REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Report from the Stadium Authority for Action on Stadium Manager’s Request to Utilize Cooperative Agreements to Leverage Discounted Pricing through Amazon.com LLC and B&H Foto and Electronics dba B&H and Award Purchase Orders to Advance Stores Company, Inc., CDW Government LLC, Cintas Corporation, Grainger Industrial Supply, and Midwest Motor Supply Company dba Kimball Midwest for Operational Needs at Levi’s Stadium
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium
BACKGROUND
On October 8, 2019, the City Council approved Ordinance No. 2005 amending Chapter 17.30 of the Santa Clara City Code (Stadium Authority Procurement Policy), which rescinded the delegation to the Executive Director to enter into agreements without prior Stadium Authority Board (Board) approval. As a 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 Stadium Management Agreement between the Stadium Authority, Stadium Manager, and Forty Niners SC Stadium Company, LLC (StadCo).
The Stadium Manager is requesting approval to utilize cooperative agreements available through OMNIA Partners, Public Sector for the following:
1. Advance Stores Company, Inc. (Advance Stores): Award a purchase order to Advance Stores to procure automotive parts, accessories, and related supplies from April 1, 2023 through December 31, 2023, in an amount not to exceed $25,000. These costs are classified as Stadium Authority Fiscal Year (FY) 2023/24 Shared Stadium Manager Expenses (Shared Expenses) for the Engineering and Groundskeeping Departments.
2. Amazon.com LLC (Amazon): Utilize Amazon’s online marketplace to procure supplies, equipment and goods for a one-year period from April 1, 2023 through March 31, 2024, in an amount not to exceed $250,000. The Stadium Manager shared in its memo that items can only be purchased with a credit card from Amazon’s online marketplace. These costs are classified as Stadium Authority FY 2023/24 Shared Expenses across all departments.
3. B&H Foto and Electronics dba B&H (B&H): Utilize B&H’s online marketplace to procure audio visual products and accessories for a one-year period from April 1, 2023 through March 31, 2024, in an amount not to exceed $50,000. The Stadium Manager shared in its memo that items can only be purchased with a credit card from B&H’s online marketplace. These costs are classified as Stadium Authority FY 2023/24 Shared Expenses for the Stadium Operations Department.
4. CDW Government LLC: Award a purchase order to CDW Government LLC for information technology solutions related to hardware, software, computer equipment, peripherals and accessories for a one-year period from April 1, 2023 through March 31, 2024, in an amount not to exceed $100,000. These costs are classified as Stadium Authority FY 2023/24 Shared Expenses across all departments.
5. Cintas Corporation: Award a purchase order to Cintas Corporation to purchase uniforms, brand name apparel, safety footwear, promotional products, facility products, and first aid and supplies for a one-year period from April 1, 2023 through March 31, 2024, in an amount not to exceed $250,000. These costs are classified as Stadium Authority FY 2023/24 Shared Expenses across all departments.
6. Grainger Industrial Supply: Award a purchase order to Grainger Industrial Supply for maintenance, repair, operating supplies, industrial supplies, and related products for a one-year period from April 1, 2023 through March 31, 2024, in an amount not to exceed $200,000. These costs are classified as Stadium Authority FY 2023/24 Shared Expenses across all departments.
7. Midwest Motor Supply Company dba Kimball Midwest (Kimball Midwest): Award a purchase order to Kimball Midwest for maintenance, repair, operating supplies, industrial supplies, and related products and services for a one-year period from April 1, 2023 through March 31, 2024, in an amount not to exceed $50,000. These costs are classified as Stadium Authority FY 2023/24 Shared Expenses for the Engineering Department.
DISCUSSION
Stadium Authority staff reviewed the Stadium Manager’s Recommendation to Utilize Multiple Cooperative Agreements for Operational Needs at Levi’s Stadium memorandum (attached to corresponding report #23-374), cooperative agreements through OMNIA Partners, Public Sector, and draft purchase orders for consistency against the Stadium Authority Procurement Policy and Santa Clara City Code Chapter 2.105.270(c) (Purchases through utilization of preestablished cooperative purchasing agreements).
