The annual agreement between the City of Sunnyvale and the Sunnyvale Chamber of Commerce is attached for Council review and approval. The proposed FY 1998-99 contract with the Chamber is for $46,618 to provide public information and economic development information services, and to produce and distribute specified publications and information packets on behalf of the City. Staff recommends approval of the annual contract renewal.

Since 1979, the Sunnyvale Chamber has been contracted by the City to provide information, promotion and professional services to the general public, business community, visitors and business prospects. As part of these services over the past twenty years, the Chamber has also produced and distributed various informational publications under the City's review. Last year (FY 1997-98), total actual costs of these services and materials was $44,989 under the annual contract with the Chamber.

The renewal of the annual contract for the basic information services and routine materials provided by the Chamber to the City is not related to the agreement with the Chamber that was approved by the City Council in December 1997 for the short-term visitors information project. Some of the public information materials produced by the Chamber under the annual contract, however, may be useful for the visitors information project as it is implemented. This contract for public information services also is unrelated to the lease agreement for the Chamber's offices located on City-owned property.

• Policy 7.2A.1: Use community and business organizations and networks as a resource for community education and outreach.

• Policy 7.2A.2: Publish and distribute information regarding city programs and services, City Council actions, and policy issues.

The Chamber’s proposal for FY 1998-99 (Attachment A) outlines the two areas of service that the Sunnyvale Chamber provides on behalf of the City. The first area is the basic administrative and public information services that cover the Chamber's role as an information resource for citizens, businesses and visitors. The scope of these basic services remains unchanged from previous years, and it includes providing responses to inquiries and correspondence concerning Sunnyvale, handling new business prospects and business complaints, and conducting community and business promotions.

Last year, the Chamber handled approximately 44,000 telephone, written and walk-in requests for information. The proposed cost of these basic services will increase three percent, from $17,882 in the prior contract to $18,418 for this current year. The increase reflects cost-of-living adjustments in the Chamber’s labor costs. The contract amount for these basic public information services accounts for about five percent of the Chamber's overall annual budget.

In addition to the basic information services, the Chamber also develops and distributes specific information brochures and packets under the City's direction as outlined in the attached contract. The Chamber produces these contract publications in close cooperation with City staff from the Community Relations and Economic Development programs. These items include new resident packets, community fact sheets, and community marketing information materials.

New resident packets are distributed to new residents who are new Sunnyvale utility customers; managers of multi-family complexes to give to new apartment tenants; and local business and industry for employee recruiting and relocation services. New resident packets account for about three-fourths of the costs of the materials produced and distributed under Chamber contract, and the projected demand for them has grown to 10,000 per year. This is a result of continuing high levels of tenant turnover, the opening of major new residential complexes, and increased employee recruitment by local employers.

The costs proposed for the Chamber’s production of publications are based on vendor estimates for the preparation, printing and distribution of specified materials, as well as the labor associated with preparing the new resident packets. The estimated production costs for the current year are $28,200, compared to actual costs of $27,107 in the prior year. As the Chamber produces the brochures and information packets during the year, the actual costs for each item vary from the original proposal estimates as a result of changes in market prices or design and specification modifications.

Generally the annual contract is renewed at the beginning of each fiscal year, but the Chamber delayed submitting its proposal for renewal to the City until February this year. The attached contract is necessary and appropriate at this time to meet the ongoing need for basic information services oriented to new residents and general requests for information by prospective residents and businesses. The Chamber has continued to provide these basic services since July 1998, including the preparation and distribution of materials as outlined in this report, and the attached contract would be retroactive to the beginning of the fiscal year.

Resources for the proposed services to be provided by the Chamber of Commerce have been allocated in the current budget for External Relations, Program 735. The total amount proposed for FY 1998-99 is $46,618.

The Sunnyvale Chamber of Commerce has reviewed the proposed contract and this report to Council. Other notice includes publication of the Council agenda and posting in the City’s web site.

Staff recommends approval of the proposed contract, Alternative 1.