CITY COUNCIL STAFF REPORT
Meeting: March 15, 2022
Subject
Consider report on Chamber of Commerce services and payment included in the Accounts Payable report ending December 20, 2021 and approval of Accounts Payable report
Recommended Action
Receive report and adopt Resolution No. 22-015 Accepting Accounts Payable for the period ending December 20, 2021 Discussion
On February 1, 2022, City Council directed staff to provide a summary of the services that the Cupertino Chamber of Commerce (Chamber) provides to the City and its and businesses in exchange for the $16,000 annual payment. The City has provided this $16,000 annual payment to the Chamber for many years, with records as far back as 2008. In addition, the City pays a $1,500 membership fee to the Chamber.
A letter from the Chamber dated March 1, 2022 (Attachment A) is included with this report that outlines the services they have provided in exchange for the $16,000 from the City. The letter also highlights how those activities have been adjusted based on the changing economic conditions over the years, and most recently the pandemic.
Historically, the Chamber has been the lead outreach and service delivery conduit between the City and Cupertino businesses. With close to 300 members strong, the Chamber represents the logical partner in ensuring that key information and critical services reach the local business audience. In addition, the Chamber has served as an important feedback mechanism to understand business constituents’ needs and concerns as new policies, programs, and changes in economic conditions develop. Although many in-person activities and events were scaled back due to the pandemic, Attachment A includes notable examples of Chamber activities and services.
Chamber Relationships in Other Cities
The following table shows the partnership other cities in Santa Clara County currently have in place with their Chambers. All cities surveyed have partnerships with their Chambers. Only 4 out of the 10 cities surveyed have a formal agreement in place. Some cities have contracted with different chambers for one-time agreements for specific projects. Funds provided to the chambers in various cities have ranged from $295 to $1,461,601 annually.
City
Chamber Partnership (Yes/No)
Payment Amount to Chamber (annually)
Type of Agreement
Additional Details
Campbell
Yes
$295 membership fee
No formal agreement
Annual membership
Gilroy
Yes
$200,000
Formal agreement in place until FY 19-20
Collaborated on the Welcome Center. City paid the Chamber $200,000 annually for the Economic Development Corporation function until FY 19-20.
Gilroy
Yes
$15,000-$20,000
No formal agreement
The Chamber facilitated business grants for the City and were paid 15% of each approved application.
Los Gatos
Yes
$60,000
Formal agreement
Chamber operates the Visitor Center as well as Leadership Los Gatos Milpitas
Yes
$1,000 membership fee
No formal agreement
Chamber partners on economic development projects. Chamber representative serves on the Economic Development Trade Commission Morgan Hill
Yes
$550 membership fee
No formal agreement
Annual membership plus support for events and initiatives Mountain View
Yes
$10,000 (for Tech Showcase event)
Lease agreement
Chamber leases City-owned building for nominal rent. Visitor Center is also operated by the Chamber, City covers the rent San Jose (these are one-time agreements, unless stated otherwise) Yes
$95,000 in 2009
Formal agreement with the Hispanic Chamber of Commerce in 2009 Chamber to help low to moderate income entrepreneurs in the City through programming and integration of newly formed businesses with Business Owner Place online platform $50,000 in 2014
Formal agreement to San Jose Silicon Valley Chamber of Commerce in 2014 Chamber to develop a Business Development Strategy to support job growth, business retention, expansion, attraction, and promote City’s positive attributes $76,000 in 2017
Formal agreements with the Hispanic Chamber ($40,000) and Black Chamber (36,000) in 2017.
Ethnic Chambers to provide technical assistance to small and ethnic businesses. City is currently negotiating a new agreement with the Hispanic Chamber for FY 22-23 $50,000 in 2018
Formal agreement with San Jose Silicon Valley Chamber in 2018 Chamber to provide services to enhance the environment for small business community, branding the City, workforce readiness of residents and meet with visiting international business delegations $100,000 in 2020
Formal agreement with Black Chamber of Commerce ($35,000) and Hispanic Chamber of Commerce ($65,000) in 2020 Chamber to raise consciousness to buy local and focus on supporting local businesses impacted by COVID-19 and facilitating small businesses reopening Santa Clara
Yes
$1,461,601
Formal agreement (one-time) with Chamber in 2017
Chamber to provide Convention and Visitors Bureau Services Saratoga
Yes
$17,137 membership fee in 2022
Formal agreement
Chamber to provide services for walk-in, telephone, email, or fax requests on tourism & information materials, city information & materials, quarterly report Sunnyvale
Yes
$1,000 membership fee
No formal agreement
Annual membership
Next Steps
Staff has initiated discussions with the Chamber to formalize this long-standing working relationship through a Memorandum of Understanding (MOU) with a clearly defined scope of work, related deliverables, and financial commitments.
It is expected that much of the ongoing work will support the City’s Economic Development Division with their current City Work Program priorities.
Sustainability Impact
No sustainability impact.
Fiscal Impact
There is no fiscal impact from receiving this report. The first of two $8,000 payments for this year has been made to the Chamber and is reflected in the Accounts Payable Report for the period ending December 20, 2021. The second payment will be made once an agreed upon MOU is established. The funds have already been budgeted so no further appropriations are needed at this time. Accepting the Accounts Payable for the period ending in December 20, 2021 will meet requirements set forth for the City Treasurer for check issuance (per Resolution No. 5939). _____________________________________
Prepared by: Tina Kapoor, Economic Development Manager Reviewed by: Chris Jensen, City Attorney
Dianne Thompson, Assistant City Manager
Katy Nomura, Deputy City Manager
Approved for Submission by: Jim Throop, City Manager
Attachments:
A – Letter from Chamber dated March 1, 2022
B – Draft Resolution
C – AP Report (Including Chamber Contract Payment)
http://weblink.losgatosca.gov/WebLink/0/edoc/1261417/05%20Attachment%201%20Exhibit%20A%20-%20Los%20Gatos%20Chamber%20of%20Commerce%20Agreement.pdf https://records.sanjoseca.gov/Contracts/CON6335630.PDF
https://records.sanjoseca.gov/Contracts/CON6401800.PDF
https://www.sanjoseca.gov/home/showpublisheddocument/53375/637171087420500000 https://records.sanjoseca.gov/Contracts/CON6631240.PDF
https://records.sanjoseca.gov/Contracts/CON666294-001.pdf https://www.santaclaraca.gov/home/showpublisheddocument/58627/636675074112370000 https://saratoga.granicus.com/MetaViewer.php?view_id=9&clip_id=154&meta_id=8484