CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/18/2024
DEPARTMENT: City Manager
SUBJECT:
CONSIDERATION OF CONTRACTUAL SERVICES AGREEMENTS WITH THE
LAKE FOREST CHAMBER OF COMMERCE
RECOMMENDED ACTION(S):
1. Approve a Contractual Services Agreement between the City of Lake Forest and Lake Forest Chamber of Commerce for Business Development and Attraction services in the amount of $42,000 for Fiscal Year 2024-25.
2. Authorize the Mayor to sign, and the City Clerk to attest, the Contractual Services Agreement between the City and the Lake Forest Chamber of Commerce.
EXECUTIVE SUMMARY:
The City of Lake Forest’s (“City”) Contractual Services Agreement (“Current Agreement”) with the Lake Forest Chamber of Commerce (“Chamber”) expires on June 30, 2024. The City’s Business Appreciation Luncheon (“BAL”) Pilot Agreement and Beer and Wine (“B&W”) Garden Pilot Agreement with the Chamber are also set to expire on June 30, 2024. The Current Agreement, BAL Pilot Agreement, and B&W Garden Pilot Agreement require the Chamber to implement specific programs and events to assist the City with coordinating events that support the business community. The Lake Forest Chamber of Commerce Ad-Hoc Committee (“Ad-Hoc Committee”), formed on June 1, 2021 (Attachment 1), met to provide a recommendation for Fiscal Year (“FY”) 2024-25 events and services.
The Chamber desires to continue providing event services to the City in FY 2024-25. Consistent with past practice, the Chamber provided its Annual Report (Attachment 2) and prepared a Business Proposal (“Proposal”) for consideration (Attachment 3). To replace the Current Agreement, which is set to expire at the end of this month, staff recommends the City Council approve the proposed Contractual Services Agreement covering FY 2024-25 (“New Agreement”) (Attachment 4).
The New Agreement integrates the Current Agreement and Pilot Agreements, resulting in $42,000 in compensation to cover the costs of providing the events and services outlined in the Scope of Services. This compensation amount is intended to cover expenses associated with business events and seminars as outlined in the Current Agreement and additional Chamber requests. Staff recommends the City Council approve the New Agreement between the City and the Chamber for Business Development and Attraction Services in the amount of $42,000 for FY 2024-25.
The 2023-2025 Operating Budget includes sufficient funding to cover the costs of the recommended actions.
BACKGROUND:
Since January 2010, the City, on an annual basis, has entered into an agreement with the Chamber for business services. The arrangement has proven effective in reinforcing the City’s provision of a wide range of business events and services.
As part of its contractual relationship with the City, the Chamber plans and implements cosponsored business events and actively promotes Lake Forest businesses.
Ad-Hoc Committee:
On June 1, 2021, the City Council voted to form an Ad-Hoc Committee (Attachment 1). The Ad-Hoc Committee was formed to serve as a liaison to the Chamber of Commerce Board of Directors as well as to review the contractual performance indicators on a periodic basis.
FY 2023-24 Current Agreement and Achievements:
Over the past fourteen years, the City and Chamber have collaborated on business seminars, enhanced marketing, and promotional tools. The City Council awarded the Chamber $27,000 in the Current Agreement for FY 2023-24 to assist the City in its efforts to connect with the business community. Table 1 below outlines services included in the Current Agreement and estimates of participation.
Table 1: FY 2023-24 Current Agreement Performance Summary Event/Service Date Approximate # of
Attendees
Quad Chamber
Business Mixer
August 2, 2023 255
Legislative Luncheon November 9, 2023 185
Event/Service Date Approximate # of
Attendees
New Business Reception January 24, 2024 75
Lake Forest Career
Workshop
February 21, 2024 194
State of the City March 21, 2024 255
Business Seminar &
Expo
April 12, 2024 105
Social Media Workshop June 12, 2024 N/A
Promotion of Online
Seminars & Events
Ongoing N/A
In addition to the events listed in Table 1, the Chamber also hosted its annual Elf Yourself Charity 5k, promoted the City's Shop & Dine Community Gift Card Program, began its Coffee Chat series, and hosted in-person business networking mixers.
FY 2023-24 Pilot Agreements and Achievements
The Ad-Hoc Committee discussed initiating a Pilot Agreement for FY 2023-24 to augment the City’s business recognition services and allow the Chamber the opportunity to fundraise. At the meeting on May 12, 2023, the Ad-Hoc Committee was in favor of enlisting the Chamber to provide the BAL and B&W Gardens at Concerts in the Park. On June 20, 2023, the City Council approved the Current Agreement and two separate Pilot Agreements. The City Council awarded $15,000 for the BAL Pilot Agreement and $6,000 ($2,000 per concert) for the B&W Gardens Pilot Agreement. Table 2 below outlines services included in the FY 2023-24 Pilot Agreements.
