HomeMy WebLinkAboutChevrolet Motor Division, General Motors Corporation - 1998-12-21t
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�' ON' BEACH
TO: Rick Amadril, Central Services Manager
Don Noble, Maintenance Operation Manager
Ron Hagan, Community Services Director
Ron Lowenberg, Chief of Police
FROM: Connie Brockway
City Clerk
DATE: November 18, 1999
SUBJECT: General Motors Division — Chevrolet Motor Division
Sequential Central Port Fuel Injector (SCPI) System Failure Condition
The City Clerk's Office received 4 notifications from Chevrolet Motor Division, General
Motors Division regarding certain vehicles, and citing the make and model numbers
which may be experiencing some system failure.
I am transmitting notices to the departments that may have interest in the attached
notification,
CC: Ray Silver, City Administrator
Attachment: Letter dated November, 1999 from Chevrolet Motor Division, General
Motors Corporation
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' • Central Office
Chevrolet Motor Division
General Motors Corporation
100 Renaissance Center, P.O. Box 100, Detroit, MI 46265-1000
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Dear Chevrolet Customer:
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CITY CtLERK
CITY OF
HUN T Ifs T Ci~I 4FkCli, CA
iggq 1UN I b P I2: 02 C99066
November, 1999
As the owner of a 1996, 1997 or 1998 model year S-10, Blazer,
Astro, CIK Pickup, Tahoe, Suburban, Chevy Van/Express or 'P' truck
that is registered in California, equipped with a 4.3L V6, 5.0L V8 or
5.71- V8 engine, and California emissions, your satisfaction with our
product is very important to us,
Condition:
This letter is intended to make you aware that some 1996, 1997, and
1998 model year S-10, Blazer, Astro, CIK Pickup, Tahoe, Suburban,
Chevy Van/Express or 'P' trucks that are registered in California,
equipped with a 4.3L V6, 5.OL V8 or 5.7L V8 engine, and California
emissions, may experience a "Service Engine Soon" light, misfire,
rough idle or hard start due to a deposit buildup on the Sequential
Central Port Fuel Injector (SCPI) poppet valve(s). The deposit
buildup may cause injector poppets to stick closed. Fuels used in
California have been found to interact with the SCPI system to
cause the deposits.
Action:
To address the above -mentioned condition, General Motors is
providing special warranty coverage to owners of applicable vehicles
registered in California. If the SCPI system failure condition occurs
on your 1996, 1997 or 1998 model year S-10, Blazer, Astro, CIK
Pickup, Tahoe, Suburban, Chevy Van/Express or 'P' truck within 10
years of the date your. vehicle was originally placed in service or
100,000 miles, whichever occurs first, the condition will be repaired
for you at no charge. Other conditions that may cause similar or
different driveability complaints, or cause a Malfunction Indicator
Light illumination, that are not a result of SCPI system failures are
not covered by this special policy. Any repairs that would be
necessary due to other conditions would be your responsibility, if
you elect to have your dealer provide the service.
This is not.' a recall campaign. Do not take your vehicle to your
Chevrolet dealer as a result of this letter unless you believe that
your vehicle has the condition as described above.
Reimbursement:
If you have already paid for some or all of the cost to have the SCPI
fuel system repaired or replaced you should write to Chevrolet Motor
Division, P.Q. Box 7047, Troy, Michigan, 48007-7047 to seek
reimbursement. Repairs must have occurred within 10 years of the
date the vehicle was originally placed in service, or 100,000 miles,
whichever occurs first. Please provide your original paid receipts or
invoices verifying the repair, the amount charged, proof of payment,
the date of payment of those charges and proof of ownership of the
vehicle at the time of the repair. This information must be provided
within two (2) years of the date on which you paid for the repair.
