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Home My WebLink About050508 Amend to Consulting Serv Agmt Tassa GroupREQUEST 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 �y-L 1ECU VE DIRECTOR RECOMMENDED ACTION CITY COUNCIL CLERK OF COUNCIL USE ONLY: 070AWl: ' i rerrro APPROVED V1 As Recommended 7. "0 ❑ As Amended ❑ Ordinance on 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 and the Agency Secretary to execute a of Santa Ana to supply an amount not completion of an application for a designation. DISCUSSION the Community Redevelopment Agency Cooperative Agreement with the City to exceed $30,000 for use in the new fifteen -year Enterprise Zone The Enterprise Zone program was established by the State of California Legislature for the purpose of stimulating the economy in areas deemed to 6 -37 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 an Memorandum of Understanding (MOU) between The City of Santa Ana and HOD. 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 HOD 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. 6 -38 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: L'ifida A. Summers Francisco Gutierrez Economic Development Manager Executive Director Community Development Agency Finance and Management Services Agency SGH /LS /RW /mlr 050508 JT CC -CRA AmendConsultingSrvsAgreeTassa 6 -39 THIS PAGE LEFT INTENTIONALLY BLANK 6 -40 COOPERATIVE AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA (ENTERPRISE ZONE APPLICATION) THIS AGREEMENT is entered into this day of , 2008, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, a public body corporate and politic (the "Agency "), and the CITY OF SANTA ANA, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California (the "City "). WITNESSETH A. The Agency is undertalcing certain activities necessary for the execution of the City of Santa Ana redevelopment projects (the "Projects ") under the provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.) and pursuant to the redevelopment plans for the Projects. B. The City of Santa Ana applied to the State of California and received a fifteen year Enterprise Zone (EZ) designation in 1993. This designation is scheduled to expire on June 7, 2008. C. The Enterprise Zone program was created by the State of California for the purpose of stimulating the economy in areas that are deemed to be economically challenged. The program helps create new jobs and reduce blight. D. The Agency desires to contract with the City for the Agency to provide funds to the City to assist in funding the consultant that will assist in the completion of the procedure necessary to obtain a new fifteen year Enterprise Zone designation. E. On January 31, 2008, the Department of Housing and Community Development (HCD) awarded a conditional designation to the Santa Ana Enterprise Zone. This new 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. The consultant will assist with meeting the conditions outlined in the letter in order to receive final designation. F. The Agency is willing to contribute funding for the consultant as the designation of Enterprise Zone will assist the Agency with its ongoing redevelopment activities. NOW, THEREFORE, the parties hereto do mutually agree as follows: 6 -41 SCOPE OF WORK The City had distributed a Request for Proposals (RFP) to ten consultant firms and Tassa Consulting Group, LLC ( Tassa) was the most qualified and experienced consultant. Agency shall provide the City with an amount not to exceed $30,000.00 to be applied towards the agreement with Tassa to perform all additional tasks that are necessary to receive final designation including, but not limited to: meeting the conditions outlined in the letter from HCD to receive final designation, negotiating and finalizing a Memorandum of Understanding between the City of Santa Ana and HCD, assist with the approval by HCD of a Targeted Employment Area (TEA) for Santa Ana, 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, compiling requisite information, data and studies, preparing tables and maps; drafting and editing various narrative sections; and attending meetings and public hearings as requested. 2. COMPENSATION AND METHOD OF PAYMENT The Agency shall pay the City an amount not to exceed $30,000.00 to be applied to the total compensation for Tassa Consulting Group, LLC to perform all services pertaining to the completion of the application for Santa Ana to be designated as an Enterprise Zone. From the time the City incurs the cost of any particular work subject to this Agreement to the time the Agency reimburses the City for that cost, the amount due to the City for such improvement work shall bear interest at the rate of the average City return on investment, as the same may change from time to time. Except as may be otherwise provided (1) by separate agreement between the City and the Agency, or (2) by budget appropriations or appropriation adjustments approved by the City and the Agency, the amount to be paid by the Agency hereunder shall be paid in the same fiscal year as the year in which the debts are incurred by the City. LIABILITY AND INDEMNIFICATION In contemplation of the provisions of Section 895.2 of the Government Code of the State of California imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Section 895 of said Code, the parties hereto, as between themselves, pursuant to the authorization contained in Section 895.4 and 895.6 of said Code, will each assume the full liability imposed upon it, or any of its officers, agents or employees by law for injury caused by negligent or wrongful act or omission occurring in the performance of this Agreement to the same extent that such liability would be imposed in the absence of Section 895.2 of said Code. To achieve the above - stated purpose each party indemnifies and holds harmless the other party for any loss, costs or expense that may be imposed upon such other party solely by virtue of said Section 895.2. The provisions of Section 2778 of the California Civil Code are made a part hereof as if fully set forth herein. 6 -42 4. EFFECTIVE DATE OF AGREEMENT This Agreement shall take effect from and after the date of adoption and approval by the City and the Agency pursuant to official action of the governing bodies thereof and shall be effective for a duration not to exceed the time necessary for the City to complete the work and for the Agency to pay the City in full. This Agreement shall apply to all activities carried out by the parties as set forth in Section 1 hereto. 6 -43 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: Patricia E. Healy Clerk of the Council ATTEST: Patricia E. Healy Secretary APPROVED AS TO FORM: Joseph W. Fletcher City Attorney /Agency General Counsel By: Lisa E. Storek Asst. City Attorney /Asst. Counsel CITY OF SANTA ANA David N. Ream City Manager COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA by Stephen G. Harding Executive Director 4 1*12KAVA