Staff Report Events and Dest Marketing_
PREPARED BY: Monica Renn
Economic Vitality Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development
Director, Parks and Public Works Director, Police Chief, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 05/04/2021 ITEM NO: 14
DATE: April 29, 2021
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider Requests for Additional Funding for Special Events and Destination
Marketing and Other Town Needs, and Direct Staff on Next Steps.
RECOMMENDATION:
Staff recommends that the Town Council consider requests for additional funding for special
events and destination marketing and other Town needs, and direct staff on next steps.
BACKGROUND:
Prior to the COVID-19 Pandemic, the Town had allocated funds for a streetscape project in
Downtown Los Gatos in the amount of approximately $1.9 million. Once it became apparent
that the pandemic would be long-term, non-profit organizations would need extra support, and
businesses would need assistance to offer outdoor service options, the Town Council
reallocated the streetscape fund to become the Economic Recovery Fund (ERF).
From this funding source, the Town has extended community grants to non-profits serving
vulnerable community members, paid for the implementation and on-going rental of krail to
form the Temporary Krail Parklet Program, provided a 50% grant match program for private
business accessibility upgrades to the temporary krail parklets, funded a holiday light campaign,
earmarked grant funding for a Semi-Permanent Parklet program, purchased pre-approved
architecture plans and subsidized the engineering for Semi-Permanent Parklets, paid for mask
and public health community awareness signage, provided 50% relief of fees for new and
modified Conditional Use Permits (CUP), and offered rent forgiveness to tenants in Town
owned properties.
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BACKGROUND (continued):
Additional funds from the Federal Government, known as the American Rescue Act Plan Act
(ARPA), became available in March of 2021 and at its April 6, 2021 meeting, the Town Council
allocated a portion of these dollars to additional economic recovery initiatives, non-profit
grants assistance, and rent forgiveness. The chart below offers a snapshot of the allocated
funds from both the ERF and the ARPA to date.
PAGE 3 OF 9 SUBJECT: Consider Funding Requests and Other Town Needs DATE: April 29, 2021
BACKGROUND (continued):
Aside from the direct funding of programs, the Town Council adopted an Economic Recovery
Resolution in June of 2020 with the most recent modifications being approved at the April 20,
2021 Council meeting. This resolution provides support and streamlining for several sectors of
the Town’s business community, encourages businesses attraction and retention, reduces CUP
fees by 50%, reduces parking requirements in private commercial parking lots to support
private parklets and outdoor service areas, and provides flexibility for personal services,
markets and other non-restaurant conditional uses. Through this resolution and the dedicated
funding to the economic recovery initiatives outlined previously, the Town Council continues to
demonstrate its commitment to economic recovery in Los Gatos by remaining nimble and
adaptive to the dynamic economic environment.
At recent Town Council meetings, including April 6 and April 20, 2021, the Chamber of
Commerce and other Los Gatos business stakeholders provided input advocating for and
supporting many of the economic recovery initiatives outlined above and have requested
additional funds be allocated for expanded economic recovery and community vitality
initiatives including Town-wide special events, a weekly closure of N. Santa Cruz Avenue in
downtown, and a destination marketing campaign to draw visitors from across the region to
Los Gatos. Thus, this discussion is being brought forward for the Town Council’s consideration
and direction.
DISCUSSION:
Outlined in this report are economic recovery initiatives and other related requests that have
come forward from the Chamber of Commerce and business stakeholders over the last several
weeks. The Council may wish to consider these suggestions, as well as others that may be
presented during the conversation and provide direction as to how to evaluate and consider
these requests in light of pending Fiscal Year 2021/22 Budget considerations and the Town’s
annual community grant program. The Council may identify principles to guide its future
decision-making on such requests. Alternatively, the Council may choose to fund one or more
of the requests, specifying either the ERF or ARPA funds. Money from the ERF may be allocated
at the Council’s discretion; however, eligibility parameters exist for the appropriate use of ARPA
funds. From staff’s perspective, ARPA funds would not currently qualify for use in special event
subsidies.
