DATE: October 13, 2016
SUBJECT:
Title
RESOLUTION EXERCISING A ONE-YEAR OPTION TO EXTEND THE AGREEMENT WITH MACIAS GINI & O’CONNELL, LLP FOR PROFESSIONAL EXTERNAL AUDITING SERVICES FROM MAY 1, 2017 THROUGH APRIL 30, 2018 FOR A ONE-YEAR AMOUNT NOT TO EXCEED $105,475 INCREASING THE MAXIMUM NOT-TO-EXCEED AMOUNT FROM $411,739 TO $517,214 AND AUTHORIZING THE PORT AUDITOR TO ENTER INTO AMENDMENT NO. 2 TO THE AGREEMENT
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EXECUTIVE SUMMARY:
In February 2013 the Office of the Port Auditor retained the firm of Macias Gini & O’Connell LLP (MGO) for professional external auditing services. The agreement was for the financial and single audits covering fiscal years 2013, 2014 and 2015 with two, one-year options to extend the agreement at the sole discretion of the District. The original agreement was scheduled to terminate on April 30, 2016. On October 6, 2015 the Board exercised the first one-year option to extend the agreement with MGO from May 1, 2016 through April 30, 2017.
On June 8, 2016 the Audit Advisory Committee (Committee) met and recommended that the Board exercise the second one-year option to extend the agreement with MGO from May 1, 2017 through April 30, 2018.
RECOMMENDATION:
Recommendation
Adopt a resolution exercising a one-year option to extend the agreement with Macias Gini & O’Connell LLP for professional external auditing services from May 1, 2017 through April 30, 2018 for a one-year amount not to exceed $105,475 increasing the maximum not-to-exceed amount payable under the agreement from $411,739 to $517,214 and authorize the Port Auditor to enter into Amendment No. 2 to the agreement.
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FISCAL IMPACT:
Funds are included in the Port Auditor’s FY 16/17 Professional Services Expense account (Ordinance 2862). Funds for subsequent fiscal years will be included in future budgets.
Compass Strategic Goals:
This agenda item supports the following Strategic Goal(s).
• A Port that the public understands and trusts.
• A financially sustainable Port that drives job creation and regional economic vitality.
DISCUSSION:
On February 12, 2013, the Board authorized an agreement (No. 117-2012) with Macias Gini & O’Connell LLP to provide external auditing services for an amount not to exceed $306,264 for the audit of fiscal years 2013, 2014, and 2015. The agreement includes two one-year options to extend for an amount not to exceed $105,475 per year. The original agreement was scheduled to terminate on April 30, 2016. On October 6, 2015 the Board exercised the first one-year option to extend the agreement with MGO from May 1, 2016 through April 30, 2017.
On June 8, 2016, the Port Auditor advised the Audit Advisory Committee that the District’s agreement with external auditor, MGO expires April 30, 2017. The Port Auditor asked if the Committee wanted to continue with MGO’s services for the fiscal year 2017 audit. After discussing the item, the Committee recommended that the Board exercise a one-year option to extend the agreement with MGO through April 30, 2018 for an amount not to exceed $105,475.
General Counsel’s Comments:
The General Counsel’s Office has reviewed and approved the proposed Amendment No. 2 as to form and legality.
Environmental Review:
The proposed Board action does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.
In addition, the proposed action allows for the District to implement its obligations under the Port Act and/or other laws. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed action is consistent with the Public Trust Doctrine.
Finally, the proposed Board action does not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit Regulations. Therefore, issuance of a Coastal Development Permit or exclusion is not required.
Equal Opportunity Program:
Not Applicable.
PREPARED BY:
Robert Monson
Port Auditor, Office of the Port Auditor
Attachment(s):
Attachment A: Amendment No. 2 to Agreement 177-2012 with Macias Gini & O’Connell LLP