HomeMy WebLinkAboutItem 3c: Agreement for Services with the Arcadia Chamber of Commerce for FY 2011-2012 ti� oFFAR'c4
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�un Ity ot%. STAFFREPORT
Development Services Department
DATE: June 7, 2011
TO: Mayor and City Council
Chairman and Agency Board
FROM: Jason Kruckeberg, Assistant City Manager /Development Service
Director
By: Jerry Schwartz, Economic Development Manager u'1$
SUBJECT: AGREEMENT FOR SERVICES WITH THE ARCADIA CHAMBER OF
COMMERCE FOR FY 2011 -2012
Recommendation: Approve
SUMMARY
The Chamber of Commerce assists the City's economic development and marketing
function pursuant to an annual Agreement for Services contract. The Chamber's
proposed services and budget for the FY 2011 -2012 are provided for reference as
attachments. The Chamber has requested a continuation of the contribution provided
by the City and Agency ($62,000) for services to be provided by the Chamber in 2011-
2012.
Staff recommends approval of the Agreement for Services with the Chamber for FY
2011 -2012 (Attachment A).
DISCUSSION
The Chamber has been providing certain services as follows:
1. Provides reference and referral information about the City to brokers, realtors,
merchants, business operators, interested public and new Arcadia residents.
2. Prepares the monthly Community Calendar /newsletter (distributed by e- mail),
and prepares, prints, and mails quarterly newsletters to members and the City.
3. Prepares the annual Arcadia Business Directory, the annual Arcadia Civic
Directory, and a City map every three years (due in fall, 2011).
4. Organizes and operates an annual Business Expo and possibly up to two
additional Expos (i.e., Health, Fitness & Safety, Home Improvement,
Environmental, Senior Information) to showcase City businesses, and provides
the City with one or more tables at each event at no cost.
5. Organization and Staff support for the monthly Government Affairs Forum,
Ambassador Club, Strategic Planning Committee, Asian Business Outreach
Committee, Business Networking breakfasts and mixers.
6. Promotes and manages the annual Taste of Arcadia event, which has become a
signature event for the City.
7. Organizes and publicizes seminars and training sessions throughout the year for
merchants and business members through groups that include, Small Business
Administration (SBA), San Gabriel Valley Economic Partnership (SGVEP),
Women at Work, Foothill Workforce Investment Board, and other governmental
and educational programs.
8. Works with the Arcadia Downtown Business Association during its start up and
evaluation of alternatives to provide funding for the promotion of the downtown
area.
9. Works with City Staff to promote the "Shop Arcadia" campaign, promoting the
benefits of keeping sales tax dollars in the community.
10. Prepares and submits an annual performance report regarding their activities.
One of the new Chamber initiatives for 2011 -2012 is to work with local businesses to
create business associations in West and South Arcadia. The Chamber is also going to
enhance its web presence and utilize social media sites such as Facebook and Twitter
to expand its visibility with younger members and business owners.
The Chamber has gone through its own transition during the 2010 -2011 year with the
retirement of Beth Costanza as Executive Director and the hiring of Scott Hettrick to
fulfill that role. This is Scott's first year to prepare the contract with the City and Agency.
In addition to the $62,000 annual agreement, the City also subsidizes the Chamber's
annual rent at the City -owned facility at 388 West Huntington Drive. The current lease
agreement is for five (5) years beginning December 13, 2006 and expiring December
12, 2011. Unless terminated, a proposed new lease will be brought to the Council
before the current lease expires. The City can terminate the lease upon twelve (12)
months notice to the Chamber.
Staff Report
June7, 2011
Page 2 of 3
FISCAL IMPACT
A total of $62,000 ($31,000 in General Funds; $31,000 in Redevelopment Agency
Funds) has been included in the FY 2011 -2012 budget. The City also provides below
market rent for the City -owned Chamber offices at $400 per month.
RECOMMENDATION
That the City Council /Agency Board authorize the City Manager to enter into an
Agreement with the Arcadia Chamber of Commerce for $62,000 for Fiscal Year 2011-
2012 as shown in the attached Agreement for Services (Attachment A).
