CITY COUNCIL STAFF REPORT
Meeting: June 6, 2023
Subject
Consider executing an Agreement between the City of Cupertino (City) and the Cupertino Chamber of Commerce (Chamber).
Recommended Action
Authorize the City Manager to execute an Agreement between the City of Cupertino and the Cupertino Chamber of Commerce for up to five years, at an annual amount not-to-exceed $52,000.
Background
The City has had a long tradition of working with the Chamber in serving local business. These efforts have never been officially recognized. With new leadership at the Chamber and the City Administration, there is an opportunity to review and solidify a partnership between the two organizations through an agreement that better addresses both organizations’ contributions to and expectations of the partnership.
The intent of this agreement is to clearly lay out forward looking performance commitments from both organizations to ensure clear understandings are in place. The lack of structure around, and benefits of past interactions with the Chamber have been reviewed and discussed by the Council over time. For a summary the Council may refer to Item 19 from the June 21, 2022 City Council Meeting.
Reasons for Recommendation
Significant economic realignments and events including the recent COVID-19 pandemic have underscored the need for local governments to adopt a coordinated and comprehensive approach to supporting businesses through various challenges. Working with partners who share its mission and values can greatly enhance these efforts.
The Chamber is a business advocacy organization dedicated to fostering economic development in Cupertino by serving and representing the collective interests of the local business community. The Chamber's mission aligns with the City’s goal to create an environment in which businesses can prosper.
The Chamber offers a wide range of services and programs designed to support local businesses. These include networking opportunities, educational workshops, one-on-one technical assistance, and mentorship programs. They also present business owners in a positive light to the community through marketing campaigns. These efforts help businesses gain access to opportunities to make connections leading to new customers and partnerships.
In light of the post-pandemic evolving economic dynamic and increased need for economic development, staff will be refocusing on the core functions of economic development and relying on the Chamber to service local business audiences. Examples of labor division between City staff and the Chamber are as follows: City staff will primarily focus on business attraction and retention strategies, market trends analysis, policy development and implementation, and development and permit facilitation. The Chamber will complement these efforts in performing needed outreach to property owners and tenants to fill vacant spaces and engaging with investors and developers to encourage revenue-generating projects.
The Agreement is intended to foster collaboration between the City and local businesses by facilitating additional communication channels, enhancing the exchange of information, ideas, and best practices. This collaboration will deepen the understanding of the needs and challenges faced by businesses, enabling the City to develop targeted initiatives and policies that support their growth.
Summary of Agreement Scope
The scope of work as detailed in Attachment A presents the roles and responsibilities of both the City and the Chamber, ensuring clarity and transparency. It also defines specific areas of collaboration, such as economic development initiatives, business support programs, joint marketing efforts, and stakeholder engagement.
Specifically, services to be provided by the Chamber would consist of the following:
Technical Assistance – The Chamber will provide information to existing and prospective businesses on how to open, operate, and grow their business. In addition, the Chamber will host technical assistance seminars, coordinate ribbon cuttings and grand openings, and support City programs and initiatives such as the Cupertino Business Outreach Program visits and surveys.
Marketing and Promotion – The Chamber will develop and maintain a Cupertino Dashboard, market and promote City-organized business events, support Small Business Saturday and other marketing campaigns, and conduct outreach and education regarding policy changes to all businesses.
Events & Meetings – The Chamber will provide opportunities for City representatives to attend networking events and meetings, host professional women’s luncheons, and organize broker breakfasts.
Other – Chamber membership for the City (currently set at $2,500) will be included as part of the agreement.
Staff is proposing an Agreement for an amount not to exceed $52,000 ($50/hour x 1,040 hours/year). The term of the contract would be for five years with an initial term of one year, and options to renew for up to four additional years. The options for renewal allow the City to continue the agreement from year to year if the Chamber performance continues to benefit the City.
As further described in Attachment A, the Chamber would be responsible for providing to the City a variety of quarterly updates for services rendered to both Chamber members and non-members.
The agreement would be administered and monitored by the Economic Development Division of the City Manager’s Office.
Sustainability Impact
No sustainability impact.
Fiscal Impact
Funding for this Agreement is proposed as part of the Economic Development Division Base Budget as part of the FY 23-24 Proposed Budget.
California Environmental Quality Act
Not applicable.
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Prepared by: Tina Kapoor, Deputy City Manager
Reviewed by: Chris Jensen, City Attorney
Matt Morley, Assistant City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:
A – Scope of Work
B – Pay Rate Comparison by Cupertino Chamber of Commerce