REPORT TO COUNCIL
SUBJECT
Title
Action on the Santa Clara Convention Center FY 2021/22 3rd 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 3rd quarter ending March 31, 2022, as submitted by Spectra. This report is unaudited and, therefore, subject to change.
As Spectra's 3rd quarter report indicates, there were 46 events hosted by the Santa Clara Convention Center. There were 10 events in January 2022, 16 events in February 2022, and 20 events in March 2022.
The resurgence of COVID variants in late 2021 and early 2022 impacted the actual revenues vs. projected budget during the 3rd quarter. Both Spectra and Levy (Convention Center food and beverage manager) continue to review staffing levels and expenditures. Based on event needs, staffing levels varied from 10 to 17 throughout the quarter.
Based on bookings in the 4th quarter, both Spectra and Levy are optimistic that the Convention Center will meet its annual projections by the end of FY 21/22.
As discussed in the Quarterly report, budget to actual financial results are as follows:
Financial Summary - 3rd Quarter ended March 31, 2022
Projected in Budget
Actual
Budget Overage (Underage)
Gross Revenue
$2,731,735
$1,318,218
($1,413,517)
Total Expense
2,599,936
1,401,425
(1,198,511)
Net Income
$131,799
($83,207)
($215,006)
For the 3rd quarter ending March 31, 20...
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