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HomeMy WebLinkAboutHuntington Beach Auto Dealers - 2011-05-02 (2)AMENDMENT NO. 2 TO MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH AUTO DEALERS ASSOCIATION THIS AMENDMENT NO. 2 is made and entered into by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "City", and HUNTINGTON BEACH AUTO DEALERS ASSOCIATION, ("Auto Dealers"), a California 501 (c) 3 nonprofit corporation. WHEREAS, City and Auto Dealers are parties to that certain Memorandum of Understanding (MOU) dated July 2012, whereby the Huntington Beach City Council authorized a pilot program with the Huntington Beach Auto Dealers to provide an Annual Beach Parking Pass ("Beach Parking Pass") to buyers of new automobiles in Huntington Beach; and On July 17, 2013, City and Auto Dealers amended the Original Agreement in the "Amendment No. I to Memorandum of Understanding Between the City of Huntington Beach and the Huntington Beach Auto Dealers Association" to extend the term of the Original Agreement by one year; and City and Auto Dealers wish to amend the Original Agreement and Amendment No. 1 to extend the Term. NOW, THEREFORE, it is agreed by City and Auto Dealers as follows: EXTENSION OF TERM The Term of the MOU is hereby extended for an additional year with an additional option at the City's sole discretion to extend for an additional year with consent of the Auto Dealers so that the term of the original MOU shall extend for a period not to exceed June 30, 2016, unless terminated earlier as provided by the MOU. 2. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the Original Lease shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers on Z&L- 6 %r�, 2014. SIGNATURES CONTAINED ON NEXT PAGE 14-4278/110559 HUNTINGTON BEACH AUTO DEALERS ASSOCIATION, a California 501 (c) 3 nonprofit corporation By: Me7 print name ITS: (circle one) Chairm widen ice President AND print name ITS: (circle one) Secretary/Chief Financial Officer/Asst. Secretary - Treasurer CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California APPROVED AS TO FORM: l l -f �W� City Attolney My (0/17 / ICI 6- Lf 14-4278/110559 2 Dept. ID AD-13-019 Page 1 of 3 Meeting Date: 6/17/2013 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 6/17/2013 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Fred A. Wilson, City Manager SUBJECT: Approve and authorize execution of the First Amendment to the Memorandum of Understanding (MOU) between the City and the Huntington Beach Auto Dealers Association extending the Annual Beach Pass Program incentive program for one year (July 1, 2013 - June 30, 2014) with an additional one year option to renew (July 1, 2014 - June 30, 2015) Statement of Issue: On May 2, 2011, the City Council authorized the City Manager to execute and agreement with the Huntington Beach Auto Dealers Association for a one-year Annual Beach Parking Pass incentive program. The program has been successful and the Auto Dealers Association has expressed,' interest in continuing the program another year. Staff is recommending a one year extension of the program (July 1, 2013 - June 30, 2014) with an option to renew for one additional year (July 1, 2014 — June 30, 2015) Financial Impact: The cost of printing the parking passes for this program is approximately $1900 and is included in the Community Services Department budget. Sales tax revenue to the City in new car sales for next fiscal year is estimated to be $4.4 million. Recommended Action: Approve and authorize the Mayor and City Clerk to execute "Amendment No. 1 to the Memorandum of Understanding Between the City of Huntington Beach and the Huntington Beach Auto Dealers Association" extending the term for one year with a one year option to renew, and authorize the City manager to execute the option. Alternative Action(s): A) Receive and file the program evaluation report for the second year of the Annual Beach Parking Pass incentive program and discontinue the program. B) Receive and file the program evaluation report for the second year of the Annual Beach Parking Pass incentive program and direct staff accordingly. Analysis: In May of 2011, the City Council authorized an agreement with the Huntington Beach Auto Dealers Association for a pilot program to provide an Annual Beach Pass voucher to each new car sold in Huntington Beach. The pilot program was designed to enhance the local economy and assist local businesses. After the one-year pilot program, staff provided the council with an analysis of the Item 14. - 1 HB -224- Dept. ID AD-13-019 Page 2 of 3 Meeting Date: 6/17/2013 program and on July 16, 2012, the City Council authorized a new one year MOU with the Auto Dealer's Association. Every Auto Dealer in the Huntington Beach Auto Dealer Association is eligible to receive vouchers from the City electronically to distribute to new car buyers. Seven of the eleven dealerships participated during the first year of the program. Nine of the eleven dealerships participated during the second year. As part of the agreement, dealerships must submit a quarterly report of the number of new vehicles sold/vouchers issued during the quarter so the city is aware of the number of qualified participants. As of June 1, 2013, the dealerships had distributed a total of 8,393 vouchers. Of the vouchers distributed, 2,001 had been redeemed for a Parking Pass, yielding a 24% redemption rate. By comparison, during the same period last year, 3,469 vouches had been distributed and 1,662 had been redeemed for a Parking Pass, yielding a 48% redemption rate. Top cities redeeming passes has remained consistent for the most part: Huntington Beach (916) Fountain Valley (143) tx Costa PAesa (79) westminister (74) u, Santa Ana, Irvine, Newport(30 ea ch) Huntington Beach (928) Fountain Valley (147) w Costa Mesa (81) Vi3estrninister (80) v. Long Beach & Irvine (33 each); Santa Ana (11) HB -225- Item 14. - 2 Dept. ID AD-13-019 Page 3 of 3 Meeting Date: 6/17/2013 The participating dealers see value in continuing the program for another year. A brief survey was conducted among the participating dealerships during the first week in June. All of the respondents reported that they feel the offer of a free parking pass helped make the sale. The number of vouchers issued this year certainly indicates that new auto sales have increased dramatically and the economy is improving. Further, this year's evaluation concludes that the program continues to be successful at little cost to the City when compared to new car sales tax generated. For those reasons, staff is recommending that the program be extended another year with a one-year option to renew if the data gathered next year indicates that the program is still needed to boost the economy and help local businesses. Environmental Status: N/A Strategic Plan Goal: Enhance Economic Development Attachment(s): 1. First Amendment to the Memorandum of Understanding Between the City of Huntington Beach and the Huntington Beach Auto Dealers Association. 2. Memorandum of Understanding between the City of Huntington Beach and the Huntington Beach Auto Dealers Association — July 16, 2012. Item 14. - 3 HB -226- ATTACHMENT #1 AMENDMENT NO. 1 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH AUTO DEALERS ASSOCIATION THIS AMENDMENT NO. 1 is made and entered into by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "City", and HUNTINGTON BEACH AUTO DEALERS ASSOCIATION, ("Auto Dealers"), a California 501 (c) 3 nonprofit corporation. WHEREAS, City and Auto Dealers are parties to that certain Memorandum of Understanding (MOU) dated July 2012, whereby the Huntington Beach City Council authorized a pilot program with the Huntington Beach Auto Dealers to provide an Annual Beach Parking Pass ("Beach Parking Pass") to buyers of new automobiles in Huntington Beach; and The "Program" continues to be successful in enhancing local economy by incentivizing prospective purchasers of new automobiles to shop in Huntington Beach with the reward of a free Beach Parking Pass; and The MOU is scheduled to expire by its term on June 30, 2013; and City and Auto Dealers wish to amend the Original Lease to extend the Term, NOW, THEREFORE, it is agreed by LESSEE and LESSOR as follows: 1. EXTENSION OF TERM The Term of the MOU, is hereby extended for an additional year with an additional option at the City's sole discretion to extend for an additional year with consent of the Auto Dealers so that the term of the original MOU shall extend for a period not to exceed June 30, 2015, unless terminated earlier as provided by the MOU. 2. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the Original Lease shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers on o,ol�(�,/lj� ��- , 2013. SIGNATURES CONTAINED ON NEXT PAGE 11-2942.001 /97854 1 HUNTINGTON BEACH AUTO DEALERS ASSOCIATION, a California 501 (c) 3 nonprofit corporation By: rYI 8ig print name ITS: (circle one) Chairman/President/Vice President AND By: G.. print name ITS: (circle one) Secretary/Chief Financial Officer/Asst. Secretary - Treasurer CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California APPROVED AS TO FORM: 5CiAttorney ; y) v Lo REVI D AND APPROVED: Ci an er 11-2942.001 /97854 2 ATTAC H M E N T #2 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH AUTO DEALERS ASSOCIATION This MEMORANDUM OF UNDERSTANDING (MOU) is made and entered into this Z day of --,'7—Gu , 20 ,ld,, ("Effective Date") by and between the HUNTINGTON BEACH AUTO DEALERS ASSOCIATION, ("Auto Dealers"), a California 501 (c) 3 nonprofit corporation and the City OF HUNTINGTON BEACH, a California municipal corporation ("City"). Auto Dealers and City may hereafter collectively be referred to as "the Parties." RECITALS WHEREAS, the Huntington Beach City Council authorized a pilot program with the Huntington Beach Auto Dealers to provide an Annual Beach Parking Pass ("Beach Parking Pass") to buyers of new automobiles in Huntington Beach; and The "Program" continues to be successful in enhancing local economy by incentivizing prospective purchasers of new automobiles to shop in Huntington Beach with the reward of a free Beach Parking Pass; and The Parties desire to enter into this MOU to memorialize their collective objectives and responsibilities regarding continued implementation of the Program, Pursuant to this MOU, Parties agree as follows: 1. The above Recitals are true and correct to the best of each party's knowledge, and such Recitals are incorporated by this reference to be part of this MOU. 2. This MOU will become effective on July 17, 2012 and will end June 30, 2013 unless terminated as set forth below. Termination shall not effect any continuing obligations that may arise from this MOU. This MOU may be terminated by the City or Auto Dealers for any reason with or without cause upon thirty (30) days written notice. 