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EXHIBIT 1 <br />Holland & Knight <br />800 171° St. NW I Washington, D.C. 20006 1 T 202.955.3000 1 F 202.955.5564 <br />Holland & Knight LLP I www.hklaw.com <br />Memorandum <br />Date: July 30, 2014 <br />To: David Cavazos, City Manager <br />Mark Lawrence, Assistant to the City Manager <br />From: Dan Maldonado, Senior Policy Advisor <br />Leslie Pollner, Senior Policy Advisor <br />Re: Federal Update <br />This memo provides a brief overview of Holland & Knight's work with the City of Santa Ana <br />over the past six months and highlights upcoming federal issues as they relate to the City's <br />priorities. <br />I. Progress to Date <br />Since beginning our work with the City, the Holland & Knight (HK) team has made significant <br />progress on several of the City's key issues, including: <br />• <br />Immigration and Customs Enforcement OCE/U.S. Marshals: The Santa Ana jail's <br />operations have strained the City's budget because of the inadequate per diem paid by the <br />U.S. Marshals and ICE. Working closely with HK, Santa Ana successfully obtained an <br />increase in the per diem (moving from $95 /per day to $105 /per day) from U.S. Marshals <br />(final contract pending), and negotiations are ongoing with ICE. HK set up meetings and <br />calls with senior staff at ICE and the U.S. Marshals, provided talking points /strategy for <br />the meetings, and continues to closely monitor the approval process. <br />• Urban Area Security Initiative (UASI): For FY 14, Santa Ana's UASI allocation <br />increased to $5.5 million — an increase from $2.5 million. HK has worked closely with <br />Congresswoman Sanchez and Senator Feinstein to ensure that they understand the <br />region's security needs. <br />• Empowerment Zone Employment Tax Credit: HK successfully worked to have the <br />empowerment zone employment tax included as part of the Senate tax extenders package <br />(EXPIRE Act), including leading a letter of support for the tax credits along with Los <br />Angeles Mayor Gareetti and Fresno Mayor Swearengin. HK worked with the City's <br />Senate delegation, together with Senate Finance Committee member Senator Stabenow, <br />of Michigan (Detroit being an empowerment zone) to lead a successful effort to add the <br />25Q -3 <br />