REPORT TO COUNCIL
SUBJECT
Title
Action on the Santa Clara Convention Center FY 2021/22 2nd Quarter Financial Status Report
Report
COUNCIL PILLARS
Promote and Enhance Economic, Housing and Transportation Development
Enhance Community Engagement and Transparency
Promote Sustainability and Environmental Protection
BACKGROUND
On February 5, 2019, the City approved an agreement with Global Spectrum L.P. dba Spectra Venue Management (Spectra) to operate the Santa Clara Convention Center (SCCC). Spectra began management of the SCCC on March 18, 2019.
Staff is transmitting Spectra’s SCCC status report to Council for compliance with agreement terms.
DISCUSSION
This report transmits for Council information, the Santa Clara Convention Center Financial Status Report for the 2nd quarter ending December 31, 2021, as submitted by Spectra. This report is unaudited and, therefore, subject to change.
As Spectra’s 2nd quarter report indicates, there were 37 events hosted by the Santa Clara Convention Center. Six events took place in October, 15 in November, and 16 in December. The largest event of the quarter was the Holiday Craft Fair held over three days in November that had an estimated 5,000+ guests.
Both Spectra and Levy continue to review staffing levels and expenditures. Based on event needs, staffing levels varied from 10 to 14 throughout the quarter. The vacant Director of Finance position was filled and started in November.
As discussed in the Quarterly report, budget to actual financial results are as follows:
Total expenses for the quarter were $1,755,965, or $809,650 less than the budgeted amount of $2,565,615. There was $71,709 of other revenue recognized in Q2 primarily from cancelation fees and cellular site revenue.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
The net operating income incurred by the Convention Center for the 2nd quarter of FY 2021/22 is $189,343. This amount does not include any fiscal impact related to TOT, TID, and/or sales tax activity.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov.
RECOMMENDATION
Recommendation
Note and file the Santa Clara Convention Center Financial Status Report for the 2nd Quarter ending December 31, 2021, as submitted by Spectra.
Staff
Reviewed by: Kenn Lee, Director of Finance
Approved by: City Manager’s Office
ATTACHMENTS
1. SCCC Activity Report for Second Quarter FY 2021/22