RESOLUTION NO. R-2022-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PLACENTIA, CALIFORNIA, APPROVING THE
ECONOMIC DEVELOPMENT SUBSIDY REPORT
PREPARED PURSUANT TO GOVERNMENT CODE
SECTION 53083 REGARDING A PARTICIPATION
AGREEMENT BETWEEN THE CITY OF PLACENTIA AND
FAIRWAY FORD AND AUDI NORTH ORANGE COUNTY
A. Recitals
(i). The City of Placentia ("City") is a California municipal corporation; and (ii). Fairway Ford and Audi North Orange County are California Corporations that are qualified to conduct business in the State of California and the City of Placentia; and
(iii). Fairway Ford and Audi North Orange County possesses a valid City of Placentia Business License, Sales Permit from the California Department of Motor Vehicles, and Sales and Use Permit from the State Board of Equalization; and (iv). The sales tax revenue generated by local merchants is critical to the City of Placentia's economic viability; and
(v). Pursuant to Government Code Section 53083, the City has provided detailed terms of a proposed agreement between the City and Fairway Ford and Audi North Orange County in an Economic Development Subsidy Report and provided this information in written form to the public on the City's website; and (vi). The operation of these franchise auto dealerships in Placentia, pursuant to the proposed Agreement, would provide the following benefits to the community:
1. Ensuring increased sales for Fairway Ford and Audi North Orange County and increased sales tax revenue to the City of Placentia, which ultimately funds essential City services while securing the City's long-term financial stability.
2. Create new jobs in the community, thereby stimulating further generation of sales tax revenue and increased demand for local housing, goods, and services.
3. Provide enhanced and increased vitality to a highly visible property along a commercial corridor, making it a more appealing, economically vital destination for prospective car buyers.
(vii). The City, Fairway Ford and Audi North Orange County have negotiated the terms of an Economic Development Subsidy Agreement to ensure the long-term success of these franchise auto dealerships and further the City's sales tax generation; and
Resolution R-2022-25 ATTACHMENT 1
(viii). Pursuant to Government Code 53083, the City has held a noticed public hearing on April 19, 2022 to consider all written and oral comments regarding the proposed economic development subsidy as required by said statute; and (ix). The City has determined that approval of the Agreement is not a "project" as defined by the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.) ("CEQA"), or is exempt pursuant to the State CEQA Guidelines (Cal. Code Regs., § 15000 et seq.) section 15061(b)(3), because the Agreement does not have the potential for resulting in either a significant direct physical change in the environment or a reasonably foreseeable significant indirect physical change in the environment; and (x). The City has duly considered all terms and conditions of the proposed agreement and maintains it serves the public interest of the City of Placentia. (xi). All legal prerequisites to the adoption of this Resolution have occurred.
B. Resolution
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
1. The foregoing recitals are true and correct, and are incorporated herein and made an operative part of this Resolution.
2. The City Council hereby approves the Participating Agreement in the form attached to this Resolution as Exhibit A. The City Council hereby authorizes the City Administrator, with the concurrence of the City Attorney, to execute said Agreement. City Administrator is hereby authorized to take any additional steps necessary to facilitate the intent of this action.
3. Pursuant to the California Environmental Quality Act ("CEQA") (Pub. Res.
Code, § 21000 et seq.) and the State CEQA Guidelines (Cal. Code Regs, tit. 14 § 15000 et seq.), the City is the lead agency for this action. The City Council finds that approving the Operating Covenant Agreement is not a "project" subject to CEQA pursuant to State CEQA Guidelines sections 15060(c)(2), 15060(c)(3), and 15378. Under section 15060(c)(2) an activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment is not subject to environmental review under CEQA. Further, under section 15060(c)(2) an activity that is not a project as defined in CEQA Guidelines section 15378 is also not subject to environmental review under CEQA. Here, approval of the Agreement, in of itself, does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore is not considered a "project' under CEQA. (Pub. Resources Code, § 21065; State CEQA Guidelines, § 15378(a).)
4. The City Council of the City of Placentia approves the Economic Development Subsidy Report as presented or amended by City Council following public Resolution R-2022-25 ATTACHMENT 1
comment.
APPROVED and ADOPTED this 19th day of April, 2022.
