REPORT TO COUNCIL
SUBJECT
Title
Action on the Santa Clara Convention Center 4th Quarter Financial Status Report
Report
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), replacing the Chamber of Commerce (Chamber). Spectra began management of the SCCC on March 18, 2019.
This is the first quarterly financial report brought forward by Spectra. A third quarter financial status report was not prepared this year due to the transition of the convention center manager. This 4th quarter report reflects results under the management of Spectra for the period of March 18, 2019 through June 30, 2019 and provides information on the various business activities of the SCCC.
Staff is transmitting Spectra's SCCC status report to Council for compliance with agreement terms. This report has not been separately audited.
DISCUSSION
Submitted for Council information is a Financial Status Report for the 4th quarter ended June 30, 2019, as submitted by Spectra. This report is unaudited and therefore, subject to change. The delay in submitting this 4th quarter report is due to the change in the convention center manager, closing out the previous manager's accounting, and transitioning to Spectra's accounting and reporting.
As part of that transition, there are several reporting additions and changes that are aligned with Spectra's accounting system. Some revenue and expenditure reporting groups are combined differently, and a new revenue recognition policy related to food and beverage activities has been implemented. For this reason, line items in this report are not comparable to the methodology used during the rest of the fiscal year. Net operating income in the 4th quarter totaled $831,803. Total FY 2018/19 full year operating income for the SCCC totaled $1.6 million. This compares to net income in FY 2017/18 of $2.2 million. Given the sig...
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