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Consideration Items
Item No. 1.
| MEETING DATE: 11/17/2025 |
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| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Breanna Hurt, Management Analyst II |
| SUBJECT: | CONSIDER NORTH ORANGE COUNTY CHAMBER OF COMMERCE MEMBERSHIP OPTIONS
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RECOMMENDATION:
That the City Council receive and file this report and provide direction to staff.
DISCUSSION:
During the public comment portion of the City Council meeting held on October 6, 2025, the President of the North Orange County Chamber of Commerce (NOCC), Mr. Andrew Gregson, along with other representatives and members of the NOCC, proposed that the City Council consider a partnership between the City of La Habra (City) and the NOCC. Mr. Gregson suggested that the City could join as a member of the NOCC in a way that would allow certain eligible and licensed small businesses in La Habra to become members of the NOCC at no direct cost to those businesses. Later, during Council Comments, Councilmember Nigsarian made a motion that staff meet with the NOCC to learn more about their proposal and return to City Council with a report on their findings. Mayor Pro Tem Medrano seconded the request.
As directed by City Council, staff met with Mr. Gregson and representatives from the NOCC on Wednesday, October 29, 2025, to learn more about their proposal. Staff was informed that the NOCC operates as a 501(c)(6) nonprofit regional organization that supports businesses through networking, legislative advocacy, and economic development initiatives. It was originally established in 1893 as the Orange County Chamber, then in 1920 as the Fullerton Chamber of Commerce, before becoming the North Orange County Chamber in 2014 to represent businesses in the cities of Buena Park, Fullerton, La Palma, and Stanton. Mr. Gregson indicated that they also have business members spanning other cities in Orange, Los Angeles County, and Riverside counties.
Mr. Gregson presented a “Small Business Strategic Growth Proposal” (Attachment 1) that would have the City enter into a formal agreement with the NOCC in which the City would pay NOCC to participate in their program which, among other things, would subsidize chamber membership benefits to certain eligible and licensed small businesses that operate in the City of La Habra. Mr. Gregson indicated that, based on data he collected, there are approximately 2,076 small businesses currently operating in La Habra with an active business license. City records however, indicate that, as of September 11, 2025, there are currently a total of 1,717 business licenses issued in La Habra, excluding Home Occupancy Permits. Staff’s cursory review further indicates that there are approximately 1,236 businesses in La Habra with 10 or fewer employees that maintain an active business license. Depending on direction provided by City Council, this discrepancy in the number of licensed businesses in La Habra would need to be reconciled with the data provided by NOCC.
Mr. Gregson later submitted a proposed agreement (Attachment 2) for the program; however, staff and legal counsel have only conducted a preliminary review of the proposed agreement, pending further direction from City Council.
The cost structure to the City for the proposed NOCC Small Business Strategic Growth program was presented as follows:
As directed by City Council, staff met with Mr. Gregson and representatives from the NOCC on Wednesday, October 29, 2025, to learn more about their proposal. Staff was informed that the NOCC operates as a 501(c)(6) nonprofit regional organization that supports businesses through networking, legislative advocacy, and economic development initiatives. It was originally established in 1893 as the Orange County Chamber, then in 1920 as the Fullerton Chamber of Commerce, before becoming the North Orange County Chamber in 2014 to represent businesses in the cities of Buena Park, Fullerton, La Palma, and Stanton. Mr. Gregson indicated that they also have business members spanning other cities in Orange, Los Angeles County, and Riverside counties.
Mr. Gregson presented a “Small Business Strategic Growth Proposal” (Attachment 1) that would have the City enter into a formal agreement with the NOCC in which the City would pay NOCC to participate in their program which, among other things, would subsidize chamber membership benefits to certain eligible and licensed small businesses that operate in the City of La Habra. Mr. Gregson indicated that, based on data he collected, there are approximately 2,076 small businesses currently operating in La Habra with an active business license. City records however, indicate that, as of September 11, 2025, there are currently a total of 1,717 business licenses issued in La Habra, excluding Home Occupancy Permits. Staff’s cursory review further indicates that there are approximately 1,236 businesses in La Habra with 10 or fewer employees that maintain an active business license. Depending on direction provided by City Council, this discrepancy in the number of licensed businesses in La Habra would need to be reconciled with the data provided by NOCC.
