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HomeMy WebLinkAboutE-10 Staff Report - 2021-2022 Azusa Chamber ContractCONSENT ITEM E-10 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MATT MARQUEZ, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR DATE: SEPTEMENR 20, 2021 SUBJECT: CONSIDERATION OF AZUSA CHAMBER OF COMMERCE CONTRACT FOR FISCAL YEAR 2021-2022 BACKGROUND: Each year, the City of Azusa provides financial support for the Azusa Chamber of Commerce. Prior to the dissolution of Redevelopment, the funding came from both the Redevelopment Agency and the Light and Water Department. The agreement is being proposed for a three-year term for various marketing and business development services. Fiscal Year 2021-2022 is being proposed in the amount of $44,493. The proposed actions authorize Staff to finalize and execute the agreement regarding the Azusa Chamber of Commerce funding and support between the City of Azusa and the Azusa Chamber of Commerce for a three-year term. RECOMMENDATIONS: Staff recommends that the City Council take the following actions: 1) Authorize Staff to finalize and execute the Agreement Regarding Azusa Chamber of Commerce Funding and Support between the City of Azusa and the Azusa Chamber of Commerce for a three- year term at a funding level of $44,493 for Fiscal Year 2021-2022, which is the same funding level as Fiscal Year 2020-2021; and 2)Authorize the City Manager to execute the contract, in a format acceptable to the City Attorney, on behalf of the City. ANALYSIS: 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 APPROVED CITY COUNCIL 9/20/2021 Azusa Chamber of Commerce Contract September 20, 2021 Page 2 the years, the City and the Chamber have partnered together to play a key role in supporting economic development and business retention efforts. At the September 7, 2010 City Council meeting, a self-sufficiency 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 2010-2011 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 2011-2012 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. As a result, 41% of the funding became unavailable and the City was unable to provide the funding gap 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, 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 nine (9) years. Like many Azusa Businesses, the Chamber has been significantly affected by Coronavirus (COVID-19). As a result of the County of Los Angeles Department of Public Health Order, the Chamber was forced to cancel its programs and events resulting in lost revenue. In addition, because many Azusa businesses were also required to modify their business operations, their loss of revenue impacted the Chamber’s membership dues. Although the Chamber was a recipient of the Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP), the Chamber has been unable to recover. The Chamber is seeking alternative ways to continue serving the Azusa Business community while generating revenue to keep its doors open. The Chamber has been an advocate for the Azusa business community for many years and an active partner to the City. Creating a business friendly environment is possible through the roles and responsibilities between the City Council, City Hall and Chamber. The City Council provides policy direction that eliminates red tape for business attraction and investment while City Hall ensures processes and procedures are in place to facilitate business expansion. The Chamber’s role is to support City Staff in providing business support services to the business community. As such, City Staff seeks the support from the Chamber in three major areas which include: 1. Legislative support – stay appraised of current issues and bills that affect Azusa small businesses and advocate to the City Council to maintain a favorable business and job climate in the City. 2. Business Support – provide ongoing support to attract, retain and expand Azusa small businesses. 3. Membership – Continue to grow a diverse membership base with a specific focus on businesses that are representative of the City’s commercial areas. As per the attached agreement (Attachment 1), the Azusa Chamber of Commerce agrees to a variety of Services. Also outlined within the agreement is an array of responsibilities which the Chamber is to Azusa Chamber of Commerce Contract September 20, 2021 Page 3 provide related to: Business Success and Advocacy; Community Involvement; and Marketing/Business Development. Examples of these responsibilities include but are not limited to: • Serve as an advocate for the business community and as a City liaison when appropriate; • Assist the City in the attraction, retention and expansion of businesses in Azusa; • Provide Chamber members the avenue to announce their presence in the community through ribbon cutting ceremonies, groundbreakings and networking events; • Provide trainings and workshops in partnership with local universities and colleges or other local organizations • Coordinate a small business recognition program; • Establish a business visitation program; and • Promote events and activities for businesses including but not limited to National Small Business Week, Black Friday, Small Business Saturday, The Great American Takeout and other shop local programming. The Chamber currently has 160 members of which 155 members are Azusa businesses, approximately 97% of their membership. Programing provided by the Chamber Fiscal Year 2020-2021 includes: • Restaurant promotion • Food & Toy Drive • Vision 2021 • Three ribbon cuttings • Fruit & Veggie Fundraiser • Egg Stravaganza • Wine Taste Fundraiser • Bingo Fundraiser • New Member Breakfast – Azusa Walks Presentation Programs and events currently underway by the Chamber include: future groundbreaking and ribbon cuttings, Azusa Golden Days Taste of the Town event, Restaurant Guide and Azusa Walks Pedestrian Master Plan promotion. The duration of the Coronavirus COVID-19 pandemic is uncertain and it is impossible to predict when we will return to normal activities. As a result, certain programs and events that would have taken place under normal circumstances will be adjusted accordingly and or rescheduled for a future date depending on the guidelines provided by the Department of Public Health. Due to COVID-19 impacts, Staff is recommending that the City Council continue the same assistance level as the 2019 -2020 contract. The Chamber and City have agreed to engage in conversation during the term of the agreement to discuss the self-sufficiency plan. This does not guarantee future funding but rather facilitate a conversation and assist the Chamber in achieving self-sufficiency. FISCAL IMPACT: Funding for the agreement between the City of Azusa and the Azusa Chamber of Commerce was included in the Light & Water Department Fiscal Year 2021-2022 budget in account number 31-40-702-935- Azusa Chamber of Commerce Contract September 20, 2021 Page 4 6499. The cost associated with the Fiscal Year 2021-2022 agreement is $44,493. Future funding for the remaining term of the agreement will be requested through the City’s annual budget approval process At this time, the City has no other funding sources to provide financial support to the Chamber. The Agreement provides the use of the Azusa Auditorium a maximum of four (4) times during the term of the agreement and waives the rental fee associated with the use. Use of the Auditorium during normal business hours Monday to Thursday costs $50.00 per hour. Azusa-based non-profit organizations, like the Chamber receive a 25% discount resulting in a $37.50 per hour rental fee. Use of the Auditorium after 4:00 p.m., weekends or holidays costs $100.00 or $75.00 for Azusa non-profit organizations. The City therefore would forgo the rental fee associated with the use of the Auditorium. However, the Chamber would be responsible for all other fees including but not limited to: Staff time, custodian fees, A/V technician Services, Broadcasting fees and video production. If the Chamber would like to use the Auditorium more than four (4) times per year, they will be responsible for all fees including the rental fee. Prepared by: Reviewed and Approved: Carina Campos Matt Marquez Economic Development Specialist Economic and Community Development Director Reviewed and Approved: Sergio Gonzalez City Manager Attachment: 1) Agreement Regarding Chamber of Commerce Funding and Support between the City of Azusa and the Azusa Chamber of Commerce for a three-year term. Attachment 1