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HomeMy WebLinkAboutGENERAL MOTORS CORP. - 2003-03-03.i00103 S_1" PROMOTIONAL AGREEMENT471-0 Aa�o � � C THIS AGREEMENT, dated as of the date of the last signature herein, is entered into by and between Chevrolet DIVISION, GENERAL MOTORS CORPORATION, a Delaware corporation, having a place of business at 515 Marin Street, Thousand Oaks, CA 91360 ("DIVISION") and City of Huntington Beach, a California corporation. having a place of business at 2000 Main Street, Huntington Beach, CA 92648 ("PROMOTER"). In consideration of the promises hereinafter made to each other, the parties hereto agree as follows: PROMOTIONAL CONSIDERATIONS DIVISION agrees to provide the consideration listed on Exhibit A attached hereto. PROMOTER, for its part, agrees to provide the promotional services and other consideration to DIVISION listed on Exhibit B attached hereto. If vehicles are loaned to PROMOTER as part of the consideration identified on Exhibit A (the "Vehicle(s)"), then PROMOTER further agrees to the following terms and conditions: A. PROMOTER agrees to obtain and maintain, at its own expense, comprehensive automobile liability insurance covering all owned, non -owned and hired vehicles (except for the Vehicles identified in Paragraph 1.D below) with limits of not less than $5,000,000 per occurrence combined single limit for personal injury and property damage, including all statutory coverage for all states of operation. The PROMOTER will also provide comprehensive (fire and theft) and collision coverage on the Vehicle(s). Prior to deliver of the Vehicle(s) the PROMOTER will provide DIVISION with a certificate of insurance evidencing General Motors Corporation as an additional insured, stating that such insurance is primary in coverage to any other insurance which may be available to General Motors Corporation, and providing at least thirty (30) days' prior written notice to DIVISION- of cancellation, modification, or material change to the policy. B. Upon receipt of the Vehicle(s), PROMOTER will execute and deliver to DIVISION a copy of the Loan of Vehicle Terms and Conditions and Vehicle Receipt (attached as Exhibit C). unless otherwise agreed to by DIVISION in writing, the Vehicle(s) will only be used by PROMOTER or its officers, directors, employees, agents or subcontractors or individuals who are driving the Vehicle(s) while on business related to the activities contemplated under this Agreement. PROMOTER agrees to obtain from each individual permitted to drive a Vehicle a signed copy of General Motors Safe Driver Program Driver Conduct Requirements (attached as Exhibit D). PROMOTER will retain the executed copy for a period of three (3) years and will provide them to DIVISION at DIVISION'S request. C. At the end of the term of the loan, or earlier, if requested by DIVISION, PROMOTER will return the Vehicle(s) to the nearest DIVISION office or such other location as designated by DIVISION, in the same condition as delivered, reasonable wear and tear excepted. If a Vehicle must be recovered by DIVISION or repaired to restore it to such condition, then PROMOTER will pay DIVISION any costs incurred by DIVISION to recover the Vehicle and to repair it. If, in DIVISION'S opinion, a Vehicle cannot or should not be repaired based upon 03agreGpromotinnal general motor/2/21/03 General Motors Corporation's policy for repairing/scrapping damaged vehicles, then the Vehicle must be returned to DIVISION and the PROMOTER will pay DIVISION the Vehicle's value, based upon the following formula: The amount General Motors Corporation would have received if the Vehicle had been sold at auction the month the Vehicle was damaged based on a similar make and model year vehicle with similar mileage, as determined by GM NAO Fleet Operations Auction Results' report, less S4,000. D. Paragraphs I.A. 1.13 and LC of this Agreement do not apply to vehicles identified in Exhibit A as loaned to PROMOTER for static display purposes only ('Static Display Vehicles'). As to Static Display Vehicles, however, PROMOTER acknowledges that the Vehicles are, and shall remain, the property of DIVISION. PROMOTER agrees that: (a) the Static Display Vehicles are for static display purposes only, with the exception of minimal driving to move the Static Display Vehicles a very short distance, and not on any public roads, and (b) PROMOTER shall not tamper, disconnect, or otherwise interfere with the operation of the odometer, emission control equipment, or any other equipment. Each party waives all rights against the other, and against those holding under or through such party, for damages to the other's premises and property. 2. USE AND PROTECTION OF TRADEMARK AND OTHER INTELLECTUAL PROPERTY. PROMOTER and DIVISION acknowledge that each party owns certain names, trademarks, service marks, copyrights and other intellectual property (`Marks'), and owns or has certain merchandising rights in and to the Marks, and all goodwill associated with or symbolized by the Marks. It is understood that in promoting PROMOTER'S activities, PROMOTER and DIVISION may make various references to the activities and may display the Marks of PROMOTER and DIVISION, and pictures of the activities. Each party hereto grants to the other a nonexclusive, nontransferable license to use its Marks during the term of this Agreement and subject to the terms and conditions hereinafter set forth, solely in connection with advertising and promoting any event or activity incidental thereto. PROMOTER and DIVISION must agree in writing as to the form and content of any promotional or advertising materials and the media in which such materials are to be used prior to their use, which approval the parties shall not unreasonably withhold; and such use may be subject to such reasonable conditions as either party may impose, including but not limited to, conditions affording each party adequate protection of its Marks. Upon termination or expiration of this Agreement, both parties shall cease all use of the Marks of the other party as soon as practicable, but in any event within thirty (30) days unless the particular media which has been approved requires a longer lead time, but in no event longer than ninety ((90) days. Neither party will impugn, challenge or assist in any challenge to the validity of the other party's Marks, any registrations thereof, or the ownership thereof. Each party will be solely responsible for taking such actions as it deems appropriate to obtain trademark, service mark or copyright registration for its respective Marks. All uses of or references to the Marks shall inure to the benefit of the respective owner, and all rights with respect to the Marks not specifically granted in this Agreement shall be and are hereby reserved to the respective owner. 03agree/promotional general motors.Ii21;03 2 Neither party is granted any right or license under this Agreement to sell, or otherwise distribute for sale, any of the promotional or advertising materials, or items related thereto. If a party desires to sell, or distribute for sale; any of such materials or other merchandising or novelty items bearing the names, trademarks, copyrights or other intellectual property of the other party, then it shall request permission to do so from the other party, and if granted, the parties shall negotiate in good faith a separate licensing agreement covering such materials or items before they may be sold or distributed for sale. 3. CONSUMER INFORMATION If customer lists, databases or any other personally identifiable information (the `Databases') are given to DIVISION as part of the consideration identified on Exhibit B, then PROMOTER further represents and warrants that it has obtained all necessary permission and consent, in compliance with any applicable laws and regulations, to provide DIVISION with the Databases for any purpose the DIVISION, in its sole discretion, sees fit. 4. EXCLUSIVITY OF PERFORMANCE During the terms of this Agreement, PROMOTER will not conduct nor participate in promotional activities with any other motor vehicle or component parts manufacturers or distributors, which may conflict with DIVISION'S interests, without the prior written approval of DIVISION. PROMOTER further represents and warrants that no other motor vehicle or component parts manufacturers or distributors will participate in any way in the activities and events described herein without the prior written approval of DIVISION. 5. TERM; RIGHT OF FIRST REFUSAL The term of this Agreement shall commence as of the signing of this Agreement by both parties and end on the date set forth on Exhibit A, or if no date is indicated, upon completion of the obligations of both parties. If the term of this Agreement is more than one year, DIVISION may terminate this Agreement effective as of December 31 of any year by giving PROMOTER v.Titten notice of the termination prior to Octoberl . If PROMOTER intends to conduct comparable event(s) or promotional activities beyond the term of this Agreement, PROMOTER shall provide to DIVISION, at least ninety (90) days prior to the expiration of this Agreement, a written proposal for DIVISION to continue its sponsorship. DIVISION shall advise PROMOTER, in writing, at least sixty (60) days prior to the expiration of this Agreement, whether or not it will participate on the terms contained in PROMOTER'S proposal. If DIVISION elects not to participate on the terms of the proposal and the parties are unable to negotiate mutually acceptable terms, then PROMOTER shall be free to negotiate with others; provided, however, that PROMOTER shall not offer terms to others which are materially different than those previously offered to DIVISION, without first offering such different terms to DIVISION. 