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 , 2022 ("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 in 2011 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
In 2015, the Parties extended the "Program" to buyers of qualifying used automobiles which sold for $20,000.00 or more in Huntington Beach; and
The Parties now desire to extend the "Program" to automobile leases; 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.
This MOU will end 5 years from the effective date 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.
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 any qualified new, used or leased automobile for a Beach Parking Pass ("Voucher"). The City reserves the right to deny vouchers that are incomplete or missing information. The following minimum information must be provided:
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• The name of the owner of the new or used automobile
• The new or used 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 or used automobile
B. Each Auto Dealership that issues a Voucher will provide instructions to the owner of the new, used or leased automobile that he or she will be required to (1) complete the Voucher with the Auto Dealership, (2) Bring the Voucher, Sale Contract/Lease Agreement and a photo identification to Moorehouse Lifeguard Headquarters, 103 Pacific Coast Highway, Huntington Beach, within 45 days of automobile purchase to redeem the Voucher.
I. The vouchers may be redeemed as provided herein, with a limit of one per new, used or leased automobile sold.
II. Vouchers may not be duplicated by Auto Dealers or customers.
III. New, used or leased automobile buyers need not be Huntington Beach residents to participate.
IV. In order to redeem a voucher, the City will verify that the voucher is matched with the owner of a new, used or leased automobile using the auto sale transaction paperwork (Sale Contract/Lease Agreement).
V. Each auto dealer will designate a person as the authorized signature for the voucher for City verification.
VI. Each auto dealership that has issued a Voucher will submit a quarterly report of the number of new, used or leased vehicles sold and number of Vouchers issued during the term of this MOU. The Auto Dealers will designate Peter Shaver 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.
VII. Each participating Auto Dealership will need to abide by the Auto Dealership Procedures for the Auto Incentive Beach Parking Program, included as Appendix B.
C. In addition, each buyer of a new, used or leased car will be required to agree to the following as condition precedent to receiving a Beach Parking Pass:
I. 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.
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If the vehicle owner replaces the car windshield during the year, the Beach Parking Pass may be replaced for $10.00.
Ill. Beach Parking Passes are valid until the stated expiration date of the pass.
IV. The City is not responsible for lost, stolen, or misplaced passes.
V. Possession of the pass does not guarantee a parking space.
VI. Beach Parking Passes may be limited to certain areas at various times during the year at the sole discretion of the City.
VII. 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 6'h 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.
VIII. 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 are included as part of Appendix 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 Community & Library Services Department will retain a record of all Vouchers redeemed during the incentive period in the software system. Additionally, the City 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.
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 3 21-10382/267451
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.
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.
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. Not valid for any Auto Dealer employee or their family.
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. 4 21-10382/267451
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:
Community Development Department Peter Shaver
City of Huntington Beach Huntington Beach Auto Dealers Association 2000 Main Street 630 Main Street
P.O. Box 190 Huntington Beach CA 92648
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 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.
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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 erms and/or provisions of this Agreement or to secure the performance hereof, eact arty 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 _ 2022.
HUNTINGTON BEACH AUTO DEALERS CITY OF HUNTINGTON BEACH, a ASSOCIATION municipal corporation of the State of
California
By:
Pete Shiver
print name
ITS: (circle one) Chairman/President/Vice President
Mayor
ND
By: City Clerk
rint nar INITIATED AND APPROVED:
ITS: (circle one) Secretary/Chief Finanejal Uncle Cp
Officer/Asst. Secretary - Treasurer VP,
Directoi of Community Development
APPROVED AS TO FORM:
City Attorney MU
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APPENDIX A
SAMPLE VOUCHER
Terms and Conditions.
By obtaining an Annual Beach
Parking Pass, you agree to the TINGTON
following:
a) The Beach Parking Pass must be
permanently affixed to the
window on the vehicle for
which it was issued.
b) The Beach Parking Pass may be
ANNUAL BEACH PARKING PASS
replaced for $10.00 for
windshield replacement. The
Beach Parking Pass is valid for VOUCHER
one vehicle and may not be
transferred. This voucher shall be redeemed for a City of Huntington Beach Annual Beach Parking Pass, provided verification of criteria.
To redeem, please bring (1) this voucher, (2) your sale contract, (3) photo identification and (4) vehicle registration to:
c) Beach Parking Passes are valid
The Community & Library Services Department;
for one year (expiration date Moorehouse Lifeguard Headquarters— 103 Pacific Coast Hwy., Huntington Beach, CA 92648. stated on the pass).
