HomeMy WebLinkAbout9/21/2011 - STAFF REPORTS - 2L �Z
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DATE: September 21, 2011 CONSENT CALENDAR
SUBJECT: ACCEPT A CONTRIBUTION OF $25,000 FROM THE COUNTY OF
RIVERSIDE AND APPROVE A CONSULTING SERVICES AGREEMENT
WITH ITC DILIGENCE IN THE AMOUNT OF $55,000 TO PROVIDE
ADMINISTRATIVE AND BOUNDARY MODIFICATION SERVICES FOR
THE PALM SPRINGS FOREIGN TRADE ZONE #236
FROM: David H. Ready, City Manager
BY: Community & Economic Development Department
SUMMARY
This action is to accept a contribution of $25,000 from the County of Riverside and
approve a Consulting Services Agreement with ITC Diligence, Inc. in the amount of
$55,000 for the administration and boundary modification of the Palm Springs Foreign
Trade Zone #236.
RECOMMENDATION:
1. Accept $25,000 contribution from the County of Riverside. i
2. Approve the Consulting Services Agreement in the amount of $55,000 for the
administration and boundary modification of Foreign Trade Zone #236.
3. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
FTZ#236 History
In 1999, the City of Palm Springs received a Grant of Authority establishing Foreign
Trade Zone #236. As Grantee of FTZ #236, the City's responsibility includes operating
and maintaining the zone pursuant to its grant from the Foreign Trade Zones Board.
The City has met the activation requirements and is in compliance with the Foreign
Trade Zones Board and U.S. Customs and Border Protection regulations.
ITEM NO.h
City Council Staff Report
September 7, 2011 --Page 2
Foreign Trade Zone Agreements
ITC Diligence has provided FTZ consulting services to the City since 2002. Past
services include activating a site at the City Yard to comply with FTZ regulations;
conducting evaluations and feasibility analysis for potential zone users; prepare annual
reports; conducting educational seminars, and participating in City and valley wide "red
team" meetings. ITC Diligence has also acted as the Zone's Operator since the
activation of the zone in 2005, at no cost to the City. The City and ITC have marketed
the FTZ widely throughout the Coachella Valley since the original designation. Any
business that would have qualified, however, would have had to wait for boundary
modification to be processed to get in the zone.
Alternative Site Framework (ASF)
During the past several months the City of Palm Springs and County of Riverside EDA—
Office of Foreign Trade staff discussed expanding the Zone boundaries under the new
Department of Commerce — FTZ Boards Alternative Site Framework Program (ASF).
The goal of the ASF program is to improve the Grantee's (City of Palm Springs) ability
to bring the benefits of the FTZ to a broad range of companies, and to develop a zone-
site management structure that is flexible, focused and feasible for everyone's benefit.
A new ASF "plan" involves a public process that will result in a more simplified
procedure for future site designations across a broad geographic area. In short, the
ASF program is like a bank account with acreage that can be allotted to "zone
operators" in a service area. If a zone operator does not activate in accordance to FTZ
Board Policy, the acreage goes back into the account for future zone prospects.
Currently, a business located within 60 miles or a 90-minute commute from the zone
boundaries can apply for zone status. Processing a boundary modification can take up
to 18 months. Under the ASF structure, processing times are greatly reduced for
companies located within the service area. This will allow prompt activation for
operation of a general purpose zone offering zone services for multiple users.
The City proposes utilizing the ASF program to reorganize the zone boundaries to
capture businesses in the cities and unincorporated areas to the east and west of the
current zone boundaries. The County has recently completed a similar ASF modification
with the FTZ in San Diego, which benefitted businesses in the Western portion of
Riverside County. (Article attached)
ASF Application
The ASF application is approximately 300-500 pages and is equivalent in work and
scope to the State Enterprise Zone Application, which the City participated in last year.
It will include a transmittal letter to the Department of Commerce FTZ Board, an
executive summary, and numerous exhibits. The exhibits include required
02
City Council Staff Report
September 7, 2011 -- Page 3
Foreign Trade Zone Agreements
documentation, such as legal authority, site description, operation and financing,
economic justification, maps, site plans and letters of local support, as well as
concurrence letters from land owners.
As stated above ITC Diligence has been the City of Palm Springs' consultant for the
Foreign Trade Zone Program since 2002. The County of Riverside EDA-Office of
Foreign Trade has also used ITC Diligence as their consultant on matters pertaining to
foreign trade zones in the western region of the County. The County expressed their
comfort with the City's choice of consultant for the ASF reorganization. The cost to
engage a consultant to prepare the Alternative Site Framework Application typically
ranges from $50,000 to $100,000, depending on the size and complexity of the zone.
Regional Asset
This is a valley-wide effort to maximize the potential benefits for businesses involved in
International Trade currently located outside the current FTZ #236 boundaries to the
east and west and within the City's own geographic boundaries. Although the FTZ #236
has always been a regional asset, and has been promoted as such, very little activity
has occurred under the current structure.
The ASF Program will help to organize the FTZ in a way to make the program more
accessible to a wider range of businesses involved in international trade. The
expansion under the ASF Program is not a competitive application in the sense that
ASF applications are reviewed on their own merits and not competitively against one
another. There are also not a limited number of ASF approvals, such as the case of the
State Enterprise Zone Application. Since August 2011 — 43 ASF Applications have
been approved in the Country and 16 are pending FTZ Board approval. The program is
designed to strengthen and enhance the Grantees' business attraction efforts in their
regions.
Once the work under the Contract is underway staff will return to Council for approval of
the proposed timeline, geographic service area and proposed magnet sites.
FISCAL IMPACT:
The County has committed to participate in paying $25,000 toward the Consultant's fee
for the ASF boundary reorganization. The total cost for the ASF boundary
reorganization is $50,000. The additional $5,000 cost within the Consulting Services
Agreement is for the administration of other zone activity, such as the annual report and
prospect feasibility reviews.
The City's $25,000 contribution toward the ASF Application will be paid out of continuing
03
City Council Staff Report
September 7, 2011 -- Page 4
Foreign Trade Zone Agreements
appropriations from the 2010-11 Fiscal Year from the Economic Recovery Plan
Account. The $5,000 ongoing scope for administrative services is in the 2011-12
Economic Development budget. Plus, there will be $25,000 reimbursement from the
County of Riverside EDA— Office of Foreign Trade.
J�A
Cathy Van orn, Economic Development Jo n R ym Director
Administrator
David H. Ready, City Ma Tom Wilson, istant City Manager
Attachments:
Consulting Services Agreement
Current FTZ Boundary Maps
County of Riverside concurrence letter
Press Enterprise Article — San Diego FTZ Expands to Riverside County
List of Zones Approved Under the ASF
ASF Application and Instructions
04
CONSULTING SERVICES AGREEMENT
ITC Diligence
Foreign Trade Zone #236
THIS AGREEMENT FOR CONSULTING SERVICES ("Agreement") is made and
entered into on , 2011, by and between the City of Palm Springs, a California
charter city and municipal corporation ("City"), and ITC Diligence, Inc., a California
Corporation ("Consultant"). City and Consultant are individually referred to as "Party" and are
collectively referred to as the "Parties".
RECITALS
A. City requires the services of a consultant for the Pahn Springs Foreign Trade
Zone#236—Alternative Site Framework and General Zone Management Services ("Project").
B. Consultant has submitted to City a proposal to provide consulting and
management services to City under the terms of this Agreement.
C. Based on its experience, education, training, and reputation, Consultant is
qualified and desires to provide the necessary services to City for the Project.
D. City desires to retain the services of Consultant for the Project.
In consideration of these promises and mutual agreements, City agrees as follows:
AGREEMENT
1. CONSULTANT SERVICES
1.1 Scope of Services. hi compliance with all terms and conditions of this
Agreement, Consultant shall provide consultant services to City as described in the Scope of
Services/Work attached to this Agreement as Exhibit "A" and incorporated by reference (the
"services" or "work"). Exhibit "A" includes the agreed upon schedule of performance and the
schedule of fees. Consultant warrants that all services and work shall be performed in a
competent, professional, and satisfactory manner consistent with prevailing industry standards.
