REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Proposed FY 2027/28 Santa Clara Stadium Authority Capital Expense Projects
Report
BACKGROUND
The Stadium Management Agreement (Management Agreement) between the Santa Clara Stadium Authority (Stadium Authority), Forty Niners SC Stadium Company, LLC (StadCo), and Forty Niners Stadium Management Company LLC (ManCo or Stadium Manager) defines the Stadium Operation and Maintenance Plan (SOMP) as the plan designed to achieve a safe and well-maintained Stadium and states that it should include the standards for management and operation of the Stadium, including the required security, staffing, and other required elements of hosting Stadium events. The Stadium Manager is responsible for preparing the SOMP that is presented annually to the Stadium Authority. The SOMP is required to include certain documents, including a Capital Expenditure Plan.
Each year, Stadium Authority staff prepares a proposed Santa Clara Stadium Authority Operating, Debt Service, and Capital Budget for the Stadium Authority’s twelve-month Fiscal Year (FY), which begins on April 1 and runs through March 31, in accordance with Article 4 - Records, Accounts, Budgets, and Reports of the Management Agreement. The Stadium Manager is required to submit a Capital Expenditure (CapEx) Plan that includes a five-year projection of anticipated capital expenditures.
The last four years of the Stadium Manager’s proposed Five-Year CapEx Plan for FY 2027/28 - FY 2030/31 is included as Attachment 1. The Stadium Manager’s FY 2026/27 budget submittal included significant investment in capital expenses proposed in the out-years beyond FY 2026/27. As the tenant of Levi’s Stadium, StadCo is also conducting a Facility Condition Assessment (FCA), funded at its expense, to support long-term financial planning, operational efficiency, and structural integrity. The FCA will identify necessary repairs, capital improvements, and compliance requirements while optimizing maintenance costs and resource allocation. The FCA is anticipated to be completed in 2027. Once the assessment is complete and received, the Stadium Authority will undertake a vetting of the FCA. The Stadium Authority’s current capital reserve balance is far below an appropriate level, and increasing this balance will be a major focus of future budgetary and capital project planning. The Stadium Authority will also assess and independently verify long-term facility needs at the Stadium. Initial funding for this work is included in the FY 2026/27 Operating Budget, and Stadium Authority staff is finalizing the scope of work and anticipates releasing a Request for Proposals (RFP) in the upcoming weeks.
On March 10, 2026, the Stadium Authority Board took several actions related to the 2026/27 Stadium Authority Operating, Debt Service, and Capital Budget, including:
1. Adopt the Santa Clara Stadium Authority Fiscal Year 2026/27 Operating, Debt Service, and Capital Budget; and
2. With respect to the CapEx Plan:
a. Approve the Fiscal Year 2026/27 CapEx projects (Year One, and for items that have budget allocated in Year One and a forecast expenditure in Year Two), of the Stadium Manager’s 5-Year CapEx Plan, including such projects that are to be completed over multiple years;
b. Do not approve at this time CapEx projects to be commenced after Fiscal Year 2026/27 (Years 2 through 5); and
c. Upon completion of the Stadium Manager’s FCA, Stadium Authority staff’s evaluation and completion of its own FCA, and further discussions with Stadium Manager, return to the Stadium Authority Board with staff’s recommendation for Stadium Authority action on the CapEx program for Years 2 through 5.
During the March 10, 2026 budget discussion, staff also committed to conduct a further review and work with the Stadium Manager on the CapEx Projects proposed for FY 2027/28, Year 2 in the Stadium Manager’s 5-Year CapEx Plan, and provide the Stadium Authority Board with additional information on the Stadium Authority’s review of the FY 2027/28 CapEx Projects within 90 days.
Through this report, staff is presenting the Stadium Authority Board with recommendations on the proposed FY 2027/28 CapEx Projects.
DISCUSSION
At Stadium Authority staff’s request, the Stadium Manager provided a CapEx Project Detail document with project descriptions for the FY 2027/28 Stadium Authority CapEx Budget that were much more detailed than prior years’ submissions. On May 4, 2026, the Stadium Manager provided City and Stadium Authority staff a walk-through of Levi’s Stadium to view the proposed projects. During the walk-through, the Stadium Manager team highlighted the condition of the equipment and infrastructure at the Stadium during the tour and answered City/Stadium Authority staff’s questions with transparency and a partnership approach.
The document and the May 4th walk-through enabled City and Stadium Authority staff to gain a more in-depth understanding of the proposed projects and the work the Stadium Manager conducts on behalf of the Stadium Authority. Based on the information included in the CapEx Project Detail and engagement from the Stadium Manager, Stadium Authority staff recommends funding the Stadium Manager’s proposed FY 2027/28 CapEx projects as summarized in the following table:
The attached document titled “Recommendations on Stadium Manager’s Proposed FY 2027/28 CapEx Projects” (Attachment 2) includes the Stadium Manager’s CapEx Project Detail and additional details about Stadium Authority staff’s analysis and recommendation for each project’s funding and any additional direction, if applicable.
It should be noted that the Stadium Manager’s original FY 2027/28 CapEx projects request included “Kawasaki ATVs” in the amount of $53,000. Stadium Authority staff did not request additional details on this project from the Stadium Manager because it was requested by the City’s public safety team. Stadium Authority staff recommends including this project at the requested funding levels as part of the approved FY 2027/28 CapEx Projects. In addition, on March 10, 2026 the Board approved five of the FY 2027/28 CapEx Projects totaling $4,366,209.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environment Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a)(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 proposed FY 2027/28 CapEx Budget is $11,080,731 which includes projects that were approved by the Board on March 10, 2026 totaling $4,366,209, the additional projects noted in the table above of $6,661,522, and the Kawasaki ATV project of $53,000.
COORDINATION
This report has been coordinated with the Stadium Authority Counsel’s 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
Approve staff’s recommendation on the proposed Santa Clara Stadium Authority Fiscal Year 2027/28 Capital Expense Projects, totaling $11,080,731, as described in the report and “Recommendations for Stadium Manager’s Proposed FY 2027/28 CapEx Projects” attachment, including funding levels and next steps.
Staff
Prepared by: Christine Jung, Deputy City Manager
Approved by: Jovan Grogan, Executive Director
ATTACHMENTS
1. Stadium Manager Capital Expenditure Plan for FY 2027/28 - FY 2030/31
2. Recommendations for Stadium Manager’s Proposed FY 2027/28 CapEx Projects