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Home My WebLink AboutAgenda: Study Session Item a: Funding request from Chamber of Commercev'FoKN\ AvPUe[ it i90.I O "nir; of DATE: May 2, 2013 TO: Dominic Lazzaretto, City Manager MEMORANDUM Development Services Department FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director-ji4� Jerry Schwartz, Economic Development Manager 105 SUBJECT: May 7, 2013 Study Session: Funding Options for the Arcadia Chamber of Commerce for FY 2013 -2014 During the April 23d City Council Study Session on the budget, it was mentioned that the Arcadia Chamber of Commerce requested an increase from the City to $120,000 per year from the $62,000 it has received annually for the prior six years. The Chamber based its request on its role with the business community, which provides sales tax, business license fees, and other revenues to the City. The Chamber has said that the City could provide some of this increased payment in forms other than cash, but that it needs $75,000 $100,000 in cash to meet its budget needs. During the Study Session on May 7, the Chamber C.E.O. will explain this request for FY 2013 -14 and beyond. The Chamber leases its office at 388 West Huntington Drive from the City of Arcadia. There has not been much invested in the building for many years. It is a very visible building and acts as a second front door to the City beyond City Hall. The Chamber has been pursuing potential improvements to the building. They solicited three bids from contractors for a variety of projects that would modernize the building. Certain items are high priority improvements that would address key Issues, while others are projects that would potentially be pursued when resources are available. The last attachment is a table that lists the various projects, the work that would be done, the range of costs for each project, and the total cost for all projects. The range of costs for the high priority projects is $35,021 - $59,437. The total cost for all projects ranges from $148,621 - $181,637. This information could offer the City Council various options if it desires to provide additional support to the Chamber beyond an annual cash contribution while investing in this City - owned property. The Lease with the Chamber for the property addresses maintenance, with the Chamber being responsible for the inside of the building and the City taking care of the outside area. Building improvements are not included in the Lease as neither party has made significant investments in upgrades prior to this initiative by the Chamber Board. Attached to this memo is the following: 1) April 17 letter from the Chamber of Commerce explaining its funding request, 2) Chamber of Commerce Progress Report for July 1, 2012 — April 14, 2013, 3) Table of Proposed Improvements to the Chamber Office Building April 17, 2013 Mr. Dominic Lazzaretto, City Manager Members of the Arcadia City Council 240 West Huntington Drive Arcadia, California 91007 ARCADIA Re: Arcadia Chamber of Commerce & City of Arcadia Chamber of Commerce 2013 -2014 Annual Agreement lY'djlllr; Co11I111111I11�" j)11C1(' 1111'o11g11 hiis11K'S.S 15111('(' j -90! Dear Mr. Lazzaretto and Council Members: The Arcadia Chamber of Commerce is pleased to submit the enclosed annual performance report and new contract for services to the City for FY 2013 -2014. We thank the City for its decision a year ago to use General Funds to replace the annual $31,000 supplement for Chamber fees for services that were lost from the demise of the Redevelopment Agencies. We were pleased to work closely once again with the City all year on the following specific events of specific mutual benefit: • ADA Compliance seminar May 30 • Business Expos: 3 City expo tables at Winners Circle Biz Expo at Santa Anita Park, and Business Showcase at the Taste of Arcadia. • Downtown Community Benefits District and Arcadia Towne Center Business Association, plus parking, wayfinding signage sub - committees • Taza coffee shop -- start -up and neighbor issues The Chamber would like to re- address last year's proposal to re- examine the basis for the fee paid to Chamber for services provided to the City. In a nutshell, the Chamber would like to ask for the following: Therefore the Chamber proposes a new service fee model: • Five -year services contract with the City, reviewable annually, to allow the Chamber to better project expenses long -term. • Annual fees for Chamber services to be based on City revenue generated by business - related sales taxes and permits /licenses (currently about $12 million). • Annual fee to represent 