If the work was done by someone other than a GM dealership, the
amount of reimbursement will generally be limited to the amount that
the repair would have cost GM to have it completed by a GM
dealership. '
Contacting Your Dealer:
Repairs and adjustments qualifying under this special coverage must
be performed by a Chevrolet dealer. You may want to call the
service department at the dealer to find out how long they will need
to have your vehicle so that you may schedule the appointment at
the most convenient time for you. This will also allow your dealer to
order parts if they are not already in stock. Keep this letter with
your other important glovebox literature for future reference.
Should your dealer be unable to schedule a service date within a
reasonable amount of time, or you have any questions regarding this
special policy, please contact the Chevrolet Customer Assistance
Center at 1-800-222-1020. The deaf, hearing impaired, or speech
impaired should call 1-800-833-2438 (utilizes Telecommunication
Devices for the Deaf/Text Telephones, TDDITTY).
We are sorry to cause any inconvenience you may experience;
however, we have taken this action in the interest of your continued
satisfaction with our products.
Chevrolet Motor Division
General Motors Corporation
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Campaign Information Processing Center J
P.O. Box 8056 h�".7i'c? Q 0,7 4
Royal Oak, MI 48068-9864 Wr
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92648
000001145558 73215 298 1
9906E LGCOM19WOV8191059 C-I
CITY OF HUNTINGTON BEACH
2000 MAIN ST
HUNTINGTON BEACH CA 92648-2702
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Council/Agency Meeting Held: / Z/ 9 j
Detred/Continued to:proved �_ Conditi nail Ap ved 0 Denied
�PJ ty Clerk's Signature
Council Meeting Date: December 21, 1998
Department ID Number: CS 98-045
CITY OF HUNTINGTON BEACH -
REQUEST FOR COUNCIL ACTION r
N
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: RAY SILVER, City Administrator&&-,P
PREPARED BY: RON HAGAN, Director, Community Services ,
SUBJECT: APPROVE CHEVROLET MOTOR DIVISION PROMOTIONAL
CONTRACT FOR FREE LIFEGUARD VEHICLES
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachments)1
Statement of Issue: Should the city continue its promotional agreement with the Chevrolet
Motor Division for the provision of free lifeguard vehicles for the city's Marine Safety service?
Funding Source: Not applicable; agreement saves the General Fund approximately
$220.000 a .year in vehicle acquisition costs._
Recommended Action: Approve promotional agreement with the Chevrolet Motor Division
and authorize the Mayor and City Clerk to execute same.
Alternative Actions : Do not approve the Chevrolet promotional agreement, and
appropriate $220,000 for the acquisition of marine safety vehicles.
Analysis: For the past five years, the city has had a promotional agreement with the
Chevrolet Motor Division to provide vehicles for the city's marine safety service. Each year of
the agreement, Chevrolet provides the city with seven Chevrolet S-10 series trucks; two
Chevrolet Blazers; one GEO Tracker; and, one full-sized Chevrolet pickup for use as
lifeguard vehicles in the marine safety service. In exchange, the city grants to Chevrolet
exclusivity as the official vehicle of the city's marine safety service. The city also grants
Chevrolet exclusivity for promotional activities on the beach during special and specific
events. Chevrolet also has the right to use "THE OFFICIAL VEHICLE OF HUNTINGTON
BEACH MARINE SAFETY" in its advertising and promotional material.
The promotional agreement saves the city approximately $220,000 annually in vehicle
acquisition costs. In addition, the vehicles are exchanged each_year to insure that the marine
1EQUEST FOR COUNCIL ACTfON
MEETING DATE: December 21, 1998 DEPARTMENT ID NUMBER: CS 98-045
safety operation has dependable vehicles to provide safety services to beachgoers. The
promotional agreement has been extremely successful for both parties. Chevrolet is pleased
to be the official vehicle supplier of the Huntington Beach Marine Safety Operation, and the
city is pleased to have Chevrolet as its official marine safety vehicle. The vehicles'
performance has been outstanding and the types of vehicles provided by Chevrolet meet all
of the city's marine safety needs.
