HomeMy WebLinkAbout75B - PH - VEHICLE INCENTIVE PROGRAMREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MARCH 19, 2019
TITLE:
PUBLIC HEARING TO APPROVE
AGREEMENT WITH 10 FRANCHISED
VEHICLE DEALERS IN SANTA ANA FOR
ESTABLISHMENT OF THE RESIDENT
VEHICLE INCENTIVE PROGRAM (VIP) IN
THE ANNUAL AMOUNT OF $1,700,000, NOT
TO EXCEED $8,500,000 OVER 5 YEARS
(STRATEGIC PLAN NO. 3,3C)
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
:••:• 9
❑ As Recommended
❑ As Amended
❑ Ordinance on 151 Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Conduct a Public Hearing required pursuant to California Government Code 53083.
2. Authorize the City Manager and Clerk of the Council to execute an agreement with Orange
County Auto Dealers Association (OCADA) comprised of: Audi South Coast, Crevier BMW,
Crevier Mini, Freeway Honda, Guaranty Chevrolet, Lincoln South Coast, Subaru Orange
Coast, Tom's Truck Center, Volkswagen South Coast, Volvo of Orange County to establish
the Resident Vehicle Incentive Program (VIP) for the period of April 1, 2019 to March 31,
2021, with one 2 -year extension option and one additional year option, for a total of
$1,700,000 per year of the agreement, for an amount not to exceed $8,500,000 over a five
year period, subject to non -substantive changes approved by the City Manager and City
Attorney.
3. Authorize $25,000 annually for the administration of the Resident VIP program to be
budgeted in the Sales Rebate account (no. 01118825-62300).
4. Approve an appropriation adjustment to allocate funds in the amount of $440,000 from the
General Non -Departmental Reserve for Appropriation account (no. 01105015-69000) and
appropriate the same amount to the Community Development Agency, Sales Tax Rebate
account (no. 01118825-62300) for the Resident Vehicle Incentive Program for expenditure
in FY 2018-19.
At the December 18, 2018 City Council meeting, the City Council directed staff to finalize the terms
of the Resident Vehicle Incentive Program (VIP). The VIP is a means to spur growth of the local
75B-1
Resident Vehicle Incentive Program (VIP) Agreement
March 19, 2019
Page 2
tax base and to encourage Santa Ana residents to buy local by creating specific incentive programs
aimed to entice residents to buy their products in Santa Ana. The VIP has been developed to
incentivize Santa Ana residents to purchase a car and/or truck from a Santa Ana certified auto
dealer by offering a $500 rebate. The program will also rebate Santa Ana businesses that purchase
vehicles from the qualified franchised vehicle dealerships.
With the new sales tax measure recently passed in Santa Ana, local dealerships stated that the
citywide sales tax increase could lead to decreases in the number of cars sold to residents. The
VIP has been developed in order to address the serious leakage of local automotive purchases to
outside jurisdictions. This represents a serious shifting of local revenues, as well as the loss of
funds needed for vital City services, to outside jurisdictions, resulting in a negative impact on the
City's local economy. This affect is further compounded, as is the resulting downward pressure on
dealer expansion and job growth, by the loss of revenue that is typically generated by servicing of
these vehicles that could have been performed at Santa Ana's local dealerships.
In 2017, the 10 participating dealerships from the Orange County Auto Dealers Association sold
6,220 new cars, with 1,688 (27%) sold to Santa Ana residents; leased 8,348 cars, with 687 (8%)
leased to Santa Ana residents; and sold 5,979 used cars, with 597 (10%) sold to Santa Ana
residents.
In terms of sales tax, the City of Santa Ana receives 1 % of the 7.75% current rate. Data provided
from the Orange County Auto Dealers Association show that average vehicle purchase price in
Orange County is $37,557. The total retail sales generated from Santa Ana residents purchasing
new vehicles from those 10 dealerships (1,688 new vehicles in 2017) was estimated at over $63
million dollars which equates to over $633,000 (1%) to the City in sales tax generated. Used
vehicle sales (597 in 2017), with an average purchase price of $17,705, generated roughly $1
million in total retail sales with 1% ($105,698) back to the City.
