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C CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
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From: Mayor Patrick J. Morris
Subject: Resolution authorizing the
submittal for a multi-jurisdictional
application of designation as a State
Enterprise-Zone Resolution authorizing
application to the State of California and
Memorandum of Understanding among
the City of Colton, County of San
Bernardino, and Inland Valley
Development Agency.
Dept: Mayor's Office
Date: August 7, 2006
Council Date: August 21,2006
Synopsis of Previous Council Action:
Recommended Motion:
Adopt resolution
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Contact person:
Phone: 5133
Emil Marzullo
Supporting data attached:
Ward: None
FUNDING REQUIREMENTS:
Amount: -0.
Source: (Accl. No.) -0-
(A~r:t np"~ripti()n) .0.
Finance:
Council Notes:
Agenda Item No.
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CITY OF SAN BERNARDINO-REQUEST FOR COUNCIL ACTION
STAFF REPORT
Subject: Resolution authorizing the submittal of a multi-jurisdictional application for
designation as a State Enterprise Zone, and a Memorandum of Understanding among the
City, City of Colton, Coutlty of San Bernardino, and Inland Valley Development Agency.
Background:
The Enterprise Zone Program administered by the State Department of Housing and
Community Development (HCD) targets economically distressed areas throughout
California. Special state and local incentives encourage business investment and promote
the creation of new jobs. The purpose of the Zone program is to provide tax incentives to
businesses and allow private sector market forces to revive the local economy.
Program Benefits
Enterprise Zone companies are eligible for substantial tax credits and benefits including:
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. Hiring Tax Credits - Firms can earn $31,605 or more in State tax credits for
each qualified employee hired
. Sales and Use Tax Credit - Zone companies may receive a sales tax and use
tax credit for manufacturing or processing machinery, data processing and
communications equipment and motion picture manufacturing equipment
central to production and post production, to be used in the Zone, Individuals
can claim a credit on the first $1,000,000 of qualifying purchases, while
corporations can claim credit on the first $20,000,000 per year
. Business Expense Deduction - Up front expensing of certain depreciable
property
. Net Operating Loss Carryover - Up to 100% of the NOL may be carried
forward for
15 years
. Lenders Credit - Lenders to Zone business may receive a new interest
deduction
. Unused tax credits can be applied to future tax years
'. Enterprise Zone companies can earn preference points on state contracts
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A focused 2002 cost-benefit study has shown that statewide, enterprise zones are
achieving their intended purpose by helping the most distressed areas of the state to stop
decay and stimulate growth.
. In the year 2002 alone, the state realized a net gain of $249 million due to the
Enterprise Zone Program.
. Zones created a net benefit 1.35 times the cost or a 35% return on investment.
. Zones created 44,000jobs and positive social benefits that equate to additional
economic benefits for the state and the local economy.
. Zone employment growth far outpaces overall employment growth in California.
California Enterprise Zones have grown jobs twice as fast as they would have
without the zone incentive.
. Zones create jobs with average starting salaries 33% above minimum wage.
. Zones contribute to added local benefits such as overall economic vibrancy from
business and job growth, added sales and property tax, building permit fees, land
use improvements, and reduced blight.
Recent Local Experience
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Locally, the Inland Valley Development Agency and San Bernardino International
Airport Authority have successfully utilized a similar state program, the Local Agency
Military Base Recovery Area (LAMBRA) incentives to enhance new investment and job
creation at the former Norton Air Force Base location. Locational decisions by
companies such as Pep Boys. Mattei, and Stater Bros. were in part made possible by the
similar state tax incentives offered in that program.
In the Agua Mansa Enterprise Zone. a joint effort between the counties of San
Bernardino and Riverside as well as the cities of Riverside, Rialto and Colton, similar
successes have resulted in the development of new industrial areas and the subsequent
creation of hundreds of new jobs.
If the success of the these local programs are an indication, the new enterprise zone
designation would be expected to further stimulate private investment and create
thousands of new jobs within our area as well.
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Why Apply Now?
This year, 23 of the current 42 Enterprise Zones will reach the end of their designation
period (including Agua Mansa). On March 8, 2006, HCD released a Request for
Proposals (RFP) to fill these upcoming vacancies. As a result of the release of the RFP,
the Cities of San Bernardino and Colton (Cities), the County of San Bernardino and the
Inland Valley Development Agency (IVDA) formed a steering committee in mid-May to
research the feasibility of a joint application to obtain an Enterprise Zone (EZ)
designation. The Proposed Zone is to be known as the San Bernardino Valley Enterprise
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Zone (SBVEZ). IVDA has funded a consultant to assist in the preparation of the
application on behalf of the participating entities, as the application process is complex.
