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HomeMy WebLinkAboutHuntington Beach Auto Dealers Association - 2015-06-01.J Dept. I D AD 15-017 Page 1 of 2 Meeting Date: 6/1/2015 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 6/1/2015 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Teri Baker, Assistant to the City Manager SUBJECT: Approve and authorize execution of a Memorandum of Understanding (MOU) between the City and the Huntington Beach Auto Dealers Association extending the Annual Beach Parking Pass incentive program for five (5) years Statement of Issue: In 2011, the City Council authorized a one-year Memorandum of Understanding with the Huntington Beach Auto Dealers Association for a Beach Parking Pass Incentive Program. The pilot program was successful and, in 2012, the City Council authorized a new one-year MOU. In July of 2013, the City Council approved an amendment to the 2012 MOU, which extended the term for one year and authorized the City Manager to execute an amendment for an additional year. The additional year was executed and will expire on June 30, 2015. Financial Impact: The cost of printing the parking passes for this program is approximately $1,900 and is included in the Office of Business Development's budget. Revenue to the City from new car sales for next fiscal year is estimated to be $7.2M in sales tax revenues. Recommended Action: 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." Alternative Action(s): Do not approve the recommended motion and direct staff accordingly. Analysis: In 2011, the City Council authorized a one-year Memorandum of Understanding with the Huntington Beach Auto Dealers Association for a Beach Parking Pass Incentive Program. The program was designed to enhance the local economy and assist local businesses in Huntington Beach. Every auto dealer in Huntington Beach is eligible to receive vouchers for annual parking passes to distribute to new car buyers. The voucher must be redeemed at City Hall for a parking pass. The pilot program was successful and in 2012, the City Council authorized a new one-year MOU with the Auto Dealers Association. In July of 2013, the City Council approved an amendment to the 2012 MOU which extended the term for one year and authorized the City Manager to execute an amendment for an additional year. The additional year was executed and will expire on June 30, 2015. Item 7. - I IHB -92- Dept. ID AD 15-017 Page 2 of 2 Meeting Date: 6/1/2015 The Auto Dealers Association has asked that the program be continued. The dealers have stated that the program serves as a great tool to provide to their customers who have many choices in the area. Since 2011, 20,519 vouchers have been issued from seven (7) dealers. Of that amount 5,885 have been redeemed at City Hall for a parking pass for an overall redemption rate of 29%. The cost of printing the passes is approximately $1,900 per year. While the value of the redeemed parking pass is $150, there is no simple method to calculate the financial impact to the City in providing the parking pass because it is unclear whether some of the passes would have been purchased regardless of the purchase of the car. However, it is known that the majority of the vouchers redeemed are from the Huntington Beach and adjacent cities, which indicates that the program is successful in keeping those vehicle buyers shopping in Huntington Beach. Finally, there is also indication that some passes are renewed the following year. Overall, the use of the beach parking pass is an indirect marketing tool provided by the City at very low cost and it is generally believed to be of high value to the dealers. Other than recommending a longer term (five years), the MOU contains an amendment to allow the parking pass to be transferred to another vehicle that is registered to the same address of the new vehicle. Since the program's inception, the policy has been that parking passes may not be transferred to another vehicle or given to another party. However, after further consideration Staff is recommending that the parking pass be allowed on any vehicle registered to the new vehicle's address. Customers have expressed concern that the pass is not really an incentive if the vehicle they purchase is not used as primary transportation for the family. Staff believes this change in policy will be make the customers happy and will make the program less burdensome for Staff to administer. Finally, it is proposed that the program be expanded to include used vehicle selling for more than $20,000 since there are new vehicles which retail for less. The first year of the program will include a review of including used vehicles. Car dealerships are the largest sales tax generators in Huntington Beach. While this program may or may not be the "tipping point" that encourages buyers to purchase in Huntington Beach, it is nonetheless a strong marketing opportunity for the City and City's dealerships believe that it provides them an extra incentive over dealerships in adjacent communities. Environmental Status: NA Strategic Plan Goal: Strengthen economic and financial stability Attachrnent(s): 1. "Memorandum of Understanding between the City of Huntington Beach and the Huntington Beach Auto Dealers Association" HB -93- Item 7. - 