REPORT TO COUNCIL
SUBJECT
Title
Update on Council Direction to City Manager on Convention Center and on Status of Agreement with Convention-Visitors Bureau
Report
BACKGROUND
At the May 22, 2018, staff requested direction from Council on the management fee to the Santa Clara Chamber of Commerce & Convention-Visitors Bureau for the management of the Santa Clara Convention Center. After a detailed staff presentation and Council discussion, Council approved a motion to:
Direct the City Manager and City Attorney to begin a process of exploring a term sheet for a new agreement with the Chamber of Commerce for their management of the Convention Center; begin the process to execute a financial and performance audit of the Chamber; and that the management fee be suspended until such time that we can enter into a new agreement.
DISCUSSION
Since the May 22 Council meeting, the City Manager's office has contracted with a highly qualified performance auditing firm, TAP International, whose principal, Denise Callahan, has expertise in convention center performance audits. Ms. Callahan will personally serve as her firm's staff lead on this project. A summary of Ms. Callahan's background is attached.
In review of the scope for the audit it became clear that the marketing operation of the Convention-Visitor's Bureau is almost fully integrated with Convention operations. As such, an audit of convention center operations would be incomplete without a review of the $1.5 million in public funds used by the CVB to support convention and tourism activity. Therefore audit objectives include a review of the CVB activity.
An audit entrance conference occurred on June 7 with Convention Center staff, representatives of the CVB and Chamber, as well as City staff. Attached are the slides from the audit entrance conference for your information. At that meeting Ms. Callahan made a data request from the City and Chamber for Convention Center- and CVB-related activity.
In order for ...
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