A joint EZ application has been prepared for submittal to HCD.
The state application guidelines require that the proposed zone be of contiguous census
blocks containing at least 51 % commercial or industrial zoned land by acreage. This
application meets the 51 % threshold. Commercial and industrial areas of the city were
evaluated extensively for possible inclusion based upon criteria that included contiguity
to other census blocks that were appropriately zoned, relationship to major thoroughfares
and freeways, job growth through new development potential, and relationship to older
commercial and industrial areas as well as to areas of higher unemployment impact.
The proposed zone is approximately 40 s~uare miles in size and covers a large area of the
City, inclusive of most or all of the 1st, 2" , 3rd, and 6th Wards. Because of the need to
meet the 51 % threshold by contiguous census blocks, many areas worthy of inclusion
were excluded. However, there is a program provision allowing future expansion of the
zone by up to 15% without the need for census block area contiguity. Upon a successful
designation granted by the State, it is recommended that f\uther areas be evaluated for
inclusion in the zone by amendment.
As a multi-jurisdictional EZ application, HCD requires that the EZ be consistent in
program delivery and commitment between the cooperating public agencies. A
Memorandum of Understanding (MOU) has been prepared that sets forth the duties and
responsibilities for each party to the SBVEZ application. Additionally, the MOU
addresses the proposed budget for the first five (5) years of the EZ.
Each jurisdiction will cooperate in a joint marketing strategy, and approve an annual
budget as well as designate a Zone Coordinator with the duty to provide business
assistance to their respective businesses within the SBVEZ. Additionally, the County
will act as Zone Manager and the IVDA as the SBVEZ Oversight Committee.
Financial Impact
The potential positive benefits associated with the designation of an enterprise zone are
compelling. Statewide, leverage of new industry, businesses and jobs by the enterprise
zone designation have had positive effects which far outweigh the local cost. The
multiplier effect of higher numbers of jobs and wages as well as the creation of new and
expanded businesses will have far-reaching positive effects on the city for decades to
come.
The formation and annual operating budget has been estimated in part from the local
experience in the LAMBRA and Agua Mansa areas. The first year budget includes some
one-time application and certification costs such as the environmental review and
application processes. The estimated total annual budget for the first year is $428,500.
The first year's SBVEZ budget includes: Marketing Services and incidentals - $88,000;
Professional Services $40,000; Zone Manager salary $30,000;
Insurance/Auditing/Counsel - $5.500; and Environmental Review - $250,000. If the zone
designation is received, the City of San Bernardino's share of the first year's budget cost
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is estimated at $163,702. Each annual budget thereafter is estimated to be $113,000 with
the City of San Bernardino portion at $43,500.
IVDA has committed to fund 40% of the cost of the first year and annual operational
budget. The remainder is shared by the other parties to the MOD.
The first year estimate assumes a full environmental review process. This amount could
be reduced if a lower clearance finding level of environmental review is authorized by the
state. The savings of this lower level are as yet inestimable.
The completed application is due to be delivered to the State of California Department of
Housing and Community Development by September 4, 2006. The preliminary
environmental review is now underway. Should the application be approved, the
environmental process will need to be completed in full prior to activation of the zone.
The zone is estimated to be active by January 2007.
Recommendation:
Adopt resolutions approving the MOD and application.
