REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Eric McCoy, Fire Chief
PREPARED BY: Kevin Justen, Senior Management Analyst
Subject:
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Approve and authorize Amendment No. 2 to promotional agreement between the City of Huntington Beach and Southern California Toyota Dealers Advertising Association
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Statement of Issue:
The City of Huntington Beach maintains an agreement and partnership with Toyota Motor Sales, U.S.A., Inc. for 25 vehicles utilized by Marine Safety, Beach Parking and Beach Maintenance divisions. These vehicles are provided at no cost to the City. At this time, it is requested to extend this agreement through February 20, 2027, and provide additional language to the agreement regarding automotive sponsorship rights.
Financial Impact:
The existing agreement saves the City approximately $1,200,000 in General Fund dollars that would otherwise have been spent on directly purchasing the 25 vehicles. The recommended action would have no financial impact to the City.
Recommended Action:
recommendation
Approve and authorize the City Manager to execute Amendment No. 2 to the promotional agreement between the City of Huntington Beach and Southern California Toyota Dealers Advertising Association.
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Alternative Action(s):
Do not approve Amendment No. 2 and direct staff accordingly.
Analysis:
On February 21, 2023, the City Council authorized the execution of an agreement with Toyota Motor Sales, U.S.A., Inc. for them to provide 24 new vehicles at no cost to the City of Huntington Beach for Marine Safety, Beach Parking, and Beach Maintenance. The agreement was amended in October 2024 to add an additional vehicle for use in the Marine Safety Division. The City has had a promotional agreement with Toyota to provide vehicles since 2008. The approved agreement and amendment are shown as Attachment 1.
The initial agreement provides for two two-year extensions. At this time, Toyota wishes to extend the term of the agreement through February 20, 2027. They also requested to update language related to grant sponsorship rights to specify that the City will not approve advertisements from any other automotive brands on our lifeguard towers or fixed structures in the beach area. However, promotions conducted through approved special events are excluded from this restriction within the beach area.
Amendment No. 2 to the promotional agreement is shown as Attachment 2 and includes the contract extension and revision of grant of sponsorship rights language.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Goal 2 - Fiscal Stability, Strategy A - Consider new revenue sources and opportunities to support the City's priority initiatives and projects.
Attachment(s):
1. Agreement with Toyota for Vehicles for Marine Safety, Beach Parking, and Beach Maintenance and Amendment No. 1
2. Amendment No. 2 to Promotional Agreement Between the City of Huntington Beach and Southern California Toyota Dealers Advertising Association