REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Purchase Order with Arata Equipment Company for the Trash Compactor Units and Trash Compactor Replacement CapEx Projects at Levi’s Stadium
Report
BACKGROUND
Pursuant to Section 2.9 of the Stadium Management Agreement between the Santa Clara Stadium Authority (Stadium Authority), Forty Niners SC Stadium Company LLC (StadCo), and Forty Niners Stadium Management Company LLC (Stadium Manager), the Stadium Manager is responsible for maintaining Levi’s Stadium (Stadium) “in the Required Condition and operate the Stadium as a quality NFL and multi-purpose public sports, public assembly, exhibit and entertainment facility….”
The Stadium Authority Fiscal Year (FY) 2025/26 Capital Expense (CapEx) Budget includes $346,500 for a Trash Compactor Replacement line item and $420,000 for a Trash Compactor Units line item. The two projects will replace four total waste compactors and accessory equipment at the stadium loading dock that are nearing their end of life.
The Stadium Manager is requesting Stadium Authority Board approval of the following actions related to the Trash Compactor Replacement and Trash Compactor Units CapEx Projects:
1. Approve approval and award of a single-source purchase order with Arata Equipment Company (Arata), for the removal and disposal of four existing commercial trash compactor units and the purchase and installation of four new Sani-Tech trash compactors at Levi’s Stadium in the amount of $629,869.50 (inclusive of all applicable sales tax); and
2. Authorize the Stadium Manager to execute change orders up to 10% or $62,986.95 for a total not to exceed amount of $692,856.45, in amounts determined by the Stadium Manager to be necessary and appropriate to address unexpected essential electrical modifications (such as any damaged aboveground electrical hookups) required to ensure the proper installation and operation of the compactor units.
The Stadium Manager has provided a Recommendation Memo that summarizes the new request (Attachment 1).
DISCUSSION
Stadium Authority staff reviewed the Stadium Manager’s Recommendation for Award memo, supporting documentation, and draft purchase order (Attachment 2) for consistency against the City’s requirements for single and sole source procurements (Santa Clara City Code Section 2.105.280).
Levi’s Stadium operates four all-electric auger compactor systems manufactured by Sani-Tech Systems, Inc. (Sani-Tech), which were purchased from and installed by Arata as part of the original stadium construction in 2014, to address tight space constraints and meet the City of Santa Clara’s waste collection requirements. The compactors are specifically designed for flat-floor installation and to match Mission Trails’ collection equipment. The systems feature specialized electrical hookups automated tipping mechanisms, custom floor guide rails, and advanced safety and control features, allowing for efficient, high-volume operation with less maintenance and fewer waste pickups.
In their Recommendation Memo, the Stadium Manager explained that the compactor systems and layout at Levi’s Stadium were custom-designed during original construction for Sani-Tech equipment. The proposed replacement units are fully compatible with the existing footprint, floor guide rails, electrical infrastructure, and Mission Trails’ truck specifications, allowing installation with no facility modifications.
Additionally, the Stadium Manager explained that selecting a different manufacturer could require engineering redesign and facility changes, including structural, electrical, and logistical adjustments. They outlined the following potential impacts:
• Physical Footprint: The space is sized for four Sani-Tech units; alternate dimensions could reduce capacity or require expansion.
• Electrical Infrastructure: Existing high-voltage connections support Sani-Tech’s all-electric drive and would likely need rewiring or relocation.
• Logistical Alignment: Floor guide rails are matched to Sani-Tech bin wheels to ensure proper alignment with Mission Trails’ trucks; alternate bins would likely require new guides.
The Stadium Manager obtained a quote from Arata to remove and dispose of the four existing trash compactor units at the Stadium and replace them with four new Sani-Tech systems. Specifically, the quote includes removal and disposal of existing systems, and supplying, delivering, and installing four new Sani-Tech compactors for a total of $629,869.50, including sales tax, along with a two-year parts and labor warranty for each unit. Arata is the sole authorized dealer for Sani-Tech equipment in Northern California, making it the only authorized source for this equipment.
