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HomeMy WebLinkAbout13 - NB-2 - Chamber of Commerce Membership Drive As - 11/7/2017CITY COUNCIL AGENDA REPORT MEETING DATE: NOVEMBER 7, 2017 ITEM NUMBER: NB -2 SUBJECT: CHAMBER OF COMMERCE MEMBERSHIP DRIVE ASSISTANCE DATE: OCTOBER 30, 2017 FROM: CITY MANAGER'S OFFICE/ADMINISTRATION PRESENTATION BY: DANIEL K. BAKER, ASSISTANT TO THE CITY MANAGER FOR FURTHER INFORMATION CONTACT: Dan Baker @ (714) 754-5156 RECOMMENDATION: It is recommended that the City Council: Authorize the City Manager to sign the attached Memorandum of Understanding (Attachment 1) that authorizes the Chamber of Commerce to utilize the City's existing business license application process (both hardcopy and online) to facilitate a yearlong chamber membership drive. 2. Approve the attached insert that will be distributed in all new business license certificate letters (approximately 160 per month). BACKGROUND/ANALYSIS: The City of Costa Mesa and the Costa Mesa Chamber of Commerce have been economic development partners for many years. Each has been a vocal supporter of the other and have partnered together on a number of events and campaigns to support local businesses and support economic stability. In 2016 newly hired chamber CEO, Eileen Benjamin, approached City administration seeking to make the partnership even stronger. Over the last two years the City has been a platinum sponsor of the Chamber and has partnered with the chamber to assist in promoting the City and local businesses. The chamber has been supportive of many Costa Mesa businesses both large and small to help them succeed, create jobs and is a part of the positive business environment in Costa Mesa. City Council and staff are routinely present to celebrate Chamber sponsored ribbon cuttings as well as provide assistance to the Chamber hosted Mayor's Celebration event. A highlight of the partnership is the Chamber's new mobile phone application (App). The mobile App allows for participating Chamber partners to customize their business advertising directly to the App. In addition, the App also provides the public with up-to-date city-wide current events. To help promote this, if approved, the City will produce a color insert (attachment 2) and will place it inside all new recipient business license letters. The latest Chamber/City venture will be a yearlong campaign to increase chamber memberships. After discussion, it was agreed that the addition of the chamber membership application to the City's existing business license process would be the most impactful way to disseminate and promote Chamber participation while making it easy for businesses to make payment for both their renewal of their business license and Chamber membership. The City currently has approximately 12,000 active business license holders with approximate 1,000 renewals going out monthly. In contrast, the Chamber has just over 600 members. The process of collection and distribution of the funds collected from the membership drive would be in a similar manner that the City collects and distributes funds for Travel Costa Mesa with an estimated greater number of transactions. Upon receipt of a chamber membership payment, funds will be deposited into a specific account. A monthly check would then be distributed back to the Chamber with the City retaining all business license tax funds and the Chamber receiving all membership funds. Credit card transaction fees and a small handling fee will be deducted before the monthly distribution of funds to ensure cost neutrality to the City. FISCAL REVIEW: The provisions of the MOU can be accomplished with existing staff. Estimated cost per business license ranges from $14-$22, plus recovery of the City's credit card fee of about 5%. LEGAL REVIEW: Legal counsel has reviewed the documents and approved them as to form. CONCLUSION: A strong relationship with the Costa Mesa Chamber of Commerce is necessary to ensure businesses are represented and supported. It is the City's goal to continue to build upon the success of Ms. Benjamin and to assist the Chamber to reach its full potential. Utilizing the City's existing business license process to promote chamber membership helps support this goal. DANIEL K. BAKER Assistant to the CEO ATTACHMENTS: 1. Memorandum of Understandi 2. Chamber App Insert 2 Attachment 1 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF COSTA MESA AND THE COSTA MESA CHAMBER OF COMMERCE THIS MEMORANDUM OF UNDERSTANDING ("Agreement") is made and entered into this 7th day of November, 2017, by and between the CITY OF COSTA MESA, a municipal corporation ("City"), and the COSTA MESA CHAMBER OF COMMERCE, a California nonprofit corporation ("Chamber"). RECITALS A. City is a municipal organization duly organized and validly existing under the Constitution and the laws of the State of California. B. Chamber is a nonprofit organization with the mission of being the leading proponent for the interests of Costa Mesa businesses. C. Chamber is one of City's Economic Development partners. D. Chamber desires to utilize the services of City in connection with membership applications, as more fully described herein. E. City and Chamber desire to set forth their respective rights, duties and liabilities in connection with the services to be performed. NOW, THEREFORE, for and in consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: CITY'S RIGHTS AND DUTIES. 1.1 City has sole control over the operation, maintenance and content of City's website. 1.2 City agrees to add to City's online business license portal a link to enable businesses to sign up for Chamber membership through City's website. Notwithstanding the foregoing, City may, in its sole discretion, place the membership application elsewhere on City's website. 1.3 City agrees to collect Chamber membership applications submitted through City's website and provide such applications to Chamber. City and Chamber shall mutually agree to the method and frequency for City's providing such applications to Chamber. 