Environmental Status: Not applicable
Attachment(s):
RCA Author: RH:cr
Chevrolet.doc -2- 12/21/9810:10 AM
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iR-�z-98
PROMOTIONAL AGREEMENT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
CHEVROLET MOTOR DIVISION
Table of Contents
Section
Page
1
Promotional Considerations
1
2
Use and Protection of Trademarks and Other Intellectual Property
1
3
Exclusivity of Performance
3
4
Term: Right of First Refusal.
3
5
Indemnification .
4
6
Insurance
5
7
Cancellation: Termination for Convenience
6
8
Force Majeure
7
9
Governing Law: Severability
. • 8
10
Compliance with Laws .
8
11
No Implied Waivers
8
12
No Assignment
8
13
Relationship of the Parties
8
14
Notices
9
15
Entire Agreement
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ORIGINAL
PROMOTIONAL AGREEMENT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
CHEVROLET MOTOR DIVISION
This Agreement, dated as of the date of the last signature herein, is entered into by and
between CHEVROLET MOTOR DIVISION, GENERAL MOTORS CORPORATION, a
Delaware corporation, having a place of business at 515 Marin Street, Suite 220, Thousand Oaks,
California 91360 ("DIVISION"), and the CITY OF HUNTINGTON BEACH, a California
corporation, having a place of business at 2000 Main Street, Huntington Beach, California 92648
("CITY").
In consideration of promises hereinafter made to each other, the parties hereto agree
as follows:
1. PROMOTIONAL CONSIDERATIONS
DIVISION agrees to provide the consideration listed on Exhibit "A" attached
hereto. "CITY" for its part, agrees to provide the promotional services and other considerations
to DIVISION listed on Exhibit `B" attached hereto. If vehicles are loaned to CITY as part of the
consideration identified on Exhibit "A", then CITY further agrees to the terms and conditions set
forth on Exhibit "C" attached hereto.
2. USE AND PROTECTION OF TRADEMARKS AND
OTHER INTELLECTUAL PROPERTY
CITY 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.
4is:PCD:Chev 1997
RLS 97-097
It is understood that in promoting CITY's activities, CITY and DIVISION may
make various references to the activities and may display. the Marks of CITY 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 hereto.
CITY 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 of 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.
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 material or other
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41s:PCD:Chev 1997
ILLS 97-097
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. EXCLUSIVITY OF PERFORMANCE
During the term of this Agreement, CITY will not conduct, participate in, nor
allow to be conducted, 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.
4. TERM: RIGHT OF FIRST REFUSAL
The term of this Agreement shall be January 1, 1997, through December 31, 1999.
The term may be extended for two (2) years by written consent of both parties. If CITY intends
to conduct comparable event(s) or promotion activities beyond the term of this Agreement, CITY
shall provide to DIVISION, at least ninety (90) days prior to expiration of this Agreement, a
written proposal for DIVISION to continue its sponsorship. DIVISION shall advise CITY, in
writing, at least ninety (90) days prior to the expiration of this Agreement, whether or not it will
participate on the terms contained in CITY'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
CITY shall be free to negotiate with others; provided, however, that CITY shall not offer terms
to others which are materially different than those previously offered DIVISION without first
offering such different terms to DIVISION.
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RLS 97-097
INDEMNIFICATION
A. CITY agrees to indemnify and hold harmless General Motors Corporation,
its divisions and subsidiaries and their respective 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) CITY's use or possession of any vehicles loaned to it by DIVISION; (2) the services
performed or actions taken by CITY, or those acting under it in connection with this Agreement,
including the operation and management of any event or activity incidental thereto; (3) the
failure of CITY, or those acting under it, to comply with the terms and conditions of this
Agreement; or (4) DIVISION's use of CITY's Marks as authorized by this Agreement.
B. DIVISION agrees to indemnify and hold harmless CITY, its officers,
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, or those acting under it, to comply with
the terms and conditions of this Agreement; or
(2) CITY's use of DIVISION's Marks as authorized by this
Agreement.