In the event of any inconsistency between the terms contained in the Scope of Services/Work
and the terms set forth in this Agreement,the terms set forth in this Agreement shall govern.
1.2 Compliance with Law. Consultant services rendered under this Agreement shall
comply with all applicable federal, state, and local laws, statutes and ordinances and all lawful
orders,rules, and regulations.
1.3 Licenses and Permits. Consultant 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.
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1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that
it has carefully considered how the work should be performed and fully understands the
facilities, difficulties, and restrictions attending performance of the work under this Agreement.
2. TIME FOR COMPLETION
The time for completion of the services to be performed by Consultant is an essential
condition of this Agreement. Consultant shall prosecute regularly and diligently the work of this
Agreement according to the agreed upon schedule of performance set forth in Exhibit "A."
Consultant shall not be accountable for delays in the progress of its work caused by any
condition beyond its control and without the fault or negligence of Consultant. Delays shall not
entitle Consultant to any additional compensation regardless of the party responsible for the
delay.
3. COMPENSATION OF CONSULTANT
3.1 Compensation of Consultant. Consultant shall be compensated and reimbursed
for the services rendered under this Agreement in accordance with the schedule of fees set forth
in Exhibit"A". The total amount of Compensation shall not exceed$55,000.00.
3.2 Method of Payment. In any month in which Consultant wishes to receive
payment, Consultant shall submit to City an invoice for services rendered prior to the date of the
invoice, no later than the first working day of such month, in the form approved by City's
finance director. Payments shall be based on the hourly rates set forth in Exhibit "A" for
authorized services performed. City shall pay Consultant for all expenses stated in the invoice
that are approved by City and consistent with this Agreement, within thirty (30) days of receipt
of Consultant's invoice.
3.3 Changes. In the event any change or changes in the Scope of Services/Work is
requested by City, Parties shall execute a written amendment to this Agreement, specifying all
proposed amendments, including,but not limited to, any additional fees. An amendment may be
entered into:
A. To provide for revisions or modifications to documents, work product, or
work, when required by the enactment or revision of any subsequent law; or
B. To provide for additional services not included in this Agreement or not
customarily furnished in accordance with generally accepted practice in Consultant's profession.
3.4 Appropriations. This Agreement is subject to, and contingent upon, funds being
appropriated by the City Council of City for each fiscal year. If such appropriations are not
made,this Agreement shall automatically terminate without penalty to City.
4. PERFORMANCE SCHEDULE
4.1 Time of Essence. Time is of the essence in the performance of this Agreement.
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4.2 Schedule of Performance. All services rendered under this Agreement shall be
performed under the agreed upon schedule of performance set forth in Exhibit "A." Any time
period extension must be approved in writing by the Contract Officer.
4.3 Force Maleure. The time for performance of services to be rendered under this
Agreement may be extended because of any delays due to unforeseeable causes beyond the
control and without the fault or negligence of Consultant, if Consultant notifies the Contract
Officer within ten (10) days of the commencement of such condition. Unforeseeable causes
include, but are not limited to, acts of God or of a public enemy, acts of the government, fires,
earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, and
unusually severe weather. After Consultant notification, the Contract Officer shall investigate
the facts and the extent of any necessary delay, and extend the time for performing the services
for the period of the enforced delay when and if, in the Contract Officer's judgment, such delay
is justified. The Contract Officer's determination shall be final and conclusive upon the parties
to this Agreement.
4.4 Term. Unless earlier terminated in accordance with Section 4.5 of this
Agreement, this Agreement shall continue in full force and effect for a period of 12 months,
commencing on , 2011, and ending on , 2011, unless extended
by mutual written agreement of the parties.
4.5 Termination Prior to Expiration of Term. City may terminate this Agreement
at any time, with or without cause, upon thirty (30) days written notice to Consultant. Where
termination is due to the fault of Consultant and constitutes an immediate danger to health,
safety, and general welfare, the period of notice shall be such shorter time as may be determined
by the City. Upon receipt of the notice of termination, Consultant shall immediately cease all
services except such as may be specifically approved by the Contract Officer. Consultant shall
be entitled to compensation for all services rendered prior to receipt of the notice of tcnnination
and for any services authorized by the Contract Officer after such notice. Consultant may
terminate this Agreement,with or without cause, upon thirty(30) days written notice to City.
5. COORDINATION OF WORK
5.1 Representative of Consultant. The following principal of Consultant is
designated as being the principal and representative of Consultant authorized to act and make all
decisions in its behalf with respect to the specified services and work: David Harlow, President.
It is expressly understood that the experience, knowledge, education, capability, and reputation
of the foregoing principal is a substantial inducement for City to enter into this Agreement.
Therefore, the foregoing principal shall be responsible during the term of this Agreement for
directing all activities of Consultant and devoting sufficient time to personally supervise the
services under this Agreement. The foregoing principal may not be changed by Consultant
without prior written approval of the Contract Officer.
5.2 Contract Officer. The Contract Officer shall be the City Manager or his/her
designee ("Contract Officer"). Consultant shall be responsible for keeping the Contract Officer
fully informed of the progress of the performance of the services. Consultant shall refer any
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decisions that must be made by City to the Contract Officer. Unless otherwise specified, any
approval of City shall mean the approval of the Contract Officer.
5.3 Prohibition Against Subcontracting or Assignment. The experience,
knowledge, education, capability, and reputation of Consultant, its principals and employees,
were a substantial inducement for City to enter into this Agreement. Therefore, Consultant shall
not contract with any other individual or entity to perform any services required under this
Agreement without the City's express written approval. In addition, neither this Agreement nor
any interest may be assigned or transferred, voluntarily or by operation of law, without the prior
written approval of City.
5.4 Independent Contractor. Neither City nor any of its employees shall have any
control over the manner, mode, or means by which Consultant, its agents or employees,perform
the services required, except as otherwise specified. Consultant shall perform all required
services as an independent contractor of City and shall not be an employee of City and shall
remain at all times as to City a wholly independent contractor with only such obligations as are
consistent with that role; however, City shall have the right to review Consultant's work product,
result, and advice. Consultant 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.
5.5 Personnel. Consultant agrees to assign the following individuals to perform the
services in this Agreement. Consultant shall not alter the assignment of the following personnel
without the prior written approval of the Contract Officer. Acting through the City Manager, the
City shall have the unrestricted right to order the removal of any personnel assigned by
Consultant by providing written notice to Consultant.
Name: Title:
David Harlow President
6. INSURANCE
Consultant shall procure and maintain, at its sole cost and expense, policies of insurance
as set forth in the attached Exhibit "B", incorporated herein by reference.
7. INDEMNIFICATION.
7.1 Indemnification. To the fullest extent permitted by law, Consultant shall
defend (at Consultant's sole cost and expense), indemnify, protect, and hold harmless City, its
elected officials, officers, employees, agents, and volunteers (collectively the "Indemnified
Parties"), from and against any and all liabilities, actions, suits, claims, demands, losses, costs,
judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses
including legal costs and attorney fees (collectively "Claims"), including but not limited to
Claims arising from injuries to or death of persons (Consultant's employees included), for
damage to property, including property owned by City, from any violation of any federal, state,
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ITC Diligence U V
or local law or ordinance, and from errors and omissions committed by Consultant, its officers,
employees, representatives, and agents, that arise out of or relate to Consultant's performance
under this Agreement. This indemnification clause excludes Claims arising from the sole
negligence or willful misconduct of the City, its elected officials, officers, employees, agents,
and volunteers. Under no circumstances shall the insurance requirements and limits set forth in
this Agreement be construed to limit Consultant's indemnification obligation or other liability
under this Agreement. Consultant's indemnification obligation shall survive the expiration or
earlier termination of this Agreement until all actions against the Indemnified Parties for such
matters indemnified are fully and finally barred by the applicable statute of limitations or, if an
action is timely filed, until such action is final. This provision is intended for the benefit of third
party Indemnified Parties not otherwise a party to this Agreement.