Based on the documentation, staff recommends approval of the Stadium Manager’s request to utilize Amazon and B&H’s online marketplaces and award purchase orders to Advance Stores, CDW Government LLC, Cintas Corporation, Grainger Industrial Supply, and Kimball Midwest for the described goods.
As stated in the Stadium Manager’s memo regarding the purchase orders with Grainger Industrial Supply and Kimball Midwest, purchases from these vendors will not cover any labor or other public works performed at Levi’s Stadium and such additional services will require the execution of separate service agreements.
The Stadium Authority Counsel’s Office has reviewed the requested purchase orders for comparison to the Stadium Authority’s customary language. While there are some differences in the language, including portions covering compliance with laws such as conflict of interest, the purchase orders submitted for approval contain the necessary language which identifies these legal obligations to the vendors. The vendors expressly agree to adhere to such obligations upon their execution of the agreement. Nothing in the proposed purchase orders change the Stadium Authority’s rights under the Management Agreement and specifically with respect to any dispute that may arise from the Stadium Manager’s obligations under the Management Agreement.
In addition, per Paragraph 4(b) of the Settlement Agreement, the Stadium Authority reserves all rights to confirm and dispute charges by and payments to the Stadium Manager during a fiscal year-end reconciliation/true-up, including but not limited to changes based on improper allocation, calculation, lack of support, or failure to comply with the Parties’ contracts or California law. The Stadium Authority may raise related questions before the fiscal year-end reconciliation/true-up, which the Stadium Manager agrees to assess and respond to in good faith.
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
The Stadium Authority FY 2023/24 Budget contains Shared Expenses such as Security, Stadium Operations, Engineering, Guest Services, and Groundskeeping. Shared Expenses are split 50/50 or 30/70 (Groundskeeping only) between the Stadium Authority and Forty Niners SC Stadium Company LLC (StadCo) per the Management Agreement between Stadium Authority, StadCo, and Stadium Manager.
These Shared Expenses purchase orders have a total not to exceed amount of $925,000 for FY 2023/24, of which the Stadium Authority would be responsible for up to $462,500. There are sufficient funds in the FY 2023/24 Shared Expenses line items across all departments to cover these expenses.
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:
1. Approve the Stadium Manager’s request utilize the described cooperative agreement to award a purchase order to Advance Stores to procure automotive parts, accessories, and related supplies from April 1, 2023 through December 31, 2023, in an amount not to exceed $25,000;
2. Approve the Stadium Manager’s request to utilize the described cooperative agreement(s) to utilize Amazon’s online marketplace to procure supplies, equipment and goods for a one-year period from April 1, 2023 through March 31, 2024, in an amount not to exceed $250,000;
3. Approve the Stadium Manager’s request to utilize the described cooperative agreement to utilize B&H’s online marketplace to procure audio visual products and accessories for a one-year period from April 1, 2023 through March 31, 2024, in an amount not to exceed $50,000;
4. Approve the Stadium Manager’s request to utilize the described cooperative agreement(s) to award a purchase order to CDW Government LLC for information technology solutions related to hardware, software, computer equipment, peripherals and accessories for a one-year period from April 1, 2023 through March 31, 2024, in an amount not to exceed $100,000;
5. Approve the Stadium Manager’s request to utilize the described cooperative agreement to award a purchase order to Cintas Corporation for purchase of uniforms, brand name apparel, safety footwear, promotional products, facility products, and first aid and supplies for a one-year period from April 1, 2023 through March 31, 2024, in an amount not to exceed $250,000;
6. Approve the Stadium Manager’s request to utilize the described cooperative agreement(s) to award a purchase order to Grainger Industrial Supply for maintenance, repair, operating supplies, industrial supplies, and related products for a one-year period from April 1, 2023 through March 31, 2024, in an amount not to exceed $200,000; and
7. Approve the Stadium Manager’s request to utilize the described cooperative agreement to award a purchase order to Kimball Midwest for maintenance, repair, operating supplies, industrial supplies, and related products and services for a one-year period from April 1, 2023 through March 31, 2024, in an amount not to exceed $50,000.
Staff
Prepared by: Christine Jung, Assistant to the Executive Director
Approved by: Office of the Executive Director