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING A CERTAIN
MEMORANDUM OF UNDERSTANDING IN CONNECTION WITH AN
APPLICATION TO THE STATE OF CALIFORNIA FOR THE
DESIGNATION OF AN ENTERPRISE ZONE WITHIN A PORTION OF
ITS TERRITORIAL JURISDICTION
Whereas, the City of San Bernardino (the "City") by the adoption of this Resolution hereby
authorizes the preparation and submittal of a formal Application to the State of California,
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Department of Housing and Community Development, for the designation of an Enterprise Zone
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in participation with the Inland Valley Development Agency, the County of San Bernardino and
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the City of Colton for the approximately 25,776-acre area as illustrated on and further described in
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the Exhibit "A" as attached hereto together with the map of the proposed Enterprise Zone (such
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13 area is referred to herein as the "Application Area"); and
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Whereas, the Application Area IS an economically depressed, blighted
16 commercial/industrial and residential area characterized by chronically high levels of
17 unemployment which is in need of an Enterprise Zone designation in order to attract new private
18 sector investment to such Application Area; and
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Whereas, the City authorizes and supports job development, job creation and economic
21 development, and the City has determined that the designation as an Enterprise Zone would make
22 available a range of State of California tax and employment hiring tax credits that would create
23 incentives for businesses to invest in new or upgraded facilities and to establish new employment
24 opportunities within the Application Area for the benefit of the region; and
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26 Whereas, the City by the adoption of this Resolution authorizes the staff of the City to be
27 available on an as-needed basis to maintain record keeping, monthly updates on the proposed
28 Enterprise Zone activities, and to discuss these activities with
program auditors and
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1 representatives and administrators from the State of California as part of the Application process
2 for the Application Area; and
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4 Whereas, the City shall develop a self-evaluation process to measure progress in meeting
5 the goals and objectives to be established for the Enterprise Zone, and said process shall be
6 submitted to the State of California, Department of Housing and Community Development, for
7 review, approval and inclusion in the Memorandum of Understanding ("MOU") in the form as
8 attached hereto as Exhibit "B" as a subsequent amendment thereto prior to the final designation of
9 an Enterprise Zone by the State of California; and
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11 Whereas, the City agrees to complete all actions to be stated within the Application that
12 apply to its territorial jurisdiction included with the Application Area should the proposed
13 Enterprise Zone be awarded a final designation in accordance with the provisions and limitations
14 provided in the MOU; and
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Whereas, the Mayor's Economic Development Adviser has been designated as the Contact
17 Person for the Enterprise Zone at the address as set forth in the MOU.
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NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED
20 BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS
21 FOLLOWS:
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SECTION I. The City hereby approves the intent to submit the Application to the State of
24 California, Department of Housing and Community Development, and supports the Application
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for the designation of the Application Area as an Enterprise Zone. The City further authorizes the
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inclusion of those portions of the City boundaries which are set forth on Exhibit "A" to be
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4833-3960-5505.\
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1 considered in the Application as a portion of the Application Area for purposes of the designation
2 of the Enterprise Zone.
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4 SECTION 2. The City further approves the form of the MOU as attached hereto as Exhibit
5 "8" and authorizes the execution thereof by the Mayor to execute and deliver said MOU on behalf
6 of the City simultaneously with the execution and delivery of the MOU by all other parties thereto.
7 The City agrees to adhere to the purposes and intent of the MOU as provided therein subject in all
8 respects to the limitations and the right of withdrawal as specifically provided in the MOU.
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10 The City also authorizes and directs that the staff of the City/Economic Development
11 Agency as determined by the Mayor shall be made available in accordance with the provisions of
12 the MOU to assist in the matters identified therein in the preparation of the Application with
13 respect to the Application Area.
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SECTION 3. The City recognizes that until such time as the State of California has
16 officially designated the Application Area for inclusion within an Enterprise Zone, the rights,
17 duties and obligations of the parties to the MOU shall be as set forth therein. Upon the approval
18 of the proposed Enterprise Zone by the State of California, the parties under the MOU will then
19 undertake discussions as to those forms of Enterprise Zone incentives that will be matched by a
20 variety of local government incentives, including reduced permit and processing fees and
21 streamlined plan review processes and other incentives that may be determined at the sole
22 discretion of each party to the MOU. The parties to the MOU will also seek a variety of local
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private, non-profit and public organizations with an interest in pledging specific forms of support
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to implement the Enterprise Zone Marketing Strategy. Nothing contained herein or in the MOU
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shall bind or commit any party to the MOU to any subsequent actions or financial commitments
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except as may be agreed to at the sole discretion of each party to the MOU at a later date.
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4833-3960-5505.1
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1 SECTION 4. This Resolution shall take effect upon its adoption and execution in the
2 manner as required by the City Charter.
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4833-3960-5505.1 -4-
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING A CERTAIN MEMORANDUM OF UNDERSTANDING IN
2 CONNECTION WITH AN APPLICATION TO THE STATE OF CALIFORNIA FOR
3 THE DESIGNATION OF AN ENTERPRISE ZONE WITHIN A PORTION OF ITS
TERRITORIAL JURISDICTION
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5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
6 Common Council of the City of San Bernardino at a
meeting thereof, held on the
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, 2006, by the following vote to wit:
day of
Aves
Navs
Abstain
Absent
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Rachel G. Clark, City Clerk
day of
,2006.