Rhonda Shader, , Mayor
ATTEST:
Robert S. McKinnell, City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City Of Placentia do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 19th day of April 2022 by the following vote:
AYES:
Councilmembers:
NOES:
Councilmembers:
ABSENT:
Councilmembers:
ABSTAIN:
Councilmembers:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
Christian L. Bettenhausen, City Attorney
Resolution R-2022-25 ATTACHMENT 1
EXHIBIT A
PARTICIPATION AGREEMENT
[Attached behind this cover page]
Resolution R-2022-25 ATTACHMENT 1
PARTICIPATION AGREEMENT FOR THE CITY OF PLACENTIA
RESIDENT VEHICLE REBATE PROGRAM WITH
CITY OF PLACENTIA VEHICLE DEALERS
This Participation Agreement for the City of Placentia Resident Vehicle Rebate Program ("Agreement") is entered into this 19th day of April 2022, by and between the City of Placentia, a municipal corporation, and the City of Placentia Vehicle Dealer, Fairway Ford and Audi North Orange County, all collectively referred to hereafter as the "Parties."
RECITALS
1. The Parties desire to implement a City of Placentia Resident Vehicle Rebate Program whereby the City shall reimburse the amount of $500.00 to Placentia residents for the purchase or lease- of a new car from a participating Placentia Vehicle Dealer. This agreement will govern the process of reimbursement to participating dealerships that provide a corresponding discount on the purchase/lease price of a new vehicle purchased in the City of Placentia by a citizen of Placentia.
AGREEMENT
2. Rebate Program: The City of Placentia hereby agrees to provide to a participating dealership a rebate of $500.00 per new vehicle purchased or leased by a citizen of Placentia, provided:
A. The dealership documents the sale/lease of a new vehicle to an eligible City of Placentia resident under the program guidelines,
B. Discounts the purchase price of the new vehicle an additional amount of $500.00 from the agreed upon purchase price,
C. Submits to the City within 30 days of the final sale date a City provided rebate request and corresponding proof of sale document under the program guidelines established by the City for administration of the Resident Vehicle Rebate Program.
3. DealershiR Responsibilities: A dealership eligible for participation shall meet all of the following requirements:
A. A new vehicle dealership franchise in good standing with their parent corporation.
B. The dealership shall have no current, outstanding, or unresolved City of Placentia code violations or any legal or administrative proceedings against the City of Placentia.
C. Meet the requirements of the City under the program guidelines established by the City Administrator or designee for the rebate program.
City of Placentia Resident Vehicle Rebate Pi EXHIBIT A
5. Term: The term of this Agreement shall be for a period of three (3) years with no extensions.
6. Reimbursement by City: The City shall reimburse a participating dealership within 30 days of submittal of a request for reimbursement and all required documentation required by the City to verify the sale of a new vehicle under the program guidelines. All purchases shall be bundled and submitted to the City on a monthly basis and reimbursements will be issued on a monthly basis by the City.
7. Administration: The City Administrator is hereby appointed to administer this Agreement and take all necessary actions to implement this Agreement on behalf of the City.
8. Interpretation of the Agreement:
A. This Agreement constitutes the entire agreement between the parties and supersedes all prior discussions, negotiations, and agreements, whether oral or written. Any amendment to this Agreement, including an oral modification supported by new consideration, must be reduced to writing and signed by both parties before it will be effective.
B. This Agreement and all amendments and supplements to it may be executed in counterparts, and all counterparts together shall be construed as one document.
C. This Agreement is to the benefit of, and is binding on, the parties, their respective heirs, personal representatives' successors and assigns.
D. The captions heading the various paragraphs of this Agreement are for convenience and shall not be considered to limit, expand, or define the contents of the respective paragraphs. Masculine, feminine, or neuter gender and the singular and the plural number, shall each be considered to include the other whenever the context so requires. If either party consists of more than one person, each such person shall be jointly and severally liable. This Agreement shall be interpreted under California law and according to its fair meaning, and not in favor of or against any ply.
9. Governing Law: This Agreement is executed and intended to be performed in the State of California, and the laws of that State shall govern its interpretation and effect. Any legal proceedings on this Agreement shall be brought under the jurisdiction of the Superior Court of the County of Orange, State of California.
Executed as of the first date above.
City of Placentia Resident Vehicle Rebate Pi EXHIBIT A
City of Placentia
LO -A
Damien Arrula
Its: City Administrator
Approved as to Form:
Christian Bettenhausen, City Attorney
Fairway Ford
LE
Name
Its: Title
Audi North Orange County
Name
Its: Title
City of Placentia Resident Vehicle Rebate Pi EXHIBIT A