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Home My WebLink AboutHB Chamber of Commerce, Community for Innovation, Entrepreneuriship, Leadership and Opportunities (CIELO), and CSUF Business Development Center (SBDC) - 2020-06-01 City of Huntington Beach 96f. File #: 20-1666 MEETING DATE: 6/1/2020 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Marie Knight, Director of Organizational Learning and Development Subiect: Approve the Memorandum of Understanding between the City of Huntington Beach, Huntington Beach Chamber of Commerce, Community for Innovation, Entrepreneurship, Leadership and Opportunities (CIELO), and the CSUF Small Business Development Center (SBDC) for One HB Business Support Program (OneHB Program) Statement of Issue: During the COVID-19 pandemic, our business community has been hard hit and like many jurisdictions, we are experiencing record levels of economic distress. The purpose of this Memorandum of Understanding (MOU) is to establish a partnership between the City of Huntington Beach; Huntington Beach Chamber of Commerce; Community for Innovation, Entrepreneurship, Leadership and Opportunities (CIELO); and the Small Business Development Center (SBDC) in the creation of a micro-grant business support program called, Together, We're OneHB Supporting Local Business. Financial Impact: There is no financial impact. Recommended Action: Approve and authorize the City Manager or his designated representative to execute the Memorandum of Understanding (MOU) to establish a partnership between the City of Huntington Beach, Huntington Beach Chamber of Commerce, Community for Innovation, Entrepreneurship, Leadership and Opportunities (CIELO), and the CSUF Small Business Development Center (SBDC). Alternative Action(s): Do not approve the Memorandum of Understanding, and direct staff to proceed in another direction. Analysis: Prior to the start of the COVID-19 pandemic, City staff had been working on a unifying message for the organization centered on the concept that we are One HB working together to serve the community exceptionally. When the pandemic hit, we knew that this message could also be one that City of Huntington Beach Page 1 of 4 Printed on 5/28/2020 powered7L,LegistarTM File #: 20-1666 MEETING DATE: 6/1/2020 unifies our community as we come together to help and support each other, especially those in greatest need. Our businesses in Huntington Beach play a critical role in the viability of our community and the City's ability to offer services. Sales tax revenue makes up a large portion of our general fund budget. It is vital that our business community is able to not only survive the pandemic, but to come back even stronger. It is safe to say the majority of our businesses in HB are in the small "mom and pop" category, sole proprietors, 10 employees or less, and many are unable to successfully navigate the different resources offered at the federal, state, and local levels. Our small businesses need our help, now more than ever, if they are going to be able to continue to operate, or open for business in the future. Of note, based on a preliminary review of business license information, the City has over 21,000 active business licenses, and around 95% of those businesses report having 10 employees or less. Knowing this, City staff reached out to various business partners and community members to see if there could be a program established that can support our small business community in a way that has not been done before through a program that for the first time would bridge philanthropy and community giving in support of the economic engine of the City. Together We're OneHB Supporting Local Business is a community campaign to do just that - offer financial support through a micro-grant that will help keep the doors open and keep our economy in HB Open for Business. In particular, we wanted to design the program in a way to reach those business entities who missed out on the major SBA and Federal support/ loan programs that have been developed. Scope of the Program Through the establishment of the Together We're OneHB Supporting Local Business program, a fund will be created (FUND) in support of our local small businesses. The FUND will be managed by CIELO, a Huntington Beach based 501(c)3 non-profit organization. CIELO will establish a separate OneHB bank account for tracking purposes. All donations to the FUND will be tax deductible. Small businesses that meet the established eligibility criteria would be able to apply for micro-grants in the amount of $5,000 each to be used for payroll, rent/lease payments, utilities, inventory, and other approved operational expenses. We know there will likely be more need than funding available, so each time the fund reaches increments of$25,000, five (5) micro grants of$5,000 each will be awarded through a lottery system. The micro grant application process, screening and review, lottery, disbursement, grantee support, and tracking of outcomes will be managed by SBDC under pre-determined guidelines. The attached MOU outlines the roles and responsibilities of each of the program partners as well as establishes a Grant Committee that consists of one representative from each of the partner agencies who will meet on a quarterly basis to review the program metrics, and ascertain if any adjustments are needed to the