REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Report from the Stadium Authority for Action Regarding Stadium Manager’s Request to Execute Agreement with Blue’s Roofing Company for Recoating Existing Traffic Bearing Membrane in the Seating Bowl and Concourse Areas at Levi’s Stadium (General Areas/Coatings Main Deck CapEx Project)
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
On October 8, 2019, the Stadium Authority Board (Board) approved Ordinance No. 2005 amending Chapter 17.30 of the City Code (Stadium Authority Procurement Policy), which rescinded the delegation to the Executive Director to enter into agreements without prior Board approval. As result of Ordinance No. 2005, the Stadium Manager is also required to request Board approval before entering into agreements on behalf of the Stadium Authority. As of the effective date of the Ordinance (November 8, 2019), all Stadium Authority agreements for services, supplies, materials, and equipment require the approval of the Stadium Authority Board.
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 Management Agreement between the Stadium Authority and Stadium Manager.
The Stadium Manager is requesting the following:
1. Approval to execute a one-time agreement with Blue’s Roofing Company in the amount of $2,505,744 for recoating the existing traffic bearing membrane (traffic coating) in the seating bowl and concourse areas at Levi’s Stadium;
2. Authorize the Stadium Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this project; and
3. Authorize the Stadium Manager to issue change orders up to $66,383 for a total not to exceed amount of $2,572,127.
This project is included in the Stadium Authority FY 2022/23 Capital Expense (CapEx) Budget under the General Areas/Coatings Main Deck line item which is budgeted for $2,572,500.
DISCUSSION
Stadium Authority staff reviewed the Stadium Manager’s Recommendation for Award memo, supporting documentation, and proposed agreement with Blue’s Roofing Company that were submitted (these documents are attached to corresponding report #22-822) and exchanged questions with the Stadium Manager to get more clarification on various aspects of the request. The Stadium Manager’s responses are also attached to the corresponding report. Blue’s Roofing Company was the lowest bidder among the three bids received by the Stadium Manager.
The current project description in the CapEx budget includes work for the lower seating bowl and on the 300 and 700 Level Concourses. The agreement will cover work described in the Base Bid and Alternate #1 for the seating bowl and 300 Level Concourse. Per the Stadium Manager’s Recommendation for Award memo, they intend to submit a new budget request as part of the Stadium Authority FY 2023/24 Capital Expense budget to address the other areas of the Stadium that require recoating. In their responses, the Stadium Manager confirmed that they did not pursue the 700 Level Concourse work this year because that option would exceed the budgeted amount for
this fiscal year.
Based on the documentation and responses provided, staff recommends approval of the Stadium Manager’s request to execute an agreement with Blue’s Roofing Company. However, staff recommends that the Stadium Manager’s request for delegated authority to issue change orders for the project be delegated instead to the Executive Director. Currently, the Executive Director has no procurement delegated authority under the Stadium Authority Procurement Policy. Approving staff’s recommendation to provide the Executive Director with such authority to approve the issuance and execution of change orders up to $66,383 accomplishes the expediency that the Stadium Manager seeks.
The Stadium Authority will require full supporting documentation including compliance with prevailing wage laws, if applicable, before releasing public funds upon completion of work. 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 action being considered does 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.
FISCAL IMPACT
The Stadium Authority FY 2022/23 CapEx Budget includes $2,572,500 for the General Areas/Coatings Main Deck line item. There are sufficient funds to cover the cost of the project ($2,505,744), up to $66,383 for potential change orders, and the Stadium Manager’s Request for Bids advertisement in the San Jose Mercury News ($373). On July 13, 2021, the Board approved the award of purchase orders to San Jose Mercury News and Santa Clara Weekly for the Stadium Manager to publish legal notices for CapEx projects.
COORDINATION
This report has been coordinated with the City’s Purchasing Manager and 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:
Approve the Stadium Manager’s request to execute an agreement with Blue’s Roofing Company in the amount of $2,505,744 for recoating the existing traffic bearing membrane in the seating bowl and concourse areas at Levi’s Stadium (General Areas/Coatings Main Deck CapEx project); authorize the Executive Director to approve the execution of any and all documents associated with, and necessary for the award, completion, and acceptance of the project; authorize the Executive Director to approve the issuance and execution of change orders up to $66,383, for a total not to exceed amount of $2,572,127; and authorize the Executive Director to approve and process the reimbursement of such costs upon receiving final invoices and supporting documentation from the Stadium Manager.
Staff
Prepared by: Christine Jung, Assistant to the Executive Director
Reviewed by: Rajeev Batra, Executive Director