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HomeMy WebLinkAbout3/21/2001 - STAFF REPORTS (6) AV DATE: March 21, 2001 TO: City Council FROM: Director of Economic Development AGREEMENT FOR FOREIGN-TRADE ZONE SERVICES RECOMMENDATION: That City Council approve the agreement between the City and Maritime Trust/Foreign-Trade Zone Solutions in the amount of$16,000 to provide consulting services to assist with the foreign-trade zone major boundary modification (expansion) application. SUMMARY: This is a consulting agreement to undergo a boundary modification (expansion)of the Foreign-Trade Zone#236. The boundary modification will include other sites in the greater Palm Springs area to expand the FTZ boundaries to spur new development and create jobs. The consulting agreement is in the amount of$15,000, and will be paid from the Department of Economic Development 2000-01 approved budget. To recapture the expenditure, the property owners will pay a pro rate share of the cost, which will be determined based on the number of participants. BACKGROUND: The City of Palm Springs received Foreign-Trade Zone (FTZ) designation on February 3, 1999 (Board order #1013). The boundaries of the FTZ consist of 917 acres at the Palm Springs International Airport and 14 acres at the Palm Springs Rail Station. The application and ultimate designation of the Foreign-Trade Zone #236, was to enhance the City's business retention and attraction efforts and provide an economic development tool that was not currently available in the Coachella Valley. The FTZ is a regional asset and to further enhance the ability to attract business, spur new development and create jobs, staff is recommending the City approve the cost to expand the boundaries of the FTZ, to include other sites in the greater Palm Springs area. The cost of the boundary modification (expansion) ($15,000) will be paid from the Department of Economic Development approved 2000-01 budget, account number 001-10-01400-43200. To recapture the expenditure of the boundary modification (expansion), the property owners will pay a pro rata share of the cost, which will be determined based on the number of participants. Maritime Trust/Foreign-Trade Zone Solutions will provide the consulting services to prepare the application for a major boundary modification (expansion) including but not limited to: coordinate meetings with grantee and prospective sites being considered, assist in all phases of site selection process, coordinate collection of 5A information and manage any community issues related to the zone project and present and monitor the application status with the Foreign-Trade Zones Board. Director of c nomi evelopment APPRO City Manager Attachments: 1) Minute Order 2) Contract Agreement for Foreign-Trade Zone Services REVIEWED BY DEPI OF FINANCE CITY OF PALM SPRINGS CONTRACT SERVICES AGREEMENT FOR (SHORT FORM) THIS CONTRACT SERVICES AGREEMENT (herein "Agreement") is made and entered into this 215' day of March, 2000, by and between the CITY OF PALM SPRINGS, a municipal corporation (herein "City") and MARITIME TRUST/FTZ SOLUTIONS (herein "Contractor"). (The term Contractor includes professionals performing in a consulting capacity). NOW, THEREFORE, the parties hereto agree as follows: 1.0 SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all of the terms and conditions of this Agreement, the Contractor shall perform the work or services set forth in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by reference. Contractor warrants that all work and services set forth in the Scope of Services will be performed in a competent, professional and satisfactory manner. 1.2 Compliance With Law. All work and services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits. Fees and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "B" and incorporated herein by this reference, but not exceeding the maximum contract amount of$15,000.00 Dollars ("Contract Sum"). 1.2 Method of Payment. Provided that Contractor is not in default under the terms of this Agreement, Contractor shall be paid as outlined in Exhibit "B", Schedule of Compensation. 3.0 COORDINATION OF WORK 3.1 Representative of Contractor. Chris Koelfqen is hereby designated as being the principal and representative of Contractor authorized to act in its behalf with respect to the work and services specified herein and make all decisions in connection therewith. 3.2 Contract Officer. George L. Wyatt, Director of Economic Development is hereby designated as being the representative the City authorized to act in its behalf with respect to the work and services specified herein and make all decisions in connection therewith ("Contract Officer'). The City Manager of City shall have the right to designate another Contract Officer by providing written notice to Contractor. 3.3 Prohibition Against Subcontracting or Assignment. Contractor shall not contract with any entity to perform in whole or in part the work or services required hereunder without the express written approval of the City. Neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. Any such prohibited assignment or transfer shall be void. 3.4 Independent Contractor. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth. Contractor shall perform all services required herein as an independent contractor of City and shall remain under only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. 4.0 INSURANCE AND INDEMNIFICATION 4.1 Insurance. The Contractor shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance: (a) Comprehensive General Liability Insurance. A policy of comprehensive general liability insurance written on a per occurrence basis in an amount not less than either (i) a combined single limit of $1,000,000.00 or (ii) bodily injury limits of $500,000.00 per person, $1,000,000.00 per occurrence and $1,000,000.00 products and completed operations and property damage limits of $500,000.00 per occurrence. If the Contract Sum is greater than $500,000.00, the policy of insurance shall be in an amount not less than $5,000,000.00 combined single limit. (b) Worker's Compensation Insurance. A policy of worker's compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both the Contractor and the City against any loss, claim or damage arising from any injuries or -2- ITR V occupational diseases occurring to any worker employed by or any persons retained by the Contractor in the course of carrying out the work or services contemplated in this Agreement. (c) Automotive Insurance. A policy of comprehensive automobile liability insurance written on a per occurrence basis in an amount not less than either (i) bodily injury liability limits of $500,000.00 per person and $1,000,000.00 per occurrence and property damage liability limits of $250,000.00 per occurrence and $500,000.00 in the aggregate or (ii) combined single limit liability of $1,000,000.00. Said policy shall include coverage for owned, nonowned, leased and hired cars. (d) Additional Insurance: Policies of such other insurance, including