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Memo of Agr - Airport
AGREEMENT #3661
M05731, 4-30-96
MEMORANDUM OF AGREEMENT
Under the provisions of Section 236 of the Trade and Tariff Act of 1984 (P.L. 98-573),
as amended (19 U.S.C. 58b), the Commissioner of Customs is authorized to make Customs
services available at airports, seaports, and other locations designated by the Commissioner,
and to charge a fee for such services. The purpose of this agreement is to designate the
following location and its defined adjoining facilities as eligible for such services under the
conditions set forth herein.
City Name: City of Palm Springs
Palm Springs Regional Airport
Location: 3400 East Tahquitz Canyon Way
Palm Springs, CA 92262
The above-named city shall be considered to be the "person" using Customs services,
as the term is applied in Section 236(b) of P.L. 98-573. In accordance with the requirements
of Section 236(c) of the law, a determination has been made that the volume of business
anticipated at the city, and defined adjoining facilities is insufficient to justify the availability
of unreimbursable Customs services.
CUSTOMS OFFICE LOCATION DEFINED
For purposes of determining reimbursable travel costs, identify the physical address of
the proposed Customs office as the same location as named above.
CUSTOMS SERVICE LOCATIONS DEFINED
Specify below any other locations (other than the city itself) at which Customs services
would be expected: (i.e., define all adjoining or adjacent facilities, such as Foreign Trade
Zones and seaport examination facilities)
Palm Springs Regional Airport, (PSP) Palm Springs, California
PSP-AMR Combs (on-airport FBO facility)
PSP-Million Air (on-airport FBO facility)
PSP-Corporate Hangar(s)
PSP-Air Museum
GEOGRAPHIC BOUNDARIES OF SERVICE DEFINED
Specify below the geographic boundaries within which Customs service would be
expected. A plat with highlighted boundaries may be attached in lieu of a written description.
All airport property within the Air Operation Area (AOA)
perimeter fence of the Palm Springs Regional Airport. (See
Exhibit A.)
CITY RESPONSIBILITIES
The City agrees to reimburse the Customs Service for the first full-year costs,
estimated to be $100,000, which amount includes all salary and benefit costs for one full-time
inspector, including relocation expenses, training, and relief. In addition, the City agrees to
pay all cost-of-living allowances, if applicable.
The City also agrees to reimburse all travel, transportation, and per diem costs incurred
by the Customs Service in performing regular inspectional duties, or for Customs personnel
to be brought to the City from other locations for internal control verifications, special
enforcement activities, training, etc., as may be necessary.
The anticipated cost of services for the second year is $74,905*, excluding travel, per
diem, transportation costs and cost-of-living allowance, if applicable. Succeeding years' costs
will be increased for all adjustments and change in the rate of pay and allowances mandated
by legislative and regulatory requirements.
All of the above mentioned expenses will be determined in accordance with generally
accepted accounting principles and standards. The annual fee will be billed in quarterly
installments commencing on the date on which the initial payment is due. This date will be
15 days prior to the effective date of this agreement. Any cost-of-living allowance, travel, per
diem, transportation, and any other variable expense will be collected after it is incurred, and
will be invoiced as an adjustment to the next quarterly installment.
The City also agrees to provide, at no cost to the Customs Service, sufficient office
space, utilities, office furniture and equipment, including telephone and answering machine,
facsimile machine, personal computer (with installation and maintenance cost for data link to
the Treasury Enforcement Communications System, and Customs Automated Commercial
System), and any other necessary office equipment, automated data processing equipment
or software (including installation and maintenance costs).
Prior to the Commissioner's signing of this agreement, the Port Director of Customs
in the area where the City is located will conduct a survey of the site to determine the
adequacy of facilities and equipment.
CITY OPERATIONS
The City may be reimbursed for its expenses by the individual users of the Customs
services provided. However, the City agrees to set and periodically review its rates to ensure
that they are in accord with the City's reimbursable expenses.
CUSTOMS SERVICE RESPONSIBILITIES
Regular Customs service will tie provided 8 hours a day, from 8:00 a.m. until 5:00
p.m., Monday through Friday. Any service provided outside the regular hours will be on an
* Relocation and equipment costs related to start up are absorbed in the first year, reducing
subsequent yearly costs for these expenses.
overtime basis. The full cost of overtime service will be paid by the party requesting the
service, and at the rates prescribed by Section 267 of Title 19, United States Code, as
amended.
In the absence of required inspectional service, the Customs Service may assign other
duties at the City office to the inspector.
EFFECTIVE DATE
This agreement will become effective on October 1, 1996, and will continue in effect
until terminated by either party.
TERMINATION OF AGREEMENT
This agreement may be terminated by either party upon 120 days written notice. If
any amounts due the Customs Service under the terms of the agreement are not paid timely,
the agreement will be automatically terminated. In the event of termination, all costs incurred
by the Customs Service which have not been reimbursed will become immediately due and
payable. Interest will accrue based on current U.S. Treasury borrowing rates.
AUTHORIZATION
A thes erms is attested by the signatures below:
City Man er, City of Im Springs Date
Palm Spr ngs Regional Airport
—ice �= ii
Commissioner of Customs Date
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
ArIPF"Op"LE) BY T H CV Pt!
CitVeierk
EXHIBIT "A"
GEOGRAPHIC BOUNDARIES OF SERVICE
PALM SPRINGS
AIR MUSEUM
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LEASEHOLD
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A ` AMR COM
LEASEHOLLD
CITY OWNED
T-HANGARS �
CORPORATE
HANGARS
VACANT CUSTOMS
HANGAR D OFFICE