Approved: 3)0-1-,-.0-z.a f � "-.'�
Donald Penman
City Manager /Executive Director
Attachment A: Agreement for Services, FY 2011 -2012
Attachment B: May 24, 2011 Letter from Chamber President and Executive Director
and Current Fiscal Year Progress Report
Attachment C: Chamber Budget
Staff Report
June7, 2011
Page 3 of 3
ATTACHMENT A
AGREEMENT FOR SERVICES
FY 2011 -2012
City of Arcadia and Arcadia Chamber of Commerce
This Agreement for Services ( "Agreement ") is entered into this day of , 2011
by and among the Arcadia Chamber of Commerce ( "Chamber"), a not - for - profit
organization, the City of Arcadia ( "City "), a municipal corporation and charter city, and the
Arcadia Redevelopment Agency ( "Agency "), a public body, corporate and politic.
RECITALS
A. The City, the Agency, and the Chamber have long cooperated on areas of mutual
interest to the Arcadia civic and business community.
B. The Chamber has provided numerous economic development and marketing
services to the City and Agency.
C. For many years, the City has provided to the Chamber at a below market lease rate
the full use of the City -owned building at 388 W. Huntington Drive, Arcadia in recognition
of its services to the City, and in 2010 -11 has further contributed $62,000 to the Chamber
as the City and Agency's share of the cost of the economic development and marketing
services provided that fiscal year by the Chamber.
D. The City and the Chamber have previously extended the Lease between the City
and the Chamber, for five (5) years to December 12, 2011. If the City Council approves a
new five year lease for the Chamber prior to the end of 2011, then this Agreement will
cover the entire 2011 -2012 fiscal year. If the lease is terminated by the City Council, then
the length of the Agreement and the City /Agency funding to the Chamber would be
reduced accordingly.
E. The City, the Agency, and the Chamber desire to memorialize their relationship for
the fiscal year 2011 -2012.
F. The City desires and intends to pay the Chamber the amount of $31,000, and the
Agency desires and intends to pay the Chamber $31,000 in FY 2011 -2012 for the
business, economic and civic promotion services set forth in Exhibit A.
G. The Chamber desires and intends to provide the City and the Agency the business,
economic, and civic promotion services set forth in Exhibit A.
AGREEMENT
Now therefore, the City, the Agency, and the Chamber do hereby agree as follows:
A. Responsibilities of the Chamber
1. The Chamber is and shall serve as an independent organization entirely
separate from the City and the Agency, and shall operate under its own
bylaws as a membership organization serving the interests of business in
the greater Arcadia area. For purposes of this Agreement, the Chamber is
and in all respects shall be deemed to be an independent contractor.
2. The Chamber shall assist the City and the Agency in their economic
development, civic promotion, and marketing efforts by providing the
services and materials to the City and the Agency set forth in Exhibit A to
this Agreement, which is made a part hereof.
3. Within five (5) working days after May 1, 2012, the Chamber shall submit to
the City and Agency a progress report describing their performance under
this Agreement for the period July 1, 2011 to April 30, 2012.
B. Responsibilities of the City and Agency
1. The City and Agency shall assist the Chamber in its business service and
development efforts by means of the City leasing to the Chamber for the
remainder of the term of the lease described in the Recitals hereof, and any
extension, the facility at 388 W. Huntington, and by providing, in the
aggregate $62,000 to the Chamber for 2011 -2012 for the products,
economic development & civic promotion services set forth in Exhibit A.
C. Review and Inspection of Chamber records
1. The Chamber shall provide to the City and Agency a complete and accurate
financial statement of the Chamber by September 30, 2011 for the previous
fiscal year ending June 30, 2011, and by September 30, 2012 for the fiscal
year ending June 30, 2012.
2. The City and the Agency shall have the right to review and /or audit the
records of the Chamber to verify that the Chamber's expenditures of the
City's funds are consistent with this Agreement. For this purpose, the
Chamber shall make available to the City and the Agency, and their
representatives, all records of the Chamber for purposes of review and audit
during normal business hours of the City, upon reasonable demand by the
City and /or the Agency.