program moving forward to ensure its success. Each of the partners have agreed to market, promote, and actively fundraise for the program. Grant Eligibility Guidelines The working committee of City staff and members of the partner agencies looked at the needs of our small businesses, and where a grant investment would be successful, and has established criteria for City of Huntington Beach Page 2 of 4 Printed on 5/28/2020 powered7D� LegistarTl File #: 20-1666 MEETING DATE: 6/1/2020 grant eligibility that includes: • The business has been open and in continuous operation for a period of three or more years, • Employs no more than ten (10) fulltime time equivalent W-2 employees, • Is located in Huntington Beach with a current and valid business license in the City of Huntington Beach, • Has been negatively affected by Coronavirus (COVID-19) and will attest by statement to this in application, • Does not promote, sell, or advertise any products, ideas, or services that fail to comply with all applicable laws, acts, regulations, rules and ordinances, Awarded grant funds can be used for a variety of operational costs, such as payroll expenses, inventory, rent/lease payment, business related insurance, utilities, as well as other operational expenses, if pre-approved in writing by the Grant Committee. A full list of the eligibility requirements for grant applicants as well as the full program structure is attached. Community and Philanthropic Support There are a variety of ways our community can support our small businesses through the program: 1. Philanthropic Support Partners will be seeking philanthropic donations to the FUND in order to be able to award the first ten (10) micro grants prior to June 30, 2020. Donations to the FUND will be completely tax deductible and made directly to CIELO. Donors at a $5,000 level or higher will receive marketing exposure on the City's social media sites as well through the other partner agencies. 2. Community Based Support Members of the community who want to show their support for our local small business community can make a donation to the FUND. For every $30 donation, they will receive a yard sign that will have the OneHB logo stating, "We are OneHB, Supporting local business." Community members can proudly display their support of our small businesses in their front yard. The donation/pick-up point for the yard signs will be Huntington Surf and Sport on Main Street. 3. Sale of Merchandise The City is entering into a license agreement with a local vendor who will be selling T-shirts, hats, and other apparel with the OneHB logo. A pre-determined percentage of gross sales of retail items as well as a per-item flat fee for wholesale items will be disbursed monthly to the FUND until such time that the campaign ends. City of Huntington Beach Page 3 of 4 Printed on 5/28/2020 powered7rg,LegistarT" File #: 20-1666 MEETING DATE: 6/1/2020 Environmental Status: Not applicable. Strategic Plan Goal: Strengthen long-term financial and economic sustainability Attachment(s): 1. Memorandum of Understanding 2. Business Support Program Outline City of Huntington Beach Page 4 of 4 Printed on 5/28/2020 powered7cq,LegistarTM Memorandum of Understanding (AIOU) Between City of Huntington Beach (City), li«ntington Beach Charnber of Commerce, CIFLO and the CSUF Small Business Development Center (SBDC). 1. Purpose The purpose of this NIOU is to formally establish it framework for cooperation between City of Chamber Huntington Beach, Huntington Beach amber of Commerce. C113LO and the CSUF SBDC. This \-IOU is not binding in any %vay and shall not be construed as a contract. Rather. it is designed with the intent of generally outlining and setting expectations regarding participation in the One I-IB Business Support program (One[113 Program) 11. Mission and Public Purpose of the Onel'l6 Program The businesses in Huntington Beach (HB) large and small play a critical role in the viability of our community and the City's ability to offer services. Sales tax revenue makes up a large portion of our general fund budget. It is vital that our business community is able to not only survive the Coronavirus (COVID-19), but to come back stronger. Many ofthe businesses in HB are in the small "mom and pop" category, sole proprietors, 10 employees or less and many are unable to successfully navigate the different resources offered at the Federal. State and local levels. Our small businesses need our help, now more than ever, if they are going to be able to continue to operate, or open for business in the future. Together We're 0neHB Supporting Loch! Business is it community campaign to do just that, Offer financial support, it life line. it micro-grant that will help keep the doors open for small businesses struggling because of COVID-19 and in turn. keep the economy in HB viable and sustainable . Ill. Scope and Public Purpose of the Oneill3 Program The Grant Program is intended to help support certain small businesses in the Cite who need assistance duc to adverse economic effects of Coronavirus (COVID-19). Grants will be made from it Find solely based on communing donations and the sale of program related merchandise. Grants will be distributed for allowable uses in the amounts of S5,000 each. Grant applications will be accepted starting (Tt3D) . Once the Communing Donation fund reaches 