HomeMy WebLinkAbout80A - JT CONSULTING AGMTREQUEST FOR COUNCIL/
AGENCY ACTION
MEETING DATE:
MAY 5, 2008
TITLE:
AMENDMENT TO CONSULTING SERVICES AGREEMENT
WITH TASSA CONSULTING GROUP, LLC AND
COOPERATIVE AGREEMENT
CITY MANAGER -ECUTIVE DIRECTOR
RECOMMENDED ACTION
CITY COUNCIL
CLERK OF COUNCIL USE ONLY:
APPROVED
^ As Recommended
^ As Amended
^ Ordinance an 1st Reading
^ Ordinance on 2nd Reading
^ Implementing Resolution
^ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Authorize the City Manager and the Clerk of the Council to execute
an amendment to the agreement with Tassa Consulting Group, LLC, to
assist with the completion of an application to the State of
California for a new fifteen-year Enterprise Zone designation in the
amount not to exceed $30,000.
2. Authorize the City Manager and the Clerk of the Council to execute a
Cooperative Agreement with the Community Redevelopment Agency of the
City of Santa Ana (Agency) to use an amount not to exceed $30,000 of
Agency funds for the completion of an application to the State of
California for a new fifteen-year Enterprise Zone designation.
COMMUNITY REDEVELOPMENT AGENCY
Authorize the Executive Director of the Community Redevelopment Agency
and the Agency Secretary to execute a Cooperative Agreement with the City
of Santa Ana to supply an amount not to exceed $30,000 for use in the
completion of an application for a new fifteen-year Enterprise Zone
designation.
DISCUSSION
The Enterprise Zone program was established by the State of California
Legislature for the purpose of stimulating the economy in areas deemed to
80A-1
Amendment to Consulting Services Agreement with
Tassa Consulting Group, LLC and Cooperative Agreement
May 5, 2008
Page 2
be economically challenged. The program offers State Tax Incentives to
businesses in the zone, helps communities retain companies, and attracts
new companies to the area. As a result, new jobs are created and blight
is reduced.
The City of Santa Ana received a fifteen-year Enterprise Zone designation
in 1993. Businesses in the Santa Ana Enterprise Zone have saved an
estimated $350,000,000 by utilizing the State income tax credits. The
program has also helped generate over 15,000 new jobs for Santa Ana
businesses. The current designation will expire on June 7, 2008. The new
fifteen-year Enterprise Zone designation will allow the City of Santa Ana
to continue offering local businesses California State Tax Incentives and
continue with its economic progress.
On January 31, 2008, the Department of Housing and Community Development
(HCD) awarded a conditional designation to the Santa Ana Enterprise Zone.
This new fifteen-year Enterprise Zone designation will become effective
on June 8, 2008. On March 17, 2008, a letter from HCD was mailed to the
City of Santa Ana specifying the conditions the City must satisfy in
order to obtain final designation. Tassa will assist with meeting the
conditions outlined in the letter in order to receive final designation.
Tassa will also assist with negotiating and finalizing a Memorandum of
Understanding (MOU) between The City of Santa Ana and HCD. This MOU will
document exactly what must be done by the City of Santa Ana to maintain
Enterprise Zone eligibility.
Tassa will assist with the approval by HCD of a Targeted Employment Area
(TEA) for Santa Ana. The TEA is one of the criteria that will enable an
Enterprise Zone business to qualify an eligible employee for the Hiring
Credit.
After Santa Ana receives final Enterprise Zone designation, Tassa will
assist with expanding the Santa Ana Enterprise Zone to recapture areas of
the city that were in the previous Enterprise Zone but did not qualify
for the new Enterprise Zone. An expansion of the Enterprise Zone can be
as much as fifteen percent of the area of the approved Enterprise Zone
area.
80A-2
Amendment to Consulting Services Agreement with
Tassa Consulting Group, LLC and Cooperative Agreement
May 5, 2008
Page 3
FISCAL IMPACT
Funds are available in the Merged Economic Development Account (account
no. 570-932-6291).
APPROVED AS TO FUNDS AND ACCOUNTS:
ll~
L nda A. Summ rs
Economic Development Manager
Community Development Agency
SGH/LS/RW/mlr
050508 JT CC-CRA AmendConsultingSrvsAgreeTassa
~~c~~~~e~.7~~~a.
Francisco Gutierrez j~,
i~
Executive Director
Finance and Management Services Agency
80A-3
FIRST AMENDMENT TO
CONSULTANT AGREEMENT
THIS FIRST AMENDMENT TO CONSULTANT AGREEMENT, is entered
into on May 5, 2008, by and between Tassa Consulting Group, LLC, and Snodgrass &
Micheli, LLC (hereinafter jointly and severally "Consultant") and the City of Santa Ana,
a charter city and municipal corporation of the State of California ("City").
RECITALS:
A. The parties entered into Agreement #A-2007-208, dated August 20, 2007,
(hereinafter "said Agreement") by which Consultant has provided consulting services
in relation to applying for an extension of an Enterprise Zone designation.
B. In accordance with the terms and conditions of said Agreement, the parties wish to
amend the Scope of Services, extend the termination date and increase compensation
to pay for the additional services.
WHEREFORE, in consideration of the covenants contained in said Agreement, and
subject to all the terms and conditions of said Agreement, except those amended in this
First Amendment to Consultant Agreement, the parties agree as follows:
1. Section 1, SCOPE OF SERVICES, shall be amended to state that Consultant shall
provide services required to obtain final Enterprise Zone designation, obtain approval
of the proposed TEA and obtain state approval of the proposed expansion, as set forth
in Exhibit A-1, attached to this First Amendment to Agreement.
2. Section 2, COMPENSATION, shall be amended to increase compensation by
$30,000, for a total not to exceed amount of $102,000.00 during the term of said
Agreement. During the extended term, from May 1, 2008 through October 31, 2008,
City agrees to pay and Consultant agrees to accept as total payment for its services, a
monthly fee of $5,000.00.
3. Section 3, TERM, shall be amended to extend the termination date to December 31,
2008.
4. Except as hereinabove amended, all terms and conditions of said Agreement shall
remain in full force and effect.
80A-4
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to
Consultant Agreement on the date and year first written above.
ATTEST:
CITY OF SANTA ANA
PATRICIA E. HEALY
Clerk of the Council
APPROVED AS TO FORM:
JOSEPH W. FLETCHER
City Attorney
ay:
Laura Sheedy
Assistant City Attorney
APPROVED AS TO CONTENT:
STEPHEN G. HARDING
Deputy City Manager for
Development Services
DAVID N. REAM
City Manager
TASSA CONSULTING GROUP, LLC
REX HALVERSON
Owner
SNODGRASS &MICHELI, LLC
CHRIS MICHELI
Owner
80A-5
EXHIBIT A-1
Consultant shall continue to assist the City of Santa Ana with its Enterprise Zone needs
as follows:
1. Complete the terms of the Conditional Designation as required by HCD
2. Assist Santa Ana with negotiating and finalizing the MOU with HCD
3. Obtain Final Designation of the EZ by HCD
4. Obtain approval of the proposed TEA by HCD
5. Obtain state approval of the proposed expansion
The services provided pursuant to this Statement of Work will be complete within six (6)
months of commencement of said services. During that time, City shall pay and
Consultant will accept as total payment for its services provided pursuant to this
Statement of Work, a monthly fee of $5,000.00, for a total amount which shall not exceed
$30,000.00.
80A-6