TITLE
Recommendation to authorize City Manager to execute contract with Edward White & Co., LLP to conduct the Article 9, review in an amount not to exceed $257,500 for term of December 1, 2005 to November 30, 2006.
DISCUSSION
Each year my office conducts an audit commonly known as the Article 9 Review.
The purpose of this review is to determine if the City received the proper price for the oil extracted and sold from the Long Beach Unit Oil Operations.
For the past 19 years we have contracted with Edward White & Co., LLP, to perform this work. This work is both labor intensive and technical, and Edward White & Co., LLP, brings a level of knowledge and experience that is unique to their history with this contract. Since 1990, audit adjustments resulting from their work have produced over $125 million in additional oil revenue, without a single challenge from the oil operators.
Once again we propose to contract with Edward White & Co., LLP, in order to capitalize on their experience and expertise with this review. The term of the contract will be December 1, 2005 to November 30, 2006, in an amount not to exceed $257,500. This amount is no increase over last year.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
J.C. SQUIRES
ASSISTANT CITY AUDITOR