C. The obligations to indemnify contained herein shall continue in full force
and effect notwithstanding the termination or cancellation of this Agreement, whether by
expiration of time, by operation of law, or otherwise.
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RLS 97-097
6. INSURANCE
A. If spectator events are identified on Exhibit "D", CITY shall maintain,
during the term of this Agreement, spectator's liability insurance in an amount not less than
1
$5,000,000 per occurrence single limit for personal injury and property damage.
B. If vehicles are loaned to CITY, CITY shall maintain, during the term of
this Agreement, the following kinds of insurance, with minimum limits as set forth below:
(1) Workers' Compensation
(2) Comprehensive Automobile
Statutory (for all states of operation)
including Employer's Liability with
limits of not less than $250,000.
$5,000,000 per occurrence combined
single Liability (covering owned, limit
for personal injury and property damage
non -owned and hired vehicles) including
all statutory coverage for all states of
operation.
(3) Automobile Collision Manufacturer's Suggested Retail Price
Comprehensive less 10%
C. CITY shall furnish DIVISION x-vith a certificate showing the applicable
coverage, naming General Motors Corporation as an additional insured (except (1) 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
�vritten notice to DIVISION of cancellation, modification or material change to the policy. Such
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4.%s:PCD:Chev 1997
RLS 97-097
certificate shall be in a form acceptable to DIVISION and must be underwritten by a carrier
satisfactory to DIVISION. CITY's purchase of appropriate insurance coverage or furnishing of
the certificate shall not release CITY from its obligations or liabilities under this Agreement.
7. CANCELLATION: TERMINATION FOR CONVENIENCE
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 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. Nomithstanding anything to the contrary contained herein, DIVISION
shall have the right to terminate this Agreement, for any reason whatsoever, and without liability
except for payments due prior to the effective date of termination, by giving at least ninety (90)
days' prior written notice of ermination to CITY.
D. In the event this Agreement is canceled or terminated, each party shall
cease using the other party's Marks, and CITY 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
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als: PCD: Chev 1997
RLs 97-097
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CITY, CITY shall return the vehicles to DIVISION within ninety (90) days of the effective date
of such cancellation.
8. FORCE MAJEURE
Any delay or failure of either party to perform its obligations hereunder shall be
excused to the extent that 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 promptly notifies
the other party of the event of force majeure, the anticipated duration of the event of force
majeure, and the steps being taken to remedy the failure. Should the event of force majeure
continue beyond thirty (30) days, or such shorter time period as may be reasonable under the
circumstances, either party may terminate this Agreement, and DIVISION shall be entitled to a
prop rata refund for services not yet performed by CITY.
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RLs 97-097
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9. GOVERNING LAW: SEVERABILITY
This Agreement is to be governed by and construed according to the laws of the
State of Michigan. If any term of this Agreement is invalid 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.
10. 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.
11. NO IMPLIED WAIVERS
Failure by either party at any time to require performance by the other party of
any provisions hereof shall in no way affect the right to require full performance any time
thereafter, nor 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 provision, nor constitute a waiver of
the provision itself.
12. NO ASSIGNMENT
Neither party shall transfer or assign its rights, nor delegate its obligations under
this Agreement to a third party, without the prior written approval of the other party.
13. RELATIONSHIP OF THE PARTIES
CITY and DIVISION are independent contracting parties, and nothing contained
in this Agreement shall be deemed to create a partnership, joint venture or agency relationship
4ls: PCD:Chev 1997
ALS 97-097
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.
14. 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 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.
Balance of page intentionally left blank.
