287.017, for CATEGORY TWO for a period of36
months from the date of being placed on the convicted vendor list."
SWORN STATEMENT UNDER ORDINANCE NO. 10-1990
MONROE COUNTY, FLORIDA
ETHICS CLAUSE
warrants that he/it has not employed, retained
or otherwise had act on his/its behalf any former County officer or employee in violation of
Section 2 of Ordinance No. 10-1990 or any County officer or employee in violation of
Section 3 of Ordinance No. 10-1990. For breach or violation of this provision the County
may, in its discretion, terminate this contract without liability and may also, in its discretion,
deduct from the contract or purchase price, or otherwise recover, the full amount of any fee,
commission, percentage, gift, or consideration paid to the former County officer or employee.
(signature)
Date:
STATE OF
COUNTY OF
PERSONALLY APPEARED BEFORE ME, the undersigned authority,
who, after first being sworn by me, affixed his/her
signature (name of individual signing) in the space provided above on this
day of
,19_
NOTARY PUBLIC
My commission expires:
OMB - MCP FORM #4