REQUEST FOR CITY COUNCIL ACTION
DATE: 08/03/2022
TO: Honorable Mayor and City Council Members
FROM: Economic Development Department
SUBJECT:
Title
Professional Services Agreement with Corona Chamber of Commerce for Business Promotion, Marketing, and Retention Services.
End
EXECUTIVE SUMMARY:
Council consideration of a Professional Services Agreement with the Corona Chamber of Commerce for Business Promotion, Marketing, and Retention Services. The proposed Agreement for Fiscal Year 2023 outlines a range of business marketing and promotion services at a not-to-exceed amount of up to $87,500.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Approve the Professional Services Agreement with the Corona Chamber of Commerce for Business Promotion, Marketing, and Retention Services for a not-to-exceed amount of $87,500.
b. Authorize the City Manager or his designee, to execute the Professional Services Agreement with the Corona Chamber of Commerce.
Body
BACKGROUND & HISTORY:
The Economic Development Department partners with various local, regional, state, and federal agencies to enhance the City’s business offerings and resources to more than 12,000 businesses operating in Corona. Through these partnerships, the City leverages resources to address the varied needs of its business community. These efforts enable the City to be better positioned to offer a variety of programs, services, grants, and technical assistance to aid business growth and resiliency in Corona.
The City has a longstanding partnership with the Corona Chamber of Commerce (Chamber) to further promote business attraction, retention, and expansion. Historically, the City and Chamber have entered into an annual agreement to enhance business promotion and marketing to support business growth and expansion in Corona.
In anticipation of this year’s proposed Agreement, the Chamber prepared a year-in-review letter highlighting accomplishments for Fiscal Year 2022, as well as a business proposal detailing proposed events and services for Fiscal Year 2023 (Attachment 1). Some notable accomplishments from Fiscal Year 2022 include:
• Hosted 27 business seminars, webinars, and workshops on a variety of topics
• Partnered with the City on its inaugural New Business Welcome Reception
• Held 36 grand opening and ribbon cutting events
• Held the Corona Fast Pitch Competition as part of Riverside County Innovation Month
ANALYSIS:
The FY23 Scope of Services (Scope) was developed based on the Chamber’s business proposal (Attachment 1), which includes added or enhanced promotion and services from FY22 Professional Services Agreement. Notable new or enhanced services include:
• A customized marketing membership package including print and digital advertising in the Corona The Guide and Corona Business News publications
• Enhanced promotion of Innovation Month
• Good Morning Corona sponsorship
• Live Work Corona promotion
• Corona Job Fair
The Scope aligns with the forthcoming Economic Development Strategic Plan, specifically the following strategic actions:
• 1.4 Evaluate ways to enhance participation in the Annual Riverside County Innovation Month be promoting and coordinating events in Corona that showcase innovative and entrepreneurial businesses.
• 1.5 Enhance the relationship with the Corona Chamber of Commerce to create additional support for economic and workforce development initiatives including the Live Work Corona workforce development initiative and business events that support entrepreneurial development for small business owners.
• 1.6 Build upon the success of the inaugural New Business Reception with the Corona Chamber of Commerce and implement as an annual event to celebrate new businesses locating in Corona.
• 3.1 Continue to strengthen partnership with the Corona Chamber of Commerce to implement the Live Work Corona workforce development initiative with programming to include a local Corona Job Fair.
The Scope outlines costs associated with each of the major efforts, promotions, and/or events. The overall cost increase for this Agreement is $9,500 more than FY22. Table 1 below provides a summarized view of the proposed Agreement’s Scope. New items and cost increases are also displayed in Table 1.
Table 1: Summary of Scope of Services
|
Scope Items |
Description |
Total Cost |
|
Customized Marketing Membership Package NEW |
Print and Digital Marketing: • Corona The Guide annual publication - one (1) two-page advertisement and one (1) half-page advertisement in directory • Corona Business News bimonthly publication - one (1) article in four (4) publications Promotional Support: • Economic Development Department featured on Chamber outlets, includes: website, phone directory, weekly email newsletter, mobile app, and website |
$15,000 |
|
Business Events and Promotions |
Itemized description of various events and promotions provided below. |
$72,500 |
|
Business Workshops* |
Eight (8) workshops/events to support business growth and education, includes: • Coffee with an Entrepreneur - 6 • Other Seminars - 2 o Topics to be determined, but may include: How to Start a Home-Based Business, Resources for Minority-Owned Businesses, Attracting and Retaining New Customers, and Business 101 |
$24,000 |
|
Business Seminars** |
Two (2) in-depth seminars to support business education. Topics to be determined in support of key industry sectors. |
$10,000 |
|
New Business Welcome Reception |
One (1) New Business Welcome Reception to provide new businesses with resources to support business operations. |
$4,000 |
|
Innovation Month*** |
Promotion and marketing of countywide Innovation Month and coordination of Corona Fast Pitch Competition to support entrepreneurship development. |
$12,000 |
|
Good Morning Corona Sponsorship NEW |
City sponsorship of three (3) selected events, includes: One (1) table for up to ten (10) attendees and one (1) exhibitor space. |
$7,500 |
|
Live Work Corona Promotion |
Promotion of City’s Live Work Corona workforce development initiative and Hire Local Pledge, includes: digital and in-person outreach and promotion amongst current and new Chamber members. |
$5,000 |
|
Corona Job Fair |
Citywide job fair to support hiring needs of Corona companies and employment needs of Corona residents. |
$10,000 |
|
TOTAL COST |
$87,500 |
* An increase of $1,000 per workshop due to increased costs for staff wages and inflation of goods and services (e.g., printing, food items for events, etc.).
** An increase of $1,000 per seminar due to increased costs for staff wages and inflation of goods and services (e.g., printing, food items for events, etc.).
*** An increase of $2,000 to account for additional marketing and promotional outreach to encourage business participation.
To mitigate the total cost of the proposed Agreement, as well as provide a greater opportunity for enhanced service, the Chamber is proposing a reduction in the number of events to ensure quality of service over quantity of events. FY22’s ambitious Scope included more than 30 events that resulted in lower participation rates than anticipated. The FY23 Scope includes 16 partnership events and enhanced outreach to the business community for Live Work Corona and Innovation Month. The proposed Agreement is for a total not-to-exceed amount of $87,500 for Fiscal Year 2023.
FINANCIAL IMPACT:
The Economic Development Department’s Fiscal Year 2023 budget includes $82,000 for the Corona Chamber of Commerce contract. The additional $5,500 for the Agreement will be transferred from General Government within the General Fund.
ENVIRONMENTAL ANALYSIS:
This action before Council is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the Guidelines for CEQA, which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action simply approves a formalized agreement between the City and Chamber for Business Promotion, Marketing, and Retention Services. Since there is no possibility that adopting this action will have a significant effect on the environment, no further environmental analysis is required.
PREPARED BY: AMANDA WICKER, ECONOMIC DEVELOPMENT ADMINISTRATOR
REVIEWED BY: JESSICA M. GONZALES, ECONOMIC DEVELOPMENT DIRECTOR
Attachments:
1. Exhibit 1 - Corona Chamber of Commerce Year-In-Review Letter and Business Proposal
2. Exhibit 2 - Professional Services Agreement with Corona Chamber of Commerce