City Council
MEETING DATE: 6/8/2016
TITLE:
Title
Chamber of Commerce Service Provider Agreement for FY16/17
End
FROM:
Leisa Lukes, Economic Development Manager
RECOMMENDATION:
Recommendation
Staff recommends the City Council approve the Chamber of Commerce Service Provider Agreement for FY16/17; authorize the City Manager to sign the Agreement; and approve the payment of $60,000 for the agreed-upon services in accordance with the adopted FY16/17 budget.
Body
BACKGROUND:
The Cathedral City Chamber of Commerce is a non-governmental entity, but acts as a partner with the City to retain and grow businesses in Cathedral City. It also serves to represent the community’s business interests and advocates on behalf of the business community. The Chamber also benefits the City through cooperative marketing programs and by providing Visitor Center services. An allocation of $60,000 to the Chamber was approved in the bi-annual budget for FY16/17. Staff is recommending approval of the necessary budget transfer and associated Service Provider Agreement.
DISCUSSION:
The Chamber has been a partner with the City since the City’s incorporation in 1981. It is served by a 15-member board of directors and employs one paid position titled “Executive Director.” That position is currently vacant and is being filled on an interim basis by a contract Chamber Manager. Volunteer Chamber Ambassadors assist in providing activities for Chamber members and fulfilling the Chamber’s services.
Mayor Henry, Mayor Pro Tem Pettis and several City staff and Chamber Executive Committee members serve on the joint City/Chamber Committee. The City’s Economic Development Manager serves as the City’s liaison with the Chamber. Mayor Pro Tem Pettis is the ex-officio, non-voting City representative on the Chamber Board.
The Service Provider Agreement entered into each year between the City and the Chamber includes a Scope of Services that specifies the work to be performed by the Chamber on behalf of the City. It also requires that the Chamber report to the City quarterly on its activities and budget performance. The Activity Report for FY15/16 Quarter 3 is attached (Attachment 1). In exchange for the services provided, the City’s annual support for the Chamber has ranged between $21,000 and $75,000 over the years, with a current budget of $60,000 for FY15/16. The City Council allocated this same amount in its adopted bi-annual budget for the upcoming fiscal year.
The need for a chamber of commerce and its work with the business community was re-confirmed during a Council Study Session in March 2015. In particular, there was a strong desire for the Chamber to reach out to existing businesses and gather information to facilitate business retention and growth within the city. It was noted that the services provided by the Chamber on behalf of the City should have measurable results that can be quantified during the Chamber’s quarterly reporting. The Council noted that an overall goal of the Chamber should be to grow its membership to enable the Chamber to become self-supporting. A committee of City and Chamber representatives was then formed to implement these Council objectives through a revised Service Provider Agreement. That amended Agreement was adopted by Council for FY15/16.
During FY15/16, the Chamber relocated to its current location on Perez Road, which the Chamber reports has been positive for its membership and its role as the City’s Visitor Center. In addition, its Executive Officer was replaced by an Interim Executive Officer who has since been replaced by a contract Chamber Manager. As a result of these personnel changes and the recent consolidation of the Chambers of Commerce of Coachella, Indio, and LaQuinta, the Cathedral City Chamber is evaluating its options for future management and overall structure. In the meantime, the current management structure and Service Provider Agreement remain generally consistent for FY16/17. Any significant changes will be brought forward to the Council as it relates to the Chamber’s provision of services on behalf of the City.
SERVICE PROVIDER AGREEMENT
The Service Provider Agreement includes four categories: Visitor Center; Business Community Outreach and Membership; Chamber Events; and Promotions and Marketing.
Visitor Center - The Chamber office serves as the City’s Visitor Center. All Cathedral City businesses are to be promoted, with Chamber members given referral priority. In an effort to grow Chamber membership, non-City businesses that are not Chamber members will not be promoted. The Chamber will continue to maintain a log of the quantity and types of inquiries received to assist the City in understanding what information visitors are seeking. The Chamber Board has agreed to research the feasibility of producing a “map of the city” to market city businesses and promote the city to visitors.
Business Community Outreach and Membership - The City regularly provides the Chamber with a list of new and renewing business license applicants to enable the Chamber to thank them for being a member of the City’s business community. The Chamber can also provide these businesses with Chamber benefit information to aid in increasing its membership.
During the past six months, Chamber and City representatives have conducted monthly “business walks.” The City has thus far taken the lead in organizing these walks. The Service Provider Agreement requires the Chamber to organize these walks, with City participation. This does not pre-empt either Chamber or City staff from conducting additional business outreach at other times during the month.
The Chamber is key to obtaining business input on new or modified City guidelines and programs that could affect the business community, such as shopping cart regulations and business signage. At the City’s request, the Chamber will perform up to 4 surveys per year with its membership and summarize the results.
Chamber Events - The Chamber hosts a number of annual and monthly events, including the annual “State of the City” and monthly “Lunch and Learns”, for the benefit of its membership. The Chamber provides a stated number of passes for City representatives to attend these events.
Promotions and Marketing - The Chamber’s role in promoting City events is a key component of the City’s support for the Chamber. In addition to growing and marketing its own events, the Chamber is to promote City events and activities through its social media and announcements. For the City’s three signature events (Balloon Festival, LGBT Days, and Taste of Jalisco), the City will provide the Chamber a booth at no cost so the Chamber may promote membership and City Visitor-serving materials. To assist in these efforts, the Chamber is to coordinate with the City’s Communications and Events Manager.
As a priority for FY16/17, the Chamber is to create a “Local First Cathedral City” program in cooperation with the City. The goal is to drive customers to Cathedral City businesses and keep buying power local. This may include a number of cost-effective tools, such as a theme and a logo to be used in all Chamber materials and social media campaigns. This program was to commence in FY15/16 but was delayed due to employee changes.
A business plan for increasing membership and increasing non-City revenues over the course of 1-, 3-, and 5-year periods was not submitted by the Chamber during FY15/16 as called for in the current Service Provider Agreement. Chamber membership, however, is increasing with current membership at 220 and its financial statements present a more balanced budget than in years past. As a result of Chamber staffing changes and pending assessment of Chamber consolidation, staff recommends that the Chamber provide the City with its proposal for future structure no later than January 2017 when it submits the Activity Report for FY16/17 Quarter 2.
FISCAL IMPACT:
The FY16/17 adopted budget allocates $60,000 for Chamber services. The Service Provider Agreement, Exhibit “B”, provides for quarterly allocation from the general fund upon the City’s receipt of the Chamber’s Activity and Budget Reports and completion of the City/Chamber Committee meeting following each quarter.
ATTACHMENTS:
1. Chamber Activity Report for FY15/16 Quarter 3
2. Chamber of Commerce Service Provider Agreement for FY16/17