03agreeipromotional general motors.12.21;03 3 • 6. INDEMNIFICATION A. PROMOTER agrees to indemnify and hold harmless General Motors Corporation, its officers, directors, agents and employees, from and against any and all claims, demands, obligations, causes of action and lawsuits and all damages, liabilities, fines, judgments, costs (including settlement costs), and expenses associated therewith (including the payment of reasonable attorney fees and disbursements), arising out of: (1) the failure of PROMOTER, its employees or agents, to comply with the terms and conditions of this Agreement; (2) the negligent acts or omissions of PROMOTER, its employees, agents, or subcontractors; (3) DIVISION'S use of PROMOTER'S Marks as authorized by this Agreement; (4) the services performed or actions taken by PROMOTER, its employees or agents, in connection with this Agreement, including the operation and management of any event or activity incidental thereto; or (5) PROMOTER'S use or possession of any Vehicles loaned to it by DIVISION. B. DIVISION agrees to indemnify and hold harmless PROMOTER, its officers, directors, agents and employees from and against any and all claims, demands, obligations, causes of action and lawsuits and all damages, liabilities, fines, judgments, costs (including settlement costs), and expenses associated therewith (including the payment of reasonable attorney fees and disbursements), arising out of: (1) the failure of DIVISION, its employees or agents, to comply with the terms and conditions of this Agreement; (2) the negligent acts or omissions of DIVISION, its employees, agents, or subcontractors; (3) PROMOTER'S use of DIVISION'S Marks as authorized by this Agreement; or (4) defects in the design, assembly, or manufacture of any Vehicle loaned by DIVISION to PROMOTER. C. The obligations to indemnify contained in this Section 6 will survive the expiration or termination of this Agreement. 7. INSURANCE A. PROMOTER shall maintain, during the term of this Agreement, at its own expense, the following kinds of insurance with minimum limits as set forth below: Kind of Insurance (1) Commercial General Liability (including contractual liability) Minimum Limits $1,000,000 per occurrence combined single limit for personal injury and property damage If spectator events are identified on Exhibit B, PROMOTER shall maintain spectator's liability insurance (either included in the Commercial General Liability or in a separate policy) in an amount not less than $5,000,000 per occurrence combined single limit for personal injury and property damage. (2) Workers' Compensation Statutory (for all states of operation) including Employer's Liability with limits of not less than $500,000 03agree/promotional general mo1ors12/2UO3 4 • 0 B. PROMOTER shall furnish DIVISION with a certificate showing the applicable coverage, naming General Motors Corporation as an additional insured (except A(2) Workers' Compensation), stating that such insurance is primary in coverage to any other insurance which may be available to General Motors Corporation, and providing at least thirty (30) days` prior written notice to DIVISION of cancellation, modification or material change to the policy. Such certificate shall be in a form acceptable to DIVISION and must be underwritten by an insurer satisfactory to DIVISION. PROMOTER'S purchase of appropriate insurance coverage or the furnishing of the certificate shall not release PROMOTER from its obligations or liabilities under this Agreement. S. CANCELLATION FOR BREACH: INSOLVENCY A. Either party may cancel this Agreement, without liability to the other party, if the defaulting party: (1) repudiates or breaches any of the terms of this Agreement; or (2) fails to make progress so as to endanger timely and proper completion of its services; and does not correct such failure or breach within ten (10) days, or such shorter period if commercially reasonable, after receipt of written notice from the non -defaulting party specifying such failure or breach. B. Either party may cancel this Agreement immediately, without liability to the other party, upon the happening of any of the following or any other comparable event: (1) insolvency of the other party; (2) filing of any petition by or against the other party under any bankruptcy, reorganization or receivership law; (3) execution of an assignment for the benefit of the other party's creditors; or (4) appointment of any trustee or receiver of the other party's business or assets or any part thereof; unless such petition, assignment or appointment be withdrawn or nullified within fifteen (15) days of such event. C. in the event this Agreement is canceled, each party shall cease using the other party's Marks, and PROMOTER shall return those funds, if any, paid to it by DIVISIOI\ for services which have not yet been performed. In addition, if vehicles are loaned to PROMOTER, PROMOTER shall promptly return the vehicles to DIVISION. D. The foregoing remedies are in addition to, and not in lieu of, any other rights or remedies that a party may have at law or in equity; provided however, that in no event will either party be liable to the other for incidental, inconsequential or punitive damages arising out of a breach of this Agreement. 4. FORCE MAJEC:RE Any delay or failure of either party to perform its obligations hereunder shall be excused to the extent that it is caused by an event or occurrence beyond its reasonable control such as, by way of example and not by way of limitation, acts of God, actions by governmental authority (whether valid or invalid) fires, floods, windstorms, explosions, riots, natural disasters, wars, sabotage or labor problems; provided the party claiming force majeure, and the steps being taken to remedy the failure. Should the event of force majeure continue beyond thirty (30) days, or 03agree/promotional genefal motors12121M 5 such shorter time period as may be reasonable under the circumstances, either party may terminate this Agreement, and DIVISION shall be entitled to a pro rata refund for services not yet performed by PROMOTER. 10. GOVERNING LAW; SEVERABIITY This Agreement is to be governed by and construed according to the laws of the State of California, excluding any such laws which direct the application of laws or any other jurisdiction. If any term of this Agreement is valid or unenforceable under any statute, regulation, ordinance, executive order or other rule of law, such term shall be deemed reformed or deleted, but only to the extent necessary to comply with such statute, regulation, ordinance, order or rule, and the remaining provisions of this Agreement shall remain in full force and effect. 11. COMPLIANCE WITH LAWS Each party will perform its obligations under this Agreement in compliance with all applicable laws, orders, or regulations of all appropriate jurisdictions. 12. NO IMPLIED WAIVERS Failure by either party at any time to require performance by the other party of any provision hereof shall in no way affect the right to require full performance any time thereafter, no shall the waiver by either party of a breach of any provision of this Agreement constitute a waiver of any succeeding breach of same or any other provision, nor constitute a waiver of the provision itself. 13. NO ASSIGNMENT Neither party may assign its rights, nor delegate its obligations under this Agreement, without the prior written approval of the other party. 14. RELATIONSHIP OF THE PARTIES PROMOTER and DIVISION are independent contracting parties, and nothing contained in this Agreement shall be deemed to create a partnership, joint venture or agency relationship between them, nor does it grant either party any authority to assume or create any obligation on behalf of or in the name of the other. 15. NOTICES Any notice required or permitted to be given by either party under or in connection with this Agreement shall be in writing and shall be deemed duly given when personally delivered or sent by registered or certified mail, return receipt requested, postage prepaid, expedited courier service, or by cable or facsimile, confirmed by letter, as aforesaid to the addresses indicated in the introductory paragraph of this Agreement, unless otherwise agreed to by the parties. 03agreelpromotional general rriotors1212IU 6 0 0 lb. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the parties relating to the subject matter covered herein and cancels and supersedes all previous agreements between the parties relating to the subject matter covered herein. Any modification to this Agreement must be in writing and signed by both parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives on the dates indicated below. GENERAL OT S/CORK By: print name ITS: (circle one) Chairman/Presid MIV AND By: lots)�� CITY OF HUNTINGTON BEACH, a .� municipal corporation of the State of California i resident '-gn m4a� Mayor print name ITS: (clrcle one) Secretary:`Chief Financial Offcer/Asst Secretary- Treasurer REVIEWED AND APPROVED: Cit Administrator ATTEST: Ciiv. Clerk 3 APPROVED AS "CO FORM: Id$ City ttorney INITIATED AND APPROVED: t Dire t1f Community Servic Attachments: Exhibit A — DIVISION'S Consideration Exhibit B —PROMOTER'S Consideration Exhibit C -- Loan of Vehicle Terms and Conditions and Vehicle Receipt Exhibit D — General Motors Safe Driver Program Driver Conduct Requirements 03agreelpromotional general motors/2/211103 7 PROMOTIONAL AGREEMENT Between General Motors Corporation Chevrolet Division and City of Huntington Beach EXHIBIT A DIVISION agrees to the following: 1. The term of this Agreement shall commence on the date of signing by both parties and end on December 31, 2003. DIVISION will sponsor City of Huntington Beach (the `Tromotion"). The Promotion will take place at the City of Huntington Beach from the date of signing throughout the term of the contract. 