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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 PAGE 2 OF 4 SUBJECT: ANNUAL AGREEMENT WITH THE LOS GATOS CHAMBER OF COMMERCE May 29, 2019 S:\COUNCIL REPORTS\2019\06-04-19\Chamber Contract\Staff Report Chamber Agreement FINAL.docx 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 PAGE 3 OF 4 SUBJECT: ANNUAL AGREEMENT WITH THE LOS GATOS CHAMBER OF COMMERCE May 29, 2019 S:\COUNCIL REPORTS\2019\06-04-19\Chamber Contract\Staff Report Chamber Agreement FINAL.docx 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. PAGE 4 OF 4 SUBJECT: ANNUAL AGREEMENT WITH THE LOS GATOS CHAMBER OF COMMERCE May 29, 2019 S:\COUNCIL REPORTS\2019\06-04-19\Chamber Contract\Staff Report Chamber Agreement FINAL.docx 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.