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Findings 6 findings
F01
The Management Agreement between the City and the San Diego Convention Center Corporation is not sufficiently clear in defining responsibilities with respect to financial expenditures. Fact: On March 26, 2014 the San Diego Convention Center Corporation Board of Directors adopted a reserve policy, similar to that of the City, which established a target of 14% of operating budget for use as reserves. 11
F02
The reserve threshold of 14% of operating budget may be appropriate for the City but is not necessarily appropriate for the San Diego Convention Center Corporation. Fact: The San Diego Convention Center Corporation estimates its total needs for capital improvements, operations and maintenance over the five year period from Fiscal Year 2015 through Fiscal Year 2019 to be $43.8 million, including about $15 million for repair of the Sails Pavilion. Fact: The City has proposed financial reforms to its Capital Improvements Program which would allow it to reallocate funds more efficiently from completed or stalled projects to priority projects. Fact: Repair to the Sails Pavilion qualifies as a priority project; its major components are not expected to last longer than three more years.
F03
Integrating the Convention Center’s bondable capital improvement projects into the City’s Capital Improvement Program would be beneficial to the San Diego Convention Center Corporation. Fact: In 2012, the San Diego Convention Center Corporation entered into a four-year contract with the San Diego Tourism Authority to book long term conventions (18 months or more into the future). Fact: In Fiscal Years 2013 and 2014 the Tourism Authority fell somewhat short of its goal of booking 860,000 future room nights.
F04
An independent analysis is needed to determine whether the dual booking system is effective. Fact: In Fiscal Year 2015 the City budgeted a total of $17,385,650 for expenses associated with the Convention Center. Fact: The Convention Center’s budget, website and publications reflect only the $3,405,000 City contribution it receives for marketing, promotion and capital projects.
F05
The budget and other publications of the San Diego Convention Center Corporation would be more transparent if they included all of the City’s financial contributions on behalf of the Center. Fact: The Convention Center Corporation publishes economic impact statements on its website and in its annual reports. Fact: The dollar amounts published are estimates based on surveys of attendees and accepted industry standards and multipliers.
F06
The credibility of the Corporation’s economic forecasts would be enhanced by reporting the mathematical formulas used to compute the economic indicators.
Recommendations 10
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15-14Page 13Amend the Management Agreement with the San Diego Convention
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15-15Page 13Amend the Management Agreement with the San Diego Convention
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15-16Page 13Amend the Management Agreement with the San Diego Convention
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15-17Page 13Direct the City of San Diego's Chief Financial Officer to meet with the
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15-18Page 13In the interest of transparency, mandate that the San Diego
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15-19Page 13Integrate major bondable capital improvement projects of the
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15-20Page 14Commission a study by the Department of Performance Analytics and
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15-21Page 14Commission an independent study to evaluate the effectiveness of the
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15-22Page 14Increase transparency by disclosing on the Corporation's website and
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15-23Page 14Increase transparency by disclosing on the Corporation's website and
No Responses Found 2
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County of San Diego
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