3. The obligations and duties of each Parry are as follows. - A. The City will issue fill -in -the -blank vouchers to Auto Dealers to be exchanged by the owner of the new automobile for a Beach Parking Pass ("Voucher"). The following minimum information must be provided: 11-2942165573 The name of the owner of the new automobile The new automobile make and model The specific Auto Dealership The Vehicle Identification Number An authorized signature from the Auto Dealership that sold the automobile HB -23 1- Item 14. - 8 Date of purchase of the new automobile Each Auto Dealership that issues a Voucher will provide instructions to the owner of the new automobile that he or she will be required to (1) complete the Voucher with the Auto Dealership, (2) Bring the Voucher, Bill of Sale and a photo identification to either the Community Services Department, Civic Center - 5th Floor, 2000 Main Street, Huntington Beach, or Moorehouse Lifeguard Headquarters, 103 Pacific Coast Highway, Huntington Beach, within 30 days of automobile purchase to redeem the Voucher. 1) The vouchers may be redeemed as provided herein, with a limit of one per new automobile sold. 2) Vouchers may not be duplicated by Auto Dealers or customers. 3) Sales of used automobiles do not qualify to receive a Beach Parking Pass. 4) New automobile buyers need not be Huntington Beach residents to participate. 5) In order to redeem a voucher, the City will verify that the voucher is matched with the owner of a new automobile using the auto sale transaction paperwork (receipt/Bill of Sale). 6) Each auto dealer will designate a person as the authorized signature for the voucher for City verification. 7) Each auto dealership that has issued a Voucher will submit a quarterly report of the number of new vehicles sold and number of Vouchers issued during the term of this MOU. The Auto Dealers will designate Bob Miller to act as representative with regard to this MOU. In the event said representative changes, the Auto Dealers agree to meet with the City before designating a new representative. The City shall have input in choosing a representative but will not have discretion in the ultimate choice of a representative. In addition, each buyer of a new car will be required to agree to the following as condition precedent to receiving a Beach Parking Pass: 1) The Beach Parking Pass must be permanently affixed to the inside, lower left corner of the front windshield (driver's side) on the vehicle for which it was issued. 2) The Beach Parking Pass is non -transferable. 3) If the vehicle owner replaces the car windshield during the year, the Beach Parking Pass may be replaced for $10.00. 4) Beach Parking Passes are valid until the stated expiration date of the pass. 5) The City is not responsible for lost, stolen, or misplaced passes. 6) Possession of the pass does not guarantee a parking space. 7) Beach Parking Passes may be limited to certain areas at various times during the year at the sole discretion of the City. The City's website shall be provided for the Specific Events Calendar at www.huntinoznbeachca.gov/residents/calendar/ and for areas where the Beach Parking Pass is valid or may be restricted. 8) The Beach Parking Pass is valid at City Beach parking lots located north and south of the Pier and at the Main Promenade Parking Structure (200 Main Street). Main Promenade Parking Structure has entrances on Walnut and Olive'Streets. Also valid at City beach parking lots from Beach Boulevard to 61h Street, parking meters along Pacific Coast Highway and Beach 2 07-1344116444 Item 14. - 9 HB -232- Boulevard, metered parking lots between Goldenwest Street and Seapoint "Dog Beach" area parking lot adjacent to the Warner Avenue Fire Station and boat launch. Exceptions: The Beach Parking Pass sloes not allow parking on Main Street, The Strand parking structure, at residential or business meters, nor in Duke's Valet designated areas. The above terms will be added as an Exhibit A to the Voucher and must be signed by the new automobile purchaser. 4. The Auto Dealers agree that any discrepancies regarding Vouchers or eligibility to receive a Voucher and/or Beach Parking Pass will be resolved by the City Manager or his designee at his or her sole and absolute discretion. The receipt of a Voucher or Beach Parking Pass is not any type of entitlement or property interest and may be withdrawn or not issued at the sole discretion of the City with no right to appeal. The Auto Dealers will provide all the information contained in this subsection to all new car purchasers in the form of a written agreement and acknowledgement substantially in the form as provided in Exhibit A attached to the Voucher. 5. The Community Services Department will retain a record of all Vouchers redeemed during the incentive period in the software system. Additionally, City Manager's Office will collect quarterly sales reports from the Auto Dealers to indicate the expected number of qualified participants. 6. Upon the prior written approval of City, which approval shall be at the sole discretion of City's City Manager or his designee, Auto Dealers shall have the right to use the official Huntington Beach City Logo and City's "Surf City Huntington Beach" trademark. 7. Auto Dealers shall protect, defend, indemnify and hold harmless City, its officers, officials, employees, and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation, costs and fees of litigation of every nature) arising out of or in connection with performance of this MOU or its failure to comply with arty of its obligations contained in this MOU except such loss or damage which was caused by the sole negligence or willful misconduct of City. In addition to the workers' compensation insurance required by state law, and Auto Dealers' covenant to indemnify City, Auto Dealers shall obtain and furnish to City, a policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify Auto Dealers, its officers, agents and employees, while acting within the scope of their duties, against any and all claims arising out of or in connection with this Agreement, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name City, its agents, its officers, employees and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable shall be deemed excess coverage and that Auto Dealers' insurance shall be primary. Under no circumstances shall the above -mentioned insurance contain a self -insured retention, or a "deductible" or any other similar form of limitation on the required coverage. 11-2942/65573 HB -233- Item 14. - 10 S. Neither party shall encumber, assign, or otherwise transfer this MOU, or any right or interest in this MOU, without the express written consent of the other party. Consent by one party to an assignment or transfer shall not be deemed to be consent to any subsequent assignment or transfer. Any encumbrance, assignment or transfer, without the prior written consent of the other party, whether it be voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of the other party, terminate this MOU. 9. All the terms, covenants and conditions of this MOU shall inure to the benefit of and be binding upon the parties and their successors and assigns. The provisions of this Section shall not be deemed as a waiver of any of the conditions against assignment hereinbefore set forth. 10. Auto Dealers shall employ no City official nor any regular City employee in the work performed pursuant to this MOU. No officer or employee of City shall have any financial interest in this MOU in violation of the applicable provisions of the California Government Code. 11. Auto Dealers shall consult with City prior to issuing any press releases or otherwise making any public statements with respect to this MOU, the transactions contemplated herein, or matters arising herefrom. 12. The remedies given to the parties in this MOU shall not be exclusive but shall be cumulative and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this MOU. 13. The waiver by City of any breach by Auto Dealers of any of the provisions of this MOU, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such breach or a waiver of any subsequent breach by Auto Dealers either of the same or another provision of this MOU. 14. Should the performance of any act required by this MOU to be performed by either City or Auto Dealers be prevented or delayed by reason of an act of God, strike, lockout, labor troubles, inability to secure materials, restrictive governmental laws or regulations, or any other cause (except financial inability) not the fault of the party required to perform the act, the time for performance of the act will be extended for a period equivalent to the period of delay and performance of the act during the period of delay will be excused. 15. Any written notice, given under the terms of this MOU, shall be either delivered personally or mailed, certified snail, postage prepaid, addressed to the party concerned, as follows: City: Bob Hall, Deputy City Manager City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, CA 92648 07-1344/16444 Auto Dealers: Huntington Beach Auto Dealers Association 2124 Main Street Suite 195 Huntington Beach CA 92648 4 Item 14. - 11 NB -234- If a party desires to change the address for notices set forth herein, said party will provide 30 days advance written notice to the other party of any such change. 16. In the event of any litigation to enforce the terms and provisions of this MOU, each party shall bear its own costs and attorney's fees. The prevailing party shall not be entitled to recover its attorneys' fees from the non -prevailing party. 17. The rights and liabilities of the parties, and the interpretation and construction of this MOU, shall be determined in accordance with the laws of the State of California. Any controversy arising out of or under this MOU, if litigated, shall be adjudicated in a court of competent jurisdiction in Orange County, California. 18. Termination of this MOU shall not affect the right of City to enforce any and all indemnities given or made by Auto Dealers under this MOU, nor shall it affect any provision of this MOU that expressly states that the provision shall survive termination thereof. 