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Legislative Public Meetings

File #: 18-1361    Version: 1 Name:
Type: Public Hearing/General Business Status: Agenda Ready
File created: 9/26/2018 In control: Council and Authorities Concurrent Meeting
On agenda: 11/27/2018 Final action: 11/27/2018
Title: Action on the City's Response to the Performance Audit "Santa Clara Convention Center and Convention-Visitors Bureau: Restructuring Operations Can Strengthen Accountability, Performance and Revenue" and Analysis of the Chamber's Response
Attachments: 1. Performance Audit by TAP International on September 18, 2018, 2. Santa Clara Chamber of Commerce Response to Audit Findings and Concerns with City Actions, 3. Audit Implementation Plan Matrix, 4. Chamber Conflict of Interest Policy, 5. IRS Referral, 6. City letter to FPPC, 7. FPPC response letter to City, 8. POST MEETING MATERIAL
REPORT TO COUNCIL

SUBJECT
Title
Action on the City's Response to the Performance Audit "Santa Clara Convention Center and Convention-Visitors Bureau: Restructuring Operations Can Strengthen Accountability, Performance and Revenue" and Analysis of the Chamber's Response
Report
BACKGROUND
On May 22, 2018, by Council direction, the City hired TAP International to complete a performance audit of the Santa Clara Convention Center (SCCC) and Convention-Visitors Bureau (CVB). On September 18, 2018, TAP International presented its audit scope, audit findings, and recommendations (Attachment 1) in its report, "Santa Clara Convention Center and Convention-Visitors Bureau: Restructuring Operations Can Strengthen Accountability, Performance and Revenue" (Audit).

The Audit found that the fiscal health of the SCCC and CVB is good when evaluated separately, but that the City could strengthen the financial performance of both entities when evaluated together. The CVB and SCCC also received high customer satisfaction scores by users. The Audit also revealed serious failures to manage public assets with appropriate stewardship, accountability and transparency by the Contractor (Santa Clara Chamber of Commerce, referred to as the Contractor in the Audit and "Chamber" in this staff report).

Additional key findings include: problematic accounting practices of public funds by the Chamber; Chamber's apparent misuse of government assets; improper payment of commissions and bonuses without proper disclosure or transparency, which need further review; potential improper actions relative to the Santa Clara Chamber of Commerce's Political Action Committee (SCCCPAC); unmanaged conflicts of interests by Chamber staff and Board; and, City's improper oversight of contracts for the SCCC and CVB.

On September 18, 2018, the Council directed the City Manager to issue a 180-day notice to terminate the Convention Center Management Agreement, while simultaneously engaging in a competitive ...

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