The foregoing resolution is hereby approved this
Patrick J. Morris, Mayor
City of San Bernardino
Approved as to form:
JAMES F. PENAMN
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. ty Attorney
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4833-3960-5505.1
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1 Exhibit "A"
Application Area
2 (description and map)
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48]]-3960-5505.1 -6-
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Exhibit "B"
Memorandum of Understanding
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4833-3960-5505.1
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MEMORANDUM OF UNDERSTANDING BY AND AMONG
THE CITIES OF COLTON AND SAN BERNARDINO,
THE COUNTY OF SAN BERNARDINO AND
THE INLAND VALLEY DEVELOPMENT AGENCY
THIS Memorandum of Understanding (this "MOU") is dated as of the 22n' day of
August, 2006, and is by and among the City of Colton, a municipal corporation and a general
law city under the laws of the State of California ("Colton"), the City of San Bernardino, a charter
city duly existing pursuant to the Constitution of the State of California ("San Bernardino"), the
County of San Bernardino, a political subdivision of the State of California (the "County"), and
the Inland Valley Development Agency, a joint powers authority existing pursuant to the
Government Code of the State of California (the "IVDA"). Colton, San Bernardino, the County
and the IVDA are sometimes collectively referred to hereinafter as the "Parties."
RECITALS
WHEREAS, the purpose of the State Enterprise Zone program is to stimulate business and
industrial growth in depressed areas of the state by relaxing regulatory controls that impede
private investment and on March 8, 2006, the California State Department of Housing and
Community Development (HCD) issued a Request for Proposals to fill twenty-three (23) soon to
be vacant enterprise zone designations; and
WHEREAS, the Parties have jointly and collectively pursued the preparation of a formal written
application to the State of California, Department of Housing and Community Development
("HCD") for the designation of the properties described herein as the San Bernardino Valley
Enterprise Zone ("Zone") on the attached Exhibit "A" within a State of California approved
Enterprise Zone pursuant to Government Code Section 7070, et seq., and California Code of
Regulations, Title 25, Subchapter 21, Article 1-13; and
WHEREAS, the IVDA exists as a joint powers authority pursuant to Health & Safety Code
Section 33492.40-33492.42, and Government Code Section 6500, et seq., and is comprised of
Colton, San Bernardino, and the County as three of the four members of the IVDA, and
WHEREAS, upon the conditional designation of the Zone by HCD, the IVDA Board of Directors
shall act as the Enterprise Zone Oversight Committee (EZOC); and
WHEREAS, the Parties seek to cooperate in the manner as hereinafter set forth for the mutual
purposes of administration of the Zone, and the parties seek to share certain expenses in
connection therewith through the contribution of cash and the providing of in-kind staff services
in furtherance of the common goal of the Parties as set forth in this MOU; and
NOW, THEREFORE, THE PARTIES MUTUALLY DECLARE THEIR INTENT AS OF THE DATE
HERETO, AND SUBJECT TO THE PROVISIONS HEREOF, TO BE AS SET FORTH HEREIN:
I. Definitions
A. CAEZ - California Association of Enterprise Zones
B. EDA - Economic Development Agency of the County of San Bernardino.
C. EZOC - the Enterprise Zone Oversight Committee that will oversee the
administration and operations of the Zone. The IVDA Board shall sit as
the Enterprise Zone Oversight Committee.
D. HCD - California State Department of Housing and Community
Development.
E. Technical Committee - a committee consisting of the Zone Manager and
Zone Coordinators for the purposes of developing a Strategic Plan,
Marketing Plan, annual budget, and addressing issues and concerns that
may arise needing Zone Oversight Committee direction.
F. Vouchering Agent - the entity designated to process hiring tax certificates
or vouchers (vouchers).
G. Vouchering Plan - the protocols in place to officially voucher qualified
employees.
H. Zone - San Bernardino Valley Enterprise Zone is that as shown on
attached Exhibit "A."
I. Zone Coordinator - the person appointed by each participating
jurisdiction to oversee its respective portion of the Zone.
J. Zone Manager - the person who administers and coordinates joint efforts
of the Zone.
II. Purpose
The purpose of this MOU is to establish and assign the responsibilities of each
jurisdiction in order to successfully and consistently administer and manage the
Zone.