7.2 Desien Professional Services Indemnification and Reimbursement. If the
Agreement is determined to be a "design professional services agreement' and Consultant is a
"design professional" under California Civil Code Section 2782.8, then:
A. To the fullest extent permitted by law, Consultant shall indemnify, defend
(at Consultant's sole cost and expense), protect and hold harmless City and its elected officials,
officers, employees, agents and volunteers and all other public agencies whose approval of the
project is required, (individually"Indemnified Party'; collectively"Indemnified Parties") against
any and all liabilities, claims,judgments, arbitration awards, settlements, costs, demands, orders
and penalties (collectively"Claims"), including but not limited to Claims arising from injuries or
death of persons (Consultant's employees included) and damage to property, which Claims arise
out of, pertain to, or are related to the negligence, recklessness or willful misconduct of
Consultant, its agents, employees, or subcontractors, or arise from Consultant's negligent,
reckless or willful performance of or failure to perform any term, provision, covenant or
condition of this Agreement ("Indemnified Claims"), but Consultant's liability for Indemnified
Claims shall be reduced to the extent such Claims arise from the negligence, recklessness or
willful misconduct of the City and its elected officials, officers, employees, agents and
volunteers.
B. The Consultant shall require all non-design-professional sub-contractors,
used or sub-contracted by Consultant to perform the Services or Work required under this
Agreement, to execute an Indemnification Agreement adopting the indemnity provisions in sub-
section 7.1 in favor of the Indemnified Parties. In addition, Consultant shall require all non-
design-professional sub-contractors, used or sub-contracted by Consultant to perform the
Services or Work required under this Agreement, to obtain insurance that is consistent with the
Insurance provisions as set forth in this Agreement, as well as any other insurance that may be
required by Contract Officer.
8. RECORDS AND REPORTS
8.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer
reports concerning the performance of the services required by this Agreement, or as the
Contract Officer shall require.
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8.2 Records. Consultant shall keep complete, accurate, and detailed accounts of all
time, costs, expenses, and expenditures pertaining in any way to this Agreement. Consultant
shall keep such books and records as shall be necessary to properly perform the services required
by this Agreement and enable the Contract Officer to evaluate the performance of such services.
The Contract Officer shall have full and free access to such books and records at all reasonable
times, including the right to inspect, copy, audit, and make records and transcripts from such
records.
8.3 Ownership of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Consultant in the performance of this Agreement
shall be the property of City. Consultant shall deliver all above-referenced documents to City
upon request of the Contract Officer or upon the termination of this Agreement. Consultant shall
have no claim for further employment or additional compensation as a result of the exercise by
City of its full rights or ownership of the documents and materials. Consultant may retain copies
of such documents for Consultant's own use. Consultant shall have an unrestricted right to use
the concepts embodied in such documents.
8.4 Release of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Consultant in the performance of services under this
Agreement shall not be released publicly without the prior written approval of the Contract
Officer.
8.5 Cost Records. Consultant shall maintain all books, documents, papers, employee
time sheets, accounting records, and other evidence pertaining to costs incurred while performing
under this Agreement. Consultant shall make such materials available at its offices at all
reasonable times during the term of this Agreement and for three (3) years from the date of final
payment for inspection by City and copies shall be promptly furnished to City upon request.
9. ENFORCEMENT OF AGREEMENT
9.1 California Law. This Agreement shall be construed and interpreted both as to
validity and to performance of the parties in accordance with the laws of the State of California.
Legal actions concerning any dispute, claim, or matter arising out of or in relation to this
Agreement shall be instituted in the Superior Court of the County of Riverside, State of
California, or any other appropriate court in such county, and Consultant covenants and agrees to
submit to the personal jurisdiction of such court in the event of such action.
9.2 Interpretation. This Agreement shall be construed as a whole according to its
fair language and common meaning to achieve the objectives and purposes of the Parties. The
terns of this Agreement are contractual and the result of negotiation between the Parties.
Accordingly, any rule of construction of contracts (including, without limitation, California Civil
Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be
employed in the interpretation of this Agreement. The caption headings of the various sections
and paragraphs of this Agreement are for convenience and identification purposes only and shall
not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.
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ITC Diligence 1
9.3 Waiver. No delay or omission in the exercise of any right or remedy of a non-
defaulting party on any default shall impair such right or remedy or be construed as a waiver.
No consent or approval of City shall be deemed to waive or render unnecessary City's consent to
or approval of any subsequent act of Consultant. Any waiver by either party of any default must
be in writing. No such waiver shall be a waiver of any other default concerning the same or any
other provision of this Agreement.
9.4 Ri2hts and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the
parties are cumulative. The exercise by either party of one or more of such rights or remedies
shall not preclude the exercise by it, at the same or different times, of any other rights or
remedies for the same default or any other default by the other party.
9.5 Le2al Action. hi addition to any other rights or remedies, either party may take
legal action, in law or in equity, to cure, correct, or remedy any default, to recover damages for
any default, to compel specific performance of this Agreement, to obtain injunctive relief, a
declaratory judgment, or any other remedy consistent with the purposes of this Agreement.
10. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION
10.1 Non-Liability of City Officers and Employees. No officer or employee of City
shall be personally liable to the Consultant, or any successor-in-interest, in the event of any
default or breach by City or for any amount which may become due to the Consultant or its
successor, or for breach of any obligation of the terms of this Agreement.
10.2 Conflict of Interest. No officer or employee of the City shall have any direct or
indirect financial interest in this Agreement nor shall any such officer or employee participate in
any decision relating to the Agreement which effects their financial interest or the financial
interest of any corporation, partnership, or association in which he/she is, directly or indirectly,
interested in violation of any state statute or regulation. Consultant warrants that Consultant has
not paid or given, and will not pay or give, any third party any money or other consideration in
exchange for obtaining this Agreement.
10.3 Covenant Aeainst Discrimination. Consultant covenants that, by and for itself,
its heirs, executors, assigns, and all persons claiming under or through them, that there shall be
no discrimination or segregation in the performance of or in connection with this Agreement
regarding any person or group of persons on account of race, color, creed, religion, sex, marital
status, disability, sexual orientation,national origin, or ancestry.
11. MISCELLANEOUS PROVISIONS
11.1 Notice. Any notice, demand, request, consent, approval, or communication that
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 pre-paid, first-class mail to the address set forth
below. Notice shall be deemed communicated seventy-two (72) hours from the time of mailing
if mailed as provided in this Section. Either party may change its address by notifying the other
party of the change of address in writing. {
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ITC Diligence
To City: City of Palm Springs
Community& Economic Development
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
To Consultant: David Harlow, President
ITC Diligence, Inc.
15354 Stafford Street
City of Industry, CA 91748
11.2 Integrated Agreement. This Agreement contains all of the agreements of the
parties and supersedes all other written agreements.
11.3 Amendment. No amendments or other modifications of this Agreement shall be
binding unless through written agreement by all Parties.
11.4 Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such a manner as to be effective and valid under applicable law. In the event that
any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this
Agreement shall be declared invalid or unenforceable by valid judgment or decree of a court of
competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining
phrases, sentences, clauses,paragraphs, or sections of this Agreement, which shall be interpreted
to carry out the intent of the parties.
11.5 Successors in Interest. This Agreement shall be binding upon and inure to the
benefit of the Parties' successors and assignees.