Sales Tax Generated 2017
Average OC
Number of Vehicles
Sales Tax Pre -Sales Tax
Vehicle Purchase
Sold to SA Residents
Measure (1%)
Price
(2017
New Vehicles $37,557
1,688
$633,962
Used Vehicles $17,705
597
$105,698
Note: Estimates are based on OCADA sales data
With marketing of the program, staff is expecting that the number of new, leased, and used autos
cars sold to local residents, and entitled to the incentive, could reach up to 3,500 vehicles. With a
rebate amount of $500 per resident, the anticipated first year budget for the program is capped at
$1.7 million dollars with a $25,000 City marketing and administration budget. The below chart
shows the projected sales tax per vehicle to the City at each purchase price level and the estimated
revenue to the City after the rebate is given to the resident.
75B-2
Resident Vehicle Incentive Program (VIP) Agreement
March 19, 2019
Page 3
Example of Revenue Generated Per Vehicle Sold with Rebate Incentive
Purchase Price Sales Tax to
City After April
2019 2.5%
New Vehicles
Rebate to
Residents ($500)
Estimated
Revenue to City
Per Vehicle
$20,000 $500
$500
$0
$30,000 $750
$500
$250
Average $37,557 $938
$500
$439
$40,000 $1000
$500
$500
$50,000 $1250
$500
$750
Used Vehicles
Price
Sold to SA
$15,000 $375
$500
$125
Average $17,70.5 1 $442
$500
$58
$20,000 $500
$500
$0
$25,000 $625
$500
$125
The table below shows the total estimated revenue to the City with a projected 2,025 new cars and
824 used cars sold to Santa Ana Residents for the first year of the program. Estimates for the
amount of revenue that leased vehicles would generate is not currently available as leased revenue
is received overtime.
Estimated Revenue Generated to City for First Year of Program
Note: Estimates are based on OCADA sales data
75B-3
Average
Number of
Sales Tax to
Rebate to
Estimated
OC Vehicle
Projected
City after
Residents
Sales Tax
Purchase
Vehicles
April 2019
($500)
Revenue to
Price
Sold to SA
(2.5%)
City
Residents
New Vehicles
$37,557
2,025
$1,901,323
$1,012,500
$888,823
Used Vehicles
$17,705
824
$364,723
$412,000
$47,277
Note: Estimates are based on OCADA sales data
75B-3
Resident Vehicle Incentive Program (VIP) Agreement
March 19, 2019
Page 4
Program Terms
The proposed terms of the agreement are outlined in the table below:
VIP Terms
Term
2 years with 1 two-year extension
and an additional 1 year extension
for a total of 5 years.
Rebate Amount New Cars
$500
Rebate Amount Leased Cars
$500
Rebate Amount Used Carso)
$500
Effective
Monday, April 1, 2019
Structure
Dealer reimbursed for rebate
Rebate Budget
$1,700,000
City Administration Budget
$25,000
TOTAL ANNUAL BUDGET
$1,725,000
Participating Dealers (10)
Audi South Coast Crevier BMW
Crevier Mini Freeway Honda
Guaranty Chevrolet Lincoln South Coast
Subaru Orange Coast Tom's Truck Center
Volkswagen South Coast Volvo of OC
(7) Minimum Used Car Purchase price of$15,000
Staff is recommending that the rebate is applied towards the final purchase/lease of the vehicle
and not offer a resident's choice to receive a check from the City. Staff has evaluated the options
and determined that if the City issued an individual check to a resident, this would create a
significant processing, auditing and an administrative burden to manage. Additionally, residents
would also have to wait to receive a check from the City instead of receiving the instant incentive.
The first term of the VIP shall be for two years from April 1, 2019 to March 31, 2021. Prior to the
end of the first term, City staff will evaluate the effectiveness of the program, and if determined
effective, make a recommendation to continue the program for an additional two-year term with the
option of a final one-year extension. The program is for a maximum of five years. If after five
years, the City Council may approve to continue the program for additional years if determined that
the VIP has been a successful buy local program for the City.