19. No elective or appointed City or City affiliated board, commission or member thereof, or officer, official, employee or agent of City shall be personally liable to Auto Dealers, its successors and assigns, of any default or breach by City under this MOU or for any amount which may become due to Auto Dealers, its successors and assigns, under this MOU or for any obligation of City under this MOU. 20. This MOU contains and embraces the entire agreement between the parties hereto and neither it, nor any part of it, may be changed, altered, modified, limited or extended orally or by any other agreement between the parties unless such agreement be expressed in writing, signed and acknowledged by City and Auto Dealers, or their successors in interest. 21. Should any provision of this MOU be held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this MOU shall remain in full force and effect unimpaired by the holding, so long as the reasonable expectations of the parties hereto are not materially impaired. 22. This MOU may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same document. 23. No title interest of any kind is hereby given and Auto Dealers shall never assert any claim or title to the Voucher or Annual Pass or any other public property. 24. This MOU shall be interpreted and applied in accordance with California law. Any litigation concerning this MOU shall be brought in Orange County Superior Court. In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorny's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non -prevailing party- 5 11 2942/65573 HB -235- Item 14. - 12 IN WITNESS WHEREOF, the parties hereto have caused this MOU to be executed by and through their authorized officers on HUNTINGTON BEACH AUTO DEALERS AS TION By: tint ��ice ITS: (circle one) ChaPresident AND By: A14 w7e7aa�' print name ITS: (circle one) Secretary/Chief Financial Off1cerlAsst. Secretary -Treasurer 07-1344/16444 CITY OF HUN INGTON BEACH, a municipal corporation of the State of California u Item 14. - 13 HB -236- Appendix A CITY OF HUNTINGTON BEACH ANNUAL BEACH PARKING PASS Terms and Conditions. By obtaining an Annual Beach Parking Pass, you agree to the following: a). The Beach Parking Pass must be permanently affixed to the window orn,tl a vehicle for which it was issued. Affix the Beach Parking Pass to the inside, lower left corner of the front windshield (driver's side). b) ' The Beach Parking Pass is non -transferable. c) If the vehicle owner replaces the car windshield during the year, the Beach Parking Pass may be rep] aced for $10.00. d) Beach Parking Passes are valid until the stated expiration date of the pass. e) The City is not responsible for lost, stolen, or misplaced passes. f) Possession of the pass does not guarantee a parking space. 3 1 1-2942/65573 g) Beach Parking Passes may be limited to certain areas at various times during the year at the sole discretion of the City. The City's website shall be provided for the Specific Events Calendar at www.huntingtonbeachca.gov/residents/calendar/ and for areas where the Beach Parking Pass is valid or may be restricted. h) The Beach Parking Pass is valid at City Beach parking lots located north and south of the Pier and at the Main Promenade Parking Structure (200 Main Street). Main Promenade Parking Structure has entrances on Walnut and Olive Streets. City beach parking lots from Beach Boulevard to 6th Street parking meters along Pacific Coast Highway and Beach Boulevard, metered parking lots between Goldenwest Street and Seapoint "Dog Beach" area parking lot adjacent to the Warner Avenue Fire Station and boat launch. Exceptions. The Beach Parking Pass does not allow parking on Main Street, The Strand parking structure, at residential or business meters, nor in Duke's Valet designated areas. 1 agree to the above Terms and Conditions. Signature: Date: HB -237- Item 14. - 14 City Of Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 * www.hunti.ngtonbeachca.gov Office of the City Clem Joan L. Flynn, City Clerk July.18, 2012 Huntington Beach Auto Dealers Association 2124 Main Street, Suite 196 Huntington Beach CA 92648 To Whom It May Concern: Enclosed for your records is an signed copy of the "Memorandum of Understanding Between the City of Huntington Beach and The Huntington Beach Auto Dealers Association" extending the Annual Beach Parking Pass Incentive Program another year, Sincerely, JF:pe Enclosure G:fb110WUP:agrft Sister Cities: Anjo, Japan ® Waitakere, New Zealand Item 14. - 15 HB -238- City ®f Huntington Beach 2000 Main Street ® Huntington Beach, CA 92648 (714) 536-5227 ® www.huntingtonbeachea.gov Office of the City Clem Joan L. Flynn, City Clerk June 19, 2013 Huntington Beach Auto Dealers Association 2124 Main Street, Ste. 195 Huntington Beach, CA 92648 To Whom It May Concern: Enclosed for your records is a copy of "Amendment No. 1 to Memorandum of Understanding Between The City of Huntington Beach And The Huntington Beach Auto Dealers Association." Sincerely, Joan L. Flynn, CIVIC City Clerk JF:pe Enclosure Sister Cities: Anjo, Japan ® Waitakere, New Zealand Council/Agency Meeting Held: Deferred/Continued to: /.AppR ve ❑ Conditionally Approved ❑ Denied Cit Cl rk' ignatur Council Meeting Date: July 16, 2012 Departmen I Number: AD 12-011 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Bob Hall, Deputy City Manager SUBJECT: Approve and authorize execution of the Memorandum of Understanding (MOU) between the City and the Huntington Beach Auto Dealers Association extending the Annual Beach Parking Pass incentive program another year (July 1, 2012 - June 30, 2013) Statement of Issue: On May 2, 2011, the City Council authorized the City Manager to execute an agreement with Huntington Beach Auto Dealers for the one-year pilot Annual Beach Parking Pass incentive program. Staff has prepared an evaluaton of the pilot program for review, and the City Council is asked to consider extension of the Auto Dealer Annual Beach Parking Pass incentive program period for an additional year. Financial Impact: The cost of printing parking passes for this program is approximately $1,900.00 and is included in the Community Services budget. Revenue to the City in new car sales for the next year is anticipated to be approximately $3.6 million in sales tax revenues. Recommended Action: Motion to: Approve and authorize the Mayor and City Clerk to execute "Memorandum Of Understanding Between the City of Huntington Beach and the Huntington Beach Auto Dealers Association" to continue the Annual Beach Parking Pass incentive program for an additional year. Alternative Action(s): A) Receive and file program evaluation report for the one-year pilot Annual Beach Parking Pass incentive program and discontinue the program. B) Receive and file program evaluation report for the one-year pilot Annual Beach Parking Pass incentive program and direct staff accordingly. HB -145- Item 15. - 1 REQUEST FOR COUNCIL ACTION MEETING DATE: 7/16/2012 DEPARTMENT ID NUMBER: AD 12-011 Analysis: At the May 2, 2011, City Council meeting, Council authorized an agreement with the Huntington Beach Auto Dealers to provide an Annual Beach Parking Pass for each new car sold in Huntington Beach. Designed to enhance the local Huntington Beach economy and assist local businesses, the one-year pilot incentive program began July 1, 2011, and will end June 30, 2012. At the direction of Council it has been requested that staff provide a program evaluation at the end of the pilot year. Every Auto Dealer in the Huntington Beach Auto Dealer Association was eligible to receive vouchers from the City electronically to distribute to new car buyers. Seven of the eleven dealerships chose to participate. As part of the agreement, the city requested that dealerships submit a quarterly report of number of new vehicles sold during the time frame of the program to inform the city of the expected number of qualified pilot incentive participants. As of June 1, 2012, the dealerships had distributed a total of 3,469 vouchers. Of the vouchers distributed, 1,662 had been redeemed for a Parking Pass, yielding a 48% redemption rate. Furthermore, the Community Services Department enrollment software provided hometown information of parking pass holders, showing us data to support the fact that those living in close proximity to Huntington Beach have a higher likelihood to use their pass often: 1 °I marking Pass Holders IM Huntington Beach Im Orange County Im LA County • San Bernardino • Riverside • San Diego County • Outside the area The top cities redeeming passes include: 1. Huntington Beach (916) 2. Fountain Valley (143) 3. Costa Mesa (79) 4. Westminster (74) 5. Santa Ana, Irvine, and Newport Beach (30 each) Item 15. - 2 HB -146- REQUEST FOR COUNCIL ACTION MEETING DATE: 7/16/2012 DEPARTMENT ID NUMBER: AD 12-011 The participating dealers see value in the program and are unanimously in favor of continuing the program for another year. In a brief survey conducted June 1, 2012, all respondents agreed that the dealership benefited from the program as a sales tool. Several also reported that they feel a sale was made because of this offer. Feedback received to improve the program include editing the voucher to eliminate 30 day expiration from date of purchase, adjusting quarterly reporting dates to standardized financial reporting quarters, improved communication with dealerships, and measure frequency of use of parking passes. The evaluation concludes that the program was positively received by the Auto Dealers as a sales tool and by the new car owners receiving a complimentary Beach Parking Pass. For little expenditure cost ($1,900 contract for printing the decals and approximately 150 hours staff time to coordinate the program), the city realizes positive returns through car sales tax and other economic benefits from new car owners utilizing their pass in the beach and downtown areas. To continue measuring outcomes against benchmark data collected during the pilot year, staff recommends continuing the program for one more year. The additional year will allow staff to track those who received passes through the program to determine if they purchase a pass the following year. Environmental Status: n/a Strategic Plan Goal: Enhance economic development Attachment(s): "Memorandum Of Understanding Between the City of Huntington Beach and the Huntington Beach Auto Dealers Association" xB -147- Item 15. - 3 ATTACHMENT #1 Item 15. - 4 HB -148- MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH AUTO DEALERS ASSOCIATION This MEMORANDUM OF UNDERSTANDING (MOU) is made and entered into this day of -,�7—".,V , 20,�A. ("Effective Date") by and between the HUNTINGTON BEACH AUTO DEALERS ASSOCIATION, ("Auto Dealers"), a California 501 (c) 3 nonprofit corporation and the City OF HUNTINGTON BEACH, a California municipal corporation ("City"). Auto Dealers and City may hereafter collectively be referred to as "the Parties." RECITALS WHEREAS, the Huntington Beach City Council authorized a pilot program with the Huntington Beach Auto Dealers to provide an Annual Beach Parking Pass ("Beach Parking Pass") to buyers of new automobiles in Huntington Beach; and The "Program" continues to be successful in enhancing local economy by incentivizing prospective purchasers of new automobiles to shop in Huntington Beach with the reward of a free Beach Parking Pass; and The Parties desire to enter into this MOU to memorialize their collective objectives and responsibilities regarding continued implementation of the Program, Pursuant to this MOU, Parties agree as follows: l . The above Recitals are true and correct to the best of each party's knowledge, and such Recitals are incorporated by this reference to be part of this MOU. 2. This MOU will become effective on July 17, 2012 and will end June 30, 2013 unless terminated as set forth below. Termination shall not effect any continuing obligations that may arise from this MOU. This MOU may be terminated by the City or Auto Dealers for any reason with or without cause upon thirty (30) days written notice. 