1.4 City agrees to collect Chamber membership dues, in the amount specified by Chamber, from businesses that sign up for Chamber membership through City's website. City shall remit to Chamber the amount of the membership dues collected through City's website, less City's compensation as set forth herein, to the Chamber on a monthly basis. 2. CHAMBER'S RIGHTS AND DUTIES. 2.1 Chamber shall provide to City any information, including but not limited to, the Chamber membership application and the amount of membership dues, required to enable businesses to sign up for Chamber membership through City's website. 2.2 Chamber shall provide to City any such assistance as may reasonably be requested by City to carry out this Agreement. 2.3 Chamber may provide recommendations relating to the inclusion of its membership application on City's website. However, Chamber understands and agrees that City has sole control and discretion over the content of City's website. 3. TERM. The term of this Agreement shall commence on the Effective Date and continue for a period of one (1) year, ending on November 6, 2018, unless previously terminated as provided herein. This Agreement may be extended by two (2) additional one (1) year periods upon mutual written agreement of the parties. 4. COMPENSATION. In consideration for City's services, City shall retain ten percent (10%) of the membership dues collected in connection with membership applications submitted through City's website ("City's Fee"). City will provide to Chamber a monthly record detailing the amount of membership dues collected less City's Fee. 5. TERMINATION. Either party may terminate this Agreement at any time by providing written notice to the other party. Such termination shall be effective upon receipt of such notice. 6. NOTICES. Any notices, documents, correspondence or other communications concerning this Agreement may be provided by personal delivery or mail and shall be addressed as set forth below. Such communication shall be deemed served or delivered: (a) at the time of delivery if such communication is sent by personal delivery, and (b) 48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. IF TO CONSULTANT: Costa Mesa Chamber of Commerce 1700 Adams Ave., Ste. 101 Costa Mesa, CA 92626 Tel: (714) 885-9090 Attn: Eileen Benjamin 7. NO GUARANTEE. IF TO CITY: City of Costa Mesa 77 Fair Drive Costa Mesa, CA 92626 Tel: (714) 754-5156 Attn: Dan Baker City makes no guarantees relating to this Agreement, the availability and/or operability of its website, and/or as to any results of the services to be provided hereunder. 8. INDEMNIFICATION AND HOLD HARMLESS. Chamber agrees to defend, indemnify, and hold free and harmless the City, its elected officials, officers, agents, employees, and volunteers, at Chamber's sole expense, from and against any and all claims, actions, suits or other legal proceedings brought against the City, its elected officials, officers, agents and employees arising in connection with this Agreement. is 9. AUTHORITY TO ENTER INTO AGREEMENT. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement. 10. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including any exhibits to this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the dates written below. CHAMBER Signature Name and Title CITY OF COSTA MESA City Manager ATTEST: City Clerk APPROVED AS TO FORM: City Attorney 3 Date: Date: Date: Attachment 2 On behalf of the Costa Mesa City Council, congratulations on the opening of your new business and extend a heartfelt welcome to the City of Costa Mesa: The City of the Arts! We are truly appreciative of yourchoasing Costa Mesa in which to do business and wish you every success in your enterprise. Please check out our Costa Mesa connect app and City website fo r resou rces, Council and Community programs, and other service support for your business. We encourage you to review the benefits of membership in the Costa Mesa City Chamber of Commerce and hope that you will became a member. The Chamber of Commerce has been operating for 50 years and is dedicated to being the leading proponent for the interests of local businesses, including the prosperity of its individual members, the vitality of the ma rketpla ce a n d the quality of its community life. Becoming a member of the Chamber is easy and annual membership includes numerous benefits to assist your business flourish and be as successful as possible. More information is available on the back! Further information can be found at the Chamber of Commerce website, www.costamesachamber.COm. Our Council and City staff are always available if you have any concerns, or for a tour of your business. Congratulations, and thank you again for choosing Costa Mesa: The City of the Arts! Sincerely, C'rty of Costa Mesa City Council Costa Mesa a a � Q a a a o a fi o a m R L a rm a On behalf of the Costa Mesa City Council, congratulations on the opening of your new business and extend a heartfelt welcome to the City of Costa Mesa: The City of the Arts! We are truly appreciative of yourchoasing Costa Mesa in which to do business and wish you every success in your enterprise. Please check out our Costa Mesa connect app and City website fo r resou rces, Council and Community programs, and other service support for your business. We encourage you to review the benefits of membership in the Costa Mesa City Chamber of Commerce and hope that you will became a member. The Chamber of Commerce has been operating for 50 years and is dedicated to being the leading proponent for the interests of local businesses, including the prosperity of its individual members, the vitality of the ma rketpla ce a n d the quality of its community life. Becoming a member of the Chamber is easy and annual membership includes numerous benefits to assist your business flourish and be as successful as possible. More information is available on the back! Further information can be found at the Chamber of Commerce website, www.costamesachamber.COm. Our Council and City staff are always available if you have any concerns, or for a tour of your business. Congratulations, and thank you again for choosing Costa Mesa: The City of the Arts! Sincerely, C'rty of Costa Mesa City Council Costa Mesa