11.6 Third Party Beneficiary. Except as may be expressly provided for in this
Agreement, nothing contained in this Agreement is intended to confer, nor shall this Agreement
be construed as conferring, any rights, including, without limitation, any rights as a third-party
beneficiary or otherwise, upon any entity or person not a party to this Agreement.
11.7 Recitals. The above-referenced Recitals are hereby incorporated into the
Agreement as though fully set forth in this Agreement and each Party acknowledges and agrees
that such Party is bound, for purposes of this Agreement,by the same.
11.8 Authority. The persons executing this Agreement on behalf of the Parties
warrant that they are duly authorized to execute this Agreement on behalf of Parties and that by
so executing this Agreement the Parties are formally bound to the provisions of this Agreement.
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates
stated below.
"CITY"
City of Palm Springs
Date: By:
David H. Ready
City Manager
APPROVED AS TO FORM: ATTEST
By: By:
Douglas C. Holland, James Thompson,
City Attorney City Clerk
"CONSULTANT"
(ITC Diligence, hie)
Date: By :
David Harlow, President
Date:
(name)
(secretary)
13
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ITC Diligence
CAUFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of Califemia
County of
On. before rite,Dole HNe hiaM Namf,mdTR,of Ora(mw
personally appeared s1 m sa��sl
who proved to me on the basis of satisfactory evidence to
be tte perscri whose name(s) Were,subscribed to the
within Instrument and acknowledged to me that
halshelthey executed the same in Kist herltteir authorized
capacity(ies),and that by hWhe0heir signa`tuie(s)on the
instrumerd the person(s), or the entity upon behalf of
which the person($)acted,executed the InWumenL
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is
true and correct.
WrMESS my hand and official seal.
Pima M Signature
Imy Sal Abaco 3Wamdk,,f%WyftW
OP77ONIAL
7twugh the tnfon 90"b0bW 1$nor raq*W by taw.R nay prows WkWA W to Parsers refyltrg an rho document
and mvdd prevent fraudulent renr:,mlard reaNa:hment of this Iwm to another ddctment.
Description of Attached Document
Title or Type of Document:
Document Date: - Number of Pages:
Signer(s)Other Than Named Abova:
Capec"Oes)Claimed by Signers)
Signer's Name:_ Signer's Name: ......._._.
D individual ❑Individual
D CorForaieOfficer—Titls(s): O Corporate Officer—Thie(s):_.
❑ Partner—D United D General D Partner—❑Limited ❑General
❑ Attorney in Fact D Attorney in Fait
❑ Trustee Top of;numb bete D Trustee I ray d lmxNx h om
❑ Guardian or Conservator ❑Guardian or Conservator
D Other D Other.
Signer Is Representing; Signer Is Rapresentng:
--
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10 Revised:6/16/10 1 4
ITC Diligence
EXHIBIT "A"
Scope of Services
ITC Diligence shall provide professional consulting service to further the goals of the
Foreign Trade Zone Program and international trade in the City of Palm Springs. ITC
services shall include, but are not be limited to the following:
General Zone Management Services
• Annual Reports: Prepare annual report in compliance with Foreign Trade
Zones Regulations
• Zone Operation: Operate activated zone space in compliance with Custom
and Border Protection Regulations.
• Users Agreement and Tariff Schedule: review and recommend changes
to update to current rate standards
• Zone Prospects: Interface with potential zone users and conduct cost
benefits analysis to determine FTZ feasibility.
• Sub-Zone Prospects: Interface with sub-zone prospects applying for FTZ
Sub-zone status.
• Special meetings: From time to time participate in special meetings on
behalf of or with the City (Grantee) to further the goals of the foreign trade
zones program.
• Technical Representation: Interface with US Customs and Border Project
Agency and Foreign Trade Zones Board as needed.
• Quarterly Audits: Conduct quarterly audits of all operators to ensure
compliance, if necessary.
Alternative Site Framework
• Boundary Expansions Considerations: Conduct training session with
other valley Cities on benefits of the new Alternative Site Framework
(ASF) Program, a streamline process for boundary expansions.
• Work with City of Palm Springs, Coachella Valley Economic Partnership,
all eight Cities in the valley and County of Riverside to collaborate on ASF
and identify ASF Service Area and Magnet Sites for the boundary
expansions.
• Prepare ASF application for FTZ Board review, including Letter of
Transmittal; Executive Summary, Exhibits 1-5 (Legal authority, site
description, operation and financing, economic justification,
manufacturing, maps, blueprints, site plans, and local support.
o Identify, map, and outline the FTZ 236's service area
o Identify, map, and obtain letters of interest and support with
landowners and businesses for"Magnet Sites".
I] Revised:6/16110 15
ITC Diligence
o Lobby representatives of the FTZ Board and Customs for support
of the ASF Application.
o Work with the County of Riverside to secure a County Support
Letter.
o Create and develop the Executive Summary and Economic
Snapshot of the Coachella Valley.
o Obtain Grantee authority documentation such as City Charter, FTZ
Board Order, etc...
o Draft Executive Summary, Transmittal Letter and additional exhibits
o Draft of Part One: Scope of authority to expand and justification for
expansion.
o Draft of Part Two: Scope of authority to create and justify magnet
sites along with supporting documentation.
o Draft of Part Three: Scope of authority to create and justify usage
driven sites along with supporting documentation.
o Draft of Conclusion: Further identify and substantiate the operation,
financing of the economic justification for distribution and
manufacturing of the zone project.
• Submission of application to the FTZ Board for review and approval with
ITC representing Palm Springs as Liaison of application process.
0 60-day period for review between FTZB and ITC/Palm Springs
0 90-day public comment period / rebuttal to positive and negative
comments effecting the application
o Request/ Receipt of Customs Concurrence Letter
0 60-day period of final review with FTZ Board Staff and ITC/Palm
Springs
0 30-day period for FTZB to vote on final approval of application
• Coordinate Receipt of approval letter from FTZ Board.
• Advise and Assist as necessary.
12 Revised:6/16110 16
ITC Diligence
Fee Structure
General Zone Management
Consultant shall be paid on a per occurrence basis, billed within 30-days of services
provided, based on $150.00 per hour; not to exceed $5,000 during contract year.
Alternative Site Framework (ASF)
Consultant shall be paid 50% of the contract fee upon execution of the Consultants
Service Agreement.
Consultant shall be paid 25% of the contract fee upon submittal of the ASF Application
to the Department of Commerce-Foreign Trade Zones Board. Timeline to complete the
application, including obtaining all documents and support letters is six months or less.
Consultant shall be paid the remaining 25% up formal notification of ASF Application
approval by the Department of Commerce-Foreign Trade Zones Board.
ASF consultant fee total shall not exceed $50,000.00.
Other Charges
Additional services beyond the scope of this agreement will be agreed upon in advance
and charged at a rate not to exceed $150.00 per hour.
Out-of-pocket expenses will be reimbursable at cost.
All print production of materials and related costs will be billed directly to the City by
either the service provider or consultant. The City shall approve all costs prior to
services.
13 Revised:6/16110 17
ITC Diligence
EXHIBIT "B"
INSURANCE PROVISIONS
Including
Verification of Coverage,
Sufficiency of Insurers,
Errors and Omissions Coverage,
Minimum Scope of Insurance,
Deductibles and Self-Insured Retentions, and
Severability of Interests (Separation of Insureds)
14 Revised:6/16/10 18
ITC Diligence
INSURANCE
1. Procurement and Maintenance of Insurance. Consultant shall procure and
maintain public liability and property damage insurance against all claims for injuries against
persons or damages to property resulting from Consultant's performance under this Agreement.
Consultant shall procure and maintain all insurance at its sole cost and expense, in a form and
content satisfactory to the City, and submit concurrently with its execution of this Agreement.