3. The obligations and duties of each Party are as follows: A. The City will issue fill -in -the -blank vouchers to Auto Dealers to be exchanged by the owner of the new automobile for a Beach Parking Pass ("Voucher"). The following minimum information must be provided: The name of the owner of the new automobile The new automobile make and model The specific Auto Dealership The Vehicle Identification Number An authorized signature from the Auto Dealership that sold the automobile 11-2942/65573 Date of purchase of the new automobile Each Auto Dealership that issues a Voucher will provide instructions to the owner of the new automobile that he or she will be required to (1) complete the Voucher with the Auto Dealership, (2) Bring the Voucher, Bill of Sale and a photo identification to either the Community Services Department, Civic Center - 5th Floor, 2000 Main Street, Huntington Beach, or Moorehouse Lifeguard Headquarters, 103 Pacific Coast Highway, Huntington Beach, within 30 days of automobile purchase to redeem the Voucher. 1) The vouchers may be redeemed as provided herein, with a limit of one per new automobile sold. 2) Vouchers may not be duplicated by Auto Dealers or customers. 3) Sales of used automobiles do not qualify to receive a Beach Parking Pass. 4) New automobile buyers need not be Huntington Beach residents to participate. 5) In order to redeem a voucher, the City will verify that the voucher is matched with the owner of a new automobile using the auto sale transaction paperwork (receipt/Bill of Sale). 6) Each auto dealer will designate a person as the authorized signature for the voucher for City verification. 7) Each auto dealership that has issued a Voucher will submit a quarterly report of the number of new vehicles sold and number of Vouchers issued during the term of this MOU. The Auto Dealers will designate Bob Miller to act as representative with regard to this MOU. In the event said representative changes, the Auto Dealers agree to meet with the City before designating a new representative. The City shall have input in choosing a representative but will not have discretion in the ultimate choice of a representative. In addition, each buyer of a new car will be required to agree to the following as condition precedent to receiving a Beach Parking Pass: 1) The Beach Parking Pass must be permanently affixed to the inside, lower left corner of the front windshield (driver's side) on the vehicle for which it was issued. 2) The Beach Parking Pass is non -transferable. 3) If the vehicle owner replaces the car windshield during the year, the Beach Parking Pass may be replaced for $10.00. 4) Beach Parking Passes are valid until the stated expiration date of the pass. 5) The City is not responsible for lost, stolen, or misplaced passes. 6) Possession of the pass does not guarantee a parking space. 7) Beach Parking Passes may be limited to certain areas at various times during the year at the sole discretion of the City. The City's website shall be provided for the Specific Events Calendar at www.huntingtonbeachca.gov/residents/calendar/ and for areas where the Beach Parking Pass is valid or may be restricted. 8) The Beach Parking Pass is valid at City Beach parking lots located north and south of the Pier and at the Main Promenade Parking Structure (200 Main Street). Main Promenade Parking Structure has entrances on Walnut and Olive' Streets. Also valid at City beach parking lots from Beach Boulevard to 6th Street, parking meters along Pacific Coast Highway and Beach 2 07-1344/16444 Boulevard, metered parking lots between Goldenwest Street and Seapoint "Dog Beach" area parking lot adjacent to the Warner Avenue Fire Station and boat launch. Exceptions: The Beach Parking Pass does not allow parking on Main Street, The Strand parking structure, at residential or business meters, nor in Duke's Valet designated areas. The above terms will be added as an Exhibit A to the Voucher and must be signed by the new automobile purchaser. 4. The Auto Dealers agree that any discrepancies regarding Vouchers or eligibility to receive a Voucher and/or Beach Parking Pass will be resolved by the City Manager or his designee at his or her sole and absolute discretion. The receipt of a Voucher or Beach Parking Pass is not any type of entitlement or property interest and may be withdrawn or not issued at the sole discretion of the City with no right to appeal. The Auto Dealers will provide all the information contained in this subsection to all new car purchasers in the form of a written agreement and acknowledgement substantially in the form as provided in Exhibit A attached to the Voucher. 5. The Community Services Department will retain a record of all Vouchers redeemed during the incentive period in the software system. Additionally, City Manager's Office will collect quarterly sales reports from the Auto Dealers to indicate the expected number of qualified participants. 6. Upon the prior written approval of City, which approval shall be at the sole discretion of City's City Manager or his designee, Auto Dealers shall have the right to use the official Huntington Beach City logo and City's "Surf City Huntington Beach" trademark. 7. Auto Dealers shall protect, defend, indemnify and hold harmless City, its officers, officials, employees, and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation, costs and fees of litigation of every nature) arising out of or in connection with performance of this MOU or its failure to comply with any of its obligations contained in this MOU except such loss or damage which was caused by the sole negligence or willful misconduct of City. In addition to the workers' compensation insurance required by state law, and Auto Dealers' covenant to indemnify City, Auto Dealers shall obtain and furnish to City, a policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify Auto Dealers, its officers, agents and employees, while acting within the scope of their duties, against any and all claims arising out of or in connection with this Agreement, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name City, its agents, its officers, employees and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable shall be deemed excess coverage and that Auto Dealers' insurance shall be primary. Under no circumstances shall the above -mentioned insurance contain a self -insured retention, or a "deductible" or any other similar form of limitation on the required coverage. 11-2942/65573 8. Neither party shall encumber, assign, or otherwise transfer this MOU, or any right or interest in this MOU, without the express written consent of the other party. Consent by one party to an assignment or transfer shall not be deemed to be consent to any subsequent assignment or transfer. Any encumbrance, assignment or transfer, without the prior written consent of the other party, whether it be voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of the other party, terminate this MOU. 9. All the terms, covenants and conditions of this MOU shall inure to the benefit of and be binding upon the parties and their successors and assigns. The provisions of this Section shall not be deemed as a waiver of any of the conditions against assignment hereinbefore set forth. 10. Auto Dealers shall employ no City official nor any regular City employee in the work performed pursuant to this MOU. No officer or employee of City shall have any financial interest in this MOU in violation of the applicable provisions of the California Government Code. 11. Auto Dealers shall consult with City prior to issuing any press releases or otherwise making any public statements with respect to this MOU, the transactions contemplated herein, or matters arising herefrom. 12. The remedies given to the parties in this MOU shall not be exclusive but shall be cumulative and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this MOU. 13. The waiver by City of any breach by Auto Dealers of any of the provisions of this MOU, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such breach or a waiver of any subsequent breach by Auto Dealers either of the same or another provision of this MOU. 14. Should the performance of any act required by this MOU to be performed by either City or Auto Dealers be prevented or delayed by reason of an act of God, strike, lockout, labor troubles, inability to secure materials, restrictive governmental laws or regulations, or any other cause (except financial inability) not the fault of the party required to perform the act, the time for performance of the act will be extended for a period equivalent to the period of delay and performance of the act during the period of delay will be excused. 15. Any written notice, given under the terms of this MOU, shall be either delivered personally or mailed, certified mail, postage prepaid, addressed to the party concerned, as follows: City: Bob Hall, Deputy City Manager City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, CA 92648 Auto Dealers: Huntington Beach Auto Dealers Association 2124 Main Street Suite 195 Huntington Beach CA 92648 E 07-1344/16444 If a party desires to change the address for notices set forth herein, said party will provide 30 days advance written notice to the other party of any such change. 