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4/s: PCD:Chev 1997
RI_S 97-097
15. 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 MOTORS CORPORATION
CHEVROLET MOTOR DIVIS115M
He
Title: Circle o e: Chairmen of the Bo
Vice President
Date: 1[ —Z— I qq8
By
Title: Circle one: Secretary, Assistant Secretary,
Chief Financial officer, :assistant Treasurer
Rey a P1
Date:
REVIEWED AND APPROVED:
620M S'51E�w�
City Ad inistrator
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4/s:PCD:Chev 1997
ILLS 97-097
CITY OF HUNTINGTON BEACH
a municipal corporation
Mayor
ATTEST:
City Clerk
APPROV AS TO FORM:
City Attorney, 2(Z'
INITIAL AID APPROVED:
Services
i •
PROMOTIONAL AGREEMENT
BETWEEN
CHEVROLET MOTOR DIVISION
GENERAL MOTORS CORPORATION
AND
THE CITY OF HUNTINGTON BEACH, CALIFORNIA
Division will provide CITY with the following:
l . Beach patrol units to serve as the "Official Vehicles" of the City of Huntington
Beach beginning January 1, 1997, through December 31, 1999.
Two (2) Chevy Blazers, One (1) Geo Tracker, One (1) fall -size and
Seven (7) Chevrolet S-10 Series, Extended -Cab 4x4 Pickups each year prior to
April 1 of each year.
2. Ad copy and layout for nameplate/logo identification for all publications
associated with every event, sponsored by the City of Huntington Beach, that is
held at the Beach. CITY will ensure that the positioning and possible exclusion of
other auto manufacturers and/or other segment competitors for these publications
takes place, should the DIVISION deem necessary.
4/s: PCn:Chev 1997
Exhibit "A"
RL5 97-097
• •
PROMOTIONAL AGREEMENT
BETWEEN
CHEVROLET MOTOR DIVISION
GENERAL MOTORS CORPORATION
AND
THE CITY OF HUNTINGTON BEACH, CALIFORNIA
I ON It I 311W
CITY will provide the following, subject to DIVISION's prior approval:
1. Designation of DIVISION's S-10 Series, Geo Tracker, Chevy Blazer and full-size pickup
vehicles as the "Official Marine Safety Vehicles" of the City of Huntington Beach and
CITY's "Beach Patrol Vehicles."
2. CITY will grant to DIVISION the right to use the City of Huntington Beach Name and
logo in advertising and promotion referencing DIVISION's "Official Vehicle" status.
CITY will recognize DIVISION'S "Official Vehicle" status in all advertising and
merchandising associated with events sponsored by CITY at its beach.
4. CITY will allow DIVISION to place S-10 Series "Official Vehicle" decals/stickers on the
vehicles provided by DIVISION as detailed on Exhibit "A", and will obtain DIVISION's
prior written approval before placing any other signage on the vehicles.
5. CITY will provide and erect DIVISION nameplate/logo "Official Vehicle" signage or
decal to be placed on the Pier lifeguard tower. CITY will display vehicle on the Pier with
appropriate signage approved by DIVISION.
5. CITY grants DIVISION the right to display vehicles, merchandise and banners and
signage at all of CITY -sponsored Events.
7. CITY grants DIVISION the right to conduct promotional events at the Beach on or
around the following days, or week -ends, if appropriate, during each year of this
Agreement: Memorial Day, fourth of July and Labor Day, hereinafter referred to as
"Promotional Events."
8. CITY grants DIVISION and/or its designate the right to distribute and/or sell
DIVISION's promotional merchandise in conjunction with CITY -sponsored Special
Events.
9. CITY grants DIVISION the right to erect tents, temporary signage (banners, pennants,
etc.), and display up to three (3) cold air -filled balloons (twenty-five feet high) at
mutually agreed upon Beach locations in conjunction with the CITY -sponsored Special
4f'STCU:Chcv 1997
Exhibit "A"
RL5 97-097
0
Events. CITY and DIVISION will agree upon the size and location of the tents and
signage. Such tents, banners and temporary signage shall at all times meet the standards
and requirements of CITY per existing rules, regulations and ordinances.