The Stadium Manager has also submitted a pricing justification for the replacement trash compactors. As stated in their Recommendation Memo, the original compactors were purchased from Arata in 2014, as part of the original stadium construction, at a cost of approximately $330,000. The proposed replacement cost reflects 12 years of cost escalation. Applying an estimated 4% annual escalation factor results in an adjusted 2026 equivalent cost of approximately $528,341. In addition, Arata has discontinued the 2014 model and now manufacturers the latest high-performance model. The new model includes upgraded dumpers and delay kits, larger gearboxes, larger lift arm assembly, and heavy reinforcement in critical areas.
Although the total 2026 price reflects a growth rate above the standard Consumer Price Index (CPI), the Stadium Manager considers the increase reasonable given the documented cost escalation, product enhancements, global tariffs, and significant increases in freight costs. Stadium Authority staff has reviewed the pricing justification and the Stadium Manager’s analysis and agrees that that the proposed pricing is fair and reasonable.
The Stadium Manager issued a Notice of Intent to Award a Sole Source Purchase Order to Arata Equipment Company for Sani-Tech Compactor Systems for Levi’s Stadium (“Notice of Intent to Award a Sole-Source Purchase Order”) on their procurement platform, Bonfire Interactive, on December 22, 2025 through January 7, 2026. The purpose of the notice was to inform the vendor community of the Stadium Manager’s intent to enter into a sole source agreement with Arata, state the justification for the sole source, and invite vendors to propose alternate equipment capable of meeting the Stadium’s operational and technical requirements.
The Bonfire platform automatically sends postings to registered vendors that have selected commodity codes for services and projects that their respective company can provide. In this case, the Stadium Manager selected the following commodity codes for their Notice of Intent to Award a Sole Source Purchase Order: Cleaning Equipment and Supplies; Compactors; Packaging Compactors; and Stationary Waste Compactors. Through this process, 495 vendors in the Bonfire platform received a notification about the Notice of Intent to Sole Source a Purchase Order through the Bonfire recommendation engine. The Stadium Manager did not receive any submissions to their Notice of Intent to Award a Single Source Purchase Order, confirming that no other vendors could meet the Stadium’s needs and justifying the sole source procurement.
Based on the provided documentation and information, staff recommends approval of the Stadium Manager’s request. It should be noted that the Purchase Order with Arata attached to the report contains redaction of the vendor’s propriety design drawings. The Stadium Authority has an unredacted copy of the draft Purchase Order.
The Stadium Authority Counsel’s Office has reviewed the requested purchase order for comparison to the Stadium Authority’s customary language. Nothing in the proposed purchase order changes the Stadium Authority’s rights under the Management Agreement and specifically with respect to any dispute that may arise from the Stadium Manager’s obligations under the Management Agreement.
The Stadium Authority reserves all rights to confirm and dispute charges by and payments to the Stadium Manager during a fiscal year-end reconciliation/true-up, including but not limited to changes based on improper allocation, calculation, lack of support, or failure to comply with the Parties’ contracts or California law. The Stadium Authority may raise related questions before the fiscal year-end reconciliation/true-up, which the Stadium Manager agrees to assess and respond to in good faith.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15302 “Replacement or Reconstruction” as the activity consists of the replacement of existing utility systems involving negligible or no expansion of capacity. .
FISCAL IMPACT
The FY 2025/26 CapEx Budget contains $346,500 for a Trash Compactor Replacement line item and $420,000 for a Trash Compactor Units line item. There are sufficient funds between the two line items to cover the Stadium Manager’s request. The Stadium Authority is responsible for all CapEx Project costs.
COORDINATION
This report has been coordinated with the Stadium Authority Counsel and Treasurer’s Offices.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation:
1. Approve approval and award of a single-source purchase order with Arata Equipment Company, for the removal and disposal of four existing commercial trash compactor units and the purchase and installation of four new Sani-Tech trash compactors at Levi’s Stadium (Trash Compactor Replacement and Trash Compactor Units CapEx Projects) in the amount of $629,869.50 (inclusive of all applicable sales tax); and
2. Authorize the Stadium Manager to execute change orders up to 10% or $62,986.95 for a total not to exceed amount of $692,856.45, in amounts determined by the Stadium Manager to be necessary and appropriate to address unexpected essential electrical modifications (such as any damaged aboveground electrical hookups) required to ensure the proper installation and operation of the compactor units.
Staff
Prepared by: Christine Jung, Deputy City Manager
Approved by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. Purchase Order with Arata Equipment Company - Proprietary Design Redacted
2. Stadium Manager’s Recommendation Memo