REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Report from the Stadium Authority for Action on Request from the Stadium Manager to Incur Charges for the June 15-18, 2022 Event and Arena Marketing Conference in Minneapolis, MN and Travel for the May 28-29, 2022 Grupo Firme Concerts at SoFi Stadium in Inglewood, CA
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
Through the Stadium Management Agreement, the Forty Niners Stadium Management Company (Stadium Manager) manages and operates Levi’s Stadium on behalf of the Stadium Authority for Non-National Football League (Non-NFL) events, like concerts, sporting events, and non-ticketed events. On behalf of the Stadium Authority, the Stadium Manager is responsible for the marketing and booking of Non-NFL events among other duties at Levi’s Stadium.
The Stadium Manager is required to develop an annual Marketing Plan to outline the Stadium Manager’s plans to develop, implement, and monitor marketing, booking, advertising and promotion of Non-NFL Events for Levi’s Stadium. The Marketing Plan needs to be mutually agreed upon by the Stadium Manager and the Stadium Authority. On March 15, 2022, the Stadium Authority Board noted and filed the 2022 Marketing Plan.
Separately, on September 17, 2019, the Stadium Authority Board approved the introduction of Ordinance No. 2005, which rescinded the Executive Director’s delegated purchasing authority and requires all contracts or agreements to acquire supplies, materials, equipment and services to require Board approval by amending Chapter 17.30 of the Santa Clara City Code. On October 8, 2019, the Board adopted Ordinance No. 2005, which became effective on November 8, 2019. As a result of the Board’s revocation of the Executive Director’s authority to procure good and services on behalf of the Stadium Authority as of November 8, 2019, the Stadium Manager must now seek approval from the Board and demonstrate that the Stadium Manager has properly and legally procured goods and services before contracts may be executed.
The Stadium Manager is requesting approval for the following Non-NFL event marketing activities:
• June 15-18, 2022 Event and Arena Marketing Conference in Minneapolis, MN: Authorization to incur charges up to $4,800 to cover registration fees ($800), travel expenses ($2,000), and potential client entertainment ($2,000) for one Stadium Manager employee; and
• May 28-30, 2022 travel for the May 28-29 Grupo Firme concerts at SoFi Stadium in Inglewood, CA: Authorization to incur charges up to $2,900 to cover travel expenses ($2,400) and potential client entertainment ($500) for two Stadium Manager employees.
If approved, the cost for this activity will be charged to the FY 2022/23 Non-NFL Marketing budget for Ticketed Event) Dues and Subscriptions/Registration Fees, Networking and Entertainment, and Attending Conferences, Events, Client/Prospect Meetings line items.
DISCUSSION
Staff reviewed the Stadium Manager’s email request (attached to corresponding report #22-509) against the 2022 Marketing Plan. The requested marketing activity aligns with one of the key initiatives (“Continued proactive outreach, networking, and relationship building”) that are identified. In the 2022 Marketing Plan, the Stadium Manager states that it plans to continue being proactive with networking and relationship building with key players in the live entertainment industry, which includes repeat visits and touch points to promoters. It also plans to maintain top of mind and relevant within the industry and decision makers by booking in person meetings with executives and attending conferences for networking opportunities. The Stadium Manager notes that it will strive to be proactive in looking for new marquee events and revenue generating opportunities to bring to the City of Santa Clara.
The travel and expense costs related to the requests will follow the Stadium Manager’s Business Expense Reimbursement Policy. As part of a previous request to incur charges for marketing-related conferences and meetings, the Stadium Manager explained that alcohol consumption is a part of the business marketing that they utilize to pursue Non-NFL events. While the use of public funds for alcohol consumption is generally not permitted by public agencies, the legislative body of the public agency can authorize this business expense. Therefore, there is an appropriate Board recommendation transmitted in this report to authorize the use of public funds to cover alcohol consumption for the request to approve potential client entertainment submitted by the Stadium Manager. Further, the Stadium Authority should be covered for the risk or liability arising from auto accidents or other such losses occurring at any of these marketing events (including liability arising from consumption of alcohol) pursuant to the Indemnification Clause in Article 12 of the Management Agreement.
Based on this review, staff recommends approval of the request to incur charges for registration fees, travel expenses, and potential client entertainment, including alcohol, for the described conference. The Stadium Authority will require full supporting documentation before respectively releasing public funds upon procurement of registration fees, travel expenses, and client entertainment. This requirement is consistent with the Stadium Authority Board’s March 27, 2019 direction to staff to stop payment of any additional invoices for services unless there is substantial documentation of services rendered which must also be in compliance with State law and City Code.
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 or 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 FY 2022/23 Non-NFL Marketing budget contains $55,000 for Ticketed Events. There are sufficient funds to cover the Stadium Manager’s request to incur up to $7,700 for the conference and concerts.
COORDINATION
This report has been coordinated with the Stadium Authority Counsel and Stadium 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.
RECOMMENDATION
Recommendation
1. Approve the Stadium Manager’s request to incur charges up to $4,800 for the June 15-18, 2022 Event and Arena Marketing Conference in Minneapolis, MN to cover registration fees, travel expenses, and potential client entertainment for one Stadium Manager employee; and
2. Approve the Stadium Manager’s request to incur charges up to $2,900 to cover travel expenses and potential client entertainment, for two Stadium Manager employees to travel between May 28-30, 2022 for the May 28-29 Grupo Firme concerts at SoFi Stadium in Inglewood, CA.
Staff
Reviewed by: Christine Jung, Assistant to the Executive Director
Approved by: Office of the City Manager