REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Report from Stadium Authority for Action Regarding Stadium Manager’s Request to Execute Agreement with Gachina Landscape Management for Landscaping Services at Levi’s Stadium
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
As the Stadium Manager, Forty Niners Stadium Management Company, LLC, is responsible for maintaining “the Stadium in the Required Condition and operate the Stadium as a quality NFL and multi-purpose public sports, public assembly, exhibit and entertainment facility” as required by the Stadium Management Agreement between the Stadium Authority, Stadium Manager, and Forty Niners SC Stadium Company, LLC (StadCo).
The Stadium Manager is requesting approval to execute an agreement with Gachina Landscape Management for landscaping maintenance services for a three-year period beginning April 19, 2023 through March 31, 2026, with the option to extend the agreement for two additional one-year periods, in an amount not to exceed $68,000 for the first contract year, $70,000 for the second contract year, and $72,000 for the third contract year for a total not to exceed amount of $210,000 over the three-year period.
DISCUSSION
Stadium Authority staff reviewed the Stadium Manager’s Recommendation for Award memo (attached to corresponding report #23-507) and supporting documents for consistency against the Stadium Authority Procurement Policy and Santa Clara City Code Chapter 2.105.140(c) (Competitive requirements for purchases - Formal requests for quotes for agreements greater than $15,000 and up to $250,000). The Stadium Manger’s Request for Proposals (RFP) received four proposals and the Stadium Manger is recommending award to the highest ranked proposer offering the best value (Gachina Landscape Management).
Based on the documentation, staff recommends approval of the Stadium Manager’s request to execute an agreement with Gachina Landscape Management to provide landscaping maintenance services for a three-year period beginning April 19, 2023 through March 31, 2026, in an amount not to exceed $68,000 for the first year, $70,000 for the second contract year, and $72,000 for the third contract year for a total not to exceed amount of $210,000 over the three-year period. Staff recommends delegating authority to the Executive Director to approve the Stadium Manager’s exercise of the option to extend with the same basic terms and conditions for two additional one-year periods, if the associated costs have been approved by the Board in the Stadium Authority Budget.
The Stadium Authority Counsel’s Office has reviewed the requested agreement for comparison to the Stadium Authority’s customary language. While there are some differences in the language, including portions covering compliance with laws such as prevailing wage and conflict of interest, the agreement submitted here for approval contains the necessary language which identifies these legal obligations to the vendor. The vendor expressly agrees to adhere to such obligations upon its execution of the agreement. Nothing in the proposed agreement 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.
In addition, per Paragraph 4(b) of the Settlement 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 actions being considered do not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment and pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
The Stadium Authority Fiscal Year (FY) 2023/24 Budget contains Shared Stadium Expenses (Shared Expenses) such as Security, Stadium Operations, Engineering, Guest Services, and Groundskeeping. Shared Expenses are split between the Stadium Authority and Forty Niners SC Stadium Company LLC (StadCo) per the Stadium Lease between Stadium Authority and StadCo.
There are sufficient funds in the FY 2023/24 Shared Expenses Engineering line item to cover the agreement cost for the first year (up to $68,000, of which the Stadium Authority is responsible for up to $34,000). Since the renewal term extends beyond a single fiscal year, the term for subsequent fiscal years is conditioned upon approval of the Stadium Authority budget for the applicable fiscal year that includes the amounts due under the agreement as required under Santa Clara City Code Section 17.30.100.
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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation:
1. Approve the Stadium Manager’s request to execute an agreement with Gachina Landscape Management to provide landscaping maintenance services at Levi’s Stadium for a three-year period beginning April 19, 2023 through March 31, 2026, in an amount not exceed $68,000 for the first contract year, $70,000 for the second contract year, and $72,000 for the third contract year for a total not to exceed amount of $210,000 over the three-year period, subject to budget appropriations; and
2. Authorize the Executive Director to approve the Stadium Manager’s exercise of the option to extend the agreement with the same basic terms and conditions for two additional one-year periods, subject to budget appropriations.
Staff
Reviewed by: Christine Jung, Assistant to the Executive Director
Approved by: Office of the Executive Director