City Council
MEETING DATE: 6/14/2017
TITLE:
Title
Chamber of Commerce Service Provider Agreement for FY17/18
End
FROM:
Leisa Lukes, Business Development Manager
RECOMMENDATION:
Recommendation
Staff recommends the City Council approve the Chamber of Commerce Service Provider Agreement for FY17/18, authorize the City Manager to sign the Agreement and approve payment of $60,000 for the agreed-upon services in accordance with the adopted FY17/18 budget.
B
BACKGROUND:
Members of the Cathedral City Chamber of Commerce (Chamber) recently voted for the Chamber to merge with the Greater Coachella Valley Chamber of Commerce (GCVCC). The merger becomes effective on July 1, 2017, resulting in the largest business network organization in the Coachella Valley. The GCVCC is a non-governmental entity that will continue to serve as a partner with the City to retain and grow businesses; represent the community's business interest; and strengthen the City's connections with the business community. The GCVCC will also benefit the City through its cooperative marketing programs and by providing Visitor Center services. An allocation of $60,000 to the GCVCC was approved in the FY 17/18 budget. Staff is recommending approval of the Service Provider Agreement.
DISCUSSION:
The Chamber and the City have been partners since the City's incorporation in 1981. The Chamber has undergone a number of changes in the past few years, including the absence of a paid Executive Director position. The Chamber Board chose to replace this position on an interim basis with a contract Chamber Manager who recently left for a promotion outside the state. The position has since been filled temporarily by a contracted staff person. Volunteer Chamber Ambassadors have been assisting with many of the Chamber duties and the 15-member elected Board members have been active in fulfilling the services the Chamber provides to its members.
These temporary measures were put in place by the Board during the past year while it analyzed the most financially prudent means of structuring the Chamber while providing the greatest benefit to the business community and to City visitors. A number of alternatives were evaluated, including re-establishing the paid Executive Director position; retaining the existing primarily volunteer structure; and merging with one or more existing Chambers within the Valley. The Chamber Board determined that a merger provided the most viable option for the future strength and success of the Chamber. While mergers with other individual Chambers was considered, the Board recommended to its membership that a merger with the GCVCC provided the greatest benefit while enabling the Chamber to retain its individual identity.
The GCVCC is a singular non-profit organization that is the result of the 2016 merger of the Chambers of the Cities of La Quinta, Indio, and Coachella. It is led by a board of directors (currently comprised of 20 members) and is managed by Josh Bonner, Chief Executive Officer. Each member city is considered a business district and each district maintains its own board of directors having a varied number of board members. Three board members from each district are also members of the GCVCC board. The Service Provider Agreement stipulates that the Cathedral City district board members be representative of the city’s business community. Carmen Shelton, Lesa Bodner, and Carey Boisvert were recently appointed to the staggered 1-, 2-, and 3-year terms. The GCVCC oversees the broader administrative functions of the organization while the business districts retain a local presence with a focus on membership, business outreach, and events within the individual districts.
After running an educational campaign comprised of written materials and multiple presentations about a possible merger, the Cathedral City Chamber of Commerce conducted a formal ballot vote of its membership in December 2016, as to whether the Chamber should merge with the GCVCC. The members voted overwhelmingly in support of the merger recognizing the benefit that the centralized administration of the GCVCC could provide to the Chamber while enabling the Chamber to retain its unique presence within the Cathedral City business community.
A number of preliminary activities have already taken place to facilitate that merger, which will be formalized on July 1, 2017. The Chamber will continue to exist and be known as the Cathedral City Business District within the GCVCC. With the addition of the Cathedral City Chamber, the first chamber in the west Valley to join the GCVCC, the GCVCC will be restructured to meet the unique needs of the Cathedral City Business District. The current Chamber office located off Perez Road will be retained for Chamber purposes and for the City's Visitor and Information Center. The GCVCC will finalize the overall staffing structure for the Cathedral City Business District by August 1, 2017.
SERVICE PROVIDER AGREEMENT
On an annual basis, the City and the Chamber enter into a Service Provider Agreement (Agreement) that includes a Scope of Services specifying the work to be performed on behalf of the City. This Agreement, upon approval by the City Council, will now be with the GCVCC. The Chamber member services that the GCVCC provides are consistent for each member city; however, the scope of services for each individual city varies based on the unique needs of that city. The proposed Scope of Services for Cathedral City are identified in Exhibit "A". The proposed FY17/18 Agreement requires the GCVCC to report to the City on a quarterly basis its activities and budget performance in performing the Scope of Services.
