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File #: 20-1239    Version: 1 Name:
Type: Consent Calendar Status: Agenda Ready
File created: 10/18/2019 In control: Council and Authorities Concurrent Meeting
On agenda: 1/14/2020 Final action: 1/14/2020
Title: Action on the Santa Clara Convention Center FY 2019/20 1st Quarter Financial Status Report [Council Pillars: Promote and Enhance Economic and Housing Development, Enhance Community Engagement and Transparency, and Sustainability]
Attachments: 1. SCCC Activity Report for First Quarter 2019-20.pdf
REPORT TO COUNCIL
SUBJECT
Title
Action on the Santa Clara Convention Center FY 2019/20 1st Quarter Financial Status Report [Council Pillars: Promote and Enhance Economic and Housing Development, Enhance Community Engagement and Transparency, and Sustainability]

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). Spectra began management of SCCC on March 18, 2019.

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 1st quarter ended September 30, 2019, as submitted by Spectra. This report is unaudited and, therefore, subject to change.

As part of the management 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.

As discussed in the attached Quarterly Report, budget to actual financial results are as follows.
Table 1 - 1st Quarter Summary Financial Summary

Projected in Budget
Actual
Difference
Gross Revenue
$4,297,392
$4,033,689
($263,703)
Total Expenses
$3,878,154
$3,789,012
($89,142)
Net Income
$419,237
$244,677
($174,561)

As detailed in Table 1, gross event revenue was off by $263,703. This was due to fewer events booked at the Convention Center (-$376,663 variance), resulting in a decrease of audio-visual and information technology (IT) services rental needs (-$478,966 variance). This lower revenue was offset by higher food and beverage and other services revenue (+$591,926 variance).

Net expenses were under budget by $89,142. This was due to savings in audio-visual and IT services costs (+$339,344 variance) and ...

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