HomeMy WebLinkAbout12 FUNDING AGREEMENT FOR COVID-19 ASSISTANCE WITH THE TUSTIN CHAMBERDocuSign Envelope ID: E73BD1 31 -133E7-41 C2-8131 0-02CC97182709
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AGENDA REPORT
MEETING DATE
TO
FROM
MARCH 2, 2021
MATTHEW S. WEST, CITY MANAGER
ECONOMIC DEVELOPMENT DEPARTMENT
12
Agenda Item
Reviewed: am --
W
City Manager
Finance Director N/A
SUBJECT: FUNDING AGREEMENT FOR COVID-19 ASSISTANCE AND
BUSINESS PROMOTION SERVICES WITH THE TUSTIN
CHAMBER OF COMMERCE
SUMMARY:
Request for authorization to execute a Funding Agreement for COVID-19 Assistance and
Business Promotion Services with the Tustin Chamber of Commerce, including sponsorship of
the 2021 Tustin Food & Wine Festival.
RECOMMENDATION:
Authorize the City Manager to execute a Funding Agreement for COVID-19 Assistance and
Business Promotion Services with the Tustin Chamber of Commerce to:
1) Provide economic development funding to the Chamber in the amount of $44,500;
2) Waive the facility rental fees for the Chamber's use of the South Hangar for the 2021
Tustin Food & Wine Festival; and
3) Agree to a one-time waiver of the City's share of profits from the 2021 Tustin Food &
Wine Festival,
and authorize the City Attorney to make non -substantive changes to the agreement as deemed
necessary.
FISCAL IMPACT:
The City will provide $44,500 in funds to the Chamber for COVID-19 assistance and economic
development activities. In sponsoring the 2021 Tustin Food & Wine Festival, the City will incur
an expense of approximately $10,000 in waiving facility rental fees, permit fees and City staff
time.
CORRELATION TO THE STRATEGIC PLAN:
Goal A — Economic and Neighborhood Development
BACKGROUND:
On June 2, 2020, in response to the economic impact associated with the COVID-19 outbreak,
the City Council authorized the $3,000,000 Tustin "COVID-19 Aid, Relief, and Economic
Security" (CARES) Program to provide emergency aid to small businesses and
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Agenda Report
March 2, 2021
Page 2
individuals/families in need of food and/or business/housing/rental assistance. In October 2020,
the City launched a $250,000 Non-profit Emergency Grant Program, which provided funding to
Non -profits needing financial assistance in overcoming the temporary loss of revenue due to
COVID-19. The Tustin Chamber of Commerce (Chamber) has been impacted by the public
health emergency but was ineligible under previous guidelines for assistance in either the Small
Business Emergency Grant Program or the Non-profit Emergency Grant program. As a result,
staff is recommending the City enter into a Funding Agreement with the Chamber to provide
$15,000 to assist the Chamber in overcoming the impacts incurred as a result of COVID-19 and
$29,500 to fund the following economic development efforts that will assist the City in
addressing the COVID-19 impacts to local small businesses:
1) Launch a "Shop Tustin" program;
2) Once public gathering is allowed, initiate a "Reopen Tustin" campaign at various
locations throughout Tustin; and
3) Once public gathering is allowed, hold the 2021 Tustin Food and Wine Festival
The Tustin Food and Wine Festival (previously "Totally Tustin") was established in 2015 by the
Chamber to promote local restaurants while raising funds for community projects. In 2018, the
event moved to the South Hangar at Tustin Legacy and grew, with attendance reaching
approximately 1,000 people. The City has been one of the title sponsors or a co-sponsor of the
event. Profits from previous events have been split between the Chamber and City and have
gone to projects such as Old Town Tustin lights, the bust of Columbus Tustin located at the
corner of Main and EI Camino, and two City -sponsored Marine squadrons at Camp Pendleton.