Government Code Section 53083 requires that the City Council must hold a noticed public hearing
and, prior to the public hearing, provide information to the public through the City's website
regarding the proposed economic development subsidy in a report (Exhibit 2). An "economic
development subsidy" is any expenditure of public funds or loss of revenue of $100,000 or more,
for the purpose of stimulating economic development. The aggregate expenditure of public funds
by the City for the VIP is anticipated to be over $100,000. Although no subsidy will exceed $500 to
any one individual, out of an abundance of caution, staff is going through the necessary steps
related to Californail Government Code 53083. An economic subsidy report has been prepared,
75B-4
Resident Vehicle Incentive Program (VIP) Agreement
March 19, 2019
Page 5
and shall remain available to the public and posted on the City's website until the end date of the
economic development subsidy.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #3 Economic Development, Objective
#3, (Promote a solutions -based customer focus in all efforts to facilitate development and
investment in the community), Strategy C (Explore opportunities to encourage a business friendly
environment within the city through the reduction of non-essential regulatory requirements,
improved coordination between agencies for development review and addition of monetary
incentives).
FISCAL IMPACT
Upon approval of the appropriation adjustment, estimated funds in the amount of $440,000 for the
first three months of this agreement will be available in the Sales Tax Rebate Agreement, Contract
Services account (no. 01118825-62300) for expenditure in FY 2018-19. Of this total, $425,000 is
the estimated amount of the sales tax rebate and $15,000 for the initial administration of the
program. Any unspent balances from these estimates will be carried forward for expenditure in FY
2019-20.
Funds for the agreement period will be budgeted in future fiscal years as follows:
Fiscal Year
Account
Amount
2018-19
01118825-62300
$ 440,000
2019-20
01118825-62300
$1,725,000
2020-21
01118825-62300
$1,725,000
2021-22
01118825-62300
$1,725,000
2022-23
01118825-62300
$1,725,000
2023-24
01118825-62300
$1,285,000
Total
$8,625,000
Steven A. Mendoza
Executive Director
Community Development Agency
APPROVED AS TO FUNDS AND ACCOUNTS:
Kathryn Downs, CPA
Executive Director
Finance and Management Services Agency
Exhibits: 1. Agreement with Franchised Dealerships
2. Economic Subsidy Report
3. Program Guidelines
75B-5
75B-6
EXHIBIT 1
PARTICIPATION AGREEMENT FOR THE CITY OF SANTA ANA
VEHICLE INCENTIVE PROGRAM WITH
SANTA ANA
FRANCHISED VEHICLE DEALERS
This Participation Agreement for the City of Santa Ana's Shop Santa Ana Vehicle
Incentive Program ("Agreement") is entered into this day of March, 2019, by and between
the City of Santa Ana, a charter city and municipal corporation organized and existing under the
Constitution and laws of the State of California C'City" ), and Franchised Vehicle Dealers located
in the City of Santa Ana ("Dealership(s)"), all collectively referred to hereafter as the "Parties."
RECITALS
1. The Parties desire to implement a City of Santa Ana Vehicle Incentive Program ("VIP")
whereby the City shall reimburse the amount of $500.00 to Santa Ana residents and licensed Santa
Ana businesses for the purchase or lease of a new or pre -owned vehicle from a participating
Dealership in the City of Santa Ana pursuant to the terns defined herein. This Agreement will
govern the process of reimbursement to participating Dealerships that provide a corresponding
discount on the purchase or lease price of any qualifying new or pre -owned vehicle purchased in
the City of Santa Ana by a resident of the City of Santa Ana or licensed Santa Ana business.
2. The Dealerships participating in the VIP shall include: Audi South Coast; Crevier BMW;
Crevier Mini; Freeway Honda; Guaranty Chevrolet; Lincoln South Coast; Subaru Orange Coast;
Tom's Track Center; Volkswagen South Coast; and, Volvo of Orange County.
AGREEMENT
3. Rebate Program: The City of Santa Ana hereby agrees to provide to the participating
Dealerships a rebate of $500.00 per qualifying new or pre -owned] vehicle, with a minimum sale
price of $15,000, purchased or leased by a resident of the City of Santa Ana or licensed Santa Ana
business, provided:
A. The Dealership documents the sale or lease of the new or pre -owned vehicle to an
eligible City of Santa Ana resident or licensed Santa Ana business under the
program guidelines;
B. Discounts the purchase or lease price of the qualifying new or pre -owned vehicle
an additional amount of $500 from the agreed upon purchase price; and,
C. Dealership to submit all required rebate forms to the City monthly after an initial
90 -day commencement period on July 1, 2019 providing rebate request and
corresponding proof of sale document under the program guidelines established by
the City for administration of the VIP.