In exchange for services provided, the City's annual support for the Chamber for the past two years has been $60,000. The GCVCC has agreed to provide the proposed Scope of Services identified in Exhibit "A" for this same fee. According to the GCVCC, any service typically provided by a chamber will be paid for by its overall membership and will not be included in the Cathedral City Service Provider Agreement thereby allowing the City's budget allocation to fund those activities that more directly benefit the economic vibrancy of the City, such as a "Buy Local" branding campaign.
The Scope of Services (Exhibit "A") within the Agreement includes four categories: Visitor Center and Marketing, Economic Development, City Events, and City Promotion. The Scope identifies the total cost to provide each service, including labor and operations, GCVCC's share of that cost and the resulting cost to the City.
Visitor Center and Marketing - The Cathedral City Business District office of the GCVCC will serve as the City's Visitor Information & Welcome Center where promotional information about businesses and activities within the City will be maintained. Information to assist visitors and businesses will be conveyed via all forms of communication (i.e., walk-ins, telephone, email, etc.) and will prioritize Cathedral City businesses regardless of chamber affiliation. The local Chamber office will be open four days each week. Many inquiries come in the form of internet searches, emails and phone calls rather than walk-in traffic. These will be forwarded to the GCVCC administrative office for immediate response when the local office is closed. The GCVCC will produce information materials to further promote city businesses. The number and type of inquiries received at the Visitor Center will be included in the GCVCC's Quarterly Report to the City.
Economic Development - The GCVCC will outreach to new businesses, support existing businesses, and collect data to assist in retaining and growing businesses in the City. A "Business Welcome Packet" to welcome new businesses to the city and introduce them to the GCVCC organization as an advocate for business will be prepared and distributed. Additional follow-up to these businesses will also be provided, potentially increasing GCVCC membership.
To further get to know the business owners in the community, the GCVCC will continue the City's monthly "Business Walks." These Walks have become a model for the GCVCC, which they now employ within their other member cities. At least one of the GCVCC participants will be fluent in Spanish to connect with the many Latino-owned businesses within the city. The Scope of Services specifies the materials to be distributed and the verbal inquiries to be made during these Walks such as desired services provided by the Chamber relative to the individuals who comprise Cathedral City’s business community and their targeted customer base. The GCVCC will provide the City with input received during these walks. In addition, the City may request that the GCVCC use its communication tools to seek input from the business community to assist the City with existing or proposed regulations that could impact businesses. The City may request these separate inquiries up to four times per year.
City Events - The GCVCC's marketing presence will include its regular events such as Mixers and "Lunch & Learns", as well as organizing and hosting the annual State of the City and its annual membership recognition event (Orion Awards). For these events, a stated number of passes will be provided for attendance by City representatives. The GCVCC will incorporate business support and education into its other events, with a focus on the Latino-owned businesses in the City and the Latino customer base. The GCVCC partners with other groups to provide and promote events in both English and Spanish. An example of a recent GCVCC event was “Getting the Most from Your Chamber Membership.”
The GCVCC will also maintain a presence at the City's three annual signature events by staffing the events' Information Booth. This space will be provided at no cost to the GCVCC.
City Promotion - The GCVCC will create and promote a "Local First Cathedral City" Program to stimulate the local economy by driving customers to Cathedral City businesses. To further promote public awareness of city businesses, the GCVCC will identify and provide support to key business clusters within the city, such as restaurants, hotels and auto services. This could include holding meetings with cluster representatives and creating visitor guides specific to a particular cluster.
To further promote the city, the GCVCC and the City's Communications and Events Manager will share cross-promotional information via press releases and direct communications for website posting and distribution via social media. The GCVCC will use its communication resources to convey information regarding events, roadway construction projects, utility upgrades, and other public service information it receives from the City or other public agency.
FISCAL IMPACT:
The FY17/18 adopted budget allocates $60,000 for GCVCC services. Exhibit "B" of the Service Provider Agreement provides for quarterly allocation from the general fund upon satisfactory receipt by the City of the GCVCC's Activity and Budget Reports and completion of the City/GCVCC Committee meeting following each quarter. Quarter 4 payment will be adjusted in accordance with any services not completed per the Scope of Services identified in Exhibit "A".
ATTACHMENTS:
Service Provider Agreement between GCVCC and City of Cathedral City for FY17/18
Exhibit "A" - Scope of Services for Cathedral City FY17/18
Exhibit "B" - Payment Program for City of Cathedral City for FY17/18