The profit sharing between the City and Chamber has been a unique situation that is not typical
to other events or uses in the South Hangar. Staff has not recommended waiving fees and staff
time for other events in the South Hangar since the City has not participated in profit sharing. In
consideration of COVID-19's ongoing economic impact to the Chamber and local restaurants,
staff is recommending the City co-sponsor the 2021 Tustin Food & Wine Festival, waive the
standard fees and staff time, and, for one year only, allow the Chamber to retain the funds
raised from the event to further 2021 economic development efforts on behalf of Tustin small
businesses. If State and County Public Health Orders prevent the event from being held in
2021, the City's agreement to sponsor the 2021 event will not carryover to 2022. Sponsorship
of the 2022 Food & Wine Festival, including any fee and profit-sharing considerations, will
require a new agreement and City Council authorization.
FDocuSigned by:
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Christopher Koster
Director of Economic Development
Docu Signed by:
Jerry Craig
Deputy Director of Economic Development
Attachment: Funding Agreement between the City of Tustin and the Tustin Chamber of
Commerce for COVID-19 Assistance and Business Promotion Services
DocuSign Envelope ID: E73BD1 31 -133E7-41 C2-8131 0-02CC97182709
FUNDING AGREEMENT
FOR
COVID-19 ASSISTANCE AND BUSINESS PROMOTION SERVICES
This Funding Agreement for COVID-19 Assistance and Business Promotion
Services (herein "Agreement"), is made and entered into as of February , 2021
("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 "Parties").
WHEREAS, the Chamber has served the Tustin business community for sixty years;
and
WHEREAS, the Chamber is in need of assistance as a result of financial hardship
due to cancelled fundraising events caused by COVID-19; and
WHEREAS, the Chamber desires to perform certain economic development
activities that contribute to the economic vitality of the City and assist businesses impacted
by the public health emergency; 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, and promoting Tustin as a tourism destination;
and
WHEREAS, the City desires to strengthen the Chamber's efforts by sponsoring the
2021 Tustin Food & Wine Festival and by funding business promotion services.
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 the Chamber forty-
four thousand five hundred dollars ($44,500). The purpose of this grant is to assist the
Chamber overcome the financial impacts caused by COVID-19 and to fund the following
business promotion services:
a. Launch a "Shop Tustin" program;
b. Once public gathering is allowed, initiate a "Reopen Tustin" campaign at
various locations throughout Tustin; and
c. Once public gathering is allowed, hold the 2021 Tustin Food & Wine Festival in
Tustin.
In addition to providing the funds specified above, the City agrees to waive the facility
rental fees for the Chamber's use of the South Hangar for the 2021 Tustin Food & Wine
Festival, and agrees to waive the City's share of profits from the 2021 Tustin Food & Wine
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Festival (this year only).
2. Method of Payment. The Chamber may submit to the City an invoice for payment
at any time subsequent to the Effective Date.
3. Schedule of Performance. Completion of the 2021 Project Deliverables identified
in Exhibit "A" shall be performed
to the reasonable satisfaction of the City by December
31, 2021, unless extended in the City's sole discretion.
4. 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.
5. 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.
6. 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.
7. Records/Return of Funds. The Chamber shall keep such books and records as
shall be necessary to properly document the Chamber has completed the Project
Deliverables required by this Agreement by December 31, 2021, 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. All funds shall be
expended by December 31, 2021, and any unspent funds for the purposes as defined in
this Agreement shall be returned to the City by January 15, 2022, unless extended in the
City's sole discretion.
8. 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.
9. Integrated Agreement. This Agreement contains all of the agreements of the
Parties and cannot be amended or modified except by written agreement.
10. Amendment/Termination. This Agreement may be amended at any time by the
mutual consent of the Parties by an instrument in writing. This Agreement may be
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terminated at the sole discretion of the City at any time upon ten (10) days written notice.
11. 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
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
Matthew S. West
City Manager
"Chamber"
TUSTIN CHAMBER OF COMMERCE
Lindburgh McPherson
Chairman
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EXHIBIT "A"
Tustin Chamber 2021 Deliverables
1. Launch a "Shop Tustin" program;
2. Once public gathering is allowed, initiate a "Reopen Tustin" campaign at various
locations throughout Tustin; and
3. Once public gathering is allowed, hold the 2021 Tustin Food & Wine Festival. (The
City shall be identified as a sponsor of the event.)
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