Page I of S
City of Santa Ana Vehicle Incentive Program
75B-7
4. Dealership Resvonsibilities: The Dealership shall meet all of the following requirements:
A. Dealership must be a Franchised Vehicle Dealer located in the City of Santa Ana;
B. Dealership must be in good standing with its manufacturer;
C. Dealership shall have no unresolved code violations or any legal or administrative
proceedings with the City;
D. Dealership shall promote the VIP with a minimum value of $25,000 annually in
marketing efforts; and,
E. Dealership shall meet the requirements of the City under the VIP program
guidelines established by the City Manager or designee for the rebate program.
5. Santa Ana Resident Resnonsibilities:
A. Applicant must be able to prove City of Santa Ana residency under the program
guidelines established by the City Manager or designee for the rebate program; and,
B. The City sponsored rebate is available only for the purchase or lease of a new or
pre -owned vehicle with a minimum sale price of $15,000 from a participating
Dealership.
6. Santa Ana Business Responsibilities:
A. Business must be able to provide proof of location within the City of Santa Ana
and valid Santa Ana business license under the program guidelines established by
the City Manager or designee for the rebate program; and,
B. The City sponsored rebate is available only for the purchase or lease of a new or
pre -owned vehicle with a minimum sale price of $15,000 from a participating
Dealership.
7. Tenn: This Agreement shall commence on April 1, 2019, and continue for a two (2) year
period. Additionally, the City shall have one (1) optional two (2) year extension and one (1)
additional optional one (1) year extension of the Tenn of the Agreement that may be exercised in
the City's sole discretion by a writing executed by the City Manager and the City Attorney.
Thereafter, the Term of this Agreement may be extended by a writing executed by the City
Manager and the City Attorney.
8. Reimbursement by City: Dealerships shall request reimbursement after ninety (90) days
of the commencement of the Agreement (June 30, 2019). The first reimbursement payment will
be within thirty (30) days of complete submission by the Dealership. Thereafter, the City shall
reimburse Dealerships within thirty (30) days of monthly submittals of requests for reimbursement
and all required documentation required by the City to verify the sale or lease of a qualifying new
or pre -owned vehicle under the VIP guidelines. All purchases shall be bundled and submitted to
Page 2 of 5
City of Santa Ana Vehicle Incentive Program
75B-8
the City on a monthly basis, and reimbursements will be issued by the City within thirty (30) days
of complete submission by the Dealership. The maximum amount of reimbursements by the City
for the VIP shall not exceed $1,700,000 per year of the Agreement.
9. Administration: The City Manager is hereby appointed to administer this Agreement and
take all necessary actions to implement this Agreement on behalf of the City.
10. Inter retation 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 now 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
party.
11. 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.
{Signatures on following page}
Page.3 of S
City of Santa Ana Vehicle Incentive Program
75B-9
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first
above written.
ATTEST:
NORMA MITRE
Acting Cleric of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By:
9A�—
Ryan odg
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
STEVEN A. MENDOZA
Executive Director
Community Development Agency
CITY OF SANTA ANA
STEVEN A. MENDOZA
Acting City Manager
{Dealer Signatures on following page}
Page 4 of 5
City of Santa Ana Vehicle Incentive Program
0077-1/494281
75B-10
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Page 5 of 5
City of Santa Ana Vehicle Incentive Program
75B-11
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75B-12
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Economic Development Subsidy Report
Pursuant to Government Code Section 53083
For a City of Santa Ana Resident Vehicle Incentive Program
Pursuant to Government Code Section 53083, the City Council of the City of Santa Ana must
hold a noticed public hearing and, prior to the public hearing, provide all of the following
information in written form and available to the public through the City's website regarding a
proposed economic development subsidy provided by the City pursuant to a Participation
Agreement between the City of Santa Ana and 10 franchised dealers (Agreement), in connection
with the Vehicle Incentive Program. Notice was published on the City's website for a public
hearing to be held on March 19, 2019.
The purpose of this report is to provide the information required pursuant to Government Code
Section 53083 in regards to the Santa Ana Vehicle Incentive Program. This report shall remain
available to the public and posted on the City's website until the end date of the economic
development subsidy, as further described in number 2 below.
