Staff Report
PREPARED BY: MONICA RENN
Economic Vitality Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Community Development
Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
TOWN COUNCIL REPORT
MEETING DATE: 06/04/2019
ITEM NO: 10
DATE: MAY 29, 2019
TO: TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE AN ANNUAL AGREEMENT FOR
SERVICES WITH THE LOS GATOS CHAMBER OF COMMERCE TO MANAGE THE
TOWN’S INFORMATION CENTER AND ASSIST WITH THE COORDINATION OF THE
LEADERSHIP LOS GATOS PROGRAM, FOR A TOTAL CONTRACT AMOUNT NOT TO
EXCEED $45,000.
RECOMMENDATION:
Authorize the Town Manager to execute an annual agreement for services with the Los Gatos
Chamber of Commerce to manage the Town’s Information Center and assist with the
coordination of the Leadership Los Gatos program for a total contract amount not to exceed
$45,000.
BACKGROUND:
In 2001, an agreement for services with the Los Gatos Chamber was first executed to include
the operation and management of the Town’s Information Center as well as coordination of the
Town’s annual Leadership Los Gatos program. Annual renewals with modifications as needed
have been approved by the Council every year thereafter.
In FY 2017/18 the contact amount for the Visitor’s Center was $35,000 and Leadership was
contracted at a not to exceed cost of $15,000 inclusive of a coordination fee and all program
expenses. In FY 2018/19, the Chamber requested an increase in funds for the Visitor’s Center in
the amount of $5,000 noting “higher rent, minimum wage, social media expenses, higher
printing costs and a subscription to Survey Monkey” to assist with downtown surveys. The
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SUBJECT: ANNUAL AGREEMENT WITH THE LOS GATOS CHAMBER OF COMMERCE
May 29, 2019
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BACKGROUND (cont’d):
Council approved this increase to the Visitor’s Center cost for services, along with the
Chamber’s request for a $5,000 subsidy to support their community vitality efforts. With
regards to Leadership Los Gatos program in FY 2018/19, the Chamber requested to have many
of the coordination responsibilities shifted to the Town to spend less time on the program. This
request was also accommodated, and the coordination fee was reduced to $3,000 with the
Town subsidizing the program expenses beyond the amount collected from tuition.
DISCUSSION:
Attachment 1 is the proposed Agreement for Services with the Chamber of Commerce, and
contained within it, Exhibit A is the recommended scope of services for FY 2019/20.
After verbal consultation with the Chamber in May, staff understood a not to exceed amount of
$45,000 to be agreeable, thus included it within the proposed budget considered by the Council
on May 21, 2019. At that time, the specifics of the Scope of Services were not finalized as the
Chamber was still considering their level of involvement with the Leadership Los Gatos
program.
Staff continued to work with the Chamber to establish an agreeable Scope of Services for
Leadership under the assumption that the program scope for the Chamber would likely be
reduced, as previous conversations indicated.
On May 29, 2019, prior to the distribution of this staff report, the Chamber provided the
documentation contained in Attachment 2 requesting increased funding in the not to exceed
amount of $62,000 for both the Visitor’s Information Center and Leadership Los Gatos as
follows:
• $55,000 for the Visitor’s Information Center, an increase of $15,000 over last year’s
agreement; and
• A not to exceed $7,000 for the coordination of Leadership Los Gatos with $5,000 as the
coordination fee and a not to exceed amount of $2,000 for expenses beyond tuition.
The Council may wish to consider the Chamber’s request in Attachment 2 as an alternative to
staff’s recommendation.
Included in Attachment 1, Exhibit A are no substantial changes to the Scope of Services for the
Visitor’s Center as core services remain the same and the Town supports the Chamber’s
discretion to be nimble in using relevant marketing resources and shifting marketing material
product type based on demand and relevancy. While in conversation with the Chamber, the
Executive Director has expressed an interest to move away for printing multiple maps and
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SUBJECT: ANNUAL AGREEMENT WITH THE LOS GATOS CHAMBER OF COMMERCE
May 29, 2019
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DISCUSSION (cont’d):
guides to maintaining this information on other platforms such as their website and social
media. The Scope of Services does not require materials to specifically be printed, rather is
focused on information availability and accessibility.
With respect to Leadership Los Gatos, the Chamber and the Town have been partners in the
program’s curriculum, speakers, marketing, and execution since its inception in 2000. The
Leadership Los Gatos program is designed to engage, educate, and develop service-oriented
individuals who live and/or work in Los Gatos for leadership roles in the community and
neighborhood organizations, schools, places of worship, and Town government. The program
includes eight sessions and participants are required to apply and pay tuition for the program.
Considering the Chamber’s request for more funds for the coordination of Leadership Los
Gatos, and still working within the $45,000 earmarked within the budget for FY 2019/20, staff is
recommending that the coordination fee be increased to $4,000, with a not to exceed amount
reduced to $1,000 for expenses beyond that of the tuition collected.
Staff believes this not to exceed amount could be sufficient to cover costs beyond the tuition
without impacting the program. Typically, reimbursement amount beyond tuition is about
equal to or less than $1,000. Providing this shift in the allotment of funds will keep the
proposed budget from being increased while providing the Chamber with additional
compensation for coordination.
Outside of the terms of this agreement, the Council granted the Chamber of Commerce a one-
time $10,000 subsidy for 2019 summer community events in Downtown Los Gatos and
provided financial resources in response to its requested $22,000 of “seed money” to aid in the
efforts of forming a Property Business Improvement District.
CONCLUSION:
The Chamber of Commerce is a key community partner that promotes and supports businesses
in Los Gatos through events and programs that benefit businesses beyond their membership.
Thus, staff is recommending that the Town Council authorize the Town Manager to execute an
agreement for services with the Los Gatos Chamber of Commerce in an amount not to exceed
$45,000 with the adjustments discussed in this report.
FISCAL IMPACT:
Funding for this agreement, not to exceed $45,000, has been included in the Town’s FY 2019/20
Proposed Operating and Capital Budget.
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SUBJECT: ANNUAL AGREEMENT WITH THE LOS GATOS CHAMBER OF COMMERCE
May 29, 2019
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ENVIRONMENTAL ASSESSMENT:
The proposed agreement is not a project under the California Environmental Quality Act and no
environmental analysis is required.
Attachments:
1. Los Gatos Chamber of Commerce Agreement with Exhibit A, Scope of Services FY 2019/20
2. Email from the Executive Director of the Chamber of Commerce dated May 29, 2019 with
five exhibits, A-E.