REPORT TO COUNCIL
SUBJECT
Title
Action on Amended and Restated Agreement with TAP International for Audit Services for the Santa Clara Convention Center & Tourism Improvement District
Report
BACKGROUND
On May 22, 2018, staff requested direction from Council on the management fee to the Santa Clara Chamber of Commerce & Convention-Visitors Bureau for the management of the Santa Clara Convention Center. After a detailed staff presentation and Council discussion, Council approved a motion to:
Direct the City Manager and City Attorney to begin a process of exploring a term sheet for a new agreement with the Chamber of Commerce for their management of the Convention Center; begin the process to execute a financial and performance audit of the Chamber; and that the management fee be suspended until such time that we can enter into a new agreement.
On June 5, 2018, City Manager's Office executed a sole source contract with a not-to-exceed amount of $83,620 with a highly qualified performance auditing firm, TAP International (TAP), whose principal, Denise Callahan, has expertise in convention center performance audits in accordance with Santa Clara Code Section 2.105.330 General services - Contracting procedures. This section provides for a sole source contract where the service or personnel is unique or the available contractors providing the service are few in number as is the case for performance auditing firms specializing in convention center audits.
The scope of work of the original contract focused on (1) assessing revenues and expenditures for the City's Convention Center and (2) assessing the adequacy of structures, systems, controls, and processes that impact financial management of the Convention Center. On August 10, the City Manager's Office executed the first amendment increasing the contract not-to-exceed amount by $10,920 to $94,540 to cover additional work to address some of the financial audit work. The additional audit scope was included in th...
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