1 % (one - percent) of above business - related income to City each year ($120,000 this year). • Other considerations to be deducted from annual fee, such as: • Revised lease rate for building, i.e. triple to $1,200 monthly from $400 ($14,400 annually) vs $1 per year for Hospital • capital improvements each year to interior of building and outdoor signage, as approved by City, which owns property. (attached project bids range from $15,000 - $190,000) Page 2 of 3.. . The rationale for the proposed new fees - for - services model: • Approximately 90% of the services provided by the Chamber benefit the City of Arcadia's business sector and community at large, directly or indirectly, much of which the City would need or desire to fund at much greater expense to City if the Chamber did not exist. (Breakout on attached pages, including many required delivery items by City.) • The City's annual sales tax revenue alone, which is somewhat attributable to, and sustained by the Chamber's services, stands at more than $10 million, having grown by more than $2 ml. per year since 2000, despite the recession since 2008. Business licenses and permits account for another $2 mil. per year. • The Chamber's service fee to the City, which no one can remember on what is based, currently represents less than 21 % of the Chamber's costs to provide these services. This annual fee charged to City has increased only once since the 1990s, a bump of less than 13% ($7,000) five years ago in 2007. Summary of Chamber services The Arcadia Chamber of Commerce is one of largest Chambers in the San Gabriel Valley; which requires operating budget that is among top 40 largest in all of L.A. County. Here are a few highlights of Arcadia Chamber services: Business: • Hundreds of hours spearheading, supporting Downtown Business District • Advocate /voice and liaison to City for business owners — ie Taza Coffee • Resource for information, seminars, such as May 30 lunch on ADA • Vital promotion and marketing partner through ribbon - cuttings, business mixers, fliers, printed newsletters, and especially this year with new web site, photos, videos, and social media e- mails, Facebook, Twitter, etc. • In -office touch - screen for biz member ads (also online): http: %/wwr Aouchareadia.cony • New ChamberMail service for members to reach new residents: l�ttl�:i /w�v�v.chanlbennail . usi:rot? ?t�= cataln� &parent �132 • New eLocal video and new resident info site: http :.';wok,w.elocallink.tv'clients l,calarcadialtourp la php3 r novic— ar�acaco c12 iwd &spon— wcicorne T • Annual Business Awards & introduced new monthly tribute to Arcadia Business Icon (member or not), and added Corp Citizen of Year award • Producing Visitors 1 Biz Developer videos in 2013 -14 to share with City • Unlike Chambers in cities such as Irwindale, dominated by industrial businesses with big budgets, the Arcadia Chamber services wide -range of business types, from home -based services and small retail, to a giant mail, hospital, and horse race track, plus residential members. Page 3 of 3... City/Community' • Produced "Arcadia's Got it All!" video that has already had nearly 1,000 views on YouTube and Internet, shown 100 times on local cable system ESPN, TNT, and TBS during March Madness and Opening Day baseball games, and soon to be added to City's cable channel • Coordinated promotion and high - profile ribbon - cuttings for introduction of Pasadena Pops and Cal Phil at new locations summer 2012 6,000 info calls, walk -in visitors each year. Chamber is second "front door" to the City as de facto Visitors Center, especially given Chamber's prominent office location that invites hundreds of weekly walk -in visitors, phone calls seeking all manner of City and community- oriented information (City of Pasadena funds its own Visitors Bureau -- this Chamber service saves the City of Arcadia considerable expense.) Produce two of City's biggest signature events of year: Taste of Arcadia (700 -800 attendees); Citizen of Year/ Installation Dinner (200 attendees) • City street maps, City directory — free supplies to City, Police, Fire, etc. • Promotional /marketing vehicle for City/non-profit organization events, activities via printed fliers, Expos, new web site, social media, etc. • Introduce board to City /member facilities at monthly meetings • Promotion /hosting partner with City on seminars, programs • Showcase & support community non - profit groups including Relay for Life with last year's first -ever flash mob, etc. • Provide monthly community calendar for Coordinating Council. • Support schools -- Measure A parcel tax; Performing