III. Terms
The effective date of this MOU shall commence upon the approval by the official
action of the last Party authorized to execute this MOU by its appropriate
governing body. No Party may terminate their participation in this MOU after the
date that the application has been submitted to the State for designation as an
enterprise zone. Any Party may terminate its participation in this MOU upon
forty-five (45) days' prior written notice to the other Parties if such notice is
delivered prior to the date that an application is submitted to the State for
designation as an enterprise zone. Upon termination of this MOU as to any
Page 2 of 10
Party, the Zone Manager will forward immediately to each jurisdiction that has so
terminated its participation in this MOU all records, files and reports it has
compiled and maintained pursuant to this MOU with respect to such terminating
Party.
This MOU shall automatically terminate and be of no further force or effect upon
the denial by the State of the submitted enterprise zone application or should the
Parties so choose to abandon the application process prior to completion or
submittal to the State. Unless this MOU has been extended by action of the
Parties if allowed by law or if it has been terminated as to all Parties in the
manner as set forth in this Section III, this MOU shall automatically terminate as
of the close of business on the business day which is fifteen (15) years from and
after the date of the final approval by the State of the application for the
enterprise zone designation.
In the event of the early termination of this MOU or upon sunset of the Zone, if
there are any funds left in the budget after all costs have been expensed, funds
shall be returned to each Party based on the percentages that contributions were
made to the budget.
IV. Duties and Responsibilities of the Parties
A. The Parties shall have the following responsibilities:
a. Each Party shall adopt an annual budget. See Attachment 'B."
b. The annual budget shall be funded by each Party based upon the
percentage of industrial/commercialland acreage within its jurisdiction
at the time the Zone is designated. See Attachment "C."
c. The Parties will cooperatively market the Zone.
d. San Bernardino County agrees to act as and provide a Zone Manager
in conjunction with its responsibility to provide a Zone Coordinator.
e. The County of San Bernardino agrees to act as the Vouchering Agent
for the SBVEZ.
f. The City of San Bernardino, the City of Colton, and IVDA agree to
provide Zone Coordinators.
B. The Zone Manager shall have the following responsibilities:
a. Conduct meetings with EZOC and technical Committee, at a
minimum, quarterly: February, May, August and October
b. Coordinate maintenance of the Zone list of streets and addresses
c. Coordinate maintenance of the Zone map
d. Coordinate maintenance of Zone databases
e. Implement the Zone's joint marketing plan
f. Implement the Zone's vouchering plan
g. Coordinate management of the Zone budget
h. Coordinate communications between the EZOC and Zone
Coordinators
i. Prepare annual reports and participate in HCD Zone audits
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C. The Zone Coordinators shall have the following responsibilities for its
portion of the Zone that is within its jurisdiction:
a. Outreach and education for a specific region in the Zone
b. Update Zone databases for a specific region in the Zone
c. Assist in site selection for a specific region in the Zone
d. Assist public with general information
e. Implement and oversee a marketing plan for a specific region in the
Zone
f. Implement and oversee a strategic plan for a specific region in the
Zone
g. Manage in-house staff resources through ongoing training, guidance
and assistance
h. Prepare reports, at least quarterly, on activities within the Zone for a
specific region in the Zone
i. Update Zone list of streets and addresses for a specific region in the
Zone
j. Update Zone map for a specific region in the Zone
k. Submit all reporting and information/statistical updates to the Zone
Manager
D. Zone Manager and Coordinators shall have the following responsibilities:
a. Represent the Zone with City, State, and local agencies and
developers
b. Act as Zone liaison with State and local government authorities
c. Travel as necessary to carryout the responsibilities as herein
described
d. Develop Zone databases
e. Develop a Zone marketing plan
f. Develop a Zone strategic plan
g. Participate in organizational memberships
h. Plan the Zone budget
i. Work with CAEZ tracking legislation and educating pUblic officials
regarding the Enterprise Zone Program
E. The Zone Oversight Committee shall have the following responsibilities:
a. Approve the annual budget
b. Approve expenditures over and above the approved budget
c. Approve contracts and RFPs
d. In the case the Zone Manager fails to perform his/her duties to the
satisfaction of the other members of the Zone, by a majority vote of
the EZOC, the Zone Manager can be replaced with a Zone
Coordinator or other Zone member who will perform the duties of the
Zone Manager on either an interim or permanent basis.