2. Loan twenty (20) 2003 model year, factory equipped vehicles (the "Courtesy Vehicles") for use by the PROMOTER'S beach patrol units. PROMOTER will pick up the Courtesy Vehicles at a time and location determined by DIVISION. PROMOTER will return the Courtesy Vehicles within two (2) days of the expiration of the agreement to Delillo Chevrolet in Huntington Beach, CA. Models and option content will be determined and mutually agreed upon by both parties. i i PROMOTIONAL AGREEMENT Between General Motors Corporation Chevrolet Division and City of Huntington Beach EXHIBIT B PROMOTER agrees to provide DIVISION with the following: 1. Grant DIVISION automotive exclusivity and recognize the DIVISION as the "Official Automotive Sponsor of Huntington Beach" and/or "Official Marine Safety Automotive Sponsor of Huntington Beach." 2. AN public identification and recognition of the DIVISION during the PROMOTION will be made as follows: "Chevrolet Trucks, Official Marine Safety Vehicle of Huntington Beach," "Chevrolet Trucks, Official Beach Patrol Vehicles," or "Chevrolet Trucks, Official Vehicles of Huntington Beach." 3. Grant DIVISION the right to be the exclusive automobile sponsor for all PROMOTER events. PROMOTER will notify DIVISION of any such events in advance. DIVISION has the right to not sponsor events. If DIVISION chooses not to sponsor an event PROMOTER may allow other vehicle sponsorships. Best efforts will be made to obtain other corporate partners other than automotive. If PROMOTER does not approach DIVISION first, there may be no other automotive partner. If there is an event with another automotive partner, such sponsorships shall be for a specific event only and not contain any identification or recognition that such vehicle is an official vehicle of Huntington Beach. 4. Two (2) proof of performance summary binders to include, but not limited to, samples of printed materials, photographs of the vehicle showing the DIVISION signage, vehicle usage and any other materials that will show proof of this activity and value to DIVISION. 5. Space for Y x 10' signs (the "Signs") which prominently feature DIVISION'S Marks and advertising material during the Promotion. Quantity of signs to be determined by both parties. These signs will be located at mutually agreed upon locations by both parties. PROMOTER warrants to DIVISION that the Signs can be on display throughout the duration of the Promotion and that they can contain whatever DIVISION Marks and advertising DIVISION elects to produce. DIVISION will be responsible for all expenses for the initial design, layout, fabrication, production, installment and maintenance of its Signs and the removal of them at the expiration or termination of this Agreement. 6. A minimum of twelve (12) tickets and six (6) VIP parking spots to each beach event sponsored by PROMOTER that require tickets for admission. 7. Prominent display of DIVISION's Marks as the "Official Vehicle" of Huntington Beach on the twenty (20) Courtesy Vehicle Decals that DIVISION is providing to PROMOTER. DIVISION will create the decals identifying DIVISION as "The Official Vehicle of Huntington Beach." PROMOTER will apply decals to all Courtesy Vehicles immediately after pick-up by the PROMOTER. PROMOTER and DIVISION will have the opportunity to approve decal design prior to production. 8. Prominent space, measuring 10' x 10' at the City of Huntington Beach Pier for DIVISION to use for whatever purpose DIVISION chooses, including, but not limited to, the display of its products and services. If DIVISION elects to display vehicles: 1) any vehicles displayed by DIVISION (the "Static Display Vehicles") will be for static display purposes only and the provisions of Section 1, Paragraph D. of this Agreement will apply to the Static Display Vehicles; 2) DIVISION will arrange for appropriate transportation of the Static Display Vehicles to and from the display location(s); 3) Specific models and option content will be determined by DIVISION; 4) PROMOTER shall ensure that the vehicles are maintained in a clean condition while on display; 5) PROMOTER will be solely responsible for obtaining any necessary license or permit for the display(s); 6) PROMOTER will make sure vehicle is in safe location and that people are not at risk around vehicle, and 7) DIVISION will remove the Static Display Vehicles on a date and at a time to be mutually agreed upon by the parties, but not later than midnight on the day this Agreement expires. 9. The right to display DIVISION Marks and advertising material on one (1) static sign on the City of Huntington Beach Pier Lifeguard tower. The dimensions of the sign is approximately 3' x 8'. These signs will be located at mutually agreed upon locations by both parties. PROMOTER warrants to DIVISION that the Signs can be on display throughout the duration of the Promotion and that they can contain whatever DIVISION Marks and advertising DIVISION elects to produce. DIVISION will be responsible for all expenses for the initial design, layout, fabrication, production, installment and maintenance of its Signs and the removal of them at the expiration or termination of this Agreement. 10. Grant the right to erect tents, temporary signage (banners, pennants, etc) and other display properties at mutually agreed upon beach locations, in conjunction with PROMOTER sponsored events. PROMOTER and DIVISION will agree upon the size and location of tents, signage and display properties. 11. PROMOTER shall provide space at the Huntington Central Park Sports Complex for 3' x 10' signs (the "Signs"), which prominently feature DIVISION'S Marks and advertising material during the sponsorship. These signs will be located at locations to be mutually agreed upon by PROMOTER and DIVISION. PROMOTER warrants to DIVISION that the Signs can be on display throughout the duration of the sponsorship and that they can contain whatever DIVISION Marks and advertising DIVISION elects to produce. DIVISION will be responsible for all expenses for the initial design, layout, fabrication, production, installment and maintenance of its Signs and the removal of them at the expiration or termination of this Agreement. W 012 • PROMOTIONAL. AGREEMENT Between General Motors Corporation and City of Huntington Beach EXHIBIT C PROMOTER Loan of Vehicle Terms and Conditions and Vehicle Receipt Division following Vehicle(s) to of General Motors Corporation (" DIVISIOM) agrees to loan the (' PROMOTER') from approximately to _ _ , upon the terms set forth below: MAKE: MODEL: VIN: PROMOTER'S ADDRESS: (Street) (City) (State) (Zip Code) PHOr1E:0 - Terms: I. The Vehicle(s) is/are, and shall remain, the property of DMSION. 2. PROMOTER agrees that: (a) the Vchicle(s) will not be utilized 'illegally, improperly, for hire, as a public conveyance or in any manner for any political purpose whatsoever; (b) the Vehicle(s) shall be driven in a safe and prudent nwwi er by insured, licensed,drivers, twenty-one (21) years of age or older who meet the OM Safe Driver Program Driver Conduct Requirements (attached as Exhibit D) and who are officers, directors, employees, agents or subcontractors of PROMOTER or who are driving the Vehicle(s) while on business related to the activities contemplated under this Agreement; (c) PROMOTER shall ensure that no-one modifies, disconnects, or otherwise interferes with the operation of the odometer, emission control equipment, or any other equipment; (d) PROMOTER acknowledges receipt of and will obtain from each driver of a Vehicle a signed Driver Conduct Requirements form and shall retain each executed form for three (3) years and provide them to DMSION at DIVISiON's request; (e) PROMOTER will report ALL incidents/crashes involving a Vehicle to ESIS (General Motors' insurance claims administrator) at 1-800.889.0154 and to DMSION and will follow instructions provided in the glove compartment of the Vehicle; (f) without limiting or altering any insurance or indemnification obligations contained in this Agreement, PROMOTER will cooperate with DIVISION in the defense of any claims or lawsuits related to PROMOTER's use or possession of any Vehicle; (g) PROMOTER will not make any repairs to a Vehicle without the explicit prior consent of ESIS; (h) PROMOTER shall be responsible for all fides, GM PROMOTIONAL AGREEMENT I I PRINTED 01116/2003 REVISED 11/06/2001 Im 013 • 0 forfeitures and penalties incurred by reason of the use of the Vehicle(s). GM PROMOTIONAL AGREEMENT 12 PPJNTED 01l16/2003 REVISED 11/0612001 • EXHIBIT C - CONTINUED 3. DIVISION MAKES NO WARRANTY OTHER THAN THAT EXPRESSED IN ITS NEW VEHICLE LIIvATED WARRANTY, A PAINTED COPY OF WHICH IS FURNISHED WITH THE VEHICLE. DIVISION authorizes PROMOTER to obtain, on DIVISION's behalf as owner of the Vehicle's), such warranty service as is necessary and provided for under the new vehicle hrmted wwmty. Ordinary operating expenses such as gas, oil, grease, tiro repair and other incidentals are the responsibility of PROMOTER. 