CC 04-04-2023 Item No. 4 Chamber of Commerce_Written CommunicationsCC 04-04-2023
Item No. 4
Consider staff reports and
attachments provided June 21,
2022 and March 3, 2023
regarding Chamber of
Commerce
Written Communications
From:Rhoda Fry
To:City Clerk; City Council
Subject:April 4, 2023 Agenda Item #4 City"s massive subsidies of the Chamber of Commerce
Date:Monday, April 3, 2023 11:29:08 AM
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April 4, 2023 Agenda Item #4
Dear City Council,
Please discuss our City’s subsidies of the Chamber of Commerce on April 4, 2023 Agenda
Item #4. Presently, this item is listed as a Consent Calendar item, meaning that there is no
intent for discussion. (see link https://cupertino.legistar.com/LegislationDetail.aspx?
ID=6106862&GUID=B266645B-FA26-41E9-A35E-DD842C1DABF9).
Last year, Councilmember Kitty Moore inquired about unusual payments to the Chamber on a
line item in the Accounts Payable ledger on the Consent Calendar. In response, staff created a
comprehensive report for the May 3, 2022 City Council meeting item #26 where we learned
that the Chamber received money and services without Council’s explicit consent. We have
yet to have a meaningful discussion on how our tax dollars have funded the Chamber in the
past and how they should be allocated in the future. This is especially important now as our
City enters economic uncertainty around our tax revenues, first from an unexpected shortfall
in Q4, which has yet to be discussed at City Council and second, from an anticipated shortfall
that was predicted last June.
$65K Wasted: Unbeknownst to our City Council, around 2019, City Staff paid the Chamber to
build a website that was to promote economic development. We were left with a shell of a
website that directed visitors to the Chamber’s short-list of member businesses, many of which
are located outside of Cupertino. Thankfully, Council put an end to it.
Over $200K and Counting: Since 2015, our City has given money to the Chamber and offered
free use of City facilities and services, while others pay. Is this fair? Is this appropriate? Is it
time for a change?
Good Deeds: The Chamber does various good deeds for non-member businesses and
residents. It hosts interesting Legislative Action Committee meetings and runs entertaining
events (that raise funds for the Chamber). Is it appropriate for the Chamber to generate income
from the free-use of our City facilities and services? Although there is some alignment
between the goals of the Chamber and those of the City, it is far from a perfect match.
Conflicts of Interest: The Chamber exists in order to influence local government on behalf of
its dues-paying business members. To this end, the Chamber has endorsed political candidates
and funded their campaigns; essentially, our tax dollars have been funding City Council
election campaigns. The Chamber has also been a long-time advocate for one of California’s
worst polluters, the Lehigh Permanente Quarry and Cement plant. And the Chamber is more
likely to support contracts that are in the best interests of their member companies, such as for
water and garbage-collection, than for what is best for our residents. Although our City is
home to over 2400 licensed businesses, the Chamber has fewer than a tenth of those as
members. Because these types of conflicts arise, many cities are modifying their relationships
with their local Chambers. Our City government represents the interests of the voters. Did the
voters ask you, our elected City Council, to give money to a business organization whose very
purpose is to influence government decisions on behalf of its business members? This
discussion, which was promised last year, is overdue.
For the sake of good governance, I beg our Council to determine how we should spend our tax
dollars on the Chamber and other organizations. How much money should we give away, if
any? One church received $2700 in waived fees for an egg hunt; what happens when more
churches want funding? Are our allocations to sister and friendship cities equitable and so on?
For fiscal year 2022/2023, we’re looking at nearly $300K in subsidies and that’s not including
free room rentals (see https://www.cupertino.org/our-city/departments/finance/non-profit-
support-opportunities). If we can trim our subsidies now, we will be able to prevent other
programs from being cut.
Sincerely,
Rhoda Fry