REPORT TO COUNCIL
SUBJECT
Title
Action on the Santa Clara Convention Center FY 2020/21 4th 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 4th quarter ending June 30, 2021, as submitted by Spectra. This report is unaudited and, therefore, subject to change.
As Spectra's 4th quarter report indicates, Spectra contracted with Sutter Health/Palo Alto Medical Foundation to host their COVID-19 vaccination clinic. Operation of the clinic began on February 19, 2021 and ended on June 4, 2021. The vaccination clinic was the only event for the 4th quarter.
There were 52 events scheduled for the 4th quarter. Of the 52 events, 33 events rebooked and confirmed new dates and 19 cancelled. It is estimated that 65% of the cancelled events will return to the Center once the ability to host events resumes.
Both Spectra and Levy continued to review expenditures in an effort to mitigate financial losses to the City. Levy staff remained at four full-time employees, retaining its general manager, executive chef, controller, and director of sales. Spectra staff remained at two full-time employees, retaining its general manager and sales manager.
With the Center being closed to events, staff have been focused on increasing general sales activity to identify new clients for future year business, and advancing the budgeted capital improvement project...
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