City to negotiate with the Chamber after questioning Measure E stance

Chamber had favored bond against the council's wishes

Mayor opposes cutting ties

By Oakley Brooks

The Saratoga Chamber of Commerce's support from the city appears to be safe, after a scare that drew Chamber members out of the woodwork to rally for their organization's future.

Following the Chamber executive board's support of the highly contentious West Valley-Mission College Community district's bond measure, members of the city council--which has unanimously opposed the bond measure--seriously questioned whether the city should continue to work with and fund the Chamber.

For the moment, however, the city has decided to negotiate a new contract with the nonprofit business advocacy group in the hope that the two sides can forge a new relationship.

"This is not the time to cut the Chamber off," Mayor Nick Streit said on Feb. 12. A proven negotiator in the city, Streit recently became the city council's liaison to the Chamber, and said he "wants the opportunity to work with the Chamber board."

On Feb. 6, Chamber President-Elect Jean Funari had announced amid a heated hearing that the Chamber's executive committee supported West Valley-Mission's $268 million Measure E. Pressed on whether the six-member executive board backed the athletic-facility component of the bond, which is opposed by many Saratoga residents, Funari could not give a definite answer.

The Chamber's announcement led council members Stan Bogosian and Ann Waltonsmith to later say they would like to discuss a possible termination of financial and in-kind support the city gifts to the Chamber each year.

Yearly cash payments to the Chamber have totaled as much as $3,400 during the last decade; last year the city paid $2,933.

The city also provides staffing, supplies and event insurance for the annual Celebrate Saratoga street fair, which typically earns the Chamber about half of its $110,000 operating budget. Additionally, the city houses the Chamber at a small historical building along Highway 9 for $1 per year.

City staff members estimate Saratoga's yearly contribution to the organization to be worth $30,000-$40,000.

But the relationship between the two bodies has been strained in recent years, as they've taken opposite sides on several hot-button political issues. Dating back to the late 1990s, the Chamber came out against the prevailing city council view in favoring expansion of the Mountain Winery, and a new mixed-use development at the Azule Crossing site in the Gateway Region. The Chamber also opposed a moratorium on new residential growth in the city's business districts, passed by the present council and later city voters in 2000.

The two sides failed to renegotiate a contract in early 2000, after the city rejected a Chamber request for an increase of cash payments to $10,000.

The rift grew this past year, as Councilwoman Waltonsmith, the council's former liaison to the Chamber, criticized the way the board operated and its handling of former Executive Director Patti O'Brien. O'Brien resigned in late July after four months on the job, saying the board had limited her ability to improve the Chamber.

With the Chamber's future apparently hanging in the balance Feb. 12, many of the organization's members and supporters, from business owners to retired individuals, tried every way they could to prevent an end of city support. Some members pleaded with the council--"Without the city it would be very difficult to put on Celebrate Saratoga," said Pat Andreson.

Others appealed to reason--"You're shooting yourself in the foot if you withdraw funding," Ray Froess said.

And still others were frustrated that the council would even consider terminating funding.

"Keep doing a bad job," said LeAnne Hernandez, a Saratoga Realtor who likened the city's actions regarding the business community to "terrorism."

Chamber members even called on Mike Fox Jr., one of the vice chairmen of the San Jose-Silicon Valley Chamber of Commerce, to enlist his support in discouraging the council from cutting off support.

Chamber detractors wondered about the underhandedness of its handling of political issues in the city. Planning commission Chairwoman Cynthia Barry suggested that the Chamber's decision on the college district bond was swayed by West Valley President Marchelle Fox's position as a member of the Chamber board. Barry also questioned the Chamber's support of the Mountain Winery expansion, just before former Chamber Executive Director Abby Krimotat had left the organization to work at the winery.

Councilman Bogosian said he could not overlook the Chamber's history of political action, in pushing to cut off funding to the Chamber. He said the city had spent hundreds of thousands of dollars in legal fees trying to limit growth at the Mountain Winery and opposing the athletic facility expansion that will be part of this year's college district bond.

"I don't think it's a good business decision to use taxpayer money on an organization that has constantly opposed basic quality of life issues for our residents," Councilman Bogosian said.

Vice Mayor Evan Baker agreed that the Chamber had overstepped its bounds in becoming too politically active in the city.

But the tide of the meeting turned when Vice Mayor Baker and Mayor Streit advocated for more negotiation with the Chamber. And when Waltonsmith agreed to support further dialogue, that was enough--with Councilman John Mehaffey absent--to avoid an immediate split between the two bodies.

Chamber supporters emerged from the Feb. 12 meeting looking deeply relieved, as if they'd just removed some heavy burden from their backs.

"We're going to start fresh," said Dick Wood, a former investment advisor and a Chamber member for 18 years.

The road ahead will not be an easy one. For nearly 17 months, the business group has operated without a formal contract with the city, and the previous contract only partially defined the roles of the city and the Chamber.

Councilman Bogosian said following the Feb. 12 meeting, that he would like to clearly designate the Chamber's duties in a new contract. Surrounding cities surveyed by Saratoga staffers have outlined specific tasks for local chambers in exchange for city support.

In early 2000, council members had talked about installing more performance standards into a new contract. But Chamber Executive Director Kristin Davis would not like the organization to be judged on the growth of its membership roles--numbers which council members Waltonsmith and Bogosian expressed concern about on Feb. 12. Davis said recently that membership numbers fluctuate every year based on ups and downs of the local economy and are not a good indication of the organization's health.

The city and business group must also work out an agreement for the aging former McWilliam's House--the Chamber headquarters. The city has not been able to find out for certain if the building was gifted to Saratoga on the condition that it be used by the Chamber, nor can the city get a definite square-footage for the space. That complicates a rental agreement and overshadows needed repairs to the building.

The two bodies will also have to develop some sort of phasing plan that will eventually make the Chamber financially independent, which both Davis and all four city council members present on Feb. 12 said they support.

"I think we need to do a lot of homework," said Mayor Streit.

The two sides have taken a step toward building a new relationship. Councilwoman Waltonsmith, who is a professional psychologist, said Feb. 12 that both parties would have to air their grievances as in "a family fight."

Chalk the Feb. 12 meeting up as the initial counseling session.

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