D. Amendment
1. This Agreement may be amended by mutual written consent of all parties.
E. Termination
1. This Agreement may be terminated by any party giving the others effective
written notice of termination 180 days prior to the effective date of termination.
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The rights, duties and responsibilities of the City, the Agency, and the Chamber
will continue for the period between the notice of termination and the effective
date of termination, including any prorata portion of the agreed compensation.
F. California Law
1. This Agreement shall be governed by the laws of the State of California.
In witness whereof, the parties have executed this Agreement as of the date first set forth
hereinabove.
CHAMBER: CITY:
President City Manager
Arcadia Chamber of Commerce City of Arcadia
Dated:
Dated:
Approved as to form:
City Attorney
AGENCY:
Executive Director
Arcadia Redevelopment Agency
Approved as to form:
Agency Counsel
Attest:
City Clerk
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EXHIBIT A
Services Provided by Chamber of Commerce to the
City of Arcadia and Arcadia Redevelopment Agency
FY 2010 -2011 and Projected for 2011 -2012
The Chamber shall provide the following services to the City and Agency:
Public Relations
A. Maintain regular office hours with qualified personnel.
B. Provide accurate and timely information and market the City and business
areas to hundreds of residents and business people who walk -in, phone,
write, e-mail, or fax the Chamber each month.
C. Prepare and maintain the monthly community calendar of civic group events.
D. Provide as many new Arcadia residents as requested through the Water
Department statement with a "welcome" package within one month of City
notification; the package shall include materials provided by the City.
E. Provide information on Arcadia to realtors for a "business relocation"
package which commercial agents give to new businesses in the City.
F. Prepare and make available a civic directory which lists all civic, cultural,
social, educational, and business groups, addresses, meeting dates, etc.
G. Through the Board and Committee structure (e.g., EXPO Committee,
Government Affairs Forum, Asian Business Outreach Committee,
Ambassador Club, Emergency Preparedness Committee, Strategic Planning
Committee), and Chamber functions (Business Mixers, Networking
Breakfasts, various legislative gatherings and forums, Citizen of the Year
Award & Installation Dinner, Business Awards Lunch, and Taste of Arcadia)
bring civic leaders and City /Agency staff together with business people and
citizens every month.
H. Develop and maintain social media network to promote Chamber, City, and
business activities and news, including Chamber web site with calendar,
Facebook, and Twitter, and any new technologies that develop.
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II. Business Development
A. Under the Business EXPO Committee, organize and hold the annual
"Business Expo" and possibly more as demand dictates to market Chamber
business member products and services to each other and to the
community. The City will be provided free and prominent space at the
Expos.
B. Prepare and print (approximately every third year) a City Map, including
economic and civic information on Arcadia; provide as many copies to the
City and Fire & Police Departments as needed.
C. Prepare and print the "Business Directory"; provide copy to all Arcadia
businesses, and to residents; provide as many copies to the City as needed.
D. Conduct special community and business forums, e.g., Trash /Recycling
pick -up events, or assist City to inform the community of meetings, e.g.,
community workshops on large development projects, proposed City
measures, initiatives and propositions, transportation concerns, including
Gold Line /Metro, etc.
E. Assist the City during emergencies, by providing liaison at Emergency
Operations Center; coordinate with the City EOC & Red Cross and
Emergency Centers throughout the City in the event of earthquake or
disaster; working with Chamber Emergency Business Preparedness plan for
emergencies.
F. Provide ambassadors to existing and new businesses throughout the year to
monitor concerns, assist in resolving problems with the Chamber or the City,
meet other Arcadia businesses (e.g., monthly networking / orientation /
breakfasts).
G. Prepare, and distribute newsletters to members providing information on
business activities and legislation; make space available for a City
column /blog; provide 20 copies of any printed editions to City.
H. Work actively on business recruitment, expansion and retention efforts
throughout the City, e.g., business CEO /Chamber /City official meetings.