4. PROMOTER agrces to defend, indemnify and hold DIVISION harmless from all claims, liability and expenses arising out of PROMOTER's use or possession of any Vehicle. In addition PROMOTER sweet to obtain and maintain, at its own expense, comprehensive automobile liability insurance (covering all owned, non -owned and hired v chicles) with limits of not less than $5,000,000 per occurrence combined single limit for personal h4ury and property damage, including all statutory coverage for all states of operation. PROMOTER will also provide comprehensive (Am and theft) and collision coverage on the Vehicle(s). Prior to receipt of the Vehicle(s), PROMOTER will provide DIVISION with a certificate of insurance evidencing General Motors Corporation as.en additional 'ensured, stating that such insurance is primary is coverage 10 any other insurance w hitb may b e available t o Q meral Motors C orporation, and providing at least thirty (30) days' prior written notice to DIVISION of cancellation, modification, or material change to the policy. At the end of the-tetm of the loan, or earlier if requested by DIVISION, PROMOTER will return the Vehicles) to the nearest DIVISION office or such other tocario>n as designated by DIVISION. if a Vehicle must be recovered by DIVISION or repaired to restore it to the condition i n which i t was d elivered (reasonable wear and tear, a s defined b y General M otors Corporation guidelines, excepted), then PROMOTER will. pay DIVISION any costs incurred by DIVISION to recover the Vehicle and to repair it. If, in DIVISION's opinion, a Vehicle cannot or should not be repaired based upon General Motors Corporation's policy for repairing/scrapping damaged vehicles, then the Vehicle must be returned to DIVISION and the PROMOTER will pay DIVISION the Vehicle's value, based upon the following formula: The amount General Motors Corporation would have received if the Vehicle had been Sold at auction the month the Vehicle was damaged based on a similar make and model year vehicle with similar mileage, as determined by OM NAO Fleet and Commercial Operations Auction Result$' report, less $4,000. PROMOTER Signature: Print Name: Title-. Date: GM PROMOTIONAL AGREEMENT 13 PRINTED 01116/2003 RSVISBD 11/r W001 CJ • EXHIBIT C - CONTINUED PROMOTER Loan of Vehicle Terms and Conditions and Veldcle Receipt List of vehicles to be attached closer to event. GM PROMOTIONAL AGREEMENT 16 PRINTED 01/16/2003 REVISED IIAW2001 i PROMOTIONAL AGREEMENT Between General Motors Corporation &ad City of Huntington Beach EXHIBIT D General ;Motors Safe Driver Program Driver Conduct Requirements I understand that the loan of this Vehicle is subject to the following terms, and verify that I am twenty-one (21) years of age or older, posses a valid operator's license, and will... 1. ...display such license to the vehicle key issuer at each Vehicle exchange, and wili comply with all license rostfictions. 2. ...never drive while impaired by alcohol, drugs, medication. illness, fatigue; or injury. 3. ...ensure the proper use of safety belts and child safety restraints for all occupants. 4. ..obey all applicable motor vehicle laws, codes, and regulations. 5. ...drive in a defensive manner, anticipating situations whcre incidents are likely to occur. 6. ...refrain, at all times, from using radar/laser detection devices. 7. ...plan trips by selecting the safest route, depart early enough to observe posted speed and traffic regulations, and will be mindful of current and forecasted weather conditions. 8. ...report all incidents/crmhes involving the. Vthlcle to ESIS (Gentrai Motors' Insurance claims administrator) -at 1-SOMM0154 (direction is provided in the glove compartment of the vehicle) and to DIVISION. 9. ...not permit any other person to operate the Vehicle. Furthermore, by signing this receipt and acknowledgment, I verify that I have not been convicted within the past 36 months of any of the following motor vehicle violations: 1. Driving while operator's license is suspended, revoked, or denied. 2. Vehicular manslaughter, negligent homicide, felonious driving or felony with a vehicle_ 3. Operating a vehicle while impaired, under the influence of alcohol or illegal drugs, or refusing a sobriety test. OM PROMOTIONAL AGREEMENT 14 PRINTED 01/16/2003 REVISED L I M612001 Vd v1V EXHIBIT D - CONTINUED Q. Failure to stop or identify under a crash (includes leaving the scene of a crash; hit and run; giving false information to an officer). 5. Eluding or attempting to etude a law enforcement officer. 6. Traffic violation resulting in death or serious injury. 7. Any other significant violation warranting suspension of license. DRIVER'S Signature: Print Name: Driver's License Number and State: (Number) Mate) Title: Date: GM PROMOTIONAL AGREEMENT IS PRINTED 01/16/2003 REVISED 11/0612001 War-13-03 04:03anr Frolm-ORfVER& ANT INS, C 9497562713 I& 7-476 P.02103 P-179 c 03/13/03 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND DRIVER AWANT INSURANCE S7`RVICES, INC. CONFERS NO RIGHTS UPON THE CERTIFICATE HOLQ9P- THIS P.O. Box 6450 CERTIFICATE DOES NOr AMEND, EXTEND Olt ALTER THE! COVERAGE Newport Beach, CA 9265E-8450 AFFORDED 6Y TH9 POLICIES BELOW. Ph (940) 756-0271 1 Fax (949) 756-2713 License No. 0C36B61 COMPANIES AFFORDING COVERAGE nr�u�o A" A AMERICAN SAFETY INDEMNITY COMPANY LdYM BIG INDEPENDENT CITIES EXCESS POOL B CITY OF HUNTINGTON BEACH �� ATTN: KAREN FOSTER, RISK MANAGER C CONY@� 2000 MAIN! STREET COMPANY HUNTINGTON BEACH. CA 9264E ,r,p D CAWPL T E ETYPR ThIS 18 TO CURTI" THAT THS FOUCIBS OF NSUPRANMF LISTED ULM NAVE 380" WAD TO THE SIf3URMO NAMED ADM FOR TIC POLICY PERIOD I Q=TrA NOTAIMNITANDINO ANY REOIARtWNT, TEAM OR CONDITION OF ANY CONTRACT OR LY17L'R DOCUMa W WITH RESPECT TO Y1RSLK TM CUMPICATE MAY SS ISSM OR M&Y PERTAIN, ME INAVA&MI E APMRM BY THd PDLICWff VMWq = IrRRED/ IS BUDACT TO ALL THE TERMS. E=LIIEION AND COND171ONS OF 4UCM PWOM LIIRTS MAY HAYS R Lrm P CLAI LLTTR —mmoRr TYPE OF INSURANCE POLICY NUMfaER POLICY EFFECT" POLICY @XPIRATION LIMITA DATE MIWOONT) DATSI!!a MYT 6 ER11L UADILJTY COMMERCIAL GENERAL LMISILITYPV altT�COMPJ CLAIMa El OCCUR A71/. RY 6Aa+ OCCuKKRSNCE OWNIM a CONTPIAOTORS PROT. pM >� AITTOASOLSI49 LJABIUTY CLy07NL�D SAIGLE ANY AUTO L11rr SOOLy Upy ALL OWNEDAUT021 SCHGUULEDAUY06 {}p p mmj ODDLY INJURY HWED AUTOS NON -OWNED AUTOS SODOM PQOPEMY DAMAGG GAAAG6 LGSILITY A vzmiutaurlf 14AN-MU00-0000004.003 07/01102 07/01/03 Eg:HOCCURRENCE 'SEE BELOW AGATE *SEE BELOW UMBMLLA FORM X OTHER THAN UM9MLA FORM STATUTORY UMtTS L#Ml ACCIDENT WORKER'S COMPENSATIQN 066GABE-POLICY LIMIT AND 75GI45G•iACF4EANR.OVEE El�LOYER'S LIADRM Dn+aR DESCRIPTION or OFEMTION91L4CAT7DN$NEkSCa.ial9pSCIAL Irsu4 '50% OF 61,000 000 ($500,000) EXCESS OF $1.000,000 SELF -INSURED RETENTION. CERTIFICATE HOLDER IS INCLUDED AS ADDITIONAL INSURED BUT MLY WITH RESPECT TO LIA131UTY ARISING OUT OF OPERATIONS AS DESCM8E0 BY OR ON BEHALF OF THE NAMED INSURED AS RESPECTS THE LOAN OF FIVE GM TRUCKS TO BE USED IN THE HUNTINGTON BEACH CONCERT SERIES FOR 20D3. SUBJECT TO POLICY TERMS, CONDITIONS AND EXCLUSIONS. SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THIS EXPIRATION OATS THEREOR THE; ISSUING COMPANY WILL NNOFAVOR TO "L JR DAYS WRI77EN NOTICE TO THE C PTIFICATE HOLDER NAMED HOREIN BUT FAAJJ$tE TO AWL SUCH NOTICE SMALL IMPOST: NO DOUGAT'OK OR LIABILITY OF ANY KIND UPON CHEVROLET MOTORS DIVISION THE COMPANY. ITS AGENTS OR REPRESENTAT VES. SUSA'ICT TO 50 GAYS NOTICE OF GENERAL MOTORS CORP., A OE CORP. CANCELLATION FOR NON-PAYMENT OF PREL�L. 315 MAIN STREET THOUSAND OAKS, CA 91360 r s y .7 4PLM,NPA%6WP ,sue CWMUS L41S 4,s CunftM XSUYS lm%4 A.dw G star-13-03 04:03Pm From -DRIVER ivMT INS. C 949TSOMS . T-4T6 P.03/03 F-179 BIG INDEPENDENT CITIES EXCESS POOL (BICEP) NAMED INSURED AS OF MARCH 139 2003 MEMBER: City of Huntington Bth 2000 Main Street Huntington Reach, CA 92649 NAMW INSMO.- City of Huntington Beach including; Huntington Beach Redevelopment Agency; Huntington Beach Public Facilities Corporation; Huntington Beach Parking Authority; Huntington Beach Civic hwrovement Corporation; Hunting= Beach'Public Financing Authority Page l of I c:+JI11aa�gipy.aW p Cwu�¢feap N:wdln�bhlJae Council/Agency Meeting Held: Deferred/Continued to:� !Approved ❑ Conditionally Approved ❑ Denied City Clerk's Signature Council Meeting Date: March 3, 2003 Department ID Number: CS03-002 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City AdministratorWo&O PREPARED BY: JIM B. ENGLE, Director, Community Service SUBJECT: APPROVE PROMOTIONAL AGREEMENT -WITH CHEVROLET DIVISION,' GENERAL MOTORS CORPORATION FOR PROVISION OF VEHICLES FOR MARINE SAFETY OPERATION Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Should the city enter into a one-year promotional agreement with Chevrolet Division, General Motors Corporation, which names Chevrolet as the "Official Automotive Sponsor of Huntington Beach"? Funding Source: Not applicable; agreement saves the General Fund approximately $500,000 each year in vehicle acquisition costs. Recommended Action: Motions to: 1. Approve Promotional Agreement with Chevrolet Division, General Motors Corporation, and authorize the Mayor and City Clerk to execute same; and 2. Approve Section 6 of the agreement, which includes city's indemnification obligations to GMC. Alternative Action(s): Do not approve the Chevrolet promotional agreement, which would necessitate the city appropriating funds for the acquisition of vehicles. Analysis: For the past twelve years, the city has had a promotional agreement with Chevrolet Division, General Motors Corporation that names Chevrolet the "Official Automotive Sponsor of Huntington Beach" and/or "Official Marine Safety