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Title:
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Dept/ Agency: Economic & Housing Development
Action: ( ) Ratifying () Authorizing ( ) Amending
Type of Service: Professional Services Contract
Purpose: Accounting Auditing Services
Entity Name: McGladrey, LLP
Entity Address: 1185 6TH Avenue, 6th Floor, New York, NY 10036
Contract Amount: Not to exceed $200,000.00
Funding Source: __________________
Contract Period: 12 months from the notice to proceed by the Director
Contract Basis: ( ) Bid ( ) State Vendor ( X ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
Additional Information: This resolution is to report the status to the Municipal Council of the procurement of the contract for a firm to conduct an audit of the Port Authority of New York and New Jersey's gross revenue calculations under the Port Authority of New York and New Jersey Seaport and Airport Lease ...
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Title
Dept/ Agency: Economic & Housing Development
Action: ( ) Ratifying () Authorizing ( ) Amending
Type of Service: Professional Services Contract
Purpose: Accounting Auditing Services
Entity Name: McGladrey, LLP
Entity Address: 1185 6TH Avenue, 6th Floor, New York, NY 10036
Contract Amount: Not to exceed $200,000.00
Funding Source: __________________
Contract Period: 12 months from the notice to proceed by the Director
Contract Basis: ( ) Bid ( ) State Vendor ( X ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
Additional Information: This resolution is to report the status to the Municipal Council of the procurement of the contract for a firm to conduct an audit of the Port Authority of New York and New Jersey's gross revenue calculations under the Port Authority of New York and New Jersey Seaport and Airport Lease Agreements. Six (6) Firms responded to RFQ
Three (3) firms were interviewed July 28, 2015
body
WHEREAS, the City of Newark, (the "City") and the Port Authority of New York and New Jersey (the "Port") are parties to two long term Lease Agreements for the property under which Newark Liberty International Airport and Port Newark Seaport reside; and
WHEREAS, pursuant to the ninth supplement of such lease in 2002, the parties among other things amended the formula for calculating rent; and
WHEREAS, the formula is now based on the "gross revenue" of the airport and seaport; and
WHEREAS, rather than address rent increases annually, the parties true-up rent every five (5) years based upon the "gross revenue" increases of the airport and seaport during that period; and
WHEREAS, although several true ups have taken place since 2002 the City has not conducted an Audit of such gross revenue calculation as is permitted by Lessee Agreements; and
WHEREAS, the City desires to perform due diligence with an audit to validate the gross revenue calculations provided by the Port to the City; and
WHEREAS, pursuant to the Lease Agreements the audit is permissible, but required to be from among of the ten largest accounting firms in the New Jersey/New York area; and
WHEREAS, on June 25, 2015, the City advertised and issued a Request for Qualifications for Services as City Auditor to validate the gross revenue calculations provided by the Port to the City ("RFQ"); and
WHEREAS, responses to the RFQ were due on July 15, 2015 and six (6) auditing firms responded to the RFQ by the due date; and
WHEREAS, the responses were evaluated by the evaluation team and on July 28, 2015, interviews were conducted with the top three (3) auditing firms as determined by the team; and
WHEREAS, based upon the interviews and the responses to the RFQ, McGladrey, LLP has been deemed the best qualified to audit the revenue calculations provided by the Port to the City ( a copy of the response to the RFQ is attached); and
WHEREAS, the Mayor and his designee the Deputy Mayor/Director of the Department of Economic and Housing Development desire to advise the Municipal Council of the status of the procurement of these services.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Municipal Council acknowledges the reporting by the Mayor and his designee the Deputy Mayor/Director of the Department of Economic and Housing Development of the City of Newark to the Municipal Council of the status of the procurement of a contract for a firm to conduct an audit of the Port Authority of New York and New Jersey's gross revenue calculations under the Port Authority of New York and New Jersey Seaport and Airport Lease Agreements.
2. The Mayor and/or his designee intend to submit, within sixty (60) days of this resolution, a resolution seeking to award a contract to McGladrey, LLP located at 1185 6TH Avenue, 6th Floor, New York, NY 10036 who was found to be the most qualified applicant.
3. The term of the contract is expected to be one year and the amount of the contract is not expected to exceed two hundred thousand dollars ($200,000.00).
STATEMENT
This resolution acknowledges the Mayor and his designee the Deputy Mayor/Director of the Department of Economic and Housing Development of the City of Newark's reporting to the Municipal Council of the status of the procurement of the contract to retain a firm to conduct an audit of the Port Authority of New York and New Jersey's gross revenue calculations under the Port Authority of New York and New Jersey Seaport and Airport Lease Agreements.