Organize and publicize seminars and training sessions for merchants and
business members under SBA, SCORE, SGVED, Foothill Workforce
Investment Board, Women at Work, and other governmental and
educational programs.
J. Continue to work with the newly created Arcadia Downtown Business
Association to maintain momentum and support growth, organization, and
marketing efforts.
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K. As needed or requested by the City, conduct membership surveys on
general business topics, e.g., parking, ride - share, recycling, signage, etc. to
inform the City of business concerns.
L. Utilize the Chamber's Asian Business Outreach Committee and other
contacts to strengthen the participation and membership among the Asian
Business Community.
M. Work with other business areas on Live Oak, Duarte, and other sectors to
initiate regular events and marketing.
N. Develop new media marketing opportunities for business members through
Chamber such as TryltLocal Groupon -like offers, citywide door hanger
promotions, and revisit programs such as Member -to- Member discounts.
III. Government/Legislative
A. Through the Legislative Committee, provide business information to
Chamber members and serve as a forum for City, County, State and
Federal interrelationships and dialogue.
B. Review and recommend proposed business legislation and concerns to City.
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Attachment B
May 24, 2011
Mr. Don Penman, City Manager
Members of the Arcadia City Council
240 West Huntington Drive
Arcadia, California 91007
Re: Arcadia Chamber of Commerce & City of Arcadia
2011 -2012 Annual Agreement
Dear Mr. Penman and Council Members:
The Arcadia Chamber of Commerce is pleased to submit the enclosed annual
performance report for services to the City for 2010 -2011 fiscal year, and the
proposed budget for 2011 -2012.
The Arcadia Chamber, the second largest in the San Gabriel Valley, continues to
provide a service to the City not only as a promotional and marketing resource
for the business community and producer of two of the City's highest - profile
annual events — Citizen of the Year dinner and Taste of Arcadia -- but also as a
second "front door" to the City as an Information Center for visitors and residents.
Like many organizations in the down economy, the Chamber suffered a decline
in revenue from a dip in Chamber memberships and other income, which in turn
forced a six -week furlough for one staff member and a 33% cutback in weekly
hours for another part-time staff person this past year. Nonetheless, the
Chamber continues to offer a high level of professional, quality service to
businesses, residents and visitors. In fact, while continuing to find cost - savings
and be more fiscally prudent and efficient; the Chamber is adding new services
and opportunities for members.
Despite its own financial challenges, last year the City of Arcadia, including the
Redevelopment Agency, maintained the same level of investment of $62,000 for
services provided by the Arcadia Chamber that has been the rate for several
years. While the Chamber would appreciate any reasonable increase in annual
fees to recover staffing losses, for the upcoming 2011 -12 year, the Chamber is
requesting at least the same quarterly installment payments of $15,500 starting
with the July 1, 2010 payment. The Chamber would very much like to continue in
a partnership with the City as this should be seen as a truly great mutual benefit.
In this past year the Chamber successfully spearheaded the creation of the
Downtown Business Association and, this year, will continue to support that
group as it formalizes its official standing and grows along with the development
of the Gold Line Foothill extension.
The Chamber will also continue to focus on areas such as economic
development, business relations and information, Asian business assimilation,
educating and encouraging small businesses, and monitoring and being pro-
active in legislative affairs.
The Chamber also continues to be active with the San Gabriel Valley Legislative
Coalition of Chambers of Commerce which the Arcadia Chamber advanced nine
years ago to address legislative issues pertaining to the viability of SGV business
in general. The Arcadia Chamber also belongs to the Economic Partnership, the
Southern California Chambers of Commerce and several other Chamber driven
organizations.
Our mission is to serve the City of Arcadia, the businesses & citizens.
The service fee paid by the City will enable the Chamber to continue to provide a
valuable resource for Arcadia as one of the primary points of initial and ongoing
contact for newcomers, residents and businesses, and the ongoing fostering of
new business development and education. We continue to interact with SBDC,
SCORE, and SBA to offer consultations for businesses, and those looking for
local employment. Invited to participate are both members and non - members
Enclosed you will find a copy of the Chamber 2011 -2011 Proposed Budget. We
appreciate your continued interest and support of the Arcadia Chamber of
Commerce.
