REPORT TO COUNCIL
SUBJECT
Title
Direction on the Management Fee for the Santa Clara Chamber of Commerce & Convention-Visitors Bureau for Management of the Santa Clara Convention Center
Report
BACKGROUND
On March 27, 1984, the City of Santa Clara executed a Management Agreement (Agreement) with the Santa Clara Chamber of Commerce & Convention-Visitors Bureau (Chamber) for the management and operation of the Santa Clara Convention Center (Attachment 1). Through the Agreement, the Chamber is charged with performing all services necessary to direct, 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, janitorial, and maintenance. The Agreement, however, does not contain language for a fee for which the City would pay the Chamber of Commerce & Convention-Visitors Bureau for conducting work.
On February 27, 2018, Council held a study session on the Convention Center. Information was presented to City Council that provided background of the convention center; management agreement; fiscal history; users and use activity of the convention center; and, convention center facility assessment/investment was provided.
Upon that presentation, Councilmembers began to inquire about the increased management fee payments in recent years and the authority for which payments were increased (Attachment 2)
Staff has reviewed the history of the management fee and the authorizing documents. Staff research surfaced that an annual fee has been paid to the Chamber to manage the Convention Center since the 1980s. However, while the fee to the Chamber has been regularly included and accounted for in the City's budget process and has been regularly noted in the City's Comprehensive Annual Financial Report (CAFR), the contract with the Chamber does not explicitly provide for a management fee or any parameters for the amount or purpose. In additio...
Click here for full text