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 1ST day of , 2015 (`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 extend the "Program" to buyers of qualifying used automobiles which sold for $20,000.00 or more in Huntington Beach; 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: 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, 2015 and will end June 30, 2020 unless terminated as set forth below. Termination shall not affect 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 or used automobile for a Beach Parking Pass ("Voucher"). The following minimum information must be provided: The name of the owner of the new or used automobile The new or used automobile make and model 15-4743/121311 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 or used automobile Each Auto Dealership that issues a Voucher will provide instructions to the owner of the new or used 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 or used automobile sold. 2) Vouchers may not be duplicated by Auto Dealers or customers. 3) New or used automobile buyers need not be Huntington Beach residents to participate. 4) In order to redeem a voucher, the City will verify that the voucher is matched with the owner of a new or used automobile using the auto sale transaction paperwork (receipt/Bill of Sale). 5) Each auto dealer will designate a person as the authorized signature for the voucher for City verification. 6) Each auto dealership that has issued a Voucher will submit a quarterly report of the number of new or used 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 or used 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 transferable one time only to another vehicle registered to the same household address as the new or used vehicle purchased as part of the Program. 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. 2 15-4743/121311 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.huntinL,ionbeachcagov/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 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 or used car purchasers in the form of a written agreement and acknowledgement substantially in the form as provided in Exhibit A attached to the Voucher. 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 154743/121311 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. 8. Neither parry shall encumber, assign, or otherwise transfer this MOU, or any right or interest in this MOU, without the express written consent of the other parry. 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 4 154743/121311 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: Auto Dealers: Ken Domer, Assistant City Manager City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, CA 92648 Huntington Beach Auto Dealers Association 2124 Main Street Suite 195 Huntington Beach CA 92648 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 5 15-4743/121311 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 parry shall bear its own attorneys fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non -prevailing parry. IN WITNESS WHEREOF, the parties hereto have caused this MOU to be executed by and through their authorized officers on - �(.�wC Q/ 2015. HUNTINGTON BEACH AUTO DEALERS AS ON By: print name ITS: (circle one) Chairm residen ice President AND print name ITS: (circle one) Secretary/Chief Fin Officer/Asst. Secretary - Treasurer v CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California APPROVED on City Attorney M SfU�1S 154743/121311 APPENDIX A CITY OF HtNTINGTON 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 transferable one time only to another vehicle registered to the same household address as the new or used vehicle purchased as part of the Program. 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. 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.f4ov/residents/caledar,! 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 6tn Street parking meters along Pacific Coast Highway and Beach Boulevard, metered parking lots between Goldenwest Street and Seapoirit "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: 15-4743/121311 su� INSURANCE AND INDEMNIFICATION WAIVER H= ;ems MODIFICATION REQUEST 1. Requested by: Teri Baker 2. Date: 05-27-15 3. Name of contractor/permittee: Huntington Beach Auto Dealers Association 4. Description of work to be performed: MOU for Auto Dealer Parking Pass Program 5. Value and length of contract: 5 years from 6-1-15 6. Waiver/modification request: Waive Insurance Requiements 7. Reason for request and why it should be granted: The auto dealers provide vouchers as an incentive to new and used car buyers which must be redeemed at City Hall for a Parking Pass. There is no risk involved. 8. Identify the risks to the City in approving this waiver/modification: None that I'm aware of. The voucher provides the program rules. Department Head Signature S-Z-/-/ Date: Insurance Waiver Form.doc 5/27/2015 8:47:00 AM City Of Huntingt®n Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachea.gov Office of the City Clerk Joan L. Flynn, City Clerk June 2, 2015 Huntington Beach Auto Dealers Association 2124 Main Street, Suite 195 Huntington Beach, CA 92648 To Whom It May Concern: Enclosed for your records is a copy of the fully executed "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