525,000, grants will be issued via a lottery to grant applicants in increments of five (5) 55.000 grants at a time each time an additional 525,000 is raised. IV. Roles of Participant in the OnellB Program Below is an oven icw of the OneHB Program and the roles and expectations from each of the NIOU participants. A. City of Huntington Beach • Coordinate the overall Onel-IB Program with participants ; • Develop a list of allowable uses for grant money: • Create a City Grant Committee to include: a representative from the City Manager's office, a representative from the Officc of Business Development, a representative from the HB Chamber of Commerce, a representative front CIELO, and a representative from SBDC: • Champion the Oncl-IB Program and promote throughout all of the City's marketing channels: • In collaboration with all of the program participants. create the Onel'IB Program guidelines: • Create the marketing materials and facilitate access from the main website page to all of the program participants; • With SBDC host wcbinars to potential grantees • Participate in grant approval process, verifying applicant eligibility • Actively fundraisc for the Onef-IB Program; • Receive and approve financial tracking information provided by CIELO: • Facilitate quarterly meetings with program participants to track success of the program and evaluate any program adjustments that are needed. B. Huntington Beach Chamber ofConurtercc • Market the Onel'IB Program to all Huntington Beach Chamber members and small businesses throughout the city of Huntington Beach and promote throughout all of its marketing channels;. • Participate in quarterly program participant meetings; • Actively fundraisc for the OneHB Program. C. CIELO • Will be the fiscal anent for the OncHB Program; • Establish and maintain a separate bank account for the One[IB program; • Maintain all fund accounting records as required by the City of Huntington Beach: • Receive donations and merchandise fees: • Track donations and send donation acknoxyledgentent letters; • Market the OnCI'IB throu 'h all CIELO marketing channels: • Actively fundraisc for the Onel'IB Program: • Will send accounting reports on all grantees to the City, as required: • Participate in quarterly program participant meetings. D. CSUF Small Business Development Center (SBDC) • Create application for the OneHB Program; • Host application process on SCUF website; • Validate eligibility of each applicant; • Conduct random lottery of eligible applicants for final consideration in each round of funding; • Present each application to the City grant committee; • Create and host informational webinars related to grant applications in multiple languages including: English and Spanish; • Continue to work one-on-one with each grant awardee; • Utilizing Neoserra software system, track each grant awardee for a period of one year to include: every seminar/workshop they attend,each consulting session that the client completes with a business advisor along with the notes of what happened in the meeting. Vital demographics including type of industry, veteran status, address, type of formation, start of business, change in sales,jobs created and jobs retained. • Provide the City with an annual report with the tracking data for all grant awardees; • Participate in quarterly program participant meetings; • Develop success stories for the City. V. Rarticipant Signatures for the OnellB Program x O -kve 1m ut� , G tr ( d-t.'W Acxe►.S City of Huntington Beach Printed Nano I Dae [o/s/ao x Huntington Hach ChamM of Commerce Pnntcd NetnvTalc Date x CIELO Pnmcd".in" hl.. hmc x Nltrx Pnntcd Name/Tale Ihtc TO[IpI1M BY. COUNTERPART Cm ATTORNEY CITY OF HUNTINGTON BEACH • Create application for the CneliB Program; • Host application proc.^ss on SCUP websitc; • Validate eligibility of each applicant; • Conduct random lottery of eligible applicants for final consideration in each round of funding; • Present each application to the City grant committee; • Create and host informational webinars related to grant applications in multiple languages including: English and Spanish; • Continue to work one-on-one with each grant awardee; • Utilizing Ncoserra software system, track each grant awardee for a period of one year to include: every seminar/workshop ;hey attend, each consulting session that the client completes with a business advisor along with the notes of what happened in the meeting. Vital demographics including type of industry, veteran status, address, type of formation, start of business, change in sales,jobs created and jobs retained. • Provide the City with an annual report with the tracking data for all grant awardees; • Participate in quarterly program participant meetings; • Develop success stories for the City. V. yarticipant Signatures for the OneHB Program D L-- x_ o l-1 Veft C.ktk , G t -tm Acxec-L. City or Huminglnn Beach Primed Nam/rifle / oate �-O l tington Bath—h---cham0er or commerce Printed nsme/riue Oatc 'LO Primed Nhmcll'ide Date t4l/L Zo Z O x saoc Primed 4rmnTmc I APPROVED AS TO FORM By: MICHAEL E. GATES COUNTERPART CITY ATTORNEY CITY OF HUNTINGTON BEACH Esparza, Patty From: Vigliotta, Mike Sent: Wednesday, March 17, 2021 3:39 PM To: Estanislau, Robin, Esparza, Patty Cc: Hoffman, Michele Subject: CARS Grants Hi Patty, Please file the MOU on the CARES grants without all signatures. 1