Mr. Gregson later submitted a proposed agreement (Attachment 2) for the program; however, staff and legal counsel have only conducted a preliminary review of the proposed agreement, pending further direction from City Council.
The cost structure to the City for the proposed NOCC Small Business Strategic Growth program was presented as follows:
- During the meeting, NOCC indicated that the City would pay an initial one-time onboarding and marketing fee of between $20,000 and $40,000. In their proposed draft agreement; however, the initial startup cost was specified to be at least $30,000.
- During the meeting, NOCC indicated that the City would be required to pay $100 per eligible licensed small business in La Habra, with a 1,000 business annual minimum, meaning that the City would be required to pay NOCC at least $100,000 per year to participate in the program. It was staff's understanding that this $100,000 minimum annual payment would be required even if fewer than 1,000 eligible businesses were enrolled. It should be noted that in their proposed draft agreement there was no minimum business requirement specified.
Based on the information and business data presented by Mr. Gregson during the meeting, the estimated cost to the City for the first year of the proposed agreement would be at least $120,000, but could be as high as $247,600, depending on how many eligible businesses are actually identified by the City and enrolled to receive membership benefits. The maximum annual amount could be less, depending on how many actual licensed La Habra businesses are identified as eligible to join the program; however, the minimum recurring cost to the City would be no less than $100,000 per year based on the information presented to staff.
Staff asked how many of the other cities that are currently in the NOCC region have enrolled in this particular partnership program and were told that this is a new program and that, if the City agreed to join, La Habra would likely be the first City to accept this program and cost structure.
Mr. Gregson indicated that the benefits to eligible and enrolled local small businesses would include a free membership to NOCC, including access to NOCC staff, resources, business advocacy, networking opportunities, website development, and participation in regional initiatives without requiring individual businesses to pay separate chamber membership dues. Furthermore, Mr. Gregson indicated that the NOCC proposal would provide visibility and marketing to La Habra businesses through NOCC’s communication network, which reportedly includes:
Staff asked how many of the other cities that are currently in the NOCC region have enrolled in this particular partnership program and were told that this is a new program and that, if the City agreed to join, La Habra would likely be the first City to accept this program and cost structure.
Mr. Gregson indicated that the benefits to eligible and enrolled local small businesses would include a free membership to NOCC, including access to NOCC staff, resources, business advocacy, networking opportunities, website development, and participation in regional initiatives without requiring individual businesses to pay separate chamber membership dues. Furthermore, Mr. Gregson indicated that the NOCC proposal would provide visibility and marketing to La Habra businesses through NOCC’s communication network, which reportedly includes:
- 27,000 email subscribers (with monthly email campaigns reaching 7,966 subscribers)
- 80,000 monthly website visitors
- 91,000 monthly social media visits
- 18,000 podcast listeners across 28 states and 23 countries
Mr. Gregson indicated that the NOCC currently has approximately 3,500 active business members and that their current full-time staff include himself and his spouse, Jennifer Gregson, who is NOCC’s business manager and handles marketing, two part-time staff, and contract support as needed. When asked how NOCC would absorb potentially 1,000 to 2,000 new La Habra business members, Mr. Gregson indicated that they would very likely have to employ additional part-time staff. The staffing discussion was a focal point during the meeting in order to better understand how NOCC would be able to provide adequate staff support and services to such a large influx of new business members.
Staff then asked how the other four cities in NOCC’s region participated in their chamber. Mr. Gregson indicated that the Small Business Strategic Growth program is new and that there were no cities currently enrolled in this particular program; however, he did indicate that at least two other cities are currently evaluating a similar NOCC proposal. Mr. Gregson indicated that the cities in NOCC's regional coverage area have, in the past, participated with NOCC as “municipal entities” at an annual membership cost of $5,000. Under this alternate membership model, a city could join as a member of the NOCC and their local businesses could opt to individually pay to join the NOCC if they wished to receive member benefits. Mr. Gregson confirmed that this $5,000 municipal entity membership option is available to the City of La Habra, which would allow the City to establish a membership with NOCC and participate in regional business initiatives at a far lower annual cost.
