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HomeMy WebLinkAboutE-09 - 2016-2017 Azusa Chamber Contract_Staff ReportCONSENT ITEM E-9 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER FROM: KURT E. CHRISTIANSEN, FAICP, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR DATE: JULY 18, 2016 SUBJECT: CONSIDERATION OF AZUSA CHAMBER OF COMMERCE CONTRACT FOR FISCAL YEAR 2016/17. SUMMARY: The Azusa Chamber of Commerce (Chamber) and the City have a mutual interest in the promotion and marketing of the City to the general public. Annually, the City provides financial support to the Chamber. In turn, the Chamber provides a variety of support services to the City including business retention and attraction, public information, and visitor services. The action approves an agreement with the Chamber to provide financial support in the amount of $44,493 for various marketing and business development services for Fiscal Year 2016/17. RECOMMENDATION: Staff recommends that the City Council take the following actions: 1) Authorize Staff to finalize and execute the Agreement Regarding Chamber of Commerce Funding and Support between the City and the Azusa Chamber of Commerce for Fiscal Year 2016/17 at a funding level of $44,493, which is the same funding level as Fiscal Year 2015/16. 2)Authorize the City Manager to execute the contract, in a form acceptable to the City Attorney, on behalf of the City. DISCUSSION: The Azusa Chamber of Commerce (Chamber) has been an active principal advocate for business activities in the City and has historically been recognized as the representative of the businesses, which contribute substantially to the City’s revenue base. The Chamber’s mission is to “…serve as a catalyst in the transformation of business and economic climate, resulting in a healthier, more prosperous Azusa.” Over the years, the City and the Chamber have partnered together to play a key role in supporting economic development and business retention efforts. APPROVED COUNCIL MEETING 7/18/2016 Azusa Chamber of Commerce Contract July 18, 2016 Page 2 At the September 7, 2010, City Council meeting, a self-sufficient plan was approved whereby the City’s assistance would be steadily decreased over a 19-year period. The self-sufficiency plan reduced the assistance by 10% in the 2010/11 fiscal years and called for a 5% reduction in Chamber support each subsequent year. Prior to 2011, the Azusa Chamber of Commerce received assistance from the City from two different sources. The Redevelopment Agency provided 41% of the assistance and the remaining 59% was funded by the Light and Water Department. On June 28, 2011, as part of the 2011/12 State of California budget bill, companion bills Assembly Bill 1X 26 (“AB 1X 26”) and Assembly Bill 1X 27 (“AB 1X 27”) were enacted, which dissolved the Agency, effective February 1, 2012. This source of funding is no longer available and the City was unable to provide the funding gap the last three fiscal years, and continues to be unable to fill the gap. The assistance provided by the City is solely the portion allocated from the Light and Water Department. At the July 28 , 2014, City Council meeting, Staff presented a 5% reduction in assistance to the City Council, per the self-sufficiency plan, and recommended funding at $42,268. Based on the elimination of redevelopment, and the loss of portion of assistance from the former agency, the City Council agreed to keep the assistance at the same level as 2012/2013 of $44,493. This total assistance amount was the Light and Water Department contribution. At the July 7, 2015 City Council Meeting, the City Council again agreed to keep the assistance level at $44,493 which has been consistent with the previous four (4) years. Staff is recommending that the City Council continue the same assistance level as the 2015/2016 contract. As per the attached agreement, the Azusa Chamber of Commerce agrees to a variety of services. Also outlined within the agreement, is an array of responsibilities which the Chamber of Commerce is to provide related to: Businesses; the Community; and Marketing/Business Development. FISCAL IMPACT: Funding for the agreement between the City and the Azusa Chamber of Commerce for fiscal year 2016/17 will exclusively come from the Light and Water Department (Account # 31-40-702-921-7050). At this time, the City has no other funding sources available to provide financial support to the Chamber. Prepared by: Reviewed and Approved: Carina Campos Kurt Christiansen, FAICP Economic Development Specialist Economic and Community Development Director Reviewed and Approved: Reviewed and Approved: Louie F. Lacasella Troy L. Butzlaff, ICMA-CM Management Analyst City Manager Attachments: 1) Agreement Regarding Chamber of Commerce Funding and Support between the City and the Azusa Chamber of Commerce for Fiscal Year 2016/17. 1 AGREEMENT REGARDING CHAMBER OF COMMERCE FUNDING AND SUPPORT BETWEEN THE CITY OF AZUSA AND THE AZUSA CHAMBER OF COMMERCE This Agreement Regarding Chamber of Commerce Funding and Support (“Agreement”) is entered into as of the 1st day of July 2016 (“Effective Date”) by and between CITY OF AZUSA (“City”) and the AZUSA CHAMBER OF COMMERCE (the “Chamber”). The City and Chamber are sometimes individually referred to herein as “Party” and collectively referred to as “Parties”. This Agreement shall be effective for the duration of one year, until the day of June 30, 2017. RECITALS A. City is desirous of promoting business, residential and economic development opportunities within the City of Azusa, disseminating information relative thereto, and of properly following up and giving consideration to inquiries made relative to the various activities of the City and its business, residential and economic development opportunities; and B. City is also desirous of forming joint legislative advocacy opportunities with other entities. C. The Chamber has special knowledge, experience and facilities for disseminating such