(1) The name and address of all corporations or any other business entities, except for
sole proprietorships, that are the beneficiary of the economic development subsidy,
if applicable.
The Agreement is with 10 Santa Ana dealerships listed below. These business entities will
be the pass through for the subsidy to the residents and businesses of the city of Santa Ana.
Penske Audi South Coast
1425 Auto Mall Dr.
Santa Ana, CA 92705
Crevier BMW
1500 Auto Mall Dr.
Santa Ana, CA 92705
Crevier Mini
1455 Auto Mall Dr.
Santa Ana, CA 92705
Freeway Honda
1505 Auto Mall Dr.
Santa Ana, CA 92705
Guaranty Chevrolet
1505 Auto Mall Dr.
Santa Ana, CA 92705
Penske Lincoln South Coast
1405 Auto Mall Dr.
Santa Ana, CA 92705
Subaru Orange Coast
1350 Auto Mall Drive
Santa Ana, CA 92705
Tom's Truck Center
909 N Grand Avenue
Santa Ana, CA 92701
Penske Volkswagen South Coast
1450 Auto Mall Dr.
Santa Ana, CA 92705
Volvo of Orange County
1400 S. Dan Gurney Dr.
Santa Ana, CA 92705
(2) The start and end dates and schedule, if applicable, for the economic development
subsidy.
Upon City Council approval, the proposed agreement is expected to commence on April 1,
2019, and end on March 31, 2024.
75B-13
(3) A description of the economic development subsidy, including the estimated total
amount of the expenditure of public funds by, or of revenue lost to, the local agency
as a result of the economic development subsidy.
The economic development subsidy to Santa Ana residents and businesses is $500 per
vehicle purchased for a maximum subsidy of $1,700,000 for each of the five year proposed
term, with a maximum during the subsidy period of $8,500,000.
(4) A statement of the public purposes for the economic development subsidy.
With the new sales tax measure recently passed in Santa Ana, local dealerships stated that
the citywide sales tax increase could lead to decreases in the number of cars sold to
residents. The VIP Program has been developed in order to address the serious leakage of
local automotive purchases to outside jurisdictions. This represents a serious shifting of local
revenues, as well as the loss of funds needed for vital City services, to outside jurisdictions,
resulting in a negative impact on the City's local economy. This affect is further compounded,
as is the resulting downward pressure on dealer expansion and job growth, by the loss of
revenue that is typically generated by servicing of these vehicles that could have been
performed at Santa Ana's local dealerships. To spur residents to continue to purchase from
Santa Ana dealerships, the Resident VIP incentive has been proposed.
(5) Projected tax revenue to the local agency as a result of the economic development
subsidy.
With marketing of the program, staff is expecting that the number of new, leased, and used
autos cars sold to local residents, and entitled to the incentive, will increase and could
reach up to 3,500 vehicles. This is estimated at 337 new vehicles sold and 227 used
vehicles sold. With the average new vehicle purchase price of $37,557 and used vehicle
purchase price of $17,705, this could generate an additional $417,000 in sales tax revenue
to the City.
(6) Estimated number of jobs created by the economic development subsidy, broken
down by full-time, part-time, and temporary positions.
The proposed Agreement will assist in retaining approximately 50 jobs at the auto dealers
and attract over 10 new positions to meet the increased demand of sales.
75B-14
PROGRAM GUIDELINES
RESIDENT VEHICLE INCENTIVE PROGRAM
EXHIBIT 3
As a means to spur growth of the local tax base and to encourage Santa Ana residents
to "buy local", the City has developed the Resident Vehicle Incentive Program (VIP) that
incentivizes Santa Ana residents to purchase a car and/or truck from one of 10 franchised
Santa Ana auto dealers.
The VIP provides a $500 rebate to a Santa Ana resident who purchases a new or pre-
owned car or truck from a franchised Santa Ana auto dealer. The Program is a new
component of the City's existing "Shop Santa Ana" initiative by encouraging residents to
continue to buy locally. The VIP has been developed to avoid leakage of local automotive
purchases to outside jurisdictions and would ensure that future revenue generated by this
sector will be available to provide vital City services.
Program Objectives
• Reinvest in the local economy.
■ Incentivize residents to shop local.
• Avoid leakage of automotive purchases to other cities.
• Maintain a strong retail sales base in the City.
