REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Carryover of FY 2023/24 Stadium Authority Capital Project and Approve Related Budget Amendment
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
On March 7, 2023, the Stadium Authority Board approved the Santa Clara Stadium Authority Fiscal Year 2023/24 Operating, Debt Service, and Capital Budget (FY 2023/24 Budget). As highlighted in Attachment 1, the FY 2023/24 Budget included the General Areas / Coatings Main Deck capital expense (CapEx) project for $2,168,759.
This project was needed to replace and recoat the Lymtal traffic deck coating at the lower seating bowl and on the 300 and 700 Level Concourses, which are currently showing signs of wear. The deck coating serves as a secondary waterproofing system for the occupied spaces below these areas and protects and extends the life of the concrete. Periodic replacement and recoating of this system is necessary to maintain the current waterproofing system and the expected useful life of the structure.
It was anticipated that this project would be completed by the end of FY 2023/24, so the corresponding budget was not requested to be carried forward to the FY 2024/25 Operating, Debt Service, and Capital Budget (FY 2024/25 Budget). However, due to the weather and additional unanticipated major events being held at the Stadium, this project extended into FY 2024/25. Staff is requesting approval to amend the FY 2024/25 Budget to include unspent funds from the FY 2023/24 Budget for this project.
DISCUSSION
During the FY 2024/25 budgeting process, the Forty Niners SC Stadium Management Company LLC (Stadium Manager) anticipated the completion of the General Areas / Coatings Main Deck CapEx project at the end of FY 2023/24, so the remaining budget was not requested to be carried over. Several unanticipated major events, including concerts and additional NFL home games held at the Stadium, required the contractor to pause work and remobilize before and after the events for extended periods. Inclement weather in late 2023 and early 2024 also severely impacted the contractor’s ability to apply coating in the lower seating bowl area. Several rainstorms caused damage to some of the freshly finished areas, requiring the contractor to repair and refinish the damaged coatings. The project is almost complete, and the budget carryover will allow the Stadium Manager to release the final contract retention and pay for some minor construction deficiencies prior to releasing the retention amount.
The requested budget amendment will carry over the unspent amount of $565,241 from the FY 2023/24 Budget to the FY 2024/25 Budget for the General Areas / Coatings Main Deck CapEx project.
The table below summarizes the unspent FY 2023/24 Budget for the project and the requested carry over amount:
|
Project Name |
Approved Unspent FY 2023/24 Budget |
Carried Forward Request Amount for FY 2024/25 Budget |
|
General Areas / Coating Main Deck |
$565,241 |
$565,241 |
|
Total |
$565,241 |
$565,241 |
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(b)(5) 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 General Areas / Coating Main Deck CapEx Project is not part of the FY 2024/25 Budget, and the Board will need to approve a $565,241 budget amendment to add the project. These funds will be offset by a decrease in the Stadium Authority Capital Expense Reserve.
The table below summarizes the budget amendment discussed above:
|
Description |
Adopted Budget |
Increase/ (Decrease) |
Amended Budget |
|
General Areas / Coating Main Deck |
$0 |
$565,241 |
$565,241 |
|
Capital Expense Reserve |
$3,424,608 |
($565,241) |
$2,859,367 |
COORDINATION
This report has been coordinated with the Executive Director’s and Stadium Authority Counsel’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 a budget amendment for the General Areas / Coating Main Deck CapEx project in the FY 2024/25 Budget in the amount of $565,241 from the Stadium Authority Capital Expense Reserve
Staff
Reviewed by: Kenn Lee, Treasurer
Approved by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. Adopted FY 2023-24 Capital Expenditure Budget