Automotive Sponsor of Huntington Beach" in exchange for Chevrolet providing the city with free Chevrolet vehicles each year. The past agreement called for Chevrolet to provide the city with twenty vehicles. These vehicles are utilized for marine safety, beach maintenance, enforcement, and the parking operation. REQUEST FOR COUNCIL ACTION' MEETING DATE: March 3, 2003 DEPARTMENT ID NUMBER: CS03-002 Section 6 of the agreement includes the city's obligations to indemnify General Motors Corporation against the city's actions while using these Chevrolet vehicles. This is the same standard language that has been approved by the City Attorney and City Council in past promotion vehicle agreements. The exclusivity language in Exhibit B of the agreement has been modified from the previous agreement to give the city more flexibility relative to vehicle sponsorships for beach events. General Motors is evaluating its policy regarding involvement in this type of promotional contract; therefore, the city will be distributing a Request for Proposal to vehicle manufacturers, including Chevrolet, during the next year. The Chevrolet partnership has been extremely successful for both parties, and staff is recommending that City Council approve this one-year agreement. Environmental Status: Not applicable Attachment(s): RCA Author: JBE:cr 03-002 Chevrolet Agreement for Free Vehicles -2- 2/2412003 9:55 AM 0 Brockway, Connie To: McGrath, Jennifer; Engle, Jim Cc: Ehring, Liz Subject: Promotional Agreement Jennifer, Another agreement -from 313103. I have a faxed signature page, which I intend to use for this agreement. 1 would like to do this in the future and then Jim and I will not be held up on agreements. Please advise by return email if this is acceptable to your office. Eventually, I will have a procedure folder answering questions as to how you wish the Clerk's Office to proceed in several matters as I cannot take it for granted to follow the same procedures as requested by the retired city attorney. Also on this agreement there are several signature pages I don't think need signing however you or Jim could assist this office. The effective date is suppose to be as of the date the last person signs which I had intended to stamp the Mayor and Clerk's signature stamps as of 3131. Is this acceptable to both of you. Please reply at your convenience. Connie - Clerk 0 L-1 -OFFICE OF THE CITY CLERK CITY OF HUNTINGTON BEACH P. O. Box 190/2000 Main Street Huntington Beach, CA 92648 (714) 536-5227 (714) 374-1557 FAX LETTER OF TRAI SMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/ REDEVELOPINlIENT AGENCY OF THE CITY OF HUNTfNGTON BEACH DATE: D3 — 15. — 02) TO: 9 Y-S ATTENTION: Name E 15 ovY ; cry DEPARTMENT: Street I �+ o S t_S I f 36v -REGARDING: City, State. Zip See Attached Action Agenda Item Date of Approval 03 — c) 3 — 03 Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: Connie Brockway City Clerk Attachments: Action Agenda Page Agreement Bonds Insurance RCA Deed Other CC: --- Namc Department ' (Y� Agreement Insurance Bonds Name Department RCA Agreement Insurance Bonds Name Department RCA Agreement Insurance Bonds Name Department RCA Agreenxnt Insurance Other Name Depam=t RCA Agreement Insurance Other g 1fol IowupiletterslcoverltrRevA.doc • L1 ATTACHMENT 1 PROMOTIONAL AGREEMENT THIS AGREEMENT, dated as of the date of the last signature herein, is entered into by and between Chevrolet DIVISION, GENERAL MOTORS CORPORATION, a Delaware corporation, having a place of business at 515 Marin Street, Thousand Oaks, CA 91360 ("DIVISION") and City of Huntington Beach, a California corporation, having a place of business at 2000 Main Street, Huntington Beach, CA 92648 ("PROMOTER"). In consideration of the promises hereinafter made to each other, the parties hereto agree as follows: PROMOTIONAL CONSIDERATIONS DIVISION agrees to provide the consideration listed on Exhibit A attached hereto. PROMOTER, for its part, agrees to provide the promotional services and other consideration to DIVISION listed on Exhibit B attached hereto. If vehicles are loaned to PROMOTER as part of the consideration identified on Exhibit A (the "Vehicle(s)"), then PROMOTER further agrees to the following terms and conditions: A. PROMOTER agrees to obtain and maintain, at its own expense, comprehensive automobile liability insurance covering all o-wned, non -owned and hired vehicles (except for the Vehicles identified in Paragraph LD below) with limits of not less than $5,000,000 per occurrence combined single limit for personal injury and property damage, including all statutory coverage for all states of operation. The PROMOTER will also provide comprehensive (fire and theft) and collision coverage on the Vehicle(s). Prior to deliver of the Vehicle(s) the PROMOTER will provide DIVISION with a certificate of insurance evidencing General Motors Corporation as an additional insured, stating that such insurance is primary in coverage to any other insurance which may be available to General Motors Corporation, and providing at least thirty (30) days' prior written notice to DIVISION of cancellation, modification, or material change to the policy. B. Upon receipt of the Vehicle(s), PROMOTER will execute and deliver to DIVISION a copy of the Loan of Vehicle Terms and Conditions and Vehicle Receipt (attached as Exhibit Q. Unless otherwise agreed to by DIVISION in writing, the Vehicle(s) will only be used by PROMOTER or its officers, directors, employees, agents or subcontractors or individuals who are driving the Vehicle(s) while on business related to the activities contemplated under this Agreement. PROMOTER agrees to obtain from each individual permitted to drive a Vehicle a signed copy of General Motors Safe Driver Program Driver Conduct Requirements (attached as Exhibit D). PROMOTER will retain the executed copy for a period of three (3) years and will provide them to DIVISION at DIVISION'S request. C. At the end of the term of the loan, or earlier, if requested by DIVISION, PROMOTER will return the Vehicle(s) to the nearest DIVISION office or such other location as designated by DIVISION, in the same condition as delivered, reasonable wear and tear excepted. If a Vehicle must be recovered by DIVISION or repaired to restore it to such condition, then PROMOTER will pay DIVISION any costs incurred by DIVISION to recover the Vehicle and to repair it. If, in DIVISION'S opinion, a Vehicle cannot or should not be repaired based upon Dagree/promotional general motors/2/21/03 General Motors Corporation's policy for repairing/scrapping damaged vehicles, then the Vehicle must be returned to DIVISION and the PROMOTER will pay DIVISION the Vehicle's value, based upon the following formula: The amount General Motors Corporation would have received if the Vehicle had been sold at auction the month the Vehicle was damaged based on a similar make and model year vehicle with similar mileage, as determined by GM NAO Fleet Operations Auction Results' report, less $4,000. D. Paragraphs LA, 1.13 and LC of this Agreement do not apply to vehicles identified in Exhibit A as loaned to PROMOTER for static display purposes only ('Static Display Vehicles'). As to Static Display Vehicles, however, PROMOTER acknowledges that the Vehicles are, and shall remain, the property of DIVISION. PROMOTER agrees that: (a) the Static Display Vehicles are for static display purposes only, with the exception of minimal driving to move the Static Display Vehicles a very short distance, and not on any public roads, and (b) PROMOTER shall not tamper, disconnect, or otherwise interfere with the operation of the odometer, emission control equipment, or any other equipment. Each party waives all rights against the other, and against those holding under or through such party, for damages to the other's premises and property. 2. USE AND PROTECTION OF TRADEMARK AND OTHER INTELLECTUAL PROPERTY. PROMOTER and DIVISION acknowledge that each party owns certain names, trademarks, service marks, copyrights and other intellectual property (`Marks'), and owns or has certain merchandising rights in and to the Marks, and all goodwill associated with or symbolized by the Marks. It is understood that in promoting PROMOTER'S activities, PROMOTER and DIVISION may make various references to the activities and may display the Marks of PROMOTER and DIVISION, and pictures of the activities. Each party hereto grants to the other a nonexclusive, nontransferable license to use its Marks during the term of this Agreement and subject to the terms and conditions hereinafter set forth, solely in connection with advertising and promoting any event or activity incidental thereto. PROMOTER and DIVISION must agree in writing as to the form and content of any promotional or advertising materials and the media in which such materials are to be used prior to their use, which approval the parties shall not unreasonably withhold; and such use may be subject to such reasonable conditions as either party may impose, including but not limited to, conditions affording each'party adequate protection of its Marks. Upon termination or expiration of this Agreement, both parties shall cease all use of the Marks of the other party as soon as practicable, but in any event within thirty (30) days unless the particular media which has been approved requires a longer lead time, but in no event longer than ninety ((90) days. Neither party will impugn, challenge or assist in any challenge to the validity of the other party's Marks, any registrations thereof, or the ownership thereof. Each party will be solely responsible for taking such actions as it deems appropriate to obtain trademark, service mark or copyright registration for its respective Marks. All uses of or references to the Marks shall inure to the benefit of the respective owner, and all rights with respect to the Marks not specifically granted in this Agreement shall be and are hereby reserved to the respective owner. 