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Home My WebLink About7/5/2001 - STAFF REPORTS (13) 11 DATE: June 20, 2001 TO: City Council FROM: Director of Economic Development CONSENT TO ASSIGNMENT OF A FOREIGN-TRADE ZONE CONSULTING SERVICES AGREEMENT FOR ZONE BOUNDARY EXPANSION RECOMMENDATION: That City Council approve the Consent to Assignment of a Consulting Services Agreement, between the City and Maritime Trust/Foreign-Trade Zone Solutions in the amount of$15,000,for consulting services to assist with the foreign-trade zone major boundary modification (expansion) application, to Ernst &Young. SUMMARY: The original Agreement for Foreign-Trade Zone Services between the City and Maritime Trust/Foreign-Trade Zone Solutions will be transferred to Ernst & Young. There are no other changes to the Contract Agreement which shall remain in full force and effect. BACKGROUND: On March 21, 2001, the City Council approved (MO 6819) a Contract Services Agreement between the City of Palm Springs and Maritime Trust/Foreign-Trade Zone Solutions, in the amount of$15,000 for consulting services to assist with the Foreign- Trade Zone boundary modification (expansion)application. The principal of Maritime Trust/Foreign-Trade Zone Solutions has taken a position with Ernst&Young, with an agreement to transfer open contracts to Ernst & Young. Ernst &Young has agreed to honor the Contract between the City of Palm Springs and Maritime Trust/Foreign- Trade Zone Solutions, to provide consulting services to assist with the boundary modification (expansion) application. The Contract Services Agreement will be paid from the Department of Economic Development approved 2000-01 budget, account number001-10-1400-43200. f Dire or nomic D, nt�velopme APPROVED: City Manager P Attachments: REVIEWED BY DEPT.OF FINANCE 1) Minute Order 2) Consent to Assignment of Consulting Services Agreement 3) Maritime Trust Assignment Letter 4) Transition letter FTZ Solutions to Ernst&Young CONSENT OF ASSIGNMENT OF AGREEMENT NO. A4350 This CONSENT TO ASSIGNMENT OF AGREEMENT NO. A4350 (the"Consent") is made and entered into as of the day of 2001, between the CITY OF PALM SPRINGS ("City"),Maritime Trust/FTZ Solutions ("Assignor") and Ernst& Young LLP ("Assignee") with reference to the following facts and purposes. RECITALS A. City and Assignor are parties to that certain Agreement No. A4350, dated March 21, 2001, including any extensions, renewals or permitted amendments and modifications thereof(collective the "Agreement") concerning Foreign-Trade Zone#236 -Major Boundary Modification Services. B. Pursuant to the Agreement, Assignor has certain rights to assign the Agreement, subject to written consent of the City. C. Assignor wishes to assign to Assignee all of the rights and obligations it has under the Agreement, and Assignor and Assignee desire to obtain the City's specific consent to such assignment. D. Based upon such representation, City wishes to consent to such assignment subject to the terms of this Consent. NOW THEREFORE, in consideration of the mutual promises of the parties hereto and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City, Assignor and Assignee agree as follows: 1. Representations. Assignor represents and certifies the following: a. To the best of Assignor's knowledge, no default presently exists under the Agreement and no state of facts exist which would constitute a default under the Agreement. b. That all of the above recitals are true and correct. 2. Consent and Related Agreements. a. Assignee acknowledges that it has received a copy of the Agreement and is fully familiar with its terms. b. Effective as of the date of this Consent,the City specifically consents to the assignment of the Agreement to Assignee, including all rights and obligations of Assignor thereunder. -1- c. Upon the date of the Consent,Assignee shall assume all obligations of Assignor under the Agreement and shall perform all duties and obligations required to be performed under the Agreement. d. Assignee acknowledges and agrees that the Agreement shall control the obligations of Assignee and City, and that the Agreement shall control over any inconsistent provision in any agreement that may exist between Assignor and Assignee. 