Consultant shall also carry workers' compensation insurance in accordance with California
workers' compensation laws. Such insurance shall be kept in full force and effect during the
term of this Agreement, including any extensions. Such insurance shall not be cancelable
without thirty(30) days advance written notice to City of any proposed cancellation. Certificates
of insurance evidencing the foregoing and designating the City, its elected officials, officers,
employees, agents, and volunteers as additional named insureds by original endorsement shall be
delivered to and approved by City prior to commencement of services. The procuring of such
insurance and the delivery of policies, certificates, and endorsements evidencing the same shall
not be construed as a limitation of Consultant's obligation to indemnify City, its elected officials,
officers, agents, employees, and volunteers.
2. Minimum Scope of Insurance. The minimum amount of insurance required
under this Agreement shall be as follows:
1. Comprehensive general liability and personal injury with limits of at least
one million dollars ($1,000,000.00) combined single limit coverage per occurrence and two
million dollars ($2,000,000) general aggregate;
2. Automobile liability insurance with limits of at least one million dollars
($1,000,000.00)per occurrence;
3. Professional liability (errors and omissions) insurance with limits of at
least one million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000)
annual aggregate is:
required
x is not required;
4. Workers' Compensation insurance in the statutory amount as required by
the State of California and Employer's Liability Insurance with limits of at least one million
dollars $1 million per occurrence. If Consultant has no employees, Consultant shall complete the
City's Request for Waiver of Workers' Compensation Insurance Requirement form.
3. Primary Insurance. For any claims related to this Agreement, Consultant's
insurance coverage shall be primary with respect to the City and its respective elected officials,
officers, employees, agents, and volunteers. Any insurance or self-insurance maintained by City
and its respective elected officials, officers, employees, agents, and volunteers shall be in excess
of Consultant's insurance and shall not contribute with it. For Workers' Compensation and
Employer's Liability Insurance only, the insurer shall waive all rights of subrogation and
15 Revised:6n6/10 n
ITC Diligence J
contribution it may have against City, its elected officials, officers, employees, agents, and
volunteers.
4. Errors and Omissions Coverage. If Errors & Omissions Insurance is required,
and if Consultant provides claims made professional liability insurance, Consultant shall also
agree in writing either(1) to purchase tail insurance in the amount required by this Agreement to
cover claims made within three years of the completion of Consultant's services under this
Agreement, or (2) to maintain professional liability insurance coverage with the same carrier in
the amount required by this Agreement for at least three years after completion of Consultant's
services under this Agreement. Consultant shall also be required to provide evidence to City of
the purchase of the required tail insurance or continuation of the professional liability policy.
5. Sufficiency of Insurers. Insurance required in this Agreement shall be provided
by authorized insurers in good standing with the State of Califomia. Coverage shall be provided
by insurers admitted in the State of California with an A.M. Best's Key Rating of B++, Class
VII, or better,unless otherwise acceptable to the City.
6. Verification of Coverage. Consultant shall furnish City with both certificates of
insurance and endorsements, including additional insured endorsements, effecting all of the
coverages required by this Agreement. The certificates and endorsements are to be signed by a
person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be
received and approved by the City before work commences. City reserves the right to require
Consultant's insurers to provide complete, certified copies of all required insurance policies at
any time. Additional insured endorsements are not required for Errors and Omissions and
Workers' Compensation policies.
Verification of Insurance coverage may be provided by: (1) an approved General and/or
Auto Liability Endorsement Form for the City of Palm Springs or(2) an acceptable Certificate of
Liability Insurance Coverage with an approved Additional Insured Endorsement with the
following endorsements stated on the certificate:
1. "The City of Palm Springs, its officials, employees, and agents are named as an
additional insured... " ("as respects City of Palm Springs Contract No. " or 'for any and all
work performed with the City"may be included in this statement).
2. "This insurance is primary and non-contributory over any insurance or self-
insurance the City may have..." ("as respects City of Palm Springs Contract No._" or 'for any
and all work performed with the City" may be included in this statement).
3. "Should any of the above described policies be canceled before the expiration
date thereof, the issuing company will mail 30 days written notice to the Certificate Holder
named." Language such as, "endeavor to" mail and "but failure to mail such notice shall impose
no obligation or liability of any kind upon the company, its agents or representative" is not
acceptable and must be crossed out.
16 Revised:6/16/10 20
ITC Diligence
4. Both the Workers' Compensation and Employers' Liability policies shall contain
the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees,
agents, and volunteers.
In addition to the endorsements listed above, the City of Palm Springs shall be named the
certificate holder on the policies.
All certificates of insurance and endorsements are to be received and approved by the City
before work commences. All certificates of insurance must be authorized by a person with
authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter.
Failure to obtain the required documents prior to the commencement of work shall not waive the
Consultant's obligation to provide them.
7. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City prior to commencing any work or
services under this Agreement. At the option of the City, either (1) the insurer shall reduce or
eliminate such deductibles or self-insured retentions with respect to the City, its elected officials,
officers, employees, agents, and volunteers; or (2) Consultant shall procure a bond guaranteeing
payment of losses and related investigations, claim administration, and defense expenses.
Certificates of Insurance must include evidence of the amount of any deductible or self-insured
retention under the policy. Consultant guarantees payment of all deductibles and self.-insured
retentions.
8. Severability of Interests (Separation of Insureds). This insurance applies
separately to each insured against whom claim is made or suit is brought except with respect to
the limits of the insurer's liability.
17 Revised:6/16/10 21
ITC Diligence 6
Site Description
FTZ 236
Palm Springs, California
A(27f) -27-2002
Site 1 : (902 acres) - Palm Springs International Airport, 3400 E.
Tahquitz Canyon Way, Palm Springs; includes two parcels (39
acres) as follows :
- 4 acre parcel adjacent to the northwestern boundary of the
airport site, which includes two warehouses located on 2 acres at
410 N. Farrell Drive and 2 acres on 820 Research Drive;
- 35-acre Gene Autry Trail Business Park, immediately adjacent to
the southeastern boundary of the airport . Both parcels are owned
by private entities.
Site 2 : (14 acres) - industrial development area within the 18-
acre Palm Springs Rail Station, 63950 Palm Springs Station Road,
Palm Springs.
*indicates changes made through this action.
22
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2 4
' Board of Supervisors
a
District 1 Bob Buster
t, Vice-Chairman 951-955-1010
District 2 John F.Tavagliohe
951-955-1020
G o u N i t District 3 Jeff Stone
R S I D E 951-955-103
District 4 John J.Benoit
� - 951-955-1040
r.e:...:.;..,;;.. District 5 Marion Ashley
Chairman 951-955-1050
August 16, 2011
The Honorable Steve Pougnet
Mayor of the City of Palm Springs
and members of the city council
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262
Dear Mayor and members of the city council:
Please be advised that the Riverside County Board of Supervisors have taken formal action to
support the expansion of your Foreign Trade Zone 236. The action of the Board of Supervisors
also directs we convey this letter and attached legislative documents to your attention.
Additionally, the Board has directed our agency to allocate $25,000.00 to assist the city in its
effort to expand the Foreign Trade Zone.
Thank you for your willingness to expand your Foreign Trade Zone and we look forward to
working with you and your staff.
Sincerely,
CTh L. man
Commissioner, Office of Foreign Trade
County of Riverside/EDA
cc: Supervisor John Benoit
Supervisor Marion Ashley
John Raymond, Director/EDD City of Palm Springs
1 Attach: Form 11A-Foreign Trade Zone Expansion
County Administrative Center• Fifth Floor•4080 Lemon Street • Riverside,California 92501 Internet—htta://www countvofriverside us 5
•
SUBMITTAL TO THE BOARD OF SUPERVISORS ,.
