The Chamber last week signed a new lease agreement with a local property management firm for space in the building on 4485 Big Basin Way and moved into the new office this week.

"It's a positive step forward for all of us. This isn't a negative thing for anyone," said Kristin Davis, executive director of the Chamber.

In a letter signed by Davis and Chamber President David Hernandez, the Chamber said it expects "an increase in walk-in traffic and therefore an increase in referrals to our members" as a result of the new location being more visible.

Councilman Norman Kline, the new city liaison working with the Chamber, said he is happy for the Chamber and described their decision to act so quickly as "great."

Whereas the old house on 20460 Saratoga­Los Gatos Road measures 480 square feet, the new office provides the Chamber with 600 square feet of space. Included in this are restroom and kitchen areas that the Chamber now shares with two other tenants leasing space in the building. The Chamber had considered leasing this same space last year, Davis said.

"Even though it's going to be a different way of operating, I'm certain we're going to be able to adjust," she said.

Though the Chamber ultimately views this move as a step in the right direction, Davis admits to some sadness in leaving the historic house, where a photograph of the McWilliams family is displayed above the mantle. According to Davis, the Chamber has occupied the house for approximately 26 years.

"I hope that one day people will refer to it as the former place of the Chamber, too," she said in reference to the number of people who have come to know the building as the McWilliams house.

Since last February, the Chamber has been in discussion with council members to determine its relationship with the city. Both were seeking a rental lease agreement for use of the city-owned building, a fees contract for service the Chamber provides to the city, and to determine who bears responsibility for the annual Celebrate Saratoga! street fair.

Discussion resumed earlier this month, with representatives from the city offering to rent the building to the Chamber for $480 per month (or $1 per square foot) for up to six months, according to Davis. Last year, the city had offered to lease the house for about $790 per month.

Davis declined to comment on how much the Chamber is paying for the new location.

One reason to have the house vacant is to give the city a chance to fix up the historic building, Kline said. In October, Davis had mentioned that a plumber had been in to fix leaks in the house but that repairs were still needed on the front steps and porch.

The city council has maintained that the Chamber's endorsement of the Measure E bond, which the council opposed, had nothing to do with the decision to reexamine the city's relationship with the Chamber, but that claim was questioned last year.

The two agencies have butted heads over requests from some council members in the past that the Chamber comply with the state's open meeting law and that they allow council members onto the Chamber's board of directors and executive committee. As a private organization, the Chamber should not have to follow the open meeting law, Davis said last fall, and allowing council members on its board would force the Chamber to change its bylaws.

Kline, who took over as city liaison at the end of December, agrees that having a private organization comply would be "an inappropriate use of the Brown Act." He added that it would be nice for the Chamber to invite city representatives to its meetings but he would not require that this be done.

But with the issue of the rental lease agreement now behind them, both Davis and Kline have expressed an eagerness to move forward with finalizing a service fee contract and clearing up the matter with Celebrate Saratoga!

"I think relations have greatly improved" between the Chamber and the city, Kline said.

He anticipates the subcommittee will meet again before Feb. 5, at which time he hopes to submit a proposed contract to the city council.

Although the Chamber has relocated, its phone number continues to be 408.867.0753 and its fax number is 408.867.5213.