16. In the event of any litigation to enforce the terms and provisions of this MOU, each party shall bear its own costs and attorney's fees. The prevailing party shall not be entitled to recover its attorneys' fees from the non -prevailing party. 17. The rights and liabilities of the parties, and the interpretation and construction of this MOU, shall be determined in accordance with the laws of the State of California. Any controversy arising out of or under this MOU, if litigated, shall be adjudicated in a court of competent jurisdiction in Orange County, California. 18. Termination of this MOU shall not affect the right of City to enforce any and all indemnities given or made by Auto Dealers under this MOU, nor shall it affect any provision of this MOU that expressly states that the provision shall survive termination thereof. 19. No elective or appointed City or City affiliated board, commission or member thereof, or officer, official, employee or agent of City shall be personally liable to Auto Dealers, its successors and assigns, of any default or breach by City under this MOU or for any amount which may become due to Auto Dealers, its successors and assigns, under this MOU or for any obligation of City under this MOU. 20. This MOU contains and embraces the entire agreement between the parties hereto and neither it, nor any part of it, may be changed, altered, modified, limited or extended orally or by any other agreement between the parties unless such agreement be expressed in writing, signed and acknowledged by City and Auto Dealers, or their successors in interest. 21. Should any provision of this MOU be held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this MOU shall remain in full force and effect unimpaired by the holding, so long as the reasonable expectations of the parties hereto are not materially impaired. 22. This MOU may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same document. 23. No title interest of any kind is hereby given and Auto Dealers shall never assert any claim or title to the Voucher or Annual Pass or any other public property. 24. This MOU shall be interpreted and applied in accordance with California law. Any litigation concerning this MOU shall be brought in Orange County Superior Court. In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non -prevailing ply- 5 11-2942/65573 IN WITNESS WHEREOF, the parties hereto have caused this MOU to be executed by and through their authorized officers on 2 Q HUNTINGTON BEACH AUTO DEALERS ASSOGIATION ITS: (circle one) AND By: print name ITS: (circle one) Secretary/Chief Financial Off cer/Asst. Secretary - Treasurer 07-1344/16444 CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California INIT D APPROVED: 4 1 Manager APPROVED AS T ity Attorney E. Appendix A CITY OF HUNTINGTON BEACH ANNUAL BEACH PARKING PASS Terms and Conditions. By obtaining an Annual Beach Parking Pass, you agree to the following: a). The Beach Parking Pass must be permanently affixed to the window on --the vehicle for which it was issued. Affix the Beach Parking Pass to the inside, lower left corner of the front windshield (driver's side). b) The Beach Parking Pass is non -transferable. c) If the vehicle owner replaces the car windshield during the year, the Beach Parking Pass may be replaced for $10.00. d) Beach Parking Passes are valid until the stated expiration date of the pass. e) The City is not responsible for lost, stolen, or misplaced passes. 0 Possession of the pass does not guarantee a parking space. 3 1 1-2942/65573 g) Beach Parking Passes may be limited to certain areas at various times during the year at the sole discretion of the City. The City's website shall be provided for the Specific Events Calendar at www.huntingtonbeachca.gov/residents/calendar/ and for areas where the Beach Parking Pass is valid or may be restricted. h) The Beach Parking Pass is valid at City Beach parking lots located north and south of the Pier and at the Main Promenade Parking Structure (200 Main Street). Main Promenade Parking Structure has entrances on Walnut and Olive Streets. City beach parking lots from Beach Boulevard to 6th Street parking meters along Pacific Coast Highway and Beach Boulevard, metered parking lots between Goldenwest Street and Seapoint "Dog Beach" area parking lot adjacent to the Warner Avenue Fire Station and boat launch. Exceptions. The Beach Parking Pass does not allow parking on Main Street, The Strand parking structure, at residential or business meters, nor in Duke's Valet designated areas. I agree to the above Terns and Conditions. Signature: Date: City ®f Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227- ♦ www.huntingtonbeachca.gov Office of the City Clerk Joan L. Flynn, City Clerk July 18, 2012 Huntington Beach Auto Dealers Association 2124 Main Street, Suite 195 Huntington Beach CA 92648 To Whom It May Concern: Enclosed for your records is an signed copy of the "Memorandum of Understanding Between the City of Huntington Beach and The Huntington Beach Auto Dealers Association" extending the Annual Beach Parking Pass Incentive Program another year. Sincerely, JF:pe Enclosure G:followup:agrmtltr Sister Cities: Anjo, Japan ♦ Waitakere, New Zealand MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH AUTO DEALERS ASSOCIATION This MEMORANDUM OF UNDERSTANDING (MOU) is made and entered into this i 5t day of t 20J� ("Effective Date") by and between the HUNTINGTON BEACH AUTO DEALER ASSOCIATION, ("Auto Dealers"), a California 501 (c) 3 nonprofit corporation and the City OF HUNTINGTON BEACH, a California municipal corporation ("City"). Auto Dealers and City may hereafter collectively be referred to as "the Parties." RFMA1,4 WHEREAS, at its meeting held May 2, 2011, the Huntington Beach City Council authorized an agreement with the Huntington Beach Auto Dealers to provide an Annual Beach Parking Pass ("Beach Parking Pass") to buyers of new automobiles in Huntington Beach; and The one year pilot program is contemplated to enhance the Huntington Beach economy and assist local businesses by incentivizing perspective purchasers of new automobiles to shop in Huntington Beach with the reward of a free Beach Parking Pass ("the Program"), The Auto Dealers are governed by a seven member Board of Directors and established to enhance automobile sales in the City; and The Parties desire to enter into this MOU to memorialize their collective objectives and responsibilities regarding implementation of the proposed Program, Pursuant to this MOU, Parties agree as follows: 1. The above Recitals are true and correct to the best of each party's knowledge, and such Recitals are incorporated by this reference to be part of this MOU. 2. This MOU will become effective on July 1, 2011 and will end June 30, 2012 or as otherwise set forth in this MOU, except for any continuing obligations that may arise from this MOU. This MOU may be terminated by any Party with or without cause upon thirty (30) days notice in writing. The obligations and duties of each Party are as follows: Preconditions to the Program: a) The vouchers may be redeemed with the City as provided herein, with a limit of one per new automobile sold. b) Vouchers may not be duplicated by Auto Dealers or customers. c) Sales of used automobile are not part of the Program and do not qualify to receive a Beach Parking Pass. d) New automobile buyers need not be a Huntington Beach resident to participate. 11-2942/65573 e) In order to redeem a voucher, the City will verify that the voucher is matched with the owner of a new automobile using the auto sale transaction paperwork (receipt/Bill of Sale). 0 Each auto dealer will designate a person as the authorized signature for the voucher for City verification. g) Each auto dealership that has issued a Voucher will submit a quarterly report of the number of new vehicles sold and number of Vouchers issued during the term of this MOU. The Auto Dealers will designate Bob Miller to act as representative with regard to this MOU. In the event said representative changes, the Auto Dealers agree to meet with the City before designating a new representative. The City shall have input in choosing a representative but will not have discretion in the ultimate choice of a representative. Vouchers: The City will provide fill in the blank Vouchers requiring the following information be provided: The Name of the Owner of the New Automobile The New Automobile Make and Model The Specific Auto Dealership The Vehicle Identification Number An Authorized Signature from the Auto Dealership that sold the automobile Date of Purchase of the new automobile Each Auto Dealership that issues a Voucher will provide instructions to the owner of the new vehicle that he or she will be required to (1) complete the Voucher with the Auto Dealership, (2) Bring the Voucher, Bill of Sale and a photo identification to either the Community Services Department, Civic Center - 5th Floor, 2000 Main Street, Huntington Beach, or Moorehouse Lifeguard Headquarters 103 Pacific Coast Highway, Huntington Beach, within 30 days of vehicle purchase to redeem the Voucher for a Beach Parking Pass. In addition, each buyer of a new car will be required to agree to the following as condition precedent to receiving a Beach Parking Pass: a). The Beach Parking Pass must be permanently affixed to the window on the vehicle for which it was issued. Affix the Beach Parking Pass to the inside, lower left corner of the front windshield (driver's side). b) The Beach Parking Pass is non -transferable. c) If the vehicle owner replaces the car windshield during the year, the Beach Parking Pass may be replaced for $10.00. d) Beach Parking Passes are valid until the stated expiration date of the pass. e) The City is not responsible for lost, stolen, or misplaced passes. f) Possession of the pass does not guarantee a parking space. 2 07-1344/16444 g) Beach Parking Passes may be limited to certain areas at various times during the year at the sole discretion of the City. The City's website shall be provided for the Specific Events Calendar at www.huntingtonbeachea.gov/residents/calendar/ and for areas where the Beach Parking Pass is valid or may be restricted. h) The Beach Parking Pass is valid at City Beach parking lots located north and south of the Pier and at the Main Promenade Parking Structure (200 Main Street). Main Promenade Parking Structure has entrances on Walnut and Olive Streets. City beach parking lots from Beach Boulevard to 6th Street parking meters along Pacific Coast Highway and Beach Boulevard, metered parking lots between Goldenwest Street and Seapoint "Dog Beach" area parking lot adjacent to the Warner Avenue Fire Station and boat launch. Exceptions. The Beach Parking Pass does not allow parking on Main Street, The Strand parking structure, at residential or business meters, nor in Duke's Valet designated areas. The above terms will be added as an Exhibit A to the Voucher and must be signed by the new automobile purchaser. 