REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Jennifer Villasenor, Acting Director of Community Development
PREPARED BY: Kriss Casanova, Economic Development Manager
Subject:
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Approve and authorize execution of a Memorandum of Understanding between the City of Huntington Beach and the Huntington Beach Chamber of Commerce to formally establish a partnership that defines the roles and responsibilities of both parties
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Statement of Issue:
The Huntington Beach Chamber of Commerce (Chamber) was established in 1904 as a non-profit, voluntary association of local businesses with a common goal to strengthen and grow the business community by connecting, supporting, promoting and advocating for local businesses. As a leading proponent for Huntington Beach business interests, the Chamber currently has more than 400 members.
The Chamber is one of the City of Huntington Beach’s (City) primary economic development partners, and its mission is consistent with and complementary to the City Council’s Strategic Plan goals of ensuring business retention, local investments, and job growth in Huntington Beach.
The City has previously supported the Chamber by partnering on annual events such as the State of the City and the Mayor’s Breakfast, and occasionally waiving room rental fees for Chamber events at City facilities. Currently, the exchange of support offered by both parties is not clearly defined with regards to the amount of funding, both monetary and in-kind, to be provided each year to promote local economic and business development. The intent of the proposed Memorandum of Understanding (MOU) (Attachment 1) is to formally establish a partnership that defines the roles and responsibilities of both parties and to provide certainty and predictability in terms of the amount of funding to be provided by both parties each year.
Financial Impact:
Sufficient funds for the annual fees associated with Chamber membership ($2,500) are available in the Fiscal Year 2023/24 Operating Budget for the Community Development Department, Economic Development Division’s Business Unit 10080101.69505. In addition, City facility room rental fees to facilitate business or economic development events will be waived in a total annual amount not to exceed $9,800 per year.
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute a Memorandum of Understanding Between the City of Huntington Beach and the Huntington Beach Chamber of Commerce.
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Alternative Action(s):
Do not approve the recommended action, and direct staff accordingly.
Analysis:
The Chamber provides valuable resources and services to Huntington Beach businesses that include outreach, support, capacity building, networking, advocacy, and professional development. The organization is financed through membership dues and revenue generated by programs and events. A voluntary twenty-person Board of Directors governs the organization, which is supported by one full-time and three part-time staff members, and 14 volunteer ambassadors who help to increase and retain members and ensure quality membership benefits.
Municipal funding amounts for local chambers vary by jurisdiction and can include monetary and/or in-kind contributions. The MOU is proposed in response to the City’s previous support of the Chamber and the need to provide certainty and predictability in terms of the amount of funding, both monetary and in-kind, to be provided by both parties each year. The terms of the proposed MOU include the City annually contributing $2,500 towards Chamber membership dues and to provide an in-kind trade for the use of City facilities for Chamber events in exchange for the benefits associated with an Executive Level Membership. Chamber membership demonstrates the City’s commitment to support and enhance the business environment and provides sponsor recognition for events previously paid for and attended by City representatives without such recognition. A summary of the annual obligations of both the Chamber and the City is listed below.
Obligations of the Chamber:
• The Chamber will continue to deliver pillars of Chamber service (Resources, Connection, Representation, Lobbying & Advocacy, Professional Development, and Collaboration) through networking, servicing its existing membership base, representing and building capacity for local businesses, and providing business resources including skills enhancement.
• The Chamber will provide the City with Executive Level Membership benefits which includes at least $9,800 in sponsorship value to the following events (or similar):
• Title Sponsorship (Value $3,500) for the Mayor’s Breakfast Event
• Title Sponsorship (Value $2,750) for the State of the City Event
• Silver Sponsorship (Value $1,250) for the State of the County & Economic Outlook Event
• Silver Sponsorship (Value $1,150) for the Annual Gala
• Four (4) Sunset Mixer tickets (Value $100)
• Bronze Sponsorship (Value $350) for the Best of HB
• 50% off, on an annual basis, student tuition for the Robert Mayer Leadership Academy (2023 Cost is $1400 - Value $700). Each additional student will receive a 20% discount.
• Attendance at all After-5 Mixer Events at no cost, 3 passes to AM Connect Events, and 1 pass to a B2B Event
• The Chamber will provide invitations to all appropriate Chamber functions.
• The Chamber will promote City programs and initiatives aimed at assisting the business community, including marketing the City’s business website (www.hbbiz.com <http://www.hbbiz.com/>).
• The Chamber will maintain and continue to improve the image of the Chamber within the City and surrounding areas.
• The Chamber will host and coordinate with the City the Annual State of the City Event, and invite 20-30 youth leaders at no cost.
• The Chamber will endeavor to implement actions related to agreed upon strategic initiatives.
Obligations of the City:
• The City will pay $2,500 annually for Executive Level Membership.
• The City will provide up to $9,800 of in-kind trade (room rental fee waivers) for up to seven Chamber events and programs at City facilities.
• The City will provide monthly lists of new businesses obtaining a City business license.
• The City will provide space for a Chamber brochure at the City’s business license counter.
• The City will provide, to the best of its ability, a City official and/or Council Member for updates at AM Connects and ribbon cuttings.
• The City will consider Chamber participation in City events as a City partner.
• The City will provide Economic Development staff to attend monthly Chamber board meetings.
The term of the proposed MOU would be effective upon City Council approval and terminate on December 31, 2025. The upcoming State of the City event on November 30, 2023, would be included for this year. The MOU has an option to renew for an additional one-year term upon written mutual consent and can be terminated early by providing at least sixty days’ notice by either party. To support the Chamber’s valuable services and the City’s economic efforts, staff recommends City Council approve and authorize execution of the proposed MOU.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Goal 1 - Economic Development, Strategy A - Develop an updated economic development strategy to ensure business retention, local investments and job growth.The Chamber and the City have mutual interests of enhancing the HB economy, ensuring business retention, local investments, and job growth. Through a MOU, City and Chamber agree to establish a joint working relationship for the purposes of strengthening the local business community and supporting such goals.
Attachment(s):
1. Memorandum of Understanding between the City of Huntington Beach and the Huntington Beach Chamber of Commerce
2. Presentation