Title
Dept/ Agency: Administration/Office of the Business Administrator
Action: ( X ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Professional Service Contract
Purpose: Accounting Auditing Service Contracts
Entity Name: RSM US, LLP
Entity Address: 80 City Square, Boston, Massachusetts 02129
Contract Amount: $175,000.00 (Contract: January 18, 2017, and terminating January 17, 2018) and $40,0000.00 (Contract: January 18, 2018, and terminating on January 17, 2019)
Funding Source: 011-156-1564-71280-B2017 and 011-156-1566-71280-B2017 and 011 030 0301 71280 B2018
Contract Period: January 18, 2017 to January 17, 2018 and
January 18, 2018 to January 17, 2019
Contract Basis: ( ) Bid ( ) State Vendor ( X ) Prof. Ser. ( ) EUS
( ) Fair & Open ( X ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
Additional Information:
Both contracts total: $215,000.00
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WHEREAS, Resolution 7R3 j(AS), adopted as amended by the Municipal Council on August 5, 2015, authorized the Mayor and then Deputy Mayor/Director of the Department of Economic and Housing Development ("the Deputy Mayor") to enter into a contract with McGladrey, LLP, to perform accounting auditing services, specifically, to perform a five-year audit of the Port Authority of New York and New Jersey ("the Port") gross revenue calculation under the airport and seaport leases between the City of Newark ("the City") and the Port ("Engagement #1") for a one year term (January 15, 2016 through January 14, 2017) in an amount not to exceed Two Hundred Thousand Dollars and Zero Cents ($200,000.00), costs to be divided between the City and the Port; and
WHEREAS, on or about September 24, 2015, prior to executing the contract, McGladrey, LLP legally changed its name to RSM US LLP ("RSM") and the contract was entered into with, and the services performed by RSM; and
WHEREAS, on or about January 18, 2017, the Deputy Mayor requested RSM to expand the original services to include Year ending December 2016, to the audit with an increase to the original contract of $30,000.00; and
WHEREAS, the Audit Report for Engagement #1 was issued on May 26, 2017, at a total cost of $145,826.00, less than the original estimated contract value; and
WHEREAS, on or about February 20, 2017, the Deputy Mayor requested RSM to conduct a Port Newark Audit Compilation for Years 2011 through 2016, of Newark Air Terminal (Newark Airport) tenants with rent payments in excess of $750,000.00, with no increase to the contract amount (Engagement #2); and
WHEREAS, the Compilation Report for Engagement #2 was issued on or about March 2017, at a total cost of $7,260.00; and
WHEREAS, on or about April 28, 2017, the Deputy Mayor requested RSM to conduct a Newark Airport Compilation for Years 2011 through 2016 with no increase to the contract amount (Engagement #3); and
WHEREAS, the Compilation Report for Engagement #3 was issued on or about December 2017, at a total cost of $104,835.00; and
WHEREAS, on or about September 12, 2017, the Deputy Mayor requested RSM to perform consulting and lease analysis services for the City with various leases of the Port at the Seaport and Newark Liberty International Airport with an increase to the contract of approximately $50,000.00 (Engagement #4) and RSM requires additional time and will incur additional costs and expenses in the finalization of Engagement #4; and
WHEREAS, the Contracts are being awarded without competitive bidding as an exception to public bidding, pursuant to N.J.S.A. 40A:11-5(1)(a)(i), professional services; and
WHEREAS, Local Public Contracts Law N.J.S.A. 40A:11-1, et seq. requires a Resolution of the Governing Body authorizing the award of contracts for professional services and further requires that the contract itself must be available for public inspection; and
WHEREAS, the actions contemplated by this Resolution shall result in the award of a non-fair and open contracts in accordance with N.J.S.A. 19:44A-20.5; and
WHEREAS, RSM has completed and submitted a Business Entity Disclosure Certification which certifies that RSM has not made any reportable contributions to a political or candidate committee in the City of Newark in the previous one year, and the contract will prohibit RSM from making any reportable contributions through the term of the contract; and
WHEREAS, the Local Public Contracts Law (N.J.S.A. 40A:11-1 et seq.) requires that notice of the award of contracts for "Professional Services" without public bidding must be published in a local newspaper; and
WHEREAS, the Municipal Council adopted the Contractor Pay-to-Play Reform Ordinance 2:4-22C, which forbids the award of a contract to a Business Entity, as defined therein, which has made or solicited political contributions to Newark Municipal Candidates, office holders having ultimate responsibility for the award of a contract; candidate committees of the aforementioned candidates; and political or political party committees of the City of Newark or County of Essex; and continuing political committees or political action committees regularly engaged in the support of the City of Newark municipal or County of Essex elections; and certain other political party or candidate committees, in excess of certain thresholds; and
WHEREAS, the Mayor and his designee the Business Administrator desire to engage the services of RSM as more fully set forth herein.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or the Business Administrator are authorized to enter into the following two (2) contracts with RSM US, LLP:
(i) A contract with term commencing on January 18, 2017, and terminating January 17, 2018, for an amount not to exceed $175,000.00, for continuation and finalization of engagement #1 and commencement of new engagements #2, #3, and #4.
(ii) A contract with term commencing on January 18, 2018, and terminating on January 17, 2019, for continuation and finalization of engagement #4, for an amount not to exceed $40,0000.00.
2. The contracts are ratified from the stated commencement dates to the date of the adoption of this authorizing resolution.
3. Attached is a Certification of Funds in the amount of $175,00.00 from the City of Newark Budget 011-156-1564-71280-B2017 in the amount of $91,828.00 and 011-156-1566-71280-B2017 in the amount of $83,172.00 for contract commencing on January 18, 207 and terminating on January 17, 2018. Further, pursuant to N.J.A.C. 5:30-5(a), Temporary Budget attached is a partial Certification of Funds in the amount of $25,000.00 from City of Newark Budget 011-030-0301-71280-B2018, in support of contract commencing on January 18, 2018, and terminating on January 17, 2019. The Certification of Funds shall be filed along with the original resolution in the Office of the City Clerk by the Business Administrator.
4. The Determination of Value and Business Entity Disclosure Certification are attached and will be filed with the Office of the City Clerk.
5. A copy of the executed Agreement shall be filed in the Office of the City Clerk by the Business Administrator and shall be made available for public inspection.
6. A notice of this action shall be published in the newspaper authorized by law to publish a legal advertisement and as required by law within ten (10) days of the adoption of this resolution.
STATEMENT
This resolution ratifies and authorizes the Mayor and his designee, the Business Administrator of the City of Newark, to enter into two contracts with RMS US, LLP, to provide Accounting, Auditing and other Services related to the lease between the Port Authority of New York and New Jersey and the City of Newark and various leases of the Port at the Seaport and Newark Liberty International Airport commencing on January 18, 2017, and terminating January 17, 2018, for an amount not to exceed $175,000.00 and a second contract commencing on January 18, 2018, and terminating on January 17, 2019, for continuation and finalization of the services for an amount not to exceed $40,000.00.