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA ' ,_%
FROM: Supervisor Marion Ashley SUBMITTAL DATE:
Supervisor John J. Benoit August 8, 2011
SUBJECT: Expansion of Foreign Trade Zone 236
RECOMMENDED MOTION: That the Board of Supervisors:
1) Direct the EDA Office of Foreign Trade to advocate for the expansion- of Foreign Trade Zone
236 within the federal and state governments and to utilize legislative advocates as necessary
2) Direct the Assistant County Executive Officer-EDA, Managing Director EDA, and the
Commissioner of Foreign Trade-EDA to convey the formal support of this board to the mayor,
counci, city manager and staff of the City of Palm Springs
0
3 Direct our Economic Development
pm Agency to contribute $ 25,000.00 from existing funds to the
E City of Palm Springs to offset the cost in preparation and submittal of the Foreign Trade Zone
application to the federal government
4 Direct the Assistant CountyExecutive Officer-EDA, Manag
ing Director EDA, and the
Commissioner of Foreign Trade to work with the City of Palm Springs to ensure the Foreign
Trade Zone expands westward to include the corporate limits of the City of Banning and
eastward to include the City of Coachella. With the intent of creating a FTZ that encompasses
the majority of the Coachella Valley and significant portions of Cabazon, Whitewater, and
Morongo tribal lands.
BACKGROUND: Commences on Page 2
e���t, I
rionAshley �— Joh BenotV
County Supervisor, a District Co u Supervisor, 40' District
Prev.Agn. Ref.: District: 4, 5 Agenda Number.
6
2R
Board of Supervisors
Expansion of Foreign Trade Zone 236
August 8, 2011
Page 2
BACKGROUND: Foreign Trade Zones are a tremendous benefit to our local business community.
They provide duty and excise tax deferral, duty and excise tax avoidance, and re-exports pay no
customs duties- Zone to zone transfers of products are duty free, businesses are eligible for
inverted tariffs and duty fee reductions. Business benefits from reduced merchandise fee
processing;they pay no inventory taxes, and enjoy quota timing advantages, Since March 2009 the
County of Riverside has worked aggressively to add to existing foreign trade zones and worked
cooperatively with the City of San Diego to expand into Southwest County. We advocated for the
expansion and proper staffing of Foreign Trade Zone 244 and have aided business in the process.
The expansion of Foreign Trade Zone 236, the oldest FTZ in the county, will be of benefit to
businesses in the unincorporated areas of the county and all nine Coachella Valley cities. The
expansion also includes a westward push to include the entire corporate limits of the City of
Banning,the Morongo tribal lands, Cabazon,and Whitewater. Expansions are limited at this time by
the available of a Department of Homeland Security inspector to service businesses within the FTZ.
Expanding this FTZ will assist in business attraction and retention efforts across both the 4 h and 5
Supervisoriai Districts.
27
FMn 11 PMFN!AfR
09:41 AM PDT on Wednesday,June 8,2011
By JACK KATZANEK
The Press-Enterprise
San Diego has agreed to expand its Foreign Trade Zone to southwest Riverside County, a
move that could give the cities in that area advantages in recruiting manufacturers and
other businesses.
The move, which was announced by county officials Monday, will allow Temecula,
Murrieta and Lake Elsinore to offer financial incentives to companies that import and
export products. Riverside County, which has been trying to make it easier for companies
to operate internationally, now has three trade zones.
"We sort of look at this as a golden triangle for manufacturers," said Tom Freeman, the
county's commissioner for the Office of Foreign Trade.
Foreign Trade Zones essentially allow cities and counties to move customs facilities
away from ports and airports,where they're typically located. The advantage for
manufacturers is that they can import raw materials straight to a facility within a zone and
assemble them for export without paying import duties and other fees.
That could encourage these companies to look at the southwest cities when considering a
new location.
Freeman said companies that want to be part of a Foreign Trade Zone usually have to pay
a membership fee of between $5,000 and $8,000.
"I haven't heard about anyone complaining about the fee. It's easily offset by the cost
savings," Freeman said. "Also, it's believed it stops businesses that might be considering
relocation to take advantage of Foreign Trade Zones in other cities."
There are close to 400 such zones in the country. The one at the former March Air Force
Base will have a federally provided U.S. Customs and Border Protection agent. Other
zones are in the Palm Shrines and Victorville areas.
Freeman said Abbott Laboratories,which had wanted to be part of the March zone, made
the approach to San Diego officials, and the company will probably be the first
participant to sign up. Abbott manufactures stents used to treat heart ailments and its
Temecula factory--the Inland area's largest in terms of employment -- exports the stents
across the Western Hemisphere.
San Diego was willing to share its Foreign Trade Zone with the southwest cities because .
many of its residents commute to southwest Riverside County, said Lydia Moreno,
business incentive program manager for the mayor's office.
28
"This will secure not only jobs, but it will help advance a regional approach to trade,"
Moreno said.
The move was popular in Murrieta because the city has been expanding its reach to
include international commerce and because it could not participate in the March zone,
said Bruce Coleman, the economic development director.
"We'll get together with Temecula and San Diego to see how this works," Coleman said.
"We'll want companies we talk to to know the specific benefits."
Reach Jack Katzanek at 951-368-9553 or at ikatzanek@PE.com
29
INSTRUCTIONS AND DEFINITIONS FOR GENERAL-PURPOSE
ZONE REORGANIZATION/EXPANSION APPLICATIONS
After having read these instructions, if you have questions on any aspect of the
application process, do not hesitate to contact the FTZ Staff at (202) 482-2862.
General: The application formats consists of a series of questions to answer. (For ease
of use, each part of the formats is provided as a MS Word document.) Leave each
question in place in the document (including its identifying number) and provide your
response directly below each question.
Submission of Draft Application: We advise all applicants to send us a complete draft of
their application. Complete drafts must include all required answers and documents.
The only documents that may be omitted from the draft application — if they are not yet
ready— are the final versions of the grantee's resolution and application (transmittal)
letter. However, the draft application should include draft copies of the resolution and
application (transmittal) letter so that they can be checked for adequacy. We are happy
to receive drafts via e-mail (ftz@trade.gov) to expedite the feedback process.
Confirm Your Existing Sites: All applicants should contact the FTZ Staff at an early
stage in the process of drafting an application to confirm that the grantee's records
regarding existing FTZ sites match the FTZ Board's records (including the descriptions
of the individual sites).
Sites versus Parcels: A "site" is comprised of one or more parcels of land that share an
identity (for example, parcels that are within a single industrial park or portlairport
complex). If parcels do not share an identity, then they must be treated as separate
sites.
Zoning: Sites with inappropriate zoning — such as agricultural, retail, or residential — are
not eligible for FTZ status and should not be proposed in any application.
Site Ownership: If the grantee or proposed operator does not own the proposed site,
provide either evidence of the proposed operator's right to use the property (such as a
signed letter from the proposed operator on its letterhead attesting to its right to use the
property) or a letter from the owner of the property concurring on the proposed FTZ
designation.
Adjacency Requirement: The FTZ Act and Regulations require each zone site to be
within or adjacent to a U.S. Customs and Border Protection (CBP) port of entry (as
listed and defined in part 101 of the CBP Regulations - 19 CFR 101.3). That
requirement can be satisfied if the zone site is: 1) within the limits of a CBP port of entry
30
or 2)within 60 statute miles or within 90 minutes' driving time from the outer limits of the
boundaries of a CBP port of entry, as verified by the CBP port director.
Site Numbering: Use new numbers for wholly new sites. For example, if your FTZ no
longer has a Site 2, do not use number 2 for a new site - use the next number in the
sequence of unused numbers. However, modification of an existing site can use the
number the site has already been assigned.
Certified copy of state legislation: The application formats require a "certified copy of
the state enabling legislation regarding FTZs" —this is to satisfy the requirement in
Section 400.24(d)(1)(i) of the FTZ Board's regulations. There are two options to satisfy
this requirement. You may submit either 1) a copy certified by an appropriate state
official or 2) a copy printed from the web site that is the state's official source for such
information. For option # 2, the grantee must clearly indicate -- in the application
(transmittal) letter for example --that the copy provided is of the relevant legislation in
effect at the time of the application's submission to the FTZ Board.