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V. Indemnification
The Parties each agree to indemnify, defend and hold harmless the other Parties
to this MOU, their authorized officers, employees, agents and volunteers from
any and all claims, actions, losses, damages and/or liability arising out of this
Agreement to the extent such liability, loss, damage and/or liability is caused by
or results from the negligent or intentional acts or omissions of that Party, its
officers, employees, agents and/or volunteers, and for any costs or expenses
incurred by any of the Parties on account of any claim therefore, except where
such indemnification is prohibited by law.
In the event any Party is found to be comparatively at fault for any claim, action,
loss or damage, which results from its respective obligations under this
Agreement, that Party indemnifies the other Parties to the extent of its
comparative fault.
VI. Amendments
This Agreement may be amended at any time by written agreement signed by
the Parties. Such amendments will be binding upon the Parties and will have an
effective date specified in the amendments.
VII. Counterparts
This Agreement may be executed in counterparts, each of which shall be an
original, but all of which shall constitute one and the same instrument, binding on
all Parties.
VIII. Severabilitv
Should any portion, term, condition or provision of this Agreement be decided by
a court of competent jurisdiction to be illegal or in conflict with any law of the
State of California, or be otherwise rendered unenforceable or ineffectual, the
validity of the remaining portions, terms, conditions and provisions shall not be
affected thereby.
IX. GoverninQ Law
This Agreement shall be construed in accordance with and governed by the laws
of the State of California. This Agreement shall be deemed made and entered
into in San Bernardino County, which shall also be deemed to be the sole and
proper venue for any action or proceedings relating to this Agreement.
X. Authoritv to Execute
Each Party and its respective officers and agents warrant and represent that it
has the full power and authority to execute, deliver, and perform the obligations
under this Agreement and that each Party's performance has been duly
authorized by its respective governing body.
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XI. Notices
All notices to be given pursuant to this Agreement shall be in writing and either:
(i) sent by first class mail, in which case notices shall be deemed delivered five
(5) business days after deposit, postage prepaid in the United States mail; (ii)
sent by nationally recognized overnight courier; or (iii) by facsimile (fax), or
similar means, if a copy of the notice is also sent by United States mail, in which
case notice shall be deemed delivered on transmittal by facsimile (fax) or other
similar means provided that a transmission report is generated reflecting the
accurate transmission of the notices to addresses designated in writing by any
party. If specifically authorized herein, some notices may be provided by email
transmission to specifically designated individuals.
Notices shall be delivered to the Parties as follows:
Colton:
Ms. Candace Cassel
Economic Development Director
Economic Development Department
650 North La Cadena
Colton, California 92324
Telephone: (909) 370-5167
Facsimile:
Email: ccassel@cLcolton.ca.us
San Bernardino:
Mr. Emil Marzullo
Economic Development Advisor
Office of the Mayor
City Hall
300 North "D" Street, Sixth Floor
San Bernardino, California 92401
Telephone: (909) 384-5133
Facsimile: (909) 384-5067
Email: Marzullo em@sbcitv.qov
County:
Ms. Kathleen Robles
County of San Bernardino
215 North "D" Street, Suite 201
San Bernardino, California 92401
Telephone: (909) 387-9837
Facsimile: (909) 387-9830
Email: krobles@ed.sbcountv.qov
IVDA:
Mr. Alex Estrada
Director of Redevelopment
Inland Valley Development Agency
294 Leland Norton Way, Suite 1
San Bernardino, California 92408
Telephone: (909) 382-4100
Facsimile: (909) 382-4106
Email: alex@sbdairport.com
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XII. Captions
The captions of this Agreement are for purposes of reference only and shall not
limit or define the meaning of the provisions of this Agreement.
XIII. Waiver
No covenant, term or condition of this Agreement shall be deemed to be waived
by any party unless such waiver is in writing and executed by the party making
the waiver. No waiver of a breach of any of the terms, covenants, or conditions
of this Agreement shall be construed or held to be a waiver of any succeeding or
proceeding breach of the same or any other term, covenant or condition.
XIV. Parties
Nothing in this Agreement, expressed or implied, is intended to confer on any
person other than the Parties or their respective successors and assigns, any
rights or remedies under or by reason of this Agreement. This Agreement shall
be binding upon the Parties and their respective successors and assigns.
XV. Force Maieure
The Parties shall be excused from performance during any period of delay
caused by governmental regulations, controls or directions, a state of
emergency, acts of God, war hostilities, civil commotion, riots, epidemics or other
natural casualties beyond the reasonable control of the Parties. Each party shall
promptly notify the other party of any delay as soon as possible after the delay
has been ascertained.