03agreelpromotional general motors/MI/03 2 0 , • Neither party is granted any right or license under this Agreement to sell, or otherwise distribute for sale, any of the promotional or advertising materials, or items related thereto. If a party desires to sell, or distribute for sale, any of such materials or other merchandising or novelty items bearing the names, trademarks, copyrights or other intellectual property of the other party, then it shall request permission to do so from the other party, and if granted, the parties shall negotiate in good faith a separate licensing agreement covering such materials or items before they may be sold or distributed for sale. 3. CONSUMER INFORMATION If customer lists, databases or any other personally identifiable information (the `Databases') are given to DIVISION as part of the consideration identified on Exhibit B, then PROMOTER further represents and warrants that it has obtained all necessary permission and consent, in compliance with any applicable laws and regulations, to provide DIVISION with the Databases for any purpose the DIVISION, in its sole discretion, sees fit. 4. EXCLUSIVITY OF PERFORMANCE During the terms of this Agreement, PROMOTER will not conduct nor participate in promotional activities with any other motor vehicle or component parts manufacturers or distributors, which may conflict with DIVISION'S interests, without the prior written approval of DIVISION. PROMOTER further represents and warrants that no other motor vehicle or component parts manufacturers or distributors will participate in any way in the activities and events described herein without the prior written approval of DIVISION. 5. TERM, RIGHT OF FIRST REFUSAL The term of this Agreement shall commence as of the signing of this Agreement by both parties and end on the date set forth on Exhibit A, or if no date is indicated, upon completion of the obligations of both parties. If the term of this Agreement is more than one year, DIVISION may terminate this Agreement effective as of December 31 of any year by giving PROMOTER written notice of the termination prior to Octoberl . If PROMOTER intends to conduct comparable event(s) or promotional activities beyond the term of this Agreement, PROMOTER shall provide to DIVISION, at least ninety (90) days prior to the expiration of this Agreement, a written proposal for DIVISION to continue its sponsorship. DIVISION shall advise PROMOTER, in writing, at least sixty (60) days prior to the expiration of this Agreement, whether or not it will participate on the terms contained in PROMOTER'S proposal. If DIVISION elects not to participate on the terms of the proposal and the parties are unable to negotiate mutually acceptable terms, then PROMOTER shall be free to negotiate with others; provided, however, that PROMOTER shall not offer terms to others which are materially different than those previously offered to DIVISION, without first offering such different terms to DIVISION. 03agree/promotional general motorsn 21/03 3 {. INDEMNIFICATION A. PROMOTER agrees to indemnify and hold harmless General Motors Corporation, its officers, directors, agents and employees, from and against any and all claims, demands, obligations, causes of action and lawsuits and all damages, liabilities, fines, judgments, costs (including settlement costs), and expenses associated therewith (including the payment of reasonable attorney fees and disbursements), arising out of: (1) the failure of PROMOTER, its employees or agents. to comply with the terms and conditions of this Agreement; (2) the negligent acts or omissions of PROMOTER, its employees, agents, or subcontractors; (3) DIVISION'S use of PROMOTER'S Marks as authorized by this Agreement; (4) the services performed or actions taken by PROMOTER, its employees or agents, in connection with this Agreement, including the operation and management of any event or activity incidental thereto; or (5) PROMOTER'S use or possession of any Vehicles loaned to it by DIVISION. B. DIVISION agrees to indemnify and hold harmless PROMOTER, its officers, directors, agents and employees from and against any and all claims, demands, obligations, causes of action and lawsuits and all damages, liabilities, fines, judgments, costs (including settlement costs), and expenses associated therewith (including the payment of reasonable attorney fees and disbursements), arising out of: (1) the failure of DIVISION, its employees or agents, to comply with the terms and conditions of this Agreement; (2) the negligent acts or omissions of DIVISION, its employees, agents, or subcontractors; (3) PROMOTER'S use of DIVISION'S Marks as authorized by this Agreement; or (4) defects in the design, assembly, or manufacture of any Vehicle loaned by DIVISION to PROMOTER. C. The obligations to indemnify contained in this Section 5 will survive the expiration or termination of this Agreement. 7. INSURANCE A. PROMOTER shall maintain, during the term of this Agreement, at its own expense, the following kinds of insurance with minimum limits as set forth below: Kind of Insurance (1) Commercial General Liability (including contractual liability) Minimum Limits $1,000,000 per occurrence combined single limit for personal injury and property damage If spectator events are identified on Exhibit B, PROMOTER shall maintain spectator's liability insurance (either included in the Commercial General Liability or in a separate policy) in an amount not less than $5,000,000 per occurrence combined single limit for personal injury and property damage. (2) Workers' Compensation Statutory (for all states of operation) including Employer's Liability with limits of not less than $500,000 03agree/promotional general motors/2/21M 4 B. PROMOTER shall furnish DIVISION with a certificate showing the applicable coverage, naming General Motors Corporation as an additional insured (except A(2) Workers' Compensation), stating that such insurance is primary in coverage to any other insurance which may be available to General Motors Corporation, and providing at least thirty (30) days' prior written notice to DIVISION of cancellation, modification or material change to the policy. Such certificate shall be in a form acceptable to DIVISION and must be underwritten by an insurer satisfactory to DIVISION. PROMOTER'S purchase of appropriate insurance coverage or the furnishing of the certificate shall not release PROMOTER from its obligations or liabilities under this Agreement. 8. CANCELLATION FOR BREACH; INSOLVENCY A. Either party may cancel this Agreement, without liability to the other party, if the defaulting party: (1) repudiates or breaches any of the terms of this Agreement; or (2) fails to make progress so as to endanger timely and proper completion of its services; and does not correct such failure or breach within ten (10) days, or such shorter period if commercially reasonable, after receipt of written notice from the non -defaulting party specifying such failure or breach. B. Either party may cancel this Agreement immediately, without liability to the other party, upon the happening of any of the following or any other comparable event: (1) insolvency of the other party; (2) filing of any petition by or against the other party under any bankruptcy, reorganization or receivership law; (3) execution of an assignment for the benefit of the other parry's creditors; or (d) appointment of any trustee or receiver of the other party's business or assets or any part thereof, unless such petition, assignment or appointment be withdrawn or nullified within fifteen (15) days of such event. C. In the event this Agreement is canceled, each party shall cease using the other party's Marks, and PROMOTER shall return those funds, if any, paid to it by DIVISION for services which have not yet been performed. In addition, if vehicles are loaned to PROMOTER, PROMOTER shall promptly return the vehicles to DIVISION. D. The foregoing remedies are in addition to, and not in lieu of, any other rights or remedies that a party may have at law or in equity; provided however, that in no event will either party be liable to the other for incidental, inconsequential or punitive damages arising out of a breach of this Agreement. 9. FORCE MA3EURE Any delay or failure of either party to perform its obligations hereunder shall be excused to the extent that it is caused by an event or occurrence beyond its reasonable control such as, by way of example and not by way of limitation, acts of God, actions by governmental authority (whether valid or invalid) fires, floods, windstorms, explosions, riots, natural disasters, wars, sabotage or labor problems; provided the party claiming force majeure, and the steps being taken to remedy the failure. Should the event of force majeure continue beyond thirty (30) days, or 03agree/promotional general motors/2/2L/03 such shorter time period as may be reasonable under the circumstances, either party may terminate this Agreement, and DIVISION shall be entitled to a pro rata refund for services not yet performed by PROMOTER. 