REPORT TO COUNCIL
SUBJECT
Title
Update on the Formation of the New Destination Marketing Organization (DMO) Entity
Report
BACKGROUND
On April 9, 2019, City Council directed the City Manager to commence work efforts to form a new destination marketing organization (DMO) to provide convention and visitor services such as a Convention-Visitors Bureau (CVB). Council actions included approval of: a governance model whereby the City contracts directly with a nonprofit DMO and a separate Convention Center operator; the configuration of the initial DMO Board of Directors with added direction to increase the number of board members from seven to nine; and the use of public funds from the Tourism Improvement District (TID) to support the formation and operation of the DMO.
On May 21, 2019, City Council directed the City Manager to proceed with the formation of a new DMO entity including the appointment of the final composition of the Board of Directors and to pursue legal services as needed to support the establishment of the DMO.
The purpose of this report is to provide Council with an update on the progress of the DMO formation.
DISCUSSION
The new entity, the Silicon Valley/Santa Clara Destination Marketing Organization (DMO), incorporated as a California nonprofit mutual benefit corporation in August 2019 with the assistance of attorney Terry Conner of Thoits Law Firm (Thoits). Thoits prepared and filed the articles of incorporation; drafted, finalized and adopted the bylaws and provided the Board with a review of their fiduciary duties. Currently, Mr. Conner is assisting with the development of the corporation's conflict of interest policy and attends the Board of Directors meetings to advise on formation and process matters.
Location
A virtual office has been established at 5201 Great America Parkway, Suite 320, Santa Clara, CA (TechMart Building) and meetings have been taking place alternately at the Hyatt Regency, Hilton Santa Clara, and California Great Ame...
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