Following the meeting with NOCC, staff contacted the four Orange County cities that currently are, or have previously been, dues paying members of the NOCC (Fullerton, Buena Park, Stanton, and La Palma), to solicit feedback on their experience with the NOCC and confirm their level of participation.
Feedback from the member cities contacted was generally positive, highlighting the NOCC’s networking and marketing opportunities. Staff learned that the cities of La Palma and Stanton had, at one time, been members of NOCC but had subsequently discontinued their $5,000 annual memberships. Stanton is currently in discussion with NOCC regarding other types of business and economic partnerships, but at a $5,000 annual level, not at the program level that NOCC is proposing for La Habra. The cities of Buena Park and Fullerton continue to maintain their annual membership status with NOCC, with Fullerton paying an annual membership cost at the $5,000 level, and Buena Park paying an annual membership cost of $5,050.
Based on information found on NOCC's website, if La Habra businesses were interested in joining the NOCC on their own, there are several membership tiers available to them based on business size and type, providing flexible options for local businesses to engage directly with the NOCC. These options range in price from $475 for small businesses and in-home startups, to $1,600 for global companies and large non-profit organizations. The NOCC also offers a ribbon cutting and grand opening package for $205 for members wishing to celebrate significant business milestones. This package includes ceremonial ribbon and oversized scissors, event photography, event promotion, and invitations extended to elected officials and Chamber Board Members. From the information provided by NOCC, it appears that La Habra businesses can choose to join the NOCC today, with or without the City of La Habra enrolling to become an NOCC member entity.
The Small Business Strategic Growth proposal presented by the NOCC is a new model that would require City Council policy direction, as it would involve a significant allocation of General Fund resources to subsidize private businesses' memberships in a chamber of commerce. Additionally, the program being proposed by NOCC has not been implemented in any of the four cities currently in NOCC’s regional coverage area, which would make the City of La Habra the first to implement this new program model. Due to these factors, along with the considerable proposed annual cost to the City, staff does not recommend that the City Council consider NOCC's Small Business Strategic Growth program option at this time. Should the proposed program be successfully implemented in one of NOCC's other longer-standing member cities, the City Council could direct staff at a later date to reevaluate the program's effectiveness, receive feedback from the cities that have implemented the program, and reconsider the proposal from the NOCC at that time. Doing so would allow the City Council and staff to better assess the program’s value and potential benefits by being able to utilize actual confirmed program results.
If the City Council is interested in a trial membership with NOCC, then the existing $5,000 per year “municipal entity” membership option would be far less costly to the City and would allow City Council and staff to evaluate the potential benefits of a membership, the responsiveness of NOCC to both the City’s needs and the needs of La Habra businesses, and the effectiveness of their small business outreach and support programs.
Staff then asked how the other four cities in NOCC’s region participated in their chamber. Mr. Gregson indicated that the Small Business Strategic Growth program is new and that there were no cities currently enrolled in this particular program; however, he did indicate that at least two other cities are currently evaluating a similar NOCC proposal. Mr. Gregson indicated that the cities in NOCC's regional coverage area have, in the past, participated with NOCC as “municipal entities” at an annual membership cost of $5,000. Under this alternate membership model, a city could join as a member of the NOCC and their local businesses could opt to individually pay to join the NOCC if they wished to receive member benefits. Mr. Gregson confirmed that this $5,000 municipal entity membership option is available to the City of La Habra, which would allow the City to establish a membership with NOCC and participate in regional business initiatives at a far lower annual cost.
Following the meeting with NOCC, staff contacted the four Orange County cities that currently are, or have previously been, dues paying members of the NOCC (Fullerton, Buena Park, Stanton, and La Palma), to solicit feedback on their experience with the NOCC and confirm their level of participation.
Feedback from the member cities contacted was generally positive, highlighting the NOCC’s networking and marketing opportunities. Staff learned that the cities of La Palma and Stanton had, at one time, been members of NOCC but had subsequently discontinued their $5,000 annual memberships. Stanton is currently in discussion with NOCC regarding other types of business and economic partnerships, but at a $5,000 annual level, not at the program level that NOCC is proposing for La Habra. The cities of Buena Park and Fullerton continue to maintain their annual membership status with NOCC, with Fullerton paying an annual membership cost at the $5,000 level, and Buena Park paying an annual membership cost of $5,050.
