HomeMy WebLinkAbout1/19/2005 - STAFF REPORTS (4) DATE: JANUARY 19, 2005
TO: CITY COUNCIL
FROM: DIRECTOR OF COMMUNITY& ECONOMIC DEVELOPMENT
APPROVAL OF THE EXTENSION OF THE FOREIGN TRADE ZONE CONTRACT SERVICE
AGREEMENT, OPERATING AGREEMENT AND TARIFF NO.1 BETWEEN THE CITY OF
PALM SPRINGS AND INTERNATIONAL TRADE CONSULTANTS
RECOMMENDATION:
That the City Council approve the extension of the Foreign Trade Zone Contract Service
Agreement, Operating Agreement and Tariff No.1 between the City of Palm Springs and
International Trade Consultants (ITC), a foreign trade zone management firm, to complete the
activation and operate a general purchase zone site on city owned property.
SUMMARY:
The original contracts were approved October 1, 2003 and included a one year renewal clause,
to activate FTZ#236 to meet the sunset provisions of the Foreign Trade Zones Act. The
Contractor has submitted the activation application to U.S. Customs & Border Protection and is
waiting for final approval. The Contractor has received verbal approval from U.S. Customs
pending background investigations.
BACKGROUND:
The City of Palm Springs received a Grant of Authority establishing Foreign Trade Zone#236 in
1999. The City has five years to activate a zone site to meet the "sunset" provisions of the
Foreign Trade Zones Act; the zone needs to be activated within eighteen months of the
February 2004 expiration date or risk sunsetting. The activation process has extended beyond
the expiration date but is within the eighteen month extension time period.
Staff has worked for the past several years to identify a user/operator for the FTZ. While there
remain promising leads, the short term need is to activate the zone in order to "rest"the FTZ.
Hiring an operator and identifying a site, no matter how small, accomplishes that.
A site (office) has been identified at the City Yard that can be used to for the Foreign Trade
Zone Activation. ITC will complete the activation application and operate the zone site for one
year with a one year renewal term. The Operating Agreement does not include any exchange
of funds between the City and Ope. t r, though it does include a fee schedule that the Operator
can charge zone users.
John ayLond, Li
Co munitlopmentApprove .
City Manager
Attachments: 1 Minute Order
2)Amendment to Contracts .
FIRST AMENDMENT TO CONTRACT SERVICE AGREEMENT,
FOREIGN TRADE ZONE OPERATING AGREEMENT AND TARIFF
N0.1, BY AND BETWEEN THE CITY OF PALM SPRINGS AND
INTERNATIONAL TRADE CONSULTANTS
This First Amendment to Contract Service Agreement#A4768 and Foreign Trade Zone
Operating Agreement and Tariff No. 1 #A4779, by and between the City of Palm Springs, a
municipal corporation ("City") and International Trade Consultants ("Contractor") is made
effective as of January 19, 2005 as follows:
1)The contracts to be extended for a one year period, expiring January 19, 2006.
2)The remaining fee for services in the amount of$4,000 shall be payable upon approval of the
Activation Application by U.S. Customs.
3) Personal Automobile Insurance shall be acceptable in lieu of Business Automobile Insurance
as outlined in Section 5.0 Insurance, Indemnification and Bonds. A policy insurance written on a
per occurrence basis with a single limit liability in the amount of$300,000 bodily and property
damage shall be acceptable.
All other terms and conditions of Agreements#A4768 and#A4779 remain in full force and
effect.
Coactr:
r
David Harlow
Attest: City of Palm Springs
a municipal corporation
City Clerk City Manager
MINUTE ORDER NO. 7616
APPROVING AMENDMENT 1 TO AGREEMENT
4779 WITH INTERNATIONAL TRADE
CONSULTANTS FOR A ONE-YEAR EXTENSION
FOR OPERATING A GENERAL PURPOSE ZONE
SITE IN FOREIGN TRADE ZONE#236. A4779
I HEREBY CERTIFY that this Minute Order, approving Amendment 1 to
Agreement 4779 with International Trade Consultants for a one-year extension
for operating a general purpose zone site in Foreign Trade Zone #236, was
adopted by the City Council of the City of Palm Springs, California, in a
meeting thereof held on the 191" day of January, 2005.
JAMES THOMPSON
City Clerk