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HomeMy WebLinkAbout07 TWO-YEAR FUNDING AGMT FOR BUSINESS DEVELOPMENT & EVENT SERVICES WITH THE TUSTIN CHAMBER OF COMMERCEMEETING DATE: AUGUST 15, 2017 TO: JEFFREY C. PARKER, CITY MANAGER FROM: ECONOMIC DEVELOPMENT DEPARTMENT SUBJECT: TWO-YEAR FUNDING AGREEMENT FOR BUSINESS DEVELOPMENT AND EVENT SERVICES WITH THE TUSTIN CHAMBER OF COMMERCE SUMMARY: City Council approval is requested for the City of Tustin to enter into a Two -Year Funding Agreement for Business Development and Event Services with the Tustin Chamber of Commerce. RECOMMENDATION: It is recommended the City Council take the following actions: 1. Authorize entering into a Two -Year Funding Agreement for Business Development and Event Services with the Tustin Chamber of Commerce; and 2. Authorize the City Manager to execute the attached Two -Year Funding Agreement for Business Development and Event Services, and authorize the City Attorney to make non -substantive changes to the agreement as deemed necessary. FISCAL IMPACT: The $50,000 will support the Chamber of Commerce's efforts to hire an Executive Director and continue to operate city-wide events, including the Second Annual Tustin Hangar Half Marathon and 5K. The $50,000 was included in the Economic Development Department's 2017-2018 Budget. CORRELATION TO THE STRATEGIC PLAN: Funding the Tustin Chamber of Commerce supports Goal A — Economic and Neighborhood Development, enabling business opportunities and enhancing the vibrancy and quality of life in our community. 977579.1 Agenda Report August 15, 2017 Page 2 BACKGROUND: On December 6, 2016, the City Council approved a $50,000 sponsorship of the Tustin Chamber of Commerce's Tustin Hanger Half Marathon and 5K ("Hangar Half'). The sponsorship seeded the Chamber's efforts to operate and market the inaugural race. By all measures, the inaugural race was an outstanding success. The Chamber projected 1,500 half marathon runners and 700 5K runners at the inaugural Hangar Half. While the actual number of half marathon runners was 956, approximately 64% of the goal, there were 2,808 5K runners, four times more than projected. The event generated over $50,000 in revenue for the Chamber, almost double their estimate of $27,000. In addition, runners had the option to select a nonprofit or charity to receive a portion of their registration fee and that resulted in the Chamber giving almost $23,000 to over 150 nonprofits and charities. The Hangar Half is just one of the Chamber's efforts to promote Tustin and tourism in Tustin. For over twenty years, they have hosted the "State of the City", which brings together the community and provides the Mayor with the opportunity to highlight accomplishments and preview the upcoming year. The Chamber has honored a Police Officer of the Month at their monthly breakfast for over thirty years. The Chamber is an active participant with the Tustin Street Fair & Chili Cook -off, Tustin Tiller Days, and other Tustin events. In 2015, the Chamber partnered with the City to hold the first taste of Tustin event called "Totally Tustin". Totally Tustin raised over $20,000 and the Chamber donated the funds to the City for the placement of lights year round in Old Town. In 2016, Totally Tustin generated approximately $15,000, which the Chamber has donated for the commissioning of a bust of Columbus Tustin, the City of Tustin's founder and namesake. The Chamber has been an important ambassador for the City in creating events that appeal to Tustin residents and attract visitors from outside of Tustin. In addition, the Chamber continues to partner with the City in offering workshops for the businesses in our community. The businessmen and businesswomen who have been responsible for all the positive activity generated by the Chamber these last few years are volunteers. In order for the Chamber to grow further and increase its presence in the City and county, the Chamber is seeking to hire an Executive Director. While the. revenue generated from their events provides seed money for the Chamber to hire an Executive Director, the Chamber is still in need for additional funds for the Executive Director and the marketing and operation of the Hangar Half. Staff is recommending the City enter into a two-year funding agreement that provides $50,000 for each year. In order for the Chamber to receive $50,000 in the second year, they will need to meet the first year deliverables outlined on Exhibit "A" of the Funding Agreement. One of the deliverables will require the Executive Director and Chamber to prepare a strategic plan outlining their goals for FY 2018-2019, including their plans to become self-sufficient beyond the Two -Year Funding Agreement. Agenda Report August 15, 2017 Page 3 The Executive Director will provide the leadership necessary for the Chamber to grow in membership, member services, and revenue. Although the Executive Director will not have been on the job for the entire fiscal year, it is anticipated membership will grow by 10% and revenue and event participation will grow by 5%. The Chamber is doing an excellent job of trying to meet the needs of Tustin businesses and creating events that shine a light on Tustin and these funds will further their efforts to serve businesses and promote Tustin. Staff is available to respond to any questions the City Council may have. ohn uchanan Dir or of Economic Development Jerry Cr7V�iecp 7 Deputyr conomic Development Attachments: 1. Two -Year Funding Agreement for Business Development and Event Services 1 ".11RI ILI I **JBIATA401:2 IT, I =ILI ky-11,11 1 -NJ . This Two -Year Funding Agreement for Business Development and Event Services (herein "Agreement"), is made and entered into as of August _, 2017 ("Effective Date"), by and between the CITY OF TUSTIN, a municipal corporation ("City"), and the TUSTIN CHAMBER OF COMMERCE, a non-profit corporation ("Chamber") (collectively, the "Part►es"). WHEREAS, the Chamber has served the Tustin business community for sixty years; and WHEREAS, the Chamber desires to perform certain business development and event services that contribute to the economic vitality of the City; and WHEREAS, the City and the Chamber have a mutual interest in cultivating community involvement, encouraging business alliances, nurturing the growth and development of new and existing businesses, promoting Tustin as a tourism destination, and ensuring that the operation of the Chamber is performed in the most responsible, cost- effective, and efficient manner possible; and WHEREAS, the City desires to strengthen the Chambers efforts to perform business development and event services by providing a grant of funds to the Chamber. NOW, THEREFORE, in consideration of the promises stated herein, the Parties agree as follows: 1. Grant of Funds and Deliverables. The City agrees to pay to Chamber fifty - thousand dollars ($50,000) ("First Distribution"), for the period of August 2017 until August 2018. The purpose of this grant is to assist the Chamber in its hiring of an Executive Director, developing a Strategic Plan, and increasing membership, revenue and event participation as specified in Exhibit "A", attached hereto and incorporated herein by reference ("Project Deliverables"). The City shall make a second payment to the Chamber of fifty -thousand dollars ($50,000) ("Second Distribution"), for the period of August 2018 to August 2019 provided Chamber has complied with the terms of this Agreement and demonstrated to the City's reasonable satisfaction its completion of the Project Deliverables. 2. Method of Payment. The Chamber may submit to City an invoice for payment of the First Distribution at any time subsequent to the Effective Date. The Chamber may submit to City an invoice for payment of the Second Distribution at any time subsequent to the one year anniversary of the Effective Date. The City shall pay Chamber within thirty (30) days following receipt of the Chamber's invoice(s). 1261796.1 3. Schedule of Performance. Completion of the Project Deliverables shall be performed within the time periods identified in Exhibit "A" and to the reasonable satisfaction of the City. 4. Appropriations. This Agreement is subject to and contingent upon funds being appropriated therefore by the Tustin City Council for each fiscal year covered by the Agreement. If such appropriations are not made, this Agreement shall automatically terminate without penalty to the City. , 5. Representative of Chamber. The Chairman of the Chamber is hereby designated as being the principal and representative of the Chamber authorized to act in its behalf with respect to the obligations specified herein and make all decisions in connection therewith. 6. Contract Officer. The Contract Officer shall be Jerry Craig, Deputy Director of Economic Development, unless otherwise designated in writing by the City Manager. It shall be the Chamber's responsibility to keep the Contract Officer fully informed of the progress of the performance of the Project Deliverables and the Chamber shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 7. Reports. The Chamber shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the Project Deliverables required by this Agreement as the Contract Officer shall require. B. Records. The Chamber shall keep such books and records as shall be necessary to properly complete the Project Deliverables required by this Agreement and enable the Contract Officer to evaluate the performance of such deliverables. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit and make records and transcripts from such records. 9. California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Orange, State of California, or any other appropriate court in such county, and Chamber covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 10. Integrated Agreement. This Agreement contains all of the agreements of the Parties and cannot be amended or modified except by written agreement. 11. Amendment. This Agreement may be amended at any time by the mutual consent of the Parties by an instrument in writing. 12. Corporate Authority. The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement on behalf of said 2 1261796.1 Parties and that by so executing this Agreement the Parties are formally bound to the provisions of this Agreement. IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective as of the date first stated above. Dated: APPROVED AS TO FORM: David E. Kendig, City Attorney "City'° CITY OF TUSTIN, a municipal corporation Jeffrey C. Parker City Manager "Chamber' as Bill McInerney Chairman 3 1261796.1 -2018 Deliverables Tustin Chamber 2017 for 2018-2019 City of Tustin Funding Consideration Upon hiring an Executive Director, the Board and the Director will work together in developing a 2018-2019 Strategic Plan. The Strategic Plan will be submitted to the City by at least June 1, 2018 and will be one of the deliverables used in the City Council s consideration of funding the second year of this Funding Agreement. Executive Director 1. Hire an Executive Director by December 31, 2017 a. Prepare a 2018-2019 Tustin Chamber of Commerce Strategic Plan and submit to the City by June 1, 2108. L Identify goals for membership, member services and events. ii. Outline steps toward Chamber self-sufficiency beyond the City of Tustin Funding Agreement iii. Compare 2017-418 Chamber goals to actuals and identify areas of strength and opportunities for growth. IiiIIIIIIIIIIIIIINTOTM-52ffrfi"$ " WA 1. Increase 20172018 Event participation by 5% a. Totally Tustin b. Tustin Hangar Half and 5K c. Wally Karp Memorial Golf Tournament d. State of the City (Since this event occurs in June, final numbers might not be available at the time the City Council considers a second year of -funding, only estimates.) 1261796.1