Phelan took over as executive director on May 9, 2005, after being selected from a pool of 120 applicants. She took the job following the departure of the previous director, Kristin Davis, who had left on bad terms with the Chamber's board of directors. When Davis left, many of the volunteers that the Chamber had relied on over the years left with her.

Phelan, who grew up in the area, had taken the job intending to put her nonprofit management experience to work revitalizing Saratoga's business climate. "I thought it would be fun," she said. "But I didn't know what I was getting into."

The Chamber has relied on one event, Celebrate Saratoga!, to provide the majority of its annual operating budget. The street festival, held every September on Big Basin Way in the Village, brought in an estimated $60,000 in 2004. But revenue from last year's event dropped to about $23,000. The drop sent the Chamber into cost-cutting mode. Fewer businesses were renewing their memberships, which compounded problems.

Phelan said a combination of ignorance and arrogance on the part of the Chamber's board of directors led to her resignation. "Individually, each board member is well intentioned, but they admit to not understanding their roles on the board."

She said that board members lacked experience and that hidden agendas and ulterior motives interfered with decision-making as board members promoted their own businesses and causes. She said decisions were reactive, causing the Chamber to lurch from chaos to crisis.

"As the director, you have the responsibility and the authority to run the day-to- day operations," she said. "But the board was micromanaging."

As the financial situation at the Chamber deteriorated and clashes with board members arose, Phelan said she could see the writing on the wall. She knew her salary was a big chunk of the Chamber's expenses, and with the financial situation as it was, she decided it best to throw in the towel.

In hindsight, Phelan said that perhaps Saratoga's different business sectors, such as the Village and the Gateway District, might be better served if they formed their own independent business associations. She said a possible merger of the Saratoga Chamber of Commerce with the Los Gatos Chamber of Commerce could offer members more benefits than what they are currently receiving.

Phelan said 10 years ago the Los Gatos Chamber of Commerce collapsed and its board was dismissed. The Chamber was run by the San Jose Chamber of Commerce until it was able to get back on its feet. She said a similar situation could happen in Saratoga.

"Fresh leaders are needed to represent the Chamber," she said. "I think it needs to get out of the 1950s, stop doing what it's always done and step into the 21st century."

Although Phelan did not gain widespread support in the Saratoga business community and lost the support of the Chamber board, she was well liked by members of the Saratoga City Council.

"The city staff and council from the day I set foot in the Chamber did nothing but welcome me with open arms and support me every step of the way," she said.

Councilwoman Ann Waltonsmith said she was very concerned about recent developments at the Chamber. "It doesn't have money. It doesn't have neighborhood support. It may just have to die. It's a long history of having a board that was more interested in playing politics and being exclusive rather than inclusive."

Waltonsmith said that perhaps other groups would arise to provide the services that the Chamber provided in the past, such as running Celebrate Saratoga! and the Village Christmas Tree Lighting and Holiday Open House. "We would really like to have a Chamber or a Chamber-like group that is really enthusiastic about touting Saratoga and being a booster of Saratoga business."

Mayor Norman Kline said Chambers have their ups and downs. "The city council would like to continue to support the Chamber. It is a good thing to have."

Chris Oakes, president of the Saratoga Chamber of Commerce board, said the board would run the Chamber until a new executive director is hired, but no time frame for that has been set. "We have a very conscientious board--a very strong board that loves teamwork. We're going to push forward."

Oakes said she wishes Phelan well, but provided no further comment on the Chamber's present state of affairs.

Phelan said she is currently spending time with her family and enjoying the downtime. "Saratoga has so much potential," she said. "Collectively, it's incredible. It has wineries, the Village, Montalvo. It's such a great place. I wish them the best."