Destination Marketing
The Chamber of Commerce has requested funds to coordinate a destination marketing
campaign for Los Gatos. The scope of this proposed campaign remains unclear including how
broad of a reach is intended, what marketing channels are being targeted, how marketing of all
Town businesses beyond Chamber members would be executed, or how much funding is
needed. Through conversations with industry professionals and at the recent joint study
session of the Town Council and Planning Commission on February 23, 2021, it was shared that
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DISCUSSION (continued):
economic recovery broadly is expected to take a hometown approach initially, and that
consumers are demonstrating the desire to patronize local businesses more than ever, opting
to remain close to home and support their local business community.
If the Council is in favor of a marketing campaign, one strategy may be to start more locally to
promote Los Gatos businesses Town-wide as safe, open, and welcoming to the community on a
smaller scale, then expand the regional reach as restrictions are lifted and consumer behavior
supports it. While the State of California has declared it hopes to reopen the economy on June
15, 2021 if specific metrics are met, the County of Santa Clara has not yet confirmed that the
County will see a full re-opening nor defined the scope of a full re-opening of the economy.
The Town and Chamber have an annual agreement for services in effect through June 30, 2021
with plans to present the Town Council with a status quo renewal for FY 2021/22 at a Town
Council meeting in June. This agreement provides the Chamber with $55,000 in funding to
support Visitor Information and Attraction Services. It is required that these funds benefit the
Los Gatos business and tourism community as a whole and not solely those members of the
Chamber of Commerce. It is unclear how a destination marketing campaign may differ from
the attraction services currently taking place as a part of the agreement for services.
Prior to 2020, the annual contract for services with the Chamber required annual reports with
measurable deliverables outlined for the Town Council and included the Chamber’s assistance
in coordinating Leadership Los Gatos; however, given the uncertain environment of the
pandemic the Town removed the requirement for specific deliverables, did not facilitate a
Leadership Los Gatos class, and still provided the full amount of funding in the form of a subsidy
to the Chamber under the following Scope of Services for FY 2020/21:
Scope of Services. Chamber shall provide Visitor Information and Attraction Services in
appropriate formats including web, social media, print maps and via in person or phone
conversations that promote the Town of Los Gatos as a premier visitor’s destination. All
services rendered under this agreement shall promote all businesses located within Town
boundaries, regardless of their Chamber membership.
If additional marketing beyond what is currently being performed by the Chamber as a part of
the agreement for services is desired by the Council, such an endeavor would need to be
distinctly different from the Chamber’s current efforts or reorganized to avoid duplicated
efforts, and reflective of the Town’s goals and initiatives. Thus, if the Council does wish to
embark on a marketing campaign to engage the community locally and/or regionally, this may
be best done with a project managed by Town staff utilizing third party marketing professionals
selected and managed by the Town.
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DISCUSSION (continued):
Special Events
The Chamber of Commerce and other community stakeholders have inquired about the ability
to host community special events that offer the opportunity for residents and visitors to engage
in safe, in-person celebrations. Beyond this request, the Chamber has requested that the Town
waive all Special Event Permit fees, Park Use fees, and provide a subsidy for event costs
including street closures.
The Town has been accepting Special Event Permit applications throughout the various stages
of the pandemic within the parameters outlined in the Town Code Section 14.100.010 –
14.100.065, and remaining flexible with applicants should an event be unable to take place due
to COVID restrictions. It has been the responsibility of the applicant to ensure that their event
is in compliance with State and County regulations and provide this information during the
application process. The event organizers have been given the opportunity to change the date
of the event or place the application on hold with the Town for future consideration should
Health Orders or other conditions of the pandemic prevent the event from taking place. These
allowances save applicants money because they do not need to file a new special event permit
in these instances.