XVI. Default
Failure or delay by either party to perform any term or provIsion of this
Agreement constitutes a default under this Agreement. The party who so fails or
delays must immediately commence to cure, correct or remedy such failure or
delay, and shall complete such cure, correction or remedy with reasonable
diligence and during any period of curing shall not be in default. The injured
party shall give written notice of default to the party in default, specifying the
default complained of by the injured. If the default is not commenced to be cured
within fifteen (15) days after service of such notice of default and is not cured
promptly in a continuous and diligent manner within a reasonable period of time
after commencement, the defaulting party may be liable for any damages caused
by such default, and the non-defaulting party may commence an action for
damages with respect to such default or for specific performance of this
Agreement.
XVII. Modification in Compliance with Applicable Laws
If any State or Federal law made or enacted after the date of this Agreement
prevents or precludes compliance with one or more provisions of this Agreement,
then the provisions of this Agreement shall, to the extent feasible, be modified or
suspended as may be necessary to comply with such new law. Immediately
after enactment of any such new law, the Parties shall meet and confer in good
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faith to determine the feasibility of any such modification or suspension based on
the effect such modification or suspension would have on the purposes and
intent of this Agreement.
XVIII. Construction of Aareement
The provisions of this Agreement and any exhibits hereto shall be construed as a
whole according to their common meaning and not strictly for or against any
party and consistent with the provisions hereof in order to achieve the objectives
and purpose of the Parties hereunder. Whenever required by the context, the
singular shall include the plural and vice versa, and the masculine gender shall
include all feminine or neutral genders, or vice versa.
XIX. Mitiaation of Damaaes
In all situations arising out of this Agreement, each party shall attempt to
minimize the damages resulting from the conduct of the other party.
XX. Effectuation of Purposes of Aareement
Each party shall take all necessary measures to effectuate the provisions of this
Agreement. Each party shall do nothing which shall have the effect of injuring
the right of the other party to receive the benefits of this Agreement; each shall
refrain from doing anything which would render its performance under this
Agreement impossible; and each shall do everything which this Agreement
contemplates that such shall do in order to accomplish the objectives and
purposes of this Agreement.
XXI. No Personal Liabilitv
No member, official or employee of the Parties shall be personally liable to the
other Party, or any successor in interest, in the event of any default or breach of
this Agreement or for any amount which may become due hereunder, or on any
obligations under the terms of this Agreement.
XXII. No Personal Interest
No member, official or employee of the Parties shall have any personal interest,
direct or indirect, in this Agreement, nor shall any member, official or employee
participate in any decision relating to the Agreement which affects his or her
personal interests or the interests of any corporation, partnership or association
in which he or she is directly or indirectly interested.
XXIII. Insurance Certificates
Parties agree to provide certificates evidencing its self-insurance coverage to the
Zone Manager.
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XXIV. Intearation
This Agreement constitutes the entire understanding and agreement of the
Parties, integrates all of the terms and conditions mentioned herein or incidental
hereto, and supersedes all negotiations or previous agreements between the
Parties with respect to all or any part of the subject matter hereof.
COUNTY OF SAN BERNARDINO
CITY OF COLTON
By:
By:
Deirdre H. Bennett, Mayor
Bill POSTMUS, Chairman
Board of Supervisors
Dated:
Dated:
SIGNED AND CERTIFIED THAT A COpy
OF THIS DOCUMENT HAS BEEN
DELIVERED TO THE CHAIRMAN OF
THE BOARD
APPROVED AS TO lEGAL FORM
BB&K
City Attorney
DENA M. SMITH
By:
Clerk of the Board of Supervisors of the
County of San Bernardino
Dated:
By:
CITY OF SAN BERNARDINO
Dated:
By:
Patrick J. Morris, Mayor
APPROVED AS TO lEGAL FORM
DENNIS WAGNER
Interim County Counsel
Date:
APPROVED AS TO FORM:
By:
Deputy County Counsel
JAMES F. PENMAN
City Attorney
Dated:
Page 9 of 10
Dated:
ATTEST:
IVDA
Inland Valley Development Agency,
a joint powers authority
By:
Interim Executive Director
Kelly Berry, Assistant Secretary
Approved As To Form:
By:
IVDA Counsel
Page 10 of 10