REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to the Agreement with Global Spectrum, LP, dba Spectra Venue Management for the Management and Operation of the Santa Clara Convention Center Modifying the Timing of Capital Investments
Report
COUNCIL PILLARS
Promote and Enhance Economic and Housing Development
Enhance Community Engagement and Transparency
BACKGROUND
On February 5, 2019, City Council approved Resolution No. 19-8666 authorizing the City Manager to negotiate and execute an agreement with Global Spectrum, LP, dba Spectra Venue Management (Spectra) for the management and operation of the Convention Center. Responsibilities included performing services necessary to direct and manage all Convention Center activities including, but not limited to, marketing and promoting the Center, administration of all contracts affecting the management and operation of the Convention Center, booking of events, hiring and supervising staff, daily operations (accounting, security, event management, janitorial, and maintenance); and, implementing the design and construction of capital improvements and repairs as approved by the Council in the Capital Budget.
On March 12, 2019, a five-year agreement with two five-year options to extend was executed. With the effective date of March 18, 2019, the Initial Term of the Agreement is March 18, 2020 to June 30, 2024.
DISCUSSION
Staff is proposing Amendment No. 1 to the agreement with Spectra for the management and operation of the Convention Center. The proposed amendment includes modifying the investment period during the Initial Term for Spectra-funded capital improvement and repairs to be payable in three installments and authorizing the City Manager to enter into and execute any minor and administrative amendments.
Through the City's budget approval process, Council approved a five-year Capital Improvement Program (CIP) plan as submitted by Spectra. A total of $4.15 million, $1.15 million capital investment f...
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