Buy Local
The Resident Vehicle Incentive Program (VIP) has been designed to encourage residents
to purchase or lease a car or truck from one of the 10 franchised auto dealers in the City
of Santa Ana. A list of eligible dealerships is provided below.
Eligible Dealerships
1. Audi South Coast —1425 Auto Mall Drive, Santa Ana, CA
2. Crevier BMW —1500 Auto Mall Drive, Santa Ana, CA
3. Crevier Mini — 1455 Auto Mall Drive, Santa Ana, CA
4. Freeway Honda — 1505 Auto Mall Drive, Santa Ana, CA
5. Guaranty Chevrolet — 711 17th Street, Santa Ana, CA
6. Lincoln South Coast — 1405 Auto Mall Drive, Santa Ana, CA
7. Subaru Orange Coast — 1350 Auto Mall Drive, Santa Ana, CA
8. Tom's Truck Center — 909 N Grand Avenue, Santa Ana, CA
9. Volkswagen South Coast — 1450 Auto Mall Drive, Santa Ana, CA
10.Volvo of Orange County— 1400 S Dan Gurney Drive, Santa Ana, CA
75B-15
EXHIBIT 3
Eligible Participants
Any resident or business of the City of Santa Ana that purchases or leases a new or pre-
owned automobile or truck from the eligible dealership is eligible to receive the $500
rebate.
o Qualified residents must be able to provide proof of Santa Ana residency to dealership
via a California Driver's license.
• Qualified businesses must provide proof of valid Santa Ana business license.
• Qualified residents and businesses must sign a Santa Ana Resident/Business Rebate
Form verifying residency and operation of business in Santa Ana.
• $500 rebate will be applied towards the agreed upon purchase/lease price in the final
sales contract.
■ Minimum used car purchase is subject to a final sales price of $15,000 (after all
manufacturer rebates and dealer incentives).
Qualifying Vehicles
All new purchases of new or pre -owned cars or trucks are eligible.
All new leases of a new or pre -owned cars or truck is eligible.
Motorcycles, off-road vehicles or watercraft are not eligible purchases under this
program.
Rebate Administration and Process
1. Participating dealers document the sale/lease of the new or pre -owned vehicle using
the Resident Rebate Form. Dealer must include: 1) final sales invoice showing
proof of purchase; 2) Resident Rebate Form 3) copy of valid resident
California Driver's license/Business License for full reimbursement.
2. On a monthly basis after the initial 90 date inception period (June 30, 2019), dealers
will submit all Resident Rebate Forms with required documentation to the City of
Santa Ana for reimbursement and processing. Purchase summary form must be
filled out and attached with rebate forms.
3. Within 30 days of receipt from dealerships, City will provide reimbursement to
dealers.
4. Dealers that reimburse a non -Santa Ana resident or non -Santa Ana business will not
be reimbursed from the City.
Dealer Responsibilities
■ Dealership franchises must be in good standing with their manufacturer.
■ Dealerships must promote the Resident Vehicle Incentive Program with a
minimum value of $25,000 annually in marketing efforts.
• Dealerships must collect and submit all required documentation as proof of
residency for qualified Santa Ana residents.
75B-16
EXHIBIT 3
Program Term
The first term of the Resident Vehicle Incentive Program shall be for two years from April
1, 2019 to April 1, 2021. After the first 2 -year period, City staff will evaluate the
effectiveness of the program and make a recommendation to continue with 1 two-year
extension and one additional 1 -year extension for a total of 5 years. The City Manager
and/or City Council would have authority to extend the program beyond the 5 years.
Program Administration
Within 5 business days of receipt of documentation from dealerships, the City of Santa
Ana's Economic Development Division of the City's Community Development Agency will
review the rebate applications and all supporting documentation. If documentation is
missing, staff will request additional documentation from the dealerships. This will delay
the processing of payment until all required documentation is received.
Upon approval of documentation, Economic Development Division staff will forward to the
City of Santa Ana's Finance Agency for processing and reimbursement. The City of Santa
Ana's Finance Agency will be responsible for issuing checks to dealerships within 30 days
of receipt of approved rebate forms.
Program Funding
The Program budget shall be limited to $1,700,000 for reimbursements and $25,000 for
City marketing and administration of the program on an annual basis.
Dealerships have also agreed to promote the Vehicle Incentive Program with a minimum
value of $25,000 annually in their marketing efforts.