Pertinent Sections of Grantee's Charter: The application formats require a copy of the
"sections of the grantee's charter (or organization papers)that are pertinent to FTZs"—
this is to satisfy the requirement in Section 400.24(d)(1)(ii) of the FTZ Board's
regulations. While some grantee organizations' charters have sections specific to FTZs,
other grantee organizations' charters only have general or broader authority (that is,
nothing specific to FTZs). In that case, the applicant should provide a copy of the
section(s) of the grantee's charter that establish the general authority under which the
organization applied for its grant of authority to establish a FTZ.
Certified copy of grantee resolution: The application formats require "a certified copy of
a resolution authorizing the grantee official to sign the application letter'—this is to
satisfy the requirement in Section 400.24(d)(1)(iii) of the FTZ Board's regulations. The
resolution must be certified by an official of the grantee organization who is in an
appropriate position of responsibility to make such a certification.
Evidence of current legal standing (only applicable to non-public grantees): If the
application involves one of the small number of grantees that are non-public
corporations, it also will need to include evidence of the corporation's current legal
standing.
Format of Final Version of Application: Hard copies of the final version of your
application can be stapled or- if the application is too thick to be stapled - submitted in a
three-ring binder (not spiral-bound). Use of a three-ring binder greatly facilitates
replacement of pages, when necessary.
Number of Copies: Please submit one original, three paper copies and an electronic
copy (Adobe PDF format preferred). If you cannot submit a PDF-format copy, you may
submit a MS Word-format copy. The electronic copy must have all pages in black and
white (including scans of the signed versions of all letters) except for maps, which must
31
be in color. If you have any questions, please contact Elizabeth Whiteman at
Elizabeth.Whiteman@trade.gov or (202) 482-0473.
Filing Fees: The FTZ Regulations require a $1,600 filing fee for an "Expansion
application. However, the $1,600 fee is not applicable to an ASF reorganization
application that simply proposes to establish the grantee's "Service Area"while
maintaining or reducing existing sites (in other words, does not propose at this time to
bring FTZ designation to any specific previously undesignated land/building). If the
application does request FTZ designation for any specific previously undesignated
land/building, then the $1,600 fee applies. The check should be made payable to "U.S.
Department of Commerce ITA." The Federal Tax ID number is 91-2014781.
INSTRUCTIONS SPECIFIC TO THE ALTERNATIVE SITE FRAMEWORK
Introduction:
The standard format for an application to reorganize an existing FTZ under the
Alternative Site Framework (ASF) includes several relatively straightforward steps. It
has been designed to minimize the burden on a grantee (particularly for new
documentation). Because justification for existing FTZ sites was provided in a prior
application(s), you generally will not be asked to rejustify existing sites.
The ASF application format is comprised of three parts:
• Part One is all you will need to complete if the proposed reorganization of your
FTZ only involves existing sites --with no proposed changes to boundaries --for
which you will now be requesting Magnet designation (see definitions below).
• Part Two is needed only if you propose Magnet designation for sites that are new
or that involve modifications to the boundaries of existing sites.
• Part Three is used only if you propose Usage-Driven designation for one or more
sites.
If you have questions on any aspect of the application process, do not hesitate to
contact the FTZ Staff at (202) 482-2862.
Definition of Key ASF-related Terms:
"Service Area" is the geographic area (such as specific counties) where you intend to be
able to propose future FTZ sites. If approved under the ASF, your zone could serve
sites throughout the Service Area based on companies' needs for FTZ designation.
"Magnet" sites are sites intended to attract multiple potential FTZ operators/users.
32
"Usage-Driven" sites are designated to meet a specific operator/user's present need for
FTZ designation (rather than to attract potential future operators/users). A Usage-
Driven site is tied to the specific operator/user for which it was designated and could not
be used by any other entity. However, a site vacated by one operator/user could easily
be designated as a Usage-Driven site for another operator/user through an additional
simple minor boundary modification (MBM) action.
"Activation Limit" is a cap on the amount of space that can be in CBP "activated" status
simultaneously. The FTZ Board's practice involves a 2,000-acre activation limit for any
FTZ grantee.
A "Sunset Limit"for a site means FTZ designation self-removes if there is no FTZ
activity at the site before the sunset date. For Magnet sites, the default sunset period is
5 years (with variation possible based on circumstances, including possible permanent
designation for one Magnet site). Usage-Driven sites have a three-year sunset period.
FTZ activity at a site during the sunset period resets the sunset date for an additional 5
years (Magnet) or additional 3 years (Usage-Driven).
"Transitional Phase" is an initial period allowed for any grantee with more than six
existing sites (the general goal for maximum number of Magnet sites under the ASF).
The Transitional Phase enables a grantee to bring any number of existing FTZ sites into
the ASF as Magnet sites without having to justify exceeding the ASF's general goals.
"Sunset" limits (with a five-year default period) would result in the automatic removal of
sites which had not been used during the Transitional Phase.
Major Steps in Drafting Your ASF Application:
Step# 1: Define the geographic "Service Area" your zone will serve.
The most straightforward approach to a Service Area for many grantees would be to
name the counties in which they intend to be able to propose FTZ sites. Once
approved under the ASF, your zone could then serve sites throughout the Service Area
based on operator/user needs for FTZ designation. Any proposed Service Area must
be consistent with the state enabling legislation and the grantee organization's charter
and comply with the "adjacency" requirement of the FTZ Board's regulations—within 60
miles/90 minutes driving time from CBP Port of Entry boundaries. (Note that if there are
other FTZs in your CBP Port of Entry, the FTZ Board's evaluation of your proposal may
involve questions of the "convenience of commerce" -- 19 U.S.C. 81 b(b).)
Step # 2: Indicate specific FTZ sites to be served initially by your FTZ.
Magnet sites: At the time that you reorganize your FTZ under the ASF, you will detail
any specific Magnet sites proposed for your zone. Although there is a general long-
term goal for each zone of no more than six Magnet sites, a grantee can propose
Magnet designation for more than six existing sites during an initial Transitional Phase.
33
At the end of the Transitional Phase, a standard "sunset' test would remove sites which
had not been used for FTZ activity.
Usage-Driven sites (optional at time of reorganization): If you have one or more specific
companies ready to pursue the use of FTZ procedures, you can also request Usage-
Driven designation(s) at the time of your reorganization. Otherwise, you will be able to
use a simple minor boundary modification (MBM) mechanism to designate Usage-
Driven sites at any point after approval of your ASF reorganization application.