Sincerely,
Scott Hettrick Bob Hoffman
Executive Director President, 2011 -2012
Progress Report July 1, 2010 — May 24, 2011
Arcadia Chamber of Commerce
The Chamber has been very busy — many activities & accomplishments thus far.
• Taste of Arcadia — Over 1200 attended and over 40 restaurants and wineries,
breweries participated.
• E -Waste pick -up in May: Tons of business & residential E -waste
collected /diverted from our landfills.
• New member showcase scheduled for June 14 at Elks Club
• New Arcadia directory published, prepped for delivery to 12,000
• Map of Arcadia created, sold, prepped for delivery late summer 2011
• Gold Line: Initiated, attended meetings, design, ceremonies
• 10 Business Mixers
• Promoted state awards for Executive Director Beth Costanza and former
President Kevin Zimmerman
• More than 3,000 Power of Connection Newsletters distributed & flyer inserts
• Web site: more than 10,000 unique hits each month
• Two Business Expos: Fall 2010 at Doubletree; more than 30 exhibitors; March
'11, Westfield — more than 10,000 visitors
• Chamber Summer Carnival scheduled for June 24 -26
• Installation Dinner & Citizen of the Year Award — record 225 attendess
• Chamber Business Awards Breakfast scheduled for June 16 — expecting record
turnout for Networking Breakfast.
• More than 100 Chamber committee meetings
• Chamber representatives attended more than 50 civic meetings & events
• Hosted 11 monthly Networking Breakfasts; more than 300 combined attendees
• Attended monthly SGV Legislative Coalition meetings re: business legislation
that the Chamber needs to exert influence
• Government Affairs Forum met 11 times presenting informative speakers,
elected officials' updates & recommendations regarding pending legislation
• 20 Grand Openings / Ribbon Cutting Ceremonies
• Re- started Asian Outreach Committee; plans for Asian Business Night Dec. 8
• Assisted more than 1,000 walk -in visitors with directions, information, maps,
business referrals
• Responded via phone, fax, email & Internet to thousands of requests for
business referrals and information about Arcadia
• Prepared, mailed or delivered about 50 residential relocation packets
• Provided thousands of tourist & visitor information brochures
• Distributed more than 200 business packets to businesses requests
• Ambassador visits /calls to more than 150 members during the past year
• Boardroom rentals ranging from one -time to monthly
• SGV Economic Partnership participation
• SCORE,SBA & SBDC counseling services; monthly Mastermind series, Foothill
Workfoce Board seminars, etc.
• Strategic Planning includes Budget/finance Committee
• Most members continue to receive Pasadena Star -News $3.50 per year.
• 60 New Members in the past year!