Table 2: FY 2023-24 BAL and B&W Garden Pilot Agreement Performance Summary
Event/Service Date Approximate # of
Attendees
Business Appreciation
Luncheon
December 13, 2023 180
Beer and Wine Garden July 22, 2023 150
Beer and Wine Garden August 26, 2023 150
Beer and Wine Garden June 22, 2024 N/A
The Chamber provided staff with the entire list of completed programs and accomplishments, which is attached for the City Council’s review (Attachment 2).
DISCUSSION:
The Chamber assists Economic Development staff with event programming efforts. Starting in 2010, the City’s annual contracts with the Chamber have included event planning and business networking opportunities.
Chamber Proposal for FY 2024-25:
The Chamber desires to continue providing business services to the City in FY 2024-25. Consequently, and consistent with past practice, the Chamber prepared a Proposal for consideration (Attachment 3). The Proposal identifies the Chamber’s priorities and goals for the upcoming FY. The Chamber’s goals include fundraising, augmenting tools and resources that help Lake Forest businesses grow their operations (e.g., leadership and mentorship programs), expanding business education programs, and undertaking activities that contribute to overall economic prosperity in Lake Forest.
The Ad-Hoc Committee met on Friday, May 17, 2024, to discuss the FY 2024-25 Proposal. It concluded that the Chamber met or exceeded its obligations in the current Standard Agreement and provided excellent service to the City and the business community in support of economic development efforts. Additionally, the Ad-Hoc Committee was in favor of integrating the current Pilot Agreements into the proposed FY 2024-25 New Agreement and the additional Chamber requests.
Proposed Contractual Services Agreement:
The Scope of Services in the proposed New Agreement outlines the roles and responsibilities of the Chamber and City in fulfillment of these efforts. The terms largely mirror those specified in the Current Agreement. A breakdown of the services and corresponding City contributions that will remain unchanged from the Current Agreement, is provided in Table 3 below:
Table 3: FY 2024-25 City Contribution for Continued Services Event/Service City Contribution
Quad Chamber Business Mixer $2,100
State of the City $8,500
Legislative Luncheon $3,800
Business Seminar & Expo $4,500
New Business Reception $1,700
Social Media Workshop $1,700
Lake Forest Career Fair $3,700
Coffee Chat $1,000
Event/Service City Contribution
Chamber Board Meetings Quarterly Use of Hickory Conference Room
Elf Yourself 5K Use of Sports Park and City owned
barricades
Total: $27,000
Alongside the continuation of services provided by the Chamber in the current year, there are proposed adjustments to the New Agreement for FY 2024-25.
With the success of the BAL and B&W Gardens, and in the interest of operational efficiency, the proposed New Agreement includes these events and services that were previously included in separate pilot agreements. The proposed New Agreement includes a total not-to-exceed compensation of $42,000, which includes the services summarized in Table 4 below:
Table 4: Proposed FY 2024-25 New Agreement
Event/Service City Contribution
Quad Chamber Business Mixer $2,100
State of the City $8,500
Legislative Luncheon $3,800
Business Seminar & Exp $4,500
New Business Reception $1,700
Social Media Workshop $1,700
Lake Forest Career Fair $3,700
Coffee Chat $1,000
Chamber Board Meetings Quarterly Use of Hickory Conference Room
Beer & Wine Gardens Canopy Rental / Bar Rental
Business Appreciation Luncheon Pilot
Agreement
$15,000
Elf Yourself 5K Approval of Beer Garden
Women in Business Event Use of Community Center Rooms
Total: $42,000
As demonstrated in Table 4, the New Agreement includes additional in-kind contributions from the City. These adjustments entail approving a beer garden at the Elf Yourself 5K, providing canopy rentals at the B&W Gardens, renting equipment for alcohol sales at the annual Tree Lighting, and allowing the utilization of rooms for a proposed Women in Business Event. The cost of rooms and janitorial represent an in-kind donation valued at approximately $18,000.
The Scope of Services and the proposed New Agreement are attached for the City Council’s consideration (Attachment 4).
Conclusion:
The City’s partnership with the Lake Forest Chamber of Commerce provides services that allow the City to reach a greater number of Lake Forest businesses.
The collaborative partnership provides the Lake Forest business community with greater access to seminars, events, and resources. If approved, staff would actively engage with Chamber leadership to ensure the successful implementation of the proposed New Agreement. Staff worked with the City Attorney’s office to prepare the proposed New Agreement for FY 2024-25. At this time, staff recommends the City Council approve the New Agreement with the Chamber.
FISCAL IMPACT:
The proposed New Agreement with the Chamber includes a one-year term with a not-to-exceed compensation amount of $42,000. The 2023-2025 Operating Budget includes sufficient funds to cover the cost of the recommended actions.
ATTACHMENTS:
1. Meeting Minute Excerpt - June 1, 2021, City Council Meeting
2. Lake Forest Chamber of Commerce Annual Report
3. Lake Forest Chamber of Commerce Business Development Proposal
4. Lake Forest Chamber of Commerce Contractual Services Agreement FY 2023-24
Initiated By: Hope Hairrell, Management Assistant
Submitted By: Keith Neves, Assistant City Manager
Approved By: Debra Rose, City Manager