34
Foreign-Trade Zones Board: List of Zones Under the ASF http://ia.ita.doc.gov/ftzpage/letters/asflist.htnil
SITE INDEX IMPORT ADMINISTRATION SEARCH IA
List of Zones Under the Alternative Site Framework (ASF)
(August 16,2011)
APPROVED
State F
one Location Service Area
mber
Maricopa County and
75 Phoenix po
rtions ortions of Pinal and
Yavapai Counties
1 t4 Tucson Pima County
Clark, Conway, Dallas,
Faulkner, Garland,
Grant, Hot Spring,
Arkansas 14 Little Rock Jefferson, Lonoke,
Montgomery, Nevada,
Pike, Pulaski, Pope,
Saline, Yell and White
Counties
w_-... ------
City and County of San
California 3 San Francisco Francisco and San
Mateo County
------------------ — ------- --
Orange County and
50 Long Beach portions of Los Angeles
and San Bernardino
I
Counties
City and County of San
Diego and the western
153 San Diego portion of Riverside
j County
FWestern Riverside
244 Riverside County
Baker, Clay, Columbia,
Florida 64 Jacksonville Duval and Nassau
Counties
Haralson, Paulding,
Polk, Floyd, Bartow,
Chattooga, Gordon,
Pickens, Gilmer,
Georgia 26 Atlanta Walker, Whitfield,
Murray, Forsyth,
Dawson, Hall, Banks,
Lumpkin, Fulton,
DeKalb, Gwinnett,
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Cobb, Douglas,
Clayton, Henry,
Fayette, Rockdale,
Cherokee, Carroll,
Coweta, Heard, Troup,
Meriwether, Pike,
Spalding, Butts, Lamar,
Upson, Jasper,
Newton, Morgan,
Greene, Walton,
Oconee, Clarke,
Barrow, Jackson, Bibb,
Crawford, Jones,
Monroe, Putnam,
Richmond, Harris,
Talbot and Muscogee
in their entirety and
portions of White,
Franklin, Peach,
Houston, and Twiggs
Counties
Bulloch, Bryan,
104 Savannah Chatham, Effingham,
Evans, Liberty, Long
and Screven Counties
Appling, Atkinson,
Brantley, Camden,
144 Brunswick Charlton, Coffee,
Glynnm Jeff Davis,
McIntosh, Ware and
Wayne Counties
Cook, Du Page,
Grundy, Kankakee,
Illinois 22 Chicago Kendall, Lake and Will
Counties and portions
of McHenry and Kane
Counties
Winnebago,
Stephenson, Ogle, Lee,
DeKalb, and Boone
176 Rockford Counties, and portions
of Bureau, McHenry,
Kane, Putnam and
LaSalle Counties
Bartholomew, Benton,
Boone, Carroll, Cass,
Clay, Clinton, Decatur,
Indiana 72 Indianapolis Delaware, Fayette,
Fountain, Franklin,
Grant, Greene,
Hamilton, Hancock,
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Foreign-Trade Zones Board: List of Zones Under the ASF http://ia.ita.doe.gov/ftzpage/letters/asflisthtml
Hendricks, Henry,
Howard, Jennings,
Johnson, Lawrence,
Madison, Marion,
Miami, Mouroe,
Montgomery, Morgan,
Owen, Parke, Putnam,
Rush, Shelby,
Tippecanoe, Tipton,
Vigo, Warren, Wayne
and White Counties,
Indiana
St. Joseph, Elkhart,
125 South Bend Kosciusko, Marshall,
LaPorte and Starke
Counties
Lake, Porter, LaPorte,
152 Burns Harbor Newton, Jasper, Starke,
Pulaski and Fulton
Counties
-- — _...- - ------ --- --ck on,
Jackson, Washington,
170 Clark County Harrison, Floyd, Clark
and Scott Counties
Vanderburgh, Dubois,
Pike, Gibson, Knox,
Daviess, Spencer,
177 Evansville Warrick, Posey
Sullivan, Perry,
Crawford, Orange and
Martin Counties
Adams, Allen, DeKalb,
F182 Fort Wayne Huntington, Noble,
Wabash, Wells and
Whitley Counties
Wyandotte, Johnson,
[Kansas 17 Kansas City Douglas, Shawnee,
Leavenworth and Miami
Counties
Kentucky 47 Boone County Boone, Kenton and
Campbell Counties
Louisiana New Orleans Orleans, Jefferson and
St. Bernard Parishes
279 Terrebonne Parish j Terrebonne Parish
Carlton County and
Minnesota 51 Duluth portions of Itasca,
Lake, and St. Louis
Counties
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Foreign-Trade Zones Board: List of Zones Uhler the ASF http://ia.ita.doc.gov/ftzpage/letters/asflist.html
Missouri 102 St. Louis City of St. Louis and St.
Louis County
Fmontana 274 Butte Silver Bow Butte Silver Bow
County
fNevada 126 Reno Reno
New 37 Orange County Orange County
York I
�— Clinton County Clinton County
Albany, Columbia,
Greene, Fulton,
Montgomery,
121 Albany Rensselaer, Saratoga,
Schenectady, Warren,
and Washington
Counties
Hamilton, Butler,
[Ohio 46 Cincinnati Warren Brown and
Clermont Counties
Champaign, Clark,
Coshocton, Crawford,
Delaware, Fairfield,
Franklin, Hocking,
Knox, Licking, Logan,
Madison, Marion,
138 Columbus Morrow, Muskingum,
Perry, Pickaway, Pike,
Ross, Union, Anton
and Wyandot Counties,
as well as portions of
Guernsey, Athens and
Highland Counties
Ashtabula, Trumbull,
Mahoning, Columbiana,
181 Akron/Canton Portage, Summit, Stark,
Medina, Wayne and
Richland Counties
Greenville,
South Spartanburg,
Carolina 38 Spartanburg County Cherokee, Oconee,
Union, Anderson and
Laurens Counties
Dallas, Tarrant,
[Texas 39 Dallas/Fort Worth Kaufman, Collin,
Grayson and Denton
Counties
113 Ellis County Ellis County
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Foreign-Trade Zones Board: List of Zones Under the ASF http://ia.ita.doc.gov/ftzpage/letters/asflist.html
F196
Alliance Corridor area
Fort Worth of Denton and Tarrant
Counties
234 Gregg County Gregg County
I �
Garza, Hale, Hockley,
260 Lubbock Lubbock and Terry
Counties
Washington I 5 Seattle King and Snohomish
Counties
86 Tacoma I Pierce County
Benton, Chelan,
Columbia, Douglas,
Franklin, Grant,
203 Moses Lake Kittitas, Lincoln, Walla
Walla, and portions of
Okanogan and
Yakima Counties
Thurston County and
216 Olympia portions of Lewis,
Mason and Kitsap
Counties
PENDING
State Zone Location Proposed Service
Number Area
Arizona 277Western Maricopa Western Maricopa
County FCounty
California 205 Port Hueneme Ventura County
Florida 136 Brevard County Brevard County
DeSoto, Glades,
Hardee, Hendry,
Highlands and
215 Sebring Okeechobee Counties
and the Cities of Belle
Glade and Pahokee,
Florida
Butler, Harvey,
[Kansas 161 FSedgwick County McPherson, Reno,
Saline, Sedgwick and
Sumner Counties
St. Charles, St. John
Louisiana 124 i Gramercy the Baptist, St. James,
La Fourche and St.
Mary Parishes
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Foreign-Trade Zones Board: List of Zones Under the ASF http://ia.ita.doc.gov/ftzpage/leuers/asflisthtnl
City of Baltimore and
the Counties of Anne
Maryland 74 Baltimore Arundel, Baltimore,
Cecil and Harford,
Maryland
Isanti, Chisago,
Sherburne, Wright,
Anoka, Washington,
Minnesota 119 Minneapolis-St. Paul Ramsey, Hennepin,
McLeod, Carver, Scott,
Dakota, Sibley,
LeSueur, and Rice
Counties
Barry, Barton, Cedar,
Christian, Dade, Dallas,
Douglas, Greene,
Hickory, Howell
(partial), Jasper,
Missouri 225 Springfield Laclede, Lawrence,
McDonald, Newton,
Ozark, Polk, Stone,
Taney, Texas (partial),
Vernon, Webster and
Wright Counties
NebraskaF�9
Lincoln Lancaster, Otoe and
Seward Counties
New 141 Monroe County Monroe County
,York
[Oklahoma 53 Rogers County Rogers County
Blaine, Caddo,
Canadian, Cleveland,
Comanche, Custer,
Garfield, Garvin,
Grady, Kay, Kingfisher, '
106 Oklahoma City Lincoln, Logan,
McClain, Noble,
Oklahoma, Payne,
Pontotoc,
Pottawatomie,
Seminole and
Stephens Counties
Tennessee ', 77 Memphis Shelby County
Frederick, Clarke,
Loudoun, Fairfax,
Virginia 137 Washington Dulles Fauquier, Prince
International Airport William, and Arlington
Counties and the City
of Alexandria
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Wisconsin 41 Milwaukee Kenosha, Milwaukee
and Racine Counties 1
Export Assistance Centers Export.gov I ITA Privacy Policy
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