REPORT TO COUNCIL
SUBJECT
Title
Discussion and Action on Councilmember Hardy’s Request to Consider a Resolution to Support the Bid to FIFA for the 2026 World Cup and Related Events
Report
COUNCIL PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
As part of the November 16, 2021 meeting, Councilmember Hardy submitted a Council Written Petition (Council Policy 030) to place an item on a future Council meeting to consider a resolution to support the bid to Fédération Internationale de Football Association (FIFA) for the 2026 World Cup and related events. The Council approved Councilmember Hardy’s request and staff has worked with Councilmember Hardy to prepare the attached draft Resolution for the Council’s discussion and potential action (Attachment 1).
DISCUSSION
The purpose of the draft Resolution is to reaffirm the City of Santa Clara’s support for the 2026 World Cup event. The City first affirmed its support of FIFA’s 2026 World Cup and related events in a letter signed by Mayor Gillmor on August 31, 2017 (Attachment 2).
This draft Resolution is solely to communicate, as a full City Council on the part of the City of Santa Clara, support for FIFA’s 2026 World Cup and related events. The draft Resolution does not commit the City to any funding or resource obligations.
Pending Obligations as Levi’s Stadium Proceeds
The 2026 World Cup bid for the specific use of Levi’s Stadium was submitted by Mr. Al Guido on behalf of the Forty Niners Stadium Management Company (Attachment 3), establishing it as a Santa Clara Stadium Authority (Stadium Authority) Non-NFL event. The document also confirms support on behalf of the Cities of Santa Clara and San Jose from Mayor Gillmor and Mayor Liccardo, respectively.
As this Non-NFL event continues to advance in the process, which there is every reason to believe that it will, there are obligations that must be addressed and known by the City Council/Stadium Authority Board, such as these few examples:
1. Expenditure and revenue assumptions as a Stadium Authority Non-NFL event
2. Managing potential conflicts of interest between involved agencies and/or their officials, including the financial benefit to each and, particularly, how these following roles are being managed in the best interest of the Stadium Authority. As an example:
• Al Guido’s role as “Chairperson/President” of Forty Niners Stadium Management Company,
• Al Guido’s role as “Board President” of Bay Area Host Committee, and
• Al Guido’s role as “President” of Forty Niners Football Company LLC.
Transparency and a complete understanding of which entities (such as StadCo) may be financially benefitting from the event, which individuals are involved in making decisions on behalf of the Stadium Authority, and/or term sheet for an Assumption and Assignment Agreement favorable to the Stadium Authority
3. Clear understanding of FIFA 2026 World Cup’s June 30, 2022 milestone required to be completed and how that will be achieved in absence of any information on the part of the City/Stadium Authority and the use of this publicly owned stadium
4. Agreement on how to safeguard the City and Stadium Authority from any financial obligations outlined in FIFA’s Overview of Government Guarantees and Government Declaration (Attachment 4), in compliance with Measure J: Santa Clara Stadium Taxpayer Protection and Economic Taxpayer Act (Attachment 5)
With regard to potential conflicts of interest, because the details of all of the points listed above are as yet unknown, staff is prevented from fully assessing whether or not conflicts of interest exist. Furthermore, if they do exist, staff is unable at present to determine whether such interests constitute preclusive conflicts, or if mitigation measures (such as a change of official and/or staffing) could be applied, etc. The void of pertinent information prevents Stadium Authority staff from fully advising the Board on these issues.
As part of the Government Declaration, each of the involved Governments is requested to express its commitment to respecting, protecting and upholding human rights, including workers’ labor rights, in connection with the hosting and staging of the event and any legacy and related post-event activities. Each of the involved Governments is requested to express its commitment to ensuring that access to effective remedies is available where such rights violations occur. Furthermore, much of the Government Guarantees and Government Declaration document from FIFA appears to relate to guarantees from state or federal public agencies, rather than local agencies, so it is unclear to what extent local agencies would even be able to make the declarations described. The status of such obligation is not known, other than the City of Santa Clara (the governmental entity where Levi’s Stadium is located) has not taken such action nor received information whether there is a requirement to comply. Clarification on this topic should be addressed.
The City has received a copy of the Host City Declaration template letter, which provides a June 30, 2022 deadline to adopt any local ordinances and regulations to ensure compliance with the Host City Declaration and host city agreement and includes a provision that reads as follows:
within its competence, the City will adopt all measures and enact all necessary laws, ordinances or regulations (including local, regional or national laws, ordinances or regulations) which may be required in order to ensure full compliance with the present Host City Declaration and the host city agreement until not later than 30 June, 2022. As long as the necessary laws, regulations and ordinances are not yet in force, this Host City Declaration shall be directly applicable and enforceable as of the date of its signing.
It is unknown whether the June 30, 2022 deadline is still in effect and the City does not have a copy of the referenced host city agreement, nor any obligations that may be required. Clarification on this topic should be addressed.
RECOMMENDATION
Recommendation
Staff makes no recommendation.
Attachments
ATTACHMENTS
1. Draft Resolution - 2026 FIFA World Cup
2. August 31, 2017 FIFA Interest Letter Signed by Mayor Lisa Gillmor
3. United 2026 Bid Book Submittal
4. FIFA - Overview of Government Guarantees and the Government Declaration
5. Measure J: Santa Clara Stadium Taxpayer Protection and Economic Taxpayer Act Ballot Measure Language