CITY OF MENIFEE
SUBJECT: Agreement with the Menifee Valley Chamber for Business Engagement and Economic Development Initiatives
MEETING DATE: June 17, 2026
TO: Mayor and City Council
PREPARED BY: Kristina Hernandez, Management Analyst
REVIEWED BY: Kayla Charters, Economic Development Director APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Approve and authorize the City Manager to execute a Professional Services Agreement (PSA) with the Menifee Valley Chamber of Commerce for business engagement and economic development initiatives for a three-year term in a not-to-exceed amount of $100,000 per fiscal year and a total not-to-exceed amount of $300,000 through June 30, 2029.
DISCUSSION
Since incorporation, the City of Menifee (City) and the Menifee Valley Chamber of Commerce (Chamber) have collaborated on initiatives supporting the local business community, economic vitality, community engagement, and business retention efforts. In 2013, the City Council approved an initial Memorandum of Understanding (MOU) with the Chamber to enhance outreach efforts with local businesses and coordinate community programming and events. Over time, the relationship evolved to support broader economic development initiatives and business engagement activities throughout the City.
The City and Chamber continue to share a united goal of supporting Menifee’s growing business community and fostering a strong and diverse local economy. The Chamber serves an important role in connecting businesses with resources, promoting local commerce, facilitating networking opportunities, and supporting community-focused events and programming that contribute to Menifee’s economic vitality and sense of place. Over the past several years, the Chamber has worked diligently to expand its programming, strengthen business engagement, and continue evolving into a premier organization serving the Menifee business community.
The current agreement between the City and the Chamber is set to expire on December 30, 2026.
Staff is recommending approval of a PSA that would supersede the remaining term of the existing
City of Menifee Staff Report
Menifee Valley Chamber of Commerce MOU
June 17, 2026
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agreement and transition the partnership to a revised contract-for-services model beginning in Fiscal Year 2026/2027. Aligning the agreement term with the City’s fiscal year cycle will improve budgeting consistency, annual program coordination, and long-term financial planning for both organizations.
The proposed agreement establishes a three-year term covering Fiscal Years 2026/2027 through 2028/2029. Under the revised structure, the agreement shifts from a sponsorship-based model to a performance-based services agreement with clearly defined programs, events, deliverables, and expectations.
The agreement also incorporates accountability measures that allow the City to reduce compensation for any tasks or programs identified in the attached “Exhibit A” that are not completed by the Chamber. While individual tasks are assigned corresponding compensation amounts, payments will be distributed evenly over the term of the agreement.
The proposed agreement continues several existing programs and community events currently facilitated by the Chamber that have become important components of Menifee’s business and community engagement efforts, while also introducing new programming intended to further strengthen the local business environment and community engagement opportunities. Table 1 below outlines the continued and new programming included in the agreement, including future initiatives planned for Years 2 and 3.
TABLE 1 – AGREEMENT PROGRAMMING AND INITIATIVES
Existing Programming Proposed Programming
Monthly Business Retention Site Visits Enhanced Shop Local Programming Annual Menifee KEEP Business Walk Collaborative Business Forum Ribbon Cuttings and Grand Opening Ceremonies Leadership Menifee Valley Program Annual Commercial Real Estate Brokers
Appreciation Luncheon
Targeted Business Attraction Event
Annual State of the City Event Young Professionals Networking Event (Year 2)
Annual Chamber Golf Tournament Sponsorship Explore Menifee Tourism Initiative (Year 3) Annual Business Awards Gala Sponsorship
These programs provide ongoing opportunities to support local businesses, strengthen community partnerships, promote investment in Menifee, and enhance engagement with the business community.
The proposed agreement also revises the governance structure related to City participation on the Chamber Board of Directors. The existing designated non-voting Board seat will be eliminated, and any City representation on the Board will instead occur through the Chamber’s standard election process in accordance with Chamber bylaws. This revised structure aligns City participation with the Chamber’s established governance framework.
Consistent with the shared objective of fostering a financially sustainable and self-sufficient Chamber organization, the agreement also requires the Chamber to prepare and present an updated long-term sustainability plan prior to the conclusion of the agreement term. This update City of Menifee Staff Report
Menifee Valley Chamber of Commerce MOU
June 17, 2026
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will build upon the Chamber’s existing sustainability plan and further outline strategies to support long-term operational and programmatic stability beyond the term of the agreement.
This structure allows the City and Chamber to continue working collaboratively on programs and initiatives that support local businesses, encourage community participation, enhance Menifee’s business climate, and promote economic vitality throughout the community.
STRATEGIC PLAN OBJECTIVE
The proposed agreement supports the City’s goal of maintaining a diverse and thriving local economy through business engagement, community partnerships, promotional programming, and initiatives designed to support Menifee businesses and enhance economic vitality.
FISCAL IMPACT
The fiscal impact of the proposed agreement with the Menifee Valley Chamber of Commerce is $100,000 annually over a three-year term for a total amount not to exceed $300,000. Funding has been included in Economic Development Department budget for FY 2026/27 within the General Fund under Professional Services (1100-ECD-652800). Funding for future fiscal years will be incorporated into the respective annual operating budgets. No additional budget appropriation is required for this action.
ATTACHMENTS
1. Agreement
2. Exhibit A