4. The Auto Dealers agree that any discrepancies regarding Vouchers or eligibility to receive a Voucher and/or Beach Parking Pass will be resolved by the City Manager or his designee at his or her sole and absolute discretion. The receipt of a Voucher or Beach Parking Pass is not any type of entitlement or property interest and may be withdrawn or not issued at the sole discretion of the City with no right to appeal. The Auto Dealers will provide all the information contained in this subsection to all new car purchasers in the form of a written agreement and acknowledgement substantially in the form as provided in Exhibit A attached to the Voucher. 5. The Community Services Department will retain a record of all Vouchers redeemed during the incentive period in the software system. Additionally, Community Services will collect quarterly sales reports from the Auto Dealers to indicate the expected number of qualified pilot program participants. 6. Upon the prior written approval of City, which approval shall be at the sole discretion of City's City Manager or his designee Auto Dealers shall have the right to use the official Huntington Beach City logo and City's "Surf City Huntington Beach" trademark. 7. Auto Dealers shall protect, defend, indemnify and hold harmless City, its officers, officials, employees, and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation, costs and fees of litigation of every nature) arising out of or in connection with performance of this MOU or its failure to comply with any of its obligations contained in this MOU except such loss or damage which was caused by the sole negligence or willful misconduct of City. In addition to the workers' compensation insurance required -by state law, and Auto Dealers's covenant to indemnify City, Auto Dealers shall obtain and furnish to City, a policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify Auto Dealers, its officers, agents and employees, while acting within the scope of their duties, against any and all claims arising out of or in connection with this Agreement, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated 3 11-2942/65573 general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name City, its agents, its officers, employees and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable shall be deemed excess coverage and that Auto Dealers's insurance shall be primary. Under no circumstances shall the above -mentioned insurance contain a self -insured retention, or a "deductible" or any other similar form of limitation on the required coverage. 8. Neither party shall encumber, assign, or otherwise transfer this MOU, or any right or interest in this MOU, without the express written consent of the other party. A consent by a party to one assignment or transfer to another person shall not be deemed to be a consent to any subsequent assignment or transfer to another person. Any encumbrance, assignment or transfer, without the prior written consent of the other party, whether it be voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of the other party, terminate this MOU. 9. All the terms, covenants and conditions of this MOU shall inure to the benefit of and be binding upon the parties and their successors and assigns. The provisions of this Section shall not be deemed as a waiver of any of the conditions against assignment hereinbefore set forth. 10. Auto Dealers shall employ no City official nor any regular City employee in the work performed pursuant to this MOU. No officer or employee of City shall have any financial interest in this MOU in violation of the applicable provisions of the California Government Code. 11. Auto Dealers shall consult with City prior to issuing any press releases or otherwise making any public statements with respect to this MOU, the transactions contemplated herein, or matters arising here from. 12. The remedies given to the parties in'this MOU shall not be exclusive but shall be cumulative and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this MOU. 13. The waiver by City of any breach by Auto Dealers of any of the provisions of this MOU, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such breach or a waiver of any subsequent breach by Auto Dealers either of the same or another provision of this MOU. 14. Should the performance of any act required by this MOU to be performed by either City or Auto Dealers be prevented or delayed by reason of an act of God, strike, lockout, labor troubles, inability to secure materials, restrictive governmental laws or regulations, or any other cause (except financial inability) not the fault of the party required to perform the act, the time for performance of the act will be extended for a period equivalent to the period of delay and performance of the act during the period of delay will be excused. 15. Any written notice, given under the terms of this MOU, shall be either delivered personally or mailed, certified mail, postage prepaid, addressed to the party concerned, as follows: 07-1344/16444 City: Bob Hall, Deputy City Manager City of Huntington Beach 2000 Main Street P.O. Box 190 Auto Dealers: 20 1 t o U A (k 11151 Huntington Beach, CA 92648 1n11Gq'roVt �at'A(�1} fibs If a party desires to change the address for notices set forth herein, said party will provide 30 days advance written notice to the other party of any such change. 16. In the event of any litigation to enforce the terms and provisions of this MOU, each party shall bear its own costs and attorney's fees. The prevailing party shall not be entitled to recover its attorneys' fees from the non -prevailing party. 17. The rights and liabilities of the parties, and the interpretation and construction of this MOU, shall be determined in accordance with the laws of the State of California. Any controversy arising out of or under this MOU, if litigated, shall be adjudicated in a court of competent jurisdiction in Orange County, California. 18. Termination of this MOU shall not affect the right of City to enforce any and all indemnities given or made by Auto Dealers under this MOU, nor shall it affect any provision of this MOU that expressly states that the provision shall survive termination thereof. 19. No elective or appointed City or City affiliated board, commission or member thereof, or officer, official, employee or agent of City shall be personally liable to Auto Dealers, its successors and assigns, of any default or breach by City under this MOU or for any amount which may become due to Auto Dealers, its successors and assigns, under this MOU or for any obligation of City under this MOU. 20. This MOU contains and embraces the entire agreement between the parties hereto and neither it nor any part of it may be changed, altered, modified, limited or extended orally or by any other agreement between the parties unless such agreement be expressed in writing, signed and acknowledged by City and Auto Dealers, or their successors in interest. 21. Should any provision of this MOU be held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this MOU shall remain in full force and effect unimpaired by the holding, so long as the reasonable expectations of the parties hereto are not materially impaired. 22. This MOU may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same document. 23. No title interest of any kind is hereby given and Auto Dealers shall never assert any claim or title to the Voucher or Annual Pass or any other public property. 11-2942/65573 24. This MOU shall be interpreted and applied in accordance with California law. Any litigation concerning this MOU shall be brought in Orange County Superior Court. In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non -prevailing party. IN WITNESS WHEREOF, the parties hereto have caused this MOU to be executed by and through their authorized officers on '3 ikW 1 , 20jj . HUNTINGTON BEACH AUTO DEALERS AS TION By: mtnam ITS: (circle one) Chairm resident/ cc President AND #e By: „ Gi !2. L �—_ print name ITS: (circle one) Secretary/Chief Financial Officer/Asst. Secretary - reasurer CITY OF HUNTINGTON BEACH, a municipal corporation of the State of INI: D APPROVED: �a it Manager APPROVED AS TO FORM: 0 City Attorney M0 _ % It _ I 07-1344/16444 Appendix A CITY OF HUNTINGTON BEACH ANNUAL BEACH PARKING PASS Terms and Conditions. By obtaining an Annual Beach Parking Pass, you agree to the following: a). The Beach Parking Pass must be permanently affixed to the window on the vehicle for which it was issued. Affix the Beach Parking Pass to the inside, lower left corner of the front windshield (driver's side). b) The Beach Parking Pass is non -transferable. c) If the vehicle owner replaces the car windshield during the year, the Beach Parking Pass may be replaced for $10.00. d) Beach Parking Passes are valid until the stated expiration date of the pass. e) The City is not responsible for lost, stolen, or misplaced passes. f) Possession of the pass does not guarantee a parking space. 3 11-2942/65573 g) Beach Parking Passes may be limited to certain areas at various times during the year at the sole discretion of the City. The City's website shall be provided for the Specific Events Calendar at www.huntingtonbeachca.gov/residents/calendar/ and for areas where the Beach Parking Pass is valid or may be restricted. h) The Beach Parking Pass is valid at City Beach parking lots located north and south of the Pier and at the Main Promenade Parking Structure (200 Main Street). Main Promenade Parking Structure has entrances on Walnut and Olive Streets. City beach parking lots from Beach Boulevard to 6th Street parking meters along Pacific Coast Highway and Beach Boulevard, metered parking lots between Goldenwest Street and Seapoint "Dog Beach" area parking lot adjacent to the Warner Avenue Fire Station and boat launch. Exceptions. The Beach Parking Pass does not allow parking on Main Street, The Strand parking structure, at residential or business meters, nor in Duke's Valet designated areas. I agree to the above Terms and Conditions. Signature: Date: �, ��� • :� 1 Mom. M STATE OF O A U ORANGE I am a citizen of the United States and a resident of the County of Los Angeles; I am over the age of eighteen years, and not a party to or interested in the notice published. I am a principal clerk of the HUNTINGTON BEACH INDEPENDENT, which was adjudged a newspaper of general circulation on September 29, 1961, case A6214, and June 11, 1963, case A24831, for the City of Costa Mesa, County of Orange, and the State of California. Attached to this Affidavit is a true and complete copy as was printed and published on the following date(s): Thursday, May 26, 2011 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on June 27, 2011 at Los Angeles, California Signature �. LEGAL NOTICE .