10. GOVERNING LAW, SEVERABIITY This Agreement is to be governed by and construed according to the laws of the State of California, excluding any such laws which direct the application of laws or any other jurisdiction. If any term of this Agreement is valid or unenforceable under any statute, regulation, ordinance, executive order or other rule of law, such term shall be deemed reformed or deleted, but only to the extent necessary to comply with such statute, regulation, ordinance, order or rule, and the remaining provisions of this Agreement shall remain in full force and effect. 11. COMPLIANCE WITH LAWS Each party will perform its obligations under this Agreement in compliance with all applicable laws, orders, or regulations of all appropriate jurisdictions. 12. NO IMPLIED WAIVERS Failure by either party at any time to require performance by the other party of any provision hereof shall in no way affect the right to require full performance any time thereafter, no shall the waiver by either party of a breach of any provision of this Agreement constitute a waiver of any succeeding breach of same or any other provision, nor constitute a waiver of the provision itself. 13. NO ASSIGNMENT Neither party may assign its rights, nor delegate its obligations under this Agreement, without the prior written approval of the other party. 14. RELATIONSHIP OF THE PARTIES PROMOTER and DIVISION are independent contracting parties, and nothing contained in this Agreement shall be deemed to create a partnership, joint venture or agency relationship between them, nor does it grant either party any authority to assume or create any obligation on behalf of or in the name of the other. 15. NOTICES Any notice required or permitted to be given by either party under or in connection with this Agreement shall be in writing and shall be deemed duly given when personally delivered or sent by registered or certified mail, return receipt requested, postage prepaid, expedited courier service, or by cable or facsimile, confirmed by letter, as aforesaid to the addresses indicated in the introductory paragraph of this Agreement, unless otherwise agreed to by the parties. 03agree/promotional general motors/2/2UO3 6 02t2Tl03 THL' 14:34 FAX 805 3735412 GH R WORKS 0 is W008 lb. LN11RE aM£M N This Agreement constitutes the entire agreement between the parties relating to the subject matter covered herein and cancels and supersedes all previous agreements between the parties relating to the subject matter covered herein. Any modification to this Agreement must be in writing and signed by both parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authori2ed representatives on the dates indicated below. GENERAL OT CORPO TION PROMOTER CITY OF 14UNTINGTON BEACH, a ay: _ municipal corporation of the State of California print n me ITS: (eiecfo ant) Chairnimm esidlOhMqesident r 3.4a� AND Mayor By: - - - print name ITS: fc►.de one) Sccretary/ChiatFinanciul Officer/Assi. SLcrewy - ire"um REVIEWED AND APPROVED. Cit dministrator ATTEST: i APPROVED AS TO FORM: t City Attorney INITIATED AND APPROVED: �..IRz Attach�enta: Exhibit A-- DIVISION'S Consideration Exhibit B -- PROMOTER'S Consideration Exhibit C — Loan of Vehicle Terms and Conditions and Vehicle Receipt Exhibit D — General Motors Safe Driver Program Driver Conduct requirements 03aXreslXmrx-*ns1 g vial morO WV21103 7 0 0 PROMOTIONAL AGREEMENT Between , General Motors Corporation Chevrolet Division and City of Huntington Beach EXHIBIT A DIVISION agrees to the following: 1. The term of this Agreement shall commence on the date of signing by both parties and end on December 31, 2003. DIVISION will sponsor City of Huntington Beach (the "Promotion"). The Promotion will take place at the City of Huntington Beach from the date of signing throughout the term of the contract. 2. Loan twenty (20) 2003 model year, factory equipped vehicles (the "Courtesy Vehicles") for use by the PROMOTER'S beach patrol units. PROMOTER will pick up the Courtesy Vehicles at a time and location determined by DIVISION. PROMOTER will return the Courtesy Vehicles within two (2) days of the expiration of the agreement to Delillo Chevrolet in Huntington Beach, CA. Models and option content will be determined and mutually agreed upon by both parties. PROMOTIONAL AGREEMENT Between General Motors Corporation Chevrolet Division and City of Huntington Beach EXHIBIT B PROMOTER agrees to provide DIVISION with the following: 1. Grant DIVISION automotive exclusivity and recognize the DIVISION as the "Official Automotive Sponsor of Huntington Beach" and/or "Official Marine Safety Automotive Sponsor of Huntington Beach." 2. All public identification and recognition of the DIVISION during the PROMOTION will be made as follows: "Chevrolet Trucks, Official Marine Safety Vehicle of Huntington Beach," "Chevrolet Trucks, Official Beach Patrol Vehicles," or "Chevrolet Trucks, Official Vehicles of Huntington Beach." 3. Grant DIVISION the right to be the exclusive automobile sponsor for all PROMOTER events. PROMOTER will notify DIVISION of any such events in advance. DIVISION has the right to not sponsor events. If DIVISION chooses not to sponsor an event PROMOTER may allow other vehicle sponsorships. Best efforts will be made to obtain other corporate partners other than automotive. If PROMOTER does not approach DIVISION first, there may be no other automotive partner. If there is an event with another automotive partner, such sponsorships shall be for a specific event only and not contain any identification or recognition that such vehicle is an official vehicle of Huntington Beach. 4. Two (2) proof of performance summary binders to include, but not limited to, samples of printed materials, photographs of the vehicle showing the DIVISION signage, vehicle usage and any other materials that will show proof of this activity and value to DIVISION. 5. Space for 3' x 10' signs (the "Signs") which prominently feature DIVISION'S Marks and advertising material during the Promotion. Quantity of signs to be determined by both parties. These signs will be located at mutually agreed upon locations by both parties. PROMOTER warrants to DIVISION that the Signs can be on display throughout the duration of the Promotion and that they can contain whatever DIVISION Marks and advertising DIVISION elects to produce. DIVISION will be responsible for all expenses for the initial design, layout, fabrication, production, installment and maintenance of its Signs and the removal of them at the expiration or termination of this Agreement. 6. A minimum of twelve (12) tickets and six (6) VIP parking spots to each beach event sponsored by PROMOTER that require tickets for admission 7. Prominent display of DIVISION's Marks as the "Official Vehicle" of Huntington Beach on the twenty (20) Courtesy Vehicle Decals that DIVISION is providing to PROMOTER. DIVISION will create the decals identifying DIVISION as "The Official Vehicle of Huntington Beach." PROMOTER will apply decals to all Courtesy Vehicles immediately after pick-up by the PROMOTER PROMOTER and DIVISION will have the opportunity to approve decal design prior to production. 8. Prominent space, measuring 10' x 10' at the City of Huntington Beach Pier for DIVISION to use for whatever purpose DIVISION chooses, including, but not limited to, the display of its products and services. If DIVISION elects to display vehicles; 1) any vehicles displayed by DIVISION (the "Static Display Vehicles") will be for static display purposes only and the provisions of Section 1, Paragraph D. of this Agreement will apply to the Static Display Vehicles; 2) DIVISION will airange for appropriate transportation of the Static Display Vehicles to and from the display location(s); 3) Specific models and option content will be determined by DIVISION; 4) PROMOTER shall ensure that the vehicles are maintained in a clean condition while on display; 5) PROMOTER will be solely responsible for obtaining any necessary license or permit for the display(s); 6) PROMOTER will make sure vehicle is in safe location and that people are not at risk around vehicle, and 7) DIVISION will remove the Static Display Vehicles on a date and at a time to be mutually agreed upon by the parties, but not later than midnight on the day this Agreement expires. 9. The right to display DIVISION Marks and advertising material on one (1) static sign on the City of Huntington Beach Pier Lifeguard tower. The dimensions of the sign is approximately 3' x 8. These signs will be Iocated at mutually agreed upon locations by both parties. PROMOTER warrants to DIVISION that the Signs can be on display throughout the duration of the Promotion and that they can contain whatever DIVISION Marks and advertising DIVISION elects to produce. DIVISION will be responsible for all expenses for the initial design, layout, fabrication, production, installment and maintenance of its Signs and the removal of them at the expiration or termination of this Agreement. 10. Grant the right to erect tents, temporary signage (banners, pennants, etc) and other display properties at mutually agreed upon beach locations, in conjunction with PROMOTER sponsored events. PROMOTER and DIVISION will agree upon the size and location of tents, signage and display properties. 11. PROMOTER shall provide space at the Huntington Central Park Sports Complex for 3' x 10' signs (the "Signs"), which prominently feature DIVISION'S Marks and advertising material during the sponsorship. These signs will be located at locations to be mutually agreed upon by PROMOTER and DIVISION. PROMOTER warrants to DIVISION that the Signs can be on display throughout the duration of the sponsorship and that they can contain whatever DIVISION Marks and advertising DIVISION elects to produce. DIVISION will be responsible for all expenses for the initial design, layout, fabrication, production, installment and maintenance of its Signs and the removal of them at the expiration or termination of this Agreement. 