Council authorizes $88,000 Chamber contract, directs staff to explore expanding to $108,000

The Los Gatos Town Council voted to authorize an annual services agreement with the Los Gatos Chamber of Commerce at a base compensation level of $88,000 and directed staff to work with the Chamber and return in August with an amendment that could increase the allocation up to $108,000.

Economic Vitality Manager Monica Ren reviewed the contractual history: a pre‑COVID base of about $55,000, a temporary increase to $88,000 supported by ARPA, and an ongoing request from the Chamber to raise town support further. Jennifer Lynn, CEO of the Chamber, said the program’s full operating cost in 2025–26 was roughly $154,000 and that the town’s current share covered about 57 percent of that work.

Council members debated multiple options for next steps: maintain the current $88,000 subsidy while reimagining the town’s economic‑vitality strategy; consider a block‑grant model that gives the Chamber flexibility to pursue agreed goals; or tie incremental funding to measurable revenue increases such as Transient Occupancy Tax (TOT) above an established baseline. Several council members said they support strategic reform and asked staff to coordinate with the Chamber on measurable goals and funding sources.

The council approved the manager’s recommendation to authorize the $88,000 contract now and return with a proposed amendment for up to $108,000. Staff said the additional $20,000 (if approved later) would require a funding source and that the amendment would be brought back with proposed budget adjustments.

Council and staff emphasized the Chamber’s role in destination marketing, visitor services and events — and said they want clearer metrics and a more holistic economic‑vitality approach going forward.