�w. ORDINANCE NO.3913 Adopted by.the City Council on MAY 16, 201 1 "AN ORDINANCE OF THE CITY OF.HUNTINGTON BEACH AMENDINGCHAPTER 3:02 OF THE HUNTINGTON BEACH MUNICIPAL. CODE RELATING TO, THE PURCHASING OF. GOODS AND SERVICES" - SYNOPSIS: THIS ORDINANCE REFLECTS AN INCREASE IN LOCAL VENDOR PREFERENCE FROM 1%,TO 5%. IN'THE BIDDING OF, OR LETTING FOR PROCUREMENT OF SUPPLIES, MATERIALS, EQUIPMENT, AND CONTRACTUAL SERVICES, THE PURCHASING DIVISION- MAY GIVE A PREFERENCE TO LOCAL BUSINESSESES IN MAKING SUCH PURCHASE' OR AWARDING SUCH CONTRACT IN AN AMOUNT NOT TO EXCEED FIVE (5%) PERCENT OF THE LOCAL BUSINESS' TOTAL.BID PRICE, OR $5,000, WHICHEVER AMOUNT IS LOWER (CAPPING THE MAXIMUM BID 'AMOUNT OF $100,000).' THIS PERCENTAGE WOULD APPLY TO BIDS FOR COMMODITIES ONLY. IN ORDER FOR A LOCAL BUSINESS TO BE ELIGIBLE` TOE CLAIM THE PREFERENCE, THE BUSINESS MUST REQUEST THE PREFERENCE IN THE SOLICITATION RESPONSE, AND PROVIDE A COPY OF ITS CURRENT BUSINESS LICENSE FROM THE CITY OF HUNTINGTON BEACH. PASSED AND ADOPTED by the City Council of the City of Huntington Beach, at a regular meeting held May.16, 2011 by the following roll call vote: AYES: Shaw, Harper, Hansen;'Carchio, Bohr; Dwyer, Boardman NOES: None ABSTAIN: None, ABSENT: None THE FULL TEXT OF THE ORDINANCE -IS AVAILABLE IN THE CITY�CLERK'S OFFICE. This ordinance is effective 30 days after adoption. CITY OF-HUNTINGTON BEACH 2000 MAIN STREET 'HUNTINGTON BEACH, CA'92646 714-S36-5227 -JOAN L. FLYNN, CITY CLERK Published'.Huntin¢ton Beach Independent Mav 26, 2011 as • CALIFORNIA)STATE OF COUNTY O ORANGE ) I am a citizen of the United States and a resident of the County of Los Angeles; I am over the age of eighteen years, and not a party to or interested in the notice published. I am a principal clerk of the HUNTINGTON BEACH INDEPENDENT,. which.was adjudged a newspaper of general circulation on September 29, 1961, case A6214, and June 11, 1963, case A24831, for the City of Costa Mesa, County of Orange, and the State of California. Attached to this Affidavit is a true and complete copy as was printed and published on the following date(s): Thursday, May 26, 2011 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on June 27, 2011 at Los Angeles, California Signature LEGAL NOTICE ORDINANCE NO.3914 Adopted by the City Council on MAY 16, 2011 "AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 3.03 OF THE HUNTINGTON BEACH MUNICIPAL CODE RELATING', TO IPRQFESSIONAL SERVICES" SYNOPSIS: THIS ORDINANCE REFLECTS AN INCREASE IN LOCAL VENDOR PREFERENCE FROM 1% TO-5%. FOR PROFESSIONAL SERVICE EVALUATIONS, LOCAL VENDORS WOULD BE AWARDED, FIVE ADDITIONAL POINTS ON A 100 POINT SCALE FOR EXPERIENCE WITH THE'LOCAL AREA. IN ORDER FOR A LOCAL BUSINESS TO . BE ELIGIBLE TO CLAIM THE PREFERENCE, THE BUSINESS MUST REQUEST THE PREFERENCEAN THE SOLICITATION RESPONSE AND PROVIDE A COPY OF ITS CURRENT BUSINESS LICENSE FROM THE CITY OF HUNTINGTON BEACH: PASSED AND ADOPTED by the .City Council of the Cityof Huntington Beach at a regular' meeting'held May 16, 2011 by the following roll call vote: AYES: Shaw, Harper, Hansen, Carchio, Bohr, Dwyer, Boardman NOES: None ABSTAIN: None ABSENT: None THE FULL TEXT OF THE ORDINANCE IS AVAILABLE IN THE, CITY CLERK'S OFFICE. . This ordinance Is effective 30 days after adoption. CITY OF HUNTINGTON BEACH 2000 MAIN STREET HUNTINGTON BEACH, CA 92648 714-536-5227 JOAN L. FLYNN, CITY CLERK Published Huntington Beach Indeoendent May 26.2011 AMIN" W, /pj,-4bu 4n&, Council/Agency Meeting Held:_ 010/ Deferred/Continued to: 1.&P7C� W Approved ❑ Conditionally Approved ❑ Denied Cit erk's gignature Council Meeting Date: May 2, 2011 Department ID Number: AD 11-010 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Fred A. Wilson, City Manager SUBJECT: Approve for introduction Ordinance Nos. 3913 and 3914 amending the Huntington Beach Municipal Code to reflect raising the Local Vendor Preference threshold for commodities and professional services from 1 % to 5%; and authorize execution of an agreement with Huntington Beach Auto Dealers for a one-year pilot Annual Beach Parking Pass incentive program Statement of Issue: As part of the City's Ten Point Plan for Local Business, staff recommends the reevaluation of Local Vendor Preference criteria for procurement to raise preference thresholds for commodities from 1 % to 5%. The Purchasing Division will also give five points local preference for professional services. Additionally, staff recommends a one- year pilot Annual Beach Parking Pass incentive program with Huntington Beach Auto Dealers. Financial Impact: General Fund. (contract for Annual Beach Parking Pass printing) Recommended Action: Motion to: A) Adopt Ordinance 3913, "An Ordinance of the City of Huntington Beach Amending Chapter 3.02 of the Huntington Beach Municipal Code Relating to the Purchasing of Goods and Services," authorizing staff to implement 5% local vendor preference for commodities or $5,000.00, whichever amount is lower (capping the maximum bid amount of $100,000); and, B) Adopt Ordinance 3914, "An Ordinance of the City of Huntington Beach Amending Chapter 3.03 of the Huntington Beach Municipal Code Relating to Professional Services," to provide five additional points for Huntington Beach -based businesses bidding on professional services; and, C) Authorize the City Manager to execute an agreement approved in form by the City Attorney with Huntington Beach Auto Dealers for the one-year pilot Annual Beach Parking Pass incentive program. Alternative Action(s): Do not approve and direct staff accordingly. HB -343- <' REQUEST FOR COUNCIL ACTION MEETING DATE: 5/2/2011 DEPARTMENT ID NUMBER: AD 11-010 Analysis: The City of Huntington Beach annually spends significant amounts on purchasing supplies, materials, and equipment, and contractual and professional services. The dollars used in making these purchases are derived in large measure from taxes and fees from Local Businesses. The City Council has determined that funds generated in the community should, to the extent possible, be placed back in the local economy. Therefore, the City Council has determined that it is in the best interest of the City to give a preference to Local Businesses in making such purchases whenever the application of such a preference is reasonable in light of the dollar -value received in relation to such expenditure. "Local Business" means a vendor, contractor, or consultant who has a valid physical business address located within the City of Huntington Beach, at least six months prior to bid or proposal opening date, from which the vendor, contractor, or consultant operates or performs business on a day-to-day basis, and holds a valid business license by the City of Huntington Beach. The City of Huntington Beach Purchasing Division currently gives a 1 % local preference to Huntington Beach -based qualified vendors that submit bids for city supplies, materials, equipment, and contractual services. Staff recommends increasing local preference to 5% for commodity purchases, and five additional points on a 100 point scale for professional services. According to compiled survey information, 35 cities and special districts in California, including City of Long Beach, City of Costa Mesa, and City of Riverside have approved policies for 5% local vendor preference. While the city receives 1 % back on purchases through sales tax revenue, there are additional economic multipliers that support a percentage increase for local preference, including the 1 % received in property tax and the 4.9% utility user tax from the business. Additionally, for every $1 invested in local business, the city sees $3-$4 in return. Increasing local vendor preference would demonstrate the City's commitment to local business. In the current economic downturn, many local businesses have been forced to close their doors due to severe financial losses. Many of these local business establishments have been doing business in the City of Huntington Beach for many years. Staff finds that the City should promote and stimulate local businesses by increasing local vendor preference for city purchases. Furthermore, this action is necessary to grow the local economy and preserve the local businesses that have diligently served the City of Huntington Beach for many years. Strategies that encourage people to buy locally are an important component of economic sustainability. Retaining local dollars within a community reduces economic export and increases the financial productivity of taxpayer dollars and increases the consumption of local goods and services while fostering a sustainable community. In working towards a sustainable economy, staff recognizes that sustainable procurement policies are an important early step in achieving the objectives of the Ten Point Plan for Local Business. By leveraging the purchasing power of the City to buy local products and services instead of products and services from outside the City of Huntington Beach, it strengthens the local economic activity and employment as well as sets an example that helps foster and maintain a vital economic community for future generations. Item 12. - 2 HB -344- REQUEST FOR COUNCIL ACTION MEETING DATE: 5/2/2011 DEPARTMENT ID NUMBER: AD 11-010 Recommendation: Local Preference in Purchasing Staff recommends an increase in local vendor preference from 1 % to 5%. In the bidding of or letting for procurement of supplies, materials, equipment, and contractual services the Purchasing Division may give a preference to Local Businesses in making such purchase or awarding such contract in an amount not to exceed five (5%) percent of the Local Business' total bid price, or $5,000.00, whichever amount is lower (capping the maximum bid amount of $100,000). This percentage would apply to bids for commodities only. Total bid price shall include not only the base bid price, but also adjustments to that base bid price resulting from alternates requested in the Solicitation. In order for a Local Business to be eligible to claim the preference, the business