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Staff Report Chamber Annual Contract PREPARED BY: Monica Renn Economic Vitality Manager Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, 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: 06/07/2022 ITEM NO: 9 DATE: May 27, 2022 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Authorize the Town Manager to Execute an Agreement for Services with the Los Gatos Chamber of Commerce to Manage the Town’s Visitors Information Center Including a Visit Los Gatos Website, Related Social Media Pages, and Assist with Related Community Vitality Initiatives as Outlined in the Scope of Services in an Amount Not to Exceed $55,000. RECOMMENDATION: Authorize the Town Manager to execute an Agreement for Services with the Los Gatos Chamber of Commerce to manage the Town’s Visitors Information Center including a Visit Los Gatos Website, related social media pages, and assist with related community vitality initiatives as outlined in the Scope of Services in an amount not to exceed $55,000. BACKGROUND: In 2001, an agreement for services with the Los Gatos Chamber of Commerce was first executed to include the operation and management of the Town’s Visitors 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. The contract amount has increased over time. Most notably for Fiscal Year (FY) 2019/20, the amount increased from a not to exceed amount of $45,000 to a not to exceed amount of $60,000, allocated as $55,000 for Visitors Information Center Services and $5,000 for the assistance with the Town’s Leadership Los Gatos program. This FY 2019/20 agreement for services included a Scope of Services with deliverables and bi-annual reporting required to be submitted by the Chamber accounting for the services rendered. PAGE 2 OF 4 SUBJECT: Annual Agreement for Services with the Chamber of Commerce for the Town’s Visitor Information Center, FY 2022/23 DATE: May 27, 2022 BACKGROUND (continued): For the following fiscal year (FY 2020/21), the Town Council provided $55,000 to the Chamber as a subsidy for managing the Town’s Visitor’s Information Center and assisting with related community vitality initiatives. This switch was made to provide the Chamber of Commerce with flexibility during the COVID- 19 pandemic. The Town Council understood that the shopping, dining, and entertainment environment was drastically different than typical years, thus approved the subsidy so that the Chamber could remain nimble and serve the community as they saw fit through the various stages of the pandemic. Additionally, no new Leadership Los Gatos class was established in FY 2020/21. On May 4, 2021, the Town Council allocated $55,000 of the American Rescue Plan Act (ARPA) funds to the Chamber of Commerce to assist with emergency destination marketing to provide a jumpstart to community vitality efforts. The destination marketing effort included: the creation of a “one stop” branded website, Visit Los Gatos; social media content development; video production of a Visit Los Gatos promotional video; investment into Visit California content; media relations, and “Fam” trips which are local tours for hotel and hospitality staff to get to know the area in order to make recommendations to guests. When this money was allocated, the Town Council noted that this annual agreement for services would be forthcoming and that it was necessary to show a distinction between the services rendered under the funds allocated for the emergency destination marketing, and the services rendered under the Chamber’s annual agreement to facilitate the Town’s Visitors Information Center. Subsequently, on June 15, 2021, the Town Council approved the annual agreement for services for FY 2021/22, for the Chamber of Commerce to operate the Town’s Visitors Information Center (Attachment 1) that included refreshed deliverables in the Scope of Services, which were developed in collaboration with the Chamber, and focused on website and social media efforts. Leadership Los Gatos was not included for FY 2021/22 as the program had not returned due to the ongoing COVID-19 pandemic. Thus, as directed by the Town Council, separate agreements for each funding allotment were executed to provide clarity and distinction of service deliverables. A time extension to the emergency destination marketing agreement is also being considered by the Town Council at this meeting, under a separate item. DISCUSSION: On May 17, 2022, the Town Council approved a Town budget for FY 2022/23 that included $55,000 to fund the annual agreement with the Chamber of Commerce for its services to PAGE 3 OF 4 SUBJECT: Annual Agreement for Services with the Chamber of Commerce for the Town’s Visitor Information Center, FY 2022/23 DATE: May 27, 2022 DISCUSSION (continued): operate the Town’s Visitors Information Center, thus staff is bringing forward the agreement for Town Council’s consideration and approval (Attachment 2). The draft agreement and scope of services for FY 2022/23 recommends a status quo draft agreement and scope of services, for the Chamber of Commerce to continue providing services for the Town’s Visitors Information Center as agreed upon for FY 2021/22. The Chamber of Commerce provided a written request to staff to increase the amount of funds the Town provides from $55,000 to $88,500 for the Visitor Information Center with modified services. Based on the executed agreement and scope of service from FY 2021/22, apart from street pole banners, the services for which the additional funds are being requested are covered as cores services in the current agreement including social media and the management of a branded visitor’s website. During FY 2021/22, the Chamber worked to create a Visit Los Gatos brand and website, and related social media accounts, and partnered with the Town to host merchant meetings throughout the year to facilitate open communication on topics such as parklet vendors, retail safety and awareness, and the Town’s employee parking program, all of which meet the services outlined in the current agreement. With the renewal of the annual contract for services, the Town is seeking to contract with the Chamber of Commerce for the specific services outlined in the FY 2022/23 draft agreement and scope of services and looks forward to the continued partnership. CONCLUSION: Authorize the Town Manager to execute an Agreement for Services with the Los Gatos Chamber of Commerce to manage the Town’s Visitors Information Center including a Visit Los Gatos Website, related social media pages, and assist with related community vitality initiatives as outlined in the scope of services in an amount not to exceed $55,000. FISCAL IMPACT: Funds for this agreement for services have been incorporated in the FY 2022/23 budget. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. PAGE 4 OF 4 SUBJECT: Annual Agreement for Services with the Chamber of Commerce for the Town’s Visitor Information Center, FY 2022/23 DATE: May 27, 2022 Attachments: 1. FY 2021/22 executed Agreement for Services for the Chamber of Commerce to manage the Town’s Visitors Information Center 2. Draft Agreement for Services for the Chamber of Commerce to manage the Town’s Visitors Information Center for FY 2022/23 3. Proposal from the Chamber of Commerce for increased funding for the Chamber to manage the Town’s Visitors Information Center