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
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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 ca...
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