Professional Liability Insurance, as may be required in the Scope of Services, Exhibit "A" All of the above policies of insurance shall be primary insurance and shall name the City, its officers, employees and agents as additional insured, except that the City shall not be named as an additional insured for the Worker's Compensation Insurance nor the Professional Liability Insurance. The insurer shall waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents and their respective insurers. All of said policies of insurance shall provide that said insurance may not be amended or canceled without providing thirty (30) days prior written notice by registered mail to the City. In the event any of said policies of insurance are canceled, the Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 4.1 to the Contract Officer. No work or services under this Agreement shall commence until the Contractor has provided the City with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the City. The Contractor agrees that the provisions of this Section 4.1 shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages to any persons or property resulting from the Contractor's activities or the activities of any person or persons for which the Contractor is otherwise responsible. The insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated "A" or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the City Manager or designee of the City due to unique circumstances. 4.2 Indemnification. Contractor agrees to indemnify the City, its officers, agents and employees against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, including paying any legal costs, attorneys fees, or paying any judgment (herein "claims or liabilities") that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work -3- of,#OT or services of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising from the negligent acts or omissions of Contractor hereunder, or arising from Contractor's negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, but excluding such claims or liabilities to the extent caused by the negligence or willful misconduct of the City. 5.0 TERM 5.1 Term. Unless earlier terminated in accordance with Section 5.2 below, this Agreement shall continue in full force until March 30, 2002. 5.2 Termination Prior to Expiration of Term. Either party may terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to the other party. Upon receipt of the notice of termination, the Contractor shall immediately cease all work or services hereunder except as may be specifically approved by the Contract Officer. In the event of termination by the City, Contractor shall be entitled to compensation for all services rendered prior to the effectiveness of the notice of termination and for such additional services specifically authorized by the Contract Officer and City shall be entitled to reimbursement for any compensation paid in excess of the services rendered. 6.0 MISCELLANEOUS 6.1 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 6.2 Nonliability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. 6.3 Conflict of Interest. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 6.4 Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer, CITY OF PALM SPRINGS, P.O. Box 2743, Palm Springs, California 92263, and in the case of the Contractor, to the person at the address designated on the execution page of this Agreement. 6.5 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 6.6 Integration; Amendment. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 6.7 Severability. In the event that part of this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 6.8 Waiver. No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver. A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 6.9 Attorneys' Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees, whether or not the matter proceeds to judgment. 6.10 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the -5- 0007 entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first written above. ATTEST: CITY OF PALM SPRINGS, a municipal corporation By: City Clerk Contract Administrator (Check one: Individual _Partnership _Corporation (Corporations require two signatures: CONTRACTOR: One from each of the following: A. Chairman of Board, President, any By: Vice President: AND B. Secretary, Signature (Notarized) Assistant Secretary, Treasurer, Assistant Treasurer, or Chief Financial Officer), Print Name&Title By: Signature (Notarized) Print Name &Title Mailing Address: (End of Signatures) EXHIBIT "A" SCOPE OF SERVICES Prepare Major Boundary Modification (Expansion)Application as follows: Coordinate meetings with grantee and prospective sites being considered Assist in all phases of the site selection process Gather application information Coordinate with various entities for collection of the information Coordinate meetings and solicit support from U.S. Customs Manage any community issues related to zone project Prepare application Present application to FTZ Board Monitor status of application with FTZ Board until receipt of FTZ Board approval MT/FTZS will prepare the draft major boundary modification requesting appropriate privileges with the necessary input, data, and review by the proper parties. After final modifications are made, and approval is received from City, we will formally submit the application to the FTZ Board. We will monitor the application through the processes to receipt of approval. The only insurance (Section 4.0) required is Professional Liability Insurance in the amount of $1,000,000. 7 �� 1 EXHIBIT"B" SCHEDULE OF COMPENSATION Development and preparation of the Major Boundary Modification (Expansion) application will be at a discouned flat fee of$15,000 plus reasonable out-of-pocket expenses. Fees are payable as follows: 25% upon acceptance of agreement 25% one month after date of engagement acceptance 25%two months after date of engagement acceptance 25% upon receipt of approval of application from the Foreign-Trade Zones Board -g- 50h Id EXHIBIT"C" SPECIAL REQUIREMENTS The following Sections shall not be applicable, to wit: 4.1 (a) Comprehensive General Liability Insurance 4.1 (b) Worker's Compensation Insurance 4.1 (c) Automotive Insurance 30,41) MINUTE ORDER NO. 6819 APPROVING THE AGREEMENT BETWEEN THE CITY OF PALM SPRINGS AND MARITIME TRUST/FOREIGN- TRADE ZONE SOLUTIONS, IN THE AMOUNT OF $15,000, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR CONSULTING SERVICES TO ASSIST WITH THE FOREIGN-TRADE ZONE #236 MAJOR BOUNDARY MODIFICATION (EXPANSION). ------------------ I HEREBY CERTIFY that this Minute Order, approving the agreement between the City of Palm Springs and Maritime Trust/Foreign-Trade Zone Solutions, in the amount of$15,000, in a form acceptable to the City Attorney, for consulting services to assist with the Foreign-Trade Zone #236 major boundary modification (expansion), was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 21 st day of March, 2001. PATRICIA A. SANDERS City Clerk