REPORT TO COUNCIL
SUBJECT
Title
Direction on Management Agreement with Santa Clara Chamber of Commerce & Convention-Visitors Bureau for Santa Clara Convention Center
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 (attached). Through the Agreement, the Chamber is charged with performing all 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.
On July 16, 2018, staff presented an informational report to Council advising of the challenges associated with Council's May 22 request to "begin exploring a term sheet for a new agreement with the Chamber" prior to the completion of the audit. Two Council actions (the May 22nd action and the June 26th action not to renew the convention and visitor services contract) had an impact on the governance structure originally in place for convention and visitor services in Santa Clara and City staff's ability to implement the full City Council direction with respect to marketing and booking events at the Convention Center.
The Management Agreement provides each party with the right to terminate the Agreement with a 180-day notice. On July 16 and August 21, the City Manager advised Council that staff would recommend that: 1) the City Council seek termination of the Management A...
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