MELVIN JOSEPH 2021 JEEP GLADIATOR
d) The City is not responsible for
Name of New Car Owner Vehicle Make & Model
lost, stolen, or misplaced HUNTINGTON BEACH CDJR 1C6HJTFG5ML506554 passes.
Auto Desership Vehicle Identification Number
c) Possession of the pass does
not guarantee a parking space. 07/31/2021
Beach Parking Passes may be
For City Use Only Authorized Signature Date of Purchase limited to certain areas at
various times during the year JAMIE ARCHER
Permit #:
at the sole discretion of the Date Issued: Printed Name OFFER EXPIRES 45 DAYS FROM DATE OF PURCHASE
City. The Voucher MUST be
re-deemed within 45 days of XXXXXXXXXXXX
the vehicle purchase.
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APPENDIX B
Auto Dealership Procedures for Auto Incentive Beach Parking Program The Huntington Beach City Council and the Huntington Beach Auto Dealer Association developed an Auto Incentive Beach Parking Program which provides a voucher for a free annual beach parking pass to buyers of all new cars, used cars over $20,000 (Car Value Pre-Tax), or lessees. This program seeks to enhance the local economy by creating an incentive for local, prospective car purchasers and lessees to shop for automobiles in Huntington Beach because they will be incentivized with this unique perk. This program keeps revenue circulating back into the City of Huntington Beach with additional sales tax revenue from non-residents as well.
Auto Dealers should remember the following regulations and procedures for the Auto Incentive Beach Parking Program.
• Limit of one voucher per qualifying new, used ($20,000 or more), or leased vehicle. • Auto Dealer shall complete the voucher in its entirety by editing the "Annual Beach Parking Pass Voucher" document to match the owner/lessee's information and give the voucher to the car buyer/lessee as a free incentive the day of purchase. • Each Auto Dealer will ensure that an authorized dealer representative will sign each voucher for City verification and that each dealership's authorized representative is responsible for overseeing program procedures, including data reporting. • Customers and Auto Dealers may not duplicate the voucher. • Automobile buyers/lessees do not need to be Huntington Beach residents in order to participate.
• In order to redeem a voucher, the City will verify that the voucher is matched with the owner/lessee of the new, used or leased vehicle by using the auto sale contract/lease agreement paperwork to complete the registration of the parking pass. • A quarterly report of the total number of new/used vehicles sold/leased and number of vouchers issued must be sent to the City by each auto dealership in order to retain a record of issued vouchers.
• Vouchers must be offered to all customers that meet the above guidelines and may not be held to require additional customer duties such as filling out an evaluation or survey. • Auto Dealers should actively market and promote the program.
Voucher Instructions
Each voucher will contain all the necessary information for new/used car purchasers or lessees to obtain their annual Beach Parking Pass. The voucher will contain the following information to be filled in by the dealership at the time of sale:
• Name of Owner/Lessee
• Vehicle Make & Model
• Auto Dealership
• Vehicle Identification Number
• Signature of Authorized Representative (designated by Dealership) • Printed Name of Authorized Signature
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• Date of Purchase
**Illegible or altered vouchers will not be accepted**
**Failure to abide by the policies and procedures in addition to producing any forged or fraudulent vouchers will result in expulsion from the program.** Remind the buyer to bring the following materials within 45 days to Lifeguard Headquarters, 103 Pacific Coast Highway, Huntington Beach:
• Annual Beach Parking Pass Voucher completed by the Auto Dealership • Sale Contract/Lease Agreement
• Photo Identification
Quarterly Reports
The City will collect quarterly sales reports from the auto dealers to indicate the expected number of qualified program participants and the redemption rate. The quarterly reports will be due as follows:
Jan 1 - Mar 31 = Quarter 1 Report due April 15th
Apr 1 - Jun 30 = Quarter 2 Report due July 15th
Jul 1 - Sept 30 = Quarter 3 Report due October 15th
Oct 1 - Dec 31 = Quarter 4 Report due January 15th
Please fill out the quarterly report form provided by the City at the end of each quarter and submit by email to:
Community Enhancement Division - City of Huntington Beach [email protected]
(714) 536-5582
Questions and Concerns
Please direct any questions and concerns regarding the Auto Incentive Beach Parking Program to the City of Huntington Beach at (714) 536-5582.
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