Special Event Permit applications must be filed at least 60 days prior to an event, and no more
than a year before. For multi-day, or series events, such as the same weekly event for the
duration of a couple of months, one Special Event Permit application may suffice if the full
scope of the event series is presented with the original submittal. Application fees are
dependent upon the applicant’s organizational structure (non-profit versus for-profit), and if
the event is new or re-occurring. The non-refundable application fee is due at the time of filing;
however, may be reapplied to an event with a change of date, or change of scope necessary to
abide by Health Orders in effect.
Currently, the County of Santa Clara Health Orders follow those set forth by the State within the
Blueprint for a Safer Economy, which currently has Santa Clara County placed in the Orange
Tier. Attachment 1 provides the State’s full Guidance for Gatherings, updated on April 15,
2021. Event allowances and capacities vary based on the type of event, venue, and other
considerations; however, remain quite restrictive as they pertain to large public events.
Given this guidance, the Town made the decision to cancel its annual 4th of July event for 2021.
Residents and visitors are still invited to organically gather in the parks and other public spaces
throughout the summer in a fashion that is within the current Health Orders and supports their
own comfort level for gatherings; however, the Town is opting out of formally planning or
promoting large Town-sponsored and coordinated events at this time.
PAGE 6 OF 9 SUBJECT: Consider Funding Requests and Other Town Needs DATE: April 29, 2021
DISCUSSION (continued):
As the Town Council considers stakeholder requests for funding for other special events or large
gatherings, it may be important to consider the structure and intent of the events and how
components such as food/drink booths and entertainment may create environments that are
difficult to meet Public Health Orders, lending themselves to an environment that may be
perceived as less than COVID safe such as:
• Organized events that promote eating and drinking outside of the confines of a seated
restaurant setting may create a situation where it is difficult to maintain social distancing
and mask requirements; and
• Events with live entertainment with or without a stage typically encourage guests to gather
close to the entertainment source, making it difficult to social distance.
Road Closure Events
The Chamber has requested an event that regularly closes N. Santa Cruz Avenue every Thursday
from late spring to early fall. While this could create more space for residents and visitors to
stroll through and experience downtown, frequent closures of the road could create concerns
for nearby residents and traffic flow. Additionally, adding elements similar to those listed
above could change that intent and create less space per person as crowd size increases.
When N. Satna Cruz Avenue was part of the one-way pilot program in 2019, the traffic unable
to use N. Santa Cruz Avenue ended up on University Avenue and in the surrounding
neighborhoods, creating concerns for those residents and backed up traffic on the surrounding
streets. Historically, this has been tolerated by the community for one-off special events,
however a closure occurring once a week may not be as welcomed.
In 2018, the Town of Los Gatos created a pre-approved traffic plan for a road closure of N.
Santa Cruz Avenue between Main Street and Bachman Avenue. Creating this standard closure
plan allowed for a consistent approved traffic plan that could be provided at no cost to event
organizers and reduce the amount of staff time spent reviewing the engineering and safety
measures of each event. From this point, event organizers must contract with a third-party
traffic control vendor to provide the actual road closure services including set-up, breakdown,
equipment rental and other associated costs. The estimated cost of a street closure is between
$2,500 to $3,500 for a single day closure. The amount of work that is necessary to close and
reopen the street is the same regardless of the amount of time the street is closed. Expenses
associated with the length of the closure include paying for attendants to monitor the entrance
and exit points of the closure in case emergency vehicles need access beyond the barriers, and
this personnel time is not included in the cost estimate listed above.
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DISCUSSION (continued):
The closure of N. Santa Cruz Avenue may now be accomplished with a high degree of public
safety by utilizing the Town’s recently acquired portable anti-vehicle barrier system. However,
deployment of the two anti-vehicle barricades and eight bollards will require trained staff from
both Parks and Public Works and the Police Department. It is estimated that three to four Parks
and Public Works personnel and two Police Officers will be necessary to deploy the barriers and
bollards and will require four to five hours of staff time in addition to a large truck and a forklift.
