REPORT TO COUNCIL
SUBJECT
Title
Action on the Santa Clara Convention Center FY 2022/23 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. 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 4th quarter ending June 30, 2023, as submitted by OVG (attached). This report is unaudited and, therefore, subject to change.
As OVG's 4th quarter report indicates, there were 84 events hosted at the SCCC, 20 less than the budgeted 104 events. There were 33 events in April 2023, 22 events in May 2023, and 29 events in June 2023.
The first month of the quarter was exceptionally strong with May and June also performing well. Based on event needs, OVG staffing levels varied from 25 to 30 throughout the quarter.
As discussed in the Quarterly report, budget to actual financial results are as follows:
Financial Summary - 4th Quarter Ended June 30, 2023
For the 4th quarter ending June 30, 2023, OVG reported a net operating gain of $1,193,568. Total revenues were $6,614,989, or $2,728,279 more than the budgeted revenues of $3,886,710. Total expenses for the quarter were $5,421,421 or $1,714,929 more than the budgeted amount of $3,706,492. Additionally, OVG recognized $170,732 of other revenues in the 4th quarter primarily from cancelation fees.
As of June 30, 2023, OVG reported a year...
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