Arts Center. • Offer unique global travel vacations; plus "Getting to Know Sri Lanka" event at Chamber • Monthly Governmental Affairs Forums considered the best in region • Community informational seminars such as Jan. 29 Micosoft Office 2010 training. • Support partner for community info on Gold Line and Gas Co Advanced Meters Enclosed are financial reports with budget comparisons. We appreciate your continued interest and support of the Arcadia Chamber of Commerce. Sincerely, Scott Hettrick Arlynn Robinson Chief Executive Officer President, 2013 -2014 ,. MPV-- Progress Report July 1, 2012 -- April 14, 2013 Arcadia Chamber of Commerce Just a few Chamber activities & accomplishments in first 10 months of Fiscal Year: • Taste of Arcadia and first -ever Business Showcase at the Taste — More than 700 attended, more than 75 food and business vendors participated. • First -ever Chamber production of "Arcadia's Got it All!" video • Citizens of Year 1 Installation Dinner — nearly 200 attended • First annual Corporate Community Contributor award added to Installation above • Planning Conference, including State of City report from new City Manager • First -ever All Access Pass program yielded dozens of participants • First -ever Keystone sponsors of Networking Breakfast, Gov Affairs Forum • New monthly Arcadia Business Icon tribute includes non - members • Hosted 10 monthly Networking Breakfasts with 33% increase to 400 attendees Hosted monthly Downtown Community Benefits District meetings • Westfield renewed for 2nd, 3rd years as Community Builder Presenting Sponsor • 50 New Members in the past year. • Arcadia Downtown Improvement District going out to Petition in May • 15 Business Mixers and Ribbon - Cuttings in 10 months since July 1, 2012 • More than 2,500 printed newsletters distributed • Web site: continued additions /enhancement including Member Directory • Chamber Business Awards Breakfast scheduled for July 18 • More than 60 Chamber committee meetings attended by 872 in 10 months • Chamber reps attended more than 75 civic meetings & events • Government Affairs Forum met 10 times presenting informative speakers, elected officials' updates & recommendations regarding pending legislation Assisted more than 2,000 walk -in visitors with directions, information, maps, business referrals • Responded via phone, fax, email & Internet to more than 5,000 requests for business referrals and information about Arcadia • Provided thousands of tourist & visitor information brochures Ambassador visits /calls to more than 150 members during the past year • More than 150 boardroom rentals ranging from one -time to monthly • Supporters of SGV Economic Partnership, SCORE, SBA & SBDC counseling services; Foothill Workforce Board seminars, etc. • Two new member outreach services for new residents via mail (ChamberMail) and Internet (eLocal), the fatter with exclusive Arcadia promo video • Weekly e -mail newsletters • More than 900 postings on web site, Facebook, Twitter • introduced more efficient and cost- effective phone, e -mail and IT systems Proposed Improvements to Chamber Office Buildina Improvement Description Range of Costs Priority Level 1. Conference Room New paneling, paint, $9,862 - $32,061 High electrical upgrades, ceiling mount projector and screen 2. Kitchenette New sink, faucet, $5,783 - $8,000 High cabinet, drywall, paint, and countertop 3. Window Coverings Replace solar shades $5,259 High with valances in conference room 4. Window Tinting Dual reflective solar film $3,997 High on all windows (approximately 50) except the conference room 5. Storage Cabinets — Back New; 23 linear feet made $10,120 High Area & Conference Room of red oak 6. Storage Cabinets -- Lobby New; 13 linear feet made $3,471 When Area of red oak Possible 7. Bathroom Convert to handicap $16,000 - $17,600 When accessible unisex Possible restroom 8. New Ceiling Tiles and Remove /Replace acoustic $40,000 When Lighting ceiling tiles and Possible fluorescent lighting 9. Remodel Entry Area New furniture, counter, $20,350 When work stations, flat Possible screens with wiring; new brochure display, plus other miscellaneous items 10. Conference Room Remodel to provide $3,500 When Storage more efficient storage Possible 11, Wallpaper /Paint Remove existing $6,500 When wallpaper and paint walls Possible 12. HVAC install new ductless $20,000 When HVAC system for entire $7,000 (add ducts) Possible building 13. Carpets install new carpeting in $7,250 When building Possible Subtotal High Priority Projects $35,021 - $59,437 Subtotal All Other Projects $113,600 - $122,200 TOTAL ALL WORK $148,621- $181,637