If the Council is interested in subsidizing a road closure event or series of events, the Council
should specify a maximum dollar amount. Town staff resources are not available to do the
closure and reopening as an in-kind donation due to the programmed work and priorities of the
Town Council.
Events that entail a closure of N. Santa Cruz Avenue are usually grand in scale, attracting large
crowds, multiple vendors, and typically include the sales and service of alcoholic beverages,
which then require approved security personnel or Los Gatos-Monte Sereno Police Officers to
be on-site during the event. The cost of security or Town personnel is the responsibly of the
event organizer. Consideration of utilizing Police personnel to staff the actual event is currently
not a feasible option due to staffing constraints.
Simply closing the road as a large pedestrian thoroughfare was briefly experienced on the first
day of the temporary krail parklet installation when N. Santa Cruz Avenue remained closed for a
short period of time with no attractions or vendors. Many residents enjoyed the opportunity of
simply having more space to spread out, stroll, and experience downtown.
Other Town Needs
As the Council deliberates on these requests, it should consider other Town needs. In recent
conversations with local non-profits, most of the residents’ emergency needs for housing, food,
rent, and other assistance was met with the resources provided by the Town to date and other
funding sources. As the pandemic eases, it is uncertain what the future needs might be and
how the Town might continue to partner with the service providers serving these needs. The
Town may wish to hold back on allocating all of the remaining ERF or ARPA dollars to remain
flexible to meet this uncertain future. The Council could identify and maintain a minimum
balance to address these other Town needs.
CONCLUSION:
Staff is seeking Town Council’s direction on the requests made by the Chamber of Commerce
and other stakeholders regarding funding for events and destination marketing as follows:
• What principles would the Council like to use to evaluate and consider these and
potential future requests?
PAGE 8 OF 9 SUBJECT: Consider Funding Requests and Other Town Needs DATE: April 29, 2021
CONCLUSION (continued):
• To what extent should these requests go through the Town’s annual community grant
process? Would the Town Council wish to dedicate additional funding to the
Community Grant process, specifically to support safe and Health Order compliant
events that encourage economic and community vitality or other recovery initiatives?
This option would enable other organizations to compete for funds for their events.
• Would the Town Council like to allocate funds beyond the existing Chamber of
Commerce contract for services for destination marketing? If so, what is the scope of
the destination marketing being directed, how much funds shall be allocated, and from
which funding source?
• Would the Town Council like to dedicate funding to support special events coordinated
by the Chamber of Commerce? If so, what is the scope of the events being supported,
how much shall be allocated and from which funding source? ERF or other Town
resources may be discussed; however, ARPA funds do not qualify for this expenditure.
• Does the Town Council support a road closure of N. Santa Cruz Avenue solely to
achieve more outdoor space for visitors to stroll through and experience downtown? If
yes, how often and to what extent does the Town Council wish to dedicate funding to
support such closures? From which funding source shall Town resources be supported
for such closures?
• Does the Town Council support a road closure of N. Santa Cruz Avenue one day a week
for the duration of the summer, through Labor Day for special events? If yes, does the
Town Council wish to provide parameters around the scope of the special event
related to COVID, and to what extent does the Town Council wish to dedicate funding
to support such closures? From which funding source shall Town resources be
supported for such closures?
COORDINATION:
This report has been prepared in coordination with the Town Manager’s Office and the Police,
Community Development, Parks and Public Works, and Finance Departments.
FISCAL IMPACT:
The fiscal impact is dependent upon the actions taken by the Town Council. As outlined in the
background of this report, $1,873,530 has been dedicated out of the ERF, leaving $50,532
remaining for use; and, $3,626,898 has been dedicated out of the ARPA funds leaving
$2,061,732 available for specific economic recovery initiatives and pandemic related deficits.
PAGE 9 OF 9 SUBJECT: Consider Funding Requests and Other Town Needs DATE: April 29, 2021
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. State of California Blueprint for Recovery Guidelines related to Gatherings