RESPONSE TO COUNCIL QUESTIONS RE: 2/6/24 AGENDA
Agenda Item 3.B RTC 24-1623: Action on City Bills and Claims Report for the period December 2, 2023 – January 5, 2024
Council Question:
Did the City purchase a couple of Ford Lightning trucks? If so, how are they working out?
Staff Response:
Yes, the City has four Ford Lightnings that are currently in-service. The feedback so far has been positive and they are working well. Six additional Ford Lightnings were just received that are being prepped for various departments and will be put in service soon. Five more Ford Lightings are on order.
Agenda Item 4 RTC 24-1345: Action on the Santa Clara Stadium Authority Financial Status Report for Quarter Ending September 30, 2023 and Approve Related Budget Amendments
Council Question:
Looking at the data, why are concerts for Taylor Swift (2) and Ed Sharleen has so high %age of expenses to the revenue as compared to Beyoncé concert. Would like to see the details of itemized revenue and itemized expenses.
Is our finance department convinced with the supporting documents provided?
Staff Response:
Thanks for the question. The terms of revenues and expenses credited to the Stadium Authority or covered by the event licensee is subject to negotiations for each event. As a result, the revenue and/or expenditure line items can vary by event depending on the negotiated terms of the event agreements. In the case of Beyonce, a higher amount of net expenses were covered by the licensee when compared to the Ed Sheeran and Taylor Swift concerts. Some examples of these event costs include public safety, security, stadium and event operations staff. In addition, the credited share of revenues were also higher for Beyonce when compared to the other concerts. These included suite tickets, venue rental fees, net merchandise sales, and other miscellaneous event revenue. Furthermore, additional operational costs were incurred for both Ed Sheeran and Taylor Swift due to higher number of ticket sales (73,779 and 61,925 respectively) vs. Beyonce, which had a lower number of ticket sales (49,462). Lastly, additional safety measures were necessary for Taylor Swift due to the younger demographic (minors) of the attendees vs. Ed Sheeran (adults/young adults) and Beyonce (adults/young adults).
The Finance Department continues to work with the Stadium Manager to receive and review documentation for all events. Finance staff conducts sample selection in the Stadium Authority’s financial system for each event throughout the year, with additional review performed at year-end with the close out of the fiscal year to ensure revenues and expenditures are supported by the appropriate documentation. This review is done internally, in addition to
2 reviews by KPMG and other audits as directed by the Board. While these reviews are specific in scope, the comparative line-item analysis of revenues and expenses from event to event as you describe in your email require a deep understanding of the operational and negotiated intricacies of each venue; this evaluation and analysis is an ongoing work effort by the Executive Director’s Office and SCSA team led by Chuck Baker and me. As we build capacity and dive deeper into the operations, we hope to shed additional insights and conclusions such as those raised in your questions.