• Successfully reestablished a Downtown Business Association and won City
funding for consultant and parking study
• Past President Council continues to meet: recommended bringing back Carnival
Attachment C
ARCADIA CHAMBER OF COMMERCE 2011 -2012 BUDGET
ACTUAL PROPOSED ACTUAL PROPOSED
6/30/10 BUDGET 4/30/11 BUDGET
YEAR END 2010 -2011 TEN MONTHS 2011 -2012
RECEIPTS:
Chamber Member Dues 83,595 90,000 74,312 90,000
New Member Dues 12,880 12,000 8,292 10,000
Event Income 105,737 107,000 84,906 110,000
Directory/Maps 0 5,000 1,500 9,000
City of Arcadia 62,000 62,000 62,000 62,000
Newsletter/Website Advertising 4,468 6,000 3,679 4,400
Delegation Letters 750 1,000 949 1,200
Income - Other 5,180 4,200 4,385 5,200
Interest Income 1,747 1,800 780 900
TOTAL RECEIPTS 276,357 289,000 240,803 292,700
DISBURSEMENTS:
LABOR EXPENSES:
Office Salaries & Wages 125,683 128,000 106,688 128,000
Employer Payroll Taxes 10,932 10,900 9,419 11,300
Payroll Service 1,610 1,400 1,664 2,000
Outside Contracting (1099) 98 100 25 100
Retirement Contributions 7,668 7,500 5,868 7,000
Health Insurance 14,733 15,500 10,413 12,500
Workers Comp Ins 1,062 1,300 1,085 1,300
TOTAL LABOR EXPENSES 161,786 164,700 135,162 162,200
ALLOWANCES:
President's Expenses 1,325 1,200 925 1,200
Executive Director 1,810 1,800 2,530 1,800
TOTAL ALLOWANCES 3,135 3,000 3,455 3,000
OCCUPANCY:
Rent 4,800 4,800 4,000 4,800
Taxes & License 2,451 2,500 2,513 2,600
Utilities 3,722 3,500 2,314 3,000
Repair & Maintenance 1,275 500 1,619 1,500
Custodian 1,600 1,800 1,260 1,800
TOTAL OCCUPANCY 13,848 13,100 11,708 13,700
INSURANCE:
Auto 519 1,000 969 1,000
Director & Officer 4,108 4,200 3,679 4,400
TOTAL INSURANCE 4,627 5,200 4,648 5,400
X\975\2006 -07 Budget
ARCADIA CHAMBER OF COMMERCE 2011 -2012 BUDGET
ACTUAL PROPOSED ACTUAL PROPOSED
6/30/10 BUDGET 4/30/11 BUDGET
YEAR END 2010 -2011 TEN MONTHS 2011 -2012
OPERATIONAL SERVICES:
Telephone & Internet 5,557 5,200 3,900 4,800
Postage 5,704 5,500 2,555 3,200
Newsletter - Printing 4,928 6,000 4,380 5,400
Printing & Reproduction 836 1,000 2,104 1,500
Other Printing 1,612 500 212 300
Equipment Purchase 3,450 500 0 1,000
Equipment Rent 5,996 6,200 4,164 3,800
Equipment Repair 498 600 257 500
Accounting 4,085 4,600 4,040 6,000
Dues & Subscriptions 1,710 1,600 1,158 1,400
TOTAL OPERATIONAL SVCS 34,376 31,700 22,770 27,900
SUPPLIES:
Plaques & Awards 125 500 0 500
Stationery & Supplies 3,484 2,800 1,849 2,500
Hospitality 1,872 1,800 1,687 2,000
Computer Supplies 300 400 640 800
TOTAL SUPPLIES 5,781 5,500 4,176 5,800
' ' CELLANEOUS:
. .;ling & Conference 821 1,000 65 500
Advertising/Promo/Website 6,653 7,200 4,445 5,400
Computer/Website Maint 4,320 5,000 5,630 6,000
City Event/Program Expense 57,325 57,000 50,548 60,000
License & Permits 85 100 120 150
Credit Card % & Miscellaneous 7,686 4,600 6,738 4,800
TOTAL MISCELLANEOUS 76,890 74,900 67,546 76,850
TOTAL DISBURSEMENTS 300,443 298,100 249463 294,850
OPERATING INCOME (LOSS) (24,086) (9,100) (8,660) (2,150)
Visionary Fund Receipts 4,950 3,000 3,330 4,000
Visionary Fund Disbursements (905) (3,000) 0 (2,500)
NET INCOME(LOSS) (20,041) (9,100) (5,330) (650)
%197512006 -07 Budget
ARCADIA CHAMBER OF COMMERCE
BUDGETED EVENT INCOME 2011 - 2012
GROSS
INCOME COSTS INCOME
EVENT
Mixers /Breakfast Connection 5,800 2,400 3,400
Business Expos 4,700 2,600 2,100
Taste of Arcadia 54,500 29,000 25,500
Installation Dinner 15,200 13,300 1,900
Recognition Luncheon 800 700 100
Carnival 25,000 10,500 14,500
Other 4,000 1,500 2,500
TOTALS 110,000 60,000 50,000
X \975 200607BucgetPg2