REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Informational Report on Stadium Authority Contracts for Fiscal Year 2024/25 As Required by Santa Clara City Code Chapter 17.30 (Stadium Authority Procurement Policy)
Report
BACKGROUND
Santa Clara City Code Chapter 17.30 (Stadium Authority Procurement Policy) formalizes the policies and procedures with respect to procurement for the Santa Clara Stadium Authority (Stadium Authority), with the intent to: 1) Establish efficient, equitable and effective procedures for the procurement activities of the Stadium Authority; 2) Ensure the integrity and equity in the procurement activities of the Stadium Authority and provide safeguards for the impartial application of the procurement policies; and, 3) Enable the Stadium Authority to operate efficiently and competitively; to responsibly maintain equipment, facilities and services; and to complete projects on time and on budget.
The Stadium Authority Procurement Policy applies to all purchases and contracts for supplies, goods, materials, equipment, services, and public works by and on behalf of the Stadium Authority and establishes the Executive Director as the purchasing officer of the Stadium Authority, except for those purchases and contracts that fall within the exclusions identified in Santa Clara City Code Section 17.30.110. The policy provides the Executive Director with delegated signature authority to execute Stadium Authority contracts for supplies, materials, equipment, services, and public works projects in an amount up to and including $100,000, as allocated to and authorized by the Stadium Authority by adoption of the annual budget. For agreements where the costs are shared between the Stadium Authority and Forty Niners SC Stadium Company, LLC (StadCo) per the Stadium Lease, the $100,000 threshold only applies to the Stadium Authority’s portion of the agreement.
Under the Stadium Authority Procurement Policy, the Executive Director is required to prepare and submit to the Stadium Authority Board, a report at the end of the fiscal year summarizing the total number of contracts let by the Stadium Authority, the number of contracts approved under an exception, the number of contracts approved under best value procedures and the number of contracts approved under formal bidding procedures, and to the extent possible listing information related to application and outreach efforts conducted to implement the Disadvantaged Business Enterprise (DBE) program.
DISCUSSION
In Fiscal Year 2024/25, the Stadium Authority entered into sixteen (16) total new contracts and amendments to existing contracts to purchase or acquire supplies, materials, equipment, services, and/or implement public works projects. Seven (7) amendments to legal contracts were entered into under the authority to contract for legal services, which are exempt from competitive bidding per Santa Clara City Code Section 17.30.110(d). Of the remaining nine (9) contracts, the Stadium Authority executed four (4) contracts approved under best value procedures and five (5) contracts/amendments for services. There is no information to report related to application and outreach efforts conducted to implement the DBE program. The Stadium Authority’s contract activity for FY 2024/25 is summarized in Attachment 1.
Additionally, the Forty Niners Stadium Management Company LLC, as the Stadium Manager that the Stadium Authority and StadCo have both contracted with to manage Levi’s Stadium, has the authority to execute contracts only insofar as the Executive Director has such authority. Under Section 2 of the First Amendment to the Stadium Management Agreement between the Stadium Authority, Stadium Manager, and StadCo, the Stadium Manager is provided certain delegated authority to enter into contracts on behalf of the Stadium Authority. As such, the delegation of authority to the Executive Director to execute Stadium Authority contracts for supplies, materials, equipment, services, and public works projects in an amount up to and including $100,000 of Stadium Authority funds also applies to the Stadium Manager.
The Stadium Manager entered into eighty-five (85) total contracts and amendments to contracts to purchase or acquire supplies, materials, equipment, services, and/or public works projects on behalf of the Stadium Authority during FY 2024/25. Of these, the Stadium Manager executed twenty-one (21) contracts/amendments approved under best value procedures, forty-seven (47) service contracts and amendments to service contracts, three (3) public works contracts per Santa Clara City Charter Section 1310 and under formal bidding procedures, one (1) amendment to a contract for an emergency purchase per Santa Clara City Code Section 2.205.260, and thirteen (13) contracts by utilizing a competitive bid process of another public agency per Santa Clara City Code Section 2.105.270. There is no information to report related to contracts entered into under an exemption or application and outreach efforts conducted to implement the DBE program. The Stadium Manager’s contract activity on behalf of the Stadium Authority for FY 2024/25 is summarized in Attachment 2.
Stadium Authority staff reviews contracts presented to the Stadium Authority Board and corresponding procurement materials for conformance. Stadium Manager staff confirmed they followed the City of Santa Clara’s procurement and public works requirements for these purchases and services, in addition to the Stadium Authority Procurement Policy, for contracts below the applicable $100,000 threshold. Staff was working with the Stadium Manager’s prior Director of Procurement to bring forth updates to the Stadium Authority Procurement Policy so that it can better align with public procurement best practices similar to those in the City’s purchasing code and address existing gaps within the policy (e.g., consistent competitive process requirements for services, better alignment of public works definitions and requirements with City Charter and State law provisions). However, due to staffing transitions, staff is reengaging the Stadium Manager’s new procurement team on this effort. In the interim, Stadium Authority and Stadium Manager staff will continue to follow the City’s purchasing and public works requirements and the Stadium Authority Procurement Policy until the Stadium Authority Procurement Policy is updated.
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) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
There is no cost to prepare this report other than administrative staff time.
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.
RECOMMENDATION
Recommendation:
Note and file the informational report on Stadium Authority contracts for FY 2024/25.
Staff
Reviewed by: Chuck Baker, Assistant City Manager
Approved by: Jovan D. Grogan, SCSAExecutive Director
ATTACHMENTS
1. Stadium Authority Contract Activity for FY 2024/25
2. Stadium Manager Contract Activity on Behalf of Stadium Authority for FY 2024/25