Program Evaluation
Economic Development Division staff will evaluate the effectiveness of the program
biannually by determining if the incentive has increased or kept stable the number of new
and used car sales and leases for Santa Ana residents. Staff will also consider factors
like the change in the economy and new dealerships opening outside of the City borders.
A report to City Council will be provided on a quarterly basis on the status of VIP Program.
75B-17
EXHIBIT 3
0
SANTA ANA RESIDENT VIP REBATE FORM
VEHICLE IDENTIFICATION ELIGIBLE NEW MODEL# RETAIL DELIVERY DATE
NUMBER
CUSTOMER INFORMATION FOR VALIDATION.
CUSTOMER LAST NAME FIRST, M.I. TELEPHONE NUMBER
STREET ADDRESS CITY, STATE ZIP CODE
❑ Address has been verified as City of Santa Ana resident
CUSTOMER SIGNATURE
17_\I4
SALESMANAGER NAME (PLEASE PRINT) DEALERSHIP NAME DATE
SALESMANAGER SIGNATURE
DATE
THIS COMPLETED FORM MUST BE FORWARDED TO THE CITY OF SANTA ANA WITH THE VEHICLE SALES DOCUMENTS. BY
SIGNING THE ABOVE DOCUMENT, THE DEALER IS VERIFYING THAT THE RESIDENT LIVES IN THE CITY OF SANTA ANA AND
QUALIFIES FOR THE REBATE.
75B-18
DEALERSHIP NAME
Purchase Amount/Rebate Amount
Initial below:
I, the customer and Santa Ana resident, have applied the Santa Ana Resident's
Rebate towards the purchase of my vehicle. Therefore, I have assigned the cash
payment directly to the dealer. I release the City of Santa Ana from any further
claim or obligation for payment to me for this vehicle.
I, the customer, give the dealership named above permission to share this
form, the final sales contract and a copy of my driver's license to the City of
Santa Ana to process the rebate.
CUSTOMER SIGNATURE
17_\I4
SALESMANAGER NAME (PLEASE PRINT) DEALERSHIP NAME DATE
SALESMANAGER SIGNATURE
DATE
THIS COMPLETED FORM MUST BE FORWARDED TO THE CITY OF SANTA ANA WITH THE VEHICLE SALES DOCUMENTS. BY
SIGNING THE ABOVE DOCUMENT, THE DEALER IS VERIFYING THAT THE RESIDENT LIVES IN THE CITY OF SANTA ANA AND
QUALIFIES FOR THE REBATE.
75B-18
1*40MIZIM
VEHICLE IDENTIFICATION ELIGIBLE NEW MODEL # RETAIL DELIVERY DATE
NUMBER
BUSINESS INFORMATION FOR VALIDATION:
BUSINESS NAME REPRESENTATIVE NAME TELEPHONE NUMBER
STREET ADDRESS CITY, STATE ZIP CODE
❑ Business license has been verified as City of Santa Ana business.
DEALERSHIP NAME I Purchase Amount/Rebate Amount
Initial below: I, the customer and Santa Ana business, have applied the Santa Ana Rebate towards
the purchase of my vehicle. Therefore, I have assigned the cash payment directly to
the dealer. I release the City of Santa Ana from any further claim or obligation for
payment to me for this vehicle.
I, the customer, give the dealership named above permission to share this
form, the final sales contract and a copy of my business license to the City of
Santa Ana to process the rebate.
SANTA ANA BUSINESS REPRESENTATIVE SIGNATURE DATE
SALESMANAGER NAME (PLEASE PRINT) DEALERSHIP NAME DATE
SALESMANAGER SIGNATURE
DATE
THIS COMPLETED FORM MUST BE FORWARDED TO THE CITY OF SANTA ANA WITH THE VEHICLE SALES DOCUMENTS, BY
SIGNING THE ABOVE DOCUMENT, THE DEALER IS VERIFYING THAT THE BUSINESS OPERATES IN THE CITY OF SANTA ANA AND
QUALIFIES FORTH E REBATE.
75B-19
EXHIBIT 3
SANTA ANA VIP PURCHASE SUMMARY FORM
DATE OF PURCHASE/LEASE I RESIDENT NAME I NEW/USED/LEASE AUTO
75B-20