REPORT TO COUNCIL
SUBJECT
Title
Action on the Procurement Strategy for the Management of the Convention Center and Convention Visitors Bureau
Report
BACKGROUND
On March 27, 1984, the City of Santa Clara executed a Management Agreement with the Santa Clara Chamber of Commerce & Convention-Visitors Bureau (Chamber) for the management and operation of the Santa Clara Convention Center (Center). Through the Agreement, the Chamber is responsible for performing services necessary to direct and manage all Convention Center operations including marketing and promoting the Center; booking of events; hiring of staff; and daily operations of the center including accounting, catering, security, janitorial, and maintenance.
On May 22, 2018, Council directed the City Manager and City Attorney to: 1) begin process of exploring a term sheet for a new agreement with the Chamber for their management of the Convention Center; 2) begin process to execute a financial and performance audit; and 3) suspend the payment of the management fee until such time as an audit was completed.
TAP International was hired to conduct a financial, governance, contract management, and marketing audit of the Santa Clara Convention Center and Convention and Visitors Bureau (CVB). The audit scope was focused on the state of business practices by the Chamber with respect to its management of public funds and assets and the City's contract management practices.
On September 18, 2018, TAP International presented its audit findings to Council. The audit has revealed serious failures to manage public assets with appropriate stewardship, accountability, and transparency. The audit also found that, when evaluated separately, the fiscal health of the Center and CVB are generally good. However, when evaluated together, there was a need to improve financial management and performance. From the City's perspective, these two areas of service should be evaluated together because there is inter-dependenc...
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