information and legislative advocacy, is organized for and equipped to carry on promotional activities on behalf of City and to publicize and exploit the economic and regional advantages that City has to offer to business, residential and industrial interests; and D. The Chamber has for more than a century been the principal citywide advocate for business and has historically been recognized as the representative of all businesses, which contribute substantially to the City’s revenue base. E. The Chamber’s activities are recognized by law as being in the public interest and serving a public purpose. AGREEMENT NOW, THEREFORE, it is agreed by and between the Parties as follows: A. Services Chamber shall undertake, during the term of this Agreement, promotional and advocacy activities on behalf of City and render the following services: 1. Maintain suitable quarters and employ competent, professional personnel to carry on the promotional and advocacy activities of the City as herein stated. 2. Represent the interests of all Azusa businesses in promoting economic development and lawful and positive business and local sales revenue. 3. Participate in marketing the City’s advantages inside and outside the community to retain and attract business and local sales revenue. 2 4. Promote improvement strategies that enhance the value of property and stimulate investment and development of vacant or underutilized properties. 5. Promote trade and business meetings and activities that further these goals. B. Responsibilities Chamber shall undertake, during the term of this Agreement, promotional and advocacy activities on behalf of City in the following areas: 1. Business a. The Chamber shall actively work to increase the current Membership by 10%. b. Serve as an advocate for the business community and as a City liaison when appropriate. This shall be accomplished by operating as a visible and approachable representative of business, and by disseminating legislative and other information to the business community on behalf of the City. c. Attend meetings of the Azusa City Council on a regular basis. d. Maintain and continue to improve the image of the Chamber within the City of Azusa and surrounding areas. e. Assist the City in the attraction, retention and expansion of business in Azusa through the work of an Economic Development Committee, which shall reach out to businesses and offer workshops and assistance to the business community. f. Provide Chamber Members with an avenue to announce their presence in the community at large, through groundbreaking events, ribbon-cutting ceremonies and open houses. g. Serve as a Member on the San Gabriel Valley Coalition of Chambers to provide a voice for the business community within Azusa. h. Host the Annual State Address for members of the community, employees of the City, and business owners. i. Provide educational programs to Chamber Members such as: Internship Programs with our Business Partners, Legislative Matters i.e., Legal Labor Laws for Small, Home Based and Large Businesses, provision of a Community Resource Information Center; and Promotion of Multicultural Markets specializing in Business Type, Industrial, Retail and all member classifications. j. Develop a Business Recognition Program in conjunction with the City of Azusa to include all sizes of business. Develop criteria, plan and venue of recognition, e.g., Beautification of Business in Azusa, Volunteer Award, Business of the Year, and Business Person of the Year. Additionally, enhance our current New Chamber Member Reception for new members in conjunction with the current increase of membership. 2. Community 3 The Chamber shall continue to improve the quality of life in Azusa by participating in the following Community events and/or organizations: a. Serve as a liaison for the City in encouraging local businesses to participate in community events. b. Serve as a point of contact for the local business community to obtain information, volunteer, or donate funds in support of the Vietnam Memorial Moving Wall. c. Promote community spirit by coordinating and attending the annual Azusa Day at the Pomona Fairplex. d. Support the City of Azusa’s Annual Golden Days festivities by coordinating an event on one evening of the weeklong festival. e. Continue an increase in the following programs and events: Presidents Club; Membership; Networking Events; New Member Receptions; Collaborative Mixers with adjoining cities; Taste of the Town; State of the City; Job Shadow; and Meet the Mayor Reception. 3. Marketing and Business Development The Chamber will increase its activities to market the City by performing the following: a. Partner with the City to support and promote Azusa at trade show opportunities. b. Include City staff from Economic Development in the Business Visitation Program with the Chamber and Economic Development Committee. c. Assist the City in the Branding and Marketing Strategy development by: a. Participating in the community and business outreach; b. Providing relevant photography depicting the City’s business environment; and c. Taking part in the stakeholder interviews. d. Upgrade and improve the Design of the Chamber’s Website by: a. Providing a downloadable/printable PDF Business Directory; b. Updating demographic statistics; c. Promoting the Azusa Chamber of Commerce mobile application; and d. Outlining the benefits of the different membership opportunities. e. Expand the publication of The Azusan (The Chamber’s Newsletter) by i ncreasing pages and volume of advertisement, include a City update column, include testimonials and case studies from businesses in Azusa, include City maps and information, and increase the quality of the publication to include color. As a future goal, the Chamber will strive to increase editions from bi-monthly to monthly, and increase distribution to all businesses within the City of Azusa and add residential distribution. C. Consideration In consideration of the valuable