10. CITY will provide upon DIVISION'S request two (2) product display spaces-(30' x 30')
located in high traffic areas on the Beach or Pier in conjunction with the Promotional
Events.
11. CITY shall provide DIVISION with a minimum of twelve (12) tickets and six (6) VIP
parking spots to each Beach Event sponsored by the CITY that requires tickets.
41s:PCD:Chev 1997
Exhibit "A"
RLS 97-097
i •
PROMOTIONAL AGREEMENT
BETWEEN
CHEVROLET MOTOR DIVISION
GENERAL MOTORS CORPORATION
AND
THE CITY OF HUNTINGTON BEACH, CALIFORNIA
Vehicles furnished to CITY are provided subject to the following terms and conditions:
1. The vehicles are, and shall remain, the property of DIVISION. DIVISION shall not be
liable for any delay in making the vehicles available to CITY.
2. CITY agrees that:
(a) the vehicles will not be utilized illegally, improperly, for hire, as a public
conveyance or in any manner for any political purpose whatsoever;
(b) the vehicles shall be driven in a safe and prudent manner by insured, licensed
drivers, eighteen (18) years of age or older, except for CITY's personnel who are
under eighteen (18) years of age who may operate the vehicles on CITY's beach
or beach service road only;
(c) CITY shall require all occupants to use seat belts;
(d) CITY shall not tamper, disconnect, or otherwise interfere with the operation of the
odometer, emission control equipment, or any other equipment; and
(e) CITY shall be responsible for all fines, forfeitures and penalties incurred by
reason of the use of the vehicles.
DIVISION MAKES NO WARRANTY OTHER THAN THAT EXPRESSED IN
ITS NEW VEHICLE LIMITED WARRANTY, A PRINTED COPY OF WHICH IS
FtiRNISHED WITH EACH OF THE VEHICLES. DIVISION authorizes CITY to
obtain, on DIVISION's behalf as owner of the vehicles, such as warranty service as is
necessary and provided for under the new vehicle limited warranty. Ordinary operating
expenses such as gas, oil, grease, tire repair and other incidentals are the responsibility of
CITY. No modifications may be made to the vehicles beyond those necessary to equip
the vehicles for emergency service and as mutually agreed to by CITY and DIVISION.
4/s:PCD:Chev1997
Exhibit "C"
RLS 97-097
4. All accidents must be reported to DIVISION within forty-eight (48) hours of their
occurrence. Thereafter, a written accident report, using a form provided by the insurer,
must be promptly completed and copies sent to both the insurer and DIVISION. CITY
agrees to cooperate with DIVISION and the insurers in the defense of any claims. If any
of the vehicles are lost, stolen or declared a constructive total loss, CITY shall promptly
notify DIVISION thereof, hold any wreckage for disposal by DIVISION, and pay
DIVISION the Manufacturer's Suggested Retail Price, less then percent (10%), of such
vehicle.
5. At the end of the term of this Agreement, or earlier if requested by DIVISION, CITY
shall return the vehicles in the same condition as delivered, reasonable wear and tear
expected, to the nearest DIVISION office or such other location as designated by
DIVISION. All repairs necessary to restore the vehicles to such condition shall be
performed at a DIVISION approved facility, at the expense of CITY.
6. Should CITY and DIVISION mutually agree not to negotiate a new agreement at the end
of the term of this Agreement or earlier as previously defined in Item 7, Sections A
through D of the Cancellation Clause, DIVISION shall allow CITY to purchase the
current years vehicles at the fair market value of such vehicles at the time of such
cancellation. DIVISION shall also allow CITY to purchase Extended Service Contracts
routinely available for such vehicles.
7. CITY shall have the option to purchase current years' vehicles at the time of the vehicle
exchange at the lowest manufacturer -to -dealer price for a similar vehicle with the same
mileage and in-service time.
41s: PCD:Cher• 1997
Exhibit "C"
RLS 97-097