Based on information found on NOCC's website, if La Habra businesses were interested in joining the NOCC on their own, there are several membership tiers available to them based on business size and type, providing flexible options for local businesses to engage directly with the NOCC. These options range in price from $475 for small businesses and in-home startups, to $1,600 for global companies and large non-profit organizations. The NOCC also offers a ribbon cutting and grand opening package for $205 for members wishing to celebrate significant business milestones. This package includes ceremonial ribbon and oversized scissors, event photography, event promotion, and invitations extended to elected officials and Chamber Board Members. From the information provided by NOCC, it appears that La Habra businesses can choose to join the NOCC today, with or without the City of La Habra enrolling to become an NOCC member entity.
The Small Business Strategic Growth proposal presented by the NOCC is a new model that would require City Council policy direction, as it would involve a significant allocation of General Fund resources to subsidize private businesses' memberships in a chamber of commerce. Additionally, the program being proposed by NOCC has not been implemented in any of the four cities currently in NOCC’s regional coverage area, which would make the City of La Habra the first to implement this new program model. Due to these factors, along with the considerable proposed annual cost to the City, staff does not recommend that the City Council consider NOCC's Small Business Strategic Growth program option at this time. Should the proposed program be successfully implemented in one of NOCC's other longer-standing member cities, the City Council could direct staff at a later date to reevaluate the program's effectiveness, receive feedback from the cities that have implemented the program, and reconsider the proposal from the NOCC at that time. Doing so would allow the City Council and staff to better assess the program’s value and potential benefits by being able to utilize actual confirmed program results.
If the City Council is interested in a trial membership with NOCC, then the existing $5,000 per year “municipal entity” membership option would be far less costly to the City and would allow City Council and staff to evaluate the potential benefits of a membership, the responsiveness of NOCC to both the City’s needs and the needs of La Habra businesses, and the effectiveness of their small business outreach and support programs.
FISCAL IMPACT/SOURCE OF FUNDING:
There are no funds budgeted in the FY 25/26 adopted budget for membership to any local or regional chamber of commerce. Depending on the direction provided by City Council, it will be necessary to appropriate funding from the General Fund to do so.
The new membership program proposed by NOCC will cost the City between $120,000 and potentially as much as $247,600 in the first year, and a minimum of $100,000 each subsequent year, assuming that the City is charged for a minimum of 1,000 businesses at $100 per business. The City's annual cost will increase if the number of businesses enrolled is higher than the 1,000 minimum that was proposed. For example, if 2,000 businesses are enrolled, then the City's annual General Fund cost would be $200,000. If City Council directs staff to pursue this proposed program option, it will be necessary to appropriate funding from General Fund reserves to fund the first year of the new program cost.
Should the City Council direct staff to have the City join NOCC as a "municipal entity", the annual cost would be $5,000 and there are sufficient budgeted funds in the City's General Fund program contingency budget to cover this cost.
The new membership program proposed by NOCC will cost the City between $120,000 and potentially as much as $247,600 in the first year, and a minimum of $100,000 each subsequent year, assuming that the City is charged for a minimum of 1,000 businesses at $100 per business. The City's annual cost will increase if the number of businesses enrolled is higher than the 1,000 minimum that was proposed. For example, if 2,000 businesses are enrolled, then the City's annual General Fund cost would be $200,000. If City Council directs staff to pursue this proposed program option, it will be necessary to appropriate funding from General Fund reserves to fund the first year of the new program cost.
Should the City Council direct staff to have the City join NOCC as a "municipal entity", the annual cost would be $5,000 and there are sufficient budgeted funds in the City's General Fund program contingency budget to cover this cost.
GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
This item is consistent with the following General Plan Goals:
- ED 1: Competitive Strength and Diversification. Diverse mix of business activity that serves consumers within the City and surrounding communities.
- ED 2: Business Attraction, Retention and Assistance. Responsive support of new and expanding businesses within the community.
- Goal 5: Development Activity and Business Assistance
- Objective D: Continue to improve the City’s business retention and expansion program.