services performed by the Chamber for City, as set forth above in Section A hereof, City hereby agrees to pay Chamber, during the term of this Agreement, the sum of 4 FORTY-FOUR THOUSAND FOUR HUNDRED NINETY-THREE DOLLARS AND ZERO CENTS ($44,493.00). The consideration shown above is to be funded by Azusa Light and Water and represents 100% of the 2016/17 financial assistance identified in Section E of this Agreement. The City shall make payment, to the Chamber in twelve monthly installments. The Chamber agrees not to fund The Azusan or any other Chamber newsletters or publications with any compensation provided by the City. D. Duties of Chief Executive Officer The Chief Executive Officer shall prepare and submit to the City Manager or his designee a written report every sixty (60) days specifying the activities of Chamber during the preceding sixty (60) days. Said report shall be prepared in format acceptable to the City Manger. Executive Director shall promptly furnish City, upon the completion of Chamber’s operating year, certified copies of its annual operating statement. E. Self-Sufficiency of the Chamber The Chamber will develop a strategy and plan which will enable it to become financially self-sufficient within seventeen (17) years from the ending term of this Agreement. The City proposes this self- sufficiency plan as a plan only and, to facilitate this, the Chamber will be subject to contribution reduction benchmarks. In 2016/17, the City’s contribution will not be decreased to $42,268.35, but will be funded at the same level as Fiscal Year 2015/16, $44,493. As per this plan, in 2017/18 and for every year after, the City’s contribution will be decreased by $2,486.37 until such time as the Chamber becomes self-sufficient. However, this is not a guarantee of future funding. A report and action plan will be presented to the Azusa City Manager during the term of this Agreement detailing how this goal will be achieved. F. Indemnification Chamber agrees that it will defend, indemnify and hold harmless City, and its elected officials, officers, employees and agents from and against all claims, demands, cause of action, costs, expenses, losses, injuries, damages or liabilities to property or persons, including wrongful death, in any manner arising out of or in connection with any alleged acts, omission or willful misconduct of Chamber, its officials, officers, employees, agents, consultants and contractors arising out of or in connection with the performance of the Services or this Agreement, including without limitation, the payment of all consequential damages, attorneys fees and other related costs and expenses to the maximum extent allowed by law. G. Insurance Chamber shall secure from a good and responsible company or companies doing insurance business in the State of California, pay for and maintain in full force and effect for the duration of this Agreement a policy of comprehensive automobile and worker’s compensation and employee’s Liability Insurance in which the City is the named insured or is named as an additional insured with the Chamber and shall furnish a Certificate of Liability Insurance to the City Manager before execution of this Agreement by the City or within a reasonable time after execution. Notwithstanding any inconsistent statement in the policy or any subsequent endorsement attached thereto, the protection offered by the policy shall: 5 1. Include the City as the insured or named as an additional insured covering the services to be performed under this Agreement against all claims arising out of, or in connection with, this Agreement. 2. Include the City, its officers, employees and agents while acting within the scope of their duties under this Agreement against all claims arising out of, or in connection with, the Agreement. 3. Provide the following minimum limits: a. General Liability: $1,000,000.00 combined single limit per occurrence for bodily injury, personal injury and property damage. b. Automobile Liability: $1,000,000.00 combined single limit per accident for bodily injury and property damage. c. Worker’s Compensation and Employees Liability: Worker’s Compensation limits as required by the Labor Code of the State of California and Employer’s Liability of limits of $1,000,000.00 per accident. 4. This insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from work performed by the Chamber for the City. 5. Bearer and endorsement of shall have attached a rider whereby it is provided that, in the event of expiration or proposed cancellation of such policy for any reason whatsoever, the City shall be notified by registered mail, postage prepaid, return receipt requested, not less than thirty (30) days before such date. H. Self-Insured Any deductible or self-insured retention must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductible or self-insured retention as respect of the City, its officers, officials and employees; or the Chamber shall procure a bond guaranteeing payment of losses and related investigation claim administration and defense expenses. I. Attorney’s Fees Should any litigation be commenced between the Parties hereto concerning the provision of this Agreement, the prevailing party in such litigation shall be entitled to reasonable attorney’s fees, in addition to any other relief to which it may be entitled. J. Term This Agreement shall be effective for a twelve (12) month period commencing upon effective date of this Agreement. K. Termination This Agreement may be terminated by either party upon thirty (30) days written notice with any sums due and payable hereunder. 6 [SIGNATURES TO FOLLOW ON NEXT PAGE] 7 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date(s) written below. CITY OF AZUSA AZUSA CHAMBER OF COMMERCE Troy L. Butzlaff, ICMA-CM Ria Benbow, Chair of the Board City Manager of Directors for Azusa Chamber of Commerce DATE: DATE: ATTEST: Jeffrey Lawrence Cornejo, Jr City Clerk APPROVED AS TO FORM: Best, Best & Krieger, LLP City Attorney