10012 • PROMOTIONAL AGREEMENT Between General Motors Corporation and City of Huntington Beach EXHIBIT C PROMOTER Loan of Vehicle Terms and Conditions and Vehicle Recelpt Division following Vehicle(s) to .of General Motors Corporation C DMSION") agrees to Ioan the C PROMaMR') from approximately to _ _ . upon. the terms sett forth below: MAKE: MODEL: VIN. PROMOTER'$ ADDRESS: (Street) (City) (State) (Zip e) PHONE: 0 - Terms: 1. The Vehicle(s) istare, and shall remain, the property of DYVISION. 2. PROMOTER agrees that: ($) the Vehicle(s) will not be utilized illeptly, inVr+operly, for hire, as a public conveyance or in any manner. for any political purpose whatsoever, (b) the Vebicle(s) shall be drivers in a gaffe and prudent mantrer by instix4 licensed. drivers, twenty-one (21) years Of age or older Wbo meet the GM Safe Driver Program Driver Conduct ReOreemerm (attached as Exhibit D) and who are officers, directors, erMloyaes, ageltts or subcontractors of PROMOTER or who are driving the Vehicle(s) while on business related to -the activities contemplated under this Agreeramt; (c) PROMOTER shall ensure that no-one .modifies, disconnects, or otherwise interferes with the operation of the odometer, emission control equipment, or any other equipment; (d) PROMOTER acknowledges tewipt of and will obtain from each driver of a Vehicle a signed Driver Conduct Requirements form and shall retain each executed form for three (3) years. and provide them to DWMION at DIVISION'& request; (e) PROMOTER will report ALL incidents/crashes involving a Vehicle to ESIS (General Motors' insurance c ]aims administrator) at 1-800.988.0154 a nd to DIVISION and will follow instruotions provided in the glove: compartment of the Vehicle; (t) without limiting or altering any insurance or irldan nilication obligations contained in this Agreement, PROMOTER will .cooperate with I3MSION in the defense of any clairns'or lawsuits related to PROMOTEWs use or possession of any Vehicle; (g) PRf}NOTER w111 not make any repairs to a Vehicle without the explicit prior conseert of UTS; (h) PROMOTER shall be responsible for all fines, GM PROMOTIONAL ACKIREMEW I I PFUN1'ED01/16W43 REVISED 1IM612001 I&OU forfeitures and penalties incurred by reason of the use of the Vehicle(Q. GM PROMIOMONAL AGREEMENT 12 PRINTED 01/16/2003 REVISED 11/46/2001 WULO EXHIBIT C - CONTINUED 3. DIVISION MAKES NO WARRANTY OTHIRR THAN THAT EXPRESSED IN ITS NEW MUCLE I.Da'TED WARRANTY, A FRRTM COPY OF WHICH IS FURNISHED WITH THE VEHICLE. DIVISION audwrizea PROMOTER to obtain, on DIVISION's behalf as owner of *w Vehicle(s), such wazmty service as is necessary and provided for under the new vehicle littuted warranty. Ordinary operating expenses such as gas, oil, grease, tiro repair and other incidentals are the responsibility of PROMOTER, 4. PROMOTER agrees to defend, indemnify and hold DIVISION harmless from all claims, liability and expenses arising out of PROMbM's use or possession of any Vehicle. In addition PROMOTER agrees to obtain and maintain, at its own expense, comprehensive auternobik . liability insurance (covering all owned, non -owned and hired v chides) with litnits of not less than S5,000.000,per ore mace combined single lirdt for pamnel iWury v4 property dump, including all statutory coverage for all states at operation. PROMOTER will also provide coMrehensive (fire and theft) and collision coverage on the VeWcle(s). Prior to reeaig of the Vehide(s), PROMOTER will provide DIMION with it certificate of iaswwve evidencing General Motors Corporation as.an additional insured, sating that such inmrunce is prirtuo in Coverage to any o ther insurance which may b e available t o 0 eneral' Motors C oq*ration, and providing at least thirty .(30) days' prior written notice to DIVISION of cancellation, modification, or Material change to the policy. S. At the end of the term of the loan, or earlier if requested by DIVNION, PROMOTER will return the Vehicles) to the nearest IIVISION office or such other Iocation as designated by DMSION. 'If a Vehicle triust be m overed by DIVISION or repaired to restore it to the condition in .which ft was delivered (reasonable w ear a nd tear, as defined by Goveral Motors Corporation guidelines, excepted), then PROMOTER will pay DMSION any costs incurred by DIVISION to recover rite Vehicle mW to repair it. If, in DIVISION's opinion. a Vehicle ca mot or should not be repaired based upon General Motors Corporation's policy for repairingtocrapping dam mod vehicles, then the: Vehicle trust be returned to DMSION and the PROMOTER. will pay DIVISION the Vehicle's value, based upon the following formula- The amount General Motors Corpomtion would have received if the Vehicle had been sold at auction the it, the Vehicle was damaged based on a similar make and model year veebiclo with similar nuleage, as determined by QM NAO Fleet and C,omnercial Operations Auction Results' report, less $4,000. PROMOTIER SIpatm: PrWt Name: Title: Hate: QM PROMIOMONAi. AGREEMENT 13 PRMTED OW1612003 RraVISOD 1110IMt WVaU 0 PROMOTIONAL AGREEMENT Between General Notor: Corporation and City of Huntington Beach EXHIBIT D General Motors Safe Driver Program Driver Conduct Requirements I understand that the loan of this Vehicle is subject to the following terms, and verify'that I am twenty-one (21) years of age or older, posses a valid operator's license, and will — I. ...display such license to the vehicle key issuer at each Vehicle exchange, and wilt comply with all license restrictions. 2. ...never drive while impaired by alcohol, drugs, medicatitfn, illness, faliguc; or injury, 3. ...ens►are the proper use of safety belts and child safety restraints for all occupants. 4. ...obey all applicable motor vehicle laws, codes, and regulations. 5. ...drive in a defensive manner, anticipating situations where incidents are likely to occur- b. . I Jeflain, at all times, from using raft/loser detection devices. 7. .plan trips by selecting the safest route, depart early enough to observe posted speed and traffic regulations, and will be mindful of current and forecasted weather conditions. 8. ...report all Incidents/crashes Involving the. WWI* to ESIS (General Motors' insurance claims adminlstrator) -at 1-800-SM0164 (direction Is provided in the glove compartment of the vehicle) and to DIMION, 9. ...not permit any other person to operate the Vehicle. Furthermore, by signing this receipt and acknowledgrAent, i verity that i have not been convicted withiu the past 35 mouths of any of the following motor vebiele violations; I . Driving while operator's license is suspended, revoked, or denied. 2. Vehicular manslaughter, negligent homicide, felonious driving or felony with a vehicle. 3. Operating a vehicle while 'impaired, under the influence of alcohol or illegal drugs, or refining a sobriety test, OM PROMOTIONAL AGREEMENT 14 PRINTED 41/16003 RAISED i M12401 -w1 viV EXHIBI • D - CONTINUED 4. Failure to stop or identify under a crash (includes leaving the scene of a crash; hit and run; giving false Information to an officer). 5. Eluding or attempting to elude a law enforcement officer. 6. Traffic violation resulting in death or serious injury, 7. Any other significant violation warranting suspension of license. DRIVER'S Signature: PrW Name: Driver's License Number and Siste: (Number) (Slow) Title: Date: GM PROM07IONAL AGREEMENT 15 PRINTED 01/16/2003 REVISED 1110fi12001 EX MIT C - CONTDWED PROMOTER Loan of Yebide Term# and Coladidous and Vehicle Receipt List of vehicles to be attached closer to event. 43M PROMOTIONAL AGREEMENT 16 PRINTED 01/16/2003 RSVISED I IA W2001 REQUEST FOR LATE SUBMITTAL (to accompany RCA's submitted after Deadline Vehicles for Marine Safety Use Council Meeting Date: 31313 Date of This Request: 3124/03 REASON(Why is this RCA being submitted late?): THE CITY RECEIVED NOTICE THAT GMC WAS GOING TO PULL VEHICLES BY 2128. THE CITY RECEIVED AN EXTENSION TO THE MARCH 3 COUNCIL MEETING, THEREFORE, LATE ITEM REQUIRED. EXPLANATION(Why is this RCA necessary to this agenda?): WE NEED TO MAKE THIS COUNCIL MEETING OR CHEVROLET WILL PULL THE VEHICLES. RCA adversely impact the City?): CONSEQUENCES How shall delay of this CITY WILL HAVE TO APPROPRIATE FUNDS FOR THE ACQUISITION OF VEHICLES. Signature: �_a P Approved C1 Denied ✓G'., lc 2=r 4 Ray Silver City Administrator DocumanQ 07114194 RCA ROUTING SHEET INITIATING DEPARTMENT: COMMUNITY SERVICES SUBJECT: APPROVE CHEVROLET DIVISION,GMC PROMOTIONAL CONTRACT FOR FREE LIFEGUARD VEHICLES COUNCIL MEETING DATE: March 3, 2003 RCA ATTACHMENTS .: " STATUS. Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (wlexhibits if applicable) (Signed in AuLl by the Ci!z Attorne Attached Subleases, Third Party Agreements, etc. LApproved as to form by Dty Attorney) Not Applicable Certificates of Insurance (Approved by the City Attome) Not Applicable Financial Impact Statement Unbudget, over $5,000 Not Applicable Bonds If applicable) Not Applicable Staff Re ort If applicable) Not Applicable Commission, Board or Committee Report If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS ti OL. vLtIL L- L, S� U-v 4- EL22 REVIEWED :RETURNED .:° FORWARDED Administrative Staff �— Assistant City Administrator Initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: r � � L RCA Author: JBE:cr I,/