REPORT TO COUNCIL
SUBJECT
Title
Action on the Santa Clara Convention Center FY 2022/23 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. In November 2021, Spectra merged with Oak View Group (OVG) but continues to operate under the same legal entity.
Staff is transmitting OVG's, formerly known as Spectra, SCCC status report to Council for compliance with agreement terms.
DISCUSSION
This report transmits for Council information, the SCCC Financial Status Report for the 2nd quarter ending December 31, 2022, as submitted by OVG. This report is unaudited and, therefore, subject to change.
As OVG's 2nd quarter report indicates, there were 56 events hosted at the SCCC, 45 less than the budgeted 101 events. There were 25 events in October 2022, 17 events in November 2022, and 14 events in December 2022.
Historically the 2nd quarter activity is strong. However, November and December were not as robust as previous years. Holiday parties that used to be a staple in December did not materialize to the pre-pandemic activity level. Event planners were reluctant to book events in late 2022 based upon the COVID surge experienced during December 2021. Based on event needs, OVG staffing levels varied from 24 to 26 throughout the quarter.
As discussed in the Quarterly report, budget to actual financial results are as follows:
Financial Summary - 2nd Quarter Ended December 31, 2022
Projected in Budget
Actual
Budgeted Overage
(Underage)
Gross Revenue
$3,990,335
$3,664,200
($326,135)
Total Expense
$3,764,452
$3,306,462
($457,990)
Net Income
$225,883
$357,7...
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