3. Due Execution. The person(s) 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 entering into this Agreement does not violate any provision of any other agreement to which said party is bound. 4. Full Force and Effect. The parties further agree that, except as specifically provided in this Consent, the terms of the Agreement shall remain unchanged and in full force an effect. (Signatures on following page) -2- /b A 3 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Consent as of the date written above. ATTEST: "City" CITY OF PALM SPRINGS, a California municipal corporation City Clerk City Manager APPROVED AS TO FORM City Attorney "Assignor" MARITIME TRUST/FTZ SOLUTIONS By Its "Assignee" ERNEST & YOUNG, LLP By Its -3- /a �y 06/10/2001 10:21 612-821-0939 00HSORTECH, IPIC. PAGE 02 MARITIME TRUST FTZ SOLUTIONS June 10`',2001 Mr. George Wyatt City Of Palm Springs 3400 E Tahquitz Canyon Way Palm Springs, C,4 92263 Dear George, Please accept this letter as notification that effective March 315°, 2001 1 accepted a position with the Ernst & Young's International Trade and Customs Practice. I will be building and leading a national foreign-trade zone practice for Ernst& Young. Effective March 31", 2001, I dissolved my company Maritime Ttvst/FTZ Solutions. I remain committed to providing foreign-trade zone consulting services to you and your project, To this regard, I request an assignment of our agreement to Ernst& Young who has agreed to complete the terms and scope of this agreement with my guidance. l look forward to continued opportunities of working with you. If I can provide additional information or if you have any questions please call me at 612.371,6383. Aerel 4821 Szn Juan Avenue,Pair Oaks,CA 95628 Tel:916.967.6237 Chicago,IL Darien,CT Indianapolis,IN Miami,FL Ocean Shares,WA Sacramento, CA Washington, D.C. `D dS JERNST&YOUNG ■ Ernst&Young LLP ■ Phone t212)773-3WO 787 Seventh Avenue www.ey.com New York,New York 10019 April 16, 2001 Mr. George Wyatt City of Palm Springs 3200 Tahquitz Canyon Way Palm Springs, CA 92262 Re: Transition from FTZ Solutions to Ernst& Young LLP Dear Mr. Wyatt: On April 1 of this year, Ernst & Young LLP was pleased to welcome Chris Koelfgen to our Customs and International Trade Practice. '%Pris' many years of experience in Foreign-Trade Zones as an operator and consultant is a welcome addition to our group. t I wish to assure you that Ernst & Young will provide you with the same quality of service that you have come to expect from Chris. Under Chris' direction, other professionals of Ernst & Young's Customs Practice will also serve you with respect to your customs and trade matters. I understand that you have previously agreed to professional services fees for a Major Boundary Modification of$15,000 plus out-of-pocket expenses. I also understand that you have agreed to professional services fees for an FTZ activation of$12,500 plus out-of-pocket expenses. We will, of course,honor this fee commitment to you. I am pleased that Ernst & Young has this opportunity to team with the City of Palm Springs in its Foreign-Trade Zone matters. Should you have any questions regarding this transition or any other customs matter, please call me at(212) 773-1270. Sincerely, ate/ alp Charles Crowley Partner Ernst &Young LLP cc: Chris Koelfgen, Ernst&Young LLP—Minneapolis Lou Mezzo, Ernst& Young LLP—New York Harry Isacoff- Ernst & Young LLP—New York Gerald Shirley, Ernst &Young LLP - Houston Ernst&Young LLP is a member of Ernst&Young International, Ltd. MINUTE ORDER APPROVING THE CONSENT TO ASSIGNMENT OF A CONSULTING SERVICES AGREEMENT FOR CONSULTING SERVICES TO ASSIST WITH THE FOREIGN-TRADE ZONE #236 MAJOR BOUNDARY MODIFICATION (EXPANSION), BETWEEN THE CITY AND MARITIME TRUST/FOREIGN-TRADE ZONE SOLUTIONS, IN THE AMOUNT OF $15,000, TO ERNST&YOUNG, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY. I HEREBY CERTIFY that the Minute Order approving the Consent to Assignment of a Consulting Services Agreement, for consulting services to assist with the Foreign-Trade Zone #236 major boundary modification (expansion), in the amount of $15,000, between the City and Maritime Trust/Foreign-Trade Zone Solutions, to Ernst & Young, in a form acceptable to the City Attorney,was adopted by the City Council of the City of Palm Springs, California in a meeting thereof held on the 20`h day of June, 2001.