must request the preference in the Solicitation response and provide a copy of its current business license from the City of Huntington Beach. Professional Services For professional services evaluations, local vendors would be awarded five additional points on a 100 point scale for experience with the local area. Exclusions Public Works projects with grant funds would be excluded from local vendor preference. Auto Dealer Incentive Program Staff also proposes that the City establish a partnership with Huntington Beach Auto Dealers for a one-year pilot incentive program. The city would give each auto dealer vouchers for an Annual Beach Parking Pass for each new car sold in the city of Huntington Beach. The Annual Beach Parking Pass has a value of $150, yet has very little expenditure cost to the City for printing the decals. The total expenditure is the contract for printing: Description Vendor FY 2010/11 Expenditure Printing of Annual Beach Passes R din $6,700 The idea is that the pass would entice new car owners to visit the beach as well as shops and restaurants in the Downtown area. Since the pass is valid for one year, the car owners have the opportunity to visit as often as they would like. This incentive program would encourage people to come to Huntington Beach not only to buy their car but also experience all of the other amenities the City has to offer. HB -45- Item 12. - 3 REQUEST FOR COUNCIL ACTION MEETING DATE: 5/2/2011 DEPARTMENT ID NUMBER: AD 11-010 Additionally, the auto dealers could use this as a marketing opportunity to draw consumers to purchase cars in Huntington Beach rather than at a dealer outside the City. The City would see positive returns through car sales tax as well as other economic benefits from those utilizing the beach parking. Once those who receive the pass experience the benefits of having it for the year, they may be likely to purchase another Annual Beach Parking Pass the following year, which would bring in additional revenue to the City. Environmental Status: N/A Strategic Plan Goal: Enhance Economic Development Attachment(s): Item 12. - 4 HB -346- ATTACHMENT #1 HB -347- Item 12. - 5 ORDINANCE NO. 3913 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 3.02 OF THE HUNTINGTON BEACH MUNICIPAL CODE RELATING TO THE PURCHASING OF GOODS AND SERVICES The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. Section 3.02.180 of the Huntington Beach Municipal Code is hereby amended to read as follows: 3.02.180 Local business preference. (a) Subject to the limitations contained in this section, the Purchasing/Central Services Manager shall extend a bidding advantage to a local business in the form of a 5% preference in the evaluation of bids or proposals for the procurement of goods up to $100,000 (with a maximum benefit of $5,000). (3510-10/01, 3718-08/05) (b) The following contracts are exempt from the provisions of this section: (3510-1o/o1) (1) Contracts funded in whole or in part from grants, donations or gifts to the City if the provisions of this section conflict with any special conditions attached to the grants, donations or gifts, provided the special conditions have been approved and accepted pursuant to the donations policy of the City. (3510-10/01) (2) Emergency procurements. (351 o-1 o/o1) (3) Sole source contracts. (3510-10/01) (c) After a due process hearing, should the City Manager determine that a price preference was received under this section through an intentional misstatement, the recipient of any such price preference shall be subject to a civil penalty of treble the dollar price preference received or $5,000.00, whichever is greater. (35lo-1oro1) SECTION 2 All other sections of Chapter 3.02 not amended hereby remain in full force and effect. 11-2885/63321 Ordinance No. 3913 SECTION 3. This ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of May 2011. ATTEST: City Clerk /�r, APPROVED: tjt6/Vanager APPROVED AS TO FORM: �c Ci Attorney v a� 1 11-2885/63321 2 Ord. No. 3913 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH 1 I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on May 02, 2011, and was again read to said City Council at a regular meeting thereof held on May 16, 2011, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Shaw, Harper, Hansen, Carchio, Bohr, Dwyer, Boardman NOES: None ABSENT: None ABSTAIN: None I, Joan L. Flynn, CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council, do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on May 26, 2011. In accordance with the City Charter of said City Joan L. Flynn, Cily Clerk Senior Deputy City Clerk CVf Clerk and ex-officio erk of the City Council of the City of Huntington Beach, California KEY INSERTIONS: Double underline DELETIONS &tf*et4muo ORDINANCE NO. 3913 LEGISLATIVE DRAFT Section 3.02.180 3.02.180 Local business preference. (a) Subject to the limitations contained in this section, the Purchasing/Central Services Manager shall extend a bidding advantage to a local business in the form of a 4-5% pr4ee preference in the evaluation of bids or proposals for the procurement of goods -up 1 OO 000. (3510-10101, 3718-08/05) (b) The following contracts are exempt from the provisions of this section: (3510-10/01) (1) Contracts funded in whole or in part from grants, donations or gifts to the City if the provisions of this section conflict with any special conditions attached to the grants, donations or gifts, provided the special conditions have been approved and accepted pursuant to the donations policy of the City. (3510-10/01) (2) Emergency procurements. (3510-10/01) (3) Sole source contracts. (3510-10/01) (c) After a due process hearing, should the City ^ a.. inistr-ateT Mana ear determine that a price preference was received under this section through an intentional misstatement, the recipient of any such price preference shall be subject to a civil penalty of treble the dollar price preference received or $5,000.00, whichever is greater. (3510-10/01) 11-2885/63317 ATTACHMENT #2 ORDINANCE NO. 3914 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 3.03 OF THE HUNTINGTON BEACH MUNICIPAL CODE RELATING TO PROFESSIONAL SERVICES The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. Section 3.03.040 of the Huntington Beach Municipal Code is hereby amended to read as follows: 3.03.040 Selection guidelines. In all cases, the final selection of a consultant shall include consideration of the following factors: (a) Actual capability to complete the project in conformance with the specifications, conditions and other requirements of the City of Huntington Beach; (b) Demonstrated ability to prepare professional, accurate and timely -finished products irrespective of unusual or difficult circumstances. (c) A reasonable contract price in relation to the size, quality and time restraints of the proposed project with due consideration of competitive proposals. (2047-5n6) (d) Consultant status will be verified through State and Federal registries to identify debarment, suspension, ineligibility or voluntary exclusion actions. (3878-5/10) (e) Businesses within the City of Huntington Beach will receive up to five (5) extra points on a 100- point scale when scoring proposals pursuant to this Chapter, as local vendor preference. effect. SECTION 2 All other sections of Chapter 3.03 not amended hereby remain in full force and SECTION I This ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of May , 2011. ATTEST: City Clerk APPROVED AS TO FORM: Ci y Attorney ✓-14 �954� 11-2885/63322 ja Ord. No. 3914 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on May 06, 2011, and was again read to said City Council at a regular meeting thereof held on May 16, 2011, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: NOES: ABSENT: Shaw, Harper, Hansen, Carchio; Bohr, Dwyer, Boardman None None ABSTAIN: None I, Joan L. Flynn, CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council, do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on May 26, 2011. In accordance with the City Charter of said City Joan L. Flynn, Ci _ Clerk Senior Deputy City Clerk KM QA&.) 0�- A— 2 C9 Clerk and ex-officio OleW of the City Council of the City of Huntington Beach, California KEY INSERTIONS: Double underline DELETIONS ct.;',� ORDINANCE NO. 3914 LEGISLATIVE DRAFT Section 3.03.040 3.03.040 Selection guidelines. In all cases, the final selection of a consultant shall include consideration of the following factors: (a) Actual capability to complete the project in conformance with the specifications, conditions and other requirements of the City of Huntington Beach; (b) Demonstrated ability to prepare professional, accurate and timely -finished products irrespective of unusual or difficult circumstances. (c) A reasonable contract price in relation to the size, quality and time restraints of the proposed project with due consideration of competitive proposals. (2047-5/76) (d) Consultant status will be verified through State and Federal registries to identify debarment, suspension, ineligibility or voluntary exclusion actions. (3878-5/10) (e) Businesses within the City of Huntington Beach will receive up to five (5) extra points on a 100-point scale when scoring proposals pursuant to this Chanter, as local vendor preference. 11-2885/63318 i 77- r commitmentr"4'emonstrates o U to local business o f Stimulates local Vendor, contractor, " Possess a valid City of Huntingtor Beach business license from o Increase local preference to % for procurement '�.�_i- ji o Public Works and grant -funded projects excluded Eligibility: ' :� �'d business license P receive up to 5 extr, scale) when scoring ME * $150 value consumers, yet small for cost o.,..3 the city y for decal printing • Marketing I. .i'III-•..,. opportunity Dealers o Potential to purchase � �iry year, which would raise revenue Motion to: o A) Adopt Ordinance 3913, ""An Ordinance of the City of Huntington Beach Amending Chapter 3.02 Of the Huntington Beach Municipal Code Relating to the Purchasing of Goods and Services." authoring staff to implement a 5% local vendor preference for Commodities or $5,000, whichever amount is lower; and o B) Adopt Ordinance 3914, ""An Ordinance of the City of Huntington Beach Amending Chapter 3.03 of the Huntington Beach Municipal Code Relating to Professional Services"' to provide five additional points for Huntington Beach Based Businesses bidding or Professional Services; and o C) Authorize the City Manager to execute an agreement approved in form by the City Attorney with Huntington Beach Auto Dealers for the one-year pilot Annual Beach Parking Pass incentive program.